BILL NUMBER: AB 2659	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2016

INTRODUCED BY   Committee on Education (Assembly Members O'Donnell
(Chair), Olsen (Vice Chair), Kim, McCarty, Santiago, Thurmond, and
Weber)

                        FEBRUARY 19, 2016

   An act to amend Sections  56030.5,   8261,
351   47, 35514, 35531, 35545, 35555, 35556, 35559, 35561,
35562, 35563, 35566, 35572, 35574, 35576, 35577, 35578, 35579,
35700.1, 35705.5, 35706, 35706.5, 35708, 35709, 35710, 35711,
35720.5, 35736, 35740, 35753, 35754, 35755, 35759, 35780, 35780.1,
37223, 41326, 41327.2, 41339, 42103, 42127.1, 47605.1, 47605.6,
47612.1, 48300, 51781, 52302.8, 52520,  56337.5, 56339, 56426.6,
 and 56441.11 of   56441.11, 56475, 60800, and
60900 of, and to repeal Sections 32253, 41020.6, 41320.3, and 49082
of,  the Education Code,   and to amend Section 12 of
Chapter 525 of the Statutes of 1995,  relating to 
special   elementary and secondary  education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2659, as amended, Committee on Education.  Special
education.   Elementary and secondary education: omnibus
revisions.  
   Existing law establishes a system of public elementary and
secondary schools throughout the state. These schools are operated by
local educational agencies and provide instruction to pupils in
kindergarten and grades 1 to 12, inclusive. 
   Existing law requires a free appropriate public education to be
made available to individuals with exceptional needs in accordance
with specified federal regulations adopted pursuant to the federal
Individuals with Disabilities Education Act.
   This bill would make changes  to   in
statutes relating to   public elementary and secondary
schools, including specified statutes relating to the educational
services provided to individuals with exceptional needs. The bill
would make clarifying changes in numerous terms and phrases 
 ,  conform state statutes to federal  regulations
  regulations,  and  would  update
cross-references  to statutes and  to state regulations
adopted pursuant to federal regulations.  The bill would delete
  requirements for the submission of numerous reports
relating to elementary and secondary education. 
   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 56030.5 of the Education
Code is amended to read:
   56030.5.  "Severely disabled" means individuals with exceptional
needs who require intensive instruction and training in programs
serving pupils with the following profound disabilities: autism,
blindness, deafness, severe orthopedic impairments, emotional
disturbances, severe intellectual disability, and those individuals
who would have been eligible for enrollment in a development center
for handicapped pupils under Chapter 6 (commencing with Section
56800), as it read on January 1, 1980. 
   SECTION 1.    Section 8261 of the  
Education Code   is amended to read: 
   8261.  (a) The Superintendent shall adopt rules and regulations
pursuant to this chapter. The rules and regulations shall include,
but not be limited to, provisions that do all of the following:
   (1) Provide clear guidelines for the selection of agencies when
child development contracts are let, including, but not limited to,
specification that any agency headquartered in the proposed service
area on January 1, 1985, will be given priority for a new contract in
that area, unless the department makes a written determination that
(A) the agency is not able to deliver the level of services specified
in the request for proposal, or (B) the department has notified the
agency that it is not in compliance with the terms of its contract.
   (2) Provide for a contract monitoring system to ensure that
agencies expend funds received pursuant to this chapter in accordance
with the provisions of their contracts.
   (3) Specify adequate standards of agency performance.
   (4) Establish reporting requirements for service reports,
including provisions for varying the frequency with which these
reports are to be submitted on the basis of agency performance.
   (5) Specify standards for withholding payments to agencies that
fail to submit required fiscal reports.
   (6) Set forth standards for department site visits to contracting
agencies, including, but not limited to, specification as to the
purpose of the visits, the personnel that will perform these visits,
and the frequency of these visits which shall be as frequently as
staff and budget resources permit.  By September 1 of each
year, the department shall report to the Senate Education, Senate
Health and Human Services, Assembly Education, and Assembly Human
Services Committees on the number of visits conducted during the
previous fiscal year pursuant to this paragraph. 
   (7) Authorize the department to develop a process that requires
every contracting agency to recompete for continued funding no less
frequently than every five years.
   (b) The Superintendent shall consult with the State Department of
Social Services with respect to rules and regulations adopted
relative to the disbursal of federal funds under Title XX of the
federal Social Security Act.
   (c) For purposes of expediting the implementation of state or
federal legislation to expand child care services, the Superintendent
may waive (1) the regulations regarding the point qualifications
for, and the process and scoring of, interviews of contract
applicants pursuant to Section 18002 of Title 5 of the California
Code of Regulations, or (2) the time limitations for scheduling and
notification of appeal hearings and their results pursuant to Section
18003 of Title 5 of the California Code of Regulations. The
Superintendent shall ensure that the appeal hearings provided for in
Section 18003 of Title 5 of the California Code of Regulations are
conducted in a timely manner.
   (d) (1) Child care and development programs operated under
contract from funds made available pursuant to the federal Child Care
and Development Fund, shall be administered according to Chapter 19
(commencing with Section 17906) of Division 1 of Title 5 of the
California Code of Regulations, unless provisions of these
regulations conflict with federal regulations. If state and federal
regulations conflict, the federal regulations shall apply unless a
waiver of federal regulations is authorized.
   (2) For purposes of this section, "Child Care and Development Fund"
has the same meaning as in Section 98.2 of Title 45 of the Code of
Federal Regulations.
   SEC. 2.    Section 32253 of the   Education
Code   is repealed.  
   32253.  The Department of Education shall evaluate the
effectiveness of the School Safety and Security Resources Unit and
shall submit a report thereof to the Legislature for each fiscal year
subsequent to the fiscal year in which funds are made available
pursuant to Section 32254. 
   SEC. 3.    Section 35147 of the   Education
Code   is amended to read: 
   35147.  (a) Except as specified in this section, any meeting of
the councils or committees specified in subdivision (b) is exempt
from the provisions of this article, the Bagley-Keene Open Meeting
Act (Article 9 (commencing with Section 11120) of Chapter 1 of
Division 3 of Title 2 of the Government Code), and the Ralph M. Brown
Act (Chapter 9 (commencing with Section 54950) of Division 2 of
Title 5 of the Government Code).
   (b) The councils and schoolsite advisory committees established
pursuant to Sections  52012, 52065,   52063,
52069, 52176, and 52852, subdivision (b) of Section 54425,
Sections  54444.2, 54724,   54444.2  and
62002.5, and committees formed pursuant to Section 11503  or
Section 2604 of Title 25 of the United States Code,  are
subject to this section.
   (c)  (1)    Any meeting held by a council or
committee specified in subdivision (b) shall be open to the public
and any member of the public shall be able to address the council or
committee during the meeting on any item within the subject matter
jurisdiction of the council or committee. Notice of the meeting shall
be posted at the schoolsite, or other appropriate place accessible
to the public, at least 72 hours before the time set for the meeting.
The notice shall specify the date, time, and location of the meeting
and contain an agenda describing each item of business to be
discussed or acted upon. The council or committee may not take any
action on any item of business unless that item appeared on the
posted agenda or unless the council or committee members present, by
unanimous vote, find that there is a need to take immediate action
and that the need for action came to the attention of the council or
committee subsequent to the posting of the agenda.  Questions

    (2)     Questions  or brief statements
made at a meeting by members of the council, committee, or public
that do not have a significant effect on pupils or employees in the
school or school  district   district,  or
that can be resolved solely by the provision of information need not
be described on an agenda as items of business. If a council or
committee violates the procedural meeting requirements of this
section and upon demand of any person, the council or committee shall
reconsider the item at its next meeting, after allowing for public
input on the item.
   (d) Any materials provided to a schoolsite council shall be made
available to any member of the public who requests the materials
pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title  1).
  1 of the Government Code). 
   SEC. 4.    Section 35514 of the   Education
Code   is amended to read: 
   35514.  As used in this chapter and in Chapter 4 (commencing with
Section 35700):
   (a) "Affected district" means a  school  district that
has been, or is proposed to be, affected by an action to reorganize
pursuant to Section 35511 or by an action to lapse a  school
 district pursuant to Section 35780.1. Affected districts
include all of the following  school  district types:
   (1) "Original district" means a  school  district as it
existed before an action to reorganize pursuant to Section 35511 or
before an action to lapse a  school  district pursuant to
Section 35780.1. The boundaries of an "original district" are those
of the  school  district as it existed immediately before
the action to reorganize or lapse.
   (2) "Former district" means a  school  district that has
been wholly included in another  school  district, or has
had all of its territory made part of two or more other  school
 districts, through any action taken pursuant to Section 35511
or through a  lapse   lapsation  pursuant
to Section 35780.1. The boundaries of a former district are those of
the  school  district as it existed immediately before an
action to reorganize or lapse.
   (3) "New district" means a  school  district that is
formed from all or portions of one or more other  school 
districts by an action to reorganize taken pursuant to subdivision
(a) of Section 35511. A new district does not exist before such an
action.
   (4) "Acquiring district" means a  school  district that
has all or portions of one or more other  school  districts
transferred into, or lapsed into, its boundaries pursuant to
subdivision (b) of Section 35511 or Section 35780.1.
   (5) "Divided district" means a  school  district that has
had a portion of its territory become part of a new  school
 district or transferred into one or more other  school
 districts by an action to reorganize taken pursuant to Section
35511.
   (A) The "reorganized portion of a divided district" means the
portion of the divided  school  district's territory that
becomes part of a new  school  district or is transferred
into one or more other  school  districts.
   (B) The "remaining portion of a divided district" means the
portion of the divided  school  district's territory that
does not become part of a new  school  district or that is
not transferred into one or more other  school  districts.
   (6) "Reorganized district" means a  school  district that
is a "new district," an "acquiring district," or a "divided
district."
   (b) "Districts" means school districts of every kind or class.
   SEC. 5.    Section 35531 of the   Education
Code   is amended to read: 
   35531.  An action to form a unified school district pursuant to
Section 35543   35542  is complete upon the
date of completion of the action by which the boundaries of the 
school  districts comprising the unified school district become
coterminous.
   SEC. 6.    Section 35545 of the   Education
Code  is amended to read: 
   35545.  (a)  Prior to   Before  the date
upon which a  newly organized or  reorganized
district becomes effective for all purposes, the county committee may
include all, or part of, the territory in plans and recommendations
for further reorganization.
   (b) During the first five years after the effective date for all
purposes of the formation of a  school   new
 district, no territory shall be removed from the  school
 district without the consent of the governing board of the 
school  district.
   SEC. 7.    Section 35555 of the   Education
Code   is amended to read: 
   35555.   (a)    The reorganization of any school
district or  school  districts shall not affect the
classification of certificated employees already employed by any
school district affected. Those employees have the same status with
respect to their classification by the  school  district,
including time served as probationary employees of the  school
 district, after the reorganization as they had  prior
to   before  it. If the reorganization results in
the school or other place in which the employee is employed being
maintained by another  school  district, the employee, if a
permanent employee of the  school  district that formerly
maintained the school or other place of employment, shall be employed
as a permanent employee of the  school  district 
which   that  thereafter maintains the school or
other place of employment, unless the employee elects  prior
to   before  February 1 of the year in which the
action will become effective for all purposes to continue in the
employ of the first  school  district. 
    If 
    (b)     If  the employee is a
probationary employee of the  school  district 
which   that  formerly maintained the school or
other place of employment, he or she shall be employed by the 
school  district that thereafter maintains the school or other
place of employment, unless the probationary employee is terminated
by the  school  district pursuant to Section 44929.21,
44948, 44948.3, 44949, or 44955, and, if not so terminated, his or
her status with respect to classification by the  school 
district shall be the same as it would have been had the school or
other place of employment continued to be maintained by the 
school  district  which   that 
formerly maintained it. As used in this paragraph, "the school or
other place in which the employee is employed" and all references
thereto, includes, but is not  necessarily  limited to, the
school services or school program  which,  
that,  as a result of any reorganization of a school district,
will be provided by another  school  district, 
regardless   irrespective  of whether any
particular building or buildings in which the schoolwork or school
program was conducted is physically located in the new
  reorganized  district and  regardless
  irrespective  of whether any new
  reorganized  district  resulting from the
reorganization  elects to provide for the education of its
pupils by contracting with another school district until the 
new   reorganized  district constructs its own
facilities.
