Amended in Assembly June 18, 2013

Amended in Assembly June 12, 2013

Senate BillNo. 91


Introduced by Committee on Budget and Fiscal Review

January 10, 2013


An act to amend Sectionsbegin delete 1622, 14002, 14501, 17582, 33127, 35035, 35735.1, 37700, 37710.3, 37710.5, 41020, 41303, 41544, 42127, 42238.15, 42280, 42281, 42282, 42283, 42284, 42285, 42285.5, 42286, 42287, 42289, 42289.1, 42289.2, 42289.3, 42289.4, 42289.5, 42800, 46200, 46201, 46201.2, 46202, 47604.32, 47604.33, 47604.5, 47605, 47605.6, 47613, 47631, 47632, 47635, 47636, 47660, 47663, 48310, 48359.5, 49085, 49536, 52052, 52052.1, 52052.5, 52055.750, 56365, 56366.1, 56836.21, and 56836.24 of, to amend and repeal Sections 42238, 42238.1, 42238.2, and 42238.5 of, to add Sections 35736.5, 42238.01,end deletebegin insert 2575,end insert 42238.02,begin delete 42238.025, 42238.03, 42238.04, 42238.05, 42238.051, 42238.052, 42238.053, 42238.06, 42238.07, 46207, 46208, 47606.5, and 47607.3 to, to add Article 4.5 (commencing with Section 52060) to Chapter 6.1 of Part 28 of Division 4 of Title 2 of, to add Chapter 12.5 (commencing with Section 2574) to Part 2 of Division 1 of Title 1 of, to repeal Sections 14002.3, 17583, 17584, 17584.1, 17584.2, 17585, 17587, 35735.2, 42282.1, 42283.1, 42283.2, 42285.1, 42285.4, 42605, 42606, 46201.3, 46204, 47612.7, 47632.5, 47664, 52051, and 52052.2 of, and to repeal 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 of,end deletebegin insert and 42238.03 ofend insert the Education Code,begin delete 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, and to amend Sections 95 and 196.4 of the Revenue and Taxation Code, end deletebegin insert and to amend Item 6110-106-0001 of Section 2.00 of the Budget Act of 2013,end insertrelating to school finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 91, as amended, Committee on Budget and Fiscal Review. School finance.

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(1) Existing law establishes the public school system in this state, and, among other things, provides for the establishment of county superintendents of schools, school districts, and charter schools throughout the state. Existing law provides for the provision of instruction at the public elementary and secondary schools maintained by these local educational agencies. 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.

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This bill would revise and recast the provisions related to the public financing system by requiring state funding for county superintendents of schools and 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 authorize local educational agencies to expend, for any local educational purpose, the funds previously required to be spent for specified categorical education programs, including, among others, programs for teacher training and class size reduction.

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This bill would also change the funding calculations for necessary small schools and make other changes related to shifting financial responsibilities and school accountability, and would make other changes to the law relating to elementary and secondary education.

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(2) Existing law requires a county board of education, a governing board of a school district, and a governing body of a charter school, to annually adopt a budget, as specified.

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This bill would require a county board of education and a governing board of a school district 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. The bill would require a charter for a charter school to include many of the local control and accountability plan elements and would require the charter school to annually update its plan related to those elements. By requiring county boards of education and school districts to annually adopt or revise a local control and accountability plan and provide additional services, the bill would impose a state-mandated local program.

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(3) This bill would appropriate $2,099,161,000 with $2,000,000 being apportioned to the Governor’s Office of Planning and Research for purposes of developing regulations, templates, and evaluation rubrics, as specified, and the remaining funds being apportioned 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.

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(4) This bill would make conforming changes, correct cross-references, and make other nonsubstantive changes.

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(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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(1) Assembly Bill 97 of the 2013-14 Regular Session, if enacted, would require state funding for county superintendents of schools and school districts, and charter schools that previously received a general-purpose entitlement, to be calculated pursuant to a local control funding formula, as specified. Assembly Bill 97 of the 2013-14 Regular Session (A) would require the state funding apportioned to school districts and charter schools to be based on a base grant, as specified, (B) would require, among other things, the base grant for grades 9 to 12, inclusive, to be adjusted by an additional 2.6%, as adjusted for inflation, and (C) would require the 2.6% base grant adjustment to be used on pupils enrolled in grades 9 to 12, inclusive, for any purposes or programs that support a school district or charter school in achieving its goals for college and career readiness, as specified.

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This bill would, contingent on the enactment of Assembly Bill 97 of the 2013-14 Regular Session, delete the requirement that the 2.6% base grant adjustment be used on pupils enrolled in grades 9 to 12, inclusive, for any purposes or programs that support a school district or charter school in achieving its goals for college and career readiness. The bill would also make nonsubstantive changes to provisions related to the local control funding formula.

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(2) Assembly Bill 110 of the 2013-14 Regular Session, also known as the Budget Act of 2013, would, if enacted, appropriate $10,000,000 to Section A of the State School Fund for the support of the California Local Control Accountability Support Network.

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This bill would instead, contingent on the enactment of Assembly Bill 97 of the 2013-14 Regular Session, discussed above, appropriate the $10,000,000 for support of the California Collaborative for Educational Excellence. By authorizing funds appropriated to a continuously appropriated fund to be used for a different purpose, the bill would make an appropriation.

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(6)

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begin insert(3)end insert 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.

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(7)

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begin insert(4)end insert This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 2575 of the end insertbegin insertEducation Codeend insertbegin insert, as added by
2Assembly Bill 97 of the 2013end insert
begin insert-14 Regular Session, is amended to
3read:end insert

4

2575.  

(a) Commencing with the 2013-14 budget year and for
5each fiscal year thereafter, the Superintendent shall calculate a
6base entitlement for the transition to the county local control
7funding formula for each county office of education based on the
P5    1sum of the amounts computed pursuant to paragraphs (1) to (3),
2inclusive:

3(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
43 (commencing with Section 2550) of Chapter 12, as that article
5read on January 1, 2013, adjusted only for changes in average daily
6attendance claimed by the county superintendent of schools for
7pupils identified in clauses (i), (ii), and (iii) of subparagraph (A)
8of paragraph (4) of subdivision (c) of Section 2574 and for pupils
9attending juvenile court schools. All other average daily attendance
10claimed by the county superintendent of schools and any other
11average daily attendance used for purposes of calculating revenue
12limits pursuant to Article 3 (commencing with Section 2550) of
13Chapter 12, as that article read on January 1, 2013, shall be
14considered final for purposes of this section as of the annual
15apportionment for the 2012-13 fiscal year, as calculated for
16purposes of the certification required on or before February 20,
172014, pursuant to Section 41332.

18(2) The sum of both of the following:

19(A) The amount of funding received from appropriations
20contained in Section 2.00 of the Budget Act of 2012, as adjusted
21by Section 12.42, in the following items: 6110-104-0001,
226110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
236110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
246110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
256110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
266110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
276110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
286110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
296110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
306110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
316110-267-0001, 6110-268-0001, and 6360-101-0001, 2012-13
32fiscal year funding for the Class Size Reduction Program pursuant
33to Chapter 6.10 (commencing with Section 52120) of Part 28 of
34Division 4 of Title 2, as it read on January 1, 2013, and 2012-13
35fiscal year funding for pupils enrolled in community day schools
36who are mandatorily expelled pursuant to subdivision (c) of Section
3748915.

38(B) The amount of local revenues used to support a regional
39occupational center or program established and maintained by a
40county superintendent of schools pursuant to Section 52301.

P6    1(3) For the 2014-15 fiscal year and for each fiscal year
2thereafter, the sum of the amounts apportioned to the county office
3of education pursuant to subdivision (f) in all prior years.

4(b) The Superintendent shall annually compute a county local
5control funding formula transition adjustment for each county
6superintendent of schools as follows:

7(1) Subtract the amount computed pursuant to subdivision (a)
8from the amount computed pursuant to subdivision (e) of Section
92574. A difference of less than zero shall be deemed to be zero.

10(2) Divide the difference for each county superintendent of
11schools calculated pursuant to paragraph (1) by the total sum of
12the differences for all county superintendents of schools calculated
13pursuant to paragraph (1).

14(3) Multiply the proportion calculated for each county office of
15education pursuant to paragraph (2) by the amount of funding
16specifically appropriated for purposes of subdivision (f). The
17amount calculated shall not exceed the difference for the county
18superintendent of schools calculated pursuant to paragraph (1).

19(c) The Superintendent shall subtract from the amount calculated
20pursuant to subdivision (a) the sum of each of the following:

21(1) Local property tax revenues received pursuant to Section
222573 in the then current fiscal year.

23(2) Any amounts that the county superintendent of schools was
24required to maintain as restricted and not available for expenditure
25in the 1978-79 fiscal year as specified in the second paragraph of
26subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
27as amended by Chapter 51 of the Statutes of 1979.

28(3) The amount received pursuant to subparagraph (C) of
29paragraph (3) of subdivision (a) of Section 33607.5 of the Health
30and Safety Code that is considered property taxes pursuant to that
31section.

32(4) The amount, if any, received pursuant to Sections 34177,
3334179.5, 34179.6, and 34188 of the Health and Safety Code.

34(5) The amount, if any, received pursuant to subparagraph (B)
35of paragraph (3) of subdivision (e) of Section 36 of Article XIII
36of the California Constitution.

37(d) The Superintendent shall subtract from the amount computed
38pursuant to subdivision (e) of Section 2574 the sum of the amounts
39computed pursuant to paragraphs (1) to (5), inclusive, of
40subdivision (c).

P7    1(e) The Superintendent shall annually apportion to each county
2superintendent of schools the amount calculated pursuant to
3subdivision (c) unless the amount computed pursuant to subdivision
4(c) is negative. If the amount computed is negative, except as
5provided in subdivision (f), an amount of property tax of the county
6superintendent of schools equal to the negative amount shall be
7deemed restricted and not available for expenditure during the
8fiscal year. In the following fiscal year, that amount, excluding
9any amount of funds used for purposes of subdivision (f), shall be
10considered restricted local property tax revenue for purposes of
11subdivision (a) of Section 2578. State aid shall not be apportioned
12to the county superintendent of schools pursuant to this subdivision
13if the amount computed pursuant to subdivision (c) is negative.

14(f) (1) The Superintendent shall apportion, from an
15appropriation specifically made for this purpose, the amount
16computed pursuant to subdivision (b), or, if the amount computed
17pursuant to subdivision (c) is negative, the sum of the amounts
18computed pursuant to subdivisions (b) and (c) if the sum if greater
19than zero.

20(2) The Superintendent shall apportion any portion of the
21appropriation made for purposes of paragraph (1) that is not
22apportioned pursuant to paragraph (1) pursuant to the following
23calculation:

24(A) Add the amount calculated pursuant to subdivision (b) to
25the amount computed pursuant to subdivision (a) for a county
26superintendent of schools.

27(B) Subtract the amount computed pursuant to subparagraph
28(A) from the amount computed pursuant to subdivision (e) of
29Section 2574 for the county superintendent of schools.

30(C) Divide the difference for the county superintendent of
31schools computed pursuant to subparagraph (B) by the sum of the
32differences for all county superintendents of schools computed
33pursuant to subparagraph (B).

34(D) Multiply the proportion computed pursuant to subparagraph
35(B) by the unapportioned balance in the appropriation.

36(E) Apportion to each county superintendent of schools the
37amount calculated pursuant to subparagraph (D), or if subdivision
38(c) is negative, apportion the sums of subdivisions (b) and (c) and
39subparagraph (D) if the sum is greater than zero.

P8    1(F) The Superintendent shall repeat the computation made
2pursuant to this paragraph, accounting for any additional amounts
3apportioned after each computation, until the appropriation made
4for purposes of paragraph (1) is fully apportioned.

5(G) The total amount apportioned pursuant to this subdivision
6to a county superintendent of schools shall not exceed the
7difference for the county superintendent of schools calculated
8pursuant to paragraph (1) of subdivision (b).

9(g) (1) For a county superintendent of schools for whom, in the
102013-14 fiscal year, the amount computed pursuant to subdivision
11(c) is less than the amount computed pursuant to subdivision (d),
12in the first fiscal year following the fiscal year in which the sum
13of the apportionments pursuant to subdivisions (e) and (f) is equal
14to the amount calculated pursuant to subdivision (d) of this section,
15the Superintendent shall apportion to the county superintendent
16of schools the amount computed in subdivision (d) in that fiscal
17year and each fiscal year thereafter instead of the amounts
18computed pursuant to subdivisions (e) and (f).

19(2) For a county superintendent of schools for whom, in the
202013-14 fiscal year, the amount computed pursuant to subdivision
21(c) is greater than the amount computed pursuant to subdivision
22(d), in the first fiscal year in which the amount computed pursuant
23to subdivision (c) would be less than the amount computed pursuant
24to subdivision (d), the Superintendent shall apportion to the county
25superintendent of schools the amount computed in subdivision (d)
26in that fiscal year and each fiscal year thereafter instead of the
27amounts computed pursuant to subdivisions (e) and (f).

28(3) In each fiscal year, the Superintendent shall determine the
29percentage of county superintendents of schools that are
30apportioned funding that is less than the amount computed pursuant
31 to subdivision (d), as of the second principal apportionment of the
32fiscal year. If the percentage is less than 10 percent, the
33Superintendent shall apportion to those county superintendents of
34schools funding equal to the amount computed in subdivision (d)
35in that fiscal year and for each fiscal year thereafter instead of the
36amounts calculated pursuant to subdivisions (e) and (f).

37(4) Commencing with the first fiscal year after the
38apportionments in paragraph (3) are made, the adjustments in
39paragraph (4) of subdivision (a) of Section 2574 and subparagraph
40(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
P9    1made only if an appropriation for those purposes is included in the
2annual Budget Act.

3(5) If the calculation pursuant to subdivision (d) is negative and
4the Superintendent apportions to a county superintendent of schools
5the amount computed pursuant to subdivision (d) pursuant to
6paragraph (1), (2), or (3), an amount of property tax of the county
7superintendent of schools equal to the negative amount shall be
8deemed restricted and not available for expenditure during that
9fiscal year. In the following fiscal year the restricted amount shall
10be considered restricted local property tax revenue for purposes
11of subdivision (a) of Section 2578.

12(h) Commencing with the 2013-14 fiscal year, the
13Superintendent shall apportion to a county superintendent of
14schools an amount of state aid, including any amount apportioned
15pursuant to subdivisions (f) and (g), that is no less than the amount
16calculated in subparagraph (A) of paragraph (2) of subdivision (a).

17(i) For the 2013-14 and 2014-15 fiscal years only, a county
18superintendent of schools who, in the 2012-13 fiscal year, from
19any of the funding sources identified in paragraph (1) or (2) of
20subdivision (a), received funds on behalf of, or provided funds to,
21a regional occupational center or program joint powers agency
22 established in accordance with Article 1 (commencing with Section
236500) of Chapter 5 of Division 7 of Title 1 of the Government
24Code for purposes of providing instruction to pupils enrolled in
25grades 9 to 12, inclusive, shall not redirect that funding for another
26purpose unless otherwise authorized in law or pursuant to an
27agreement between the regional occupational center or program
28joint powers agency and the contracting county superintendent of
29schools.

30(j) For the 2013-14 and 2014-15 fiscal years only, a county
31superintendent of schools who, in the 2012-13 fiscal year, from
32any of the funding sources identified in paragraph (1) or (2) of
33subdivision (a), received funds on behalf of, or provided funds to,
34a home-to-school transportation joint powers agency established
35in accordance with Article 1 (commencing with Section 6500) of
36Chapter 5 of Division 7 of Title 1 of the Government Code for
37purposes of providing pupil transportation shall not redirect that
38funding for another purpose unless otherwise authorized in law or
39pursuant to an agreement between the home-to-school
P10   1transportation joint powers agency and the contracting county
2superintendent of schools.

3(k) (1) In addition to subdivision (j), of the funds a county
4superintendent of schools receives for home-to-school
5transportation programsbegin insert the county superintendent of schools shall
6expend,end insert
pursuant to Article 2 (commencing with Section 39820)
7of Chapter 1 of Part 23.5 of Division 3 of Title 2, and Article 10
8(commencing with Section 41850) of Chapter 5 of Part 24 of
9Division 3 of Title 2,begin delete the county superintendent of schools shall
10expendend delete
no less for thosebegin delete programend deletebegin insert programsend insert than the amount of
11funds the county superintendent of schools expended for
12home-to-school transportation in the 2012-13 fiscal year.

13(2) For the 2013-14 and 2014-15 fiscal years only, of the funds
14a county superintendent of schools receives for purposes of regional
15occupational centers or programs, or adult education, the county
16superintendent of schools shall expend no less for each of those
17programs than the amount of funds the county superintendent of
18schools expended for purposes of regional occupational centers
19or programs, or adult education, respectively, in the 2012-13 fiscal
20year.

21begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 42238.02 of the end insertbegin insertEducation Codeend insertbegin insert, as added by
22Assembly Bill 97 of the 2013end insert
begin insert-14 Regular Session, is amended to
23read:end insert

24

42238.02.  

(a) The amount computed pursuant to this section
25shall be known as the school district and charter school local
26control funding formula.

27(b) (1) For purposes of this section “unduplicated pupil” means
28a pupil enrolled in a school district or a charter school who is either
29classified as an English learner, eligible to receive a free or
30reduced-price meal, or is a foster youth. A pupil shall be counted
31only once for purposes of this section if any of the following apply:

32(A) The pupil is classified as an English learner and is eligible
33for a free or reduced-price meal.

34(B) The pupil is classified as an English learner and is a foster
35youth.

36(C) The pupil is eligible for a free or reduced-price meal and is
37classified as a foster youth.

38(D) The pupil is classified as an English learner, is eligible for
39a free or reduced-price meal, and is a foster youth.

P11   1(2) Commencing with the 2013-14 fiscal year, a school district
2or charter school shall annually report its enrolled free and
3reduced-price meal eligibility, foster youth, and English learner
4pupil-level records to the Superintendent using the California
5Longitudinal Pupil Achievement Data System.

6(3) (A) Commencing with the 2013-14 fiscal year, a county
7office of education shall review and validate reported English
8learner, foster youth, and free or reduced-price meal eligible pupil
9data for school districts and charter schools under its jurisdiction
10to ensure the data is reported accurately. The Superintendent shall
11provide each county office of education with appropriate access
12to school district and charter school data reports in the California
13Longitudinal Pupil Achievement Data System for purposes of
14ensuring data reporting accuracy.

15(B) The Controller shall include the instructions necessary to
16enforce paragraph (2) in the audit guide required by Section
17 14502.1. The instructions shall include, but are not necessarily
18limited to, procedures for determining if the English learner, foster
19youth, and free or reduced-price meal eligible pupil counts are
20consistent with the school district’s or charter school’s English
21learner, foster youth, and free or reduced-price meal eligible pupil
22records.

23(4) The Superintendent shall make the calculations pursuant to
24this section using the data submitted by local educational agencies,
25including charter schools, through the California Longitudinal
26Pupil Achievement Data System. The Superintendent shall
27authorize school districts and charter schools to review and revise,
28as necessary, their submitted data on English learner, foster youth,
29and free or reduced-price meal eligible pupil counts to ensure the
30accuracy of data reflected in the California Longitudinal Pupil
31Achievement Data System.

32(5) The Superintendent shall annually compute the percentage
33of unduplicated pupils for each school district and charter school
34by dividing the enrollment of unduplicated pupils in a school
35district or charter school by the total enrollment in that school
36district or charter school pursuant to all of the following:

37(A) For the 2013-14 fiscal year, divide the sum of unduplicated
38 pupils for the 2013-14 fiscal year by the sum of the total pupil
39enrollment for the 2013-14 fiscal year.

P12   1(B) For the 2014-15 fiscal year, divide the sum of unduplicated
2pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
3total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

4(C) For the 2015-16 fiscal year and each fiscal year thereafter,
5divide the sum of unduplicated pupils for the current fiscal year
6and the two prior fiscal years by the sum of the total pupil
7enrollment for the current fiscal year and the two prior fiscal years.

8(c) Commencing with the 2013-14 fiscal year and each fiscal
9year thereafter, the Superintendent shall annually calculate a local
10control funding formula grant for each school district and charter
11school in the state pursuant to this section.

12(d) The Superintendent shall compute a grade span adjusted
13base grant equal to the total of the following amounts:

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

15(A) Six thousand eight hundred forty-five dollars ($6,845) for
16average daily attendance in kindergarten and grades 1 to 3,
17inclusive.

18(B) Six thousand nine hundred forty-seven dollars ($6,947) for
19average daily attendance in grades 4 to 6, inclusive.

20(C) Seven thousand one hundred fifty-four dollars ($7,154) for
21average daily attendance in grades 7 and 8.

22(D) Eight thousand two hundred eighty-nine dollars ($8,289)
23for average daily attendance in grades 9 to 12, inclusive.

24(2) In each year the grade span adjusted base grants in paragraph
25(1) shall be adjusted by the percentage change in the annual average
26value of the Implicit Price Deflator for State and Local Government
27Purchases of Goods and Services for the United States, as published
28by the United States Department of Commerce for the 12-month
29period ending in the third quarter of the prior fiscal year. This
30percentage change shall be determined using the latest data
31available as of May 10 of the preceding fiscal year compared with
32the annual average value of the same deflator for the 12-month
33period ending in the third quarter of the second preceding fiscal
34year, using the latest data available as of May 10 of the preceding
35fiscal year, as reported by the Department of Finance.

36(3) (A) The Superintendent shall compute an additional
37adjustment to the kindergarten and grades 1 to 3, inclusive, base
38grant as adjusted for inflation pursuant to paragraph (2) equal to
3910.4 percent. The additional grant shall be calculated by
P13   1multiplying the kindergarten and grades 1 to 3, inclusive, base
2grant as adjusted by paragraph (2) by 10.4 percent.

3(B) Until paragraph (4) of subdivision (b) of Section 42238.03
4is effective, as a condition of the receipt of funds in this paragraph,
5a school district shall make progress toward maintaining an average
6class enrollment of not more than 24 pupils for each schoolsite in
7kindergarten and grades 1 to 3, inclusive, unless a collectively
8bargained alternative annual average class enrollment for each
9schoolsite in those grades is agreed to by the school district,
10pursuant to the following calculation:

11(i) Determine a school district’s average class enrollment for
12each schoolsite for kindergarten and grades 1 to 3, inclusive, in
13the prior year. For the 2013-14 fiscal year, this amount shall be
14the average class enrollment for each schoolsite for kindergarten
15and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

16(ii) Determine a school district’s percentage of total need
17pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

18(iii) Determine the percentage of the need calculated in clause
19(ii) that is met by funding provided to the school district pursuant
20to paragraph (3) of subdivision (b) of Section 42238.03.

21(iv) Determine the difference between the amount computed
22pursuant to clause (i) and an average class enrollment of not more
23than 24 pupils.

24(v) Calculate a current year average class enrollment adjustment
25for each schoolsite for kindergarten and grades 1 to 3, inclusive,
26equal to the adjustment calculated in clause (iv) multiplied by the
27percentage determined pursuant to clause (iii).

28(C) School districts that have an average class enrollment for
29each schoolsite for kindergarten and grades 1 to 3, inclusive, of
3024 pupils or less for each schoolsite in the 2012-13 fiscal year,
31shall be exempt from the requirements of subparagraph (B) so long
32as the school district continues to maintain an average class
33enrollment for each schoolsite for kindergarten and grades 1 to 3,
34inclusive, of not more than 24 pupils, unless a collectively
35bargained alternative ratio is agreed to by the school district.

36(D) Upon full implementation of the local control funding
37formula, as a condition of the receipt of funds in this paragraph,
38all school districts shall maintain an average class enrollment for
39each schoolsite for kindergarten and grades 1 to 3, inclusive, of
40not more than 24 pupils for each schoolsite in kindergarten and
P14   1grades 1 to 3, inclusive, unless a collectively bargained alternative
2ratio is agreed to by the school district.

3(E) The average class enrollment requirement for each schoolsite
4for kindergarten and grades 1 to 3, inclusive, established pursuant
5to this paragraph shall not be subject to waiver by the state board
6pursuant to Section 33050 or by the Superintendent.

7(F) The Controller shall include the instructions necessary to
8enforce this paragraph in the audit guide required by Section
914502.1. The instructions shall include, but are not necessarily
10limited to, procedures for determining if the average class
11enrollment for each schoolsite for kindergarten and grades 1 to 3,
12inclusive, exceeds 24, or an alternative average class enrollment
13for each schoolsite pursuant to a collectively bargained alternative
14ratio. The procedures for determining average class enrollment for
15each schoolsite shall include criteria for employing sampling.

16(4) begin delete(A)end deletebegin deleteend deleteThe Superintendent shall compute an additional
17adjustment to the base grant for grades 9 to 12, inclusive, as
18adjusted for inflation pursuant to paragraph (2), equal to 2.6
19percent. The additional grant shall be calculated by multiplying
20the base grant for grades 9 to 12, inclusive, as adjusted by
21paragraph (2), by 2.6 percent.

begin delete

22(B) A school district or charter school shall expend funds
23appropriated pursuant to this paragraph on pupils enrolled in grades
249 to 12, inclusive, for any purposes or programs that support a
25school district or charter school in achieving its goals for college
26and career readiness as described in a school district’s local control
27and accountability plan pursuant to subparagraph (C) of paragraph
28(4) of subdivision (d) of Section 52060, or a charter school’s plan
29pursuant to Section 47605, 47605.6, or 47606.5, as applicable.

30(C) As a condition of the receipt of funds pursuant to this
31paragraph, a school district or charter school shall report such
32pupil-level college and career readiness information as may be
33approved by the state board to implement subparagraph (ii) of
34subparagraph (F) of paragraph (4) of subdivision (a) of Section
3552052.

36(D) Funds apportioned pursuant to this paragraph are specifically
37intended to fund, and shall be first used to offset, the costs of any
38new programs or higher levels of service required by this
39paragraph.

end delete

P15   1(e) The Superintendent shall compute a supplemental grant
2add-on equal to 20 percent of the base grants as specified in
3subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
4(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
5(d), for each school district’s or charter school’s percentage of
6unduplicated pupils calculated pursuant to paragraph (5) of
7subdivision (b). The supplemental grant shall be calculated by
8multiplying the base grants as specified in subparagraphs (A) to
9(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
10(4), inclusive, of subdivision (d), by 20 percent and by the
11percentage of unduplicated pupils calculated pursuant to paragraph
12(5) of subdivision (b) in that school district or charter school. The
13supplemental grant shall be expended in accordance with the
14regulations adopted pursuant to Section 42238.07.

15(f) The Superintendent shall compute a concentration grant
16add-on equal to 50 percent of the base grants as specified in
17subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
18(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
19(d), for each school district’s or charter school’s percentage of
20unduplicated pupils calculated pursuant to paragraph (5) of
21subdivision (b) in excess of 55 percent of the school district’s or
22charter school’s total enrollment. The concentration grant shall be
23calculated by multiplying the base grant as specified in
24subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
25(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
26(d), by 50 percent and by the percentage of unduplicated pupils
27calculated pursuant to paragraph (5) of subdivision (b) in excess
28of 55 percent of the total enrollment in that school district or charter
29school. For a charter school physically located in only one school
30district, the percentage of unduplicated pupils calculated pursuant
31to paragraph (5) of subdivision (b) in excess of 55 percent used to
32calculate concentration grants shall not exceed the percentage of
33unduplicated pupils calculated pursuant to paragraph (5) of
34subdivision (b) in excess of 55 percent of the school district in
35 which the charter school is physically located. For a charter school
36physically located in more than one school district, the charter
37school’s percentage of unduplicated pupils calculated pursuant to
38paragraph (5) of subdivision (b) in excess of 55 percent used to
39calculate concentration grants shall not exceed that of the school
40district with the highest percentage of unduplicated pupils
P16   1calculated pursuant to paragraph (5) of subdivision (b) in excess
2of 55 percent of the school districts in which the charter school
3has a school facility. The concentration grant shall be expended
4in accordance with the regulations adopted pursuant to Section
542238.07.

6(g) The Superintendent shall compute an add-on to the total
7sum of a school district’s or charter school’s base, supplemental,
8and concentration grants equal to the amount of funding a school
9district or charter school received from funds allocated pursuant
10to the Targeted Instructional Improvement Block Grant program,
11as set forth in Article 6 (commencing with Section 41540) of
12Chapter 3.2, for the 2012-13 fiscal year, as that article read on
13January 1, 2013. A school district or charter school shall not receive
14a total funding amount from this add-on greater than the total
15amount of funding received by the school district or charter school
16from that program in the 2012-13 fiscal year. The amount
17computed pursuant to this subdivision shall reflect the reduction
18specified in paragraph (2) of subdivision (a) of Section 42238.03.

19(h) The Superintendent shall compute an add-on to the total
20sum of a school district’s or charter school’s base, supplemental,
21 and concentration grants equal to the amount of funding a school
22district or charter school received from funds allocated pursuant
23to the Home-to-School Transportation program, as set forth in
24former Article 2 (commencing with Section 39820) of Chapter 1
25of Part 23.5, former Article 10 (commencing with Section 41850)
26of Chapter 5, and the Small School District Transportation
27program, as set forth in former Article 4.5 (commencing with
28Section 42290), for the 2012-13 fiscal year. A school district or
29charter school shall not receive a total funding amount from this
30add-on greater than the total amount received by the school district
31or charter school for that program in the 2012-13 fiscal year. The
32amount computed pursuant to this subdivision shall reflect the
33reduction specified in paragraph (2) of subdivision (a) of Section
3442238.03.

35(i) (1) The sum of the local control funding formula rates
36computed pursuant to subdivisions (c) to (f), inclusive, shall be
37multiplied by:

38(A) For school districts, the average daily attendance of the
39school district in the corresponding grade level ranges computed
40pursuant to Section 42238.05.

P17   1(B) For charter schools, the total current year average daily
2attendance in the corresponding grade level ranges.

3(2) (A) The amount computed pursuant to Article 4
4(commencing with Section 42280) shall be added to the amount
5computed pursuant to paragraphs (1) to (4), inclusive, of
6subdivision (d), as multiplied by subparagraph (A) or (B) of
7paragraph (1), as appropriate.

8(B) The amount added pursuant to this paragraph shall not
9change the calculation of a school district’s or charter school’s
10supplemental grant or concentration grant.

11(j) The Superintendent shall adjust the sum of each school
12district’s or charter school’s amount determined in subdivisions
13(g) to (i), inclusive, pursuant to the calculation specified in Section
1442238.03, less the sum of the following:

15(1) (A) For school districts, the property tax revenue received
16pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
176 (commencing with Section 95) of Part 0.5 of Division 1 of the
18Revenue and Taxation Code.

19(B) For charter schools, the in-lieu property tax amount provided
20to a charter school pursuant to Section 47635.

21(2) The amount, if any, received pursuant to Part 18.5
22(commencing with Section 38101) of Division 2 of the Revenue
23and Taxation Code.

24(3) The amount, if any, received pursuant to Chapter 3
25(commencing with Section 16140) of Part 1 of Division 4 of Title
262 of the Government Code.

27(4) Prior years’ taxes and taxes on the unsecured roll.

28(5) Fifty percent of the amount received pursuant to Section
2941603.

30(6) The amount, if any, received pursuant to the Community
31Redevelopment Law (Part 1 (commencing with Section 33000)
32of Division 24 of the Health and Safety Code), less any amount
33received pursuant to Section 33401 or 33676 of the Health and
34Safety Code that is used for land acquisition, facility construction,
35reconstruction, or remodeling, or deferred maintenance and that
36is not an amount received pursuant to Section 33492.15, or
37paragraph (4) of subdivision (a) of Section 33607.5, or Section
3833607.7 of the Health and Safety Code that is allocated exclusively
39for educational facilities.

P18   1(7) The amount, if any, received pursuant to Sections 34183
2and 34188 of the Health and Safety Code.

3(8) Revenue received pursuant to subparagraph (B) of paragraph
4(3) of subdivision (e) of Section 36 of Article XIII of the California
5Constitution.

6(k) A school district shall annually transfer to each of its charter
7schools funding in lieu of property taxes pursuant to Section 47635.

8(l) (1) Nothing in this section shall be interpreted to authorize
9a school district that receives funding on behalf of a charter school
10pursuant to Section 47651 to redirect this funding for another
11purpose unless otherwise authorized in law pursuant to paragraph
12(2) or pursuant to an agreement between a charter school and its
13chartering authority.

14(2) A school district that receives funding on behalf of a locally
15funded charter school pursuant to paragraph (2) of subdivision (b)
16of Section 42605, Section 42606, and subdivision (b) of Section
1747634 in the 2012-13 fiscal year may annually redirect for another
18purpose a percentage of the amount of the funding received on
19behalf of that charter school. The percentage of funding that may
20be redirected shall be determined pursuant to the following
21computation:

22(A) (i) Determine the sum of the need fulfilled for that charter
23school pursuant to paragraph (3) of subdivision (b) of Section
2442238.03 in the then current fiscal year for the charter school.

25(ii) Determine the sum of the need fulfilled in every fiscal year
26before the then current fiscal year pursuant to paragraph (3) of
27subdivision (b) of Section 42238.03 adjusted for changes in average
28daily attendance pursuant to paragraph (3) of subdivision (a) of
29Section 42238.03 for the charter school.

30(iii) Subtract the amount computed pursuant to paragraphs (1)
31to (3), inclusive, of subdivision (a) of Section 42238.03 from the
32amount computed for that charter school under the local control
33funding formula entitlement computed pursuant to subdivision (i)
34of Section 42238.02.

35(iv) Compute a percentage by dividing the sum of the amounts
36computed to clauses (i) and (ii) by the amount computed pursuant
37to clause (iii).

38(B) Multiply the percentage computed pursuant to subparagraph
39(A) by the amount of funding the school district received on behalf
40of the charter school pursuant to paragraph (2) of subdivision (b)
P19   1of Section 42605, Section 42606, and subdivision (b) of Section
247634 for the 2012-13 fiscal year.

3(C) The maximum amount that may be redirected shall be the
4lesser of the amount of funding the school district received on
5behalf of the charter school pursuant to paragraph (2) of subdivision
6(b) of Section 42605, Section 42606, and subdivision (b) of Section
747634 for the 2012-13 fiscal year or the amount computed pursuant
8to subparagraph (B).

9(3) Commencing with the 2013-14 fiscal year, a school district
10operating one or more affiliated charter schools shall provide each
11affiliated charter school schoolsite with no less than the amount
12of funding the schoolsite received pursuant to the charter school
13block grant in the 2012-13 fiscal year.

14(m) Any calculations in law that are used for purposes of
15determining if a local educational agency is an excess tax school
16entity or basic aid school district, including, but not limited to, this
17section and Sections 42238.03, 41544, 47660, 47632, 47663,
1848310, and 48359.5, and Section 95 of the Revenue and Taxation
19Code, shall be made exclusive of the revenue received pursuant
20to subparagraph (B) of paragraph (3) of subdivision (e) of Section
2136 of Article XIII of the California Constitution.

22(n) A school district that does not receive an apportionment of
23state funds pursuant to this section as implemented pursuant to
24Section 42238.03, excluding funds apportioned pursuant to the
25requirements of subdivision (d) of Section 42238.03 shall be
26considered a “basic aid school district” or an “excess tax entity.”

27(o) The funds apportioned pursuant to this section and Section
2842238.03 shall be available to implement the activities required
29pursuant to Article 4.5 (commencing with Section 52060) of
30Chapter 6.1 of Part 28 of Division 4 of Title 2.

31begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 42238.03 of the end insertbegin insertEducation Codeend insertbegin insert, as added by
32Assembly Bill 97 of the 2013end insert
begin insert-14 Regular Session, is amended to
33read:end insert

34

42238.03.  

(a) Commencing with the 2013-14 fiscal year and
35each fiscal year thereafter, the Superintendent shall calculate a
36base entitlement for the transition to the local control funding
37formula for each school district and charter school equal to the
38sum of the amounts computed pursuant to paragraphs (1) to (4),
39inclusive. The amounts computed pursuant to paragraphs (1) to
P20   1(6), inclusive, shall be continuously appropriated pursuant to
2Section 14002.

3(1) The current fiscal year base entitlement funding level shall
4be the sum of all of the following:

5(A) For school districts, revenue limits in the 2012-13 fiscal
6year as computed pursuant to Article 2 (commencing with Section
742238), as that article read on January 1, 2013, divided by the
82012-13 average daily attendance of the school district computed
9pursuant to Section 42238.05. That quotient shall be multiplied
10by the current fiscal year average daily attendance of the school
11district computed pursuant Section 42238.05.

12(B) (i) For charter schools, general purpose funding as
13computed pursuant to Article 2 (commencing with Section 47633)
14of Chapter 6, as that article read on January 1, 2013, and the
15amount of in-lieu property tax provided to the charter school
16pursuant to Section 47635, as that section read on June 30, 2013,
17divided by the 2012-13 average daily attendance of the charter
18school computed pursuant to Section 42238.05. That quotient shall
19be multiplied by the current fiscal year average daily attendance
20of the charter school computed pursuant to Section 42238.05.

21(ii) The amount computed pursuant to clause (i) shall exclude
22funds received by a charter school pursuant to Section 47634.1,
23as that section read on January 1, 2013.

24(C) The amount computed pursuant to subparagraphs (A) and
25(B) shall exclude funds received pursuant to Section 47633, as that
26section read on January 1, 2013.

27(D) The amount computed pursuant to subparagraph (A) shall
28exclude amounts computed pursuant to Article 4 (commencing
29with Section 42280). Funding for qualifying necessary small high
30school and necessary small elementary schools shall be adjusted
31pursuant Article 4 (commencing with Section 42280) and Section
3242238.146, as those provisions read on January 1, 2013.

33(2) Entitlements from items contained in Section 2.00, as
34adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
35Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
366110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
376110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
386110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
396110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
406110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
P21   16110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
26110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
36110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
46110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
5the Class Size Reduction Program pursuant to Chapter 6.10
6(commencing with Section 52120) of Part 28 of Division 4, as it
7read on January 1, 2013, and 2012-13 fiscal year funding for pupils
8enrolled in community day schools who are mandatorily expelled
9pursuant to subdivision (c) of Section 48915. The entitlement for
10basic aid school districts shall include the reduction of 8.92 percent
11as applied pursuant to subparagraph (A) of paragraph (1) of
12 subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

13(3) The allocations pursuant to Sections 42606 and 47634.1, as
14those sections read on January 1, 2013, divided by the 2012-13
15average daily attendance of the charter school computed pursuant
16to Section 42238.05. That quotient shall be multiplied by the
17current fiscal year average daily attendance of the charter school
18computed pursuant to Section 42238.05.

19(4) The amount allocated to a school district or charter school
20pursuant to paragraph (3) of subdivision (b) for the fiscal years
21before the current fiscal year divided by the average daily
22attendance of the school district or charter school for the fiscal
23years before the current fiscal year computed pursuant to Section
2442238.05. That quotient shall be multiplied by the current fiscal
25year average daily attendance of the school district or charter school
26 computed pursuant to Section 42238.05.

27(5) For the 2013-14 and 2014-15 fiscal years only, a school
28district that, in the 2012-13 fiscal year, from any of the funding
29sources identified in paragraph (1) or (2), received funds on behalf
30of, or provided funds to, a regional occupational center or program
31joint powers agency established in accordance with Article 1
32(commencing with Section 6500) of Chapter 5 of Division 7 of
33Title 1 of the Government Code for purposes of providing
34instruction to secondary pupils shall not redirect that funding for
35another purpose unless otherwise authorized in law or pursuant to
36an agreement between the regional occupational center or program
37joint powers agency and the contracting school district.

38(6) (A) For the 2013-14 and 2014-15 fiscal years only, a school
39district that, in the 2012-13 fiscal year, from any of the funding
40 sources identified in paragraph (1) or (2), received funds on behalf
P22   1of, or provided funds to, a home-to-school transportation joint
2powers agency established in accordance with Article 1
3(commencing with Section 6500) of Chapter 5 of Division 7 of
4Title 1 of the Government Code for purposes of providing pupil
5transportation shall not redirect that funding for another purpose
6unless otherwise authorized in law or pursuant to an agreement
7between the home-to-school transportation joint powers agency
8and the contracting school district.

9(B) In addition to subparagraph (A), of the funds a school district
10receives for home-to-school transportation programsbegin insert the school
11district shall expend,end insert
pursuant to Article 2 (commencing with
12Section 39820) of Chapter 1 of Part 23.5, and Article 10
13(commencing with Section 41850) of Chapter 5,begin delete the school district
14shall expendend delete
no lessbegin insert for those programsend insert than the amount of funds
15the school district expended for home-to-school transportation in
16the 2012-13 fiscal year.

17(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
18a school district receives for purposes of regional occupational
19centers or programs, or adult education, the school district shall
20expend no less than the amount of funds the school district
21expended for purposes of regional occupational centers or
22programs, or adult education, respectively, in the 2012-13 fiscal
23year.

24(b) Compute an annual local control funding formula transition
25adjustment for each school district and charter school as follows:

26(1) Subtract the amount computed pursuant to paragraphs (1)
27to (4), inclusive, of subdivision (a) from the amount computed for
28each school district or charter school under the local control
29funding formula entitlements computed pursuant to subdivision
30(i) of Section 42238.02. School districts and charter schools with
31a negative difference shall be deemed to have a zero difference.

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

37(3) Each school district’s and charter school’s proportion of
38total need shall be multiplied by any available appropriations
39specifically made for purposes of this subdivision, and added to
P23   1the school district’s or charter school’s funding amounts as
2calculated pursuant to subdivision (a).

3(4) If the total amount of funds appropriated for purposes of
4paragraph (3) pursuant to this subdivision are sufficient to fully
5fund any positive amounts computed pursuant to paragraph (1),
6the local control funding formula grant computed pursuant to
7subdivision (c) of Section 42238.02 shall be adjusted to ensure
8that any available appropriation authority is expended for purposes
9of the local control funding formula.

10(5) Commencing with the first fiscal year after either paragraph
11(4) or paragraph (2) of subdivision (h) applies, the adjustments in
12paragraph (2) of subdivision (d) of Section 42238.02 shall be made
13only if an appropriation for those adjustments is included in the
14annual Budget Act.

15(c) The Superintendent shall subtract from the amounts
16computed pursuant to subdivisions (a) and (b) the sum of the
17following:

18(1) (A) For school districts, the property tax revenue received
19pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
206 (commencing with Section 95) of Part 0.5 of Division 1 of the
21Revenue and Taxation Code.

22(B) For charter schools, the in-lieu property tax amount provided
23to a charter school pursuant to Section 47635.

24(2) The amount, if any, received pursuant to Part 18.5
25(commencing with Section 38101) of Division 2 of the Revenue
26and Taxation Code.

27(3) The amount, if any, received pursuant to Chapter 3
28(commencing with Section 16140) of Part 1 of Division 4 of Title
292 of the Government Code.

30(4) Prior years’ taxes and taxes on the unsecured roll.

31(5) Fifty percent of the amount received pursuant to Section
3241603.

33(6) The amount, if any, received pursuant to the Community
34Redevelopment Law (Part 1 (commencing with Section 33000)
35of Division 24 of the Health and Safety Code), less any amount
36received pursuant to Section 33401 or 33676 of the Health and
37Safety Code that is used for land acquisition, facility construction,
38reconstruction, or remodeling, or deferred maintenance and that
39is not an amount received pursuant to Section 33492.15, or
40paragraph (4) of subdivision (a) of Section 33607.5, or Section
P24   133607.7 of the Health and Safety Code that is allocated exclusively
2for educational facilities.

3(7) The amount, if any, received pursuant to Sections 34183
4and 34188 of the Health and Safety Code.

5(8) Revenue received pursuant to subparagraph (B) of paragraph
6(3) of subdivision (e) of Section 36 of Article XIII of the California
7Constitution.

8(d) A school district or charter school that has a zero difference
9pursuant to paragraph (1) of subdivision (b) in the prior fiscal year
10shall receive an entitlement equal to the amount calculated pursuant
11to Section 42238.02 in the current fiscal year and future fiscal
12years.

13(e) Notwithstanding the computations pursuant to subdivisions
14(b) to (d), inclusive, and Section 42238.02, commencing with the
152013-14 fiscal year, a school district or charter school shall receive
16state-aid funding of no less than the sum of the amounts computed
17pursuant to paragraphs (1) to (3), inclusive.

18(1) (A) For school districts, revenue limits in the 2012-13 fiscal
19year as computed pursuant to Article 2 (commencing with Section
2042238), as that article read on January 1, 2013, divided by the
212012-13 average daily attendance of the school district computed
22pursuant to Section 42238.05. That quotient shall be multiplied
23by the current fiscal year average daily attendance of the school
24district computed pursuant Section 42238.05 and then offset for
25local revenues pursuant to subdivision (c) for the current fiscal
26year.

27(B) (i) For charter schools, general purpose funding in the
282012-13 fiscal year as computed pursuant to Article 2
29(commencing with Section 47633) of Chapter 6, as that article
30read on January 1, 2013, and the amount of in-lieu property tax
31provided to the charter school in the 2012-13 fiscal year pursuant
32to Section 47635, as that section read on January 1, 2013, divided
33by the 2012-13 average daily attendance of the charter school
34computed pursuant to Section 42238.05. That quotient shall be
35multiplied by the current fiscal year average daily attendance of
36the charter school computed pursuant to Section 42238.05 and
37then offset for local revenues pursuant to subdivision (c) for the
38current fiscal year.

P25   1(ii) The amount computed pursuant to clause (i) shall exclude
2funds received by a charter school pursuant to Section 47634.1,
3as that section read on January 1, 2013.

4(C) The amount computed pursuant to subparagraphs (A) and
5(B) shall exclude funds received pursuant to Section 47633, as that
6section read on January 1, 2013.

7(D) The amount computed pursuant to subparagraph (A) shall
8exclude amounts computed pursuant to Article 4 (commencing
9with Section 42280). Funding for qualifying necessary small high
10school and necessary small elementary schools shall be adjusted
11pursuant Article 4 (commencing with Section 42280) and Section
1242238.146, as those provisions read on January 1, 2013.

13(E) The amount computed pursuant to subparagraphs (A) to
14(C), inclusive, shall be reduced by the sum of the amount computed
15pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).

16(2) (A) Entitlements from items contained in Section 2.00, as
17adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
18Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
196110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
206110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
216110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
226110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
236110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
246110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
256110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
266110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
276110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
28the Class Size Reduction Program pursuant to Chapter 6.10
29(commencing with Section 52120) of Part 28 of Division 4, as it
30read on January 1, 2013, and 2012-13 fiscal year funding for pupils
31enrolled in community day schools who are mandatorily expelled
32pursuant to subdivision (c) of Section 48915. Notwithstanding
33Section 39 of Chapter 38 of the Statutes of 2012, the entitlement
34for basic aid school districts shall include the reduction of 8.92
35percent as applied pursuant to subparagraph (A) of paragraph (1)
36of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

37(3) The allocations pursuant to Sections 42606 and 47634.1, as
38those sections read on January 1, 2013, divided by the 2012-13
39average daily attendance of the charter school. That quotient shall
P26   1be multiplied by the current fiscal year average daily attendance
2of the charter school.

3(f) (1) For purposes of this section, commencing with the
42013-14 fiscal year and until all school districts and charter schools
5equal or exceed their local control funding formula target computed
6pursuant to Section 42238.02 as determined by the calculation of
7a zero difference pursuant to paragraph (1) of subdivision (b), a
8newly operational charter school shall be determined to have a
9prior year per average daily attendance funding amount equal to
10the lesser of:

11(A) The prior year funding amount per unit of average daily
12attendance for the school district in which the charter school is
13physically located. The Superintendent shall calculate the funding
14amount per unit of average daily attendance for this purpose by
15dividing the total local control funding formula entitlement received
16by that school district in the prior year by prior year average daily
17attendance of that school district. For purposes of this paragraph,
18a charter school that is physically located in more than one school
19district shall use the calculated local control funding entitlement
20per unit of average daily attendance of the school district with the
21highest prior year funding amount per unit of average daily
22attendance.

23(B) The charter school’s local control funding formula rate
24computed pursuant to subdivisions (c) to (i), inclusive, of Section
2542238.02.

26(2) For charter schools funded pursuant to paragraph (1), the
27charter school shall be eligible to receive growth funding pursuant
28to subdivision (b) toward meeting the newly operational charter
29school’s local control funding formula target.

30(3) Upon a determination that all school districts and charter
31schools equal or exceed the local control funding formula target
32computed pursuant to Section 42238.02 as determined by the
33calculation of a zero difference pursuant to paragraph (1) of
34subdivision (b) for all school districts and charter schools, this
35subdivision shall not apply and the charter school shall receive an
36allocation equal to the amount calculated under Section 42238.02
37in that fiscal year and future fiscal years.

38(g) (1) In each fiscal year the Superintendent shall determine
39the percentage of school districts that are apportioned funding
40pursuant to this section that is less than the amount computed
P27   1pursuant to Section 42238.02 as of the second principal
2apportionments of the fiscal year. If the percentage is less than 10
3percent, the Superintendent shall apportion funding to the school
4districts and charter schools equal to the amount computed pursuant
5to Section 42238.02 in that fiscal year.

6(2) For each fiscal year thereafter, the Superintendent shall
7apportion funding to a school district and charter school equal to
8the amount computed pursuant to Section 42238.02.

9begin insert

begin insertSEC. 4.end insert  

end insert

begin insertItem 6110-106-0001 of Section 2.00 of Assembly Bill
10110 of 2013-end insert
begin insert14 Regular Session is amended to read:end insert

 

6110-106-0001--For local assistance, Department of Education (Proposition 98), for transfer to Section A of the State School Fund, for support of the Californiabegin delete Local Control Accountability Support Networkend deletebegin insert Collaborative for Educational Excellenceend insert   

10,000,000
 Provisions:
 1.Funds appropriated in this item shall be used to support the Californiabegin delete Local Control Accountability Support Network, composed of regional Mentor Teamsend deletebegin insert Collaborative for Educational Excellenceend insert to assist in the improvement of Local Control and Accountability Plans (LCAP) established in Articlebegin delete 3.8end deletebegin insert 4.5end insert (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code. Up to $300,000 of this amount may be used to support a statewide evaluation to measure the effectiveness of thebegin delete support networkend deletebegin insert California Collaborative for Educational Excellenceend insert in responding to the needs of localbegin delete educationend deletebegin insert educationalend insert agencies. 

