Amended in Assembly September 11, 2013

Amended in Assembly September 6, 2013

Amended in Assembly August 28, 2013

Senate Bill No. 97

Introduced by Committee on Budget and Fiscal Review

January 10, 2013

An act to amend Sections 1240, 1622, 2574, 2575, 2576, 8150.5, 8151, 8152, 8154, 8155, 35736.5, 41365, 41367, 42127, 42238.01, 42238.02, 42238.025, 42238.03, 42238.05, 42238.20, 42283, 42284, 42285, 42287, 46200, 46201, 46202, 46208, 47612, 47614.5, 47631, 48664, 49085, 52060, 52061, 52062, 52064, 52066, 52068, 52070, 52070.5, 52074, 56836.11, 70022, and 84321.6 of, to amend and repeal Sections 2558 and 47633 of, begin insert to add Section 41329.575 to, end insert and to repeal Sections 1982, 42285.5, and 48667 of, the Education Code, to amend Section 17581.7 of the Government Code, to amend Sections 26225, 26233, and 26235 of the Public Resources Code, to amend Section 115 of Chapter 47 of the Statutes of 2013, to amend Section 83 of Chapter 48 of the Statutes of 2013, and to amend Items 6110-001-0001 and 6110-280-0001 of Section 2.00 of the Budget Act of 2013, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 97, as amended, Committee on Budget and Fiscal Review. School finance: local control funding formula.

(1) Existing law provides for the attendance of apprentices at high schools, unified school districts, regional occupational centers or programs, community colleges, and adult schools under vocational education program standards that are established with the participation of the State Department of Education, the Chancellor of the California Community Colleges, and the Division of Apprenticeship Standards of the Department of Industrial Relations.

Existing law establishes standards for the provision of state funding and reimbursements for these programs at high schools, unified school districts, regional occupational centers or programs, and adult schools separate from these programs at community colleges. Existing law requires, by March 15, 2014, the Chancellor of the California Community Colleges and the Division of Apprenticeship Standards of the Department of Industrial Relations, with equal participation by specified entities, to develop common administrative practices and treatment for costs and services, as well as other policies related to apprenticeship programs.

This bill would amend these provisions so that they refer to local educational agencies, as defined to mean a school district or county office of education, rather than to high schools, unified school districts, regional occupational centers or programs, and adult schools. The bill would change the deadline for the development of common administrative practices and treatment of costs and services by the Chancellor of the California Community Colleges and the Division of Apprenticeship Standards of the Department of Industrial Relations by one day to March 14, 2014.

(2) Existing law establishes the Charter School Revolving Loan Fund, and authorizes loans to be made from the fund to qualifying charter schools. Existing law establishes the Charter School Security Fund, and authorizes deposits to be made from that fund into the Charter School Revolving Loan Fund in case of a default on a loan made from the latter fund. Existing law has transferred the responsibility for the administration of these funds from the State Department of Education to the California School Finance Authority commencing with the 2013-14 fiscal year. Existing law also establishes the Charter School Facility Grant Program under the administration of the authority. Existing law requires the authority to adopt emergency regulations to implement these provisions.

This bill would authorize, rather than require, the California School Finance Authority to adopt any necessary rules and regulations for the implementation of these provisions.

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(3) Existing law requires the Controller to transfer from Section A of the State School Fund and the Education Protection Account the amount of funds necessary to pay certain warrants so that the effective cost of the lease financing provided to the Oakland Unified School District, the Vallejo City Unified School District, and the West Contra Costa Unified School District is equal to the cost of the original General Fund emergency loan made to each school district. Existing law also specifies the original interest rate to be used in determining the cost of the original emergency loan made for these school districts.

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This bill would require the Controller, for the 2013-14 to 2029-30 fiscal years, inclusive, to make that transfer with respect to the lease financing provided to the South Monterey County Joint Union High School District pursuant to a specified 2009 statute. The bill would specify the original interest rate to be used in determining the cost of the original emergency loan for the South Monterey County Joint Union High School District as equal to the annual rate of return of the Pooled Money Investment Account for the applicable fiscal year, plus an additional 2%. The bill would require this rate to also apply to any disbursements of the loan pursuant to the 2009 statute that are subsequent to September 15, 2013. The bill would make legislative findings and declarations as to the necessity of a special statute for the South Monterey County Joint Union High School District.

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(3)

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begin insert (4) end insert  Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires, as part of the local control funding formula calculation, the calculation of an annual local control funding formula transition adjustment that is calculated on the basis of moneys appropriated in the Budget Act of 2012 for specified programs, including, among others, regional occupational centers and programs. Existing law, for the 2013-14 and 2014-15 fiscal years only, requires a county superintendent of schools and a school district that, in the 2012-13 fiscal year, received funds on behalf of, or provided funds to, a regional occupational center or program joint powers agency, to not redirect that funding for another purpose, except as specified. Existing law also requires, for the 2013-14 and 2014-15 fiscal years only, a county superintendent of schools and a school district, respectively, to spend no less for regional occupational centers and programs than the amount of funds the county superintendent and school district expended in the 2012-13 fiscal year.

This bill would, for the 2013-14 and 2014-15 fiscal years, require the Superintendent of Public Instruction to apportion to a regional occupational center or program joint powers agency the same amount that agency received in the 2012-13 fiscal year from specified funding sources. The bill would authorize a county office of education and school district to include expenditures made by the county office of education and the school districts within the county for purposes of regional occupational centers or programs so long as the total amount of expenditures made by the county office of education and school districts within the county equals or exceeds the total amount required to be expended for regional occupational centers or programs pursuant to specified provisions. The bill would, for the 2013-14 and 2014-15 fiscal years, require the Superintendent to reduce the amount of the Budget Act of 2012 entitlement for regional occupational centers and programs used in the computation of the local control funding formula transition adjustment for the Torrance Unified School District by $3,473,574 and would require the Torrance Unified School District to continue to allocate $3,473,574 for purposes of a regional occupational center or program joint powers agency. The bill would also make numerous technical and substantive changes to provisions related to the local control funding formula.

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(4)

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begin insert (5) end insert  Existing law requires a county board of education and a governing board of a school district to annually adopt a budget, as specified, and requires the Superintendent to approve the budget adopted by the county board of education and the county superintendent of schools to approve the budget adopted by the governing board of a school district. Existing law requires the budgets to not be adopted if they do not include the expenditures identified in a local control and accountability plan or an annual update to the local control and accountability plan that will be effective in the subsequent fiscal year. Existing law also requires, if a budget is disapproved, the formation of a budget review committee, as specified.

This bill would, commencing with the 2014-15 fiscal year, require that a budget review committee not be formed if the sole reason for a budget not being approved is the lack of an approved local control and accountability plan or an annual update.

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(5)

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begin insert (6) end insert  Existing law requires a county superintendent of schools and a school district to expend no less for home-to-school transportation programs than the amount of funds the county superintendent of schools and school district, respectively, expended for home-to-school transportation in the 2012-13 fiscal year.

This bill would, for the 2013-14 and 2014-15 fiscal years, if a home-to-school transportation joint powers agency received, in the 2012-13 fiscal year, an apportionment of funds directly from the Superintendent for any of specified funding sources, require the Superintendent to apportion the same amount to the home-to-school transportation joint powers agency.

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(6)

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begin insert (7) end insert  Existing law, as part of the local control funding formula, requires a county superintendent of schools, school district, and charter school to annually report the enrollment of unduplicated pupils, defined as pupils classified as English learners, pupils eligible for free and reduced-price meals, and foster youth, to the Superintendent.

This bill would require the Superintendent to establish procedures and timeframes for the annual reporting of this information.

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(7)

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begin insert (8) end insert  Existing law, commencing with the 2013-14 fiscal year, requires the Superintendent to increase certain funding amounts related to necessary small schools by an amount proportionate to the increase in the statewide average local control funding formula allocations for the then current fiscal year.

This bill, commencing with the 2013-14 fiscal year, would instead require the Superintendent to increase the funding amount related to necessary small schools by the percentage change in the annual average value of a certain deflator, as specified.

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(8)

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begin insert (9) end insert  Existing law requires the State Department of Education and the State Department of Social Services to enter into a memorandum of understanding that requires the State Department of Social Services, at least once per week, to share information related to foster youth with the State Department of Education.

This bill would require the State Department of Education and the State Department of Social Services to enter into the memorandum of understanding on or before February 1, 2014.

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(9)

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begin insert (10) end insert  Existing law requires a school district and a county superintendent of schools to adopt a local control accountability plan using a template adopted by the State Board of Education. Existing law requires the local control and accountability plan to include a description of the annual goals to be achieved for each of certain state priorities and the specific actions that will be taken to achieve the annual goals. Existing law requires the governing board of a school district and the county superintendent of schools to consult with teachers, principals, administrators, other school personnel, parents, and pupils in developing the local control and accountability plan. Existing law requires the county superintendent of schools to approve a local control and accountability plan or annual update to a local control and accountability plan adopted by the governing board of a school district, and requires the Superintendent of Public Instruction to approve a local control and accountability plan or annual update to a local control and accountability plan adopted by the county board of education, if specified determinations are made. Existing law establishes the California Collaborative for Educational Excellence for begin delete purposes end delete begin insert the purpose end insert of advising and assisting school districts, county superintendents of schools, and charter schools in achieving the goals set forth in a local control and accountability plan and requires the Superintendent, with the approval of the state board, to contract with individuals, local educational agencies, or organizations with the expertise, experience, and record of success to carry out the purposes of local control accountability plans.

This bill would require the local control and accountability plan to also include a listing and description of the expenditures for the fiscal year implementing the specific actions and the expenditures for the fiscal year that will serve unduplicated pupils, as defined, and pupils redesignated as fluent English proficient. The bill would require the governing board of a school district and county superintendent of schools to also consult with their local bargaining units in developing the local control and accountability plan. The bill would require the county superintendent of schools and the Superintendent, in approving a local control and accountability plan or annual update to a local control and accountability plan approved by the governing board of a school district or county board of education, respectively, to also determine if the local control and accountability plan or annual update adheres to specified expenditure requirements relating to unduplicated pupils. The bill would require the Superintendent to contract with a local educational agency, or consortium of local educational agencies, to serve as the fiscal agent for the California Collaborative for Educational Excellence begin insert and would establish a governing board for the collaborative consisting of 5 members, as specified end insert . The bill would begin insert , at the direction of the governing board of the end insert begin insert collaborative end insert begin insert , end insert require the fiscal agent for the begin delete California Collaborative for Educational Excellence end delete begin insert collaborative end insert to contract with individuals, local educational agencies, or organizations with the expertise, experience, and record of success to carry out the purposes of local control and accountability plans.

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(10)

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begin insert (11) end insert  Existing law provides for the calculation of apportionments to fund the provision of special education instruction and services for pupils who qualify for these programs.

This bill would require that a specified appropriation in the Budget Act of 2013 be included in the calculation of the statewide target amount per unit of average daily attendance used to determine adjustments to special education apportionments for the 2013-14 fiscal year.

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(11)

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begin insert (12) end insert  Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. Existing law establishes the Middle Class Scholarship Program under the administration of the Student Aid Commission. The program provides that, subject to an available and sufficient appropriation, commencing with the 2014-15 academic year, undergraduate students enrolled at the University of California or the California State University receive a scholarship award that, combined with other publicly funded student financial aid, is up to 40% of the amount charged to that student for mandatory systemwide tuition in that fiscal year if the student meets the following conditions: has an annual household income that does not exceed $150,000; satisfies specified requirements for a Cal Grant award; is a resident of this state or exempt from paying nonresident tuition; files specified financial aid forms; makes timely application or applications for publicly funded student financial aid, as defined, for which he or she is eligible; and maintains at least a 2.0 grade point average.

The program requires, in order for students enrolled in their respective segments to remain eligible to receive financial aid under the bill, that the University of California and the California State University maintain their respective institutional need-based grant program policies and maintain their funding amounts at a level that, at a minimum, is equal to the level maintained during the 2013-14 academic year.

This bill would provide that the scholarship award under the Middle Class Scholarship, combined with other publicly funded student financial aid, would be for up to 40% of the mandatory systemwide tuition and fees, rather than up to 40% of the mandatory systemwide tuition, charged to an eligible student in a fiscal year.

The bill would require that an eligible student maintain satisfactory academic progress, rather than a 2.0 grade point average, to receive a scholarship award under the program.

The bill would also require that the University of California and the California State University not supplant their respective institutional need-based grants with funds provided for scholarships under the program, rather than maintain their respective need-based grant program policies, as specified.

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(12)

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begin insert (13) end insert  Existing law requires the Controller to draw warrants on the State Treasury in each month of the year for the purpose of funding school districts, county superintendents of schools, and community college districts. Existing law defers the drawing of specified warrants until later dates. With respect to community colleges, existing law appropriates $591,233,000 from the General Fund to the Board of Governors of the California Community Colleges, for expenditure during the 2014-15 fiscal year, in satisfaction of specified moneys whose payment to the California Community Colleges has been deferred.

This bill would decrease the amount of apportionment to the California Community Colleges to be deferred from the month of February to the month of July from $55,233,000 to $52,456,000. The bill would also increase the amount of the appropriation from the General Fund to the Board of Governors of the California Community Colleges, for expenditure during the 2014-15 fiscal year, in satisfaction of specified deferred amounts from $591,233,000 to $592,456,000.

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(13)

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begin insert (14) end insert  Existing law, commencing with the 2012-13 fiscal year, requires certain funds appropriated in the annual Budget Act for reimbursement of the cost of a new program or increased level of service of an existing program mandated by statute or executive order to be available as a block grant to school districts, charter schools, county offices of education, and community college districts, to support specified state-mandated local programs. Existing law provides that a school district, charter school, county office of education, or community college district that submits a letter of intent to the Superintendent of Public Instruction or the Chancellor of the California Community Colleges, as appropriate, and receives this block grant funding is not eligible to submit a claim for reimbursement for those specified mandated programs for the fiscal year for which the block grant funding is received.

This bill, with respect to community colleges, would add the collective bargaining agreement disclosure mandate to the list of specified state-mandated local programs that are subject to these provisions that authorize block grant funding in lieu of program-specific reimbursement.

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(14)

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begin insert (15) end insert  The California Clean Energy Jobs Act, an initiative approved by the voters as Proposition 39 at the November 6, 2012, statewide general election, made changes to corporate income taxes and, except as specified, provides for the transfer of $550,000,000 annually from the General Fund to the Clean Energy Job Creation Fund, or the Job Creation Fund, for 5 fiscal years beginning with the 2013-14 fiscal year. Moneys in the Job Creation Fund are available, upon appropriation by the Legislature, for purposes of funding eligible projects that create jobs in California improving energy efficiency and expanding clean energy generation. Existing law provides for the allocation of available funds to public school facilities, university and college facilities, and other public buildings and facilities, as well as job training and workforce development and public-private partnerships for eligible projects, as specified. Existing law establishes prescribed criteria that apply to all expenditures from the Job Creation Fund.

This bill would make various revisions in the provisions of the act relating to the allocation of Job Creation Fund moneys to schools, including specifying the calculation of average daily attendance for state special schools for these purposes, and clarifying the scope of an authorization for smaller educational agencies to elect to receive 2 years of this funding at once.

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(15)

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begin insert (16) end insert  Existing law authorizes the Inglewood Unified School District, through the State Department of Education, to request cashflow loans from the General Fund for a total of $55,000,000.

This bill would require that the terms and conditions of the General Fund cashflow loan to include authorization for the payment of costs incurred before June 15, 2013, by the California Infrastructure and Economic Development Bank to implement a specified provision. The bill would make legislative findings and declarations as to the necessity of a special statute for begin insert the end insert Inglewood Unified School District.

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(16)

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begin insert (17) end insert  Existing law, the Budget Act of 2013, appropriates $35,488,000 from the General Fund to the State Department of Education for support of various activities of the department.

This bill would appropriate an additional $3,164,000 for the support of the Career Technical Education Pathways Trust one-time grant program, the Local Control Accountability Plan state-level activities, and the Local Control Funding Formula administration, as specified.

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(17)

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begin insert (18) end insert  Existing law, the Budget Act of 2013, appropriates $250,000,000 from the General Fund to the State Department of Education for one-time grants for the Career Technical Education Pathways Grant Program, as specified.

This bill would, on a one-time basis, appropriate $250,000 of the $250,000,000 for an independent evaluation of the Career Technical Education Pathways Grant Program, and would require the department to allocate this funding to a local educational agency that the department has identified to contract for the evaluation.

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(18)

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begin insert (19) end insert   This bill would, on or before June 30, 2014, authorize the Board of Governors of the California Community Colleges to increase certain General Fund apportionment allocations, in an amount to be determined by the Director of Finance, to the extent that revenues distributed to local community colleges pursuant to provisions related to redevelopment agencies are less than the amount estimated in the Budget Act of 2012, as specified. The bill would require the Director of Finance to notify the Chairperson of the Joint Legislative Budget Committee, or his or her designee, of his or her intent to increase the total allocations and the amount needed to address the shortfall described above.

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(19)

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begin insert (20) end insert  This bill would, on or before December 31, 2013, appropriate, in an amount to be determined by the Director of Finance, up to $100,000,000 from the General Fund to the Board of Governors of the California Community Colleges, as specified, to the extent that revenues distributed to local community colleges pursuant to provisions related to redevelopment agencies are less than the amount estimated in the Budget Act of 2012, as specified. The bill would, on or before December 31, 2013, require the Director of Finance to reduce, as specified, an existing appropriation from the General Fund to the Board of Governors of the California Community Colleges if the revenues distributed to local community colleges pursuant to provisions related to redevelopment agencies exceed the amount estimated in the Budget Act of 2012. The bill would require the Director of Finance to notify the Chairperson of the Joint Legislative Budget Committee, or his or her designee, of his or her intent to notify the Controller of the necessity to increase or decrease the total allocations and of the amount needed to address the shortfall or surplus described above.

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(20)

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begin insert (21) end insert   This bill would make conforming changes, correct cross-references, and make other nonsubstantive changes.

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(22) This bill would incorporate additional changes in Sections 42127, 52060, 52061, 52064, and 52066 of the Education Code proposed by SB 344, to be operative only if SB 344 and this bill are both enacted and become effective on or before January 1, 2014, to the extent each bill amends Sections 42127, 52060, 52061, 52064, and 52066 of the Education Code, and this bill is enacted after SB 344.

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(21)

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begin insert (23) 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, as specified.

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(22)

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begin insert (24) 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: no.

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

SECTION 1.  

Section 1240 of the Education Code is amended
to read:

1240.  

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

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

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

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

(2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting,
to the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county,
and the board of supervisors of his or her county describing the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the 2003 base Academic
Performance Index (API), as described in subdivision (b) of Section
17592.70, and shall include, among other things, his or her
observations while visiting the schools and his or her
determinations for each school regarding the status of all of the
circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies. As a condition for receipt
of funds, the county superintendent, or his or her designee, shall
use a standardized template to report the circumstances listed in
subparagraph (J) and teacher misassignments and teacher
vacancies, unless the current annual report being used by the county
superintendent, or his or her designee, already includes those details
for each school.

(B) Commencing with the 2007-08 fiscal year, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her jurisdiction,
the county board of education of his or her county, and the board
of supervisors of his or her county describing the state of the
schools in the county or of his or her office that are ranked in
deciles 1 to 3, inclusive, of the 2006 base API, pursuant to Section
52056. The annual report shall include the determinations for each
school made by the county superintendent, or his or her designee,
regarding the status of all of the circumstances listed in
subparagraph (J) and teacher misassignments and teacher
vacancies, and the county superintendent, or his or her designee,
shall use a standardized template to report the circumstances listed
in subparagraph (J) and teacher misassignments and teacher
vacancies, unless the current annual report being used by the county
superintendent, or his or her designee, already includes those details
with the same level of specificity that is otherwise required by this
subdivision. For purposes of this section, schools ranked in deciles
1 to 3, inclusive, on the 2006 base API shall include schools
determined by the department to meet either of the following:

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

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

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

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

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

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

(D) For purposes of this section, references to schools ranked
in deciles 1 to 3, inclusive, on the 2006 base API shall exclude
schools operated by county offices of education pursuant to Section
56140, as determined by the department.

