Amended in Senate June 12, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1463


Introduced by Committee on Budget (Skinner (Chair), Bloom, Campos, Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

January 9, 2014


begin deleteAn act relating to the Budget Act of 2014. end deletebegin insertAn act to amend Sections 8206.1, 8236, 8239, 8261, 8263.1, 8265, 8273.1, 8278.3, 8447, 8450, 8499.5, 14041.5, 14041.6, 17080, 24214, 41203.1, 41207.3, 42127, 44374.5, 47644, 48000, 49430.5, 51745.6, 51747, 51747.5, 52055.770, 56836.06, 56836.07, 56836.08, 56836.095, 56836.11, 56836.15, and 60640 of, to amend the heading of Article 4 (commencing with Section 60640) of Chapter 5 of Part 33 of Division 4 of Title 2 of, to amend, repeal, and add Section 47612.1 of, to add Sections 8203.1, 44235.2, 51749.5, and 57149.6 to, to add Chapter 16 (commencing with Section 53010) to Part 28 of Division 4 of Title 2 of, to add and repeal Sections 8363.1, 42127.01, and 41841.9 of, to repeal Sections 14035 and 60640.2 of, and to repeal and add Section 8273.2 of, the Education Code, to amend Section 17581.6 of, and to add Section 17581.8 to, the Government Code, and to amend Item 6110-106-0001 of Section 2.00 of the Budget Act of 2013, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1463, as amended, Committee on Budget. begin deleteBudget Act of 2014. end deletebegin insertEducation finance: education omnibus trailer bill.end insert

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(1) Existing law, the Child Care and Development Services Act, requires the State Department of Education to develop an expenditure plan, known as the Child Care and Development Fund (CCDF) Plan, that sets forth the final priorities for child care, as required by federal law. The act requires the department, before the May budget revision, to provide the revised CCDF Plan to the chairs of the committees of each house of the Legislature that consider appropriations, and to provide a report on the plan to the committees in each house of the Legislature that consider the annual Budget Act appropriation.

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The bill would instead require, by April 1 of the year that the CCDF Plan is due, the department to provide the revised plan and a description of any changes to the earlier draft to the Director of Finance and the chairs of the fiscal committees of the Legislature. The bill would require the department, after the CCDF Plan is federally approved, to provide a copy of the final plan to the Department of Finance and the fiscal committees of the Legislature and a description of any changes made since submission for review. The bill would also require the department, if the annual Budget Act requires changes to the approved CCDF Plan, to submit an amended plan to the United States Department of Education.

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(2) The Child Care and Development Services Act requires the Superintendent of Public Instruction to develop standards for the implementation of quality programs and requires indicators of quality to include, among other things, a physical environment that is safe and appropriate to the ages of the children and that meets applicable licensing standards.

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This bill would require the Superintendent to administer an early learning quality rating and improvement system (QRIS) block grant that would be allocated to local consortia, as defined, for support of local early learning quality rating and improvement systems that increase the number of low-income children in high-quality preschool programs that prepare those children for success in school and life. The bill would require the QRIS block grant to build on preexisting local consortia and other QRIS work. The bill would require local consortia to take certain actions in order to be eligible for a QRIS block grant, and would require the Superintendent, in consultation with the executive director of the State Board of Education, to allocate to local consortia who satisfy these eligibility requirements QRIS block grant funds based on the number of California state preschool program slots within the county or region. The bill would require local consortia receiving QRIS block grant funds to allocate those funds to contracting agencies of the California state preschool program, including certain family child care home education networks, as specified.

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(3) Existing law, in the award of new funding for the expansion of the California state preschool program that is appropriated for that purpose in any fiscal year, requires an application for those expansion funds to include an estimate of the number of 4-year-old and 3-year-old children that the applicant plans to serve in the following fiscal year with those expansion funds. Existing law requires the Superintendent of Public Instruction, in awarding the contracts for expansion, to take into account certain criteria and to give priority to applicant agencies that, in expending the expansion funds, will be serving the highest percentage of 4-year-old children.

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This bill, commencing June 15, 2015, would require the Superintendent to consider different criteria and data in awarding expansion funds and would require the Superintendent to give priority to applicant agencies that would provide the greatest progress toward achieving access to full-day, full-year services for all income eligible four-year-olds. The bill would specify that a family child care home education network is eligible to apply for expansion funding.

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(4) Existing law requires the Superintendent of Public Instruction to adopt rules and regulations pursuant to the Child Care and Development Services Act that include provisions that, among other things, set forth standards for State Department of Education site visits to contracting agencies, as specified.

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This bill would require the Superintendent to adopt rules and regulations that authorize the department to develop a process that requires every contracting agency to recompete for continued funding no less frequently than every 5 years.

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(5) Existing law provides for income eligibility standards for families to receive child care and development services. Existing law provides that “income eligible,” for purposes of the Child Care and Development Services Act, means that a family’s adjusted monthly income is at or below 70% of the state median income, adjusted for family size, and adjusted annually. Notwithstanding this provision, existing law sets the income eligibility limits for the 2013-14 fiscal year at 70% of the state median income that was in use for the 2007-08 fiscal year, adjusted for family size.

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This bill would set the income eligibility limits for the 2014-15 fiscal year at 70% of the state median income that was in use for the 2007-08 fiscal year, adjusted for family size.

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(6) Existing law requires the Superintendent of Public Instruction to implement a plan that establishes reasonable standards and assigned reimbursement rates, and requires the standard reimbursement rate to be $3,523 per unit of average daily enrollment for a 250-day year, increased by the cost-of-living adjustment granted by the Legislature beginning July 1, 1980. Existing law requires the Department of Finance and the Department of General Services to approve or disapprove annual state subsidized child care and development program contract funding terms and conditions, including both family fee schedules and regional market rate schedules that are required to be adhered to by contract. Existing law requires the State Department of Education to implement the regional market rate schedules based upon the county aggregates, as determined by the Regional Market survey conducted in 2005.

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This bill would require the standard reimbursement rate to be $9,024.75 per unit of average daily enrollment for a 250-day year, and, commencing with the 2015-16 fiscal year, would require that rate to be increased by the cost-of-living adjustment granted by the Legislature annually. The bill, commencing January 1, 2015, would require the State Department of Education to implement the regional market rate schedule based upon the county aggregates, as determined by the Regional Market survey conducted in 2009 and would require the regional market rate schedule to be reduced by 13%, except as specified.

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(7) Existing law requires the Superintendent of Public Instruction to establish a fee schedule for families using preschool and child care and development services, requires family fees to be assessed at initial enrollment and reassessed at update of certification or recertification, and authorizes certain families to be exempt from the family fees. Existing law requires the family fee schedule that was in effect in the 2012-13 fiscal year to remain in effect for the 2013-14 fiscal year until the first day of a month that is at least 60 days after the new family fee schedule has been approved by the Department of Finance and adopted.

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This bill would prohibit fees from being assessed on income-eligible families for their children to attend a part-day California state preschool program. The bill, commencing with the 2014-15 fiscal year, would require the adopted family fee schedule that was in effect on July 1, 2014, to remain in effect.

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(8) Existing law establishes the Child Care Facilities Revolving Fund to provide funding for the renovation, repair, or improvement of an existing building to make the building suitable for licensure for child care and development services, and for the purchase of new relocatable child care facilities for lease to school districts and contracting agencies that provide child care and development services, pursuant to the Child Care and Development Services Act.

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This bill would make funding from the Child Care Facilities Revolving Fund available to local educational agencies and contracting agencies that provide child care and development services, pursuant to the Child Care and Development Services Act. The bill would require any augmentations to the Child Care Facilities Revolving Fund made by the Budget Act of 2014 to be used for renovation or repair of existing local educational agency facilities or new relocatable child care facilities for lease to local educational agencies that provide California state preschool program services, as specified.

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(9) Existing law requires the Commission on Teacher Credentialing to establish the requirements for the issuance and renewal of permits authorizing (A) service in the care, development, and instruction of children in child care and development programs, and (B) supervision of a child care and development program.

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This bill, on or before July 1, 2016, would require the Commission on Teacher Credentialing to review, and update if appropriate, the conditions for issuance or renewal of the permits described above.

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(10) Existing law authorizes a child development contractor to retain a reserve fund balance equal to 5% of the sum of the maximum reimbursable amount of all contracts to which the contractor is a party, or $2,000, whichever is greater.

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This bill would authorize a California state preschool program contracting agency to retain in the reserve fund an additional 10% of the sum of the maximum reimbursable amount of all preschool contracts to which the contracting agency is a party for purposes of professional development for California state preschool program staff.

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(11) Existing law establishes the county school service fund contingency account in the General Fund, which is credited with $100,000 each fiscal year to reimburse county superintendents of schools for certain expenses, as specified.

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This bill would repeal that provision.

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(12) Existing law establishes the public elementary and secondary schools and the system of public community colleges in this state, and provides for a system for their funding. Provisions of the California Constitution require that a minimum amount of aggregate funding, calculated as specified, be allocated to school districts and community college districts unless this requirement is suspended, as provided. Pursuant to existing statutes, school districts, community college districts, and other local educational agencies receive a portion of their funding through apportionments of state funds made in accordance with payment schedules. Existing law requires the Controller to draw warrants on the State Treasury in each month of each year in specified amounts for purposes of funding school districts, county superintendents of schools, and community college districts. Existing law defers the drawing of those warrants, as specified.

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This bill would delete authorizations for deferrals for school districts and county offices of education beyond the 2014-15 fiscal year, and would, for purposes of calculations required by the California Constitution, provide that specified amounts of warrants drawn in July 2014 shall be included in the total allocations to school districts and community college districts for the 2012-13 and 2013-14 fiscal years, as specified. For the 2014-15 fiscal year, the bill would provide that warrants for the principal apportionments for the month of June in the amount $897,184,000 instead shall be drawn in July of the same calendar, but would authorize those deferrals, as well as specified deferrals for apportionments to the California Community Colleges, to not be made if the Director of Finance, on or before May 14, 2015, determines that the total allocations required by the California Constitution for the 2013-14 and 2014-15 fiscal years, as estimated by the Director of Finance on May 13, 2015, exceed the estimate of the required allocations as determined at the time of, and as set forth in, the 2014 Budget Act.

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(13) Existing law requires, whenever moneys transferred to the General Fund each year from moneys deposited into the Public School Building Loan Fund and the State School Building Aid Fund exceed the amounts required to reimburse the General Fund on account of principal and interest due and payable for that fiscal year on all school building aid bonds outstanding against the state, an amount equal to such excess to be appropriated from the General Fund for purposes of the Leroy F. Greene State School Building Lease-Purchase Law of 1976. Existing law establishes the State School Deferred Maintenance Fund which is continuously appropriated for the purposes for which it is established.

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This bill would instead require the excess amount to be appropriated from the General Fund for purposes of the School Facilities Emergency Repair Account. The bill would also eliminate the State School Deferred Maintenance Fund.

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(14) Existing law, the Teachers’ Retirement Law, establishes the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program. Existing law limits the amount of postretirement compensation that may be earned in specific types of employment by a retired member of the Defined Benefit Program in any one school year without a reduction in retirement allowance. Existing law exempts from the limit compensation paid to a retired member who has returned to work after the date of retirement as an appointed trustee, fiscal advisor, fiscal expert, receiver, or special trustee, as specified. Existing law, as of July 1, 2014, revises these provisions by, among other things, deleting the exemption.

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This bill would delay the revisions until July 1, 2017.

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(15) Existing law requires, for the 1990-91 fiscal year and each fiscal year thereafter, that moneys to be applied by the state for the support of school districts, community college districts, and direct elementary and secondary level instructional services provided by the state be distributed in accordance with certain calculations governing the proration of those moneys among the 3 segments of public education. Existing law makes that provision inapplicable to the 1992-93 to 2013-14 fiscal years, inclusive.

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This bill would also make that provision inapplicable to the 2014-15 fiscal year.

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(16) Existing law declares that the minimum state educational funding obligation for school districts and community college districts for the 2006-07 fiscal year is $55,251,266,000, with an outstanding balance of $211,533,000. Existing law, commencing with the 2014-15 fiscal year, requires the Legislature to appropriate the outstanding balance, as specified.

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This bill would delay that requirement until the 2015-16 fiscal year.

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(17) Existing law authorizes a school district or county superintendent of schools to claim average daily attendance for purposes of apportionments from the adult education fund for schools or classes maintained for adults in correctional facilities if those classes meet specified requirements.

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This bill would, for the 2014-15 fiscal year only, apply these provisions to a charter school whose charter was granted by its chartering authority after July 1, 2014.

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(18) Existing law authorizes a school district or charter school to maintain a transitional kindergarten program and defines transitional kindergarten as the first year of a 2-year kindergarten program that uses a modified kindergarten curriculum that is age and developmentally appropriate.

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This bill would state the intent of the Legislature that the transitional kindergarten curriculum be aligned to the California Preschool Learning Foundations developed by the State Department of Education. The bill, as a condition of receipt of apportionment for pupils in a transitional kindergarten program, would require a school district or charter school to ensure that teachers assigned to a transitional kindergarten class after July 1, 2015, be credentialed and, by August 1, 2020, have a minimum number of units in early childhood education or childhood development, comparable experience in a preschool setting, or a child development permit issued by the Commission on Teacher Credentialing.

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(19) Existing law requires the Superintendent of Public Instruction, the Controller, and the Director of Finance to develop standards and criteria, including, among others, methods of projection of reserves and fund balance, to be reviewed and adopted by the State Board of Education, and to be used by local educational agencies in the development of annual budgets and the management of subsequent expenditures from that budget. Existing law, on or before July 1 of each year, requires the governing board of each school district to hold a public hearing on, and adopt, a budget for the subsequent fiscal year, and to file the adopted budget with the county superintendent of schools, as specified. Existing law requires the county superintendent of schools to examine the adopted budget, as specified, to make certain determinations related to the adopted budget, and to approve, conditionally approve, or disapprove the adopted budget for each school district. Existing law, on or before September 8, and after a public hearing regarding the proposed revisions to the budget, as specified, requires the governing board of the school district to revise the adopted budget to reflect certain fiscal changes, as provided, and to file the revised budget with the county superintendent of schools.

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This bill would, commencing with budgets adopted by a school district for the 2015-16 fiscal year, require a school district that proposes to adopt or revise a budget that includes a combined assigned or unassigned ending fund balance that is in excess of the minimum recommended reserve for economic uncertainties, as established by the state board, to provide at a public hearing, among other things, a statement of reasons that substantiates the need for the balance, and would require the county superintendent of schools, when making the required determinations, to also determine whether a school district’s adopted or revised budget includes a such a balance. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program.

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This bill would, in a fiscal year immediately after which a transfer is made into the Public School System Stabilization Account, which would be created by an Assembly Constitutional Amendment, prohibit a school district’s adopted or revised budget from containing a combined assigned or unassigned ending fund balance that is in excess of either two or three times the minimum recommended reserve for economic uncertainties, as established by the state board, depending on units of average daily attendance for the school district. The bill would authorize the county superintendent of schools to waive the prohibition, pursuant to specified conditions, for up to two consecutive fiscal years within a three-year period if the school district provides documentation indicating that extraordinary fiscal circumstances substantiates the need for the balance. The bill would make these provisions operative contingent on the voter approval of a specified Assembly Constitutional Amendment at the November 4, 2014, statewide general election.

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(20) Existing law establishes the Teacher Credentials Fund, requires all fees levied and collected by the Commission on Teacher Credentialing to be deposited in the fund, and prohibits them from being transferred to any other fund. Existing law also establishes the Test Development and Administration Account in the Teacher Credentials Fund, and requires all fees collected by the commission for tests, examinations, or assessments to be deposited in the account.

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This bill would, if, in any month there are insufficient moneys in the Teacher Credentials Fund to satisfy monthly payroll obligations and scheduled claims and there are moneys in the Test Development and Administration Account not required to meet a demand that has accrued or may accrue against it, require the Controller to transfer moneys from the account to the fund to the extent necessary to meet the immediate obligations of the fund. The bill would provide for the repayment of the transfer, as specified.

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(21) Existing law establishes the Commission on Teacher Credentialing for, among other purposes, the establishment of professional standards, assessments, and examinations for entry and advancement in the teaching profession. Existing law authorizes the commission to charge a fee to applicable local educational agencies and institutions of higher education to recover the standard costs of reviewing new educator preparation programs and specified accreditation activities, as provided.

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This bill would instead authorize the commission to charge fees to sponsors of educator preparation programs to cover the cost of reviewing new and existing educator preparation programs and specified accreditation activities, as provided.

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(22) The Charter Schools Act of 1992 requires that a pupil over 19 years of age be continuously enrolled in public school and make satisfactory progress towards award of a high school diploma in order to remain eligible for generating charter school apportionments. The act exempts charter school programs that provide instruction exclusively in partnership with any of several specified career preparation programs from those requirements.

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This bill would, for the 2014-15 fiscal year, make that exemption applicable to a charter school whose charter was granted by its chartering authority before July 1, 2014, and that provides instruction exclusively in partnership with any of the specified career preparation programs.

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(23) Existing law sets the reimbursement a school receives for free and reduced-price meals sold or served to pupils in elementary, middle, or high schools at $0.2229 per meal, and, for meals served in child care centers and homes, at $0.1660 per meal.

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This bill would set the reimbursement amount for schools at $0.2248 per meal, and, for meals served in child care centers and homes, at $0.1674 per meal.

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(24) Existing law authorizes the governing board of a school district or a county office of education to offer independent study to meet the educational needs of pupils in accordance with prescribed criteria. Existing law requires a written agreement for each independent study pupil, not to exceed one semester or 12 year for a school on a year-round calendar, to be signed by prescribed individuals, to be maintained on file.

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This bill would instead require that the signed written agreement not exceed one school year, and would allow the signed written agreement to be maintained on file electronically. The bill would, notwithstanding any other law, and commencing with the 2015-16 school year, authorize a school district, county office of education, or charter school to offer independent study courses to pupils enrolled in kindergarten and grades 1 to 12, inclusive, in accordance with prescribed conditions, including, among others, that the courses be taught under the general supervision of certificated employees who hold the appropriate subject matter credential, that courses are annually certified, by school district, charter school, or county office of education governing board or body resolution, to be of the same rigor and educational quality as equivalent classroom-based courses, and that certificated employees and each pupil shall communicate in-person, by telephone, or by any other live visual or audio connection no less than twice per calendar month to assess whether each pupil is making satisfactory educational progress. The bill would also require that a signed learning agreement, as specified, be completed and on file. The bill would prohibit pupils from being required to enroll in the independent study courses.

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(25) Existing law requires the ratio of average daily attendance for independent study pupils 18 years of age or less to full-time equivalent certificated employees responsible for independent study to not exceed a specified ratio. Existing law authorizes school districts and county offices of education to claim apportionment credit for independent study only to the extent of the time value of pupil work product, as personally judged in each instance by a certificated teacher.

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This bill would specify the computation of average daily attendance for the independent study courses described above. The bill would prohibit school districts, charter schools, and county offices of education from having to sign and date pupil work products when assessing their time value of pupil work products for apportionment purposes. The bill would also revise the pupil-to-teacher ratios by grade span, as specified.

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(26) Existing law, the Quality Education Investment Act of 2006, among other things, effectuates the intent of the Legislature to implement the terms of the proposed settlement agreement of a specified legal action. The act appropriates specified funds for these purposes.

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This bill would specify previously undetermined appropriations made pursuant to these provisions.

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(27) Existing law provides for the allocation of funds appropriated by the Budget Act of 2013 for the establishment of the California Career Pathways Trust, and requires these funds to be apportioned to school districts, county superintendents of schools, charter schools, and community colleges for career pathways programs that accomplish specified objectives.

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This bill would establish the California Career Pathways Trust, and would require the State Department of Education, contingent upon appropriation in the annual Budget Act, to administer the California Career Pathways Trust as a competitive grant program for kindergarten to grade 14, inclusive. The bill would require grant recipients to fulfill specified requirements and conditions, and would impose restrictions on the use of funds, including prohibiting the use of funds to supplant other funds from state, federal, or other sources, as specified. The bill would require the Superintendent of Public Instruction to consider specified priorities when approving an application for funds.

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(28) Existing law establishes the Measurement of Academic Performance and Progress (MAPP), commencing with the 2013-14 school year, for the assessment of certain elementary and secondary pupils, as provided. As part of MAPP, existing law requires the State Department of Education to make available to local educational agencies a primary language assessment aligned to the English language arts standards adopted by the State Board of Education for assessing pupils who are enrolled in a dual language immersion program and who are either nonlimited English proficient or redesignated English proficient, as provided. Existing law also authorizes the governing board of a school district to administer a primary language assessment aligned to the English language arts standards adopted by the state board for assessing pupils identified as limited English proficient who are enrolled in any of grades 2 to 11, inclusive, and who either receives instruction in his or her primary language or has been enrolled in a school in the United States for 12 months, as provided. Existing law allocates the costs associated with administration of the assessments, as specified.

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This bill would change the name of the MAPP to the California Assessment of Student Performance and Progress (CAASPP). The bill would instead authorize a local educational agency to administer, as part of CAASPP, the primary language assessment to pupils identified as limited English proficient and who are enrolled in any of grades 2 to 11, inclusive, until a subsequent primary language assessment aligned to the common core standards in English language arts adopted by the state board is developed, as provided. The bill would, subject to the approval of the state board, authorize the department to make available to local educational agencies a primary language assessment that is aligned to the English language arts standards adopted by the state board for assessing pupils who are enrolled in a dual language immersion program and who are either nonlimited English proficient or redesignated English proficient until as provided. The bill would revise the allocation of costs associated with the administration of the assessments, as specified.

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(29) Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, including a school district, the state is required to provide a subvention of funds to reimburse the local government, with specified exceptions. Existing law requires certain funds appropriated in the annual Budget Act for reimbursement of the cost of a new program or increased level of service of an existing program mandated by statute or executive order to be available as a block grant to school districts, charter schools, and county offices of education, to support specified state-mandated local programs. Existing law provides that a school district, charter school, or county office of education that submits a letter of intent to the Superintendent of Public Instruction and receives this block grant funding is not eligible to submit a claim for reimbursement for those specified mandated programs for the fiscal year for which the block grant funding is received.

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This bill would revise the list of programs that are authorized for block grant funding in lieu of program-specific reimbursement.

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(30) This bill would appropriate $287,149,000 from the General Fund to the Superintendent of Public Instruction for allocation to school districts, county offices of education, and charter schools, and would appropriate $49,500,000 from the General Fund to the Chancellor of the California Community Colleges for allocation to community college districts. The bill would require any allocations made to first satisfy any outstanding claims for reimbursement of state-mandated local program costs, and would authorize the Controller to audit any claims and reduce any amounts owed, as provided. The bill would authorize any funds received to be expended for any one-time purpose, but would state Legislature’s intent that school districts, county offices of education, and charter schools use the funds for professional development, instructional materials, technology infrastructure, and any other investments necessary to support implementation of the common core standards in English language arts and mathematics, the implementation of English language development standards, and the implementation of the Next Generation Science standards.

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(31) This bill would require that the funds appropriated pursuant to a designated item of the Budget Act of 2013 to the State Department of Education for support of the California Local Control Accountability Support Network be available for encumbrance until June 30, 2015.

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(32) A certain item of the Budget Act of 2013 appropriated $381,000,000 to the State Department of Education for allocation by the Superintendent of Public Instruction to school districts, county offices of education, state special schools, and charter schools for specified purposes.

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This bill would reappropriate the balance of those appropriations to the department, for the same purposes, and would provide that those funds would be available for encumbrance until June 30, 2018.

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(33) This bill would provide that, of the amount allocated in a specified schedule of the Budget Acts of 2012 and 2013 for special education instruction, $32,806,000 and $46,943,000, respectively, would be provided to fund the 2010-11 fiscal year maintenance of effort in the special education program.

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(34) This bill would require an amount to be determined by the Director of Finance to be appropriated, on or before June 30, 2015, from the General Fund to the Superintendent of Public Instruction in the event that specified revenues distributed to local educational agencies for special education programs are less than the estimated amount reflected in the Budget Act of 2014.

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(35) This bill would make conforming changes, delete obsolete provisions, correct cross-references, and make other nonsubstantive changes.

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(36) 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.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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(37) Funds appropriated by this bill would be applied toward the minimum funding requirements for school districts and community college districts imposed by Section 8 of Article XVI of the California Constitution.

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(38) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P15   1begin insert

begin insertSECTION 1.end insert  

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(a) The Legislature finds and declares that quality
2early learning and care for children from infancy to five years of
3age is a sound and strategic investment to narrow achievement
4gaps that are present well before children enter kindergarten.

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5(b) It is the intent of the state to ensure a fair start to all
6low-income children by providing quality preschool opportunities
7for all low-income children whose families wish to enroll their
8children. It is further the intent of the state to provide all
9low-income four-year-old children from working families with
10full-day, full-year early education and care.

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11begin insert

begin insertSEC. 2.end insert  

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begin insertSection 8203.1 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
12read:end insert

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13

begin insert8203.1.end insert  

(a) The Superintendent shall administer a QRIS block
14grant, pursuant to an appropriation made for that purpose in the
15annual Budget Act, to be allocated to local consortia for support
16of local early learning quality rating and improvement systems
17that increase the number of low-income children in high-quality
18preschool programs that prepare those children for success in
19school and life.

20(b) (1) For purposes of this section, “early learning quality
21rating and improvement system” or “QRIS” is defined as a locally
22determined system for continuous quality improvement based on
23a tiered rating structure with progressively higher quality
24standards for each tier that provides supports and incentives for
25programs, teachers, and administrators to reach higher levels of
26quality, monitors and evaluates the impacts on child outcomes,
27and disseminates information to parents and the public about
28program quality.

29(2) For purposes of this section, “local consortium” is defined
30as a local or regional entity, administered by a lead agency, that
31convenes a planning body that designs and implements a QRIS. A
32local consortium shall include representatives from organizations
33including, but not limited to, all of the following:

P16   1(A) Local educational agencies.

2(B) First 5 county commissions.

3(C) Local postsecondary educational institutions.

4(D) Local child care planning councils.

5(E) Local resource and referral agencies.

6(F) Other local agencies, including nonprofit organizations,
7that provide services to children from birth to five years of age,
8inclusive.

9(3) For purposes of this section, “quality continuum framework”
10means the tiered rating matrix created and adopted by a local
11consortium for purposes of implementing a QRIS. The tiered rating
12matrix shall include three common tiers shared by all participating
13local consortia. Changes to the common tiers shall be approved
14and adopted by all participating local consortia.

15(c) The QRIS block grant shall build on local consortia and
16other local QRIS work in existence on or before the operative date
17of this section.

18(d) For the 2014-15 fiscal year, if a county or region has an
19established local consortium that has adopted a quality continuum
20framework, the local consortium’s lead administering agency shall
21be provided the first opportunity to apply for a QRIS block grant.

22(e) Local consortia shall do all of the following to be eligible
23for a QRIS block grant:

24(1) Implement a QRIS that incorporates evidence-based elements
25and tools in the quality continuum framework that are tailored to
26the local conditions and enhanced with local resources.

27(2) Set ambitious yet achievable targets for California state
28preschool program contracting agencies’ participation in the QRIS
29with the goal of achieving the highest common tier, as the tier
30existed on June 1, 2014, or a higher level of quality.

31(3) Develop an action plan that includes a continuous quality
32improvement process that is tied to improving child outcomes.

33(4) Describe how QRIS block grant funds will be used to
34increase the number of sites achieving the highest common local
35tier and to directly support classrooms that have achieved the
36highest common tier, as that tier existed on June 1, 2014, or a
37higher level of quality.

