Amended in Assembly June 12, 2014

Senate Bill No. 859

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 2005, 2574, 2575, 2576, 2578, 37700, 37710.3, 37710.5, 37712, 41544, 42238.01, 42238.02, 42238.025, 42238.03, 42238.05, 42238.18, 42238.20, 42284, 42285, 46380, 46610, 47605.1, 47613, 47613.1, 47631, 47632, 47635, 47663, 48310, 48359.5, 52064, and 52070 of, to amend the heading of Chapter 7 (commencing with Section 2000) of Part 2 of Division 1 of Title 1 of, to add Sections 41376.1 and 42238.055 to, to repeal Sections 2002, 2003, 2004, 2009, 2554, 42238.53, 46611, and 47634.3 of, to repeal the heading of Article 1 (commencing with Section 2000) of Chapter 7 of Part 2 of Division 1 of Title 1 of, and to repeal and add Sections 46200.5 and 46201.5 of, the Education Code, 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 859, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2014. end delete begin insert Education finance: local control funding formula. end insert

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(1) Existing law authorizes the county superintendent of any county contiguous to an adjoining state to grant permission to pupils residing in the county to attend elementary school or high school in a school district of the adjoining state and to provide for the transportation of the pupils to the school. Existing law requires the county superintendent of schools to pay for the tuition and transportation of these pupils from the county school tuition fund and requires the Superintendent of Public Instruction to apportion an amount to each county superintendent of schools sufficient to pay for these expenditures.

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This bill would repeal the provisions requiring the county superintendent of schools to pay for the tuition and transportation of pupils attending school in a school district of an adjoining state from the county school tuition fund and would require the Superintendent to apportion an amount to each county superintendent of schools sufficient to pay for the tuition and transportation of those pupils for the 2014-15 fiscal year only. The bill would require the attendance generated by a pupil who was granted permission by a county superintendent of schools to attend school in an adjoining state to be credited to the pupil’s school district of residence.

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(2) Existing law establishes a public school system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires the local control funding formula, in part, to be based upon the percentage of unduplicated pupils enrolled in the school district or charter school and defines unduplicated pupils to include, among other pupils, pupils eligible for free or reduced-price meals, as defined. Existing law requires the annual reporting of the enrollment of unduplicated pupils, including pupils eligible for free and reduced-price meals.

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This bill would authorize a school to establish a base year free and reduced-price meal eligibility process, pursuant to which the eligibility is determined for all enrolled pupils at least once every 4 years if the school participates in a specified federal alternative that provides free meals to all enrolled pupils at a school. The bill would require a school using this alternative to maintain information on each student’s income eligibility status and to annually submit pupil data records showing each pupil’s eligibility for free or reduced-price meals. This bill would revise the definition of foster youth, as specified.

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Existing law requires the Superintendent of Public Instruction to calculate, for each county superintendent of schools, school district, and charter school, a base entitlement for the transition to the local control funding formula that includes, among other things, the sum of the amounts of funding received from appropriations contained in certain budget items of the Budget Act of 2012.

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The bill, commencing with the 2014-15 fiscal year, would require a certain portion of the base entitlement for school districts and charter schools to be adjusted to reflect the exclusion of one-time redevelopment agency liquid asset recovery revenue. The bill would require certain figures and calculations used in the local control funding formula to be considered final, as of specified times, for purposes of certain certifications made by the Superintendent. The bill would, for the 2013-14 and 2014-15 fiscal years only, and for purposes of assuring the continuity of essential induction and training services for beginning teachers, require the Alameda County Superintendent of Schools to withhold $581,540 from the local control funding formula apportionments of the Newark Unified School District, and to instead allocate those funds to the Alameda, Berkeley, San Leandro, and San Lorenzo Unified School Districts, as specified. The bill would state the findings and declarations of the Legislature as to the necessity of a special law with respect to these school districts. The bill would also make numerous changes to conform existing provisions to the requirements of the local control funding formula. This bill would require the Superintendent to compute a reduction to a school district’s local control funding formula if the Superintendent makes specified determinations relating to class size.

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As part of the local control funding formula, existing law provides a school district or charter school state-aid funding of no less than the sum of certain amounts received in the 2012-13 fiscal year, including, among other amounts, the 2012-13 fiscal year funding allowance provided for qualifying necessary small elementary schools and necessary small high schools. Existing law defines a necessary small high school as either (1) a high school with an average daily attendance of less than 287 pupils that meets specified conditions, or (2) a high school maintained by a school district for the exclusive purpose of educating juvenile hall pupils or pupils with exceptional needs.

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This bill would expand the definition of a necessary small high school to include a high school maintained by a school district for the exclusive purpose of educating juvenile hall pupils or pupils with exceptional needs and, until July 1, 2017, a high school maintained by a county office of education for the exclusive purpose of educating foster youth if certain requirements are satisfied, and a high school maintained by a unified school district as the only comprehensive high school if the high school has an average daily attendance of less than 286 pupils and the school district has 50 or fewer pupils per square mile of school district territory, as measured by the number of pupils residing in the district.

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(3) Existing law provides to a basic aid school district that was entitled to a specified reimbursement because a court order directs pupils to transfer to that school district as part of the court-ordered voluntary pupil transfer program, for those transferred pupils, either 70% of the school district local control funding formula base grant, or 70% of certain entitlements, that would have been apportioned to the school district from which the pupils were transferred. Existing law provides to a basic aid school district that is sponsoring a charter school for a pupil of the charter school who resides in, and is otherwise eligible to attend, a school district other than a basic aid school district, either 70% of the school district local control funding formula base grant, or 70% of certain entitlements, that would have been apportioned to the school district that the pupil resides in and would otherwise have been eligible to attend, as specified. Existing law authorizes the governing board of any school district to accept interdistrict transfers and provides to a school district of choice, as defined, that is a basic aid school district for those pupils admitted by the school district of choice either 70% of the school district local control funding formula base grant, or 70% of certain entitlements, that would have been apportioned to the school district of residence, as specified. Existing law, the Open Enrollment Act, authorizes the parent of a pupil enrolled in a low-achieving school, as defined, to submit an application for the pupil to attend a school in a school district of enrollment, as specified, and requires a school district of enrollment that is a basic aid school district, to receive for those pupils enrolled in the basic aid school district pursuant to the Open Enrollment Act either 70% of the school district local control funding formula base grant, or 70% of certain entitlements, that would have been apportioned to the school district of residence, as specified.

end insert begin insert

This bill would, in all of the instances described above, provide to the basic aid school district only 70% of the school district local control funding formula base grant that would have been apportioned to, (A) for a court-ordered voluntary pupil transfer program, the school district from which the pupils transferred, (B) for a charter school sponsored by a basic aid school district, the school district that the pupil resides in and would otherwise have been eligible to attend, and (C) for a school district of choice or the Open Enrollment Act, the school district of residence, if the entitlements for that school district include funding for necessary small schools, as specified.

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(4) Existing law requires the Fallbrook Union High School District to enter into an interdistrict attendance agreement with the Capistrano Unified School District to allow up to 150 pupils, at the request of each pupil’s parent or guardian, to attend schools of the Capistrano Unified School District when the pupils reside in the San Onofre housing area of the Marine Corps Base, Camp Joseph H. Pendleton, and requires the Fallbrook Union High School District to pay tuition to the Capistrano Unified School District for the attendance of these pupils only in the amount of the state apportionments paid to the Fallbrook Union High School District for the attendance of these pupils plus a specified amount. Existing law requires the Superintendent of Public Instruction to apportion to the Capistrano Unified School District a certain allowance for educating secondary pupils attending the Capistrano Unified School District pursuant to the interdistrict attendance agreement.

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This bill would repeal the requirement for the Superintendent to apportion that allowance for educating secondary pupils attending the Capistrano Unified School District pursuant to the interdistrict attendance agreement and would require the amount of state apportionments provided to the Fallbrook Union High School District and the Capistrano Unified School District for the 2012-13 fiscal year pursuant to these provisions to be included in certain computations made for purposes of the local control funding formula.

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(5) Existing law requires a sponsoring local educational agency to annually transfer to each of its charter schools funding in lieu of property taxes, as specified, and provides that these requirements do not apply for pupils who reside in, and are otherwise eligible to attend a school in, a basic aid school district, but who attend a charter school in a nonbasic aid school district. In regard to these pupils, existing law requires the sponsoring basic aid school district to transfer to the charter school a certain amount of funds, as specified.

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This bill would authorize a county charter program school to seek in lieu property tax reimbursement from a pupil’s school district of residence in certain instances, as specified.

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(6) Existing law, on or before July 1, 2014, requires the governing board of each school district and each county board of education to adopt a local control and accountability plan and requires the governing board of each school district and each county board of education to update its local control and accountability plan before July 1 of each year. Existing law requires the charter of a charter school to include a reasonably comprehensive description of certain annual goals and the specific annual actions to achieve those goals and requires the charter school to annually update those goals and specific annual actions. Existing law requires the State Board of Education to adopt templates for use by a local educational agency in developing its local control accountability plan and by a charter school in developing its annual goals and specific annual actions to achieve those goals. Existing law requires the state board to adopt the templates in accordance with the provisions of the Administrative Procedure Act, and authorizes the board to adopt emergency regulations for purposes of implementing those provisions.

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This bill would authorize an alternative procedure for the adoption of the templates if certain requirements are met and would deem the adoption of regulations for adopting the templates an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare.

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(7) Existing law requires the county superintendent of schools to approve a local control and accountability plan or annual update to a local control and accountability plan for each school district within the county, as specified. Existing law, if a county superintendent of schools has jurisdiction over a single school district, requires the Superintendent to designate a county superintendent of schools of an adjoining county to perform these duties.

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The bill would, if a county superintendent of schools has jurisdiction over a single school district, require the Superintendent to perform the duties of the county superintendent of schools related to approval of a local control and accountability plan or annual update to a local control and accountability plan.

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(8) This bill would require the State Board of Education, working in collaboration with the State Department of Education, to report to the Legislature no later than February 1, 2015, regarding the status of implementation of the local control funding formula.

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(9) This bill would appropriate $4,747,914,000 from the General Fund for the transition to the local control funding formula calculation for the funding of elementary and secondary education.

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(10) 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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(11) 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: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The heading of Chapter 7 (commencing with
Section 2000) of Part 2 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert is amended to read: end insert

 

Chapter  7. begin delete County School Tuition Fund end delete begin insert Attendance in
Adjoining States end insert

 

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The heading of Article 1 (commencing with Section
2000) of Chapter 7 of Part 2 of Division 1 of Title 1 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

 

Article 1.  Aid for Attendance in Adjoining States

 

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2002 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2002.  

The county superintendent of schools shall pay for the
tuition of pupils residing in his county and attending school in an
adjoining state from the county school tuition fund of his county
pursuant to this article.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2003 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2003.  

The county superintendent of schools may provide for
the transportation of such pupils to and from their homes and the
school in an adjoining state attended by them. For this purpose the
county superintendent of schools is authorized to purchase,
maintain, and operate one or more schoolbuses and to contract
with a responsible party or parties for the providing of such
transportation by such party or parties.

In lieu of providing such transportation for any such pupil, the
county superintendent of schools may pay the parent or guardian
of each such pupil five cents ($0.05) per mile for each mile
necessarily traveled by such pupil in going to and from his home
and school except that if there is more than one such pupil in the
household of the parent or guardian the county superintendent of
schools may pay two and one-half cents ($0.025) for each such
mile for each additional pupil in the household. The total amount
paid to any parent or guardian hereunder shall not in any month
exceed the sum of fifty dollars ($50) for the one pupil in the
household of such parent or guardian and twenty-five dollars ($25)
for each additional pupil in the same household.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2004 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2004.  

Any costs incurred by the county superintendent of
schools for the transportation of pupils to a school in an adjoining
state shall be paid by him by requisition drawn against the county
school tuition fund.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 2005 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

2005.  

The superintendent of schools of begin delete any end delete begin insert a end insert school district,
or the principal of begin delete any end delete begin insert a end insert school, in an adjoining state attended by
pupils residing in an adjoining county in this state shall certify to
the county superintendent of schools of the county not later than
July 2nd of each year the average daily attendance of pupils from
the county attending the begin delete school and the current expenditure,
including transportation, incurred for the education of the pupils. end delete
begin insert school. end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 2009 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2009.  

The county superintendent of schools shall pay all costs
of transportation and all verified claims for tuition of pupils
attending school in adjoining states allowed under this article, by
requisition drawn against the county school tuition fund.

end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 2554 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

2554.  

In each fiscal year, beginning with fiscal year 1979-80,
for tuition for students attending schools in adjoining states, the
Superintendent of Public Instruction shall apportion an amount to
each county superintendent sufficient to pay the amounts required
or allowed to be paid pursuant to Sections 2002 to 2006, inclusive.

end delete

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 2574 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

2574.  

For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:

(a) Compute a county office of education operations grant equal
to the sum of each of the following amounts:

(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).

(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which
the county superintendent of schools has jurisdiction pursuant to
Section 1253.

(3) (A) Seventy dollars ($70) multiplied by the number of units
of countywide average daily attendance, up to a maximum of
30,000 units.

(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a
maximum of 60,000 units.

(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum
of 140,000 units.

(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.

(E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school districts
for which the county superintendent of schools has jurisdiction
pursuant to Section 1253, charter schools authorized by school
districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.

(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:

(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years
by the sum of the total enrollment in those schools in the 2013-14
and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the
current fiscal year and the two prior fiscal years by the sum of the
total enrollment in those schools in the current fiscal year and the
two prior fiscal years.

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(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a county
superintendent of schools’ enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in
the 2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.

end insert begin insert

(ii) It is the intent of the Legislature to review each county office
of education’s enrollment of unduplicated pupils for the 2013-14
and 2014-15 fiscal years and provide one-time funding, if
necessary, for a county office of education with higher enrollment
of unduplicated pupils in the 2014-15 fiscal year as compared to
the 2013-14 fiscal year.

end insert begin delete

(D)

end delete

begin insert (E) end insert  For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2 and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.

begin insert

(F) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This subparagraph does not apply to a change that is the result
of an audit that has been appealed pursuant to Section 41344.

end insert

(2) For purposes of this section, an “unduplicated pupil” is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil
Achievement Data System.

(B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.

(C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the
county office of education.

(c) Compute an alternative education grant equal to the sum of
the following:

(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court
school base revenue limit calculated pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013. begin insert For purposes of this subparagraph, the
2012-13 statewide average juvenile court school base revenue
limit shall be considered final as of the annual apportionment for
the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant
to Sections 41332 and 41339. end insert

(B) Commencing with the 2013-14 fiscal year, the per pupil
base grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States,
as published by the United States Department of Commerce for
the 12-month period ending in the third quarter of the prior fiscal
year. This percentage change shall be determined using the latest
data available as of May 10 of the preceding fiscal year compared
with the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(2) A supplemental grant equal to 35 percent of the base grant
described in paragraph (1) multiplied by the enrollment percentage
calculated in subdivision (b). The supplemental grant shall be
expended in accordance with the regulations adopted pursuant to
Section 42238.07.