(E) In addition to the requirements above, the county
superintendent, or his or her designee, annually shall verify both
of the following:

(i) That pupils who have not passed the high school exit
examination by the end of grade 12 are informed that they are
entitled to receive intensive instruction and services for up to two
consecutive academic years after completion of grade 12 or until
the pupil has passed both parts of the high school exit examination,
whichever comes first, pursuant to paragraphs (4) and (5) of
subdivision (d) of Section 37254.

(ii) That pupils who have elected to receive intensive instruction
and services, pursuant to paragraphs (4) and (5) of subdivision (d)
of Section 37254, are being served.

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

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

(iii) The annual report shall include the determinations for each
school made by the county superintendent, or his or her designee,
regarding the status of all of the circumstances listed in
subparagraph (J) and teacher misassignments and teacher
vacancies, and the county superintendent, or his or her designee,
shall use a standardized template to report the circumstances listed
in subparagraph (J) and teacher misassignments and teacher
vacancies, unless the current annual report being used by the county
superintendent, or his or her designee, already includes those details
with the same level of specificity that is otherwise required by this
subdivision.

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

(H) On a quarterly basis, the county superintendent, or his or
her designee, shall report the results of the visits and reviews
conducted that quarter to the governing board of the school district
at a regularly scheduled meeting held in accordance with public
notification requirements. The results of the visits and reviews
shall include the determinations of the county superintendent, or
his or her designee, for each school regarding the status of all of
the circumstances listed in subparagraph (J) and teacher
misassignments and teacher vacancies. If the county
superintendent, or his or her designee, conducts no visits or reviews
in a quarter, the quarterly report shall report that fact.

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

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

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

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

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

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

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

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

(iv) The extent to which pupils who have not passed the high
school exit examination by the end of grade 12 are informed that
they are entitled to receive intensive instruction and services for
up to two consecutive academic years after completion of grade
12 or until the pupil has passed both parts of the high school exit
examination, whichever comes first, pursuant to paragraphs (4)
and (5) of subdivision (d) of Section 37254.

(v) The extent to which pupils who have elected to receive
intensive instruction and services, pursuant to paragraphs (4) and
(5) of subdivision (d) of Section 37254, are being served.

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

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

(i) Return to the school to verify repairs.

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

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

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

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

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

(h) Enforce the course of study.

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

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

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

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

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

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

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

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

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

(D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a public
statement at the first regularly scheduled meeting of the state board
occurring immediately after the department receives the request
of the county superintendent and that meets the applicable public
notice requirements, indicating that the district superintendent and
the governing board of the school district failed to provide pupils
with sufficient textbooks or instructional materials as required by
this subdivision. Before purchasing the textbooks or instructional
materials, the department shall consult with the school district to
determine which textbooks or instructional materials to purchase.
The amount of funds necessary for the purchase of the textbooks
and materials is a loan to the school district receiving the textbooks
or instructional materials. Unless the school district repays the
amount owed based upon an agreed-upon repayment schedule with
the Superintendent, the Superintendent shall notify the Controller
and the Controller shall deduct an amount equal to the total amount
used to purchase the textbooks and materials from the next
principal apportionment of the school district or from another
apportionment of state funds.

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

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

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

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

(B) As part of each report, the county superintendent shall certify
in writing whether or not the county office of education is able to
meet its financial obligations for the remainder of the fiscal year
and, based on current forecasts, for two subsequent fiscal years.
The certifications shall be classified as positive, qualified, or
negative, pursuant to standards prescribed by the Superintendent,
for the purposes of determining subsequent state agency actions
pursuant to Section 1240.1. For purposes of this subdivision, a
negative certification shall be assigned to a county office of
education that, based upon current projections, will not meet its
financial obligations for the remainder of the fiscal year or for the
subsequent fiscal year. A qualified certification shall be assigned
to a county office of education that may not meet its financial
obligations for the current fiscal year or two subsequent fiscal
years. A positive certification shall be assigned to a county office
of education that will meet its financial obligations for the current
fiscal year and subsequent two fiscal years. In accordance with
those standards, the Superintendent may reclassify a certification.
If a county office of education receives a negative certification,
the Superintendent, or his or her designee, may exercise the
authority set forth in subdivision (c) of Section 1630. Copies of
each certification, and of the report containing that certification,
shall be sent to the Superintendent at the time the certification is
submitted to the county board of education. Copies of each
qualified or negative certification and the report containing that
certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.

(i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the
same level of revenue per unit of average daily attendance as it
received in the 2010-11 fiscal year and shall maintain staffing and
program levels commensurate with that level.

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

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

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

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

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

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

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

(o) If any activities authorized pursuant to this section are found
to be a state reimbursable mandate pursuant to Section 6 of Article
XIII B of the California Constitution, funding provided for school
districts and county offices of education pursuant to Sections 2574,
2575, 42238.02, and 42238.03 shall be used to directly offset any
mandated costs.

SEC. 2.  

Section 1622 of the Education Code is amended to
read:

1622.  

(a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget
year and shall file the budget with the Superintendent, the county
board of supervisors, and the county auditor. The budget, and
supporting data, shall be maintained and made available for public
review. The budget shall indicate the date, time, and location at
which the county board of education held the public hearing
required under Section 1620. For the 2014-15 fiscal year and each
fiscal year thereafter, the county board of education shall not adopt
a budget before the county board of education adopts a local control
and accountability plan or approves an update to an existing local
control and accountability plan if an existing local control and
accountability plan or update to a local control and accountability
plan is not effective during the budget year. The county board of
education shall not adopt a budget that does not include the
expenditures identified in the local control and accountability plan
and any annual update to the local control and accountability plan
that will be effective in the subsequent fiscal year. Notwithstanding
any other provision of this article, for the 2014-15 fiscal year and
each fiscal year thereafter, the budget shall not be adopted or
approved by the Superintendent before a local control and
accountability plan or update to an existing local control and
accountability plan for the budget year is approved.

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

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

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

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

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

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

(d) (1) The Superintendent shall examine the revised budget
to determine if it complies with the standards and criteria adopted
by the state board pursuant to Section 33127 for application to
final local educational agency budgets and, no later than October
8, shall approve or disapprove the revised budget. For the 2014-15
fiscal year and each fiscal year thereafter, the Superintendent shall
disapprove a revised budget if the Superintendent determines that
the revised budget does not include the expenditures necessary to
implement the local control and accountability or an annual update
to the local control and accountability plan approved by the
Superintendent pursuant to Section 52067. If the Superintendent
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
Superintendent, as a condition on approval of a county office of
education budget, shall not require a county office of education to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the county
superintendent to certify in writing whether or not the county office
of education is able to meet its financial obligations for the two
subsequent fiscal years.

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the Superintendent disapproves
the budget for the sole reason that the Superintendent has not
approved a local control and accountability plan or an annual
update to the local control and accountability plan filed by the
county superintendent of schools pursuant to Section 52067, the
Superintendent shall not call for the formation of a budget review
committee pursuant to Section 1623.

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

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

(2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent shall review that response
and either approve or disapprove the budget of the county office
of education. For the 2014-15 fiscal year and each fiscal year
thereafter, the Superintendent shall disapprove a budget if the
Superintendent determines that the budget adopted by the county
board of education does not include the expenditures necessary to
implement the local control and accountability plan or an annual
update to the local control and accountability plan approved by
the Superintendent pursuant to Section 52067. Except as provided
in paragraph (2) of subdivision (d), if the Superintendent
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623.

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

SEC. 3.  

Section 1982 of the Education Code is repealed.

SEC. 4.  

Section 2558 of the Education Code is amended to
read:

2558.  

Notwithstanding any other law, for the 1979-80 fiscal
year and each fiscal year thereafter, the Superintendent shall
apportion state aid to county superintendents of schools pursuant
to this section.

(a) The Superintendent shall total the amounts computed for
the fiscal year pursuant to Sections 2550, 2551.3, 2554, 2555, and
2557 and Section 2551, as that section read on January 1, 1999.
For the 1979-80 fiscal year and for purposes of calculating the
1979-80 fiscal year base amounts in succeeding fiscal years, the
amounts in Sections 2550, 2551, 2552, 2554, 2555, and 2557, as
they read in the 1979-80 fiscal year, shall be multiplied by a factor
of 0.994. For the 1981-82 fiscal year and for purposes of
calculating the 1981-82 fiscal year base amounts in succeeding
fiscal years, the amount in this subdivision shall be multiplied by
a factor of 0.97.

(b) For the 1995-96 fiscal year and each fiscal year thereafter,
the county superintendent of schools shall adjust the total revenue
limit computed pursuant to this section by the amount of increased
or decreased employer contributions to the Public Employees’
Retirement System resulting from the enactment of Chapter 330
of the Statutes of 1982, adjusted for any changes in those
contributions resulting from subsequent changes in employer
contribution rates, excluding rate changes due to the direct transfer
of the state-mandated portion of the employer contributions to the
Public Employees’ Retirement System through the current fiscal
year. The adjustment shall be calculated for each county
superintendent of schools as follows:

(1) Determine the amount of employer contributions that would
have been made in the current fiscal year if the applicable Public
Employees’ Retirement System employee contribution rate in
effect immediately before the enactment of Chapter 330 of the
Statutes of 1982 were in effect during the current fiscal year.

(2) Determine the actual amount of employer contributions
made to the Public Employees’ Retirement System in the current
fiscal year.

(3) If the amount determined in paragraph (1) is greater than
the amount determined in paragraph (2), the total revenue limit
computed pursuant to this part for that county superintendent of
schools shall be decreased by the amount of the difference between
those paragraphs; or if the amount determined in paragraph (1) is
less than the amount determined in paragraph (2), the total revenue
limit for that county superintendent of schools shall be increased
by the amount of the difference between those paragraphs.

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

(A) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.

(B) Positions supported, to the extent of employers’
contributions not exceeding twenty-five thousand dollars ($25,000)
by any single educational agency, from a non-General Fund
revenue source determined to be properly excludable from this
subdivision by the Superintendent with the approval of the Director
of Finance. Commencing in the 2002-03 fiscal year, only positions
supported from a non-General Fund revenue source determined
to be properly excludable as identified for a particular local
educational agency or pursuant to a blanket waiver by the
Superintendent and the Director of Finance, before the 2002-03
fiscal year, may be excluded pursuant to this paragraph.

(5) For accounting purposes, any reduction to county office of
education revenue limits made by this subdivision may be reflected
as an expenditure from appropriate sources of revenue as directed
by the Superintendent.

(6) The amount of the increase or decrease to the revenue limits
of county superintendents of schools made by this subdivision for
the 1995-96 to 2001-02 fiscal years, inclusive, may not be adjusted
by the deficit factor applied to the revenue limit of each county
superintendent of schools pursuant to Section 2558.45.

(7) For the 2003-04 fiscal year and any fiscal year thereafter,
the revenue limit reduction specified in Section 2558.46 may not
be applied to the amount of the increase or decrease to the revenue
limits of each county superintendent of schools computed pursuant
to paragraph (3).

(c) The Superintendent shall also subtract from the amount
determined in subdivision (a) the sum of all of the following:

(1) Local property tax revenues received pursuant to Section
2573 in the then current fiscal year, and tax revenues received
pursuant to Section 2556 in the then current fiscal year.

(2) State and federal categorical aid for the fiscal year.

(3) District contributions pursuant to Section 52321 for the fiscal
year, and other applicable local contributions and revenues.

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

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

(6) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.

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

(d) The remainder computed in subdivision (c) shall be
distributed in the same manner as state aid to school districts from
funds appropriated to Section A of the State School Fund.

(e) If the remainder determined pursuant to subdivision (c) is a
negative amount, no state aid shall be distributed to that county
superintendent of schools pursuant to subdivision (d), and an
amount of funds of that county superintendent of schools equal to
that negative amount shall be deemed restricted and not available
for expenditure during the current fiscal year. In the next fiscal
year, that amount shall be considered local property tax revenue
for purposes of the operation of paragraph (1) of subdivision (c).

(f) The calculations set forth in paragraphs (1) to (3), inclusive,
of subdivision (b) exclude employer contributions for employees
of charter schools funded pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4 of Title 2.

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

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

SEC. 5.  

Section 2574 of the Education Code is amended to
read:

2574.  

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

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

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

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

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

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

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

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

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school districts
for which the county superintendent of schools has jurisdiction
pursuant to Section 1253, charter schools authorized by school
districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013.

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

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

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

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

(ii) Zero.

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

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

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

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

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

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

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

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

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

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

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

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

SEC. 6.  

Section 2575 of the Education Code is amended to
read:

2575.  

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

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

(2) The sum of both of the following:

(A) The amount of funding received from appropriations
contained in Section 2.00 of the Budget Act of 2012, as adjusted
by Section 12.42, in the following items: 6110-104-0001,
6110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001, 2012-13
fiscal year funding for the Class Size Reduction Program pursuant
to Chapter 6.10 (commencing with Section 52120) of Part 28 of
Division 4 of Title 2, as that chapter read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (d)
of Section 48915.

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

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

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

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

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

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

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

(1) Local property tax revenues received pursuant to Section
2573 in the then current fiscal year.

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

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

(4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

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

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

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

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

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

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

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

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

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

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

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

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

(g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is less than the amount computed pursuant to subdivision (d),
in the first fiscal year following the fiscal year in which the sum
of the apportionments computed pursuant to subdivisions (e) and
(f) is equal to, or greater than, the amount computed pursuant to
subdivision (d) of this section, the Superintendent shall apportion
to the county superintendent of schools the amount computed in
subdivision (d) in that fiscal year and each fiscal year thereafter
instead of the amounts computed pursuant to subdivisions (e) and
(f).

(2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is greater than the amount computed pursuant to subdivision
(d), in the first fiscal year in which the amount computed pursuant
to subdivision (c) would be less than the amount computed pursuant
to subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d)
in that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).

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

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

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

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

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

(2) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

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

(k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school
transportation programs, the county superintendent of schools shall
expend, pursuant to Article 2 (commencing with Section 39820)
of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 10
(commencing with Section 41850) of Chapter 5 of Part 24 of
Division 3 of Title 2, and the Small School District Transportation
program, as set forth in Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of Division 3 of Title 2, no less for
those programs than the amount of funds the county superintendent
of schools expended for home-to-school transportation in the
2012-13 fiscal year.

(2) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(3) For the 2013-14 and 2014-15 fiscal years only, of the funds
a county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers
or programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a county office of education
may include expenditures made by a school district within the
county for purposes of regional occupational centers or programs
so long as the total amount of expenditures made by the school
districts and the county office of education equal or exceed the
total amount required to be expended for purposes of regional
occupational centers or programs pursuant to this paragraph and
paragraph (7) of subdivision (a) of Section 42238.03.

(l) The funds apportioned pursuant to this section and Section
2574 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.

SEC. 7.  

Section 2576 of the Education Code is amended to
read:

2576.  

(a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil
not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
of paragraph (4) of subdivision (c) of Section 2574, or Article 2.5
(commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2, any attendance generated by that pupil shall
be credited to the school district of residence. Enrollment of these
pupils shall be transferred to the school district of residence for
purposes of calculating the percentage of unduplicated pupils
pursuant to Section 42238.02.

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

SEC. 8.  

Section 8150.5 of the Education Code is amended to
read:

8150.5.  

Attendance of apprentices enrolled in any class
maintained by a local educational agency, pursuant to Section 3074
of the Labor Code, shall be reimbursed pursuant to Section 8152
only if reported separately to the Chancellor of the California
Community Colleges. Attendance reported pursuant to this section
shall be used only for purposes of calculating allowances pursuant
to Section 8152.

SEC. 9.  

Section 8151 of the Education Code is amended to
read:

8151.  

An apprentice attending a local educational agency in
classes of related and supplemental instruction as provided under
Section 3074 of the Labor Code and in accordance with the
requirements of subdivision (d) of Section 3078 of the Labor Code
shall be exempt from the requirements of any interdistrict
attendance agreement for those classes.

SEC. 10.  

Section 8152 of the Education Code is amended to
read:

8152.  

(a) The reimbursement rate shall be established in the
annual Budget Act and the rate shall be commonly applied to all
providers of instruction specified in subdivision (d).

(b) For purposes of this section, each hour of teaching time may
include up to 10 minutes of passing time and breaks.

(c) This section also applies to isolated apprentices, as defined
in Section 3074 of the Labor Code, for which alternative methods
of instruction are provided.

(d) The Chancellor of the California Community Colleges shall
make the reimbursements specified in this section for teaching
time provided by local educational agencies.

(e) The hours for related and supplemental instruction derived
from funds appropriated pursuant to subdivision (b) of Section
8150 shall be allocated by the Chancellor of California Community
Colleges directly to participating local educational agencies that
contract with apprenticeship programs pursuant to subdivision (f).

(f) Reimbursements may be made under this section for related
and supplemental instruction provided to indentured apprentices
only if the instruction is provided by a program approved by the
Division of Apprenticeship Standards in the Department of
Industrial Relations in accordance with Chapter 4 (commencing
with Section 3070) of Division 3 of the Labor Code.

(g) The initial allocation of hours made pursuant to subdivision
(e) for related and supplemental instruction at the beginning of
any fiscal year when multiplied by the hourly reimbursement rate
shall equal 100 percent of the total appropriation for
apprenticeships.

(h) If funds remain from the appropriation pursuant to
subdivision (b) of Section 8150, the Chancellor of the California
Community Colleges shall reimburse local educational agencies
for unfunded related and supplemental instruction hours from any
of the three previous fiscal years, in the following order:

(1) Reported related and supplemental instruction hours as
described in subdivision (b) of Section 8154 that were paid at a
rate less than the hourly rate specified in the Budget Act.

(2) Reported related and supplemental instruction hours that
were not reimbursed.

SEC. 11.  

Section 8154 of the Education Code is amended to
read:

8154.  

(a) The Chancellor of the California Community
Colleges, in consultation with the Division of Apprenticeship
Standards of the Department of Industrial Relations and the
Superintendent, shall annually review the amount of state funding
necessary to provide the reimbursements specified in Section 8152,
and shall include an estimate of required funds in its budget for
each fiscal year.

(b) If the amounts appropriated in any fiscal year are insufficient
to provide full reimbursement, the hourly rate specified pursuant
to Section 8152 shall be reduced on a pro rata basis only for
reported hours that are in excess of the number of hours allocated
at the beginning of the fiscal year so that the entire appropriation
is allocated.

(c) If the amount appropriated is in excess of the amounts needed
for full reimbursement pursuant to subdivision (h) of Section 8152,
any excess shall be allocated to local educational agencies to be
used for the purpose of the state general apportionment.

SEC. 12.  

Section 8155 of the Education Code is amended to
read:

8155.  

(a) The Chancellor of the California Community
Colleges and the Division of Apprenticeship Standards of the
Department of Industrial Relations, in consultation with the
Superintendent, shall jointly develop a model format for
agreements between apprenticeship programs and local educational
agencies for instruction pursuant to Section 3074 of the Labor
Code.

(b) By March 14, 2014, the Chancellor of the California
Community Colleges and the Division of Apprenticeship Standards
of the Department of Industrial Relations, with equal participation
by local educational agencies and community college
apprenticeship administrators, shall develop common
administrative practices and treatment of costs and services, as
well as other policies related to apprenticeship programs. Any
policies developed pursuant to the this subdivision shall become
operative upon approval by the California Apprenticeship Council.

(c) Apprenticeship programs offered through local educational
agencies may maintain their existing curriculum and instructors
separate from the requirements of the California Community
Colleges. The person providing instruction may be a qualified
journeyperson with experience and knowledge of the trade.

SEC. 13.  

Section 35736.5 of the Education Code is amended
to read:

35736.5.  

