Amended in Assembly June 12, 2014

Senate Bill No. 858

Introduced by Committee on Budget and Fiscal Review

January 9, 2014

begin delete An act relating to the Budget Act of 2014. end delete begin insert An 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

SB 858, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2014. end delete begin insert Education finance: end insert begin insert 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 1⁄2 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 delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

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

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

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begin insert SEC. 2. end insert   

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begin insert Section 8203.1 is added to the end insert begin insert Education Code end insert begin insert , to
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begin insert 8203.1. end insert   

(a) The Superintendent shall administer a QRIS block
grant, pursuant to an appropriation made for that purpose in the
annual Budget Act, to be allocated to local consortia 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.

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

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

(A) Local educational agencies.

(B) First 5 county commissions.

(C) Local postsecondary educational institutions.

(D) Local child care planning councils.

(E) Local resource and referral agencies.

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

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

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

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

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

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

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

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

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

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

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

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

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

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 8206.1 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8206.1.  

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

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

(2) For begin delete the end delete purposes of this section, “collaborate” means to
cooperate with and to consult with.

(c)  begin insert (1) end insert begin insert   end insert As required by federal law, the department shall develop
an expenditure plan that sets forth the final priorities for child care.
The department shall coordinate with the State Department of
Social Services, the California Children and Families Commission,
and other stakeholders, including the Department of Finance, to
develop the Child Care and Development Fund (CCDF) Plan. On
or before February 1 of the year that the CCDF Plan is due to the
federal government, the department shall release a draft of the
plan. The department shall then commence a 30-day comment
period that shall include at least one hearing and the opportunity
for written comments. begin delete Before the May budget revision, end delete begin insert By April
1 of the year that the CCDF Plan is due, end insert the department shall
provide the revised begin delete CCDF Plan end delete begin insert plan and a description of any
changes to the earlier draft end insert to the begin insert Director of Finance and the end insert
chairs of the begin insert fiscal end insert committees of begin delete each house of end delete the begin delete Legislature
that consider appropriations, and shall provide a report on the plan
to the committees in each house of the Legislature that consider
the annual Budget Act appropriation. end delete begin insert Legislature. end insert

begin insert

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

end insert begin insert

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

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 8236 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8236.  

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

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

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

begin delete

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

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

(2) In awarding contracts for expansion pursuant to this
subdivision, the Superintendent, after taking into account the
geographic criteria established pursuant to Section 8279.3, and the
headquarters preferences and eligibility criteria relating to fiscal
or programmatic noncompliance established pursuant to Section
8261, shall give priority to applicant agencies that, in expending
the expansion funds, will be serving the highest percentage of
four-year-old children.

end delete begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

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

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

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 8239 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8239.  

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

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

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

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

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

begin delete

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

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

(g)

end delete

begin insert (e) end insert  For purposes of this section, “wraparound child care
services” and “wraparound general child care and development
programs” mean services provided for the remaining portion of
the day or remainder of the year following the completion of
part-day preschool services that are necessary to meet the child
care needs of parents eligible pursuant to subdivision (a) of Section
8263. These services shall be provided consistent with the general
child care and development programs provided pursuant to Article
8 (commencing with Section 8240).

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 8261 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8261.  

(a) The Superintendent begin delete of Public Instruction end delete shall adopt
rules and regulations pursuant to this chapter. The rules and
regulations shall include, but not be limited to, provisions which
do all of the following:

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

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

(3) Specify adequate standards of agency performance.

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

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

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

begin insert

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

end insert

(b) The begin delete superintendent end delete begin insert Superintendent end insert shall consult with the
State Department of Social Services with respect to rules and
regulations adopted relative to the disbursal of federal funds under
Title XX of the federal Social Security Act.

(c) For purposes of expediting the implementation of state or
federal legislation to expand child care services, the begin delete superintendent end delete
begin insert Superintendent end insert may waive (1) the regulations regarding the point
qualifications for, and the process and scoring of, interviews of
contract applicants pursuant to Section 18002 of Title 5 of the
California Code of Regulations, or (2) the time limitations for
scheduling and notification of appeal hearings and their results
pursuant to Section 18003 of Title 5 of the California Code of
Regulations. The begin delete superintendent end delete begin insert Superintendent end insert shall ensure that
the appeal hearings provided for in Section 18003 of Title 5 of the
California Code of Regulations are conducted in a timely manner.

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

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

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 8263.1 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8263.1.  

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

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

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

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

begin insert

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

end insert begin delete

(e)

end delete

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

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 8265 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8265.  

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

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

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

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

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

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

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

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

(1) Loss of program resources from other sources.

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

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

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

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

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

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

(1) Serves more than 400 children.

(2) Has in effect a collective bargaining agreement.

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

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 8273.1 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8273.1.  

(a) Families receiving services pursuant to
subparagraph (B) of paragraph (1) of subdivision (b) of Section
8263 may be exempt from family fees for up to three months.

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

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

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

begin insert

(e) Notwithstanding any other law, commencing with the
2014-15 fiscal year, family fees shall not be assessed for the
part-day California preschool program to income eligible families
whose children are enrolled in that program pursuant to Article
7 (commencing with Section 8235).

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 8273.2 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

8273.2.  

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

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

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

(d) Notwithstanding any other law, the family fee schedule that
was in effect for the 2012-13 fiscal year pursuant to subdivision
(c) shall 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 developed pursuant to Section 8273 has been approved
by the Department of Finance and adopted.

end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 8273.2 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 8273.2. end insert   

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

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 8278.3 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8278.3.  

(a) (1) The Child Care Facilities Revolving Fund is
hereby established in the State Treasury 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 begin delete school districts end delete begin insert local educational agencies end insert and
contracting agencies that provide child care and development
services, pursuant to this chapter. The Superintendent may transfer
state funds appropriated for child care facilities into this fund for
allocation to begin delete school districts end delete begin insert local educational agencies end insert and
contracting agencies, as specified, for the purchase, transportation,
and installation of facilities for replacement and expansion of
capacity. begin delete School districts end delete begin insert Local educational agencies end insert and
contracting agencies using facilities made available by the use of
these funds shall be charged a leasing fee, either at a fair market
value for those facilities or at an amount sufficient to amortize the
cost of purchase and relocation, whichever amount is lower, over
a 10-year period. Upon full repayment of the purchase and
relocation costs, title shall transfer from the State of California to
the begin delete school district end delete begin insert local educational agency end insert or contracting agency.
The Superintendent shall deposit all revenue derived from the lease
payments into the Child Care Facilities Revolving Fund.

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

begin insert

(3) Augmentations to the Child Care Facilities Revolving Fund
made in the Budget Act of 2014 shall 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
pursuant to this chapter.

end insert

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

(c) A begin delete school district or county office of education end delete begin insert local
educational agency end insert that provides child care pursuant to the
California School Age Families Education Program (Article 7.1
(commencing with Section 54740) of Chapter 9 of Part 29 of
Division 4 of Title 2) is eligible to apply for and receive funding
pursuant to this section.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 8363.1 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 8363.1. end insert   

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

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

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 8447 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8447.  

