BILL NUMBER: SB 533	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 15, 2012
	AMENDED IN SENATE  APRIL 25, 2011

INTRODUCED BY    Senators   Wright 
   and Correa   Senator 
 Wright 
    (   Principal coauthor:   Assembly Member
  Bradford   ) 
    (   Coauthor:  
Assembly Member  Bill Berryhill   )


                        FEBRUARY 17, 2011

    An act to amend Section 38505 of, and to add Section
38566 to, the Health and Safety Code, relating to air pollution.
  An act relating to the Inglewood Unified School
District, and making an appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 533, as amended, Wright.  California Global Warming
Solutions Act of 2006: State Air Resources Board regulations.
  Inglewood Unified School District: emergency loan.
 
   (1) Existing law provides for emergency apportionments to school
districts subject to specified conditions, including, in certain
circumstances, the repayment of an emergency loan over a period of no
more than 20 years and the appointment by the Superintendent of
Public Instruction of an administrator who would exercise the powers
and responsibilities of the governing board of the school district.
 
   This bill would express the intent of the Legislature to provide
emergency apportionment assistance to the Inglewood Unified School
District, and require the Superintendent to assume all the rights,
duties, and powers of the governing board of the Inglewood Unified
School District and to appoint, in consultation with the Los Angeles
County Superintendent of Schools, a state administrator to act on
behalf of the Superintendent in exercising the Superintendent's
authority over the school district.  
   The bill would continue the authority of the Superintendent and
the state administrator over the Inglewood Unified School District
until certain enumerated conditions are met, including the completion
of assessment and improvement plans for the school district. 

   The bill would require the County Office Fiscal Crisis and
Management Assistance Team (FCMAT) to provide specified assistance
relating to the development of a multiyear financial recovery plan,
the preparation of budget reports, and the recommendation of
activities that could enhance revenue or achieve cost savings. 

   The bill would require the Inglewood Unified School District to
bear 100% of the costs associated with implementing the provisions of
the bill relating to the administration of the emergency
apportionment assistance and the activities of the FCMAT, thereby
imposing a state-mandated local program.  
   The bill would appropriate up to $29,000,000 from the General Fund
to the Superintendent for apportionment as an emergency loan to the
Inglewood Unified School District, and would specify procedures for
repayment of the loan. The bill would authorize the school district
to augment the emergency loan with an additional $26,000,000 of lease
financing, as provided. The bill would authorize the school district
to sell property owned by the school district from September 1,
2012, to June 30, 2015, inclusive, and use the proceeds from the sale
to reduce or retire the emergency loan, and would prohibit the
school district from being eligible for financial hardship assistance
under the Leroy F. Greene School Facilities Act of 1998 from June 1,
2012, to June 30, 2015, inclusive.  
   (2) This bill would make legislative findings and declarations
that the unique circumstances of the Inglewood Unified School
District warrant the enactment of a special statute.  
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emission
reductions.  
   This bill would require the state board to make available to the
public, at the time that the state board adopts a regulation pursuant
to the act, any implementation schedule that is required to comply
with that regulation. If a regulation adopted by the state board
specifically requires a reporting form or a compliance tool, as
defined, the state board would be required to make this information
available to the public on the state board's Internet Web site at
least 60 days prior to the date the information is required for
compliance with the regulation. The bill would require training
specifically required by a regulation to be made available at least
60 days prior to the compliance date for which the training is
required. The bill would authorize the state board to revise a
required implementation schedule, reporting form, or compliance tool
after adoption of a regulation, if the state board makes a specified
modification. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee: yes. State-mandated local program: 
no   yes  .


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Providing a quality education that meets the unique needs of
the pupils of the Inglewood Unified School District is a fundamental
goal that should not be jeopardized.  
   (b) On April 12, 2012, the Los Angeles County Office of Education
notified the Inglewood Unified School District of its budget negative
certification. Negative certification is assigned when a school
district will be unable to meet its financial obligations for the
remainder of the fiscal year or the subsequent fiscal year. In
December 2010 the Los Angeles County Office of Education assigned a
fiscal advisor to monitor the operations of the Inglewood Unified
School District.  
   (c) The budget analysis conducted by the Los Angeles County Office
of Education indicates that the Inglewood Unified School District is
deficit spending, unable to maintain a prudent reserve for economic
uncertainty, will have a negative General Fund balance for the
2012-13 fiscal year, and insufficient reserves for the two subsequent
fiscal years to meet all of its financial obligations.  
   (d) The Inglewood Unified School District is facing fiscal and
cash insolvency as a result of organizational decisionmaking,
overstating average daily attendance, understating California State
Teachers' Retirement System payments, understating certificated
salary expenses, and continued deficit spending.  
   (e) The enrollment of the Inglewood Unified School District is
declining which further exacerbates its fiscal circumstances. 