Sections 35735 to 35736, inclusive, shall only apply
to actions to reorganize school districts for which the order to
reorganize, pursuant to Section 35765, is appropriately filed after
December 1, 2013, pursuant to Section 54902 of the Government
Code. Actions to reorganize school districts for which the order
to reorganize is appropriately filed on or before December 1, 2013,
shall be implemented pursuant to Sections 35735 to 35736,
inclusive, as those sections read on January 1, 2013.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 41329.575 is added to the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

begin insert 41329.575. end insert   

(a) (1) Pursuant to a schedule provided to the
Controller by the bank, commencing with the 2013-14 fiscal year,
the Controller shall transfer from Section A of the State School
Fund and the Education Protection Account the amount of funds
necessary to pay the warrants issued pursuant to paragraph (3)
so that the effective cost of the lease financing for each fiscal year
from 2013-14 to 2029-30, inclusive, provided to the South
Monterey County Joint Union High School District pursuant to
Chapter 20 of the Statues of 2009 shall be equal to the cost of
providing an emergency General Fund cashflow loan to the South
Monterey County Joint Union High School District for each fiscal
year from 2013-14 to 2029-30, inclusive.

(2) For purposes of determining the cost of providing an
emergency General Fund cashflow loan to the South Monterey
County Joint Union High School District for fiscal years 2013-14
to 2029-30, inclusive, for the South Monterey County Joint Union
High School District, the original interest rate is equal to the
annual rate of return earned by the Pooled Money Investment
Account for the applicable fiscal year, plus an additional 2 percent.
This rate shall also apply to disbursements of the loan pursuant
to Chapter 20 of the Statutes of 2009 that are subsequent to
September 15, 2013.

(3) The executive director or chair of the bank shall periodically
provide a schedule to the Controller and the South Monterey
County Joint Union High School District of the actual amount of
the difference between the annual cost of the lease financing
compared to the annual cost of providing the South Monterey
County Joint Union High School District with an emergency
General Fund cashflow loan for each applicable fiscal year and
the Controller shall issue warrants to the South Monterey County
Joint Union High School District pursuant to the schedule.
Payments to the South Monterey County Joint Union High School
District shall occur only during the term of the loan for the South
Monterey County Joint Union High School District and shall be
made no sooner than the corresponding payments are made to the
bond trustee under the lease financing for the South Monterey
County Joint Union High School District.

(4) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the warrants
issued pursuant to paragraph (3) are “General Fund revenues
appropriated for school districts,” as defined in subdivision (c)
of Section 41202 for the fiscal years in which the warrants are
issued and included within the “total allocations to school districts
and community college districts from General Fund proceeds of
taxes appropriated pursuant to Article XIII B,” as defined in
subdivision (e) of Section 41202, for the fiscal years in which the
warrants are issued.

(b) It is the intent of the Legislature that the financing cost
subsidies funded in this section not be deemed precedent nor in
conflict with Chapter 20 of the Statutes of 2009.

end insert

begin delete SEC. 14. end delete
begin insert SEC. 15. end insert   

Section 41365 of the Education Code is amended to
read:

41365.  

(a) The Charter School Revolving Loan Fund is hereby
created in the State Treasury. The Charter School Revolving Loan
Fund shall be composed of federal funds obtained by the state for
charter schools and any other funds appropriated or transferred to
the fund through the annual budget process. Funds appropriated
to the Charter School Revolving Loan Fund shall remain available
for purposes of the fund until reappropriated or reverted by the
Legislature through the annual Budget Act or any other act.

(b) Commencing with the 2013-14 fiscal year, the
administration of the Charter School Revolving Loan Fund shall
be transferred to the California School Finance Authority.

(c) Loans may be made from moneys in the Charter School
Revolving Loan Fund to a chartering authority for charter schools
that are not a conversion of an existing school, or directly to a
charter school that qualifies to receive funding pursuant to Chapter
6 (commencing with Section 47630) of Part 26.8 of Division 4
that is not a conversion of an existing school, upon application of
a chartering authority or charter school and approval by the
California School Finance Authority. Money loaned to a chartering
authority for a charter school, or to a charter school, pursuant to
this section shall be used only to meet the purposes of the charter
granted pursuant to Section 47605. The loan to a chartering
authority for a charter school, or to a charter school, pursuant to
this subdivision shall not exceed two hundred fifty thousand dollars
($250,000) over the lifetime of the charter school. A charter school
may receive money obtained from multiple loans made directly
to the charter school or to the school’s chartering authority from
the Charter School Revolving Loan Fund, as long as the total
amount received from the fund over the lifetime of the charter
school does not exceed two hundred fifty thousand dollars
($250,000). This subdivision does not apply to a charter school
that obtains renewal of a charter pursuant to Section 47607.

(d) The California School Finance Authority may consider all
of the following when making a determination as to the approval
of a charter school’s loan application:

(1) Soundness of the financial business plans of the applicant
charter school.

(2) Availability of the charter school of other sources of funding.

(3) Geographic distribution of loans made from the Charter
School Revolving Loan Fund.

(4) The impact that receipt of funds received pursuant to this
section will have on the charter school’s receipt of other private
and public financing.

(5) Plans for creative uses of the funds received pursuant to this
section, such as loan guarantees or other types of credit
enhancements.

(6) The financial needs of the charter school.

(e) Priority for loans from the Charter School Revolving Loan
Fund shall be given to new charter schools for startup costs.

(f) Commencing with the first fiscal year following the fiscal
year the charter school receives the loan, the Controller shall deduct
from apportionments made to the chartering authority or charter
school, as appropriate, an amount equal to the annual repayment
of the amount loaned to the chartering authority or charter school
for the charter school under this section and pay the same amount
into the Charter School Revolving Loan Fund in the State Treasury.
Repayment of the full amount loaned to the chartering authority
or charter school shall be deducted by the Controller in equal
annual amounts over a number of years agreed upon between the
loan recipient and the state agency authorized to administer the
Charter School Revolving Loan Fund and the Charter School
Security Fund, not to exceed five years for any loan.

(g) (1) Notwithstanding any other law, a loan may be made
directly to a charter school pursuant to this section only in the case
of a charter school that is incorporated.

(2) Notwithstanding any other law, in the case of default of a
loan made directly to a charter school pursuant to this section, the
charter school shall be solely liable for repayment of the loan.

(h) The California School Finance Authority may adopt any
necessary rules and regulations for the implementation of this
section and Sections 41366.6 and 41367. Any regulations adopted
pursuant to this section may be adopted as emergency regulations
in accordance with the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code). The adoption of these regulations
shall be deemed to be an emergency and necessary for the
immediate preservation of public peace, health and safety, or
general welfare.

begin delete SEC. 15. end delete
begin insert SEC. 16. end insert   

Section 41367 of the Education Code is amended to
read:

41367.  

(a) The Charter School Security Fund is hereby created
in the State Treasury.

(b) Moneys in the fund shall be available for deposit into the
Charter School Revolving Loan Fund in case of default on any
loan made from the Charter School Revolving Loan Fund.

(c) Commencing with the 2013-14 fiscal year, the administration
of the Charter School Security Fund shall be transferred to the
California School Finance Authority.

begin delete SEC. 16. end delete
begin insert SEC. 17. end insert   

Section 42127 of the Education Code is amended to
read:

42127.  

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

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

(A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

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

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

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

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

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

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

(2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update to
an existing local control and accountability plan for the budget
year is approved.

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

(1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

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

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the school district pursuant to Section
52061, the county superintendent of schools shall not call for the
formation of a budget review committee pursuant to Section
42127.1.

(h) Not later than October 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to paragraph (1) of subdivision (d).

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

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

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

(3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. Except as provided in paragraph (2) of subdivision (g), if
the county superintendent of schools disapproves the budget, he
or she shall call for the formation of a budget review committee
pursuant to Section 42127.1, unless the governing board of the
school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed
and the department approves the waiver after determining that a
budget review committee is not necessary. Upon the grant of a
waiver, the county superintendent has the authority and
responsibility provided to a budget review committee in Section
42127.3. Upon approving a waiver of the budget review committee,
the department shall ensure that a balanced budget is adopted for
the school district by November 30. The Superintendent shall
report to the Legislature and the Director of Finance by December
10 if any school district, including a school district that has received
a waiver of the budget review committee process, does not have
an adopted budget by November 30. This report shall include the
reasons why a budget has not been adopted by the deadline, the
steps being taken to finalize budget adoption, and the date the
adopted budget is anticipated. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent
of schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of revenue
per unit of average daily attendance than it received in the 2010-11
fiscal year nor require the school district to demonstrate that it is
able to meet its financial obligations for the two subsequent fiscal
years.

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

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

begin insert

begin insert SEC. 17.5. end insert   

end insert

begin insert Section 42127 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.  

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

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

(A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

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

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

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

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

(3) Determine whether the adopted budget includes the
expenditures necessary to implement the local control and
accountability plan or annual update to the local control and
accountability plan approved by the county superintendent of
begin delete schools. end delete begin insert schools and whether those expenditures comply with the
regulations adopted pursuant to Section 42238.07. end insert

(d)  begin insert (1) end insert begin insert   end insert On or before August 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal
year and each fiscal year thereafter, the county superintendent of
schools shall disapprove a budget if the county superintendent of
schools determines that the budget does not include the
expenditures necessary to implement a local control and
accountability plan or an annual update to the local control and
accountability plan approved by the county superintendent of
begin delete schools. end delete begin insert schools or does not comply with the regulations adopted
pursuant to Section 42238.07. end insert If a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district expense,
a budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district.
The approved budget shall be used as a guide for the school
district’s priorities. The Superintendent shall review and certify
the budget approved by the county. If, pursuant to the review
conducted pursuant to subdivision (c), the county superintendent
of schools determines that the adopted budget for a school district
does not satisfy paragraph begin delete (1) or (2) end delete begin insert (1), (2), or (3) end insert of that
subdivision, he or she shall conditionally approve or disapprove
the budget and, not later than August 15, transmit to the governing
board of the school district, in writing, his or her recommendations
regarding revision of the budget and the reasons for those
recommendations, including, but not limited to, the amounts of
any budget adjustments needed before he or she can approve that
budget. The county superintendent of schools may assign a fiscal
adviser to assist the school district to develop a budget in
compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine
and comment on the superintendent’s review and recommendations,
subject to the requirement that the committee report its findings
to the county superintendent of schools no later than August 20.
For the 2011-12 fiscal year, notwithstanding any of the standards
and criteria adopted by the state board pursuant to Section 33127,
the county superintendent of schools, as a condition on approval
of a school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial obligations
for the two subsequent fiscal years.

begin insert

(2) Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update
to an existing local control and accountability plan for the budget
year is approved.

end insert

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

(1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

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

begin insert

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the school district pursuant to Section
52061, the county superintendent of schools shall not call for the
formation of a budget review committee pursuant to Section
42127.1.

end insert

(h) Not later than October 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to begin insert paragraph (1) of end insert subdivision (d).

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

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

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

(3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. begin delete If end delete begin insert Except as provided in paragraph (2) of subdivision (g),
if end insert the county superintendent of schools disapproves the budget, he
or she shall call for the formation of a budget review committee
pursuant to Section 42127.1, unless the governing board of the
school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed
and the department approves the waiver after determining that a
budget review committee is not necessary. Upon the grant of a
waiver, the county superintendent has the authority and
responsibility provided to a budget review committee in Section
42127.3. Upon approving a waiver of the budget review committee,
the department shall ensure that a balanced budget is adopted for
the school district by November 30. The Superintendent shall
report to the Legislature and the Director of Finance by December
10 if any school district, including a school district that has received
a waiver of the budget review committee process, does not have
an adopted budget by November 30. This report shall include the
reasons why a budget has not been adopted by the deadline, the
steps being taken to finalize budget adoption, and the date the
adopted budget is anticipated. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent
of schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of revenue
per unit of average daily attendance than it received in the 2010-11
fiscal year nor require the school district to demonstrate that it is
able to meet its financial obligations for the two subsequent fiscal
years.

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

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

begin delete SEC. 17. end delete
begin insert SEC. 18. end insert   

Section 42238.01 of the Education Code is amended
to read:

42238.01.  

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

(a) “Eligible for free or reduced-price meals” means determined
to meet federal income eligibility criteria or deemed to be
categorically eligible for free or reduced-price meals under the
National School Lunch Program, as described in Part 245 of Title
7 of the Code of Federal Regulations.

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

(1) He or she has attained 18 years of age while under an order
of foster care placement by the juvenile court, and is not more than
19 years of age on or after January 1, 2012, not more than 20 years
of age on or after January 1, 2013, and not more than 21 years of
age, on or after January 1, 2014, and as described in Section
10103.5 of the Welfare and Institutions Code.

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

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

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

begin delete SEC. 18. end delete
begin insert SEC. 19. end insert   

Section 42238.02 of the Education Code is amended
to read:

42238.02.  

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

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

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

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

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

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

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English learner
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.

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

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

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, and free or reduced-price meal eligible pupil
counts to ensure the accuracy of data reflected in the California
Longitudinal Pupil Achievement Data System.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

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

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

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district’s or
charter school’s total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the total enrollment in that school district or charter
school.

(2) For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school’s percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the school districts in which the charter school
has a school facility. The concentration grant shall be expended
in accordance with the regulations adopted pursuant to Section
42238.07.

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

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

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

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

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

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

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

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

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

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

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

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

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

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

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

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

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

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

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

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

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or the amount computed pursuant to subparagraph
(B).

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

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to, this
section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.

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

begin delete SEC. 19. end delete
begin insert SEC. 20. end insert   

Section 42238.025 of the Education Code is amended
to read:

42238.025.  

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

(1) (A) For each school district, the school district’s revenue
limit in the 2012-13 fiscal year as computed pursuant to this article,
as this article read on January 1, 2013, divided by the 2012-13
fiscal year average daily attendance of the school district computed
pursuant to Section 42238.05. For purposes of this section, average
daily attendance shall include any applicable revenue limit average
daily attendance and shall be considered final for purposes of this
section as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.

(B) For each charter school, the charter school’s general purpose
funding as computed pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the in-lieu property tax amount
provided to the charter school pursuant to Section 47635, as that
section read on January 1, 2013, divided by the 2012-13 fiscal
year average daily attendance of the charter school computed
pursuant to Section 42238.05. For purposes of this section, average
daily attendance shall include any applicable charter school general
purpose funding average daily attendance and shall be considered
final for purposes of this section as of the annual apportionment
for the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant to
Sections 41332 and 41339.

(C) The amounts determined pursuant to subparagraphs (A) and
(B) shall not reflect the deficit factor adjustments set forth in
Section 42238.146 as that section read on January 1, 2013.

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

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

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

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

(c) The Superintendent shall compute a 2020-21 fiscal year
local control funding formula rate for each school district and
charter school equal to the amount computed pursuant to Section
42238.02 for the 2013-14 fiscal year, adjusted for an annual
average cost-of-living adjustment of 1.94 percent for the 2014-15
fiscal year to the 2020-21 fiscal year, inclusive, divided by the
2012-13 fiscal year average daily attendance of the school district
or charter school computed pursuant to Section 42238.05.

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

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

(A) For the 2013-14 fiscal year, one-eighth of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(B) For the 2014-15 fiscal year, two-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(C) For the 2015-16 fiscal year, three-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(D) For the 2016-17 fiscal year, four-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(E) For the 2017-18 fiscal year, five-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(F) For the 2018-19 fiscal year, six-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(G) For the 2019-20 fiscal year, seven-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(H) For the 2020-21 fiscal year and each fiscal year thereafter,
the amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant
to Section 42238.05.

(3) In each fiscal year until a determination has been made that
all school districts and charter schools equal or exceed the local
control funding formula target computed pursuant to Section
42238.02, as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
the economic recovery target payment apportioned to each eligible
school district or charter school pursuant to paragraph (2) shall be
added to the school district’s or charter school’s funding amounts
that are continuously appropriated pursuant to subdivision (a) of
Section 42238.03 and included in the amount of funding that may
be offset pursuant to subdivision (c) of Section 42238.03. The
amount apportioned pursuant to paragraph (2) shall not receive a
cost-of-living adjustment.

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

begin delete SEC. 20. end delete
begin insert SEC. 21. end insert   

Section 42238.03 of the Education Code is amended
to read:

42238.03.  

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

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

(A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district’s
2012-13 fiscal year revenue limit funding shall exclude amounts
computed pursuant to Article 4 (commencing with Section 42280).

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

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

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, funding for qualifying necessary small
high school and necessary small elementary schools shall be
adjusted to reflect the funding levels that correspond to the 2012-13
necessary small high school and necessary small elementary school
allowances pursuant Article 4 (commencing with Section 42280)
and Section 42238.146, as those provisions read on January 1,
2013.

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

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

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

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

(B) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

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

(ii) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(B) In addition to subparagraph (A), of the funds a school district
receives for home-to-school transportation programs the school
district shall expend, pursuant to Article 2 (commencing with
Section 39820) of Chapter 1 of Part 23.5, Article 10 (commencing
with Section 41850) of Chapter 5, and the Small School District
Transportation program, as set forth in Article 4.5 (commencing
with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title
2, no less for those programs than the amount of funds the school
district expended for home-to-school transportation in the 2012-13
fiscal year.

(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
a school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district
expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a school district may include
expenditures made by its county office of education within the
school district for purposes of regional occupational centers or
programs so long as the total amount of expenditures by the school
district and the county office of education equal or exceed the total
amount required to be expended for purposes of regional
occupational centers or programs pursuant to this paragraph and
paragraph (3) of subdivision (k) of Section 2575.

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

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

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

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

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

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

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

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

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

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

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

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

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

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

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

(e) Notwithstanding the computations pursuant to subdivisions
(b) to (d), inclusive, and Section 42238.02, commencing with the
2013-14 fiscal year, a school district or charter school shall receive
state-aid funding of no less than the sum of the amounts computed
pursuant to paragraphs (1) to (3), inclusive.

(1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district’s
2012-13 revenue limit funding shall exclude amounts computed
pursuant to Article 4 (commencing with Section 42280).

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

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

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, the 2012-13 funding allowance
provided for qualifying necessary small high schools and necessary
small elementary schools pursuant to Article 4 (commencing with
Section 42280) and Section 42238.146, as those provisions read
on January 1, 2013.

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

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

(B) The Superintendent shall annually apportion any entitlement
provided to the state special schools from the items specified in
subparagraph (A) to the state special schools in the same amount
as the state special schools received from those items in the
2012-13 fiscal year.

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

(f) (1) For purposes of this section, commencing with the
2013-14 fiscal year and until all school districts and charter schools
equal or exceed their local control funding formula target computed
pursuant to Section 42238.02, as determined by the calculation of
a zero difference pursuant to paragraph (1) of subdivision (b), a
newly operational charter school shall be determined to have a
prior year per average daily attendance funding amount equal to
the lesser of:

(A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement,
calculated pursuant to subdivisions (a) and (b), received by that
school district in the prior year by prior year funded average daily
attendance of that school district. For purposes of this
subparagraph, a charter school that is physically located in more
than one school district shall use the calculated local control
funding entitlement per unit of average daily attendance of the
school district with the highest prior year funding amount per unit
of average daily attendance.

(B) The charter school’s local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.

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

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

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

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

begin delete SEC. 21. end delete
begin insert SEC. 22. end insert   

Section 42238.05 of the Education Code is amended
to read:

42238.05.  

(a) For purposes of Sections 42238.02, 42238.025,
and 42238.03, the fiscal year average daily attendance for a school
district shall be computed pursuant to paragraphs (1) to (3),
inclusive, as applicable.

(1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater, excluding units of average daily attendance resulting from
pupils attending schools funded pursuant to Article 4 (commencing
with Section 42280).

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

(3) Prior fiscal year average daily attendance shall be adjusted
for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.

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

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

(d) Subdivisions (a) to (c), inclusive, shall only apply to average
daily attendance generated by school districts and shall not apply
to average daily attendance generated by charter schools.

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

(f) For purposes of Sections 42238.02, 42238.025, and 42238.03,
average daily attendance for a charter school shall be the total
current year average daily attendance in the corresponding grade
level ranges for the charter school as computed pursuant to Section
47634.3.

begin delete SEC. 22. end delete
begin insert SEC. 23. end insert   

Section 42238.20 of the Education Code is amended
to read:

42238.20.  