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 8450 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8450.  

(a) All child development contractors are encouraged
to develop and maintain a reserve within the child development
fund, derived from earned but unexpended funds. Child
development contractors may retain all earned funds. For begin delete the
purpose end delete begin insert purposes end insert of this section, “earned funds” are those for
which the required number of eligible service units have been
provided.

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

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

begin insert

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

end insert

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

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

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

(2) One thousand dollars ($1,000).

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

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

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

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

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

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

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 8499.5 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

8499.5.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 14035 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

14035.  

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

(b) The moneys in the General Fund to the credit of the
contingency account shall be transferred by the Controller to the
State School Fund in amounts as are certified from time to time
by the Superintendent of Public Instruction to be necessary to meet
actual costs to reimburse county superintendents of schools for
expenses incurred in providing emergency education to pupils and
making financial grants to school districts pursuant to Section
1602, to reimburse county superintendents of schools for the actual
and necessary travel expenses incurred in connection with
cooperative county publication projects by the county
superintendent of schools or members of his or her staff, and to
reimburse county superintendents of schools for expenses incurred
in making emergency financial grants to school districts.

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

end delete

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 14041.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

14041.5.  

(a) Notwithstanding subdivision (a) of Section 14041,
begin delete commencing with end delete begin insert for end insert the 2002-03 fiscal begin delete year, end delete begin insert year to the 2013-14
fiscal year, inclusive, end insert warrants for the principal apportionments
for the month of June instead shall be drawn in July of the same
calendar year pursuant to the certification made pursuant to Section
41335.

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

(c) For the 2003-04 school year, the amount of apportionments
for revenue limits computed pursuant to Section 42238 from any
of the apportionments made pursuant to Section 14041 that are
deemed “General Fund revenues appropriated for school districts,”
as defined in subdivision (c) of Section 41202 for the following
fiscal year and included within the “total allocations to school
districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B” as
defined in subdivision (e) of Section 41202, for the 2004-05 fiscal
year shall be seven hundred twenty-six million two hundred
seventy thousand dollars ($726,270,000). Any amount in excess
of seven hundred twenty-six million two hundred seventy thousand
dollars ($726,270,000) that is apportioned in July of 2004 is
deemed “General Fund revenues appropriated for school districts,”
as defined in subdivision (c) of Section 41202 for the 2003-04
fiscal year and included within the “total allocations to school
districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B” as
defined in subdivision (e) of Section 41202, for the 2003-04 fiscal
year.

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

(e) For the 2008-09 school begin delete year, and each school year thereafter, end delete
begin insert year to the 2013-14 school year, inclusive, end insert the amount of
apportionments for revenue limits computed pursuant to Section
42238 from any of the apportionments made pursuant to Section
14041 that are deemed “General Fund revenues appropriated for
school districts,” as defined in subdivision (c) of Section 41202
for the following fiscal year and included within the “total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article
XIII B” as defined in subdivision (e) of Section 41202, for the
following fiscal year shall be one billion one hundred one million
six hundred fifty-five thousand dollars ($1,101,655,000). Any
amount in excess of one billion one hundred one million six
hundred fifty-five thousand dollars ($1,101,655,000) that is
apportioned in July of any year is deemed “General Fund revenues
appropriated for school districts,” as defined in subdivision (c) of
Section 41202 for the prior fiscal year and included within the
“total allocations to school districts and community college districts
from General Fund proceeds of taxes appropriated pursuant to
Article XIII B” as defined in subdivision (e) of Section 41202, for
the prior fiscal year.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 14041.6 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

14041.6.  

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

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

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

(d) Notwithstanding subdivision (a) of Section 14041, or any
other law, for the 2011-12 fiscal begin delete year end delete begin insert year, end insert warrants for the
principal apportionments for the month of February in the amount
of two billion dollars ($2,000,000,000), for the month of April in
the amount of four hundred nineteen million twenty thousand
dollars ($419,020,000), for the month of May in the amount of
eight hundred million dollars ($800,000,000), and for the month
of June in the amount of five hundred million dollars
($500,000,000) instead shall be drawn in July of the same calendar
year and warrants for the month of March in the amount of one
billion three hundred million dollars ($1,300,000,000) and for the
month of April in the amount of one billion four hundred forty-two
million four hundred five thousand dollars ($1,442,405,000) and
for the month of May in the amount of one billion dollars
($1,000,000,000) instead shall be drawn in August pursuant to the
certification made pursuant to Section 41339.

(e) Notwithstanding subdivision (a) of Section 14041, or any
other law, for the 2012-13 fiscal begin delete year end delete begin insert year, end insert warrants for the
principal apportionments for the month of February in the amount
of five hundred thirty-one million seven hundred twenty thousand
dollars ($531,720,000), for the month of April in the amount of
five hundred ninety-four million seven hundred forty-eight
thousand dollars ($594,748,000), for the month of May in the
amount of one billion nine hundred seventy-six million seven
hundred one thousand dollars ($1,976,701,000), and for the month
of June in the amount of five hundred million dollars
($500,000,000) instead shall be drawn in July of the same calendar
year and warrants for the month of March in the amount of one
billion twenty-nine million four hundred ninety-three thousand
dollars ($1,029,493,000) and for the month of April in the amount
of seven hundred sixty-three million seven hundred ninety-four
thousand dollars ($763,794,000) instead shall be drawn in August
pursuant to the certification made pursuant to Section 41339.

(f) Notwithstanding subdivision (a) of Section 14041, or any
other begin delete law, commencing with end delete begin insert law, for end insert the 2013-14 fiscal year,
warrants for the principal apportionments for the month of April
in the amount of nine hundred seventeen million five hundred
forty-two thousand dollars ($917,542,000), for the month of May
in the amount of two billion one hundred fifty-two million four
hundred thirty thousand dollars ($2,152,430,000), and for the
month of June in the amount of five hundred million dollars
($500,000,000) instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41339.

