Amended in Senate August 2, 2016

Amended in Assembly April 25, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2659

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 8261, 35147, 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, begin insert 46600, end insert 47605.1, 47605.6, 47612.1, 48300, 51781, 52302.8, 52520, 56337.5, 56339, 56426.6, 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 elementary and secondary education.

LEGISLATIVE COUNSEL’S DIGEST

AB 2659, as amended, Committee on 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.

begin insert

Existing law requires each person between the ages of 6 to 18 years, inclusive, who is not otherwise exempt, to attend the public full-time day school in the school district in which his or her parent or guardian is a resident. Existing law authorizes the governing boards of 2 or more school districts to enter into an agreement, for a term not to exceed 5 school years, for the interdistrict attendance of pupils who are residents of the school districts.

end insert

This bill would make changes in statutes relating to public elementary and secondary schools, including specified statutes relating to the educational services provided to individuals with exceptional needs. begin insert The bill would prohibit a school district of residence, regardless of whether an interdistrict transfer agreement exists, from prohibiting the transfer of a pupil who is a child of an active military duty parent, as defined, to a school district of proposed enrollment if the school district of proposed enrollment approves the application for transfer. end insert The bill would make clarifying changes in numerous terms and phrases, conform state statutes to federal regulations, and update cross-references to statutes and to state regulations adopted pursuant to federal regulations. The bill would begin insert also end insert delete requirements for the submission of numerous reports relating to elementary and secondary education.

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

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

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.

(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 begin delete Fund, end delete begin insert Fund end insert 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.

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 52063, 52069, 52176, and 52852, subdivision
(b) of Section 54425, Sections 54444.2 and 62002.5, and
committees formed pursuant to Section 11503 are subject to this
section.

(c) (1) Any meeting held by a council or committee specified
in subdivision (b) shall be open to the begin delete public end delete begin insert public, end insert 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.

(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, or
that can be resolved solely by the provision of begin delete information end delete
begin insert information, end insert need not be described on an agenda as items of
business. If a council or committee violates the procedural meeting
requirements of this begin delete section and end delete begin insert section, end insert 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 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 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 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) Before the date upon which a 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 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 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 that thereafter maintains the school or other place
of employment, unless the employee elects 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.

(b) If the employee is a probationary employee of the school
district 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 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 that, as a result of any reorganization of a school district,
will be provided by another school district, irrespective of whether
any particular building or buildings in which the schoolwork or
school program was conducted is physically located in the
reorganized district and irrespective of whether any reorganized
district elects to provide for the education of its pupils by
contracting with another school district until the 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 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 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 original district, a position, for which he or
she qualifies, in the original district.

(C) An employee elects to have his or her name entered on a
reemployment list of the 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 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 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 5000 and 35105, when the
first elected board of any 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 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 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 the members whose terms expire on the
April 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 original district shall be used for the acquisition,
construction, or improvement of school property only in the
territory that comprised the original district or to discharge bonded
indebtedness of the original district, except 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 a school district becomes part of
two or more school districts of any type, and the inclusion in the
two or more new or acquiring districts of the several portions of
territory comprising the whole of the former district is effective
for all purposes on the same date, the records of the former district
shall be disposed of as follows:

(a) All records of the former district 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
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 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 former district is effective for all purposes
on the same date, the county superintendent of schools having
jurisdiction over the former district shall assume responsibility for
all of the following:

(1) Completing all records and reports of the former district.

(2) Paying all outstanding obligations, except obligations
resulting from contracts that are to be assumed by a 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 other functions that he or she 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 new or acquiring
districts shall release those employees to the county superintendent
of schools for the purpose of accomplishing the requirements of
this section. The salaries of those employees and all other necessary
expenses of completing the requirements of this section shall be
charged against the accumulated funds of the former district before
the final distribution of those funds to the new or acquiring districts.

SEC. 13.  

Section 35566 of the Education Code is amended to
read:

35566.  

Notwithstanding any other provision of this article,
exchanges of property tax revenues between school districts as a
result of 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 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 the divided district so that
the outstanding bonded indebtedness of the divided district would
exceed 5 percent of the assessed valuation 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 6 (commencing with Section 16000) of Part 10 of
Division 1 of Title 1), the amount of outstanding bonded
indebtedness, exclusive of interest, of the former or divided districts
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, a new or acquiring district by any
procedure, and the area transferred contains real property, the new
or acquiring district shall take possession of the real property,
pursuant to paragraph (1) of subdivision (a) of Section 35560, on
the day when the action to reorganize becomes effective for all
purposes. The reorganized territory shall cease to be liable for the
bonded indebtedness of the school district of which it was formerly
a 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 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 reorganized territory.