38(f) The Superintendent, in consultation with the executive
39director of the state board, shall allocate QRIS block grant funds
40to local consortia that satisfy the requirements of subdivision (e)
P17   1based on the number of California state preschool program slots
2within the county or region.

3(g) (1) Local consortia receiving QRIS block grant funds shall
4allocate those funds to contracting agencies of the California state
5preschool program, as established by Article 7 (commencing with
6Section 8235), or local educational agencies, for activities that
7support and improve quality, and assess quality and access. In
8allocating the QRIS block grant funds, priority shall be given to
9directly supporting the classrooms of the California state preschool
10program sites that have achieved the highest common local tier
11of quality.

12(2) No more than 20 percent of a local consortium’s QRIS block
13grant funds may be used for assessment and access projects.

14(h) A family child care home education network established
15pursuant to Section 8245 that provides California state preschool
16program services shall be eligible for an allocation from a local
17consortium of QRIS block grant funds for activities that support,
18improve, and assess quality.

end insert
19begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 8206.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

8206.1.  

(a) The Superintendent shall collaborate with the
22Secretary of Health and Human Services, with the advice and
23assistance of the Child Development Programs Advisory
24Committee, in the development of the state plan required pursuant
25to the federal Child Care and Development Fund, before submitting
26or reporting on that plan to the federal Secretary of Health and
27Human Services.

28(b) (1) For purposes of this section, “Child Care and
29Development Fund” has the same meaning as in Section 98.2 of
30Title 45 of the Code of Federal Regulations.

31(2) Forbegin delete theend delete purposes of this section, “collaborate” means to
32 cooperate with and to consult with.

33(c) begin insert(1)end insertbegin insertend insertAs required by federal law, the department shall develop
34an expenditure plan that sets forth the final priorities for child care.
35The department shall coordinate with the State Department of
36Social Services, the California Children and Families Commission,
37and other stakeholders, including the Department of Finance, to
38develop the Child Care and Development Fund (CCDF) Plan. On
39or before February 1 of the year that the CCDF Plan is due to the
40federal government, the department shall release a draft of the
P18   1plan. The department shall then commence a 30-day comment
2period that shall include at least one hearing and the opportunity
3for written comments.begin delete Before the May budget revision,end deletebegin insert By April
41 of the year that the CCDF Plan is due,end insert
the department shall
5provide the revisedbegin delete CCDF Planend deletebegin insert plan and a description of any
6changes to the earlier draftend insert
to thebegin insert Director of Finance and theend insert
7 chairs of thebegin insert fiscalend insert committees ofbegin delete each house ofend delete the begin delete Legislature
8that consider appropriations, and shall provide a report on the plan
9to the committees in each house of the Legislature that consider
10the annual Budget Act appropriation.end delete
begin insert Legislature.end insert

begin insert

11(2) After the CCDF Plan is approved by the United States
12Department of Education, the department shall provide to the
13Department of Finance and the fiscal committees of the Legislature
14a copy of the final plan and a description of any changes made
15since submitting the draft plan for review.

end insert
begin insert

16(3) If the annual Budget Act requires changes to the approved
17CCDF Plan, the department shall submit an amended plan to the
18United States Department of Education.

end insert
19begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 8236 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

8236.  

(a) (1) Each applicant or contracting agency funded
22pursuant to Section 8235 shall give first priority to three- or
23four-year-old neglected or abused children who are recipients of
24child protective services, or who are at risk of being neglected,
25abused, or exploited upon written referral from a legal, medical,
26or social service agency. If an agency is unable to enroll a child
27in this first priority category, the agency shall refer the child’s
28parent or guardian to localbegin delete resourceend deletebegin insert resourcesend insert and referral services
29so that services for the child can be located.

30(2) Notwithstanding Section 8263, after children in the first
31priority category set forth in paragraph (1) are enrolled, each
32agency funded pursuant to Section 8235 shall give priority to
33eligible four-year-old childrenbegin insert who are not enrolled in a
34state-funded transitional kindergarten programend insert
before enrolling
35eligible three-year-old children. Each agency shall certify to the
36Superintendent that enrollment priority is being given to eligible
37four-year-old children.

38(b) For California state preschool programs operating with
39funding that was initially allocated in a prior fiscal year, at least
40one-half of the children enrolled at a preschool site shall be
P19   1four-year-old children. Any exception to this requirement shall be
2approved by the Superintendent. The Superintendent shall inform
3the Department of Finance of any exceptions that have been granted
4and the reasons for granting the exceptions.

begin delete

5(c) The following provisions apply to the award of new funding
6for the expansion of the California state preschool program that is
7appropriated by the Legislature for that purpose in any fiscal year:

8(1) In an application for those expansion funds,an agency shall
9furnish the Superintendent with an estimate of the number of
10four-year-old and three-year-old children that it plans to serve in
11the following fiscal year with those expansion funds. The agency
12also shall furnish documentation that indicates the basis of those
13estimates.

14(2) In awarding contracts for expansion pursuant to this
15subdivision, the Superintendent, after taking into account the
16geographic criteria established pursuant to Section 8279.3, and the
17headquarters preferences and eligibility criteria relating to fiscal
18or programmatic noncompliance established pursuant to Section
198261, shall give priority to applicant agencies that, in expending
20the expansion funds, will be serving the highest percentage of
21four-year-old children.

end delete
begin insert

22(c) (1) (A) Commencing June 15, 2015, and notwithstanding
23any other law, in awarding new funding for the expansion of a
24California state preschool program that is appropriated by the
25Legislature for that purpose in any fiscal year, the Superintendent,
26after taking into account the geographic criteria established
27pursuant to Section 8279.3 and the data described in subparagraph
28(B), shall give priority to applicant agencies that, in expending
29the expansion funds, will provide the greatest progress toward
30achieving access to full-day, full-year services for all
31income-eligible four year old children.

end insert
begin insert

32(B) In awarding funding pursuant to subparagraph (A) and in
33order to promote access for all income-eligible four-year-old
34children to at least a part-day California state preschool program,
35the department shall take into account the needs assessments
36submitted to the department pursuant to Section 8499.5 and any
37other high-quality data resources available to the department.

end insert
begin insert

38(2) Expansion funding awarded pursuant to paragraph (1) shall
39be apportioned at the rate described in Section 8265 and as
40determined in the annual Budget Act.

end insert
begin insert

P20   1(3) A family child care home education network shall be eligible
2to apply for expansion funding awarded pursuant to paragraph
3(1).

end insert

4(d) This section does not preclude a local educational agency
5from subcontracting with an appropriate public or private agency
6to operate a California state preschool program and to apply for
7funds made available forbegin delete theend delete purposes of this section. If a school
8district chooses not to operate or subcontract for a California state
9preschool program, the Superintendent shall work with the county
10office of education and other eligible agencies to explore possible
11opportunities in contracting or alternative subcontracting to provide
12a California state preschool program.

13(e)  This section does not prevent eligible children who are
14begin delete currentlyend delete receiving services from continuing to receive those
15services in future years pursuant to this chapter.

16begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 8239 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
17read:end insert

18

8239.  

The Superintendent shall encourage state preschool
19program applicants or contracting agencies to offer full-day
20services through a combination of part-day preschool slots and
21wraparound general child care and development programs. In order
22to facilitate a full-day of services, all of the following shall apply:

23(a) Part-day preschool programs provided pursuant to this
24section shall operate between 175 and 180 days.

25(b) Wraparound general child care and development programs
26provided pursuant to this section may operate a minimum of 246
27days per year unless the child development contract specified a
28lower minimum days of operation. Part-day general child care and
29development programs may operate a full-day for the remainder
30 of the year after the completion of the preschool program.

31(c) Part-day preschool services combined with wraparound child
32care services shall be reimbursed at no more than the full-day
33standard reimbursement rate for general child care programs with
34adjustment factors, pursuant to Section 8265 and as determined in
35the annual Budget Act.

36(d) Three- and four-year-old children are eligible for wraparound
37child care services to supplement the part-day California state
38preschool program if the family meets at least one of the criteria
39specified in paragraph (1) of subdivision (a) of Section 8263, and
P21   1the parents meet at least one of the criteria specified in paragraph
2(2) of subdivision (a) of Section 8263.

begin delete

3(e) Fees shall be assessed and collected for families with children
4in part-day preschool programs, or families receiving wraparound
5child care services, or both, pursuant to Article 11.5 (commencing
6with Section 8273).

7(f) The Superintendent shall annually report to the Department
8of Finance, on or before October 1 of each year, the fees collected
9from families who have children enrolled in the California state
10preschool program. The report shall distinguish between family
11fees collected for part-day preschool programs and fees collected
12for wraparound child care services.

13(g)

end delete

14begin insert(e)end insert For purposes of this section, “wraparound child care
15services” and “wraparound general child care and development
16programs” mean services provided for the remaining portion of
17the day or remainder of the year following the completion of
18part-day preschool services that are necessary to meet the child
19care needs of parents eligible pursuant to subdivision (a) of Section
208263. These services shall be provided consistent with the general
21child care and development programs provided pursuant to Article
228 (commencing with Section 8240).

23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 8261 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

8261.  

(a) The Superintendentbegin delete of Public Instructionend delete shall adopt
26rules and regulations pursuant to this chapter. The rules and
27regulations shall include, but not be limited to, provisions which
28do all of the following:

29(1) Provide clear guidelines for the selection of agencies when
30child development contracts are let, including, but not limited to,
31specification that any agency headquartered in the proposed service
32area on January 1, 1985, will be given priority for a new contract
33in that area, unless thebegin delete State Department of Educationend deletebegin insert departmentend insert
34 makes a written determination that (A) the agency is not able to
35deliver the level of services specified in the request for proposal,
36or (B) the department has notified the agency that it is not in
37compliance with the terms of its contract.

38(2) Provide for a contract monitoring system to ensure that
39agencies expend funds received pursuant to this chapter in
40accordance with the provisions of their contracts.

P22   1(3) Specify adequate standards of agency performance.

2(4) Establish reporting requirements for service reports,
3including provisions for varying the frequency with which these
4reports are to be submitted on the basis of agency performance.

5(5) Specify standards for withholding payments to agencies that
6fail to submit required fiscal reports.

7(6) Set forth standards for department site visits to contracting
8agencies, including, but not limited to, specification as to the
9purpose of the visits, the personnel that will perform these visits,
10and the frequency of these visits which shall be as frequently as
11staff and budget resources permit. By September 1 of each year,
12the department shall report to the Senate Education, Senate Health
13and Human Services, Assembly Education, and Assembly Human
14Services Committees on the number of visits conducted during
15the previous fiscal year pursuant to this paragraph.

begin insert

16(7) Authorize the department to develop a process that requires
17every contracting agency to recompete for continued funding no
18less frequently than every five years.

end insert

19(b) Thebegin delete superintendentend deletebegin insert Superintendentend insert shall consult with the
20State Department of Social Services with respect to rules and
21regulations adopted relative to the disbursal of federal funds under
22Title XX of the federal Social Security Act.

23(c) For purposes of expediting the implementation of state or
24federal legislation to expand child care services, thebegin delete superintendentend delete
25begin insert Superintendentend insert may waive (1) the regulations regarding the point
26qualifications for, and the process and scoring of, interviews of
27contract applicants pursuant to Section 18002 of Title 5 of the
28California Code of Regulations, or (2) the time limitations for
29scheduling and notification of appeal hearings and their results
30pursuant to Section 18003 of Title 5 of the California Code of
31Regulations. Thebegin delete superintendentend deletebegin insert Superintendentend insert shall ensure that
32the appeal hearings provided for in Section 18003 of Title 5 of the
33California Code of Regulations are conducted in a timely manner.

34(d) (1) Child care and development programs operated under
35contract from funds made available pursuant to the federal Child
36Care and Development Fund, shall be administered according to
37Division 19 (commencing with Section 17906) of Chapter 1 of
38Title 5 of the California Code of Regulations, unless provisions
39of these regulations conflict with federal regulations. If state and
P23   1federal regulations conflict, the federal regulations shall apply
2unless a waiver of federal regulations is authorized.

3(2) For purposes of this section, “Child Care and Development
4Fund” has the same meaning as in Section 98.2 of Title 45 of the
5Code of Federal Regulations.

6begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 8263.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
7read:end insert

8

8263.1.  

(a) For purposes of this chapter, “income eligible”
9means that a family’s adjusted monthly income is at or below 70
10percent of the state median income, adjusted for family size, and
11adjusted annually.

12(b) Notwithstanding any other law, for the 2011-12 fiscal year,
13the income eligibility limits that were in effect for the 2007-08
14fiscal year shall be reduced to 70 percent of the state median
15income that was in use for the 2007-08 fiscal year, adjusted for
16family size, effective July 1, 2011.

17(c) Notwithstanding any other law, for the 2012-13 fiscal year,
18the income eligibility limits shall be 70 percent of the state median
19income that was in use for the 2007-08 fiscal year, adjusted for
20family size.

21(d) Notwithstanding any other law, for the 2013-14 fiscal year,
22the income eligibility limits shall be 70 percent of the state median
23income that was in use for the 2007-08 fiscal year, adjusted for
24family size.

begin insert

25(e) Notwithstanding any other law, for the 2014-15 fiscal year,
26the income eligibility limits shall be 70 percent of the state median
27income that was in use for the 2007-08 fiscal year, adjusted for
28family size.

end insert
begin delete

29(e)

end delete

30begin insert(f)end insert The income of a recipient of federal supplemental security
31income benefits pursuant to Title XVI of the federal Social Security
32Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program
33benefits pursuant to Title XVI of the federal Social Security Act
34and Chapter 3 (commencing with Section 12000) of Part 3 of
35Division 9 of the Welfare and Institutions Code shall not be
36included as income for purposes of determining eligibility for child
37care under this chapter.

38begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 8265 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
39read:end insert

P24   1

8265.  

(a) The Superintendent shall implement a plan that
2establishes reasonable standards and assigned reimbursement rates,
3which vary with the length of the program year and the hours of
4service.

5(1) Parent fees shall be used to pay reasonable and necessary
6costs for providing additional services.

7(2) When establishing standards and assigned reimbursement
8rates, the Superintendent shall confer with applicant agencies.

9(3) The reimbursement system, including standards and rates,
10shall be submitted to the Joint Legislative Budget Committee.

11(4) The Superintendent may establish any regulations he or she
12deems advisable concerning conditions of service and hours of
13enrollment for children in the programs.

14(b) The standard reimbursement rate shall bebegin delete three thousand
15five hundred twenty-three dollars ($3,523)end delete
begin insert nine thousand
16twenty-four dollars and seventy-five cents ($9,024.75)end insert
per unit of
17average daily enrollment for a 250-day year,begin insert and commencing with
18the 2015-16 fiscal year, shall beend insert
increased by the cost-of-living
19adjustment granted by the Legislaturebegin delete beginning July 1, 1980.end delete
20begin insert annually pursuant to Section 42238.15.end insert

21(c) The plan shall require agencies having an assigned
22reimbursement rate above the current year standard reimbursement
23rate to reduce costs on an incremental basis to achieve the standard
24reimbursement rate.

25(d) The plan shall provide for adjusting reimbursement on a
26case-by-case basis, in order to maintain service levels for agencies
27currently at a rate less than the standard reimbursement rate.
28Assigned reimbursement rates shall be increased only on the basis
29of one or more of the following:

30(1) Loss of program resources from other sources.

31(2) Need of an agency to pay the same child care rates as those
32prevailing in the local community.

33(3) Increased costs directly attributable to new or different
34regulations.

35(4) Documented increased costs necessary to maintain the prior
36year’s level of service and ensure the continuation of threatened
37programs.

38Child care agencies funded at the lowest rates shall be given first
39priority for increases.

P25   1(e) The plan shall provide for expansion of child development
2programs at no more than the standard reimbursement rate for that
3fiscal year.

4(f) The Superintendent may reduce the percentage of reduction
5for a public agency that satisfies any of the following:

6(1) Serves more than 400 children.

7(2) Has in effect a collective bargaining agreement.

8(3) Has other extenuating circumstances that apply, as
9determined by the Superintendent.

10begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 8273.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
11read:end insert

12

8273.1.  

(a) Families receiving services pursuant to
13subparagraph (B) of paragraph (1) of subdivision (b) of Section
148263 may be exempt from family fees for up to three months.

15(b) Families receiving services pursuant to subparagraph (C) of
16paragraph (1) of subdivision (b) of Section 8263 may be exempt
17from family fees for up to 12 months.

18(c) The cumulative period time of exemption from family fees
19for families receiving services pursuant to paragraph (1) of
20subdivision (b) of Section 8263 shall not exceed 12 months.

21(d) Notwithstanding any other law, a family receiving
22CalWORKs cash aid shall not be charged a family fee.

begin insert

23(e) Notwithstanding any other law, commencing with the
242014-15 fiscal year, family fees shall not be assessed for the
25part-day California preschool program to income eligible families
26whose children are enrolled in that program pursuant to Article
277 (commencing with Section 8235).

end insert
28begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 8273.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
29

8273.2.  

(a) Notwithstanding paragraph (1) of subdivision (b)
30of Section 8447, for the 2006-07 fiscal year, the department shall
31update the family fee schedules by family size, based on the 2005
32state median income survey data for a family of four. The family
33fee schedule used during the 2005-06 fiscal year shall remain in
34effect. However, the department shall adjust the family fee schedule
35for families that are newly eligible to receive or will continue to
36receive services under the new income eligibility limits. The family
37fees shall not exceed 10 percent of the family’s monthly income.

38(b) Notwithstanding any other law, the family fee schedule that
39was in effect for the 2007-08, 2008-09, 2009-10, and 2010-11
40fiscal years shall be adjusted to reflect the income eligibility limits
P26   1specified in subdivision (b) of Section 8263.1 for the 2011-12
2fiscal year, and shall retain a flat fee per family. The revised family
3fee schedule shall begin at income levels at which families
4currently begin paying fees. The revised family fees shall not
5exceed 10 percent of the family’s monthly income. The department
6shall first submit the adjusted family fee schedule to the
7Department of Finance for approval in order for the adjusted family
8fee schedule to be implemented by July 1, 2011.

9(c) Notwithstanding any other law, the family fee schedule that
10was in effect for the 2011-12 fiscal year pursuant to subdivision
11(b) shall remain in effect for the 2012-13 fiscal year, and shall
12retain a flat fee per family.

13(d) Notwithstanding any other law, the family fee schedule that
14was in effect for the 2012-13 fiscal year pursuant to subdivision
15(c) shall remain in effect for the 2013-14 fiscal year until the first
16day of a month that is at least 60 days after the new family fee
17schedule developed pursuant to Section 8273 has been approved
18by the Department of Finance and adopted.

end delete
19begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 8273.2 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
20read:end insert

begin insert
21

begin insert8273.2.end insert  

Commencing with the 2014-15 fiscal year, the adopted
22family fee schedule that was in effect on July 1, 2014, shall remain
23in effect.

end insert
24begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 8278.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
25read:end insert

26

8278.3.  

(a) (1) The Child Care Facilities Revolving Fund is
27hereby established in the State Treasury to provide funding for the
28renovation, repair, or improvement of an existing building to make
29the building suitable for licensure for child care and development
30services and for the purchase of new relocatable child care facilities
31for lease tobegin delete school districtsend deletebegin insert local educational agenciesend insert and
32contracting agencies that provide child care and development
33services, pursuant to this chapter. The Superintendent may transfer
34state funds appropriated for child care facilities into this fund for
35allocation tobegin delete school districtsend deletebegin insert local educational agenciesend insert and
36contracting agencies, as specified, for the purchase, transportation,
37and installation of facilities for replacement and expansion of
38capacity.begin delete School districtsend deletebegin insert Local educational agenciesend insert and
39contracting agencies using facilities made available by the use of
40these funds shall be charged a leasing fee, either at a fair market
P27   1value for those facilities or at an amount sufficient to amortize the
2cost of purchase and relocation, whichever amount is lower, over
3a 10-year period. Upon full repayment of the purchase and
4relocation costs, title shall transfer from the State of California to
5thebegin delete school districtend deletebegin insert local educational agencyend insert or contracting agency.
6The Superintendent shall deposit all revenue derived from the lease
7payments into the Child Care Facilities Revolving Fund.

8(2) Notwithstanding Section 13340 of the Government Code,
9all moneys in the fund, including moneys deposited from lease
10payments, are continuously appropriated, without regard to fiscal
11years, to the Superintendent for expenditure pursuant to this article.

begin insert

12(3) Augmentations to the Child Care Facilities Revolving Fund
13made in the Budget Act of 2014 shall be used for renovation or
14repair of existing local educational agency facilities or new
15relocatable child care facilities for lease to local educational
16agencies that provide California state preschool program services
17pursuant to this chapter.

end insert

18(b) On or before August 1 of each fiscal year, the Superintendent
19shall submit to the Department of Finance and the Legislative
20Analyst’s Office a report detailing the number of funding requests
21received and their purpose, the types of agencies that received
22funding from the Child Care Facilities Revolving Fund, the
23increased capacity that these facilities generated, a description of
24the manner in which the facilities are being used, and a projection
25of the lease payments collected and the funds available for future
26use.

27(c) Abegin delete school district or county office of educationend deletebegin insert local
28educational agencyend insert
that provides child care pursuant to the
29California School Age Families Education Program (Article 7.1
30(commencing with Section 54740) of Chapter 9 of Part 29 of
31Division 4 of Title 2) is eligible to apply for and receive funding
32pursuant to this section.

33begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 8363.1 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
34read:end insert

begin insert
35

begin insert8363.1.end insert  

(a) On or before, July 1, 2016, the Commission on
36Teacher Credentialing shall review, and update if appropriate,
37the requirements for the issuance and renewal of permits
38authorizing service in the care, development, and instruction of
39children in child care and development programs and permits
40authorizing supervision of a child care and development program.

P28   1(b) This section shall remain in effect only until January 1, 2017,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2017, deletes or extends that date.

end insert
4begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 8447 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
5read:end insert

6

8447.  

(a) The Legislature hereby finds and declares that greater
7efficiencies may be achieved in the execution of state subsidized
8child care and development program contracts with public and
9private agencies by the timely approval of contract provisions by
10the Department of Finance, the Department of General Services,
11and the State Department of Education and by authorizing the State
12Department of Education to establish a multiyear application,
13contract expenditure, and service review as may be necessary to
14provide timely service while preserving audit and oversight
15functions to protect the public welfare.

16(b) (1) The Department of Finance and the Department of
17General Services shall approve or disapprove annual contract
18funding terms and conditions, including both family fee schedules
19and regional market rate schedules that are required to be adhered
20to by contract, and contract face sheets submitted by the State
21Department of Education not more than 30 working days from the
22date of submission, unless unresolved conflicts remain between
23the Department of Finance, the State Department of Education,
24and the Department of General Services. The State Department of
25Education shall resolve conflicts within an additional 30 working
26day time period. Contracts and funding terms and conditions shall
27be issued to child care contractors no later than June 1. Applications
28for new child care funding shall be issued not more than 45
29working days after the effective date of authorized new allocations
30of child care moneys.

31(2) Notwithstanding paragraph (1),begin insert until January 1, 2015,end insert the
32 State Department of Education shall implement the regional market
33rate schedules based upon the county aggregates, as determined
34by the Regional Market survey conducted in 2005.begin insert Commencing
35January 1, 2015, the State Department of Education shall
36implement the regional market rate schedules based upon the 85th
37percentile of county aggregates, as determined by the Regional
38Market survey conducted in 2009. Commencing January 1, 2015,
39the regional market rate schedule developed pursuant to this
40paragraph shall be reduced by 13 percent. If a ceiling for a county
P29   1is less than the ceiling provided for that county before January 1,
22015, the State Department of Education shall use the ceiling from
3the Regional Market survey conducted in 2005.end insert

4(3) It is the intent of the Legislature to fully fund the third stage
5of child care for former CalWORKs recipients.

6(c) With respect to subdivision (b), it is the intent of the
7Legislature that the Department of Finance annually review
8contract funding terms and conditions for the primary purpose of
9ensuring consistency between child care contracts and the child
10care budget. This review shall include evaluating any proposed
11changes to contract language or other fiscal documents to which
12the contractor is required to adhere, including those changes to
13terms or conditions that authorize higher reimbursement rates, that
14modify related adjustment factors, that modify administrative or
15other service allowances, or that diminish fee revenues otherwise
16available for services, to determine if the change is necessary or
17has the potential effect of reducing the number of full-time
18equivalent children that may be served.

19(d) Alternative payment child care systems, as set forth in Article
203 (commencing with Section 8220), shall be subject to the rates
21established in the Regional Market Rate Survey of California Child
22Care Providers for provider payments. The State Department of
23Education shall contract to conduct and complete a Regional
24Market Rate Survey no more frequently than once every two years,
25consistent with federal regulations, with a goal of completion by
26March 1.

27(e) By March 1 of each year, the Department of Finance shall
28provide to the State Department of Education the state median
29income amount for a four-person household in California based
30on the best available data. The State Department of Education shall
31adjust its fee schedule for child care providers to reflect this
32updated state median income; however, no changes based on
33revisions to the state median income amount shall be implemented
34midyear.

35(f) Notwithstanding the June 1 date specified in subdivision (b),
36changes to the regional market rate schedules and fee schedules
37may be made at any other time to reflect the availability of accurate
38data necessary for their completion, provided these documents
39receive the approval of the Department of Finance. The Department
40of Finance shall review the changes within 30 working days of
P30   1submission and the State Department of Education shall resolve
2conflicts within an additional 30 working day period. Contractors
3shall be given adequate notice before the effective date of the
4approved schedules. It is the intent of the Legislature that contracts
5for services not be delayed by the timing of the availability of
6accurate data needed to update these schedules.

7begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 8450 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
8read:end insert

9

8450.  

(a) All child development contractors are encouraged
10to develop and maintain a reserve within the child development
11fund, derived from earned but unexpended funds. Child
12development contractors may retain all earned funds. Forbegin delete the
13purposeend delete
begin insert purposesend insert of this section, “earned funds” are those for
14which the required number of eligible service units have been
15provided.

16(b) (1) Earned funds shall not be expended for any activities
17proscribed by Section 8406.7. Earned but unexpended funds shall
18remain in the contractor’s reserve account within the child
19 development fund and shall be expended only by direct service
20child development programs that are funded under contract with
21the department.

22(2) begin insert(A)end insertbegin insertend insertCommencing July 1, 2011, a contractor may retain a
23reserve fund balance, separate from the reserve fund retained
24pursuant to subdivision (c) or (d), equal to 5 percent of the sum of
25the maximum reimbursable amounts of all contracts to which the
26contractor is a party, or two thousand dollars ($2,000), whichever
27is greater. This paragraph applies to direct service child
28development programs that are funded under contract with the
29department.

begin insert

30(B) A California state preschool program contracting agency
31may retain in the reserve fund an additional 10 percent of the sum
32of the maximum reimbursable amounts of all preschool contracts
33to which the contracting agency is a party for purposes of
34professional development for California state preschool program
35instructional staff.

end insert

36(c) Notwithstanding subdivisions (a) and (b), a contractor may
37retain a reserve fund balance for a resource and referral program,
38separate from the balance retained pursuant to subdivision (b) or
39(d), not to exceed 3 percent of the contract amount. Funds from
P31   1this reserve account may be expended only by resource and referral
2programs that are funded under contract with the department.

3(d) Notwithstanding subdivisions (a) and (b), a contractor may
4retain a reserve fund balance for alternative payment model and
5certificate child care contracts, separate from the reserve fund
6retained pursuant to subdivisions (b) and (c). Funds from this
7reserve account may be expended only by alternative payment
8model and certificate child care programs that are funded under
9contract with the department. The reserve amount allowed by this
10section may not exceed either of the following, whichever is
11greater:

12(1) Two percent of the sum of the parts of each contract to which
13that contractor is a party that is allowed for administration pursuant
14to Section 8276.7 and that is allowed for supportive services
15pursuant to the provisions of the contract.