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

begin insert

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

end insert begin delete

(h)

end delete

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

begin delete

(i)

end delete

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

begin insert

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

end insert begin insert

(l) Notwithstanding subdivision (i) of this section and subdivision
(e) of Section 14041.5, for purposes of making the computations
required by Section 8 of Article XVI of the California Constitution,
two billion seven hundred eighty million five hundred twenty-six
thousand dollars ($2,780,526,000) of the warrants drawn in July
2014 pursuant to subdivisions (f) and (g) of this section and
subdivision (e) of Section 14041.5 shall be deemed to be “General
Fund revenues appropriated for school districts,” as defined in
subdivision (c) of Section 41202, for the 2013-14 fiscal year, and
included within the “total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B,” as defined in subdivision
(e) of Section 41202, for the 2013-14 fiscal year.

end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 17080 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

17080.  

begin delete (a) end delete begin delete   end delete Notwithstanding any other begin delete provision of end delete law,
whenever moneys transferred to the General Fund each year from
(1) moneys deposited in the Public School Building Loan Fund
pursuant to Section 15735, and (2) moneys deposited in the State
School Building Aid Fund pursuant to Section 16080, are in excess
of 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 is appropriated from the General Fund for
purposes of the begin delete Leroy F. Greene State School Building
Lease-Purchase Law of 1976 (Chapter 12 (commencing with
Section 17000)) and Section 17584. The Controller shall transfer,
as directed by the State Allocation Board, such appropriated
amount to the State School Building Lease-Purchase Fund and to
the State School Deferred Maintenance Fund, which is hereby
established. end delete begin insert School Facilities Emergency Repair Account
established pursuant to Section 17592.71. The Controller shall
transfer the appropriated amount to the School Facilities
Emergency Repair Account. end insert

begin delete

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

end delete begin delete

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

end delete

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 24214 of the end insert begin insert Education Code end insert begin insert , as amended
by Section 28 of Chapter 559 of the Statutes of 2013, is amended
to read: end insert

24214.  

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

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

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

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

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

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

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

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

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

(1) As a trustee appointed by the Superintendent begin delete of Public
Instruction end delete pursuant to Section 41320.1.

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

(3) As a receiver or trustee appointed by the begin delete State Board of
Education end delete begin insert state board end insert pursuant to Article 3.1 (commencing with
Section 52055.57) of Chapter 6.1 of Part 28 of Division 4 of Title
2.

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

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

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

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

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

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

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

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

(l) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July
1, 1996.

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

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

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

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 24214 of the end insert begin insert Education Code end insert begin insert , as amended
by Section 29 of Chapter 559 of the Statutes of 2013, is amended
to read: end insert

24214.  

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 41203.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

41203.1.  

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

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

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

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 41207.3 of the end insert begin insert Education Code end insert begin insert , as added by
Section 4 of Chapter 3 of the 4th Extraordinary Session of the
Statutes of 2009, is amended to read: end insert

41207.3.  

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

(1) Fifty-three billion three hundred forty-five million four
hundred twenty thousand dollars ($53,345,420,000) for the
2005-06 fiscal year, with an outstanding balance of one billion
one hundred ten million five hundred sixteen thousand dollars
($1,110,516,000). The outstanding balance is appropriated and
allocated pursuant to Article 3.7 (commencing with Section
52055.700) of Chapter 6.1 of Part 28.

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

(3) Fifty-six billion five hundred seventy-seven million four
hundred ninety-one thousand dollars ($56,577,491,000) for the
2007-08 fiscal year, with no outstanding balance.

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

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

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

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 41841.9 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 41841.9. end insert   

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

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

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 42127 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42127.  

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

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

(A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

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

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

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

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

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

begin insert

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

end insert

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

(2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update to
an existing local control and accountability plan for the budget
year is approved.

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

(1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.

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

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

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

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the school district pursuant to Section
52061, the county superintendent of schools shall not call for the
formation of a budget review committee pursuant to Section
42127.1.

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

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

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

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

(3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. Except as provided in paragraph (2) of subdivision (g), if
the county superintendent of schools disapproves the budget, he
or she shall call for the formation of a budget review committee
pursuant to Section 42127.1, unless the governing board of the
school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed
and the department approves the waiver after determining that a
budget review committee is not necessary. Upon the grant of a
waiver, the county superintendent has the authority and
responsibility provided to a budget review committee in Section
42127.3. Upon approving a waiver of the budget review committee,
the department shall ensure that a balanced budget is adopted for
the school district by November 30. The Superintendent shall
report to the Legislature and the Director of Finance by December
10 if any school district, including a school district that has received
a waiver of the budget review committee process, does not have
an adopted budget by November 30. This report shall include the
reasons why a budget has not been adopted by the deadline, the
steps being taken to finalize budget adoption, and the date the
adopted budget is anticipated. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent
of schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of revenue
per unit of average daily attendance than it received in the 2010-11
fiscal year nor require the school district to demonstrate that it is
able to meet its financial obligations for the two subsequent fiscal
years.

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

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

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 42127.01 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 42127.01. end insert   

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

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

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

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

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

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

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

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

end insert

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 44235.2 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 44235.2. end insert   

(a) 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
any demand that has accrued or may accrue against it, the
Controller shall transfer moneys from the Test Development and
Administration Account to the Teacher Credentials Fund to the
extent necessary to meet the immediate obligations of the Teacher
Credentials Fund.

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

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

end insert

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 44374.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

44374.5.  

(a) The commission may charge begin delete a fee end delete begin insert fees end insert to begin delete recover end delete
begin insert cover end insert the standard costs of reviewing new begin insert and existing end insert educator
preparation programs. begin delete Applicable local educational agencies and
institutions of higher education end delete begin insert Sponsors of educator preparation
programs end insert shall submit the established fee to the commission when
submitting a proposal for a new begin delete program. end delete begin insert program, and, as
determined by the commission, for the review of an existing
program. The commission shall not waive the fee for the review
of existing programs for in-kind contributions from sponsors of
educator preparation programs. end insert The commission may review the
established begin delete fee end delete begin insert fees end insert on a periodic basis and adjust the begin delete fee end delete begin insert fees end insert as
necessary. The commission shall notify the chairpersons of the
committees and subcommittees in each house of the Legislature
that consider the State Budget and the Department of Finance at
least 30 days before implementing the begin delete fee end delete begin insert fees end insert and at least 30 days
before making any subsequent fee adjustments.

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

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 47612.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47612.1.  

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

begin delete

(a)

end delete

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

begin delete

(b)

end delete

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

begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

begin insert

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

end insert

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 47612.1 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 47612.1. end insert   

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

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

(2) Federally affiliated Youth Build programs.

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

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

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

end insert

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 47644 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47644.  

For each charter school deemed a local educational
agency for the purposes of special education, an amount equal to
the amount computed pursuant to Section 56836.08 for the special
education local plan area in which the charter school is included
shall be apportioned by the Superintendent begin delete of Public Instruction end delete
pursuant to the local allocation plan developed pursuant to
subdivision (i) of Section 56195.7 or Section 56836.05, or both.
If the charter school is a participant in a local plan that only
includes other charter schools pursuant to subdivision (f) of Section
56195.1, the amount computed pursuant to Section begin delete 56836.11, as
adjusted pursuant to the incidence multiplier set forth in Section
56836.155, end delete begin insert 56836.11 end insert shall be apportioned by the begin delete superintendent end delete
begin insert Superintendent end insert for each unit of average daily attendance reported
pursuant to subdivision (a) of Section 56836.06.

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 48000 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

48000.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

begin insert

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

end insert begin insert

(g) As a condition of receipt of apportionment for pupils in a
transitional kindergarten program pursuant to subdivision (g) of
Section 46300, a school district or charter school shall ensure that
teachers assigned to a transitional kindergarten classroom after
July 1, 2015, have been issued at least one credential by the
Commission on Teacher Credentialing, and shall, by August 1,
2020, have one of the following:

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 49430.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

49430.5.  