   (f) The Inglewood Unified School District is projected to run out
of cash to support its routine operations and expenditures at the end
of March 2013, and it will require an emergency appropriation from
the state in order to continue the delivery of educational services
to pupils enrolled in the school district. 
   SEC. 2.    It is the intent of the Legislature to
provide emergency appropriation assistance to the Inglewood Unified
School District, and invoke the provisions of Article 2 (commencing
with Section 41320) of, and Article 2.5 (commencing with Section
41325) of, Chapter 3 of Part 24 of Division 3 of Title 2 of the
Education Code, except as otherwise provided in this act, in order to
restore the school district to fiscal solvency. 
   SEC. 3.    As provided in subdivision (b) of Section
41326 of the Education Code, the Superintendent of Public Instruction
shall assume all legal rights, duties, and powers of the governing
board of the Inglewood Unified School District, and shall appoint a
state administrator, in consultation with the county superintendent
of schools, to act on his or her behalf in carrying out the
requirements of Article 2 (commencing with Section 41320) of, and
Article 2.5 (commencing with Section 41325) of, Chapter 3 of Part 24
of Division 3 of Title 2 of the Education Code. Notwithstanding
subdivision (e) of Section 41326 of the Education Code, the authority
of the Superintendent of Public Instruction and the state
administrator shall continue until all of the following occur: 

   (a) (1) At any time after one complete fiscal year has elapsed
following the school district's acceptance of a loan as described in
subdivision (a) of Section 41326 of the Education Code, the state
administrator determines, and so notifies the Superintendent of
Public Instruction and the county superintendent of schools, that
future compliance by the school district with the recovery plans
approved pursuant to subdivision (b) is probable.  
   (2) The Superintendent of Public Instruction may return power to
the governing board of the school district for any area listed in
subdivision (a) of Section 41327.1 of the Education Code, if
performance under the recovery plan for that area has been
demonstrated to the satisfaction of the Superintendent of Public
Instruction.  
   (b) The Superintendent of Public Instruction has approved all of
the recovery plans referred to in subdivision (a) of Section 41327 of
the Education Code, and the County Office Fiscal Crisis and
Management Assistance Team completes the improvement plans specified
in Section 41327.1 of the Education Code and has completed a minimum
of two reports identifying the school district's progress in
implementing the improvement plans.  
   (c) The state 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.  
   (d) The school district has completed all reports required by the
Superintendent of Public Instruction and the state administrator.
 
   (e) The state administrator certifies that the members of the
school board and school district personnel, as appropriate, have
successfully completed the training specified in subdivision (b) of
Section 7 of this act.  
   (f) The Superintendent of Public Instruction determines that
future compliance by the school district with the recovery plans
approved pursuant to subdivision (b) is probable. 
   SEC. 4.    In addition to the implementation of
subdivision (b) of Section 41325 of the Education Code, it is the
intent of the Legislature that the Superintendent of Public
Instruction, operating through the appointed state administrator, do
all of the following:  
   (a) Work with the staff and governing board of the Inglewood
Unified School District to identify the procedures and programs that
the school district will implement during the 2012-13 school year and
future school years that do all of the following:  
   (1) Significantly raise pupil achievement.  
   (2) Improve pupil attendance.  
   (3) Lower pupil dropout rate.  
   (4) Increase parental involvement.  
   (5) Attract, retain, and train a quality teaching staff. 

   (6) Manage fiscal expenditures in a manner that is consistent with
the current and projected revenues of the school district. 

   (b) Analyze the identified procedures and programs and, where
applicable and appropriate, protect, maintain, and expand them as the
budget of the school district allows. The state administrator shall
report any findings applicable to this section to the Superintendent
of Public Instruction and the education committees of the
Legislature.  
   (c) To the extent allowed by school district finances, maintain,
under the revised program, core educational reforms that will lead to
districtwide improvement of academic achievement, including, but not
necessarily limited to, educational reforms targeting
underperforming and program improvement schools and other reforms
that have demonstrated measurable success. 
   SEC. 5.    (a) The County Office Fiscal Crisis and
Management Assistance Team (FCMAT), with concurrence from the
Superintendent of Public Instruction, shall, with respect to the
Inglewood Unified School District, do all of the following: 