(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:

(i) The enrollment percentage calculated in subdivision (b) less
50 percent.

(ii) Zero.

(B) The concentration grant shall be expended in accordance
with the regulations adopted pursuant to Section 42238.07.

(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education,
excluding units of average daily attendance for pupils attending
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
2, who are enrolled pursuant to any of the following:

(i) Probation-referred pursuant to Sections 300, 601, 602, and
654 of the Welfare and Institutions Code.

(ii) On probation or parole and not in attendance in a school.

(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

(B) Multiply the number of units of average daily attendance
for pupils attending schools or classes established pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
27 of Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted
pursuant to Section 42238.07.

(C) Add the amounts calculated in subparagraphs (A) and (B).

(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).

(e) Add all of the following to the amount calculated in
subdivision (d):

(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
on January 1, 2013.

(2) (A) The amount of funding a county superintendent of
schools received for the 2012-13 fiscal year from funds allocated
pursuant to the Home-to-School Transportation program, as set
forth in Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5 of Division 3 of Title 2, Article 10 (commencing with
Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.

(B) On or before March 1, 2014, the Legislative Analyst’s Office
shall submit recommendations to the fiscal committees of both
houses of the Legislature regarding revisions to the methods of
funding pupil transportation that address historical funding
inequities across county offices of education and school districts
and improve incentives for local educational agencies to provide
efficient and effective pupil transportation services.

begin insert

(3) The difference determined by subtracting the amount
calculated pursuant to paragraph (1) of subdivision (c) for pupils
attending a school that is eligible for funding pursuant to
paragraph (2) of subdivision (b) of Section 42285 from the amount
of funding that is provided to eligible schools pursuant to Section
42284, if the difference is positive.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 2575 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

2575.  

(a) Commencing with the 2013-14 fiscal year and for
each fiscal year thereafter, the Superintendent shall calculate a
base entitlement for the transition to the county local control
funding formula for each county begin delete office of education end delete begin insert superintendent
of schools end insert based on the sum of the amounts computed pursuant to
paragraphs (1) to (3), inclusive begin insert , as adjusted pursuant to paragraph
(4) end insert :

(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013, adjusted only for changes in average daily
attendance claimed by the county superintendent of schools for
pupils identified in clauses (i), (ii), and (iii) of subparagraph (A)
of paragraph (4) of subdivision (c) of Section 2574 and for pupils
attending juvenile court schools. begin insert For purposes of this paragraph,
the calculation of an amount per unit of average daily attendance
for pupils attending juvenile court schools shall be considered
final for purposes of this section as of the annual apportionment
for the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant
to Sections 41332 and 41339. end insert All other average daily attendance
claimed by the county superintendent of schools and any other
average daily attendance used for purposes of calculating revenue
limits pursuant to Article 3 (commencing with Section 2550) of
Chapter 12, as that article read on January 1, 2013, shall be
considered final for purposes of this section as of the annual
apportionment for the 2012-13 fiscal year, as calculated for
purposes of the certification required on or before February 20,
2014, pursuant to begin delete Section end delete begin insert Sections end insert 41332 begin insert and 41339 end insert .

(2) The sum of begin delete both end delete begin insert all end insert of the following:

(A) The amount of funding received from appropriations
contained in Section 2.00 of the Budget Act of 2012, as adjusted
by Section 12.42, in the following items: 6110-104-0001,
6110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
begin delete 6110-234-0001, end delete 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001, 2012-13
fiscal year funding for the Class Size Reduction Program pursuant
to Chapter 6.10 (commencing with Section 52120) of Part 28 of
Division 4 of Title 2, as that chapter read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (d)
of Section 48915. begin insert For purposes of this subparagraph, the 2012-13
fiscal year appropriations described in this subparagraph shall
be considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339. end insert

(B) The amount of local revenues used to support a regional
occupational center or program established and maintained by a
county superintendent of schools pursuant to Section 52301.

(3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the sum of the amounts apportioned to the county begin delete office
of education end delete begin insert superintendent of schools end insert pursuant to subdivision (f)
in all prior years.

begin insert

(4) The revenue limit amount determined pursuant to paragraph
(1) shall be increased by the difference determined by subtracting
the amount provided per unit of average daily attendance in
paragraph (1) for pupils attending a school that is eligible for
funding pursuant to paragraph (2) of subdivision (b) of Section
42285 from the amount of funding that was provided to eligible
schools in the 2012-13 fiscal year pursuant to Sections 42284 and
42238.146, as those sections read on January 1, 2013.

end insert

(b) The Superintendent shall annually compute a county local
control funding formula transition adjustment for each county
superintendent of schools as follows:

(1) Subtract the amount computed pursuant to subdivision (a)
from the amount computed pursuant to subdivision (e) of Section
2574. A difference of less than zero shall be deemed to be zero.

(2) Divide the difference for each county superintendent of
schools calculated pursuant to paragraph (1) by the total sum of
the differences for all county superintendents of schools calculated
pursuant to paragraph (1).

(3) Multiply the proportion calculated for each county begin delete office of
education end delete begin insert superintendent of schools end insert pursuant to paragraph (2) by
the amount of funding specifically appropriated for purposes of
subdivision (f). The amount calculated shall not exceed the
difference for the county superintendent of schools calculated
pursuant to paragraph (1).

(c) The Superintendent shall subtract from the amount calculated
pursuant to subdivision (a) the sum of each of the following:

(1) Local property tax revenues received pursuant to Section
2573 in the then current fiscal year.

(2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.

(3) The amount received pursuant to subparagraph (C) of
paragraph (3) of subdivision (a) of Section 33607.5 of the Health
and Safety Code that is considered property taxes pursuant to that
section.

(4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(5) The amount, if any, received pursuant to subparagraph (B)
of paragraph (3) of subdivision (e) of Section 36 of Article XIII
of the California Constitution.

(d) The Superintendent shall subtract from the amount computed
pursuant to subdivision (e) of Section 2574 the sum of the amounts
computed pursuant to paragraphs (1) to (5), inclusive, of
subdivision (c).

(e) The Superintendent shall annually apportion to each county
superintendent of schools the amount calculated pursuant to
subdivision (c) unless the amount computed pursuant to subdivision
(c) is negative. If the amount computed is negative, except as
provided in subdivision (f), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during the
fiscal year. In the following fiscal year, that amount, excluding
any amount of funds used for purposes of subdivision (f), shall be
considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578. State aid shall not be apportioned
to the county superintendent of schools pursuant to this subdivision
if the amount computed pursuant to subdivision (c) is negative.

(f) (1) The Superintendent shall apportion, from an
appropriation specifically made for this purpose, the amount
computed pursuant to subdivision (b), or, if the amount computed
pursuant to subdivision (c) is negative, the sum of the amounts
computed pursuant to subdivisions (b) and (c) if the sum if greater
than zero.

(2) The Superintendent shall apportion any portion of the
appropriation made for purposes of paragraph (1) that is not
apportioned pursuant to paragraph (1) pursuant to the following
calculation:

(A) Add the amount calculated pursuant to subdivision (b) to
the amount computed pursuant to subdivision (a) for a county
superintendent of schools.

(B) Subtract the amount computed pursuant to subparagraph
(A) from the amount computed pursuant to subdivision (e) of
Section 2574 for the county superintendent of schools.

(C) Divide the difference for the county superintendent of
schools computed pursuant to subparagraph (B) by the sum of the
differences for all county superintendents of schools computed
pursuant to subparagraph (B).

(D) Multiply the proportion computed pursuant to subparagraph
(C) by the unapportioned balance in the appropriation. begin insert That product
shall be the county superintendent of schools’ proportion of total
need. end insert

(E) Apportion to each county superintendent of schools the
amount calculated pursuant to subparagraph (D), or if subdivision
(c) is negative, apportion the sums of subdivisions (b) and (c) and
subparagraph (D) of this subdivision if the sum is greater than
zero.

(F) The Superintendent shall repeat the computation made
pursuant to this paragraph, accounting for any additional amounts
apportioned after each computation, until the appropriation made
for purposes of paragraph (1) is fully apportioned.

(G) The total amount apportioned pursuant to this subdivision
to a county superintendent of schools shall not exceed the
difference for the county superintendent of schools calculated
pursuant to paragraph (1) of subdivision (b).

begin insert

(H) For purposes of this paragraph, the proportion of need that
is funded from any appropriation made specifically for purposes
of this subdivision in the then current fiscal year shall be
considered fixed as of the second principal apportionment for that
fiscal year. Adjustments to a county superintendent of schools’
total need computed pursuant to subparagraph (D) after the second
principal apportionment for the then current fiscal year shall be
funded based on the fixed proportion of need that is funded for
that fiscal year pursuant to this subdivision, and shall be
continuously appropriated pursuant to Section 14002.

end insert

(g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is less than the amount computed pursuant to subdivision (d),
in the first fiscal year following the fiscal year in which the sum
of the apportionments computed pursuant to subdivisions (e) and
(f) is equal to, or greater than, the amount computed pursuant to
subdivision (d) of this section, the Superintendent shall apportion
to the county superintendent of schools the amount computed in
subdivision (d) in that fiscal year and each fiscal year thereafter
instead of the amounts computed pursuant to subdivisions (e) and
(f).

(2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is greater than the amount computed pursuant to subdivision
(d), in the first fiscal year in which the amount computed pursuant
to subdivision (c) would be less than the amount computed pursuant
to subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d)
in that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).

(3) In each fiscal year, the Superintendent shall determine the
percentage of county superintendents of schools that are
apportioned funding that is less than the amount computed pursuant
to subdivision (d), as of the second principal apportionment of the
fiscal year. If the percentage is less than 10 percent, the
Superintendent shall apportion to those county superintendents of
schools funding equal to the amount computed in subdivision (d)
in that fiscal year and for each fiscal year thereafter instead of the
amounts calculated pursuant to subdivisions (e) and (f).

(4) Commencing with the first fiscal year after the
apportionments in paragraph (3) are made, the adjustments in
paragraph (4) of subdivision (a) of Section 2574 and subparagraph
(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
made only if an appropriation for those purposes is included in the
annual Budget Act.

(5) If the calculation pursuant to subdivision (d) is negative and
the Superintendent apportions to a county superintendent of schools
the amount computed pursuant to subdivision (d) pursuant to
paragraph (1), (2), or (3) of this subdivision, an amount of property
tax of the county superintendent of schools equal to the negative
amount shall be deemed restricted and not available for expenditure
during that fiscal year. In the following fiscal year the restricted
amount shall be considered restricted local property tax revenue
for purposes of subdivision (a) of Section 2578.

(h) Commencing with the 2013-14 fiscal year, the
Superintendent shall apportion to a county superintendent of
schools an amount of state aid, including any amount apportioned
pursuant to subdivisions (f) and (g), that is no less than the amount
calculated in subparagraph (A) of paragraph (2) of subdivision (a).

(i) (1) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from
any of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to,
a regional occupational center or program joint powers agency
established in accordance with Article 1 (commencing with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government
Code for purposes of providing instruction to pupils enrolled in
grades 9 to 12, inclusive, shall not redirect that funding for another
purpose unless otherwise authorized begin delete in end delete begin insert by end insert law or pursuant to an
agreement between the regional occupational center or program
joint powers agency and the contracting county superintendent of
schools.

(2) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

(j) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from
any of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to,
a home-to-school transportation joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation shall not redirect that
funding for another purpose unless otherwise authorized begin delete in end delete begin insert by end insert law
or pursuant to an agreement between the home-to-school
transportation joint powers agency and the contracting county
superintendent of schools.

(k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school
transportation programs, the county superintendent of schools shall
expend, pursuant to Article 2 (commencing with Section 39820)
of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 10
(commencing with Section 41850) of Chapter 5 of Part 24 of
Division 3 of Title 2, and the Small School District Transportation
program, as set forth in Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of Division 3 of Title 2, no less for
those programs than the amount of funds the county superintendent
of schools expended for home-to-school transportation in the
2012-13 fiscal year.

(2) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(3) For the 2013-14 and 2014-15 fiscal years only, of the funds
a county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers
or programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a county begin delete office of education end delete
begin insert superintendent of schools end insert may include expenditures made by a
school district within the county for purposes of regional
occupational centers or programs so long as the total amount of
expenditures made by the school districts and the county begin delete office of
education equal or exceed end delete begin insert superintendent of schools equals or
exceeds end insert the total amount required to be expended for purposes of
regional occupational centers or programs pursuant to this
paragraph and paragraph (7) of subdivision (a) of Section 42238.03.

(l) The funds apportioned pursuant to this section and Section
2574 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 2576 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

2576.  

(a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil
not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
of paragraph (4) of subdivision (c) of Section 2574, or Article 2.5
(commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2, any attendance generated by that pupil shall
be credited to the school district of residence. Enrollment of these
pupils shall be transferred to the school district of residence for
purposes of calculating the percentage of unduplicated pupils
pursuant to Section 42238.02.

(b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, enrolled in a
school operated by a county superintendent of schools shall be
deemed to be the school district that last provided educational
services to begin delete that end delete begin insert the homeless end insert child or, if it is not possible to
determine that school district, the begin delete largest school district in the
county. end delete begin insert nonbasic aid school district with the largest average daily
attendance in the county that serves the grade level in which the
homeless child would be enrolled. end insert

begin insert

(c) If a county superintendent of schools grants permission to
a pupil to attend school in an adjoining state pursuant to Section
2000, attendance generated by that pupil shall be credited to the
school district of residence.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 2578 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

2578.  

(a) Every fiscal year the Superintendent shall determine
the amount of funds that will be restricted for each county
superintendent of schools pursuant to subdivisions (e) and (g) of
Section 2575, as of June 30 of the prior fiscal year.

(b) The auditor-controller of each county shall distribute the
amounts determined in subdivision (a) to the Supplemental
Revenue Augmentation Fund created within the county pursuant
to Section 100.06 of the Revenue and Taxation Code. The amount
of funds required to be transferred by this subdivision shall be
transferred annually in two equal shares with the first share
transferred on or before January 15 of each year and the second
share transferred after January 15 and on or before May 1 of each
year.

(c) The funds transferred to the Supplemental Revenue
Augmentation Fund begin delete for purposes of end delete begin insert pursuant to end insert this section shall
be transferred by the county office of education to the
begin delete auditor-controller of the county end delete begin insert Controller in amounts determined
by the Director of Finance, end insert and shall be exclusively used to offset
state costs of providing trial court services and costs, until the
funds are exhausted.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 37700 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

37700.  