16(2) One thousand dollars ($1,000).

17(e) Each contractor’s audit shall identify any funds earned by
18the contractor for each contract through the provision of contracted
19services in excess of funds expended.

20(f) Any interest earned on reserve funds shall be included in the
21fund balance of the reserve. This reserve fund shall be maintained
22in an interest-bearing account.

23(g) Moneys in a contractor’s reserve fund may be used only for
24expenses that are reasonable and necessary costs as defined in
25subdivision (n) of Section 8208.

26(h) Any reserve fund balance in excess of the amount authorized
27pursuant to subdivisions (b), (c), and (d) shall be returned to the
28department pursuant to procedures established by the department.

29(i) Upon termination of all child development contracts between
30a contractor and the department, all moneys in a contractor’s
31reserve fund shall be returned to the department pursuant to
32procedures established by the department.

33(j) Expenditures from, additions to, and balances in, the reserve
34fund shall be included in the agency’s annual financial statements
35and audit.

36begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 8499.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

8499.5.  

(a) The department shall allocate child care funding
39pursuant to Chapter 2 (commencing with Section 8200) based on
40the amount of state and federal funding that is available.

P32   1(b) By May 30 of each year, upon approval by the county board
2of supervisors and the county superintendent of schools, a local
3planning council shall submit to the department the local priorities
4it has identified that reflect all child care needs in the county. To
5accomplish this, a local planning council shall do all of the
6following:

7(1) Conduct an assessment of child care needs in the county no
8lessbegin insert frequentlyend insert than once every five years. The department shall
9define and prescribe data elements to be included in the needs
10assessment and shall specify the format for the data reporting. The
11needs assessment shall also include all factors deemed appropriate
12by the local planning council in order to obtain an accurate picture
13of the comprehensive child care needs in the county. The factors
14include, but are not limited to, all of the following:

15(A) The needs of families eligible for subsidized child care.

16(B) The needs of families not eligible for subsidized child care.

17(C) The waiting lists for programs funded by the department
18and the State Department of Social Services.

19(D) The need for child care for children determined by the child
20protective services agency to be neglected, abused, or exploited,
21or at risk of being neglected, abused, or exploited.

22(E) The number of children in families receiving public
23assistance, including CalFresh benefits, housing support, and
24Medi-Cal, and assistance from the Healthy Families Program and
25the Temporary Assistance for Needy Families (TANF) program.

26(F) Family income among families with preschool or schoolage
27children.

28(G) The number of children in migrant agricultural families
29who move from place to place for work or who are currently
30dependent for their income on agricultural employment in
31accordance with subdivision (a) of, and paragraphs (1) and (2) of
32subdivision (b) of, Section 8231.

33(H) The number of children who have been determined by a
34regional center to require services pursuant to an individualized
35family service plan, or by a local educational agency to require
36services pursuant to an individualized education program or an
37individualized family service plan.

38(I) The number of children in the county by primary language
39spoken pursuant to the department’s language survey.

P33   1(J) Special needs based on geographic considerations, including
2rural areas.

3(K) The number of children needing child care services by age
4cohort.

5(2) Document information gathered during the needs assessment
6which shall include, but need not be limited to, data on supply,
7demand, cost, and market rates for each category of child care in
8the county.

9(3) Encourage public input in the development of the priorities.
10Opportunities for public input shall include at least one public
11hearing during which members of the public can comment on the
12proposed priorities.

13(4) Prepare a comprehensive countywide child care plan
14designed to mobilize public and private resources to address
15identified needs.

16(5) Conduct a periodic review of child care programs funded
17by the department and the State Department of Social Services to
18determine if identified priorities are being met.

19(6) Collaborate with subsidized and nonsubsidized child care
20providers, county welfare departments, human service agencies,
21regional centers, job training programs, employers, integrated child
22and family service councils, local and state children and families
23commissions, parent organizations, early start family resource
24centers, family empowerment centers on disability, local child care
25resource and referral programs, and other interested parties to
26foster partnerships designed to meet local child care needs.

27(7) Design a system to consolidate local child care waiting lists,
28if a centralized eligibility list is not already in existence.

29(8) Coordinate part-day programs, including state preschool
30and Head Start, with other child care and development services to
31provide full-day child care.

32(9) Submit the results of the needs assessment and the local
33priorities identified by the local planning council to the board of
34supervisors and the county superintendent of schools for approval
35before submitting them to the department.

36(10) Identify at least one, but not more than two, members to
37serve as part of the department team that reviews and scores
38proposals for the provision of services funded through contracts
39with the department. Local planning council representatives may
40not review and score proposals from the geographic area covered
P34   1by their own local planning council. The department shall notify
2each local planning council whenever this opportunity is available.

3(c) The department shall, in conjunction with the State
4Department of Social Services and all appropriate statewide
5agencies and associations, develop guidelines for use by local
6planning councils to assist them in conducting needs assessments
7that are reliable and accurate. The guidelines shall include
8acceptable sources of demographic and child care data, and
9methodologies for assessing child care supply and demand.

10(d) begin deleteThe end deletebegin insertExcept as otherwise required by subdivision (c) of
11Section 8236, the end insert
department shall allocate funding within each
12county in accordance with the priorities identified by the local
13planning council of that county and submitted to the department
14pursuant to this section, unless the priorities do not meet the
15requirements of state or federal law.

16begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 14035 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
17

14035.  

(a) The county school service fund contingency account
18is hereby established in the General Fund. In each fiscal year the
19amount credited to the account shall be one hundred thousand
20dollars ($100,000). Notwithstanding any provision of Section
2114002 to the contrary, the amount to be credited to the county
22school service fund contingency account each fiscal year shall not
23be transferred from the General Fund as required or authorized to
24be transferred by Section 14002, but the amounts required or
25authorized to be transferred by Section 14002 shall be reduced by
26the amount to be credited to the contingency account and shall
27remain in the General Fund to the credit of the contingency
28account.

29(b) The moneys in the General Fund to the credit of the
30contingency account shall be transferred by the Controller to the
31State School Fund in amounts as are certified from time to time
32by the Superintendent of Public Instruction to be necessary to meet
33actual costs to reimburse county superintendents of schools for
34expenses incurred in providing emergency education to pupils and
35making financial grants to school districts pursuant to Section
361602, to reimburse county superintendents of schools for the actual
37and necessary travel expenses incurred in connection with
38cooperative county publication projects by the county
39superintendent of schools or members of his or her staff, and to
P35   1reimburse county superintendents of schools for expenses incurred
2in making emergency financial grants to school districts.

3(c) The amount credited, pursuant to this section, in each fiscal
4year to the county school service fund contingency account in the
5General Fund shall be reduced by the amount of the balance
6remaining to the account on June 30 of the preceding fiscal year
7and an equal reduction shall be made in the amount of the reduction
8in the amounts required or authorized to be transferred under
9Section 14002 in accordance with this section.

end delete
10begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 14041.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

14041.5.  

(a) Notwithstanding subdivision (a) of Section 14041,
13begin delete commencing withend deletebegin insert forend insert the 2002-03 fiscalbegin delete year,end deletebegin insert year to the 2013-14
14fiscal year, inclusive,end insert
warrants for the principal apportionments
15for the month of June instead shall be drawn in July of the same
16calendar year pursuant to the certification made pursuant to Section
1741335.

18(b) Except as provided in subdivisions (c) and (d), for purposes
19of making the computations required by Section 8 of Article XVI
20of the California Constitution, the warrants drawn pursuant to
21subdivision (a) shall be deemed to be “General Fund revenues
22appropriated to school districts,” as defined in subdivision (c) of
23Section 41202 for the fiscal year in which the warrants are drawn
24and included within the “total allocations to school districts and
25community college districts from General Fund proceeds of taxes
26appropriated pursuant to Article XIII B” as defined in subdivision
27(e) of Section 41202, for the fiscal year in which the warrants are
28drawn.

29(c) For the 2003-04 school year, the amount of apportionments
30for revenue limits computed pursuant to Section 42238 from any
31of the apportionments made pursuant to Section 14041 that are
32deemed “General Fund revenues appropriated for school districts,”
33as defined in subdivision (c) of Section 41202 for the following
34fiscal year and included within the “total allocations to school
35districts and community college districts from General Fund
36proceeds of taxes appropriated pursuant to Article XIII B” as
37defined in subdivision (e) of Section 41202, for the 2004-05 fiscal
38year shall be seven hundred twenty-six million two hundred
39seventy thousand dollars ($726,270,000). Any amount in excess
40of seven hundred twenty-six million two hundred seventy thousand
P36   1dollars ($726,270,000) that is apportioned in July of 2004 is
2deemed “General Fund revenues appropriated for school districts,”
3as defined in subdivision (c) of Section 41202 for the 2003-04
4fiscal year and included within the “total allocations to school
5districts and community college districts from General Fund
6proceeds of taxes appropriated pursuant to Article XIII B” as
7defined in subdivision (e) of Section 41202, for the 2003-04 fiscal
8year.

9(d) For the 2004-05 school year to the 2007-08 school year,
10inclusive, the amount of apportionments for revenue limits
11computed pursuant to Section 42238 from any of the
12apportionments made pursuant to Section 14041 that are deemed
13“General Fund revenues appropriated for school districts,” as
14defined in subdivision (c) of Section 41202 for the following fiscal
15year and included within the “total allocations to school districts
16and community college districts from General Fund proceeds of
17taxes appropriated pursuant to Article XIII B” as defined in
18subdivision (e) of Section 41202, for the following fiscal year shall
19be seven hundred fifteen million one hundred eighteen thousand
20dollars ($715,118,000). Any amount in excess of seven hundred
21fifteen million one hundred eighteen thousand dollars
22($715,118,000) that is apportioned in July of any year is deemed
23“General Fund revenues appropriated for school districts,” as
24defined in subdivision (c) of Section 41202 for the prior fiscal year
25and included within the “total allocations to school districts and
26community college districts from General Fund proceeds of taxes
27appropriated pursuant to Article XIII B” as defined in subdivision
28(e) of Section 41202, for the prior fiscal year.

29(e) For the 2008-09 schoolbegin delete year, and each school year thereafter,end delete
30begin insert year to the 2013-14 school year, inclusive,end insert the amount of
31apportionments for revenue limits computed pursuant to Section
3242238 from any of the apportionments made pursuant to Section
3314041 that are deemed “General Fund revenues appropriated for
34school districts,” as defined in subdivision (c) of Section 41202
35for the following fiscal year and included within the “total
36allocations to school districts and community college districts from
37General Fund proceeds of taxes appropriated pursuant to Article
38XIII B” as defined in subdivision (e) of Section 41202, for the
39following fiscal year shall be one billion one hundred one million
40six hundred fifty-five thousand dollars ($1,101,655,000). Any
P37   1amount in excess of one billion one hundred one million six
2hundred fifty-five thousand dollars ($1,101,655,000) that is
3apportioned in July of any year is deemed “General Fund revenues
4appropriated for school districts,” as defined in subdivision (c) of
5Section 41202 for the prior fiscal year and included within the
6“total allocations to school districts and community college districts
7from General Fund proceeds of taxes appropriated pursuant to
8Article XIII B” as defined in subdivision (e) of Section 41202, for
9the prior fiscal year.

10begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 14041.6 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

14041.6.  

(a) Notwithstanding subdivision (a) of Section 14041,
13or any other law, for the 2008-09 fiscalbegin delete yearend deletebegin insert year,end insert warrants for
14the principal apportionments for the month of February in the
15amount of two billion dollars ($2,000,000,000) instead shall be
16drawn in July of the same calendar year pursuant to the certification
17made pursuant to Section 41339.

18(b) Notwithstanding subdivision (a) of Section 14041, or any
19other law, for the 2009-10 fiscalbegin delete yearend deletebegin insert year,end insert warrants for the
20principal apportionments for the month of February in the amount
21of two billion dollars ($2,000,000,000) instead shall be drawn in
22July of the same calendar year and warrants for the month of April
23in the amount of six hundred seventy-eight million six hundred
24eleven thousand dollars ($678,611,000) and for the month of May
25in the amount of one billion dollars ($1,000,000,000) instead shall
26be drawn in August pursuant to the certification made pursuant to
27Section 41339.

28(c) Notwithstanding subdivision (a) of Section 14041, or any
29other law, for the 2010-11 fiscalbegin delete yearend deletebegin insert year,end insert warrants for the
30principal apportionments for the month of February in the amount
31of two billion dollars ($2,000,000,000), for the month of April in
32the amount of four hundred nineteen million twenty thousand
33dollars ($419,020,000), for the month of May in the amount of
34eight hundred million dollars ($800,000,000), and for the month
35of June in the amount of five hundred million dollars
36($500,000,000) instead shall be drawn in July of the same calendar
37year and warrants for the month of April in the amount of six
38hundred seventy-eight million six hundred eleven thousand dollars
39($678,611,000) and for the month of May in the amount of one
P38   1billion dollars ($1,000,000,000) instead shall be drawn in August
2pursuant to the certification made pursuant to Section 41339.

3(d) Notwithstanding subdivision (a) of Section 14041, or any
4other law, for the 2011-12 fiscalbegin delete yearend deletebegin insert year,end insert warrants for the
5principal apportionments for the month of February in the amount
6of two billion dollars ($2,000,000,000), for the month of April in
7the amount of four hundred nineteen million twenty thousand
8dollars ($419,020,000), for the month of May in the amount of
9eight hundred million dollars ($800,000,000), and for the month
10of June in the amount of five hundred million dollars
11($500,000,000) instead shall be drawn in July of the same calendar
12year and warrants for the month of March in the amount of one
13billion three hundred million dollars ($1,300,000,000) and for the
14month of April in the amount of one billion four hundred forty-two
15million four hundred five thousand dollars ($1,442,405,000) and
16for the month of May in the amount of one billion dollars
17($1,000,000,000) instead shall be drawn in August pursuant to the
18certification made pursuant to Section 41339.

19(e) Notwithstanding subdivision (a) of Section 14041, or any
20other law, for the 2012-13 fiscalbegin delete yearend deletebegin insert year,end insert warrants for the
21principal apportionments for the month of February in the amount
22of five hundred thirty-one million seven hundred twenty thousand
23dollars ($531,720,000), for the month of April in the amount of
24five hundred ninety-four million seven hundred forty-eight
25thousand dollars ($594,748,000), for the month of May in the
26amount of one billion nine hundred seventy-six million seven
27hundred one thousand dollars ($1,976,701,000), and for the month
28of June in the amount of five hundred million dollars
29($500,000,000) instead shall be drawn in July of the same calendar
30year and warrants for the month of March in the amount of one
31billion twenty-nine million four hundred ninety-three thousand
32dollars ($1,029,493,000) and for the month of April in the amount
33of seven hundred sixty-three million seven hundred ninety-four
34thousand dollars ($763,794,000) instead shall be drawn in August
35pursuant to the certification made pursuant to Section 41339.

36(f) Notwithstanding subdivision (a) of Section 14041, or any
37otherbegin delete law, commencing withend deletebegin insert law, forend insert the 2013-14 fiscal year,
38warrants for the principal apportionments for the month of April
39in the amount of nine hundred seventeen million five hundred
40forty-two thousand dollars ($917,542,000), for the month of May
P39   1in the amount of two billion one hundred fifty-two million four
2hundred thirty thousand dollars ($2,152,430,000), and for the
3month of June in the amount of five hundred million dollars
4($500,000,000) instead shall be drawn in July of the same calendar
5year pursuant to the certification made pursuant to Section 41339.

6(g) Notwithstanding subdivision (a) of Sectionbegin delete 14041end deletebegin insert 14041,end insert
7 or any other law,begin delete commencing withend deletebegin insert forend insert the 2013-14 fiscal year,
8warrants for the principal apportionments for the month of May
9in the amount of two hundred million dollars ($200,000,000) and
10for the month of June in the amount of six hundred ninety-nine
11million four hundred seventy-three thousand dollars ($699,473,000)
12instead shall be drawn in July of the same calendar year pursuant
13to the certification made pursuant to Section 41339. The
14Superintendent shall allocate this deferred amount and repayment
15to local educational agencies based on their proportionate share
16of funding appropriated to local educational agencies pursuant to
17Section 92 of Chapter 38 of the Statutes of 2012.

begin insert

18(h) Notwithstanding subdivision (a) of Section 14041, or any
19other law, for the 2014-15 fiscal year, warrants for the principal
20apportionments for the month of June in the amount of eight
21hundred ninety-seven million one hundred eighty-four thousand
22dollars ($897,184,000) instead shall be drawn in July of the same
23calendar year pursuant to the certification made pursuant to
24Section 41339.

end insert
begin delete

25(h)

end delete

26begin insert(i)end insert Except as provided in subdivisions (c) and (e) of Section
2741202, for purposes of making the computations required by
28Section 8 of Article XVI of the California Constitution, the
29warrants drawn pursuant to subdivisions (a) tobegin delete (g),end deletebegin insert (h),end insert inclusive,
30shall be deemed to be “General Fund revenues appropriated for
31school districts,” as defined in subdivision (c) of Section 41202,
32for the fiscal year in which the warrants are drawn and included
33within the “total allocations to school districts and community
34college districts from General Fund proceeds of taxes appropriated
35pursuant to Article XIII B,” as defined in subdivision (e) of Section
3641202, for the fiscal year in which the warrants are drawn.

begin delete

37(i)

end delete

38begin insert(j)end insert Notwithstanding subdivision begin delete(h),end deletebegin insert (i),end insert for purposes of making
39the computations required by Section 8 of Article XVI of the
40California Constitution, one billion five hundred ninety million
P40   1four hundred forty-nine thousand dollars ($1,590,449,000) of the
2warrants drawn in August of 2013 pursuant to subdivision (e) shall
3be deemed to be “General Fund revenues appropriated for school
4districts,” as defined in subdivision (c) of Section 41202, for the
52012-13 fiscal year, and included within the “total allocations to
6school districts and community college districts from General Fund
7proceeds of taxes appropriated pursuant to Article XIII B,” as
8defined in subdivision (e) of Section 41202, for the 2012-13 fiscal
9year.

begin insert

10(k) Notwithstanding subdivision (i) of this section and
11subdivision (e) of Section 14041.5, for purposes of making the
12computations required by Section 8 of Article XVI of the California
13Constitution, one billion two hundred ninety-four million seven
14hundred twenty thousand dollars ($1,294,720,000) of the warrants
15drawn in July 2014 pursuant to subdivisions (f) and (g) of this
16section and subdivision (e) of Section 14041.5 shall be deemed to
17be “General Fund revenues appropriated for school districts,” as
18defined in subdivision (c) of Section 41202, for the 2012-13 fiscal
19year, and included within the “total allocations to school districts
20and community college districts from General Fund proceeds of
21taxes appropriated pursuant to Article XIII B,” as defined in
22subdivision (e) of Section 41202, for the 2012-13 fiscal year.

end insert
begin insert

23(l) Notwithstanding subdivision (i) of this section and subdivision
24(e) of Section 14041.5, for purposes of making the computations
25required by Section 8 of Article XVI of the California Constitution,
26two billion seven hundred eighty million five hundred twenty-six
27thousand dollars ($2,780,526,000) of the warrants drawn in July
282014 pursuant to subdivisions (f) and (g) of this section and
29subdivision (e) of Section 14041.5 shall be deemed to be “General
30Fund revenues appropriated for school districts,” as defined in
31subdivision (c) of Section 41202, for the 2013-14 fiscal year, and
32included within the “total allocations to school districts and
33community college districts from General Fund proceeds of taxes
34appropriated pursuant to Article XIII B,” as defined in subdivision
35(e) of Section 41202, for the 2013-14 fiscal year.

end insert
36begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 17080 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
37read:end insert

38

17080.  

begin delete(a)end deletebegin deleteend deleteNotwithstanding any otherbegin delete provision ofend delete law,
39whenever moneys transferred to the General Fund each year from
40(1) moneys deposited in the Public School Building Loan Fund
P41   1pursuant to Section 15735, and (2) moneys deposited in the State
2School Building Aid Fund pursuant to Section 16080, are in excess
3of the amounts required to reimburse the General Fund on account
4of principal and interest due and payable for that fiscal year on all
5school building aid bonds outstanding against the state, an amount
6equal to such excess is appropriated from the General Fund for
7purposes of thebegin delete Leroy F. Greene State School Building
8Lease-Purchase Law of 1976 (Chapter 12 (commencing with
9Section 17000)) and Section 17584. The Controller shall transfer,
10as directed by the State Allocation Board, such appropriated
11amount to the State School Building Lease-Purchase Fund and to
12the State School Deferred Maintenance Fund, which is hereby
13established.end delete
begin insert School Facilities Emergency Repair Account
14established pursuant to Section 17592.71. The Controller shall
15transfer the appropriated amount to the School Facilities
16Emergency Repair Account.end insert

begin delete

17(b) In addition to the amount transferred pursuant to subdivision
18(a), the Controller shall transfer annually from the General Fund
19to the State School Deferred Maintenance Fund an amount equal
20to any amount transferred to or deposited in the General Fund as
21a result of repayment of any loan made by the board pursuant to
22Section 17005.15.

end delete
begin delete

23(c) Notwithstanding Section 13340 of the Government Code,
24the State School Deferred Maintenance Fund is continuously
25appropriated for the purposes for which it is established.

end delete
26begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 24214 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
27by Section 28 of Chapter 559 of the Statutes of 2013, is amended
28to read:end insert

29

24214.  

(a) A member retired for service under this part may
30perform retired member activities, but the member shall not make
31contributions to the retirement fund or accrue service credit based
32on compensation earned from that service. The employer shall
33maintain accurate records of the earnings of the retired member
34and report those earnings monthly to the system and retired member
35as described in Section 22461.

36(b) If a member is retired for service under this part, the
37annualized rate of pay for retired member activities, performed by
38that member shall not be less than the minimum, nor exceed the
39maximum, paid by the employer to other employees performing
40comparable duties.

P42   1(c) A member retired for service under this part shall not be
2required to reinstate for performing retired member activities.

3(d) A member retired for service under this part may earn
4compensation for performing retired member activities in any one
5school year up to the limitation specified in subdivision (f) without
6a reduction in his or her retirement allowance.

7(e) The postretirement compensation limitation provisions set
8forth in this section are not applicable to compensation earned for
9the performance of retired member activities that are not wholly
10or in part supported by state, local, or federal funds.

11(f) (1) The limitation that shall apply to the compensation paid
12in cash to the retired member for performance of retired member
13activities, excluding reimbursements paid by an employer for
14expenses incurred by the member in which payment of the expenses
15by the member is substantiated, shall, in any one school year, be
16an amount calculated by the system each July 1 equal to one-half
17of the median final compensation of all members who retired for
18service during the fiscal year ending in the previous calendar year.

19(2) For written agreements pertaining to the performance of
20retired member activities entered into, extended, renewed, or
21amended on or after January 1, 2014, the limitation in paragraph
22(1) shall also apply to payments, including, but not limited to,
23those for participation in a deferred compensation plan; to purchase
24an annuity contract, tax-deferred retirement plan, or insurance
25program; and for contributions to a plan that meets the requirements
26of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title
2726 of the United States Code when the cost is covered by an
28employer.

29(g) If a member retired for service under this part earns
30compensation for performing retired member activities, in excess
31of the limitation specified in subdivision (f), and if that
32compensation is not exempt from that limitation under subdivision
33(e) or (h) or any other law, the member’s retirement allowance
34shall be reduced by the amount of the excess compensation. The
35amount of the reduction may be equal to the monthly allowance
36payable but shall not exceed the amount of the annual allowance
37payable under this part for the fiscal year in which the excess
38compensation was earned after any reduction made in accordance
39with subdivision (h) of Section 24214.5.

P43   1(h) The limitation specified in this section is not applicable to
2compensation paid to a member retired for service under this part
3who has returned to work after the date of retirement:

4(1) As a trustee appointed by the Superintendentbegin delete of Public
5Instructionend delete
pursuant to Section 41320.1.

6(2) As a fiscal adviser or fiscal expert appointed by a county
7superintendent of schools pursuant to Article 2 (commencing with
8Section 42122) of Chapter 6 of Part 24 of Division 3 of Title 2.

9(3) As a receiver or trustee appointed by the begin delete State Board of
10Educationend delete
begin insert state boardend insert pursuant to Article 3.1 (commencing with
11Section 52055.57) of Chapter 6.1 of Part 28 of Division 4 of Title
122.

13(4) As a special trustee appointed by the Board of Governors
14of the California Community Colleges pursuant to Section 84040.

15(i) Thebegin delete Superintendent of Public Instruction,end deletebegin insert Superintendent,end insert
16 the Executive Director of the State Board of Education, the
17Chancellor of the California Community Colleges, or the county
18superintendent of schools exercising the exemption pursuant to
19subdivision (h) shall submit all documentation required by the
20system to substantiate the eligibility of the retired member for the
21exemption, including compliance with subdivisions (j) and (k).
22The documentation shall be received by the system prior to the
23retired member’s performance of retired member activities.

24(j) Subdivision (h) shall not apply to a retired member who has
25not attained normal retirement age at the time the compensation
26is earned by the member, received additional service credit pursuant
27to Section 22714 or 22715, or received from any public employer
28any financial inducement to retire in the previous six months. For
29purposes of this section and Section 24214.5, “financial inducement
30to retire” includes, but is not limited to, any form of compensation
31or other payment that is paid directly or indirectly by a public
32employer to the member, even if not in cash, either before or after
33retirement, if the member retires for service on or before a specific
34date or specific range of dates established by the public employer
35on or before the date the inducement is offered. The system shall
36liberally interpret this subdivision to further the Legislature’s intent
37to make subdivision (h) inapplicable to members if the member
38received a financial incentive from any public employer to retire
39or otherwise terminate employment with the public employer.

P44   1(k) The documentation required for subdivision (i) shall include
2certification of the following:

3(1) The position was first advertised for appointment to current
4active or inactive members of the program with the necessary
5qualifications to perform the requirements of the position and no
6qualified current active or inactive member was available to be
7appointed.

8(2) The appointing authority made a good faith effort to hire a
9retired member who reinstated to active membership for the
10position at the same salary that was offered as first advertised
11pursuant to paragraph (1).

12(3) The appointing authority, having tried and failed to hire a
13current active or inactive member or a reinstated retired member,
14hired a retired member and the salary offered to the retired member
15subject to this paragraph does not exceed the salary that was offered
16as first advertised pursuant to paragraph (1).

17(4) The salary paid shall be no greater than the salary offered
18to current active members for the appointed position.

19(l) The amendments to this section enacted during the 1995-96
20Regular Session shall be deemed to have become operative on July
211, 1996.

22(m) The amendments to this section enacted during the second
23year of the 2011-12 Regular Session shall apply to compensation
24paid during the 2012-13 and 2013-14 fiscal years.

25(n) The amendments to this section enacted during the first year
26of the 2013-14 Regular Session shall apply to compensation paid
27on or after January 1, 2014.

28(o) This section shall become inoperative on July 1,begin delete 2014,end deletebegin insert 2017,end insert
29 and, as of January 1,begin delete 2015,end deletebegin insert 2018,end insert is repealed, unless a later enacted
30statute, that becomes operative on or before January 1,begin delete 2015,end deletebegin insert 2018,end insert
31 deletes or extends the dates on which it becomes inoperative and
32is repealed.

33begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 24214 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
34by Section 29 of Chapter 559 of the Statutes of 2013, is amended
35to read:end insert

36

24214.  