   (1) Provide assistance to the state administrator in the
development of the first annual multiyear financial recovery plan
required under paragraph (2) of subdivision (a) of Section 41327 of
the Education Code.  
   (2) Provide assistance to the state administrator in the
development of the adopted budget and interim reports.  
   (3) Recommend to the Superintendent of Public Instruction any
studies or activities that should be undertaken by the state
administrator to enhance revenue or achieve cost savings.  
   (4) Provide any other assistance as described in Section 42127.8
of the Education Code.  
   (b) The Inglewood Unified School District shall bear 100 percent
of all costs associated with implementing Article 2.5 (commencing
with Section 41325) of Chapter 3 of Part 24 of Division 3 of Title 2
of the Education Code, including the activities of the FCMAT. The
FCMAT's assistance under this section shall continue until the school
district is certified as positive pursuant to the definition in
paragraph (1) of subdivision (a) of Section 42131 of the Education
Code, or until all legal rights, duties, and powers are returned to
the governing board of the school district, whichever comes first.

   SEC. 6.    For purposes of Article 2 (commencing with
Section 41320) of, and Article 2.5 (commencing with Section 41325)
of, Chapter 3 of Part 24 of Division 3 of Title 2 of the Education
Code, the state administrator of the Inglewood Unified School
District is a public school employer within the meaning of the
Educational Employment Relations Act (Chapter 10.7 (commencing with
Section 3540) of Division 4 of Title 1 of the Government Code). 

   SEC. 7.    (a) The Superintendent of Public
Instruction, with respect to the Inglewood Unified School District,
may consider the comprehensive assessment conducted by the County
Office Fiscal Crisis and Management Assistance Team (FCMAT) pursuant
to Section 41327.1 of the Education Code to meet the requirements for
the financial management review and recovery plan identified in
paragraph (1) of subdivision (a) of Section 41327.1 of the Education
Code.  
   (b) The improvement plan for personnel management specified in
paragraph (3) of subdivision (a) of Section 41327.1 of the Education
Code shall include, but not necessarily be limited to, the following
training:  
   (1) Training for members of the governing board of the Inglewood
Unified School District in the subjects about which members of the
governing board need to have knowledge to effectively discharge their
duties as school board members, with specific training in the
fiduciary responsibilities of a governing board member and in the
financial management practices necessary for governing board members
to effectively discharge their duty to oversee and monitor the
budget, accounting practices, revenues, and expenditures of the
school district. At a minimum, each school board member shall
participate in the Masters In Governance training provided by the
California School Boards Association. The cost for this training
shall be borne by the school district.  
   (2) Training for all personnel with management, policymaking, and
advisory responsibilities who report or would report directly to the
state administrator, to ensure they have the knowledge and skills to
effectively administer their areas of responsibility consistent with
sound fiscal practices and the budgetary requirements of the school
district.  
   (c) Notwithstanding the timelines in subdivision (d) of Section
41327.1 of the Education Code, after the first written status report,
FCMAT shall file subsequent reports annually thereafter as
determined by the Superintendent of Public Instruction.
   SEC. 8.    (a) The sum of up to twenty-nine million
dollars ($29,000,000) is hereby appropriated from the General Fund to
the Superintendent of Public Instruction for apportionment to the
Inglewood Unified School District for the purpose of an emergency
loan. In order to qualify for the loan, the school district shall
comply with Article 2 (commencing with Section 41320) of, and Article
2.5 (commencing with Section 41325) of, Chapter 3 of Part 24 of
Division 3 of Title 2 of the Education Code to the extent those
provisions are consistent with the conditions specified in this act.
 