(a) Notwithstanding any other law, the Pacific Unified
School District, the Leggett Valley Unified School District, and
the Reeds Creek Elementary School District may operate one or
more schools in their respective begin insert school end insert districts on a four-day
school week, if the begin insert school end insert district complies with the instructional
time requirements specified in Section 37701 and the other
requirements of this chapter.

(b) If a school district operates one or more schools on a
four-day week pursuant to this section and the program for the
school year provides less than the 180 days of instruction required
under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
begin delete allocation end delete begin insert grant apportionment end insert pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, begin delete per unit of average
daily attendance for that fiscal year by the amount the school
district would have received for the increase received pursuant to
subdivision (a) of Section 46200, as it read on January 1, 2013, as
adjusted in fiscal years subsequent to the 1984-85 fiscal year. end delete begin insert for
the average daily attendance of each affected grade level, by
0.0056 multiplied by that apportionment for each day less than
what was required by subdivision (a) of this section, as this section
read on January 1, 2013, up to a maximum of five days. end insert If a school
district operates one or more schools on a four-day school week
pursuant to this section and the program provides less than the
minimum instructional minutes required under Section 46201, as
it read on January 1, 2013, the Superintendent shall reduce the
local control funding formula begin delete allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit
of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the 1987-88 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph
(6) of subdivision (b) of Section 42238, as it read on January 1,
2013, as adjusted from the 1987-88 fiscal year to the 2012-13
fiscal year, inclusive, and, commencing with the 2013-14 fiscal
year, pursuant to the local control funding formula allocation
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03, per unit of average daily attendance. end delete begin insert grant
apportionment pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03, for the average daily attendance of
each affected grade level, by the amount of that apportionment
multiplied by the percentage of the minimum required minutes at
that grade level that the school district failed to offer. end insert

(c) A school district with an exclusive bargaining representative
may operate a school on a four-day school week pursuant to this
section only if the school district and the representative of each
bargaining unit of school district employees mutually agree to that
operation in a memorandum of understanding.

(d) Notwithstanding begin delete this section, end delete begin insert subdivisions (a), (b), and (c), end insert
upon a determination that a school district identified in subdivision
(a) equals or exceeds its local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, the school district, as a
condition of apportionment pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, shall offer 180 days
or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a)
of Section 46207.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 37710.3 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

37710.3.  

(a) Beginning in the 2010-11 fiscal year, the Alpaugh
Unified School District may operate one or more schools in the
school district on a four-day school week if the begin insert school end insert district
complies with the instructional time requirements in Section 37701
and the other requirements of this chapter. The state board may
waive five-consecutive-day operating requirements for any of the
following programs that operate on a four-day school week
pursuant to this section, provided that the begin insert school end insert district meets the
minimum time requirement for each program:

(1) Preschools.

(2) Before and after school programs.

(3) Independent study programs.

(4) Child nutrition and food service programs.

(5) Community day schools.

(6) Regional occupational centers or programs.

(7) Continuation high schools.

(b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program
for the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
begin delete allocation end delete begin insert grant apportionment end insert pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, begin delete per unit of average
daily attendance for that fiscal year by the amount the school
district would have received for the increase received pursuant to
subdivision (a) of Section 46200, as it read on January 1, 2013, as
adjusted in fiscal years subsequent to the 1984-85 fiscal year. end delete begin insert for
the average daily attendance of each affected grade level, by
0.0056 multiplied by that apportionment for each day less than
what was required in subdivision (a) of this section, as this section
read on January 1, 2013, up to a maximum of five days. end insert If the
school district operates one or more schools on a four-day school
week pursuant to this section, and the program provides fewer than
the minimum instructional minutes required under Section 46201,
as it read on January 1, 2013, the Superintendent shall reduce the
local control funding formula begin delete allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit
of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the base revenue limit per unit of
average daily attendance pursuant to subdivision (a) of Section
46201, as it read on January 1, 2013, as adjusted from the 1987-88
fiscal year to the 2012-13 fiscal year, inclusive, and, commencing
with the 2013-14 fiscal year, pursuant to the local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03, per unit of average daily attendance. end delete
begin insert grant apportionment pursuant to Section 42238.02, as implemented
by Section 42238.03, for the average daily attendance of each
affected grade level, by the amount of that apportionment
multiplied by the percentage of the minimum required minutes at
that grade level that the school district failed to offer. end insert

(c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid begin delete Standardized Testing and Reporting
Program end delete begin insert California Assessment of Student Performance and
Progress end insert test scores operating on a four-day school week fails to
achieve its Academic Performance Index growth target pursuant
to Section 52052 for two consecutive years, the authority of that
school to operate on a four-day school week shall be permanently
revoked commencing with the school year following the second
consecutive year the school failed to achieve its Academic
Performance Index growth rate.

(d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2015. The report shall include, but not necessarily be
limited to, information on all of the following:

(1) Programs the begin insert school end insert district offered on the fifth schoolday
and their participation rates.

(2) Whether the four-day school week schedule resulted in any
fiscal savings.

(3) Impact on overall attendance of the schools operating a
four-day school week.

(4) Programs for which the state board waived minimum time
and five-consecutive-day requirements and the operational and
educational effects of the programs if they operated at less time
than required.

(5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in
session.

(6) Information on the Academic Performance Index, pursuant
to Section 52052, for every year a school in the begin insert school end insert district
operated on a four-day school week. The information shall include,
but not necessarily be limited to, the base and growth Academic
Performance Index of each school that operated on a four-day
school week and whether that school met the Academic
Performance growth targets.

(e) Notwithstanding begin delete this section, end delete begin insert subdivisions (a) to (d),
inclusive, end insert upon a determination that the school district identified
in subdivision (a) equals or exceeds its local control funding
formula target computed pursuant to Section 42238.02 as
determined by the calculation of a zero difference pursuant to
paragraph (1) of subdivision (b) of Section 42238.03, the school
district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall
offer 180 days or more of instruction per school year, and meet
the minimum minute requirements pursuant to paragraph (1) of
subdivision (a) of Section 46207.

(f) This section shall remain in effect only until January 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2016, deletes or extends that date.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 37710.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

37710.5.  

(a) Beginning in the 2009-10 fiscal year, the Potter
Valley Community Unified School District may operate one or
more schools in the school district on a four-day school week if
the school district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter. The state board may waive five-consecutive-day operating
requirements for any of the following programs that operate on a
four-day week pursuant to this section, provided that the school
district meets the minimum time requirement for each program:

(1) Preschools.

(2) Before and after school programs.

(3) Independent study programs.

(4) Child nutrition and food service programs.

(5) Community day schools.

(6) Regional occupational centers or programs.

(7) Continuation high schools.

(b) If the school district operates one or more schools on a
four-day week pursuant to this section, and the program for the
school year provides fewer than the 180 days of instruction required
under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
begin delete allocation end delete begin insert grant apportionment end insert pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, begin delete per unit of average
daily attendance for that fiscal year by the amount the school
district would have received for the increase received pursuant to
subdivision (a) of Section 46200, as it read on January 1, 2013, as
adjusted in fiscal years subsequent to the 1984-85 fiscal year. end delete begin insert for
the average daily attendance of each affected grade level, by
0.0056 multiplied by that apportionment for each day less than
what was required in subdivision (a) of this section, as this section
read on January 1, 2013, up to a maximum of five days. end insert If the
school district operates one or more schools on a four-day school
week pursuant to this section, and the program provides fewer than
the minimum instructional minutes required under Section 46201,
as it read on January 1, 2013, the Superintendent shall reduce the
local control funding formula begin delete allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit
of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the base revenue limit per unit of
average daily attendance pursuant to subdivision (a) of Section
46201, as it read on January 1, 2013, as adjusted from the 1987-88
fiscal year to the 2012-13 fiscal year, inclusive, and, commencing
with the 2013-14 fiscal year, pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, per unit of average
daily attendance. end delete begin insert grant apportionment pursuant to Section
42238.02, as implemented by Section 42238.03, for the average
daily attendance of each affected grade level, by the amount of
that apportionment multiplied by the percentage of the minimum
required minutes at that grade level that the school district failed
to offer. end insert

(c) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education and the Assembly Committee on Education on January
15, 2014. The report shall include, but not necessarily be limited
to, information on the following:

(1) Programs the begin insert school end insert district offered on the fifth day and
their participation rates.

(2) Whether the four-day school week schedule resulted in any
fiscal savings.

(3) Impact on overall attendance of the schools operating a
four-day school week.

(4) Programs for which the Superintendent waived minimum
time and five-consecutive-day requirements and the operational
and educational effect of the programs if they operated at less time
than required.

(d) Notwithstanding begin delete this section, end delete begin insert subdivisions (a), (b), and (c), end insert
upon a determination that the school district identified in
subdivision (a) equals or exceeds its local control funding formula
target computed pursuant to Section 42238.02 as determined by
the calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, the school district, as a
condition of apportionment pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, shall offer 180 days
or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a)
of Section 46207.

(e) This section shall remain in effect only until January 1, 2015,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2015, deletes or extends that date.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 37712 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

37712.  

(a) Beginning in the 2013-14 fiscal year, the Moorpark
Unified School District may operate one or more high schools
offering a middle college program in the school district on a
four-day school week, if the school district complies with the
instructional time requirements specified in Section 37701 and the
other requirements of this chapter. The state board may waive the
five-consecutive-day operating requirements for a middle college
program that operates on a four-day school week pursuant to this
section, provided that the school district meets the minimum time
requirement for the middle college program.

(b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program
for the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
begin delete allocation end delete begin insert grant apportionment end insert pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, begin delete per unit of average
daily attendance for that fiscal year by the amount the school
district would have received for the increase received pursuant to
subdivision (a) of Section 46200, as it read on January 1, 2013, as
adjusted in fiscal years subsequent to the 1984-85 fiscal year. end delete begin insert for
the average daily attendance of each affected grade level, by
0.0056 multiplied by that apportionment for each day less than
what was required in subdivision (a) of this section, as this section
read on January 1, 2013, up to a maximum of five days. end insert If the
school district operates one or more schools on a four-day school
week pursuant to this section, and the program provides fewer than
the minimum instructional minutes required under Section 46201,
as it read on January 1, 2013, the Superintendent shall reduce the
local control funding begin delete formula allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit
of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the base revenue limit per unit of
average daily attendance pursuant to subdivision (a) of Section
46201, as it read on January 1, 2013, as adjusted from the 1987-88
fiscal year to the 2012-13 fiscal year, inclusive, and, commencing
with the 2013-14 fiscal year, pursuant to the local control funding
formula allocation pursuant to Section 42238.02, as implemented
pursuant to Section 42238.03, per unit of average daily attendance. end delete
begin insert grant apportionment pursuant to Section 42238.02, as implemented
by Section 42238.03, for the average daily attendance of each
affected grade level, by the amount of that apportionment
multiplied by the percentage of the minimum required minutes at
that grade level that the school district failed to offer. end insert

(c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid begin delete Standardized Testing and Reporting
Program end delete begin insert California Assessment of Student Performance and
Progress end insert test scores operating on a four-day school week fails to
achieve its Academic Performance Index growth target pursuant
to Section 52052 for two consecutive years, the authority of that
school to operate on a four-day school week shall be permanently
revoked commencing with the school year following the second
consecutive year the school failed to achieve its Academic
Performance Index growth rate.

(d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2018. The report shall include, but not necessarily be
limited to, information on all of the following:

(1) Programs the school district offered on the fifth schoolday
and their participation rates.

(2) If the four-day school week schedule resulted in fiscal
savings.

(3) Impact on overall attendance of the schools operating a
four-day school week.

(4) Programs for which the state board waived minimum time
and five-consecutive-day requirements and the operational and
educational effects of the programs if they operated at less time
than required.

(5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in
session.

(6) Information on the Academic Performance Index, pursuant
to Section 52052, for every year a school in the school district
operated on a four-day school week. The information shall include,
but not necessarily be limited to, the base and growth Academic
Performance Index of each school that operated on a four-day
school week and whether that school met the Academic
Performance Index growth targets.

(7) Specific outcomes for pupils attending a school operating
on a four-day school week including, but not limited to, attendance
rates, graduation rates, college entrance and attendance rates, and
employment rates of pupils who do not attend college.

(e) The Moorpark Unified School District operating one or more
schools on a four-day school week pursuant to this section may
claim a day of attendance for the pupils enrolled in a school
operating on a four-day school week pursuant to Sections 11300,
11301, and 46146.5.

(f) Notwithstanding begin delete this section, end delete begin insert subdivisions (a) to (e),
inclusive, end insert upon a determination that the school district identified
in subdivision (a) equals or exceeds its local control funding
formula target computed pursuant to Section 42238.02, as
determined by the calculation of a zero difference pursuant to
paragraph (1) of subdivision (b) of Section 42238.03, the school
district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall
offer 180 days or more of instruction per year, and shall meet the
minimum minute requirements pursuant to paragraph (4) of
subdivision (a) of Section 46207.

(g) This section shall become inoperative on June 30, 2018,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the dates on which it becomes inoperative and
is repealed.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 41376.1 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 41376.1. end insert   

(a) Commencing with the 2013-14 fiscal year, until
the Superintendent determines that a school district is funded
pursuant to Section 42238.02 in the prior fiscal year, and
notwithstanding the requirement to decrease average daily
attendance pursuant to subdivisions (d), (e), and (f) of Section
41376 and subdivision (e) of Section 41378, the Superintendent
shall compute a reduction to the school district local control
funding formula entitlement pursuant to Section 42238.02, as
implemented by Section 42238.03, for the specified school year
by the sum of the following:

(1) (A) Multiply the sum of the products obtained in subdivision
(e) of Section 41378 and subdivision (d) of Section 41376 by the
grade span adjusted base grant specified in subparagraph (A) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(B) Multiply the product obtained in subparagraph (A) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.

(2) (A) Multiply the product obtained pursuant to subdivision
(e) of Section 41376 by the funded average daily attendance for
grades 4 to 6, inclusive, reported by the school district pursuant
to Section 42238.05 for the specified school year divided by the
funded average daily attendance for grades 4 to 8, inclusive,
reported by the school district pursuant to Section 42238.05 for
the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (B) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(C) Multiply the product obtained in subparagraph (B) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.

(3) (A) Multiply the product obtained pursuant to subdivision
(e) of Section 41376 by the funded average daily attendance for
grades 7 and 8 reported by the school district pursuant to Section
42238.05 for the specified school year divided by the funded
average daily attendance for grades 4 to 8, inclusive, reported by
the school district pursuant to Section 42238.05 for the specified
school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (C) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(C) Multiply the product obtained in subparagraph (B) by the
sum of the entitlements computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.

