Amended in Senate July 16, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1064


Introduced by Assembly Member Roger Hernández

February 26, 2015


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

LEGISLATIVE COUNSEL’S DIGEST

AB 1064, as amended, Roger Hernández. Education finance: indirect cost rates.

Existing law requires, until January 1, 2016, the State Department of Education or any other state agency that administers a grant or allocation of federal or 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 delete the January 1, 2016, repeal date for those provisions, thus extending their operation indefinitely.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P1    1

SECTION 1.  

Section 12000 of the Education Code, as amended
2by Section 1 of Chapter 587 of the Statutes of 2012, is amended
3to read:

P2    1

12000.  

(a) If, by any act of Congress, funds are provided as
2federal aid to education to the several states and the disposition of
3the funds is not otherwise provided for by or under the act of
4Congress or by or under any law of this state, the apportionment
5and distribution of those funds to school districts shall, insofar as
6consistent with the requirements prescribed by the federal law and
7implementing rules and regulations, be governed by the standards
8set forth in this article.

9(b) If a federal law designates a state educational agency or
10other agency or officer primarily responsible for state supervision
11of public schools, that designation shall be deemed to refer to the
12state board. The state board shall make timely application for any
13federal funds made available, and shall, pursuant to the federal
14law and this article, direct the allocation and apportionment of the
15federal funds to school districts.

16(c) The department and any other state agency that administers
17a grant or allocation of federal funds to a school district, shall allow
18an indirect cost rate, as that term is defined in Sectionbegin delete 33329,end delete
19begin insert 33338,end insert that is not less than the indirect cost rate established by the
20department for each school district, unless federal law requires a
21lower indirect cost rate for school districts that receive federal
22funds.

23(d) For purposes of this section and Section 12001, “school
24districts” include school districts, county offices of education, and
25other educational agencies or entities deemed eligible pursuant to
26state and federal law.

27

SEC. 2.  

Section 12000 of the Education Code, as added by
28Section 2 of Chapter 587 of the Statutes of 2012, is repealed.

29

SEC. 3.  

Section 33338 of the Education Code is amended to
30read:

31

33338.  

(a) The department or any other state agency that
32administers a grant or allocation of state funds to a school district
33shall allow an indirect cost rate that is not less than the indirect
34cost rate established by the department, unless a lower rate is
35required by law.

36(b) For purposes of this section, the following terms have the
37following meanings:

38(1) “Direct cost” means a cost that provides measurable, direct
39benefits to a particular program of an agency. Direct costs of a
40local educational agency include, but are not necessarily limited
P3    1to, salaries and benefits of teachers and instructional aides, costs
2for purchasing textbooks and instructional supplies, and costs for
3providing pupils with counseling, health services, and
4transportation.

5(2) “Indirect cost” means the agencywide, general management
6cost of the activities for the direction and control of the agency as
7a whole. Indirect costs include, but are not necessarily limited to,
8administrative activities necessary for the general operation of the
9agency, such as accounting, budgeting, payroll preparation,
10personnel services, purchasing, and centralized data processing.

11(3) “Indirect cost rate” means the indirect cost rate established
12by the department for each school district.

13(4) “School district” has the same meaning as defined in
14subdivision (d) of Section 12000.



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