(a) The reimbursement a school receives for free and
reduced-price meals sold or served to pupils in elementary, middle,
or high schools included within a school district, charter school,
or county office of education shall be twenty-two and begin delete twenty-nine end delete
begin insert forty-eight end insert hundredths cents begin delete ($0.2229) end delete begin insert ($0.2248) end insert per meal, and,
for meals served in child care centers and homes, the
reimbursement shall be sixteen and begin delete six tenths end delete begin insert seventy-four
hundredths end insert cents begin delete ($0.1660) end delete begin insert ($0.1674) end insert per meal.

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

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

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 51745.6 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

51745.6.  

(a)  begin insert (1) end insert begin insert   end insert The ratio of average daily attendance for
independent study pupils 18 years of age or less to school district
full-time equivalent certificated employees responsible for
independent study, begin insert for the applicable grade span, end insert calculated as
specified by the begin delete State Department of Education, end delete begin insert department, end insert shall
not exceed the equivalent ratio of pupils to full-time certificated
employees for all other educational programs operated by the
school begin delete district. end delete begin insert district for the applicable grade span, unless a new
higher or lower grade span ratio for all other educational
programs offered within the respective grade span is negotiated
in a collective bargaining agreement or a memorandum of
understanding is entered into that indicates an existing collective
bargaining agreement contains an alternative grade span ratio
for the applicable grade span. end insert The ratio of average daily attendance
for independent study pupils 18 years of age or less to county office
of education full-time equivalent certificated employees responsible
for independent study, begin insert for the applicable grade span, end insert to be
calculated in a manner prescribed by the begin delete State Department of
Education, end delete begin insert department, end insert shall not exceed the equivalent ratio of
pupils to full-time certificated employees for all other educational
programs operated by the high school or unified school district
with the largest average daily attendance of pupils in that begin delete county. end delete begin insert end insert
begin insert county for the applicable grade span, unless a new higher or lower
grade span ratio for all other educational programs offered within
the respective grade span is negotiated in a collective bargaining
agreement or a memorandum of understanding is entered into that
indicates an existing collective bargaining agreement contains an
alternative grade span ratio for the applicable grade span. end insert The
computation of begin delete those end delete begin insert the end insert ratios shall be performed annually by the
reporting agency at the time of, and in connection with, the second
principal apportionment report to the begin delete Superintendent of Public
Instruction. end delete begin insert Superintendent. end insert

begin insert

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

end insert begin insert

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

end insert begin insert

(B) Grades 4 to 6, inclusive.

end insert begin insert

(C) Grades 7 to 8, inclusive.

end insert begin insert

(D) Grades 9 to 12, inclusive.

end insert

(b) Only those units of average daily attendance for independent
study that reflect a pupil-teacher ratio that does not exceed the
begin delete ratio end delete begin insert applicable grade span ratios end insert described in subdivision (a)
shall be eligible for apportionment pursuant to Section begin delete 42238.5,
for school districts, and Section 2558, for county offices of
education. end delete begin insert 2575, for county offices of education, and Section
42238.05, for school districts. end insert Nothing in this section shall prevent
a school district or county office of education from serving
additional units of average daily attendance greater than the begin delete ratio end delete begin insert end insert
begin insert applicable grade span ratios end insert described in subdivision (a), except
that those additional units shall not be funded pursuant to Section
begin delete 42238.5 or Section 2558. end delete begin insert 2575 or 42238.05, as applicable. If a
school district, charter school, or county office of education has
a memorandum of understanding to provide instruction in
coordination with the school district, charter school, or county
office of education at which a pupil is enrolled, then the applicable
grade span ratios that shall apply for purposes of this paragraph
are the ratios for the local educational agency providing the
independent study program to the pupil pursuant to Section
51749.5. end insert

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

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

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

begin delete

(d) The pupil-teacher ratio described in subdivision (a) in a
unified school district participating in the class size reduction
program pursuant to Chapter 6.10 (commencing with Section
52120) may, at the school district’s option, be calculated separately
for kindergarten and grades 1 to 6, inclusive, and for grades 7 to
12, inclusive.

end delete begin delete

(e)

end delete

begin insert (d) end insert  The begin delete pupils-to-certificated-employee ratio end delete begin insert applicable
pupils-to-certificated-employee grade span ratios end insert described in
subdivision (a) may, in a charter school, be calculated by using a
fixed pupils-to-certificated-employee ratio of 25 to begin delete one, end delete begin insert 1, end insert or by
being a ratio of less than 25 pupils per certificated employee. All
charter school pupils, regardless of age, shall be included in
begin delete pupil-to-certificated-employee end delete begin insert the applicable
pupil-to-certificated-employee grade span end insert ratio calculations.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 51747 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

51747.  

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

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

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

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

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

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

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

(4) A statement of the policies adopted pursuant to subdivisions
(a) and (b) regarding the maximum length of time allowed between
the assignment and the completion of a pupil’s assigned work, and
the number of missed assignments allowed begin delete prior to end delete begin insert before end insert an
evaluation of whether or not the pupil should be allowed to
continue in independent study.

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

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

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

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

begin insert

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

end insert

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 51747.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

51747.5.  

(a) The independent study by each pupil begin delete or student end delete
shall be coordinated, evaluated, and, notwithstanding subdivision
(a) of Section 46300, shall be under the general supervision of an
employee of the school begin delete district end delete begin insert district, charter school, end insert or county
office of education who possesses a valid certification document
pursuant to Section 44865 or an emergency credential pursuant to
Section 44300, registered as required by law.

(b) School begin delete districts and end delete begin insert districts, charter schools, and end insert county
offices of education may claim apportionment credit for
independent study only to the extent of the time value of pupil begin delete or
student end delete work products, as personally judged in each instance by a
certificated teacher.

begin insert

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

end insert

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 51749.5 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 51749.5. end insert   

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

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

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

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

(4) (A) 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 shall be aligned to all
relevant local and state content standards.

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

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

(6) Pupils enrolled in courses authorized by this section shall
meet the applicable residency and enrollment requirements
established pursuant to Sections 46300.2, 47612, 48204, and
51747.3.

(7) (A) 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.

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

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

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

(8) A proctor shall administer examinations.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

end insert

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 51749.6 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 51749.6. end insert   

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

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

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

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

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

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

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

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

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

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

end insert

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 52055.770 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

52055.770.  

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

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

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

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

(b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS. For the 2007-08 fiscal year, the funded rates shall be
reduced to reflect the percentage difference in the total amounts
appropriated for purposes of this section in that year compared to
the amounts appropriated for purposes of this section in the
2008-09 fiscal year.

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

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

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

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

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

(A) Forty-eight million dollars ($48,000,000) for transfer by
the Controller to Section B of the State School Fund for allocation
by the Chancellor of the California Community Colleges to
community colleges as required under subdivision (e) for the
2008-09 fiscal year, and under subdivision (f) for the 2011-12
fiscal year.