(a) A member retired for service under this part may
37perform retired member activities, but the member shall not make
38contributions to the retirement fund or accrue service credit based
39on compensation earned from that service. The employer shall
40maintain accurate records of the earnings of the retired member
P45   1and report those earnings monthly to the system and retired member
2as described in Section 22461.

3(b) If a member is retired for service under this part, the
4annualized rate of pay for retired member activities performed by
5that member shall not be less than the minimum, nor exceed the
6maximum, paid by the employer to other employees performing
7comparable duties.

8(c) A member retired for service under this part shall not be
9required to reinstate for performing retired member activities.

10(d) A member retired for service under this part may earn
11compensation for performing retired member activities in any one
12school year up to the limitation specified in subdivision (f) without
13a reduction in his or her retirement allowance.

14(e) The postretirement compensation limitation provisions set
15forth in this section are not applicable to compensation earned for
16the performance of retired member activities that are not wholly
17or in part supported by state, local, or federal funds.

18(f) (1) The limitation that shall apply to the compensation paid
19in cash to the retired member for performance of retired member
20activities, excluding reimbursements paid by an employer for
21expenses incurred by the member in which payment of the expenses
22by the member is substantiated, shall, in any one school year, be
23an amount calculated by the system each July 1 equal to one-half
24of the median final compensation of all members who retired for
25service during the fiscal year ending in the previous calendar year.

26(2) For written agreements pertaining to the performance of
27retired member activities entered into, extended, renewed, or
28amended on or after January 1, 2014, the limitation in paragraph
29(1) shall also apply to payments, including, but not limited to,
30those for participation in a deferred compensation plan; to purchase
31an annuity contract, tax-deferred retirement plan, or insurance
32program; and for contributions to a plan that meets the requirements
33of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title
3426 of the United States Code when the cost is covered by an
35employer.

36(g) If a member retired for service under this part earns
37compensation for performing retired member activities, in excess
38of the limitation specified in subdivision (f), the member’s
39retirement allowance shall be reduced by the amount of the excess
40compensation. The amount of the reduction may be equal to the
P46   1monthly allowance payable but may not exceed the amount of the
2annual allowance payable under this part for the fiscal year in
3which the excess compensation was earned after any reduction
4made in accordance with subdivision (h) of Section 24214.5.

5(h) The language of this section derived from the amendments
6to the section of this number added by Chapter 394 of the Statutes
7of 1995, enacted during the 1995-96 Regular Session, is deemed
8to have become operative on July 1, 1996.

9(i) This section shall become operative on July 1,begin delete 2014.end deletebegin insert 2017.end insert

10begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 41203.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

41203.1.  

(a) For the 1990-91 fiscal year and each fiscal year
13thereafter, allocations calculated pursuant to Section 41203 shall
14be distributed in accordance with calculations provided in this
15section. Notwithstanding Section 41203, and for purposes of this
16section, school districts, community college districts, and direct
17elementary and secondary level instructional services provided by
18the State of California shall be regarded as separate segments of
19public education, and each of these three segments of public
20education shall be entitled to receive respective shares of the
21amount calculated pursuant to Section 41203 as though the
22calculation made pursuant to subdivision (b) of Section 8 of Article
23XVI of the California Constitution were to be applied separately
24to each segment and the base year for purposes of this calculation
25 under paragraph (1) of subdivision (b) of Section 8 of Article XVI
26of the California Constitution were based on the 1989-90 fiscal
27year. Calculations made pursuant to this subdivision shall be made
28so that each segment of public education is entitled to the greater
29of the amounts calculated for that segment pursuant to paragraph
30(1) or (2) of subdivision (b) of Section 8 of Article XVI of the
31California Constitution.

32(b) If the single calculation made pursuant to Section 41203
33yields a guaranteed amount of funding that is less than the sum of
34the amounts calculated pursuant to subdivision (a), the amount
35calculated pursuant to Section 41203 shall be prorated for the three
36segments of public education.

37(c) Notwithstanding any other law, this section does not apply
38to the 1992-93 tobegin delete 2013-14end deletebegin insert 2014-15end insert fiscal years, inclusive.

P47   1begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 41207.3 of the end insertbegin insertEducation Codeend insertbegin insert, as added by
2Section 4 of Chapter 3 of the 4th Extraordinary Session of the
3Statutes of 2009, is amended to read:end insert

4

41207.3.  

(a) Notwithstanding Section 41206, the minimum
5state educational funding obligation for school districts and
6community college districts pursuant to subdivision (b) of Section
78 of Article XVI of the California Constitution is determined to
8be the following:

9(1) Fifty-three billion three hundred forty-five million four
10hundred twenty thousand dollars ($53,345,420,000) for the
112005-06 fiscal year, with an outstanding balance of one billion
12one hundred ten million five hundred sixteen thousand dollars
13($1,110,516,000). The outstanding balance is appropriated and
14allocated pursuant to Article 3.7 (commencing with Section
1552055.700) of Chapter 6.1 of Part 28.

16(2) Fifty-five billion two hundred fifty-one million two hundred
17sixty-six thousand dollars ($55,251,266,000) for the 2006-07 fiscal
18year, with an outstanding balance of two hundred eleven million
19five hundred thirty-three thousand dollars ($211,533,000).
20Commencing with thebegin delete 2014-15end deletebegin insert 2015-16end insert fiscal year, the Legislature
21shall appropriate the outstanding balance and specify in the annual
22Budget Act or other statute makingbegin delete suchend deletebegin insert thoseend insert appropriations that
23the funds shall be used for any one-time purpose so long as those
24appropriations are made for allocation to school districts or
25community college districts.

26(3) Fifty-six billion five hundred seventy-seven million four
27hundred ninety-one thousand dollars ($56,577,491,000) for the
282007-08 fiscal year, with no outstanding balance.

29(b) (1) The amount determined pursuant to paragraph (1) of
30subdivision (a)begin delete of this sectionend delete shall be deemed certified for
31purposes of Section 41206 when the conditions set forth in
32subdivision (c) of Section 41207.1 are met.

33(2) The amount determined pursuant to paragraph (2) of
34subdivision (a)begin delete of this sectionend delete shall be deemed certified for
35purposes of Section 41206 upon appropriation of the full amount
36of the outstanding balance determined for that year.

37(3) The amount determined pursuant to paragraph (3) of
38subdivision (a)begin delete of this sectionend delete is deemed to be certified for purposes
39of Section 41206 upon enactment of this section.

P48   1begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 41841.9 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
2read:end insert

begin insert
3

begin insert41841.9.end insert  

(a) For the 2014-15 fiscal year, this article shall
4apply to a charter school whose charter was granted by its
5chartering authority after July 1, 2014.

6(b) This section shall become inoperative on July 1, 2015, and,
7as of January 1, 2016, is repealed, unless a later enacted statute,
8that becomes operative on or before January 1, 2016, deletes or
9extends the dates on which it becomes inoperative and is repealed.

end insert
10begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 42127 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
11read:end insert

12

42127.  

(a) On or before July 1 of each year, the governing
13board of each school district shall accomplish the following:

14(1) Hold a public hearing on the budget to be adopted for the
15subsequent fiscal year. The budget to be adopted shall be prepared
16in accordance with Section 42126. The agenda for that hearing
17shall be posted at least 72 hours before the public hearing and shall
18include the location where the budget will be available for public
19inspection.

20(A) For the 2011-12 fiscal year, notwithstanding any of the
21standards and criteria adopted by the state board pursuant to Section
2233127, each school district budget shall project the same level of
23revenue per unit of average daily attendance as it received in the
242010-11 fiscal year and shall maintain staffing and program levels
25commensurate with that level.

26(B) For the 2011-12 fiscal year, the school district shall not be
27required to demonstrate that it is able to meet its financial
28obligations for the two subsequent fiscal years.

29(2) begin insert(A)end insertbegin insertend insertAdopt a budget. Not later than five days after that
30adoption or by July 1, whichever occurs first, the governing board
31of the school district shall file that budget with the county
32superintendent of schools. The budget and supporting data shall
33be maintained and made available for public review. If the
34governing board of the school district does not want all or a portion
35of the property tax requirement levied for the purpose of making
36payments for the interest and redemption charges on indebtedness
37as described in paragraph (1) or (2) of subdivision (b) of Section
381 of Article XIII A of the California Constitution, the budget shall
39include a statement of the amount or portion for which a levy shall
40not be made. For the 2014-15 fiscal year and each fiscal year
P49   1thereafter, the governing board of the school district shall not adopt
2a budget before the governing board of the school district adopts
3a local control and accountability plan, if an existing local control
4and accountability plan or annual update to a local control and
5accountability plan is not effective for the budget year. The
6governing board of a school district shall not adopt a budget that
7does not include the expenditures necessary to implement the local
8control and accountability plan or the annual update to a local
9control and accountability plan that is effective during the
10subsequent fiscal year.

begin insert

11(B) Commencing with budgets adopted for the 2015-16 fiscal
12year, the governing board of a school district that proposes to
13adopt a budget, or revise a budget pursuant to subdivision (e),
14that includes a combined assigned and unassigned ending fund
15balance in excess of the minimum recommended reserve for
16economic uncertainties adopted by the state board pursuant to
17subdivision (a) of Section 33128, shall, at the public hearing held
18pursuant to paragraph (1), provide all of the following for public
19review and discussion:

end insert
begin insert

20(i) The minimum recommended reserve for economic
21uncertainties for each fiscal year identified in the budget.

end insert
begin insert

22(ii) The combined assigned and unassigned ending fund balances
23that are in excess of the minimum recommended reserve for
24economic uncertainties for each fiscal year identified in the budget.

end insert
begin insert

25(iii) A statement of reasons that substantiates the need for an
26assigned and unassigned ending fund balance that is in excess of
27the minimum recommended reserve for economic uncertainties
28for each fiscal year that the school district identifies an assigned
29and unassigned ending fund balance that is in excess of the
30minimum recommended reserve for economic uncertainties, as
31identified pursuant to clause (ii).

end insert
begin insert

32(C) The governing board of a school district shall include the
33information required pursuant to subparagraph (B) in its budgetary
34submission each time it files an adopted or revised budget with
35the county superintendent of schools. The information required
36pursuant to subparagraph (B) shall be maintained and made
37available for public review.

end insert

38(b) The county superintendent of schools may accept changes
39in any statement included in the budget, pursuant to subdivision
40(a), of the amount or portion for which a property tax levy shall
P50   1not be made. The county superintendent of schools or the county
2auditor shall compute the actual amounts to be levied on the
3property tax rolls of the school district for purposes that exceed
4apportionments to the school district pursuant to Chapter 6
5(commencing with Section 95) of Part 0.5 of Division 1 of the
6Revenue and Taxation Code. Each school district shall provide all
7data needed by the county superintendent of schools or the county
8auditor to compute the amounts. On or before August 15, the
9county superintendent of schools shall transmit the amounts
10computed to the county auditor who shall compute the tax rates
11necessary to produce the amounts. On or before September 1, the
12county auditor shall submit the rate computed to the board of
13supervisors for adoption.

14(c) The county superintendent of schools shall do all of the
15following:

16(1) Examine the adopted budget to determine whether it
17complies with the standards and criteria adopted by the state board
18pursuant to Section 33127 for application to final local educational
19agency budgets. The county superintendent of schools shall
20identify, if necessary, technical corrections that are required to be
21made to bring the budget into compliance with those standards
22and criteria.

23(2) Determine whether the adopted budget will allow the school
24district to meet its financial obligations during the fiscal year and
25is consistent with a financial plan that will enable the school district
26to satisfy its multiyear financial commitments. In addition to his
27or her own analysis of the budget of each school district, the county
28superintendent of schools shall review and consider studies, reports,
29evaluations, or audits of the school district that were commissioned
30by the school district, the county superintendent of schools, the
31Superintendent, and state control agencies and that contain
32evidence that the school district is showing fiscal distress under
33the standards and criteria adopted in Section 33127 or that contain
34a finding by an external reviewer that more than 3 of the 15 most
35common predictors of a school district needing intervention, as
36determined by the County Office Fiscal Crisis and Management
37Assistance Team, are present. The county superintendent of schools
38shall either conditionally approve or disapprove a budget that does
39not provide adequate assurance that the school district will meet
40its current and future obligations and resolve any problems
P51   1identified in studies, reports, evaluations, or audits described in
2this paragraph.

3(3) Determine whether the adopted budget includes the
4expenditures necessary to implement the local control and
5accountability plan or annual update to the local control and
6accountability plan approved by the county superintendent of
7schools.

begin insert

8(4) Determine whether the adopted budget includes a combined
9assigned and unassigned ending fund balance that exceeds the
10minimum recommended reserve for economic uncertainties. If the
11adopted budget includes a combined assigned and unassigned
12ending fund balance that exceeds the minimum recommended
13reserve for economic uncertainties, the county superintendent of
14schools shall verify that the school district complied with the
15requirements of subparagraphs (B) and (C) of paragraph (2) of
16subdivision (a).

end insert

17(d) (1) On or before August 15, the county superintendent of
18schools shall approve, conditionally approve, or disapprove the
19adopted budget for each school district. For the 2014-15 fiscal
20year and each fiscal year thereafter, the county superintendent of
21schools shall disapprove a budget if the county superintendent of
22schools determines that the budget does not include the
23expenditures necessary to implement a local control and
24accountability plan or an annual update to the local control and
25accountability plan approved by the county superintendent of
26schools. If a school district does not submit a budget to the county
27superintendent of schools, the county superintendent of schools
28shall develop, at school district expense, a budget for that school
29district by September 15 and transmit that budget to the governing
30board of the school district. The budget prepared by the county
31superintendent of schools shall be deemed adopted, unless the
32county superintendent of schools approves any modifications made
33by the governing board of the school district.begin insert The budget prepared
34by the county superintendent of schools shall also comply with the
35requirements of subparagraph (B) of paragraph (2) of subdivision
36(a).end insert
The approved budget shall be used as a guide for the school
37district’s priorities. The Superintendent shall review and certify
38the budget approved by the county. If, pursuant to the review
39conducted pursuant to subdivision (c), the county superintendent
40of schools determines that the adopted budget for a school district
P52   1does not satisfy paragraph (1), (2),begin delete or (3)end deletebegin insert (3), or (4)end insert of that
2subdivision, he or she shall conditionally approve or disapprove
3the budget and, not later than August 15, transmit to the governing
4board of the school district, in writing, his or her recommendations
5regarding revision of the budget and the reasons for those
6recommendations, including, but not limited to, the amounts of
7any budget adjustments needed before he or she can approve that
8budget. The county superintendent of schools may assign a fiscal
9adviser to assist the school district to develop a budget in
10compliance with those revisions. In addition, the county
11superintendent of schools may appoint a committee to examine
12and comment on the superintendent’s review and recommendations,
13subject to the requirement that the committee report its findings
14to the county superintendent of schools no later than August 20.
15For the 2011-12 fiscal year, notwithstanding any of the standards
16and criteria adopted by the state board pursuant to Section 33127,
17the county superintendent of schools, as a condition on approval
18of a school district budget, shall not require a school district to
19project a lower level of revenue per unit of average daily attendance
20than it received in the 2010-11 fiscal year nor require the school
21district to demonstrate that it is able to meet its financial obligations
22for the two subsequent fiscal years.

23(2)  Notwithstanding any other provision of this article, for the
242014-15 fiscal year and each fiscal year thereafter, the budget
25shall not be adopted or approved by the county superintendent of
26schools before a local control and accountability plan or update to
27an existing local control and accountability plan for the budget
28year is approved.

29(e) On or before September 8, the governing board of the school
30district shall revise the adopted budget to reflect changes in
31projected income or expenditures subsequent to July 1, and to
32include any response to the recommendations of the county
33superintendent of schools, shall adopt the revised budget, and shall
34file the revised budget with the county superintendent of schools.
35Before revising the budget, the governing board of the school
36district shall hold a public hearing regarding the proposed revisions,
37to be conducted in accordance with Section 42103. In addition, if
38the adopted budget is disapproved pursuant to subdivision (d), the
39governing board of the school district and the county
40superintendent of schools shall review the disapproval and the
P53   1recommendations of the county superintendent of schools regarding
2revision of the budget at the public hearing. The revised budget
3and supporting data shall be maintained and made available for
4public review.

5(1) For the 2011-12 fiscal year, notwithstanding any of the
6standards and criteria adopted by the state board pursuant to Section
733127, each school district budget shall project the same level of
8revenue per unit of average daily attendance as it received in the
92010-11 fiscal year and shall maintain staffing and program levels
10commensurate with that level.

11(2) For the 2011-12 fiscal year, the school district shall not be
12required to demonstrate that it is able to meet its financial
13obligations for the two subsequent fiscal years.

14(f) On or before September 22, the county superintendent of
15schools shall provide a list to the Superintendent identifying all
16school districts for which budgets may be disapproved.

17(g) (1) The county superintendent of schools shall examine the
18revised budget to determine whether itbegin delete (1)end deletebegin insert (A)end insert complies with the
19standards and criteria adopted by the state board pursuant to Section
2033127 for application to final local educational agency budgets,
21begin delete (2)end deletebegin insert (B)end insert allows the school district to meet its financial obligations
22during the fiscal year,begin delete (3)end deletebegin insert (C)end insert satisfies all conditions established
23by the county superintendent of schools in the case of a
24conditionally approved budget,begin delete and (4)end deletebegin insert (D)end insert is consistent with a
25financial plan that will enable the school district to satisfy its
26multiyear financial commitments, and, not later than October 8,
27shall approve or disapprove the revisedbegin delete budget.end deletebegin insert budget, and (E)
28whether the revised budget complies with the requirements of
29subparagraph (B) of paragraph (2) of subdivision (a).end insert
If the county
30superintendent of schools disapproves the budget, he or she shall
31call for the formation of a budget review committee pursuant to
32Section 42127.1, unless the governing board of the school district
33and the county superintendent of schools agree to waive the
34requirement that a budget review committee be formed and the
35department approves the waiver after determining that a budget
36review committee is not necessary. Upon the grant of a waiver,
37the county superintendent of schools immediately has the authority
38and responsibility provided in Section 42127.3. Upon approving
39a waiver of the budget review committee, the department shall
40ensure that a balanced budget is adopted for the school district by
P54   1November 30. If no budget is adopted by November 30, the
2Superintendent may adopt a budget for the school district. The
3 Superintendent shall report to the Legislature and the Director of
4Finance by December 10 if any school district, including a school
5district that has received a waiver of the budget review committee
6process, does not have an adopted budget by November 30. This
7report shall include the reasons why a budget has not been adopted
8by the deadline, the steps being taken to finalize budget adoption,
9the date the adopted budget is anticipated, and whether the
10Superintendent has or will exercise his or her authority to adopt a
11budget for the school district. For the 2011-12 fiscal year,
12notwithstanding any of the standards and criteria adopted by the
13state board pursuant to Section 33127, the county superintendent
14of schools, as a condition on approval of a school district budget,
15shall not require a school district to project a lower level of revenue
16per unit of average daily attendance than it received in the 2010-11
17fiscal year nor require the school district to demonstrate that it is
18able to meet its financial obligations for the two subsequent fiscal
19years.

20(2) Notwithstanding any other law, for the 2014-15 fiscal year
21and each fiscal year thereafter, if the county superintendent of
22schools disapproves the budget for the sole reason that the county
23superintendent of schools has not approved a local control and
24accountability plan or an annual update to the local control and
25accountability plan filed by the school district pursuant to Section
2652061, the county superintendent of schools shall not call for the
27formation of a budget review committee pursuant to Section
2842127.1.

29(h) Not later than October 8, the county superintendent of
30schools shall submit a report to the Superintendent identifying all
31school districts for which budgets have been disapproved or budget
32review committees waived. The report shall include a copy of the
33written response transmitted to each of those school districts
34pursuant to paragraph (1) of subdivision (d).

35(i) Notwithstanding any other provision of this section, the
36budget review for a school district shall be governed by paragraphs
37(1), (2), and (3), rather than by subdivisions (e) and (g), if the
38governing board of the school district so elects and notifies the
39county superintendent of schools in writing of that decision, not
40later than October 31 of the immediately preceding calendar year.
P55   1On or before July 1, the governing board of a school district for
2which the budget review is governed by this subdivision, rather
3than by subdivisions (e) and (g), shall conduct a public hearing
4regarding its proposed budget in accordance with Section 42103.

5(1) If the adopted budget of a school district is disapproved
6pursuant to subdivision (d), on or before September 8, the
7governing board of the school district, in conjunction with the
8 county superintendent of schools, shall review the superintendent’s
9recommendations at a regular meeting of the governing board of
10the school district and respond to those recommendations. The
11response shall include any revisions to the adopted budget and
12other proposed actions to be taken, if any, as a result of those
13recommendations.

14(2) On or before September 22, the county superintendent of
15schools shall provide a list to the Superintendent identifying all
16school districts for which a budget may be tentatively disapproved.

17(3) Not later than October 8, after receiving the response
18required under paragraph (1), the county superintendent of schools
19shall review that response and either approve or disapprove the
20budget. Except as provided in paragraph (2) of subdivision (g), if
21the county superintendent of schools disapproves the budget, he
22or she shall call for the formation of a budget review committee
23pursuant to Section 42127.1, unless the governing board of the
24school district and the county superintendent of schools agree to
25waive the requirement that a budget review committee be formed
26and the department approves the waiver after determining that a
27budget review committee is not necessary. Upon the grant of a
28waiver, the county superintendent has the authority and
29responsibility provided to a budget review committee in Section
3042127.3. Upon approving a waiver of the budget review committee,
31the department shall ensure that a balanced budget is adopted for
32the school district by November 30. The Superintendent shall
33report to the Legislature and the Director of Finance by December
3410 if any school district, including a school district that has received
35a waiver of the budget review committee process, does not have
36an adopted budget by November 30. This report shall include the
37reasons why a budget has not been adopted by the deadline, the
38steps being taken to finalize budget adoption, and the date the
39adopted budget is anticipated. For the 2011-12 fiscal year,
40notwithstanding any of the standards and criteria adopted by the
P56   1state board pursuant to Section 33127, the county superintendent
2of schools, as a condition on approval of a school district budget,
3shall not require a school district to project a lower level of revenue
4per unit of average daily attendance than it received in the 2010-11
5fiscal year nor require the school district to demonstrate that it is
6able to meet its financial obligations for the two subsequent fiscal
7years.

8(4) Not later than 45 days after the Governor signs the annual
9Budget Act, the school district shall make available for public
10review any revisions in revenues and expenditures that it has made
11to its budget to reflect the funding made available by that Budget
12Act.

13(j) Any school district for which the county board of education
14serves as the governing board of the school district is not subject
15to subdivisions (c) to (h), inclusive, but is governed instead by the
16budget procedures set forth in Section 1622.

17begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 42127.01 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
18read:end insert

begin insert
19

begin insert42127.01.end insert  

(a) In a fiscal year immediately after a fiscal year
20in which a transfer is made into the Public School System
21Stabilization Account, a school district budget that is adopted or
22revised pursuant to Section 42127 shall not contain a combined
23assigned or unassigned ending fund balance that is in excess of
24the following:

25(1) For school districts with fewer than 400,000 units of average
26daily attendance, the sum of the school district’s applicable
27minimum recommended reserve for economic uncertainties adopted
28by the state board pursuant to subdivision (a) of Section 33128,
29multiplied by two.

30(2) For school districts with more than 400,000 units of average
31daily attendance, the sum of the school district’s applicable
32minimum recommended reserve for economic uncertainties adopted
33by the state board pursuant to subdivision (a) of Section 33128,
34multiplied by three.

35(b) A county superintendent of schools may grant a school
36district under its jurisdiction an exemption from the requirements
37of subdivision (a) for up to two consecutive fiscal years within a
38three-year period if the school district provides documentation
39indicating that extraordinary fiscal circumstances, including, but
40not limited to, multiyear infrastructure or technology projects,
P57   1substantiate the need for a combined assigned or unassigned
2ending fund balance that is in excess of the minimum recommended
3reserve for economic uncertainties. As a condition of receiving an
4exception, a school district shall do all of the following:

5(1) Provide a statement that substantiates the need for an
6 assigned and unassigned ending fund balance that is in excess of
7the minimum recommended reserve for economic uncertainties.

8(2) Identify the funding amounts in the budget adopted by the
9school district that are associated with the extraordinary fiscal
10circumstances.

11(3) Provide documentation that no other fiscal resources are
12available to fund the extraordinary fiscal circumstances.

13(c) This section shall become operative on December 15, 2014,
14only if Assembly Constitutional Amendment No. 1 of the 2013-14
15Second Extraordinary Session is approved by the voters at the
16November 4, 2014, statewide general election. If Assembly
17Constitutional Amendment No. 1 of the 2013-14 Second
18Extraordinary Session is not approved by the voters at the
19November 4, 2014, statewide general election, this section shall
20not become operative and is repealed on January 1, 2015.

end insert
21begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 44235.2 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
22read:end insert

begin insert
23

begin insert44235.2.end insert  

(a) If in any month there are insufficient moneys in
24the Teacher Credentials Fund to satisfy monthly payroll obligations
25and scheduled claims, and there are moneys in the Test
26Development and Administration Account not required to meet
27any demand that has accrued or may accrue against it, the
28Controller shall transfer moneys from the Test Development and
29Administration Account to the Teacher Credentials Fund to the
30extent necessary to meet the immediate obligations of the Teacher
31Credentials Fund.

32(b) Moneys transferred pursuant to subdivision (a) shall be
33returned to the Test Development and Administration Account as
34soon as there are sufficient moneys in the Teacher Credentials
35Fund to do so, but by no later than 60 days after the transfer was
36made.

37(c) If sufficient moneys do not accumulate in the Teacher
38Credentials Fund within 60 days after the transfer was made,
39whatever portion of the amount received from the Test
40Development and Administration Account that is in the Teacher
P58   1Credentials Fund at that time shall be returned to the Test
2Development and Administration Account. The remaining balance
3of the outstanding transfer, if any, shall be returned thereafter in
4monthly installments as moneys accumulate in the Teacher
5Credentials Fund. If the Teacher Credentials Fund fails to return
6the full amount of any transfer by the end of the fiscal year, the
7Teacher Credentials Fund shall be ineligible to receive further
8transfers until it has returned the full amount previously transferred
9from the Test Development and Administration Account.

end insert
10begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 44374.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

44374.5.  

(a) The commission may chargebegin delete a feeend deletebegin insert feesend insert tobegin delete recoverend delete
13begin insert coverend insert the standard costs of reviewing newbegin insert and existingend insert educator
14preparation programs.begin delete Applicable local educational agencies and
15institutions of higher educationend delete
begin insert Sponsors of educator preparation
16programsend insert
shall submit the established fee to the commission when
17submitting a proposal for a newbegin delete program.end deletebegin insert program, and, as
18determined by the commission, for the review of an existing
19program. The commission shall not waive the fee for the review
20of existing programs for in-kind contributions from sponsors of
21educator preparation programs.end insert
The commission may review the
22establishedbegin delete feeend deletebegin insert feesend insert on a periodic basis and adjust thebegin delete feeend deletebegin insert feesend insert as
23necessary. The commission shall notify the chairpersons of the
24committees and subcommittees in each house of the Legislature
25that consider the State Budget and the Department of Finance at
26least 30 days before implementing thebegin delete feeend deletebegin insert feesend insert and at least 30 days
27before making any subsequent fee adjustments.

28(b) The commission may charge commission-approved entities
29a fee to recover the costs of accreditation activities in excess of
30the regularly scheduled data reports, program assessments, and
31accreditation site visits. This includes, but is not necessarily limited
32to, accreditation revisits, addressing stipulations, or program
33assessment reviews beyond those supported within the standard
34costs of review.begin delete Institutions of higher educationend deletebegin insert Sponsors of
35educator preparation programsend insert
shall submit the established fee
36to the commission in the year that the extraordinary activities are
37performed. The commission may review the established fee on a
38periodic basis, and adjust the fee as necessary. The commission
39shall notify the chairpersons of the committees and subcommittees
40in each house of the Legislature that consider the State Budget and
P59   1the Department of Finance at least 30 days before implementing
2the fee and at least 30 days before making any subsequent fee
3adjustments.

4begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 47612.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

47612.1.  

begin insert(a)end insertbegin insertend insertExcept for the requirement that a pupil be a
7California resident, subdivision (b) of Section 47612 shall not
8apply to a charter schoolbegin delete program thatend deletebegin insert whose charter was granted
9by its chartering authority before July 1, 2014, and thatend insert
provides
10instruction exclusively in partnership with any of the following:

begin delete

11(a)

end delete

12begin insert(1)end insert The federal Workforce Investment Act of 1998begin delete (Pub. L.end delete
13begin insert (Public Lawend insert No. 105-220; 29 U.S.C. Sec.begin delete 2801,end deletebegin insert 2801end insert et seq.).

begin delete

14(b)

end delete

15begin insert(2)end insert Federally affiliated Youth Build programs.

begin delete

16(c)

end delete

17begin insert(3)end insert Federal job corps training or instruction provided pursuant
18to a memorandum of understanding with the federal provider.

begin delete

19(d)

end delete

20begin insert(4)end insert The California Conservation Corps or local conservation
21corps certified by the California Conservation Corps pursuant to
22Sections 14406 or 14507.5 of the Public Resources Code.

begin insert

23(b) This section shall become inoperative on July 1, 2015, and,
24as of January 1, 2016, is repealed, unless a later enacted statute,
25that becomes operative on or before January 1, 2016, deletes or
26extends the dates on which it becomes inoperative and is repealed.

end insert
27begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 47612.1 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
28read:end insert

begin insert
29

begin insert47612.1.end insert  

(a) Except for the requirement that a pupil be a
30California resident, subdivision (b) of Section 47612 shall not
31apply to a charter school program that provides instruction
32exclusively in partnership with any of the following:

33(1) The federal Workforce Investment Act of 1998 (Public Law
34No. 105-220; 29 U.S.C. Sec. 2801 et seq.).

35(2) Federally affiliated Youth Build programs.

36(3) Federal job corps training or instruction provided pursuant
37to a memorandum of understanding with the federal provider.

38(4) The California Conservation Corps or local conservation
39corps certified by the California Conservation Corps pursuant to
40Sections 14406 or 14507.5 of the Public Resources Code.

P60   1(b) This section shall become operative on July 1, 2015.

end insert
2begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 47644 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
3read:end insert

4

47644.  

For each charter school deemed a local educational
5agency for the purposes of special education, an amount equal to
6the amount computed pursuant to Section 56836.08 for the special
7education local plan area in which the charter school is included
8shall be apportioned by the Superintendentbegin delete of Public Instructionend delete
9 pursuant to the local allocation plan developed pursuant to
10subdivision (i) of Section 56195.7 or Section 56836.05, or both.
11If the charter school is a participant in a local plan that only
12includes other charter schools pursuant to subdivision (f) of Section
1356195.1, the amount computed pursuant to Sectionbegin delete 56836.11, as
14adjusted pursuant to the incidence multiplier set forth in Section
1556836.155,end delete
begin insert 56836.11end insert shall be apportioned by thebegin delete superintendentend delete
16begin insert Superintendentend insert for each unit of average daily attendance reported
17pursuant to subdivision (a) of Section 56836.06.

18begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 48000 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
19read:end insert

20

48000.  

(a) A child shall be admitted to a kindergarten
21maintained by the school district at the beginning of a school year,
22or at a later time in the same year if the child will have his or her
23fifth birthday on or before one of the following dates:

24(1) December 2 of the 2011-12 school year.

25(2) November 1 of the 2012-13 school year.

26(3) October 1 of the 2013-14 school year.

27(4) September 1 of the 2014-15 school year and each school
28year thereafter.

29(b) The governing board of a school district maintaining one or
30 more kindergartens may, on a case-by-case basis, admit to a
31kindergarten a child having attained the age of five years at any
32time during the school year with the approval of the parent or
33guardian, subject to the following conditions:

34(1) The governing board determines that the admittance is in
35the best interests of the child.

36(2) The parent or guardian is given information regarding the
37advantages and disadvantages and any other explanatory
38information about the effect of this early admittance.

39(c) As a condition of receipt of apportionment for pupils in a
40transitional kindergarten program pursuant to subdivision (g) of
P61   1Section 46300, a school district or charter school shall ensure the
2following:

3(1) In the 2012-13 school year, a child who will have his or her
4fifth birthday between November 2 and December 2 shall be
5admitted to a transitional kindergarten program maintained by the
6school district.

7(2) In the 2013-14 school year, a child who will have his or her
8fifth birthday between October 2 and December 2 shall be admitted
9to a transitional kindergarten program maintained by the school
10district.

11(3) In the 2014-15 school year and each school year thereafter,
12a child who will have his or her fifth birthday between September
132 and December 2 shall be admitted to a transitional kindergarten
14program maintained by the school district.

15(d) For purposes of this section, “transitional kindergarten”
16means the first year of a two-year kindergarten program that uses
17a modified kindergarten curriculum that is age and developmentally
18appropriate.

19(e) A transitional kindergarten shall not be construed as a new
20program or higher level of service.

begin insert

21(f) It is the intent of the Legislature that transitional kindergarten
22curriculum be aligned to the California Preschool Learning
23Foundations developed by the department.

end insert
begin insert

24(g) As a condition of receipt of apportionment for pupils in a
25transitional kindergarten program pursuant to subdivision (g) of
26Section 46300, a school district or charter school shall ensure that
27teachers assigned to a transitional kindergarten classroom after
28July 1, 2015, have been issued at least one credential by the
29Commission on Teacher Credentialing, and shall, by August 1,
302020, have one of the following:

end insert
begin insert

31(1) At least 24 units in early childhood education, or childhood
32development, or both.

end insert
begin insert

33(2) As determined by the local educational agency employing
34the teacher, professional experience in a classroom setting with
35preschool age children that is comparable to the 24 units of
36education described in paragraph (1).

end insert
begin insert

37(3) A child development permit issued by the Commission on
38Teacher Credentialing.

end insert
39begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 49430.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P62   1

49430.5.  

(a) The reimbursement a school receives for free and
2reduced-price meals sold or served to pupils in elementary, middle,
3or high schools included within a school district, charter school,
4or county office of education shall be twenty-two andbegin delete twenty-nineend delete
5begin insert forty-eightend insert hundredths centsbegin delete ($0.2229)end deletebegin insert ($0.2248)end insert per meal, and,
6for meals served in child care centers and homes, the
7reimbursement shall be sixteen andbegin delete six tenthsend deletebegin insert seventy-four
8hundredthsend insert
centsbegin delete ($0.1660)end deletebegin insert ($0.1674)end insert per meal.

9(b) To qualify for the reimbursement for free and reduced-price
10meals provided to pupils in elementary, middle, or high schools,
11a school shall follow the Enhanced Food Based Meal Pattern,
12Nutrient Standard Meal Planning, or Traditional Meal Pattern
13developed by the United States Department of Agriculture or the
14SHAPE Menu Patterns developed by the state.

15(c) The reimbursement rates set forth in this section shall be
16adjusted annually for increases in cost of living in the same manner
17set forth in Section 42238.1.

18begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 51745.6 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

51745.6.  

(a) begin insert(1)end insertbegin insertend insert The ratio of average daily attendance for
21independent study pupils 18 years of age or less to school district
22full-time equivalent certificated employees responsible for
23independent study,begin insert for the applicable grade span,end insert calculated as
24specified by thebegin delete State Department of Education,end deletebegin insert department,end insert shall
25not exceed the equivalent ratio of pupils to full-time certificated
26employees for all other educational programs operated by the
27schoolbegin delete district.end deletebegin insert district for the applicable grade span, unless a new
28higher or lower grade span ratio for all other educational
29programs offered within the respective grade span is negotiated
30in a collective bargaining agreement or a memorandum of
31understanding is entered into that indicates an existing collective
32bargaining agreement contains an alternative grade span ratio
33for the applicable grade span.end insert
The ratio of average daily attendance
34for independent study pupils 18 years of age or less to county office
35of education full-time equivalent certificated employees responsible
36for independent study,begin insert for the applicable grade span,end insert to be
37calculated in a manner prescribed by thebegin delete State Department of
38Education,end delete
begin insert department,end insert shall not exceed the equivalent ratio of
39pupils to full-time certificated employees for all other educational
40programs operated by the high school or unified school district
P63   1with the largest average daily attendance of pupils in thatbegin delete county.end delete
2begin insert county for the applicable grade span, unless a new higher or lower
3grade span ratio for all other educational programs offered within
4the respective grade span is negotiated in a collective bargaining
5agreement or a memorandum of understanding is entered into that
6indicates an existing collective bargaining agreement contains an
7alternative grade span ratio for the applicable grade span.end insert
The
8computation ofbegin delete thoseend deletebegin insert theend insert ratios shall be performed annually by the
9reporting agency at the time of, and in connection with, the second
10principal apportionment report to thebegin delete Superintendent of Public
11Instruction.end delete
begin insert Superintendent.end insert

begin insert

12(2) For purposes of this section, the following grade spans shall
13apply:

end insert
begin insert

14(A) Kindergarten and grades 1 to 3, inclusive.

end insert
begin insert

15(B) Grades 4 to 6, inclusive.

end insert
begin insert

16(C) Grades 7 to 8, inclusive.

end insert
begin insert

17(D) Grades 9 to 12, inclusive.

end insert

18(b) Only those units of average daily attendance for independent
19study that reflect a pupil-teacher ratio that does not exceed the
20begin delete ratioend deletebegin insert applicable grade span ratiosend insert described in subdivision (a)
21shall be eligible for apportionment pursuant to Sectionbegin delete 42238.5,
22for school districts, and Section 2558, for county offices of
23education.end delete
begin insert 2575, for county offices of education, and Section
2442238.05, for school districts.end insert
Nothing in this section shall prevent
25a school district or county office of education from serving
26additional units of average daily attendance greater than thebegin delete ratioend deletebegin insert end insert
27begin insertapplicable grade span ratiosend insert described in subdivision (a), except
28that those additional units shall not be funded pursuant to Section
29begin delete 42238.5 or Section 2558.end deletebegin insert 2575 or 42238.05, as applicable. If a
30school district, charter school, or county office of education has
31 a memorandum of understanding to provide instruction in
32coordination with the school district, charter school, or county
33office of education at which a pupil is enrolled, then the applicable
34grade span ratios that shall apply for purposes of this paragraph
35are the ratios for the local educational agency providing the
36independent study program to the pupil pursuant to Section
3751749.5.end insert

38(c) The calculations performed for purposes of this section shall
39not include either of the following:

P64   1(1) The average daily attendance generated by special education
2pupils enrolled in special day classes on a full-time basis, or the
3teachers of those classes.

4(2) The average daily attendance or teachers in necessary small
5schools that are eligible to receive funding pursuant to Article 4
6(commencing with Section 42280) of Chapter 7 of Part 24.

begin delete

7(d) The pupil-teacher ratio described in subdivision (a) in a
8unified school district participating in the class size reduction
9program pursuant to Chapter 6.10 (commencing with Section
1052120) may, at the school district’s option, be calculated separately
11for kindergarten and grades 1 to 6, inclusive, and for grades 7 to
1212, inclusive.

end delete
begin delete

13(e)

end delete

14begin insert(d)end insert Thebegin delete pupils-to-certificated-employee ratioend deletebegin insert applicable
15pupils-to-certificated-employee grade span ratiosend insert
described in
16subdivision (a) may, in a charter school, be calculated by using a
17fixed pupils-to-certificated-employee ratio of 25 tobegin delete one,end deletebegin insert 1,end insert or by
18being a ratio of less than 25 pupils per certificated employee. All
19charter school pupils, regardless of age, shall be included in
20begin deletepupil-to-certificated-employeeend deletebegin insert the applicable
21pupil-to-certificated-employee grade spanend insert
ratio calculations.

22begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 51747 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
23read:end insert

24

51747.  

A school district or county office of education shall not
25be eligible to receive apportionments for independent study by
26pupils, regardless of age, unless it has adopted written policies,
27and has implemented those policies, pursuant to rules and
28regulations adopted by thebegin delete Superintendent of Public Instruction,end delete
29begin insert Superintendent,end insert that include, but are not limited to, all of the
30following:

31(a) The maximum length of time, by grade level and type of
32program, that may elapse between the time an independent study
33assignment is made and the date by which the pupil must complete
34the assigned work.

35(b) The number of missed assignments that will be allowed
36before an evaluation is conducted to determine whether it is in the
37best interests of the pupil to remain in independent study, or
38whether he or she should return to the regular school program. A
39written record of the findings of any evaluation made pursuant to
40this subdivision shall be treated as a mandatory interim pupil
P65   1record. The record shall be maintained for a period of three years
2from the date of the evaluation and, if the pupil transfers to another
3California public school, the record shall be forwarded to that
4school.

5(c) A requirement that a current written agreement for each
6independent study pupil shall be maintained onbegin delete fileend deletebegin insert file,end insert including,
7but not limited to, all of the following:

8(1) The manner, time, frequency, and place for submitting a
9pupil’s assignments and for reporting his or her progress.

10(2) The objectives and methods of study for the pupil’s work,
11and the methods utilized to evaluate that work.

12(3) The specific resources, including materials and personnel,
13that will be made available to the pupil.

14(4) A statement of the policies adopted pursuant to subdivisions
15(a) and (b) regarding the maximum length of time allowed between
16the assignment and the completion of a pupil’s assigned work, and
17the number of missed assignments allowedbegin delete prior toend deletebegin insert beforeend insert an
18evaluation of whether or not the pupil should be allowed to
19continue in independent study.

20(5) The duration of the independent study agreement, including
21the beginning and ending dates for the pupil’s participation in
22independent study under the agreement. No independent study
23agreement shall be valid for any period longer than onebegin delete semester,
24or one-half year for a school on a year-round calendar.end delete
begin insert school year.end insert

25(6) A statement of the number of course credits or, for the
26elementary grades, other measures of academic accomplishment
27appropriate to the agreement, to be earned by the pupil upon
28completion.

29(7) The inclusion of a statement in each independent study
30agreement that independent study is an optional educational
31alternative in which no pupil may be required to participate. In the
32case of a pupil who is referred or assigned to any school, class, or
33program pursuant to Section 48915 or 48917, the agreement also
34shall include the statement that instruction may be provided to the
35pupil through independent study only if the pupil is offered the
36alternative of classroom instruction.

37(8) begin insert(A)end insertbegin insertend insertEach written agreement shall be signed,begin delete prior toend deletebegin insert beforeend insert
38 the commencement of independent study, by the pupil, the pupil’s
39parent, legal guardian, or caregiver, if the pupil is less than 18
40years of age, the certificated employee who has been designated
P66   1as having responsibility for the general supervision of independent
2study, and all persons who have direct responsibility for providing
3assistance to the pupil. For purposes of this paragraph “caregiver”
4means a person who has met the requirements of Part 1.5
5(commencing with Section 6550) of the Family Code.

begin insert

6(B) A signed written agreement may be maintained on file
7electronically.

end insert
8begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 51747.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
9to read:end insert

10

51747.5.  

(a) The independent study by each pupilbegin delete or studentend delete
11 shall be coordinated, evaluated, and, notwithstanding subdivision
12(a) of Section 46300, shall be under the general supervision of an
13employee of the schoolbegin delete districtend deletebegin insert district, charter school,end insert or county
14office of education who possesses a valid certification document
15pursuant to Section 44865 or an emergency credential pursuant to
16Section 44300, registered as required by law.

17(b) Schoolbegin delete districts andend deletebegin insert districts, charter schools, andend insert county
18offices of education may claim apportionment credit for
19independent study only to the extent of the time value of pupilbegin delete or
20studentend delete
work products, as personally judged in each instance by a
21certificated teacher.

begin insert

22(c) For purposes of this section, school districts, charter schools,
23and county offices of education shall not be required to sign and
24date pupil work products when assessing the time value of pupil
25work products for apportionment purposes.

end insert
26begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 51749.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
27read:end insert

begin insert
28

begin insert51749.5.end insert  

(a) Notwithstanding any other law, and commencing
29with the 2015-16 school year, a school district, charter school,
30or county office of education may, for pupils enrolled in
31kindergarten and grades 1 to 12, inclusive, provide independent
32study courses pursuant to the following conditions:

33(1) The governing board or body of a participating school
34district, charter school, or county office of education adopts
35policies, at a public meeting, that comply with the requirements
36of this section and any applicable regulations adopted by the state
37board.

38(2) A signed learning agreement is completed and on file
39pursuant to Section 51749.6.

P67   1(3) Courses are taught under the general supervision of
2certificated employees who hold the appropriate subject matter
3credential pursuant to Section 44300 or 44865, or subdivision (l)
4of Section 47605, meet the requirements for highly qualified
5teachers pursuant to the federal No Child Left Behind Act of 2001
6(20 U.S.C. Sec. 6301 et seq.), and are employed by the school
7district, charter school, or county office of education at which the
8pupil is enrolled, or by a school district, charter school, or county
9office of education that has a memorandum of understanding to
10provide the instruction in coordination with the school district,
11charter school, or county office of education at which the pupil is
12enrolled.

13(4) (A) Courses are annually certified, by school district,
14charter school, or county office of education governing board or
15body resolution, to be of the same rigor and educational quality
16as equivalent classroom-based courses, and shall be aligned to
17all relevant local and state content standards.

18(B) This certification shall, at a minimum, include the duration,
19number of equivalent daily instructional minutes for each
20schoolday that a pupil is enrolled, number of equivalent total
21instructional minutes, and number of course credits for each
22course. This information shall be consistent with that of equivalent
23classroom-based courses.

24(5) Pupils enrolled in courses authorized by this section shall
25meet the applicable age requirements established pursuant to
26Sections 46300.1, 46300.4, 47612, and 47612.1.

27(6) Pupils enrolled in courses authorized by this section shall
28meet the applicable residency and enrollment requirements
29established pursuant to Sections 46300.2, 47612, 48204, and
3051747.3.

31(7) (A) Certificated employees and each pupil shall
32communicate in-person, by telephone, or by any other live visual
33or audio connection no less than twice per calendar month to
34assess whether each pupil is making satisfactory educational
35progress.

36(B) For purposes of this section, satisfactory educational
37progress includes, but is not limited to, applicable statewide
38accountability measures and the completion of assignments,
39examinations, or other indicators that evidence that the pupil is
40working on assignments, learning required concepts, and
P68   1progressing toward successful completion of the course, as
2determined by certificated employees providing instruction.

3(C) If satisfactory educational progress is not being made,
4certificated employees providing instruction shall notify the pupil
5and, if the pupil is less than 18 years of age, the pupil’s parent or
6legal guardian, and conduct an evaluation to determine whether
7it is in the best interest of the pupil to remain in the course or
8whether he or she should be referred to an alternative program,
9which may include, but is not limited to, a regular school program.
10A written record of the findings of an evaluation made pursuant
11to this subdivision shall be treated as a mandatory interim pupil
12record. The record shall be maintained for a period of three years
13from the date of the evaluation and, if the pupil transfers to another
14California public school, the record shall be forwarded to that
15school.

16(D) Written or computer-based evidence of satisfactory
17educational progress, as defined in subparagraph (B), shall be
18retained for each course and pupil. At a minimum, this evidence
19shall include a grade book or summary document that, for each
20course, lists all assignments, examinations, and associated grades.

21(8) A proctor shall administer examinations.

22(9) (A) Statewide testing results for pupils enrolled in any
23course authorized pursuant to this section shall be reported and
24assigned to the school or charter school at which the pupil is
25enrolled, and to any school district, charter school, or county office
26of education within which that school’s or charter school’s testing
27results are aggregated.

28(B) Statewide testing results for pupils enrolled in a course or
29courses pursuant to this section shall be disaggregated for
30purposes of comparing the testing results of those pupils to the
31testing results of pupils enrolled in classroom-based courses.

32(10) A pupil shall not be required to enroll in courses authorized
33by this section.

34(11) The pupil-to-certificated-employee ratio limitations
35established pursuant to Section 51745.6 are applicable to courses
36authorized by this section.

37(12) For each pupil, the combined equivalent daily instructional
38minutes for enrolled courses authorized by this section and enrolled
39courses authorized by all other laws and regulations shall meet
40the minimum instructional day requirements applicable to the local
P69   1educational agency. Pupils enrolled in courses authorized by this
2section shall be offered the minimum annual total equivalent
3instructional minutes pursuant to Sections 46200 to 46208,
4inclusive, and Section 47612.5.

5(13) Courses required for high school graduation or for
6admission to the University of California or California State
7University shall not be offered exclusively through independent
8study.

9(14) A pupil participating in independent study shall not be
10assessed a fee prohibited by Section 49011.

11(15) A pupil shall not be prohibited from participating in
12independent study solely on the basis that he or she does not have
13the materials, equipment, or Internet access that are necessary to
14participate in the independent study course.

15(b) For purposes of computing average daily attendance for
16each pupil enrolled in one or more courses authorized by this
17section, the following computations shall apply:

18(1) (A) For each schoolday, add the combined equivalent daily
19instructional minutes, as certified in paragraph (4) of subdivision
20(a), for courses authorized by this section in which the pupil is
21enrolled.

22(B) For each schoolday, add the combined daily instructional
23minutes of courses authorized by all other laws and regulations
24in which the pupil is enrolled and for which the pupil meets
25applicable attendance requirements.

26(C) For each schoolday, add the sum of subparagraphs (A) and
27(B).

28(2) If subparagraph (C) of paragraph (1) meets applicable
29minimum schoolday requirements for each schoolday, and all
30other requirements in this section have been met, credit each
31schoolday that the pupil is demonstrating satisfactory educational
32progress pursuant to the requirements of this section, with up to
33one school day of attendance.

34(3) (A) Using credited schoolday attendance pursuant to
35paragraph (2), calculate average daily attendance pursuant to
36Section 41601 or 47612, whichever is applicable, for each pupil.

37(B) The average daily attendance computed pursuant to this
38subdivision shall not result in more than one unit of average daily
39attendance per pupil.

P70   1(4) Notwithstanding any other law, average daily attendance
2computed for pupils enrolled in courses authorized by this section
3shall not be credited with average daily attendance other than
4what is specified in this section.

5(c) For purposes of this section, ”equivalent total instructional
6minutes” means the same number of minutes as required for an
7equivalent classroom-based course.

8(d) (1) The Superintendent shall conduct an evaluation of
9independent study courses offered pursuant to this section and
10report findings to the Legislature and the Director of Finance no
11later than September 1, 2019. The report shall, at a minimum,
12compare the academic performance of pupils in independent study
13with demographically similar pupils enrolled in equivalent
14classroom-based courses.

15(2) The requirement for submitting a report imposed under
16paragraph (1) is inoperative on September 1, 2023, pursuant to
17Section 10231.5 of the Government Code.

18(3) A report to be submitted pursuant to paragraph (1) shall be
19submitted in compliance with Section 9795 of the Government
20Code.

end insert
21begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 51749.6 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
22read:end insert

begin insert
23

begin insert51749.6.end insert  

(a) Before enrolling a pupil in a course authorized
24by Section 51749.5, each school district, charter school, or county
25office of education shall provide the pupil and, if the pupil is less
26than 18 years of age, the pupil’s parent or legal guardian, with a
27written learning agreement that includes all of the following:

28(1) A summary of the policies and procedures adopted by the
29governing board or body of the school district, charter school, or
30county office of education pursuant to Section 51749.5, as
31applicable.

32(2) The duration of the enrolled course or courses, the duration
33of the learning agreement, and the number of course credits for
34each enrolled course consistent with the certifications adopted by
35the governing board or body of the school district, charter school,
36or county office of education pursuant to Section 51749.5. The
37duration of a learning agreement shall not exceed a school year
38or span multiple school years.

39(3) The learning objectives and expectations for each course,
40including, but not limited to, a description of how satisfactory
P71   1educational progress is measured and when a pupil evaluation is
2required to determine whether the pupil should remain in the
3course or be referred to an alternative program, which may
4include, but is not limited to, a regular school program.

5(4) The specific resources, including materials and personnel,
6that will be made available to the pupil.

7(5) A statement that the pupil is not required to enroll in courses
8authorized pursuant to Section 51749.5.

9(b) (1) The learning agreement shall be signed by the pupil
10and, if the pupil is less than 18 years of age, the pupil’s parent or
11legal guardian, and all certificated employees providing instruction
12before instruction may commence.

13(2) The signed learning agreement constitutes permission from
14a pupil’s parent or legal guardian, if the pupil is less than 18 years
15of age, for the pupil to receive instruction through independent
16study.

17(3) A physical or electronic copy of the signed learning
18agreement shall be retained by the school district, county office
19of education, or charter school for at least three years and as
20appropriate for auditing purposes.

21(4) For purposes of this section, an electronic copy includes a
22computer or electronic stored image of an original document,
23including, but not limited to, portable document format, JPEG, or
24other digital image file type, that may be sent via fax machine,
25email, or other electronic means.

end insert
26begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 52055.770 of the end insertbegin insertEducation Codeend insertbegin insert is amended
27to read:end insert

28

52055.770.  

(a) School districts and chartering authorities shall
29receive funding at the following rate, on behalf of funded schools:

30(1) For kindergarten and grades 1 to 3, inclusive, five hundred
31dollars ($500) per enrolled pupil in funded schools.

32(2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
33enrolled pupil in funded schools.

34(3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
35per enrolled pupil in funded schools.

36(b) For purposes of subdivision (a), enrollment of a pupil in a
37funded school in the prior fiscal year shall be based on data from
38 the CBEDS. For the 2007-08 fiscal year, the funded rates shall be
39reduced to reflect the percentage difference in the total amounts
40appropriated for purposes of this section in that year compared to
P72   1the amounts appropriated for purposes of this section in the
22008-09 fiscal year.

3(c) The following amounts are hereby appropriated from the
4General Fund for the purposes set forth in subdivision (g):

5(1) For the 2007-08 fiscal year, three hundred million dollars
6($300,000,000), to be allocated as follows:

7(A) Thirty-two million dollars ($32,000,000) for transfer by the
8Controller to Section B of the State School Fund for allocation by
9the Chancellor of the California Community Colleges to
10community colleges for the purpose of providing funding to the
11community colleges to improve and expand career technical
12education in public secondary education and lower division public
13higher education pursuant to Section 88532, including the hiring
14of additional faculty to expand the number of career technical
15education programs and course offerings.

16(B) Two hundred sixty-eight million dollars ($268,000,000) for
17transfer by the Controller to Section A of the State School Fund
18for allocation by the Superintendent pursuant to this article.

19(2) For each of the 2008-09 and 2011-12 fiscal years, four
20hundred fifty million dollars ($450,000,000) per fiscal year, to be
21allocated as follows:

22(A) Forty-eight million dollars ($48,000,000) for transfer by
23the Controller to Section B of the State School Fund for allocation
24by the Chancellor of the California Community Colleges to
25community colleges as required under subdivision (e) for the
262008-09 fiscal year, and under subdivision (f) for the 2011-12
27fiscal year.

28(B) Four hundred two million dollars ($402,000,000) for transfer
29by the Controller to Section A of the State School Fund for
30allocation by the Superintendent pursuant to this article.

31(3) For the 2009-10 fiscal year, thirty million dollars
32($30,000,000), to be allocated for transfer by the Controller to
33Section B of the State School Fund for allocation by the Chancellor
34of the California Community Colleges to community colleges as
35required under subdivision (e).