 

32begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

Sections 1 to 4, inclusive, of this bill shall only become
33operative if Assembly Bill 97 of the 2013-14 Regular Session is
34enacted.

end insert
35begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
36to the Budget Bill within the meaning of subdivision (e) of Section
3712 of Article IV of the California Constitution, has been identified
38as related to the budget in the Budget Bill, and shall take effect
39immediately.

end insert
begin deleteP28   1

SECTION 1.  

Section 1622 of the Education Code is amended to
2read:

3

1622.  

(a) On or before July 1 of each fiscal year, the county
4board of education shall adopt an annual budget for the budget
5year and shall file the budget with the Superintendent, the county
6board of supervisors, and the county auditor. The budget, and
7supporting data, shall be maintained and made available for public
8review. The budget shall indicate the date, time, and location at
9which the county board of education held the public hearing
10required under Section 1620. For the 2014-15 fiscal year and each
11fiscal year thereafter, the county board of education shall not adopt
12a budget before the county board of education adopts a local control
13and accountability plan or approves an update to an existing local
14control and accountability plan if an existing local control and
15accountability plan or update to a local control and accountability
16plan is not effective during the budget year. The county board of
17education shall not adopt a budget that does not include the
18expenditures identified in the local control and accountability plan
19and any annual update to the local control and accountability plan
20that will be effective in the subsequent fiscal year.

21(b) (1) The Superintendent shall examine the budget to
22determine if it (A) complies with the standards and criteria adopted
23by the state board pursuant to Section 33127 for application to
24final local educational agency budgets, (B) allows the county office
25of education to meet its financial obligations during the fiscal year,
26and (C) is consistent with a financial plan that will enable the
27county office of education to satisfy its multiyear financial
28commitments. In addition, the Superintendent shall identify any
29technical corrections to the budget that must be made. On or before
30August 15, the Superintendent shall approve or disapprove the
31budget and, in the event of a disapproval, transmit to the county
32office of education in writing his or her recommendations regarding
33revision of the budget and the reasons for those recommendations.

34(2) For the 2011-12 fiscal year, notwithstanding any of the
35standards and criteria adopted by the state board pursuant to Section
3633127, the Superintendent, as a condition on approval of a county
37office of education budget, shall not require a county office of
38education to project a lower level of revenue per unit of average
39daily attendance than it received in the 2010-11 fiscal year nor
40require the county superintendent to certify in writing whether or
P29   1not the county office of education is able to meet its financial
2obligations for the two subsequent fiscal years.

3(3) For the 2014-15 fiscal year and each fiscal year thereafter,
4the Superintendent shall disapprove a budget if any of the following
5occur:

6(A) The Superintendent has not approved a local control and
7accountability plan or an annual update to the local control and
8accountability plan filed by a county superintendent of schools
9pursuant to Section 52067.

10(B) The Superintendent determines that the budget does not
11include the expenditures necessary to implement the local control
12and accountability plan or an annual update to the local control
13and accountability plan that is effective for that budget year.

14(c) On or before September 8, the county board of education
15shall revise the county office of education budget to reflect changes
16in projected income or expenditures subsequent to July 1, and to
17include any response to the recommendations of the
18Superintendent, shall adopt the revised budget, and shall file the
19revised budget with the Superintendent, the county board of
20supervisors, and the county auditor. Before revising the budget,
21the county board of education shall hold a public hearing regarding
22the proposed revisions, which shall be made available for public
23inspection not less than three working days before the hearing.
24The agenda for that hearing shall be posted at least 72 hours before
25the public hearing and shall include the location where the budget
26will be available for public inspection. The revised budget, and
27supporting data, shall be maintained and made available for public
28review.

29(d) The Superintendent shall examine the revised budget to
30determine if it complies with the standards and criteria adopted by
31the state board pursuant to Section 33127 for application to final
32local educational agency budgets and, no later than October 8,
33shall approve or disapprove the revised budget. For the 2014-15
34fiscal year and each fiscal year thereafter, the Superintendent shall
35disapprove a revised budget if the Superintendent determines that
36the revised budget does not include the expenditures necessary to
37implement the local control and accountability or an annual update
38to the local control and accountability plan approved by the
39Superintendent pursuant to Section 52067. If the Superintendent
40disapproves the budget, he or she shall call for the formation of a
P30   1budget review committee pursuant to Section 1623. For the
22011-12 fiscal year, notwithstanding any of the standards and
3criteria adopted by the state board pursuant to Section 33127, the
4Superintendent, as a condition on approval of a county office of
5education budget, shall not require a county office of education to
6project a lower level of revenue per unit of average daily attendance
7than it received in the 2010-11 fiscal year nor require the county
8superintendent to certify in writing whether or not the county office
9of education is able to meet its financial obligations for the two
10subsequent fiscal years.

11(e) Notwithstanding any other provision of this section, the
12budget review for a county office of education shall be governed
13by paragraphs (1), (2), and (3) of this subdivision, rather than by
14subdivisions (c) and (d), if the county board of education so elects,
15and notifies the Superintendent in writing of that decision, no later
16than October 31 of the immediately preceding calendar year.

17(1) In the event of the disapproval of the budget of a county
18office of education pursuant to subdivision (b), on or before
19September 8, the county superintendent of schools and the county
20board of education shall review the recommendations of the
21Superintendent at a regularly scheduled meeting of the county
22board of education and respond to those recommendations. That
23response shall include the proposed actions to be taken, if any, as
24a result of those recommendations.

25(2) No later than October 8, after receiving the response required
26under paragraph (1), the Superintendent shall review that response
27and either approve or disapprove the budget of the county office
28of education. For the 2014-15 fiscal year and each fiscal year
29thereafter, the Superintendent shall disapprove a budget if the
30Superintendent determines that the budget adopted by the county
31board of education does not include the expenditures necessary to
32implement the local control and accountability plan or an annual
33update to the local control and accountability plan approved by
34the Superintendent pursuant to Section 52067. If the Superintendent
35disapproves the budget, he or she shall call for the formation of a
36budget review committee pursuant to Section 1623.

37(3) Not later than 45 days after the Governor signs the annual
38Budget Act, the county office of education shall make available
39for public review any revisions in revenues and expenditures that
P31   1it has made to its budget to reflect the funding made available by
2that Budget Act.

end delete
begin delete3

SEC. 2.  

Chapter 12.5 (commencing with Section 2574) is added
4to Part 2 of Division 1 of Title 1 of the Education Code, to read:

5 

6Chapter  12.5. County Local Control Funding Formula
7

 

8

2574.  

For the 2013-14 fiscal year and for each fiscal year
9thereafter, the Superintendent annually shall calculate a county
10local control funding formula for each county superintendent of
11schools as follows:

12(a) Compute a county office of education operations grant equal
13to the sum of each of the following amounts:

14(1) Six hundred fifty-five thousand nine hundred twenty dollars
15($655,920).

16(2) One hundred nine thousand three hundred twenty dollars
17($109,320) multiplied by the number of school districts for which
18the county superintendent of schools has jurisdiction pursuant to
19Section 1253.

20(3) (A) Seventy dollars ($70) multiplied by the number of units
21of countywide average daily attendance, up to a maximum of
2230,000 units. For purposes of this section, countywide average
23daily attendance means the aggregate number of annual units of
24average daily attendance within the county attributable to all school
25districts for which the county superintendent of schools has
26jurisdiction pursuant to Section 1253, charter schools physically
27located within the county, and the schools operated by the county
28superintendent of schools.

29(B) Sixty dollars ($60) multiplied by the number of units of
30countywide average daily attendance for the portion of countywide
31average daily attendance, if any, above 30,000 units, up to a
32maximum of 60,000 units.

33(C) Fifty dollars ($50) multiplied by the number of units of
34countywide average daily attendance for the portion of countywide
35average daily attendance, if any, above 60,000, up to a maximum
36of 140,000 units.

37(D) Forty dollars ($40) multiplied by the number of units of
38countywide average daily attendance for the portion of countywide
39average daily attendance, if any, above 140,000 units.

P32   1(4) For the 2014-15 fiscal year and each fiscal year thereafter,
2adjust each of the amounts provided in the prior year pursuant to
3paragraphs (1), (2), and (3) by the percentage change in the annual
4average value of the Implicit Price Deflator for State and Local
5Government Purchases of Goods and Services for the United States,
6as published by the United States Department of Commerce for
7the 12-month period ending in the third quarter of the prior fiscal
8year. This percentage change shall be determined using the latest
9data available as of May 10 of the preceding fiscal year compared
10with the annual average value of the same deflator for the 12-month
11period ending in the third quarter of the second preceding fiscal
12year, using the latest data available as of May 10 of the preceding
13fiscal year, as reported by the Department of Finance.

14(b) Determine the enrollment percentage of unduplicated pupils
15pursuant to the following:

16(1) (A) For the 2013-14 fiscal year, divide the enrollment of
17unduplicated pupils in all schools operated by a county
18superintendent of schools in the 2013-14 fiscal year by the total
19enrollment in those schools in the 2013-14 fiscal year.

20(B) For the 2014-15 fiscal year, divide the sum of the enrollment
21of unduplicated pupils in all schools operated by a county
22superintendent of schools in the 2013-14 and 2014-15 fiscal years
23by the sum of the total enrollment in those schools in the 2013-14
24and 2014-15 fiscal years.

25(C) For the 2015-16 fiscal year and each fiscal year thereafter,
26divide the sum of the enrollment of unduplicated pupils in all
27schools operated by a county superintendent of schools in the
28current fiscal year and the two prior fiscal years by the sum of the
29total enrollment in those schools in the current fiscal year and the
30two prior fiscal years.

31(D) For purposes of determining the enrollment percentage of
32unduplicated pupils pursuant to this subdivision, enrollment in
33schools or classes established pursuant to Article 2.5 (commencing
34with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
352 and the enrollment of pupils other than the pupils identified in
36clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
37of subdivision (c), shall be excluded from the calculation of the
38enrollment percentage of unduplicated pupils.

39(2) For purposes of this section, an “unduplicated pupil” is a
40pupil who is classified as an English learner, eligible to receive a
P33   1free or reduced-price meal, or a foster youth. For purposes of this
2section, the definitions in Section 42238.01 of an English learner,
3a pupil eligible to receive a free or reduced-price meal, and foster
4youth shall apply. A pupil shall be counted only once for purposes
5of this section if any of the following apply:

6(A) The pupil is classified as an English learner and is eligible
7for a free or reduced-price meal.

8(B) The pupil is classified as an English learner and is a foster
9youth.

10(C) The pupil is eligible for a free or reduced-price meal and is
11classified as a foster youth.

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

14(3) (A) Commencing with the 2013-14 fiscal year, a county
15superintendent of schools annually shall report the enrollment of
16unduplicated pupils, pupils classified as English learners, pupils
17eligible for free and reduced-price meals, and foster youth in
18schools operated by the county superintendent of schools to the
19Superintendent using the California Longitudinal Pupil
20Achievement Data System.

21(B) The Superintendent shall make the calculations pursuant to
22this section using the data submitted through the California
23Longitudinal Pupil Achievement Data System.

24(C) The Controller shall include instructions, as appropriate, in
25the audit guide required by subdivision (a) of Section 14502.1 for
26determining if the data reported by a county superintendent of
27schools using the California Longitudinal Pupil Achievement Data
28System is consistent with pupil data records maintained by the
29county office of education.

30(c) Compute an alternative education grant equal to the sum of
31the following:

32(1) (A) For the 2013-14 fiscal year, a base grant equal to the
332012-13 per pupil undeficited statewide average juvenile court
34school base revenue limit calculated pursuant to Article 3
35(commencing with Section 2550), as that article read on January
361, 2013.

37(B) Commencing with the 2013-14 fiscal year, the per pupil
38base grant shall be adjusted by the percentage change in the annual
39average value of the Implicit Price Deflator for State and Local
40Government Purchases of Goods and Services for the United States,
P34   1as published by the United States Department of Commerce for
2the 12-month period ending in the third quarter of the prior fiscal
3year. This percentage change shall be determined using the latest
4data available as of May 10 of the preceding fiscal year compared
5with the annual average value of the same deflator for the 12-month
6period ending in the third quarter of the second preceding fiscal
7year, using the latest data available as of May 10 of the preceding
8fiscal year, as reported by the Department of Finance.

9(2) A supplemental grant equal to 35 percent of the base grant
10described in paragraph (1) multiplied by the enrollment percentage
11calculated in subdivision (b). The supplemental grant shall be
12expended in accordance with the regulations adopted pursuant to
13Section 42238.07.

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

17(i) The enrollment percentage calculated in subdivision (b) less
1850 percent.

19(ii) Zero.

20(B) The concentration grant shall be expended in accordance
21with the regulations adopted pursuant to Section 42238.07.

22(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
23total number of units of average daily attendance for pupils
24attending schools operated by a county office of education,
25excluding units of average daily attendance for pupils attending
26schools or classes established pursuant to Article 2.5 (commencing
27with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
282, who are any of the following:

29(i) Probation-referred pursuant to Sections 300, 601, 602, and
30654 of the Welfare and Institutions Code.

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

32(iii) Expelled for any of the reasons specified in subdivision (a)
33or (c) of Section 48915.

34(B) Multiply the number of units of average daily attendance
35for pupils attending schools or classes established pursuant to
36Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
3727 of Division 4 of Title 2 by the sum of the base grant calculated
38in paragraph (1), a supplemental grant equal to 35 percent of the
39base grant pursuant to paragraph (1), and a concentration grant
40equal to 17.5 percent of the base grant pursuant to paragraph (1).
P35   1Funds provided for the supplemental and concentration grants
2pursuant to this calculation shall be expended in accordance with
3the regulations adopted pursuant to Section 42238.07.

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

5(d) Add the amount calculated in subdivision (a) to the amount
6calculated in subparagraph (C) of paragraph (4) of subdivision (c).

7(e) Add all of the following to the amount calculated in
8subdivision (d):

9(1) The amount of funding a county superintendent of schools
10received for the 2012-13 fiscal year from funds allocated pursuant
11to the Targeted Instructional Improvement Block Grant program,
12as set forth in Article 6 (commencing with Section 41540) of
13Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
14on January 1, 2013.

15(2) (A) The amount of funding a county superintendent of
16schools received for the 2012-13 fiscal year from funds allocated
17pursuant to the Home to School Transportation program, as set
18forth in Article 2 (commencing with Section 39820) of Chapter 1
19of Part 23.5 of Division 3 of Title 2, and Article 10 (commencing
20with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title
212, as those articles read on January 1, 2013.

22(B) On or before March 1, 2014, the Legislative Analyst’s Office
23shall submit recommendations to the fiscal committees of both
24houses of the Legislature regarding revisions to the methods of
25funding pupil transportation that address historical funding
26inequities across county offices of education and school districts
27and improve incentives for local educational agencies to provide
28efficient and effective pupil transportation services.

29(f) The funds apportioned pursuant to this section and Section
302575 shall be available to implement the activities required
31pursuant to Article 4.5 (commencing with Section 52060) of
32Chapter 6.1 of Part 28 of Division 4 of Title 2.

33

2575.  

(a) Commencing with the 2013-14 budget year and for
34each fiscal year thereafter, the Superintendent shall calculate a
35base entitlement for the transition to the county local control
36funding formula for each county office of education based on the
37sum of the amounts computed pursuant to paragraphs (1) to (3),
38inclusive:

39(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
403 (commencing with Section 2550) of Chapter 12, as that article
P36   1read on January 1, 2013, adjusted only for changes in average daily
2attendance claimed by the county superintendent of schools for
3pupils identified in clauses (i), (ii), and (iii) of subparagraph (A)
4of paragraph (4) of subdivision (c) of Section 2574 and for pupils
5attending juvenile court schools. All other average daily attendance
6claimed by the county superintendent of schools and any other
7average daily attendance used for purposes of calculating revenue
8limits pursuant to Article 3 (commencing with Section 2550) of
9Chapter 12, as that article read on January 1, 2013, shall be
10considered final for purposes of this section as of the annual
11apportionment for the 2012-13 fiscal year, as calculated for
12purposes of the certification required on or before February 20,
132014, pursuant to Section 41332.

14(2) The sum of both of the following:

15(A) The amount of funding received from appropriations
16contained in Section 2.00 of the Budget Act of 2012, as adjusted
17by Section 12.42, in the following items: 6110-104-0001,
186110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
196110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
206110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
216110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
226110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
236110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
246110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
256110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
266110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
276110-267-0001, 6110-268-0001, and 6360-101-0001, 2012-13
28fiscal year funding for the Class Size Reduction Program pursuant
29to Chapter 6.10 (commencing with Section 52120) of Part 28 of
30Division 4 of Title 2, as it read on January 1, 2013, and 2012-13
31fiscal year funding for pupils enrolled in community day schools
32who are mandatorily expelled pursuant to subdivision (c) of Section
3348915.

34(B) The amount of local revenues used to support a regional
35occupational center or program established and maintained by a
36county superintendent of schools pursuant to Section 52301.

37(3) For the 2014-15 fiscal year and for each fiscal year
38thereafter, the sum of the amounts apportioned to the county office
39of education pursuant to subdivision (f) in all prior years.

P37   1(b) The Superintendent shall annually compute a county local
2control funding formula transition adjustment for each county
3superintendent of schools as follows:

4(1) Subtract the amount computed pursuant to subdivision (a)
5from the amount computed pursuant to subdivision (e) of Section
62574. A difference of less than zero shall be deemed to be zero.

7(2) Divide the difference for each county superintendent of
8schools calculated pursuant to paragraph (1) by the total sum of
9the differences for all county superintendents of schools calculated
10pursuant to paragraph (1).

11(3) Multiply the proportion calculated for each county office of
12education pursuant to paragraph (2) by the amount of funding
13specifically appropriated for purposes of subdivision (f). The
14amount calculated shall not exceed the difference for the county
15superintendent of schools calculated pursuant to paragraph (1).

16(c) The Superintendent shall subtract from the amount calculated
17pursuant to subdivision (a) the sum of each of the following:

18(1) Local property tax revenues received pursuant to Section
192573 in the then current fiscal year.

20(2) Any amounts that the county superintendent of schools was
21required to maintain as restricted and not available for expenditure
22in the 1978-79 fiscal year as specified in the second paragraph of
23subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
24as amended by Chapter 51 of the Statutes of 1979.

25(3) The amount received pursuant to subparagraph (C) of
26paragraph (3) of subdivision (a) of Section 33607.5 of the Health
27and Safety Code that is considered property taxes pursuant to that
28section.

29(4) The amount, if any, received pursuant to Sections 34177,
3034179.5, 34179.6, and 34188 of the Health and Safety Code.

31(5) The amount, if any, received pursuant to subparagraph (B)
32of paragraph (3) of subdivision (e) of Section 36 of Article XIII
33of the California Constitution.

34(d) The Superintendent shall subtract from the amount computed
35pursuant to subdivision (e) of Section 2574 the sum of the amounts
36computed pursuant to paragraphs (1) to (5), inclusive, of
37subdivision (c).

38(e) The Superintendent shall annually apportion to each county
39superintendent of schools the amount calculated pursuant to
40subdivision (c) unless the amount computed pursuant to subdivision
P38   1(c) is negative. If the amount computed is negative, except as
2provided in subdivision (f), an amount of property tax of the county
3superintendent of schools equal to the negative amount shall be
4deemed restricted and not available for expenditure during the
5fiscal year. In the following fiscal year, that amount, excluding
6any amount of funds used for purposes of subdivision (f), shall be
7considered restricted local property tax revenue for purposes of
8subdivision (a) of Section 2578. State aid shall not be apportioned
9to the county superintendent of schools pursuant to this subdivision
10if the amount computed pursuant to subdivision (c) is negative.

11(f) (1) The Superintendent shall apportion, from an
12appropriation specifically made for this purpose, the amount
13computed pursuant to subdivision (b), or, if the amount computed
14pursuant to subdivision (c) is negative, the sum of the amounts
15computed pursuant to subdivisions (b) and (c) if the sum if greater
16than zero.

17(2) The Superintendent shall apportion any portion of the
18appropriation made for purposes of paragraph (1) that is not
19apportioned pursuant to paragraph (1) pursuant to the following
20calculation:

21(A) Add the amount calculated pursuant to subdivision (b) to
22the amount computed pursuant to subdivision (a) for a county
23superintendent of schools.

24(B) Subtract the amount computed pursuant to subparagraph
25(A) from the amount computed pursuant to subdivision (e) of
26Section 2574 for the county superintendent of schools.

27(C) Divide the difference for the county superintendent of
28schools computed pursuant to subparagraph (B) by the sum of the
29differences for all county superintendents of schools computed
30pursuant to subparagraph (B).

31(D) Multiply the proportion computed pursuant to subparagraph
32(B) by the unapportioned balance in the appropriation.

33(E) Apportion to each county superintendent of schools the
34amount calculated pursuant to subparagraph (D), or if subdivision
35(c) is negative, apportion the sums of subdivisions (b) and (c) and
36subparagraph (D) if the sum is greater than zero.

37(F) The Superintendent shall repeat the computation made
38pursuant to this paragraph, accounting for any additional amounts
39apportioned after each computation, until the appropriation made
40for purposes of paragraph (1) is fully apportioned.

P39   1(G) The total amount apportioned pursuant to this subdivision
2to a county superintendent of schools shall not exceed the
3difference for the county superintendent of schools calculated
4pursuant to paragraph (1) of subdivision (b).

5(g) (1) For a county superintendent of schools for whom, in the
62013-14 fiscal year, the amount computed pursuant to subdivision
7(c) is less than the amount computed pursuant to subdivision (d),
8in the first fiscal year following the fiscal year in which the sum
9of the apportionments pursuant to subdivisions (e) and (f) is equal
10to the amount calculated pursuant to subdivision (d) of this section,
11the Superintendent shall apportion to the county superintendent
12of schools the amount computed in subdivision (d) in that fiscal
13year and each fiscal year thereafter instead of the amounts
14computed pursuant to subdivisions (e) and (f).

15(2) For a county superintendent of schools for whom, in the
162013-14 fiscal year, the amount computed pursuant to subdivision
17(c) is greater than the amount computed pursuant to subdivision
18(d), in the first fiscal year in which the amount computed pursuant
19to subdivision (c) would be less than the amount computed pursuant
20to subdivision (d), the Superintendent shall apportion to the county
21superintendent of schools the amount computed in subdivision (d)
22in that fiscal year and each fiscal year thereafter instead of the
23amounts computed pursuant to subdivisions (e) and (f).

24(3) In each fiscal year, the Superintendent shall determine the
25percentage of county superintendents of schools that are
26apportioned funding that is less than the amount computed pursuant
27to subdivision (d), as of the second principal apportionment of the
28fiscal year. If the percentage is less than 10 percent, the
29Superintendent shall apportion to those county superintendents of
30schools funding equal to the amount computed in subdivision (d)
31in that fiscal year and for each fiscal year thereafter instead of the
32amounts calculated pursuant to subdivisions (e) and (f).

33(4) Commencing with the first fiscal year after the
34apportionments in paragraph (3) are made, the adjustments in
35paragraph (4) of subdivision (a) of Section 2574 and subparagraph
36(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
37made only if an appropriation for those purposes is included in the
38annual Budget Act.

39(5) If the calculation pursuant to subdivision (d) is negative and
40the Superintendent apportions to a county superintendent of schools
P40   1the amount computed pursuant to subdivision (d) pursuant to
2paragraph (1), (2), or (3), an amount of property tax of the county
3superintendent of schools equal to the negative amount shall be
4deemed restricted and not available for expenditure during that
5fiscal year. In the following fiscal year the restricted amount shall
6be considered restricted local property tax revenue for purposes
7of subdivision (a) of Section 2578.

8(h) Commencing with the 2013-14 fiscal year, the
9Superintendent shall apportion to a county superintendent of
10schools an amount of state aid, including any amount apportioned
11pursuant to subdivisions (f) and (g), that is no less than the amount
12calculated in subparagraph (A) of paragraph (2) of subdivision (a).

13(i) For the 2013-14 and 2014-15 fiscal years only, a county
14superintendent of schools who, in the 2012-13 fiscal year, from
15any of the funding sources identified in paragraph (1) or (2) of
16subdivision (a), received funds on behalf of, or provided funds to,
17a regional occupational center or program joint powers agency
18established in accordance with Article 1 (commencing with Section
196500) of Chapter 5 of Division 7 of Title 1 of the Government
20Code for purposes of providing instruction to pupils enrolled in
21grades 9 to 12, inclusive, shall not redirect that funding for another
22purpose unless otherwise authorized in law or pursuant to an
23agreement between the regional occupational center or program
24joint powers agency and the contracting county superintendent of
25schools.

26(j) For the 2013-14 and 2014-15 fiscal years only, a county
27superintendent of schools who, in the 2012-13 fiscal year, from
28any of the funding sources identified in paragraph (1) or (2) of
29subdivision (a), received funds on behalf of, or provided funds to,
30a home-to-school transportation joint powers agency established
31in accordance with Article 1 (commencing with Section 6500) of
32Chapter 5 of Division 7 of Title 1 of the Government Code for
33purposes of providing pupil transportation shall not redirect that
34funding for another purpose unless otherwise authorized in law or
35pursuant to an agreement between the home-to-school
36transportation joint powers agency and the contracting county
37superintendent of schools.

38(k) (1) In addition to subdivision (j), of the funds a county
39superintendent of schools receives for home-to-school
40transportation programs pursuant to Article 2 (commencing with
P41   1Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2
2and Article 10 (commencing with Section 41850) of Chapter 5 of
3Part 24 of Division 3 of Title 2, the county superintendent of
4schools shall expend no less for those program than the amount
5of funds the county superintendent of schools expended for
6home-to-school transportation in the 2012-13 fiscal year.

7(2) For the 2013-14 and 2014-15 fiscal years only, of the funds
8a county superintendent of schools receives for purposes of regional
9occupational centers or programs, or adult education, the county
10superintendent of schools shall expend no less for each of those
11programs than the amount of funds the county superintendent of
12schools expended for purposes of regional occupational centers
13or programs, or adult education, respectively, in the 2012-13 fiscal
14year.

15

2576.  

(a) If a county superintendent of schools enrolls in a
16school operated by the county superintendent of schools a pupil
17not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
18of paragraph (4) of subdivision (c) of Section 2574, any attendance
19generated by that pupil shall be credited to the school district of
20residence. Enrollment of these pupils shall be transferred to the
21school district of residence for purposes of calculating the
22percentage of unduplicated pupils pursuant to Section 42238.02.

23(b) For purposes of this section, the school district of residence
24for a homeless child, as defined in Section 1981.2, enrolled in a
25school operated by a county superintendent of schools shall be
26deemed to be the school district that last provided educational
27services to that child or, if it is not possible to determine that school
28district, the largest school district in the county.

29

2577.  

Notwithstanding any other law, revenue limit funding
30for county superintendents of schools for the 2012-13 fiscal year
31and prior fiscal years shall continue to be adjusted pursuant to
32Article 3 (commencing with Section 2550) of Chapter 12, as that
33section read on January 1, 2013.

34

2578.  

(a) Every fiscal year the Superintendent shall determine
35the amount of funds that will be restricted for each county
36superintendent of schools pursuant to subdivisions (e) and (g) of
37Section 2575, as of June 30 of the prior fiscal year.

38(b) The auditor-controller of each county shall distribute the
39amounts determined in subdivision (a) to the Supplemental
40Revenue Augmentation Fund created within the county pursuant
P42   1to Section 100.06 of the Revenue and Taxation Code. The amount
2of funds required to be transferred by this subdivision shall be
3transferred annually in two equal shares with the first share
4transferred on or before January 15 of each year and the second
5share transferred after January 15 and on or before May 1 of each
6year.

7(c) The funds transferred to the Supplemental Revenue
8Augmentation Fund for purposes of this section shall be transferred
9by the county office of education to the auditor-controller of the
10county and shall be exclusively used to offset state costs of
11providing trial court services and costs, until the funds are
12exhausted.

13

2579.  

Commencing on July 1, 2013, all of the following shall
14apply:

15(a) All references to Section 2558 shall instead refer to Section
162575.

17(b) Unless the context otherwise requires, all references to the
18revenue limit of a county office of education or county
19superintendent of schools shall instead refer to the county local
20control funding formula.

end delete
begin delete21

SEC. 3.  

Section 14002 of the Education Code is amended to
22read:

23

14002.  

Notwithstanding any other law, upon certification of
24the Superintendent, the Controller shall transfer from the General
25Fund to Section A of the State School Fund during each fiscal year
26the amount of moneys required to meet the amounts apportioned
27pursuant to subdivisions (e) and (g) of Section 2575, and Sections
282577, 42238.02, as implemented by Section 42238.03, and
2942238.04 for each fiscal year. If all school districts and charter
30schools are funded pursuant to the provisions of Section 42238.02
31and all county superintendents of schools are funded at or above
32the calculation made pursuant to subdivision (d) of Section 2575,
33appropriations for local control funding formula cost-of-living
34adjustments pursuant to Section 2574 and paragraph (2) of
35subdivision (d) of Section 42238.02 shall be subject to an
36appropriation in the annual Budget Act.

end delete
begin delete37

SEC. 4.  

Section 14002.3 of the Education Code is repealed.

end delete
begin delete38

SEC. 5.  

Section 14501 of the Education Code is amended to
39read:

P43   1

14501.  

(a) As used in this chapter, “financial and compliance
2audit” shall be consistent with the definition provided in the
3“Standards for Audits of Governmental Organizations, Programs,
4Activities, and Functions” promulgated by the Comptroller General
5of the United States. Financial and compliance audits conducted
6under this chapter shall fulfill federal single audit requirements.

7(b) As used in this chapter, “compliance audit” means an audit
8that ascertains and verifies whether or not funds provided through
9apportionment, contract, or grant, either federal or state, have been
10properly disbursed and expended as required by law or regulation
11or both and includes the verification of each of the following:

12(1) Expenditure of funds in accordance with the local control
13and accountability plan adopted pursuant to Article 4.5
14(commencing with Section 52060) of Chapter 6.1 of Part 28 of
15Division 4 of Title 2.

16(2) The reporting requirements for the sufficiency of textbooks
17or instructional materials, or both, as defined in Section 60119.

18(3) Teacher misassignments pursuant to Section 44258.9.

19(4) The accuracy of information reported on the School
20Accountability Report Card required by Section 33126. The
21requirements set forth in paragraphs (2) and (3) and this paragraph
22shall be added to the audit guide requirements pursuant to
23subdivision (b) of Section 14502.1.

end delete
begin delete24

SEC. 6.  

Section 17582 of the Education Code is amended to
25read:

26

17582.  

(a) The governing board of a school district may
27establish a restricted fund to be known as the “district deferred
28maintenance fund” for the purposes of major repair or replacement
29of plumbing, heating, air conditioning, electrical, roofing, and floor
30systems, the exterior and interior painting of school buildings, the
31inspection, sampling, and analysis of building materials to
32determine the presence of asbestos-containing materials, the
33encapsulation or removal of asbestos-containing materials, the
34inspection, identification, sampling, and analysis of building
35materials to determine the presence of lead-containing materials,
36the control, management, and removal of lead-containing materials,
37and any other items of maintenance approved by the State
38Allocation Board. Funds deposited in the district deferred
39maintenance fund may be received from any source and shall be
40accounted for separately from all other funds and accounts and
P44   1retained in the district deferred maintenance fund for purposes of
2this section. The term “school building” as used in this article
3includes a facility that a county office of education is authorized
4to use pursuant to Article 3 (commencing with Section 17280) of
5Chapter 3.

6(b) Funds deposited in the district deferred maintenance fund
7shall only be expended for maintenance purposes as provided
8pursuant to subdivision (a).

9(c) The governing board of each school district shall have
10complete control over the funds and earnings of funds once
11deposited in the district deferred maintenance fund.

end delete
begin delete12

SEC. 7.  

Section 17583 of the Education Code is repealed.

end delete
begin delete13

SEC. 8.  

Section 17584 of the Education Code is repealed.

end delete
begin delete14

SEC. 9.  

Section 17584.1 of the Education Code, as amended
15by Section 18 of Chapter 7 of the Statutes of 2011, is repealed.

end delete
begin delete16

SEC. 10.  

Section 17584.1 of the Education Code, as amended
17by Section 19 of Chapter 7 of the Statutes of 2011, is repealed.

end delete
begin delete18

SEC. 11.  

Section 17584.2 of the Education Code is repealed.

end delete
begin delete19

SEC. 12.  

Section 17585 of the Education Code is repealed.

end delete
begin delete20

SEC. 13.  

Section 17587 of the Education Code is repealed.

end delete
begin delete21

SEC. 14.  

Section 33127 of the Education Code is amended to
22read:

23

33127.  

(a) The Superintendent, the Controller, and the Director
24of Finance shall develop, on or before March 1, 1989, standards
25and criteria to be reviewed and adopted by the state board, and to
26be used by local educational agencies in the development of annual
27budgets and the management of subsequent expenditures from that
28budget. During the development of the standards and criteria, the
29Superintendent shall convene a committee composed of
30representatives from school districts, county offices of education,
31state agencies, the Legislature, and appropriate labor and
32professional organizations. The committee may review and
33comment on the proposal standards and criteria before their
34adoption. In addition, the standards and criteria shall be used to
35monitor the fiscal stability of local educational agencies as provided
36for in Sections 1240.1, 1240.2, 1621, 1623, 33131, 42127, and
3742127.1.

38(b) The Superintendent, the Controller, and the Director of
39Finance shall update the standards and criteria developed pursuant
40to subdivision (a) on or before September 1, 2005. The updated
P45   1standards and criteria shall be reviewed and adopted pursuant to
2the procedure established by subdivision (a) and are applicable to
3local educational agency budgets commencing with the 2006-07
4fiscal year and each fiscal year thereafter.

5(c) The Superintendent, the Controller, and the Director of
6Finance shall update the standards and criteria developed pursuant
7to subdivision (a) on or before January 1, 2014, to address the
8requirements of Article 4.5 (commencing with Section 52060) of
9Chapter 6.1 of Part 28. The updated standards and criteria shall be
10reviewed and adopted pursuant to the procedure established by
11subdivision (a) and are applicable to local educational agency
12budgets commencing with the 2014-15 fiscal year and each fiscal
13year thereafter.

14(d) After January 1, 2014, to the extent necessary, any revisions
15or updates to the standards and criteria shall be developed by the
16Superintendent, the Controller, and the Director of Finance
17pursuant the procedure established by subdivision (a). The revisions
18or updates shall specify the fiscal year in which the revisions or
19updates are applicable.

end delete
begin delete20

SEC. 15.  

Section 35035 of the Education Code is amended to
21read:

22

35035.  

The superintendent of each school district shall, in
23addition to other powers and duties granted to or imposed upon
24him or her:

25(a) Be the chief executive officer of the governing board of the
26school district.

27(b) Except in a school district where the governing board has
28appointed or designated an employee other than the superintendent,
29or a deputy, or assistant superintendent, to prepare and submit a
30budget, prepare and submit to the governing board of the school
31district, at the time it may direct, the budget of the school district
32for the next ensuing school year, and revise and take other action
33in connection with the budget as the governing board of the school
34district may desire.

35(c) Be responsible for the preparation and submission to the
36governing board of the school district, at the time the governing
37board may direct, the local control and accountability plan of the
38school district for the subsequent school year, and revise and take
39other action in connection with the local control and accountability
40plan as the governing board of the school district may desire.

P46   1(d) Except in a school district where the governing board has
2appointed or designated an employee other than the superintendent,
3or a deputy, or assistant superintendent, ensure that the local control
4and accountability plan is implemented.

5(e) Subject to the approval of the governing board of the school
6district, assign all employees of school the district employed in
7positions requiring certification qualifications, to the positions in
8which they are to serve. This power to assign includes the power
9to transfer a teacher from one school to another school at which
10the teacher is certificated to serve within the school district when
11the superintendent concludes that the transfer is in the best interest
12of the school district.

13(f) Upon adoption, by the school district board, of a school
14district policy concerning transfers of teachers from one school to
15another school within the school district, have authority to transfer
16teachers consistent with that policy.

17(g) Determine that each employee of the school district in a
18position requiring certification qualifications has a valid certificated
19document registered as required by law authorizing him or her to
20serve in the position to which he or she is assigned.

21(h) Enter into contracts for and on behalf of the school district
22pursuant to Section 17604.

23(i) Submit financial and budgetary reports to the governing
24board of the school district as required by Section 42130.

end delete
begin delete25

SEC. 16.  

Section 35735.1 of the Education Code is amended
26to read:

27

35735.1.  

(a) The local control funding formula allocation per
28unit of average daily attendance for newly organized school
29districts shall be equal to the total of the amount of the local control
30funding formula allocation pursuant to Section 42238.02, as
31implemented by Section 42238.03, per unit of average daily
32attendance of the affected school districts computed pursuant to
33the computations set forth below. The following computations
34shall be made to determine the local control funding formula
35allocation pursuant to Section 42238.02, as implemented by Section
3642238.03, per unit of average daily attendance for the newly
37organized school districts:

38(1) Based on the current information available for each affected
39school district for the second principal apportionment period for
40the fiscal year before the fiscal year in which the reorganization
P47   1is to become effective, multiply thelocal control funding formula
2allocation pursuant to Section 42238.02, as implemented by Section
342238.03, per unit of average daily attendance for that school
4district by the number of units of average daily attendance for that
5school district that the county superintendent of schools determines
6will be included in the proposed school district.

7(2) Add the amounts calculated pursuant toparagraph (1) and
8divide that sum by the number of units ofaverage daily attendance
9in the newly organized school districts.

10(b) The amount determined pursuant to subdivision (a) shall be
11the local control funding formula allocation pursuant to Section
1242238.02, as implemented by Section 42238.03, per unit of average
13daily attendance for the newly organized school districts.

14(c) The average daily attendance of a newly organized school
15district, for purposes of Sections 42238.02 and 42238.03, shall be
16the average daily attendance that is attributable to the area
17reorganized for the fiscal year before the fiscal year in which the
18new school district becomes effective for all purposes.

19(d) Notwithstanding this section, commencing with the 2013-14
20fiscal year, a newly reorganized school district shall receive
21state-aid funding pursuant to paragraph (3) of subdivision (b) of
22Section 42238.03 or the total combined per pupil funding amount
23received by each school district pursuant to paragraphs (1) and (2)
24of subdivision (a) of Section 42238.03 for the fiscal year before
25the fiscal year in which the new school district becomes effective
26for all purposes, whichever is greater.

27(e) Notwithstanding any other law, this section shall not be
28subject to waiver by the state board pursuant to Section 33050 or
29by the Superintendent.

30(f) Upon a determination that all school districts or charter
31schools equal or exceed the local control funding formula target
32computed pursuant to Section 42238.02 as determined by the
33calculation of a zero difference pursuant to paragraph (1) of
34subdivision (b) of Section 42238.03, for all school districts and
35charter schools, this section shall not apply and the newly
36reorganized school district shall receive an allocation equal to the
37amount calculated under Section 42238.02 in that fiscal year and
38future fiscal years.

end delete
begin delete39

SEC. 17.  

Section 35735.2 of the Education Code is repealed.

end delete
begin deleteP48   1

SEC. 18.  

Section 35736.5 is added to the Education Code, to
2read:

3

35736.5.  

Sections 35735 to 35736, inclusive, shall only apply
4to actions to reorganize school districts initiated on or after July
51, 2013, for which the order to reorganize, pursuant to Section
635765, is appropriately filed after December 1, 2013, pursuant to
7Section 54902 of the Government Code. Actions to reorganize
8school districts initiated before July 1, 2013, for which the order
9to reorganize is appropriately filed on or before December 1, 2013,
10shall be implemented pursuant to Sections 35735 to 35736,
11inclusive, as those sections read on January 1, 2013.

end delete
begin delete12

SEC. 19.  

Section 37700 of the Education Code is amended to
13read:

14

37700.  

(a) Notwithstanding any other law, the Pacific Unified
15School District, the Leggett Valley Unified School District, and
16the Reeds Creek Elementary School District may operate one or
17more schools in their respective districts on a four-day school
18week, if the district complies with the instructional time
19requirements specified in Section 37701 and the other requirements
20of this chapter.

21(b) If a school district operates one or more schools on a
22four-day week pursuant to this section and the program for the
23school year provides less than the 180 days of instruction required
24under Section 46200, as it read on January 1, 2013, the
25Superintendent shall reduce the local control funding formula
26allocation pursuant to Section 42238.02, as implemented pursuant
27to Section 42238.03, per unit of average daily attendance for that
28fiscal year by the amount the school district would have received
29for the increase received pursuant to subdivision (a) of Section
3046200, as it read on January 1, 2013, as adjusted in fiscal years
31subsequent to the 1984-85 fiscal year. If a school district operates
32one or more schools on a four-day school week pursuant to this
33section and the program provides less than the minimum
34instructional minutes required under Section 46201, as it read on
35January 1, 2013, the Superintendent shall reduce the local control
36funding formula allocation pursuant to Section 42238.02, as
37implemented pursuant to Section 42238.03, per unit of average
38daily attendance for that fiscal year in which the reduction occurs
39by the amount the school district would have received for the
40increase in the 1987-88 fiscal year base revenue limit per unit of
P49   1average daily attendance pursuant to paragraph (6) of subdivision
2(b) of Section 42238, as it read on January 1, 2013, as adjusted
3from the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive,
4and, commencing with the 2013-14 fiscal year, pursuant to the
5local control funding formula allocation pursuant to Section
642238.02, as implemented pursuant to Section 42238.03, per unit
7of average daily attendance.

8(c) A school district with an exclusive bargaining representative
9may operate a school on a four-day school week pursuant to this
10section only if the school district and the representative of each
11bargaining unit of school district employees mutually agree to that
12operation in a memorandum of understanding.

13(d) Notwithstanding this section, upon a determination that a
14school district identified in subdivision (a) equals or exceeds its
15local control funding formula target computed pursuant to Section
1642238.02 as determined by the calculation of a zero difference
17pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
18the school district, as a condition of apportionment pursuant to
19Section 42238.02, as implemented pursuant to Section 42238.03,
20shall offer 180 days or more of instruction per school year, and
21meet the minimum minute requirements pursuant to paragraph (1)
22of subdivision (a) of Section 46207.

end delete
begin delete23

SEC. 20.  

Section 37710.3 of the Education Code is amended
24to read:

25

37710.3.  

(a) Beginning in the 2010-11 fiscal year, the Alpaugh
26Unified School District may operate one or more schools in the
27school district on a four-day school week if the district complies
28with the instructional time requirements in Section 37701 and the
29other requirements of this chapter. The state board may waive
30five-consecutive-day operating requirements for any of the
31following programs that operate on a four-day school week
32pursuant to this section, provided that the district meets the
33minimum time requirement for each program:

34(1) Preschools.

35(2) Before and after school programs.

36(3) Independent study programs.

37(4) Child nutrition and food service programs.

38(5) Community day schools.

39(6) Regional occupational centers or programs.

40(7) Continuation high schools.

P50   1(b) If the school district operates one or more schools on a
2four-day school week pursuant to this section, and the program
3for the school year provides fewer than the 180 days of instruction
4required under Section 46200, as it read on January 1, 2013, the
5Superintendent shall reduce the local control funding formula
6allocation pursuant to Section 42238.02, as implemented pursuant
7to Section 42238.03, per unit of average daily attendance for that
8fiscal year by the amount the school district would have received
9for the increase received pursuant to subdivision (a) of Section
1046200, as it read on January 1, 2013, as adjusted in fiscal years
11subsequent to the 1984-85 fiscal year. If the school district operates
12one or more schools on a four-day school week pursuant to this
13section, and the program provides fewer than the minimum
14instructional minutes required under Section 46201, as it read on
15January 1, 2013, the Superintendent shall reduce the local control
16funding formula allocation pursuant to Section 42238.02, as
17implemented pursuant to Section 42238.03, per unit of average
18daily attendance for that fiscal year in which the reduction occurs
19by the amount the school district would have received for the
20increase in the base revenue limit per unit of average daily
21attendance pursuant to subdivision (a) of Section 46201, as it read
22on January 1, 2013, as adjusted from the 1987-88 fiscal year to
23the 2012-13 fiscal year, inclusive, and, commencing with the
242013-14 fiscal year, pursuant to the local control funding formula
25allocation pursuant to Section 42238.02, as implemented pursuant
26to Section 42238.03, per unit of average daily attendance.

27(c) Notwithstanding Section 37710, if a small school having
28between 11 and 99 valid Standardized Testing and Reporting
29Program test scores operating on a four-day school week fails to
30achieve its Academic Performance Index growth target pursuant
31to Section 52052 for two consecutive years, the authority of that
32school to operate on a four-day school week shall be permanently
33revoked commencing with the school year following the second
34consecutive year the school failed to achieve its Academic
35Performance Index growth rate.

36(d) If the school district operates one or more schools on a
37four-day school week pursuant to this section, the school district
38shall submit a report to the department, the Senate Committee on
39Education, and the Assembly Committee on Education on or before
P51   1January 15, 2015. The report shall include, but not necessarily be
2limited to, information on all of the following:

3(1) Programs the district offered on the fifth schoolday and their
4participation rates.

5(2) Whether the four-day school week schedule resulted in any
6fiscal savings.

7(3) Impact on overall attendance of the schools operating a
8four-day school week.

9(4) Programs for which the state board waived minimum time
10 and five-consecutive-day requirements and the operational and
11educational effects of the programs if they operated at less time
12than required.

13(5) The impact of the four-day school week on crime statistics,
14especially on the day on which school would otherwise be in
15session.

16(6) Information on the Academic Performance Index, pursuant
17to Section 52052, for every year a school in the district operated
18on a four-day school week. The information shall include, but not
19necessarily be limited to, the base and growth Academic
20Performance Index of each school that operated on a four-day
21school week and whether that school met the Academic
22Performance growth targets.

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

33(f) This section shall remain in effect only until January 1, 2016,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2016, deletes or extends that date.

end delete
begin delete36

SEC. 21.  

Section 37710.5 of the Education Code is amended
37to read:

38

37710.5.  

(a) Beginning in the 2009-10 fiscal year, the Potter
39Valley Community Unified School District may operate one or
40more schools in the school district on a four-day school week if
P52   1the school district complies with the instructional time requirements
2specified in Section 37701 and the other requirements of this
3chapter. The state board may waive five-consecutive-day operating
4requirements for any of the following programs that operate on a
5four-day week pursuant to this section, provided that the school
6district meets the minimum time requirement for each program:

7(1) Preschools.

8(2) Before and after school programs.

9(3) Independent study programs.

10(4) Child nutrition and food service programs.

11(5) Community day schools.

12(6) Regional occupational centers or programs.

13(7) Continuation high schools.

14(b) If the school district operates one or more schools on a
15four-day week pursuant to this section, and the program for the
16school year provides fewer than the 180 days of instruction required
17under Section 46200, as it read on January 1, 2013, the
18Superintendent shall reduce the local control funding formula
19allocation pursuant to Section 42238.02, as implemented pursuant
20to Section 42238.03, per unit of average daily attendance for that
21fiscal year by the amount the school district would have received
22for the increase received pursuant to subdivision (a) of Section
2346200, as it read on January 1, 2013, as adjusted in fiscal years
24subsequent to the 1984-85 fiscal year. If the school district operates
25one or more schools on a four-day school week pursuant to this
26section, and the program provides fewer than the minimum
27instructional minutes required under Section 46201, as it read on
28January 1, 2013, the Superintendent shall reduce the local control
29funding formula allocation pursuant to Section 42238.02, as
30implemented pursuant to Section 42238.03, per unit of average
31daily attendance for that fiscal year in which the reduction occurs
32by the amount the school district would have received for the
33increase in the base revenue limit per unit of average daily
34attendance pursuant to subdivision (a) of Section 46201, as it read
35on January 1, 2013, as adjusted from the 1987-88 fiscal year to
36the 2012-13 fiscal year, inclusive, and, commencing with the
372013-14 fiscal year, pursuant to Section 42238.02, as implemented
38pursuant to Section 42238.03, per unit of average daily attendance.

39(c) If the school district operates one or more schools on a
40four-day school week pursuant to this section, the school district
P53   1shall submit a report to the department, the Senate Committee on
2Education and the Assembly Committee on Education on January
315, 2014. The report shall include, but not necessarily be limited
4to, information on the following:

5(1) Programs the district offered on the fifth day and their
6participation rates.

7(2) Whether the four-day school week schedule resulted in any
8fiscal savings.

9(3) Impact on overall attendance of the schools operating a
10four-day school week.

11(4) Programs for which the Superintendent waived minimum
12time and five-consecutive-day requirements and the operational
13and educational effect of the programs if they operated at less time
14than required.

15(d) Notwithstanding this section, upon a determination that the
16school district identified in subdivision (a) equals or exceeds its
17local control funding formula target computed pursuant to Section
1842238.02 as determined by the calculation of a zero difference
19pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
20the school district, as a condition of apportionment pursuant to
21Section 42238.02, as implemented pursuant to Section 42238.03,
22shall offer 180 days or more of instruction per school year, and
23meet the minimum minute requirements pursuant to paragraph (1)
24of subdivision (a) of Section 46207.

25(e) This section shall remain in effect only until January 1, 2015,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before January 1, 2015, deletes or extends that date.

end delete
begin delete28

SEC. 22.  

Section 41020 of the Education Code is amended to
29read:

30

41020.  

(a) It is the intent of the Legislature to encourage sound
31fiscal management practices among local educational agencies for
32the most efficient and effective use of public funds for the
33education of children in California by strengthening fiscal
34accountability at the school district, county, and state levels.

35(b) (1) Not later than the first day of May of each fiscal year,
36each county superintendent of schools shall provide for an audit
37of all funds under his or her jurisdiction and control and the
38governing board of each local educational agency shall either
39provide for an audit of the books and accounts of the local
40educational agency, including an audit of income and expenditures
P54   1by source of funds, or make arrangements with the county
2superintendent of schools having jurisdiction over the local
3educational agency to provide for that auditing.