(b) Commencing with the 2013-14 fiscal year, if the
Superintendent determines that a school district is funded pursuant
to Section 42238.02 in the prior fiscal year, and notwithstanding
the requirement to decrease average daily attendance pursuant to
subdivisions (d), (e), and (f) of Section 41376 and subdivision (e)
of Section 41378, the Superintendent shall compute a reduction
to the school district local control funding formula entitlement
pursuant to Section 42238.02 for the specified school year by the
sum of the following:

(1) Multiply the sum of the products obtained in subdivision (e)
of Section 41378 and subdivision (d) of Section 41376 by the grade
span adjusted base grant specified in subparagraph (A) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(2) (A) Multiply the product obtained pursuant to subdivision
(e) of Section 41376 by the funded average daily attendance for
grades 4 to 6, inclusive, reported by the school district pursuant
to Section 42238.05 for the specified school year divided by the
funded average daily attendance for grades 4 to 8, inclusive,
reported by the school district pursuant to Section 42238.05 for
the specified school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (B) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

(3) (A) Multiply the product obtained pursuant to subdivision
(e) of Section 41376 by the funded average daily attendance for
grades 7 and 8 reported by the school district pursuant to Section
42238.05 for the specified school year divided by the funded
average daily attendance for grades 4 to 8, inclusive, reported by
the school district pursuant to Section 42238.05 for the specified
school year.

(B) Multiply the product obtained in subparagraph (A) by the
grade span adjusted base grant specified in subparagraph (C) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.

end insert

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 41544 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

41544.  

(a) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read
on January 1, 2001, and that received an apportionment pursuant
to subdivision (h) of Section 42247.4, as that section read on
January 1, 2001, because a court order directs pupils to transfer to
that school district as part of the court-ordered voluntary pupil
transfer program, the Superintendent, from the 2001-02 fiscal year
to the 2012-13 fiscal year, inclusive, shall calculate an
apportionment of state funds for that basic aid school district that
provides 70 percent of the school district revenue limit calculated
pursuant to Section 42238, as that section read on January 1, 2013,
that would have been apportioned to the school district from which
the pupils were transferred for the average daily attendance of any
pupils credited under that court order who did not attend the basic
aid school district before the 1995-96 fiscal year.

(b) (1) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read
on January 1, 2001, and that received an apportionment pursuant
to subdivision (h) of Section 42247.4, as that section read on
January 1, 2001, because a court order directs pupils to transfer to
that school district as part of the court-ordered voluntary pupil
transfer program, the Superintendent, commencing with the
2013-14 fiscal year, shall calculate an apportionment of state funds
for that basic aid school district that provides 70 percent of the
school district local control funding formula base grant calculated
pursuant to subdivision (d) of Section 42238.02, as implemented
by Section 42238.03, that would have been apportioned to the
school district from which the pupils were transferred for the
average daily attendance of any pupils credited under that court
order who did not attend the basic aid school district before the
1995-96 fiscal year.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district from which the pupil or pupils
were transferred is funded pursuant to Section 42238.02 in the
prior fiscal year, the Superintendent shall apportion, for average
daily attendance credited pursuant to paragraph (1), 70 percent of
the sum of the entitlements for the school district from which the
pupil or pupils were transferred for the specified fiscal year as
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, divided by the average daily attendance of that school
district for that fiscal year and then multiplied by the ratio of local
control formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for that fiscal year computed pursuant to Section
42238.02.

begin insert

(3) If the entitlements for the school district from which the
pupil or pupils were transferred computed pursuant to paragraphs
(1) to (4), inclusive, of subdivision (a), and paragraph (3) of
subdivision (b), of Section 42238.03, include funding calculated
pursuant to Article 4 (commencing with Section 42280) of Chapter
7 for a fiscal year, paragraph (2) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to paragraph (1).

end insert

(c) For purposes of subdivision (b) of this section, “basic aid
school district” means a school district that does not receive from
the state, for any fiscal year in which this section is applied, an
apportionment of state funds pursuant to subdivision (o) of Section
42238.02.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 42238.01 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.01.  

For purposes of Section 42238.02, the following
definitions shall apply:

(a) “Eligible for free or reduced-price meals” means determined
to meet federal income eligibility criteria or deemed to be
categorically eligible for free or reduced-price meals under the
National School Lunch Program, as described in Part 245 of Title
7 of the Code of Federal Regulations. begin insert A school participating in a
special assistance alternative authorized by Section 11(a)(1) of
the Richard B. Russell National School Lunch Act (Public Law
113-79), including Provision 2, Provision 3, or the Community
Eligibility Option, may establish a base year for purposes of the
local control funding formula by collecting household income data
to determine whether a student meets free and reduced-price meal
income eligibility criteria at least once every four years, if the
school determines free and reduced-price meal eligibility for each
new enrolled or disenrolled pupil between base year eligibility
determination collections. A school that uses the special assistance
alternative shall maintain information on each student’s income
eligibility status and annually submit information on that status
in the California Longitudinal Pupil Achievement Data System
pursuant to paragraph (2) of subdivision (b) of Section 42238.02
or subparagraph (A) of paragraph (3) of subdivision (b) of Section
2574, as applicable. To the extent permitted by federal law, a
school may choose to establish a new base year for purposes of
the National School Lunch Program at the same time the school
establishes a new base year for purposes of the local control
funding formula. A school may use National School Lunch Program
application forms to collect household income data as permitted
under the National School Lunch Program. If the use of National
School Lunch Program application forms is not permitted, a school
shall use alternative income data collection forms. end insert

(b) “Foster youth” means begin delete a foster child, as described in
subdivision (a) of Section 48853.5, or a end delete begin insert any of the following: end insert

begin insert

(1) A child who is the subject of a petition filed pursuant to
Section 300 of the Welfare and Institutions Code, whether or not
the child has been removed from his or her home by the juvenile
court pursuant to Section 319 or 361 of the Welfare and Institutions
Code.

end insert begin insert

(2) A child who is the subject of a petition filed pursuant to
Section 602 of the Welfare and Institutions Code, has been removed
from his or her home by the juvenile court pursuant to Section 727
of the Welfare and Institutions Code, and is in foster care as
defined by subdivision (d) of Section 727.4 of the Welfare and
Institutions Code.

end insert

begin insert (3) end insert begin insert   end insert begin insert A end insert nonminor under the transition jurisdiction of the juvenile
court, as described in Section 450 of the Welfare and Institutions
Code, who satisfies all of the following criteria:

begin delete

(1)

end delete

begin insert (A) end insert  He or she has attained 18 years of age while under an order
of foster care placement by the juvenile court, and is not more than
19 years of age on or after January 1, 2012, not more than 20 years
of age on or after January 1, 2013, and not more than 21 years of
age, on or after January 1, 2014, and as described in Section
10103.5 of the Welfare and Institutions Code.

begin delete

(2)

end delete

begin insert (B) end insert  He or she is in foster care under the placement and care
responsibility of the county welfare department, county probation
department, Indian tribe, consortium of tribes, or tribal organization
that entered into an agreement pursuant to Section 10553.1 of the
Welfare and Institutions Code.

begin delete

(3)

end delete

begin insert (C) end insert  He or she is participating in a transitional independent living
case plan pursuant to Section 475(8) of the federal Social Security
Act (42 U.S.C. Sec. 675(8)), as contained in the federal Fostering
Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351), as described in Section 11403 of the
Welfare and Institutions Code.

(c) “Pupils of limited English proficiency” means pupils who
do not have the clearly developed English language skills of
comprehension, speaking, reading, and writing necessary to receive
instruction only in English at a level substantially equivalent to
pupils of the same age or grade whose primary language is English.
“English learner” shall have the same meaning as is provided for
in subdivision (a) of Section 306 and as “pupils of limited English
proficiency.”

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 42238.02 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.02.  

(a) The amount computed pursuant to this section
shall be known as the school district and charter school local
control funding formula.

(b) (1) For purposes of this section “unduplicated pupil” means
a pupil enrolled in a school district or a charter school who is either
classified as an English learner, eligible for a free or reduced-price
meal, or is a foster youth. A pupil shall be counted only once for
purposes of this section if any of the following apply:

(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.

(B) The pupil is classified as an English learner and is a foster
youth.

(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.

(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.

(2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English learner
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.

(3) (A) Commencing with the 2013-14 fiscal year, a county
office of education shall review and validate certified aggregate
English learner, foster youth, and free or reduced-price meal
eligible pupil data for school districts and charter schools under
its jurisdiction to ensure the data is reported accurately. The
Superintendent shall provide each county office of education with
appropriate access to school district and charter school data reports
in the California Longitudinal Pupil Achievement Data System
for purposes of ensuring data reporting accuracy.

(B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, and free or reduced-price meal eligible pupil counts are
consistent with the school district’s or charter school’s English
learner, foster youth, and free or reduced-price meal eligible pupil
records.

(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal
Pupil Achievement Data System. Under timeframes and procedures
established by the Superintendent, school districts and charter
schools may review and revise their submitted data on English
learner, foster youth, and free or reduced-price meal eligible pupil
counts to ensure the accuracy of data reflected in the California
Longitudinal Pupil Achievement Data System.

(5) The Superintendent shall annually compute the percentage
of unduplicated pupils for each school district and charter school
by dividing the enrollment of unduplicated pupils in a school
district or charter school by the total enrollment in that school
district or charter school pursuant to all of the following:

(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.

(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year
and the two prior fiscal years by the sum of the total pupil
enrollment for the current fiscal year and the two prior fiscal years.

begin insert

(D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a school
district’s or charter school’s enrollment of unduplicated pupils
and total pupil enrollment in the 2014-15 fiscal year instead of
the enrollment of unduplicated pupils and total pupil enrollment
in the 2013-14 fiscal year if doing so would yield an overall
greater percentage of unduplicated pupils.

end insert begin insert

(ii) It is the intent of the Legislature to review each school
district and charter school’s enrollment of unduplicated pupils for
the 2013-14 and 2014-15 fiscal years and provide one-time
funding, if necessary, for a school district or charter school with
higher enrollment of unduplicated pupils in the 2014-15 fiscal
year as compared to the 2013-14 fiscal year.

end insert begin insert

(6) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This paragraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.

end insert

(c) Commencing with the 2013-14 fiscal year and each fiscal
year thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.

(d) The Superintendent shall compute a grade span adjusted
base grant equal to the total of the following amounts:

(1) For the 2013-14 fiscal year, a base grant of:

(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.

(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.

(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.

(D) Eight thousand two hundred eighty-nine dollars ($8,289)
for average daily attendance in grades 9 to 12, inclusive.

(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month
period ending in the third quarter of the prior fiscal year. This
percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with
the annual average value of the same deflator for the 12-month
period ending in the third quarter of the second preceding fiscal
year, using the latest data available as of May 10 of the preceding
fiscal year, as reported by the Department of Finance.

(3) (A) The Superintendent shall compute an additional
adjustment to the kindergarten and grades 1 to 3, inclusive, base
grant as adjusted for inflation pursuant to paragraph (2) equal to
10.4 percent. The additional grant shall be calculated by
multiplying the kindergarten and grades 1 to 3, inclusive, base
grant, as adjusted by paragraph (2), by 10.4 percent.

(B) Until paragraph (4) of subdivision (b) of Section 42238.03
is effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:

(i) Determine a school district’s average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in
the prior year. For the 2013-14 fiscal year, this amount shall be
the average class enrollment for each schoolsite for kindergarten
and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

(ii) Determine a school district’s proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.

(iv) Determine the difference between the amount computed
pursuant to clause (i) and an average class enrollment of not more
than 24 pupils.

(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).

(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
24 pupils or less for each schoolsite in the 2012-13 fiscal year,
shall be exempt from the requirements of subparagraph (B) so long
as the school district continues to maintain an average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, of not more than 24 pupils, unless a collectively
bargained alternative ratio is agreed to by the school district.

(D) Upon full implementation of the local control funding
formula, as a condition of the receipt of funds in this paragraph,
all school districts shall maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils for each schoolsite in kindergarten and
grades 1 to 3, inclusive, unless a collectively bargained alternative
ratio is agreed to by the school district.

(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.

(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.

(4) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.

(e) The Superintendent shall compute a supplemental grant
add-on equal to 20 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to
(D), inclusive, of paragraph (1), as adjusted by paragraphs (2) to
(4), inclusive, of subdivision (d), by 20 percent and by the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.

(f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district’s or charter school’s percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district’s or
charter school’s total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the total enrollment in that school district or charter
school.

(2)  begin insert (A) end insert begin insert   end insert For a charter school physically located in only one
school district, the percentage of unduplicated pupils calculated
pursuant to paragraph (5) of subdivision (b) in excess of 55 percent
used to calculate concentration grants shall not exceed the
percentage of unduplicated pupils calculated pursuant to paragraph
(5) of subdivision (b) in excess of 55 percent of the school district
in which the charter school is physically located. For a charter
school physically located in more than one school district, the
charter school’s percentage of unduplicated pupils calculated
pursuant to paragraph (5) of subdivision (b) in excess of 55 percent
used to calculate concentration grants shall not exceed that of the
school district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess
of 55 percent of the school districts in which the charter school
has a school facility. The concentration grant shall be expended
in accordance with the regulations adopted pursuant to Section
42238.07.

begin insert

(B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department’s determination of
physical location. For a charter school authorized on appeal
pursuant to subdivision (j) of Section 47605, the department shall
include the sponsoring school district in the department’s
determination of physical location. The reported physical location
of the charter school shall be considered final as of the second
principal apportionment for that fiscal year. For purposes of this
paragraph, the percentage of unduplicated pupils of the school
district associated with the charter school pursuant to
subparagraph (A) shall be considered final as of the second
principal apportionment for that fiscal year.

end insert

(g) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Targeted Instructional Improvement Block Grant program,
as set forth in Article 6 (commencing with Section 41540) of
Chapter 3.2, for the 2012-13 fiscal year, as that article read on
January 1, 2013. A school district or charter school shall not receive
a total funding amount from this add-on greater than the total
amount of funding received by the school district or charter school
from that program in the 2012-13 fiscal year. The amount
computed pursuant to this subdivision shall reflect the reduction
specified in paragraph (2) of subdivision (a) of Section 42238.03.

(h) The Superintendent shall compute an add-on to the total
sum of a school district’s or charter school’s base, supplemental,
and concentration grants equal to the amount of funding a school
district or charter school received from funds allocated pursuant
to the Home-to-School Transportation program, as set forth in
former Article 2 (commencing with Section 39820) of Chapter 1
of Part 23.5, former Article 10 (commencing with Section 41850)
of Chapter 5, and the Small School District Transportation
program, as set forth in former Article 4.5 (commencing with
Section 42290), for the 2012-13 fiscal year. A school district or
charter school shall not receive a total funding amount from this
add-on greater than the total amount received by the school district
or charter school for those programs in the 2012-13 fiscal year.
The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.