   SEC. 8.    Section 35556 of the   Education
Code   is amended to read: 
   35556.  (a) The reorganization of any school district, or 
school  districts, shall not affect the rights of persons
employed in positions not requiring certification qualifications to
retain the salary, leaves, and other benefits  which
  that  they would have had if the reorganization
had not occurred. These persons shall be treated in the manner
provided in this section.
   (b) All employees of every school district that is included in any
other  school  district, or all  school  districts
included in a new district, shall become employees of the new
district.
   (c) (1) When a portion of the territory of any  school 
district becomes part of another  school  district,
employees regularly assigned to perform their duties in the territory
affected shall become employees of the acquiring district unless, in
a manner consistent with relevant provisions of this code and with
any applicable collective bargaining agreement, one of the following
 events  occurs:
   (A) An employee elects to accept a vacant position, for which he
or she qualifies, that the  first   original
 district elects to fill.
   (B) An employee elects to fill, by exercise of his or her rights
of seniority under existing law or the collective bargaining
agreement with the  first   original 
district, a position, for which he or she qualifies, in the 
first   original  district.
   (C) An employee elects to have his or her name entered on a
reemployment list of the  first   original 
district.
   (2) Employees whose assignments pertained to the affected
territory, but whose employment situs was not in that territory, may
elect to remain with the original district or become employees of the
acquiring district.
   (d) When the territory of any  school  district is
divided between, or among, two or more  districts 
 new or acquiring   districts,  and the original
district ceases to exist, employees of the original district
regularly assigned to perform their duties in any specific territory
of the  school  district shall become employees of the 
school  district acquiring the territory. Employees not assigned
to specific territory within the original district shall become
employees of any acquiring district at the election of the employees.

   (e) An employee regularly assigned by the original district to any
school in the  school  district shall be an employee of the
 school  district in which the school is located unless
that employee elects to continue in the employ of the  first
  original  district pursuant to subdivision (c).
   (f) Except as otherwise provided in this section, nothing in this
section shall be construed to deprive the governing board of the 
new or  acquiring district from making reasonable reassignments
of duties.
   (g) The amendments to this section made during the 1999-2000
Regular Session of the Legislature shall apply only to school
district reorganizations commenced on or after January 1, 2000.
   SEC. 9.    Section 35559 of the   Education
Code   is amended to read: 
   35559.  Notwithstanding Sections  35105 and 5000,
  5000 and 35105,  when the first elected board of
any  newly formed   new  district is
elected on the same date that the election is held for adopting the
proposal for the formation of the new district and when the terms of
several members of the first governing board would expire 
prior to   before  the date on which the 
school  district becomes effective for all purposes, no election
shall be held in November of that odd-numbered year, but the several
members whose terms expire shall serve until April  30th
  30  of the next succeeding even-numbered year. A
governing board election shall be held on the second Tuesday in April
of that even-numbered year to fill the offices of  such
  the  members whose terms expire on  the 
April  30th   30  next succeeding the
election. The terms of office of the members so elected shall expire
on the first Friday in December of the second succeeding odd-numbered
year. Their successors shall be elected pursuant to Section 5000.
   SEC. 10.    Section 35561 of the   Education
Code   is amended to read: 
   35561.  Any funds derived from the sale of the school bonds issued
by the  former   original district shall
be used for the acquisition, construction, or improvement of school
property only in the territory  which   that
 comprised the  former   original 
district or to discharge bonded indebtedness of the  former
  original  district, except  that
  that,  if the bonded indebtedness is assumed by
the new  or acquiring  district, the funds may be used in
any area of the new district for the purposes for which the bonds
were originally voted.
   SEC. 11.    Section 35562 of the   Education
Code   is amended to read: 
   35562.  If all the territory of  any   a
 school district becomes part of two or more  school 
districts of any type, and the inclusion in the two or more new
 school   or acquiring  districts of the
several portions of territory comprising the whole of the 
original   former  district is effective for all
purposes on the same date, the records of the  original
  former  district shall be disposed of as follows:

   (a) All records of the  original   former
 district  which   that  are required
by law to be kept on file shall be deposited with the governing board
of the  school  district which, after the reorganization
has become effective for all purposes, has located within its
boundaries the former office of the superintendent of the original
district.
   (b) Records of employees shall be transferred to the  school
 district thereafter employing the personnel or thereafter
maintaining the last place of employment.
   (c) Records of pupils shall be transferred to the  school
 district  which,   that, after the
date on which the reorganization becomes effective for all purposes,
maintains the school in which a pupil was last enrolled.
   SEC. 12.    Section 35563 of the   Education
Code   is amended to read: 
   35563.  (a) If all of the territory of  any  
a  school district becomes part of two or more school districts
of any type, and the inclusion in the two or more new school
districts of the several portions of territory comprising the
 original   former  district is effective
for all purposes on the same date, the county superintendent of
schools having jurisdiction over the  original  
former  district shall assume responsibility for all of the
following:
   (1) Completing all records and reports of the  original
  former  district.
   (2) Paying all outstanding obligations, except obligations
resulting from contracts  which   that are
to be assumed by a  succeeding   new or
acquiring  district.
   (3) Preparing for proper filing all records of the  former
 district required to be kept permanently by the provisions of
any applicable code.
   (4) Distributing records as provided in Section 35562.
   (5) Employing an auditor as required in Section 41020.
   (6) Discharging  such  other functions 
as   that  he or she  shall deem 
 deems  necessary to the dissolution of the  school
 district.
   (b) In discharging these duties, the county superintendent  of
schools  may request the services of employees of the original
 district or the new or acquiring  district, and the
 succeeding   new or acquiring  districts
shall release  such   those  employees to
the county superintendent  of schools  for the purpose of
accomplishing the requirements of this section. The salaries of
 such   those  employees and all other
necessary expenses of completing the requirements of this section
shall be charged against the accumulated funds of the 
dissolved   former  district  prior to
  before  the final distribution of  such
  those  funds to the  succeeding 
 new or acquiring  districts.
   SEC. 13.    Section 35566 of the   Education
Code   is amended to read: 
   35566.  Notwithstanding any  provisions  
other provision  of this article, exchanges of property tax
revenues between school districts as a result of 
reorganization   an action to reorganize  shall be
determined pursuant to subdivision (i) of Section 99 of the Revenue
and Taxation Code if one or more affected  school 
districts receive only basic aid apportionments required by Section 6
of Article IX of the California Constitution.
   SEC. 14.    Section 35572 of the   Education
Code   is amended to read: 
   35572.  No territory shall be taken from any school district
having any outstanding bonded indebtedness and made a part of another
 school  district where the action, if taken, would so
reduce the last equalized assessed valuation of  a 
 the divided  district  from which the territory was
taken   so  that the outstanding bonded
indebtedness of the  divided  district would exceed 5
percent of the assessed valuation  remaining  in the
 remaining territory of the divided  district for each
level maintained, on the date the reorganization is effective
pursuant to Section 35766.
   SEC. 15.    Section 35574 of the   Education
Code   is amended to read: 
   35574.  Notwithstanding any other provision of this code, for the
purposes of applying the State School Building Aid Law of 
1952, Chapter 8   1952 (Chapter 6  (commencing with
Section 16000) of Part  10,   10 of Division 1
of Title 1),  the amount of outstanding bonded indebtedness,
exclusive of interest, of the  former or  divided districts
 which   that  is equal to the liability
incurred by the  new or  acquiring district pursuant to
Section 35576 shall be considered a liability of the  new or
 acquiring district for purposes of computing  the 
bonding capacity of the  school  district.
   SEC. 16.    Section 35576 of the  Education
Code   is amended to read: 
   35576.  (a) If territory is taken from one  school 
district and annexed to, or included in,  another district or
 a new  or acquiring  district by any 
procedure   procedure,  and the area transferred
contains real property, the  new or acquiring  district
 to which the territory is annexed  shall take
possession of the real property, pursuant to paragraph (1) of
subdivision (a) of Section 35560, on the day when the 
annexation   action to reorganize  becomes
effective for all purposes. The  reorganized  territory
 transferred  shall cease to be liable for the
bonded indebtedness of the  school  district of which it was
formerly a  part  part,  and shall
automatically assume its proportionate share of the outstanding
bonded indebtedness of any  school  district of which it
becomes a part.
   (b) The  new or  acquiring district shall be liable for
the greater of the amounts determined under provisions of paragraph
(1) or (2), or the amount determined pursuant to a method prescribed
under Section 35738.
   (1) The proportionate share of the outstanding bonded indebtedness
of the original district, which proportionate share shall be in the
ratio that the total assessed valuation of the transferring territory
bears to the total assessed valuation of the original district in
the year immediately preceding the date on which the 
annexation  action to reorganize  is effective for
all purposes. This ratio shall be used each year until the bonded
indebtedness for which the  new or  acquiring district is
liable has been repaid.
   (2) The portion of the outstanding bonded indebtedness of the
original district that was incurred for the acquisition or
improvement of real property, or fixtures located on the real
property, and situated in the  territory transferred.
  reorganized territory. 
   (c) The county board of supervisors shall compute for the
reorganized  district   districts  an
annual tax rate for bond interest and redemption that will include
the bond interest and redemption on the outstanding bonded
indebtedness specified in paragraph (1) or (2) of subdivision (b), or
the amount determined pursuant to a method prescribed under Section
35738. The county board of supervisors shall also compute tax rates
for the annual charge and use charge prescribed by former Sections
1822.2 and 1825, as they read on July 1, 1970, when  such
  those  charges were established before November
23, 1970. All  such   of those  tax rates
shall be levied in excess of any other ad valorem property tax
authorized or required by  law   law,  and
shall not be included in the computation of the limitation specified
in subdivision (a) of Section 1 of Article XIII A of the California
Constitution.
   SEC. 17.    Section 35577 of the   Education
Code  is amended to read: 
   35577.  Whenever  an existing   a 
school district having authorized but unsold bonds is completely
divided between two or more  new or acquiring  districts
                                          so that the 
existing   original  district ceases to exist,
pursuant to any provision of this chapter, the board of supervisors
shall,  prior to   before  the date the
action is effective for the purposes of Section 35534, make and enter
an order in the minutes of its proceedings that the authorization to
issue the unsold bonds be divided between  the districts
  each new or acquiring  district  in the
ratio  which   that  the assessed valuation
of the  reorganized  territory  transferred to the
districts   included in each school district  bears
to the total assessed valuation of the former district. The bonds,
if issued by any new  or acquiring  district, shall be
considered a liability of the  new   school
 district for purposes of computing the bonding capacity of the
 new   school  district when applying the
State School Building Aid Law of  1952, Chapter 8 
 1952 (Chapter 6  (commencing with Section 16000) of Part
 10.   10 of Division 1 of Title 1). 
   SEC. 18.    Section 35578 of the   Education
Code   is amended to read: 
   35578.  Any unsold bonds of an elementary, high, or unified school
district  which   that is included as a
whole in a new  or acquiring   school 
district through any kind of reorganization may be issued by the
board of supervisors in the name of the new  or acquiring 
district and the proceeds derived upon the sale thereof shall be the
funds of the new  or acquiring  district. However, the
proceeds derived upon the sale thereof shall be expended only for the
purpose, or purposes, for which  such   those
 bonds were authorized.
   SEC. 19.    Section 35579 of the   Education
Code   is amended to read: 
   35579.  Any unsold bonds of an elementary, high, or unified school
district  which   that  is included as a
whole in a new  or acquiring   school 
district through any kind of reorganization, if issued by the board
of supervisors in the names of the old districts, 
 former   districts  shall be considered a
liability of the new  or acquiring  district for purposes of
computing the bonding capacity of the  new  
school  district when applying the State School Building Aid Law
of  1952, Chapter 8   1952 (Chapter 6 
(commencing with Section 16000) of Part  10.  
10 of Division 1 of Title 1)   . 
   SEC. 20.    Section 35700.1 of the  
Education Code   is amended to read: 
   35700.1.  (a) A county superintendent of schools may do any of the
following, as necessary, with respect to the reorganization of
school districts within the jurisdiction of a county superintendent
of schools:
   (1)  Prior to   Before  the initiation
of an action to reorganize, a county superintendent of schools may do
any of the following:
   (A) Provide information, coordination, and guidance to potential
petitioners for reorganization and to other parties inquiring about
the petition process.
   (B) Provide procedural advice and counseling.
   (C) Provide information and assistance for community meetings,
information sessions, and briefing sessions.
   (D) Provide for coordination of media and community relations.
