BILL NUMBER: SB 1843 CHAPTERED 09/01/00 CHAPTER 286 FILED WITH SECRETARY OF STATE SEPTEMBER 1, 2000 APPROVED BY GOVERNOR AUGUST 31, 2000 PASSED THE SENATE AUGUST 22, 2000 PASSED THE ASSEMBLY AUGUST 18, 2000 AMENDED IN ASSEMBLY JUNE 27, 2000 AMENDED IN SENATE MARCH 27, 2000 INTRODUCED BY Senator Solis (Principal coauthor: Assembly Member Kuehl) FEBRUARY 24, 2000 An act to amend Section 56045 of, and to add Article 8 (commencing with Section 56845) to Chapter 7.2 of Part 30 of, the Education Code, relating to special education. LEGISLATIVE COUNSEL'S DIGEST SB 1843, Solis. Special education. (1) Existing law prohibits state funds from being allocated to offset any federal funding intended for individuals with exceptional needs and withheld from a local educational agency due to the agency' s noncompliance with federal law. This bill would authorize the Superintendent of Public Instruction to withhold, in whole or in part, state funds or federal funds allocated under the Individuals with Disabilities Education Act from a district, special education local plan area, or county office after reasonable notice and opportunity for a hearing if the superintendent makes certain findings regarding noncompliance with state and federal law on special education and failure to implement the decision of a due process hearing officer regarding noncompliance with state or federal law on special education. The bill would authorize the superintendent to apportion the state or federal funds withheld if the superintendent determines substantial progress toward compliance is being made. The bill would exempt the State Department of Education from laws regarding public contracts in order to enter into contracts with local education agencies to serve certain individuals with special needs. (2) Existing law requires the Superintendent of Public Instruction to send a notice to each member of the governing board of a local education agency within 30 days of the superintendent's receipt of notification by the federal government that a local education agency is not in compliance with the Individuals with Disabilities Education Act or Section 504 of the Rehabilitation Act of 1973, or when the superintendent determines that the local educational agency is not in substantial compliance with any provision of this part. This bill would require that the notice be sent to the governing board of each local education agency instead of to each member of that board and would require the notice to be sent when the superintendent determines a local education agency is substantially out of compliance with one or more significant provisions of state or federal law regarding special education or their implementing regulations, fails to comply substantially with corrective action orders issued by the department resulting from focused monitoring findings or complaint investigations, or fails to implement the decision of a due process hearing officer for noncompliance with the law, which noncompliance results in the denial of, or impedes the delivery of, a free and appropriate public education for an individual with exceptional needs. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 56045 of the Education Code is amended to read: 56045. (a) The superintendent shall send a notice to the governing board of each local education agency within 30 days of when the superintendent determines any of the following: (1) The district, special education local plan area, or county office is substantially out of compliance with one or more significant provisions of this part, its implementing regulations, provisions of the Individuals with Disabilities Education Act ( 20 U.S.C. Sec. 1400 et seq.), or its implementing regulations. (2) The district, special education local plan area, or county office fails to comply substantially with corrective action orders issued by the department resulting from focused monitoring findings or complaint investigations. (3) The district, special education local plan area, or county office fails to implement the decision of a due process hearing officer for noncompliance with provisions of this part, its implementing regulations, provisions of the Individuals with Disabilities Education Act ( 20 U.S.C. Sec. 1400 et seq.), or its implementing regulations, which noncompliance results in the denial of, or impedes the delivery of, a free and appropriate public education for an individual with exceptional needs. (b) The notice shall provide a description of the special education and related services that are required by law and with which the district, special education local plan area, or county office is not in compliance. (c) Upon receipt of the notification sent pursuant to subdivision (a), the governing board shall at a regularly scheduled public hearing address the issue of noncompliance. SEC. 2. Article 8 (commencing with Section 56845) is added to Chapter 7.2 of Part 30 of the Education Code, to read: Article 8. Withholding of Payments 56845. (a) The superintendent may withhold, in whole or in part, state funds or federal funds allocated under the Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.) from a district, special education local plan area, or county office after reasonable notice and opportunity for a hearing if the superintendent finds either of the following: (1) The district, special education local plan area, or county office failed to comply substantially with a provision of state law, federal law, or regulations governing the provision of special education and related services to individuals with exceptional needs which results in the failure to comply substantially with corrective action orders issued by the department resulting from monitoring findings or complaint investigations. (2) The district, special education local plan area, or county office failed to implement the decision of a due process hearing officer based on noncompliance with provisions of this part, its implementing regulations, provisions of the Individuals with Disabilities Education Act ( 20 U.S.C. Sec. 1400 et seq.), or its implementing regulations, which noncompliance results in the denial of, or impedes the delivery of, a free and appropriate public education for an individual with exceptional needs. (b) When the superintendent determines that a district, special education local plan area, or county office made substantial progress toward compliance with state law, federal law, or regulations governing the provision of special education and related services to individuals with exceptional needs, the superintendent may apportion the state or federal funds withheld from the district, special education local plan area, or county office. (c) Notwithstanding any other provision of law, state funds may not be allocated to offset any federal funding intended for individuals with exceptional needs, as defined in Section 56026, and withheld from a local educational agency due to the agency's noncompliance with state or federal law. (d) For purposes of this section, in order to enter into contracts with one or more local education agencies to serve individuals with exceptional needs who are not being served as required under this part, the department is exempt from the requirements of Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and from the requirements of Article 6 (commencing with Section 999) of Chapter 6 of Division 4 of the Military and Veterans Code.