BILL NUMBER: SB 1777	ENROLLED
	BILL TEXT

	PASSED THE SENATE   JULY 8, 1996
	PASSED THE ASSEMBLY   JULY 8, 1996
	AMENDED IN ASSEMBLY   JULY 8, 1996
	AMENDED IN ASSEMBLY   JULY 8, 1996

INTRODUCED BY  Senators O'Connell, Peace, and Wright and Assembly
Members Baldwin, Alpert, Firestone, and Machado
   (Coauthors:  Senators Alquist, Ayala, Costa, Dills, Hughes,
Johnston, Killea, Kopp, Leonard, Leslie, Lockyer, Marks, Mello,
Polanco, Rosenthal, Sher, Solis, Thompson, Watson, Haynes, Monteith,
Russell, and Johannessen)
   (Coauthors:  Assembly Members Ackerman, Aguiar, Alby,
Archie-Hudson, Baca, Bates, Battin, Baugh, Boland, Bordonaro, Bowen,
Bowler, Brewer, Brown, Brulte, Cannella, Conroy, Cunneen, Davis,
Ducheny, Figueroa, Frusetta, Gallegos, Goldsmith, Granlund, Hannigan,
Harvey, Hauser, Hawkins, Hoge, House, Kaloogian, Katz, Knight,
Knowles, Knox, Kuehl, Kuykendall, Lee, Margett, Martinez, Mazzoni,
McPherson, Miller, Morrissey, Morrow, Kevin Murray, Napolitano,
Olberg, Poochigian, Pringle, Rainey, Richter, Rogan, Speier, Sweeney,
Takasugi, Thompson, Villaraigosa, Weggeland, and Woods)

                        FEBRUARY 22, 1996

   An act to amend Sections 33050 and 46205 of, and to add Chapter
6.10 (commencing with Section 52120) to Part 28 of, the Education
Code, relating to class size in the public elementary schools, making
an appropriation therefor, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1777, O'Connell.  Education:  class size reduction.
   (1) Under existing law, the Morgan-Hart Class Size Reduction Act
of 1989, any school district that maintains any of grades 9 to 12,
inclusive, may apply to the Superintendent of Public Instruction for
an apportionment to implement a program to reduce class size in those
grades.
   This bill would create the Class Size Reduction Program to provide
funding to school districts to reduce class size in kindergarten and
grades 1 to 3, inclusive, to no more than 20 pupils per certificated
teacher.  The bill would require that the Superintendent of Public
Instruction apportion to each applicant school district an amount
equal to $650 per each pupil enrolled in classes participating in the
program, as specified, for class size reduction, provided the school
district certifies that it has met certain requirements.  The bill
would require the Superintendent to apportion $325 per each pupil
enrolled in classes participating in the program for reimbursement
for any class in kindergarten or any of grades 1 to 3, inclusive,
that is reduced, as specified, for at least half of the instructional
minutes offered per day.  The bill would provide that the number of
pupils for which a school district may claim funding shall not exceed
20 per certificated teacher providing direct instructional services
to those pupils.  The bill would provide that class size shall be
determined in the same manner that class size is determined when
computing apportionments and allowances from the State School Fund,
as specified.
   This bill would require the State Department of Education to
contract for an independent evaluation of the Class Size Reduction
Program to be completed on or before March 28, 2002.  The bill would
require that the report be submitted to specified fiscal and policy
committee chairpersons in each house of the Legislature and to the
Governor and Director of Finance no later than March 28, 2002.
   (2) Under existing law, the governing board of a school district
or a county board of education may request the State Board of
Education to waive all or part of any section of the Education Code
or any regulation adopted by the State Board of Education that
implements the Education Code, except certain listed provisions.
   This bill would provide that the State Board of Education may not
waive the Class Size Reduction Program in kindergarten and grades 1
to 3, inclusive.
   (3) This bill would appropriate $771,000,000 to the Superintendent
of Public Instruction for the exclusive purpose of allocating funds
to school districts pursuant to the Class Size Reduction Program.
The bill would require that the appropriation be included in the
amounts appropriated by the state in the 1996-97 fiscal year for the
purpose of meeting the state's minimum funding obligation to school
districts and community college districts under Section 8 of Article
XVI of the California Constitution for that fiscal year.
   (4) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