(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:

(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily
attendance computed pursuant to paragraph (2) of subdivision (a)
of Section 42238.05 for purposes of the computation specified in
subdivision (d).

(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.

(2) The amount computed pursuant to Article 4 (commencing
with Section 42280) shall be added to the amount computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (d), as
multiplied by subparagraph (A) or (B) of paragraph (1), as
appropriate.

(j) The Superintendent shall adjust the sum of each school
district’s or charter school’s amount determined in subdivisions
(g) to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(k) A school district shall annually transfer to each of its charter
schools funding in lieu of property taxes pursuant to Section 47635.

(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph
(2) or pursuant to an agreement between the charter school and its
chartering authority.

(2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13
fiscal year pursuant to paragraph (2) of subdivision (b) of Section
42606, as that section read on January 1, 2013, may annually
redirect for another purpose a percentage of the amount of the
funding received on behalf of that charter school. The percentage
of funding that may be redirected shall be determined pursuant to
the following computation:

(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.

(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.

(iii) Subtract the amount computed pursuant to paragraphs (1)
to (3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i)
of Section 42238.02.

(iv) Compute a percentage by dividing the sum of the amounts
computed to clauses (i) and (ii) by the amount computed pursuant
to clause (iii).

(B) Multiply the percentage computed pursuant to subparagraph
(A) by the amount of funding the school district received on behalf
of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013.

(C) The maximum amount that may be redirected shall be the
lesser of the amount of funding the school district received on
behalf of the charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606,
and subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or the amount computed pursuant to subparagraph
(B).

(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount
of funding the schoolsite received pursuant to the charter school
block grant in the 2012-13 fiscal year.

(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to, this
section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation
Code, shall be made exclusive of the revenue received pursuant
to subparagraph (B) of paragraph (3) of subdivision (e) of Section
36 of Article XIII of the California Constitution.

(n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.

(o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of begin insert subparagraph (A) of paragraph (2) of end insert subdivision
(e) of Section begin delete 42238.03 end delete begin insert 42238.03, end insert shall be considered a “basic aid
school district” or an “excess tax entity.”

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 42238.025 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.025.  

(a) In the 2013-14 fiscal year, the Superintendent
shall compute an economic recovery target rate for each school
district and charter school equal to the sum of the following:

(1) (A) For each school district, the school district’s revenue
limit in the 2012-13 fiscal year as computed pursuant to this article,
as this article read on January 1, 2013, divided by the 2012-13
fiscal year average daily attendance of the school district computed
pursuant to Section 42238.05. For purposes of this section, average
daily attendance shall include any applicable revenue limit average
daily attendance and shall be considered final for purposes of this
section as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.

(B) For each charter school, the charter school’s general purpose
funding as computed pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the in-lieu property tax amount
provided to the charter school pursuant to Section 47635, as that
section read on January 1, 2013, divided by the 2012-13 fiscal
year average daily attendance of the charter school computed
pursuant to Section 42238.05. For purposes of this section, average
daily attendance shall include any applicable charter school general
purpose funding average daily attendance and shall be considered
final for purposes of this section as of the annual apportionment
for the 2012-13 fiscal year, as calculated for purposes of the
certification required on or before February 20, 2014, pursuant to
Sections 41332 and 41339.

(C) The amounts determined pursuant to subparagraphs (A) and
(B) shall not reflect the deficit factor adjustments set forth in
Section 42238.146 as that section read on January 1, 2013.

(D) The amounts determined pursuant to subparagraphs (A)
and (B) shall be adjusted for the cost-of-living adjustment for the
2013-14 fiscal year pursuant to paragraph (2) of subdivision (d)
of Section 42238.02 and an annual average cost-of-living
adjustment of 1.94 percent for the 2014-15 fiscal year to the
2020-21 fiscal year, inclusive.

(2) (A) For each school district and charter school, the sum of
the entitlements from items contained in Section 2.00 of the Budget
Act of 2012 for Items 6110-104-0001, 6110-105-0001,
6110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001,
6110-137-0001, 6110-144-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001,
6110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
6110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
6110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
6110-267-0001, 6110-268-0001, 6360-101-0001, 2012-13 fiscal
year funding for the Class Size Reduction Program pursuant to
Chapter 6.10 (commencing with Section 52120) of Part 28 of
Division 4, as it read on January 1, 2013, and 2012-13 fiscal year
funding for pupils enrolled in community day schools who are
mandatorily expelled pursuant to subdivision (d) of Section 48915,
divided by the 2012-13 fiscal year average daily attendance of the
school district computed pursuant to Section 42238.05. begin insert For
purposes of this subparagraph, 2012-13 fiscal year entitlements
shall be considered final as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections
41332 and 41339. end insert

(B) The amounts determined pursuant to this subdivision shall
not be adjusted for the reduction set forth in Section 12.42 of the
Budget Act of 2012.

(b) Of the amounts computed for school districts pursuant to
subdivision (a), the Superintendent shall determine the funding
rate per unit of average daily attendance above which fall not more
than 10 percent of the total number of school districts statewide.

(c) The Superintendent shall compute a 2020-21 fiscal year
local control funding formula rate for each school district and
charter school equal to the amount computed pursuant to Section
42238.02 for the 2013-14 fiscal year, adjusted for an annual
average cost-of-living adjustment of 1.94 percent for the 2014-15
fiscal year to the 2020-21 fiscal year, inclusive, divided by the
begin delete 2012-13 end delete begin insert 2013-14 end insert fiscal year average daily attendance of the school
district or charter school computed pursuant to Section 42238.05.
begin insert For purposes of this subdivision, the amount computed pursuant
to Section 42238.02 for the 2013-14 fiscal year shall be considered
final as of the second principal apportionment for the 2013-14
fiscal year, as calculated for purposes of the certification required
on or before July 2, 2014, pursuant to Sections 41335 and 41339. end insert

(d) (1) For each school district and charter school that has a
funding rate per unit of average daily attendance computed pursuant
to subdivision (a) that is equal to, or below, the funding rate per
unit of average daily attendance determined pursuant to subdivision
(b), the Superintendent shall subtract the amount computed
pursuant to subdivision (c) from the amount computed pursuant
to subdivision (a). Each school district or charter school for which
this calculation yields an amount greater than zero shall be eligible
for an economic recovery target payment equal to the amount of
the difference. A school district or charter school that has a funding
rate per unit of average daily attendance calculated pursuant to
subdivision (a) that exceeds the rate calculated pursuant to
subdivision (b) shall not be eligible for an economic recovery
target payment.

(2) Each school district or charter school eligible for an
economic recovery target payment pursuant to paragraph (1) shall
receive the following apportionments:

(A) For the 2013-14 fiscal year, one-eighth of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(B) For the 2014-15 fiscal year, begin delete two-eighths end delete begin insert one-quarter end insert of the
amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant
to Section 42238.05.

(C) For the 2015-16 fiscal year, three-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(D) For the 2016-17 fiscal year, begin delete four-eighths end delete begin insert one-half end insert of the
amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant
to Section 42238.05.

(E) For the 2017-18 fiscal year, five-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(F) For the 2018-19 fiscal year, begin delete six-eighths end delete begin insert three-quarters end insert of
the amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant
to Section 42238.05.

(G) For the 2019-20 fiscal year, seven-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13
fiscal year average daily attendance computed pursuant to Section
42238.05.

(H) For the 2020-21 fiscal year and each fiscal year thereafter,
the amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant
to Section 42238.05.

(3) In each fiscal year until a determination has been made that
all school districts and charter schools equal or exceed the local
control funding formula target computed pursuant to Section
42238.02, as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
the economic recovery target payment apportioned to each eligible
school district or charter school pursuant to paragraph (2) shall be
added to the school district’s or charter school’s funding amounts
that are continuously appropriated pursuant to subdivision (a) of
Section 42238.03 and included in the amount of funding that begin delete may
be end delete begin insert is subject to end insert offset pursuant to subdivision (c) of Section
42238.03. The amount apportioned pursuant to paragraph (2) shall
not receive a cost-of-living adjustment.

(4) Commencing with the first fiscal year in which all school
districts and charter schools are apportioned funding pursuant to
Section 42238.02, the economic recovery target calculated pursuant
to begin insert subparagraph (H) of end insert paragraph (2) shall be included as an
add-on to the amounts computed pursuant to subdivisions (c) to
(i), inclusive, of Section 42238.02 and included in the amount of
funding that begin delete may be end delete begin insert is subject to end insert offset pursuant to subdivision (j)
of Section 42238.02. The amount included as an add-on pursuant
to this paragraph shall not receive a cost-of-living adjustment.

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 42238.03 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.03.  

(a) Commencing with the 2013-14 fiscal year and
each fiscal year thereafter, the Superintendent shall calculate a
base entitlement for the transition to the local control funding
formula for each school district and charter school equal to the
sum of the amounts computed pursuant to paragraphs (1) to (4),
inclusive. The amounts computed pursuant to paragraphs (1) to
(4), inclusive, shall be continuously appropriated pursuant to
Section 14002.

(1) The current fiscal year base entitlement funding level shall
be the sum of all of the following:

(A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district’s
2012-13 fiscal year revenue limit funding shall exclude amounts
computed pursuant to Article 4 (commencing with Section 42280).
begin insert For purposes of this subparagraph, 2012-13 fiscal year average
daily attendance and 2012-13 fiscal year revenue limits shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339. end insert

(B) (i) For charter schools, general purpose funding begin insert in the
2012-13 fiscal year end insert as computed pursuant to Article 2
(commencing with Section 47633) of Chapter 6 begin insert of Part 26.8 of
Division 4 end insert , as that article read on January 1, 2013, and the amount
of in-lieu property tax provided to the charter school pursuant to
Section 47635, as that section read on June 30, 2013, divided by
the 2012-13 average daily attendance of the charter school
computed pursuant to Section 42238.05. That quotient shall be
multiplied by the current fiscal year average daily attendance of
the charter school computed pursuant to Section 42238.05. begin insert For
purposes of this subparagraph, 2012-13 fiscal year average daily
attendance and 2012-13 fiscal year general purpose funding, as
computed pursuant to Article 2 (commencing with Section 47633)
of Chapter 6 of Part 26.8 of Division 4, as that article read on
January 1, 2013, shall be considered final as of the annual
apportionment for the 2012-13 fiscal year, as calculated for
purposes of the certification required on or before February 20,
2014, pursuant to Sections 41332 and 41339. end insert

(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1,
as that section read on January 1, 2013.

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, funding for qualifying necessary small
high school and necessary small elementary schools shall be
adjusted to reflect the funding levels that correspond to the 2012-13
necessary small high school and necessary small elementary school
allowances pursuant Article 4 (commencing with Section 42280)
and Section 42238.146, as those provisions read on January 1,
2013.

(2)  begin insert (A) end insert begin insert   end insert Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
the Class Size Reduction Program pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4, as it
read on January 1, 2013, and 2012-13 fiscal year funding for pupils
enrolled in community day schools who are mandatorily expelled
pursuant to subdivision (d) of Section 48915. The entitlement for
basic aid school districts shall include the reduction of 8.92 percent
as applied pursuant to subparagraph (A) of paragraph (1) of
subdivision (a) of begin delete Section 3 of Chapter 2 end delete begin insert Section 89 of Chapter
38 end insert of the Statutes of 2012. begin insert For purposes of this subparagraph,
2012-13 fiscal year entitlements shall be considered final as of
the annual apportionment for the 2012-13 fiscal year, as calculated
for purposes of the certification required on or before February
20, 2014, pursuant to Sections 41332 and 41339. end insert

begin insert

(B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health
and Safety Code, before the application of the 8.92-percent
reduction applied pursuant to subparagraph (A) of paragraph (1)
of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

end insert

(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant
to Section 42238.05. That quotient shall be multiplied by the
current fiscal year average daily attendance of the charter school
computed pursuant to Section 42238.05.

(4) The amount allocated to a school district or charter school
pursuant to paragraph (3) of subdivision (b) for the fiscal years
before the current fiscal year divided by the average daily
attendance of the school district or charter school for the fiscal
years before the current fiscal year computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the school district or charter school
computed pursuant to Section 42238.05.

(5) (A) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code for purposes of providing
instruction to secondary pupils shall not redirect that funding for
another purpose unless otherwise authorized in law or pursuant to
an agreement between the regional occupational center or program
joint powers agency and the contracting school district.

(B) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

(6) (A) (i) For the 2013-14 and 2014-15 fiscal years only, a
school district that, in the 2012-13 fiscal year, from any of the
funding sources identified in paragraph (1) or (2), received funds
on behalf of, or provided funds to, a home-to-school transportation
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code for purposes of providing pupil
transportation shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the home-to-school transportation joint powers agency
and the contracting school district.

(ii) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(B) In addition to subparagraph (A), of the funds a school district
receives for home-to-school transportation programs the school
district shall expend, pursuant to Article 2 (commencing with
Section 39820) of Chapter 1 of Part 23.5, Article 10 (commencing
with Section 41850) of Chapter 5, and the Small School District
Transportation program, as set forth in Article 4.5 (commencing
with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title
2, no less for those programs than the amount of funds the school
district expended for home-to-school transportation in the 2012-13
fiscal year.

(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
a school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district
expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a school district may include
expenditures made by its county office of education within the
school district for purposes of regional occupational centers or
programs so long as the total amount of expenditures by the school
district and the county office of education equal or exceed the total
amount required to be expended for purposes of regional
occupational centers or programs pursuant to this paragraph and
paragraph (3) of subdivision (k) of Section 2575.

begin insert

(8) For the 2013-14 and 2014-15 fiscal years only, and for
purposes of ensuring the continuity of essential induction and
training services for beginning teachers, the Alameda County
Superintendent of Schools shall withhold five hundred eighty-one
thousand five hundred forty dollars ($581,540) from the local
control funding formula apportionments of the Newark Unified
School District, and from those withheld funds shall allocate the
following amounts to the following entities:

end insert begin insert

(A) One hundred forty-seven thousand nine hundred dollars
($147,920) to the Alameda Unified School District.

end insert begin insert

(B) One hundred four thousand dollars ($104,000) to the San
Leandro Unified School District.

end insert begin insert

(C) One hundred sixty-four thousand six hundred twenty dollars
($164,620) to the Berkeley Unified School District.

end insert begin insert

(D) One hundred sixty-five thousand dollars ($165,000) to the
San Lorenzo Unified School District.

end insert

(b) Compute an annual local control funding formula transition
adjustment for each school district and charter school as follows:

(1) Subtract the amount computed pursuant to paragraphs (1)
to (4), inclusive, of subdivision (a) from the amount computed for
each school district or charter school under the local control
funding formula entitlements computed pursuant to Section
42238.02. School districts and charter schools with a negative
difference shall be deemed to have a zero difference.