   (2) A county superintendent of schools may perform the following
duties for the processing and evaluation of multiple petitions to
reorganize one or more school districts:
   (A) Ensure compliance with all requirements pertaining to the
petitions.
   (B) Ensure compliance with all required timelines or deadlines for
petitions.
   (C) Apply new and preexisting evaluation criteria to the petition.

   (3) A county superintendent of schools may provide assistance to
 newly  reorganized  school 
districts during the interim period, as follows:
   (A) To ensure smooth transitions with minimum disruption to pupils
and staff.
   (B) To provide advisory and consulting expertise on any of the
following:
   (i) Board and administrative policies and regulations.
   (ii) Personnel policies.
   (iii) Curriculum.
   (iv) Instructional programs and services.
   (v) Financial and budgeting functions.
   (vi) Distribution of assets and liabilities.
   (b) No funds  appropriated in the annual Budget Act or another
statute and  allocated to the Los Angeles County Office of
 Education pursuant to the Budget Act  
Education  shall be used to instigate, solicit, or promote the
development of plans to reorganize a school district or school
districts within the jurisdiction of the county office of 
education; provided, however,   education, except 
that the funds may be used to support the research necessary to
review and make recommendations regarding reorganization plans that
are submitted to the county office of education.
   SEC. 21.    Section 35705.5 of the  
Education Code   is amended to read: 
   35705.5.  (a) The county committee may add to the petition any of
the appropriate provisions specified in Article 3 (commencing with
Section 35730)  which   that  were not
included in the petition as filed and may amend any such provision
 which   that  was so included.
   (b) At least 10 days before the public hearing, or hearings, on
the petition, the county committee shall make available to the public
and to the governing boards affected by the petition a description
of the petition, including all of the following:
   (1) The rights of the employees in the affected districts to
continued employment.
   (2) The  revenue limit per unit of average daily
attendance   local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, per
pupil,  for each affected district and the effect of the
petition, if approved, on  such revenue limit.  
that allocation. 
   (3) Whether the  school  districts involved will be
governed, in part, by provisions of a city charter and, if so, in
what way.
   (4) Whether the governing boards of any proposed new district will
have five or seven members.
   (5) A description of the territory or  school  districts
in which the election, if any, will be held.
   (6) Where the proposal is to create two or more  new 
districts, whether the proposal will be voted on as a single
proposition.
   (7) Whether the governing board of any new district will have
trustee areas and, if so, whether the trustees will be elected by
only the voters of that trustee area or by the voters of the entire
 school  district.
   (8) A description of how the property, obligations, and bonded
indebtedness of  existing   original 
districts will be divided.
   (9) A description of when the first governing board of any new
district will be elected and how the terms of office for each new
trustee will be determined.
  SEC. 22.    Section 35706 of the   Education
Code   is amended to read: 
   35706.  (a) Within 120 days of the commencement of the first
public hearing on the petition, the county committee shall recommend
approval or disapproval of a petition  for unification of
school   to form one or more new  districts or for
the division of the  entire  territory of  an
existing   a  school district into two or more
 separate school   new or acquiring 
districts, as the petition may be augmented, or shall approve or
disapprove a petition for the transfer of territory, as the petition
may be augmented.  The county committee also shall approve or
disapprove a petition to form one or more new   districts if
the conditions of subdivision (b) of Section 35710 are met. 
   (b) The 120-day period for approving or disapproving a petition
pursuant to Section 35709 or 35710 shall commence after certification
of an environmental impact report, approval of a negative
declaration, or a determination that the project is exempt from the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
   SEC. 23.    Section 35706.5 of the  
Education Code   is amended to read: 
   35706.5.  (a) No action to reorganize  the boundaries of
 a school district shall be initiated or completed without
the consent of a majority of all of the members of the governing
board of the  school   affected  district
if both of the following conditions apply to the school district:
   (1) It has obtained an emergency apportionment loan from the State
of California, but the Superintendent  of Public Instruction
 has determined that a state administrator is no longer
necessary, and has restored,  prior to   before
 the effective date of this section, the legal rights, duties,
and powers of the governing board of the  school  district
pursuant to Section 41326.
   (2) It has a  student   pupil 
population 70 percent of which is from either a "lower income
household" or "very low income household" as those terms are defined
in Sections 50079.5 and 50105, respectively, of the Health and Safety
Code.
   (b) For purposes of this section, for any school district that
meets the description specified in paragraph  (1), 
 (1) of subdivision (a),  consent to an action to reorganize
the boundaries of the school district shall no longer be required
when 10 years have elapsed from the date of final payment by the
school district of the emergency loan to the State of California.
   SEC. 24.    Section 35708 of the   Education
Code   is amended to read: 
   35708.  Except for a petition to form one or more  school
  new  districts approved pursuant to subdivision
(b) of Section 35710, a petition transmitted pursuant to Section
35707, including the plans and recommendations included therein, if
any, together with the recommended approval or disapproval and the
plans and recommendations, if any, of the county committee shall be
heard by the state board as provided in Article 4 (commencing with
Section 35750).
   SEC. 25.    Section 35709 of the  Education
Code   is amended to read: 
   35709.  If the following conditions are met, the county committee
may approve the petition and order that the petition be granted, and
shall so notify the county board of supervisors:
   (a) The county committee finds that the conditions enumerated in
paragraphs (1) to (10), inclusive, of subdivision (a) of Section
35753 are substantially met, and:
   (b) Either:
   (1) The petition is to transfer uninhabited territory from one
 school  district to another and the owner of the territory,
or a majority of the owners of the territory, and the governing
 boards   board  of  all 
 each affected   school districts involved in the
transfer consent   district consents  to the
transfer; or
   (2) The petition is to transfer inhabited territory of less than
10 percent of the assessed valuation of the  school district
from which the territory is being transferred, and the governing
board of each  school   affected  district
 involved in the transfer consent   consents
 to the transfer.
   SEC. 26.    Section 35710 of the   Education
Code   is amended to read: 
   35710.  (a) For all other petitions to transfer territory, if the
county committee finds that the conditions enumerated in paragraphs
(1) to (10), inclusive, of subdivision (a) of Section 35753
substantially are met, the county committee may approve the petition
and, if approved, shall notify the county superintendent of schools
who shall call an election in the territory of the  affected
 districts as determined by the county committee, to be
conducted at the next election of any kind in accordance with either
of the following:
   (1) Section 1002 of the Elections Code and Part 4 (commencing with
Section 5000) of Division 1 of Title 1.
   (2) Division 4 (commencing with Section 4000) of the Elections
Code.
   (b) A county committee also may approve a petition to form one or
more  school   new  districts if the
requirements of subdivision (a), and the following conditions, are
met:
   (1) Each county superintendent of schools with jurisdiction over
an affected  school  district elects to grant
approval authority to the county committee on school district
organization for which he or she is secretary pursuant to Section
4012, and that county committee chooses to accept that authority.
   (2) The governing board of each of the affected  school
 districts consents to the petition.
   (3) The secretary of the county committee designated as the lead
agency pursuant to Section 35710.3 or subdivision (a) of Section
35520.5 enters into an agreement on behalf of the county committee
for any or all affected  school  districts to share
among those districts the costs of complying with the requirements of
the California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code).
   (c) A petition to form one or more  school  
new  districts that meets the conditions described in
subdivision (b), but is not approved by the county committee, shall
be transmitted to the state board pursuant to subdivision (a) of
Section 35707 and heard by the state board pursuant to Section 35708.
The state board, rather than the county committee, shall be the lead
agency, as defined in Section 21067 of the Public Resources Code,
for purposes of the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) for
each petition transmitted pursuant to this subdivision, including a
petition disapproved by the county committee after determining the
project is exempt from the California Environmental Quality Act
pursuant to paragraph (5) of subdivision (b) of Section 21080 of the
Public Resources Code.
   SEC. 27.    Section 35711 of the   Education
Code   is amended to read: 
   35711.  (a) A person questioning the finding of the county
committee pursuant to Section 35709 or 35710 that the action to
transfer territory or form one or more  school  
new  districts will not adversely affect the racial or ethnic
integration of the schools of the districts affected, may appeal a
decision based on that finding. The appeal shall be made to the state
board within 30 days. The appeal shall be based upon factual and
statistical evidence.
   (b) If the state board denies the appeal, the decision of the
county committee shall stand. If the state board approves the appeal,
it shall review the findings of the county committee at a regular
meeting of the state board.
   (c) The state board shall notify the county committee of its
decision on the appeal. If the state board approves the appeal, the
county committee shall transmit a copy of the proceedings to the
state board within 30 days after receipt of notice. The state board
shall review the transcript, considering all factors involved. The
state board may reverse, or may affirm, the decision of the county
committee, or if it appears that inadequate consideration was given
to the effect of the transfer on integration of the schools of the
 school  districts affected, it shall direct the county
committee to reconsider its decision and for this purpose to hold
another hearing.
   SEC. 28.    Section 35720.5 of the  
Education Code   is amended to read: 
   35720.5.  (a) The county committee shall adopt a tentative
recommendation following which action it shall hold one or more
public hearings in the area proposed for reorganization at least 30
days  prior to   before  submission of a
final recommendation for unification or other reorganization to the
 State Board of Education.   state board. 
   (b) The public hearing required by this section shall be called
when both of the following conditions are met :
   (1) Notice is sent to the governing board of each  school
  affected  district  involved  at
least 10 days before the hearing.
   (2) Notice of the hearing is either published in a newspaper of
general circulation or posted in every schoolhouse and at least three
public places in the affected territory,  school  district,
or  school  districts.
   (c) The notice shall contain information as to the time, place,
and purpose of the hearing.
   SEC. 29.    Section 35736 of the   Education
Code   is   amended to read: 
   35736.  Plans and recommendations may include a proposal for
dividing the property, other than real property, and obligations of
any school district proposed to be divided between two or more
 school   new or acquiring  districts, or
proposed to be partially included in one or more  school
  new or acquiring  districts. As used in this
section, "property" includes funds, cash on hand, and moneys due but
uncollected on the date reorganization becomes effective for all
purposes, and state apportionments based on average daily attendance
earned in the year immediately preceding the date reorganization
becomes effective for all purposes. In providing for this division,
the plans and recommendations may consider the assessed valuation of
each portion of the school district, the local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03, in each school district, the number of children of
schoolage residing in each portion of the school district, the value
and location of the school property, and  such 
other matters  as   that  may be deemed
pertinent and equitable. Any such proposal shall be an integral part
of the proposal and not a separate proposition.
   SEC. 30.    Section 35740 of the   Education
Code   is amended to read: 
   35740.  In addition to satisfying the requirements of subdivision
(j) of Section 42127.6, upon the approval of a petition for
reorganization and continuing after the certification of the election
results for  a newly organized   an action to
reorganize   a  school district pursuant to Section
35763, or upon the appointment of an interim governing board pursuant
to Section 35100, until the effective date of the  newly
organized or newly formed school   reorganized 
district in accordance with Article 4 (commencing with Section 35530)
of Chapter 3,  a school   an affected 
district  involved in a reorganization as an existing,
proposed, newly formed, or newly organized school district 
is subject to all of the following:
   (a) (1) The interim board or the governing board of the 
existing school   original  district or districts,
and, where applicable, the administrators of the  existing
school   original  district or districts, shall
notify the county superintendent of schools in  writing
  writing,  and provide relevant documents and
information no less than 10 schooldays before taking any action on
any matter that could have a material fiscal impact on, or impose a
debt or liability on, the  existing,   original,
 proposed,  newly formed, or newly organized 
 or reorganized  school district.
   (2) Notwithstanding any other law, failure to provide the notice
and relevant documents and information required by paragraph (1)
shall nullify the action taken by the board or administrator of the
 school   affected  district or districts.
   (3) As used in this section, "schoolday" means a day upon which
the schools of the district are in session or  non-holiday
  nonholiday  weekdays during the summer recess.
   (b) The county superintendent of schools may review any action
taken or proposed to be taken by any interim or existing governing
board or school district administrators to determine whether that
action would have a material fiscal impact, debt, or liability on the
 existing,   original,  proposed, 
newly formed, or newly organized   or reorganized 
school district. If, based on the review of the county
superintendent of schools, the county superintendent of schools
determines that the action or proposed action would have a material
fiscal impact on the  existing,   original,
 proposed,  newly formed, or newly organized 
 or reorganized  school district, and that action is
unnecessary for the immediate functioning of the  existing or
newly formed  original or reorganized  school
district, the county superintendent of schools may stay or rescind
that action. The county superintendent of schools shall inform the
 existing   original  or interim
reorganized school district governing board or the school district
administrators in writing of his or her justification for the
exercise of authority under this subdivision to stay or rescind any
action of the interim or  existing   original
school district  governing  board or the school district
administrators.   board. 