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


  SECTION 1.  Section 33050 of the Education Code is amended to read:

   33050.  (a) The governing board of a school district or a county
board of education may, on a districtwide or countywide basis or on
behalf of one or more of its schools or programs, after a public
hearing on the matter, request the State Board of Education to waive
all or part of any section of this code or any regulation adopted by
the State Board of Education that implements a provision of this code
that may be waived, except:
   (1) Article 1 (commencing with Section 15700) and Article 2
(commencing with Section 15780) of Chapter 6 of Part 10.
   (2) Chapter 8 (commencing with Section 16000) and Chapter 9
(commencing with Section 16400) of Part 10.
   (3) Chapter 22 (commencing with Section 17700), Chapter 23
(commencing with Section 17760), and Chapter 25 (commencing with
Section 17785) of Part 10.
   (4) Part 13 (commencing with Section 22000).
   (5) Section 35735.1.
   (6) Paragraph (8) of subdivision (a) of Section 37220.
   (7) The following provisions of Part 23:
   (A) Chapter 1 (commencing with Section 39000).
   (B) Article 1 (commencing with Section 39100) to Article 6
(commencing with Section 39210), inclusive, of Chapter 2.
   (C) Section 39248; Sections 39313 to 39325, inclusive; Sections
39360.5 and 39363 and subdivision (a) of Section 39363.5; and
Sections 39618 to 39621, inclusive.
   (8) Sections 52163, 52165, 52166, and 52178.
   (9) Article 3 (commencing with Section 52850) of Chapter 12 of
Part 28.
   (10) The identification and assessment criteria relating to any
categorical aid program, including Sections 52164.1 and 52164.6.
   (11) Sections 41000 to 41360, inclusive; Sections 41420 to 41423,
inclusive; Sections 41600 to 41866, inclusive; Sections 41920 to
42911, inclusive; Article 3 (commencing with Section 44930) of
Chapter 4 of Part 25; Part 26 (commencing with Section 46000) and
Chapter 6 (commencing with Section 48900) and Chapter 6.5 (commencing
with Section 49060) of Part 27; or regulations in Title 5 of the
California Code of Regulations adopted pursuant to Article 3
(commencing with Section 44930) of Chapter 4 of Part 25.
   (12) Section 51513.
   (13) Chapter 6.10 (commencing with Section 52120) of Part 28,
relating to the Class Size Reduction Program.
   (b) Any waiver of provisions related to the programs identified in
Section 52851 shall be granted only pursuant to Article 3
(commencing with Section 52850) of Chapter 12 of Part 28.
   (c) The waiver of an advisory committee required by law shall be
granted only pursuant to Article 4 (commencing with Section 52870) of
Chapter 12 of Part 28.
   (d) Any request for a waiver submitted by the governing board of a
school district or a county board of education pursuant to
subdivision (a) shall include a written statement as to (1) whether
the exclusive representative of employees, if any, as provided in
Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1
of the Government Code, participated in the development of the waiver
and (2) the exclusive representative's position regarding the
waiver.
   (e) Any request for a waiver submitted pursuant to subdivision (a)
relating to a regional occupational center or program established
pursuant to Article 1 (commencing with Section 52300) of Chapter 9 of
Part 28, that is operated by a joint powers entity established
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, shall be submitted as a joint waiver
request for each participating school district and shall meet both
of the following conditions:
   (1) Each joint waiver request shall comply with all of the
requirements of this article.
   (2) The submission of a joint waiver request shall be approved by
a unanimous vote of the governing board of the joint powers agency.
   (f) The governing board of any school district requesting a waiver
under this section of any provision of Article 5 (commencing with
Section 39390) of Chapter 3 of Part 23 shall provide written notice
of any public hearing it conducted pursuant to subdivision (a), at
least 30 days prior to the hearing, to each public agency identified
under Section 39394.
  SEC. 2.  Section 46205 of the Education Code is amended to read:
   46205.  (a) For purposes of this article, instructional time for
school districts conducting early-late instructional programs in
kindergarten and grades 1 to 8, inclusive, shall be computed by
adding the total amount of instructional time provided in each
portion of the early-late instructional programs to the amount of
instructional time offered when all pupils in the class are scheduled
to attend.  It is not the intent of the  Legislature to disrupt or
restrict early-late instructional programs for pupils in kindergarten
and grades 1 to 8, inclusive.
   (b) This section shall be applicable only if the early-late
instructional program was in operation during the 1983-84 fiscal
year, except that the Superintendent of Public Instruction may
approve, based on educational reasons, the application of this
section to programs commencing operation after the 1983-84 fiscal
year.
   (c) Notwithstanding any other provision of law, this section is
not applicable to any class in any grade level for which class size
reduction funding is received pursuant to the Class Size Reduction
Program contained in Chapter 6.10 (commencing with Section 52120) of
Part 28.
  SEC. 3.  Chapter 6.10 (commencing with Section 52120) is added to
Part 28 of the Education Code, to read:

      CHAPTER 6.10.  CLASS SIZE REDUCTION PROGRAM

   52120.  There is hereby established the Class Size Reduction
Program.
   52121.  The following entities are not eligible to participate in
the Class Size Reduction Program:
   (a) County boards of education.
   (b) County superintendents of schools.
   52122.  (a) Except as otherwise provided by Section 52123, any
school district that maintains any kindergarten or any of grades 1 to
3, inclusive, may apply to the Superintendent of Public Instruction
for an apportionment to implement a class size reduction program in
that school district in any kindergarten or any of grades 1 to 3,
inclusive.
   (b) An application submitted pursuant to this chapter shall
identify both of the following:
   (1) Each class that will participate in the Class Size Reduction
Program.
   (2) For each class that will participate in the Class Size
Reduction Program, whether that class will operate under Option One
or Option Two:
   (A) Option One:  a school district shall provide a reduced class
size for all pupils in each classroom in each grade level for which
funding is claimed.  For the purposes of this paragraph, class size
shall be determined in the same manner as provided in Sections 41376
and 41378 and any rules or regulations related thereto adopted by the
Superintendent of Public Instruction.
   (B) Option Two:  a school district shall provide a reduced class
size for all pupils in each classroom for at least one-half of the
instructional minutes offered per day in each grade level for which
funding is claimed.  School districts selecting this option shall
primarily devote those instructional minutes to the subject areas of
reading and mathematics.  For the purposes of this paragraph, class
size for each class participating in the program shall be determined
in the same manner as provided in Sections 41376 and 41378 and any
related rules or regulations adopted by the Superintendent of Public
Instruction.
   (c) A school district that intends to implement a Class Size
Reduction Program for the 1996-97 school year shall submit an
application for funds pursuant to this chapter to the Superintendent
of Public Instruction not later than November 1, 1996.  In order to
receive the total amount of funding for which the school district is
eligible pursuant to Section 52126, a school district shall implement
the Class Size Reduction Program by February 16, 1997, within the
meaning of paragraph (2) of subdivision (a).
   (d) A school district that intends to implement or continue to
implement a Class Size Reduction Program for the 1997-98 school year
and any subsequent school year shall submit an application for
funding pursuant to this chapter to the Superintendent of Public
Instruction not later than the June 30 prior to the commencement of
the new school year.
   (e) Any school district that chooses to reduce class size through
the use of an early-late instructional program is ineligible to also
use Section 46205, relating to the computation of instructional time
for purposes of the Incentive for Longer Instructional Day and Year,
in any grade level or which class size reduction funding is received
pursuant to this chapter.
   52123.  A school district's application for funding to implement a
program pursuant to this chapter shall include the district's
certification of each of the following items as a condition to
receiving any apportionment under Section 52126:
   (a) Certification of the number of classes in each eligible grade
level selected for a class size reduction apportionment pursuant to
this chapter.
   (b) Certification of pupil enrollment, as of October of the
previous calendar year, in each class selected for class size
reduction pursuant to subdivision (a).  Classes comprised of special
education pupils enrolled in special day classes on a full-time basis
shall not be included in this program.
   (c) Certification that a certificated teacher has been hired by
the school district and is providing direct instructional services to
each class selected for class size reduction pursuant to this
chapter and that there are not more than 20 pupils per each such
class.  For the purposes of this subdivision, class size for each
class participating in the program shall be determined in the same
manner as provided in Sections 41376 and 41378, and any rules or
regulations related thereto adopted by the Superintendent of Public
Instruction.
   (d) Certification that the school district has maintained or
further reduced class sizes accomplished through previous
apportionments made under this chapter.
   (e) Certification that the school district has not increased the
average class size in any kindergarten or in any of grades 1 to 3,
inclusive, in the district, above the average that existed in the
school year preceding the school year in which the district first
received an apportionment under this chapter.
   (f) Certification that the school district has a staff development
program pursuant to Section 52127 and that the program has been
approved by the governing board of the school district.
   (g) Certification that the school district will collect and
maintain any data required by the Superintendent of Public
Instruction that will aid in the evaluation of the Class Size
Reduction Program.  The data shall include, but not be limited to,
individual test scores or other records of pupil achievement and
pupil behavior.  Any data collected shall be protected in a manner
that will not permit the personal identification of any pupil or
parent.
   52124.  (a) Any school district that implements a Class Size
Reduction Program pursuant to this chapter is subject to this
section.
   (b) A school district may establish a program to reduce class size
in kindergarten and grades 1 to 3, inclusive, and that program shall
be implemented at each schoolsite according to the following
priorities:
   (1) If only one grade level is reduced at a schoolsite, the grade
level shall be grade 1.
   (2) If only two grade levels are reduced at a schoolsite, the
grade levels shall be grades 1 and 2.
   (3) If three grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 and 2 or grades 1 to
3, inclusive.  Priority shall be given to the reduction of class
sizes in grades 1 and 2 before the class sizes of kindergarten or
grade 3 are reduced.