4(2) A contract to perform the audit of a local educational agency
5that has a disapproved budget or has received a negative
6certification on any budget or interim financial report during the
7current fiscal year or either of the two preceding fiscal years, or
8for which the county superintendent of schools has otherwise
9determined that a lack of going concern exists, is not valid unless
10approved by the responsible county superintendent of schools and
11the governing board.

12(3) If the governing board of a local educational agency has not
13provided for an audit of the books and accounts of the local
14educational agency by April 1, the county superintendent of schools
15having jurisdiction over the local educational agency shall provide
16for the audit of each local educational agency.

17(4) An audit conducted pursuant to this section shall comply
18fully with the Government Auditing Standards issued by the
19Comptroller General of the United States.

20(5) For purposes of this section, “local educational agency” does
21not include community colleges.

22(c) Each audit conducted in accordance with this section shall
23include all funds of the local educational agency, including the
24student body and cafeteria funds and accounts and any other funds
25under the control or jurisdiction of the local educational agency.
26Each audit shall also include an audit of pupil attendance
27procedures.Each audit shall include a determination of whether
28funds were expended pursuant to a local control and accountability
29plan or an approved annual update to a local control and
30accountability plan pursuant to Article 4.5 (commencing with
31Section 52060) of Chapter 6.1 of Part 28 of Division 4.

32(d) All audit reports for each fiscal year shall be developed and
33reported using a format established by the Controller after
34consultation with the Superintendent and the Director of Finance.

35(e) (1) The cost of the audits provided for by the county
36superintendent of schools shall be paid from the county school
37service fund and the county superintendent of schools shall transfer
38the pro rata share of the cost chargeable to each school district
39from school district funds.

P55   1(2) The cost of the audit provided for by a governing board of
2a local educational agency shall be paid from local educational
3agency funds. The audit of the funds under the jurisdiction and
4control of the county superintendent of schools shall be paid from
5the county school service fund.

6(f) (1) The audits shall be made by a certified public accountant
7or a public accountant, licensed by the California Board of
8Accountancy, and selected by the local educational agency, as
9applicable, from a directory of certified public accountants and
10public accountants deemed by the Controller as qualified to conduct
11audits of local educational agencies, which shall be published by
12the Controller not later than December 31 of each year.

13(2) Commencing with the 2003-04 fiscal year and except as
14provided in subdivision (d) of Section 41320.1, it is unlawful for
15a public accounting firm to provide audit services to a local
16educational agency if the lead audit partner, or coordinating audit
17partner, having primary responsibility for the audit, or the audit
18partner responsible for reviewing the audit, has performed audit
19services for that local educational agency in each of the six previous
20fiscal years. The Education Audits Appeal Panel may waive this
21requirement if the panel finds that no otherwise eligible auditor is
22available to perform the audit.

23(3) It is the intent of the Legislature that, notwithstanding
24paragraph (2), the rotation within public accounting firms conform
25to provisions of the federal Sarbanes-Oxley Act of 2002 (Public
26Law 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of
27the report required by the act of the Comptroller General of the
28United States addressing the mandatory rotation of registered
29public accounting firms, the Legislature intends to reconsider the
30provisions of paragraph (2). In determining which certified public
31accountants and public accountants shall be included in the
32directory, the Controller shall use the following criteria:

33(A) The certified public accountants or public accountants shall
34be in good standing as certified by the Board of Accountancy.

35(B) The certified public accountants or public accountants, as
36a result of a quality control review conducted by the Controller
37pursuant to Section 14504.2, shall not have been found to have
38conducted an audit in a manner constituting noncompliance with
39subdivision (a) of Section 14503.

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

P56   1(A) A statement that the audit was conducted pursuant to
2standards and procedures developed in accordance with Chapter
33 (commencing with Section 14500) of Part 9 of Division 1 of
4Title 1.

5(B) A summary of audit exceptions and management
6improvement recommendations.

7(C) Each audit of a local educational agency shall include an
8evaluation by the auditor on whether there is substantial doubt
9about the ability of the local educational agency to continue as a
10going concern for a reasonable period of time. This evaluation
11shall be based on the Statement on Auditing Standards (SAS) No.
1259, as issued by the AICPA regarding disclosure requirements
13relating to the ability of the entity to continue as a going concern.

14(2) To the extent possible, a description of correction or plan
15of correction shall be incorporated in the audit report, describing
16the specific actions that are planned to be taken, or that have been
17taken, to correct the problem identified by the auditor. The
18descriptions of specific actions to be taken or that have been taken
19shall not solely consist of general comments such as “will
20implement,” “accepted the recommendation,” or “will discuss at
21a later date.”

22(h) Not later than December 15, a report of each local
23educational agency audit for the preceding fiscal year shall be filed
24with the county superintendent of schools of the county in which
25the local educational agency is located, the department, and the
26Controller. The Superintendent shall make any adjustments
27necessary in future apportionments of all state funds, to correct
28any audit exceptions revealed by those audit reports.

29(i) (1) Commencing with the 2002-03 audit of local educational
30agencies pursuant to this section and subdivision (d) of Section
3141320.1, each county superintendent of schools shall be responsible
32for reviewing the audit exceptions contained in an audit of a local
33educational agency under his or her jurisdiction related to
34attendance, inventory of equipment, internal control, and any
35miscellaneous items, and determining whether the exceptions have
36been either corrected or an acceptable plan of correction has been
37developed.

38(2) Commencing with the 2004-05 audit of local educational
39agencies pursuant to this section and subdivision (d) of Section
4041320.1, each county superintendent of schools shall include in
P57   1the review of audit exceptions performed pursuant to this
2subdivision those audit exceptions related to use of instructional
3materials program funds, teacher misassignments pursuant to
4Section 44258.9, information reported on the school accountability
5report card required pursuant to Section 33126 and shall determine
6whether the exceptions are either corrected or an acceptable plan
7of correction has been developed.

8(j) Upon submission of the final audit report to the governing
9board of each local educational agency and subsequent receipt of
10the audit by the county superintendent of schools having
11jurisdiction over the local educational agency, the county office
12of education shall do all of the following:

13(1) Review audit exceptions related to attendance, inventory of
14equipment, internal control, and other miscellaneous exceptions.
15Attendance exceptions or issues shall include, but not be limited
16to, those related tolocal control funding formula allocations
17pursuant to Section 42238.02, as implemented by Section 42238.03,
18and independent study.

19(2) If a description of the correction or plan of correction has
20not been provided as Part. of the audit required by this section,
21then the county superintendent of schools shall notify the local
22educational agency and request the governing board of the local
23educational agency to provide to the county superintendent of
24schools a description of the corrections or plan of correction by
25March 15.

26(3) Review the description of correction or plan of correction
27and determine its adequacy. If the description of the correction or
28plan of correction is not adequate, the county superintendent of
29schools shall require the local educational agency to resubmit that
30portion of its response that is inadequate.

31(k) Each county superintendent of schools shall certify to the
32Superintendent and the Controller, not later than May 15, that his
33or her staff has reviewed all audits of local educational agencies
34under his or her jurisdiction for the prior fiscal year, that all
35exceptions that the county superintendent was required to review
36were reviewed, and that all of those exceptions, except as otherwise
37noted in the certification, have been corrected by the local
38educational agency or that an acceptable plan of correction has
39been submitted to the county superintendent of schools. In addition,
40the county superintendent shall identify, by local educational
P58   1agency, any attendance-related audit exception or exceptions
2involving state funds, and require the local educational agency to
3which the audit exceptions were directed to submit appropriate
4reporting forms for processing by the Superintendent.

5(l) In the audit of a local educational agency for a subsequent
6year, the auditor shall review the correction or plan or plans of
7correction submitted by the local educational agency to determine
8if the exceptions have been resolved. If not, the auditor shall
9immediately notify the appropriate county office of education and
10the department and restate the exception in the audit report. After
11receiving that notification, the department shall either consult with
12the local educational agency to resolve the exception or require
13the county superintendent of schools to follow up with the local
14educational agency.

15(m) (1) The Superintendent shall be responsible for ensuring
16that local educational agencies have either corrected or developed
17plans of correction for any one or more of the following:

18(A) All federal and state compliance audit exceptions identified
19in the audit.

20(B) Any exceptions that the county superintendent certifies as
21of May 15 have not been corrected.

22(C) Any repeat audit exceptions that are not assigned to a county
23superintendent to correct.

24(2) In addition, the Superintendent shall be responsible for
25ensuring that county superintendents of schools and each county
26board of education that serves as the governing board of a local
27educational agency either correct all audit exceptions identified in
28the audits of county superintendents of schools and of the local
29educational agencies for which the county boards of education
30serve as the governing boards or develop acceptable plans of
31correction for those exceptions.

32(3) The Superintendent shall report annually to the Controller
33on his or her actions to ensure that school districts, county
34superintendents of schools, and each county board of education
35that serves as the governing board of a school district have either
36corrected or developed plans of correction for any of the exceptions
37noted pursuant to paragraph (1).

38(n) To facilitate correction of the exceptions identified by the
39audits issued pursuant to this section, commencing with 2002-03
40audits pursuant to this section, the Controller shall require auditors
P59   1to categorize audit exceptions in each audit report in a manner that
2will make it clear to both the county superintendent of schools and
3the Superintendent which exceptions they are responsible for
4ensuring the correction of by a local educational agency. In
5addition, the Controller annually shall select a sampling of county
6superintendents of schools and perform a followup of the audit
7resolution process of those county superintendents of schools and
8report the results of that followup to the Superintendent and the
9county superintendents of schools that were reviewed.

10(o) County superintendents of schools shall adjust subsequent
11local property tax requirements to correct audit exceptions relating
12to local educational agency tax rates and tax revenues.

13(p) If a governing board or county superintendent of schools
14fails or is unable to make satisfactory arrangements for the audit
15pursuant to this section, the Controller shall make arrangements
16for the audit and the cost of the audit shall be paid from local
17educational agency funds or the county school service fund, as the
18case may be.

19(q) Audits of regional occupational centers and programs are
20subject to the provisions of this section.

21(r) This section does not authorize examination of, or reports
22on, the curriculum used or provided for in any local educational
23agency.

24(s) Notwithstanding any other provision of law, a nonauditing,
25management, or other consulting service to be provided to a local
26educational agency by a certified public accounting firm while the
27certified public accounting firm is performing an audit of the
28agency pursuant to this section must be in accord with Government
29Accounting Standards, Amendment No. 3, as published by the
30United States General Accounting Office.

end delete
begin delete31

SEC. 23.  

Section 41303 of the Education Code is amended to
32read:

33

41303.  

The Superintendent shall report to the Controller, on
34or before the 20th day of October of each year, the total average
35daily attendance during the preceding fiscal year credited to all
36kindergarten, including average daily attendance for transitional
37kindergarten, elementary, high school, and adult schools in the
38state and to county school tuition funds.

end delete
begin delete39

SEC. 24.  

Section 41544 of the Education Code is amended to
40read:

P60   1

41544.  

(a) For a basic aid school district that was entitled to
2reimbursement pursuant to Section 42247.4, as that section read
3on January 1, 2001, and that received an apportionment pursuant
4to subdivision (h) of Section 42247.4, as that section read on
5January 1, 2001, because a court order directs pupils to transfer to
6that school district as Part. of the court-ordered voluntary pupil
7transfer program, the Superintendent, from the 2001-02 fiscal year
8to the 2012-13 fiscal year, inclusive, shall calculate an
9apportionment of state funds for that basic aid school district that
10provides 70 percent of the school district revenue limit calculated
11pursuant to Section 42238, as that section read on January 1, 2013,
12that would have been apportioned to the school district from which
13the pupils were transferred for the average daily attendance of any
14pupils credited under that court order who did not attend the basic
15aid school district before the 1995-96 fiscal year.

16(b) (1) For a basic aid school district that was entitled to
17reimbursement pursuant to Section 42247.4, as that section read
18on January 1, 2001, and that received an apportionment pursuant
19to subdivision (h) of Section 42247.4, as that section read on
20January 1, 2001, because a court order directs pupils to transfer to
21that school district as Part. of the court-ordered voluntary pupil
22transfer program, the Superintendent, commencing with the
232013-14 fiscal year, shall calculate an apportionment of state funds
24for that basic aid school district that provides 70 percent of the
25school district local control funding formula base grant calculated
26pursuant to subdivision (d) of Section 42238.02, as implemented
27by Section 42238.03, that would have been apportioned to the
28school district from which the pupils were transferred for the
29average daily attendance of any pupils credited under that court
30order who did not attend the basic aid school district before the
311995-96 fiscal year.

32(2) Notwithstanding paragraph (1), until the Superintendent
33determines that the school district from which the pupil or pupils
34were transferred is funded pursuant to Section 42238.02 in the
35prior fiscal year, the Superintendent shall apportion, for average
36daily attendance credited pursuant to paragraph (1), 70 percent of
37the sum of the entitlements for the school district from which the
38pupil or pupils were transferred for the specified fiscal year as
39computed pursuant to paragraphs (1) to (4), inclusive, of
40subdivision (a), and paragraph (3) of subdivision (b), of Section
P61   142238.03, divided by the average daily attendance of that school
2district for that fiscal year and then multiplied by the ratio of local
3control formula base grant funding computed pursuant to
4subdivision (d) of Section 42238.02 to the local control funding
5formula amount for that fiscal year computed pursuant to Section
642238.02.

7(c) For purposes of subdivision (b) of this section, “basic aid
8school district” means a school district that does not receive from
9the state, for any fiscal year in which this section is applied, an
10apportionment of state funds pursuant to subdivision (o) of Section
1142238.02.

end delete
begin delete12

SEC. 25.  

Section 42127 of the Education Code is amended to
13read:

14

42127.  

(a) On or before July 1 of each year, the governing
15board of each school district shall accomplish the following:

16(1) Hold a public hearing on the budget to be adopted for the
17subsequent fiscal year. The budget to be adopted shall be prepared
18in accordance with Section 42126. The agenda for that hearing
19shall be posted at least 72 hours before the public hearing and shall
20include the location where the budget will be available for public
21inspection.

22(A) For the 2011-12 fiscal year, notwithstanding any of the
23standards and criteria adopted by the state board pursuant to Section
2433127, each school district budget shall project the same level of
25revenue per unit of average daily attendance as it received in the
262010-11 fiscal year and shall maintain staffing and program levels
27commensurate with that level.

28(B) For the 2011-12 fiscal year, the school district shall not be
29required to demonstrate that it is able to meet its financial
30obligations for the two subsequent fiscal years.

31(2) Adopt a budget. Not later than five days after that adoption
32or by July 1, whichever occurs first, the governing board of the
33school district shall file that budget with the county superintendent
34of schools. The budget and supporting data shall be maintained
35and made available for public review. If the governing board of
36the school district does not want all or a portion of the property
37tax requirement levied for the purpose of making payments for the
38interest and redemption charges on indebtedness as described in
39paragraph (1) or (2) of subdivision (b) of Section 1 of Article
40XIII A of the California Constitution, the budget shall include a
P62   1statement of the amount or portion for which a levy shall not be
2made. For the 2014-15 fiscal year and each fiscal year thereafter,
3the governing board of the school district shall not adopt a budget
4before the governing board of the school district adopts a local
5control and accountability plan, if an existing local control and
6accountability plan or annual update to a local control and
7accountability plan is not effective for the budget year. The
8governing board of a school district shall not adopt a budget that
9does not include the expenditures necessary to implement the local
10control and accountability plan or the annual update to a local
11control and accountability plan that is effective during the
12subsequent fiscal year.

13(b) The county superintendent of schools may accept changes
14in any statement included in the budget, pursuant to subdivision
15(a), of the amount or portion for which a property tax levy shall
16not be made. The county superintendent of schools or the county
17auditor shall compute the actual amounts to be levied on the
18property tax rolls of the school district for purposes that exceed
19apportionments to the school district pursuant to Chapter 6
20(commencing with Section 95) of Part 0.5 of Division 1 of the
21Revenue and Taxation Code. Each school district shall provide all
22data needed by the county superintendent of schools or the county
23auditor to compute the amounts. On or before August 15, the
24county superintendent of schools shall transmit the amounts
25computed to the county auditor who shall compute the tax rates
26necessary to produce the amounts. On or before September 1, the
27county auditor shall submit the rate computed to the board of
28supervisors for adoption.

29(c) The county superintendent of schools shall do all of the
30following:

31(1) Examine the adopted budget to determine whether it
32complies with the standards and criteria adopted by the state board
33pursuant to Section 33127 for application to final local educational
34agency budgets. The county superintendent of schools shall
35identify, if necessary, technical corrections that are required to be
36made to bring the budget into compliance with those standards
37and criteria.

38(2) Determine whether the adopted budget will allow the school
39district to meet its financial obligations during the fiscal year and
40is consistent with a financial plan that will enable the school district
P63   1to satisfy its multiyear financial commitments. In addition to his
2or her own analysis of the budget of each school district, the county
3superintendent of schools shall review and consider studies, reports,
4evaluations, or audits of the school district that were commissioned
5by the school district, the county superintendent of schools, the
6Superintendent, and state control agencies and that contain
7evidence that the school district is showing fiscal distress under
8the standards and criteria adopted in Section 33127 or that contain
9a finding by an external reviewer that more than three of the 15
10most common predictors of a school district needing intervention,
11as determined by the County Office Fiscal Crisis and Management
12Assistance Team, are present. The county superintendent of schools
13shall either conditionally approve or disapprove a budget that does
14not provide adequate assurance that the school district will meet
15its current and future obligations and resolve any problems
16identified in studies, reports, evaluations, or audits described in
17this paragraph.

18(3) Determine whether the adopted budget includes the
19expenditures necessary to implement the local control and
20accountability plan or annual update to the local control and
21accountability plan approved by the county superintendent of
22schools.

23(d) On or before August 15, the county superintendent of schools
24shall approve, conditionally approve, or disapprove the adopted
25budget for each school district. For the 2014-15 fiscal year and
26each fiscal year thereafter, the county superintendent of schools
27shall disapprove a budget if the county superintendent of schools
28determines that the budget does not include the expenditures
29necessary to implement a local control and accountability plan or
30an annual update to the local control and accountability plan
31approved by the county superintendent of schools. If a school
32district does not submit a budget to the county superintendent of
33schools, the county superintendent of schools shall develop, at
34school district expense, a budget for that school district by
35September 15 and transmit that budget to the governing board of
36the school district. The budget prepared by the county
37superintendent of schools shall be deemed adopted, unless the
38county superintendent of schools approves any modifications made
39by the governing board of the school district. The approved budget
40shall be used as a guide for the school district’s priorities. The
P64   1Superintendent shall review and certify the budget approved by
2the county. If, pursuant to the review conducted pursuant to
3subdivision (c), the county superintendent of schools determines
4that the adopted budget for a school district does not satisfy
5paragraph (1) or (2) of that subdivision, he or she shall
6conditionally approve or disapprove the budget and, not later than
7August 15, transmit to the governing board of the school district,
8in writing, his or her recommendations regarding revision of the
9budget and the reasons for those recommendations, including, but
10not limited to, the amounts of any budget adjustments needed
11before he or she can approve that budget. The county
12superintendent of schools may assign a fiscal adviser to assist the
13school district to develop a budget in compliance with those
14revisions. In addition, the county superintendent of schools may
15appoint a committee to examine and comment on the
16superintendent’s review and recommendations, subject to the
17requirement that the committee report its findings to the county
18superintendent of schools no later than August 20. For the 2011-12
19fiscal year, notwithstanding any of the standards and criteria
20adopted by the state board pursuant to Section 33127, the county
21superintendent of schools, as a condition on approval of a school
22district budget, shall not require a school district to project a lower
23level of revenue per unit of average daily attendance than it
24received in the 2010-11 fiscal year nor require the school district
25to demonstrate that it is able to meet its financial obligations for
26the two subsequent fiscal years.

27(e) On or before September 8, the governing board of the school
28district shall revise the adopted budget to reflect changes in
29projected income or expenditures subsequent to July 1, and to
30include any response to the recommendations of the county
31superintendent of schools, shall adopt the revised budget, and shall
32file the revised budget with the county superintendent of schools.
33Before revising the budget, the governing board of the school
34district shall hold a public hearing regarding the proposed revisions,
35to be conducted in accordance with Section 42103. In addition, if
36the adopted budget is disapproved pursuant to subdivision (d), the
37governing board of the school district and the county
38superintendent of schools shall review the disapproval and the
39recommendations of the county superintendent of schools regarding
40revision of the budget at the public hearing. The revised budget
P65   1and supporting data shall be maintained and made available for
2public review.

3(1) For the 2011-12 fiscal year, notwithstanding any of the
4standards and criteria adopted by the state board pursuant to Section
533127, each school district budget shall project the same level of
6revenue per unit of average daily attendance as it received in the
72010-11 fiscal year and shall maintain staffing and program levels
8commensurate with that level.

9(2) For the 2011-12 fiscal year, the school district shall not be
10required to demonstrate that it is able to meet its financial
11obligations for the two subsequent fiscal years.

12(f) On or before September 22, the county superintendent of
13schools shall provide a list to the Superintendent identifying all
14school districts for which budgets may be disapproved.

15(g) The county superintendent of schools shall examine the
16revised budget to determine whether it (1) complies with the
17standards and criteria adopted by the state board pursuant to Section
1833127 for application to final local educational agency budgets,
19(2) allows the school district to meet its financial obligations during
20the fiscal year, (3) satisfies all conditions established by the county
21superintendent of schools in the case of a conditionally approved
22budget, and (4) is consistent with a financial plan that will enable
23the school district to satisfy its multiyear financial commitments,
24and, not later than October 8, shall approve or disapprove the
25revised budget. If the county superintendent of schools disapproves
26the budget, he or she shall call for the formation of a budget review
27committee pursuant to Section 42127.1, unless the governing board
28of the school district and the county superintendent of schools
29agree to waive the requirement that a budget review committee be
30formed and the department approves the waiver after determining
31that a budget review committee is not necessary. Upon the grant
32of a waiver, the county superintendent of schools immediately has
33the authority and responsibility provided in Section 42127.3. Upon
34approving a waiver of the budget review committee, the department
35shall ensure that a balanced budget is adopted for the school district
36by November 30. If no budget is adopted by November 30, the
37Superintendent may adopt a budget for the school district. The
38Superintendent shall report to the Legislature and the Director of
39Finance by December 10 if any school district, including a school
40district that has received a waiver of the budget review committee
P66   1process, does not have an adopted budget by November 30. This
2report shall include the reasons why a budget has not been adopted
3by the deadline, the steps being taken to finalize budget adoption,
4the date the adopted budget is anticipated, and whether the
5Superintendent has or will exercise his or her authority to adopt a
6budget for the school district. For the 2011-12 fiscal year,
7notwithstanding any of the standards and criteria adopted by the
8state board pursuant to Section 33127, the county superintendent
9of schools, as a condition on approval of a school district budget,
10shall not require a school district to project a lower level of revenue
11per unit of average daily attendance than it received in the 2010-11
12fiscal year nor require the school district to demonstrate that it is
13able to meet its financial obligations for the two subsequent fiscal
14years.

15(h) Not later than October 8, the county superintendent of
16schools shall submit a report to the Superintendent identifying all
17school districts for which budgets have been disapproved or budget
18review committees waived. The report shall include a copy of the
19written response transmitted to each of those school districts
20pursuant to subdivision (d).

21(i) Notwithstanding any other provision of this section, the
22budget review for a school district shall be governed by paragraphs
23(1), (2), and (3), rather than by subdivisions (e) and (g), if the
24governing board of the school district so elects and notifies the
25county superintendent of schools in writing of that decision, not
26later than October 31 of the immediately preceding calendar year.
27On or before July 1, the governing board of a school district for
28which the budget review is governed by this subdivision, rather
29than by subdivisions (e) and (g), shall conduct a public hearing
30regarding its proposed budget in accordance with Section 42103.

31(1) If the adopted budget of a school district is disapproved
32pursuant to subdivision (d), on or before September 8, the
33governing board of the school district, in conjunction with the
34county superintendent of schools, shall review the superintendent’s
35recommendations at a regular meeting of the governing board of
36the school district and respond to those recommendations. The
37response shall include any revisions to the adopted budget and
38other proposed actions to be taken, if any, as a result of those
39recommendations.

P67   1(2) On or before September 22, the county superintendent of
2schools shall provide a list to the Superintendent identifying all
3school districts for which a budget may be tentatively disapproved.

4(3) Not later than October 8, after receiving the response
5required under paragraph (1), the county superintendent of schools
6shall review that response and either approve or disapprove the
7budget. If the county superintendent of schools disapproves the
8budget, he or she shall call for the formation of a budget review
9committee pursuant to Section 42127.1, unless the governing board
10of the school district and the county superintendent of schools
11agree to waive the requirement that a budget review committee be
12formed and the department approves the waiver after determining
13that a budget review committee is not necessary. Upon the grant
14of a waiver, the county superintendent has the authority and
15responsibility provided to a budget review committee in Section
1642127.3. Upon approving a waiver of the budget review committee,
17the department shall ensure that a balanced budget is adopted for
18the school district by November 30. The Superintendent shall
19report to the Legislature and the Director of Finance by December
2010 if any school district, including a school district that has received
21a waiver of the budget review committee process, does not have
22an adopted budget by November 30. This report shall include the
23reasons why a budget has not been adopted by the deadline, the
24steps being taken to finalize budget adoption, and the date the
25adopted budget is anticipated. For the 2011-12 fiscal year,
26notwithstanding any of the standards and criteria adopted by the
27state board pursuant to Section 33127, the county superintendent
28of schools, as a condition on approval of a school district budget,
29shall not require a school district to project a lower level of revenue
30per unit of average daily attendance than it received in the 2010-11
31fiscal year nor require the school district to demonstrate that it is
32able to meet its financial obligations for the two subsequent fiscal
33years.

34(4) Not later than 45 days after the Governor signs the annual
35Budget Act, the school district shall make available for public
36review any revisions in revenues and expenditures that it has made
37to its budget to reflect the funding made available by that Budget
38Act.

39(j) Any school district for which the county board of education
40serves as the governing board of the school district is not subject
P68   1to subdivisions (c) to (h), inclusive, but is governed instead by the
2budget procedures set forth in Section 1622.

end delete
begin delete3

SEC. 26.  

Section 42238 of the Education Code is amended to
4read:

5

42238.  

(a) For the 1984-85 fiscal year and each fiscal year
6thereafter, the county superintendent of schools shall determine a
7revenue limit for each school district in the county pursuant to this
8section.

9(b) The base revenue limit for a fiscal year shall be determined
10by adding to the base revenue limit for the prior fiscal year the
11following amounts:

12(1) The inflation adjustment specified in Section 42238.1.

13(2) For the 1995-96 fiscal year, the equalization adjustment
14specified in Section 42238.4.

15(3) For the 1996-97 fiscal year, the equalization adjustments
16specified in Sections 42238.41, 42238.42, and 42238.43.

17(4) For the 1985-86 fiscal year, the amount per unit of average
18daily attendance received in the 1984-85 fiscal year pursuant to
19Section 42238.7.

20(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the
21amount per unit of average daily attendance received in the prior
22fiscal year pursuant to Section 42238.8.

23(6) For the 2004-05 fiscal year, the equalization adjustment
24specified in Section 42238.44.

25(7) For the 2006-07 fiscal year, the equalization adjustment
26specified in Section 42238.48.

27(8) For the 2011-12 fiscal year, the equalization adjustment
28specified in Section 42238.49.

29(c) (1) (A) For the 2010-11 fiscal year, the Superintendent
30shall compute an add-on for each school district by adding the
31inflation adjustment specified in Section 42238.1 to the adjustment
32specified in Section 42238.485.

33(B) For the 2011-12 fiscal year and each fiscal year thereafter,
34the Superintendent shall compute an add-on for each school district
35by adding the inflation adjustment specified in Section 42238.1 to
36the amount computed pursuant to this paragraph for the prior fiscal
37year.

38(2) Commencing with the 2010-11 fiscal year, the
39Superintendent shall compute an add-on for each school district
40by dividing each school district’s fiscal year average daily
P69   1attendance computed pursuant to Section 42238.5 by the total
2adjustments in funding for each district made for the 2007-08
3fiscal year pursuant to Section 42238.22 as it read on January 1,
42009.

5(d) The sum of the base revenue limit computed pursuant to
6subdivision (b) and the add-on computed pursuant to subdivision
7(c) shall be multiplied by the district average daily attendance
8computed pursuant to Section 42238.5.

9(e) For districts electing to compute units of average daily
10attendance pursuant to paragraph (2) of subdivision (a) of Section
1142238.5, the amount computed pursuant to Article 4 (commencing
12with Section 42280) shall be added to the amount computed in
13subdivision (c) or (d), as appropriate.

14(f) For the 1984-85 fiscal year only, the county superintendent
15shall reduce the total revenue limit computed in this section by the
16amount of the decreased employer contributions to the Public
17Employees’ Retirement System resulting from enactment of
18Chapter 330 of the Statutes of 1982, offset by any increase in those
19contributions, as of the 1983-84 fiscal year, resulting from
20subsequent changes in employer contribution rates.

21(g) The reduction required by subdivision (f) shall be calculated
22as follows:

23(1) Determine the amount of employer contributions that would
24have been made in the 1983-84 fiscal year if the applicable Public
25Employees’ Retirement System employer contribution rate in effect
26immediately before the enactment of Chapter 330 of the Statutes
27of 1982 was in effect during the 1983-84 fiscal year.

28(2) Subtract from the amount determined in paragraph (1) the
29greater of subparagraph (A) or (B):

30(A) The amount of employer contributions that would have been
31made in the 1983-84 fiscal year if the applicable Public
32Employees’ Retirement System employer contribution rate in effect
33immediately after the enactment of Chapter 330 of the Statutes of
341982 was in effect during the 1983-84 fiscal year.

35(B) The actual amount of employer contributions made to the
36Public Employees’ Retirement System in the 1983-84 fiscal year.

37(3) For purposes of this subdivision, employer contributions to
38the Public Employees’ Retirement System for either of the
39following shall be excluded from the calculation specified above:

P70   1(A) Positions supported totally by federal funds that were subject
2to supplanting restrictions.

3(B) Positions supported, to the extent of employer contributions
4not exceeding twenty-five thousand dollars ($25,000) by a single
5educational agency, from a revenue source determined on the basis
6of equity to be properly excludable from the provisions of this
7subdivision by the Superintendent with the approval of the Director
8of Finance.

9(4) For accounting purposes, the reduction made by this
10subdivision may be reflected as an expenditure from appropriate
11sources of revenue as directed by the Superintendent.

12(h) The Superintendent shall apportion to each school district
13the amount determined in this section less the sum of:

14(1) The district’s property tax revenue received pursuant to
15Chapter 3.5 (commencing with Section 75) and Chapter 6
16(commencing with Section 95) of Part 0.5 of Division 1 of the
17Revenue and Taxation Code.

18(2) The amount, if any, received pursuant to Part 18.5
19(commencing with Section 38101) of Division 2 of the Revenue
20and Taxation Code.

21(3) The amount, if any, received pursuant to Chapter 3
22(commencing with Section 16140) of Part 1 of Division 4 of Title
232 of the Government Code.

24(4) Prior years’ taxes and taxes on the unsecured roll.

25(5) Fifty percent of the amount received pursuant to Section
2641603.

27(6) (A) The amount, if any, received pursuant to the Community
28Redevelopment Law (Part 1 (commencing with Section 33000)
29of Division 24 of the Health and Safety Code), except for any
30amount received pursuant to Section 33401 or 33676 of the Health
31and Safety Code that is used for land acquisition, facility
32construction, reconstruction, or remodeling, or deferred
33maintenance, except for any amount received pursuant to Section
3433492.15 of, paragraph (4) of subdivision (a) of Section 33607.5
35of, or Section 33607.7 of, the Health and Safety Code that is
36allocated exclusively for educational facilities.

37(B) The amount, if any, received pursuant to Sections 34177,
3834179.5, 34179.6, and 34188 of the Health and Safety Code.

P71   1(C) The amount, if any, received pursuant to subparagraph (B)
2of paragraph (3) of subdivision (e) of Section 36 of Article XIII
3of the California Constitution.

4(7) For a unified school district, other than a unified school
5district that has converted all of its schools to charter status
6pursuant to Section 47606, the amount of statewide average
7general-purpose funding per unit of average daily attendance
8received by school districts for each of four grade level ranges, as
9computed by the department pursuant to Section 47633, multiplied
10by the average daily attendance, in corresponding grade level
11ranges, of any pupils who attend charter schools funded pursuant
12to Chapter 6 (commencing with Section 47630) of Part 26.8 of
13Division 4 for which the school district is the sponsoring local
14educational agency, as defined in Section 47632, and who reside
15in and would otherwise have been eligible to attend a noncharter
16school of the school district.

17(i) A transfer of pupils of grades 7 and 8 between an elementary
18school district and a high school district shall not result in the
19receiving school district receiving a revenue limit apportionment
20for those pupils that exceeds 105 percent of the statewide average
21revenue limit for the type and size of the receiving school district.

22(j) Commencing with the 2013-14 fiscal year, this section shall
23be used only for purposes of allocating revenues received pursuant
24to subparagraph (B) of paragraph (3) of subdivision (e) of Section
2536 of Article XIII of the California Constitution.

26(k) This section shall become inoperative on July 1, 2021, and,
27as of January 1, 2022, is repealed, unless a later enacted statute,
28that becomes operative on or before January 1, 2022, deletes or
29extends the dates on which it becomes inoperative and is repealed.

end delete
begin delete30

SEC. 27.  

Section 42238.01 is added to the Education Code, to
31read:

32

42238.01.  

For purposes of Section 42238.02, the following
33definitions shall apply:

34(a) “Eligible for free or reduced-price meal” means determined
35to meet federal eligibility criteria for free or reduced-price meals
36as specified in Section 49531, as that section read on January 1,
372013, except in regard to meals in family day care homes.

38(b) “Foster youth” means a foster child, as described in
39subdivision (a) of Section 48853.5, or a nonminor under the
40transition jurisdiction of the juvenile court, as described in Section
P72   1450 of the Welfare and Institutions Code, who satisfies all of the
2following criteria:

3(1) He or she has attained 18 years of age while under an order
4of foster care placement by the juvenile court, and is not more than
519 years of age on or after January 1, 2012, not more than 20 years
6of age on or after January 1, 2013, and not more than 21 years of
7age, on or after January 1, 2014, and as described in Section
810103.5 of the Welfare and Institutions Code.

9(2) He or she is in foster care under the placement and care
10responsibility of the county welfare department, county probation
11department, Indian tribe, consortium of tribes, or tribal organization
12that entered into an agreement pursuant to Section 10553.1 of the
13Welfare and Institutions Code.

14(3) He or she is participating in a transitional independent living
15case plan pursuant to Section 475(8) of the federal Social Security
16Act (42 U.S.C. Sec. 675(8)), as contained in the federal Fostering
17Connections to Success and Increasing Adoptions Act of 2008
18(Public Law 110-351), as described in Section 11403 of the
19Welfare and Institutions Code.

20(c) “Pupils of limited English proficiency” means pupils who
21do not have the clearly developed English language skills of
22comprehension, speaking, reading, and writing necessary to receive
23instruction only in English at a level substantially equivalent to
24pupils of the same age or grade whose primary language is English.
25“English learner” shall have the same meaning as is provided for
26in subdivision (a) of Section 306 and as “pupils of limited English
27proficiency.”

end delete
begin delete28

SEC. 28.  

Section 42238.02 is added to the Education Code, to
29read:

30

42238.02.  

(a) The amount computed pursuant to this section
31shall be known as the school district and charter school local
32control funding formula.

33(b) (1) For purposes of this section “unduplicated pupil” means
34a pupil enrolled in a school district or a charter school who is either
35classified as an English learner, eligible to receive a free or
36reduced-price meal, or is a foster youth. A pupil shall be counted
37only once for purposes of this section if any of the following apply:

38(A) The pupil is classified as an English learner and is eligible
39for a free or reduced-price meal.

P73   1(B) The pupil is classified as an English learner and is a foster
2youth.

3(C) The pupil is eligible for a free or reduced-price meal and is
4classified as a foster youth.

5(D) The pupil is classified as an English learner, is eligible for
6a free or reduced-price meal, and is a foster youth.

7(2) Commencing with the 2013-14 fiscal year, a school district
8or charter school shall annually report its enrolled free and
9reduced-price meal eligibility, foster youth, and English learner
10pupil-level records to the Superintendent using the California
11Longitudinal Pupil Achievement Data System.

12(3) (A) Commencing with the 2013-14 fiscal year, a county
13office of education shall review and validate reported English
14learner, foster youth, and free or reduced-price meal eligible pupil
15data for school districts and charter schools under its jurisdiction
16to ensure the data is reported accurately. The Superintendent shall
17provide each county office of education with appropriate access
18to school district and charter school data reports in the California
19Longitudinal Pupil Achievement Data System for purposes of
20ensuring data reporting accuracy.

21(B) The Controller shall include the instructions necessary to
22enforce paragraph (2) in the audit guide required by Section
2314502.1. The instructions shall include, but are not necessarily
24limited to, procedures for determining if the English learner, foster
25youth, and free or reduced-price meal eligible pupil counts are
26consistent with the school district’s or charter school’s English
27learner, foster youth, and free or reduced-price meal eligible pupil
28records.

29(4) The Superintendent shall make the calculations pursuant to
30this section using the data submitted by local educational agencies,
31including charter schools, through the California Longitudinal
32Pupil Achievement Data System. The Superintendent shall
33authorize school districts and charter schools to review and revise,
34as necessary, their submitted data on English learner, foster youth,
35and free or reduced-price meal eligible pupil counts to ensure the
36accuracy of data reflected in the California Longitudinal Pupil
37Achievement Data System.

38(5) The Superintendent shall annually compute the percentage
39of unduplicated pupils for each school district and charter school
40by dividing the enrollment of unduplicated pupils in a school
P74   1district or charter school by the total enrollment in that school
2district or charter school pursuant to all of the following:

3(A) For the 2013-14 fiscal year, divide the sum of unduplicated
4pupils for the 2013-14 fiscal year by the sum of the total pupil
5enrollment for the 2013-14 fiscal year.

6(B) For the 2014-15 fiscal year, divide the sum of unduplicated
7pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
8total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

9(C) For the 2015-16 fiscal year and each fiscal year thereafter,
10divide the sum of unduplicated pupils for the current fiscal year
11and the two prior fiscal years by the sum of the total pupil
12enrollment for the current fiscal year and the two prior fiscal years.

13(c) Commencing with the 2013-14 fiscal year and each fiscal
14year thereafter, the Superintendent shall annually calculate a local
15control funding formula grant for each school district and charter
16school in the state pursuant to this section.

17(d) The Superintendent shall compute a grade span adjusted
18base grant equal to the total of the following amounts:

19(1) For the 2013-14 fiscal year, a base grant of:

20(A) Six thousand eight hundred forty-five dollars ($6,845) for
21average daily attendance in kindergarten and grades 1 to 3,
22inclusive.

23(B) Six thousand nine hundred forty-seven dollars ($6,947) for
24average daily attendance in grades 4 to 6, inclusive.

25(C) Seven thousand one hundred fifty-four dollars ($7,154) for
26average daily attendance in grades 7 and 8.

27(D) Eight thousand two hundred eighty-nine dollars ($8,289)
28for average daily attendance in grades 9 to 12, inclusive.

29(2) In each year the grade span adjusted base grants in paragraph
30(1) shall be adjusted by the percentage change in the annual average
31value of the Implicit Price Deflator for State and Local Government
32Purchases of Goods and Services for the United States, as published
33by the United States Department of Commerce for the 12-month
34period ending in the third quarter of the prior fiscal year. This
35percentage change shall be determined using the latest data
36available as of May 10 of the preceding fiscal year compared with
37the annual average value of the same deflator for the 12-month
38period ending in the third quarter of the second preceding fiscal
39year, using the latest data available as of May 10 of the preceding
40fiscal year, as reported by the Department of Finance.

P75   1(3) (A) The Superintendent shall compute an additional
2adjustment to the kindergarten and grades 1 to 3, inclusive, base
3grant as adjusted for inflation pursuant to paragraph (2) equal to
410.4 percent. The additional grant shall be calculated by
5multiplying the kindergarten and grades 1 to 3, inclusive, base
6grant as adjusted by paragraph (2) by 10.4 percent.

7(B) Until paragraph (4) of subdivision (b) of Section 42238.03
8is effective, as a condition of the receipt of funds in this paragraph,
9a school district shall make progress toward maintaining an average
10class enrollment of not more than 24 pupils for each schoolsite in
11kindergarten and grades 1 to 3, inclusive, unless a collectively
12bargained alternative annual average class enrollment for each
13schoolsite in those grades is agreed to by the school district,
14pursuant to the following calculation:

15(i) Determine a school district’s average class enrollment for
16each schoolsite for kindergarten and grades 1 to 3, inclusive, in
17the prior year. For the 2013-14 fiscal year, this amount shall be
18the average class enrollment for each schoolsite for kindergarten
19and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

20(ii) Determine a school district’s percentage of total need
21pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

22(iii) Determine the percentage of the need calculated in clause
23(ii) that is met by funding provided to the school district pursuant
24to paragraph (3) of subdivision (b) of Section 42238.03.

25(iv) Determine the difference between the amount computed
26pursuant to clause (i) and an average class enrollment of not more
27than 24 pupils.

28(v) Calculate a current year average class enrollment adjustment
29for each schoolsite for kindergarten and grades 1 to 3, inclusive,
30equal to the adjustment calculated in clause (iv) multiplied by the
31percentage determined pursuant to clause (iii).

32(C) School districts that have an average class enrollment for
33each schoolsite for kindergarten and grades 1 to 3, inclusive, of
3424 pupils or less for each schoolsite in the 2012-13 fiscal year,
35shall be exempt from the requirements of subparagraph (B) so long
36as the school district continues to maintain an average class
37enrollment for each schoolsite for kindergarten and grades 1 to 3,
38inclusive, of not more than 24 pupils, unless a collectively
39bargained alternative ratio is agreed to by the school district.

P76   1(D) Upon full implementation of the local control funding
2formula, as a condition of the receipt of funds in this paragraph,
3all school districts shall maintain an average class enrollment for
4each schoolsite for kindergarten and grades 1 to 3, inclusive, of
5not more than 24 pupils for each schoolsite in kindergarten and
6grades 1 to 3, inclusive, unless a collectively bargained alternative
7ratio is agreed to by the school district.

8(E) The average class enrollment requirement for each schoolsite
9for kindergarten and grades 1 to 3, inclusive, established pursuant
10to this paragraph shall not be subject to waiver by the state board
11pursuant to Section 33050 or by the Superintendent.

12(F) The Controller shall include the instructions necessary to
13enforce this paragraph in the audit guide required by Section
1414502.1. The instructions shall include, but are not necessarily
15limited to, procedures for determining if the average class
16enrollment for each schoolsite for kindergarten and grades 1 to 3,
17inclusive, exceeds 24, or an alternative average class enrollment
18for each schoolsite pursuant to a collectively bargained alternative
19ratio. The procedures for determining average class enrollment for
20each schoolsite shall include criteria for employing sampling.

21(4) (A) The Superintendent shall compute an additional
22adjustment to the base grant for grades 9 to 12, inclusive, as
23adjusted for inflation pursuant to paragraph (2), equal to 2.6
24percent. The additional grant shall be calculated by multiplying
25the base grant for grades 9 to 12, inclusive, as adjusted by
26paragraph (2), by 2.6 percent.

27(B) A school district or charter school shall expend funds
28appropriated pursuant to this paragraph on pupils enrolled in grades
299 to 12, inclusive, for any purposes or programs that support a
30school district or charter school in achieving its goals for college
31and career readiness as described in a school district’s local control
32and accountability plan pursuant to subparagraph (C) of paragraph
33(4) of subdivision (d) of Section 52060, or a charter school’s plan
34pursuant to Section 47605, 47605.6, or 47606.5, as applicable.

35(C) As a condition of the receipt of funds pursuant to this
36paragraph, a school district or charter school shall report such
37pupil-level college and career readiness information as may be
38approved by the state board to implement subparagraph (ii) of
39subparagraph (F) of paragraph (4) of subdivision (a) of Section
4052052.

P77   1(D) Funds apportioned pursuant to this paragraph are specifically
2intended to fund, and shall be first used to offset, the costs of any
3new programs or higher levels of service required by this
4paragraph.

5(e) The Superintendent shall compute a supplemental grant
6add-on equal to 20 percent of the base grants as specified in
7subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
8(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
9(d), for each school district’s or charter school’s percentage of
10unduplicated pupils calculated pursuant to paragraph (5) of
11subdivision (b). The supplemental grant shall be calculated by
12multiplying the base grants as specified in subparagraphs (A) to
13(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
14(4), inclusive, of subdivision (d), by 20 percent and by the
15percentage of unduplicated pupils calculated pursuant to paragraph
16(5) of subdivision (b) in that school district or charter school. The
17supplemental grant shall be expended in accordance with the
18regulations adopted pursuant to Section 42238.07.

19(f) The Superintendent shall compute a concentration grant
20add-on equal to 50 percent of the base grants as specified in
21subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
22(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
23(d), for each school district’s or charter school’s percentage of
24unduplicated pupils calculated pursuant to paragraph (5) of
25subdivision (b) in excess of 55 percent of the school district’s or
26charter school’s total enrollment. The concentration grant shall be
27calculated by multiplying the base grant as specified in
28subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
29(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
30(d), by 50 percent and by the percentage of unduplicated pupils
31calculated pursuant to paragraph (5) of subdivision (b) in excess
32of 55 percent of the total enrollment in that school district or charter
33school. For a charter school physically located in only one school
34district, the percentage of unduplicated pupils calculated pursuant
35to paragraph (5) of subdivision (b) in excess of 55 percent used to
36calculate concentration grants shall not exceed the percentage of
37unduplicated pupils calculated pursuant to paragraph (5) of
38subdivision (b) in excess of 55 percent of the school district in
39which the charter school is physically located. For a charter school
40physically located in more than one school district, the charter
P78   1school’s percentage of unduplicated pupils calculated pursuant to
2paragraph (5) of subdivision (b) in excess of 55 percent used to
3calculate concentration grants shall not exceed that of the school
4district with the highest percentage of unduplicated pupils
5calculated pursuant to paragraph (5) of subdivision (b) in excess
6of 55 percent of the school districts in which the charter school
7has a school facility. The concentration grant shall be expended
8in accordance with the regulations adopted pursuant to Section
942238.07.

10(g) The Superintendent shall compute an add-on to the total
11sum of a school district’s or charter school’s base, supplemental,
12and concentration grants equal to the amount of funding a school
13district or charter school received from funds allocated pursuant
14to the Targeted Instructional Improvement Block Grant program,
15as set forth in Article 6 (commencing with Section 41540) of
16Chapter 3.2, for the 2012-13 fiscal year, as that article read on
17January 1, 2013. A school district or charter school shall not receive
18a total funding amount from this add-on greater than the total
19amount of funding received by the school district or charter school
20from that program in the 2012-13 fiscal year. The amount
21computed pursuant to this subdivision shall reflect the reduction
22specified in paragraph (2) of subdivision (a) of Section 42238.03.

23(h) The Superintendent shall compute an add-on to the total
24sum of a school district’s or charter school’s base, supplemental,
25and concentration grants equal to the amount of funding a school
26district or charter school received from funds allocated pursuant
27to the Home-to-School Transportation program, as set forth in
28former Article 2 (commencing with Section 39820) of Chapter 1
29of Part 23.5, former Article 10 (commencing with Section 41850)
30of Chapter 5, and the Small School District Transportation
31program, as set forth in former Article 4.5 (commencing with
32Section 42290), for the 2012-13 fiscal year. A school district or
33charter school shall not receive a total funding amount from this
34add-on greater than the total amount received by the school district
35or charter school for that program in the 2012-13 fiscal year. The
36amount computed pursuant to this subdivision shall reflect the
37reduction specified in paragraph (2) of subdivision (a) of Section
3842238.03.

P79   1(i) (1) The sum of the local control funding formula rates
2computed pursuant to subdivisions (c) to (f), inclusive, shall be
3multiplied by:

4(A) For school districts, the average daily attendance of the
5school district in the corresponding grade level ranges computed
6pursuant to Section 42238.05.

7(B) For charter schools, the total current year average daily
8attendance in the corresponding grade level ranges.

9(2) (A) The amount computed pursuant to Article 4
10(commencing with Section 42280) shall be added to the amount
11computed pursuant to paragraphs (1) to (4), inclusive, of
12subdivision (d), as multiplied by subparagraph (A) or (B) of
13paragraph (1), as appropriate.

14(B) The amount added pursuant to this paragraph shall not
15change the calculation of a school district’s or charter school’s
16supplemental grant or concentration grant.

17(j) The Superintendent shall adjust the sum of each school
18district’s or charter school’s amount determined in subdivisions
19(g) to (i), inclusive, pursuant to the calculation specified in Section
2042238.03, less the sum of the following:

21(1) (A) For school districts, the property tax revenue received
22pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
236 (commencing with Section 95) of Part 0.5 of Division 1 of the
24Revenue and Taxation Code.

25(B) For charter schools, the in-lieu property tax amount provided
26to a charter school pursuant to Section 47635.

27(2) The amount, if any, received pursuant to Part 18.5
28(commencing with Section 38101) of Division 2 of the Revenue
29and Taxation Code.

30(3) The amount, if any, received pursuant to Chapter 3
31(commencing with Section 16140) of Part 1 of Division 4 of Title
322 of the Government Code.

33(4) Prior years’ taxes and taxes on the unsecured roll.

34(5) Fifty percent of the amount received pursuant to Section
3541603.

36(6) The amount, if any, received pursuant to the Community
37Redevelopment Law (Part 1 (commencing with Section 33000)
38of Division 24 of the Health and Safety Code), less any amount
39received pursuant to Section 33401 or 33676 of the Health and
40Safety Code that is used for land acquisition, facility construction,
P80   1reconstruction, or remodeling, or deferred maintenance and that
2is not an amount received pursuant to Section 33492.15, or
3paragraph (4) of subdivision (a) of Section 33607.5, or Section
433607.7 of the Health and Safety Code that is allocated exclusively
5for educational facilities.

6(7) The amount, if any, received pursuant to Sections 34183
7and 34188 of the Health and Safety Code.

8(8) Revenue received pursuant to subparagraph (B) of paragraph
9(3) of subdivision (e) of Section 36 of Article XIII of the California
10Constitution.