   (c) A school district shall provide any documents or information
requested by the county superintendent of schools in a timely manner
related to proposed actions that are under review pursuant to this
section.
   (d) The provisions of this section shall apply irrespective of a
school district's budget or certification status under Article 2
(commencing with Section 42120) or Article 3 (commencing with Section
42130) of Chapter 6 of Part 24.
   SEC. 31.    Section 35753 of the   Education
Code   is amended to read: 
   35753.  (a) The  State Board of Education  
state board  may approve proposals for the reorganization of
 school  districts, if the  state  board has
determined, with respect to the proposal and the resulting 
school  districts, that all of the following conditions are
substantially met:
   (1) The reorganized districts will be adequate in terms of number
of pupils enrolled.
   (2) The  school  districts are each organized on the
basis of a substantial community identity.
   (3) The proposal will result in an equitable division of property
and facilities of the original district or districts.
   (4) The reorganization of the  school  districts will
preserve each affected district's ability to educate 
students   pupils  in an integrated environment and
will not promote racial or ethnic discrimination or segregation.
   (5)  Any increase in costs to the state as a result of the
proposed reorganization will be insignificant and otherwise
incidental to the reorganization.
   (6) The proposed reorganization will continue to promote sound
education performance and will not significantly disrupt the
educational programs in the  districts affected by the
proposed reorganization.   affected  
districts. 
   (7)  Any increase in school facilities costs as a result of the
proposed reorganization will be insignificant and otherwise
incidental to the reorganization.
   (8) The proposed reorganization is primarily designed for purposes
other than to significantly increase property values.
   (9) The proposed reorganization will continue to promote sound
fiscal management and not cause a substantial negative effect on the
fiscal status of the  proposed district or any existing
district affected by the proposed reorganization.  
affected   district. 
   (10) Any other criteria  as   that  the
 state  board may, by regulation, prescribe.
   (b) The  State Board of Education   state
board  may approve a proposal for the reorganization of school
districts if the  state  board determines that it is not
practical or possible to apply the criteria of this section
literally, and that the circumstances with respect to the proposals
provide an exceptional situation sufficient to justify approval of
the proposals.
   SEC. 32.    Section 35754 of the   Education
Code   is amended to read: 
   35754.  After affording interested persons an opportunity to
present their views on the petition  to reorganize school
districts,  and after hearing any findings and recommendations
of the  State Superintendent of Public Instruction, the State
Board of Education   Superintendent, the state board
 shall approve or disapprove the  formation of the
proposed new district.   petition.  If the 
state  board approves the  formation,  
petition,  it may amend or include in the proposal any of the
appropriate provisions of Article 3 (commencing with Section 35730).
   SEC. 33.    Section 35755 of the   Education
Code   is amended to read: 
   35755.  After the  State Board of Education  
state board  has approved the plans and recommendations for the
unification or other reorganization of the school districts in any
 area   area, including approval through
affirmation or reversal of the action of a county committee, 
the secretary of the  State Board of Education  
state board  shall give notice of the approval to the county
superintendent of schools having jurisdiction over any of the 
school  districts whose boundaries or status would be affected
by the reorganization as proposed.
   SEC. 34.    Section 35759 of the   Education
Code   is amended to read: 
   35759.  The cost of preparation and distribution of the statement
setting forth the arguments in favor of, and those opposed to, the
recommendations of the county board, and the cost of any election
held pursuant to this article shall be a charge against the general
fund of the county. If  such   the proposed
reorganized  district is situated in more than one county, the
cost of the election shall be prorated against each county in the
same proportion as the assessed valuation of the territory of the
proposed  new   reorganized  district lying
in  such   that  county bears to the total
assessed valuation of the proposed  new  
reorganized  districts.
   SEC. 35.    Section 35780 of the   Education
Code   is amended to read: 
   35780.  (a)  Any   A  school district
 which   that  has been organized for more
than three years shall be lapsed as provided in this article if the
number of registered electors in the  school  district is
less than six or if the average daily attendance of pupils in the
school or schools maintained by the  school  district is
less than six in grades 1 through 8 or is less than 11 in grades 9
through 12, except that for any unified district  which
  that  has established and continues to operate at
least one senior high school, the board of supervisors shall defer
the lapsation of the  school  district for one year upon a
written request of the governing board of the  school 
district and written concurrence of the county committee. The board
of supervisors shall make no more than three such deferments.
   (b) For a  newly organized school   new 
district that has been unable to provide the school facilities
necessary for instructional services by employees of the  school
 district to all of the pupils who are residents of the 
school  district after five years from the date that the
reorganization became effective, the county committee on school
                                        district organization, upon
direction from the  State Board of Education,  
state board,  shall initiate lapsation procedures pursuant to
Section 35783 or revert the reorganized district to its original
status.
   (c) A school district may also be lapsed when there are no school
facilities or sites on which to maintain any school in the 
school  district.
   SEC. 36.    Section 35780.1 of the  
Education Code   is amended to read: 
   35780.1.  For purposes of this  article, "lapse" 
 article, the following terms have the following meanings: 

    (a)     "Lapse"  means  an
action to dissolve   dissolving  a school district
and  annex   annexing  the entire territory
of that  school  district to one or more adjoining school
districts.
    (b)     "Lapsation" means an action to
lapse as defined by this section. 
   SEC. 37.    Section 37223 of the   Education
Code   is amended to read:
   37223.  (a) The governing board of any elementary, high school, or
unified school district or any county superintendent of schools may
maintain classes on Saturday or Sunday, or both.  The classes
maintained pursuant to this section may include, but are not
necessarily limited to, all of the following:  
   The classes may include, but are not limited to, continuation
classes, special  
   (1) Continuation classes. 
    (2)     Special  day classes for
mentally gifted  minors, makeup   minors. 
    (3)     Makeup  classes for 
unexcused  absences occurring during the  week, and
the   week. 
    (4)     The  programs of a regional
occupational center or regional occupational program.
   (b) Except as otherwise provided in this code, the attendance of
any pupil in a class or program held on a Saturday or Sunday shall
not result in the crediting of more than five days of attendance for
the pupil per week.
   (c) Attendance at classes conducted on Saturday or Sunday, or
both, shall be at the election of the pupil or, in the case of a
minor pupil, the parent or guardian of the pupil. However, the
governing board may require truants, as defined by Section 48260, to
attend makeup classes conducted on one day of a weekend.
   (d) Except as otherwise provided in this code, any class 
which   that  is offered on a Saturday or Sunday
shall be one offered during the regular Monday through Friday school
week.
   (e) The voluntary attendance of pupils in approved programs for
mentally gifted minors, as defined in Section 52200, in special
educational activities conducted on Saturday or Sunday shall not be
included in the computation of the average daily attendance of the
 school  district.
   (f) Subdivisions (b) and (d)  of this section 
shall not apply to regional occupational centers or programs.
   SEC. 38.    Section 41020.6 of the  
Education Code   is repealed.  
   41020.6.  On October 1, 2001, and each year thereafter, the State
Department of Education shall report to the Joint Legislative Audit
Committee on the actions taken by the department to eliminate audit
exceptions and comply with management improvement recommendations.

   SEC. 39.    Section 41320.3 of the  
Education Code   is repealed.  
   41320.3.  On or before February 15 of each year, the State
Department of Education shall report to the Legislature on the status
of school districts that have received emergency apportionments
pursuant to this article or some other specific statutory
apportionment. 
   SEC. 40.    Section 41326 of the   Education
Code   is amended to read: 
   41326.  (a) Notwithstanding any other provision of this code, the
acceptance by a school district of an apportionment made pursuant to
Section 41320 that exceeds an amount equal to 200 percent of the
amount of the reserve recommended for that school district under the
standards and criteria adopted pursuant to Section 33127 constitutes
the agreement by the school district to the conditions set forth in
this article. Before applying for an emergency apportionment in the
amount identified in this subdivision, the governing board of a
school district shall discuss the need for that apportionment at a
regular or special meeting of the governing board of the school
district and, at that meeting, shall receive testimony regarding the
apportionment from parents, exclusive representatives of employees of
the school district, and other members of the community. For
purposes of this article, "qualifying school district" means a school
district that accepts a loan as described in this subdivision.
   (b) The Superintendent shall assume all the legal rights, duties,
and powers of the governing board of a qualifying school district.
The Superintendent, in consultation with the county superintendent of
schools, shall appoint an administrator to act on his or her behalf
in exercising the authority described in this subdivision in
accordance with all of the following:
   (1) The administrator shall serve under the direction and
supervision of the Superintendent until terminated by the
Superintendent at his or her discretion. The Superintendent shall
consult with the county superintendent of schools before terminating
the administrator.
   (2) The administrator shall have recognized expertise in
management and finance.
   (3) To facilitate the appointment of the administrator and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code.
   (4) Notwithstanding any other law, the Superintendent may appoint
an employee of the state or the office of the county superintendent
of schools to act as administrator for up to the duration of the
administratorship. During the tenure of his or her appointment, the
administrator, if he or she is an employee of the state or the office
of the county superintendent of schools, is an employee of the
qualifying school district, but shall remain in the same retirement
system under the same plan that has been provided by his or her
employment with the state or the office of the county superintendent
of schools. Upon the expiration or termination of the appointment,
the employee shall have the right to return to his or her former
position, or to a position at substantially the same level as that
position, with the state or the office of the county superintendent
of schools. The time served in the appointment shall be counted for
all purposes as if the administrator had served that time in his or
her former position with the state or the office of the county
superintendent of schools.
   (5) Except for an individual appointed as an administrator by the
Superintendent pursuant to paragraph (4), the administrator shall be
a member of the State Teachers' Retirement System, if qualified, for
the period of service as administrator, unless he or she elects in
writing not to become a member. A person who is a member or retirant
of the State Teachers' Retirement System at the time of appointment
shall continue to be a member or retirant of the system for the
duration of the appointment. If the administrator chooses to become a
member or is already a member, the administrator shall be placed on
the payroll of the qualifying school district for purposes of
providing appropriate contributions to the system. The Superintendent
may also require the administrator to be placed on the payroll of
the qualifying school district for purposes of remuneration, other
benefits, and payroll deductions.
   (6) For purposes of workers' compensation benefits, the
administrator is an employee of the qualifying school district,
except that an administrator appointed pursuant to paragraph (4) may
be deemed an employee of the state or office of the county
superintendent of schools, as applicable.
   (7) The qualifying school district shall add the administrator as
a covered employee of the qualifying school district for all purposes
of errors and omissions liability insurance policies.
   (8) The salary and benefits of the administrator shall be
established by the Superintendent and paid by the qualifying school
district.
   (9) The Superintendent or the administrator may employ, on a
short-term basis and at the expense of the qualifying school
district, any staff necessary to assist the administrator, including,
but not limited to, a certified public accountant.
   (10) The administrator may do all of the following:
   (A) Implement substantial changes in the fiscal policies and
practices of the qualifying school district, including, if necessary,
the filing of a petition under Chapter 9 (commencing with Section
901) of Title 11 of the United States Code for the adjustment of
indebtedness.
   (B) Revise the educational program of the qualifying school
district to reflect realistic income projections and pupil
performance relative to state standards.
   (C) Encourage all members of the school community to accept a fair
share of the burden of the fiscal recovery of the qualifying school
district.
   (D) Consult, for the purposes described in this subdivision, with
the governing board of the qualifying school district, the exclusive
representatives of the employees of the qualifying school district,
parents, and the community.
   (E) Consult with, and seek recommendations from, the
Superintendent, the county superintendent of schools, and the County
Office Fiscal Crisis and Management Assistance Team authorized
pursuant to subdivision (c) of Section 42127.8 for purposes described
in this article.
   (F) With the approval of the Superintendent, enter into agreements
on behalf of the qualifying school district and, subject to any
contractual obligation of the qualifying school district, change
existing school district rules, regulations, policies, or practices
as necessary for the effective implementation of the recovery plans
referred to in Sections 41327 and 41327.1.
   (G) Request the advice and assistance of the California
Collaborative for Educational Excellence pursuant to paragraph (1) of
subdivision (f) of Section 52074.