(2) Each school district’s and charter school’s total need, as
calculated pursuant to paragraph (1), shall be divided by the sum
of all school districts’ and charter schools’ total need to determine
the school district’s or charter school’s respective proportions of
total need.

(3)  begin insert (A) end insert begin insert   end insert Each school district’s and charter school’s proportion
of total need shall be multiplied by any available appropriations
specifically made for purposes of this subdivision, and added to
the school district’s or charter school’s funding amounts as
calculated pursuant to subdivision (a).

begin insert

(B) For purposes of subparagraph (A), the proportion of total
need that is funded from any available appropriations specifically
made for purposes of this subdivision for a fiscal year shall be
considered fixed as of the second principal apportionment for that
fiscal year. Adjustments to a school district’s or charter school’s
total need, as computed pursuant to paragraph (1), subsequent to
the second principal apportionment for a fiscal year, shall be
funded based on the fixed proportion of total need that is funded
for that fiscal year pursuant to this subdivision and shall be
continuously appropriated pursuant to Section 14002.

end insert

(4) If the total amount of funds appropriated for purposes of
paragraph (3) pursuant to this subdivision are sufficient to fully
fund any positive amounts computed pursuant to paragraph (1),
the local control funding formula grant computed pursuant to
subdivision (c) of Section 42238.02 shall be adjusted to ensure
that any available appropriation authority is expended for purposes
of the local control funding formula.

(5) Commencing with the first fiscal year after either paragraph
(4) of this subdivision or paragraph (2) of subdivision (g) applies,
the adjustments in paragraph (2) of subdivision (d) of Section
42238.02 shall be made only if an appropriation for those
adjustments is included in the annual Budget Act.

(c) The Superintendent shall subtract from the amounts
computed pursuant to subdivisions (a) and (b) the sum of the
following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(d) A school district or charter school that has a zero difference
pursuant to paragraph (1) of subdivision (b) in the prior fiscal year
shall receive an entitlement equal to the amount calculated pursuant
to Section 42238.02 in the current fiscal year and future fiscal
years.

(e) Notwithstanding the computations pursuant to subdivisions
(b) to (d), inclusive, and Section 42238.02, commencing with the
2013-14 fiscal year, a school district or charter school shall receive
state-aid funding of no less than the sum of the amounts computed
pursuant to paragraphs (1) to (3), inclusive.

(1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district’s
2012-13 revenue limit funding shall exclude amounts computed
pursuant to Article 4 (commencing with Section 42280). begin insert For
purposes of this subparagraph, 2012-13 fiscal year average daily
attendance and 2012-13 fiscal year revenue limits shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339. end insert

(B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2
(commencing with Section 47633) of Chapter 6 begin insert of Part 26.8 of
Division 4 end insert , as that article read on January 1, 2013, and the amount
of in-lieu property tax provided to the charter school in the 2012-13
fiscal year pursuant to Section 47635, as that section read on
January 1, 2013, divided by the 2012-13 average daily attendance
of the charter school computed pursuant to Section 42238.05. That
quotient shall be multiplied by the current fiscal year average daily
attendance of the charter school computed pursuant to Section
42238.05. begin insert For purposes of this subparagraph, 2012-13 fiscal year
average daily attendance and 2012-13 fiscal year general purpose
funding, as computed pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, shall be considered final as of
the annual apportionment for the 2012-13 fiscal year, as calculated
for purposes of the certification required on or before February
20, 2014, pursuant to Sections 41332 and 41339. end insert

(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1,
as that section read on January 1, 2013.

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, the 2012-13 funding allowance
provided for qualifying necessary small high schools and necessary
small elementary schools pursuant to Article 4 (commencing with
Section 42280) and Section 42238.146, as those provisions read
on January 1, 2013.

(E) The amount computed pursuant to subparagraphs (A) to
(D), inclusive, shall be reduced by the sum of the amount computed
pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).

(2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
the Class Size Reduction Program pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4, as it
read on January 1, 2013, and 2012-13 fiscal year funding for pupils
enrolled in community day schools who are mandatorily expelled
pursuant to subdivision (d) of Section 48915. begin delete Notwithstanding
Section 39 of Chapter 38 of the Statutes of 2012, the end delete begin insert The end insert
entitlement for basic aid school districts shall include the reduction
of 8.92 percent as applied pursuant to subparagraph (A) of
paragraph (1) of subdivision (a) of begin delete Section 3 of Chapter 2 end delete begin insert Section
89 of Chapter 38 end insert of the Statutes of 2012. begin insert For purposes of this
subparagraph, 2012-13 fiscal year entitlements shall be considered
final as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339. end insert

begin insert

(B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health
and Safety Code, before the application of the 8.92-percent
reduction applied pursuant to subparagraph (A) of paragraph (1)
of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

end insert begin delete

(B)

end delete

begin insert (C) end insert  The Superintendent shall annually apportion any entitlement
provided to the state special schools from the items specified in
subparagraph (A) to the state special schools in the same amount
as the state special schools received from those items in the
2012-13 fiscal year.

(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school. That quotient shall
be multiplied by the current fiscal year average daily attendance
of the charter school.

(f) (1) For purposes of this section, commencing with the
2013-14 fiscal year and until all school districts and charter schools
equal or exceed their local control funding formula target computed
pursuant to Section 42238.02, as determined by the calculation of
a zero difference pursuant to paragraph (1) of subdivision (b), a
newly operational charter school shall be determined to have a
prior year per average daily attendance funding amount equal to
the lesser of:

(A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement,
calculated pursuant to subdivisions (a) and (b), received by that
school district in the prior year by prior year funded average daily
attendance of that school district. For purposes of this
subparagraph, a charter school that is physically located in more
than one school district shall use the calculated local control
funding entitlement per unit of average daily attendance of the
school district with the highest prior year funding amount per unit
of average daily attendance. begin insert For purposes of this subparagraph,
the prior year funding amount per unit of average daily attendance
for the school district in which the charter school is physically
located shall be considered final as of the second principal
apportionment of the prior fiscal year. end insert

(B) The charter school’s local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.

(2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school’s local control funding formula target.

(3) Upon a determination that all school districts and charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02, as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02
in that fiscal year and future fiscal years.

begin insert

(4) For purposes of this subdivision, the determination of a
charter school’s physical location shall be considered final as of
the second principal apportionment for the applicable fiscal year.

end insert

(g) (1) In each fiscal year the Superintendent shall determine
the percentage of school districts that are apportioned funding
pursuant to this section that is less than the amount computed
pursuant to Section 42238.02 as of the second principal
apportionments of the fiscal year. If the percentage is less than 10
percent, the Superintendent shall apportion funding to school
districts and charter schools equal to the amount computed pursuant
to Section 42238.02 in that fiscal year.

(2) For each fiscal year thereafter, the Superintendent shall
apportion funding to a school district and charter school equal to
the amount computed pursuant to Section 42238.02.

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 42238.05 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.05.  

(a) For purposes of Sections 42238.02, 42238.025,
and 42238.03, the fiscal year average daily attendance for a school
district shall be computed pursuant to paragraphs (1) to (3),
inclusive, as applicable.

(1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater, excluding units of average daily attendance resulting from
pupils attending schools funded pursuant to Article 4 (commencing
with Section 42280).

(2) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).

(3) Prior fiscal year average daily attendance shall be adjusted
for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.

(b) For purposes of this article, regular average daily attendance
shall be the base grant average daily attendance.

(c) For purposes of this section, the Superintendent shall
distribute total ungraded enrollment and average daily attendance
among kindergarten and each of grades 1 to 12, inclusive, in
proportion to the amounts of graded enrollment and average daily
attendance, respectively, in each of these grades.

(d) Subdivisions (a) to (c), inclusive, shall only apply to average
daily attendance generated by school districts and shall not apply
to average daily attendance generated by charter schools.

(e) A pupil shall not be counted more than once for purposes
of calculating average daily attendance pursuant to this section.

(f) For purposes of Sections 42238.02, 42238.025, and 42238.03,
average daily attendance for a charter school shall be the total
current year average daily attendance in the corresponding grade
level ranges for the charter begin delete school as computed pursuant to Section
47634.3. end delete begin insert school. end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 42238.055 is added to the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

begin insert 42238.055. end insert   

(a) Sections 42238.051 and 42238.052 do not
apply to resident pupils in charter schools operating under the
districtwide charter of a school district that has converted all of
its schools to charter status pursuant to Section 47606.

(b) For purposes of this section, “resident pupils” means pupils
who reside in, and are otherwise eligible to attend, a school in the
specified school district.

end insert

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 42238.18 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.18.  

(a) Notwithstanding any other begin delete provision of end delete law,
only those pupils enrolled in county office of education programs
while detained in a juvenile hall, juvenile home, day center,
juvenile ranch, juvenile camp, or regional youth educational facility
established pursuant to Article 23 (commencing with Section 850),
Article 24 (commencing with Section 880), and Article 24.5
(commencing with Section 894) of Chapter 2 of Part 1 of Division
2 of the Welfare and Institutions Code shall be counted as juvenile
court school pupils. For purposes of apportionments, those pupils
in a group home housing 25 or more children placed pursuant to
Sections 362, 727, and 730 of the Welfare and Institutions Code
or in any group home housing 25 or more children and operating
one or more additional sites under a central administration for
children placed pursuant to Section 362, 727, or 730 of the Welfare
and Institutions Code shall be reported as county group home and
institutions pupils to the Superintendent and shall be counted as
juvenile court school pupils for purposes of apportionments.

begin delete

(b) Notwithstanding any other provision of law, any county
superintendent of schools operating juvenile court schools, county
group home and institutions schools, or community schools, or
any combination of these schools shall maintain an account in their
general fund to be known as the juvenile court and community
school account, and shall deposit all funds derived from the
operation of juvenile court, county group home and institutions
schools, and community schools into that account. Expenditures
from the juvenile court and community school account shall be
limited to the following:

(1) Those expenditures defined as direct costs of instructional
programs by the California State School Accounting Manual,
except that facility costs, including the costs of renting, leasing,
purchasing, remodeling, constructing, or improving buildings and
the costs of purchasing or improving land, shall be allowed as an
instructional cost in the juvenile court and community school fund.
Deferred maintenance contributions made pursuant to Section
17584 may also be allowed as an instructional cost of juvenile
court and county community school programs, provided the
contribution does not exceed the program’s proportionate share
of total county school service fund expenditures as defined in
Section 17584, and provided the funds are used for deferred
maintenance of juvenile court and county community school
facilities.

(2) Expenditures that are defined as documented direct support
costs by the California State School Accounting Manual.

(3) Expenditures that are defined as allocated direct support
costs by the California State School Accounting Manual.

(4) Other expenditures for support and indirect charges.
However, these charges may not exceed 10 percent of the sum of
the expenditures in paragraphs (1), (2), and (3).

Expenditures that represent contract payments to other agencies
for the operation of juvenile court and community school programs
shall be included in the juvenile court and community school
account and the contract costs distributed to the cost categories
defined in paragraphs (1), (2), (3), and (4). At the end of any given
school year the net ending balance in the juvenile court and
community school account may be distributed to a reserved account
for economic contingencies or to a reserved account for capital
outlay, provided that the combined total transferred does not exceed
15 percent of the current year’s authorized expenditures as specified
above and also provided that funds placed in the reserved accounts
shall only be expended for juvenile court, county group home and
institutions, or community school programs. The net ending
balance, except for those funds placed in a capital outlay fund,
shall not exceed the greater of 15 percent of the previous year’s
expenditures or twenty-five thousand dollars ($25,000). A county
may accumulate over a period of two or more given school years
a net ending balance in the capital outlay reserved account of more
than 15 percent of the current fiscal year’s expenditures under
provisions of a resolution of the governing board. Funds in the
capital outlay reserve are to be used for capital outlay only. The
Superintendent shall require an annual certification by county
superintendents of schools beginning in the 1989-90 fiscal year
that juvenile court, county group home and institutions, and
community school funds have been expended as provided in this
section and shall withhold from the subsequent year’s
apportionment an amount equal to any excess ending balance or
excess transfers, as provided in this subdivision, in the juvenile
court and community school account.

end delete begin delete

(c)

end delete

begin insert (b) end insert  Notwithstanding any other begin delete provision of end delete law, pupils who are
referred by the county probation department under Section 601 or
654 of the Welfare and Institutions Code, shall be enrolled and
eligible for apportionments in county community schools only
after an individualized review and certification of the
appropriateness of enrollment in the county group home and
institution’s school or county community school. The
individualized review shall include representatives of the court,
the county begin delete department end delete begin insert office end insert of education, the county probation
department, and either the school district of residence or, in cases
in which the pupil resides in a group home or institution, the school
district in which the group home or institution is located, and, in
each case, the school district representative shall agree to the
appropriateness of the proposed placement and pupils so placed
shall have a probation officer assigned to their case.

begin delete

(d)

end delete

begin insert (c) end insert  Regardless of the operative date of the amendments to this
section made during the 1997 portion of the 1997-98 Regular
Session, this section, as so amended, shall be implemented as
though it had been operative on July 1, 1996. For the purpose of
implementing this section for the entire 1996-97 fiscal year, the
Superintendent and other public officers shall take all necessary
steps to effect the required adjustments and shall have authority
to adjust allowance computations, apportionments, and
disbursements ordered from Section A of the State School Fund
and other public funds.

begin insert

(d) Notwithstanding any other law, on or after July 1, 2013, a
county office of education may expend funds previously deposited
in the capital outlay reserve established pursuant to former
paragraph (4) of subdivision (b) of this section, as this section
read on June 30, 2013, for any of the purposes specified in the
local control and accountability plan adopted pursuant to Section
52066.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 42238.20 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42238.20.  

(a) Notwithstanding any other law, commencing begin delete in end delete
begin insert with end insert the 2008-09 fiscal year, the minimum schoolday for a pupil
concurrently enrolled in regular secondary school classes and
classes operating pursuant to a joint powers agreement that became
effective before January 1, 2008, is 180 minutes. These regular
secondary school classes constitute regular school classes for begin delete the end delete
purposes of Section 46010.3.

(b) For a pupil described in subdivision (a), the average daily
attendance shall be included as school district average daily
attendance computed pursuant to Section begin delete 42238.5. end delete begin insert 42238.05. end insert

(c) For purposes of computing attendance pursuant to Section
46300 or any other law, immediate supervision and control of
pupils while attending classes pursuant to a joint powers agreement
described in subdivision (a) is deemed satisfied regardless of the
school district employing the certificated employee providing the
supervision and control, provided the school district is a party to
the joint powers agreement.

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

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 42238.53 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

42238.53.  

(a) Sections 42238.51 and 42238.52 do not apply
to resident pupils in charter schools operating under the districtwide
charter of a district that has converted all of its schools to charter
status pursuant to Section 47606 and has elected not to be funded
pursuant to Article 2 (commencing with Section 47633) of Chapter
6 of Part 26.