11(k) A school district shall annually transfer to each of its charter
12schools funding in lieu of property taxes pursuant to Section 47635.

13(l) (1) Nothing in this section shall be interpreted to authorize
14a school district that receives funding on behalf of a charter school
15pursuant to Section 47651 to redirect this funding for another
16purpose unless otherwise authorized in law pursuant to paragraph
17(2) or pursuant to an agreement between a charter school and its
18chartering authority.

19(2) A school district that receives funding on behalf of a locally
20funded charter school pursuant to paragraph (2) of subdivision (b)
21of Section 42605, Section 42606, and subdivision (b) of Section
2247634 in the 2012-13 fiscal year may annually redirect for another
23purpose a percentage of the amount of the funding received on
24behalf of that charter school. The percentage of funding that may
25be redirected shall be determined pursuant to the following
26computation:

27(A) (i) Determine the sum of the need fulfilled for that charter
28school pursuant to paragraph (3) of subdivision (b) of Section
2942238.03 in the then current fiscal year for the charter school.

30(ii) Determine the sum of the need fulfilled in every fiscal year
31before the then current fiscal year pursuant to paragraph (3) of
32subdivision (b) of Section 42238.03 adjusted for changes in average
33daily attendance pursuant to paragraph (3) of subdivision (a) of
34Section 42238.03 for the charter school.

35(iii) Subtract the amount computed pursuant to paragraphs (1)
36to (3), inclusive, of subdivision (a) of Section 42238.03 from the
37amount computed for that charter school under the local control
38funding formula entitlement computed pursuant to subdivision (i)
39of Section 42238.02.

P81   1(iv) Compute a percentage by dividing the sum of the amounts
2computed to clauses (i) and (ii) by the amount computed pursuant
3to clause (iii).

4(B) Multiply the percentage computed pursuant to subparagraph
5(A) by the amount of funding the school district received on behalf
6of the charter school pursuant to paragraph (2) of subdivision (b)
7of Section 42605, Section 42606, and subdivision (b) of Section
847634 for the 2012-13 fiscal year.

9(C) The maximum amount that may be redirected shall be the
10lesser of the amount of funding the school district received on
11behalf of the charter school pursuant to paragraph (2) of subdivision
12(b) of Section 42605, Section 42606, and subdivision (b) of Section
1347634 for the 2012-13 fiscal year or the amount computed pursuant
14to subparagraph (B).

15(3) Commencing with the 2013-14 fiscal year, a school district
16operating one or more affiliated charter schools shall provide each
17affiliated charter school schoolsite with no less than the amount
18of funding the schoolsite received pursuant to the charter school
19block grant in the 2012-13 fiscal year.

20(n) Any calculations in law that are used for purposes of
21determining if a local educational agency is an excess tax school
22entity or basic aid school district, including, but not limited to, this
23section and Sections 42238.03, 41544, 47660, 47632, 47663,
2448310, and 48359.5, and Section 95 of the Revenue and Taxation
25Code, shall be made exclusive of the revenue received pursuant
26to subparagraph (B) of paragraph (3) of subdivision (e) of Section
2736 of Article XIII of the California Constitution.

28(o) A school district that does not receive an apportionment of
29state funds pursuant to this section as implemented pursuant to
30Section 42238.03, excluding funds apportioned pursuant to the
31requirements of subdivision (d) of Section 42238.03 shall be
32considered a “basic aid school district” or an “excess tax entity.”

33(p) The funds apportioned pursuant to this section and Section
3442238.03 shall be available to implement the activities required
35pursuant to Article 4.5 (commencing with Section 52060) of
36Chapter 6.1 of Part 28 of Division 4 of Title 2.

end delete
begin delete37

SEC. 29.  

Section 42238.025 is added to the Education Code,
38to read:

P82   1

42238.025.  

(a) In the 2013-14 fiscal year, the Superintendent
2shall compute an economic recovery target rate for each school
3district and charter school equal to the sum of the following:

4(1) (A) For each school district, the school district’s revenue
5limit in the 2012-13 fiscal year as computed pursuant to this article,
6as this article read on January 1, 2013, divided by the 2012-13
7fiscal year average daily attendance of the school district computed
8pursuant to Section 42238.05.

9(B) For each charter school, the charter school’s general purpose
10funding as computed pursuant to Article 2 (commencing with
11Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
12article read on January 1, 2013, and the in-lieu property tax amount
13provided to the charter school pursuant to Section 47635, as that
14section read on January 1, 2013, divided by the 2012-13 fiscal
15year average daily attendance of the school district computed
16pursuant to Section 42238.05.

17(C) The amounts determined pursuant to subparagraphs (A) and
18(B) of this paragraph shall not reflect the deficit factor adjustments
19set forth in Section 42238.146 as that section read on January 1,
202013.

21(D) The amounts determined pursuant to this subdivision shall
22be adjusted for the cost of living for the 2013-14 fiscal year
23pursuant to paragraph (2) of subdivision (d) of Section 42238.02
24and an annual average cost-of-living adjustment of 1.94 percent
25for the 2014-15 fiscal year to the 2020-21 fiscal year, inclusive.

26(2) (A) For each school district and charter school the sum of
27the entitlements from items contained in Section 2.00 of the Budget
28Act of 2012 for Items 6110-104-0001, 6110-105-0001,
296110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001,
306110-137-0001, 6110-144-0001, 6110-156-0001, 6110-181-0001,
316110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
326110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
336110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001,
346110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
356110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
366110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
376110-267-0001, 6110-268-0001, 6360-101-0001, 2012-13 fiscal
38year funding for the Class Size Reduction Program pursuant to
39Chapter 6.10 (commencing with Section 52120) of Part 28 of
40Division 4, as it read on January 1, 2013, and 2012-13 fiscal year
P83   1funding for the community day school mandatorily expelled pupils
2program pursuant to subdivision (c) of Section 48915, divided by
3the 2012-13 fiscal year average daily attendance of the school
4district computed pursuant to Section 42238.05.

5(B) The amounts determined pursuant to this subdivision shall
6not be adjusted for the reduction set forth in Section 12.42 of the
7Budget Act of 2012.

8(b) Of the amounts computed for school districts pursuant to
9subdivision (a), the Superintendent shall determine the funding
10rate per unit of average daily attendance above which fall not more
11than 10 percent of the total number of school districts statewide.

12(c) The Superintendent shall compute a 2020-21 fiscal year
13local control funding formula rate for each school district and
14charter school equal to the amount computed pursuant to section
1542238.02 for the 2013-14 fiscal year, adjusted for an annual
16average cost-of-living adjustment of 1.94 percent for the 2014-15
17fiscal year to the 2020-21 fiscal year, inclusive, divided by the
182012-13 fiscal year average daily attendance of the school district
19or charter school computed pursuant to Section 42238.05.

20(d) (1) For each school district and charter school that has a
21funding rate per unit of average daily attendance computed pursuant
22to subdivision (a) that is equal to, or below, the funding rate per
23unit of average daily attendance determined pursuant to subdivision
24(b), the Superintendent shall subtract the amount computed
25pursuant to subdivision (c) from the amount computed pursuant
26to subdivision (a). Each school district or charter school for which
27this calculation yields an amount greater than zero shall be eligible
28for an economic recovery target payment equal to the amount of
29the difference. A school district or charter school that has a funding
30rate per unit of average daily attendance calculated pursuant to
31subdivision (a) that exceeds the rate calculated pursuant to
32subdivision (b) shall not be eligible for an economic recovery
33target payment.

34(2) Each school district or charter school eligible for an
35economic recovery target payment pursuant to paragraph (1) shall
36receive the following apportionments:

37(A) For the 2013-14 fiscal year, one-eighth of the amount
38calculated pursuant to paragraph (1) multiplied by the 2012-13
39fiscal year average daily attendance computed pursuant to Section
4042238.05.

P84   1(B) For the 2014-15 fiscal year, two-eighths of the amount
2calculated pursuant to paragraph (1) multiplied by the 2012-13
3fiscal year average daily attendance computed pursuant to Section
442238.05.

5(C) For the 2015-16 fiscal year, three-eighths of the amount
6calculated pursuant to paragraph (1) multiplied by the 2012-13
7fiscal year average daily attendance computed pursuant to Section
842238.05.

9(D) For the 2016-17 fiscal year, four-eighths of the amount
10calculated pursuant to paragraph (1) multiplied by the 2012-13
11fiscal year average daily attendance computed pursuant to Section
1242238.05.

13(E) For the 2017-18 fiscal year, five-eighths of the amount
14calculated pursuant to paragraph (1) multiplied by the 2012-13
15fiscal year average daily attendance computed pursuant to Section
1642238.05.

17(F) For the 2018-19 fiscal year, six-eighths of the amount
18calculated pursuant to paragraph (1) multiplied by the 2012-13
19fiscal year average daily attendance computed pursuant to Section
2042238.05.

21(G) For the 2019-20 fiscal year, seven-eighths of the amount
22calculated pursuant to paragraph (1) multiplied by the 2012-13
23fiscal year average daily attendance computed pursuant to Section
2442238.05.

25(H) For the 2020-21 fiscal year and each fiscal year thereafter,
26the amount calculated pursuant to paragraph (1) multiplied by the
272012-13 fiscal year average daily attendance computed pursuant
28to Section 42238.05.

29(3) In each fiscal year until a determination has been made that
30all school districts and charter schools equal or exceed the local
31control funding formula target computed pursuant to Section
3242238.02, as determined by the calculation of a zero difference
33pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
34the economic recovery target payment apportioned to each eligible
35school district or charter school pursuant to paragraph (2) shall be
36added to the school district’s or charter school’s funding amounts
37that are continuously appropriated pursuant to subdivision (a) of
38Section 42238.03 and included in the amount of funding that may
39be offset pursuant to subdivision (c) of Section 42238.03. The
P85   1amount apportioned pursuant to paragraph (2) shall not receive a
2cost-of-living adjustment.

3(4) Commencing with the first fiscal year in which all school
4districts and charter schools are apportioned funding pursuant to
5Section 42238.02, the economic recovery target payment amount
6calculated pursuant to paragraph (2) for the applicable fiscal year
7shall be included as an add-on to the amounts computed pursuant
8to subdivisions (c) to (i), inclusive, of Section 42238.02 and
9included in the amount of funding that may be offset pursuant to
10subdivision (j) of Section 42238.02. The amount included as an
11add-on pursuant to this paragraph shall not receive a cost-of-living
12adjustment.

end delete
begin delete13

SEC. 30.  

Section 42238.03 is added to the Education Code, to
14read:

15

42238.03.  

(a) Commencing with the 2013-14 fiscal year and
16each fiscal year thereafter, the Superintendent shall calculate a
17base entitlement for the transition to the local control funding
18formula for each school district and charter school equal to the
19sum of the amounts computed pursuant to paragraphs (1) to (4),
20inclusive. The amounts computed pursuant to paragraphs (1) to
21(6), inclusive, shall be continuously appropriated pursuant to
22Section 14002.

23(1) The current fiscal year base entitlement funding level shall
24be the sum of all of the following:

25(A) For school districts, revenue limits in the 2012-13 fiscal
26year as computed pursuant to Article 2 (commencing with Section
2742238), as that article read on January 1, 2013, divided by the
282012-13 average daily attendance of the school district computed
29pursuant to Section 42238.05. That quotient shall be multiplied
30by the current fiscal year average daily attendance of the school
31district computed pursuant Section 42238.05.

32(B) (i) For charter schools, general purpose funding as
33computed pursuant to Article 2 (commencing with Section 47633)
34of Chapter 6, as that article read on January 1, 2013, and the
35amount of in-lieu property tax provided to the charter school
36pursuant to Section 47635, as that section read on June 30, 2013,
37divided by the 2012-13 average daily attendance of the charter
38school computed pursuant to Section 42238.05. That quotient shall
39be multiplied by the current fiscal year average daily attendance
40of the charter school computed pursuant to Section 42238.05.

P86   1(ii) The amount computed pursuant to clause (i) shall exclude
2funds received by a charter school pursuant to Section 47634.1,
3as that section read on January 1, 2013.

4(C) The amount computed pursuant to subparagraphs (A) and
5(B) shall exclude funds received pursuant to Section 47633, as that
6section read on January 1, 2013.

7(D) The amount computed pursuant to subparagraph (A) shall
8exclude amounts computed pursuant to Article 4 (commencing
9with Section 42280). Funding for qualifying necessary small high
10school and necessary small elementary schools shall be adjusted
11pursuant Article 4 (commencing with Section 42280) and Section
1242238.146, as those provisions read on January 1, 2013.

13(2) Entitlements from items contained in Section 2.00, as
14adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
15Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
166110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
176110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
186110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
196110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
206110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
216110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
226110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
236110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
246110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
25the Class Size Reduction Program pursuant to Chapter 6.10
26(commencing with Section 52120) of Part 28 of Division 4, as it
27read on January 1, 2013, and 2012-13 fiscal year funding for pupils
28enrolled in community day schools who are mandatorily expelled
29pursuant to subdivision (c) of Section 48915. The entitlement for
30basic aid school districts shall include the reduction of 8.92 percent
31as applied pursuant to subparagraph (A) of paragraph (1) of
32subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

33(3) The allocations pursuant to Sections 42606 and 47634.1, as
34those sections read on January 1, 2013, divided by the 2012-13
35average daily attendance of the charter school computed pursuant
36to Section 42238.05. That quotient shall be multiplied by the
37current fiscal year average daily attendance of the charter school
38computed pursuant to Section 42238.05.

39(4) The amount allocated to a school district or charter school
40pursuant to paragraph (3) of subdivision (b) for the fiscal years
P87   1before the current fiscal year divided by the average daily
2attendance of the school district or charter school for the fiscal
3years before the current fiscal year computed pursuant to Section
442238.05. That quotient shall be multiplied by the current fiscal
5year average daily attendance of the school district or charter school
6computed pursuant to Section 42238.05.

7(5) For the 2013-14 and 2014-15 fiscal years only, a school
8district that, in the 2012-13 fiscal year, from any of the funding
9sources identified in paragraph (1) or (2), received funds on behalf
10of, or provided funds to, a regional occupational center or program
11joint powers agency established in accordance with Article 1
12(commencing with Section 6500) of Chapter 5 of Division 7 of
13Title 1 of the Government Code for purposes of providing
14instruction to secondary pupils shall not redirect that funding for
15another purpose unless otherwise authorized in law or pursuant to
16an agreement between the regional occupational center or program
17joint powers agency and the contracting school district.

18(6) (A) For the 2013-14 and 2014-15 fiscal years only, a school
19district that, in the 2012-13 fiscal year, from any of the funding
20sources identified in paragraph (1) or (2), received funds on behalf
21of, or provided funds to, a home-to-school transportation joint
22powers agency established in accordance with Article 1
23(commencing with Section 6500) of Chapter 5 of Division 7 of
24Title 1 of the Government Code for purposes of providing pupil
25transportation shall not redirect that funding for another purpose
26unless otherwise authorized in law or pursuant to an agreement
27between the home-to-school transportation joint powers agency
28and the contracting school district.

29(B) In addition to subparagraph (A), of the funds a school district
30receives for home-to-school transportation programs pursuant to
31Article 2 (commencing with Section 39820) of Chapter 1 of Part
3223.5 and Article 10 (commencing with Section 41850) of Chapter
335, the school district shall expend no less than the amount of funds
34the school district expended for home-to-school transportation in
35the 2012-13 fiscal year.

36(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
37a school district receives for purposes of regional occupational
38centers or programs, or adult education, the school district shall
39expend no less than the amount of funds the school district
40expended for purposes of regional occupational centers or
P88   1programs, or adult education, respectively, in the 2012-13 fiscal
2year.

3(b) Compute an annual local control funding formula transition
4adjustment for each school district and charter school as follows:

5(1) Subtract the amount computed pursuant to paragraphs (1)
6to (4), inclusive, of subdivision (a) from the amount computed for
7each school district or charter school under the local control
8funding formula entitlements computed pursuant to subdivision
9(i) of Section 42238.02. School districts and charter schools with
10a negative difference shall be deemed to have a zero difference.

11(2) Each school district’s and charter school’s total need as
12calculated pursuant to paragraph (1) shall be divided by the sum
13of all school districts’ and charter schools’ total need to determine
14the school district’s or charter school’s respective proportions of
15total need.

16(3) Each school district’s and charter school’s proportion of
17total need shall be multiplied by any available appropriations
18specifically made for purposes of this subdivision, and added to
19the school district’s or charter school’s funding amounts as
20calculated pursuant to subdivision (a).

21(4) If the total amount of funds appropriated for purposes of
22paragraph (3) pursuant to this subdivision are sufficient to fully
23fund any positive amounts computed pursuant to paragraph (1),
24the local control funding formula grant computed pursuant to
25subdivision (c) of Section 42238.02 shall be adjusted to ensure
26that any available appropriation authority is expended for purposes
27of the local control funding formula.

28(5) Commencing with the first fiscal year after either paragraph
29(4) or paragraph (2) of subdivision (h) applies, the adjustments in
30paragraph (2) of subdivision (d) of Section 42238.02 shall be made
31only if an appropriation for those adjustments is included in the
32annual Budget Act.

33(c) The Superintendent shall subtract from the amounts
34computed pursuant to subdivisions (a) and (b) the sum of the
35following:

36(1) (A) For school districts, the property tax revenue received
37pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
386 (commencing with Section 95) of Part 0.5 of Division 1 of the
39Revenue and Taxation Code.

P89   1(B) For charter schools, the in-lieu property tax amount provided
2to a charter school pursuant to Section 47635.

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

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

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

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

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

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

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

27(d) A school district or charter school that has a zero difference
28pursuant to paragraph (1) of subdivision (b) in the prior fiscal year
29shall receive an entitlement equal to the amount calculated pursuant
30to Section 42238.02 in the current fiscal year and future fiscal
31years.

32(e) Notwithstanding the computations pursuant to subdivisions
33(b) to (d), inclusive, and Section 42238.02, commencing with the
342013-14 fiscal year, a school district or charter school shall receive
35state-aid funding of no less than the sum of the amounts computed
36pursuant to paragraphs (1) to (3), inclusive.

37(1) (A) For school districts, revenue limits in the 2012-13 fiscal
38year as computed pursuant to Article 2 (commencing with Section
3942238), as that article read on January 1, 2013, divided by the
402012-13 average daily attendance of the school district computed
P90   1pursuant to Section 42238.05. That quotient shall be multiplied
2by the current fiscal year average daily attendance of the school
3district computed pursuant Section 42238.05 and then offset for
4local revenues pursuant to subdivision (c) for the current fiscal
5year.

6(B) (i) For charter schools, general purpose funding in the
72012-13 fiscal year as computed pursuant to Article 2
8(commencing with Section 47633) of Chapter 6, as that article
9read on January 1, 2013, and the amount of in-lieu property tax
10provided to the charter school in the 2012-13 fiscal year pursuant
11to Section 47635, as that section read on January 1, 2013, divided
12by the 2012-13 average daily attendance of the charter school
13computed pursuant to Section 42238.05. That quotient shall be
14multiplied by the current fiscal year average daily attendance of
15the charter school computed pursuant to Section 42238.05 and
16then offset for local revenues pursuant to subdivision (c) for the
17current fiscal year.

18(ii) The amount computed pursuant to clause (i) shall exclude
19funds received by a charter school pursuant to Section 47634.1,
20as that section read on January 1, 2013.

21(C) The amount computed pursuant to subparagraphs (A) and
22(B) shall exclude funds received pursuant to Section 47633, as that
23section read on January 1, 2013.

24(D) The amount computed pursuant to subparagraph (A) shall
25exclude amounts computed pursuant to Article 4 (commencing
26with Section 42280). Funding for qualifying necessary small high
27school and necessary small elementary schools shall be adjusted
28pursuant Article 4 (commencing with Section 42280) and Section
2942238.146, as those provisions read on January 1, 2013.

30(E) The amount computed pursuant to subparagraphs (A) to
31(C), inclusive, shall be reduced by the sum of the amount computed
32pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).

33(2) (A) Entitlements from items contained in Section 2.00, as
34adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
35Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
366110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
376110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
386110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
396110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
406110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
P91   16110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
26110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
36110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
46110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
5the Class Size Reduction Program pursuant to Chapter 6.10
6(commencing with Section 52120) of Part 28 of Division 4, as it
7read on January 1, 2013, and 2012-13 fiscal year funding for pupils
8enrolled in community day schools who are mandatorily expelled
9pursuant to subdivision (c) of Section 48915. Notwithstanding
10Section 39 of Chapter 38 of the Statutes of 2012, the entitlement
11for basic aid school districts shall include the reduction of 8.92
12percent as applied pursuant to subparagraph (A) of paragraph (1)
13of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

14(3) The allocations pursuant to Sections 42606 and 47634.1, as
15those sections read on January 1, 2013, divided by the 2012-13
16average daily attendance of the charter school. That quotient shall
17be multiplied by the current fiscal year average daily attendance
18of the charter school.

19(f) (1) For purposes of this section, commencing with the
202013-14 fiscal year and until all school districts and charter schools
21equal or exceed their local control funding formula target computed
22pursuant to Section 42238.02 as determined by the calculation of
23a zero difference pursuant to paragraph (1) of subdivision (b), a
24newly operational charter school shall be determined to have a
25prior year per average daily attendance funding amount equal to
26the lesser of:

27(A) The prior year funding amount per unit of average daily
28attendance for the school district in which the charter school is
29physically located. The Superintendent shall calculate the funding
30amount per unit of average daily attendance for this purpose by
31dividing the total local control funding formula entitlement received
32by that school district in the prior year by prior year average daily
33attendance of that school district. For purposes of this paragraph,
34a charter school that is physically located in more than one school
35district shall use the calculated local control funding entitlement
36per unit of average daily attendance of the school district with the
37highest prior year funding amount per unit of average daily
38attendance.

P92   1(B) The charter school’s local control funding formula rate
2computed pursuant to subdivisions (c) to (i), inclusive, of Section
342238.02.

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

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

16(g) (1) In each fiscal year the Superintendent shall determine
17the percentage of school districts that are apportioned funding
18pursuant to this section that is less than the amount computed
19pursuant to Section 42238.02 as of the second principal
20apportionments of the fiscal year. If the percentage is less than 10
21percent, the Superintendent shall apportion funding to the school
22districts and charter schools equal to the amount computed pursuant
23to Section 42238.02 in that fiscal year.

24(2) For each fiscal year thereafter, the Superintendent shall
25apportion funding to a school district and charter school equal to
26the amount computed pursuant to Section 42238.02.

end delete
begin delete27

SEC. 31.  

Section 42238.04 is added to the Education Code, to
28read:

29

42238.04.  

Notwithstanding any other law, revenue limit funding
30for school districts and charter school block grant funding for
31charter schools for the 2012-13 fiscal year and prior fiscal years
32shall continue to be adjusted pursuant to Article 2 (commencing
33with Section 42238), and Article 2 (commencing with Section
3447633) of Chapter 6 of Part 26.8 of Division 4, as those articles
35read on January 1, 2013.

end delete
begin delete36

SEC. 32.  

Section 42238.05 is added to the Education Code, to
37read:

38

42238.05.  

(a) For purposes of Sections 42238.02 and 42238.03,
39the fiscal year average daily attendance shall be computed pursuant
40to paragraph (1) or (2).

P93   1(1) The second principal apportionment regular average daily
2attendance for either the current or prior fiscal year, whichever is
3greater. However, prior fiscal year average daily attendance shall
4be adjusted for any loss or gain of average daily attendance due
5to a reorganization or transfer of territory.

6(2) A school district that elects to receive funding pursuant to
7Article 4 (commencing with Section 42280) shall compute its units
8of average daily attendance for purposes of paragraphs (1), (3),
9and (4), of subdivision (d) of Section 42238.02 by subtracting the
10amount determined in subparagraph (B) from the amount
11determined in subparagraph (A).

12(A) The units of average daily attendance computed pursuant
13to paragraph (1).

14(B) The units of average daily attendance resulting from pupils
15attending schools funded pursuant to Article 4 (commencing with
16Section 42280).

17(b) For purposes of this article, regular average daily attendance
18shall be the base grant average daily attendance.

19(c) For purposes of this section, the Superintendent shall
20distribute total ungraded enrollment and average daily attendance
21among kindergarten and each of grades 1 to 12, inclusive, in
22proportion to the amounts of graded enrollment and average daily
23attendance, respectively, in each of these grades.

24(d) For purposes of this section, the Superintendent shall
25distribute average daily attendance generated by the difference
26between prior year average daily attendance and current year
27average daily attendance, if positive, among kindergarten and each
28of grades 1 to 12, inclusive, in proportion to the amounts of graded
29average daily attendance, respectively, in each of these grades.

30(e) This section shall only apply to average daily attendance
31generated by school districts and shall not apply to average daily
32attendance generated by charter schools.

33(f) A pupil shall not be counted more than once for purposes of
34calculating average daily attendance pursuant to this section.

end delete
begin delete35

SEC. 33.  

Section 42238.051 is added to the Education Code,
36to read:

37

42238.051.  

(a) For purposes of paragraph (1) of subdivision
38(a) of Section 42238.05, a sponsoring school district’s average
39daily attendance shall be computed as follows:

P94   1(1) Compute the sponsoring school district’s regular average
2daily attendance in the current year, excluding the attendance of
3pupils in charter schools.

4(2) (A) Compute the regular average daily attendance used to
5calculate the second principal apportionment of the school district
6for the prior year, excluding the attendance of pupils in charter
7schools.

8(B) Compute the attendance of pupils who attended one or more
9noncharter schools of the school district between July 1, and the
10last day of the second period, inclusive, in the prior year, and who
11attended a charter school sponsored by the school district between
12July 1, and the last day of the second period, inclusive, in the
13current year. For purposes of this subparagraph, a pupil enrolled
14in a grade at a charter school sponsored by the school district shall
15not be counted if the school district does not offer classes for pupils
16enrolled in that grade. The amount of the attendance counted for
17any pupil for the purpose of this subparagraph may not be greater
18than the attendance claimed for that pupil by the charter school in
19the current year.

20(C) Compute the attendance of pupils who attended a charter
21school sponsored by the school district in the prior year and who
22attended one or more noncharter schools of the school district in
23the current year. The amount of the attendance counted for any
24pupil for the purpose of this subparagraph may not be greater than
25the attendance claimed for that pupil by the school district in the
26current year.

27(D) From the amount determined pursuant to subparagraph (B),
28subtract the amount determined pursuant to subparagraph (C). If
29the result is less than zero, the amount shall be deemed to be zero.

30(E) The prior year average daily attendance determined pursuant
31to subparagraph (A) shall be reduced by the amount determined
32pursuant to subparagraph (D).

33(3) To the greater of the amounts computed pursuant to
34paragraphs (1) and (2), add the regular average daily attendance
35in the current year of all pupils attending charter schools sponsored
36by the school district that are not funded through the charter schools
37local control funding formula allocation pursuant to Section
3842238.02, as implemented by Section 42238.03.

P95   1(b) For purposes of this section, a “sponsoring school district”
2shall mean a “sponsoring local educational agency,” as defined in
3Section 47632, as that section read on January 1, 2013.

end delete
begin delete4

SEC. 34.  

Section 42238.052 is added to the Education Code,
5to read:

6

42238.052.  

(a) Notwithstanding any other law, the prior year
7average daily attendance for a school district determined pursuant
8to subdivision (a) of Section 42238.051 shall be increased by the
9prior year second principal apportionment average daily attendance
10of a school district only for a school that meets the following
11description:

12(1) The school was a district noncharter school in any year
13before the prior year.

14(2) The school was operated as a district-approved charter school
15in the prior year.

16(3) The school is again operated as a district noncharter school
17in the current year.

18(b) An adjustment to prior year average daily attendance
19pursuant to this section may not be made for the attendance of
20pupils who were not residents of the school district in the prior
21year.

end delete
begin delete22

SEC. 35.  

Section 42238.053 is added to the Education Code,
23to read:

24

42238.053.  

(a) The fiscal year average daily attendance
25computed under Section 42238.05 shall be increased, for each
26school district that operates a school that meets the eligibility
27requirements set forth in subdivision (b), by the number of days
28of attendance of pupils enrolled in eligible schools in the school
29district who are currently migratory children, as defined by Section
3054441, and who are residing in state-operated migrant housing
31projects between the second principal apportionment and the end
32of the regular school year, divided by the number of days school
33was actually taught in the regular day schools of the district,
34excluding Saturdays and Sundays.

35(b) For a school district to be eligible for purposes of this
36section, the following conditions shall apply:

37(1) One or more state-operated migrant housing projects are
38located within the attendance area of the school.

39(2) The maximum number of pupils enrolled in the school in
40the relevant fiscal year who are currently migratory children, as
P96   1calculated under subdivision (a), constitutes not less than one-third
2of the total pupil enrollment of the school.

3(c) The Superintendent shall establish rules and regulations for
4the implementation of this section.

end delete
begin delete5

SEC. 36.  

Section 42238.06 is added to the Education Code, to
6read:

7

42238.06.  

Commencing on July 1, 2013, except for Sections
842238, 42238.1, 42238.2, and 42238.5, or where the context
9requires otherwise, all of the following shall apply:

10(a) References to “revenue limit” shall instead refer to the “local
11control funding formula.”

12(b) References to “the revenue limit calculated pursuant to
13Section 42238” shall instead refer to “the local control funding
14formula calculated pursuant to Section 42238.02, as implemented
15by Section 42238.03.”

16(c) References to “Section 42238” shall instead refer to “Section
1742238.02, as implemented pursuant to Section 42238.03.”

18(d) References to “Section 42238.1” shall instead refer to
19“Section 42238.02.”

20(e) References to “Section 42238.5” shall instead refer to
21“Section 42238.05.”

22(f) References to “general-purpose entitlement” shall instead
23refer to “local control funding formula grant funding pursuant to
24Section 42238.02, as implemented by Section 42238.03.”

end delete
begin delete25

SEC. 37.  

Section 42238.07 is added to the Education Code, to
26read:

27

42238.07.  

(a) On or before January 31, 2014, the state board
28shall adopt regulations that govern the expenditure of funds
29apportioned on the basis of the number and concentration of
30unduplicated pupils pursuant to Sections 2574, 2575, 42238.02,
31and 42238.03. The regulations shall include, but are not limited
32to, provisions that do all of the following:

33(1) Require a school district, county office of education, or
34charter school to increase or improve services for unduplicated
35pupils in proportion to the increase in funds apportioned on the
36basis of the number and concentration of unduplicated pupils in
37the school district, county office of education, or charter school.

38(2) Authorize a school district, county office of education, or
39charter school to use funds apportioned on the basis of the number
40of unduplicated pupils for schoolwide purposes, or, for school
P97   1districts, districtwide purposes, for county offices of education,
2countywide purposes, or for charter schools, charterwide purposes,
3in a manner that is no more restrictive than the restrictions provided
4for in Title I of the federal No Child Left Behind Act of 2001 (20
5U.S.C. Sec. 6301, et seq.).

6(b) The state board may adopt emergency regulations for
7purposes of this section.

end delete
begin delete8

SEC. 38.  

Section 42238.1 of the Education Code is amended
9to read:

10

42238.1.  

(a) For the 1986-87 fiscal year and each fiscal year
11up to and including the 1998-99 fiscal year, the Superintendent
12of Public Instruction shall compute an inflation adjustment equal
13to the product of paragraphs (1) and (2):

14(1) Compute the sum of the following:

15(A) The statewide average base revenue limit per unit of average
16daily attendance for the prior fiscal year for districts of similar
17type.

18(B) The amount, if any, per unit of average daily attendance
19received by the district pursuant to Article 8 (commencing with
20Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

21(2) The percentage change in the annual average value of the
22Implicit Price Deflator for State and Local Government Purchases
23of Goods and Services for the United States, as published by the
24United States Department of Commerce for the 12-month period
25ending in the third quarter of the prior fiscal year. This percentage
26change shall be determined using the latest data available as of
27May 1 of the preceding fiscal year compared with the annual
28average value of the same deflator for the 12-month period ending
29in the third quarter of the second preceding fiscal year, using the
30latest data available as of May 1 of the second preceding fiscal
31year, as reported by the Department of Finance.

32(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
33the Superintendent of Public Instruction shall compute an inflation
34adjustment equal to the product of paragraphs (1) and (2):

35(1) Compute the sum of the following:

36(A) The statewide average base revenue limit per unit of average
37daily attendance for the prior fiscal year for districts of similar
38type.

P98   1(B) The amount, if any, per unit of average daily attendance
2received by the district pursuant to Article 8 (commencing with
3Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

4(2) The percentage change in the annual average value of the
5Implicit Price Deflator for State and Local Government Purchases
6of Goods and Services for the United States, as published by the
7United States Department of Commerce for the 12-month period
8ending in the third quarter of the prior fiscal year. This percentage
9change shall be determined using the latest data available as of
10May 10 of the preceding fiscal year compared with the annual
11average value of the same deflator for the 12-month period ending
12in the third quarter of the second preceding fiscal year, using the
13latest data available as of May 10 of the preceding fiscal year, as
14report by the Department of Finance.

15(c) This section shall become operative July 1, 1986.

16(d) Commencing with the 2013-14 fiscal year, this section shall
17be used only for purposes of allocating revenues received pursuant
18to subparagraph (B) of paragraph (3) of subdivision (e) of Section
1936 of Article XIII of the California Constitution.

20(e) This section shall become inoperative on July 1, 2021, and,
21as of January 1, 2022, is repealed, unless a later enacted statute,
22that becomes operative on or before January 1, 2022, deletes or
23extends the dates on which it becomes inoperative and is repealed.

end delete
begin delete24

SEC. 39.  

Section 42238.2 of the Education Code is amended
25to read:

26

42238.2.  

(a) (1) Notwithstanding Section 42238.5 or any other
27provision of law, a school district that meets any of the following
28conditions shall be entitled to an adjustment to its units of average
29daily attendance pursuant to this section:

30(A) The school district experiences a decline in the number of
31units of average daily attendance in excess of 8 percent of its total
32average daily attendance as a result of the closure of a facility
33operated by a branch of the United States Armed Forces in the
34school district’s boundaries.

35(B) The school district experiences a decline in the number of
36units of average daily attendance that is less than 8 percent but at
37least 5 percent of its total average daily attendance as a result of
38the closure of a facility operated by a branch of the United States
39Armed Forces in that school district’s boundaries, upon a finding
P99   1by both the Superintendent of Public Instruction and the Director
2of Finance that both of the following conditions exist:

3(i) The school district demonstrates that at the end of a three-year
4period the school district will experience a 10-percent reduction
5in the amount of funding that the school district would otherwise
6have received from state apportionments, funding received pursuant
7to the California State Lottery Act of 1984 (Chapter 12.5
8(commencing with Section 8880) of Division 1 of Title 2 of the
9Government Code), and funding received pursuant to Title VIII
10of Public Law 103-382, as a result of the loss of pupils related to
11the closure of a facility operated by a branch of the United States
12Armed Forces.

13(ii) The fiscal crisis and management assistance team established
14pursuant to Section 42127.8 has reviewed the school district’s
15finances and has found that the school district has taken significant
16steps to reduce expenditure.

17(C) The school district experiences a decline in the number of
18units of average daily attendance in excess of 5 percent of its total
19average daily attendance and the Director of Finance determines
20that the school district is likely, within eight years of that decline,
21to maintain a number of units of average daily attendance that is
22equivalent to the number of units of average daily attendance
23maintained by the school district prior to the decline.
24Notwithstanding subdivision (b), loan repayments shall commence
25no later than the fourth year after the base year or at a later time,
26as determined by the Director of Finance.

27(2) For purposes of this section, the year preceding a decline
28shall be the base year.

29(b) In the second year after the base year, the district average
30daily attendance pursuant to Section 42238.5 may, if the district
31chooses, be increased by 75 percent of the difference between the
32base year units of average daily attendance and the units of average
33daily attendance in the first year of decline. In the third year after
34the base year, the district average daily attendance pursuant to
35Section 42238.5 may, if the district chooses, be increased by 50
36percent of the difference between the base year units of average
37daily attendance and the units of average daily attendance in the
38first year of decline. The amount of money represented by these
39increases shall be considered a loan to the school district. Loan
P100  1repayments shall commence no later than the fourth year after the
2base year.

3(c) (1) The Superintendent of Public Instruction, in consultation
4with a school district subject to this section, shall determine a
5schedule for repayment of the total amount loaned pursuant to this
6section which may not exceed 10 years. Payments shall include
7interest charged at a rate based on the most current investment rate
8of the Pooled Money Investment Account in the General Fund as
9of the date of the disbursement of funds to the school district.

10(2) Upon written notification by the Superintendent of Public
11Instruction that the school district has not made one or more of the
12payments required by the schedule established pursuant to
13paragraph (1), the Controller shall withhold from Section A of the
14State School Fund the defaulted payment which shall not exceed
15the amount of any apportionment entitlement of the district to
16moneys in Section A of the State School Fund. In that regard, the
17Controller shall withhold the amount of any payment made under
18this subdivision, including reimbursement of the Controller’s
19administrative costs as determined under a schedule approved by
20the California Debt Advisory Commission, from subsequent
21apportionments to the school district from Section A of the State
22School Fund.

23(3) Any apportionments made by the Controller pursuant to
24paragraph (2) shall be deemed to be an allocation to the school
25district for purposes of subdivision (b) of Section 8 of Article XVI
26of the California Constitution, and for purposes of Chapter 2
27(commencing with Section 41200) of Part 24.

28(d) In no event shall the adjustment provided by this section
29cause the apportionment to a school district to exceed the amount
30that would otherwise be calculated for apportionment to the district
31pursuant to Sections 42238 and 42238.1.

32(e) This section does not apply to a school district that
33experiences a decline in enrollment as a result of a school district
34reorganization pursuant to Chapter 3 (commencing with Section
3535500) of Part 21 or any other law.

36(f) Commencing with the 2013-14 fiscal year, this section shall
37be used only for purposes of allocating revenues received pursuant
38to subparagraph (B) of paragraph (3) of subdivision (e) of Section
3936 of Article XIII of the California Constitution.

P101  1(g) This section shall become inoperative on July 1, 2021, and,
2as of January 1, 2022, is repealed, unless a later enacted statute,
3that becomes operative on or before January 1, 2022, deletes or
4extends the dates on which it becomes inoperative and is repealed.

end delete
begin delete5

SEC. 40.  

Section 42238.5 of the Education Code is amended
6to read:

7

42238.5.  

(a) For purposes of Section 42238, the fiscal year
8average daily attendance shall be computed pursuant to paragraph
9(1) or (2).

10(1) The second principal apportionment regular average daily
11attendance for either the current or prior fiscal year, whichever is
12greater. However, prior fiscal year average daily attendance shall
13be adjusted for any loss or gain of average daily attendance due
14to a reorganization or transfer of territory, or, commencing in the
151993-94 fiscal year, and each fiscal year thereafter, for any change
16in average daily attendance for pupils who are concurrently enrolled
17in adult programs and classes pursuant to Section 52616.17.

18(2) Any school district that elects to receive funding pursuant
19to Article 4 (commencing with Section 42280) shall compute its
20units of average daily attendance for purposes of Section 42238
21by subtracting the amount determined in subparagraph (B) from
22the amount determined in subparagraph (A).

23(A) The units of average daily attendance computed pursuant
24to paragraph (1).

25(B) The units of average daily attendance resulting from pupils
26attending schools funded pursuant to Article 4 (commencing with
27Section 42280).

28(b) For purposes of this article, regular average daily attendance
29shall be the base revenue limit average daily attendance, excluding
30summer school average daily attendance.

31(c) For purposes of this section, for the 1998-99 fiscal year
32only, the prior year average daily attendance shall be the 1997-98
33regular average daily attendance, excluding absences excused
34pursuant to subdivision (b) of Section 46010, as that subdivision
35read on July 1, 1996.

36(d) Commencing with the 2013-14 fiscal year, this section shall
37be used only for purposes of allocating revenues received pursuant
38to subparagraph (B) of paragraph (3) of subdivision (e) of Section
3936 of Article XIII of the California Constitution.

P102  1(e) This section shall become inoperative on July 1, 2021, and,
2as of January 1, 2022, is repealed, unless a later enacted statute,
3that becomes operative on or before January 1, 2022, deletes or
4extends the dates on which it becomes inoperative and is repealed.

end delete
begin delete5

SEC. 41.  

Section 42238.15 of the Education Code is amended
6to read:

7

42238.15.  

(a) Notwithstanding any other law, and in lieu of
8any inflation or cost-of-living adjustment otherwise authorized for
9any of the programs enumerated in subdivision (b), state funding
10for the programs enumerated in subdivision (b) shall be increased
11annually by the product of the following:

12(1) The sum of 1.0 plus the percentage change determined under
13paragraph (2) of subdivision (d) of Section 42238.02.

14(2) The sum of 1.0 plus the percentage of increase, from the
15prior fiscal year to the current fiscal year, in each of the workload
16factors described in subdivision (b).

17(b) The programs for which annual state funding increases are
18determined under this section, and the factors used to measure
19workload for each of those programs, are as follows:

20(1) Special education programs and services, as measured by
21the regular second principal apportionment average daily
22attendance for kindergarten and grades 1 to 12, inclusive.

23(2) Child care and development programs, and preschool
24programs, as measured by the state population of children up to
25and including four years of age.

26(c) Notwithstanding any other law, child care and development
27programs shall not receive a cost-of-living adjustment in the
282012-13, 2013-14, and 2014-15 fiscal years.

end delete
begin delete29

SEC. 42.  

Section 42280 of the Education Code is amended to
30read:

31

42280.  

(a) For each school district that meets, in the current
32or prior fiscal year, the conditions specified in Section 42281,
3342282, or 42284 the Superintendent shall compute, for each
34qualifying school in the school district, an amount pursuant to this
35article.

36(b) For each school district that is a countywide unified school
37district that had fewer than 2,501 units of average daily attendance
38in the 1990-91 fiscal year, the Superintendent shall compute an
39amount pursuant to this article for those schools that meet the
40conditions specified in Sections 42283 and 42285 in the current
P103  1or prior fiscal year. This subdivision is only applicable to those
2schools funded pursuant to this article in the 1990-91 fiscal year
3and, in subsequent years, if the school district has no more than
43,000 units of average daily attendance.

end delete
begin delete5

SEC. 43.  

Section 42281 of the Education Code is amended to
6read:

7

42281.  

Except as specified in paragraph (4), for each
8elementary school district that maintains only one school with a
9second principal apportionment average daily attendance of less
10than 97, the Superintendent shall make one of the following
11computations, whichever provides the lesser amount:

12(a) For each small school that has an average daily attendance
13during the fiscal year of less than 25, exclusive of pupils attending
14the 7th and 8th grades of a junior high school, and for which school
15at least one teacher was hired full time, the Superintendent shall
16compute for the school district fifty-two thousand nine hundred
17twenty-five dollars ($52,925).

18(b) For each small school that has an average daily attendance
19during the fiscal year of 25 or more and less than 49, exclusive of
20pupils attending the 7th and 8th grades of a junior high school,
21and for which school at least two teachers were hired full time for
22more than one-half of the days schools were maintained, the
23Superintendent shall compute for the school district one hundred
24five thousand eight hundred fifty dollars ($105,850).

25(c) For each small school that has an average daily attendance
26during the fiscal year of 49 or more but less than 73, exclusive of
27pupils attending the 7th and 8th grades of a junior high school,
28and for which school three teachers were hired full time for more
29than one-half of the days schools were maintained, the
30Superintendent shall compute for the school district one hundred
31fifty-eight thousand seven hundred seventy-five dollars ($158,775).

32(d) For each small school that has an average daily attendance
33during the fiscal year of 73 or more and less than 97, exclusive of
34pupils attending the 7th and 8th grades of a junior high school,
35and for which school four teachers were hired full time for more
36than one-half of the days schools were maintained, the
37Superintendent shall compute for the school district two hundred
38eleven thousand seven hundred dollars ($211,700). A school district
39that qualifies under this subdivision may use this funding
40calculation until the local control funding formula allocation
P104  1pursuant to Section 42238.02, as implemented by Section 42238.03,
2per unit of average daily attendance multiplied by the average daily
3attendance produces state aid equal to the small school funding
4formula.

end delete
begin delete5

SEC. 44.  

Section 42282 of the Education Code is amended to
6read:

7

42282.  

For each district with fewer than 2,501 units of second
8principal apportionment average daily attendance, on account of
9each necessary small school, the Superintendent shall make the
10following computations:

11(a) For each necessary small school which has an average daily
12attendance during the fiscal year of less than 25, exclusive of pupils
13attending the 7th and 8th grades of a junior high school, and for
14which school at least one teacher was hired full time, the
15Superintendent shall compute for the school district fifty-two
16thousand nine hundred twenty-five dollars ($52,925).

17(b) For each necessary small school which has an average daily
18attendance during the fiscal year of 25 or more and less than 49,
19exclusive of pupils attending the 7th and 8th grades of a junior
20high school, and for which school at least two teachers were hired
21full time for more than one-half of the days schools were
22maintained, the Superintendent shall compute for the school district
23one hundred five thousand eight hundred fifty dollars ($105,850).

24(c) For each necessary small school which has an average daily
25attendance during the fiscal year of 49 or more, but less than 73,
26exclusive of pupils attending the 7th and 8th grades of a junior
27high school, and for which school three teachers were hired full
28time for more than one-half of the days schools were maintained,
29the Superintendent shall compute for the school district one
30hundred fifty-eight thousand seven hundred seventy-five dollars
31($158,775).

32(d) For each necessary small school which has an average daily
33attendance during the fiscal year of 73 or more and less than 97,
34exclusive of pupils attending the 7th and 8th grades of a junior
35high school, and for which school four teachers were hired full
36time for more than one-half of the days schools were maintained,
37the Superintendent shall compute for the school district two
38hundred eleven thousand seven hundred dollars ($211,700).

39(e) A school district that qualifies under this section may use
40this funding calculation until the local control funding formula
P105  1allocation pursuant to Section 42238.02, as implemented by Section
242238.03, per unit of average daily attendance multiplied by the
3average daily attendance produces state aid equal to the small
4school funding formula.

end delete
begin delete5

SEC. 45.  

Section 42282.1 of the Education Code is repealed.

end delete
begin delete6

SEC. 46.  

Section 42283 of the Education Code is amended to
7read:

8

42283.  

(a) For purposes of Sections 42281 and 42282, a
9“necessary small school” is an elementary school with an average
10daily attendance of less than 97, exclusive of pupils attending the
11seventh and eighth grades of a junior high school, maintained by
12a school district to which school any of the following conditions
13apply:

14(1) If as many as five pupils residing in the school district and
15attending kindergarten and grades 1 to 8, inclusive, exclusive of
16pupils attending the seventh and eighth grades of a junior high
17school in the elementary school with an average daily attendance
18of less than 97 would be required to travel more than 10 miles one
19way from a point on a well-traveled road nearest their home to the
20nearest other public elementary school.

21(2) If as many as 15 pupils residing in the school district and
22attending kindergarten and grades 1 to 8, inclusive, exclusive of
23pupils attending the seventh and eighth grades of a junior high
24school in the elementary school with an average daily attendance
25of less than 97 would be required to travel more than five miles
26one way from a point on a well-traveled road nearest their home
27to the nearest other public elementary school.

28(3) If topographical or other conditions exist in a school district
29which would impose unusual hardships if the number of miles
30specified in paragraph (1) or (2) were required to be traveled, or
31if during the fiscal year the roads which would be traveled have
32been impassable for more than an average of two weeks per year
33for the preceding five years, the governing board of the school
34district may, on or before April 1, request the Superintendent, in
35writing, for an exemption from these requirements or for a
36reduction in the miles required. The request shall be accompanied
37by a statement of the conditions upon which the request is based,
38giving the information in a form required by the Superintendent.
39The Superintendent shall cause an investigation to be made, and
P106  1shall either grant the request to the extent he or she deems
2necessary, or deny the request.

3(b) For purposes of this section, “other public elementary
4school” is a public school, including a charter school, that serves
5kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
67 and 8 of a junior high school.

end delete
begin delete7

SEC. 47.  

Section 42283.1 of the Education Code is repealed.

end delete
begin delete8

SEC. 48.  

Section 42283.2 of the Education Code is repealed.

end delete
begin delete9

SEC. 49.  

Section 42284 of the Education Code is amended to
10read:

11

42284.  

(a) For each district with fewer than 2,501 units of
12average daily attendance, on account of each necessary small high
13school, the county superintendent of schools shall make one of the
14following computations selected with regard only to the number
15of certificated employees employed or average daily attendance,
16whichever provides the lesser amount:


17

 


Average daily
attendance

Minimum number
of certificated
employees

Amount to be
computed

   

1-19   

less than 3

$42,980

 

 

per teacher

1-19   

 3

191,340

20-38   

 4

234,320

39-57   

 5

277,300

58-71   

 6

320,280

72-86   

 7

363,260

87-100   

 8

406,240

01-114   

 9

449,220

115-129   

10

492,200

130-143   

11

535,180

44-171   

12

578,160

172-210   

13

621,140

211-248   

14

664,120

249-286   

15

707,100

P106 37

 

38(b) For purposes of this section, a “certificated employee” means
39an equivalent full-time position of an individual holding a
40credential authorizing service and providing service in grades 9
P107  1to 12, inclusive, in any secondary school. Any fraction of an
2equivalent full-time position remaining after all equivalent full-time
3positions for certificated employees within the district have been
4calculated shall be deemed to be a full-time position.

5(c) A school district that qualifies under this section may use
6the funding calculation as provided in this section until the local
7control funding formula allocation pursuant to Section 42238.02,
8as implemented by Section 42238.03, per unit of average daily
9attendance multiplied by the average daily attendance produces
10state aid equal to the funding provided under this section.

end delete
begin delete11

SEC. 50.  

Section 42285 of the Education Code is amended to
12read:

13

42285.  

(a) For the purposes of Section 42284, a necessary
14small high school is a high school with an average daily attendance
15of less than 287 that comes within any of the following conditions:

16(1) The projection of its future enrollment on the basis of the
17enrollment of the elementary schools in the district shows that
18within eight years the enrollment in high school in grades 9 to 12,
19inclusive, will exceed 286 pupils.