36(4) For the 2010-11 fiscal year, four hundred twenty million
37dollars ($420,000,000), to be allocated as follows:

38(A) Eighteen million dollars ($18,000,000) for transfer by the
39Controller to Section B of the State School Fund for allocation by
P73   1the Chancellor of the California Community Colleges to
2community colleges as required under subdivision (e).

3(B) Four hundred two million dollars ($402,000,000) for transfer
4by the Controller to Section A of the State School Fund for
5allocation by the Superintendent pursuant to this article.

6(5) For the 2014-15 fiscal year,begin insert four hundred nine million six
7hundred fourteen thousand dollars ($409,614,000), the amount
8determined by the Director of Finance to beend insert
the amount of the
9difference between the sum of amounts appropriated under
10paragraphs (1) to (4), inclusive, and Section 41207.6, and the total
11fiscal settlement agreed to by the parties in California Teachers
12Association, et al. v. Arnold Schwarzenegger (Super. Ct.,
13Sacramento County, 2006, No. 05CS01165), to be allocated
14pursuant to subparagraphs (A)begin delete and (B).end deletebegin insert to (C), inclusive.end insert The sum
15of all fiscal years of funding provided pursuant to this section and
16Section 41207.6 shall not exceed the total funds agreed to by those
17parties, in accordance with both of the following:

18(A) begin deleteEleven percent end deletebegin insertForty-eight million dollars ($48,000,000) end insert
19for transfer by the Controller to Section B of the State School Fund
20for allocation by the Chancellor of the California Community
21Colleges to community colleges as required under subdivisionbegin delete (e).end delete
22begin insert (d) of Section 52055.780.end insert

23(B) begin deleteEighty-nine percent end deletebegin insert(i)end insertbegin insertend insertbegin insertTwo hundred sixty-seven million
24dollars ($267,000,000) end insert
for transfer by the Controller to Section A
25of the State School Fund for allocation by the Superintendent
26pursuant to this article.

begin insert

27(ii) Notwithstanding any other law, funds appropriated for the
282014-15 fiscal year pursuant to clause (i) that are not allocated
29to schools with kindergarten or grades 1 to 12, inclusive, due to
30program termination or otherwise, shall be reallocated within the
31fiscal year for purposes of this article. The amount reallocated
32shall be distributed based on the proportionate share of funding
33 each school that was funded received pursuant to this paragraph
34for the 2014-15 fiscal year.

end insert
begin insert

35(C) Ninety-four million six hundred fourteen thousand dollars
36($94,614,000) for transfer by the Controller to the School Facilities
37Emergency Repair Account pursuant to Section 17592.71.

end insert

38(6) Commencing with the 2010-11 fiscal year, payments made
39pursuant to this subdivision shall be made only on or after October
408 of each fiscal year.

begin delete

P74   1(d) The annual appropriation made under this section shall
2continue to be made until the Director of Finance reports to the
3Legislature, along with all proposed adjustments to the Governor’s
4Budget pursuant to Section 13308 of the Government Code, that
5the sum of appropriations made and allocated pursuant to
6subdivision (c) equals the total outstanding balance of the minimum
7state educational funding obligation to school districts and
8community college districts required by Section 8 of Article XVI
9of the California Constitution and Chapter 213 of the Statutes of
102004 for the 2004-05 and 2005-06 fiscal years, as determined in
11subdivision (a) or (b) of Section 41207.1.

end delete
begin delete

12(e)

end delete

13begin insert(d)end insert The sum transferred under subparagraph (A) of paragraph
14(2) of subdivision (c) for the 2008-09 fiscal year shall be allocated
15by the Chancellor of the California Community Colleges as
16follows:

17(1) Thirty-eight million dollars ($38,000,000) to the community
18colleges for the purpose of providing funding to the community
19colleges to improve and expand career technical education in public
20secondary education and lower division public higher education
21pursuant to Section 88532, including the hiring of additional faculty
22to expand the number of career technical education programs and
23course offerings.

24(2) Ten million dollars ($10,000,000) to the community colleges
25for the purpose of providing one-time block grants to community
26college districts to be used for one-time items of expenditure,
27including, but not limited to, the following purposes:

28(A) Physical plant, scheduled maintenance, deferred
29maintenance, and special repairs.

30(B) Instructional materials and support.

31(C) Instructional equipment, including equipment related to
32career technical education, with priority for nursing program
33equipment.

34(D) Library materials.

35(E) Technology infrastructure.

36(F) Hazardous substances abatement, cleanup, and repair.

37(G) Architectural barrier removal.

38(H) State-mandated local programs.

39(3) The Chancellor of the California Community Colleges shall
40allocate the amount allocated pursuant to paragraph (2) to
P75   1community college districts on an equal amount per actual full-time
2equivalent student (FTES) reported for the prior fiscal year, except
3that each community college district shall be allocated an amount
4not less than fifty thousand dollars ($50,000), and the equal amount
5per unit of FTES shall be computed accordingly.

6(4) Funds allocated under paragraph (2) shall supplement and
7not supplant existing expenditures and may not be counted as the
8community college district contribution for physical plant projects
9and instructional material purchases funded in Item 6870-101-0001
10of Section 2.00 of the annual Budget Act.

begin delete

11(f)

end delete

12begin insert(e)end insert For each of the 2011-12 and 2014-15 fiscal years, the sum
13transferred pursuant to subparagraph (A) of paragraph (2) and
14subparagraph (A) of paragraph (5) of subdivision (c) shall be
15allocated by the Chancellor of the California Community Colleges
16to the community colleges for the purpose of improving and
17expanding career technical education in public secondary education
18and lower division public higher education pursuant to Section
1988532, including the hiring of additional faculty to expand the
20number of career technical education programs and course
21offerings.

begin delete

22(g)

end delete

23begin insert(f)end insert The appropriations made under subdivision (c) and the
24amount specified in Section 41207.6 are for the purpose of
25discharging in full the minimum state educational funding
26obligation to school districts and community college districts
27pursuant to Section 8 of Article XVI of the California Constitution
28and Chapter 213 of the Statutes of 2004 for the 2004-05 fiscal
29year, and the outstanding maintenance factor for the 2005-06 fiscal
30year resulting from this additional payment of the Chapter 213
31amount for the 2004-05 fiscal year.

begin delete

32(h)

end delete

33begin insert(g)end insert For purposes of making the computations required by Section
348 of Article XVI of the California Constitution, including
35 computation of the state’s minimum funding obligation to school
36districts and community college districts in subsequent fiscal years,
37the first one billion six hundred twenty million nine hundred
38twenty-eight thousand dollars ($1,620,928,000) in appropriations
39made pursuant to subdivision (c) and the amount specified in
40Section 41207.6 shall be deemed to be “General Fund revenues
P76   1appropriated for school districts,” as defined in subdivision (c) of
2Section 41202 and “General Fund Revenues appropriated for
3community college districts,” as defined in subdivision (d) of
4Section 41202, for the 2004-05 fiscal year and included within
5the “total allocations to school districts and community college
6districts from General Fund proceeds of taxes appropriated pursuant
7to Article XIII B,” as defined in subdivision (e) of Section 41202,
8for that fiscal year. The remaining appropriations made pursuant
9to subdivision (c) and the amount specified in Section 41207.6
10shall be deemed to be “General Fund revenues appropriated for
11school districts,” as defined in subdivision (c) of Section 41202,
12and “General Fund revenues appropriated for community college
13districts,” as defined in subdivision (d) of Section 41202, for the
142005-06 fiscal year and included within the “total allocations to
15school districts and community college districts from General Fund
16proceeds of taxes appropriated pursuant to Article XIII B,” as
17defined in subdivision (e) of Section 41202, for that fiscal year.

begin delete

18(i)

end delete

19begin insert(h)end insert From funds appropriated under subdivision (c), the
20Superintendent shall provide both of the following:

21(1) Not more than two million dollars ($2,000,000) annually to
22county superintendents of schools to carry out the requirements
23of this article, allocated in a manner similar to that created to carry
24out the new duties of those superintendents under the settlement
25agreement in the case of Williams v. California (Super. Ct. San
26Francisco, No. CGC-00-312236).

27(2) Five million dollars ($5,000,000) in the 2007-08 fiscal year
28to support regional assistance under Section 52055.730. It is the
29intent of the Legislature that the Superintendent and the president
30of the state board or his or her designee, along with county offices
31of education, seek foundational and other financial support to
32sustain and expand these services. Funds provided under this
33paragraph that are not expended in the 2007-08 fiscal year shall
34be reappropriated for use in subsequent fiscal years for the same
35purpose.

begin delete

36(j)

end delete

37begin insert(i)end insert Notwithstanding any other law, funds appropriated under
38subdivision (c) but not allocated to schools with kindergarten or
39grades 1 to 12, inclusive, in a fiscal year, due to program
40termination in any year or otherwise, shall be reappropriated in
P77   1furtherance of the purposes of this article. First priority for those
2amounts shall be to provide cost-of-living increases and enrollment
3growth adjustments to funded schools.

begin delete

4(k)

end delete

5begin insert(j)end insert The sum of three hundred fifty thousand dollars ($350,000)
6is hereby appropriated from the General Fund to the department
7to fund 3.0 positions to implement this article. Funding provided
8under this subdivision is not part of funds provided pursuant to
9subdivision (c).

10begin insert

begin insertSEC. 41.end insert  

end insert

begin insertChapter 16 (commencing with Section 53010) is
11added to Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert,
12to read:end insert

begin insert

13 

14Chapter  begin insert16.end insert California Career Pathways Trust
15

 

16

begin insert53010.end insert  

The California Career Pathways Trust is hereby
17established as a state education and economic and workforce
18development initiative with the goal of preparing pupils in
19kindergarten and grades 1 to 12, inclusive, to successfully
20transition to postsecondary education and training and to
21employment in high-skill, high-wage, and high-growth or emerging
22sectors of the state’s economy.

23

begin insert53011.end insert  

Contingent upon funding provided for this purpose in
24the annual Budget Act, the department shall administer the
25California Career Pathways Trust as a competitive grant program
26for kindergarten and grades 1 to 14, inclusive. Recipients shall do
27all of the following:

28(a) Prioritize work-based learning opportunities, as defined in
29Section 51760.1, for pupils and students in partnership with
30regional business and industry, state and local governmental
31entities, and nonprofit and community-based organizations.

32(b) Define the labor market of the regional economy in a manner
33that identifies high-skill, high-wage, high-growth jobs in the current
34regional economy or in emerging economic sectors.

35(c) Establish or strengthen existing regional collaborative
36relationships and partnerships among business entities, schools
37serving pupils in kindergarten and grades 1 to 12, inclusive, and
38postsecondary educational agencies, organizations that provide
39apprenticeship opportunities, and nonprofit or government entities.

P78   1(d) Develop and integrate standards-based academics with a
2career-relevant, sequenced curriculum following industry-themed
3pathways that are aligned to high-skill, high-wage, high-growth
4jobs in the current regional economy, or in emerging regional
5economic sectors.

6(e) Provide articulated pathways from high school to
7postsecondary education and training that are aligned with the
8workforce development needs of regional economies.

9(f) Ensure that career pathway programs are designed and
10implemented in a manner that leads students to a postsecondary
11degree or certification in a high-skill, high-wage, and high-growth
12or emerging field.

13(g) Leverage and build on any of the following:

14(1) Existing structures, requirements, and resources of the Carl
15D. Perkins Career and Technical Education Improvement Act of
162006, California Partnership Academies, and Regional
17Occupational Centers and Programs.

18(2) The California Community Colleges Economic and
19Workforce Development Program.

20(3) Matching resources and in-kind contributions from public,
21private, and philanthropic sources.

22

begin insert53012.end insert  

A grant recipient under this chapter may be a school
23district, a county office of education, a direct-funded charter
24school, or a community college district.

25

begin insert53013.end insert  

The following are conditions of receipt of California
26Career Pathways Trust funds:

27(a) A grant recipient shall not use the funds to supplant other
28funding from state, federal, or any other public or private sources
29that would otherwise be used in the absence of funding provided
30by a California Career Pathways Trust grant.

31(b) A grant recipient shall identify and set aside funding within
32its own budget and obtain funding commitments from program
33partners sufficient to support the ongoing costs of the program for
34multiple years following the expiration of grant funding pursuant
35to this chapter.

36(c) A grant recipient subject to the requirements of Sections
3752060 and 52061, Sections 52066 and 52067, or Section 47606.5
38shall ensure that the activities supported by the California Career
39Pathways Trust funds are in alignment with the priorities and
P79   1activities of the grant recipient’s local control and accountability
2plan.

3(d) A grant recipient subject to the requirements of subdivision
4(c) of Section 52302 shall ensure that the activities supported by
5the California Career Pathways Trust funds are in alignment with
6the elements of the plan identified in that section.

7(e) A grant recipient shall annually collect and submit data on
8outcome measures to the department, which shall include, but are
9not limited to, all of the following:

10(1) Pupil and student academic performance indicators.

11(2) The number and rate of school or program graduates.

12(3) Attainment of certificates, transfer readiness, and
13postsecondary enrollment.

14(4) Transitions to appropriate employment, apprenticeships, or
15job training.

16

begin insert53014.end insert  

The Superintendent shall consult with the Chancellor
17of the California Community Colleges, state workforce investment
18organizations, and organizations representing business in the
19development of the request for grant applications and in the
20consideration of grant applications under this chapter.

21

begin insert53015.end insert  

For purposes of administering the California Career
22Pathways Trust, the Superintendent may do any of the following:

23(a) Establish a structure for awarding grants on a regional or
24local basis as defined by the Superintendent.

25(b) Determine specific funding amount categories and the
26number of grants to be awarded in each category.

27(c) Distribute funding on a multiyear schedule, and establish a
28process for monitoring the use of the funding, and, if necessary,
29cease distribution of funding and recover previously distributed
30funding in the case of a recipient’s failure to comply with a grant
31award condition.

32(d) Require grant recipients to submit program reports pursuant
33to a schedule determined by the Superintendent.

34(e) Set aside up to 1 percent of the total amount provided for in
35the trust for one or both of the following purposes:

36(1) To provide planning grants.

37(2) To contract with a local educational agency for the provision
38of technical assistance to applicants and grant recipients.

P80   1

begin insert53016.end insert  

For purposes of considering competitive priorities for
2the California Career Pathways Trust, the Superintendent shall
3do all of the following:

4(a) Consider how to prioritize grants to applicants in regions
5with higher-than-state-average rates of high school dropouts as
6measured by the California Longitudinal Pupil Achievement Data
7System.

8(b) Provide special consideration to an applicant or applicants
9seeking to establish or strengthen legal career pathways and
10promote a better understanding of the role and operations of state
11and federal courts and their relationship to the other branches of
12government.

13(c) Provide special consideration to an applicant or applicants
14seeking to establish or strengthen career pathways that include
15both high school opportunities and at least one of the following
16significant postsecondary pathways: a degree pursuant to Section
1778041, if that section is added by Senate Bill 850 of the 2013-14
18Regular Session of the Legislature, or an EdPrize apprenticeship
19opportunity pursuant to Section 33135.5, if that section is added
20by Senate Bill 923 of the 2013-14 Regular Session of the
21Legislature.

end insert
22begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 56836.06 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

56836.06.  

Forbegin delete theend delete purposes of this article, the following terms
25or phrasesbegin delete shallend delete have the following meanings, unless the context
26clearly requires otherwise:

27(a) “Average daily attendance reported for the special education
28local plan area” means the total of the following:

29(1) The total number of units of average daily attendance
30reported for the second principal apportionment pursuant to Section
3141601 for all pupils enrolled in the district or districts that are a
32part of the special education local plan area.

33(2) The total number of units of average daily attendance
34reported pursuant to subdivisions (a) and (b) of Section 41601 for
35all pupils enrolled in schools operated by the county office or
36offices that compose the special education local plan area, or for
37those county offices that are a part of more than one special
38education local plan area, that portion of the average daily
39attendance of pupils enrolled in the schools operated by the county
P81   1office that are under the jurisdiction of the special education local
2plan area.

3(b) Forbegin delete theend delete purposes of computing apportionments pursuant to
4this chapter for the special education local plan area identified as
5the Los Angeles County Juvenile Court and Community
6School/Division of Alternative Education Special Education Local
7Plan Area, the term “average daily attendance”begin delete shall meanend deletebegin insert meansend insert
8 the total number of units of average daily attendance reported for
9the second principal apportionment pursuant to subdivisions (a)
10and (b) of Section 41601 for all pupils enrolled in districts within
11Los Angeles County and all schools operated by the Los Angeles
12County Office of Education and the districts within Los Angeles
13County.

14(c) “Special education local plan area” includes the school
15district or districts and county office or offices of education
16composing the special education local plan area.

17(d) “The fiscal year in which equalization among special
18education local plan areas has been achieved” means the first fiscal
19year in which each special education local plan area is funded at
20or above the statewide target amount per unit of average daily
21attendance, as computed pursuant to Section 56836.11.

22(e) For a charter school deemed a local educational agency for
23begin delete theend delete purposes of special education, an amount equal to the amount
24computed pursuant to Section 56836.08 for the special education
25local plan area in which the charter school is included shall be
26apportioned by thebegin delete State Department of Educationend deletebegin insert departmentend insert
27 pursuant to the local allocation plan developed pursuant to
28subdivision (i) of Section 56195.7 or 56836.05, or both. If the
29charter school is a participant in a local planbegin delete whichend deletebegin insert thatend insert only
30includes other charter schools pursuant to subdivision (f) of Section
3156195.1, the amount computed pursuant to Sectionbegin delete 56836.11, as
32adjusted for any amount for which the special education local plan
33area is eligible pursuant to the incidence multiplier set forth in
34Section 56836.155,end delete
begin insert 56836.11end insert shall be apportioned by the
35department pursuant for each unit of average daily attendance
36reported pursuant to subdivision (a).

37begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 56836.07 of the end insertbegin insertEducation Codeend insertbegin insert is amended
38to read:end insert

39

56836.07.  

For thebegin delete 2004-05end deletebegin insert 2004-05end insert fiscal year and each fiscal
40yearbegin delete thereafter for whichend deletebegin insert thereafter, to the extentend insert there is an
P82   1appropriation in the annual Budget Act forbegin delete this purpose,end deletebegin insert purposes
2of educationally related mental health services,end insert
the Superintendent
3shall allocate funds per unit of average daily attendance, as defined
4in Section 56836.06, reported for the special education local plan
5begin delete area to a special education local plan area for the purposes of
6Section 56331.end delete
begin insert area.end insert For thebegin delete 2004-05end deletebegin insert 2004-05end insert fiscal year and
7each fiscal year thereafter for which there is an appropriation in
8the annual Budget Act for this purpose, the Superintendent shall
9determine a proportionate share, consistent with existing law, to
10the Los Angeles County Juvenile Court and Community
11School/Division of Alternative Education Special Education Local
12Plan Area based on the ratio of the amount per unit of average
13daily attendance determined pursuant to Section 56836.10 to the
14amount of the statewide target per unit of average daily attendance
15determined pursuant to Section 56836.11.

16begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 56836.08 of the end insertbegin insertEducation Codeend insertbegin insert is amended
17to read:end insert

18

56836.08.  

(a) For the 1998-99 fiscal year, the Superintendent
19shall make the following computations to determine the amount
20of funding for each special education local plan area:

21(1) Add the amount of funding per unit of average daily
22attendance computed for the special education local plan area
23pursuant to paragraph (1) of subdivision (a) of Section 56836.10
24to the inflation adjustment computed pursuant to subdivision (d)
25for the 1998-99 fiscal year.

26(2) Multiply the amount computed in paragraph (1) by the units
27of average daily attendance reported for the special education local
28plan area for the 1997-98 fiscal year, exclusive of average daily
29attendance for absences excused pursuant to subdivision (b) of
30Section 46010, as that subdivision read on July 1, 1996.

31(3) Add the actual amount of the equalization adjustment, if
32any, computed for the 1998-99 fiscal year pursuant to Section
3356836.14 to the amount computed in paragraph (2).

34(4) Add or subtract, as appropriate, the adjustment for growth
35computed pursuant to Section 56836.15 from the amount computed
36in paragraph (3).

37(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
38the Superintendent shall make the following computations to
39determine the amount of funding for each special education local
40plan area for the fiscal year in which the computation is made:

P83   1(1) Add the amount of funding per unit of average daily
2attendance computed for the special education local plan area for
3the prior fiscal year pursuant to Section 56836.10 to the inflation
4adjustment computed pursuant to subdivision (d) through the
52012-13 fiscal year, and for the 2013-14 fiscal year and each fiscal
6year thereafter, the inflation adjustment computed pursuant to
7subdivision (g), for the fiscal year in which the computation is
8made.

9(2) Multiply the amount computed in paragraph (1) by the units
10of average daily attendance reported for the special education local
11plan area for the prior fiscal year.

12(3) Add or subtract, as appropriate, the adjustment for growth
13or decline in enrollment, if any, computed for the special education
14local plan area for the fiscal year in which the computation is made
15pursuant to Section 56836.15 from the amount computed in
16paragraph (2).

17(c) For the 1998-99 fiscal year to the 2012-13 fiscal year,
18 inclusive, the Superintendent shall make the following
19computations to determine the amount of General Fund moneys
20that the special education local plan area may claim:

21(1) Add the total of the amount of property taxes for the special
22education local plan area pursuant to Section 2572 for the fiscal
23year in which the computation is made to the amount of federal
24funds allocated for the purposes of paragraph (1) of subdivision
25(a) of Section 56836.09 for the fiscal year in which the computation
26is made.

27(2) Add the amount of funding computed for the special
28education local plan area pursuant to subdivision (a) for the
291998-99 fiscal year, and commencing with the 1999-2000 fiscal
30year to the 2012-13 fiscal year, inclusive, the amount computed
31for the fiscal year in which the computations were made pursuant
32to subdivision (b) to the amount of funding computed for the
33special education local plan area pursuant to Article 3 (commencing
34with Section 56836.16).

35(3) Subtract the sum computed in paragraph (1) from the sum
36computed in paragraph (2).

37(d) For the 1998-99 fiscal year to the 2012-13 fiscal year,
38inclusive, the Superintendent shall make the following
39computations to determine the inflation adjustment for the fiscal
40year in which the computation is made:

P84   1(1) For the 1998-99 fiscal year, multiply the sum of the
2statewide target amount per unit of average daily attendance for
3special education local plan areas for the 1997-98 fiscal year
4computed pursuant to paragraph (3) of subdivision (a) of Section
556836.11 begin delete and the amount determined pursuant to paragraph (e) of
6Section 56836.155 for the 1997-98 fiscal year that corresponds to
7the amount determined pursuant to paragraph (1) of subdivision
8(d) of Section 56836.155end delete
by the inflation adjustment computed
9pursuant to Section 42238.1 for the 1998-99 fiscal year.

10(2) For the 1999-2000 fiscal year to the 2012-13 fiscal year,
11inclusive, multiply the sum of the statewide target amount per unit
12of average daily attendance for special education local plan areas
13for the prior fiscal year computed pursuant to Section 56836.11
14begin delete and the amount determined pursuant to paragraph (1) of subdivision
15(d) of Section 56836.155end delete
for the prior fiscal year by the inflation
16adjustment computed pursuant to Section 42238.1 for the fiscal
17year in which the computation is made.

18(3) For purposes of computing the inflation adjustment for the
19 special education local plan area identified as the Los Angeles
20County Juvenile Court and Community School/Division of
21Alternative Education Special Education Local Plan Area for the
221998-99 fiscal year to the 2012-13 fiscal year, inclusive, the
23Superintendent shall multiply the amount of funding per unit of
24average daily attendance computed for that special education local
25plan area for the prior fiscal year pursuant to Section 56836.10 by
26the inflation adjustment computed pursuant to Section 42238.1 for
27the fiscal year in which the computation is being made.

begin delete

28(e) For the 1998-99 fiscal year and each fiscal year thereafter
29to and including the 2002-03 fiscal year, the Superintendent shall
30perform the calculation set forth in Section 56836.155 to determine
31the adjusted entitlement for the incidence of disabilities for each
32special education local plan area, but this amount shall not be used
33in the next fiscal year to determine the base amount of funding for
34each special education local plan area for the current fiscal year,
35except as specified in this article.

36(f)

end delete

37begin insert(e)end insert Notwithstanding any other law, for the 2013-14 fiscal year
38and each fiscal year thereafter, the Superintendent shall make the
39following computations to determine the amount of General Fund
40moneys that the special education local plan area may claim:

P85   1(1) Determine the total amount of property taxes for the special
2education local plan area pursuant to Section 2572 for the fiscal
3year in which the computation is made.

4(2) Calculate the amount of funding computed for the special
5education local plan area pursuant to subdivision (b) for the fiscal
6year in which the computation is made.

7(3) Subtract the amount computed in paragraph (1) from the
8amount computed in paragraph (2).

begin delete

9(g)

end delete

10begin insert(f)end insert For the 2013-14 fiscal year and each fiscal year thereafter,
11the Superintendent shall make the following computations to
12determine the inflation adjustment for the fiscal year in which the
13computation is made:

14(1) Multiply the statewide target amount per unit of average
15daily attendance for special education local plan areas for the prior
16fiscal year computed pursuant to Section 56836.11 by the inflation
17factor computed pursuant to Section 42238.1, as that section read
18on January 1, 2013, or any successor section of law enacted by the
19Legislature that specifies the inflation factor contained in Section
2042238.1, as that section read on January 1, 2013, for application
21to the 2013-14 fiscal year and each fiscal year thereafter.

22(2) For purposes of computing the inflation adjustment for the
23special education local plan area identified as the Los Angeles
24County Juvenile Court and Community School/Division of
25Alternative Education Special Education Local Plan Area, the
26Superintendent shall multiply the amount of funding per unit of
27average daily attendance computed for that special education local
28plan area for the prior fiscal year pursuant to Section 56836.10 by
29the inflation factor computed pursuant to Section 42238.1, as that
30section read on January 1, 2013, or any successor section of law
31enacted by the Legislature that specifies the inflation factor
32contained in Section 42238.1, as that section read on January 1,
332013, for application to the 2013-14 fiscal year and each fiscal
34year thereafter.

35begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 56836.095 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

56836.095.  

For the 2001-02 fiscal year, thebegin delete superintendentend delete
38begin insert Superintendentend insert shall make the following computations in the
39following order:

begin delete

P86   1(a) Calculate and carry out the equalization adjustments
2authorized pursuant to Sections 56836.12 and 56836.14.

end delete
begin delete

3(b)

end delete

4begin insert(a)end insert Complete the calculations required to adjust the statewide
5total average daily attendance pursuant to Section 56836.156, and
6adjust the statewide target per unit of average daily attendance for
7the 2001-02 fiscal year in accordance with this calculation.

begin delete

8(c) Determine and provide the amount of funding required for
9the special disabilities adjustment pursuant to Section 56836.155.

end delete
begin delete

10(d)

end delete

11begin insert(b)end insert Compute and distribute the amount of funding appropriated
12for increasing the statewide target amount per unit of average daily
13attendance pursuant to Section 56836.158.

begin delete

14(e)

end delete

15begin insert(c)end insert Compute and provide a permanent adjustment for each
16special education local plan area pursuant to Section 56836.159.

17begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 56836.11 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

56836.11.  

(a) For the purpose of computing the equalization
20adjustment for special education local plan areas for the 1998-99
21fiscal year, the Superintendent shall make the following
22computations to determine the statewide target amount per unit of
23average daily attendance for special education local plan areas:

24(1) Total the amount of funding computed for each special
25education local plan area exclusive of the amount of funding
26computed for the special education local plan area identified as
27the Los Angeles County Juvenile Court and Community
28School/Division of Alternative Education Special Education Local
29Plan Area, pursuant to Section 56836.09 for the 1997-98 fiscal
30year.