(a) Notwithstanding any other law, commencing in
the 2008-09 fiscal year, the minimum schoolday for a pupil
concurrently enrolled in regular secondary school classes and
classes operating pursuant to a joint powers agreement that became
effective before January 1, 2008, is 180 minutes. These regular
secondary school classes constitute regular school classes for the
purposes of Section 46010.3.

(b) For a pupil described in subdivision (a), the average daily
attendance shall be included as school district average daily
attendance computed pursuant to Section 42238.5.

(c) For purposes of computing attendance pursuant to Section
46300 or any other law, immediate supervision and control of
pupils while attending classes pursuant to a joint powers agreement
described in subdivision (a) is deemed satisfied regardless of the
school district employing the certificated employee providing the
supervision and control, provided the school district is a party to
the joint powers agreement.

(d) This section shall become inoperative on July 1, 2017, and,
as of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

begin delete SEC. 23. end delete
begin insert SEC. 24. end insert   

Section 42283 of the Education Code is amended to
read:

42283.  

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

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

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

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

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

begin delete SEC. 24. end delete
begin insert SEC. 25. end insert   

Section 42284 of the Education Code is amended to
read:

42284.  

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

 

Average daily attendance	Minimum number of certificated employees	Amount to be computed
1- 19	less than 3	$42,980
		per teacher
1- 19	3	191,340
20- 38	4	234,320
39- 57	5	277,300
58- 71	6	320,280
72- 86	7	363,260
87- 100	8	406,240
101-114	9	449,220
115-129	10	492,200
130-143	11	535,180
144-171	12	578,160
172-210	13	621,140
211-248	14	664,120
249-286	15	707,100

 

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

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

begin delete SEC. 25. end delete
begin insert SEC. 26. end insert   

Section 42285 of the Education Code is amended to
read:

42285.  

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

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

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

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

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

(C) The high school had an average daily attendance of 144 or
more and less than 192 in grades 9 to 12, inclusive, during the
preceding fiscal year and is more than 71⁄2 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 15 miles or 25 percent of
the pupils would be required to travel 20 miles one way from a
point on a well-traveled road nearest their homes to the nearest
other public high school.

(D) The high school had an average daily attendance of 192 or
more and less than 287 in grades 9 to 12, inclusive, during the
preceding fiscal year and is more than 5 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 10 miles or 25 percent of
the pupils would be required to travel 15 miles to the nearest other
public high school.

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

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

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

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

(d) For purposes of this section, “other public high school” is
a public school, including a charter school, that serves any of
grades 9 to 12, inclusive.

begin delete SEC. 26. end delete
begin insert SEC. 27. end insert   

Section 42285.5 of the Education Code is repealed.

begin delete SEC. 27. end delete
begin insert SEC. 28. end insert   

Section 42287 of the Education Code is amended to
read:

42287.  

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

(b) Commencing with the 2013-14 fiscal year, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284, as previously increased
pursuant to subdivision (a) and Sections 42289 to 42289.5,
inclusive, by the percentage calculated pursuant to paragraph (2)
of subdivision (d) of Section 42238.02, subject to the criteria
specified in paragraph (5) of subdivision (b) of Section 42238.03,
for the then current fiscal year.

begin delete SEC. 28. end delete
begin insert SEC. 29. end insert   

Section 46200 of the Education Code is amended to
read:

46200.  

For a school district that received an apportionment
pursuant to subdivision (a) of this section, as it read on January 1,
2013, and that offers less than 180 days of instruction or, in
multitrack year-round schools, fewer than the number of days
required in subdivision (a) of this section, as it read on January 1,
2013, in the 2013-14 fiscal year, or any fiscal year thereafter, the
Superintendent shall withhold from the school district’s local
control funding formula grant apportionment pursuant to Section
42238.02, as implemented by Section 42238.03, for the average
daily attendance of each affected grade level the sum of 0.0056
multiplied by that apportionment for each day less than what was
required in subdivision (a) of this section, as it read on January 1,
2013, up to a maximum of five days.

begin delete SEC. 29. end delete
begin insert SEC. 30. end insert   

Section 46201 of the Education Code is amended to
read:

46201.  

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

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

(1) Thirty-six thousand minutes in kindergarten.

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

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

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

begin delete SEC. 30. end delete
begin insert SEC. 31. end insert   

Section 46202 of the Education Code is amended to
read:

46202.  

If a school district that does not participate in the
program set forth in Sections 46200 to 46206, inclusive, as those
sections read on January 1, 2013, offers less instructional time in
a fiscal year than the amount of instructional time fixed for the
1982-83 fiscal year, the Superintendent shall withhold for that
fiscal year, from the school district’s local control funding formula
grant apportionment pursuant to Section 42238.02, as implemented
by Section 42238.03, for the average daily attendance of each
affected grade level, the amount of that apportionment multiplied
by the percentage of instructional minutes fixed in the 1982-83
school year, at that grade level, that the school district failed to
offer.

begin delete SEC. 31. end delete
begin insert SEC. 32. end insert   

Section 46208 of the Education Code is amended to
read:

46208.  

(a) Notwithstanding Sections 46200 to 46205,
inclusive, upon a determination that a school district equals or
exceeds its local control funding formula target computed pursuant
to Section 42238.02 as determined by the calculation of a zero
difference pursuant to paragraph (1) of subdivision (b) of Section
42238.03, each school district, as a condition of apportionment
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03, shall offer 180 days or more of instruction per school
year. A school operating as a multitrack year-round school shall
be deemed to be in compliance with the 180-day requirement if it
certifies to the Superintendent that it is a multitrack year-round
school and maintains its school for a minimum of 163 schooldays.

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

(c) For a school district that has met its local control funding
formula target and that offers fewer than the number of
instructional days required pursuant to this section, the
Superintendent shall withhold from the school district’s local
control funding formula grant apportionment pursuant to Section
42238.02, as implemented by Section 42238.03, for the average
daily attendance of each affected grade level, the sum of 0.0056
multiplied by that apportionment for each day less than what was
required pursuant to this section, for up to five days.

begin delete SEC. 32. end delete
begin insert SEC. 33. end insert   

Section 47612 of the Education Code is amended to
read:

47612.  

(a) A charter school shall be deemed to be under the
exclusive control of the officers of the public schools for purposes
of Section 8 of Article IX of the California Constitution, with
regard to the appropriation of public moneys to be apportioned to
any charter school, including, but not necessarily limited to,
appropriations made for purposes of this chapter.

(b) The average daily attendance in a charter school may not,
in any event, be generated by a pupil who is not a California
resident. To remain eligible for generating charter school
apportionments, a pupil over 19 years of age shall be continuously
enrolled in public school and make satisfactory progress towards
award of a high school diploma. The state board shall, on or before
January 1, 2000, adopt regulations defining “satisfactory progress.”

(c) A charter school shall be deemed to be a “school district”
for purposes of Article 1 (commencing with Section 14000) of
Chapter 1 of Part 9 of Division 1 of Title 1, Section 41301, Section
41302.5, Article 10 (commencing with Section 41850) of Chapter
5 of Part 24 of Division 3, Section 47638, and Sections 8 and 8.5
of Article XVI of the California Constitution.

(d) For purposes of calculating average daily attendance, no
pupil shall generate more than one day of attendance in a calendar
day. Notwithstanding any other law, a charter school that operates
a multitrack calendar shall comply with all of the following:

(1) Calculate attendance separately for each track. The divisor
in the calculation shall be the calendar days in which school was
taught for pupils in each track.

(2) Operate no more than five tracks.

(3) Operate each track for a minimum of 175 days. If the charter
school is a conversion school, the charter school may continue its
previous schedule as long as it provides no fewer than 163 days
of instruction in each track.

(4) For each track, provide the total number of instructional
minutes, as specified in Section 47612.5.

(5) No track shall have less than 55 percent of its schooldays
before April 15.

(6) Unless otherwise authorized by statute, no pupil shall
generate more than one unit of average daily attendance in a fiscal
year.

(e) Compliance with the conditions set forth in this section shall
be included in the audits conducted pursuant to Section 41020.

begin delete SEC. 33. end delete
begin insert SEC. 34. end insert   

Section 47614.5 of the Education Code is amended
to read:

47614.5.  

(a) The Charter School Facility Grant Program is
hereby established, and, commencing with the 2013-14 fiscal year,
shall be administered by the California School Finance Authority.
The grant program is intended to provide assistance with facilities
rent and lease costs for pupils in charter schools.

(b) Subject to the annual Budget Act, eligible schools shall
receive an amount of up to, but not more than, seven hundred fifty
dollars ($750) per unit of average daily attendance, as certified at
the second principal apportionment, to provide an amount of up
to, but not more than, 75 percent of the annual facilities rent and
lease costs for the charter school. In any fiscal year, if the funds
appropriated for the purposes of this section by the annual Budget
Act are insufficient to fund the approved amounts fully, the
California School Finance Authority shall apportion the available
funds on a pro rata basis.

(c) For purposes of this section, the California School Finance
Authority shall do all of the following:

(1) Inform charter schools of the grant program.

(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced-price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility. Charter schoolsite
are eligible for funding pursuant to this section if the charter
schoolsite meets either of the following conditions:

(A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or reduced-price meals and
the schoolsite gives a preference in admissions to pupils who are
currently enrolled in that public elementary school and to pupils
who reside in the elementary school attendance area where the
charter schoolsite is located.

(B) Seventy percent or more of the pupil enrollment at the
charter schoolsite is eligible for free or reduced-price meals.

(3) Inform charter schools of their grant eligibility.

(4) Commencing with the 2013-14 fiscal year, make
apportionments to a charter school for eligible expenditures
according to the following schedule:

(A) An initial apportionment by August 31 of each fiscal year
or 30 days after enactment of the annual Budget Act, whichever
is later, provided the charter school has submitted a timely
application for funding, as determined by the California School
Finance Authority. The initial apportionment shall be 50 percent
of the school’s estimated annual entitlement as determined by this
section.

(B) A second apportionment by March 1 of each fiscal year.
This apportionment shall be 75 percent of the charter school’s
estimated annual entitlement, as adjusted for any revisions in cost,
enrollment, and other data relevant to computing the charter
school’s annual entitlement, less any funding already apportioned
to the charter school.

(C) A third apportionment within 30 days of the end of each
fiscal year or 30 days after receiving the data and documentation
needed to compute the charter school’s total annual entitlement,
whichever is later. This apportionment shall be the charter school’s
total annual entitlement less any funding already apportioned to
the charter school.

(D) Notwithstanding subparagraph (A), the initial apportionment
in the 2013-14 fiscal year shall be made by October 15, 2013, or
105 days after enactment of the Budget Act of 2013, whichever is
later.

(d) For the purposes of this section:

(1) The California School Finance Authority shall use prior year
data on pupil eligibility for free or reduced-price meals for the
charter schoolsite and prior year rent or lease costs provided by
charter schools to determine eligibility for the grant program until
current year data and actual rent or lease costs become known or
until June 30 of each fiscal year.

(2) If prior year rent or lease costs are unavailable, and the
current year lease and rent costs are not immediately available,
the California School Finance Authority shall use rent or lease
cost estimates provided by the charter school.

(3) The California School Finance Authority shall verify that
the grant amount awarded to each charter school is consistent with
eligibility requirements as specified in this section and in
regulations adopted by the authority. If it is determined by the
California School Finance Authority that a charter school did not
receive the proper grant award amount, either the charter school
shall transfer funds back to the authority as necessary within 60
days of being notified by the authority, or the authority shall
provide an additional apportionment as necessary to the charter
school within 60 days of notifying the charter school, subject to
the availability of funds.

(e) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:

(1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (d) of Section 47612.5 or that does not comply with
conditions or limitations set forth in regulations adopted by the
state board pursuant to this section.

(2) Charter schools occupying existing school district or county
office of education facilities, except that charter schools shall be
eligible for the portions of their facilities that are not existing
school district or county office of education facilities.

(3) Charter schools receiving reasonably equivalent facilities
from their chartering authorities pursuant to Section 47614, except
that charter schools shall be eligible for the portions of their
facilities that are not reasonably equivalent facilities received from
their chartering authorities.

(f) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent with
the definitions used in the California School Accounting Manual
or regulations adopted by the California School Finance Authority.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred
maintenance, initially installing or extending service systems and
other built-in equipment, and improving sites.

(g) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment
is eligible for free or reduced-price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.

(h) The California School Finance Authority annually shall
report to the department and the Director of Finance, and post
information on its Internet Web site, regarding the use of funds
that have been made available during the fiscal year to each charter
school pursuant to the grant program.

(i) The California School Finance Authority, commencing with
the 2013-14 fiscal year, shall annually allocate the facilities grants
to eligible charter schools according to the schedule in paragraph
(4) of subdivision (c) for the current school year rent and lease
costs. However, the California School Finance Authority shall first
use the funding appropriated for this program to reimburse eligible
charter schools for unreimbursed rent or lease costs for the prior
school year.

(j) It is the intent of the Legislature that the funding level for
the Charter School Facility Grant Program for the 2012-13 fiscal
year be considered the base level of funding for subsequent fiscal
years.

(k) The Controller shall include instructions appropriate to the
enforcement of this section in the audit guide required by
subdivision (a) of Section 14502.1.

(l) The California School Finance Authority, effective with the
2013-14 fiscal year, shall be considered the senior creditor for
purposes of satisfying audit findings pursuant to the audit
instructions to be developed pursuant to subdivision (k).

(m) The California School Finance Authority may adopt
regulations to implement this section. Any regulations adopted
pursuant to this section may be adopted as emergency regulations
in accordance with the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of the
Title 2 of the Government Code). The adoption of these regulations
shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.

begin delete SEC. 34. end delete
begin insert SEC. 35. end insert   

Section 47631 of the Education Code is amended to
read:

47631.  

(a) Article 3 (commencing with Section 47636) shall
not apply to a charter granted pursuant to Section 47605.5.

(b) A charter school authorized pursuant to Section 47605.5
shall receive the average daily attendance rate calculated pursuant
to paragraph (1) of subdivision (c) of Section 2574 for enrolled
pupils who are identified as any of the following:

(1) Probation-referred pursuant to Section 300, 601, 602, or 654
of the Welfare and Institutions Code.

(2) On probation or parole and not attending a school.

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

(c) A charter school authorized pursuant to Section 47605.5
shall be funded pursuant to the local control funding formula
pursuant to Section 42238.02, as implemented by Section 42238.03,
for all pupils except for pupils funded pursuant to subdivision (b).

begin delete SEC. 35. end delete
begin insert SEC. 36. end insert   

Section 47633 of the Education Code is amended to
read:

47633.  

The Superintendent shall annually compute a
general-purpose entitlement, funded from a combination of state
aid and local funds, for each charter school as follows:

(a) The Superintendent shall annually compute the statewide
average amount of general-purpose funding per unit of average
daily attendance received by school districts for each of four grade
level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and
6; grades 7 and 8; and, grades 9 to 12, inclusive. For purposes of
making these computations, both of the following conditions shall
apply:

(1) Revenue limit funding attributable to pupils in kindergarten
and grades 1 to 5, inclusive, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by elementary school districts; revenue limit funding attributable
to pupils in grades 6, 7, and 8, shall equal the statewide average
revenue limit funding per unit of average daily attendance received
by unified school districts; and revenue limit funding attributable
to pupils in grades 9 to 12, inclusive, shall equal the statewide
average revenue limit funding per unit of average daily attendance
received by high school districts.

(2) Revenue limit funding received by school districts shall
exclude the value of any benefit attributable to the presence of
necessary small schools or necessary small high schools within
the school district.

(b) The Superintendent shall multiply each of the four amounts
computed in subdivision (a) by the charter school’s average daily
attendance in the corresponding grade level ranges. The resulting
figure shall be the amount of the charter school’s general-purpose
entitlement, which shall be funded through a combination of state
aid and local funds. From funds appropriated for this purpose
pursuant to Section 14002, the superintendent shall apportion to
each charter school this amount, less local funds allocated to the
charter school pursuant to Section 47635 and any amount received
pursuant to subparagraph (B) of paragraph (3) of subdivision (e)
of Section 36 of Article XIII of the California Constitution.

(c) General-purpose entitlement funding may be used for any
public school purpose determined by the governing body of the
charter school.

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

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

begin delete SEC. 36. end delete
begin insert SEC. 37. end insert   

Section 48664 of the Education Code is amended to
read:

48664.  

(a) (1) In addition to funds from all other sources, the
Superintendent shall apportion to each school district that operates
a community day school four thousand dollars ($4,000) per year,
and for each county office of education that operates a community
day school three thousand dollars ($3,000) per year, for each unit
of average daily attendance reported at the annual apportionment
for pupil attendance at community day schools, adjusted annually
commencing with the 1999-2000 fiscal year for the inflation
adjustment calculated pursuant to subdivision (b) of Section
42238.1. Average daily attendance reported for this program shall
not exceed 0.375 percent of a school district’s prior year P2 average
daily attendance in an elementary school district, 0.5 percent of a
school district’s prior year P2 average daily attendance in a unified
school district, or 0.625 percent of a school district’s prior year P2
average daily attendance in a high school district. The units of
average daily attendance of a community day school operated by
a county office of education shall not exceed the unused units of
average daily attendance of the community day schools operated
by the school districts within the jurisdiction of that county office
of education.

(2) The Superintendent may reallocate to any school district
any unexpended balance of the appropriations made for purposes
of this subdivision for actual pupil attendance in excess of the
percentage specified in this subdivision for the school district in
an amount not to exceed one-half of that percentage. However,
the average daily attendance generated by pupils expelled pursuant
to subdivision (d) of Section 48915, shall not be subject to these
percentage caps on average daily attendance.

(b) The average daily attendance of a community day school
shall be determined by dividing the total number of days of
attendance in all full school months, by a divisor of 70 in the first
period of each fiscal year, by a divisor of 135 in the second period
of each fiscal year, and by a divisor of 180 at the annual time of
each fiscal year.

(c) The Superintendent shall apportion to each school district
that operates a community day school an amount equal to four
dollars ($4), adjusted annually commencing with the 1999-2000
fiscal year for inflation pursuant to subdivision (b) of Section
42238.1, multiplied by the total of the number of hours each
schoolday, up to a maximum of two hours daily, that each
community day school pupil remains at the community day school
under the supervision of an employee of the school district, or a
consortium of school districts pursuant to Section 48916.1,
reporting the attendance of the pupils for apportionment funding
following completion of the full six-hour instructional day.

(d) It is the intent of the Legislature that school districts enter
into consortia, as feasible, for purposes of providing community
day school programs. A school district with fewer than 2,501 units
of average daily attendance may request a waiver for any fiscal
year of the funding limitations set forth in this section. The
Superintendent shall approve a waiver if he or she deems it
necessary in order to permit the operation of a community day
school of reasonably comparable quality to those offered in a
school district with 2,501 or more units of average daily attendance.
In no event shall the amount allocated pursuant to a waiver exceed
the amount provided for one teacher pursuant to Section 42284,
for pupils enrolled in kindergarten and grades 1 to 6, inclusive, or
the amount provided for one teacher pursuant to Section 42284,
for pupils enrolled in grades 7 to 12, inclusive. The provisions of
this act shall not apply to a school district that applied for a waiver
within the funding limits established by this subdivision but was
denied funding or not fully funded.

(e) The department shall evaluate and report to the appropriate
legislative policy committees and budget committees on or before
October 1, 1998, and for two years thereafter the following
programmatic and fiscal issues:

(1) The number of expulsions statewide.

(2) The number of school districts operating community day
schools.

(3) Status of the countywide plans as defined in Section 48926.

(4) An evaluation of the community day school average daily
attendance funding percentage cap.

(5) Number of small school districts requesting and the number
receiving a waiver under this section.

(6) The effect of hourly accounting under Section 48663 for
purposes of receiving the additional funding under Section 48664.