20(2) Any one of the following combinations of distance and units
21of average daily attendance applies:

22(A) The high school had an average daily attendance of less
23than 96 in grades 9 to 12, inclusive, during the preceding fiscal
24year and is more than 15 miles by well-traveled road from the
25nearest other public high school and either 90 percent of the pupils
26would be required to travel 20 miles or 25 percent of the pupils
27would be required to travel 30 miles one way from a point on a
28well-traveled road nearest their homes to the nearest other public
29high school.

30(B) The high school had an average daily attendance of 96 or
31more and less than 144 in grades 9 to 12, inclusive, during the
32preceding fiscal year and is more than 10 miles by well-traveled
33road from the nearest other public high school and either 90 percent
34of the pupils would be required to travel 18 miles or 25 percent of
35the pupils would be required to travel 25 miles one way from a
36point on a well-traveled road nearest their homes to the nearest
37other public high school.

38(C) The high school had an average daily attendance of 144 or
39more and less than 192 in grades 9 to 12, inclusive, during the
40preceding fiscal year and is more than 712 miles by well-traveled
P108  1road from the nearest other public high school and either 90 percent
2of the pupils would be required to travel 15 miles or 25 percent of
3the pupils would be required to travel 20 miles one way from a
4point on a well-traveled road nearest their homes to the nearest
5other public high school.

6(D) The high school had an average daily attendance of 192 or
7more and less than 287 in grades 9 to 12, inclusive, during the
8preceding fiscal year and is more than five miles by well-traveled
9road from the nearest other public high school and either 90 percent
10of the pupils would be required to travel 10 miles or 25 percent of
11the pupils would be required to travel 15 miles to the nearest other
12public high school.

13(3) Topographical or other conditions exist in the school district
14which would impose unusual hardships on the pupils if the number
15of miles specified above were required to be traveled. In these
16cases, the Superintendent may, when requested, and after
17investigation, grant exceptions from the distance requirements.

18(4) The Superintendent has approved the recommendation of a
19county committee on school district organization designating one
20of two or more schools as necessary isolated schools in a situation
21where the schools are operated by two or more school districts and
22the average daily attendance of each of the schools is less than 287
23in grades 9 to 12, inclusive.

24(b) For purposes of Section 42284, a necessary small high school
25also includes a high school maintained by a school district for the
26exclusive purpose of educating juvenile hall pupils or pupils with
27exceptional needs.

28(c) For purposes of Section 42284, a necessary small high school
29does not include a continuation school.

30(d) For purposes of this section, “other public high school” is
31a public school, including a charter school, that serves any of
32grades 9 to 12, inclusive, or grades 7 and 8 in a junior high school.

end delete
begin delete33

SEC. 51.  

Section 42285.1 of the Education Code is repealed.

end delete
begin delete34

SEC. 52.  

Section 42285.4 of the Education Code is repealed.

end delete
begin delete35

SEC. 53.  

Section 42285.5 of the Education Code is amended
36to read:

37

42285.5.  

(a) For purposes of subdivision (a) of Section 42284
38and Section 42285, a school district may include average daily
39attendance in grades 7 and 8 and the instructors of grade 7 and 8
P109  1pupils in the calculation of average daily attendance and number
2of certificated employees employed.

3(b) Notwithstanding Sections 42284 and 42285, for purposes
4of this section, with respect to a school district eligible to utilize
5subdivision (a), any references to grades 9 to 12, inclusive, in
6Sections 42284 and 42285 shall be deemed instead to be references
7to grades 7 to 12, inclusive.

end delete
begin delete8

SEC. 54.  

Section 42286 of the Education Code is amended to
9read:

10

42286.  

(a) Except as required under subdivision (b), if a high
11school is determined to be a necessary small high school under
12Section 42285, that status shall not be changed except as a review
13of the determinative factors made every two years following the
14date of the determination indicates that the determination should
15be changed.

16(b) If a high school is determined to be a necessary small high
17school under paragraph (3) of subdivision (b) of Section 42285,
18that status shall not be changed except as a review of the
19determinative factors made every two years following the date of
20the determination indicates that the determination should be
21changed.

22(c) A high school that has not been determined to be a necessary
23small high school under Section 42285, may be determined to be
24a necessary small high school at the beginning of a fiscal year if
25it meets the criteria specified in Section 42285.

end delete
begin delete26

SEC. 55.  

Section 42287 of the Education Code is amended to
27read:

28

42287.  

(a) For the 1984-85 fiscal year to the 2012-13 fiscal
29year, inclusive, the Superintendent of Public Instruction shall
30increase the funding amounts specified in Sections 42281, 42282,
31and 42284 by an amount proportionate to the increase applied to
32the statewide average revenue limit for unified school districts for
33the then current fiscal year.

34(b) Commencing with the 2013-14 fiscal year, the
35Superintendent shall increase the funding amounts specified in
36Sections 42281, 42282, and 42284, as previously increased
37pursuant to subdivision (a) and Sections 42289 to 42289.5,
38inclusive, by an amount proportionate to the increase in the
39statewide average local control funding formula allocations
P110  1pursuant to Section 42238.02, as implemented by Section 42238.03,
2for the then current fiscal year.

end delete
begin delete3

SEC. 56.  

Section 42289 of the Education Code is amended to
4read:

5

42289.  

Notwithstanding any other law, for each fiscal year
6through the 2012-13 fiscal year, before calculating the increase
7in funding amount specified in Section 42287, the Superintendent
8shall increase the funding amounts specified in Sections 42281,
942282, and 42284, by the product of subdivisions (a) and (b):

10(a) The amount per unit of average daily attendance received
11by the school district pursuant to Section 46201 in the prior fiscal
12year.

13(b) The average daily attendance for each necessary small school
14and necessary small high school for which the school district
15received funding in the prior fiscal year pursuant to Section 42281,
1642282, or 42284, as appropriate.

end delete
begin delete17

SEC. 57.  

Section 42289.1 of the Education Code is amended
18to read:

19

42289.1.  

(a) Notwithstanding any other law, for the 1988-89
20fiscal year to the 2012-13 fiscal year, inclusive, after calculating
21the increase in funding amounts specified in Section 42287, the
22Superintendent shall increase the funding amounts specified in
23Sections 42281, 42282, and 42284, by the sum of paragraphs (1)
24and (2):

25(1) Compute the product of subparagraphs (A) and (B):

26(A) The amount per unit of average daily attendance computed
27pursuant to subdivision (g) of Section 42240.

28(B) The average daily attendance for each necessary small
29school and necessary small high school for which the district
30receives funding in the current fiscal year pursuant to Section
3142281, 42282, or 42284, as appropriate.

32(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
33inclusive, the amount computed pursuant to paragraph (1) shall
34be increased by the percentage cost-of-living increase given to
35school district revenue limits for the then current fiscal year.

end delete
begin delete36

SEC. 58.  

Section 42289.2 of the Education Code is amended
37to read:

38

42289.2.  

(a) Notwithstanding any other law, for the 1989-90
39fiscal year to the 2012-13 fiscal year, inclusive, after calculating
40the increase in funding amounts specified in Section 42287, the
P111  1Superintendent shall increase the funding amounts specified in
2Sections 42281, 42282, and 42284, by the sum of paragraphs (1)
3and (2):

4(1) Compute the product of subparagraphs (A) and (B):

5(A) The amount per unit of average daily attendance computed
6pursuant to subdivision (e) of Section 54060.5.

7(B) The average daily attendance for each necessary small
8school and necessary small high school for which the school district
9receives funding in the current fiscal year pursuant to Section
1042281, 42282, or 42284, as appropriate.

11(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
12inclusive, the amount computed pursuant to paragraph (1) shall
13be increased by the percentage cost-of-living increase given to
14school district revenue limits for the then current fiscal year.

end delete
begin delete15

SEC. 59.  

Section 42289.3 of the Education Code is amended
16to read:

17

42289.3.  

(a) Notwithstanding any other law, for the 1989-90
18fiscal year to the 2012-13 fiscal year, inclusive, after calculating
19the increase in funding amounts specified in Section 42287, the
20Superintendent shall increase the funding amounts specified in
21Sections 42281, 42282, and 42284, by the sum of paragraphs (1)
22and (2):

23(1) Compute the product of subparagraphs (A) and (B):

24(A) The amount per unit of average daily attendance computed
25pursuant to subdivision (e) of Section 54060.6.

26(B) The average daily attendance for each necessary small
27school and necessary small high school for which the school district
28receives funding in the current fiscal year pursuant to Section
2942281, 42282, or 42284, as appropriate.

30(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
31inclusive, the amount computed pursuant to paragraph (1) shall
32be increased by the percentage cost-of-living increase given to
33school district revenue limits for the then current fiscal year.

end delete
begin delete34

SEC. 60.  

Section 42289.4 of the Education Code is amended
35to read:

36

42289.4.  

(a) Notwithstanding any other law, for the 1989-90
37fiscal year to the 2012-13 fiscal year, inclusive, after calculating
38the increase in funding amounts specified in Section 42287, the
39Superintendent of Public Instruction shall increase the funding
P112  1amounts specified in Sections 42281, 42282, and 42284, by the
2sum of paragraphs (1) and (2):

3(1) Compute the product of subparagraphs (A) and (B):

4(A) The amount per unit of average daily attendance computed
5pursuant to subdivision (b) of Section 54060.7.

6(B) The average daily attendance for each necessary small
7school and necessary small high school for which the school district
8receives funding in the current fiscal year pursuant to Section
942281, 42282, or 42284, as appropriate.

10(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
11inclusive, the amount computed pursuant to paragraph (1) shall
12be increased by the percentage cost-of-living increase given to
13school district revenue limits for the then current fiscal year.

end delete
begin delete14

SEC. 61.  

Section 42289.5 of the Education Code is amended
15to read:

16

42289.5.  

Notwithstanding any other law, the increases
17determined pursuant to Sections 42289, 42289.1, 42289.3, and
1842289.4 shall be permanently increased for the 1998-99 fiscal
19year by the quotient, for each school district eligible for an increase,
20of the amount determined pursuant to subparagraph (B) of
21paragraph (3) of subdivision (a) of Section 42238.8, as that section
22read on January 1, 2013, divided by the amount determined
23pursuant to subparagraph (C) of paragraph (3) of subdivision (a)
24of Section 42238.8, as that section read on January 1, 2013.

end delete
begin delete25

SEC. 62.  

Section 42605 of the Education Code is repealed.

end delete
begin delete26

SEC. 63.  

Section 42606 of the Education Code is repealed.

end delete
begin delete27

SEC. 64.  

Section 42800 of the Education Code is amended to
28read:

29

42800.  

(a) The governing board of a school district may, with
30the consent of the county superintendent of schools, establish a
31revolving cash fund for the use of the chief accounting officer of
32the school district, by adopting a resolution setting forth the
33necessity for the revolving cash fund, the officer for whom and
34the purposes for which the revolving cash fund shall be available,
35and the amount of the fund. The purposes for which the revolving
36cash fund shall be available shall include the purposes specified
37in Section 45167. Three certified copies of the resolution shall be
38transmitted to the county superintendent of schools. If he approves
39the establishment of the fund, the county superintendent shall
40endorse his consent on the resolution and return one copy to the
P113  1governing body of the school district, and transmit one copy to the
2county auditor.

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

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

7(2) A dollar amount limit of seventy-five thousand dollars
8($75,000) for any elementary school or high school district and
9one hundred fifty thousand dollars ($150,000) for any unified
10school district for fiscal year 1990-91. The dollar amount limit
11for each school district shall, through the 2012-13 fiscal year, be
12increased annually by the percentage increase in the district’s
13revenue limit established by Section 42238, as that section read
14on January 1, 2013. The dollar amount limit for each school district
15shall thereafter be increased annually by the percentage increase
16in the school district’s local control funding formula allocation
17established pursuant to Section 42238.02, as implemented pursuant
18to Section 42238.03.

end delete
begin delete19

SEC. 65.  

Section 46200 of the Education Code is amended to
20read:

21

46200.  

For a school district that received an apportionment
22pursuant to subdivision (a) of this section, as it read on January 1,
232013, and that offers less than 180 days of instruction or, in
24multitrack year-round schools, fewer than the number of days
25required in subdivision (a) of this section, as it read on January 1,
262013, for multitrack year-round schools, in the 2013-14 fiscal
27year, or any fiscal year thereafter, the Superintendent shall withhold
28from the school district’s local control funding formula grant
29apportionment pursuant to Section 42238.02, as implemented by
30Section 42238.03, for the average daily attendance of each affected
31grade level the sum of 0.0056 multiplied by the apportionment
32received pursuant to subdivision (a) of this section, as it read on
33January 1, 2013, for each day less than 180, or, in multitrack
34year-round schools, for each day less than the number of days
35required in subdivision (a) for year-round schools that the school
36district offered.

end delete
begin delete37

SEC. 66.  

Section 46201 of the Education Code is amended to
38read:

39

46201.  

(a) For each school district that received an
40apportionment pursuant to subdivision (a) of this section, as it read
P114  1on January 1, 2013, and that reduces the amount of instructional
2time offered below the minimum amounts specified in subdivision
3(b), the Superintendent shall withhold from the school district’s
4local control funding formula grant apportionment pursuant to
5Section 42238.02, as implemented by Section 42238.03, for the
6average daily attendance of each affected grade level, the sum of
7the apportionment received pursuant to subdivision (a) of this
8section, as it read on January 1, 2013, multiplied by the percentage
9of the minimum offered minutes at that grade level that the school
10district failed to offer.

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

12(1) Thirty-six thousand minutes in kindergarten.

13(2) Fifty thousand four hundred minutes in grades 1 to 3,
14inclusive.

15(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.

16(4) Sixty-four thousand eight hundred minutes in grades 9 to
1712, inclusive.

end delete
begin delete18

SEC. 67.  

Section 46201.2 of the Education Code is amended
19to read:

20

46201.2.  

(a) Commencing with the 2009-10 school year and
21continuing through the 2012-13 school year, a school district,
22county office of education, or charter school may reduce the
23equivalent of up to five days of instruction or the equivalent
24number of instructional minutes without incurring the penalties
25set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
2646202, and 47612.5, as those sections read on January 1, 2013. A
27school district, county office of education, or charter school shall
28receive revenue limit funding based on the adjustments prescribed
29pursuant to Section 42238.146, as it read on January 1, 2013,
30whether or not it reduces the number of schooldays or instructional
31minutes.

32(b) For the 2013-14 and 2014-15 school years, a school district,
33county office of education, or charter school may reduce the
34equivalent of up to five days of instruction or the equivalent
35number of instructional minutes without incurring the penalties
36set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
3746202, and 47612.5.

38(c) This section shall become inoperative on July 1, 2015, and,
39as of January 1, 2016, is repealed, unless a later enacted statute,
P115  1that becomes operative on or before January 1, 2016, deletes or
2extends the dates on which it becomes inoperative and is repealed.

end delete
begin delete3

SEC. 68.  

Section 46201.3 of the Education Code is repealed.

end delete
begin delete4

SEC. 69.  

Section 46202 of the Education Code is amended to
5read:

6

46202.  

If a school district that does not participate in the
7program set forth in Sections 46200 to 46206, inclusive, as those
8sections read on January 1, 2013, offers less instructional time in
9a fiscal year than the amount of instructional time fixed for the
101982-83 fiscal year, the Superintendent shall withhold for that
11fiscal year, from the school district’s local control funding formula
12grant apportionment pursuant to Section 42238.03, as implemented
13by Section 42238.03, for the average daily attendance of each
14affected grade level, the amount of that apportionment multiplied
15by the percentage of instructional minutes fixed in the 1982-83
16school year, at that grade level, that the school district failed to
17offer.

end delete
begin delete18

SEC. 70.  

Section 46204 of the Education Code is repealed.

end delete
begin delete19

SEC. 71.  

Section 46207 is added to the Education Code, to
20read:

21

46207.  

(a) Notwithstanding Sections 46200 to 46205,
22inclusive, upon a determination that a school district equals or
23exceeds its local control funding formula target computed pursuant
24to Section 42238.02 as determined by the calculation of a zero
25difference pursuant to paragraph (1) of subdivision (b) of Section
2642238.03, each school district, as a condition of apportionment
27pursuant to Section 42238.02, as implemented pursuant to Section
2842238.03, shall, for each fiscal year, offer, at a minimum, the
29following number of minutes of instruction:

30(1) To pupils in kindergarten, 36,000 minutes.

31(2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.

32(3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.

33(4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.

34(b) For a school district that has met its local control funding
35formula target that reduces the amount of instructional time offered
36below the minimum amounts specified in subdivision (a), the
37Superintendent shall withhold from the school district’s local
38control funding formula apportionment for the average daily
39attendance of each affected grade level, the product of that
40apportionment multiplied by the percentage of the minimum
P116  1offered minutes at that grade level that the school district failed to
2offer.

3(c) Notwithstanding subdivision (a), for the 2013-14 and
42014-15 school years, a school district that equals or exceeds its
5computed local control funding formula target may reduce the
6equivalent of up to five days of instruction or the equivalent
7number of instructional minutes without incurring the penalties
8set forth in this section.

end delete
begin delete9

SEC. 72.  

Section 46208 is added to the Education Code, to
10read:

11

46208.  

(a) Notwithstanding Sections 46200 to 46205,
12inclusive, upon a determination that a school district equals or
13exceeds its local control funding formula target computed pursuant
14to Section 42238.02 as determined by the calculation of a zero
15difference pursuant to paragraph (1) of subdivision (b) of Section
1642238.03, each school district, as a condition of apportionment
17pursuant to Section 42238.02, as implemented pursuant to Section
1842238.03, shall offer 180 days or more of instruction per school
19year. A school operating a multitrack year-round school shall be
20deemed to be in compliance with the 180-day requirement if it
21certifies to the Superintendent that it is a multitrack year-round
22school and maintains its school for a minimum of 163 schooldays.

23(b) Notwithstanding subdivision (a), for the 2013-14 and
242014-15 school years, a school district that equals or exceeds its
25computed local control funding formula target may reduce the
26equivalent of up to five days of instruction or the equivalent
27number of instructional minutes without incurring the penalties
28set forth in this section.

end delete
begin delete29

SEC. 73.  

Section 47604.32 of the Education Code is amended
30to read:

31

47604.32.  

Each chartering authority, in addition to any other
32duties imposed by this part, shall do all of the following with
33respect to each charter school under its authority:

34(a) Identify at least one staff member as a contact person for
35the charter school.

36(b) Visit each charter school at least annually.

37(c) Ensure that each charter school under its authority complies
38with all reports required of charter schools by law, including the
39annual update required pursuant to Section 47606.5.

P117  1(d) Monitor the fiscal condition of each charter school under its
2authority.

3(e) Provide timely notification to the department if any of the
4following circumstances occur or will occur with regard to a charter
5school for which it is the chartering authority:

6(1) A renewal of the charter is granted or denied.

7(2) The charter is revoked.

8(3) The charter school will cease operation for any reason.

9(f) The cost of performing the duties required by this section
10shall be funded with supervisorial oversight fees collected pursuant
11to Section 47613.

end delete
begin delete12

SEC. 74.  

Section 47604.33 of the Education Code is amended
13to read:

14

47604.33.  

(a) Each charter school shall annually prepare and
15submit the following reports to its chartering authority and the
16county superintendent of schools, or only to the county
17superintendent of schools if the county board of education is the
18chartering authority:

19(1) On or before July 1, a preliminary budget. For a charter
20school in its first year of operation, the information submitted
21pursuant to subdivision (g) of Section 47605 satisfies this
22requirement.

23(2) On or before July 1, an annual update required pursuant to
24Section 47606.5.

25(3) On or before December 15, an interim financial report. This
26report shall reflect changes through October 31.

27(4) On or before March 15, a second interim financial report.
28This report shall reflect changes through January 31.

29(5) On or before September 15, a final unaudited report for the
30full prior year.

31(b) The chartering authority shall use any financial information
32it obtains from the charter school, including, but not limited to,
33the reports required by this section, to assess the fiscal condition
34of the charter school pursuant to subdivision (d) of Section
3547604.32.

36(c) The cost of performing the duties required by this section
37shall be funded with supervisorial oversight fees collected pursuant
38to Section 47613.

end delete
begin delete39

SEC. 75.  

Section 47604.5 of the Education Code is amended
40to read:

P118  1

47604.5.  

The state board, whether or not it is the authority that
2granted the charter, may, based upon the recommendation of the
3Superintendent, take appropriate action, including, but not limited
4to, revocation of the school’s charter, when the state board finds
5any of the following:

6(a) Gross financial mismanagement that jeopardizes the financial
7stability of the charter school.

8(b) Illegal or substantially improper use of charter school funds
9for the personal benefit of any officer, director, or fiduciary of the
10charter school.

11(c) Substantial and sustained departure from measurably
12successful practices such that continued departure would jeopardize
13the educational development of the school’s pupils.

14(d) Failure to improve pupil outcomes across multiple state and
15school priorities identified in the charter pursuant to subparagraph
16(A) of paragraph (5) of subdivision (b) of Section 47605 or
17subparagraph (A) of paragraph (5) of subdivision (d) of Section
1847605.6.

end delete
begin delete19

SEC. 76.  

Section 47605 of the Education Code is amended to
20read:

21

47605.  

(a) (1) Except as set forth in paragraph (2), a petition
22for the establishment of a charter school within a school district
23may be circulated by one or more persons seeking to establish the
24charter school. A petition for the establishment of a charter school
25shall identify a single charter school that will operate within the
26geographic boundaries of that school district. A charter school
27may propose to operate at multiple sites within the school district,
28as long as each location is identified in the charter school petition.
29The petition may be submitted to the governing board of the school
30district for review after either of the following conditions is met:

31(A) The petition is signed by a number of parents or legal
32guardians of pupils that is equivalent to at least one-half of the
33number of pupils that the charter school estimates will enroll in
34the school for its first year of operation.

35(B) The petition is signed by a number of teachers that is
36equivalent to at least one-half of the number of teachers that the
37charter school estimates will be employed at the school during its
38first year of operation.

39(2) A petition that proposes to convert an existing public school
40to a charter school that would not be eligible for a loan pursuant
P119  1to subdivision (b) of Section 41365 may be circulated by one or
2more persons seeking to establish the charter school. The petition
3may be submitted to the governing board of the school district for
4review after the petition is signed by not less than 50 percent of
5the permanent status teachers currently employed at the public
6school to be converted.

7(3) A petition shall include a prominent statement that a
8signature on the petition means that the parent or legal guardian
9is meaningfully interested in having his or her child or ward attend
10the charter school, or in the case of a teacher’s signature, means
11that the teacher is meaningfully interested in teaching at the charter
12school. The proposed charter shall be attached to the petition.

13(4) After receiving approval of its petition, a charter school that
14proposes to establish operations at one or more additional sites
15shall request a material revision to its charter and shall notify the
16authority that granted its charter of those additional locations. The
17authority that granted its charter shall consider whether to approve
18those additional locations at an open, public meeting. If the
19additional locations are approved, they shall be a material revision
20to the charter school’s charter.

21(5) A charter school that is unable to locate within the
22jurisdiction of the chartering school district may establish one site
23outside the boundaries of the school district, but within the county
24in which that school district is located, if the school district within
25the jurisdiction of which the charter school proposes to operate is
26notified in advance of the charter petition approval, the county
27superintendent of schools and the Superintendent are notified of
28the location of the charter school before it commences operations,
29and either of the following circumstances exists:

30(A) The school has attempted to locate a single site or facility
31to house the entire program, but a site or facility is unavailable in
32the area in which the school chooses to locate.

33(B) The site is needed for temporary use during a construction
34or expansion project.

35(6) Commencing January 1, 2003, a petition to establish a charter
36school may not be approved to serve pupils in a grade level that
37is not served by the school district of the governing board
38considering the petition, unless the petition proposes to serve pupils
39in all of the grade levels served by that school district.

P120  1(b) No later than 30 days after receiving a petition, in accordance
2with subdivision (a), the governing board of the school district
3shall hold a public hearing on the provisions of the charter, at
4which time the governing board of the school district shall consider
5the level of support for the petition by teachers employed by the
6district, other employees of the district, and parents. Following
7review of the petition and the public hearing, the governing board
8of the school district shall either grant or deny the charter within
960 days of receipt of the petition, provided, however, that the date
10may be extended by an additional 30 days if both parties agree to
11the extension. In reviewing petitions for the establishment of
12charter schools pursuant to this section, the chartering authority
13shall be guided by the intent of the Legislature that charter schools
14are and should become an integral part of the California educational
15system and that establishment of charter schools should be
16encouraged. The governing board of the school district shall grant
17a charter for the operation of a school under this part if it is satisfied
18that granting the charter is consistent with sound educational
19practice. The governing board of the school district shall not deny
20a petition for the establishment of a charter school unless it makes
21written factual findings, specific to the particular petition, setting
22forth specific facts to support one or more of the following
23findings:

24(1) The charter school presents an unsound educational program
25for the pupils to be enrolled in the charter school.

26(2) The petitioners are demonstrably unlikely to successfully
27implement the program set forth in the petition.

28(3) The petition does not contain the number of signatures
29required by subdivision (a).

30(4) The petition does not contain an affirmation of each of the
31conditions described in subdivision (d).

32(5) The petition does not contain reasonably comprehensive
33descriptions of all of the following:

34(A) (i) A description of the educational program of the school,
35designed, among other things, to identify those whom the school
36is attempting to educate, what it means to be an “educated person”
37in the 21st century, and how learning best occurs. The goals
38identified in that program shall include the objective of enabling
39pupils to become self-motivated, competent, and lifelong learners.

P121  1(ii) A description, for the charter school, of annual goals, for
2all pupils and for each subgroup of pupils identified pursuant to
3Section 52052, to be achieved in the state priorities, as described
4in subdivision (d) of Section 52060, that apply for the grade levels
5served, or the nature of the program operated, by the charter school,
6and specific annual actions to achieve those goals. A charter
7petition may identify additional school priorities, the goals for the
8school priorities, and the specific annual actions to achieve those
9goals.

10(iii) If the proposed school will serve high school pupils, a
11description of the manner in which the charter school will inform
12parents about the transferability of courses to other public high
13schools and the eligibility of courses to meet college entrance
14requirements. Courses offered by the charter school that are
15accredited by the Western Association of Schools and Colleges
16may be considered transferable and courses approved by the
17University of California or the California State University as
18creditable under the “A” to “G” admissions criteria may be
19considered to meet college entrance requirements.

20(B) The measurable pupil outcomes identified for use by the
21charter school. “Pupil outcomes,” for purposes of this part, means
22the extent to which all pupils of the school demonstrate that they
23have attained the skills, knowledge, and attitudes specified as goals
24in the school’s educational program. Pupil outcomes shall include
25outcomes that address increases in pupil academic achievement
26both schoolwide and for all groups of pupils served by the charter
27school, as that term is defined in subparagraph (B) of paragraph
28(3) of subdivision (a) of Section 47607. The pupil outcomes shall
29align with the state priorities, as described in subdivision (d) of
30Section 52060, that apply for the grade levels served, or the nature
31of the program operated, by the charter school.

32(C) The method by which pupil progress in meeting those pupil
33outcomes is to be measured. To the extent practicable, the method
34for measuring pupil outcomes for state priorities shall be consistent
35with the way information is reported on a school accountability
36report card.

37(D) The governance structure of the school, including, but not
38limited to, the process to be followed by the school to ensure
39parental involvement.

P122  1(E) The qualifications to be met by individuals to be employed
2by the school.

3(F) The procedures that the school will follow to ensure the
4health and safety of pupils and staff. These procedures shall include
5the requirement that each employee of the school furnish the school
6with a criminal record summary as described in Section 44237.

7(G) The means by which the school will achieve a racial and
8ethnic balance among its pupils that is reflective of the general
9population residing within the territorial jurisdiction of the school
10district to which the charter petition is submitted.

11(H) Admission requirements, if applicable.

12(I) The manner in which annual, independent financial audits
13shall be conducted, which shall employ generally accepted
14accounting principles, and the manner in which audit exceptions
15and deficiencies shall be resolved to the satisfaction of the
16chartering authority.

17(J) The procedures by which pupils can be suspended or
18expelled.

19(K) The manner by which staff members of the charter schools
20will be covered by the State Teachers’ Retirement System, the
21Public Employees’ Retirement System, or federal social security.

22(L) The public school attendance alternatives for pupils residing
23within the school district who choose not to attend charter schools.

24(M) A description of the rights of any employee of the school
25district upon leaving the employment of the school district to work
26in a charter school, and of any rights of return to the school district
27after employment at a charter school.

28(N) The procedures to be followed by the charter school and
29the entity granting the charter to resolve disputes relating to
30provisions of the charter.

31(O) A declaration whether or not the charter school shall be
32deemed the exclusive public school employer of the employees of
33the charter school for purposes of Chapter 10.7 (commencing with
34Section 3540) of Division 4 of Title 1 of the Government Code.

35(P) A description of the procedures to be used if the charter
36school closes. The procedures shall ensure a final audit of the
37school to determine the disposition of all assets and liabilities of
38the charter school, including plans for disposing of any net assets
39and for the maintenance and transfer of pupil records.

P123  1(c) (1) Charter schools shall meet all statewide standards and
2conduct the pupil assessments required pursuant to Sections 60605
3and 60851 and any other statewide standards authorized in statute
4or pupil assessments applicable to pupils in noncharter public
5schools.

6(2) Charter schools shall, on a regular basis, consult with their
7parents, legal guardians, and teachers regarding the school’s
8educational programs.

9(d) (1) In addition to any other requirement imposed under this
10part, a charter school shall be nonsectarian in its programs,
11admission policies, employment practices, and all other operations,
12shall not charge tuition, and shall not discriminate against any
13pupil on the basis of the characteristics listed in Section 220. Except
14as provided in paragraph (2), admission to a charter school shall
15not be determined according to the place of residence of the pupil,
16or of his or her parent or legal guardian, within this state, except
17that an existing public school converting partially or entirely to a
18charter school under this part shall adopt and maintain a policy
19giving admission preference to pupils who reside within the former
20attendance area of that public school.

21(2) (A) A charter school shall admit all pupils who wish to
22attend the school.

23(B) If the number of pupils who wish to attend the charter school
24exceeds the school’s capacity, attendance, except for existing pupils
25of the charter school, shall be determined by a public random
26drawing. Preference shall be extended to pupils currently attending
27the charter school and pupils who reside in the district except as
28provided for in Section 47614.5. Other preferences may be
29permitted by the chartering authority on an individual school basis
30and only if consistent with the law.

31(C) In the event of a drawing, the chartering authority shall
32make reasonable efforts to accommodate the growth of the charter
33school and in no event shall take any action to impede the charter
34school from expanding enrollment to meet pupil demand.

35(3) If a pupil is expelled or leaves the charter school without
36graduating or completing the school year for any reason, the charter
37school shall notify the superintendent of the school district of the
38pupil’s last known address within 30 days, and shall, upon request,
39provide that school district with a copy of the cumulative record
40of the pupil, including a transcript of grades or report card, and
P124  1health information. This paragraph applies only to pupils subject
2to compulsory full-time education pursuant to Section 48200.

3(e) The governing board of a school district shall not require
4any employee of the school district to be employed in a charter
5school.

6(f) The governing board of a school district shall not require
7any pupil enrolled in the school district to attend a charter school.

8(g) The governing board of a school district shall require that
9the petitioner or petitioners provide information regarding the
10proposed operation and potential effects of the school, including,
11but not limited to, the facilities to be used by the school, the manner
12in which administrative services of the school are to be provided,
13and potential civil liability effects, if any, upon the school and
14upon the school district. The description of the facilities to be used
15by the charter school shall specify where the school intends to
16locate. The petitioner or petitioners shall also be required to provide
17financial statements that include a proposed first-year operational
18budget, including startup costs, and cashflow and financial
19projections for the first three years of operation.

20(h) In reviewing petitions for the establishment of charter
21schools within the school district, the governing board of the school
22district shall give preference to petitions that demonstrate the
23capability to provide comprehensive learning experiences to pupils
24identified by the petitioner or petitioners as academically low
25achieving pursuant to the standards established by the department
26under Section 54032, as it read before July 19, 2006.

27(i) Upon the approval of the petition by the governing board of
28the school district, the petitioner or petitioners shall provide written
29notice of that approval, including a copy of the petition, to the
30applicable county superintendent of schools, the department, and
31the state board.

32(j) (1) If the governing board of a school district denies a
33petition, the petitioner may elect to submit the petition for the
34establishment of a charter school to the county board of education.
35The county board of education shall review the petition pursuant
36to subdivision (b). If the petitioner elects to submit a petition for
37establishment of a charter school to the county board of education
38and the county board of education denies the petition, the petitioner
39may file a petition for establishment of a charter school with the
40state board, and the state board may approve the petition, in
P125  1accordance with subdivision (b). A charter school that receives
2approval of its petition from a county board of education or from
3the state board on appeal shall be subject to the same requirements
4concerning geographic location to which it would otherwise be
5subject if it received approval from the entity to which it originally
6submitted its petition. A charter petition that is submitted to either
7a county board of education or to the state board shall meet all
8otherwise applicable petition requirements, including the
9identification of the proposed site or sites where the charter school
10will operate.

11(2) In assuming its role as a chartering agency, the state board
12shall develop criteria to be used for the review and approval of
13charter school petitions presented to the state board. The criteria
14shall address all elements required for charter approval, as
15identified in subdivision (b) and shall define “reasonably
16comprehensive” as used in paragraph (5) of subdivision (b) in a
17way that is consistent with the intent of this part. Upon satisfactory
18completion of the criteria, the state board shall adopt the criteria
19on or before June 30, 2001.

20(3) A charter school for which a charter is granted by either the
21county board of education or the state board based on an appeal
22pursuant to this subdivision shall qualify fully as a charter school
23for all funding and other purposes of this part.

24(4) If either the county board of education or the state board
25fails to act on a petition within 120 days of receipt, the decision
26of the governing board of the school district to deny a petition
27shall, thereafter, be subject to judicial review.

28(5) The state board shall adopt regulations implementing this
29subdivision.

30(6) Upon the approval of the petition by the county board of
31education, the petitioner or petitioners shall provide written notice
32of that approval, including a copy of the petition to the department
33and the state board.

34(k) (1) The state board may, by mutual agreement, designate
35its supervisorial and oversight responsibilities for a charter school
36approved by the state board to any local educational agency in the
37county in which the charter school is located or to the governing
38board of the school district that first denied the petition.

39(2) The designated local educational agency shall have all
40monitoring and supervising authority of a chartering agency,
P126  1including, but not limited to, powers and duties set forth in Section
247607, except the power of revocation, which shall remain with
3the state board.

4(3) A charter school that is granted its charter through an appeal
5to the state board and elects to seek renewal of its charter shall,
6before expiration of the charter, submit its petition for renewal to
7the governing board of the school district that initially denied the
8charter. If the governing board of the school district denies the
9school’s petition for renewal, the school may petition the state
10board for renewal of its charter.

11(l) Teachers in charter schools shall hold a Commission on
12Teacher Credentialing certificate, permit, or other document
13equivalent to that which a teacher in other public schools would
14be required to hold. These documents shall be maintained on file
15at the charter school and are subject to periodic inspection by the
16chartering authority. It is the intent of the Legislature that charter
17schools be given flexibility with regard to noncore, noncollege
18preparatory courses.

19(m) A charter school shall transmit a copy of its annual,
20independent financial audit report for the preceding fiscal year, as
21described in subparagraph (I) of paragraph (5) of subdivision (b),
22to its chartering entity, the Controller, the county superintendent
23of schools of the county in which the charter school is sited, unless
24the county board of education of the county in which the charter
25school is sited is the chartering entity, and the department by
26December 15 of each year. This subdivision does not apply if the
27audit of the charter school is encompassed in the audit of the
28chartering entity pursuant to Section 41020.

end delete
begin delete29

SEC. 77.  

Section 47605.6 of the Education Code is amended
30to read:

31

47605.6.  

(a) (1) In addition to the authority provided by
32Section 47605.5, a county board of education may also approve a
33petition for the operation of a charter school that operates at one
34or more sites within the geographic boundaries of the county and
35that provides instructional services that are not generally provided
36by a county office of education. A county board of education may
37approve a countywide charter only if it finds, in addition to the
38other requirements of this section, that the educational services to
39be provided by the charter school will offer services to a pupil
40population that will benefit from those services and that cannot be
P127  1served as well by a charter school that operates in only one school
2district in the county. A petition for the establishment of a
3countywide charter school pursuant to this subdivision may be
4circulated throughout the county by any one or more persons
5seeking to establish the charter school. The petition may be
6submitted to the county board of education for review after either
7of the following conditions is met:

8(A) The petition is signed by a number of parents or guardians
9of pupils residing within the county that is equivalent to at least
10one-half of the number of pupils that the charter school estimates
11will enroll in the school for its first year of operation and each of
12the school districts where the charter school petitioner proposes
13to operate a facility has received at least 30 days’ notice of the
14petitioner’s intent to operate a school pursuant to this section.

15(B) The petition is signed by a number of teachers that is
16equivalent to at least one-half of the number of teachers that the
17charter school estimates will be employed at the school during its
18first year of operation and each of the school districts where the
19charter school petitioner proposes to operate a facility has received
20at least 30 days’ notice of the petitioner’s intent to operate a school
21pursuant to this section.

22(2) An existing public school may not be converted to a charter
23school in accordance with this section.

24(3) After receiving approval of its petition, a charter school that
25proposes to establish operations at additional sites within the
26geographic boundaries of the county board of education shall notify
27the school districts where those sites will be located. The charter
28school shall also request a material revision of its charter by the
29county board of education that approved its charter and the county
30board of education shall consider whether to approve those
31additional locations at an open, public meeting, held no sooner
32than 30 days following notification of the school districts where
33the sites will be located. If approved, the location of the approved
34sites shall be a material revision of the school’s approved charter.

35(4) A petition shall include a prominent statement indicating
36that a signature on the petition means that the parent or guardian
37is meaningfully interested in having his or her child or ward attend
38the charter school, or in the case of a teacher’s signature, means
39that the teacher is meaningfully interested in teaching at the charter
40school. The proposed charter shall be attached to the petition.

P128  1(b) No later than 60 days after receiving a petition, in accordance
2with subdivision (a), the county board of education shall hold a
3public hearing on the provisions of the charter, at which time the
4county board of education shall consider the level of support for
5the petition by teachers, parents or guardians, and the school
6districts where the charter school petitioner proposes to place
7school facilities. Following review of the petition and the public
8hearing, the county board of education shall either grant or deny
9the charter within 90 days of receipt of the petition. However, this
10date may be extended by an additional 30 days if both parties agree
11to the extension. A county board of education may impose any
12additional requirements beyond those required by this section that
13it considers necessary for the sound operation of a countywide
14charter school. A county board of education may grant a charter
15for the operation of a school under this part only if the board is
16satisfied that granting the charter is consistent with sound
17educational practice and that the charter school has reasonable
18justification for why it could not be established by petition to a
19school district pursuant to Section 47605. The county board of
20education shall deny a petition for the establishment of a charter
21school if the board finds one or more of the following:

22(1) The charter school presents an unsound educational program
23for the pupils to be enrolled in the charter school.

24(2) The petitioners are demonstrably unlikely to successfully
25implement the program set forth in the petition.

26(3) The petition does not contain the number of signatures
27required by subdivision (a).

28(4) The petition does not contain an affirmation of each of the
29conditions described in subdivision (d).

30(5) The petition does not contain reasonably comprehensive
31descriptions of all of the following:

32(A) (i) A description of the educational program of the school,
33designed, among other things, to identify those pupils whom the
34school is attempting to educate, what it means to be an “educated
35person” in the 21st century, and how learning best occurs. The
36goals identified in that program shall include the objective of
37enabling pupils to become self-motivated, competent, and lifelong
38learners.

39(ii) A description, for the charter school, of annual goals, for
40all pupils and for each subgroup of pupils identified pursuant to
P129  1Section 52052, to be achieved in the state priorities, as described
2in subdivision (d) of Section 52060, that apply for the grade levels
3served, or the nature of the program operated, by the charter school,
4and specific annual actions to achieve those goals. A charter
5petition may identify additional school priorities, the goals for the
6school priorities, and the specific annual actions to achieve those
7goals.

8(iii) If the proposed charter school will enroll high school pupils,
9a description of the manner in which the charter school will inform
10parents regarding the transferability of courses to other public high
11schools. Courses offered by the charter school that are accredited
12by the Western Association of Schools and Colleges may be
13considered to be transferable to other public high schools.

14(iv) If the proposed charter school will enroll high school pupils,
15information as to the manner in which the charter school will
16inform parents as to whether each individual course offered by the
17charter school meets college entrance requirements. Courses
18approved by the University of California or the California State
19University as satisfying their prerequisites for admission may be
20considered as meeting college entrance requirements for purposes
21of this clause.

22(B) The measurable pupil outcomes identified for use by the
23charter school. “Pupil outcomes,” for purposes of this part, means
24the extent to which all pupils of the school demonstrate that they
25have attained the skills, knowledge, and aptitudes specified as
26goals in the school’s educational program. Pupil outcomes shall
27include outcomes that address increases in pupil academic
28achievement both schoolwide and for all groups of pupils served
29by the charter school, as that term is defined in subparagraph (B)
30of paragraph (3) of subdivision (a) of Section 47607. The pupil
31outcomes shall align with the state priorities, as described in
32subdivision (d) of Section 52060, that apply for the grade levels
33served, or the nature of the program operated, by the charter school.

34(C) The method by which pupil progress in meeting those pupil
35outcomes is to be measured. To the extent practicable, the method
36for measuring pupil outcomes for state priorities shall be consistent
37with the way information is reported on a school accountability
38report card.

39(D) The location of each charter school facility that the petitioner
40proposes to operate.

P130  1(E) The governance structure of the school, including, but not
2limited to, the process to be followed by the school to ensure
3parental involvement.

4(F) The qualifications to be met by individuals to be employed
5by the school.

6(G) The procedures that the school will follow to ensure the
7health and safety of pupils and staff. These procedures shall include
8the requirement that each employee of the school furnish the school
9with a criminal record summary as described in Section 44237.

10(H) The means by which the school will achieve a racial and
11ethnic balance among its pupils that is reflective of the general
12population residing within the territorial jurisdiction of the school
13district to which the charter petition is submitted.

14(I) The manner in which annual, independent, financial audits
15shall be conducted, in accordance with regulations established by
16the state board, and the manner in which audit exceptions and
17deficiencies shall be resolved.

18(J) The procedures by which pupils can be suspended or
19expelled.

20(K) The manner by which staff members of the charter schools
21will be covered by the State Teachers’ Retirement System, the
22Public Employees’ Retirement System, or federal social security.

23(L) The procedures to be followed by the charter school and the
24county board of education to resolve disputes relating to provisions
25of the charter.

26(M) A declaration whether or not the charter school shall be
27deemed the exclusive public school employer of the employees of
28the charter school for purposes of the Educational Employment
29Relations Act (Chapter 10.7 (commencing with Section 3540) of
30Division 4 of Title 1 of the Government Code).

31(N) Admission requirements of the charter school, if applicable.

32(O) The public school attendance alternatives for pupils residing
33within the county who choose not to attend the charter school.

34(P) A description of the rights of an employee of the county
35office of education, upon leaving the employment of the county
36office of education, to be employed by the charter school, and a
37description of any rights of return to the county office of education
38that an employee may have upon leaving the employ of the charter
39school.

P131  1(Q) A description of the procedures to be used if the charter
2school closes. The procedures shall ensure a final audit of the
3school to determine the disposition of all assets and liabilities of
4the charter school, including plans for disposing of any net assets
5and for the maintenance and transfer of public records.

6(6) Any other basis that the county board of education finds
7justifies the denial of the petition.

8(c) A county board of education that approves a petition for the
9operation of a countywide charter may, as a condition of charter
10approval, enter into an agreement with a third party, at the expense
11of the charter school, to oversee, monitor, and report to the county
12board of education on the operations of the charter school. The
13county board of education may prescribe the aspects of the charter
14school’s operations to be monitored by the third party and may
15prescribe appropriate requirements regarding the reporting of
16information concerning the operations of the charter school to the
17county board of education.

18(d) (1) Charter schools shall meet all statewide standards and
19conduct the pupil assessments required pursuant to Section 60605
20and any other statewide standards authorized in statute or pupil
21assessments applicable to pupils in noncharter public schools.

22(2) Charter schools shall on a regular basis consult with their
23parents and teachers regarding the school’s educational programs.

24(e) (1) In addition to any other requirement imposed under this
25part, a charter school shall be nonsectarian in its programs,
26admission policies, employment practices, and all other operations,
27shall not charge tuition, and shall not discriminate against any
28pupil on the basis of ethnicity, national origin, gender, gender
29identity, gender expression, or disability. Except as provided in
30paragraph (2), admission to a charter school shall not be determined
31according to the place of residence of the pupil, or of his or her
32parent or guardian, within this state.

33(2) (A) A charter school shall admit all pupils who wish to
34attend the school.

35(B) If the number of pupils who wish to attend the charter school
36exceeds the school’s capacity, attendance, except for existing pupils
37of the charter school, shall be determined by a public random
38drawing. Preference shall be extended to pupils currently attending
39the charter school and pupils who reside in the county except as
40provided for in Section 47614.5. Other preferences may be
P132  1permitted by the chartering authority on an individual school basis
2and only if consistent with the law.

3(C) In the event of a drawing, the county board of education
4shall make reasonable efforts to accommodate the growth of the
5charter school and in no event shall take any action to impede the
6charter school from expanding enrollment to meet pupil demand.

7(f) The county board of education shall not require any employee
8of the county or a school district to be employed in a charter school.

9(g) The county board of education shall not require any pupil
10enrolled in a county program to attend a charter school.

11(h) The county board of education shall require that the
12petitioner or petitioners provide information regarding the proposed
13operation and potential effects of the school, including, but not
14limited to, the facilities to be used by the school, the manner in
15which administrative services of the school are to be provided,
16and potential civil liability effects, if any, upon the school, any
17school district where the charter school may operate, and upon the
18county board of education. The petitioner or petitioners shall also
19be required to provide financial statements that include a proposed
20first-year operational budget, including startup costs, and cashflow
21and financial projections for the first three years of operation.

22(i) In reviewing petitions for the establishment of charter schools
23within the county, the county board of education shall give
24preference to petitions that demonstrate the capability to provide
25comprehensive learning experiences to pupils identified by the
26petitioner or petitioners as academically low achieving pursuant
27to the standards established by the department under Section 54032,
28as it read before July 19, 2006.

29(j) Upon the approval of the petition by the county board of
30education, the petitioner or petitioners shall provide written notice
31of that approval, including a copy of the petition, to the school
32districts within the county, the Superintendent, and to the state
33board.

34(k) If a county board of education denies a petition, the petitioner
35may not elect to submit the petition for the establishment of the
36charter school to the state board.

37(l) Teachers in charter schools shall be required to hold a
38Commission on Teacher Credentialing certificate, permit, or other
39document equivalent to that which a teacher in other public schools
40would be required to hold. These documents shall be maintained
P133  1on file at the charter school and shall be subject to periodic
2inspection by the chartering authority.

3(m) A charter school shall transmit a copy of its annual,
4independent, financial audit report for the preceding fiscal year,
5as described in subparagraph (I) of paragraph (5) of subdivision
6(b), to the county office of education, the Controller, and the
7department by December 15 of each year. This subdivision shall
8not apply if the audit of the charter school is encompassed in the
9audit of the chartering entity pursuant to Section 41020.

end delete
begin delete10

SEC. 78.  

Section 47606.5 is added to the Education Code, to
11read:

12

47606.5.  

(a) On or before July 1, 2015, and each year
13thereafter, a charter school shall update the goals and annual actions
14to achieve those goals identified in the charter pursuant to
15subparagraph (A) of paragraph (5) of subdivision (b) of Section
1647605 or subparagraph (A) of paragraph (5) of subdivision (b) of
17Section 47605.6. The annual update shall be developed using the
18template adopted pursuant to Section 52064 and shall include all
19of the following:

20(1) A review of the progress toward the goals included in the
21charter, an assessment of the effectiveness of the specific actions
22described in the charter toward achieving the goals, and a
23description of changes to the specific actions the charter school
24will make as a result of the review and assessment.

25(2) A listing and description of the expenditures for the fiscal
26year implementing the specific actions included in the charter as
27a result of the reviews and assessment required by paragraph (1).

28(b) The expenditures identified in subdivision (a) shall be
29classified using the California School Accounting Manual pursuant
30to Section 41010.

31(c) For purposes of the review required by subdivision (a), a
32governing body of a charter school may consider qualitative
33information, including, but not limited to, findings that result from
34school quality reviews conducted pursuant to subparagraph (J) or
35paragraph (4) of subdivision (a) of Section 52052 or any other
36reviews.

37(d) To the extent practicable, data reported pursuant to this
38section shall be reported in a manner consistent with how
39information is reported on a school accountability report card.

P134  1(e) The charter school shall consult with teachers, principals,
2administrators, other school personnel, parents, and pupils in
3developing the annual update.

end delete
begin delete4

SEC. 79.  

Section 47607.3 is added to the Education Code, to
5read:

6

47607.3.  

(a) If a charter school fails to improve outcomes for
7three or more pupil subgroups identified pursuant to Section 52052,
8or, if the charter school has less than three pupil subgroups, all of
9the charter school’s pupil subgroups, in regard to one or more state
10or school priority identified in the charter pursuant to subparagraph
11(A) of paragraph (5) of subdivision (b) of Section 47605 or
12subparagraph (A) of paragraph (5) of subdivision (b) of Section
1347605.6, in three out of four consecutive school years, all of the
14following shall apply:

15(1) Using an evaluation rubric adopted by the state board
16pursuant to Section 52064.5, the chartering authority shall provide
17technical assistance to the charter school.

18(2) The Superintendent may assign, at the request of the
19chartering authority and with the approval of the state board, the
20California Collaborative for Educational Excellence to provide
21advice and assistance to the charter school pursuant to Section
2252074.

23(b) A chartering authority shall consider for revocation any
24charter school to which the California Collaborative for Educational
25Excellence has provided advice and assistance pursuant to
26subdivision (a) and about which it has made either of the following
27findings, which shall be submitted to the chartering authority:

28(1) That the charter school has failed, or is unable, to implement
29the recommendations of the California Collaborative for
30Educational Excellence.