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

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

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

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

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

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

(A)  begin delete Eleven percent end delete begin insert Forty-eight million dollars ($48,000,000) end insert
for transfer by the Controller to Section B of the State School Fund
for allocation by the Chancellor of the California Community
Colleges to community colleges as required under subdivision begin delete (e). end delete
begin insert (d) of Section 52055.780. end insert

(B)  begin delete Eighty-nine percent end delete begin insert (i) end insert begin insert   end insert begin insert Two hundred sixty-seven million
dollars ($267,000,000) end insert for transfer by the Controller to Section A
of the State School Fund for allocation by the Superintendent
pursuant to this article.

begin insert

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

end insert begin insert

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

end insert

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

begin delete

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

end delete begin delete

(e)

end delete

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

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

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

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

(B) Instructional materials and support.

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

(D) Library materials.

(E) Technology infrastructure.

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

(G) Architectural barrier removal.

(H) State-mandated local programs.

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

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

begin delete

(f)

end delete

begin insert (e) end insert  For each of the 2011-12 and 2014-15 fiscal years, the sum
transferred pursuant to subparagraph (A) of paragraph (2) and
subparagraph (A) of paragraph (5) of subdivision (c) shall be
allocated by the Chancellor of the California Community Colleges
to the community colleges for the purpose of improving and
expanding career technical education in public secondary education
and lower division public higher education pursuant to Section
88532, including the hiring of additional faculty to expand the
number of career technical education programs and course
offerings.

begin delete

(g)

end delete

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

begin delete

(h)

end delete

begin insert (g) end insert  For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, including
computation of the state’s minimum funding obligation to school
districts and community college districts in subsequent fiscal years,
the first one billion six hundred twenty million nine hundred
twenty-eight thousand dollars ($1,620,928,000) in appropriations
made pursuant to subdivision (c) and the amount specified in
Section 41207.6 shall be deemed to be “General Fund revenues
appropriated for school districts,” as defined in subdivision (c) of
Section 41202 and “General Fund Revenues appropriated for
community college districts,” as defined in subdivision (d) of
Section 41202, for the 2004-05 fiscal year and included within
the “total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B,” as defined in subdivision (e) of Section 41202,
for that fiscal year. The remaining appropriations made pursuant
to subdivision (c) and the amount specified in Section 41207.6
shall be deemed to be “General Fund revenues appropriated for
school districts,” as defined in subdivision (c) of Section 41202,
and “General Fund revenues appropriated for community college
districts,” as defined in subdivision (d) of Section 41202, for the
2005-06 fiscal year and included within the “total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B,” as
defined in subdivision (e) of Section 41202, for that fiscal year.

begin delete

(i)

end delete

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

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

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

begin delete

(j)

end delete

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

begin delete

(k)

end delete

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

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Chapter 16 (commencing with Section 53010) is
added to Part 28 of Division 4 of Title 2 of the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

 

Chapter   begin insert 16. end insert California Career Pathways Trust

 

begin insert 53010. end insert   

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

begin insert 53011. end insert   

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

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

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

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

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

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

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

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

(1) Existing structures, requirements, and resources of the Carl
D. Perkins Career and Technical Education Improvement Act of
2006, California Partnership Academies, and Regional
Occupational Centers and Programs.

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

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

begin insert 53012. end insert   

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

begin insert 53013. end insert   

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

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

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

(c) A grant recipient subject to the requirements of Sections
52060 and 52061, Sections 52066 and 52067, or Section 47606.5
shall ensure that the activities supported by the California Career
Pathways Trust funds are in alignment with the priorities and
activities of the grant recipient’s local control and accountability
plan.

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

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

(1) Pupil and student academic performance indicators.

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

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

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

begin insert 53014. end insert   

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

begin insert 53015. end insert   

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

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

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

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

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

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

(1) To provide planning grants.

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

begin insert 53016. end insert   

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

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

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

(c) Provide special consideration to an applicant or applicants
seeking to establish or strengthen career pathways that include
both high school opportunities and at least one of the following
significant postsecondary pathways: a degree pursuant to Section
78041, if that section is added by Senate Bill 850 of the 2013-14
Regular Session of the Legislature, or an EdPrize apprenticeship
opportunity pursuant to Section 33135.5, if that section is added
by Senate Bill 923 of the 2013-14 Regular Session of the
Legislature.

end insert

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 56836.06 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.06.  

For begin delete the end delete purposes of this article, the following terms
or phrases begin delete shall end delete have the following meanings, unless the context
clearly requires otherwise:

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

(1) The total number of units of average daily attendance
reported for the second principal apportionment pursuant to Section
41601 for all pupils enrolled in the district or districts that are a
part of the special education local plan area.

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

(b) For begin delete the end delete purposes of computing apportionments pursuant to
this chapter for the special education local plan area identified as
the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local
Plan Area, the term “average daily attendance” begin delete shall mean end delete begin insert means end insert
the total number of units of average daily attendance reported for
the second principal apportionment pursuant to subdivisions (a)
and (b) of Section 41601 for all pupils enrolled in districts within
Los Angeles County and all schools operated by the Los Angeles
County Office of Education and the districts within Los Angeles
County.

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

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

(e) For a charter school deemed a local educational agency for
begin delete the end delete purposes of special education, an amount equal to the amount
computed pursuant to Section 56836.08 for the special education
local plan area in which the charter school is included shall be
apportioned by the begin delete State Department of Education end delete begin insert department end insert
pursuant to the local allocation plan developed pursuant to
subdivision (i) of Section 56195.7 or 56836.05, or both. If the
charter school is a participant in a local plan begin delete which end delete begin insert that end insert only
includes other charter schools pursuant to subdivision (f) of Section
56195.1, the amount computed pursuant to Section begin delete 56836.11, as
adjusted for any amount for which the special education local plan
area is eligible pursuant to the incidence multiplier set forth in
Section 56836.155, end delete begin insert 56836.11 end insert shall be apportioned by the
department pursuant for each unit of average daily attendance
reported pursuant to subdivision (a).

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 56836.07 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.07.  

For the begin delete 2004-05 end delete begin insert 2004-05 end insert fiscal year and each fiscal
year begin delete thereafter for which end delete begin insert thereafter, to the extent end insert there is an
appropriation in the annual Budget Act for begin delete this purpose, end delete begin insert purposes
of educationally related mental health services, end insert the Superintendent
shall allocate funds per unit of average daily attendance, as defined
in Section 56836.06, reported for the special education local plan
begin delete area to a special education local plan area for the purposes of
Section 56331. end delete begin insert area. end insert For the begin delete 2004-05 end delete begin insert 2004-05 end insert fiscal year and
each fiscal year thereafter for which there is an appropriation in
the annual Budget Act for this purpose, the Superintendent shall
determine a proportionate share, consistent with existing law, to
the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local
Plan Area based on the ratio of the amount per unit of average
daily attendance determined pursuant to Section 56836.10 to the
amount of the statewide target per unit of average daily attendance
determined pursuant to Section 56836.11.