   (b) Funds may be disbursed from the proceeds of the loan only if
the state administrator and the County Office Fiscal Crisis and
Management Assistance Team jointly determine that the disbursement is
necessary to support the immediate cashflow needs of the school
district.  
   (c) Based on the needs of the school district to meet its
obligations, the Superintendent of Public Instruction may direct the
Controller to disburse, on a monthly basis, specific amounts of the
emergency loan before the approval of all of the conditions
established by this act.  
   (d) For the fiscal year in which the apportionments are disbursed
and each year thereafter, the Controller, or his or her designee,
shall cause an audit in lieu of the audit required by Section 41020
of the Education Code to be conducted of the books and accounts of
the school district. At the discretion of the Controller, the audit
may be conducted by the Controller, his or her designee, or an
auditor selected by the school district and approved by the
Controller. The costs of these audits shall be borne by the school
district. The audits shall be required until the Controller
determines, in consultation with the Superintendent of Public
Instruction, that the school district is financially solvent, but in
no event earlier than one year following the implementation of the
plan or later than the time the apportionment made is repaid,
including interest. 
   SEC. 9.    (a) The Inglewood Unified School District
shall repay the emergency loan incurred pursuant to Section 8 of this
act as a straight line loan amortized over a 20-year term. This
amount shall be repaid by the school district, plus interest
calculated at a rate equal to the rate earned by the Pooled Money
Investment Account on the date this act becomes effective, for a
period not to exceed 20 years.  
   (b) If a required payment is not made within 60 days after a
scheduled date, the Controller shall pay the defaulted loan payment
of principal and interest by withholding that amount from the next
available payment that would otherwise be made to the county
treasurer on behalf of the school district pursuant to Section 14041
of the Education Code. However, subject to the approval of the
Department of Finance, the amount withheld may be in monthly amounts
as determined by an agreement between the Inglewood Unified School
District and the Controller during the period beginning with the next
available apportionment through the month preceding the next
scheduled payment.  
   (c) The Director of Finance may amend the payment schedule set
forth in subdivision (a) if the director concludes that the amendment
is warranted and is in the best interests of both the state and the
Inglewood Unified School District education program. Upon that
determination, the director shall notify the Joint Legislative Budget
Committee that the payment schedule will be changed on the date that
is 90 days from the date of notification if the Legislature is in
session. If the 90-day period ends during a recess of the Legislature
or while the Legislature is not in session, the 90-day period shall
be extended until the Legislature reconvenes. Amendments to the
payment schedule shall defer the unpaid portion of a repayment of the
earliest fiscal year in which no other repayment is scheduled.
Interest shall accrue on the unpaid portion of a repayment from the
scheduled due date until the time the payment is actually made. The
interest charge shall be the rate equal to the daily investment rate
of the Pooled Money Investment Account on the date the pay schedule
is changed.  
   (d) The school district may repay its loan obligation without
incurring any prepayment penalties. 
   SEC. 10.    The Inglewood Unified School District
shall enter into a lease financing with the California Infrastructure
and Economic Development Bank pursuant to Section 41329.52 of the
Education Code for the purpose of financing the emergency
apportionment, including a repayment to the General Fund of the
amount advanced pursuant to Section 8 of this act. In addition to the
amount advanced pursuant to Section 8 of this act, the school
district may augment the emergency loan with an additional twenty-six
million dollars ($26,000,000) of lease financing in order to
increase the emergency loan to a total of no more than fifty-five
million dollars ($55,000,000) and, as a result, increase the amount
of lease financing by the bank in accordance with subdivision (c) of
Section 41329.52 of the Education Code. 
   SEC. 11.    (a) Notwithstanding Sections 17456,
17457, 17462, and 17463 of the Education Code, or any other law, from
September 1, 2012, to June 30, 2015, inclusive, the Inglewood
Unified School District may sell property owned by the school
district and use the proceeds from the sale to reduce or retire the
emergency loan provided in Section 8 of this act. The sale only of
property pursuant to this subdivision is not subject to Section 17459
or 17464 of the Education Code.  
   (b) Notwithstanding any other law, from June 1, 2012, to June 30,
2015, inclusive, the Inglewood Unified School District is not
eligible for financial hardship assistance pursuant to Article 8
(commencing with Section 17075.10) of Chapter 12.5 of Part 10 of
Division 1 of Title 1 of the Education Code. 
   SEC. 12.    The Los Angeles County Superintendent of
Schools maintains the responsibility to superintend school districts
under his or her jurisdiction. This act does not remove any statutory
or regulatory rights, duties, or obligations from the county
superintendent of schools. 
   SEC. 13.    The Legislature finds and declares that,
due to unique circumstances relating to the fiscal emergency in the
Inglewood Unified School District, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution. 
   SEC. 14.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district are the result of a program for which
legislative authority was requested by that local agency or school
district, within the meaning of Section 17556 of the Government Code
and Section 6 of Article XIII B of the California Constitution. 