   (c) (1) Except as provided for in paragraph (2), the period of
time during which the Superintendent exercises the authority
described in subdivision (b), the governing board of the qualifying
school district shall serve as an advisory body reporting to the
state-appointed administrator, and has no rights, duties, or powers,
and is not entitled to any stipend, benefits, or other compensation
from the qualifying school district.
   (2) (A) After one complete fiscal year has elapsed following the
qualifying school district's acceptance of an emergency
apportionment, the governing board of the qualifying school district
may conduct an annual advisory evaluation of an administrator for the
duration of the administratorship.
   (B) An advisory evaluation of an administrator shall focus on the
administrator's effectiveness in leading the qualifying school
district toward fiscal recovery and improved academic achievement.
Advisory evaluation criteria shall be agreed upon by the governing
board of the qualifying school district and the administrator before
the advisory evaluation. The advisory evaluation shall include, but
not be limited to, all of the following:
   (i) Goals and standards consistent with Section 41327.1.
   (ii) Commendations in the areas of the administrator's strengths
and achievements.
   (iii) Recommendations for improving the administrator's
effectiveness in areas of concern and unsatisfactory performance.
   (C) An advisory evaluation of an administrator conducted by the
governing board of a qualifying school district shall be submitted to
the Governor, the Legislature, the Superintendent, and the County
Office Fiscal Crisis and Management Assistance Team.
   (3) Upon the appointment of an administrator pursuant to this
section, the district superintendent  of schools  is no
longer an employee of the qualifying school district.
   (4) A determination of the severance compensation for the district
superintendent  of schools  shall be made pursuant to
subdivision (j).
   (d) Notwithstanding Section 35031 or any other law, the
administrator, after according the affected employee reasonable
notice and the opportunity for a hearing, may terminate the
employment of a deputy, associate, assistant superintendent, or other
school district level administrator who is employed by a qualifying
school district under a contract of employment signed or renewed
after January 1, 1992, if the employee fails to document, to the
satisfaction of the administrator, that before the date of the
acceptance of the emergency apportionment he or she either advised
the governing board of the qualifying school district, or his or her
superior, that actions contemplated or taken by the governing board
of the qualifying school district could result in the fiscal
insolvency of the qualifying school district, or took other
appropriate action to avert that fiscal insolvency.
   (e) The authority of the Superintendent, and the administrator,
under this section shall continue until all of the following occur:
   (1) (A) After one complete fiscal year has elapsed following the
qualifying school district's acceptance of an emergency apportionment
as described in subdivision (a), the administrator determines, and
so notifies the Superintendent and the county superintendent of
schools, that future compliance by the qualifying school district
with the recovery plans approved pursuant to paragraph (2) is
probable.
   (B) The Superintendent may return power to the governing board of
the qualifying school district for an area listed in subdivision (a)
of Section 41327.1 if performance under the recovery plan for that
area has been demonstrated to the satisfaction of the Superintendent.

   (2) The Superintendent has approved all of the recovery plans
referred to in subdivision (a) of Section 41327 and the County Office
Fiscal Crisis and Management Assistance Team completes the
improvement plans specified in Section 41327.1 and has completed a
minimum of two reports identifying the qualifying school district's
progress in implementing the improvement plans.
   (3) The administrator certifies that all necessary collective
bargaining agreements have been negotiated and ratified, and that the
agreements are consistent with the terms of the recovery plans.
   (4) The qualifying school district has completed all reports
required by the Superintendent and the administrator.
   (5) The Superintendent determines that future compliance by the
qualifying school district with the recovery plans approved pursuant
to paragraph (2) is probable.
   (f) When the conditions stated in subdivision (e) have been met,
and at least 60 days after the Superintendent has notified the
Legislature, the Department of Finance, the Controller, and the
county superintendent of schools that he or she expects the
conditions prescribed pursuant to this section to be met, the
governing board of the qualifying school district shall regain all of
its legal rights, duties, and powers, except for the powers held by
the trustee provided for pursuant to Article 2 (commencing with
Section 41320). The Superintendent shall appoint a trustee under
Section 41320.1 to monitor and review the operations of the
qualifying school district until the conditions of subdivision (b) of
that section have been met.
   (g) Notwithstanding subdivision (f), if the qualifying school
district violates a provision of the recovery plans approved by the
Superintendent pursuant to this article within five years after the
trustee appointed pursuant to Section 41320.1 is removed or after the
emergency apportionment is repaid, whichever occurs later, or the
improvement plans specified in Section 41327.1 during the period of
the trustee's appointment, the Superintendent may reassume, either
directly or through an administrator appointed in accordance with
this section, all of the legal rights, duties, and powers of the
governing board of the qualifying school district. The Superintendent
shall return to the governing board of the qualifying school
district all of its legal rights, duties, and powers reassumed under
this subdivision when he or she determines that future compliance
with the approved recovery plans is probable, or after a period of
one year, whichever occurs later.
   (h) Article 2 (commencing with Section 41320) shall apply except
as otherwise specified in this article.
   (i) It is the intent of the Legislature that the legislative
budget subcommittees annually conduct a review of each qualifying
school district that includes an evaluation of the financial
condition of the qualifying school district, the impact of the
recovery plans upon the qualifying school district's educational
program, and the efforts made by the state-appointed administrator to
obtain input from the community and the governing board of the
qualifying school district.
   (j) (1) The district superintendent  of schools  is
entitled to a due process hearing for purposes of determining final
compensation. The final compensation of the district superintendent
 of schools  shall be between zero and six times his or her
monthly salary. The outcome of the due process hearing shall be
reported to the Superintendent and the public. The information
provided to the public shall explain the rationale for the
compensation.
   (2) This subdivision applies only to a contract for employment
negotiated on or after June 21, 2004.
   (k) (1) When the Superintendent assumes control over a qualifying
school district pursuant to subdivision (b), he or she shall, in
consultation with the County Office Fiscal Crisis and Management
Assistance Team, review the fiscal oversight of the qualifying school
district by the county superintendent of schools. The Superintendent
may consult with other fiscal experts, including other county
superintendents of schools and regional fiscal teams, in conducting
this review.
   (2) Within three months of assuming control over a qualifying
school district, the Superintendent shall report his or her findings
to the Legislature and shall provide a copy of that report to the
Department of Finance. This report shall include findings as to
fiscal oversight actions that were or were not taken and may include
recommendations as to an appropriate legislative response to improve
fiscal oversight.
   (3) If, after performing the duties described in paragraphs (1)
and (2), the Superintendent determines that the county superintendent
of schools failed to carry out his or her responsibilities for
fiscal oversight as required by this code, the Superintendent may
exercise the authority of the county superintendent of schools who
has oversight responsibilities for a qualifying school district. If
the Superintendent finds, based on the report required in paragraph
(2), that the county superintendent of schools failed to
appropriately take into account particular types of indicators of
financial distress, or failed to take appropriate remedial actions in
the qualifying school district, the Superintendent shall further
investigate whether the county superintendent of schools failed to
take into account those indicators, or similarly failed to take
appropriate actions in other school districts with negative or
qualified  certifications, and shall provide an additional
report on the fiscal oversight practices of the county superintendent
of schools to the appropriate policy and fiscal committees of each
house of the Legislature and the Department of Finance. 
 certifications. 
   SEC. 41.    Section 41327.2 of the  
Education Code   is amended to read: 
   41327.2.  (a) The appointment of an administrator pursuant to
Section 41326 does not remove any statutory rights, duties, or
obligations from the county superintendent of schools. The county
superintendent of schools retains the responsibility to superintend
school districts under his or her jurisdiction.
   (b) The county superintendent of schools shall submit reports to
the Superintendent, the appropriate fiscal and policy committees of
the Legislature, and the Director of Finance subsequent to review by
the county superintendent of schools of the  school 
district's budget and interim reports in accordance with 
subdivisions (d) and (g) of, and paragraph (3) of subdivision (i)
  subdivision (d) of, and paragraph (1) of subdivision
(f)  of, Section 42127, and paragraph (2) of subdivision (a) of,
and subdivision (e) of, Section 42131. These reports shall document
the fiscal and administrative status of the qualifying  school
 district, particularly in regard to the implementation of
fiscal and management recovery plans. Each report shall also include
a determination of whether the revenue streams to the  school
 district appear to be consistent with its expenditure plan,
according to the most recent data available at the time of the
report. These reports are required until six months after all rights,
duties, and powers are returned to the school district pursuant to
this article.
   SEC. 42.    Section 41339 of the   Education
Code   is amended to read: 
   41339.   (a)    The
Superintendent  of Public Instruction  shall certify
each apportionment made by him or her under Sections 41332 to 41340,
inclusive, whichever are in effect, to the Controller. 
   (b) Ten working days prior to the dates prescribed in Sections
41330, 41332, and 41335, the superintendent shall notify the Joint
Legislative Budget Committee and the Department of Finance of the
average daily attendance numbers and the local property tax revenues
to be utilized in the respective certification. 
   SEC. 43.    Section 42103 of the   Education
Code   is amended to read: 
   42103.   (a)    The governing board of each
school district shall hold a public hearing on the proposed budget in
a  school  district facility, or some other place
conveniently accessible to the residents of the  school 
district. The public hearing shall be held any day on or before the
date specified for this purpose in subdivision  (e) or (i),
respectively, of   (a) of, or paragraph (3) of
subdivision (d) of,  Section 42127, but not less than three
working days following availability of the proposed budget for public
inspection. At the hearing any resident in the  school 
district may appear and object to the proposed budget or any item in
the budget. 
    The 
    (b)     The public  hearing 
required by this section  may be concluded on the proposed
budget when there are no requests for further hearing on file, and
shall be concluded no later than the date specified for this purpose
in subdivision  (e) or (i), respectively, of  
(a) of, or paragraph (3) of subdivision (d) of,  Section 42127.
The budget shall not be finally adopted by the governing board of the
 school  district until after the public hearing has been
held. 
    The 
    (c)     The  proposed budget shall
show expenditures, cash balances, and all revenues as required to be
tabulated in Sections 42122 and 42123, and also shall include an
estimate of those figures, unaudited, for the preceding fiscal year.
In addition, any tax statement submitted by the governing board of
the school district pursuant to subdivision (a) of Section 42127, any
district tax requirement computed pursuant to subdivision (b) of
Section 42127 for the school year to which the proposed budget is
intended to apply, and any recommendations made by the county
superintendent  of schools  pursuant to subdivision (d) of
Section 42127 shall be made available by the  school 
district for public inspection in a facility of the  school 
district or in some other place conveniently accessible to residents
of the  school  district. 
    Notification 
    (d)     Notification  of dates and
location or locations at which the proposed budget may be inspected
by the public and the date, time, and location of the public hearing
on the proposed budget shall be published by the county
superintendent of schools in a newspaper of general circulation in
the  school  district or, if there is no newspaper of
general circulation in the  school  district, in any
newspaper of general circulation in the county, at least three days
 prior to   before  the availability of the
proposed budget for public inspection. The publication of the dates
and locations shall occur no earlier than 45 days  prior to
  before  the final date for the hearing as
specified in subdivision  (e) or (i), respectively, of
  (a) of, or paragraph (3) of subdivision (d) of, 
Section 42127, but not less than 10 days  prior to 
 before  the date set for hearing. The cost of the
publication shall be a legal and proper charge against the school
district for which the publication is made.
   SEC. 44.    Section 42127.1 of the  
Education Code   is amended to read: 
   42127.1.  (a) Pursuant to subdivision  (g) or (i)
  (f)  of Section 42127, upon the disapproval of a
school district budget by the county superintendent of schools, the
county superintendent of schools shall call for the formation of a
budget review committee 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  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 December 31.  The Superintendent shall
report to the Legislature and the Director of Finance by January 10
if any district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by December 31. 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. 
   (b) The budget review committee shall be composed of three persons
selected by the governing board of the school district from
                                   a list of candidates provided to
the governing board of the school district by the Superintendent. The
list of candidates shall be composed of persons who have expertise
in the management of a school district or county office of education.
Their experience shall include, but not  necessarily  be
limited to, the fiscal and educational aspects of local educational
agency management.
   (c) Notwithstanding subdivision (b) or any other provision of this
article, with the approval of the Superintendent and the governing
board of the school district, the county superintendent of schools
may select and convene a regional review committee, consisting of
persons having the expertise described in  that subdivision.
 subdivision (b).  The regional review committee
shall operate in place of the budget review committee, in accordance
with the provisions of this article governing budget review
committees.
   (d) Members of the committee shall be reimbursed by the department
for their services and associated expenses while on official
business at rates established by the state board.