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 56836.08 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.08.  

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

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

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

(3) Add the actual amount of the equalization adjustment, if
any, computed for the 1998-99 fiscal year pursuant to Section
56836.14 to the amount computed in paragraph (2).

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

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

(1) Add the amount of funding per unit of average daily
attendance computed for the special education local plan area for
the prior fiscal year pursuant to Section 56836.10 to the inflation
adjustment computed pursuant to subdivision (d) through the
2012-13 fiscal year, and for the 2013-14 fiscal year and each fiscal
year thereafter, the inflation adjustment computed pursuant to
subdivision (g), for the fiscal year in which the computation is
made.

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

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

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

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

(2) Add the amount of funding computed for the special
education local plan area pursuant to subdivision (a) for the
1998-99 fiscal year, and commencing with the 1999-2000 fiscal
year to the 2012-13 fiscal year, inclusive, the amount computed
for the fiscal year in which the computations were made pursuant
to subdivision (b) to the amount of funding computed for the
special education local plan area pursuant to Article 3 (commencing
with Section 56836.16).

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

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

(1) For the 1998-99 fiscal year, multiply the sum of the
statewide target amount per unit of average daily attendance for
special education local plan areas for the 1997-98 fiscal year
computed pursuant to paragraph (3) of subdivision (a) of Section
56836.11 begin delete and the amount determined pursuant to paragraph (e) of
Section 56836.155 for the 1997-98 fiscal year that corresponds to
the amount determined pursuant to paragraph (1) of subdivision
(d) of Section 56836.155 end delete by the inflation adjustment computed
pursuant to Section 42238.1 for the 1998-99 fiscal year.

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

(3) For purposes of computing the inflation adjustment for the
special education local plan area identified as the Los Angeles
County Juvenile Court and Community School/Division of
Alternative Education Special Education Local Plan Area for the
1998-99 fiscal year to the 2012-13 fiscal year, inclusive, the
Superintendent shall multiply the amount of funding per unit of
average daily attendance computed for that special education local
plan area for the prior fiscal year pursuant to Section 56836.10 by
the inflation adjustment computed pursuant to Section 42238.1 for
the fiscal year in which the computation is being made.

begin delete

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

(f)

end delete

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

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

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

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

begin delete

(g)

end delete

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

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

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

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 56836.095 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.095.  

For the 2001-02 fiscal year, the begin delete superintendent end delete
begin insert Superintendent end insert shall make the following computations in the
following order:

begin delete

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

end delete begin delete

(b)

end delete

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

begin delete

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

end delete begin delete

(d)

end delete

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

begin delete

(e)

end delete

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

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 56836.11 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.11.  

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

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

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

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

(4) Add the amount computed in paragraph (3) to the inflation
adjustment computed pursuant to subdivision (d) of Section
56836.08 for the 1998-99 fiscal year to determine the statewide
target amount for the 1998-99 fiscal year.

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

begin delete

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

(d)

end delete

begin insert (c) end insert  For the 2005-06 fiscal year, the Superintendent shall make
the following computation to determine the statewide target amount
per unit of average daily attendance to determine the inflation
adjustment pursuant to paragraph (2) of subdivision (d) of Section
56836.08 and growth pursuant to subdivision (c) of Section
56836.15, as follows:

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

(2) Multiply the amount computed in paragraph (1) by the
inflation factor computed pursuant to subdivision (b) of Section
42238.1 for the fiscal year in which the computation is made.

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

begin delete

(e)

end delete

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

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

(2) Multiply the amount computed in paragraph (1) by the
inflation factor computed pursuant to subdivision (b) of Section
42238.1 for the fiscal year in which the computation is made.

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

begin delete

(f)

end delete

begin insert (e) end insert  For the 2013-14 fiscal year, the Superintendent shall make
the following computations to determine the statewide target
amount per unit of average daily attendance to determine the
inflation adjustment pursuant to subdivision begin delete (g) end delete begin insert (f) end insert of Section
56836.08 and growth pursuant to subdivision (c) of Section
56836.15, as follows:

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

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

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

begin delete

(g)

end delete

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

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

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

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

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 56836.15 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

56836.15.  

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

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert The heading of Article 4 (commencing with Section
60640) of Chapter 5 of Part 33 of Division 4 of Title 2 of the end insert begin insert Education Code end insert begin insert is amended to read: end insert

 

Article 4.  begin delete Measurement of Academic Performance and Progress end delete
begin insert California Assessment of Student Performance and Progress end insert

 

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 60640 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

60640.  

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

(b) Commencing with the 2013-14 school year, the begin delete MAPP end delete
begin insert CAASPP end insert shall be composed of all of the following:

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

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

(2) (A) Science grade level assessments in grades 5, 8, and 10
that measure content standards begin insert adopted end insert pursuant to Section 60605,
until a successor assessment is implemented pursuant to
subparagraph (B).

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

(i) Grades 3 to 5, inclusive.

(ii) Grades 6 to 9, inclusive.

(iii) Grades 10 to 12, inclusive.

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

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

(5) (A)  begin delete The department shall make available to end delete begin insert A end insert local
educational begin delete agencies end delete begin insert agency may administer end insert a primary language
assessment aligned to the English language arts standards adopted
pursuant to Section 60605, as it read on January 1, 2013, begin delete for
assessing end delete begin insert to end insert pupils who are begin delete enrolled in a dual language immersion
program that includes the primary language of the assessment and
who are either nonlimited English proficient or redesignated fluent
English proficient. The cost for the assessment shall be the same
for all local educational agencies, and shall not exceed the marginal
cost of the assessment, including any cost the department incurs
to implement this section. end delete begin insert identified as limited English proficient
and 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 pursuant to Section
60605.8 is developed pursuant to subparagraph (E). end insert

(B)  begin delete A local educational agency may administer a primary
language assessment aligned to the English language arts standards
adopted pursuant to Section 60605, as it read on January 1, 2013,
at its own expense, and shall enter into an agreement for that
purpose with the testing contractor. end delete If begin delete the end delete begin insert a end insert local educational
agency chooses to administer a primary language assessment begin insert to
pupils identified as limited English proficient and enrolled in any
of grades 2 to 11, inclusive, end insert pursuant to begin delete this paragraph, end delete
begin insert subparagraph (A), it shall notify end insert the department begin insert in a manner to
be determined by the department and the costs shall be paid by
the state and included as part of the testing contract, and the
department end insert shall begin delete reimburse end delete begin insert provide end insert the local educational agency
begin delete for its costs, including end delete a per pupil apportionment begin delete to administer end delete begin insert for
administering end insert the assessment pursuant to subdivision (l). begin delete The
department shall determine the procedures for reimbursement. end delete

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

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

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

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

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

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

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

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

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

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

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

(e) The Superintendent shall make available a paper and pencil
version of any computer-based begin delete MAPP end delete begin insert CAASPP end insert assessment for
use by pupils who are unable to access the computer-based version
of the assessment for a maximum of three years after a new
operational test is first administered.