31(2) That the inadequate performance of the charter school, based
32upon an evaluation rubric adopted pursuant to Section 52064.5, is
33either so persistent or so acute as to require revocation of the
34charter.

35(c) The chartering authority shall consider increases in pupil
36academic achievement for all pupil subgroups served by the charter
37school as the most important factor in determining whether to
38revoke the charter.

39(d) A chartering authority shall comply with the hearing process
40described in subdivision (e) of Section 47607 in revoking a charter.
P135  1A charter school may not appeal a revocation of a charter made
2pursuant to this section.

end delete
begin delete3

SEC. 80.  

Section 47612.7 of the Education Code is repealed.

end delete
begin delete4

SEC. 81.  

Section 47613 of the Education Code is amended to
5read:

6

47613.  

(a) Except as set forth in subdivision (b), a chartering
7authority may charge for the actual costs of supervisorial oversight
8of a charter school not to exceed 1 percent of the revenue of the
9charter school.

10(b) A chartering authority may charge for the actual costs of
11supervisorial oversight of a charter school not to exceed 3 percent
12of the revenue of the charter school if the charter school is able to
13obtain substantially rent free facilities from the chartering authority.

14(c) A local agency that is given the responsibility for
15supervisorial oversight of a charter school, pursuant to paragraph
16(1) of subdivision (k) of Section 47605, may charge for the actual
17costs of supervisorial oversight, and administrative costs necessary
18to secure charter school funding. A charter school that is charged
19for costs under this subdivision may not be charged pursuant to
20subdivision (a) or (b).

21(d) This section does not prevent the charter school from
22separately purchasing administrative or other services from the
23chartering authority or any other source.

24(e) For purposes of this section, a chartering authority means a
25school district, county board of education, or the state board, that
26granted the charter to the charter school.

27(f) For purposes of this section, “revenue of the charter school”
28means the general purpose entitlement and categorical block grant,
29as defined in subdivisions (a) and (b) of Section 47632.

30(g) For purposes of this section, “costs of supervisorial
31oversight” includes, but is not limited to, costs incurred pursuant
32to Section 47607.3.

end delete
begin delete33

SEC. 82.  

Section 47631 of the Education Code is amended to
34read:

35

47631.  

(a) Article 3 (commencing with Section 47636) shall
36not apply to a charter granted pursuant to Section 47605.5.

37(b) A county-sponsored charter school shall receive the average
38daily attendance rate calculated pursuant to paragraph (1) of
39subdivision (c) of Section 2574 for enrolled pupils who are
40identified as any of the following:

P136  1(1) Probation-referred pursuant to Section 300, 601, 602, or 654
2of the Welfare and Institutions Code.

3(2) On probation or parole and not attending a school.

4(3) Expelled for any of the reasons specified in subdivision (a)
5or (c) of Section 48915.

6(c) A county-sponsored charter school shall be funded pursuant
7to the local control funding formula pursuant to Section 42238.02,
8as implemented by Section 42238.03, for all pupils except for
9pupils funded pursuant to subdivision (b).

end delete
begin delete10

SEC. 83.  

Section 47632 of the Education Code is amended to
11read:

12

47632.  

For purposes of this chapter, the following terms shall
13be defined as follows:

14(a) “General-purpose entitlement” means an amount computed
15by the local control funding formula pursuant to Section 42238.02,
16as implemented by Section 42238.03.

17(b) “Economic impact aid-eligible pupils” means those pupils
18that are included in the economic impact aid-eligible pupil count
19pursuant to Section 54023. For purposes of applying Section 54023
20to charter schools, “economically disadvantaged pupils” means
21the pupils described in paragraph (2) of subdivision (a) of Section
2254026.

23(c) “General-purpose funding” means those funds that consist
24of state aid, local property taxes, and other revenues applied toward
25a school district’s local control funding formula, pursuant to
26Section 42238.02, as implemented by Section 42238.03.

27(d) “Categorical aid” means aid that consists of state or federally
28funded programs, or both, which are apportioned for specific
29purposes set forth in statute or regulation.

30(e) “Educationally disadvantaged pupils” means thosepupils
31who meet federal eligibility criteria for free and reduced-price
32meals as specified in Section 49531, as that section read on January
331, 2013, except in regard to meals in family day care homes.

34(f) “Operational funding” means all funding except funding for
35capital outlay.

36(g) “School district of a similar type” means a school district
37that is serving similar grade levels.

38(h) “Similar pupil population” means similar numbers of pupils
39by grade level, with a similar proportion of educationally
40disadvantaged pupils.

P137  1(i) “Sponsoring local educational agency” means the following:

2(1) If a charter school is granted by a school district, the
3sponsoring local educational agency is the school district.

4(2) If a charter is granted by a county office of education after
5having been previously denied by a school district, the sponsoring
6local educational agency means the school district that initially
7denied the charter petition.

8(3) If a charter is granted by the state board after having been
9previously denied by a local educational agency, the sponsoring
10local educational agency means the local educational agency
11designated by the state board pursuant to paragraph (1) of
12subdivision (k) of Section 47605 or if a local educational agency
13is not designated, the local educational agency that initially denied
14the charter petition.

15(4) For pupils attending county-sponsored charter schools who
16are eligible to attend those schools solely as a result of parental
17request pursuant to subdivision (b) of Section 1981, the sponsoring
18local educational agency means the pupils’ school district of
19residence.

20(5) For pupils attending countywide charter schools pursuant
21to Section 47605.6 who reside in a basic aid school district, the
22sponsoring local educational agency means the school district of
23residence of the pupil. For purposes of this paragraph, “basic aid
24school district” means a school district that does not receive an
25apportionment of state funds as described in subdivision (o) of
26Section 42238.02.

end delete
begin delete27

SEC. 84.  

Section 47632.5 of the Education Code is repealed.

end delete
begin delete28

SEC. 85.  

Section 47635 of the Education Code is amended to
29read:

30

47635.  

(a) A sponsoring local educational agency shall
31annually transfer to each of its charter schools funding in lieu of
32property taxes equal to the lesser of the following two amounts:

33(1) The average amount of property taxes per unit of average
34daily attendance, including average daily attendance attributable
35to charter schools, received by the local educational agency,
36multiplied by the charter school’s average daily attendance.

37(2) The statewide average local control funding formula grant
38funding computed pursuant to subdivision (d) of Section 42238.02,
39per unit of average daily attendance received by school districts,
40as determined by the department, multiplied by the charter school’s
P138  1average daily attendance in each of the four corresponding grade
2level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and
36; grades 7 and 8; and grades 9 to 12, inclusive.

4(3) Notwithstanding paragraph (2), until the Superintendent
5determines that a charter school is funded pursuant to Section
642238.02 in the prior fiscal year, the Superintendent shall apportion
7funding per unit of average daily attendance pursuant to this article.
8The base grant for purposes of paragraph (2) shall be the sum of
9the entitlements for the charter school in the specified fiscal year
10as computed pursuant to paragraphs (1) to (4), inclusive, of
11subdivision (a) of Section 42238.03 and paragraph (3) of
12subdivision (b) of Section 42238.03, multiplied by the ratio of
13local control funding formula base grant funding computed
14pursuant to subdivision (d) of Section 42238.02 to the local control
15funding formula amount for the fiscal year computed pursuant to
16Section 42238.02.

17(b) The sponsoring local educational agency shall transfer
18funding in lieu of property taxes to the charter school in monthly
19installments, by no later than the 15th of each month.

20(1) For the months of August to February, inclusive, a charter
21school’s funding in lieu of property taxes shall be computed based
22on the amount of property taxes received by the sponsoring local
23educational agency during the preceding fiscal year, as reported
24to the Superintendent for purposes of the second principal
25apportionment. A sponsoring local educational agency shall transfer
26to the charter school the charter school’s estimated annual
27entitlement to funding in lieu of property taxes as follows:

28(A) Six percent in August.

29(B) Twelve percent in September.

30(C) Eight percent each month in October, November, December,
31January, and February.

32(2) For the months of March to June, inclusive, a charter
33school’s funding in lieu of property taxes shall be computed based
34on the amount of property taxes estimated to be received by the
35sponsoring local educational agency during the fiscal year, as
36reported to the Superintendent for purposes of the first principal
37apportionment. A sponsoring local educational agency shall transfer
38to each of its charter schools an amount equal to one-sixth of the
39difference between the school’s estimated annual entitlement to
40funding in lieu of property taxes and the amounts provided pursuant
P139  1to paragraph (1). An additional one-sixth of this difference shall
2be included in the amount transferred in the month of March.

3(3) For the month of July, a charter school’s funding in lieu of
4property taxes shall be computed based on the amount of property
5taxes estimated to be received by the sponsoring local educational
6agency during the prior fiscal year, as reported to the
7Superintendent for purposes of the second principal apportionment.
8A sponsoring local educational agency shall transfer to each of its
9charter schools an amount equal to the remaining difference
10between the school’s estimated annual entitlement to funding in
11lieu of property taxes and the amounts provided pursuant to
12paragraphs (1) and (2).

13(4) Final adjustments to the amount of funding in lieu of
14property taxes allocated to a charter school shall be made in
15February, in conjunction with the final reconciliation of annual
16apportionments to schools.

17(5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
18apply for pupils who reside in, and are otherwise eligible to attend
19a school in, a basic aid school district, but who attend a charter
20school in a nonbasic aid school district. With regard to these pupils,
21the sponsoring basic aid school district shall transfer to the charter
22school an amount of funds equivalent to the local control funding
23formula grant pursuant to Section 42238.02, as implemented by
24Section 42238.03, earned through average daily attendance by the
25charter school for each pupil’s attendance, not to exceed the
26average property tax share per unit of average daily attendance for
27pupils residing and attending in the basic aid school district. The
28transfer of funds shall be made in not fewer than two installments
29at the request of the charter school, the first occurring not later
30than February 1 and the second not later than June 1 of each school
31year. Payments shall reflect the average daily attendance certified
32for the time periods of the first and second principal
33apportionments, respectively. The Superintendent may not
34apportion any funds for the attendance of pupils described in this
35subdivision unless the amount transferred by the basic aid district
36is less than the local control funding formula grant pursuant to
37Section 42238.02, as implemented by Section 42238.03, earned
38by the charter school, in which event the Superintendent shall
39apportion the difference to the charter school from state funds.

end delete
begin deleteP140  1

SEC. 86.  

Section 47636 of the Education Code is amended to
2read:

3

47636.  

(a) This chapter shall not prevent a charter school from
4negotiating with a local educational agency for a share of
5operational funding from sources not otherwise set forth in this
6chapter including, but not limited to, all of the following:

7(1) Forest reserve revenues and other operational revenues
8received due to harvesting or extraction of minerals or other natural
9resources.

10(2) Sales and use taxes, to the extent that the associated revenues
11are available for noncapital expenses of public schools.

12(3) Parcel taxes, to the extent that the associated revenues are
13available for noncapital expenses of public schools.

14(4) Ad valorem property taxes received by a school district
15which exceed its local control funding formula entitlement pursuant
16to Section 42238.02, as implemented by Section 42238.03.

17(5) “Basic aid” received by a school district pursuant to Section
186 of Article IX of the California Constitution.

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

end delete
begin delete20

SEC. 87.  

Section 47660 of the Education Code is amended to
21read:

22

47660.  

For purposes of computing eligibility for, and
23entitlements to, general purpose funding and operational funding
24for categorical programs, the enrollment and average daily
25attendance of a sponsoring local educational agency shall exclude
26the enrollment and attendance of pupils in its charter schools
27funded pursuant to this chapter.

end delete
begin delete28

SEC. 88.  

Section 47663 of the Education Code is amended to
29read:

30

47663.  

(a) (1) For a pupil of a charter school sponsored by a
31basic aid school district who resides in, and is otherwise eligible
32to attend, a school district other than a basic aid school district,
33the Superintendent shall apportion to the sponsoring school district
34an amount equal to 70 percent of the local control funding formula
35base grant computed pursuant to subdivision (d) of Section
3642238.02, per unit of average daily attendance that would have
37been apportioned to the school district that the pupil resides in and
38would otherwise have been eligible to attend.

39(2) Notwithstanding paragraph (1), until the Superintendent
40determines that the school district the pupil resides in, and would
P141  1otherwise have been eligible to attend, is funded pursuant to
2Section 42238.02 in the prior fiscal year, the Superintendent shall
3apportion, for average daily attendance pursuant to this article, 70
4percent of the sum of the entitlements for the school district that
5the pupil resides in, and would otherwise have been eligible to
6attend, for the specified fiscal year as computed pursuant to
7paragraphs (1) to (4), inclusive, of subdivision (a) of Section
842238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
9divided by the average daily attendance for that fiscal year and
10then multiplied by the ratio of local control funding formula base
11grant funding computed pursuant to subdivision (d) of Section
1242238.02 to the local control funding formula amount for the fiscal
13year computed pursuant to Section 42238.02.

14(b) A school district that loses basic aid status as a result of
15transferring property taxes to a charter school or schools pursuant
16to Section 47635 for pupils who reside in, and are otherwise
17eligible to attend, a school district other than the school district
18that sponsors the charter school, shall be eligible to receive a pro
19rata share of funding provided by subdivision (a), with the proration
20factor calculated as the ratio of the following:

21(1) The amount of property taxes that the school district receives
22in excess of its total base grant per unit of average daily attendance
23calculated pursuant to Section 42238.02, as implemented by
24Section 42238.03, before any transfers made pursuant to Section
2547635, except for transfers of in lieu of property taxes made for
26pupils who reside in, and would otherwise be eligible to attend, a
27school of the school district.

28(2) The total amount of in lieu of property taxes transferred
29pursuant to Section 47635 to the charter school or schools that it
30sponsors, except for transfers of in lieu of property taxes made for
31pupils who reside in, and would otherwise be eligible to attend, a
32school of the school district.

33(c) In no event shall the amount provided pursuant to this section
34exceed the amount of in lieu of property taxes transferred on behalf
35of charter school pupils who do not reside in the school district,
36less the proportionate amount of base grant state aid provided
37pursuant to Section 42238.02, as implemented by Section 42238.03,
38that is attributable to the charter school pupils who do not reside
39in the school district.

P142  1(d) The Superintendent shall not apportion funds for the
2attendance of a pupil in a charter school of a nonbasic aid school
3district who resides in, and is otherwise eligible to attend school
4in, a basic aid school district unless the pupil is subject to the
5exception set forth in paragraph (5) of subdivision (b) of Section
647635.

7(e) For purposes of this section, “basic aid school district” means
8a school district that does not receive from the state, for any fiscal
9year in which the subdivision is applied, an apportionment of state
10funds as described in subdivision (o) of Section 42238.02.

end delete
begin delete11

SEC. 89.  

Section 47664 of the Education Code is repealed.

end delete
begin delete12

SEC. 90.  

Section 48310 of the Education Code is amended to
13read:

14

48310.  

(a) The average daily attendance for pupils admitted
15by a school district of choice pursuant to this article shall be
16credited to that school district pursuant to Section 46607. The
17attendance report for the school district of choice may include an
18identification of the school district of residence.

19(b) Notwithstanding other provisions of law, state aid for
20categorical education programs for pupils admitted under this
21article shall be apportioned to the school district of choice.

22(c) (1) For a school district of choice that is a basic aid school
23district, the apportionment of state funds for average daily
24attendance credited pursuant to this section shall be 70 percent of
25the district local control funding formula base grant computed
26pursuant to subdivision (d) of Section 42238.02, as implemented
27by Section 42238.03, that would have been apportioned to the
28school district of residence.

29(2) Notwithstanding paragraph (1), until the Superintendent
30determines that the school district of residence is funded pursuant
31to Section 42238.02 in the prior fiscal year, the Superintendent
32shall apportion, for average daily attendance pursuant to this article,
3370 percent of the sum of the entitlements for the school district of
34residence for the specified fiscal year as computed pursuant to
35paragraphs (1) to (4), inclusive, of subdivision (a) of Section
3642238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
37divided by the average daily attendance pursuant to this article for
38that fiscal year and then multiplied by the ratio of local control
39funding formula base grant funding computed pursuant to
40subdivision (d) of Section 42238.02 to the local control funding
P143  1formula amount for the fiscal year computed pursuant to Section
242238.02.

3(3) For purposes of this subdivision, the term “basic aid school
4district” means a school district that does not receive from the
5state, for a fiscal year in which this subdivision is applied, an
6apportionment of state funds as described in subdivision (o) of
7Section 42238.02.

8(d) The average daily attendance of pupils admitted by a school
9district of choice pursuant to this article shall be credited to that
10school district for purposes of any determination under Article 2
11(commencing with Section 17010) of Chapter 12 of Part 10 of
12Division 1 of Title 1 that uses an average daily attendance
13calculation.

end delete
begin delete14

SEC. 91.  

Section 48359.5 of the Education Code is amended
15to read:

16

48359.5.  

(a) For a school district of enrollment that is a basic
17aid school district, the apportionment of state funds for average
18daily attendance credited pursuant to this article shall be 70 percent
19of the school district local control funding formula base grant that
20would have been apportioned to the school district of residence
21pursuant to subdivision (d) of Section 42238.02. Apportionment
22of these funds shall begin in the second consecutive year of
23enrollment, and continue annually until the pupil graduates from,
24or is no longer enrolled in, the school district of enrollment.

25(b) Notwithstanding subdivision (a), until the Superintendent
26determines that the school district of enrollment is funded pursuant
27to Section 42238.02 in the prior fiscal year, the Superintendent
28shall apportion, for average daily attendance pursuant to this article,
2970 percent of the sum of the entitlements for the school district of
30enrollment for the specified fiscal year as computed pursuant to
31paragraphs (1) to (4), inclusive, of subdivision (a) of Section
3242238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
33divided by the average daily attendance pursuant to this article for
34that fiscal year and then multiplied by the ratio of local control
35funding formula base grant funding computed pursuant to
36subdivision (d) of Section 42238.02 to the local control funding
37formula amount for the fiscal year computed pursuant to Section
3842238.02.

39(c) For purposes of this section, “basic aid school district” means
40a school district that does not receive an apportionment of state
P144  1funds as described in subdivision (o) of Section 42238.02 for a
2fiscal year in which this section may apply.

end delete
begin delete3

SEC. 92.  

Section 49085 of the Education Code is amended to
4read:

5

49085.  

(a) The department and the State Department of Social
6Services shall develop and enter into a memorandum of
7understanding that shall, at a minimum, require the State
8Department of Social Services, at least once per week, to share
9with the department both of the following:

10(1) Disaggregated information on children and youth in foster
11care sufficient for the department to identify pupils in foster care.

12(2) Disaggregated data on children and youth in foster care that
13is helpful to county offices of education and other local educational
14agencies responsible for ensuring that pupils in foster care received
15appropriate educational supports and services.

16(b) To the extent allowable under federal law, the department
17shall regularly identify pupils in foster care and designate those
18pupils in the California Longitudinal Pupil Achievement Data
19System or any future data system used by the department to collect
20disaggregated pupil outcome data.

21(c) To the extent allowable under federal law, the
22Superintendent, on or before February 15 of each even-numbered
23year, shall report to the Legislature and the Governor on the
24educational outcomes for pupils in foster care at both the individual
25schoolsite level and school district level. The report shall include,
26but is not limited to, all of the following:

27(1) Individual schoolsite level and school district level
28educational outcome data for each local educational agency that
29enrolls at least 15 pupils in foster care, each county in which at
30least 15 pupils in foster care attend school, and for the entire state.

31(2) The number of pupils in foster care statewide and by each
32local educational agency.

33(3) The academic achievement of pupils in foster care.

34(4) The incidence of suspension and expulsion for pupils in
35foster care.

36(5) Truancy rates, attendance rates, and dropout rates for pupils
37in foster care.

38(d) To the extent allowable under federal law, the department,
39at least once per week, shall do all of the following:

P145  1(1) Inform school districts and charter schools of any pupils
2enrolled in those school districts or charter schools who are in
3foster care.

4(2) Inform county offices of education of any pupils enrolled
5in schools in the county who are in foster care.

6(3) Provide schools districts, county office of education, and
7charter schools disaggregated data helpful to ensuring pupils in
8foster care receive appropriate educational supports and services.

9(e) For purposes of this section “pupil in foster care” means a
10pupil who is under the jurisdiction of the juvenile court pursuant
11to Section 300, 601, or 602 of the Welfare and Institutions Code.

end delete
begin delete12

SEC. 93.  

Section 49536 of the Education Code is amended to
13read:

14

49536.  

(a) The department shall, before July 1 of each year,
15prescribe an adjustment in the state meal contribution rates
16established pursuant to this section for the forthcoming fiscal year.
17The adjustments shall reflect the changes in the cost of operating
18a school breakfast and lunch program and shall be made
19commencing on July 1 of each year. The adjustment shall be the
20average of the separate indices of the “Food Away From Home
21Index” for Los Angeles and San Francisco as prepared by the
22United States Bureau of Labor Statistics.

23(b) In giving effect to the cost-of-living provisions of this
24section, the department shall use the same month for computation
25of the percentage change in the cost of living after July 1, 1975.
26The same month shall be used annually thereafter. The product of
27a percentage increase or decrease in the average index and the per
28meal reimbursement disbursement rate shall be adjusted by the
29amount of a cost-of-living change currently in effect pursuant to
30the provisions of this section.

31(c) For the 1990-91 fiscal year to the 2012-13 fiscal year,
32inclusive, the cost-of-living adjustment shall be equal to the
33percentage change determined pursuant to subdivision (b) of
34Section 42238.1, as that section read on January 1, 2013.
35Commencing with the 2013-14 fiscal year, the cost-of-living
36adjustment shall be equal to the percentage determined pursuant
37to paragraph (2) of subdivision (d) of Section 42238.02.

end delete
begin delete38

SEC. 94.  

Section 52051 of the Education Code is repealed.

end delete
begin delete39

SEC. 95.  

Section 52052 of the Education Code is amended to
40read:

P146  1

52052.  

(a) (1) The Superintendent, with approval of the state
2board, shall develop an Academic Performance Index (API), to
3measure the performance of schools and school districts, especially
4the academic performance of pupils.

5(2) A school or school district shall demonstrate comparable
6improvement in academic achievement as measured by the API
7by all numerically significant pupil subgroups at the school or
8school district, including:

9(A) Ethnic subgroups.

10(B) Socioeconomically disadvantaged pupils.

11(C) English learners.

12(D) Pupils with disabilities.

13(E) Foster youth.

14(3) (A) For purposes of this section, a numerically significant
15pupil subgroup is one that consists of at least 30 pupils, each of
16whom has a valid test score.

17(B) Notwithstanding subparagraph (A), for a subgroup of pupils
18who are foster youth, a numerically significant pupil subgroup is
19one that consists of at least 15 pupils.

20(C) For a school or school district with an API score that is
21based on no fewer than 11 and no more than 99 pupils with valid
22test scores, numerically significant pupil subgroups shall be defined
23by the Superintendent, with approval by the state board.

24(4) (A) The API shall consist of a variety of indicators currently
25reported to the department, including, but not limited to, the results
26of the achievement test administered pursuant to Section 60640,
27attendance rates for pupils in elementary schools, middle schools,
28and secondary schools, and the graduation rates for pupils in
29secondary schools.

30(B) The Superintendent, with the approval of the state board,
31may also incorporate into the API the rates at which pupils
32successfully promote from one grade to the next in middle school
33and high school, and successfully matriculate from middle school
34to high school.

35(C) Graduation rates for pupils in secondary schools shall be
36calculated for the API as follows:

37(i) Four-year graduation rates shall be calculated by taking the
38number of pupils who graduated on time for the current school
39year, which is considered to be three school years after the pupils
P147  1entered grade 9 for the first time, and dividing that number by the
2total calculated in clause (ii).

3(ii) The number of pupils entering grade 9 for the first time in
4the school year three school years before the current school year,
5plus the number of pupils who transferred into the class graduating
6at the end of the current school year between the school year that
7was three school years before the current school year and the date
8of graduation, less the number of pupils who transferred out of the
9school between the school year that was three school years before
10the current school year and the date of graduation who were
11members of the class that is graduating at the end of the current
12school year.

13(iii) Five-year graduation rates shall be calculated by taking the
14number of pupils who graduated on time for the current school
15year, which is considered to be four school years after the pupils
16entered grade 9 for the first time, and dividing that number by the
17total calculated in clause (iv).

18(iv) The number of pupils entering grade 9 for the first time in
19the school year four years before the current school year, plus the
20number of pupils who transferred into the class graduating at the
21end of the current school year between the school year that was
22four school years before the current school year and the date of
23graduation, less the number of pupils who transferred out of the
24school between the school year that was four years before the
25current school year and the date of graduation who were members
26of the class that is graduating at the end of the current school year.

27(v) Six-year graduation rates shall be calculated by taking the
28number of pupils who graduated on time for the current school
29year, which is considered to be five school years after the pupils
30entered grade 9 for the first time, and dividing that number by the
31total calculated in clause (vi).

32(vi) The number of pupils entering grade 9 for the first time in
33the school year five years before the current school year, plus the
34number of pupils who transferred into the class graduating at the
35end of the current school year between the school year that was
36five school years before the current school year and the date of
37graduation, less the number of pupils who transferred out of the
38school between the school year that was five years before the
39current school year and the date of graduation who were members
40of the class that is graduating at the end of the current school year.

P148  1(D) The inclusion of five- and six-year graduation rates for
2pupils in secondary schools shall meet the following requirements:

3(i) Schools shall be granted one-half the credit in their API
4scores for graduating pupils in five years that they are granted for
5graduating pupils in four years.

6(ii) Schools and school districts shall be granted one-quarter the
7credit in their API scores for graduating pupils in six years that
8they are granted for graduating pupils in four years.

9(iii) Notwithstanding clauses (i) and (ii), schools and school
10districts shall be granted full credit in their API scores for
11graduating in five or six years a pupil with disabilities who
12graduates in accordance with his or her individualized education
13program.

14(E) The pupil data collected for the API that comes from the
15achievement test administered pursuant to Section 60640 and the
16high school exit examination administered pursuant to Section
1760851, when fully implemented, shall be disaggregated by special
18education status, English learners, socioeconomic status, gender,
19and ethnic group. Only the test scores of pupils who were counted
20as part of the enrollment in the annual data collection of the
21California Basic Educational Data System for the current fiscal
22year and who were continuously enrolled during that year may be
23included in the test result reports in the API score of the school.

24(F) (i) Commencing with the baseline API calculation in 2016,
25and for each year thereafter, results of the achievement test and
26other tests specified in subdivision (b) shall constitute no more
27than 60 percent of the value of the index for secondary schools.

28(ii)  In addition to the elements required by this paragraph, the
29Superintendent, with approval of the state board, may incorporate
30into the index for secondary schools valid, reliable, and stable
31measures of pupil preparedness for postsecondary education and
32career.

33(G) Results of the achievement test and other tests specified in
34subdivision (b) shall constitute at least 60 percent of the value of
35the index for primary schools and middle schools.

36(H) It is the intent of the Legislature that the state’s system of
37public school accountability be more closely aligned with both the
38public’s expectations for public education and the workforce needs
39of the state’s economy. It is therefore necessary that the
40accountability system evolve beyond its narrow focus on pupil test
P149  1scores to encompass other valuable information about school
2performance, including, but not limited to, pupil preparedness for
3college and career, as well as the high school graduation rates
4already required by law.

5(I) The Superintendent shall annually determine the accuracy
6of the graduation rate data. Notwithstanding any other law,
7graduation rates for pupils in dropout recovery high schools shall
8not be included in the API. For purposes of this subparagraph,
9“dropout recovery high school” means a high school in which 50
10percent or more of its pupils have been designated as dropouts
11pursuant to the exit/withdrawal codes developed by the department
12or left a school and were not otherwise enrolled in a school for a
13period of at least 180 days.

14(J) To complement the API, the Superintendent, with the
15approval of the state board, may develop and implement a program
16of school quality review that features locally convened panels to
17visit schools, observe teachers, interview pupils, and examine pupil
18work, if an appropriation for this purpose is made in the annual
19Budget Act.

20(K) The Superintendent shall annually provide to local
21educational agencies and the public a transparent and
22understandable explanation of the individual components of the
23API and their relative values within the API.

24(L) An additional element chosen by the Superintendent and
25the state board for inclusion in the API pursuant to this paragraph
26shall not be incorporated into the API until at least one full school
27year after the state board’s decision to include the element into the
28API.

29(b) Pupil scores from the following tests, when available and
30when found to be valid and reliable for this purpose, shall be
31incorporated into the API:

32(1) The standards-based achievement tests provided for in
33Section 60642.5.

34(2) The high school exit examination.

35(c) Based on the API, the Superintendent shall develop, and the
36state board shall adopt, expected annual percentage growth targets
37for all schools based on their API baseline score from the previous
38year. Schools are expected to meet these growth targets through
39effective allocation of available resources. For schools below the
40statewide API performance target adopted by the state board
P150  1pursuant to subdivision (d), the minimum annual percentage growth
2target shall be 5 percent of the difference between the actual API
3score of a school and the statewide API performance target, or one
4API point, whichever is greater. Schools at or above the statewide
5API performance target shall have, as their growth target,
6maintenance of their API score above the statewide API
7performance target. However, the state board may set differential
8growth targets based on grade level of instruction and may set
9higher growth targets for the lowest performing schools because
10they have the greatest room for improvement. To meet its growth
11target, a school shall demonstrate that the annual growth in its API
12is equal to or more than its schoolwide annual percentage growth
13target and that all numerically significant pupil subgroups, as
14defined in subdivision (a), are making comparable improvement.

15(d) Upon adoption of state performance standards by the state
16board, the Superintendent shall recommend, and the state board
17shall adopt, a statewide API performance target that includes
18consideration of performance standards and represents the
19proficiency level required to meet the state performance target.

20(e) (1) A school or school district with 11 to 99 pupils with
21valid test scores shall receive an API score with an asterisk that
22indicates less statistical certainty than API scores based on 100 or
23more test scores.

24(2) A school or school district annually shall receive an API
25score, unless the Superintendent determines that an API score
26would be an invalid measure of the performance of the school or
27school district for one or more of the following reasons:

28(A) Irregularities in testing procedures occurred.

29(B) The data used to calculate the API score of the school or
30school district are not representative of the pupil population at the
31school or school district.

32(C) Significant demographic changes in the pupil population
33render year-to-year comparisons of pupil performance invalid.

34(D) The department discovers or receives information indicating
35that the integrity of the API score has been compromised.

36(E) Insufficient pupil participation in the assessments included
37in the API.

38(3) If a school or school district has fewer than 100 pupils with
39valid test scores, the calculation of the API or adequate yearly
40progress pursuant to the federal No Child Left Behind Act of 2001
P151  1(20 U.S.C. Sec. 6301 et seq.) and federal regulations may be
2calculated over more than one annual administration of the tests
3administered pursuant to Section 60640 and the high school exit
4examination administered pursuant to Section 60851, consistent
5with regulations adopted by the state board.

6(f) Only schools with 100 or more test scores contributing to
7the API may be included in the API rankings.

8(g) The Superintendent, with the approval of the state board,
9shall develop an alternative accountability system for schools under
10the jurisdiction of a county board of education or a county
11superintendent of schools, community day schools, nonpublic,
12nonsectarian schools pursuant to Section 56366, and alternative
13schools serving high-risk pupils, including continuation high
14schools and opportunity schools. Schools in the alternative
15accountability system may receive an API score, but shall not be
16included in the API rankings.

17(h) For purposes of this section, county offices of education
18shall be considered school districts.

end delete
begin delete19

SEC. 96.  

Section 52052.1 of the Education Code is amended
20to read:

21

52052.1.  

(a) Beginning July 1, 2011, in addition to the test
22scores specified in subparagraph (B) of paragraph (4) of subdivision
23(a) of Section 52052, the Academic Performance Index (API) for
24a school or school district shall do all of the following:

25(1) Include the test scores and other accountability data of
26enrolled pupils who were referred by the school or school district
27of residence to an alternative education program, including
28community, community day, and continuation high schools and
29independent study, and be calculated by assigning all accountability
30data on pupils in alternative education programs, including
31community, community day, and continuation high schools and
32independent study, to the school and school district of residence
33to ensure that placement decisions are in the best interests of
34affected pupils. If a pupil is referred to an alternative education
35program by a juvenile court judge or other correctional or judicial
36official, or if the pupil is expelled pursuant to subdivision (a) or
37(c) of Section 48915, the test scores of that pupil shall remain with
38the alternative education program and with the school district or
39county office of education serving that pupil. This section does
40not prohibit the alternative education program from counting the
P152  1test scores of those pupils served in their alternative education
2program. It is the intent of the Legislature that these alternative
3education programs remain accountable to the pupils they serve.

4(2) Exclude the test scores or other data of those pupils exempt
5pursuant to federal statute or federal regulation.

6(3) Include school and school district dropout rates for pupils
7who drop out of school while enrolled in grade 8 or 9. If reliable
8data is not available by July 1, 2011, the Superintendent, on or
9before that date, shall report to the Legislature the reasons for the
10delay and date he or she anticipates the specified dropout rates
11will be included in the API.

12(b) The advisory committee established pursuant to Section
1352052.5 shall recommend to the Superintendent and the state board
14all of the following:

15(1) The length of time for which the accountability data on
16pupils in alternative education programs shall be assigned to the
17school and school district of residence pursuant to paragraph (1)
18of subdivision (a).

19(2) Whether it is appropriate to assign accountability data to the
20school or the school district, pursuant to paragraph (1) of
21subdivision (a), if the pupil never attended the school of residence
22or has been absent for more than one year from the school district
23of residence due to placement in another school or school district
24or out of state.

25(c) Before January 30, 2014, the advisory committee established
26pursuant to Section 52052.5 shall review, and recommend to the
27Superintendent and the state board any changes proposed for, the
28assignment of accountability data to the school district of residence
29pursuant to paragraph (1) of subdivision (a) based on the addition
30of Sections 2574, 2575, 42238.02, and 42238.03, and Article 4.5
31(commencing with Section 52060) by the act adding this
32subdivision.

end delete
begin delete33

SEC. 97.  

Section 52052.2 of the Education Code is repealed.

end delete
begin delete34

SEC. 98.  

Section 52052.5 of the Education Code is amended
35to read:

36

52052.5.  

(a) The Superintendent shall establish a broadly
37representative and diverse advisory committee to advise the
38Superintendent and the state board on all appropriate matters
39relative to the creation of the Academic Performance Index.
40Members of the advisory committee shall serve without
P153  1compensation for terms not to exceed two years. The department
2shall provide staff to the advisory panel.

3(b) By July 1, 2005, the advisory committee established pursuant
4to this section shall make recommendations to the Superintendent
5on the appropriateness and feasibility of a methodology for
6generating a measurement of academic performance by using
7unique pupil identifiers for pupils in kindergarten and any of grades
81 to 12, inclusive, and annual academic achievement growth to
9provide a more accurate measure of a school’s growth over time.
10If appropriate and feasible, the Superintendent, with the approval
11of the state board, shall thereafter implement this measurement of
12academic performance.

13(c) By January 1, 2011, the Superintendent and the state board,
14in consultation with the advisory committee established pursuant
15to subdivision (a), shall make recommendations to the Legislature
16and the Governor on each of the following:

17(1) Approaches to increasing the emphasis of science and
18mathematics in the calculation of the Academic Performance Index
19or any successor measure.

20(2) Methods to incorporate into the Academic Performance
21Index, or into other aspects of the state’s accountability system, a
22measure of the degree to which pupils graduate from high school
23with the skills and knowledge necessary to attain entry-level
24employment in business or industry, as set forth in subdivision (b)
25of Section 51228.

26(3) Methods to incorporate into the Academic Performance
27Index, or into other aspects of the state’s accountability system, a
28measure of the degree to which pupils graduate from high school
29with the skills and knowledge necessary to succeed in
30postsecondary education.

31(d) By July 1, 2013, the Superintendent and the state board, in
32consultation with the advisory committee established pursuant to
33subdivision (a), shall make recommendations to the Legislature
34and the Governor on the establishment of a methodology for
35generating a measurement of group and individual academic
36performance growth by utilizing individual pupil results from a
37longitudinally valid achievement assessment system. These
38recommendations should also address any interactions between
39the Academic Performance Index, or any successor measure, and
40individual test scores from the state’s tests, as well as implications
P154  1for the reauthorization of the state’s assessment system. This
2paragraph shall not be construed to supersede the provisions of
3Chapter 273 of the Statutes of 2009.

end delete
begin delete4

SEC. 99.  

Article 3 (commencing with Section 52053) of
5Chapter 601 of Part 28 of Division 4 of Title 2 of the Education
6Code
is repealed.

end delete
begin delete7

SEC. 100.  

Article 3.5 (commencing with Section 52055.600)
8of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
9Code
is repealed.

end delete
begin delete10

SEC. 101.  

Section 52055.750 of the Education Code is
11amended to read:

12

52055.750.  

(a) A school district or chartering authority that
13receives funding pursuant to this article shall agree to do all of the
14following for each funded school within its jurisdiction:

15(1) Comply with the program requirements of this article and
16require that each funded schoolsite complete and meet the criteria
17of an academic review process that includes the elements of the
18school assistance and intervention team review process described
19in Section 52055.51, as that section read on January 1, 2013.

20(2) Ensure that funded schools meet the requirements of this
21article.

22(3) Ensure that each school administrator in a funded school is
23confirmed to have exemplary qualifications and experience by the
24end of the first full year of funding and in each year of funding
25thereafter. Those qualifications shall include the ability to support
26the success of all pupils by facilitating the development,
27articulation, implementation, and stewardship of a vision of
28learning that is shared and supported by the school community as
29well as the ability to advocate, nurture, and sustain a school culture
30and instructional program that is conducive to pupils learning and
31staff professional growth. The school district or chartering authority
32shall provide for high quality professional development for each
33administrator through leadership training, coaching, and mentoring
34and shall take all reasonable steps to maintain stable school
35leadership in schools that receive funding pursuant to this article.
36To the extent appropriate, the professional development shall be
37similar in quality and rigor to that provided pursuant to the
38Administrator Training Program under Article 4.6 (commencing
39with Section 44510) of Chapter 3 of Part 25.

P155  1(4) Provide all fiscal and evaluation data requested by the
2Superintendent for initial approval, annual reviews, and reports.

3(5) Comply with subdivisions (a) to (c), inclusive, of Section
452055.630, as that section read on January 1, 2013, and in the same
5manner consult with the exclusive representative of classified
6employees.

7(6) Assist eligible schools in developing and carrying out a plan
8to implement the provisions of this article to ensure the school
9district’s plan supports the work of the school.

10(7) Agree to focus on conditions that improve instruction and
11achievement in funded schools.

12(8) Express its full understanding that not meeting annual and
13final program and academic achievement requirements under this
14article will result in the termination of funding.

15(9) Ensure that the funds received on behalf of funded schools
16are expended on that school, except that during the first partial
17year of funding school districts may use funding under this article
18for facilities necessary to meet the class size reduction requirements
19of this article, if all funds are spent on funded schools within the
20school district.

21(10) Use the uniform process recommended by the
22Superintendent pursuant to subdivision (d) of Section 52055.730
23to ensure that the average teaching experience of the classroom
24teachers in funded schools is equal to or greater than the average
25teaching experience of classroom teachers in the school district as
26a whole.

27(b) If not expressly prohibited by federal law, a school district
28or chartering authority on behalf of a funded school is exempt from
29requirements imposed on the use of state categorical or federal
30funds in the consolidated application, except those funds related
31to economic impact aid, if those funds are identified in the revised
32plan of Section 52055.755. Funded schools are exempt from all
33program requirements associated with funds in the consolidated
34application, except requirements regarding parent advisory
35committees, schoolsite councils, and special education. Funds
36provided under the economic aid program shall not be used to
37implement this program.

38(c) Each funded school shall ensure that each teacher in a
39subject-specific classroom or teaching covered subjects participates
40in professional development that is made available by the school
P156  1district or the schoolsite councils, is developed in a collaborative
2process with interested parties, and is articulated in an improvement
3plan. For purposes of this article, professional development
4activities may include collaboration time for teachers to develop
5new instructional lessons or analyze pupil data, mentoring projects
6for new teachers, or extra support for teachers to improve practice.
7At a minimum, appropriate professional development for the site
8shall be part of a coherent plan that combines school activities
9within the school, including, but not limited to, lesson study or
10coteaching, and external learning opportunities that meet all of the
11following criteria:

12(1) Are related to the academic subjects taught.

13(2) Provide time to meet and work with other teachers.

14(3) Support instruction and pupil learning to improve instruction
15in a manner that is consistent with academic content standards.

16(4) Include an average of 40 hours per teacher per year.

17(d) At a minimum, professional development in a self-contained
18classroom shall include content regarding mathematics, science,
19English language arts, reading, and English language development.
20Professional development for teachers teaching subject specific
21courses shall include the specific subject and English language
22development. To the extent appropriate the professional
23development shall be similar in quality and rigor to the training
24provided under the Mathematics and Reading Professional
25Development Program in Article 3 (commencing with Section
2699230) of Chapter 5 of Part 65 of Division 14 of Title 3.

27(e) On or before the end of the first three years of full funding,
28funded schools shall do the following:

29(1) Increase actual pupil attendance, as compared with monthly
30enrollment in the school.

31(2) For secondary schools, increase graduation rates as described
32in Section 52055.640.

end delete
begin delete33

SEC. 102.  

Article 4 (commencing with Section 52056) of
34Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
35Code
is repealed.

end delete
begin delete36

SEC. 103.  

Article 4.5 (commencing with Section 52060) is
37added to Chapter 6.1 of Part 28 of Division 4 of Title 2 of the 38Education Code, to read:

 

P157  1Article 4.5.  Local Control and Accountability Plans
2

 

3

52060.  

(a) On or before July 1, 2014, the governing board of
4each school district shall adopt a local control and accountability
5plan using a template adopted by the state board.

6(b) A local control and accountability plan adopted by a
7governing board of a school district shall be effective for a period
8of three years, and shall be updated on or before July 1 of each
9year.

10(c) A local control and accountability plan adopted by a
11governing board of a school district shall include, for the school
12district and each school within the school district, a description of
13both of the following:

14(1) The annual goals, for all pupils and each subgroup of pupils
15identified pursuant to Section 52052, to be achieved for each of
16the state priorities identified in subdivision (d) and for any
17additional local priorities identified by the governing board of the
18school district. For purposes of this article, a subgroup of pupils
19identified pursuant to Section 52052 shall be a numerically
20significant pupil subgroup as specified in paragraphs (2) and (3)
21of subdivision (a) of Section 52052.

22(2) The specific actions the school district will take during each
23year of the local control and accountability plan to achieve the
24goals identified in paragraph (1), including the enumeration of any
25specific actions necessary for that year to correct any deficiencies
26in regard to the state priorities listed in paragraph (1) of subdivision
27(d).

28(d) All of the following are state priorities:

29(1) The degree to which the teachers of the school district are
30appropriately assigned in accordance with Section 44258.9, and
31fully credentialed in the subject areas, and, for the pupils they are
32teaching, every pupil in the school district has sufficient access to
33the standards-aligned instructional materials as determined pursuant
34to Section 60119, and school facilities are maintained in good
35repair as specified in subdivision (d) of Section 17002.

36(2) Implementation of the academic content and performance
37standards adopted by the state board, including how the programs
38and services will enable English learners to access the common
39core academic content standards adopted pursuant to Section
4060605.8 and the English language development standards adopted
P158  1pursuant to Section 60811.3 for purposes of gaining academic
2content knowledge and English language proficiency.

3(3) Parental involvement, including efforts the school district
4makes to seek parent input in making decisions for the school
5district and each individual schoolsite, and including how the
6school district will promote parental participation in programs for
7unduplicated pupils and individuals with exceptional needs.

8(4) Pupil achievement, as measured by all of the following, as
9applicable:

10(A) Statewide assessments administered pursuant to Article 4
11(commencing with Section 60640) of Chapter 5 of Part 33 or any
12subsequent assessment, as certified by the state board.

13(B) The Academic Performance Index, as described in Section
1452052.

15(C) The percentage of pupils who have successfully completed
16courses that satisfy the requirements for entrance to the University
17of California and the California State University, or career technical
18education sequences or clusters of courses that satisfy the
19requirements of subdivision (a) of Section 52302, subdivision (a)
20of Section 52372.5, or paragraph (2) of subdivision (e) of Section
2154692, and align with state board-approved career technical
22education standards and frameworks.

23(D) The percentage of English learner pupils who make progress
24toward English proficiency as measured by the California English
25Language Development Test or any subsequent assessment of
26English proficiency, as certified by the state board.

27(E) The English learner reclassification rate.

28(F) The percentage of pupils who have passed an advanced
29placement examination with a score of 3 or higher.

30(G) The percentage of pupils who participate in, and demonstrate
31college preparedness pursuant to, the Early Assessment Program,
32as described in Chapter 6 (commencing with Section 99300) of
33Part 65 of Division 14 of Title 3, or any subsequent assessment of
34college preparedness.

35(5) Pupil engagement, as measured by all of the following, as
36applicable:

37(A) School attendance rates.

38(B) Chronic absenteeism rates.

39(C) Middle school dropout rates, as described in paragraph (3)
40of subdivision (a) of Section 52052.1.

P159  1(D) High school dropout rates.

2(E) High school graduation rates.

3(6) School climate, as measured by all of the following, as
4applicable:

5(A) Pupil suspension rates.

6(B) Pupil expulsion rates.

7(C) Other local measures, including surveys of pupils, parents,
8and teachers on the sense of safety and school connectedness.

9(7) The extent to which pupils have access to, and are enrolled
10in, a broad course of study that includes all of the subject areas
11described in Section 51210 and subdivisions (a) to (i), inclusive,
12of Section 51220, as applicable, including the programs and
13services developed and provided to unduplicated pupils and
14individuals with exceptional needs, and the program and services
15that are provided to benefit these pupils as a result of the funding
16received pursuant to Section 42238.02, as implemented by Section
1742238.03.

18(8) Pupil outcomes, if available, in the subject areas described
19in Section 51210 and subdivisions (a) to (i), inclusive, of Section
2051220, as applicable.

21(e) For purposes of the descriptions required by subdivision (c),
22a governing board of a school district may consider qualitative
23information, including, but not limited to, findings that result from
24school quality reviews conducted pursuant to subparagraph (J) or
25paragraph (4) of subdivision (a) of Section 52052 or any other
26reviews.

27(f) To the extent practicable, data reported in a local control and
28accountability plan shall be reported in a manner consistent with
29how information is reported on a school accountability report card.

30(g) A governing board of a school district shall consult with
31teachers, principals, administrators, other school personnel, parents,
32and pupils in developing a local control and accountability plan.

33(h) A school district may identify local priorities, goals in regard
34to the local priorities, and the method for measuring the school
35district’s progress toward achieving those goals.

36

52061.  

(a) On or before July 1, 2015, and each year thereafter,
37a school district shall update the local control and accountability
38plan. The annual update shall be developed using a template
39developed pursuant to Section 52064 and shall include all of the
40following:

P160  1(1) A review of any changes in the applicability of the goals
2described in paragraph (1) of subdivision (c) of Section 52060.

3(2) A review of the progress toward the goals included in the
4existing local control and accountability plan, an assessment of
5the effectiveness of the specific actions described in the existing
6local control and accountability plan toward achieving the goals,
7and a description of changes to the specific actions the school
8district will make as a result of the review and assessment.

9(3) A listing and description of the expenditures for the fiscal
10year implementing the specific actions included in the local control
11and accountability plan as a result of the reviews and assessment
12required by paragraphs (1) and (2).

13(4) A listing and description of expenditures for the fiscal year
14that will serve the pupils to whom one or more of the definitions
15in Section 42238.01 apply and pupils redesignated as fluent English
16proficient.

17(b) The expenditures identified in subdivision (a) shall be
18classified using the California School Accounting Manual pursuant
19to Section 41010.

20

52062.  

(a) Before the governing board of a school district
21considers the adoption of a local control and accountability plan
22or an annual update to the local control and accountability plan,
23all of the following shall occur:

24(1) The superintendent of the school district shall present the
25local control and accountability plan or annual update to the local
26control and accountability plan to the parent advisory committee
27established pursuant to Section 52063 for review and comment.
28The superintendent of the school district shall respond, in writing,
29to comments received from the parent advisory committee.

30(2) The superintendent of the school district shall present the
31local control and accountability plan or annual update to the local
32control and accountability plan to the English learner parent
33advisory committee established pursuant to Section 52063, if
34applicable, for review and comment. The superintendent of the
35school district shall respond, in writing, to comments received
36from the English learner parent advisory committee.

37(3) The superintendent of the school district shall notify
38members of the public of the opportunity to submit written
39comments regarding the specific actions and expenditures proposed
40to be included in the local control and accountability plan or annual
P161  1update to the local control and accountability plan, using the most
2efficient method of notification possible. This paragraph shall not
3require a school district to produce printed notices or to send
4notices by mail.

5(4) The superintendent of the school district shall review school
6plans submitted pursuant to Section 64001 for schools within the
7school district and ensure that the specific actions included in the
8local control and accountability plan or annual update to the local
9control and accountability plan are consistent with strategies
10included in the school plans submitted pursuant to Section 64001.

11(b) (1) A governing board of a school district shall hold at least
12one public hearing to solicit the recommendations and comments
13of members of the public regarding the specific actions and
14expenditures proposed to be included in the local control and
15accountability plan or annual update to the local control and
16accountability plan. The agenda for the public hearing shall be
17posted at least 72 hours before the public hearing and shall include
18the location where the local control and accountability plan or
19annual update to the local control and accountability plan will be
20available for public inspection. The public hearing shall be held
21at the same meeting as the public hearing required by paragraph
22(1) of subdivision (a) of Section 42127.

23(2) A governing board of a school district shall adopt a local
24control and accountability plan or annual update to the local control
25and accountability plan in a public meeting. This meeting shall be
26held after, but not on the same day as, the public hearing held
27pursuant to paragraph (1). This meeting shall be the same meeting
28as that during which the governing board of the school district
29adopts a budget pursuant to paragraph (2) of subdivision (a) of
30Section 42127.

31(c) A governing board of a school district may adopt revisions
32to a local control and accountability plan during the period the
33local control and accountability plan is in effect. A governing board
34of a school district may only adopt a revision to a local control
35and accountability plan if it follows the process to adopt a local
36control and accountability plan pursuant to this section and the
37revisions are adopted in a public meeting.