   SEC. 45.    Section 47605.1 of the  
Education Code   is amended to read: 
   47605.1.  (a) (1) Notwithstanding any other law, a charter school
that is granted a charter from the governing board of a school
district or county office of education after July 1, 2002, and
commences providing educational services to pupils on or after July
1, 2002, shall locate in accordance with the geographic and site
limitations of this part.
   (2) Notwithstanding any other law, a charter school that is
granted a charter by the state board after July 1, 2002, and
commences providing educational services to pupils on or after July
1, 2002, based on the denial of a petition by the governing board of
a school district or county board of education, as described in
paragraphs (1) and (2) of subdivision (j) of Section 47605, may
locate only within the geographic boundaries of the chartering entity
that initially denied the petition for the charter.
   (3) A charter school that receives approval of its charter from a
governing board of a school district, a county office of education,
or the state board before July 1, 2002, but does not commence
operations until after January 1, 2003, shall be subject to the
geographic limitations of  the   this 
part, in accordance with subdivision (e).
   (b) This section is not intended to affect the admission
requirements contained in subdivision (d) of Section 47605.
   (c) Notwithstanding any other law, a charter school may establish
a resource center, meeting space, or other satellite facility located
in a county adjacent to that in which the charter school is
authorized if the following conditions are met:
   (1) The facility is used exclusively for the educational support
of pupils who are enrolled in nonclassroom-based independent study of
the charter school.
   (2) The charter school provides its primary educational services
in, and a majority of the pupils it serves are residents of, the
county in which the charter school is authorized.
   (d) Notwithstanding subdivision (a) or subdivision (a) of Section
47605, a charter school that is unable to locate within the
geographic boundaries of the chartering school district may establish
one site outside the boundaries of the school district, but within
the county within which that school district is located, if the
school district in which the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools is notified of the location of the charter
school before it commences operations, and either of the following
circumstances exist:
   (1) The  charter  school has attempted to locate a single
site or facility to house the entire program, but such a facility or
site is unavailable in the area in which the  charter 
school chooses to locate.
   (2) The site is needed for temporary use during a construction or
expansion project.
   (e) (1) For a charter school that was granted approval of its
charter before July 1, 2002, and provided educational services to
pupils before July 1, 2002, this section only applies to new
educational services or schoolsites established or acquired by the
charter school on or after July 1, 2002.
   (2) For a charter school that was granted approval of its charter
before July 1, 2002, but did not provide educational services to
pupils before July 1, 2002, this section only applies upon the
expiration of a charter that is in existence on January 1, 2003.
   (3) Notwithstanding other implementation timelines in this
section, by June 30, 2005, or upon the expiration of a charter that
is in existence on January 1, 2003, whichever is later, all charter
schools shall be required to comply with this section for schoolsites
at which  education   educational 
services are provided to pupils before or after July 1, 2002,
regardless of whether the charter school initially received approval
of its charter school petition before July 1, 2002. To achieve
compliance with this section, a charter school shall be required to
receive approval of a charter petition in accordance with this
section and Section 47605.
   (4) This section is not intended to affect the authority of a
governmental entity to revoke a charter that is granted on or before
the effective date of this section.
   (f) A charter school that submits its petition directly to a
county board of education, as authorized by  Sections
  Section  47605.5 or 47605.6, may establish
charter school operations only within the geographical boundaries of
the county in which that county board of education has jurisdiction.
   (g) Notwithstanding any other law, the jurisdictional limitations
set forth in this section do not apply to a charter school that
provides instruction exclusively in partnership with any of the
following:
   (1) The federal Workforce  Investment  
Innovation and Opportunity  Act  of 1998  (29
U.S.C. Sec.  2801   3101  et seq.).
   (2) Federally affiliated Youth Build programs.
   (3) Federal job corps training or instruction provided pursuant to
a memorandum of understanding with the federal provider.
   (4) The California Conservation Corps or local conservation corps
certified by the California Conservation Corps pursuant to Sections
14507.5 or 14406 of the Public Resources Code.
   (5) Instruction provided to juvenile court school pupils pursuant
to subdivision (b) of Section 42238.18 or pursuant to Section 1981
for individuals who are placed in a residential facility.
   SEC. 46.    Section 47605.6 of the  
Education Code   is amended to read: 
   47605.6.  (a) (1) In addition to the authority provided by Section
47605.5, a county board of education may also approve a petition for
the operation of a charter school that operates at one or more sites
within the geographic boundaries of the county and that provides
instructional services that are not generally provided by a county
office of education. A county board of education may approve a
countywide charter only if it finds, in addition to the other
requirements of this section, that the educational services to be
provided by the charter school will offer services to a pupil
population that will benefit from those services and that cannot be
served as well by a charter school that operates in only one school
district in the county. A petition for the establishment of a
countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons seeking
to establish the charter school. The petition may be submitted to the
county board of education for review after either of the following
conditions is met:
   (A) The petition is signed by a number of parents or guardians of
pupils residing within the county that is equivalent to at least
one-half of the number of pupils that the charter school estimates
will enroll in the school for its first year of operation and each of
the school districts where the charter school petitioner proposes to
operate a facility has received at least 30 days' notice of the
petitioner's intent to operate a  charter  school pursuant
to this section.
   (B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation and each of the school districts where the
charter school petitioner proposes to operate a facility has received
at least 30 days' notice of the petitioner's intent to operate a
 charter  school pursuant to this section.
   (2) An existing public school shall not be converted to a charter
school in accordance with this section.
   (3) After receiving approval of its petition, a charter school
that proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those additional
locations at an open, public meeting, held no sooner than 30 days
following notification of the school districts where the sites will
be located. If approved, the location of the approved sites shall be
a material revision of the school's approved charter.
   (4) A petition shall include a prominent statement indicating that
a signature on the petition means that the parent or guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
   (b) No later than 60 days after receiving a petition, in
accordance with subdivision (a), the county board of education shall
hold a public hearing on the provisions of the charter, at which time
the county board of education shall consider the level of support
for the petition by teachers, parents or guardians, and the school
districts where the charter school petitioner proposes to place
school facilities. Following review of the petition and the public
hearing, the county board of education shall either grant or deny the
charter within 90 days of receipt of the petition. However, this
date may be extended by an additional 30 days if both parties agree
to the extension. A county board of education may impose any
additional requirements beyond those required by this section that it
considers necessary for the sound operation of a countywide charter
school. A county board of education may grant a charter for the
operation of a school under this part only if it is satisfied that
granting the charter is consistent with sound educational practice
and that the charter school has reasonable justification for why it
could not be established by petition to a school district pursuant to
Section 47605. The county board of education shall deny a petition
for the establishment of a charter school if it finds one or more of
the following:
   (1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
   (2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
   (3) The petition does not contain the number of signatures
required by subdivision (a).
   (4) The petition does not contain an affirmation of each of the
conditions described in subdivision  (d).   (e).

   (5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
   (A) (i) The educational program of the charter school, designed,
among other things, to identify those pupils whom the charter school
is attempting to educate, what it means to be an "educated person" in
the 21st century, and how learning best occurs. The goals identified
in that program shall include the objective of enabling pupils to
become self-motivated, competent, and lifelong learners.
   (ii) The annual goals for the charter school for all pupils and
for each subgroup of pupils identified pursuant to Section 52052, to
be achieved in the state priorities, as described in subdivision (d)
of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school, and specific
annual actions to achieve those goals. A charter petition may
identify additional school priorities, the goals for the school
priorities, and the specific annual actions to achieve those goals.
   (iii) If the proposed charter school will enroll high school
pupils, the manner in which the charter school will inform parents
regarding the transferability of courses to other public high
schools. Courses offered by the charter school that are accredited by
the Western Association of Schools and Colleges may be considered to
be transferable to other public high schools.
   (iv) If the proposed charter school will enroll high school
pupils, information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses approved
by the University of California or the California State University as
satisfying their prerequisites for admission may be considered as
meeting college entrance requirements for purposes of this clause.
   (B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and aptitudes specified as goals
in the school's educational program. Pupil outcomes shall include
outcomes that address increases in pupil academic achievement both
schoolwide and for all groups of pupils served by the charter school,
as that term is defined in subparagraph (B) of paragraph (3) of
subdivision (a) of Section 47607. The pupil outcomes shall align with
the state priorities, as described in subdivision (d) of Section
52060, that apply for the grade levels served, or the nature of the
program operated, by the charter school.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method for
measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.
   (D) The location of each charter school facility that the
petitioner proposes to operate.
   (E) The governance structure of the charter school, including, but
not limited to, the process to be followed by the charter school to
ensure parental involvement.
   (F) The qualifications to be met by individuals to be employed by
the charter school.
   (G) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish it with a criminal record summary as described in Section
44237.
   (H) The means by which the charter school will achieve a racial
and ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the
school district to which the charter petition is submitted.
   (I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by the
state board, and the manner in which audit exceptions and
deficiencies shall be resolved.
   (J) The procedures by which pupils can be suspended or expelled.
   (K) The manner by which staff members of the charter school will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
   (L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.
   (M) Admission requirements of the charter school, if applicable.
   (N) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.
   (O) The rights of an employee of the county office of education,
upon leaving the employment of the county office of education, to be
employed by the charter school, and any rights of return to the
county office of education that an employee may have upon leaving the
employ of the charter school.
   (P) The procedures to be used if the charter school closes. The
procedures shall ensure a final audit of the school to determine the
disposition of all assets and liabilities of the charter school,
including plans for disposing of any net assets and for the
maintenance and transfer of public records.
   (6) A declaration of whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for purposes of the Educational Employment Relations
Act (Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code).
   (7) Any other basis that the county board of education finds
justifies the denial of the petition.
   (c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school's operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.
   (d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605 and
any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.
   (2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the charter school's educational
programs.
   (e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, gender
identity, gender expression, or disability. Except as provided in
paragraph (2), admission to a charter school shall not be determined
according to the place of residence of the pupil, or of his or her
parent or guardian, within this state.
   (2) (A) A charter school shall admit all pupils who wish to attend
the charter school.
   (B) If the number of pupils who wish to attend the charter school
exceeds the school's capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the county except as
provided for in Section 47614.5. Other preferences may be permitted
by the chartering authority on an individual  charter school
basis and only if consistent with the law.
   (C) In the event of a drawing, the county board of education shall
make reasonable efforts to accommodate the growth of the charter
school and in no event shall take any action to impede the charter
school from expanding enrollment to meet pupil demand.
   (f) The county board of education shall not require an employee of
the county or a school district to be employed in a charter school.
   (g) The county board of education shall not require a pupil
enrolled in a county program to attend a charter school.
   (h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the charter school, including, but
not limited to, the facilities to be used by the charter school, the
manner in which administrative services of the charter school are to
be provided, and potential civil liability effects, if any, upon the
charter school, any school district where the charter school may
operate, and upon the county board of education. The petitioner or
petitioners shall also be required to provide financial statements
that include a proposed first-year operational budget, including
startup costs, and cashflow and financial projections for the first
three years of operation.
   (i) In reviewing petitions for the establishment of charter
schools within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low achieving pursuant to
the standards established by the department under Section 54032, as
that section read before July 19, 2006.
   (j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent, and  to
 the state board.
   (k) If a county board of education denies a petition, the
petitioner may not elect to submit the petition for the establishment
of the charter school to the state board.
   (l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained on
file at the charter school and shall be subject to periodic
inspection by the chartering authority.
   (m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to the county office of education, the Controller, and the department
by December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.
   SEC. 47.    Section 47612.1 of the  
Education Code   is amended to read:
   47612.1.  (a) Except for the requirement that a pupil be a
California resident, subdivision (b) of Section 47612 shall not apply
to a charter school program that provides instruction exclusively in
partnership with any of the following:
   (1) The federal Workforce  Investment Act of 1998 (Public
Law No. 105-220; 29   Innovation and Opportunity Act (29
 U.S.C. Sec.  2801   3101  et seq.).
   (2) Federally affiliated Youth Build programs.
   (3) Federal job corps training or instruction provided pursuant to
a memorandum of understanding with the federal provider.
   (4) The California Conservation Corps or local conservation corps
certified by the California Conservation Corps pursuant to 
Sections   Section  14406 or 14507.5 of the Public
Resources Code.
   (b) This section shall become operative on July 1, 2015.