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

(2) For the 2013-14 school year, each local educational agency
shall administer the field tests in a manner described by the
department in consultation with the president or executive director
of the state board. Additional participants in the field test beyond
the representative sample may be approved by the department, and
the department shall use existing contract savings to fund begin delete district end delete
begin insert local educational agency end insert participation in one or more tests per
participant. Funds for this purpose shall be begin delete utilized end delete begin insert used end insert to allow
for maximum participation in the field begin delete test end delete begin insert tests end insert across the state.
To the extent savings in the current contract are not available to
fully fund this participation, the department shall prorate available
funds by test. Local educational agencies shall bear any additional
costs to administer these assessments that are in excess of the
contracted amount. With approval of the state board and the
Director of Finance, the department shall amend the existing
assessment contract to accommodate field testing beyond the
representative sample, and to allow for special studies using
information collected from the field tests.

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

(h) As feasible, the begin delete MAPP end delete begin insert CAASPP end insert field tests shall be
conducted in a manner that will minimize the testing burden on
individual schools. The begin delete MAPP end delete begin insert CAASPP end insert field tests shall not
produce individual pupil scores unless it is determined that these
scores are valid and reliable.

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

begin delete

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

end delete

begin insert (j) end insert begin insert   end insert begin insert Subject to the approval of the state board, the department
may make available to local educational agencies a primary
language assessment aligned to the English language arts
standards adopted pursuant to Section 60605, as it read on January
1, 2013, for assessing pupils who are enrolled in a dual language
immersion program that includes the primary language of the
assessment and who are either nonlimited English proficient or
redesignated fluent English proficient end insert until a subsequent primary
language assessment aligned to the common core standards in
English language arts adopted pursuant to Section 60605.8 is
developed pursuant to paragraph (5) of subdivision (b). begin delete If the
governing board of a school district chooses to administer this
assessment, it shall notify the department in a manner determined
by the department. end delete begin insert The cost for the assessment shall be the same
for all local educational agencies and shall not exceed the marginal
cost of the assessment, including any cost the department incurs
to implement this section. A local educational agency that elects
to administer a primary language assessment pursuant to this
subdivision shall do so at its own expense and shall enter into an
agreement for that purpose with the state testing contractor, subject
to the approval of the department. end insert

(k) Pursuant to Section 1412(a)(16) of Title 20 of the United
States Code, individuals with exceptional needs, as defined in
Section 56026, shall be included in the testing requirement of
subdivision (b) with appropriate accommodations in administration,
where necessary, and begin delete those end delete begin insert the end insert individuals with exceptional needs
who are unable to participate in the testing, even with
accommodations, shall be given an alternate assessment.

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

(A) For the begin delete MAPP end delete begin insert CAASPP end insert field tests administered in the
2013-14 school year or later school years, the Superintendent shall
apportion funds to local educational agencies if funds are
specifically provided for this purpose in the annual Budget Act.

(B) The Superintendent shall apportion funds to local
educational agencies to enable them to administer assessments
used to satisfy the voluntary Early Assessment Program in the
2013-14 school year pursuant to paragraph (4) of subdivision (b).

(2) The state board annually shall establish the amount of
funding to be apportioned to local educational agencies for each
test administered and annually shall establish the amount that each
contractor shall be paid for each test administered under the
contracts required pursuant to Section 60643. The amounts to be
paid to the contractors shall be determined by considering the cost
estimates submitted by each contractor each September and the
amount included in the annual Budget Act, and by making
allowance for the estimated costs to begin delete school districts end delete begin insert local
educational agencies end insert for compliance with the requirements of
subdivisions (b) and (c). The state board shall take into account
changes to local educational agency test administration activities
under the begin delete MAPP, end delete begin insert CAASPP, end insert including, but not limited to, the
begin delete number, end delete begin insert number and end insert type of tests begin delete administered, end delete begin insert administered end insert and
changes in computerized test registration and administration
procedures, when establishing the amount of funding to be
apportioned to local educational agencies for each test
administered.

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

(m) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation for the apportionments made pursuant to paragraph
(1) of subdivision (l), and the payments made to the contractors
under the contracts required pursuant to Section 60643 or
subparagraph (C) of paragraph (1) of subdivision (a) of Section
60605 between the department and the contractor, are “General
Fund revenues appropriated for school districts,” as defined in
subdivision (c) of Section 41202, for the applicable fiscal year,
and included within the “total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII  B,” as defined in subdivision
(e) of Section 41202, for that fiscal year.

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

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

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

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

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

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

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

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 60640.2 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

60640.2.  

(a) Subject to the approval of the state board, the
department may make available to school districts and charter
schools a primary language assessment developed pursuant to
subparagraph (A) of paragraph (3) of subdivision (f) of Section
60640 for assessing pupils who are enrolled in a dual language
immersion program that includes the primary language of the
assessment and who are either nonlimited English proficient or
redesignated fluent English proficient. The cost for the assessment
shall be the same for all school districts and charter schools, and
shall not exceed the marginal cost of the assessment, including
any cost the department incurs to implement this section.

(b) A school district or charter school that chooses to administer
a primary language assessment pursuant to this section shall do so
at its own expense, and shall enter into an agreement for that
purpose with the state testing contractor, as described in
subparagraph (C) of paragraph (3) of subdivision (f) of Section
60640, subject to the approval of the department.

end delete

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 17581.6 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

17581.6.  

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

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

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

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

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

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

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

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

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

(3) AIDS Instruction and AIDS Prevention Instruction (CSM
4422, 99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of
1991; and Chapter 403 of the Statutes of 1998).

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

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

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

begin insert

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

end insert begin delete

(7)

end delete

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

begin delete

(8)

end delete

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

begin delete

(9)

end delete

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

begin delete

(10)

end delete

begin insert (11) end insert  Consolidation of Annual Parent Notification/Schoolsite
Discipline Rules/Alternative Schools (CSM 4488, CSM 4461,
99-TC-09, 00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM
4462; Chapter 448 of the Statutes of 1975; Chapter 965 of the
Statutes of 1977; Chapter 975 of the Statutes of 1980; Chapter 469
of the Statutes of 1981; Chapter 459 of the Statutes of 1985;
Chapters 87 and 97 of the Statutes of 1986; Chapter 1452 of the
Statutes of 1987; Chapters 65 and 1284 of the Statutes of 1988;
Chapter 213 of the Statutes of 1989; Chapters 10 and 403 of the
Statutes of 1990; Chapter 906 of the Statutes of 1992; Chapter
1296 of the Statutes of 1993; Chapter 929 of the Statutes of 1997;
Chapters 846 and 1031 of the Statutes of 1998; Chapter 1 of the
Statutes of 1999, First Extraordinary Session; Chapter 73 of the
Statutes of 2000; Chapter 650 of the Statutes of 2003; Chapter 895
of the Statutes of 2004; and Chapter 677 of the Statutes of 2005).