31(2) Total the number of units of average daily attendance
32reported for each special education local plan area for the 1997-98
33fiscal year, exclusive of average daily attendance for absences
34excused pursuant to subdivision (b) of Section 46010 as that section
35read on July 1, 1996, and exclusive of the units of average daily
36attendance computed for the special education local plan area
37identified as the Los Angeles County Juvenile Court and
38Community School/Division of Alternative Education Special
39Education Local Plan Area.

P87   1(3) Divide the sum computed in paragraph (1) by the sum
2computed in paragraph (2) to determine the statewide target amount
3for the 1997-98 fiscal year.

4(4) Add the amount computed in paragraph (3) to the inflation
5adjustment computed pursuant to subdivision (d) of Section
656836.08 for the 1998-99 fiscal year to determine the statewide
7target amount for the 1998-99 fiscal year.

8(b) Commencing with the 1999-2000 fiscal year to the 2004-05
9fiscal year, inclusive, to determine the statewide target amount per
10unit of average daily attendance for special education local plan
11areas, the Superintendent shall multiply the statewide target amount
12per unit of average daily attendance computed for the prior fiscal
13year pursuant to this section by one plus the inflation factor
14computed pursuant to subdivision (b) of Section 42238.1 for the
15fiscal year in which the computation is made.

begin delete

16(c) Commencing with the 2005-06 fiscal year and ending with
17the 2010-11 fiscal year, to determine the statewide target amount
18per unit of average daily attendance for special education local
19plan areas for the purpose of computing the incidence multiplier
20pursuant to former Section 56836.155, the Superintendent shall
21add the statewide target amount per unit of average daily attendance
22computed for the prior fiscal year for this purpose to the amount
23computed in paragraph (2) of subdivision (d) or paragraph (2) of
24subdivision (e), as appropriate.

25(d)

end delete

26begin insert(c)end insert For the 2005-06 fiscal year, the Superintendent shall make
27the following computation to determine the statewide target amount
28per unit of average daily attendance to determine the inflation
29adjustment pursuant to paragraph (2) of subdivision (d) of Section
3056836.08 and growth pursuant to subdivision (c) of Section
3156836.15, as follows:

32(1) The 2004-05 fiscal year statewide target amount per unit of
33average daily attendance less the sum of the 2004-05 fiscal year
34total amount of federal funds apportioned pursuant to Schedule
35(1) in Item 6110-161-0890 of Section 2.00 of the Budget Act of
362004 for purposes of special education for individuals with
37exceptional needs enrolled in kindergarten and grades 1 to 12,
38inclusive, divided by the total average daily attendance computed
39for the 2004-05 fiscal year.

P88   1(2) Multiply the amount computed in paragraph (1) by the
2inflation factor computed pursuant to subdivision (b) of Section
342238.1 for the fiscal year in which the computation is made.

4(3) Add the amounts computed in paragraphs (1) and (2).

begin delete

5(e)

end delete

6begin insert(d)end insert Commencing with the 2006-07 fiscal year and continuing
7through the 2012-13 fiscal year, inclusive, the Superintendent
8shall make the following computation to determine the statewide
9target amount per unit of average daily attendance for special
10education local plan areas for the purpose of computing the
11inflation adjustment pursuant to paragraph (2) of subdivision (d)
12of Section 56836.08 and growth pursuant to subdivision (c) of
13Section 56836.15:

14(1) The statewide target amount per unit of average daily
15attendance computed for the prior fiscal year pursuant to this
16section.

17(2) Multiply the amount computed in paragraph (1) by the
18inflation factor computed pursuant to subdivision (b) of Section
1942238.1 for the fiscal year in which the computation is made.

20(3) Add the amounts computed in paragraphs (1) and (2).

begin delete

21(f)

end delete

22begin insert(e)end insert For the 2013-14 fiscal year, the Superintendent shall make
23the following computations to determine the statewide target
24amount per unit of average daily attendance to determine the
25inflation adjustment pursuant to subdivisionbegin delete (g)end deletebegin insert (f)end insert of Section
2656836.08 and growth pursuant to subdivision (c) of Section
2756836.15, as follows:

28(1) Total the amount of funding computed for each special
29education local plan area pursuant to the amount computed in
30subdivision (b) of Section 56836.08, including the amount of funds
31appropriated pursuant to Provision 22 of Item 6110-161-0001 of
32Section 2.00 of the Budget Act of 2013, and excluding the amount
33of funding computed for the special education local plan area
34identified as the Los Angeles County Juvenile Court and
35Community School/Division of Alternative Education Special
36Education Local Plan Area, for the 2013-14 fiscal year.

37(2) Total the number of units of average daily attendance
38reported for each special education local plan area for the 2012-13
39fiscal year, exclusive of the units of average daily attendance
40computed for the special education local plan area identified as
P89   1the Los Angeles County Juvenile Court and Community
2School/Division of Alternative Education Special Education Local
3Plan Area.

4(3) Divide the sum computed in paragraph (1) by the sum
5computed in paragraph (2).

begin delete

6(g)

end delete

7begin insert(f)end insert Commencing with the 2014-15 fiscal year and continuing
8each fiscal year thereafter, the Superintendent shall make the
9following computations to determine the statewide target amount
10per unit of average daily attendance for special education local
11plan areas for the purpose of computing the inflation adjustment
12pursuant to subdivisionbegin delete (g)end deletebegin insert (f)end insert of Section 56836.08 and growth
13pursuant to subdivision (c) of Section 56836.15:

14(1) The statewide target amount per unit of average daily
15attendance computed for the prior fiscal year pursuant to this
16section.

17(2) Multiply the amount computed in paragraph (1) by the
18inflation factor computed pursuant to Section 42238.1, as that
19section read on January 1, 2013, or any successor section of law
20enacted by the Legislature that specifies the inflation factor
21contained in Section 42238.1, as that section read on January 1,
222013, for application to the 2014-15 fiscal year and each fiscal
23year thereafter.

24(3) Add the amounts computed in paragraphs (1) and (2).

25begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 56836.15 of the end insertbegin insertEducation Codeend insertbegin insert is amended
26to read:end insert

27

56836.15.  

(a) In order to mitigate the effects of any declining
28enrollment, commencing in the 1998-99 fiscal year, and each fiscal
29year thereafter, the Superintendent shall calculate allocations to
30special education local plan areas based on the average daily
31attendance reported for the special education local plan area for
32the fiscal year in which the computation is made or the prior fiscal
33year, whichever is greater. However, the prior fiscal year average
34daily attendance reported for the special education local plan area
35shall be adjusted for any loss or gain of average daily attendance
36reported for the special education local plan area due to a
37reorganization or transfer of territory in the special education local
38plan area.

39(b) For the 1998-99 fiscal year only, the prior year average
40daily attendance used in this section shall be the 1997-98 average
P90   1daily attendance reported for the special education local plan area,
2exclusive of average daily attendance for absences excused
3pursuant to subdivision (b) of Section 46010, as that section read
4on July 1, 1996.

5(c) If in the fiscal year for which the computation is made, the
6number of units of average daily attendance upon which allocations
7to the special education local plan area are based is greater than
8the number of units of average daily attendance upon which
9allocations to the special education local plan area were based in
10the prior fiscal year, the special education local plan area shall be
11allocated a growth adjustment equal to the product determined by
12multiplying the amounts determined under paragraphs (1) and (2).

13(1) The statewide target amount per unit of average daily
14 attendance for special education local plan areas determined
15pursuant to Sectionbegin delete 56836.11, added to the amount determined in
16paragraph (1) of subdivision (d) of Section 56836.155.end delete
begin insert 56836.11.end insert

17(2) The difference between the number of units of average daily
18attendance upon which allocations to the special education local
19plan area are based for the fiscal year in which the computation is
20made and the number of units of average daily attendance upon
21which allocations to the special education local plan area were
22based for the prior fiscal year.

23(d) If in the fiscal year for which the computation is made, the
24number of units of average daily attendance upon which allocations
25to the special education local plan area are based is less than the
26number of units of average daily attendance upon which allocations
27to the special education local plan area were based in the prior
28fiscal year, the special education local plan area shall receive a
29funding reduction equal to the product determined by multiplying
30the amounts determined under paragraphs (1) and (2):

31(1) The amount of funding per unit of average daily attendance
32computed for the special education local plan area for the prior
33fiscal year. For the 2013-14 fiscal year only, the amount of funding
34per unit of average daily attendance computed for the special
35education local plan area for the 2013-14 fiscal year shall be used
36for this purpose.

37(2) The difference between the number of units of average daily
38attendance upon which allocations to the special education local
39plan area are based for the fiscal year in which the computation is
40made and the number of units of average daily attendance upon
P91   1which allocations to the special education local plan area were
2based for the prior fiscal year.

3(e) If, in the fiscal year for which the computation is made, the
4number of units of average daily attendance upon which the
5allocations to the special education local plan area identified as
6the Los Angeles County Juvenile Court and Community
7School/Division of Alternative Education Special Education Local
8Plan Area are based is greater than the number of units of average
9daily attendance upon which the allocations to that special
10education local plan area were based in the prior fiscal year, that
11special education local plan area shall be allocated a growth
12adjustment equal to the product determined by multiplying the
13amounts determined under paragraphs (1) and (2).

14(1) The amount of funding per unit of average daily attendance
15computed for the special education local plan area for the prior
16fiscal year pursuant to Section 56836.10 multiplied by one plus
17the inflation factor computed pursuant to Section 42238.1, as that
18section read on January 1, 2013, or any successor section of law
19enacted by the Legislature that specifies the inflation factor
20contained in Section 42238.1, as that section read on January 1,
212013. For the 2013-14 fiscal year only, the amount of funding per
22unit of average daily attendance computed for the special education
23local plan area for the 2013-14 fiscal year shall be used, and
24multiplied by one plus the inflation factor computed pursuant to
25Section 42238.1, as that section read on January 1, 2013, or any
26successor section of law enacted by the Legislature that specifies
27the inflation factor contained in Section 42238.1, as that section
28read on January 1, 2013, for application to the 2013-14 fiscal year
29and each fiscal year thereafter.

30(2) The difference between the number of units of average daily
31attendance upon which allocations to the special education local
32plan area are based for the fiscal year in which the computation is
33made and the number of units of average daily attendance upon
34which allocations to the special education local plan area were
35based for the prior fiscal year.

36begin insert

begin insertSEC. 48.end insert  

end insert

begin insertThe heading of Article 4 (commencing with Section
3760640) of Chapter 5 of Part 33 of Division 4 of Title 2 of the end insert
begin insert38Education Codeend insertbegin insert is amended to read:end insert

 

P92   1Article 4.  begin deleteMeasurement of Academic Performance and Progress end delete
2begin insertCalifornia Assessment of Student Performance and Progressend insert
3

 

4begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 60640 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
5read:end insert

6

60640.  

(a) There is hereby established thebegin delete Measurement of
7Academic Performance and Progress,end delete
begin insert California Assessment of
8Student Performance and Progress,end insert
to be known as thebegin delete MAPP.end delete
9begin insert CAASPP.end insert

10(b) Commencing with the 2013-14 school year, thebegin delete MAPPend delete
11begin insert CAASPPend insert shall be composed of all of the following:

12(1) (A) A consortium summative assessment in English
13language arts and mathematics for grades 3 to 8, inclusive, and
14grade 11 that measures content standards adopted by the state
15board.

16(B) In the 2013-14 school year, the consortium summative
17assessment in English language arts and mathematics shall be a
18field test only, to enable the consortium to gauge the validity and
19reliability of these assessments and to conduct all necessary
20psychometric procedures and studies, including, but not necessarily
21limited to, achievement standard setting, and to allow the
22department to conduct studies regarding full implementation of
23the assessment system. These field tests and results shall not be
24used for any other purpose, including the calculation of any
25accountability measure.

26(2) (A) Science grade level assessments in grades 5, 8, and 10
27that measure content standardsbegin insert adoptedend insert pursuant to Section 60605,
28until a successor assessment is implemented pursuant to
29subparagraph (B).

30(B) For science assessments, the Superintendent shall make a
31recommendation to the state board as soon as is feasible after the
32adoption of science content standards pursuant to Section 60605.85
33regarding the assessment of the newly adopted standards. Before
34making recommendations, the Superintendent shall consult with
35stakeholders, including, but not necessarily limited to, California
36science teachers, individuals with expertise in assessing English
37learners and pupils with disabilities, parents, and measurement
38experts, regarding the grade level and type of assessment. The
39recommendations shall include cost estimates and a plan for
P93   1implementation of at least one assessment in each of the following
2grade spans:

3(i) Grades 3 to 5, inclusive.

4(ii) Grades 6 to 9, inclusive.

5(iii) Grades 10 to 12, inclusive.

6(3) The California Alternate Performance Assessment in grades
72 to 11, inclusive, in English language arts and mathematics and
8science in grades 5, 8, and 10, which measures content standards
9adopted pursuant to Section 60605 until a successor assessment
10is implemented. The successor assessment shall be limited to the
11grades and subject areas assessed pursuant to paragraph (1) and
12subparagraph (B) of paragraph (2).

13(4) The Early Assessment Program established by Chapter 6
14(commencing with Section 99300) of Part 65 of Division 14 of
15Title 3.

16(5) (A) begin deleteThe department shall make available to end deletebegin insertA end insertlocal
17educationalbegin delete agenciesend deletebegin insert agency may administerend insert a primary language
18assessment aligned to the English language arts standards adopted
19pursuant to Section 60605, as it read on January 1, 2013,begin delete for
20assessingend delete
begin insert toend insert pupils who arebegin delete enrolled in a dual language immersion
21program that includes the primary language of the assessment and
22who are either nonlimited English proficient or redesignated fluent
23English proficient. The cost for the assessment shall be the same
24for all local educational agencies, and shall not exceed the marginal
25cost of the assessment, including any cost the department incurs
26to implement this section.end delete
begin insert identified as limited English proficient
27and enrolled in any of grades 2 to 11, inclusive, until a subsequent
28primary language assessment aligned to the common core
29standards in English language arts adopted pursuant to Section
3060605.8 is developed pursuant to subparagraph (E).end insert

31(B) begin deleteA local educational agency may administer a primary
32language assessment aligned to the English language arts standards
33adopted pursuant to Section 60605, as it read on January 1, 2013,
34at its own expense, and shall enter into an agreement for that
35purpose with the testing contractor. end delete
Ifbegin delete theend deletebegin insert aend insert local educational
36agency chooses to administer a primary language assessmentbegin insert to
37pupils identified as limited English proficient and enrolled in any
38of grades 2 to 11, inclusive,end insert
pursuant tobegin delete this paragraph,end delete
39begin insert subparagraph (A), it shall notifyend insert the departmentbegin insert in a manner to
40be determined by the department and the costs shall be paid by
P94   1the state and included as part of the testing contract, and the
2departmentend insert
shallbegin delete reimburseend deletebegin insert provideend insert the local educational agency
3begin delete for its costs, includingend delete a per pupil apportionmentbegin delete to administerend deletebegin insert for
4administeringend insert
the assessment pursuant to subdivision (l).begin delete The
5department shall determine the procedures for reimbursement.end delete

6(C) The Superintendent shall consult with stakeholders,
7including assessment and English learner experts, to determine
8the content and purpose of a stand-alone language arts summative
9assessment in primary languages other than English that aligns
10with thebegin delete English-languageend deletebegin insert English languageend insert arts content standards.
11The Superintendent shall consider the appropriate purpose for this
12assessment, including, but not necessarily limited to, support for
13the State Seal of Biliteracy and accountability. It is the intent of
14the Legislature that an assessment developed pursuant to this
15section be included in the state accountability system.

16(D) The Superintendent shall report and make recommendations
17to the state board at a regularly scheduled public meeting no sooner
18than one year after the first full administration of the consortium
19computer-adaptive assessments in English language arts and
20mathematics summative assessments in grades 3 to 8, inclusive,
21and grade 11, regarding an implementation timeline and estimated
22costs of a stand-alone language arts summative assessment in
23primary languages other than English.

24(E) The Superintendent shall develop, and the state board shall
25adopt, a primary language assessment. The Superintendent shall
26administer this assessment no later than the 2016-17 school year.

27(F) This paragraph shall be operative only to the extent that
28funding is provided in the annual Budget Act or another statute
29for the purpose of this section.

30(c) No later than March 1, 2016, the Superintendent shall submit
31to the state board recommendations on expanding thebegin delete MAPPend delete
32begin insert CAASPPend insert to include additional assessments, for consideration at a
33regularly scheduled public meeting. The Superintendent shall also
34submit these recommendations to the appropriate policy and fiscal
35committees of the Legislature and to the Director of Finance in
36accordance with all of the following:

37(1) In consultation with stakeholders, including, but not
38necessarily limited to, California teachers, individuals with
39expertise in assessing English learners and pupils with disabilities,
40parents, and measurement experts, the Superintendent shall make
P95   1recommendations regarding assessments including the grade level,
2content, and type of assessment. These recommendations shall
3take into consideration the assessments already administered or
4planned pursuant to subdivision (b). The Superintendent shall
5consider the use of consortium-developed assessments, various
6item types, computer-based testing, and a timeline for
7implementation.

8(2) The recommendations shall consider assessments in subjects,
9including, but not necessarily limited to, history-social science,
10technology, visual and performing arts, and other subjects as
11appropriate, as well as English language arts, mathematics, and
12science assessments to augment the assessments required under
13subdivision (b), and the use of various assessment options,
14including, but not necessarily limited to, computer-based tests,
15locally scored performance tasks, and portfolios.

16(3) The recommendations shall include the use of an assessment
17calendar that would schedule the assessments identified pursuant
18to paragraph (2) over several years, the use of matrix sampling, if
19appropriate, and the use of population sampling.

20(4) The recommendations shall include a timeline for test
21development, and shall include cost estimates for subject areas, as
22appropriate.

23(5) Upon approval by the state board and the appropriation of
24funding for this purpose, the Superintendent shall develop and
25administer approved assessments. The state board shall approve
26 test blueprints, achievement level descriptors, testing periods,
27performance standards, and a reporting plan for each approved
28assessment.

29(d) For the 2013-14 and 2014-15 school years, the department
30shall make available to local educational agencies Standardized
31Testing and Reporting Program test forms no longer required by
32thebegin delete MAPP.end deletebegin insert CAASPP.end insert The cost of implementing this subdivision,
33including, but not necessarily limited to, shipping, printing, scoring,
34and reporting per pupil shall be the same for all local educational
35agencies, and shall not exceed the marginal cost of the assessment,
36including any cost the department incurs to implement this section.
37A local educational agency that chooses to administer an
38assessment pursuant to thisbegin delete sectionend deletebegin insert subdivisionend insert shall do so at its
39own expense, and shall enter into an agreement for that purpose
40with a contractor, subject to the approval of the department.

P96   1(e) The Superintendent shall make available a paper and pencil
2version of any computer-basedbegin delete MAPPend deletebegin insert CAASPPend insert assessment for
3use by pupils who are unable to access the computer-based version
4of the assessment for a maximum of three years after a new
5operational test is first administered.

6(f) (1) From the funds available for that purpose, each local
7educational agency shall administer assessments to each of its
8pupils pursuant to subdivision (b). As allowable by federal statute,
9 recently arrived English learner pupils are exempted from taking
10the assessment in English language arts. The state board shall
11establish a testing period to provide that all schools administer
12these tests to pupils at approximately the same time during the
13instructional year. The testing period established by the state board
14shall take into consideration the need of local educational agencies
15to provide makeup days for pupils who were absent during testing,
16as well as the need to schedule testing on electronic computing
17devices.

18(2) For the 2013-14 school year, each local educational agency
19shall administer the field tests in a manner described by the
20department in consultation with the president or executive director
21of the state board. Additional participants in the field test beyond
22the representative sample may be approved by the department, and
23the department shall use existing contract savings to fundbegin delete districtend delete
24begin insert local educational agencyend insert participation in one or more tests per
25participant. Funds for this purpose shall bebegin delete utilizedend deletebegin insert usedend insert to allow
26for maximum participation in the fieldbegin delete testend deletebegin insert testsend insert across the state.
27To the extent savings in the current contract are not available to
28fully fund this participation, the department shall prorate available
29funds by test. Local educational agencies shall bear any additional
30costs to administer these assessments that are in excess of the
31contracted amount. With approval of the state board and the
32Director of Finance, the department shall amend the existing
33 assessment contract to accommodate field testing beyond the
34representative sample, and to allow for special studies using
35information collected from the field tests.

36(g) From the funds available for that purpose, each local
37educational agency shall administer assessments as determined by
38the state board pursuant to paragraph (5) of subdivision (c).

39(h) As feasible, thebegin delete MAPPend deletebegin insert CAASPPend insert field tests shall be
40conducted in a manner that will minimize the testing burden on
P97   1individual schools. Thebegin delete MAPPend deletebegin insert CAASPPend insert field tests shall not
2produce individual pupil scores unless it is determined that these
3scores are valid and reliable.

4(i) The governing board of a school district may administer
5achievement tests in grades other than those required by this section
6as it deems appropriate.

begin delete

7(j) The governing board of a school district may administer a
8primary language assessment aligned to the English language arts
9standards adopted pursuant to Section 60605 to a pupil identified
10as limited English proficient enrolled in any of grades 2 to 11,
11inclusive, who either receives instruction in his or her primary
12language or has been enrolled in a school in the United States for
13less than 12 months

end delete

14begin insert(j)end insertbegin insertend insertbegin insertSubject to the approval of the state board, the department
15may make available to local educational agencies a primary
16language assessment aligned to the English language arts
17standards adopted pursuant to Section 60605, as it read on January
181, 2013, for assessing pupils who are enrolled in a dual language
19immersion program that includes the primary language of the
20assessment and who are either nonlimited English proficient or
21redesignated fluent English proficient end insert
until a subsequent primary
22language assessment aligned to the common core standards in
23English language arts adopted pursuant to Section 60605.8 is
24developed pursuant to paragraph (5) of subdivision (b).begin delete If the
25governing board of a school district chooses to administer this
26assessment, it shall notify the department in a manner determined
27by the department.end delete
begin insert The cost for the assessment shall be the same
28for all local educational agencies and shall not exceed the marginal
29cost of the assessment, including any cost the department incurs
30to implement this section. A local educational agency that elects
31to administer a primary language assessment pursuant to this
32subdivision shall do so at its own expense and shall enter into an
33agreement for that purpose with the state testing contractor, subject
34to the approval of the department.end insert

35(k) Pursuant to Section 1412(a)(16) of Title 20 of the United
36States Code, individuals with exceptional needs, as defined in
37Section 56026, shall be included in the testing requirement of
38subdivision (b) with appropriate accommodations in administration,
39where necessary, andbegin delete thoseend deletebegin insert theend insert individuals with exceptional needs
P98   1who are unable to participate in the testing, even with
2accommodations, shall be given an alternate assessment.

3(l) (1) The Superintendent shall apportion funds appropriated
4for these purposes to local educational agencies to enable them to
5meet the requirements of subdivisions (b) and (c).

6(A) For thebegin delete MAPPend deletebegin insert CAASPPend insert field tests administered in the
72013-14 school year or later school years, the Superintendent shall
8apportion funds to local educational agencies if funds are
9specifically provided for this purpose in the annual Budget Act.

10(B) The Superintendent shall apportion funds to local
11educational agencies to enable them to administer assessments
12used to satisfy the voluntary Early Assessment Program in the
132013-14 school year pursuant to paragraph (4) of subdivision (b).

14(2) The state board annually shall establish the amount of
15funding to be apportioned to local educational agencies for each
16test administered and annually shall establish the amount that each
17contractor shall be paid for each test administered under the
18contracts required pursuant to Section 60643. The amounts to be
19paid to the contractors shall be determined by considering the cost
20estimates submitted by each contractor each September and the
21amount included in the annual Budget Act, and by making
22allowance for the estimated costs tobegin delete school districtsend deletebegin insert local
23educational agenciesend insert
for compliance with the requirements of
24subdivisions (b) and (c). The state board shall take into account
25changes to local educational agency test administration activities
26under thebegin delete MAPP,end deletebegin insert CAASPP,end insert including, but not limited to, the
27begin delete number,end deletebegin insert number andend insert type of testsbegin delete administered,end deletebegin insert administeredend insert and
28changes in computerized test registration and administration
29procedures, when establishing the amount of funding to be
30apportioned to local educational agencies for each test
31administered.

32(3) An adjustment to the amount of funding to be apportioned
33per test shall not be valid without the approval of the Director of
34Finance. A request for approval of an adjustment to the amount
35of funding to be apportioned per test shall be submitted in writing
36to the Director of Finance and the chairpersons of the fiscal
37committees of both houses of the Legislature with accompanying
38material justifying the proposed adjustment. The Director of
39Finance is authorized to approve only those adjustments related
40to activities required by statute. The Director of Finance shall
P99   1approve or disapprove the amount within 30 days of receipt of the
2request and shall notify the chairpersons of the fiscal committees
3of both houses of the Legislature of the decision.

4(m) For purposes of making the computations required by
5Section 8 of Article XVI of the California Constitution, the
6appropriation for the apportionments made pursuant to paragraph
7(1) of subdivision (l), and the payments made to the contractors
8under the contracts required pursuant to Section 60643 or
9subparagraph (C) of paragraph (1) of subdivision (a) of Section
1060605 between the department and the contractor, are “General
11Fund revenues appropriated for school districts,” as defined in
12subdivision (c) of Section 41202, for the applicable fiscal year,
13and included within the “total allocations to school districts and
14community college districts from General Fund proceeds of taxes
15appropriated pursuant to Article XIII  B,” as defined in subdivision
16(e) of Section 41202, for that fiscal year.

17(n) As a condition to receiving an apportionment pursuant to
18subdivision (l), a local educational agency shall report to the
19Superintendent all of the following:

20(1) The pupils enrolled in the local educational agency in the
21grades in which assessments were administered pursuant to
22subdivisions (b) and (c).

23(2) The pupils to whom an achievement test was administered
24pursuant to subdivisions (b) and (c) in the local educational agency.

25(3) The pupils in paragraph (1) who were exempted from the
26test pursuant to this section.

27(o) The Superintendent and the state board are authorized and
28encouraged to assist postsecondary educational institutions to use
29the assessment results of thebegin delete MAPP,end deletebegin insert CAASPP,end insert including, but not
30necessarily limited to, the grade 11 consortium summative
31assessments in English language arts and mathematics, for
32academic credit, placement, or admissions processes.

33(p) Subject to the availability of funds in the annual Budget Act
34for this purpose, and exclusive of the consortium assessments, the
35Superintendent, with the approval of the state board, annually shall
36release to the public test items from the achievement tests pursuant
37to Section 60642.5 administered in previous years. Where feasible
38and practicable, the minimum number of test items released per
39year shall be equal to 25 percent of the total number of test items
40on the test administered in the previous year.

P100  1(q) On or before July 1, 2014, Sections 850 to 868, inclusive,
2of Title 5 of the California Code of Regulations shall be revised
3by the state board to conform to the changes made to this section
4in the first year of the 2013-14 Regular Session. The state board
5shall adopt initial regulations as emergency regulations to
6immediately implement thebegin delete MAPPend deletebegin insert CAASPPend insert assessments,
7including, but not necessarily limited to, the administration,
8scoring, and reporting of the tests, as the adoption of emergency
9regulations is necessary for the immediate preservation of the
10public peace, health, safety, or general welfare within the meaning
11of Section 11346.1 of the Government Code. The emergency
12regulations shall be followed by the adoption of permanent
13regulations, in accordance with the Administrative Procedure Act
14(Chapter 3.5 (commencing with Section 11340) of Part 1 of
15Division 3 of Title 2 of the Government Code).

16begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 60640.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
17

60640.2.  

(a) Subject to the approval of the state board, the
18department may make available to school districts and charter
19schools a primary language assessment developed pursuant to
20subparagraph (A) of paragraph (3) of subdivision (f) of Section
2160640 for assessing pupils who are enrolled in a dual language
22immersion program that includes the primary language of the
23assessment and who are either nonlimited English proficient or
24redesignated fluent English proficient. The cost for the assessment
25shall be the same for all school districts and charter schools, and
26shall not exceed the marginal cost of the assessment, including
27any cost the department incurs to implement this section.

28(b) A school district or charter school that chooses to administer
29a primary language assessment pursuant to this section shall do so
30at its own expense, and shall enter into an agreement for that
31purpose with the state testing contractor, as described in
32subparagraph (C) of paragraph (3) of subdivision (f) of Section
3360640, subject to the approval of the department.

end delete
34begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 17581.6 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

17581.6.  

(a) Funding apportioned pursuant to this section shall
37constitute reimbursement pursuant to Section 6 of Article XIII B
38of the California Constitution for the performance of any state
39mandates included in the statutes and executive orders identified
40in subdivision (e).

P101  1(b) Any school district, county office of education, or charter
2school may elect to receive block grant funding pursuant to this
3section.

4(c) (1) A school district, county office of education, or charter
5school that elects to receive block grant funding pursuant to this
6section in a given fiscal year shall submit a letter requesting
7funding to the Superintendent of Public Instruction on or before
8August 30 of that fiscal year.

9(2) The Superintendent of Public Instruction shall, in the month
10of November of each year, apportion block grant funding
11appropriated pursuant to Item 6110-296-0001 of Section 2.00 of
12the annual Budget Act to all school districts, county offices of
13education, and charter schools that submitted letters requesting
14funding in that fiscal year according to the provisions of that item.

15(3) A school district or county office of education that receives
16block grant funding pursuant to this section shall not be eligible
17to submit claims to the Controller for reimbursement pursuant to
18Section 17560 for any costs of any state mandates included in the
19statutes and executive orders identified in subdivision (e) incurred
20in the same fiscal year during which the school district or county
21office of education received funding pursuant to this section.

22(d) Block grant funding apportioned pursuant to this section is
23subject to annual financial and compliance audits required by
24Section 41020 of the Education Code.

25(e) Block grant funding apportioned pursuant to this section is
26specifically intended to fund the costs of the following programs
27and activities:

28(1) Academic Performance Index (01-TC-22; Chapter 3 of the
29Statutes of 1999, First Extraordinary Session; and Chapter 695 of
30the Statutes of 2000).

31(2) Agency Fee Arrangements (00-TC-17 and 01-TC-14;
32Chapter 893 of the Statutes of 2000 and Chapter 805 of the Statutes
33of 2001).

34(3) AIDS Instruction and AIDS Prevention Instruction (CSM
354422, 99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of
361991; and Chapter 403 of the Statutes of 1998).

37(4) California State Teachers’ Retirement Systembegin insert (CalSTRS)end insert
38 Service Credit (02-TC-19; Chapter 603 of the Statutes of 1994;
39Chapters 383, 634, and 680 of the Statutes of 1996; Chapter 838
40of the Statutes of 1997; Chapter 965 of the Statutes of 1998;
P102  1Chapter 939 of the Statutes of 1999; and Chapter 1021 of the
2Statutes of 2000).

3(5) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes
4of 1994).

5(6) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
699-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and
7673 of the Statutes of 1998; Chapter 34 of the Statutes of 1998;
8and Chapter 78 of the Statutes of 1999).

begin insert

9(7) Charter Schools IV (03-TC-03; Chapter 1058 of the Statutes
10of 2002).

end insert
begin delete

11(7)

end delete

12begin insert(8)end insert Child Abuse and Neglect Reporting (01-TC-21: Chapters
13640 and 1459 of the Statutes of 1987; Chapter 132 of the Statutes
14of 1991; Chapter 459 of the Statutes of 1992; Chapter 311 of the
15Statutes of 1998; Chapter 916 of the Statutes of 2000; and Chapters
16133 and 754 of the Statutes of 2001).

begin delete

17(8)

end delete

18begin insert(9)end insert Collective Bargaining (CSM 4425; Chapter 961 of the
19Statutes of 1975).

begin delete

20(9)

end delete

21begin insert(10)end insert Comprehensive School Safety Plans (98-TC-01 and
2299-TC-10; Chapter 736 of the Statutes of 1997; Chapter 996 of
23the Statutes of 1999; and Chapter 828 of the Statutes of 2003).

begin delete

24(10)

end delete

25begin insert(11)end insert Consolidation of Annual Parent Notification/Schoolsite
26 Discipline Rules/Alternative Schools (CSM 4488, CSM 4461,
2799-TC-09, 00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM
284462; Chapter 448 of the Statutes of 1975; Chapter 965 of the
29Statutes of 1977; Chapter 975 of the Statutes of 1980; Chapter 469
30of the Statutes of 1981; Chapter 459 of the Statutes of 1985;
31Chapters 87 and 97 of the Statutes of 1986; Chapter 1452 of the
32Statutes of 1987; Chapters 65 and 1284 of the Statutes of 1988;
33Chapter 213 of the Statutes of 1989; Chapters 10 and 403 of the
34Statutes of 1990; Chapter 906 of the Statutes of 1992; Chapter
351296 of the Statutes of 1993; Chapter 929 of the Statutes of 1997;
36Chapters 846 and 1031 of the Statutes of 1998; Chapter 1 of the
37Statutes of 1999, First Extraordinary Session; Chapter 73 of the
38Statutes of 2000; Chapter 650 of the Statutes of 2003; Chapter 895
39of the Statutes of 2004; and Chapter 677 of the Statutes of 2005).

begin delete

40(11)

end delete

P103  1begin insert(12)end insert Consolidation of Law Enforcement Agency Notification
2and Missing Children Reports (CSM 4505; Chapter 1117 of the
3Statutes of 1989 and 01-TC-09; Chapter 249 of the Statutes of
41986; and Chapter 832 of the Statutes of 1999).

begin delete

5(12)

end delete

6begin insert(13)end insert Consolidation of Notification to Teachers: Pupils Subject
7to Suspension or Expulsion I and II, and Pupil Discipline Records
8(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).

begin delete

9(13)

end delete

10begin insert(14)end insert County Office of Education Fiscal Accountability Reporting
11(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987;
12Chapters 1461 and 1462 of the Statutes of 1988; Chapter 1372 of
13the Statutes of 1990; Chapter 1213 of the Statutes of 1991; Chapter
14323 of the Statutes of 1992; Chapters 923 and 924 of the Statutes
15of 1993; Chapters 650 and 1002 of the Statutes of 1994; and
16Chapter 525 of the Statutes of 1995).

begin delete

17(14)

end delete

18begin insert(15)end insert Criminal Background Checks (97-TC-16; Chapters 588
19and 589 of the Statutes of 1997).

begin delete

20(15)

end delete

21begin insert(16)end insert Criminal Background Checks II (00-TC-05; Chapters 594
22and 840 of the Statutes of 1998; and Chapter 78 of the Statutes of
231999).

begin insert

24(17) Developer Fees (02-TC-42; Chapter 955 of the Statutes of
251977; Chapter 282 of the Statutes of 1979; Chapter 1354 of the
26Statutes of 1980; Chapter 201 of the Statutes of 1981; Chapter
27923 of the Statutes of 1982; Chapter 1254 of the Statutes of 1983;
28Chapter 1062 of the Statutes of 1984; Chapter 1498 of the Statutes
29of 1985; Chapters 136 and 887 of the Statutes of 1986; and
30Chapter 1228 of the Statutes of 1994).

end insert
begin delete

31(16)

end delete

32begin insert(18)end insert Differential Pay and Reemployment (99-TC-02; Chapter
3330 of the Statutes of 1998).

begin delete

34(17)

end delete

35begin insert(19)end insert Expulsion of Pupil: Transcript Cost for Appeals (SMAS;
36Chapter 1253 of the Statutes of 1975).

begin delete

37(18)

end delete

38begin insert(20)end insert Financial and Compliance Audits (CSM 4498 and CSM
394498-A; Chapter 36 of the Statutes of 1977).

begin delete

40(19)

end delete

P104  1begin insert(21)end insert Graduation Requirements (CSM 4181; Chapter 498 of the
2Statutes of 1983).

begin delete

3(20)

end delete

4begin insert(22)end insert Habitual Truants (CSM 4487 and CSM 4487-A; Chapter
51184 of the Statutes of 1975).

begin delete

6(21)

end delete

7begin insert(23)end insert High School Exit Examination (00-TC-06; Chapter 1 of
8the Statutes of 1999, First Extraordinary Session; and Chapter 135
9of the Statutes of 1999).

begin delete

10(22)

end delete

11begin insert(24)end insert Immunization Records (SB 90-120; Chapter 1176 of the
12Statutes of 1977).

begin delete

13(23)

end delete

14begin insert(25)end insert Immunization Records--Hepatitis B (98-TC-05; Chapter
15325 of the Statutes of 1978; Chapter 435 of the Statutes of 1979;
16Chapter 472 of the Statutes of 1982; Chapter 984 of the Statutes
17of 1991; Chapter 1300 of the Statutes of 1992; Chapter 1172 of
18the Statutes of 1994; Chapters 291 and 415 of the Statutes of 1995;
19Chapter 1023 of the Statutes of 1996; and Chapters 855 and 882
20of the Statutes of 1997).

begin delete

21(24)

end delete

22begin insert(26)end insert Interdistrict Attendance Permits (CSM 4442; Chapters 172
23and 742 of the Statutes of 1986; Chapter 853 of the Statutes of
241989; Chapter 10 of the Statutes of 1990; and Chapter 120 of the
25Statutes of 1992).

begin delete

26(25)

end delete

27begin insert(27)end insert Intradistrict Attendance (CSM 4454; Chapters 161 and 915
28of the Statutes of 1993).

begin delete

29(26)

end delete

30begin insert(28)end insert Juvenile Court Notices II (CSM 4475; Chapters 1011 and
311423 of the Statutes of 1984; Chapter 1019 of the Statutes of 1994;
32 and Chapter 71 of the Statutes of 1995).

begin delete

33(27)

end delete

34begin insert(29)end insert Notification of Truancy (CSM 4133; Chapter 498 of the
35Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
3619 of the Statutes of 1995).

begin insert

37(30) Parental Involvement Programs (03-TC-16; Chapter 1400
38of the Statutes of 1990; Chapters 864 and 1031 of the Statutes of
391998; Chapter 1037 of the Statutes of 2002).

end insert
begin delete

40(28)

end delete

P105  1begin insert(31)end insert Physical Performance Tests (96-365-01; Chapter 975 of
2the Statutes of 1995).

begin delete

3(29)

end delete

4begin insert(32)end insert Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
5Statutes of 1978).

begin insert

6(33) Public Contracts (02-TC-35; Chapter 1073 of the Statutes
7of 1985; Chapter 1408 of the Statutes 1988; Chapter 330 of the
8Statutes of 1989; Chapter 1414 of the Statutes of 1990; Chapter
9321 of the Statutes of 1990; Chapter 799 of the Statutes of 1992;
10and Chapter 726 of the Statutes of 1994).

end insert
begin delete

11(30)

end delete

12begin insert(34)end insert Pupil Health Screenings (CSM 4440; Chapter 1208 of the
13Statutes of 1976; Chapter 373 of the Statutes of 1991; and Chapter
14750 of the Statutes of 1992).

begin delete

15(31)

end delete

16begin insert(35)end insert Pupil Promotion and Retention (98-TC-19; Chapter 100
17of the Statutes of 1981; Chapter 1388 of the Statutes of 1982;
18Chapter 498 of the Statutes of 1983; Chapter 1263 of the Statutes
19of 1990; and Chapters 742 and 743 of the Statutes of 1998).

begin delete

20(32)

end delete

21begin insert(36)end insert Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
22of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
23Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332
24of the Statutes of 1986; Chapter 445 of the Statutes of 1992;
25Chapter 1317 of the Statutes of 1992; Chapter 589 of the Statutes
26of 1993; Chapter 1172 of the Statutes of 1994; Chapter 1023 of
27the Statutes of 1996; and Chapter 492 of the Statutes of 2000).

begin delete

28(33)

end delete

29begin insert(37)end insert Pupil Expulsions (CSM 4455; Chapter 1253 of the Statutes
30of 1975; Chapter 965 of the Statutes of 1977; Chapter 668 of the
31Statutes of 1978; Chapter 318 of the Statutes of 1982; Chapter 498
32of the Statutes of 1983; Chapter 622 of the Statutes of 1984;
33Chapter 942 of the Statutes of 1987; Chapter 1231 of the Statutes
34of 1990; Chapter 152 of the Statutes of 1992; Chapters 1255, 1256,
35and 1257 of the Statutes of 1993; and Chapter 146 of the Statutes
36of 1994).

begin delete

37(34)

end delete

38begin insert(38)end insert Pupil Expulsion Appeals (CSM 4463; Chapter 1253 of the
39Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 668
40of the Statutes of 1978; and Chapter 498 of the Statutes of 1983).

begin delete

P106  1(35)

end delete

2begin insert(39)end insert Pupil Suspensions (CSM 4456; Chapter 965 of the Statutes
3of 1977; Chapter 668 of the Statutes of 1978; Chapter 73 of the
4Statutes of 1980; Chapter 498 of the Statutes of 1983; Chapter 856
5of the Statutes of 1985; and Chapter 134 of the Statutes of 1987).

begin delete

6(36)

end delete

7begin insert(40)end insert School Accountability Report Cards (97-TC-21, 00-TC-09,
800-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997;
9Chapter 912 of the Statutes of 1997; Chapter 824 of the Statutes
10of 1994; Chapter 1031 of the Statutes of 1993; Chapter 759 of the
11Statutes of 1992; and Chapter 1463 of the Statutes of 1989).

begin delete

12(37)

end delete

13begin insert(41)end insert School District Fiscal Accountability Reporting (97-TC-19;
14Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes
15of 1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and
161452 of the Statutes of 1987; Chapters 1461 and 1462 of the
17Statutes of 1988; Chapter 525 of the Statutes of 1990; Chapter
181213 of the Statutes of 1991; Chapter 323 of the Statutes of 1992;
19Chapters 923 and 924 of the Statutes of 1993; Chapters 650 and
201002 of the Statutes of 1994; and Chapter 525 of the Statutes of
211995).

begin delete

22(38)

end delete

23begin insert(42)end insert School District Reorganization (98-TC-24; Chapter 1192
24of the Statutes of 1980; and Chapter 1186 of the Statutes of 1994).

begin delete

25(39)

end delete

26begin insert(43)end insert Student Records (02-TC-34; Chapter 593 of the Statutes
27of 1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the
28Statutes of 1998; and Chapter 67 of the Statutes of 2000).

begin delete

29(40)

end delete

30begin insert(44)end insert The Stull Act (98-TC-25; Chapter 498 of the Statutes of
311983; and Chapter 4 of the Statutes of 1999).

begin delete

32(41)

end delete

33begin insert(45)end insert Threats Against Peace Officers (CSM 96-365-02; Chapter
341249 of the Statutes of 1992; and Chapter 666 of the Statutes of
351995).

begin insert

36(46) Uniform Complaint Procedures (03-TC-02; Chapter 1117
37of the Statutes of 1982; Chapter 1514 of the Statutes 1988; and
38Chapter 914 of the Statutes of 1998).

end insert
begin insert

39(47) Williams Case Implementation I, II, and III (05-TC-04,
4007-TC-06, and 08-TC-01; Chapters 900, 902, and 903 of the
P107  1Statutes of 2004; Chapter 118 of the Statutes of 2005; Chapter
2704 of the Statutes of 2006; and Chapter 526 of the Statutes of
32007).

end insert
begin delete

4(42)

end delete

5begin insert(48)end insert Pupil Expulsions II, Pupil Suspensions II, and Educational
6Services Plan for Expelled Pupils (96-358-03, 03A, 98-TC-22,
701-TC-18, 98-TC-23, 97-TC-09; Chapters 972 and 974 of the
8Statutes of 1995; Chapters 915, 937, and 1052 of the Statutes of
91996; Chapter 637 of the Statutes of 1997; Chapter 498 of the
10Statutes of 1998; Chapter 332 of the Statutes of 1999; Chapter 147
11of the Statutes of 2000; and Chapter 116 of the Statutes of 2001).

12(f) Notwithstanding Section 10231.5, on or before November
131 of each fiscal year, the Superintendent of Public Instruction shall
14produce a report that indicates the total amount of block grant
15funding each school district, county office of education, and charter
16school received in that fiscal year pursuant to this section. The
17Superintendent of Public Instruction shall provide this report to
18the appropriate fiscal and policy committees of the Legislature,
19the Controller, the Department of Finance, and the Legislative
20Analyst’s Office.

21begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 17581.8 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
22to read:end insert

begin insert
23

begin insert17581.8.end insert  

(a) (1) The sum of two hundred eighty-seven million
24one hundred forty-nine thousand dollars ($287,149,000) is hereby
25appropriated from the General Fund to the Superintendent of
26Public Instruction for allocation to school districts in the manner,
27and for the purposes, set forth in this section.

28(2) The sum of forty-nine million five hundred thousand dollars
29($49,500,000) is hereby appropriated from the General Fund to
30the Chancellor of the California Community Colleges for allocation
31to community college districts in the manner, and for the purposes,
32set forth in this section.

33(3) For purposes of this section, a school district includes a
34county office of education and a charter school.

35(b) (1) The Superintendent of Public Instruction shall allocate
36the funds appropriated pursuant to paragraph (1) of subdivision
37(a), and the funds appropriated for purposes of this section
38pursuant to Item 6110-488 of the Budget Act of 2014, to school
39districts on the basis of an equal amount per unit of regular
40average daily attendance, as those numbers are reported at the
P108  1time of the second principal apportionment for the 2013-14 fiscal
2year.

3(2) The Chancellor shall allocate the funds appropriated
4pursuant to paragraph (2) of subdivision (a) to community college
5districts on the basis of an equal amount per enrolled full-time
6equivalent student, as those numbers are reported at the time of
7the second principal apportionment for the 2013-14 fiscal year.

8(c) Allocations made pursuant to this section shall first satisfy
9any outstanding claims pursuant to Section 6 of Article XIII B of
10the California Constitution for reimbursement of state-mandated
11local program costs for any fiscal year. Notwithstanding any
12amounts that are paid in satisfaction of outstanding claims for
13reimbursement of state-mandated local program costs, the
14Controller may audit any claim as allowed by law, and may reduce
15any amount owed by school districts or community college districts
16pursuant to an audit by reducing amounts owed by the state to
17school districts or community college districts for any other
18mandate claims. The Controller shall apply amounts received by
19each school district or community college district against any
20balances of unpaid claims for reimbursement of state-mandated
21local program costs and interest in chronological order beginning
22with the earliest claim. The Controller shall report to each school
23district and community college district the amounts of any claims
24and interest that are offset from funds provided pursuant to this
25section, and shall report a summary of the amounts offset for each
26mandate for each fiscal year to the Department of Finance and
27the fiscal committees of the Legislature.

28(d) (1) The governing board of a school district or community
29college district may expend funds received pursuant to this section
30for any one-time purpose, as determined by the governing board.

31(2) It is the intent of the Legislature that school districts will
32prioritize the use of these one-time funds for professional
33development, instructional materials, technology infrastructure,
34and any other investments necessary to support implementation
35of the common core standards in English language arts and
36mathematics, the implementation of English language development
37standards, and the implementation of the Next Generation Science
38standards.

end insert
39begin insert

begin insertSEC. 53.end insert  

end insert

begin insertItem 6110-106-0001 of Section 2.00 of the end insertbegin insertBudget
40Act of 2013
end insert
begin insert is amended to read:end insert

 

6110-106-0001--For local assistance, Department of Education (Proposition 98), for transfer to Section A of the State School Fund, for support of the California Local Control Accountability Support Network   

10,000,000
 Provisions:
 1.Funds appropriated in this item shall be used to support the California Local Control Accountability Support Network, composed of regional Mentor Teams to assist in the improvement of Local Control and Accountability Plans (LCAP) established in Article 3.8 (commencing with Section 52060) of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code. Up to $300,000 of this amount may be used to support a statewide evaluation to measure the effectiveness of the support network in responding to the needs of local education agencies. 
 begin insert2.end insertbegin insertFunds appropriated in this item shall be available for encumbrance until June 30, 2015.end insert 

 

20begin insert

begin insertSEC. 54.end insert  

end insert
begin insert

If the Commission on State Mandates determines that
21this act contains costs mandated by the state, reimbursement to
22local agencies and school districts for those costs shall be made
23pursuant to Part 7 (commencing with Section 17500) of Division
244 of Title 2 of the Government Code.

end insert
25begin insert

begin insertSEC. 55.end insert  

end insert
begin insert

The balance of the appropriations provided by Item
266110-139-8080 of Section 2.00 of the Budget Act of 2013, as added
27by Chapters 20 and 354 of the Statutes of 2013, are hereby
28reappropriated to the State Department of Education for the
29purposes of, and subject to, that item, and, notwithstanding any
30other law, shall be available for encumbrance until June 30, 2018.

end insert
31begin insert

begin insertSEC. 56.end insert  

end insert
begin insert

(a) Of the amount allocated in Schedule (1) of Item
326110-161-0001 of Section 2.00 of the Budget Act of 2012, thirty-two
33million eight hundred six thousand dollars ($32,806,000) is
34provided to fund the 2010-11 fiscal year maintenance of effort in
35the special education program.

end insert
begin insert

36(b) Of the amount allocated in Schedule (1) of Item
376110-161-0001 of Section 2.00 of the Budget Act of 2013, forty-six
38million nine hundred forty-three thousand dollars ($46,943,000)
39is provided to fund the 2010-11 fiscal year maintenance of effort
40in the special education program.

end insert
P110  1begin insert

begin insertSEC. 57.end insert  

end insert
begin insert

(a) Notwithstanding any other law, the Director of
2Finance shall determine, on or before May 14, 2015, whether the
3total allocations required by subdivision (b) of Section 8 of Article
4XVI of the California Constitution for the 2013-14 and 2014-15
5fiscal years, as estimated by the Director of Finance on May 13,
62015, exceed the total allocations required by subdivision (b) of
7Section 8 of Article XVI of the California Constitution for the
82013-14 and 2014-15 fiscal years as determined at the time of,
9and as set forth in, the 2014 Budget Act.

end insert
begin insert

10(b) (1) Any excess amount determined pursuant to subdivision
11(a) shall be appropriated to school districts and community college
12districts in satisfaction of the minimum funding obligation for
13school districts and community college districts required by Section
148 of Article XVI of the California Constitution for the 2013-14
15and 2014-15 fiscal years, and are appropriations made and
16allocated in those respective fiscal years based on any positive
17amounts attributable to each of those fiscal years, as determined
18pursuant to the calculations made in subdivision (a).

end insert
begin insert

19(2) The amount of funding appropriated to school districts and
20community college districts pursuant to paragraph (1) shall be
21distributed to school districts and community college districts
22based on their respective proportion of the sum of warrants that
23would otherwise be drawn in July pursuant to subdivision (h) of
24Section 14041.6 of the Education Code and paragraph (6) of
25subdivision (a) of Section 84321.6 of the Education Code.

end insert
begin insert

26(c) Notwithstanding any other law, up to eight hundred
27ninety-seven million one hundred eighty-four thousand dollars
28($897,184,000) of the warrants that would otherwise be drawn in
29July 2015 pursuant subdivision (h) of Section 14041.6 of the
30Education Code may instead be drawn in June 2015, based on the
31amount of available funding attributable to school districts
32pursuant to paragraph (2) of subdivision (b).

end insert
begin insert

33(d) Notwithstanding any other law, up to ninety-four million
34four hundred sixty-five thousand dollars ($94,465,000) of the
35warrants that would otherwise be drawn in July 2015 pursuant to
36paragraph (6) of subdivision (a) of Section 84321.6 of the
37Education Code may instead be drawn in June 2015, based on the
38amount of available funding attributable to community college
39districts pursuant to paragraph (2) of subdivision (b).

end insert
begin insert

P111  1(e) The Director of Finance shall notify the Chairperson of the
2Joint Legislative Budget Committee, or his or her designee, on or
3before June 30, 2015, of his or her intent to notify the Controller
4of the necessity to release funds appropriated in subdivision (b).
5The Controller shall make the funds available no earlier than five
6days after the notification, and the Superintendent of Public
7Instruction and Chancellor of the California Community Colleges
8shall work with the Controller to allocate the funds to school
9districts and community college districts as soon as practicable.

end insert
10begin insert

begin insertSEC. 58.end insert  

end insert
begin insert

(a) On or before June 30, 2015, an amount to be
11determined by the Director of Finance shall be appropriated from
12the General Fund to the Superintendent of Public Instruction in
13augmentation of Schedule (1) of Item 6110-161-0001 of Section
142.00 of the Budget Act of 2014.

end insert
begin insert

15(b) The funds appropriated in subdivision (a) shall only be
16available to the extent that revenues distributed to local
17educational agencies for special education programs pursuant to
18Sections 34177, 34179.5, 34179.6, and 34188 of the Health and
19Safety Code are less than the estimated amount reflected in the
20Budget Act of 2014, as determined by the Director of Finance.

end insert
begin insert

21(c) On or before June 30, 2015, the Director of Finance shall
22determine if the revenues distributed to local educational agencies
23for special education programs pursuant to Sections 34177,
2434179.5, 34179.6, and 34188 of the Health and Safety Code exceed
25the estimated amount reflected in the Budget Act of 2014 and shall
26reduce Schedule (1) of Item 6110-161-0001 of Section 2.00 of the
27Budget Act of 2014 by the amount of that excess.

end insert
begin insert

28(d) In making the determinations pursuant to subdivisions (b)
29and (c), the Director of Finance shall consider any other local
30property tax revenues collected in excess or in deficit of the
31estimated amounts reflected in the Budget Act of 2014.

end insert
begin insert

32(e) The Director of Finance shall notify the Chairperson of the
33Joint Legislative Budget Committee, or his or her designee, of his
34or her intent to notify the Controller of the necessity to release
35funds appropriated in subdivision (a) or to make the reduction
36pursuant to subdivision (c), and the amount needed to address the
37property tax shortfall determined pursuant to subdivision (b) or
38the amount of the reduction made pursuant to subdivision (c). The
39Controller shall make the funds available not sooner than five
40days after this notification and the State Department of Education
P112  1shall work with the Controller to allocate these funds to local
2educational agencies as soon as practicable.

end insert
begin insert

3(f) For purposes of making the computations required by Section
48 of Article XVI of the California Constitution, the appropriations
5made by subdivision (a) shall be deemed to be “General Fund
6revenues appropriated for school districts,” as defined in
7subdivision (c) of Section 41202 of the Education Code, for the
82014-15 fiscal year, and included within the “total allocations to
9school districts and community college districts from General
10Fund proceeds of taxes appropriated pursuant to Article XIII B,”
11as defined in subdivision (e) of Section 41202 of the Education
12Code, for the 2014-15 fiscal year.

end insert
13begin insert

begin insertSEC. 59.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
14to the Budget Bill within the meaning of subdivision (e) of Section
1512 of Article IV of the California Constitution, has been identified
16as related to the budget in the Budget Bill, and shall take effect
17immediately.

end insert
begin delete
18

SECTION 1.  

It is the intent of the Legislature to enact statutory
19changes relating to the Budget Act of 2014.

end delete


O

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