(7) The number of pupils and average daily attendance served
in community day programs, further identified as the number
expelled pursuant to subdivision (b) of Section 48915, subdivision
(d) of Section 48915, other expulsion criteria, or referred through
a formal school district process.

(8) Pupil outcome data and other data as required under Section
48916.1.

(9) Other programmatic or fiscal matters as determined by the
department.

(f) The additional funds provided in subdivisions (a), (c), and
(d) shall only be allocated to the extent that funds are appropriated
for this purpose in the annual Budget Act or other legislation, or
both.

(g) A one-time adjustment shall be made to the amount specified
in subdivision (a), for the 1998-99 fiscal year and subsequent fiscal
years, by increasing that amount by the statewide average quotient
resulting from dividing the average daily attendance specified in
subparagraph (B) of paragraph (3) of subdivision (a) of Section
42238.8 by the amount specified in subparagraph (C) of paragraph
(3) of subdivision (a) of Section 42238.8.

begin delete SEC. 37. end delete
begin insert SEC. 38. end insert   

Section 48667 of the Education Code is repealed.

begin delete SEC. 38. end delete
begin insert SEC. 39. end insert   

Section 49085 of the Education Code is amended to
read:

49085.  

(a) On or before February 1, 2014, the department and
the State Department of Social Services shall develop and enter
into a memorandum of understanding that shall, at a minimum,
require the State Department of Social Services, at least once per
week, to share with the department both of the following:

(1) Disaggregated information on children and youth in foster
care sufficient for the department to identify pupils in foster care.

(2) Disaggregated data on children and youth in foster care that
is helpful to county offices of education and other local educational
agencies responsible for ensuring that pupils in foster care received
appropriate educational supports and services.

(b) To the extent allowable under federal law, the department
shall regularly identify pupils in foster care and designate those
pupils in the California Longitudinal Pupil Achievement Data
System or any future data system used by the department to collect
disaggregated pupil outcome data.

(c) To the extent allowable under federal law, the
Superintendent, on or before July 1 of each even-numbered year,
shall report to the Legislature and the Governor on the educational
outcomes for pupils in foster care at both the individual schoolsite
level and school district level. The report shall include, but is not
limited to, all of the following:

(1) Individual schoolsite level and school district level
educational outcome data for each local educational agency that
enrolls at least 15 pupils in foster care, each county in which at
least 15 pupils in foster care attend school, and for the entire state.

(2) The number of pupils in foster care statewide and by each
local educational agency.

(3) The academic achievement of pupils in foster care.

(4) The incidence of suspension and expulsion for pupils in
foster care.

(5) Truancy rates, attendance rates, and dropout rates for pupils
in foster care.

(d) To the extent allowable under federal law, the department,
at least once per week, shall do all of the following:

(1) Inform school districts and charter schools of any pupils
enrolled in those school districts or charter schools who are in
foster care.

(2) Inform county offices of education of any pupils enrolled
in schools in the county who are in foster care.

(3) Provide schools districts, county office of education, and
charter schools disaggregated data helpful to ensuring pupils in
foster care receive appropriate educational supports and services.

(e) For purposes of this section “pupil in foster care” has the
same meaning as “foster youth,” as defined in Section 42238.01.

begin delete SEC. 39. end delete
begin insert SEC. 40. end insert   

Section 52060 of the Education Code is amended to
read:

52060.  

(a) On or before July 1, 2014, the governing board of
each school district shall adopt a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a
governing board of a school district shall be effective for a period
of three years, and shall be updated on or before July 1 of each
year.

(c) A local control and accountability plan adopted by a
governing board of a school district shall include, for the school
district and each school within the school district, both of the
following:

(1) A description of the annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d) and for any additional local priorities identified by the
governing board of the school district. For purposes of this article,
a subgroup of pupils identified pursuant to Section 52052 shall be
a numerically significant pupil subgroup as specified in paragraphs
(2) and (3) of subdivision (a) of Section 52052.

(2) A description of the specific actions the school district will
take during each year of the local control and accountability plan
to achieve the goals identified in paragraph (1), including the
enumeration of any specific actions necessary for that year to
correct any deficiencies in regard to the state priorities listed in
paragraph (1) of subdivision (d). The specific actions shall not
supersede the provisions of begin insert existing end insert local collective bargaining
agreements within the jurisdiction of the school district. begin delete Specific
actions described in the local control and accountability plan that
are inconsistent with local collective bargaining agreements shall
be renegotiated, and implemented only as agreed to after
renegotiation. end delete

(d) All of the following are state priorities:

(1) The degree to which the teachers of the school district are
appropriately assigned in accordance with Section 44258.9, and
fully credentialed in the subject areas, and, for the pupils they are
teaching, every pupil in the school district has sufficient access to
the standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to Section 60811.3 for purposes of gaining academic
content knowledge and English language proficiency.

(3) Parental involvement, including efforts the school district
makes to seek parent input in making decisions for the school
district and each individual schoolsite, and including how the
school district will promote parental participation in programs for
unduplicated pupils and individuals with exceptional needs.

(4) Pupil achievement, as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical educational standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(e) For purposes of the descriptions required by subdivision (c),
a governing board of a school district may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) begin delete or end delete
begin insert of end insert paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) A governing board of a school district shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the school district, parents, and pupils in
developing a local control and accountability plan.

(h) A school district may identify local priorities, goals in regard
to the local priorities, and the method for measuring the school
district’s progress toward achieving those goals.

begin insert

begin insert SEC. 40.5. end insert   

end insert

begin insert Section 52060 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52060.  

(a) On or before July 1, 2014, the governing board of
each school district shall adopt a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a
governing board of a school district shall be effective for a period
of three years, and shall be updated on or before July 1 of each
year.

(c) A local control and accountability plan adopted by a
governing board of a school district shall include, for the school
district and each school within the school district, begin delete a description of
both end delete begin insert all end insert of the following:

(1)  begin delete The end delete begin insert A description of the end insert annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d) and for any additional local priorities identified by the
governing board of the school district. For purposes of this article,
a subgroup of pupils identified pursuant to Section 52052 shall be
a numerically significant pupil subgroup as specified in paragraphs
(2) and (3) of subdivision (a) of Section 52052.

(2)  begin delete The end delete begin insert A description of the end insert specific actions the school district
will take during each year of the local control and accountability
plan to achieve the goals identified in paragraph (1), including the
enumeration of any specific actions necessary for that year to
correct any deficiencies in regard to the state priorities listed in
paragraph (1) of subdivision (d). begin insert The specific actions shall not
supersede the provisions of existing local collective bargaining
agreements within the jurisdiction of the school district. end insert

begin insert

(3) A listing and description of the expenditures for the initial
fiscal year implementing the specific actions included in the local
control and accountability plan.

end insert begin insert

(4) A listing and description of the expenditures for the initial
fiscal year that will serve pupils to whom one or more of the
definitions in Section 42238.01 apply, and pupils reclassified as
fluent English proficient.

end insert

(d) All of the following are state priorities:

(1) The degree to which the teachers of the school district are
appropriately assigned in accordance with Section 44258.9, and
fully credentialed in the subject areas, and, for the pupils they are
teaching, every pupil in the school district has sufficient access to
the standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to Section 60811.3 for purposes of gaining academic
content knowledge and English language proficiency.

(3) Parental involvement, including efforts the school district
makes to seek parent input in making decisions for the school
district and each individual schoolsite, and including how the
school district will promote parental participation in programs for
unduplicated pupils and individuals with exceptional needs.

(4) Pupil achievement, begin insert including for each subgroup as identified
in Section 52052, end insert as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or begin delete clusters of courses that satisfy the
requirements of end delete begin insert programs of study that align with state
board-approved career technical educational standards and
frameworks, including, but not limited to, those described in end insert
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section begin delete 54692, and
align with state board-approved career technical education
standards and frameworks. end delete begin insert 54692. end insert

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

begin insert

(9) The extent to which teachers, administrators, and staff
receive professional development or participate in induction
programs, including the type and subject areas of the professional
development provided.

end insert

(e) For purposes of the descriptions required by subdivision (c),
a governing board of a school district may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) begin delete or end delete
begin insert of end insert paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) A governing board of a school district shall consult with
teachers, principals, administrators, other school personnel, begin insert local end insert
begin insert bargaining units of the school district, end insert parents, and pupils in
developing a local control and accountability plan.

(h) A school district may identify local priorities, goals in regard
to the local priorities, and the method for measuring the school
district’s progress toward achieving those goals.

begin delete SEC. 40. end delete
begin insert SEC. 41. end insert   

Section 52061 of the Education Code is amended to
read:

52061.  

(a) On or before July 1, 2015, and each year thereafter,
a school district shall update the local control and accountability
plan. The annual update shall be developed using a template
developed pursuant to Section 52064 and shall include all of the
following:

(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52060.

(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of
the effectiveness of the specific actions described in the existing
local control and accountability plan toward achieving the goals,
and a description of changes to the specific actions the school
district will make as a result of the review and assessment.

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan and the changes to the specific actions
made as a result of the reviews and assessment required by
paragraphs (1) and (2).

(4) A listing and description of expenditures for the fiscal year
that will serve the pupils to whom one or more of the definitions
in Section 42238.01 apply and pupils redesignated as fluent English
proficient.

(b) The expenditures identified in subdivision (a) shall be
classified using the California School Accounting Manual pursuant
to Section 41010.

begin insert

begin insert SEC. 41.5. end insert   

end insert

begin insert Section 52061 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52061.  

(a) On or before July 1, 2015, and each year thereafter,
a school district shall update the local control and accountability
plan. The annual update shall be developed using a template
developed pursuant to Section 52064 and shall include all of the
following:

(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52060.

(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of
the effectiveness of the specific actions described in the existing
local control and accountability plan toward achieving the goals,
and a description of changes to the specific actions the school
district will make as a result of the review and assessment.

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan begin insert and the changes to the specific actions
made end insert as a result of the reviews and assessment required by
paragraphs (1) and (2).

(4) A listing and description of expenditures for the fiscal year
that will serve the pupils to whom one or more of the definitions
in Section 42238.01 apply and pupils redesignated as fluent English
proficient.

(b) The expenditures identified in subdivision (a) begin insert of this section
and subdivision (c) of Section 52060 end insert shall be classified using the
California School Accounting Manual pursuant to Section 41010.

begin delete SEC. 41. end delete
begin insert SEC. 42. end insert   

Section 52062 of the Education Code is amended to
read:

52062.  

(a) Before the governing board of a school district
considers the adoption of a local control and accountability plan
or an annual update to the local control and accountability plan,
all of the following shall occur:

(1) The superintendent of the school district shall present the
local control and accountability plan or annual update to the local
control and accountability plan to the parent advisory committee
established pursuant to Section 52063 for review and comment.
The superintendent of the school district shall respond, in writing,
to comments received from the parent advisory committee.

(2) The superintendent of the school district shall present the
local control and accountability plan or annual update to the local
control and accountability plan to the English learner parent
advisory committee established pursuant to Section 52063, if
applicable, for review and comment. The superintendent of the
school district shall respond, in writing, to comments received
from the English learner parent advisory committee.

(3) The superintendent of the school district shall notify
members of the public of the opportunity to submit written
comments regarding the specific actions and expenditures proposed
to be included in the local control and accountability plan or annual
update to the local control and accountability plan, using the most
efficient method of notification possible. This paragraph shall not
require a school district to produce printed notices or to send
notices by mail. The superintendent of the school district shall
ensure that all written notifications related to the local control and
accountability plan or annual update to the local control and
accountability plan are provided consistent with Section 48985.

(4) The superintendent of the school district shall review school
plans submitted pursuant to Section 64001 for schools within the
school district and ensure that the specific actions included in the
local control and accountability plan or annual update to the local
control and accountability plan are consistent with strategies
included in the school plans submitted pursuant to Section 64001.

(b) (1) A governing board of a school district shall hold at least
one public hearing to solicit the recommendations and comments
of members of the public regarding the specific actions and
expenditures proposed to be included in the local control and
accountability plan or annual update to the local control and
accountability plan. The agenda for the public hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the local control and accountability plan or
annual update to the local control and accountability plan will be
available for public inspection. The public hearing shall be held
at the same meeting as the public hearing required by paragraph
(1) of subdivision (a) of Section 42127.

(2) A governing board of a school district shall adopt a local
control and accountability plan or annual update to the local control
and accountability plan in a public meeting. This meeting shall be
held after, but not on the same day as, the public hearing held
pursuant to paragraph (1). This meeting shall be the same meeting
as that during which the governing board of the school district
adopts a budget pursuant to paragraph (2) of subdivision (a) of
Section 42127.

(c) A governing board of a school district may adopt revisions
to a local control and accountability plan during the period the
local control and accountability plan is in effect. A governing board
of a school district may only adopt a revision to a local control
and accountability plan if it follows the process to adopt a local
control and accountability plan pursuant to this section and the
revisions are adopted in a public meeting.

begin delete SEC. 42. end delete
begin insert SEC. 43. end insert   

Section 52064 of the Education Code is amended to
read:

52064.  

(a) On or before March 31, 2014, the state board shall
adopt templates for the following purposes:

(1) For use by school districts to meet the requirements of
Sections 52060 to 52063, inclusive.

(2) For use by county superintendents of schools to meet the
requirements of Sections 52066 to 52069, inclusive.

(3) For use by charter schools to meet the requirements of
Section 47606.5.

(b) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
No Child Left Behind Act of 2001 related to local educational
agency plans pursuant to Section 1112 of Subpart 1 of Part A of
Title I of Public Law 107-110. The state board shall also take steps
to minimize duplication of effort at the local level to the greatest
extent possible. The template shall include guidance for school
districts, county superintendents of schools, and charter schools
to report both of the following:

(1) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, implementing the
specific actions included in the local control and accountability
plan.

(2) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, that will serve the pupils
to whom one or more of the definitions in Section 42238.01 apply
and pupils redesignated as fluent English proficient.

(c) If possible, the templates identified in paragraph (2) of
subdivision (a) for use by county superintendents of schools shall
allow a county superintendent of schools to develop a single local
control and accountability plan that would also satisfy the
requirements of Section 48926.

(d) The state board shall adopt the template pursuant to the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code). The state board may adopt emergency
regulations for purposes of implementing this section.

(e) Revisions to a template or evaluation rubric shall be approved
by the state board by January 31 before the fiscal year during which
the template or evaluation rubric is to be used by a school district,
county superintendent of schools, or charter school.

(f) The adoption of a template or evaluation rubric by the state
board shall not create a requirement for a governing board of a
school district, a county board of education, or a governing body
of a charter school to submit a local control and accountability
plan to the state board, unless otherwise required by federal law.
The Superintendent shall not require a local control and
accountability plan to be submitted by a governing board of a
school district or the governing body of a charter school to the
state board. The state board may adopt a template or evaluation
rubric that would authorize a school district or a charter school to
submit to the state board only the sections of the local control and
accountability plan required by federal law.

begin insert

begin insert SEC. 43.5. end insert   

end insert

begin insert Section 52064 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52064.  

(a) On or before March 31, 2014, the state board shall
adopt templates for the following purposes:

(1) For use by school districts to meet the requirements of
Sections 52060 to 52063, inclusive.

(2) For use by county superintendents of schools to meet the
requirements of Sections 52066 to 52069, inclusive.

(3) For use by charter schools to meet the requirements of
Section 47606.5.

(b) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this begin delete article and end delete begin insert article, end insert the requirements of the
federal No Child Left Behind Act of 2001 related to local
educational agency plans pursuant to Section 1112 of Subpart 1
of Part A of Title I of Public Law begin delete 107-110. end delete begin insert 107-110, and the
requirements of the federal No Child Left Behind Act of 2001
(Public Law 107-110) and Section 64001 related to the Single
Plan for Pupil Achievement, including the requirements of Title
III of the federal No Child Left Behind Act of 2001 (Public Law
107-110). end insert The state board shall also take steps to minimize
duplication of effort at the local level to the greatest extent possible.
begin insert The template shall include guidance for school districts, county
superintendents of schools, and charter schools to report both of
the following: end insert

begin insert

(1) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, implementing the
specific actions included in the local control and accountability
plan.

end insert begin insert

(2) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, that will serve the
pupils to whom one or more of the definitions in Section 42238.01
apply and pupils redesignated as fluent English proficient.

end insert begin insert

(c) The templates developed by the state board shall ensure that
each school district, county superintendent of schools, or charter
school that receives supplemental and concentration funds for
unduplicated pupils, pursuant to Sections 2574, 2575, 42238.02,
and 42238.03, include information on the instructional programs
and services provided to unduplicated pupils for the purpose of
increasing their academic achievement, as referenced in Sections
52060 and 52066, in its local control and accountability plan.

end insert begin insert

(d) The templates shall ensure that school districts, county
superintendents of schools, or charter schools include information
on the types of English language development instructional
programs provided to English learners, and how those programs
support the core instructional program, including, but not limited
to, the types of instructional materials provided to pupils and the
professional development provided to schoolsite staff.

end insert begin delete

(c)

end delete

begin insert (e) end insert  If possible, the templates identified in paragraph (2) of
subdivision (a) for use by county superintendents of schools shall
allow a county superintendent of schools to develop a single local
control and accountability plan that would also satisfy the
requirements of Section 48926.

begin delete

(d)

end delete

begin insert (f) end insert  The state board shall adopt the template pursuant to the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code). The state board may adopt emergency
regulations for purposes of implementing this section.

begin delete

(e)

end delete

begin insert (g) end insert  Revisions to a template or evaluation rubric shall be
approved by the state board by January 31 before the fiscal year
during which the template or evaluation rubric is to be used by a
school district, county superintendent of schools, or charter school.

begin delete

(f)

end delete

begin insert (h) end insert  The adoption of a template or evaluation rubric by the state
board shall not create a requirement for a governing board of a
school district, a county board of education, or a governing body
of a charter school to submit a local control and accountability
plan to the state board, unless otherwise required by federal law.
The Superintendent shall not require a local control and
accountability plan to be submitted by a governing board of a
school district or the governing body of a charter school to the
state board. The state board may adopt a template or evaluation
rubric that would authorize a school district or a charter school to
submit to the state board only the sections of the local control and
accountability plan required by federal law.

begin delete SEC. 43. end delete
begin insert SEC. 44. end insert   

Section 52066 of the Education Code is amended to
read:

52066.  

(a) On or before July 1, 2014, each county
superintendent of schools shall develop, and present to the county
board of education for adoption, a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a county
board of education shall be effective for a period of three years,
and shall be updated on or before July 1 of each year.

(c) A local control and accountability plan adopted by a county
board of education shall include, for each school or program
operated by the county superintendent of schools, both of the
following:

(1) A description of the annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d), as applicable to the pupils served, and for any additional local
priorities identified by the county board of education.

(2) A description of the specific actions the county
superintendent of schools will take during each year of the local
control and accountability plan to achieve the goals identified in
paragraph (1), including the enumeration of any specific actions
necessary for that year to correct any deficiencies in regard to the
state priorities listed in paragraph (1) of subdivision (d). The
specific actions shall not supersede the provisions of begin insert existing end insert local
collective bargaining agreements within the jurisdiction of the
county superintendent of schools. begin delete Specific actions described in
the local control and accountability plan that are inconsistent with
local collective bargaining agreements shall be renegotiated, and
implemented only as agreed to after renegotiation. end delete

(d) All of the following are state priorities:

(1) The degree to which the teachers in the schools or programs
operated by the county superintendent of schools are appropriately
assigned in accordance with Section 44258.9 and fully credentialed
in the subject areas, and, for the pupils they are teaching, every
pupil in the schools or programs operated by the county
superintendent of schools has sufficient access to the
standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to Section 60811.3 for purposes of gaining academic
content knowledge and English language proficiency.

(3) Parental involvement, including efforts the county
superintendent of schools makes to seek parent input in making
decisions for each individual schoolsite and program operated by
a county superintendent of schools, and including how the county
superintendent of schools will promote parental participation in
programs for unduplicated pupils and individuals with exceptional
needs.

