BILL NUMBER: AB 2435	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 24, 2012

   An act to amend Section 12000 of, and to add Section 
33038   33329  to, the Education Code, relating to
education finance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2435, as amended, Roger Hernández. Education finance: indirect
cost rates.
   Existing law requires the State Board of Education to direct the
allocation and apportionment of federal funds to school districts, as
defined, and other agencies entitled to receive those funds. 
Existing law authorizes the State Department of Education to take
numerous actions with respect to the receipt of funding by school
districts and other local educational agencies. 
   This bill would require the  state board  
State Department of Education  , and any other state agency that
administers a grant or allocation of federal funds to a school
district, as defined, to allow an indirect cost rate, as defined,
that is not less than the indirect cost rate established by the
 state board   department  for each school
district, unless  federal law requires  a lower indirect
cost rate  is required by federal law   for
school districts receiving federal funds  . The bill would
impose similar requirements on the  state board 
 department  with respect to grants or allocations of state
funds.
   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 12000 of the Education Code is amended to read:

   12000.  (a) If, by any act of Congress, funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment and
distribution of those funds to school districts shall, insofar as
consistent with the requirements prescribed by the federal law and
implementing rules and regulations, be governed by the standards set
forth in this article.
   (b) If a federal law designates a state educational agency or
other agency or officer primarily responsible for state supervision
of public schools, that designation shall be deemed to refer to the
state board. The state board shall make timely application for any
federal funds made available, and shall, pursuant to the federal law
and this article, direct the allocation and apportionment of the
federal funds to school districts.
   (c)  Notwithstanding any other law, the state board,
  The department  and any other state agency that
administers a grant or allocation of federal funds to a school
district, shall allow an indirect cost rate, as that term is defined
in Section  33038   33329  , that is not
less than the indirect cost rate established by the  state
board  department  for each school district, unless
 federal law requires  a lower indirect cost rate 
is required by federal law   for school districts that
receive federal funds  .
   (d) For purposes of this section and Section 12001, "school
districts" include school districts, county offices of education, and
other educational agencies or entities deemed eligible pursuant to
state and federal law.
  SEC. 2.  Section  33038   33329  is added
to the Education Code, to read:
    33038.   33329.   (a) 
Notwithstanding any other law, the state board,   The
department  or any other state agency that administers a grant
or allocation of state funds to a school district, shall allow an
indirect cost rate that is not less than the indirect cost rate
established by the  state board for each school district,
unless a lower indirect rate is required by law  
department  .
   (b) As used in this section:
   (1) "Direct cost" means a cost that provides measurable, direct
benefits to a particular program of an agency. Direct costs of a
local educational agency include, but are not necessarily limited to,
salaries and benefits of teachers and instructional aides, costs for
purchasing textbooks and instructional supplies, and costs for
providing pupils with counseling, health services, and
transportation.
   (2) "Indirect cost" means the agency-wide, general management cost
of the activities for the direction and control of the agency as a
whole. Indirect costs include, but are not necessarily limited to,
administrative activities necessary for the general operation of the
agency, such as accounting, budgeting, payroll preparation, personnel
services, purchasing, and centralized data processing.
   (3) "Indirect cost rate" means the  ratio of an agency's
indirect costs to its direct costs   indirect cost rate
established by the department for each school district  .