38

52063.  

(a) (1) The governing board of a school district shall
39establish a parent advisory committee to provide advice to the
P162  1governing board of the school district and the superintendent of
2the school district regarding the requirements of this article.

3(2) A parent advisory committee shall include parents or legal
4guardians of pupils to whom one or more of the definitions in
5Section 42238.01 apply.

6(3) This subdivision shall not require the governing board of
7the school district to establish a new parent advisory committee if
8the governing board of the school district already has established
9a parent advisory committee that meets the requirements of this
10subdivision, including any committee established to meet the
11requirements of the federal No Child Left Behind Act of 2001
12(Public Law 107-110) pursuant to Section 1112 of Subpart 1 of
13Part A of Title I of that act.

14(b) (1) The governing board of a school district shall establish
15an English learner parent advisory committee if the enrollment of
16the school district includes at least 15 percent English learners and
17the school district enrolls at least 50 pupils who are English
18learners.

19(2) This subdivision shall not require the governing board of
20the school district to establish a new English learner parent advisory
21committee if the governing board of the school district already has
22established a committee that meets the requirements of this
23subdivision.

24

52064.  

(a) On or before March 31, 2014, the state board shall
25adopt templates for the following purposes:

26(1) For use by school districts to meet the requirements of
27Sections 52060 to 52063, inclusive.

28(2) For use by county superintendents of schools to meet the
29requirements of Sections 52066 to 52069, inclusive.

30(3) For use by charter schools to meet the requirements of
31Section 47606.5.

32(b) The templates developed by the state board shall allow a
33school district, county superintendent of schools, or charter school
34to complete a single local control and accountability plan to meet
35the requirements of this article and the requirements of the federal
36No Child Left Behind Act of 2001 related to local educational
37agency plans pursuant to Section 1112 of Subpart 1 of Part A of
38Title I of Public Law 107-110. The state board shall also take steps
39to minimize duplication of effort at the local level to the greatest
40extent possible.

P163  1(c) If possible, the templates identified in paragraph (2) of
2subdivision (a) for use by county superintendents of schools shall
3allow a county superintendent of schools to develop a single local
4control and accountability plan that would also satisfy the
5requirements of Section 48926.

6(d) The state board shall adopt the template pursuant to the
7requirements of the Administrative Procedure Act (Chapter 3.5
8(commencing with Section 11340) of Part 1 of Division 3 of Title
92 of the Government Code). The state board may adopt emergency
10regulations for purposes of implementing this section.

11(e) Revisions to a template or evaluation rubric shall be approved
12by the state board by January 31 before the fiscal year during which
13the template or evaluation rubric is to be used by a school district,
14county superintendent of schools, or charter school.

15(f) The adoption of a template or evaluation rubric by the state
16board shall not create a requirement for a governing board of a
17school district, a county board of education, or a governing body
18of a charter school to submit a local control and accountability
19plan to the state board, unless otherwise required by federal law.
20The Superintendent shall not require a local control and
21accountability plan to be submitted by a governing board of a
22school district or the governing body of a charter school to the
23state board. The state board may adopt a template or evaluation
24rubric that would authorize a school district or a charter school to
25submit to the state board only the sections of the local control and
26accountability plan required by federal law.

27

52064.5.  

(a) On or before October 1, 2015, the state board
28shall adopt evaluation rubrics for all of the following purposes:

29(1) To assist a school district, county office of education, or
30charter school in evaluating its strengths, weaknesses, and areas
31that require improvement.

32(2) To assist a county superintendent of schools in identifying
33school districts and charter schools in need of technical assistance
34pursuant to Section 52071 or 47607.3, as applicable, and the
35specific priorities upon which the technical assistance should be
36focused.

37(3) To assist the Superintendent in identifying school districts
38for which intervention pursuant to Section 52072 is warranted.

39(b) The evaluation rubrics shall reflect a holistic,
40multidimensional assessment of school district and individual
P164  1schoolsite performance and shall include all of the state priorities
2described in subdivision (d) of Section 52060.

3(c) As part of the evaluation rubrics, the state board shall adopt
4standards for school district and individual schoolsite performance
5and expectation for improvement in regard to each of the state
6priorities described in subdivision (d) of Section 52060.

7

52065.  

(a) The superintendent of a school district shall post
8on the Internet Web site of the school district any local control and
9accountability plan approved by the governing board of the school
10district, and any updates or revisions to a local control and
11accountability plan approved by the governing board of the school
12district.

13(b) A county superintendent of schools shall do all of the
14following:

15(1) Post on the Internet Web site of the county office of
16education any local control and accountability plan approved by
17the county board of education, and any updates or revisions to a
18local control and accountability plan approved by the county board
19of education.

20(2) Post all local control and accountability plans submitted by
21school districts, or links to those plans, on the Internet Web site
22of the county office of education.

23(3) Transmit or otherwise make available to the Superintendent
24all local control and accountability plans submitted to the county
25superintendent of schools by school districts and the local control
26and accountability plan approved by the county board of education.

27(c) The Superintendent shall post links to all local control and
28accountability plans approved by the governing boards of school
29districts and county boards of education on the Internet Web site
30of the department.

31

52066.  

(a) On or before July 1, 2014, each county
32superintendent of schools shall develop, and present to the county
33board of education for adoption, a local control and accountability
34plan using a template adopted by the state board.

35(b) A local control and accountability plan adopted by a county
36board of education shall be effective for a period of three years,
37and shall be updated on or before July 1 of each year.

38(c) A local control and accountability plan adopted by a county
39board of education shall include, for each school or program
P165  1operated by the county superintendent of schools, a description of
2both of the following:

3(1) The annual goals, for all pupils and each subgroup of pupils
4identified pursuant to Section 52052, to be achieved for each of
5the state priorities identified in subdivision (d), as applicable to
6the pupils served, and for any additional local priorities identified
7by the county board of education.

8(2) The specific actions the county superintendent of schools
9will take during each year of the local control and accountability
10plan to achieve the goals identified in paragraph (1), including the
11enumeration of any specific actions necessary for that year to
12correct any deficiencies in regard to the state priorities listed in
13paragraph (1) of subdivision (d).

14(d) All of the following are state priorities:

15(1) The degree to which the teachers in the schools or programs
16operated by the county superintendent of schools are appropriately
17assigned in accordance with Section 44258.9 and fully credentialed
18in the subject areas, and, for the pupils they are teaching, every
19pupil in the schools or programs operated by the county
20superintendent of schools has sufficient access to the
21standards-aligned instructional materials as determined pursuant
22to Section 60119, and school facilities are maintained in good
23repair as specified in subdivision (d) of Section 17002.

24(2) Implementation of the academic content and performance
25standards adopted by the state board, including how the programs
26and services will enable English learners to access the common
27core academic content standards adopted pursuant to Section
2860605.8 and the English language development standards adopted
29pursuant to Section 60811.3 for purposes of gaining academic
30content knowledge and English language proficiency.

31(3) Parental involvement, including efforts the county
32superintendent of schools makes to seek parent input in making
33decisions for each individual schoolsite and program operated by
34a county superintendent of schools, and including how the county
35superintendent of schools will promote parental participation in
36programs for unduplicated pupils and individuals with exceptional
37needs.

38(4) Pupil achievement, as measured by all of the following, as
39applicable:

P166  1(A) Statewide assessments administered pursuant to Article 4
2(commencing with Section 60640) of Chapter 5 of Part 33 or any
3subsequent assessment, as certified by the state board.

4(B) The Academic Performance Index, as described in Section
552052.

6(C) The percentage of pupils who have successfully completed
7courses that satisfy the requirements for entrance to the University
8of California and the California State University, or career technical
9education sequences or clusters of courses that satisfy the
10requirements of subdivision (a) of Section 52302, subdivision (a)
11of Section 52372.5, or paragraph (2) of subdivision (e) of Section
1254692, and align with state board-approved career technical
13education standards and frameworks.

14(D) The percentage of English learner pupils who make progress
15toward English proficiency as measured by the California English
16Language Development Test or any subsequent assessment of
17English proficiency, as certified by the state board.

18(E) The English learner reclassification rate.

19(F) The percentage of pupils who have passed an advanced
20placement examination with a score of 3 or higher.

21(G) The percentage of pupils who participate in, and demonstrate
22college preparedness pursuant to, the Early Assessment Program,
23as described in Chapter 6 (commencing with Section 99300) of
24Part 65 of Division 14 of Title 3, or any subsequent assessment of
25college preparedness.

26(5) Pupil engagement, as measured by all of the following, as
27applicable:

28(A) School attendance rates.

29(B) Chronic absenteeism rates.

30(C) Middle school dropout rates, as described in paragraph (3)
31of subdivision (a) of Section 52052.1.

32(D) High school dropout rates.

33(E) High school graduation rates.

34(6) School climate, as measured by all of the following, as
35applicable:

36(A) Pupil suspension rates.

37(B) Pupil expulsion rates.

38(C) Other local measures, including surveys of pupils, parents,
39and teachers on the sense of safety and school connectedness.

P167  1(7) The extent to which pupils have access to, and are enrolled
2in, a broad course of study that includes all of the subject areas
3described in Section 51210 and subdivisions (a) to (i), inclusive,
4of Section 51220, as applicable, including the programs and
5services developed and provided to unduplicated pupils and
6individuals with exceptional needs, and the program and services
7that are provided to benefit these pupils as a result of the funding
8received pursuant to Section 42238.02, as implemented by Section
942238.03.

10(8) Pupil outcomes, if available, in the subject areas described
11in Section 51210 and subdivisions (a) to (i), inclusive, of Section
1251220, as applicable.

13(9) How the county superintendent of schools will coordinate
14instruction of expelled pupils pursuant to Section 48926.

15(10) How the county superintendent of schools will coordinate
16services for foster children, including, but not limited to, all of the
17following:

18(A) Working with the county child welfare agency to minimize
19changes in school placement.

20(B) Providing education-related information to the county child
21welfare agency to assist the county child welfare agency in the
22delivery of services to foster children, including, but not limited
23to, educational status and progress information that is required to
24be included in court reports.

25(C) Responding to requests from the juvenile court for
26information and working with the juvenile court to ensure the
27delivery and coordination of necessary educational services.

28(D) Establishing a mechanism for the efficient expeditious
29transfer of health and education records and the health and
30education passport.

31(e) For purposes of the descriptions required by subdivision (c),
32a county board of education may consider qualitative information,
33including, but not limited to, findings that result from school quality
34reviews conducted pursuant to subparagraph (J) or paragraph (4)
35of subdivision (a) of Section 52052 or any other reviews.

36(f) To the extent practicable, data reported in a local control and
37accountability plan shall be reported in a manner consistent with
38how information is reported on a school accountability report card.

P168  1(g) The county superintendent of schools shall consult with
2teachers, principals, administrators, other school personnel, parents,
3and pupils in developing a local control and accountability plan.

4(h) A county board of education may identify local priorities,
5goals in regard to the local priorities, and the method for measuring
6the county office of education’s progress toward achieving those
7goals.

8

52067.  

(a) On or before July 1, 2015, and each year thereafter,
9a county board of education shall update the local control and
10accountability plan. The annual update shall be developed using
11a template developed pursuant to Section 52064 and shall include
12all of the following:

13(1) A review of any changes in the applicability of the goals
14described in paragraph (1) of subdivision (c) of Section 52066.

15(2) A review of the progress toward the goals included in the
16existing local control and accountability plan, an assessment of
17the effectiveness of the specific actions described in the existing
18local control and accountability plan toward achieving the goals,
19and a description of changes to the specific actions the county
20office of education will make as a result of the review and
21assessment.

22(3) A listing and description of the expenditures for the fiscal
23year implementing the specific actions included in the local control
24and accountability plan as a result of the reviews and assessment
25required by paragraphs (1) and (2).

26(4) A listing and description of expenditures for the fiscal year
27that will serve the pupils to whom one or more of the definitions
28in Section 42238.01 apply and pupils redesignated as fluent English
29proficient.

30(b) The expenditures identified in subdivision (a) shall be
31classified using the California School Accounting Manual pursuant
32to Section 41010.

33

52068.  

(a) Before the county board of education considers the
34adoption of a local control and accountability plan or an annual
35update to the local control and accountability plan, all of the
36following shall occur:

37(1) The county superintendent of schools shall present the local
38control and accountability plan or annual update to the local control
39and accountability plan to a parent advisory committee established
40pursuant to Section 52069 for review and comment. The county
P169  1superintendent of schools shall respond, in writing, to comments
2received from the parent advisory committee.

3(2) The county superintendent of schools shall present the local
4control and accountability plan or annual update to the local control
5and accountability plan to the English learner parent advisory
6committee established pursuant to Section 52069, if applicable,
7for review and comment. The county superintendent of schools
8shall respond, in writing, to comments received from the English
9learner parent advisory committee.

10(3) The county superintendent of schools shall notify members
11of the public of the opportunity to submit written comments
12regarding the specific actions and expenditures proposed to be
13included in the local control and accountability plan or annual
14update to the local control and accountability plan, using the most
15efficient method of notification possible. This paragraph shall not
16require a county superintendent of schools to produce printed
17notices or to send notices by mail.

18(4) The county superintendent of schools shall review school
19plans submitted pursuant to Section 64001 for schools operated
20by the county superintendent of schools and ensure that the specific
21actions included in the local control and accountability plan or
22annual update to the local control and accountability plan are
23consistent with strategies included in the school plans submitted
24pursuant to Section 64001.

25(b) (1) The county board of education shall hold at least one
26public hearing to solicit the recommendations and comments of
27members of the public regarding the specific actions and
28expenditures proposed to be included in the local control and
29accountability plan or annual update to the local control and
30accountability plan. The agenda for the public hearing shall be
31posted at least 72 hours before the public hearing and shall include
32the location where the local control and accountability plan or
33annual update to the local control and accountability plan, and any
34comments received pursuant to paragraphs (1) to (3), inclusive, of
35subdivision (a), will be available for public inspection. The public
36hearing shall be held at the same meeting as the public hearing
37required by Section 1620.

38(2) The county board of education shall adopt a local control
39and accountability plan or annual update to the local control and
40accountability plan in a public meeting. This meeting shall be held
P170  1after, but not on the same day as, the public hearing held pursuant
2to paragraph (1). This meeting shall be the same meeting as that
3during which the county board of education adopts a budget
4pursuant to Section 1622.

5(c) A county superintendent of schools may develop and present
6to a county board of education for adoption revisions to a local
7control and accountability plan during the period the local control
8and accountability plan is in effect. The county board of education
9may only adopt a revision to a local control and accountability
10plan if it follows the process to adopt a local control and
11accountability plan pursuant to this section and the revisions are
12adopted in a public meeting.

13

52069.  

(a) (1) A county superintendent of schools shall
14establish a parent advisory committee to provide advice to the
15county board of education and the county superintendent of schools
16regarding the requirements of this article.

17(2) A parent advisory committee shall include parents or legal
18guardians of pupils to whom one or more of the definitions in
19Section 42238.01 apply.

20(3) This subdivision shall not require the county superintendent
21of schools to establish a new parent advisory committee if the
22county superintendent of schools already has established a parent
23advisory committee that meets the requirements of this subdivision,
24including any committee established to meet the requirements of
25the federal No Child Left Behind Act of 2001 (Public Law
26107-110) pursuant to Section 1112 of Subpart 1 of Part A of Title
27I of that act.

28(b) (1) A county superintendent of schools shall establish an
29English learner parent advisory committee if the enrollment of the
30pupils in the schools and programs operated by the county
31superintendent of schools includes at least 15 percent English
32learners and the schools and programs operated by the county
33superintendent of schools enroll at least 50 pupils who are English
34learners.

35(2) This subdivision shall not require the county superintendent
36of schools to establish a new English learner parent advisory
37committee if the county superintendent of schools already has
38established a committee that meets the requirements of this
39subdivision.

P171  1

52070.  

(a) Not later than five days after adoption of a local
2control and accountability plan or annual update to a local control
3and accountability plan, the governing board of a school district
4shall file the local control and accountability plan or annual update
5to the local control and accountability plan with the county
6superintendent of schools.

7(b) On or before August 15 of each year, the county
8superintendent of schools may seek clarification, in writing, from
9the governing board of a school district about the contents of the
10local control and accountability plan or annual update to the local
11control and accountability plan. Within 15 days the governing
12board of a school district shall respond, in writing, to requests for
13clarification.

14(c) Within 15 days of receiving the response from the governing
15board of the school district, the county superintendent of schools
16may submit recommendations, in writing, for amendments to the
17local control and accountability plan or annual update to the local
18control and accountability plan. The governing board of a school
19district shall consider the recommendations submitted by the county
20superintendent of schools in a public meeting within 15 days of
21receiving the recommendations.

22(d) The county superintendent of schools shall approve a local
23control and accountability plan or annual update to a local control
24and accountability plan on or before October 8, if he or she
25determines both of the following:

26(1) The local control and accountability plan or annual update
27to the local control and accountability plan adheres to the template
28adopted by the state board pursuant to Section 52064.

29(2) The budget for the applicable fiscal year adopted by the
30governing board of the school district includes expenditures
31sufficient to implement the specific actions and strategies included
32in the local control and accountability plan adopted by the
33governing board of the school district, based on the projections of
34the costs included in the plan.

35(e) If a county superintendent of schools has jurisdiction over
36a single school district, the Superintendent shall designate a county
37superintendent of schools of an adjoining county to perform the
38duties specified in this section.

39

52070.5.  

(a) Not later than five days after adoption of a local
40control and accountability plan or annual update to a local control
P172  1and accountability plan, the county board of education shall file
2the local control and accountability plan or annual update to the
3local control and accountability plan with the Superintendent.

4(b) On or before August 15 of each year, the Superintendent
5may seek clarification, in writing, from the county board of
6education about the contents of the local control and accountability
7plan or annual update to the local control and accountability plan.
8Within 15 days the county board of education shall respond, in
9writing, to requests for clarification.

10(c) Within 15 days of receiving the response from the county
11board of education, the Superintendent may submit
12recommendations, in writing, for amendments to the local control
13and accountability plan or annual update to the local control and
14accountability plan. The county board of education shall consider
15the recommendations submitted by the Superintendent in a public
16meeting within 15 days of receiving the recommendations.

17(d) The Superintendent shall approve a local control and
18accountability plan or annual update to a local control and
19accountability plan on or before October 8, if he or she determines
20both of the following:

21(1) The local control and accountability plan or annual update
22to the local control and accountability plan adheres to the template
23adopted by the state board pursuant to Section 52064.

24(2) The budget for the applicable fiscal year adopted by the
25county board of education includes expenditures sufficient to
26implement the specific actions and strategies included in the local
27control and accountability plan adopted by the county board of
28education, based on the projections of the costs included in the
29plan.

30

52071.  

(a) If a county superintendent of schools does not
31approve a local control and accountability plan or annual update
32to the local control and accountability plan approved by a
33governing board of a school district, or if the governing board of
34a school district requests technical assistance, the county
35superintendent of schools shall provide technical assistance,
36including, among other things, any of the following:

37(1) Identification of the school district’s strengths and
38weaknesses in regard to the state priorities described in subdivision
39(d) of Section 52060, communicated in writing to the school
P173  1district. This identification shall include a review of effective,
2evidence-based programs that apply to the school district’s goals.

3(2) Assignment of an academic expert or team of academic
4experts to assist the school district in identifying and implementing
5effective programs that are designed to improve the outcomes for
6all pupil subgroups identified pursuant to Section 52052. The
7county superintendent of schools may also solicit another school
8district within the county to act as a partner to the school district
9in need of technical assistance.

10(3) Request that the Superintendent assign the California
11Collaborative for Educational Excellence to provide advice and
12assistance to the school district.

13(b) Using an evaluation rubric adopted by the state board
14pursuant to Section 52064.5, the county superintendent of schools
15shall provide the technical assistance described in subdivision (a)
16to any school district that fails to improve pupil achievement across
17more than one state priority described in subdivision (d) of Section
1852060 for one or more pupil subgroup identified pursuant to
19Section 52052.

20(c) Technical assistance provided pursuant to this section at the
21request of a school district shall be paid for by the school district
22requesting the assistance.

23

52071.5.  

(a) If the Superintendent does not approve a local
24control and accountability plan or annual update to the local control
25and accountability plan approved by a county board of education,
26or if the county board of education requests technical assistance,
27the Superintendent shall provide technical assistance, including,
28among other things, any of the following:

29(1) Identification of the county board of education’s strengths
30and weaknesses in regard to the state priorities described in
31subdivision (d) of Section 52066, communicated in writing to the
32county board of education. This identification shall include a
33review of effective, evidence-based programs that apply to the
34board’s goals.

35(2) Assignment of an academic expert or team of academic
36experts, or the California Collaborative for Educational Excellence
37established pursuant to Section 52074, to assist the county board
38of education in identifying and implementing effective programs
39that are designed to improve the outcomes for all pupil subgroups
40identified pursuant to Section 52052. The Superintendent may also
P174  1solicit another county office of education to act as a partner to the
2county office of education in need of technical assistance.

3(b) Using an evaluation rubric adopted by the state board
4pursuant to Section 52064.5, the Superintendent shall provide the
5technical assistance described in subdivision (a) to any county
6office of education that fails to improve pupil achievement in
7regard to more than one state priority described in subdivision (d)
8of Section 52066 for one or more pupil subgroups identified
9pursuant to Section 52052.

10(c) Technical assistance provided pursuant to this section at the
11request of a county board of education shall be paid for by the
12county board of education receiving assistance.

13

52072.  

(a) The Superintendent may, with the approval of the
14state board, identify school districts in need of intervention.

15(b) The Superintendent shall only intervene in a school district
16that meets both of the following criteria:

17(1) The school district did not improve the outcomes for three
18or more pupil subgroups identified pursuant to Section 52052 or,
19if the school district has less than three pupil subgroups, all of the
20school district’s pupil subgroups, in regard to more than one state
21or local priority in three out of four consecutive school years.

22(2) The California Collaborative for Educational Excellence
23has provided advice and assistance to the school district pursuant
24to Section 52071 and submits either of the following findings to
25the Superintendent:

26(A) That the school district has failed, or is unable, to implement
27the recommendations of the California Collaborative for
28Educational Excellence.

29(B) That the inadequate performance of the school district, based
30upon an evaluation rubric adopted pursuant to Section 52064.5, is
31either so persistent or acute as to require intervention by the
32Superintendent.

33(c) For school districts identified pursuant to subdivision (a),
34the Superintendent may, with the approval of the state board, do
35one or more of the following:

36(1) Make changes to a local control and accountability plan
37adopted by the governing board of the school district.

38(2) Develop and impose a budget revision, in conjunction with
39revisions to the local control and accountability plan, that the
40Superintendent determines would allow the school district to
P175  1improve the outcomes for all pupil subgroups identified pursuant
2to Section 52052 in regard to state and local priorities.

3(3) Stay or rescind an action, if that action is not required by a
4local collective bargaining agreement, that would prevent the
5school district from improving outcomes for all pupil subgroups
6identified pursuant to Section 52052 in regard to state or local
7priorities.

8(4) Appoint an academic trustee to exercise the powers and
9authority specified in this section on his or her behalf.

10(d) The Superintendent shall notify the county superintendent
11of schools, the county board of education, the superintendent of
12the school district, and the governing board of the school district
13of any action by the state board to direct him or her to exercise
14any of the powers and authorities specified in this section.

15

52072.5.  

(a) The Superintendent may, with the approval of
16the state board, identify county offices of education in need of
17intervention.

18(b) The Superintendent shall only intervene in a county office
19of education that meets both of the following criteria:

20(1) The county office of education did not improve the outcomes
21for three or more pupil subgroups identified pursuant to Section
2252052 or, if the county office of education has less than three pupil
23subgroups, all of the county office of education’s pupil subgroups,
24in regard to more than one state or local priority in three out of
25four consecutive school years.

26(2) The California Collaborative for Educational Excellence
27has provided advice and assistance to the county office of education
28pursuant to Section 52071.5 and submits either of the following
29findings to the Superintendent:

30(A) That the county office of education has failed, or is unable,
31to implement the recommendations of the California Collaborative
32for Educational Excellence.

33(B) That the inadequate performance of the county office of
34education, based upon an evaluation rubric adopted pursuant to
35Section 52064.5, is either so persistent or acute as to require
36intervention by the Superintendent.

37(c) For county offices of education identified pursuant to
38subdivision (a), the Superintendent may, with the approval of the
39state board, do one or more of the following:

P176  1(1) Make changes to a local control and accountability plan
2adopted by the county board of education.

3(2) Develop and impose a budget revision, in conjunction with
4revisions to the local control and accountability plan, that the
5Superintendent determines would allow the county office of
6education to improve the outcomes for all pupil subgroups
7identified pursuant to Section 52052 in regard to state and local
8priorities.

9(3) Stay or rescind an action, if that action is not required by a
10local collective bargaining agreement, that would prevent the
11county office of education from improving outcomes for all pupil
12subgroups identified pursuant to Section 52052 in regard to state
13or local priorities.

14(4) Appoint an academic trustee to exercise the powers and
15authority specified in this section on his or her behalf.

16(d) The Superintendent shall notify the county board of
17education and the county superintendent of schools, in writing, of
18any action by the state board to direct him or her to exercise any
19of the powers and authorities specified in this section.

20

52074.  

(a) The California Collaborative for Educational
21Excellence is hereby established.

22(b) The purpose of the California Collaborative for Educational
23Excellence is to advise and assist school districts, county
24superintendents of schools, and charter schools in achieving the
25goals set forth in a local control and accountability plan adopted
26pursuant to this article.

27(c) The Superintendent shall, with the approval of the state
28board, contract with individuals, local educational agencies, or
29organizations with the expertise, experience, and a record of
30success to carry out the purposes of this article. The areas of
31expertise, experience, and record of success shall include, but are
32not limited to, all of the following:

33(1) State priorities as described in subdivision (d) of Section
3452060.

35(2) Improving the quality of teaching.

36(3) Improving the quality of school district and schoolsite
37leadership.

38(4) Successfully addressing the needs of special pupil
39populations, including, but not limited to, English learners, pupils
P177  1eligible to receive a free or reduced-price meal, pupils in foster
2care, and individuals with exceptional needs.

3(d) The Superintendent may direct the California Collaborative
4 for Educational Excellence to advise and assist a school district,
5county superintendent of schools, or charter school in any of the
6following circumstances:

7(1) If the governing board of a school district, county board of
8education, or governing body or a charter school requests the advice
9and assistance of the California Collaborative for Educational
10Excellence.

11(2) If the county superintendent of schools of the county in
12which the school district or charter school is located determines,
13following the provision of technical assistance pursuant to Section
1452071 or 47607.3 as applicable, that the advice and assistance of
15the California Collaborative for Educational Excellence is
16necessary to help the school district or charter school accomplish
17the goals described in the local control and accountability plan
18adopted pursuant to this article.

19(3) If the Superintendent determines that the advice and
20assistance of the California Collaborative for Educational
21Excellence is necessary to help the school district, county
22superintendent of schools, or charter school accomplish the goals
23set forth in the local control and accountability plan adopted
24pursuant to this article.

25

52075.  

(a) A complaint that a school district, county
26superintendent of schools, or charter school has not complied with
27the requirements of this article or Sections 47606.5 and 47607.3,
28as applicable, may be filed with a school district, county
29superintendent of schools, or charter school pursuant to the
30Uniform Complaint Procedures set forth in Chapter 5.1
31(commencing with Section 4600) of Division 1 of Title 5 of the
32California Code of Regulations.

33(b) A complaint may be filed anonymously if the complaint
34provides evidence or information leading to evidence to support
35an allegation of noncompliance with the requirements of this
36article.

37(c) A complainant not satisfied with the decision of a school
38district, county superintendent of schools, or charter school may
39appeal the decision to the Superintendent and shall receive a written
P178  1appeal decision within 60 days of the Superintendent’s receipt of
2the appeal.

3(d) If a school district, county superintendent of schools, or
4charter school finds merit in a complaint, or the Superintendent
5finds merit in an appeal, the school district, county superintendent
6of schools, or charter school shall provide a remedy to all affected
7pupils, parents, and guardians.

8(e) Information regarding the requirements of this article shall
9be included in the annual notification distributed to pupils, parents
10and guardians, employees, and other interested parties pursuant to
11Section 4622 of Title 5 of the California Code of Regulations or
12any successor regulation.

13(f) School districts, county superintendents of schools, and
14charter schools shall establish local policies and procedures to
15implement the provisions of this section on or before June 30,
162014.

17

52076.  

Notwithstanding any other law, this article shall not be
18subject to waiver by the state board pursuant to Section 33050 or
19by the Superintendent.

20

52077.  

If any activities authorized pursuant to this article and
21implementing regulations are found to be a state reimbursable
22mandate pursuant to Section 6 of Article XIII B of the California
23Constitution, funding provided for school districts and county
24offices of education pursuant to Sections 2574, 2575, 42238.02,
25and 42238.03 shall be used to directly offset any mandated costs.

end delete
begin delete26

SEC. 104.  

Section 56365 of the Education Code is amended
27to read:

28

56365.  

(a) Services provided by nonpublic, nonsectarian
29schools, as defined pursuant to Section 56034, and nonpublic,
30nonsectarian agencies, as defined pursuant to Section 56035, shall
31be made available. These services shall be provided pursuant to
32Section 56366, and in accordance with Section 300.146 of Title
3334 of the Code of Federal Regulations, under contract with the
34local educational agency to provide the appropriate special
35educational facilities, special education, or designated instruction
36and services required by the individual with exceptional needs if
37no appropriate public education program is available.

38(b) Pupils enrolled in nonpublic, nonsectarian schools and
39agencies under this section shall be deemed to be enrolled in public
40schools for all purposes of Chapter 4 (commencing with Section
P179  141600) of Part 24 of Division 3 and Section 42238.02. The local
2educational agency shall be eligible to receive allowances under
3Articles 3 (commencing with Section 56836.165) and 4
4(commencing with Section 56836.20) of Chapter 7.2 for services
5that are provided to individuals with exceptional needs pursuant
6to the contract.

7(c) If the state participates in the federal program of assistance
8for state-operated or state-supported programs for individuals with
9exceptional needs (Public Law 89-313, Sec. 6), pupils enrolled in
10nonpublic, nonsectarian schools shall be deemed to be enrolled in
11state-supported institutions for all purposes of that program and
12shall be eligible to receive allowances under Chapter 7.2
13(commencing with Section 56836) for supplemental services
14provided to individuals with exceptional needs pursuant to a
15contract with a local educational agency. In order to participate in
16the federal program, the state shall find that participation will not
17result in any additional expenditures from the General Fund.

18(d) The local educational agency shall pay to the nonpublic,
19nonsectarian school or agency the full amount of the tuition for
20individuals with exceptional needs that are enrolled in programs
21provided by the nonpublic, nonsectarian school pursuant to the
22contract.

23(e) Before contracting with a nonpublic, nonsectarian school or
24agency outside of this state, the local educational agency shall
25document its efforts to utilize public schools or to locate an
26appropriate nonpublic, nonsectarian school or agency program, or
27both, within the state.

28(f) If a local educational agency places a pupil with a nonpublic,
29nonsectarian school or agency outside of this state, the pupil’s
30individualized education program team shall submit a report to
31the Superintendent within 15 days of the placement decision. The
32report shall include information about the special education and
33related services provided by the out-of-state program placement
34and the costs of the special education and related services provided,
35and shall indicate the efforts of the local educational agency to
36locate an appropriate public school or nonpublic, nonsectarian
37school or agency, or a combination thereof, within the state. The
38Superintendent shall submit a report to the board on all placements
39made outside of this state.

P180  1(g) If a local educational agency decides to place a pupil with
2a nonpublic, nonsectarian school or agency outside of this state,
3that local educational agency shall indicate the anticipated date
4for the return of the pupil to a public or nonpublic, nonsectarian
5school or agency placement, or a combination thereof, located in
6the state and shall document efforts during the previous placement
7year to return the pupil.

8(h) In addition to meeting the requirements of Section 56366.1,
9a nonpublic, nonsectarian school or agency that operates a program
10outside of this state shall be certified or licensed by that state to
11provide, respectively, special education and related services and
12designated instruction and related services to pupils under the
13federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
141400 et seq.).

15(i) A nonpublic, nonsectarian school or agency that is located
16outside of this state is eligible for certification pursuant to Section
1756366.1 only if a pupil is enrolled in a program operated by that
18school or agency pursuant to the recommendation of an
19individualized education program team in California, and if that
20pupil’s parents or guardians reside in California.

21(j) In accordance with Section 300.147(b) and (c) of Title 34 of
22the Code of Federal Regulations, the department shall disseminate
23copies of applicable standards to each nonpublic, nonsectarian
24school and nonpublic, nonsectarian agency to which a local
25educational agency has referred or placed an individual with
26exceptional needs and shall provide an opportunity for those
27nonpublic, nonsectarian schools and nonpublic, nonsectarian
28agencies to participate in the development and revision of state
29standards that apply to those entities.

end delete
begin delete30

SEC. 105.  

Section 56366.1 of the Education Code is amended
31to read:

32

56366.1.  

(a) A nonpublic, nonsectarian school or agency that
33seeks certification shall file an application with the Superintendent
34on forms provided by the department and include the following
35information on the application:

36(1) A description of the special education and designated
37instruction and services provided to individuals with exceptional
38needs if the application is for nonpublic, nonsectarian school
39certification.

P181  1(2) A description of the designated instruction and services
2provided to individuals with exceptional needs if the application
3is for nonpublic, nonsectarian agency certification.

4(3) A list of appropriately qualified staff, a description of the
5credential, license, or registration that qualifies each staff member
6rendering special education or designated instruction and services
7to do so, and copies of their credentials, licenses, or certificates of
8registration with the appropriate state or national organization that
9has established standards for the service rendered.

10(4) An annual operating budget.

11(5) Affidavits and assurances necessary to comply with all
12applicable federal, state, and local laws and regulations that include
13criminal record summaries required of all nonpublic, nonsectarian
14school or agency personnel having contact with minor children
15under Section 44237.

16(b) (1) The applicant shall provide the special education local
17plan area in which the applicant is located with the written
18notification of its intent to seek certification or renewal of its
19certification. The applicant shall submit on a form, developed by
20the department, a signed verification by local educational agency
21representatives that they have been notified of the intent to certify
22or renew certification. The verification shall include a statement
23that representatives of the local educational agency for the area in
24which the applicant is located have had the opportunity to review
25the application at least 60 calendar days prior to submission of an
26initial application to the Superintendent, or at least 30 calendar
27days prior to submission of a renewal application to the
28Superintendent. The signed verification shall provide assurances
29that local educational agency representatives have had the
30opportunity to provide input on all required components of the
31application.

32(2) If the applicant has not received a response from the local
33educational agency 60 calendar days from the date of the return
34receipt for initial applications or 30 calendar days from the date
35of the return receipt for renewal applications, the applicant may
36file the application with the Superintendent. A copy of the return
37receipt shall be included with the application as verification of
38notification efforts to the local educational agency.

P182  1(3) The department shall mail renewal application materials to
2certified nonpublic, nonsectarian schools and agencies at least 120
3days before the date their current certification expires.

4(c) If the applicant operates a facility or program on more than
5one site, each site shall be certified.

6(d) If the applicant is part of a larger program or facility on the
7same site, the Superintendent shall consider the effect of the total
8program on the applicant. A copy of the policies and standards for
9the nonpublic, nonsectarian school or agency and the larger
10program shall be available to the Superintendent.

11(e) Before certification, the Superintendent shall conduct an
12onsite review of the facility and program for which the applicant
13seeks certification. The Superintendent may be assisted by
14representatives of the special education local plan area in which
15the applicant is located and a nonpublic, nonsectarian school or
16agency representative who does not have a conflict of interest with
17the applicant. The Superintendent shall conduct an additional onsite
18review of the facility and program within three years of the
19effective date of the certification, unless the Superintendent
20conditionally certifies the school or agency or unless the
21Superintendent receives a formal complaint against the school or
22agency. In the latter two cases, the Superintendent shall conduct
23an onsite review at least annually.

24(f) The Superintendent shall make a determination on an
25application within 120 days of receipt of the application and shall
26certify, conditionally certify, or deny certification to the applicant.
27If the Superintendent fails to take one of these actions within 120
28days, the applicant is automatically granted conditional certification
29for a period terminating on August 31 of the current school year.
30If certification is denied, the Superintendent shall provide reasons
31for the denial. The Superintendent may certify the school or agency
32for a period of not longer than one year.

33(g) Certification becomes effective on the date the nonpublic,
34nonsectarian school or agency meets all the application
35requirements and is approved by the Superintendent. Certification
36may be retroactive if the school or agency met all the requirements
37of this section on the date the retroactive certification is effective.
38Certification expires on December 31 of the terminating year.

39(h) The Superintendent annually shall review the certification
40of each nonpublic, nonsectarian school and agency. For this
P183  1purpose, a certified school or agency annually shall update its
2application between August 1 and October 31, unless the board
3grants a waiver pursuant to Section 56101. The Superintendent
4may conduct an onsite review as part of the annual review.

5(i) (1) The Superintendent shall conduct an investigation of a
6nonpublic, nonsectarian school or agency onsite at any time without
7prior notice if there is substantial reason to believe that there is an
8immediate danger to the health, safety, or welfare of a child. The
9Superintendent shall document the concern and submit it to the
10nonpublic, nonsectarian school or agency at the time of the onsite
11investigation. The Superintendent shall require a written response
12to any noncompliance or deficiency found.

13(2) With respect to a nonpublic, nonsectarian school, the
14Superintendent shall conduct an investigation, which may include
15an unannounced onsite visit, if the Superintendent receives
16evidence of a significant deficiency in the quality of educational
17services provided, a violation of Section 56366.9, or
18noncompliance with the policies expressed by subdivision (b) of
19Section 1501 of the Health and Safety Code by the nonpublic,
20nonsectarian school. The Superintendent shall document the
21complaint and the results of the investigation and shall provide
22copies of the documentation to the complainant, the nonpublic,
23nonsectarian school, and the contracting local educational agency.

24(3) Violations or noncompliance documented pursuant to
25paragraph (1) or (2) shall be reflected in the status of the
26certification of the school, at the discretion of the Superintendent,
27pending an approved plan of correction by the nonpublic,
28nonsectarian school. The department shall retain for a period of
2910 years all violations pertaining to certification of the nonpublic,
30nonsectarian school or agency.

31(j) The Superintendent shall monitor the facilities, the
32educational environment, and the quality of the educational
33program, including the teaching staff, the credentials authorizing
34service, the standards-based core curriculum being employed, and
35the standard-focused instructional materials used, of an existing
36certified nonpublic, nonsectarian school or agency on a three-year
37cycle, as follows:

38(1) The nonpublic, nonsectarian school or agency shall complete
39a self-review in year one.

P184  1(2) The Superintendent shall conduct an onsite review of the
2nonpublic, nonsectarian school or agency in year two.

3(3) The Superintendent shall conduct a followup visit to the
4nonpublic, nonsectarian school or agency in year three.

5(k) (1) Notwithstanding any other law, the Superintendent shall
6not certify a nonpublic, nonsectarian school or agency that proposes
7to initiate or expand services to pupils currently educated in the
8immediate prior fiscal year in a juvenile court program, community
9school pursuant to Section 56150, or other nonspecial education
10program, including independent study or adult school, or both,
11unless the nonpublic, nonsectarian school or agency notifies the
12county superintendent of schools and the special education local
13plan area in which the proposed new or expanded nonpublic,
14nonsectarian school or agency is located of its intent to seek
15certification.

16(2) The notification shall occur no later than the December 1
17before the new fiscal year in which the proposed or expanding
18school or agency intends to initiate services. The notice shall
19include the following:

20(A) The specific date upon which the proposed nonpublic,
21nonsectarian school or agency is to be established.

22(B) The location of the proposed program or facility.

23(C) The number of pupils proposed for services, the number of
24pupils currently served in the juvenile court, community school,
25or other nonspecial education program, the current school services
26including special education and related services provided for these
27pupils, and the specific program of special education and related
28services to be provided under the proposed program.

29(D) The reason for the proposed change in services.

30(E) The number of staff who will provide special education and
31designated instruction and services and hold a current valid
32California credential or license in the service rendered.

33(3) In addition to the requirements in subdivisions (a) to (f),
34inclusive, the Superintendent shall require and consider the
35following in determining whether to certify a nonpublic,
36nonsectarian school or agency as described in this subdivision:

37(A) A complete statement of the information required as part
38of the notice under paragraph (1).

39(B) Documentation of the steps taken in preparation for the
40conversion to a nonpublic, nonsectarian school or agency, including
P185  1information related to changes in the population to be served and
2the services to be provided pursuant to each pupil’s individualized
3education program.

4(4) Notwithstanding any other law, the certification becomes
5effective no earlier than July 1 if the school or agency provided
6the notification required pursuant to paragraph (1).

7(l) (1) Notwithstanding any other law, the Superintendent shall
8not certify or renew the certification of a nonpublic, nonsectarian
9school or agency, unless all of the following conditions are met:

10(A) The entity operating the nonpublic, nonsectarian school or
11agency maintains separate financial records for each entity that it
12operates, with each nonpublic, nonsectarian school or agency
13identified separately from any licensed children’s institution that
14it operates.

15(B) The entity submits an annual budget that identifies the
16projected costs and revenues for each entity and demonstrates that
17the rates to be charged are reasonable to support the operation of
18the entity.

19(C) The entity submits an entitywide annual audit that identifies
20its costs and revenues, by entity, in accordance with generally
21accepted accounting and auditing principles. The audit shall clearly
22document the amount of moneys received and expended on the
23education program provided by the nonpublic, nonsectarian school.

24(D) The relationship between various entities operated by the
25same entity are documented, defining the responsibilities of the
26entities. The documentation shall clearly identify the services to
27be provided as part of each program, for example, the residential
28or medical program, the mental health program, or the educational
29program. The entity shall not seek funding from a public agency
30for a service, either separately or as part of a package of services,
31if the service is funded by another public agency, either separately
32or as part of a package of services.

33(2) For purposes of this section, “licensed children’s institution”
34has the same meaning as it is defined by Section 56155.5.

35(m) The school or agency shall be charged a reasonable fee for
36certification. The Superintendent may adjust the fee annually
37commensurate with the statewide average percentage inflation
38adjustment computed for local control funding formula allocations
39pursuant to Section 42238.02, as implemented by Section 42238.03,
40of unified school districts with greater than 1,500 units of average
P186  1daily attendance if the percentage increase is reflected in the school
2district local control funding formula allocation pursuant to Section
342238.02, as implemented by Section 42238.03, for inflation
4purposes. For purposes of this section, the base fee shall be the
5following:


6

 

(1)1-5 pupils   

$  300

(2)6-10 pupils   

500

(3)11-24 pupils   

1,000

(4)25-75 pupils   

1,500

(5)76 pupils and over   

2,000

P186 12

 

13The school or agency shall pay this fee when it applies for
14certification and when it updates its application for annual renewal
15by the Superintendent. The Superintendent shall use these fees to
16conduct onsite reviews, which may include field experts. No fee
17shall be refunded if the application is withdrawn or is denied by
18the Superintendent.

19(n) (1) Notwithstanding any other law, only those nonpublic,
20nonsectarian schools and agencies that provide special education
21and designated instruction and services utilizing staff who hold a
22certificate, permit, or other document equivalent to that which staff
23in a public school are required to hold in the service rendered are
24eligible to receive certification. Only those nonpublic, nonsectarian
25schools or agencies located outside of California that employ staff
26who hold a current valid credential or license to render special
27education and related services as required by that state shall be
28eligible to be certified.

29(2) The board shall develop regulations to implement this
30subdivision.

31(o) In addition to meeting the standards adopted by the board,
32a nonpublic, nonsectarian school or agency shall provide written
33assurances that it meets all applicable standards relating to fire,
34health, sanitation, and building safety.

end delete
begin delete35

SEC. 106.  

Section 56836.21 of the Education Code is amended
36to read:

37

56836.21.  

(a) The department shall administer an extraordinary
38cost pool to protect special education local plan areas from the
39extraordinary costs associated with single placements as described
40in subdivision (d). Funds shall be appropriated for this purpose in
P187  1the annual Budget Act. Special education local plan areas shall be
2eligible for reimbursement from this pool in accordance with this
3section.

4(b) The threshold amount for claims under this section shall be
5the lesser of the following:

6(1) One percent of the allocation calculated pursuant to Section
756836.08 for the special education local plan area for the current
8fiscal year for any special education local plan area that meets the
9criteria in Section 56212.

10(2) The department shall calculate the average cost of a
11nonpublic, nonsectarian school placement in the 1997-98 fiscal
12year. This amount shall be multiplied by 2.5, then by one plus the
13inflation factor computed pursuant to Section 42238.1, as that
14section read on January 1, 2013, to obtain the alternative threshold
15amount for claims in the 1998-99 fiscal year. In subsequent fiscal
16years, the alternative threshold amount shall be the alternative
17threshold amount for the prior fiscal year multiplied by one plus
18the inflation factor computed pursuant to Section 42238.1, as that
19section read on January 1, 2013, through the 2012-13 fiscal year
20and, commencing with the 2013-14 fiscal year, paragraph (2) of
21subdivision (d) of Section 42238.02.

22(c) Special education local plan areas are eligible to submit
23claims for costs exceeding the threshold amount on forms
24developed by the department. All claims for a fiscal year shall be
25submitted by November 30 following the close of the fiscal year.
26If the total amount claimed by special education local plan areas
27exceeds the amount appropriated, the claims shall be prorated.

28(d) Special education local plan areas are eligible to submit
29claims for the costs of nonpublic, nonsectarian school placements
30in excess of those in existence in the 1997-98 fiscal year and of
31special education and related services for pupils who reside in
32licensed children’s institutions.

end delete
begin delete33

SEC. 107.  

Section 56836.24 of the Education Code is amended
34to read:

35

56836.24.  

Commencing with the 1998-99 fiscal year and each
36year thereafter, the Superintendent shall make the following
37computations to determine the amount of funding for the purposes
38specified in Section 56836.23 to apportion to each special education
39local plan area for the fiscal year in which the computation is made:

P188  1(a) For the 1998-99 fiscal year the superintendent shall make
2the following computations:

3(1) Multiply the total amount of state General Fund money
4allocated to the special education local plan areas in the 1997-98
5fiscal year, for the purposes of Article 9 (commencing with Section
656780) of Chapter 7, as that chapter existed on December 31, 1998,
7by one plus the inflation factor computed pursuant to subdivision
8(b) of Section 42238.1, as that section read on January 1, 2013,
9for the 1998-99 fiscal year.

10(2) Divide the amount calculated in paragraph (1) by the units
11of average daily attendance, exclusive of average daily attendance
12for absences excused pursuant to subdivision (b) of Section 46010
13as that subdivision read on July 1, 1997, reported for the special
14education local plan area for the 1997-98 fiscal year.

15(3) To determine the amount to be allocated to each special
16education local plan area in the 1998-99 fiscal year, the
17superintendent shall multiply the amount computed in paragraph
18(2) by the number of units of average daily attendance reported
19for the special education local plan area for the 1998-99 fiscal
20year, except that a special education local plan area designated as
21a necessary small special education local plan area in accordance
22with Section 56212 and reporting fewer than 15,000 units of
23average daily attendance for the 1998-99 fiscal year shall be
24deemed to have 15,000 units of average daily attendance, and no
25special education local plan area shall receive less than it received
26in the 1997-98 fiscal year.

27(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
28the Superintendent shall make the following calculations:

29(1) Multiply the amount determined in paragraph (2) of
30subdivision (a) by one plus the inflation factor computed pursuant
31to subdivision (b) of Section 42238.1, as that section read on
32January 1, 2013, and commencing with the 2013-14 fiscal year,
33paragraph (2) of subdivision (d) of Section 42238.02 for the current
34fiscal year.

35(2) Multiply the amount determined in paragraph (1) by the
36number of units of average daily attendance reported for the special
37education local plan area for the current fiscal year, except that a
38special education local plan area designated as a necessary small
39special education local plan area in accordance with Section 56212
40and reporting fewer than 15,000 units of average daily attendance
P189  1for the current fiscal year shall be deemed to have 15,000 units of
2average daily attendance.

end delete
begin delete3

SEC. 108.  

Section 7906 of the Government Code is amended
4to read:

5

7906.  

For school districts:

6(a) “ADA” means a school district’s second principal
7apportionment units of average daily attendance as determined
8pursuant to Section 42238.5 of the Education Code, including
9average daily attendance in summer school, regional occupational
10centers and programs, and apprenticeship programs, and excluding
11average daily attendance in adult education programs. All other
12units of average daily attendance including, but not limited to,
13special day classes for special education pupils, shall be included.

14(1) For purposes of this subdivision, the average daily attendance
15of apprenticeship programs shall be determined pursuant to Section
1679149.1 of the Education Code.

17(2) For the 2008-09 fiscal year and each fiscal year thereafter,
18the average daily attendance of public school districts, including
19county superintendents of schools, serving kindergarten and grades
201 to 12, inclusive, or any part thereof, shall include the same
21amount of average daily attendance for classes for supplemental
22instruction and regional occupational centers and programs that
23was used for purposes of this section for the 2007-08 fiscal year.

24(b) “Foundation program level” means:

25(1) For the 1978-79 fiscal year, one thousand two hundred
26forty-one dollars ($1,241) for elementary school districts, one
27thousand three hundred twenty-two dollars ($1,322) for unified
28school districts, and one thousand four hundred twenty-seven
29dollars ($1,427) for high school districts.

30(2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
31inclusive, the levels specified in paragraph (1) increased by the
32lesser of the change in cost of living or California per capita
33personal income for the preceding calendar year.

34(3) For the 1986-87 fiscal year, the levels specified in paragraph
35(2) increased by one hundred eighty dollars ($180) for elementary
36school districts, one hundred ninety-one dollars ($191) for unified
37school districts, and two hundred seven dollars ($207) for high
38school districts.

39(4) For the 1987-88 fiscal year, the levels specified in paragraph
40(3) increased by the lesser of the change in cost of living or
P190  1California per capita personal income for the preceding calendar
2year.