  SECTION 1.    Section 38505 of the Health and
Safety Code is amended to read:
   38505.  For the purposes of this division, the following terms
have the following meanings:
   (a) "Allowance" means an authorization to emit, during a specified
year, up to one ton of carbon dioxide equivalent.
   (b) "Alternative compliance mechanism" means an action undertaken
by a greenhouse gas emission source that achieves the equivalent
reduction of greenhouse gas emissions over the same time period as a
direct emission reduction, and that is approved by the state board.
"Alternative compliance mechanism" includes, but is not limited to, a
flexible compliance schedule, alternative control technology, a
process change, or a product substitution.
   (c) "Carbon dioxide equivalent" means the amount of carbon dioxide
by weight that would produce the same global warming impact as a
given weight of another greenhouse gas, based on the best available
science, including from the Intergovernmental Panel on Climate
Change.
   (d) "Compliance tool" means any of the following items specified
in a regulation for compliance: (1) computer models, (2) databases,
(3) algorithms, (4) formulas, (5) forms, (6) software, (7) labels,
(8) protocols, and (9) data required for compliance.
   (e) "Cost-effective" or "cost-effectiveness" means the cost per
unit of reduced emissions of greenhouse gases adjusted for its global
warming potential.
   (f) "Direct emission reduction" means a greenhouse gas emission
reduction action made by a greenhouse gas emission source at that
source.
   (g) "Emissions reduction measure" means a program, measure,
standard, or alternative compliance mechanism authorized pursuant to
this division, applicable to sources or categories of sources, that
is designed to reduce emissions of greenhouse gases.
   (h) "Greenhouse gas" or "greenhouse gases" includes all of the
following gases:
   (1) Carbon dioxide.
   (2) Methane.
   (3) Nitrous oxide.
   (4) Hydrofluorocarbons.
   (5) Perfluorocarbons.
   (6) Sulfur hexafluoride.
   (7) Nitrogen trifluoride.
   (i) "Greenhouse gas emissions limit" means an authorization,
during a specified year, to emit up to a level of greenhouse gases
specified by the state board, expressed in tons of carbon dioxide
equivalents.
   (j) "Greenhouse gas emission source" or "source" means any source,
or category of sources, of greenhouse gas emissions whose emissions
are at a level of significance, as determined by the state board,
that its participation in the program established under this division
will enable the state board to effectively reduce greenhouse gas
emissions and monitor compliance with the statewide greenhouse gas
emissions limit.
   (k) "Leakage" means a reduction in emissions of greenhouse gases
within the state that is offset by an increase in emissions of
greenhouse gases outside the state.
   (l) "Market-based compliance mechanism" means either of the
following:
   (1) A system of market-based declining annual aggregate emissions
limitations for sources or categories of sources that emit greenhouse
gases.
   (2) Greenhouse gas emissions exchanges, banking, credits, and
other transactions, governed by rules and protocols established by
the state board, that result in the same greenhouse gas emission
reduction, over the same time period, as direct compliance with a
greenhouse gas emission limit or emission reduction measure adopted
by the state board pursuant to this division.
   (m) "State board" means the State Air Resources Board.
   (n) "Statewide greenhouse gas emissions" means the total annual
emissions of greenhouse gases in the state, including all emissions
of greenhouse gases from the generation of electricity delivered to
and consumed in California, accounting for transmission and
distribution line losses, whether the electricity is generated in
state or imported. Statewide emissions shall be expressed in tons of
carbon dioxide equivalents.
   (o) "Statewide greenhouse gas emissions limit" or "statewide
emissions limit" means the maximum allowable level of statewide
greenhouse gas emissions in 2020, as determined by the state board
pursuant to Part 3 (commencing with Section 38550). 

  SEC. 2.    Section 38566 is added to the Health
and Safety Code, to read:
   38566.  (a) (1) The state board shall make available to the
public, at the time the state board adopts a regulation pursuant to
this division, any implementation schedule that is required to comply
with the regulation.
   (2) If a regulation adopted pursuant to this division specifically
requires a reporting form or compliance tool, the state board shall
make the required reporting form or compliance tool available to the
public on the state board's Internet Web site at least 60 days prior
to the date on which the reporting form or compliance tool is
required for compliance with the regulation.
   (3) Training specifically required by a regulation adopted
pursuant to this division shall be made available at least 60 days
prior to the compliance date for which the training is required.
   (b) The state board may revise an implementation schedule,
reporting form, or compliance tool required to be made available to
the public pursuant to subdivision (a) after it adopts a regulation,
if the state board modifies the compliance deadline for the revised
regulatory requirement to allow regulated entities at least 60 days
to comply.
   (c) This section does not excuse compliance from a regulation
adopted before January 1, 2012, that does not meet the requirements
of subdivision (a), or require the state board to readopt or amend a
regulation approved by the state board before January 1, 2012.