   SEC. 48.    Section 48300 of the   Education
Code   is amended to read: 
   48300.  For purposes of this article, the following definitions
apply:
   (a) "Active military duty" means full-time military duty status in
the active uniformed service of the United States, including members
of the National Guard and the State Reserve on active duty orders
pursuant to  Sections 1209 and 1211 of the  
Chapter 1209 (commencing with Section 12301) of, and Chapter 1211
(commencing with Section 12401) of, Part II of Subtitle E of 
Title 10 of the United States Code.
   (b) "Parent" means the natural or adoptive parent or guardian of a
dependent child.
   (c) "School district of choice" means a school district for which
a resolution is in effect as described in subdivision (a) of Section
48301.
   (d) "School district of residence" means the school district that
a pupil would be directed by this chapter to attend, except as
otherwise provided by this article.
   SEC. 49.    Section 49082 of the   Education
Code  is repealed.  
   49082.  The Superintendent of Public Instruction shall contract
with a consultant for independent project oversight. The Director of
Finance and the Chief Information Officer of the Department of
Information Technology shall review the request for proposals for the
contract. The consultant hired to conduct the independent project
oversight shall twice annually submit a written report to the
Superintendent of Public Instruction, the State Board of Education,
the FCMAT, the State Chief Information Office, the Director of
Finance, the Legislative Analyst, and the appropriate policy and
fiscal committees of the Legislature. The report shall include an
evaluation of the extent to which the CSIS is meeting the mission
described in Section 49080. 
   SEC. 50.    Section 51781 of the   Education
Code   is amended to read: 
   51781.   (a)    The  Department of
Education   department  shall  prepare
  prepare,  and distribute to  local
 school  districts   districts, 
guidelines and plans for the preparation of comprehensive educational
programs for the prevention of genetic diseases, disorders, and
birth defects,  and   and,  in cooperation
with those county offices of education  which  
that  desire to participate, shall assist school districts in
developing comprehensive genetic diseases and disorders plans and
 programs and for this purpose shall assume the following
functions and carry out the following duties:  
programs.  
   (a) Conduct 
    (b)     For the purposes set forth in
subdivision (a), the department shall conduct,  on an annual
 basis   basis,  at least 25 workshops and
training programs for approximately 2,500 school district teams of
certified school personnel, using instructional materials, curricula,
and guidelines developed by the department for dissemination at
training programs conducted during the year. 
   (b) Prepare an annual report for the Joint Legislative Budget
Committee which shall include, but not be limited to, the following
information: the names of school districts and schools participating
in the workshops, the numbers and staff composition of
                                     certified school personnel in
attendance at the workshops, an estimate of the number of pupils who
will benefit from the genetic diseases and disorders instruction, and
total program expenditures for the year. 
   SEC. 51.    Section 52302.8 of the  
Education Code   is amended to read: 
   52302.8.  (a) The Legislature hereby finds and declares that
vocational training resources that are provided through regional
occupational centers and programs are an essential component of the
state's secondary school system and the local system of providing
occupational skills training to high school pupils. For this reason,
the Legislature finds and declares that these resources should be
focused primarily on the needs of pupils enrolled in high school.
   (b) For the 2008-09 fiscal year, a regional occupational center or
program may claim no more than 50 percent of the state-funded
average daily attendance for which the center or program is eligible,
for services provided to students who are not enrolled in grades 9
to 12, inclusive.
   (c) For the 2009-10 fiscal year, a regional occupational center or
program may claim no more than 30 percent of the state-funded
average daily attendance for which the center or program is eligible,
for services provided to students who are not enrolled in grades 9
to 12, inclusive.
   (d) For the 2011-12 fiscal year and every fiscal year thereafter,
a regional occupational center or program may claim no more than 10
percent of the state-funded average daily attendance for which the
center or program is eligible, for services provided to students who
are not enrolled in grades 9 to 12, inclusive, and up to an
additional 5 percent for CalWORKs, Temporary Assistance Program, or
Job Corps participants and participants under the federal Workforce
 Investment   Innovation and Opportunity 
Act  of 1998  (29 U.S.C. Sec.  2810
  3101  et seq.) who are enrolled in Intensive
Training services.
   (e) Pupils who are CalWORKs, Temporary Assistance Program, or Job
Corps participants shall have priority for service within the
percentage limits established under subdivision (d).
   (f) Notwithstanding subdivision (d), a regional occupational
center or program may claim more than 15 percent of its average daily
attendance for students who are not enrolled in grades 9 to 12,
inclusive, if all of the students who are not enrolled in grades 9 to
12, inclusive, are CalWORKs, Temporary Assistance Program, or Job
Corps participants, and if the governing board of the regional
occupational center or program does all of the following:
   (1) Meets with local human services directors, and representatives
of adult education programs, community colleges and other
institutions of higher education, to assess the needs of CalWORKs,
Temporary Assistance Program, or, Job Corps and federal Workforce
 Investment   Innovation and Opportunity 
Act participants to identify alternative ways to meet the needs of
these adult students.
   (2) Enters into a transition plan, approved by the Superintendent,
to become in compliance with subdivision (d) in accordance with
benchmarks and timelines established in the transition plan.
Transition plans shall be established pursuant to guidelines issued
by the department, in consultation with the State Department of
Social Services, and shall be resubmitted and reviewed annually.
   (g) Notwithstanding subdivisions (b), (c), and (d), a regional
occupational center or program that claims more than 40 percent of
its students are not enrolled in grades 9 to 12, inclusive, on
January 1, 2007, shall submit a letter to the Superintendent by July
1 of each year until it complies with this subdivision, outlining the
goals of the regional occupational center or program to reduce the
number of adult students in order to comply with subdivision (d) on
or before July 1, 2013.
   (h) Regional occupational centers and programs operated in a rural
county of the sixth, seventh, or eighth class may exceed the number
of adults by an additional 10 percent of the limits established in
subdivisions (b), (c), and (d).
   (i) (1) For purposes of this calculation, adult average daily
attendance attributable to continuously enrolled grade 12 pupils who
have not passed the high school exit examination pursuant to Section
60851 is excluded from the calculation under this section. Amounts
that may become available from reductions resulting from the
enactment of this section shall be redirected to other regional
occupational centers or programs to serve additional secondary
pupils.
   (2) Adult average daily attendance funding for a regional
occupational center or program that has entered into a corrective
action plan pursuant to subdivision (k) shall not be redirected to
other regional occupational centers or programs to serve additional
secondary pupils for up to three years while the regional
occupational center or program is in corrective action.
   (j) The governing boards of a community college district and a
regional occupational center or program may enter into contractual
agreements under which the center or program provides services to
adult students of the community college district affected by this
section if both of the following are satisfied:
   (1) The agreements conform to state regulations and audit
requirements jointly developed by the Chancellor of the Office of the
California Community Colleges and the  State Department of
Education,   department,  in consultation with, and
subject to approval by, the Department of Finance.
   (2) A course offered for adults pursuant to an agreement entered
into pursuant to this subdivision is limited to the same cost per
student to the state as if the course were offered at the regional
occupational center or program. This subdivision does not authorize
the apportionment of funds for community colleges for adult students
in excess of the revenue limit for regional occupational centers or
programs if a course is deemed eligible for college credit.
   (k) A regional occupational center or program that fails to meet a
timeline established under subdivision (c), (d), or (g) shall meet
with the community college, adult education program, or other adult
service to identify alternative means of meeting the needs of adult
students and shall enter into a corrective action plan administered
by the department. The corrective action plan shall be established
pursuant to guidelines issued by the department and shall be
submitted to the department annually for review.
   SEC. 52.    Section 52520 of the   Education
Code   is amended to read: 
   52520.  (a) Every vocational or occupational training program for
adults offered by any high school district or unified school district
shall be reviewed every two years by the governing board to assure
that each program does all of the following:
   (1) Meets a documented labor market demand.
   (2) Does not represent unnecessary duplication of other manpower
training programs in the area.
   (3) Is of demonstrated effectiveness as measured by the employment
and completion success of its students.
   (b) Any program that does not meet the requirements of subdivision
(a) and the standards promulgated by the governing board shall be
terminated within one year.
   (c) The review process required by this section shall include the
review and comments by the local workforce  Investment
  investment  board established pursuant to the
 federal  Workforce  Investment  
Innovation and Opportunity  Act  of 1998  (29
U.S.C. Sec.  2801   3101  et seq.), and
pursuant to  (Division   Division  8
(commencing with Section 15000) of the Unemployment Insurance
 Code),   Code,  which review and comments
shall occur  prior to   before  any
decision by the appropriate governing body.
   SEC. 2.   SEC. 53.   Section 56337.5 of
the Education Code is amended to read:
   56337.5.  (a) A pupil who is assessed as being dyslexic and meets
eligibility criteria specified in Section 56337 and paragraph (10) of
subdivision (b) of Section 3030 of Title 5 of the California Code of
Regulations for the federal Individuals with Disabilities Education
Act (20 U.S.C. Sec. 1400 et seq.) category of specific learning
disabilities is entitled to special education and related services.
   (b) If a pupil who exhibits the characteristics of dyslexia or
another related reading dysfunction is not found to be eligible for
special education and related services pursuant to subdivision (a),
the pupil's instructional program shall be provided in the regular
education program.
   (c) It is the intent of the Legislature that the program
guidelines developed pursuant to Section 2 of Chapter 1501 of the
Statutes of 1990, for specific learning disabilities, including
dyslexia and other related disorders, be available for use by
teachers and parents in order for them to have knowledge of the
strategies that can be utilized with pupils for the remediation of
the various types of specific learning disabilities.
   SEC. 3.   SEC. 54.   Section 56339 of
the Education Code is amended to read:
   56339.  (a) A pupil whose educational performance is adversely
affected by a suspected or diagnosed attention deficit disorder or
attention deficit hyperactivity disorder and demonstrates a need for
special education and related services by meeting eligibility
criteria specified in paragraph (4) or (9) of subdivision (b) of
Section 3030 of Title 5 of the California Code of Regulations or
Section 56337 and paragraph (10) of subdivision (b) of Section 3030
of Title 5 of the California Code of Regulations for the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.) categories of "emotional disturbance," "other health
impairments," or "specific learning disabilities," is entitled to
special education and related services.
   (b) If a pupil with an attention deficit disorder or attention
deficit hyperactivity disorder is not found to be eligible for
special education and related services pursuant to subdivision (a),
the pupil's instructional program shall be provided in the regular
education program.
   (c) It is the intent of the Legislature that local educational
agencies promote coordination between special education and regular
education programs to ensure that all pupils, including those with
attention deficit disorders or attention deficit hyperactivity
disorders, receive appropriate instructional interventions.
   (d) It is further the intent of the Legislature that regular
education teachers and other personnel be trained to develop an
awareness about attention deficit disorders and attention deficit
hyperactivity disorders and the manifestations of those disorders,
and the adaptations that can be implemented in regular education
programs to address the instructional needs of pupils having these
disorders.
   SEC. 4.   SEC. 55.   Section 56426.6 of
the Education Code is amended to read:
   56426.6.  (a) Early education services shall be provided by a
local educational agency through a transdisciplinary team consisting
of a group of professionals from various disciplines, agencies, and
parents who shall share their expertise and services to provide
appropriate services for infants and their families. Each team member
shall be responsible for providing and coordinating early education
services for one or more infants and their families, and shall serve
as a consultant to other team members and as a provider of
appropriate related services to other infants in the program.
   (b) Credentialed personnel with expertise in vision or hearing
impairments shall be made available by the local educational agency
to early education programs serving infants identified in accordance
with paragraph (2), (5), or (13) of subdivision (b) of Section 3030
of Title 5 of the California Code of Regulations, and shall be the
primary providers of services under those programs whenever possible.

   (c) Transdisciplinary teams may include, but need not be limited
to, qualified persons from the following disciplines:
   (1) Early childhood special education.
   (2) Speech and language therapy.
   (3) Nursing, with a skill level not less than that of a registered
nurse.
   (4) Social work, psychology, or mental health.
   (5) Occupational therapy.
   (6) Physical therapy.
   (7) Audiology.
   (8) Parent-to-parent support.
   (d) A person who is authorized by the local educational agency to
provide early education or related services to infants shall have
appropriate experience in normal and atypical infant development and
an understanding of the unique needs of families of infants with
exceptional needs, or, absent that experience and understanding,
shall undergo a comprehensive training plan for that purpose, which
plan shall be developed and implemented as part of the staff
development component of the local plan for early education services.

   SEC. 5.   SEC. 56.   Section 56441.11 of
the Education Code is amended to read:
   56441.11.  (a) Notwithstanding any other law or regulation, the
special education eligibility criteria in subdivision (b) shall apply
to preschool children, between the ages of three and five years.