(4) Pupil achievement, as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical education standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(9) How the county superintendent of schools will coordinate
instruction of expelled pupils pursuant to Section 48926.

(10) How the county superintendent of schools will coordinate
services for foster children, including, but not limited to, all of the
following:

(A) Working with the county child welfare agency to minimize
changes in school placement.

(B) Providing education-related information to the county child
welfare agency to assist the county child welfare agency in the
delivery of services to foster children, including, but not limited
to, educational status and progress information that is required to
be included in court reports.

(C) Responding to requests from the juvenile court for
information and working with the juvenile court to ensure the
delivery and coordination of necessary educational services.

(D) Establishing a mechanism for the efficient expeditious
transfer of health and education records and the health and
education passport.

(e) For purposes of the descriptions required by subdivision (c),
a county board of education may consider qualitative information,
including, but not limited to, findings that result from school quality
reviews conducted pursuant to subparagraph (J) begin delete or end delete begin insert of end insert paragraph
(4) of subdivision (a) of Section 52052 or any other reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) The county superintendent of schools shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the county office of education, parents, and
pupils in developing a local control and accountability plan.

(h) A county board of education may identify local priorities,
goals in regard to the local priorities, and the method for measuring
the county office of education’s progress toward achieving those
goals.

begin insert

begin insert SEC. 44.5. end insert   

end insert

begin insert Section 52066 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52066.  

(a) On or before July 1, 2014, each county
superintendent of schools shall develop, and present to the county
board of education for adoption, a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a county
board of education shall be effective for a period of three years,
and shall be updated on or before July 1 of each year.

(c) A local control and accountability plan adopted by a county
board of education shall include, for each school or program
operated by the county superintendent of schools, begin delete a description of
both end delete begin insert all end insert of the following:

(1)  begin delete The end delete begin insert A description of the end insert annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d), as applicable to the pupils served, and for any additional local
priorities identified by the county board of education.

(2)  begin delete The end delete begin insert A description of the end insert specific actions the county
superintendent of schools will take during each year of the local
control and accountability plan to achieve the goals identified in
paragraph (1), including the enumeration of any specific actions
necessary for that year to correct any deficiencies in regard to the
state priorities listed in paragraph (1) of subdivision (d). begin insert The
specific actions shall not supersede the provisions of existing local
collective bargaining agreements within the jurisdiction of the
county superintendent of schools. end insert

begin insert

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan pursuant to paragraph (2).

end insert begin insert

(4) A listing and description of expenditures for the fiscal year
that will serve the pupils to whom one or more of the definitions
in Section 42238.01 apply, and pupils redesignated as fluent
English proficient.

end insert

(d) All of the following are state priorities:

(1) The degree to which the teachers in the schools or programs
operated by the county superintendent of schools are appropriately
assigned in accordance with Section 44258.9 and fully credentialed
in the subject areas, and, for the pupils they are teaching, every
pupil in the schools or programs operated by the county
superintendent of schools has sufficient access to the
standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to Section 60811.3 for purposes of gaining academic
content knowledge and English language proficiency.

(3) Parental involvement, including efforts the county
superintendent of schools makes to seek parent input in making
decisions for each individual schoolsite and program operated by
a county superintendent of schools, and including how the county
superintendent of schools will promote parental participation in
programs for unduplicated pupils and individuals with exceptional
needs.

(4) Pupil achievement, begin insert including for each of the subgroups
identified pursuant to Section 52052, end insert as measured by all of the
following, as applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences begin delete or clusters of courses that satisfy the
requirements of end delete begin insert or programs end insert begin insert of study that align with state
board-approved career technical education standards and
frameworks, including, but not limited to, those described in end insert
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section begin delete 54692, and
align with state board-approved career technical education
standards and frameworks. end delete begin insert 54692. end insert

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(9) How the county superintendent of schools will coordinate
instruction of expelled pupils pursuant to Section 48926.

(10) How the county superintendent of schools will coordinate
services for foster children, including, but not limited to, all of the
following:

(A) Working with the county child welfare agency to minimize
changes in school placement.

(B) Providing education-related information to the county child
welfare agency to assist the county child welfare agency in the
delivery of services to foster children, including, but not limited
to, educational status and progress information that is required to
be included in court reports.

(C) Responding to requests from the juvenile court for
information and working with the juvenile court to ensure the
delivery and coordination of necessary educational services.

(D) Establishing a mechanism for the efficient expeditious
transfer of health and education records and the health and
education passport.

begin insert

(11) The extent to which teachers, administrators, and staff
receive professional development or participate in induction
programs, including the type and subject areas of the professional
development provided.

end insert

(e) For purposes of the descriptions required by subdivision (c),
a county board of education may consider qualitative information,
including, but not limited to, findings that result from school quality
reviews conducted pursuant to subparagraph (J) begin delete or end delete begin insert of end insert paragraph
(4) of subdivision (a) of Section 52052 or any other reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) The county superintendent of schools shall consult with
teachers, principals, administrators, other school personnel, begin insert local
bargaining units of the county office of education, end insert parents, and
pupils in developing a local control and accountability plan.

(h) A county board of education may identify local priorities,
goals in regard to the local priorities, and the method for measuring
the county office of education’s progress toward achieving those
goals.

begin delete SEC. 44. end delete
begin insert SEC. 45. end insert   

Section 52068 of the Education Code is amended to
read:

52068.  

(a) Before the county board of education considers the
adoption of a local control and accountability plan or an annual
update to the local control and accountability plan, all of the
following shall occur:

(1) The county superintendent of schools shall present the local
control and accountability plan or annual update to the local control
and accountability plan to a parent advisory committee established
pursuant to Section 52069 for review and comment. The county
superintendent of schools shall respond, in writing, to comments
received from the parent advisory committee.

(2) The county superintendent of schools shall present the local
control and accountability plan or annual update to the local control
and accountability plan to the English learner parent advisory
committee established pursuant to Section 52069, if applicable,
for review and comment. The county superintendent of schools
shall respond, in writing, to comments received from the English
learner parent advisory committee.

(3) The county superintendent of schools shall notify members
of the public of the opportunity to submit written comments
regarding the specific actions and expenditures proposed to be
included in the local control and accountability plan or annual
update to the local control and accountability plan, using the most
efficient method of notification possible. This paragraph shall not
require a county superintendent of schools to produce printed
notices or to send notices by mail. The county superintendent of
schools shall ensure that all written notifications related to the
local control and accountability plan or annual update to the local
control and accountability plan are provided consistent with Section
48985.

(4) The county superintendent of schools shall review school
plans submitted pursuant to Section 64001 for schools operated
by the county superintendent of schools and ensure that the specific
actions included in the local control and accountability plan or
annual update to the local control and accountability plan are
consistent with strategies included in the school plans submitted
pursuant to Section 64001.

(b) (1) The county board of education shall hold at least one
public hearing to solicit the recommendations and comments of
members of the public regarding the specific actions and
expenditures proposed to be included in the local control and
accountability plan or annual update to the local control and
accountability plan. The agenda for the public hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the local control and accountability plan or
annual update to the local control and accountability plan, and any
comments received pursuant to paragraphs (1) to (3), inclusive, of
subdivision (a), will be available for public inspection. The public
hearing shall be held at the same meeting as the public hearing
required by Section 1620.

(2) The county board of education shall adopt a local control
and accountability plan or annual update to the local control and
accountability plan in a public meeting. This meeting shall be held
after, but not on the same day as, the public hearing held pursuant
to paragraph (1). This meeting shall be the same meeting as that
during which the county board of education adopts a budget
pursuant to Section 1622.

(c) A county superintendent of schools may develop and present
to a county board of education for adoption revisions to a local
control and accountability plan during the period the local control
and accountability plan is in effect. The county board of education
may only adopt a revision to a local control and accountability
plan if it follows the process to adopt a local control and
accountability plan pursuant to this section and the revisions are
adopted in a public meeting.

begin delete SEC. 45. end delete
begin insert SEC. 46. end insert   

Section 52070 of the Education Code is amended to
read:

52070.  

(a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the governing board of a school district
shall file the local control and accountability plan or annual update
to the local control and accountability plan with the county
superintendent of schools.

(b) On or before August 15 of each year, the county
superintendent of schools may seek clarification, in writing, from
the governing board of a school district about the contents of the
local control and accountability plan or annual update to the local
control and accountability plan. Within 15 days the governing
board of a school district shall respond, in writing, to requests for
clarification.

(c) Within 15 days of receiving the response from the governing
board of the school district, the county superintendent of schools
may submit recommendations, in writing, for amendments to the
local control and accountability plan or annual update to the local
control and accountability plan. The governing board of a school
district shall consider the recommendations submitted by the county
superintendent of schools in a public meeting within 15 days of
receiving the recommendations.

(d) The county superintendent of schools shall approve a local
control and accountability plan or annual update to a local control
and accountability plan on or before October 8, if he or she
determines all of the following:

(1) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.

(2) The budget for the applicable fiscal year adopted by the
governing board of the school district includes expenditures
sufficient to implement the specific actions and strategies included
in the local control and accountability plan adopted by the
governing board of the school district, based on the projections of
the costs included in the plan.

(3) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the
expenditure requirements adopted pursuant to Section 42238.07
for funds apportioned on the basis of the number and concentration
of unduplicated pupils pursuant to Sections 42238.02 and 42238.03.

(e) If a county superintendent of schools has jurisdiction over
a single school district, the Superintendent shall designate a county
superintendent of schools of an adjoining county to perform the
duties specified in this section.

begin delete SEC. 46. end delete
begin insert SEC. 47. end insert   

Section 52070.5 of the Education Code is amended
to read:

52070.5.  

(a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the county board of education shall file
the local control and accountability plan or annual update to the
local control and accountability plan with the Superintendent.

(b) On or before August 15 of each year, the Superintendent
may seek clarification, in writing, from the county board of
education about the contents of the local control and accountability
plan or annual update to the local control and accountability plan.
Within 15 days the county board of education shall respond, in
writing, to requests for clarification.

(c) Within 15 days of receiving the response from the county
board of education, the Superintendent may submit
recommendations, in writing, for amendments to the local control
and accountability plan or annual update to the local control and
accountability plan. The county board of education shall consider
the recommendations submitted by the Superintendent in a public
meeting within 15 days of receiving the recommendations.

(d) The Superintendent shall approve a local control and
accountability plan or annual update to a local control and
accountability plan on or before October 8, if he or she determines
all of the following:

(1) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.

(2) The budget for the applicable fiscal year adopted by the
county board of education includes expenditures sufficient to
implement the specific actions and strategies included in the local
control and accountability plan adopted by the county board of
education, based on the projections of the costs included in the
plan.

(3) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the
expenditure requirements adopted pursuant to Section 42238.07
for funds apportioned on the basis of the number and concentration
of unduplicated pupils pursuant to Sections 2574 and 2575.

begin delete SEC. 47. end delete
begin insert SEC. 48. end insert   

Section 52074 of the Education Code is amended to
read:

52074.  

(a) The California Collaborative for Educational
Excellence is hereby established.

(b) The purpose of the California Collaborative for Educational
Excellence is to advise and assist school districts, county
superintendents of schools, and charter schools in achieving the
goals set forth in a local control and accountability plan adopted
pursuant to this article.

(c) The Superintendent shall, with the approval of the state
board, contract with a local educational agency, or consortium of
local educational agencies, to serve as the fiscal agent for the
California Collaborative for Educational Excellence. The
Superintendent shall apportion funds appropriated for the California
Collaborative for Educational Excellence to the fiscal agent.

begin insert

(d) The California Collaborative for Educational Excellence
shall be governed by a board consisting of the following five
members:

end insert begin insert

(1) The Superintendent or his or her designee.

end insert begin insert

(2) The president of the state board or his or her designee.

end insert begin insert

(3) A county superintendent of schools appointed by the Senate
Committee on Rules.

end insert begin insert

(4) A teacher appointed by the Speaker of the Assembly.

end insert begin insert

(5) A superintendent of a school district appointed by the
Governor.

end insert begin delete

(d)

end delete

begin insert (e) end insert  At the direction of the begin delete Superintendent and with the approval
of the state board, end delete begin insert governing board of the California Collaborative
for Educational Excellence, end insert the fiscal agent shall contract with
individuals, local educational agencies, or organizations with the
expertise, experience, and a record of success to carry out the
purposes of this article. The areas of expertise, experience, and
record of success shall include, but are not limited to, all of the
following:

(1) State priorities as described in subdivision (d) of Section
52060.

(2) Improving the quality of teaching.

(3) Improving the quality of school district and schoolsite
leadership.

(4) Successfully addressing the needs of special pupil
populations, including, but not limited to, English learners, pupils
eligible to receive a free or reduced-price meal, pupils in foster
care, and individuals with exceptional needs.

begin delete

(e)

end delete

begin insert (f) end insert  The Superintendent may direct the California Collaborative
for Educational Excellence to advise and assist a school district,
county superintendent of schools, or charter school in any of the
following circumstances:

(1) If the governing board of a school district, county board of
education, or governing body or a charter school requests the advice
and assistance of the California Collaborative for Educational
Excellence.

(2) If the county superintendent of schools of the county in
which the school district or charter school is located determines,
following the provision of technical assistance pursuant to Section
52071 or 47607.3 as applicable, that the advice and assistance of
the California Collaborative for Educational Excellence is
necessary to help the school district or charter school accomplish
the goals described in the local control and accountability plan
adopted pursuant to this article.

(3) If the Superintendent determines that the advice and
assistance of the California Collaborative for Educational
Excellence is necessary to help the school district, county
superintendent of schools, or charter school accomplish the goals
set forth in the local control and accountability plan adopted
pursuant to this article.

begin delete SEC. 48. end delete
begin insert SEC. 49. end insert   

Section 56836.11 of the Education Code is amended
to read:

56836.11.  

(a) For the purpose of computing the equalization
adjustment for special education local plan areas for the 1998-99
fiscal year, the Superintendent shall make the following
computations to determine the statewide target amount per unit of
average daily attendance for special education local plan areas:

(1) Total the amount of funding computed for each special
education local plan area exclusive of the amount of funding
computed for the special education local plan area identified as
the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local
Plan Area, pursuant to Section 56836.09 for the 1997-98 fiscal
year.

(2) Total the number of units of average daily attendance
reported for each special education local plan area for the 1997-98
fiscal year, exclusive of average daily attendance for absences
excused pursuant to subdivision (b) of Section 46010 as that section
read on July 1, 1996, and exclusive of the units of average daily
attendance computed for the special education local plan area
identified as the Los Angeles County Juvenile Court and
Community School/Division of Alternative Education Special
Education Local Plan Area.

(3) Divide the sum computed in paragraph (1) by the sum
computed in paragraph (2) to determine the statewide target amount
for the 1997-98 fiscal year.

(4) Add the amount computed in paragraph (3) to the inflation
adjustment computed pursuant to subdivision (d) of Section
56836.08 for the 1998-99 fiscal year to determine the statewide
target amount for the 1998-99 fiscal year.

(b) Commencing with the 1999-2000 fiscal year to the 2004-05
fiscal year, inclusive, to determine the statewide target amount per
unit of average daily attendance for special education local plan
areas, the Superintendent shall multiply the statewide target amount
per unit of average daily attendance computed for the prior fiscal
year pursuant to this section by one plus the inflation factor
computed pursuant to subdivision (b) of Section 42238.1 for the
fiscal year in which the computation is made.

(c) Commencing with the 2005-06 fiscal year and ending with
the 2010-11 fiscal year, to determine the statewide target amount
per unit of average daily attendance for special education local
plan areas for the purpose of computing the incidence multiplier
pursuant to former Section 56836.155, the Superintendent shall
add the statewide target amount per unit of average daily attendance
computed for the prior fiscal year for this purpose to the amount
computed in paragraph (2) of subdivision (d) or paragraph (2) of
subdivision (e), as appropriate.

(d) For the 2005-06 fiscal year, the Superintendent shall make
the following computation to determine the statewide target amount
per unit of average daily attendance to determine the inflation
adjustment pursuant to paragraph (2) of subdivision (d) of Section
56836.08 and growth pursuant to subdivision (c) of Section
56836.15, as follows:

(1) The 2004-05 fiscal year statewide target amount per unit of
average daily attendance less the sum of the 2004-05 fiscal year
total amount of federal funds apportioned pursuant to Schedule
(1) in Item 6110-161-0890 of Section 2.00 of the Budget Act of
2004 for purposes of special education for individuals with
exceptional needs enrolled in kindergarten and grades 1 to 12,
inclusive, divided by the total average daily attendance computed
for the 2004-05 fiscal year.

(2) Multiply the amount computed in paragraph (1) by the
inflation factor computed pursuant to subdivision (b) of Section
42238.1 for the fiscal year in which the computation is made.

(3) Add the amounts computed in paragraphs (1) and (2).

(e) Commencing with the 2006-07 fiscal year and continuing
through the 2012-13 fiscal year, inclusive, the Superintendent
shall make the following computation to determine the statewide
target amount per unit of average daily attendance for special
education local plan areas for the purpose of computing the
inflation adjustment pursuant to paragraph (2) of subdivision (d)
of Section 56836.08 and growth pursuant to subdivision (c) of
Section 56836.15:

(1) The statewide target amount per unit of average daily
attendance computed for the prior fiscal year pursuant to this
section.

(2) Multiply the amount computed in paragraph (1) by the
inflation factor computed pursuant to subdivision (b) of Section
42238.1 for the fiscal year in which the computation is made.

(3) Add the amounts computed in paragraphs (1) and (2).

(f) For the 2013-14 fiscal year, the Superintendent shall make
the following computations to determine the statewide target
amount per unit of average daily attendance to determine the
inflation adjustment pursuant to subdivision (g) of Section
56836.08 and growth pursuant to subdivision (c) of Section
56836.15, as follows:

(1) Total the amount of funding computed for each special
education local plan area pursuant to the amount computed in
subdivision (b) of Section 56836.08, including the amount of funds
appropriated pursuant to Provision 22 of Item 6110-161-0001 of
Section 2.00 of the Budget Act of 2013, and excluding the amount
of funding computed for the special education local plan area
identified as the Los Angeles County Juvenile Court and
Community School/Division of Alternative Education Special
Education Local Plan Area, for the 2013-14 fiscal year.

(2) Total the number of units of average daily attendance
reported for each special education local plan area for the 2012-13
fiscal year, exclusive of the units of average daily attendance
computed for the special education local plan area identified as
the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local
Plan Area.

(3) Divide the sum computed in paragraph (1) by the sum
computed in paragraph (2).

(g) Commencing with the 2014-15 fiscal year and continuing
each fiscal year thereafter, the Superintendent shall make the
following computations to determine the statewide target amount
per unit of average daily attendance for special education local
plan areas for the purpose of computing the inflation adjustment
pursuant to subdivision (g) of Section 56836.08 and growth
pursuant to subdivision (c) of Section 56836.15:

(1) The statewide target amount per unit of average daily
attendance computed for the prior fiscal year pursuant to this
section.

(2) Multiply the amount computed in paragraph (1) by the
inflation factor computed pursuant to Section 42238.1, as that
section read on January 1, 2013, or any successor section of law
enacted by the Legislature that specifies the inflation factor
contained in Section 42238.1, as that section read on January 1,
2013, for application to the 2014-15 fiscal year and each fiscal
year thereafter.

(3) Add the amounts computed in paragraphs (1) and (2).

begin delete SEC. 49. end delete
begin insert SEC. 50. end insert   

Section 70022 of the Education Code is amended to
read:

70022.  

(a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University
or the University of California who meets the requirements of
paragraph (2) is eligible for a scholarship award as described in
that paragraph.

(2) Each academic year, except as provided in paragraphs (3)
and (4), a student shall receive a scholarship award in an amount
that, combined with other publicly funded student financial aid
received by an eligible student, is up to 40 percent of the amount
charged to that student in that academic year for mandatory
systemwide tuition and fees, if all of the following requirements
are met:

(A) The student’s annual household income does not exceed
one hundred fifty thousand dollars ($150,000). For purposes of
this article, annual household income shall be calculated in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
(Chapter 1.7 (commencing with Section 69430)) and Section
69506.