3(5) For the 1988-89 fiscal year and each fiscal year thereafter,
4the foundation program level shall be the appropriations limit of
5the school district for the current fiscal year, plus amounts paid
6for any nonreimbursed court or federal mandates imposed on or
7after November 6, 1979, less the sum of the following:

8(A) Interest earned on the proceeds of taxes during the current
9fiscal year.

10(B) The 50 percent of miscellaneous funds received during the
11current fiscal year that are from the proceeds of taxes.

12(C) Locally voted taxes received during the current fiscal year,
13such as parcel taxes or square foot taxes, unless for voter-approved
14bonded debt.

15(D) Any other local proceeds of taxes received during the current
16fiscal year, other than local taxes which count towards the revenue
17limit, such as excess bond revenues transferred to a district’s
18general fund pursuant to Section 15234 of the Education Code.

19(c) “Proceeds of taxes” shall be deemed to include subventions
20received from the state only if those subventions are for one of the
21following two purposes:

22(1) Basic aid subventions of one hundred twenty dollars ($120)
23per ADA.

24(2) Additional apportionments that, when added to the district’s
25local revenues as defined in Section 42238 of the Education Code,
26do not exceed the foundation program level for that district. In no
27case shall subventions received from the state for reimbursement
28of state mandates in accordance with the provisions of Section 6
29of Article XIII B of the California Constitution or of Section 17561
30or for reimbursement of court or federal mandates imposed on or
31after November 6, 1979, be considered “proceeds of taxes” for
32purposes of this section.

33(d) Proceeds of taxes for a fiscal year shall not include any
34proceeds of taxes within the district’s beginning balance or reserve,
35unless those funds were not appropriated in a prior fiscal year.
36Funds that were appropriated to a reserve or other fund referenced
37in Section 5 of Article XIII B of the California Constitution shall
38be deemed to be appropriated for the purpose of this paragraph.

P191  1(e) The remainder of the state apportionments, including special
2purpose apportionments and categorical aid subventions shall not
3be considered proceeds of taxes for a school district.

4(f) Each school district shall report to the Superintendent of
5Public Instruction and to the Director of Finance at least annually
6its appropriations limit, its appropriations subject to limitation, the
7amount of its state aid apportionments and subventions included
8within the proceeds of taxes of the school district, and amounts
9excluded from its appropriations limit, at a time and in a manner
10prescribed by the Superintendent of Public Instruction and
11approved by the Director of Finance.

12(g) For the 1988-89 fiscal year and each fiscal year thereafter,
13nothing in paragraph (2) of subdivision (c) shall be so construed
14as to require that the amount determined pursuant to subdivision
15(b) be multiplied by the amount determined pursuant to subdivision
16(a) for purposes of determining the amount of state aid included
17in school district “proceeds of taxes” for purposes of this section.

end delete
begin delete18

SEC. 109.  

Section 50286 of the Government Code is amended
19to read:

20

50286.  

(a) If a contract is canceled under Section 50284, the
21owner shall pay a cancellation fee equal to 1212 percent of the
22current fair market value of the property , as determined by the
23county assessor as though the property were free of the contractual
24restriction.

25(b) The cancellation fee shall be paid to the county auditor, at
26the time and in the manner that the county auditor shall prescribe,
27and shall be allocated by the county auditor to each jurisdiction in
28the tax rate area in which the property is located in the same manner
29as the auditor allocates the annual tax increment in that tax rate
30area in that fiscal year.

31(c) Notwithstanding any other law, revenue received by a school
32district pursuant to this section shall be considered property tax
33revenue for the purposes of Section 42238.02 of the Education
34Code, as implemented pursuant to Section 42238.03 of the
35Education Code, and revenue received by a county superintendent
36of schools pursuant to this section shall be considered property tax
37revenue for purposes of Article 4 (commencing with Section 2570)
38of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education
39Code.

end delete
begin deleteP192  1

SEC. 110.  

Section 33492.78 of the Health and Safety Code is
2amended to read:

3

33492.78.  

(a) Section 33607.5 shall not apply to an agency
4created pursuant to this article. For purposes of Sections 42238.02,
584750.5, and 84751 of the Education Code, funds allocated
6pursuant to this section shall be treated as if they were allocated
7pursuant to Section 33607.5.

8(1) This section shall apply to each redevelopment project area
9created pursuant to a redevelopment plan that contains the
10provisions required by Section 33670 and is created pursuant to
11this article. All the amounts calculated pursuant to this section
12shall be calculated after the amount required to be deposited in the
13Low and Moderate Income Housing Fund pursuant to Sections
1433334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
15has been deducted from the total amount of tax-increment funds
16received by the agency in the applicable fiscal year.

17(2) The payments made pursuant to this section shall be in
18addition to any amounts the school district or districts and
19community college district or districts receive pursuant to
20subdivision (a) of Section 33670. The agency shall reduce its
21payments pursuant to this section to an affected school or
22community college district by any amount the agency has paid,
23directly or indirectly, pursuant to Section 33445, 33445.5, or 33446,
24or any provision of law other than this section for, or in connection
25with, a public facility owned or leased by that affected school or
26community college district.

27(3) (A) Of the total amount paid each year pursuant to this
28section to school districts, 43.9 percent shall be considered to be
29property taxes for the purposes of paragraph (1) of subdivision (j)
30of Section 42238.02 of the Education Code, and 56.1 percent shall
31not be considered to be property taxes for the purposes of that
32section, and shall be available to be used for educational facilities.

33(B) Of the total amount paid each year pursuant to this section
34to community college districts, 47.5 percent shall be considered
35to be property taxes for the purposes of Section 84751 of the
36Education Code, and 52.5 percent shall not be considered to be
37property taxes for the purposes of that section, and shall be
38available to be used for educational facilities.

39(C) Of the total amount paid each year pursuant to this section
40to county offices of education, 19 percent shall be considered to
P193  1be property taxes for the purposes of paragraph (1) of subdivision
2(c) of Section 2575 of the Education Code, and 81 percent shall
3not be considered to be property taxes for the purposes of that
4section, and shall be available to be used for educational facilities.

5(D) Of the total amount paid each year pursuant to this section
6to special education, 19 percent shall be considered to be property
7taxes for the purposes of paragraph (1) of subdivision (j) of Section
842238.02 of the Education Code, and 81 percent shall not be
9considered to be property taxes for the purposes of that section,
10and shall be available to be used for educational facilities.

11(4) Local education agencies that use funds received pursuant
12to this section for educational facilities shall spend these funds at
13schools that are any one of the following:

14(A) Within the project area.

15(B) Attended by students from the project area.

16(C) Attended by students generated by projects that are assisted
17directly by the redevelopment agency.

18(D) Determined by a local education agency to be of benefit to
19the project area.

20(b) Commencing with the first fiscal year in which the agency
21receives tax increments, and continuing through the last fiscal year
22in which the agency receives tax increments, a redevelopment
23agency created pursuant to this article shall pay to each affected
24school and community college district an amount equal to the
25product of 25 percent times the percentage share of total property
26taxes collected that are allocated to each affected school or
27community college district, including any amount allocated to each
28district pursuant to Sections 97.03 and 97.035 of the Revenue and
29Taxation Code times the total of the tax increments received by
30the agency after the amount required to be deposited in the Low
31and Moderate Income Housing Fund has been deducted.

32(c) Commencing with the 11th fiscal year in which the agency
33receives tax increments and continuing through the last fiscal year
34in which the agency receives tax increments, a redevelopment
35agency created pursuant to this article shall pay to each affected
36school and community college district, in addition to the amounts
37paid pursuant to subdivision (b), an amount equal to the product
38of 21 percent times the percentage share of total property taxes
39collected that are allocated to each affected school or community
40college district, including any amount allocated to each district
P194  1pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
2Code times the total of the first adjusted tax increments received
3by the agency after the amount required to be deposited in the Low
4and Moderate Income Housing Fund has been deducted. The first
5adjusted tax increments received by the agency shall be calculated
6by applying the tax rate against the amount of assessed value by
7which the current year assessed value exceeds the first adjusted
8base year assessed value. The first adjusted base year assessed
9value is the assessed value of the project area in the 10th fiscal
10year in which the agency receives tax increment.

11(d) Commencing with the 31st fiscal year in which the agency
12receives tax increments and continuing through the last fiscal year
13in which the agency receives tax increments, a redevelopment
14agency shall pay to the affected school and community college
15districts, in addition to the amounts paid pursuant to subdivisions
16(b) and (c), an amount equal to 14 percent times the percentage
17share of total property taxes collected that are allocated to each
18affected school or community college district, including any
19amount allocated to each district pursuant to Sections 97.03 and
2097.035 of the Revenue and Taxation Code times the total of the
21second adjusted tax increments received by the agency after the
22amount required to be deposited in the Low and Moderate Income
23Housing Fund has been deducted. The second adjusted tax
24increments received by the agency shall be calculated by applying
25the tax rate against the amount of assessed value by which the
26current year assessed value exceeds the second adjusted base year
27assessed value. The second adjusted base year assessed value is
28the assessed value of the project area in the 30th fiscal year in
29which the agency receives tax increments.

30(e) (1) The Legislature finds and declares both of the following:

31(A) The payments made pursuant to this section are necessary
32in order to alleviate the financial burden and detriment that affected
33school and community college districts may incur as a result of
34the adoption of a redevelopment plan, and payments made pursuant
35to this section will benefit redevelopment project areas.

36(B) The payments made pursuant to this section are the exclusive
37payments that are required to be made by a redevelopment agency
38to affected school and community college districts during the term
39of a redevelopment plan.

P195  1(2) Notwithstanding any other provision of law, a redevelopment
2agency shall not be required, either directly or indirectly, as a
3measure to mitigate a significant environmental effect or as part
4of any settlement agreement or judgment brought in any action to
5contest the validity of a redevelopment plan pursuant to Section
633501, to make any other payments to affected school or
7community college districts, or to pay for public facilities that will
8be owned or leased to an affected school or community college
9district.

10(f) As used in this section, a “local education agency” includes
11a school district, a community college district, or a county office
12of education.

end delete
begin delete13

SEC. 111.  

Section 33607.5 of the Health and Safety Code is
14amended to read:

15

33607.5.  

(a) (1) This section shall apply to each
16redevelopment project area that, pursuant to a redevelopment plan
17which contains the provisions required by Section 33670, is either:
18(A) adopted on or after January 1, 1994, including later
19amendments to these redevelopment plans; or (B) adopted prior
20to January 1, 1994, but amended, after January 1, 1994, to include
21new territory. For plans amended after January 1, 1994, only the
22tax increments from territory added by the amendment shall be
23subject to this section. All the amounts calculated pursuant to this
24section shall be calculated after the amount required to be deposited
25in the Low and Moderate Income Housing Fund pursuant to
26Sections 33334.2, 33334.3, and 33334.6 has been deducted from
27the total amount of tax increment funds received by the agency in
28the applicable fiscal year.

29(2) The payments made pursuant to this section shall be in
30addition to any amounts the affected taxing entities receive
31pursuant to subdivision (a) of Section 33670. The payments made
32pursuant to this section to the affected taxing entities, including
33the community, shall be allocated among the affected taxing
34entities, including the community if the community elects to receive
35payments, in proportion to the percentage share of property taxes
36each affected taxing entity, including the community, receives
37during the fiscal year the funds are allocated, which percentage
38share shall be determined without regard to any amounts allocated
39to a city, a city and county, or a county pursuant to Sections 97.68
40and 97.70 of the Revenue and Taxation Code, and without regard
P196  1to any allocation reductions to a city, a city and county, a county,
2a special district, or a redevelopment agency pursuant to Sections
397.71, 97.72, and 97.73 of the Revenue and Taxation Code and
4Section 33681.12. The agency shall reduce its payments pursuant
5to this section to an affected taxing entity by any amount the agency
6has paid, directly or indirectly, pursuant to Section 33445, 33445.5,
733445.6, 33446, or any other provision of law other than this
8section for, or in connection with, a public facility owned or leased
9by that affected taxing agency, except: (A)  any amounts the
10agency has paid directly or indirectly pursuant to an agreement
11with a taxing entity adopted prior to January 1, 1994; or (B)  any
12amounts that are unrelated to the specific project area or
13amendment governed by this section. The reduction in a payment
14by an agency to a school district, community college district, or
15county office of education, or for special education, shall be
16subtracted only from the amount that otherwise would be available
17for use by those entities for educational facilities pursuant to
18paragraph (4). If the amount of the reduction exceeds the amount
19that otherwise would have been available for use for educational
20facilities in any one year, the agency shall reduce its payment in
21more than one year.

22(3) If an agency reduces its payment to a school district,
23community college district, or county office of education, or for
24special education, the agency shall do all of the following:

25(A) Determine the amount of the total payment that would have
26been made without the reduction.

27(B) Determine the amount of the total payment without the
28reduction which: (i) would have been considered property taxes;
29and (ii) would have been available to be used for educational
30facilities pursuant to paragraph (4).

31(C) Reduce the amount available to be used for educational
32facilities.

33(D) Send the payment to the school district, community college
34district, or county office of education, or for special education,
35with a statement that the payment is being reduced and including
36the calculation required by this subdivision showing the amount
37to be considered property taxes and the amount, if any, available
38for educational facilities.

39(4) (A) Except as specified in subparagraph (E), of the total
40amount paid each year pursuant to this section to school districts,
P197  143.3 percent shall be considered to be property taxes for the
2purposes of paragraph (1) of subdivision (h) of Section 42238 of
3the Education Code, as it read on January 1, 2013, and paragraph
4(1) of subdivision (j) of Section 42238.02 of the Education Code,
5and 56.7 percent shall not be considered to be property taxes for
6the purposes of that section and shall be available to be used for
7educational facilities, including, in the case of amounts paid during
8the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
9land acquisition, facility construction, reconstruction, remodeling,
10maintenance, or deferred maintenance.

11(B) Except as specified in subparagraph (E), of the total amount
12paid each year pursuant to this section to community college
13districts, 47.5 percent shall be considered to be property taxes for
14the purposes of Section 84751 of the Education Code, and 52.5
15percent shall not be considered to be property taxes for the purposes
16of that section and shall be available to be used for educational
17facilities, including, in the case of amounts paid during the 2011-12
18fiscal year through the 2015-16 fiscal year, inclusive, land
19acquisition, facility construction, reconstruction, remodeling,
20maintenance, or deferred maintenance.

21(C) Except as specified in subparagraph (E), of the total amount
22paid each year pursuant to this section to county offices of
23education, 19 percent shall be considered to be property taxes for
24the purposes of Section 2558 of the Education Code, as it read on
25January 1, 2013, and Section 2575 of the Education Code, and 81
26percent shall not be considered to be property taxes for the purposes
27of that section and shall be available to be used for educational
28facilities, including, in the case of amounts paid during the 2011-12
29fiscal year through the 2015-16 fiscal year, inclusive, land
30acquisition, facility construction, reconstruction, remodeling,
31maintenance, or deferred maintenance.

32(D) Except as specified in subparagraph (E), of the total amount
33paid each year pursuant to this section for special education, 19
34percent shall be considered to be property taxes for the purposes
35of Section 56712 of the Education Code, and 81 percent shall not
36be considered to be property taxes for the purposes of that section
37and shall be available to be used for education facilities, including,
38in the case of amounts paid during the 2011-12 fiscal year through
39the 2015-16 fiscal year, inclusive, land acquisition, facility
P198  1construction, reconstruction, remodeling, maintenance, or deferred
2maintenance.

3(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
4payments to an educational entity, the calculation made by the
5agency pursuant to paragraph (3) shall determine the amount
6considered to be property taxes and the amount available to be
7used for educational facilities in the year the reduction was made.

8(5) Local education agencies that use funds received pursuant
9to this section for school facilities shall spend these funds at schools
10that are: (A) within the project area, (B) attended by students from
11the project area, (C) attended by students generated by projects
12that are assisted directly by the redevelopment agency, or (D)
13determined by the governing board of a local education agency to
14be of benefit to the project area.

15(b) Commencing with the first fiscal year in which the agency
16receives tax increments and continuing through the last fiscal year
17in which the agency receives tax increments, a redevelopment
18agency shall pay to the affected taxing entities, including the
19community if the community elects to receive a payment, an
20amount equal to 25 percent of the tax increments received by the
21agency after the amount required to be deposited in the Low and
22Moderate Income Housing Fund has been deducted. In any fiscal
23year in which the agency receives tax increments, the community
24that has adopted the redevelopment project area may elect to
25receive the amount authorized by this paragraph.

26(c) Commencing with the 11th fiscal year in which the agency
27receives tax increments and continuing through the last fiscal year
28in which the agency receives tax increments, a redevelopment
29agency shall pay to the affected taxing entities, other than the
30community which has adopted the project, in addition to the
31amounts paid pursuant to subdivision (b) and after deducting the
32amount allocated to the Low and Moderate Income Housing Fund,
33an amount equal to 21 percent of the portion of tax increments
34received by the agency, which shall be calculated by applying the
35tax rate against the amount of assessed value by which the current
36year assessed value exceeds the first adjusted base year assessed
37value. The first adjusted base year assessed value is the assessed
38value of the project area in the 10th fiscal year in which the agency
39receives tax increment revenues.

P199  1(d) Commencing with the 31st fiscal year in which the agency
2receives tax increments and continuing through the last fiscal year
3in which the agency receives tax increments, a redevelopment
4agency shall pay to the affected taxing entities, other than the
5community which has adopted the project, in addition to the
6amounts paid pursuant to subdivisions (b) and (c) and after
7deducting the amount allocated to the Low and Moderate Income
8Housing Fund, an amount equal to 14 percent of the portion of tax
9increments received by the agency, which shall be calculated by
10applying the tax rate against the amount of assessed value by which
11the current year assessed value exceeds the second adjusted base
12year assessed value. The second adjusted base year assessed value
13is the assessed value of the project area in the 30th fiscal year in
14which the agency receives tax increments.

15(e) (1) Prior to incurring any loans, bonds, or other
16indebtedness, except loans or advances from the community, the
17agency may subordinate to the loans, bonds, or other indebtedness
18the amount required to be paid to an affected taxing entity by this
19section, provided that the affected taxing entity has approved these
20subordinations pursuant to this subdivision.

21(2) At the time the agency requests an affected taxing entity to
22subordinate the amount to be paid to it, the agency shall provide
23the affected taxing entity with substantial evidence that sufficient
24funds will be available to pay both the debt service and the
25payments required by this section, when due.

26(3) Within 45 days after receipt of the agency’s request, the
27affected taxing entity shall approve or disapprove the request for
28subordination. An affected taxing entity may disapprove a request
29for subordination only if it finds, based upon substantial evidence,
30that the agency will not be able to pay the debt payments and the
31amount required to be paid to the affected taxing entity. If the
32affected taxing entity does not act within 45 days after receipt of
33the agency’s request, the request to subordinate shall be deemed
34approved and shall be final and conclusive.

35(f) (1) The Legislature finds and declares both of the following:

36(A) The payments made pursuant to this section are necessary
37in order to alleviate the financial burden and detriment that affected
38taxing entities may incur as a result of the adoption of a
39redevelopment plan, and payments made pursuant to this section
40will benefit redevelopment project areas.

P200  1(B) The payments made pursuant to this section are the exclusive
2payments that are required to be made by a redevelopment agency
3to affected taxing entities during the term of a redevelopment plan.

4(2) Notwithstanding any other provision of law, a redevelopment
5agency shall not be required, either directly or indirectly, as a
6measure to mitigate a significant environmental effect or as part
7of any settlement agreement or judgment brought in any action to
8contest the validity of a redevelopment plan pursuant to Section
933501, to make any other payments to affected taxing entities, or
10to pay for public facilities that will be owned or leased to an
11affected taxing entity.

12(g) As used in this section, a “local education agency” is a school
13district, a community college district, or a county office of
14education.

end delete
begin delete15

SEC. 112.  

Section 33684 of the Health and Safety Code is
16amended to read:

17

33684.  

(a) (1) This section shall apply to each redevelopment
18project area that, pursuant to a redevelopment plan that contains
19the provisions required by Section 33670, meets any of the
20following:

21(A) Was adopted on or after January 1, 1994, including later
22amendments to these redevelopment plans.

23(B) Was adopted prior to January 1, 1994, but amended after
24January 1, 1994, to include new territory. For plans amended after
25January 1, 1994, only the tax increments from territory added by
26the amendment shall be subject to this section.

27(C) Was adopted prior to January 1, 1994, but amended after
28January 1, 1994, to increase the limitation on the number of dollars
29to be allocated to the agency or that increased, or eliminated,
30pursuant to paragraph (1) of subdivision (e) of Section 33333.6,
31the time limit on the establishing of loans, advances, and
32indebtedness established pursuant to paragraphs (1) and (2) of
33subdivision (a) of Section 33333.6, as those paragraphs read on
34December 31, 2001, or that lengthened the period during which
35the redevelopment plan is effective if the redevelopment plan being
36amended contains the provisions required by subdivision (b) of
37Section 33670.

38(2) This section shall apply to passthrough payments, as required
39by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
40inclusive, fiscal years. For purposes of this section, a passthrough
P201  1payment shall be considered the responsibility of an agency in the
2fiscal year the agency receives the tax increment revenue for which
3the passthrough payment is required.

4(3) For purposes of this section, “local educational agency” is
5a school district, a community college district, or a county office
6of education.

7(b) On or before October 1, 2008, each agency shall submit a
8report to the county auditor and to each affected taxing entity that
9describes each project area, including its location, purpose, date
10established, date or dates amended, and statutory and contractual
11passthrough requirements. The report shall specify, by year, for
12each project area all of the following:

13(1) Gross tax increment received between July 1, 2003, and
14June 30, 2008, that is subject to a passthrough payment pursuant
15to Sections 33607.5 and 33607.7, and accumulated gross tax
16increments through June 30, 2003.

17(2) Total passthrough payments to each taxing entity that the
18agency deferred pursuant to a subordination agreement approved
19by the taxing agency under subdivision (e) of Section 33607.5 and
20the dates these deferred payments will be made.

21(3) Total passthrough payments to each taxing entity that the
22agency was responsible to make between July 1, 2003, and June
2330, 2008, pursuant to Sections 33607.5 and 33607.7, excluding
24payments identified in paragraph (2).

25(4) Total passthrough payments that the agency disbursed to
26each taxing entity between July 1, 2003, and June 30, 2008,
27pursuant to Sections 33607.5 and 33607.7.

28(5) Total sums reported in paragraph (4) for each local
29educational agency that are considered to be property taxes under
30the provisions of paragraph (4) of subdivision (a) of Section
3133607.5 and Section 33607.7.

32(6) Total outstanding payment obligations to each taxing entity
33as of June 30, 2008. This amount shall be calculated by subtracting
34the amounts reported in paragraph (4) from paragraph (3) and
35reporting any positive difference.

36(7) Total outstanding overpayments to each taxing entity as of
37June 30, 2008. This amount shall be calculated by subtracting the
38amounts reported in paragraph (3) from paragraph (4) and reporting
39any positive difference.

P202  1(8) The dates on which the agency made payments identified
2in paragraph (6) or intends to make the payments identified in
3paragraph (6).

4(9) A revised estimate of the agency’s total outstanding
5passthrough payment obligation to each taxing agency pursuant
6to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
7(c) and the dates on which the agency intends to make these
8payments.

9(c) On or before October 1, 2009, each agency shall submit a
10report to the county auditor and to each affected taxing entity that
11describes each project area, including its location, purpose, date
12established, date or dates amended, and statutory and contractual
13passthrough requirements. The report shall specify, by year, for
14each project area all of the following:

15(1) Gross tax increment received between July 1, 2008, and
16June 30, 2009, that is subject to a passthrough payment pursuant
17to Sections 33607.5 and 33607.7.

18(2) Total passthrough payments to each taxing entity that the
19agency deferred pursuant to a subordination agreement approved
20by the taxing entity under subdivision (e) of Section 33607.5 and
21the dates these deferred payments will be made.

22(3) Total passthrough payments to each taxing entity that the
23agency was responsible to make between July 1, 2008, and June
2430, 2009, pursuant to Sections 33607.5 and 33607.7, excluding
25payments identified in paragraph (2).

26(4) Total passthrough payments that the agency disbursed to
27each taxing entity between July 1, 2008, and June 30, 2009,
28pursuant to Sections 33607.5 and 33607.7.

29(5) Total sums reported in paragraph (4) for each local
30educational agency that are considered to be property taxes under
31the provisions of paragraph (4) of subdivision (a) of Sections
3233607.5 and 33607.7.

33(6) Total outstanding payment obligations to each taxing entity
34as of June 30, 2009. This amount shall be calculated by subtracting
35the amounts reported in paragraph (4) from paragraph (3) and
36reporting any positive difference.

37(7) Total outstanding overpayments to each taxing entity as of
38June 30, 2009. This amount shall be calculated by subtracting the
39amounts reported in paragraph (3) from paragraph (4) and reporting
40any positive difference.

P203  1(8) The dates on which the agency made payments identified
2in paragraph (6) or intends to make the payments identified in
3paragraph (6).

4(d) If an agency reports pursuant to paragraph (6) of subdivision
5(b) or paragraph (6) of subdivision (c) that it has an outstanding
6passthrough payment obligation to any taxing entity, the agency
7shall submit annual updates to the county auditor on October 1 of
8each year until such time as the county auditor notifies the agency
9in writing that the agency’s outstanding payment obligations have
10been fully satisfied. The report shall contain both of the following:

11(1) A list of payments to each taxing agency and to the
12Educational Revenue Augmentation Fund pursuant to subdivision
13(j) that the agency disbursed after the agency’s last update filed
14pursuant to this subdivision or, if no update has been filed, after
15the agency’s submission of the reports required pursuant to
16subdivisions (b) and (c). The list of payments shall include only
17those payments that address obligations identified pursuant to
18paragraph (6) of subdivision (b) and paragraph (6) of subdivision
19(c). The update shall specify the date on which each payment was
20disbursed.

21(2) A revised estimate of the agency’s total outstanding
22passthrough payment obligation to each taxing agency pursuant
23to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
24(c) and the dates on which the agency intends to make these
25payments.

26(e) The county auditor shall review each agency’s reports
27submitted pursuant to subdivisions (b) and (c) and any other
28relevant information to determine whether the county auditor
29concurs with the information included in the reports.

30(1) If the county auditor concurs with the information included
31in a report, the county auditor shall issue a finding of concurrence
32within 45 days.

33(2) If the county auditor does not concur with the information
34included in a report or considers the report to be incomplete, the
35county auditor shall return the report to the agency within 45 days
36with information identifying the elements of the report with which
37the county auditor does not concur or considers to be incomplete.
38The county auditor shall provide the agency at least 15 days to
39respond to concerns raised by the county auditor regarding the
40information contained in the report. An agency may revise a report
P204  1that has not received a finding of concurrence and resubmit it to
2the county auditor.

3(3) If an agency and county auditor do not agree regarding the
4passthrough requirements of Sections 33607.5 and 33607.7, an
5agency may submit a report pursuant to subdivisions (b) and (c)
6and a statement of dispute identifying the issue needing resolution.

7(4) An agency may amend a report for which the county auditor
8has issued a finding of concurrence and resubmit the report
9pursuant to paragraphs (1), (2), and (3) if any of the following
10apply:

11(A) The county auditor and agency agree that an issue identified
12in the agency’s statement of dispute has been resolved and the
13agency proposes to modify the sections of the report to conform
14with the resolution of the statement of dispute.

15(B) The county auditor and agency agree that the amount of
16gross tax increment or the amount of a passthrough payment to a
17taxing entity included in the report is not accurate.

18(5) The Controller may revoke a finding of concurrence and
19direct the agency to resubmit a report to the county auditor pursuant
20to paragraphs (1), (2), and (3) if the Controller finds significant
21errors in a report.

22(f) On or before December 15, 2008, and annually thereafter
23through 2014, the county auditor shall submit a report to the
24Controller that includes all of the following:

25(1) The name of each redevelopment project area in the county
26for which an agency must submit a report pursuant to subdivision
27(b) or (c) and information as to whether the county auditor has
28issued a finding of concurrence regarding the report.

29(2) A list of the agencies for which the county auditor has issued
30a finding of concurrence for all project areas identified in paragraph
31(1).

32(3) A list of agencies for which the county auditor has not issued
33a finding of concurrence for all project areas identified in paragraph
34(1).

35(4) Using information applicable to agencies listed in paragraph
36(2), the county auditor shall report all of the following:

37(A) The total sums reported by each redevelopment agency
38related to each taxing entity pursuant to paragraphs (1) to (7),
39inclusive, of subdivision (b) and, on or after December 15, 2009,
40pursuant to paragraphs (1) to (7), inclusive, of subdivision (c).

P205  1(B) The names of agencies that have outstanding passthrough
2payment obligations to a local educational agency that exceed the
3amount of outstanding passthrough payments to the local
4educational agency.

5(C) Summary information regarding agencies’ stated plans to
6pay the outstanding amounts identified in paragraph (6) of
7subdivision (b) and paragraph (6) of subdivision (c) and the actual
8amounts that have been deposited into the county Educational
9Revenue Augmentation Fund pursuant to subdivision (j).

10(D) All unresolved statements of dispute filed by agencies
11pursuant to paragraph (3) of subdivision (e) and the county
12auditor’s analyses supporting the county auditor’s conclusions
13regarding the issues under dispute.

14(g) (1) On or before February 1, 2009, and annually thereafter
15through 2015, the Controller shall submit a report to the Legislative
16Analyst’s Office and the Department of Finance and provide a
17copy to the Board of Governors of the California Community
18Colleges. The report shall provide information as follows:

19(A) Identify agencies for which the county auditor has issued
20a finding of concurrence for all reports required under subdivisions
21(b) and (c).

22(B) Identify agencies for which the county auditor has not issued
23a finding of concurrence for all reports required pursuant to
24subdivision (b) and all reports required pursuant to subdivision (c)
25or for which a finding of concurrence has been withdrawn by the
26Controller.

27(C) Summarize the information reported in paragraph (4) of
28subdivision (f). This summary shall identify, by local educational
29agency and by year, the total amount of passthrough payments that
30each local educational agency received, was entitled to receive,
31subordinated, or that has not yet been paid, and the portion of these
32amounts that are considered to be property taxes for purposes of
33Sections 2558 and 42238 of the Education Code, as those sections
34read on January 1, 2013, and, after June 30, 2013, Sections 2575
35and 42238.02, and Section 84751 of the Education Code. The
36report shall identify, by agency, the amounts that have been
37deposited to the county Educational Revenue Augmentation Fund
38pursuant to subdivision (j).

39(D) Summarize the statements of dispute. The Controller shall
40specify the status of these disputes, including whether the
P206  1Controller or other state entity has provided instructions as to how
2these disputes should be resolved.

3(E) Identify agencies that have outstanding passthrough payment
4liabilities to a local educational agency that exceed the amount of
5outstanding passthrough overpayments to the local educational
6agency.

7(2) On or before February 1, 2009, and annually thereafter
8through 2015, the Controller shall submit a report to the State
9Department of Education and the Board of Governors of the
10California Community Colleges. The report shall identify, by local
11educational agency and by year of receipt, the total amount of
12passthrough payments that the local educational agency received
13from redevelopment agencies listed in subparagraph (A) of
14paragraph (1).

15(h) (1) On or before April 1, 2009, and annually thereafter until
16April 1, 2015, the State Department of Education shall do all of
17the following:

18(A) Calculate for each school district for the 2003-04 to
192007-08, inclusive, fiscal years the difference between 43.3 percent
20of the amount reported pursuant to paragraph (2) of subdivision
21(g) and the amount subtracted from each school district’s
22apportionment pursuant to paragraph (6) of subdivision (h) of
23Section 42238 of the Education Code, as it read on January 1,
242013.

25(B) Calculate for each county superintendent of schools for the
262003-04 to 2007-08, inclusive, fiscal years the difference between
2719 percent of the amount reported pursuant to paragraph (2) of
28subdivision (g) and the amount received pursuant to Sections
2933607.5 and 33607.7 and subtracted from each county
30superintendent of schools apportionment pursuant to subdivision
31(c) of Section 2558 of the Education Code, as it read on January
321, 2013.

33(C) Notify each school district and county superintendent of
34schools for which any amount calculated in subparagraph (A) or
35(B) is nonzero as to the reported change and its resulting impact
36on apportionments. After April 1, 2009, however, the department
37shall not notify a school district or county superintendent of schools
38if the amount calculated in subparagraph (A) or (B) is the same
39amount as the department calculated in the preceding year.

P207  1(2) On or before April 1, 2010, and annually thereafter until
2April 1, 2015, the State Department of Education shall do all of
3the following:

4(A) Calculate for each school district for the 2008-09 fiscal
5year the difference between 43.3 percent of the amount reported
6pursuant to paragraph (2) of subdivision (g) and the amount
7subtracted from each school district’s apportionment pursuant to
8paragraph (6) of subdivision (h) of Section 42238 of the Education
9Code, as it read on January 1, 2013.

10(B) Calculate for each county superintendent of schools for the
112008-09 fiscal year the difference between 19 percent of the
12amount reported pursuant to paragraph (2) of subdivision (g) and
13the amount received pursuant to Sections 33607.5 and 33607.7
14and subtracted from each county superintendent of schools
15apportionment pursuant to subdivision (c) of Section 2558 of the
16Education Code, as it read on January 1, 2013.

17(C) Notify each school district and county superintendent of
18schools for which any amount calculated in subparagraph (A) or
19(B) is nonzero as to the reported change and its resulting impact
20on revenue limit apportionments. After April 1, 2010, however,
21the department shall not notify a school district or county
22superintendent of schools if the amount calculated in subparagraph
23(A) or (B) is the same amount as the department calculated in the
24preceding year.

25(3) For the purposes of Article 3 (commencing with Section
2641330) of Chapter 3 of Part 24 of Division 3 of Title 2 of the
27Education Code, the amounts reported to each school district and
28county superintendent of schools in the notification required
29pursuant to subparagraph (C) of paragraph (1) and subparagraph
30(C) of paragraph (2) shall be deemed to be apportionment
31significant audit exceptions and the date of receipt of that
32notification shall be deemed to be the date of receipt of the final
33audit report that includes those audit exceptions.

34(4) On or before March 1, 2009, and annually thereafter until
35March 1, 2015, the Board of Governors of the California
36Community Colleges shall do all of the following:

37(A) Calculate for each community college district for the
382003-04 to 2007-08, inclusive, fiscal years the difference between
3947.5 percent of the amount reported pursuant to paragraph (2) of
40subdivision (g) and the amount subtracted from each district’s total
P208  1revenue owed pursuant to subdivision (d) of Section 84751 of the
2Education Code.

3(B) Notify each community college district for which any
4amount calculated in subparagraph (A) is nonzero as to the reported
5change and its resulting impact on apportionments. After March
61, 2009, however, the board shall not notify a school district or
7county superintendent of schools if the amount calculated in
8subparagraph (A) is the same amount as the board calculated in
9the preceding year.

10(5) On or before March 1, 2010, and annually thereafter until
11March 1, 2015, the Board of Governors of the California
12Community Colleges shall do all of the following:

13(A) Calculate for each community college district for the
142003-04 to 2007-08, inclusive, fiscal years the difference between
1547.5 percent of the amount reported pursuant to paragraph (2) of
16subdivision (g) and the amount subtracted from each district’s total
17revenue owed pursuant to subdivision (d) of Section 84751 of the
18Education Code.

19(B) Notify each community college district for which any
20amount calculated in subparagraph (A) is nonzero as to the reported
21change and its resulting impact on revenue apportionments. After
22March 1, 2010, however, the board shall not notify a community
23college district if the amount calculated in subparagraph (A) is the
24same amount as the board calculated in the preceding year.

25(6) A community college district may submit documentation to
26the Board of Governors of the California Community Colleges
27showing that all or part of the amount reported to the district
28pursuant to subparagraph (B) of paragraph (4) and subparagraph
29(B) of paragraph (5) was previously reported to the California
30Community Colleges for the purpose of the revenue level
31calculations made pursuant to Section 84751 of the Education
32Code. Upon acceptance of the documentation, the board shall
33adjust the amounts calculated in paragraphs (4) and (5) accordingly.

34(7) The Board of Governors of the California Community
35Colleges shall make corrections in any amounts allocated in any
36fiscal year to each community college district for which any amount
37calculated in paragraphs (4) and (5) is nonzero so as to account
38for the changes reported pursuant to paragraph (4) of subdivision
39(b) and paragraph (4) of subdivision (c). The board may make the
40corrections over a period of time, not to exceed five years.

P209  1(i) (1) After February 1, 2009, for an agency listed on the most
2recent Controller’s report pursuant to subparagraph (B) or (E) of
3paragraph (1) of subdivision (g), all of the following shall apply:

4(A) The agency shall be prohibited from adding new project
5areas or expanding existing project areas. For purposes of this
6paragraph, “project area” has the same meaning as in Sections
733320.1 to 33320.3, inclusive, and Section 33492.3.

8(B) The agency shall be prohibited from issuing new bonds,
9notes, interim certificates, debentures, or other obligations, whether
10funded, refunded, assumed, or otherwise, pursuant to Article 5
11(commencing with Section 33640).

12(C) The agency shall be prohibited from encumbering any funds
13or expending any moneys derived from any source, except that
14the agency may encumber funds and expend funds to pay, if any,
15all of the following:

16(i) Bonds, notes, interim certificates, debentures, or other
17obligations issued by an agency before the imposition of the
18prohibition in subparagraph (B) whether funded, refunded,
19assumed, or otherwise, pursuant to Article 5 (commencing with
20Section 33460).

21(ii) Loans or moneys advanced to the agency, including, but not
22limited to, loans from federal, state, local agencies, or a private
23entity.

24(iii) Contractual obligations that, if breached, could subject the
25agency to damages or other liabilities or remedies.

26(iv) Obligations incurred pursuant to Section 33445.

27(v) Indebtedness incurred pursuant to Section 33334.2 or
2833334.6.

29(vi) Obligations incurred pursuant to Section 33401.

30(vii) An amount, to be expended for the monthly operation and
31administration of the agency, that may not exceed 75 percent of
32the average monthly amount spent for those purposes in the fiscal
33year preceding the fiscal year in which the agency was first listed
34on the Controller’s report pursuant to subparagraph (B) or (E) of
35paragraph (1) of subdivision (g).

36(2) After February 1, 2009, an agency identified in subparagraph
37(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
38charges on any passthrough payment that is made to a local
39educational agency more than 60 days after the close of the fiscal
40year in which the passthrough payment was required. Interest shall
P210  1be charged at a rate equal to 150 percent of the current Pooled
2Money Investment Account earnings annual yield rate and shall
3be charged for the period beginning 60 days after the close of the
4fiscal year in which the passthrough payment was due through the
5date that the payment is made.

6(3) The Controller, with the concurrence of the Director of
7Finance, may waive the provisions of paragraphs (1) and (2) for
8a period of up to 12 months if the Controller determines all of the
9following:

10(A) The county auditor has identified the agency in its most
11recent report issued pursuant to paragraph (2) of subdivision (f)
12as an agency for which the auditor has issued a finding of
13concurrence for all reports required pursuant to subdivisions (b)
14and (c).

15(B) The agency has filed a statement of dispute on an issue or
16issues that, in the opinion of the Controller, are likely to be resolved
17in a manner consistent with the agency’s position.

18(C) The agency has made passthrough payments to local
19educational agencies and the county Educational Revenue
20Augmentation Fund, or has had funds previously withheld by the
21auditor, in amounts that would satisfy the agency’s passthrough
22payment requirements to local educational agencies if the issue or
23issues addressed in the statement of dispute were resolved in a
24manner consistent with the agency’s position.

25(D) The agency would sustain a fiscal hardship if it made
26passthrough payments to local educational agencies and the county
27Educational Revenue Augmentation Fund in the amounts estimated
28by the county auditor.

29(j) Notwithstanding any other provision of law, if an agency
30report submitted pursuant to subdivision (b) or (c) indicates
31outstanding payment obligations to a local educational agency,
32the agency shall make these outstanding payments as follows:

33(1) Of the outstanding payments owed to school districts,
34including any interest payments pursuant to paragraph (2) of
35subdivision (i), 43.3 percent shall be deposited in the county
36Educational Revenue Augmentation Fund and the remainder shall
37be allocated to the school district or districts.

38(2) Of the outstanding payments owed to community college
39districts, including any interest payments pursuant to paragraph
40(2) of subdivision (i), 47.5 percent shall be deposited in the county
P211  1Educational Revenue Augmentation Fund and the remainder shall
2be allocated to the community college district or districts.

3(3) Of the outstanding payments owed to county offices of
4education, including any interest payments pursuant to paragraph
5(2) of subdivision (i), 19 percent shall be deposited in the county
6Educational Revenue Augmentation Fund and the remainder shall
7be allocated to the county office of education.

8(k) (1) This section shall not be construed to increase any
9allocations of excess, additional, or remaining funds that would
10otherwise have been allocated to cities, counties, cities and
11counties, or special districts pursuant to clause (i) of subparagraph
12(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
13(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
14Section 97.3 of, or Article 4 (commencing with Section 98) of
15Chapter 6 of Part 0.5 of Division 1 of, the Revenue and Taxation
16Code had this section not been enacted.

17(2) Notwithstanding any other provision of law, no funds
18deposited in the county Educational Revenue Augmentation Fund
19pursuant to subdivision (j) shall be distributed to a community
20college district.

21(l) A county may require an agency to reimburse the county for
22any expenses incurred by the county in performing the services
23required by this section.

end delete
begin delete24

SEC. 113.  

Section 95 of the Revenue and Taxation Code is
25amended to read:

26

95.  

For purposes of this chapter:

27(a) “Local agency” means a city, county, and special district.

28(b) “Jurisdiction” means a local agency, school district,
29community college district, or county superintendent of schools.
30A jurisdiction as defined in this subdivision is a “district” for
31purposes of Section 1 of Article XIII A of the California
32Constitution.

33For jurisdictions located in more than one county, the county
34auditor of each county in which that jurisdiction is located shall,
35for the purposes of computing the amount for that jurisdiction
36pursuant to this chapter, treat the portion of the jurisdiction located
37within that county as a separate jurisdiction.

38(c) “Property tax revenue” includes the amount of state
39reimbursement for the homeowners’ exemption. “Property tax
40revenue” does not include the amount of property tax levied for
P212  1the purpose of making payments for the interest and principal on
2either of the following:

3(1) General obligation bonds or other indebtedness approved
4by the voters prior to July 1, 1978, including tax rates levied
5pursuant to Part 10 (commencing with Section 15000) of Division
61 of, and Sections 39308 and 39311 and former Sections 81338
7and 81341 of the Education Code, and Section 26912.7 of the
8Government Code.

9(2) Bonded indebtedness for the acquisition or improvement of
10real property approved by two-thirds of the voters on or after June
114, 1986.

12(d) “Taxable assessed value” means total assessed value minus
13all exemptions other than the homeowners’ and business inventory
14exemptions.

15(e) “Jurisdictional change” includes any change of organization,
16as defined in Section 56021 of the Government Code and a
17reorganization, as defined in Section 56073 of the Government
18Code. “Jurisdictional change” also includes any change in the
19boundary of those special districts that are not under the jurisdiction
20of a local agency formation commission.

21“Jurisdictional change” also includes a functional consolidation
22where two or more local agencies, except two or more counties,
23exchange or otherwise reassign functions and any change in the
24boundaries of a school district or community college district or
25county superintendent of schools.

26(f) “School entities” means school districts, community college
27districts, the Educational Revenue Augmentation Fund, and county
28superintendents of schools.

29(g) Except as otherwise provided in this subdivision, “tax rate
30area” means a specific geographic area all of which is within the
31jurisdiction of the same combination of local agencies and school
32entities for the current fiscal year.

33In the case of a jurisdictional change pursuant to Section 99, the
34area subject to the change shall constitute a new tax rate area,
35except that if the area subject to change is within the same
36combinations of local agencies and school entities as an existing
37tax rate area, the two tax rate areas may be combined into one tax
38rate area.

39Existing tax rate areas having the same combinations of local
40agencies and school entities may be combined into one tax rate
P213  1area. For the combination of existing tax rate areas, the factors
2used to allocate the annual tax increment pursuant to Section 98
3shall be determined by calculating a weighted average of the annual
4tax increment factors used in the tax rate areas being combined.

5(h) “State assistance payments” means:

6(1) For counties, amounts determined pursuant to subdivision
7(b) of Section 16260 of the Government Code, increased by the
8amount specified for each county pursuant to Section 94 of Chapter
9282 of the Statutes of 1979, with the resultant sum reduced by an
10amount derived by the calculation made pursuant to Section 16713
11of the Welfare and Institutions Code.

12(2) For cities, 82.91 percent of the amounts determined pursuant
13to subdivisions (b) and (i) of Section 16250 of the Government
14Code, plus for any city an additional amount equal to one-half of
15the amount of any outstanding debt as of June 30, 1978, for
16“museums” as shown in the Controller’s “Annual Report of
17Financial Transactions of Cities for Fiscal Year 1977-78.”

18(3) For special districts, 95.24 percent of the amounts received
19pursuant to Chapter 3 (commencing with Section 16270) of Part
201.5 of Division 4 of Title 2 of the Government Code, Section 35.5
21of Chapter 332 of the Statutes of 1978, and Chapter 12 of the
22Statutes of 1979.

23(i) “City clerk” means the clerk of the governing body of a city
24or city and county.

25(j) “Executive officer” means the executive officer of a local
26agency formation commission.

27(k) “City” means any city whether general law or charter, except
28a city and county.

29(l) “County” means any chartered or general law county.
30“County” includes a city and county.

31(m) “Special district” means any agency of the state for the local
32performance of governmental or proprietary functions within
33limited boundaries. “Special district” includes a county service
34area, a maintenance district or area, an improvement district or
35improvement zone, or any other zone or area, formed for the
36purpose of designating an area within which a property tax rate
37will be levied to pay for a service or improvement benefiting that
38area. “Special district” includes the Bay Area Air Quality
39Management District. “Special district” does not include a city, a
40county, a school district, or a community college district. “Special
P214  1district” does not include any agency that is not authorized by
2statute to levy a property tax rate. However, any special district
3authorized to levy a property tax by the statute under which the
4district was formed shall be considered a special district.
5Additionally, a county free library established pursuant to Article
61 (commencing with Section 19100) of Chapter 6 of Part 11 of
7Division 1 of Title 1 of the Education Code, and for which a
8property tax was levied in the 1977-78 fiscal year, shall be
9considered a special district.

10(n) “Excess tax school entity” means an educational agency for
11which the amount of the state funding entitlement determined
12under subdivision (e), (f), or (g) of Section 2575, or Section
1384750.5 or 84751 of the Education Code, as appropriate, is zero,
14and as described in subdivision (o) of Section 42238.02 of the
15Education Code, as implemented by Section 42238.03 of the
16Education Code.

end delete
begin delete17

SEC. 114.  

Section 196.4 of the Revenue and Taxation Code
18 is amended to read:

19

196.4.  

(a) In the 1991-92 fiscal year, the county auditor of an
20eligible county, proclaimed by the Governor to be in a state of
21disaster as a result of the Oakland/Berkeley Fire that occurred in
22October 1991, shall certify to the Director of Finance an estimate
23of the total amount of the reduction in property tax revenues on
24both the regular secured roll and the supplemental roll for that
25fiscal year resulting from the reassessment of eligible properties
26by the county assessor pursuant to Section 170, except that the
27amount certified shall not include any estimated property tax
28revenue reductions to school districts (other than basic state aid
29school districts), county offices of education, and community
30college districts.

31(b) In the 1991-92 fiscal year, the county auditor of an eligible
32county, proclaimed by the Governor to be in a state of disaster as
33a result of the Painted Cave Fire that occurred in June 1990, shall
34certify to the Director of Finance an estimate of the total amount
35of the reduction in property tax revenues on both the regular
36secured roll and the supplemental roll for the 1990-91 fiscal year
37resulting from the reassessment of eligible properties by the county
38assessor pursuant to Section 170, except that the amount certified
39shall not include any estimated property tax revenue reductions to
P215  1school districts (other than basic aid school districts), county offices
2of education, and community college districts.

3(c) For purposes of this section, “basic state aid school district”
4means any school district that does not receive a state
5apportionment pursuant to subdivision (h) of Section 42238 of the
6Education Code, as it read on January 1, 2013, but receives from
7the state only a basic apportionment pursuant to Section 6 of Article
8IX of the California Constitution.

end delete
begin delete
9

SEC. 115.  

(a) The sum of two billion ninety-nine million one
10hundred sixty-one thousand dollars ($2,099,161,000) is hereby
11appropriated from the General Fund for the purposes of this act as
12follows:

13(1) Two million dollars ($2,000,000) shall be appropriated to
14the Governor’s Office of Planning and Research for purposes of
15implementing Sections 42238.07, 52064, and 52064.5 of the
16Education Code.

17(2) Two billion sixty-seven million one hundred forty thousand
18dollars ($2,067,140,000) shall be appropriated to the
19Superintendent of Public Instruction and shall be allocated pursuant
20to the calculation in subdivision (b) of Section 42238.03 of the
21Education Code.

22(3) Thirty-two million twenty-one thousand dollars
23($32,021,000) shall be appropriated to the Superintendent of Public
24Instruction and shall be allocated pursuant to the calculation in
25subdivision (f) of Section 2575 of the Education Code.

26(b) For purposes of making the computations required by Section
278 of Article XVI of the California Constitution, the appropriation
28made by subdivision (a) shall be deemed to be “General Fund
29revenues appropriated for school districts,” as defined in
30subdivision (c) of Section 41202 of the Education Code, for the
312013-14 fiscal year, and included within the “total allocations to
32school districts and community college districts from General Fund
33proceeds of taxes appropriated pursuant to Article XIII B,” as
34defined in subdivision (e) of Section 41202 of the Education Code,
35for the 2013-14 fiscal year.

end delete
begin delete
36

SEC. 116.  

If the Commission on State Mandates determines
37that this act contains costs mandated by the state, reimbursement
38to local agencies and school districts for those costs shall be made
39pursuant to Part 7 (commencing with Section 17500) of Division
404 of Title 2 of the Government Code.

end delete
begin delete
P216  1

SEC. 117.  

This act is a bill providing for appropriations related
2to the Budget Bill within the meaning of subdivision (e) of Section
312 of Article IV of the California Constitution, has been identified
4as related to the budget in the Budget Bill, and shall take effect
5immediately.

end delete


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