   (b) A preschool child, between the ages of three and five years,
qualifies as a child who needs early childhood special education
services if the child meets the following criteria:
   (1) Is identified as having one of the following disabling
conditions, as defined in Section 300.8 of Title 34 of the Code of
Federal Regulations, or an established medical disability, as defined
in subdivision (d):
   (A) Autism.
   (B) Deaf-blindness.
   (C) Deafness.
   (D) Hearing impairment.
   (E) Intellectual disability.
   (F) Multiple disabilities.
   (G) Orthopedic impairment.
   (H) Other health impairment.
   (I) Emotional disturbance.
   (J) Specific learning disability.
   (K) Speech or language impairment in one or more of voice,
fluency, language and articulation.
   (L) Traumatic brain injury.
   (M) Visual impairment.
   (N) Established medical disability.
   (2) Needs specially designed instruction or services as defined in
Sections 56441.2 and 56441.3.
   (3) Has needs that cannot be met with modification of a regular
environment in the home or school, or both, without ongoing
monitoring or support as determined by an individualized education
program team.
   (4) Meets eligibility criteria specified in Section 3030 of Title
5 of the California Code of Regulations.
   (c) A child is not eligible for special education and services if
the child does not otherwise meet the eligibility criteria and his or
her educational needs are due primarily to:
   (1) Unfamiliarity with the English language.
   (2) Temporary physical disabilities.
   (3) Social maladjustment.
   (4) Environmental, cultural, or economic factors.
   (d) For purposes of this section, "established medical disability"
means a disabling medical condition or congenital syndrome that the
individualized education program team determines has a high
predictability of requiring special education and services.
   (e) When standardized tests are considered invalid for children
between the ages of three and five years, alternative means,
including scales, instruments, observations, and interviews, shall be
used as specified in the assessment plan.
   (f) In order to implement the eligibility criteria in subdivision
(b), the Superintendent shall do all of the following:
   (1) Provide for training in developmentally appropriate practices,
alternative assessment, and placement options.
   (2) Provide a research-based review for developmentally
appropriate application criteria for young children.
   (3) Provide program monitoring for appropriate use of the
eligibility criteria.
   (g) If legislation is enacted mandating early intervention
services to infants and toddlers with disabilities pursuant to the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.), the Superintendent shall reconsider the eligibility
criteria for preschool children, between the ages of three and five
years, and recommend appropriate changes to the Legislature.
   SEC. 57.    Section 56475 of the   Education
Code   is amended to read: 
   56475.  (a) The Superintendent and the directors of the State
Department of Health Care Services, the State Department of
Developmental Services, the State Department of Social Services, the
Department of Rehabilitation, the Department of Corrections and
Rehabilitation, Division of Juvenile Facilities, and the Employment
Development Department shall develop written interagency agreements
or adopt joint regulations that include responsibilities, in
accordance with Section 1412(a)(12) of Title 20 of the United States
Code and Section 300.154 of Title 34 of the Code of Federal
Regulations, for the provision of special education and related
services to individuals with exceptional needs in the State of
California.
   (b) The Superintendent shall develop interagency agreements with
other state and local public agencies, as deemed necessary by the
Superintendent, to carry out the provisions of state and federal law.

   (c) (1) Each interagency agreement shall be submitted by the
Superintendent to each legislative fiscal committee, education
committee, and policy committee, responsible for legislation relating
to those individuals with exceptional needs that will be affected by
the agreement if it is effective.  
   (2) An interagency agreement shall not be effective sooner than 30
days after it has been submitted to each of the legislative
committees specified in paragraph (1). 
   SEC. 58.    Section 60800 of the   Education
Code   is amended to read: 
   60800.  (a) During the month of February, March, April, or May,
the governing board of each school district maintaining any of grades
5, 7, and 9 shall administer to each pupil in those grades the
physical performance test designated by the state board. Each pupil
with a physical disability and each pupil who is physically unable to
take all of the physical performance test shall be given as much of
the test as his or her condition will permit.
   (b) Upon request of the department, a school district shall submit
to the department, at least once every two years, the results of its
physical performance testing. 
   (c) The department shall compile the results of the physical
performance test and submit a report every two years, by December 31,
to the Legislature and Governor that standardizes the data, tracks
the development of high-quality fitness programs, and compares the
performance of California's pupils with national performance, to the
extent that funding is available.  
   (d) 
    (   c)  Pupils shall be provided with their
individual results after completing the physical performance testing.
The test results may be provided orally as the pupil completes the
testing. 
   (e) 
    (   d)  The governing board of a school
district shall report the aggregate results of its physical
performance testing administered pursuant to this section in 
their   its  annual school accountability report
card required by Sections 33126 and 35256.
   SEC. 59.    Section 60900 of the   Education
Code   is amended to read: 
   60900.  (a) The department shall contract for the development of
proposals that will provide for the retention and analysis of
longitudinal pupil achievement data on the tests administered
pursuant to Chapter 5 (commencing with Section 60600), Chapter 7
(commencing with Section 60810), and Chapter 9 (commencing with
Section 60850). The longitudinal data shall be known as the
California Longitudinal Pupil Achievement Data System.
   (b) The proposals developed pursuant to subdivision (a) shall
evaluate and determine whether it would be most effective, from both
a fiscal and a technological perspective, for the state to own the
system. The proposals shall additionally evaluate and determine the
most effective means of housing the system.
   (c) The California Longitudinal Pupil Achievement Data System
shall be developed and implemented in accordance with all state rules
and regulations governing information technology projects.
   (d) The system or systems developed pursuant to this section shall
be used to accomplish all of the following goals:
   (1) To provide school districts and the department access to data
necessary to comply with federal reporting requirements delineated in
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.).
   (2) To provide a better means of evaluating educational progress
and investments over time.
   (3) To provide local educational agencies information that can be
used to improve pupil achievement.
   (4) To provide an efficient, flexible, and secure means of
maintaining longitudinal statewide pupil level data.
   (5) To facilitate the ability of the state to publicly report
data, as specified in Section 6401(e)(2)(D) of the federal America
COMPETES Act (20 U.S.C. Sec. 9871) and as required by the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
   (6) To ensure that any data access provided to researchers, as
required pursuant to the federal Race to the Top regulations and
guidelines is provided, only to the extent that the data access is in
compliance with the federal Family Educational Rights and Privacy
Act of 1974 (20 U.S.C. Sec. 1232g).
   (e) In order to comply with federal law as delineated in the
federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.), the local educational agency shall retain individual pupil
records for each test taker, including all of the following:
   (1) All demographic data collected from the California Assessment
of Student Performance and Progress (CAASPP), high school exit
examination, and English language development tests.
   (2) Pupil achievement data from assessments administered pursuant
to the CAASPP, high school exit examination, and English language
development testing programs. To the extent feasible, data should
include subscore data within each content area.
   (3) A unique pupil identification number to be identical to the
pupil identifier developed pursuant to the California School
Information Services, which shall be retained by each local
educational agency and used to ensure the accuracy of information on
the header sheets of the CAASPP tests, high school exit examination,
and the English language development test.
   (4) All data necessary to compile reports required by the federal
No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.),
including, but not limited to, dropout and graduation rates.
   (5) Other data elements deemed necessary by the Superintendent,
with the approval of the state board, to comply with the federal
reporting requirements delineated in the federal No Child Left Behind
Act of 2001 (20 U.S.C. Sec. 6301 et seq.), and the federal American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), after
review and comment by the advisory board convened pursuant to
subdivision (h). Before the implementation of this paragraph with
respect to adding data elements to the California Longitudinal Pupil
Achievement Data System for the purpose of complying with the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5),
the department and the appropriate postsecondary educational agencies
shall submit an expenditure plan to the Department of Finance
detailing any administrative costs to the department and costs to any
local educational agency, if applicable. The Department of Finance
shall provide to the Joint Legislative Budget Committee a copy of the
expenditure plan within 10 days of receipt of the expenditure plan
from the department.
   (6) To enable the department, the University of California, the
California State University, and the Chancellor of the California
Community Colleges to meet the requirements prescribed by the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5),
these entities shall be authorized to obtain quarterly wage data,
commencing July 1, 2010, on students who have attended their
respective systems, to assess the impact of education on the
employment and earnings of those students, to conduct the annual
analysis of district-level and individual district or postsecondary
education system performance in achieving priority educational
outcomes, and to submit the required reports to the Legislature and
the Governor. The information shall be provided to the extent
permitted by federal statutes and regulations.
   (f) The California Longitudinal Pupil Achievement Data System
shall have all of the following characteristics:
   (1) The ability to sort by demographic element collected from the
CAASPP tests, high school exit examination, and English language
development test.
   (2) The capability to be expanded to include pupil achievement
data from multiple years.
   (3) The capability to monitor pupil achievement on the CAASPP
tests, high school exit examination, and English language development
test from year to year and school to school.
   (4) The capacity to provide data to the state and local
educational agencies upon their request.
   (g) Data elements and codes included in the system shall comply
with Sections 49061 to 49079, inclusive, and Sections 49602 and
56347, with Sections 430 to 438, inclusive, of Title 5 of the
California Code of Regulations, with the Information Practices Act of
1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part
4 of Division 3 of the Civil Code), and with the federal Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Sec. 1232g),
Section 1232h of Title 20 of the United States Code, and related
federal regulations.
   (h) The department shall convene an advisory board consisting of
representatives or designees from the state board, the Department of
Finance, the State Privacy Ombudsman, the Legislative Analyst's
Office, representatives of parent groups, school districts, and local
educational agencies, and education researchers to establish privacy
and access protocols, provide general guidance, and make
recommendations relative to data elements. The department is
encouraged to seek representation broadly reflective of the general
public of California. 
   (i) Subject to funding being provided in the annual Budget Act,
the department shall contract with a consultant for independent
project oversight. The Director of Finance shall review the request
for proposals for the contract. The consultant hired to conduct the
                                         independent project
oversight shall twice annually submit a written report to the
Superintendent, the state board, the advisory board, the Director of
Finance, the Legislative Analyst, and the appropriate policy and
fiscal committees of the Legislature. The report shall include an
evaluation of the extent to which the California Longitudinal Pupil
Achievement Data System is meeting the goals described in subdivision
(d) and recommendations to improve the data system in ensuring the
privacy of individual pupil information and providing the data needed
by the state and school districts.  
   (j) 
    (   i)  This section shall be implemented using
federal funds received pursuant to the federal No Child Left Behind
Act of 2001 (20 U.S.C. Sec. 6301 et seq.), which are appropriated for
purposes of this section in Item 6110-113-0890 of Section 2.00 of
the Budget Act of 2002 (Chapter 379 of the Statutes of 2002). The
release of these funds is contingent on approval of an expenditure
plan by the Department of Finance. 
   (k) 
    (   j)  For purposes of this chapter, a local
educational agency shall include a county office of education, a
school district, and a charter school.
   SEC. 60.    Section 12 of Chapter 525 of the Statutes
of 1995 is amended to read: 
   SEC. 12.   Sec. 12.   (a) The State
Department of Education shall present to the State Board of Education
a plan to implement the recommendations made by the State Department
of Education in the Standardized Account Code Structure: A
Supplement to the California School Accounting Manual (February 28,
1995, Draft) and in the Plan for Conversion to Standardized Account
Code Structure (April 6, 1995) pursuant to Section 3 of Chapter 237
of the Statutes of 1993. The  department   State
Department of   Education  shall implement the
structure upon approval of that plan by the State Board of Education.
 Prior to   Before  fully implementing
those recommendations, the standardized account code structure shall
be tested and the plan for implementation shall be revised as deemed
necessary by the  department   State Department
of Education  pursuant to the tests.
   (b) The plan submitted to the State Board of Education pursuant to
subdivision (a) to implement the standardized account code structure
shall advance the following goals:
   (1) Upgrading financial transaction software in use by school
districts and county offices of education to implement the
standardized account code structure.
   (2) Providing incentives to promote the sharing of financial
transaction systems and information among county offices of education
and school districts.
   (3) Facilitating financial information transfer as necessary to
facilitate planning by the Legislature with regard to specific
financial transactions of California school districts.
   (4) Providing training services to school districts and county
offices of education personnel to upgrade the quality of school
district financial practices and information usage. 
   (c) The Superintendent of Public Instruction shall report to the
Joint Legislative Budget Committee by March 15 of each year regarding
the implementation of the standardized account code structure
described in subdivision (a).