(c) The county board of supervisors shall compute for the
reorganized 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 those charges were established before
November 23, 1970. All of those tax rates shall be levied in excess
of any other ad valorem property tax authorized or required by
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 a school district having authorized but unsold
bonds is completely divided between two or more new or acquiring
districts so that the original district ceases to exist, pursuant to any
provision of this chapter, the board of supervisors shall, 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 each
new or acquiring district in the ratio that the assessed valuation of
the reorganized territory 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 school district for purposes of computing the
bonding capacity of the school district when applying the State
School Building Aid Law of 1952 (Chapter 6 (commencing with
Section 16000) of Part 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 that is included as a whole in a new or acquiring
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 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 that is included as a whole in a new or acquiring
district through any kind of reorganization, if issued by the board
of supervisors in the names of the former districts shall be
considered a liability of the new or acquiring district for purposes
of computing the bonding capacity of the school district when
applying the State School Building Aid Law of 1952 (Chapter 6
(commencing with Section 16000) of Part 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) 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 reorganized 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 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,
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) that were not included in the
petition as filed and may amend any such provision 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 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 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 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 to form one or
more new districts or for the division of the entire territory of a
school district into two or more 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 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 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 has determined that a
state administrator is no longer necessary, and has restored, 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 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) 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 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 board
of each affected 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
affected district 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 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 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 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 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 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 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 before submission of a final recommendation for unification
or other reorganization to the 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 affected district
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
new or acquiring districts, or proposed to be partially included in
one or more 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
other matters 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 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
reorganized district in accordance with Article 4 (commencing
with Section 35530) of Chapter 3, an affected district is subject to
all of the following:

(a) (1) The interim board or the governing board of the original
district or districts, and, where applicable, the administrators of
the original district or districts, shall notify the county
superintendent of schools in 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 original, proposed,
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 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 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
original, proposed, 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 original,
proposed, or reorganized school district, and that action is
unnecessary for the immediate functioning of the original or
reorganized school district, the county superintendent of schools
may stay or rescind that action. The county superintendent of
schools shall inform the 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
original school district governing 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 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 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 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 affected district.

(10) Any other criteria that the state board may, by regulation,
prescribe.

(b) The 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
Superintendent, the state board shall approve or disapprove the
petition. If the state board approves the 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 has approved the plans and
recommendations for the unification or other reorganization of the
school districts in any area, including approval through affirmation
or reversal of the action of a county committee, the secretary of
the 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 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 reorganized district lying
in that county bears to the total assessed valuation of the proposed
reorganized districts.

SEC. 35.  

Section 35780 of the Education Code is amended to
read:

35780.  

(a) A school district 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 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 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, 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, the following terms have
the following meanings:

(a) “Lapse” means dissolving a school district and 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:

(1) Continuation classes.

(2) Special day classes for mentally gifted minors.

(3) Makeup classes for absences occurring during 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 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) shall not apply to regional
occupational centers or programs.

SEC. 38.  

Section 41020.6 of the Education Code is repealed.

SEC. 39.  

Section 41320.3 of the Education Code is repealed.

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.

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 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.  

The Superintendent shall certify each apportionment
made by him or her under Sections 41332 to 41340, inclusive,
whichever are in effect, to the Controller.

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 (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.

(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 (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.

(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.

(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
before the availability of the proposed budget for public inspection.
The publication of the dates and locations shall occur no earlier
than 45 days before the final date for the hearing as specified in
subdivision (a) of, or paragraph (3) of subdivision (d) of, Section
42127, but not less than 10 days 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 (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.

(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 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.

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 46600 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

46600.  

(a) (1) The governing boards of two or more school
districts may enter into an agreement, for a term not to exceed five
school years, for the interdistrict attendance of pupils who are
residents of the begin insert school end insert districts. The agreement may provide for
the admission to a begin insert school end insert district other than the begin insert school end insert district of
residence of a pupil who requests a permit to attend a school district
that is a party to the agreement and that maintains schools and
classes in kindergarten or any of grades 1 to 12, inclusive, to which
the pupil requests admission. Once a pupil in kindergarten or any
of grades 1 to 12, inclusive, is enrolled in a school pursuant to this
chapter, the pupil shall not have to reapply for an interdistrict
transfer, and the governing board of the school district of
enrollment shall allow the pupil to continue to attend the school
in which he or she is enrolled, except as specified in paragraphs
(2) and (4).

(2) The agreement shall stipulate the terms and conditions under
which interdistrict attendance shall be permitted or denied. The
agreement may contain standards for reapplication agreed to by
the begin insert school end insert district of residence and the begin insert school end insert district of begin delete attendance end delete
begin insert enrollment end insert that differ from the requirements prescribed by
paragraph (1). The agreement may stipulate terms and conditions
established by the begin insert school end insert district of residence and the begin insert school end insert district
of enrollment under which the permit may be revoked.