(B) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student
who is exempt from nonresident tuition under Section 68130.5
shall not be required to satisfy the requirements of subdivision (a)
of Section 69433.9.

(C) The student is exempt from paying nonresident tuition.

(D) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. If the student is not
able to complete a FAFSA application, the student submits an
application determined by the commission to be equivalent to the
FAFSA application for purposes of this article.

(E) The student makes a timely application or applications for
publicly funded student financial aid from programs for which he
or she is eligible, other than the program established by this article.
For purposes of this article, “publicly funded student financial aid”
shall be defined as the federal Pell Grant Program, the Cal Grant
Program, and institutional need-based grants.

(F) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
pursuant to subdivision (m) of Section 69432.7.

(3) The scholarship award under this article to a student whose
annual household income is greater than one hundred thousand
dollars ($100,000), and who otherwise meets the requirements of
paragraph (2), shall be reduced by 0.6-percent increments, from a
maximum 40 percent of mandatory systemwide tuition and fees
for an academic year to a minimum 10 percent of mandatory
systemwide tuition and fees for an academic year, per one thousand
dollars ($1,000) of annual household income in excess of one
hundred thousand dollars ($100,000), provided that no scholarship
award shall be provided to a student with an annual household
income exceeding one hundred fifty thousand dollars ($150,000).
This reduction shall be in addition to any reduction required by
subdivision (e) of Section 70023.

(4) For the 2014-15, 2015-16, and 2016-17 academic years,
the maximum amount of a student’s scholarship award shall be 35
percent, 50 percent, and 75 percent, respectively, of the total
scholarship award amount that the student would otherwise be
eligible to receive.

(b) In order for students enrolled in their respective segments
to remain eligible to receive a scholarship under this article, the
University of California and the California State University shall
not supplant their respective institutional need-based grants with
the funds provided for scholarships under this article, and shall
maintain their funding amounts at a level that, at a minimum, is
equal to the level maintained for undergraduate students during
the 2013-14 academic year.

(c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.

begin delete SEC. 50. end delete
begin insert SEC. 51. end insert   

Section 84321.6 of the Education Code, as added by
Section 74 of Chapter 48 of the Statutes of 2013, is amended to
read:

84321.6.  

(a) Notwithstanding any other law that governs the
regulations adopted by the Chancellor of the California Community
Colleges to disburse funds, the payment of apportionments to
community college districts pursuant to Sections 84320 and 84321
shall be adjusted by the following:

(1) For the month of February, fifty-two million four hundred
fifty-six thousand dollars ($52,456,000) shall be deferred to July.

(2) For the month of March, one hundred thirty-five million
dollars ($135,000,000) shall be deferred to July.

(3) For the month of April, one hundred thirty-five million
dollars ($135,000,000) shall be deferred to July.

(4) For the month of May, one hundred thirty-five million dollars
($135,000,000) shall be deferred to July.

(5) For the month of June, one hundred thirty-five million dollars
($135,000,000) shall be deferred to July.

(b) In satisfaction of the moneys deferred pursuant to subdivision
(a), the sum of five hundred ninety-two million four hundred
fifty-six thousand dollars ($592,456,000) is hereby appropriated
in July of the 2014-15 fiscal year from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure
during the 2014-15 fiscal year, to be expended in accordance with
Schedule (1) of Item 6870-101-0001 of Section 2.00 of the Budget
Act of 2013.

(c) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriations
made by subdivision (b) shall be deemed to be “General Fund
revenues appropriated for community college districts,” as defined
in subdivision (d) of Section 41202, for the 2014-15 fiscal year,
and included within the “total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B,” as defined in subdivision
(e) of Section 41202, for the 2014-15 fiscal year.

(d) This section shall become operative on December 15, 2013.

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

begin delete SEC. 51. end delete
begin insert SEC. 52. end insert   

Section 17581.7 of the Government Code is amended
to read:

17581.7.  

(a) Funding apportioned pursuant to this section shall
constitute reimbursement pursuant to Section 6 of Article XIII B
of the California Constitution for the performance of any state
mandates included in the statutes and executive orders identified
in subdivision (e).

(b) Any community college district may elect to receive block
grant funding pursuant to this section.

(c) (1) A community college district that elects to receive block
grant funding pursuant to this section in a given fiscal year shall
submit a letter requesting funding to the Chancellor of the
California Community Colleges on or before August 30 of that
fiscal year.

(2) The Chancellor of the California Community Colleges shall
apportion, in the month of November of each year, block grant
funding appropriated in Item 6870-296-0001 of Section 2.00 of
the annual Budget Act to all community college districts that
submitted letters requesting funding in that fiscal year according
to the provisions of that item.

(3) A community college district that receives block grant
funding pursuant to this section shall not be eligible to submit
claims to the Controller for reimbursement pursuant to Section
17560 for any costs of any state mandates included in the statutes
and executive orders identified in subdivision (e) incurred in the
same fiscal year during which the community college district
received funding pursuant to this section.

(d) All funding apportioned pursuant to this section is subject
to annual financial and compliance audits required by Section
84040 of the Education Code.

(e) Block grant funding apportioned pursuant to this section is
specifically intended to fund the costs of the following programs:

(1) Agency Fee Arrangements (00-TC-17 and 01-TC-14;
Chapter 893 of the Statutes of 2000; and Chapter 805 of the
Statutes of 2001).

(2) Cal Grants (02-TC-28; Chapter 403 of the Statutes of 2000).

(3) California State Teachers’ Retirement System (CalSTRS)
Service Credit (02-TC-19; Chapter 603 of the Statutes of 1994;
Chapters 383, 634, and 680 of the Statutes of 1996; Chapter 838
of the Statutes of 1997; Chapter 965 of the Statutes of 1998;
Chapter 939 of the Statutes of 1999; and Chapter 1021 of the
Statutes of 2000).

(4) Collective Bargaining and Collective Bargaining Agreement
Disclosure (CSM 4425 and 97-TC-08; Chapter 961 of the Statutes
of 1975; Chapter 1213 of the Statutes of 1991).

(5) Community College Construction (02-TC-47; Chapter 910
of the Statutes of 1980; Chapters 470 and 891 of the Statutes of
1981; Chapter 973 of the Statutes of 1988; Chapter 1372 of the
Statutes of 1990; Chapter 1038 of the Statutes of 1991; and Chapter
758 of the Statutes of 1995).

(6) Discrimination Complaint Procedures (02-TC-42 and
portions of 02-TC-25 and 02-TC-31; Chapter 1010 of the Statutes
of 1976; Chapter 470 of the Statutes of 1981; Chapter 1117 of the
Statutes of 1982; Chapter 143 of the Statutes of 1983; Chapter
1371 of the Statutes of 1984; Chapter 973 of the Statutes of 1988;
Chapter 1372 of the Statutes of 1990; Chapter 1198 of the Statutes
of 1991; Chapter 914 of the Statutes of 1998; Chapter 587 of the
Statutes of 1999; and Chapter 1169 of the Statutes of 2002).

(7) Enrollment Fee Collection and Waivers (99-TC-13 and
00-TC-15).

(8) Health Fee Elimination (CSM 4206; Chapter 1 of the Statutes
of 1984, Second Extraordinary Session).

(9) Minimum Conditions for State Aid (02-TC-25 and 02-TC-31;
Chapter 802 of the Statutes of 1975; Chapters 275, 783, 1010, and
1176 of the Statutes of 1976; Chapters 36 and 967 of the Statutes
of 1977; Chapters 797 and 977 of the Statutes of 1979; Chapter
910 of the Statutes of 1980; Chapters 470 and 891 of the Statutes
of 1981; Chapters 1117 and 1329 of the Statutes of 1982; Chapters
143 and 537 of the Statutes of 1983; Chapter 1371 of the Statutes
of 1984; Chapter 1467 of the Statutes of 1986; Chapters 973 and
1514 of the Statutes of 1988; Chapters 1372 and 1667 of the
Statutes of 1990; Chapters 1038, 1188, and 1198 of the Statutes
of 1991; Chapters 493 and 758 of the Statutes of 1995; Chapters
365, 914, and 1023 of the Statutes of 1998; Chapter 587 of the
Statutes of 1999; Chapter 187 of the Statutes of 2000; and Chapter
1169 of the Statutes of 2002).

(10) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
Statutes of 1978).

(11) Reporting Improper Governmental Activities (02-TC-24;
Chapter 416 of the Statutes of 2001; and Chapter 81 of the Statutes
of 2002).

(12) Threats Against Peace Officers (CSM 96-365-02; Chapter
1249 of the Statutes of 1992; and Chapter 666 of the Statutes of
1995).

(13) Tuition Fee Waivers (02-TC-21; Chapter 36 of the Statutes
of 1977; Chapter 580 of the Statutes of 1980; Chapter 102 of the
Statutes of 1981; Chapter 1070 of the Statutes of 1982; Chapter
753 of the Statutes of 1988; Chapters 424, 900, and 985 of the
Statutes 1989; Chapter 1372 of the Statutes of 1990; Chapter 455
of the Statutes of 1991; Chapter 8 of the Statutes of 1993; Chapter
389 of the Statutes of 1995; Chapter 438 of the Statutes of 1997;
Chapter 952 of the Statutes of 1998; Chapters 571 and 949 of the
Statutes of 2000; Chapter 814 of the Statutes of 2001; and Chapter
450 of the Statutes of 2002).

(f) Notwithstanding Section 10231.5, on or before November
1 of each fiscal year, the Chancellor of the California Community
Colleges shall produce a report that indicates the total amount of
block grant funding each community college district received in
the current fiscal year pursuant to this section. The chancellor shall
provide this report to the appropriate fiscal and policy committees
of the Legislature, the Controller, the Department of Finance, and
the Legislative Analyst’s Office.

begin delete SEC. 52. end delete
begin insert SEC. 53. end insert   

Section 26225 of the Public Resources Code is
amended to read:

26225.  

For the purposes of this chapter, the following terms
have the following meanings:

(a) “Chancellor” means the Chancellor of the California
Community Colleges.

(b) “Energy Commission” means the State Energy Resources
Conservation and Development Commission.

(c) “Local education agency,” “local educational agency,” or
“LEA” means a school district, county office of education, charter
school, or state special school.

(d) “Job Creation Fund” means the Clean Energy Job Creation
Fund established in Section 26205.

begin delete SEC. 53. end delete
begin insert SEC. 54. end insert   

Section 26233 of the Public Resources Code is
amended to read:

26233.  

(a)  Commencing with the 2013-14 fiscal year and
through the 2017-18 fiscal year, inclusive, the funds deposited
annually in the Job Creation Fund and remaining after the transfer
pursuant to Section 26227 and the appropriation pursuant to Section
26230 shall be allocated, to the extent consistent with this division,
as follows:

(1) Eighty-nine percent of the funds shall be available to local
educational agencies and allocated by the Superintendent of Public
Instruction pursuant to subdivision (b).

(2) Eleven percent of the funds shall be available to community
college districts and allocated by the Chancellor of the California
Community Colleges at his or her discretion.

(b) The Superintendent of Public Instruction shall allocate the
funds provided in paragraph (1) of subdivision (a) as follows:

(1) Eighty-five percent on the basis of average daily attendance
reported as of the second principal apportionment for the prior
fiscal year. For purposes of this section, average daily attendance
for the state special schools shall be deemed to be 97 percent of
the prior year enrollment as reported in the California Longitudinal
Pupil Achievement Data System.

(A) For every local educational agency with average daily
attendance as reported pursuant to this subdivision of 100 or less,
the amount awarded shall be fifteen thousand dollars ($15,000).

(B) For every local educational agency with average daily
attendance as reported pursuant to this subdivision in excess of
100, but 1,000 or less, the amount awarded shall be either that
local educational agency’s proportional award on the basis of
average daily attendance or fifty thousand dollars ($50,000),
whichever amount is larger.

(C) For every local educational agency with average daily
attendance as reported pursuant to this subdivision in excess of
1,000, but less than 2,000, the amount awarded shall be either that
local educational agency’s proportional award on the basis of
average daily attendance or one hundred thousand dollars
($100,000), whichever amount is larger.

(D) For every local educational agency with average daily
attendance as reported pursuant to this subdivision of 2,000 or
more, the amount awarded shall be the local educational agency’s
proportional award on the basis of average daily attendance.

(2) Fifteen percent on the basis of students eligible for free and
reduced-price meals in the prior year.

(3) For every local educational agency that receives over one
million dollars ($1,000,000) pursuant to this subdivision, not less
than 50 percent of the funds shall be used for projects larger than
two hundred fifty thousand dollars ($250,000) that achieve
substantial energy efficiency, clean energy, and jobs benefits.

(c) A local educational agency subject to subparagraph (A) or
(B) of paragraph (1) of subdivision (b) may submit a written
request to the Superintendent of Public Instruction, by September
1 of each year, to receive in the current year its funding allocation
for both the current year and the following year, both of which
would be based on the average daily attendance used in the current
year for determining funding pursuant to the applicable
subparagraph. A local educational agency requesting funding
pursuant to this subdivision shall not receive a funding allocation
in the year following the request. This election applies to the
funding available pursuant to paragraphs (1) and (2) of subdivision
(b).

(d) A local educational agency shall encumber funds received
pursuant to this section by June 30, 2018.

begin delete SEC. 54. end delete
begin insert SEC. 55. end insert   

Section 26235 of the Public Resources Code is
amended to read:

26235.  

(a) The Energy Commission, in consultation with the
Superintendent of Public Instruction, the Chancellor of the
California Community Colleges, and the Public Utilities
Commission, shall establish guidelines for the following:

(1) Standard methods for estimating energy benefits, including
reasonable assumptions for current and future costs of energy, and
guidelines to compute the cost of energy saved as a result of
implementing eligible projects funded by this chapter.

(2) Contractor qualifications, licensing, and certifications
appropriate for the work to be performed, provided that the Energy
Commission shall not create any new qualification, license, or
certification pursuant to this subparagraph.

(3) Project evaluation, including the following:

(A) Benchmarks or energy rating systems to select best
candidate facilities.

(B) Use of energy surveys or audits to inform project
opportunities, costs, and savings.

(C) Sequencing of facility improvements.

(D) Methodologies for cost-effectiveness determination.

(4) To ensure that adequate energy audit, measurement, and
verification procedures are employed to ensure that energy savings
and greenhouse gas emissions reductions occur as a result of any
funding provided pursuant to this section. The Energy Commission
shall develop a simple preinstallation verification form that includes
project description, estimated energy savings, expected number
of jobs created, current energy usage, and costs. The Energy
Commission may develop benchmarking and other innovative
facility evaluation systems in coordination with the University of
California.

(5) Achievement of the maximum feasible energy efficiency or
clean energy benefits, as well as job creation benefits for
Californians, resulting from projects implemented pursuant to this
chapter.

(6) Where applicable, ensuring LEAs assist classified school
employees with training and information to better understand how
they can support and maximize the achievement of energy savings
envisioned by the funded project.

(b) The Energy Commission shall allow the use of data analytics
of energy usage data, where possible, in the energy auditing,
evaluation, inventorying, measuring, and verification of projects.
To ensure quality of results, data analytics providers shall have
received prior technical validation by the Energy Commission, a
local utility, or the Public Utilities Commission.

(c) A community college district or LEA shall not use a sole
source process to award funds pursuant to this chapter. A
community college district or LEA may use the best value criteria
as defined in paragraph (1) of subdivision (c) of Section 20133 of
the Public Contract Code to award funds pursuant to this chapter.

(d) The Energy Commission shall adopt the guidelines in
accordance with this section at a publicly noticed meeting and
provide an opportunity for public comment. The Energy
Commission shall provide written public notice of a meeting at
least 30 days prior to the meeting.

(1) For substantive revision of the guidelines, the Energy
Commission shall provide written notice of a meeting at least 15
days prior to the meeting at which the revision is to be considered
or adopted.

(2) The adoption or revision of guidelines pursuant to this
subdivision is exempt from Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(e) Each participating LEA shall prioritize the eligible projects
within its jurisdiction taking into consideration, as applicable, at
least the following factors:

(1) The age of the school facilities, as well as any plans to close
or demolish the facilities.

(2) The proportion of pupils eligible for funds under Title I of
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301
et seq.) at particular schoolsites.

(3) Whether the facilities have been recently modernized.

(4) The facilities’ hours of operation, including whether the
facilities are operated on a year-round basis.

(5) The school’s energy intensity as determined from an energy
rating or benchmark system such as the United States
Environmental Protection Agency’s Energy Star system or other
acceptable benchmarking approach that may be available from
local utilities, the American Society for Heating, Refrigerating,
and Air-Conditioning Engineers, Inc., or reputable building analysis
software as is appropriate to the size, budget, and expertise
available to the school.

(6) The estimated financial return of each project’s investment
over the expected lifecycle of the project, in terms of net present
value and return on investment.

(7) Each project’s potential for energy demand reduction.

(8) The anticipated health and safety improvements or other
nonenergy benefits for each project.

(9) The individual or collective project’s ability to facilitate
matriculation of local residents into state-certified apprenticeship
programs.

(10) The expected number of trainees and direct full-time
employees likely to be engaged for each LEA’s annual funding
commitments based upon a formula to be made available by the
Energy Commission or California Workforce Investment Board.
The formula shall be stated as labor-intensities per total project
dollar expended, and may differentiate by type of improvement,
equipment, or building trade involved.

(11) The ability of the project to enhance workforce
development and employment opportunities, utilize members of
the California Conservation Corps, certified local conservation
corps, Youth Build, veterans, Green Partnership Academies,
nonprofit organizations, high school career technical academies,
high school regional occupational programs, or state-certified
apprenticeship programs, or to accommodate learning opportunities
for school pupils or at-risk youth in the community.

(f) The Superintendent of Public Instruction shall not distribute
funds to an LEA unless the LEA has submitted to the Energy
Commission, and the Energy Commission has approved, an
expenditure plan that outlines the energy projects to be funded.
An LEA shall utilize a simple form expenditure plan developed
by the Energy Commission. The Energy Commission shall
promptly review the plan to ensure that it meets the criteria
specified in this section and in the guidelines developed by the
Energy Commission. A portion of the funds may be distributed to
an LEA upon request for energy audits and other plan development
activities prior to submission of the plan.

(g) This section shall not affect the eligibility of any eligible
entity awarded a grant pursuant to this section to receive other
incentives available from federal, state, and local government, or
from public utilities or other sources, or to leverage the grant from
this section with any other incentive.

(h) Any limitation of funds awarded to individual projects
pursuant to this chapter shall not preclude or otherwise limit the
total amount of funds that a recipient LEA or community college
may otherwise be eligible to receive as a result of identifying
multiple projects that meet the overall objectives and criteria
described in this chapter.

(i) For a school facility that is not publicly owned, an LEA
receiving moneys pursuant to this chapter for a project for that
facility shall require that the school repay to the state all moneys
received from the Job Creation Fund for the project if the school
voluntarily vacates the facility within five years of project
completion. The facility owner shall repay to the state all moneys
received from the Job Creation Fund for the project if the school
was forced to vacate the facility within the life of the project
completion. All benefits of these public funds should be received
by the school utilizing the facility.

(j) It is the intent of the Legislature that monetary savings at
eligible institutions from retrofit and installation projects pursuant
to this section be used to benefit students and learning at those
institutions.

begin delete SEC. 55. end delete
begin insert SEC. 56. end insert   

Section 115 of Chapter 47 of the Statutes of 2013 is
amended to read:

Sec. 115.  

(a) The sum of two billion one hundred one million
one hundred sixty-one thousand dollars ($2,101,161,000) is hereby
appropriated from the General Fund for the purposes of this act as
follows:

(1) Two million dollars ($2,000,000) shall be appropriated to
the Governor’s Office of Planning and Research for purposes of
implementing Sections 42238.07, 52064, and 52064.5 of the
Education Code.

(2) Two billion sixty-seven million one hundred forty thousand
dollars ($2,067,140,000) shall be appropriated to the
Superintendent of Public Instruction and shall be allocated pursuant
to the calculation in subdivision (b) of Section 42238.03 of the
Education Code.