begin delete

(11)

end delete

begin insert (12) end insert  Consolidation of Law Enforcement Agency Notification
and Missing Children Reports (CSM 4505; Chapter 1117 of the
Statutes of 1989 and 01-TC-09; Chapter 249 of the Statutes of
1986; and Chapter 832 of the Statutes of 1999).

begin delete

(12)

end delete

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

begin delete

(13)

end delete

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

begin delete

(14)

end delete

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

begin delete

(15)

end delete

begin insert (16) end insert  Criminal Background Checks II (00-TC-05; Chapters 594
and 840 of the Statutes of 1998; and Chapter 78 of the Statutes of
1999).

begin insert

(17) Developer Fees (02-TC-42; Chapter 955 of the Statutes of
1977; Chapter 282 of the Statutes of 1979; Chapter 1354 of the
Statutes of 1980; Chapter 201 of the Statutes of 1981; Chapter
923 of the Statutes of 1982; Chapter 1254 of the Statutes of 1983;
Chapter 1062 of the Statutes of 1984; Chapter 1498 of the Statutes
of 1985; Chapters 136 and 887 of the Statutes of 1986; and
Chapter 1228 of the Statutes of 1994).

end insert begin delete

(16)

end delete

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

begin delete

(17)

end delete

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

begin delete

(18)

end delete

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

begin delete

(19)

end delete

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

begin delete

(20)

end delete

begin insert (22) end insert  Habitual Truants (CSM 4487 and CSM 4487-A; Chapter
1184 of the Statutes of 1975).

begin delete

(21)

end delete

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

begin delete

(22)

end delete

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

begin delete

(23)

end delete

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

begin delete

(24)

end delete

begin insert (26) end insert  Interdistrict Attendance Permits (CSM 4442; Chapters 172
and 742 of the Statutes of 1986; Chapter 853 of the Statutes of
1989; Chapter 10 of the Statutes of 1990; and Chapter 120 of the
Statutes of 1992).

begin delete

(25)

end delete

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

begin delete

(26)

end delete

begin insert (28) end insert  Juvenile Court Notices II (CSM 4475; Chapters 1011 and
1423 of the Statutes of 1984; Chapter 1019 of the Statutes of 1994;
and Chapter 71 of the Statutes of 1995).

begin delete

(27)

end delete

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

begin insert

(30) Parental Involvement Programs (03-TC-16; Chapter 1400
of the Statutes of 1990; Chapters 864 and 1031 of the Statutes of
1998; Chapter 1037 of the Statutes of 2002).

end insert begin delete

(28)

end delete

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

begin delete

(29)

end delete

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

begin insert

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

end insert begin delete

(30)

end delete

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

begin delete

(31)

end delete

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

begin delete

(32)

end delete

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

begin delete

(33)

end delete

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

begin delete

(34)

end delete

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

begin delete

(35)

end delete

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

begin delete

(36)

end delete

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

begin delete

(37)

end delete

begin insert (41) end insert  School District Fiscal Accountability Reporting (97-TC-19;
Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes
of 1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and
1452 of the Statutes of 1987; Chapters 1461 and 1462 of the
Statutes of 1988; Chapter 525 of the Statutes of 1990; Chapter
1213 of the Statutes of 1991; Chapter 323 of the Statutes of 1992;
Chapters 923 and 924 of the Statutes of 1993; Chapters 650 and
1002 of the Statutes of 1994; and Chapter 525 of the Statutes of
1995).

begin delete

(38)

end delete

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

begin delete

(39)

end delete

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

begin delete

(40)

end delete

begin insert (44) end insert  The Stull Act (98-TC-25; Chapter 498 of the Statutes of
1983; and Chapter 4 of the Statutes of 1999).

begin delete

(41)

end delete

begin insert (45) end insert  Threats Against Peace Officers (CSM 96-365-02; Chapter
1249 of the Statutes of 1992; and Chapter 666 of the Statutes of
1995).

begin insert

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

end insert begin insert

(47) Williams Case Implementation I, II, and III (05-TC-04,
07-TC-06, and 08-TC-01; Chapters 900, 902, and 903 of the
Statutes of 2004; Chapter 118 of the Statutes of 2005; Chapter
704 of the Statutes of 2006; and Chapter 526 of the Statutes of
2007).

end insert begin delete

(42)

end delete

begin insert (48) end insert  Pupil Expulsions II, Pupil Suspensions II, and Educational
Services Plan for Expelled Pupils (96-358-03, 03A, 98-TC-22,
01-TC-18, 98-TC-23, 97-TC-09; Chapters 972 and 974 of the
Statutes of 1995; Chapters 915, 937, and 1052 of the Statutes of
1996; Chapter 637 of the Statutes of 1997; Chapter 498 of the
Statutes of 1998; Chapter 332 of the Statutes of 1999; Chapter 147
of the Statutes of 2000; and Chapter 116 of the Statutes of 2001).

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

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 17581.8 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 17581.8. end insert   

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

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

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

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

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

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

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

(2) It is the intent of the Legislature that school districts will
prioritize the use of these one-time 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.

end insert

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Item 6110-106-0001 of Section 2.00 of the end insert begin insert Budget
Act 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 insert 2. end insert

begin insert Funds appropriated in this item shall be available for encumbrance until June 30, 2015. end insert

 

begin insert

begin insert SEC. 54. end insert   

end insert begin insert

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

end insert

begin insert

begin insert SEC. 55. end insert   

end insert begin insert

The balance of the appropriations provided by Item
6110-139-8080 of Section 2.00 of the Budget Act of 2013, as added
by Chapters 20 and 354 of the Statutes of 2013, are hereby
reappropriated to the State Department of Education for the
purposes of, and subject to, that item, and, notwithstanding any
other law, shall be available for encumbrance until June 30, 2018.

end insert

begin insert

begin insert SEC. 56. end insert   

end insert begin insert

(a) Of the amount allocated in Schedule (1) of Item
6110-161-0001 of Section 2.00 of the Budget Act of 2012, thirty-two
million eight hundred six thousand dollars ($32,806,000) is
provided to fund the 2010-11 fiscal year maintenance of effort in
the special education program.

end insert begin insert

(b) Of the amount allocated in Schedule (1) of Item
6110-161-0001 of Section 2.00 of the Budget Act of 2013, forty-six
million nine hundred forty-three thousand dollars ($46,943,000)
is provided to fund the 2010-11 fiscal year maintenance of effort
in the special education program.

end insert

begin insert

begin insert SEC. 57. end insert   

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

begin insert

begin insert SEC. 58. end insert   

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(c) On or before June 30, 2015, the Director of Finance shall
determine if the revenues distributed to local educational agencies
for special education programs pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code exceed
the estimated amount reflected in the Budget Act of 2014 and shall
reduce Schedule (1) of Item 6110-161-0001 of Section 2.00 of the
Budget Act of 2014 by the amount of that excess.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

begin insert

begin insert SEC. 59. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

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

end delete