(b) For the purposes of this section, “resident pupils” means
pupils who reside in, and are otherwise eligible to attend, a school
in the specified district.

end delete

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 42284 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42284.  

(a) For each begin insert school end insert district with fewer than 2,501 units
of average daily attendance, on account of each necessary small
high school, the begin delete county superintendent of schools end delete begin insert Superintendent end insert
shall make one of the following computations selected with regard
only to the number of certificated employees employed or average
daily attendance, whichever provides the lesser amount:

 

Average daily attendance	Minimum number of certificated employees	Amount to be computed
1- 19	less than 3	$42,980
		per teacher
1- 19	3	191,340
20- 38	4	234,320
39- 57	5	277,300
58- 71	6	320,280
72- 86	7	363,260
87- 100	8	406,240
101-114	9	449,220
115-129	10	492,200
130-143	11	535,180
144-171	12	578,160
172-210	13	621,140
211-248	14	664,120
249-286	15	707,100

 

(b) For purposes of this section, a “certificated employee” means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in grades 9
to 12, inclusive, in any secondary school. Any fraction of an
equivalent full-time position remaining after all equivalent full-time
positions for certificated employees within the school district have
been calculated shall be deemed to be a full-time position.

(c) A school district that qualifies under this section may use
the funding calculation as provided in this section until the local
control funding formula allocation pursuant to Section 42238.02,
as implemented by Section 42238.03, per unit of average daily
attendance multiplied by the average daily attendance produces
state aid equal to the funding provided under this section.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 42285 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

42285.  

(a) For purposes of Section 42284, a necessary small
high school is a high school with an average daily attendance of
less than 287 begin insert pupils end insert that comes within any of the following
conditions:

(1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the school district shows
that within eight years the enrollment in high school in grades 9
to 12, inclusive, will exceed 286 pupils.

(2) Any one of the following combinations of distance and units
of average daily attendance applies:

(A) The high school had an average daily attendance of less
than 96 begin insert pupils end insert in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than 15 miles by well-traveled road from
the nearest other public high school and either 90 percent of the
pupils would be required to travel 20 miles or 25 percent of the
pupils would be required to travel 30 miles one way from a point
on a well-traveled road nearest their homes to the nearest other
public high school.

(B) The high school had an average daily attendance of 96 begin insert pupils end insert
or more and less than 144 begin insert pupils end insert in grades 9 to 12, inclusive, during
the preceding fiscal year and is more than 10 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 18 miles or 25 percent of
the pupils would be required to travel 25 miles one way from a
point on a well-traveled road nearest their homes to the nearest
other public high school.

(C) The high school had an average daily attendance of 144
begin insert pupils end insert or more and less than 192 begin insert pupils end insert in grades 9 to 12, inclusive,
during the preceding fiscal year and is more than 71⁄2 miles by
well-traveled road from the nearest other public high school and
either 90 percent of the pupils would be required to travel 15 miles
or 25 percent of the pupils would be required to travel 20 miles
one way from a point on a well-traveled road nearest their homes
to the nearest other public high school.

(D) The high school had an average daily attendance of 192
begin insert pupils end insert or more and less than 287 begin insert pupils end insert in grades 9 to 12, inclusive,
during the preceding fiscal year and is more than 5 miles by
well-traveled road from the nearest other public high school and
either 90 percent of the pupils would be required to travel 10 miles
or 25 percent of the pupils would be required to travel 15 miles to
the nearest other public high school.

(3) Topographical or other conditions exist in the school district
which would impose unusual hardships on the pupils if the number
of miles specified begin delete above end delete begin insert in paragraph (2) end insert were required to be
traveled. In these cases, the Superintendent may, when requested,
and after investigation, grant exceptions from the distance
requirements.

(4) The Superintendent has approved the recommendation of a
county committee on school district organization designating one
of two or more schools as necessary isolated schools in a situation
where the schools are operated by two or more school districts and
the average daily attendance of each of the schools is less than 287
begin insert pupils end insert in grades 9 to 12, inclusive.

(b) For purposes of Section 42284, a necessary small high school
also includes begin delete a high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs. end delete begin insert any of the following: end insert

begin insert

(1) A high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.

end insert begin insert

(2) A high school maintained by a county office of education
for the exclusive purpose of educating foster youth if the high
school provided instruction in the 2012-13 fiscal year and the
high school is the only one maintained by the county office of
education that exclusively educates foster youth. Notwithstanding
Section 42286, this paragraph shall become inoperative on July
1, 2017.

end insert begin insert

(3) A high school maintained by a unified school district as the
only comprehensive high school if the high school has an average
daily attendance of less than 286 pupils and the school district
has 50 or fewer pupils per square mile of school district territory,
as measured by the number of pupils residing in the school district.
Notwithstanding Section 42286, this paragraph shall become
inoperative on July 1, 2017.

end insert

(c) For purposes of Section 42284, a necessary small high school
does not include a continuation school.

(d) For purposes of this section, “other public high school” is
a public school, including a charter school, that serves any of
grades 9 to 12, inclusive.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 46200.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

46200.5.  

(a) In the 1985-86 fiscal year, for each county office
of education that certifies to the Superintendent of Public
Instruction that it offers 180 days or more of instruction per school
year of special day classes pursuant to Section 56364.2, the
Superintendent of Public Instruction shall determine an amount
equal to seventy dollars ($70) per unit of current year second
principal apportionment average daily attendance for special day
classes. This computation shall be included in computations made
by the superintendent pursuant to Chapter 7.2 (commencing with
Section 56836) of Part 30.

(b) For any county office of education that received an
apportionment pursuant to subdivision (a) and that offered less
than 180 days of instruction in the 1986-87 fiscal year, to the
2000-01 fiscal year, inclusive, and that does not provide the
minimum number of instructional minutes specified in subdivision
(a) of Section 46201 for that fiscal year, the Superintendent of
Public Instruction shall reduce the special education apportionment
per unit of average daily attendance for that fiscal year by an
amount attributable to the increase received pursuant to subdivision
(a), as adjusted in fiscal years subsequent to the 1985-86 fiscal
year.

(c) For any county office of education that receives an
apportionment pursuant to subdivision (a) and that offers less than
180 days of instruction or in multitrack year-round schools a
minimum of 163 days, in the 2001-02 fiscal year, or any fiscal
year thereafter, the Superintendent of Public Instruction shall
withhold from the county office of education’s revenue limit
apportionment for the average daily attendance of each affected
grade level the sum of 0.0056 multiplied by that apportionment,
for each day less than 180 or, in multitrack year-round schools,
for each day less than 163, that the county office of education
offered.

(d) For any county office of education that received an
apportionment pursuant to subdivision (a) and that offered less
than 180 days of instruction as required in subdivision (a) in the
1986-87 fiscal year, to either the end of the final year of the teacher
bargaining unit contract in force in that county office on January
1, 2002, inclusive, or, if no teacher bargaining unit contract was
in force in that county office on January 1, 2002, to the end of the
2001-02 fiscal year, inclusive, and that provided the minimum
number of instructional minutes in subdivision (a) of Section
46201.5 during all of the period applicable to the county office
pursuant to this subdivision, subdivision (c) does not apply until
the first fiscal year following the end of the applicable period of
years.

end delete

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 46200.5 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 46200.5. end insert   

For a county office of education that received an
apportionment pursuant to former subdivision (c) of this section,
as it read on January 1, 2013, and that offers fewer than 180 days
of instruction, or, in multitrack year-round schools, fewer than
the 163 days of instruction, as required in former subdivision (c)
of this section, as it read on January 1, 2013, in the 2013-14 fiscal
year or any fiscal year thereafter, the Superintendent shall withhold
from the county superintendent of schools’ local control funding
formula alternative education grant computed pursuant to Section
2574, as apportioned pursuant to Section 2575, for the average
daily attendance of each affected grade level, the product of 0.0056
multiplied by that apportionment for each day less than what was
required to avoid a reduction pursuant to this section, as it read
on January 1, 2013, up to a maximum of five days.

end insert

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 46201.5 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

46201.5.  

(a) In each of the 1985-86 and 1986-87 fiscal years,
for each county office of education that certifies to the
Superintendent of Public Instruction that, for special day classes
pursuant to Section 56364.2, it offers at least the amount of
instructional time specified in this subdivision, the Superintendent
of Public Instruction shall determine an amount equal to eighty
dollars ($80) in the 1985-86 fiscal year and forty dollars ($40) in
the 1986-87 fiscal year per unit of current year second principal
apportionment average daily attendance for special day classes in
kindergarten and grades 1 to 8, inclusive, and one hundred sixty
dollars ($160) in the 1985-86 fiscal year and eighty dollars ($80)
in the 1986-87 fiscal year per unit of current year second principal
apportionment average daily attendance for special day classes in
grades 9 to 12, inclusive.

This computation shall be included in computations made by
the superintendent pursuant to Article 2 (commencing with Section
56836.06) of Chapter 7.2 of Part 30.

(1) In the 1985-86 fiscal year:

(A) 34,500 minutes in kindergarten.

(B) 47,016 minutes in grades 1 to 3, inclusive.

(C) 50,000 minutes in grades 4 to 8, inclusive.

(D) 57,200 minutes in grades 9 to 12, inclusive.

(2) In the 1986-87 fiscal year:

(A) 36,000 minutes in kindergarten.

(B) 50,400 minutes in grades 1 to 3, inclusive.

(C) 54,000 minutes in grades 4 to 8, inclusive.

(D) 64,800 minutes in grades 9 to 12, inclusive.

(b) Each county office of education that receives an
apportionment pursuant to subdivision (a) in a fiscal year shall, in
the subsequent fiscal year, add the amount received per pupil to
the county office’s base special education apportionment.

(c) For each county office of education that receives an
apportionment pursuant to subdivision (a) in the 1985-86 fiscal
year, and that reduces the amount of instructional time offered
below the minimum amounts specified in paragraph (1) of
subdivision (a) in the 1986-87 fiscal year, or any fiscal year
thereafter, up to and including the 2000-01 fiscal year, the
Superintendent of Public Instruction shall reduce the special
education apportionment for the fiscal year in which the reduction
occurs by an amount attributable to the increase in the 1986-87
fiscal year special education apportionment pursuant to subdivision
(b), as adjusted in the 1986-87 fiscal year and fiscal years
thereafter.

(d) For each county office of education that receives an
apportionment pursuant to subdivision (a) in the 1986-87 fiscal
year and that reduces the amount of instructional time offered
below the minimum amounts specified in paragraph (2) of
subdivision (a) in the 1987-88 fiscal year, or any fiscal year
thereafter, up to and including the 2000-01 fiscal year, the
superintendent shall reduce the special education apportionment
for the fiscal year in which the reduction occurs by an amount
attributable to the increase in the 1987-88 fiscal year special
education apportionment pursuant to subdivision (b), as adjusted
in the 1987-88 fiscal year and fiscal years thereafter.

(e) For each county office of education that receives an
apportionment pursuant to subdivision (a) in the 1986-87 fiscal
year and that reduces the amount of instructional time offered
below the minimum amounts specified in paragraph (2) of
subdivision (a) in the 2001-02 fiscal year, or any fiscal year
thereafter, the Superintendent of Public Instruction shall withhold
from the special education apportionment for the average daily
attendance of each affected grade level, the sum of that
apportionment multiplied by the percentage of the minimum
offered minutes at that grade level that the county office of
education failed to offer.

end delete

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 46201.5 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 46201.5. end insert   

(a) For a county office of education that received an
apportionment pursuant to former subdivision (a) of this section,
as it read on January 1, 2013, and that reduces the amount of
instructional time offered below the minimum amounts specified
in subdivision (b), the Superintendent shall withhold from the
county superintendent of schools’ county local control funding
formula grant apportionment computed pursuant to Section 2574,
as apportioned pursuant to Section 2575, for the average daily
attendance of each affected grade level, the product of that
apportionment multiplied by the percentage of the minimum
required minutes at that grade level that the county office of
education failed to offer.

(b) Commencing with the 2013-14 fiscal year, a county office
of education shall, at a minimum, offer the following amount of
instructional time:

(1) Thirty-six thousand minutes in kindergarten.

(2) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.

(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.

(4) Sixty-four thousand eight hundred minutes in grades 9 to
12, inclusive.

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 46380 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

46380.  

The average daily attendance for the fiscal year of pupils
residing in begin delete any end delete begin insert a end insert county of this state and attending a school in an
adjoining state under Article 1 (commencing with Section 2000)
of Chapter 7 begin insert of Part 2 of Division 1 of Title 1 end insert shall be computed
by dividing the total number of days of attendance of the pupils
in the school by the number of days the school was maintained
during that fiscal year, but by not less than begin delete 175, and the average
daily attendance so computed shall be credited to the county school
tuition fund. end delete begin insert 175. end insert

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 46610 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

46610.  

begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert Notwithstanding any other begin delete provision of end delete law,
the Fallbrook Union High School District shall enter into an
interdistrict attendance agreement with the Capistrano Unified
School District to allow any pupil, at the request of his or her parent
or guardian, to attend schools of the Capistrano Unified School
District when the pupil resides in the San Onofre housing area of
the Marine Corps Base, Camp Joseph H. Pendleton. No more than
150 pupils from the Fallbrook Union High School District may
attend school in the Capistrano Unified School District pursuant
to this interdistrict attendance agreement.

begin delete

The

end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert Fallbrook Union High School District shall be credited
with the average daily attendance of these pupils begin insert solely end insert for begin delete the
purpose of determining state apportionments and revenue limits
and for the purpose end delete begin insert purposes end insert of receiving federal grants pursuant
to Public Law 81-874.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert Fallbrook Union High School District shall pay tuition
to the Capistrano Unified School District for the attendance of
these pupils only in the amount begin delete of the state apportionments paid
to the Fallbrook Union High School District for the attendance of
these pupils, plus an amount end delete computed begin insert pursuant to paragraphs
(1) and (2), end insert as follows:

begin delete

(a)

end delete

begin insert (1) end insert  Divide the amount of funds paid pursuant to Section 3 of
Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High
School District in the current fiscal year by the average daily
attendance of the begin insert school end insert district in the current fiscal year.

begin delete

(b)

end delete

begin insert (2) end insert  Multiply the amount in subdivision (a) by the average daily
attendance, for the year of attendance for secondary school pupils
attending the schools of the Capistrano Unified School District
pursuant to Section 46610.

begin insert

(c) Notwithstanding any other law, the amount provided to the
Fallbrook Union High School District and the Capistrano Unified
School District for the 2012-13 fiscal year pursuant to this section
and Section 46111, as these sections read on June 1, 2013, shall
be included in the computations made pursuant to paragraph (2)
of subdivision (a) of Section 42238.025, paragraph (2) of
subdivision (a) of Section 42238.03, and paragraph (2) of
subdivision (e) of Section 42238.03. For purposes of calculating
funding pursuant to subdivisions (a) and (e) of Section 42238.03,
the school district of residence shall be credited with the 2012-13
fiscal year revenue limit funding received for the pupils reported
pursuant to this section after accounting for the amount of tuition
paid to the school district of attendance. For purposes of
calculating funding pursuant to subdivisions (a) and (e) of Section
42238.03, the school district of attendance shall be credited with
the average daily attendance of the pupils reported pursuant to
this section in the 2012-13 fiscal year, and the tuition received by
the school district of residence pursuant to this section and Section
46611, as these sections read on March 1, 2014.

end insert

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 46611 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

46611.  