(3) Thirty-two million twenty-one thousand dollars
($32,021,000) shall be appropriated to the Superintendent of Public
Instruction and shall be allocated pursuant to the calculation in
subdivision (f) of Section 2575 of the Education Code.

(b) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the amount
appropriated in paragraphs (2) and (3) of subdivision (a) shall be
deemed to be “General Fund revenues appropriated for school
districts,” as defined in subdivision (c) of Section 41202 of the
Education Code, for the 2013-14 fiscal year, and included within
the “total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B,” as defined in subdivision (e) of Section 41202
of the Education Code, for the 2013-14 fiscal year.

begin delete SEC. 56. end delete
begin insert SEC. 57. end insert   

Section 83 of Chapter 48 of the Statutes of 2013 is
amended to read:

Sec. 83.  

(a) Notwithstanding any other law, the Inglewood
Unified School District, through the State Department of Education,
may request cashflow loans from the General Fund for a total of
up to fifty-five million dollars ($55,000,000) for emergency
operational purposes.

(b) Unless otherwise specified in this section, the terms and
conditions of any General Fund cashflow loan provided pursuant
to this section shall be subject to approval by the Director of
Finance and shall be consistent with the terms and conditions of
the General Fund emergency apportionment issued pursuant to
Chapter 325 of the Statutes of 2012. The terms and conditions of
the General Fund cashflow loan shall include authorization for the
payment of costs incurred before June 15, 2013, by the California
Infrastructure and Economic Development Bank to implement
Section 10 of Chapter 325 of the Statutes of 2012. Notwithstanding
the interest rates specified in the terms and conditions of the
General Fund loan issued pursuant to Chapter 325 of the Statutes
of 2012, the interest on these loans shall be charged at the annual
rate of return of the Pooled Money Investment Account, plus an
additional 2 percent.

(c) Once a General Fund cashflow loan is approved pursuant
to this section, and upon the order of the Director of Finance, the
Controller shall draw warrants against General Fund cash to the
Inglewood Unified School District to provide a cashflow loan.

(d) Upon approval of a General Fund cashflow loan pursuant
to this section, a repayment schedule shall be determined by the
Department of Finance. If a required payment is not made within
60 days after a scheduled date, upon order of the Department of
Finance, the Controller shall pay the defaulted General Fund
cashflow loan repayment by withholding that amount from the
next available payment that would otherwise be made to the county
treasurer on behalf of the school district pursuant to Section 14041
of the Education Code.

(e) The Department of Finance shall notify the Legislature
within 15 days of authorizing a General Fund cashflow loan
pursuant to this section.

(f) A cashflow loan from the General Fund authorized by this
section does not constitute budgetary expenditures. A cashflow
loan, and the repayment of a cashflow loan, made under this section
shall not affect the General Fund reserve.

(g) Issuance of a General Fund cashflow loan authorized
pursuant to this section shall require the Inglewood Unified School
District to abide by all provisions associated with the issuance of
the emergency loan specified in Chapter 325 of the Statutes of
2012, including those cited in Article 2 (commencing with Section
41320) and Article 2.5 (commencing with Section 41325) of
Chapter 3 of Part 24 of Division 3 of Title 2 of the Education Code.

(h) As a condition of requesting a General Fund cashflow loan
pursuant to this section, the Inglewood Unified School District
shall repay the twenty-nine million dollar ($29,000,000) General
Fund loan issued pursuant to Chapter 325 of the Statutes of 2012
from the proceeds of the school district’s initial request for a
General Fund cashflow loan.

begin delete SEC. 57. end delete
begin insert SEC. 58. end insert   

Item 6110-001-0001 of Section 2.00 of the Budget
Act of 2013 is amended to read:

 

6110-001-0001--For support of Department of Education

38,652,000

Schedule:

(2)

20-Instructional Support

148,109,000

(3)

30-Special Programs

69,267,000

(6)

42.01-Department Management and Special Services

34,901,000

(7)

42.02-Distributed Department Management and Special Services

−34,901,000

(8)

Reimbursements

−16,104,000

(9)

Amount payable from the Federal Trust Fund (Item 6110-001-0890)

-165,605,000

(10)

Amount payable from the Mental Health Services Fund (Item 6110-001-3085)

−179,000

Provisions:

1.

Notwithstanding Section 33190 of the Education Code or any other provision of law, the State Department of Education shall expend no funds to prepare (a) a statewide summary of pupil performance on school district proficiency assessments or (b) a compilation of information on private schools with five or fewer pupils.

2.

Funds appropriated in this item may be expended or encumbered to make one or more payments under a personal services contract of a visiting educator pursuant to Section 19050.8 of the Government Code, a long-term special consultant services contract, or an employment contract between an entity that is not a state agency and a person who is under the direct or daily supervision of a state agency, only if all of the following conditions are met:

(a)

The person providing service under the contract provides full financial disclosure to the Fair Political Practices Commission in accordance with the rules and regulations of the Commission.

(b)

The service provided under the contract does not result in the displacement of any represented civil service employee.

(c)

The rate of compensation for salary and health benefits for the person providing service under the contract does not exceed by more than 10 percent the current rate of compensation for salary and health benefits determined by the Department of Human Resources for civil service personnel in a comparable position. The payment of any other compensation or any reimbursement for travel or per diem expenses shall be in accordance with the State Administrative Manual and the rules and regulations of the California Victim Compensation and Government Claims Board.

3.

The funds appropriated in this item may not be expended for any REACH program.

4.

The funds appropriated in this item may not be expended for the development or dissemination of program advisories, including, but not limited to, program advisories on the subject areas of reading, writing, and mathematics, unless explicitly authorized by the State Board of Education.

5.

Of the funds appropriated in this item, $206,000 shall be available as matching funds for the State Department of Rehabilitation to provide coordinated services to disabled pupils. Expenditure of the funds shall be identified in the memorandum of understanding or other written agreement with the State Department of Rehabilitation to ensure an appropriate match to federal vocational rehabilitation funds.

6.

Of the funds appropriated in this item, no less than $1,973,000 is available for support of child care services, including state preschool.

7.

By October 31 of each year, the State Department of Education (SDE) shall provide to the Department of Finance a file of all charter school average daily attendance (ADA) and state and local revenue associated with charter school general purpose entitlements as part of the P2 Revenue Limit File. By March 1 of each year, the SDE shall provide to the Department of Finance a file of all charter school ADA and state and local revenue associated with charter school general purpose entitlements as part of the P1 Revenue Limit File. It is the expectation that such reports will be provided annually.

8.

On or before April 15 of each year, the State Department of Education (SDE) shall provide to the Department of Finance an electronic file that includes complete district- and county-level state appropriations limit information reported to the SDE. The SDE shall make every effort to ensure that all districts have submitted the necessary information requested on the relevant reporting forms.

9.

The State Department of Education shall make information available to the Department of Finance, the Legislative Analyst’s Office, and the budget committees of each house of the Legislature by October 31, March 31, and May 31 of each year regarding the amount of Proposition 98 savings estimated to be available for reversion by June 30 of that year.

10.

Of the reimbursement funds appropriated in this item, $1,300,000 shall be available to the State Department of Education for nutrition education and physical activity promotion pursuant to an interagency agreement with the State Department of State Hospitals.

11.

Reimbursement expenditures pursuant to this item resulting from the imposition by the State Department of Education (SDE) of a commercial copyright fee may not be expended sooner than 30 days after the SDE submits to the Department of Finance a legal opinion affirming the authority to impose such fees and the arguments supporting that position against any objections or legal challenges to the fee filed with the SDE. Any funds received pursuant to imposition of a commercial copyright fee may only be expended as necessary for outside counsel contingent on a certification of the Superintendent of Public Instruction that sufficient expertise is not available within departmental legal staff. The SDE shall not expend greater than $300,000 for such purposes without first notifying the Department of Finance of the necessity therefor, and upon receiving approval in writing.

12.

Of the amount appropriated in this item, $139,000 from reimbursement funds may be expended for administering the Education Technology K-12 Voucher Program pursuant to the Microsoft settlement.

13.

Of the funds appropriated in this item, up to $1,011,000 is for dispute resolution services, including mediation and fair hearing services, provided through contract for special education programs.

14.

Of the reimbursement funds appropriated in this item, $422,000 shall be available to the State Department of Education (SDE) to contract for assistance in developing an approved listing of food and beverage items that comply with the nutrition standards of Chapters 235 and 237 of the Statutes of 2005. In order to fund the development and maintenance of the approved product listing, the SDE shall collect a fee, as it deems appropriate, from vendors seeking to have their products reviewed for potential placement on the approved product listing.

15.

Of the reimbursement funds appropriated in this item, $612,000 is provided to the State Department of Education for the oversight of State Board of Education-authorized charter schools. The Department of Finance may administratively establish up to 2.0 positions for this purpose as workload materializes.

16.

Of the funds appropriated in this item, $158,000 and 1.5 positions are provided to support new requirements contained in Chapter 723 of the Statutes of 2011, which strengthens antidiscrimination and antibullying policies in schools.

17.

Of the funds appropriated in this item, $109,000 and 1.0 position is provided to support new requirements contained in Chapter 776 of the Statutes of 2012, which clarifies the prohibition against public schools charging pupil fees for participation in educational activities.

18.

Of the funds appropriated in this item, $217,000 and 2.0 positions are available for workload to implement Chapter 577 of the Statutes of 2012, including activities necessary to revise the Academic Performance Index.

19.

Of the funds appropriated in this item, $109,000 shall be for 1.0 position within the State Department of Education to support activities associated with the Clean Energy Job Creation Fund.

20.

Of the funds appropriated in this item, $233,000 is available in one-time funds for the Instructional Quality Commission to support activities necessary to meet the deadlines required pursuant to Section 60207 of the Education Code for development of common core curriculum frameworks for mathematics and English language arts.

22.

Of the amount appropriated in this item, $459,000 is provided to support the Career Technical Education Pathways Trust one-time grant program pursuant to Chapter 48 of the Statutes of 2013 in the 2013-14 fiscal year. The funds appropriated in this item shall support the activities authorized by Section 86 of Chapter 48 of the Statutes of 2013, as follows:

(a)

3.0 limited-term 3-year positions to administer and oversee the one-time California Career Technical Education Pathways Trust competitive grant program.

(b)

Grant application development and distribution, and grantee selection.

(c)

Desk monitoring of grant recipients and technical assistance.

(d)

An external data repository, data collection, and outcome measures reporting.

23.

Of the amount appropriated in this item, $570,000 and 5.0 positions are provided to support the Local Control Accountability Plan state-level activities pursuant to Chapter 48 of the Statutes of 2013. These funds and positions shall be used by the State Department of Education to support activities including, but not limited to, department-wide coordination of consistent Local Control Funding Formula information and its dissemination, and assisting the development of regulations and Local Control and Accountability Plan templates. Of the amount appropriated in this item, up to an additional seven hundred twenty-three thousand dollars ($723,000) and 6.0 positions may be expended for these state-level activities by the State Department of Education upon approval of an expenditure plan, or plans, for those funds by the Department of Finance. The Department of Finance shall notify, in writing, the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, of any expenditure plan approvals and positions established pursuant to the authority authorized in this provision.

24.

Of the amount appropriated in this item, $933,000 and 6.0 positions are provided to support the Local Control Funding Formula administration pursuant to Chapter 48 of the Statutes of 2013. These funds and positions shall be used by the State Department of Education to support the apportionment of, and fiscal oversight of, funding pursuant to the Local Control Funding Formula. Of the amount appropriated in this item, up to an additional four hundred seventy-nine thousand dollars ($479,000) and 5.0 positions may be expended to support Local Control Funding Formula administration by the State Department of Education upon approval of an expenditure plan, or plans, for those funds by the Department of Finance. The Department of Finance shall notify, in writing, the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee, of any expenditure plan approvals and positions established pursuant to the authority authorized in this provision.

 

begin delete SEC. 58. end delete
begin insert SEC. 59. end insert   

Item 6110-280-0001 of Section 2.00 of the Budget
Act of 2013 is amended to read:

 

6110-280-0001--For local assistance, Department of Education (Proposition 98), Program 20.40.800 Instructional Support - Career Technical Education

250,000,000

Provisions:

1.

Of the funds appropriated in this item, $249,750,000 is available for one-time grants for the Career Technical Education Pathways Grant Program pursuant to legislation to be adopted during the 2013-14 fiscal year.

2.

Of the funds appropriated in this item, $250,000 is provided on a one-time basis for an independent evaluation of the Career Technical Education Pathways Grant Program. The State Department of Education shall allocate the funding to a local educational agency that the State Department of Education has identified to contract for the evaluation.

 

begin delete SEC. 59. end delete
begin insert SEC. 60. end insert   

For purposes of calculating the local control funding
formula transition adjustment pursuant to subdivision (b) of Section
42238.03 of the Education Code for the Torrance Unified School
District for the 2013-14 and 2014-15 fiscal years, the
Superintendent of Public Instruction shall reduce the amount of
entitlement for Item 6110-105-0001, as set forth in paragraph (2)
of subdivision (a) of Section 42238.03 of the Education Code, by
three million four hundred seventy-three thousand five hundred
seventy-four dollars ($3,473,574). For the 2013-14 and 2014-15
fiscal years, the Torrance Unified School District shall continue
to allocate three million four hundred seventy-three thousand five
hundred seventy-four dollars ($3,473,574) in accordance with
paragraph (5) of subdivision (a) of Section 42238.03 of the
Education Code.

begin delete SEC. 60. end delete
begin insert SEC. 61. end insert   

(a) On or before June 30, 2014, the Board of
Governors of the California Community Colleges is authorized to
increase the total General Fund apportionment allocations to be
made between July 1, 2013, and February 1, 2014, specified in
subdivisions (d) and (e) of Section 58770 of Title 5 of the
California Code of Regulations and authorized in subdivision (b)
of Section 70901 of the Education Code, by an amount to be
determined by the Director of Finance.

(b) The funds in subdivision (a) shall be increased only to the
extent that revenues distributed to community college districts
pursuant to Sections 34177, 34179.5, 34179.6, 34183, and 34188
of the Health and Safety Code are less than the estimated amount
reflected in the Budget Act of 2012, as determined by the Director
of Finance.

(c)  In making the determinations pursuant to subdivision (b),
the Director of Finance shall consider any other local property tax
revenue, student fee revenue, or other sources of revenue collected
in excess of, or in deficit of, the estimated amount reflected in the
Budget Act of 2012.

(d)  The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to increase the total allocations to be made between
July 1, 2013, and February 1, 2014, and the amount needed to
address the shortfall determined pursuant to subdivision (b). The
Controller shall make the funds available not sooner than five days
after this notification and the Office of the Chancellor of the
California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.

begin delete SEC. 61. end delete
begin insert SEC. 62. end insert   

(a) On or before December 31, 2013, an amount to
be determined by the Director of Finance of up to, but not more
than, one hundred million dollars ($100,000,000) is hereby
appropriated from the General Fund to the Board of Governors of
the California Community Colleges in augmentation of Schedule
(1) in Item 6870-101-0001 of Section 2.00 of the Budget Act of
2012.

(b) The funds appropriated in subdivision (a) shall be available
only to the extent that revenues distributed to community college
districts pursuant to Sections 34177, 34179.5, 34179.6, 34183,
and 34188 of the Health and Safety Code are less than the estimated
amount reflected in the Budget Act of 2012, as determined by the
Director of Finance.

(c) On or before December 31, 2013, the Director of Finance
shall determine if the revenues distributed to community college
districts pursuant to Sections 34177, 34179.5, 34179.6, 34183,
and 34188 of the Health and Safety Code exceed the estimated
amount reflected in the Budget Act of 2012, and shall reduce
Schedule (1) in Item 6870-101-0001 of Section 2.00 of the Budget
Act of 2012 by the amount of that excess.

(d) In making the determinations pursuant to subdivisions (b)
and (c), the Director of Finance shall consider any other local
property tax revenue, student fee revenue, or other sources of
revenue collected in excess of, or in deficit of, the estimated
amount reflected in the Budget Act of 2012.

(e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his
or her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a), or to make the reduction
pursuant to subdivision (c), and of the amount needed to address
the property tax shortfall determined pursuant to subdivision (b),
or the amount of the reduction made pursuant to subdivision (c).
The Controller shall make the funds available not sooner than five
days after this notification and the Office of the Chancellor of the
California Community Colleges shall work with the Controller to
allocate these funds to community college districts as soon as
practicable.

(f) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be “General Fund
revenues appropriated for community college districts,” as defined
in subdivision (d) of Section 41202 of the Education Code, for the
2012-13 fiscal year, and included within the “total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B,” as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2012-13 fiscal year.

begin insert

begin insert SEC. 63. end insert   

end insert begin insert

The Legislature finds and declares that a special law,
as set forth in Section 14 of this act, is necessary and that a general
law cannot be made applicable within the meaning of Section 16
of Article IV of the California Constitution because of the unique
circumstances relating to the fiscal emergency in the South
Monterey County Joint Union High School District.

end insert

begin delete SEC. 62. end delete
begin insert SEC. 64. end insert   

The Legislature finds and declares that a special law,
as set forth in Section begin delete 56 end delete begin insert 57 end insert of this act, is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique circumstances relating to the fiscal emergency in the
Inglewood Unified School District.

begin insert

begin insert SEC. 65. end insert   

end insert begin insert

Section 17.5 of this bill incorporates amendments to
Section 42127 of the Education Code proposed by both this bill
and Senate Bill 344. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
but this bill becomes operative first, (2) each bill amends Section
42127 of the Education Code, and (3) this bill is enacted after
Senate Bill 344, in which case Section 42127 of the Education
Code, as amended by Section 17 of this bill, shall remain operative
only until the operative date of Senate Bill 344, at which time
Section 17.5 of this bill shall become operative.

end insert

begin insert

begin insert SEC. 66. end insert   

end insert begin insert

Section 40.5 of this bill incorporates amendments to
Section 52060 of the Education Code proposed by both this bill
and Senate Bill 344. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
but this bill becomes operative first, (2) each bill amends Section
52060 of the Education Code, and (3) this bill is enacted after
Senate Bill 344, in which case Section 52060 of the Education
Code, as amended by Section 40 of this bill, shall remain operative
only until the operative date of Senate Bill 344, at which time
Section 40.5 of this bill shall become operative.

end insert

begin insert

begin insert SEC. 67. end insert   

end insert begin insert

Section 41.5 of this bill incorporates amendments to
Section 52061 of the Education Code proposed by both this bill
and Senate Bill 344. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
but this bill becomes operative first, (2) each bill amends Section
52061 of the Education Code, and (3) this bill is enacted after
Senate Bill 344, in which case Section 52061 of the Education
Code, as amended by Section 41 of this bill, shall remain operative
only until the operative date of Senate Bill 344, at which time
Section 41.5 of this bill shall become operative.

end insert

begin insert

begin insert SEC. 68. end insert   

end insert begin insert

Section 43.5 of this bill incorporates amendments to
Section 52064 of the Education Code proposed by both this bill
and Senate Bill 344. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
but this bill becomes operative first, (2) each bill amends Section
52064 of the Education Code, and (3) this bill is enacted after
Senate Bill 344, in which case Section 52064 of the Education
Code, as amended by Section 43 of this bill, shall remain operative
only until the operative date of Senate Bill 344, at which time
Section 43.5 of this bill shall become operative.

end insert

begin insert

begin insert SEC. 69. end insert   

end insert begin insert

Section 44.5 of this bill incorporates amendments to
Section 52066 of the Education Code proposed by both this bill
and Senate Bill 344. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2014,
but this bill becomes operative first, (2) each bill amends Section
52066 of the Education Code, and (3) this bill is enacted after
Senate Bill 344, in which case Section 52066 of the Education
Code, as amended by Section 44 of this bill, shall remain operative
only until the operative date of Senate Bill 344, at which time
Section 44.5 of this bill shall become operative.

end insert

begin delete SEC. 63. end delete
begin insert SEC. 70. end insert   

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