(3) The supervisor of attendance of the begin insert school end insert district of
residence shall issue an individual permit verifying the begin insert school end insert
district’s approval, pursuant to policies of the governing board begin insert of
the school district end insert and terms of the agreement for the transfer. A
permit shall be valid upon concurring endorsement by the designee
of the governing board of the begin insert school end insert district of proposed
begin delete attendance. end delete begin insert enrollment. end insert The stipulation of the terms and conditions
under which the permit may be revoked is the responsibility of the
begin insert school end insert district of begin delete attendance. end delete begin insert enrollment. end insert

(4) Notwithstanding paragraph (2), a school district of residence
or school district of enrollment shall not rescind existing transfer
permits for pupils entering grade 11 or 12 in the subsequent school
year.

(b) A pupil who has been determined by personnel of either the
begin insert school end insert district of residence or the begin insert school end insert district of proposed
enrollment to have been the victim of an act of bullying, as defined
in subdivision (r) of Section 48900, committed by a pupil of the
begin insert school end insert district of residence shall, at the request of the person having
legal custody of the pupil, be given priority for interdistrict
attendance under any existing interdistrict attendance agreement
or, in the absence of an agreement, be given additional
consideration for the creation of an interdistrict attendance
agreement.

(c) In addition to the requirements of subdivision (e) of Section
48915.1, and regardless of whether an agreement exists or a permit
is issued pursuant to this section, any begin insert school end insert district may admit a
pupil expelled from another begin insert school end insert district in which the pupil
continues to reside.

begin insert

(d) (1) Notwithstanding any other law, and regardless of
whether an agreement exists or a permit is issued pursuant to this
section, a school district of residence shall not prohibit the transfer
of a pupil who is a child of an active military duty parent to a
school district of proposed enrollment if the school district of
proposed enrollment approves the application for transfer.

end insert begin insert

(2) (A) For purposes of this subdivision, “active military duty
parent” means a parent with full-time military duty status in the
active uniformed service of the United States, including members
of the National Guard and the State Military Reserve on active
duty orders pursuant to Chapter 1209 (commencing with Section
12301) and Chapter 1211 (commencing with Section 12401) of
Part II of Subtitle E of Title 10 of the United States Code.

end insert begin insert

(B) For purposes of this subdivision, “parent” means the natural
or adoptive parent or guardian of a dependent child.

end insert

begin delete SEC. 45. end delete

begin insert SEC. 46. end insert   

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 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 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 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 Innovation and Opportunity Act (29
U.S.C. Sec. 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.

begin delete SEC. 46. end delete

begin insert SEC. 47. end insert   

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 (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 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.

begin delete SEC. 47. end delete

begin insert SEC. 48. end insert   

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 Innovation and Opportunity Act (29
U.S.C. Sec. 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
Section 14406 or 14507.5 of the Public Resources Code.

(b) This section shall become operative on July 1, 2015.

begin delete SEC. 48. end delete

begin insert SEC. 49. end insert   

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 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.

begin delete SEC. 49. end delete

begin insert SEC. 50. end insert   

Section 49082 of the Education Code is repealed.

begin delete SEC. 50. end delete

begin insert SEC. 51. end insert   

Section 51781 of the Education Code is amended to
read:

51781.  

(a) The department shall prepare, and distribute to
school districts, guidelines and plans for the preparation of
comprehensive educational programs for the prevention of genetic
diseases, disorders, and birth defects, and, in cooperation with
those county offices of education that desire to participate, shall
assist school districts in developing comprehensive genetic diseases
and disorders plans and programs.

(b) For the purposes set forth in subdivision (a), the department
shall conduct, on an annual 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.

begin delete SEC. 51. end delete

begin insert SEC. 52. end insert   

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 Innovation and Opportunity Act (29 U.S.C.
Sec. 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 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 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.

begin delete SEC. 52. end delete

begin insert SEC. 53. end insert   

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 board
established pursuant to the federal Workforce Innovation and
Opportunity Act (29 U.S.C. Sec. 3101 et seq.), and pursuant to
Division 8 (commencing with Section 15000) of the
Unemployment Insurance Code, which review and comments shall
occur before any decision by the appropriate governing body.

begin delete SEC. 53. end delete

begin insert SEC. 54. end insert   

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.

begin delete SEC. 54. end delete

begin insert SEC. 55. end insert   

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.

begin delete SEC. 55. end delete

begin insert SEC. 56. end insert   

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.

begin delete SEC. 56. end delete

begin insert SEC. 57. end insert   

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.

begin delete SEC. 57. end delete

begin insert SEC. 58. end insert   

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.

begin delete SEC. 58. end delete

begin insert SEC. 59. end insert   

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) 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.

(d) The governing board of a school district shall report the
aggregate results of its physical performance testing administered
pursuant to this section in its annual school accountability report
card required by Sections 33126 and 35256.

begin delete SEC. 59. end delete

begin insert SEC. 60. end insert   

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) 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.

(j) For purposes of this chapter, a local educational agency shall
include a county office of education, a school district, and a charter
school.

begin delete SEC. 60. end delete

begin insert SEC. 61. end insert   

Section 12 of Chapter 525 of the Statutes of 1995 is
amended to read:

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 State Department of Education shall
implement the structure upon approval of that plan by the State
Board of Education. 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 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.