   (4) If four grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 to 3, inclusive.
First priority shall be given to the reduction of class sizes in
grades 1 and 2, second priority shall be given to the reduction of
class size in kindergarten and grade 3.  This paragraph shall be
operative only in those fiscal years for which funds are appropriated
expressly for the purposes of this paragraph.
   (c) It is the intent of the Legislature to continue to permit the
use of combination classes of more than one grade level to the extent
that school districts are otherwise permitted to use that
instructional strategy.  However, any school district that uses a
combination class in any class for which funding is received pursuant
to this chapter may not claim funding pursuant to this chapter if
the total number of pupils in the combination class, regardless of
grade level, for any class that exceeds 20 pupils per certificated
teacher assigned to provide direct instructional services.
   (d) The governing board of a school district shall certify to the
Superintendent of Public Instruction that it has met the requirements
of this section in implementing its class size reduction program.
If a school district receives funding pursuant to this chapter but
has not implemented its class size reduction program for all grades
and classes for which it received funding pursuant to this chapter,
the Superintendent of Public Instruction shall notify the Controller
and the school district in writing and the Controller shall deduct an
amount equal to the amount received by the school district under
this chapter from the school districts next apportionment or
apportionments of state funds to the district, other than basic aid
apportionments required by Section 6 of Article IX of the Californian
Constitution.
   (e) The Superintendent of Public Instruction shall develop a
procedure to enforce subdivision (c) and shall incorporate that
procedure as an integral part of the school district audit and
compliance review conducted by the State Department of Education.
The Controller shall include a provision appropriate to the
enforcement of subdivision (c) in the audit guide required by
subdivision (a) of Section 14502.
   52125.  (a) On or before August 1, 1996, the Superintendent of
Public Instruction shall develop a form for the applications by which
school districts may apply for funding pursuant to this chapter.
   (b) The State Board of Education may adopt regulations for the
purposes of this chapter as emergency regulations in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.  For the purposes of the
Administrative Procedure Act, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be deemed to
be an emergency and necessary for the immediate preservation of the
public peace, health and safety, or general welfare, notwithstanding
subdivision (e) of Section 11346.1 of the Government Code.
Notwithstanding subdivision (e) of Section 11346.1, any regulation
adopted pursuant to this section shall not remain in effect more than
180 days unless the State Board of Education complies with all
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, as required by
subdivision (e) of Section 11346.1 of the Government Code.
   52126.  The amount of funding that each school district
implementing a Class Size Reduction Program pursuant to this chapter
is eligible to receive shall be computed as follows:
   (a) If a school district applies to participate in Option One,
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 52122, the Superintendent of Public Instruction shall
apportion to the applicant school district an amount equal to six
hundred fifty dollars ($650) for each pupil actually enrolled in the
classes in which the school district implements the program, except
that the maximum number of pupils for which a school district may
claim funding for any class shall not exceed 20.  The number of
pupils claimed pursuant to this subdivision shall be pupils actually
enrolled in classes participating in the Class Size Reduction Program
and shall not be based on the average size of the classes for any
grade levels for which funding is claimed.
   (b) If a school district applies to participate in Option Two,
pursuant to subparagraph (B) of paragraph (2) of subdivision (b) of
Section 52122, the Superintendent of Public Instruction shall
apportion to the applicant school district an amount equal to three
hundred twenty-five dollars ($325) per pupil actually enrolled in the
classes in which the school district implements the program, except
that the number of pupils in any class for which a school district
may claim funding for the instructional minutes offered shall not
exceed 20.  The number of pupils claimed pursuant to this subdivision
shall be pupils actually enrolled in classes participating in the
Class Size Reduction Program and shall not be based on the average
size of the classes for any grade levels for which funding is
claimed.
   (c) The per pupil amount set forth in subdivisions (a) and (b)
shall be increased annually for inflation by the percentage change
determined pursuant to subdivision (b) of Section 42238.1.
   (d) The Superintendent of Public Instruction shall only apportion
funds to a school district upon certification that its class size
reduction program has been implemented for that fiscal year.
   (e) It is the intent of the Legislature that the total statewide
amount computed for the purposes of this chapter pursuant to this
section, commencing with the 1997-98 fiscal year, be appropriated to
the Superintendent of Public Instruction in the annual Budget Act.
   52127.  (a) As a condition to receiving any apportionment pursuant
to Section 51726, school districts shall have a staff development
program that requires any certificated teacher who will provide
direct instructional services for a class participating in the school
district's class size reduction program to receive the appropriate
training necessary to maximize the educational advantages of class
size reduction.  This training shall include, but not be limited to,
methods for providing each of the following:
   (1) Individualized instruction.
   (2) Effective teaching, including classroom management, in smaller
classes.
   (3) Identifying and responding to pupil needs.
   (4) Opportunities to build on the individual strengths of pupils.

