BILL NUMBER: SB 386	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 9, 2014
	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator Correa

                        FEBRUARY 20, 2013

   An act to amend Section 2575 of the Education Code, relating to
school finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 386, as amended, Correa. School finance: county superintendents
of schools: regional occupational centers or programs.
   Existing law, for the 2013-14 and 2014-15 fiscal years only,
prohibits a county superintendent of schools who, in the 2012-13
fiscal year, received funds from specified funding sources on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency, from redirecting that funding for another
purpose unless otherwise authorized by law or pursuant to an
agreement between the regional occupational center or program joint
powers agency and the contracting county superintendent of schools.
   This bill would prohibit a county superintendent of schools who,
in the 2012-13 fiscal year, received funds from specified funding
sources on behalf of, or provided funds to, a regional occupational
center or program consortium, from redirecting that funding for
another purpose unless otherwise authorized by law or pursuant to an
agreement between the members of the regional occupational center or
program consortium and the county superintendent of schools.  The
bill would require the calculation of the base entitlement for the
county superintendent of schools and the members of the regional
occupational center or program consortium to be adjusted, as
specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

  SECTION 1.  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, 6110-240-0001,
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
superintendent of schools 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 by 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.
   (3) 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 consortium shall
not redirect that funding for another purpose unless otherwise
authorized by law or pursuant to an agreement between the members of
the regional occupational center or program consortium and the county
superintendent of schools.  An amount equal to the amount of
funds transferred to members of a regional occupational center or
program consortium by the county superintendent of schools pursuant
to this paragraph   shall be excluded from the calculation
of the base entitlement pursuant to subdivision (a). An amount equal
to the amount of funds received by a member of a regional
occupational center or program consortium from the county
superintendent of schools pursuant to this paragraph shall be
included in the calculation of the receiving member's base
entitlement pursuant to subdivision (a) of Section 42238.03. 
   (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 by 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.