Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1064

Introduced by Assembly Member begin delete Roger Hernández end delete begin insert Roger end insert begin insert  Hernández end insert

February 26, 2015

An act to amend Section 33338 of begin insert , and to amend and repeal Section 12000 of, end insert the Education Code, relating to education finance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1064, as amended, begin delete Roger Hernández end delete   begin insert Roger Hernández end insert . Education finance: indirect cost rates.

Existing law begin delete requires end delete begin insert requires, until January 1, 2016, end insert the State Department of Education or any other state agency that administers a grant or allocation of begin insert federal or end insert state funds to a school district to allow an indirect cost rate that is not less than the indirect cost rate established by the department, unless a lower rate is required by law.

This bill would begin delete make a nonsubstantive change to that provision. end delete begin insert delete the January 1, 2016, repeal date for those provisions, thus extending their operation indefinitely. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 12000 of the end insert begin insert Education Code end insert begin insert , as amended
by Section 1 of Chapter 587 of the Statutes of 2012, is amended
to read: end insert

12000.  

(a) If, by any act of Congress, funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment
and distribution of those funds to school districts shall, insofar as
consistent with the requirements prescribed by the federal law and
implementing rules and regulations, be governed by the standards
set forth in this article.

(b) If a federal law designates a state educational agency or
other agency or officer primarily responsible for state supervision
of public schools, that designation shall be deemed to refer to the
state board. The state board shall make timely application for any
federal funds made available, and shall, pursuant to the federal
law and this article, direct the allocation and apportionment of the
federal funds to school districts.

(c) The department and any other state agency that administers
a grant or allocation of federal funds to a school district, shall allow
an indirect cost rate, as that term is defined in Section 33329, that
is not less than the indirect cost rate established by the department
for each school district, unless federal law requires a lower indirect
cost rate for school districts that receive federal funds.

(d) For purposes of this section and Section 12001, “school
districts” include school districts, county offices of education, and
other educational agencies or entities deemed eligible pursuant to
state and federal law.

begin delete

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

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 12000 of the end insert begin insert Education Code end insert begin insert , as added by
Section 2 of Chapter 587 of the Statutes of 2012, is repealed. end insert

begin delete

12000.  

(a) If, by any act of Congress, funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment
and distribution of those funds to school districts shall, insofar as
consistent with the requirements prescribed by the federal law and
implementing rules and regulations, be governed by the standards
set forth in this article.

(b) If a federal law designates a state educational agency or
other agency or officer primarily responsible for state supervision
of public schools, that designation shall be deemed to refer to the
state board. The state board shall make timely application for any
federal funds made available, and shall, pursuant to the federal
law and this article, direct the allocation and apportionment of the
federal funds to school districts.

(c) For purposes of this section and Section 12001, “school
districts” include school districts, county offices of education, and
other educational agencies or entities deemed eligible pursuant to
state and federal law.

(d) This section shall become operative on January 1, 2016.

end delete

begin delete SECTION 1. end delete
begin insert SEC. 3. end insert   

Section 33338 of the Education Code is amended to
read:

33338.  

(a) The department or any other state agency that
administers a grant or allocation of state funds to a school district
shall allow an indirect cost rate that is not less than the indirect
cost rate established by the department, unless a lower rate is
required by law.

(b) For purposes of this section, the following terms have the
following meanings:

(1) “Direct cost” means a cost that provides measurable, direct
benefits to a particular program of an agency. Direct costs of a
local educational agency include, but are not necessarily limited
to, salaries and benefits of teachers and instructional aides, costs
for purchasing textbooks and instructional supplies, and costs for
providing pupils with counseling, health services, and
transportation.

(2) “Indirect cost” means the agencywide, general management
cost of the activities for the direction and control of the agency as
a whole. Indirect costs include, but are not necessarily limited to,
administrative activities necessary for the general operation of the
agency, such as accounting, budgeting, payroll preparation,
personnel services, purchasing, and centralized data processing.

(3) “Indirect cost rate” means the indirect cost rate established
by the department for each school district.

(4) “School district” has the same meaning as defined in
subdivision (d) of Section 12000.

begin delete

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

end delete