   (b) School districts may use funds currently received for staff
development or funds received under this chapter to meet the
requirements of this section.
   52128.  The State Department of Education shall contract for an
independent evaluation of the Class Size Reduction Program to be
completed on or before March 28, 2002.  The costs of the evaluation
shall be paid for from funds appropriated to the department in the
Budget Act.  The evaluation shall consider the data collected by
school districts pursuant to subdivision (g) of Section 52123.  The
evaluation shall determine whether this program has been effective in
improving pupil achievement and shall identify components of a
successful class size reduction program.  The evaluation shall be
submitted to the chairpersons of the Joint Legislative Budget
Committee, the Assembly Committee on Budget, the Senate Committee on
Budget and Fiscal Review, the Assembly Committee on Education, and
the Senate committee of Education, and to the Governor and the
Director of Finance no later than March 28, 2002.
  SEC. 6.  (a) The sum of seven hundred seventy-one million dollars
($771,000,000) is hereby appropriated from the General Fund, without
regard to fiscal year, to the Superintendent of Public Instruction
exclusively for allocation to school districts for the purposes of
the Class Size Reduction Program established pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of the Education Code.
   (b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated to school districts," as defined in
subdivision (c) of Section 41202 of the Education Code for the
1996-97 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIIIB" as defined
in subdivision (e) of Section 41202 of the Education Code, for the
1996-97 fiscal year.
  SEC. 7.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to make statutory changes necessary to implement the
Budget Act of 1996, it is necessary for this act to take effect
immediately.