(a) When an interdistrict attendance agreement is
entered into pursuant to Section 46610, the Superintendent of
Public Instruction shall apportion from Section A of the State
School Fund to the Capistrano Unified School District the
allowance computed in subdivision (b) for educating secondary
school pupils attending pursuant to the agreement during the year
the pupils are in attendance in that district reduced by the amounts
payable to Capistrano Unified School District by the Fallbrook
Union High School District pursuant to Section 46610.

(b) The Superintendent of Public Instruction shall compute an
allowance for educating secondary school pupils, as follows:

(1) Compute, for the year of attendance, the statewide average
revenue limit per unit of average daily attendance for high school
districts with more than 300 units of average daily attendance.

(2) From the amount in paragraph (1), subtract one hundred
dollars ($100).

(3) Multiply the amount in paragraph (2) by the average daily
attendance, for the year of attendance, for secondary school pupils
attending the schools of the Capistrano Unified School District
pursuant to Section 46610.

end delete

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 47605.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47605.1.  

(a) (1) Notwithstanding any other begin delete provision of end delete law,
a charter school that is granted a charter from the governing board
of a school district or county office of education after July 1, 2002,
and commences providing educational services to pupils on or
after July 1, 2002, shall locate in accordance with the geographic
and site limitations of this part.

(2) Notwithstanding any other begin delete provision of end delete law, a charter school
that is granted a charter by the begin delete State Board of Education end delete begin insert state
board end insert after July 1, 2002, and commences providing educational
services to pupils on or after July 1, 2002, based on the denial of
a petition by the governing board of a school district or county
board of education, as described in paragraphs (1) and (2) of
subdivision (j) of Section 47605, may locate only within the
geographic boundaries of the chartering entity that initially denied
the petition for the charter.

(3) A charter school that receives approval of its charter from
a governing board of a school district, a county office of education,
or the begin delete State Board of Education prior to end delete begin insert state board before end insert July 1,
2002, but does not commence operations until after January 1,
2003, shall be subject to the geographic limitations of the part, in
accordance with subdivision (e).

(b) Nothing in this section is intended to affect the admission
requirements contained in subdivision (d) of Section 47605.

(c) Notwithstanding any other begin delete provision, end delete begin insert law, end insert a charter school
may establish a resource center, meeting space, or other satellite
facility located in a county adjacent to that in which the charter
school is authorized if the following conditions are met:

(1) The facility is used exclusively for the educational support
of pupils who are enrolled in nonclassroom-based independent
study of the charter school.

(2) The charter school provides its primary educational services
in, and a majority of the pupils it serves are residents of, the county
in which the school is authorized.

(d) Notwithstanding subdivision (a) or subdivision (a) of Section
47605, a charter school that is unable to locate within the
geographic boundaries of the chartering school district may
establish one site outside the boundaries of the school district, but
within the county within which that school district is located, if
the school district where the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools is notified of the location of the charter
school before it commences operations, and either of the following
circumstances exist:

(1) The school has attempted to locate a single site or facility
to house the entire program but such a facility or site is unavailable
in the area in which the school chooses to locate.

(2) The site is needed for temporary use during a construction
or expansion project.

(e) (1) For a charter school that was granted approval of its
charter begin delete prior to end delete begin insert before end insert July 1, 2002, and provided educational
services to pupils before July 1, 2002, this section shall only apply
to any new educational services or schoolsites established or
acquired by the charter school on or after July 1, 2002.

(2) For a charter school that was granted approval of its charter
begin delete prior to end delete begin insert before end insert July 1, 2002, but did not provide educational
services to pupils before July 1, 2002, this section shall only apply
upon the expiration of a charter that is in existence on January 1,
2003.

(3) Notwithstanding other implementation timelines in this
section, by June 30, 2005, or upon the expiration of a charter that
is in existence on January 1, 2003, whichever is later, all charter
schools shall be required to comply with this section for schoolsites
at which education services are provided to pupils begin delete prior to end delete begin insert before end insert
or after July 1, 2002, regardless of whether the charter school
initially received approval of its charter school petition begin delete prior to end delete
begin insert before end insert July 1, 2002. To achieve compliance with this section, a
charter school shall be required to receive approval of a charter
petition in accordance with this section and Section 47605.

(4) Nothing in this section is intended to affect the authority of
a governmental entity to revoke a charter that is granted on or
before the effective date of this section.

(f) A charter school that submits its petition directly to a county
board of education, as authorized by Sections 47605.5 or 47605.6,
may establish charter school operations only within the
geographical boundaries of the county in which that county board
of education has jurisdiction.

(g) Notwithstanding any other begin delete provision of end delete law, the jurisdictional
limitations set forth in this section do not apply to a charter school
that provides instruction exclusively in partnership with any of the
following:

(1) The federal Workforce Investment Act of 1998 (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 14507.5 or 14406 of the Public Resources Code.

(5) Instruction provided to juvenile court school pupils pursuant
to subdivision begin delete (c) end delete begin insert (b) end insert of Section 42238.18 or pursuant to Section
1981 for individuals who are placed in a residential facility.

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 47613 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47613.  

(a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.

(b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering authority.

(c) A local begin insert educational end insert agency that is given the responsibility
for supervisorial oversight of a charter school, pursuant to
paragraph (1) of subdivision (k) of Section 47605, may charge for
the actual costs of supervisorial oversight, and administrative costs
necessary to secure charter school funding. A charter school that
is charged for costs under this subdivision may not be charged
pursuant to subdivision (a) or (b).

(d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.

(e) For purposes of this section, begin delete a chartering authority end delete
begin insert “chartering authority” end insert means a school district, county board of
education, or the state board, that granted the charter to the charter
school.

(f) For purposes of this section, “revenue of the charter school”
means the begin delete general purpose entitlement and categorical block grant,
as defined in subdivisions (a) and (b) of Section 47632. end delete begin insert amount
received in the current fiscal year from the local control funding
formula calculated pursuant to Section 42238.02, as implemented
by Section 42238.03. end insert

(g) For purposes of this section, “costs of supervisorial
oversight” begin delete includes, end delete begin insert include, end insert but begin delete is end delete begin insert are end insert not limited to, costs incurred
pursuant to Section 47607.3.

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 47613.1 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47613.1.  

begin insert (a) end insert begin insert   end insert The Superintendent begin delete of Public Instruction end delete shall
make all of the following apportionments on behalf of a charter
school in a school district in which all schools have been converted
to charter schools pursuant to Section begin delete 47606, and that elects not
to be funded pursuant to the block grant funding model set forth
in Section 47633 in each fiscal year that the charter school so
elects: end delete begin insert 47606: end insert

begin delete

(a)

end delete

begin insert (1) end insert  From funds appropriated to Section A of the State School
Fund for apportionment for that fiscal year pursuant to Article 2
(commencing with Section 42238) of Chapter 7 of Part begin delete 24, end delete begin insert 24 of
Division 3, end insert an amount for each unit of current fiscal year regular
average daily attendance in the charter school begin delete that is equal to the
current fiscal year base revenue limit for the school district to
which the charter petition was submitted. end delete begin insert multiplied by the funding
rates calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, except that average daily attendance generated
by pupils who are residents of the school district may be funded
pursuant to paragraph (1) of subdivision (a) of Section 42238.05. end insert

begin delete

(b)

end delete

begin insert (2) end insert  For each pupil enrolled in the charter school who is entitled
to special education services, the state and federal funds for special
education services for that pupil that would have been apportioned
for that pupil to the school district to which the charter petition
was submitted.

begin delete

(c)

end delete

begin insert (3) end insert  Funds for the programs described in begin insert former end insert clause (i) of
subparagraph (B) of paragraph (1) of subdivision (a) of Section
54761, begin insert as that section read on June 30, 2005, end insert and Sections 63000
and 64000, to the extent that any pupil enrolled in the charter
school is eligible to participate.

begin insert

(b) Transfers of funding in lieu of property taxes pursuant to
Section 47635 shall not apply to a school district in which all
schools have been converted to charter schools pursuant to Section
47606.

end insert begin insert

(c) For each pupil residing in the school district and receiving
instruction provided by the county office of education, a school
district in which all schools have been converted to charter schools
shall, for purposes of Section 2576, be treated as a school district
in which all schools have not been converted to charter schools.

end insert begin insert

(d) The provisions of subparagraph (A) of paragraph (2) of
subdivision (f) of Section 42238.02 that cap the percentage of
unduplicated pupils used for calculating the concentration grant
add-on to the percentage of unduplicated pupils of the school
district in which the charter school is physically located shall not
apply to a school district described in this section.

end insert begin insert

(e) Consistent with Section 47630, necessary small school
funding shall not be provided to a school district described in this
section.

end insert

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 47631 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47631.  

(a) Article 3 (commencing with Section 47636) shall
not apply to a charter granted pursuant to Section 47605.5.

(b) A charter school authorized pursuant to Section 47605.5
shall receive the average daily attendance rate calculated pursuant
to paragraph (1) of subdivision (c) of Section 2574 for enrolled
pupils who are identified as any of the following:

(1) Probation-referred pursuant to Section 300, 601, 602, or 654
of the Welfare and Institutions Code.

(2) On probation or parole and not attending a school.

(3) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.

begin insert

(4) Attending schools or classes established pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27.

end insert

(c) A charter school authorized pursuant to Section 47605.5
shall be funded pursuant to the local control funding formula
pursuant to Section 42238.02, as implemented by Section 42238.03,
for all pupils except for pupils funded pursuant to subdivision (b).

begin insert

(d) A charter school authorized pursuant to Section 47605.5
shall be funded pursuant to the local control funding formula
pursuant to Section 2575 for pupils receiving the average daily
attendance rate computed pursuant to paragraph (1) of subdivision
(c) of Section 2574 and identified in paragraphs (1) to (4),
inclusive, of subdivision (b).

end insert

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 47632 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47632.  

For purposes of this chapter, the following terms shall
be defined as follows:

(a) “General-purpose entitlement” means an amount computed
by the local control funding formula pursuant to Section 42238.02,
as implemented by Section 42238.03.

(b) “Economic impact aid-eligible pupils” means those pupils
that are included in the economic impact aid-eligible pupil count
pursuant to Section 54023. For purposes of applying Section 54023
to charter schools, “economically disadvantaged pupils” means
the pupils described in paragraph (2) of subdivision (a) of Section
54026.

(c) “General-purpose funding” means those funds that consist
of state aid, local property taxes, and other revenues applied toward
a school district’s local control funding formula, pursuant to
Section 42238.02, as implemented by Section 42238.03.

(d) “Categorical aid” means aid that consists of state or federally
funded programs, or both, begin delete which end delete begin insert that end insert are apportioned for specific
purposes set forth in statute or regulation.

(e) “Educationally disadvantaged pupils” means those pupils
who meet federal eligibility criteria for free and reduced-price
meals as specified in Section 49531, as that section read on January
1, 2013, except in regard to meals in family day care homes.

(f) “Operational funding” means all funding except funding for
capital outlay.

(g) “School district of a similar type” means a school district
that is serving similar grade levels.

(h) “Similar pupil population” means similar numbers of pupils
by grade level, with a similar proportion of educationally
disadvantaged pupils.

(i) “Sponsoring local educational agency” means the following:

(1) If a charter school is granted by a school district, the
sponsoring local educational agency is the school district.

(2) If a charter is granted by a county office of education after
having been previously denied by a school district, the sponsoring
local educational agency means the school district that initially
denied the charter petition.

(3) If a charter is granted by the state board after having been
previously denied by a local educational agency, the sponsoring
local educational agency means the local educational agency
designated by the state board pursuant to paragraph (1) of
subdivision (k) of Section 47605 or if a local educational agency
is not designated, the local educational agency that initially denied
the charter petition.

(4) For pupils attending county-sponsored charter schools begin delete who
are eligible to attend those schools solely as a result of parental
request pursuant to subdivision (b) of Section 1981, end delete begin insert pursuant to
Section 47605.5 who do not meet the criteria identified in
subdivision (b) of Section 47631, end insert the sponsoring local educational
agency means the pupils’ school district of residence.

(5) For pupils attending countywide charter schools pursuant
to Section 47605.6 who reside in a basic aid school district, the
sponsoring local educational agency means the begin insert pupils’ end insert school
district of begin delete residence of the pupil. end delete begin insert residence. end insert For purposes of this
paragraph, “basic aid school district” means a school district that
begin delete does end delete begin insert did end insert not receive an apportionment of state funds as described
in subdivision (o) of Section 42238.02 begin insert in the prior fiscal year end insert .

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 47634.3 of the end insert begin insert Education Code end insert begin insert is repealed. end insert

begin delete

47634.3.  

For purposes of Section 47633, the Superintendent
shall compute average daily attendance in each of grades 1 through
12, respectively, as follows:

(a) Distribute statewide total ungraded enrollment and average
daily attendance among kindergarten and each of grades 1 through
12, inclusive, in proportion to the amounts of graded enrollment
and average daily attendance, respectively, in each of these grades.

(b) Multiply enrollment in each of grades 1 through 12,
respectively, by the ratio of average daily attendance to enrollment
in the applicable grade range: 1 through 3, inclusive, 4 through 6,
inclusive; 7 and 8; and 9 through 12, inclusive.

end delete

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 47635 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47635.  

(a) A sponsoring local educational agency shall
annually transfer to each of its charter schools funding in lieu of
property taxes equal to the lesser of the following two amounts:

(1) The average amount of property taxes per unit of average
daily attendance, including average daily attendance attributable
to charter schools, received by the local educational agency,
multiplied by the charter school’s average daily attendance.

(2) The begin delete statewide average end delete local control funding formula grant
funding computed pursuant to subdivision (d) of Section 42238.02,
per unit of average daily begin delete attendance received by school districts,
as determined by the department, end delete begin insert attendance, end insert multiplied by the
charter school’s average daily attendance in each of the four
corresponding grade level ranges: kindergarten and grades 1, 2,
and 3; grades 4, 5, and 6; grades 7 and 8; and grades 9 to 12,
inclusive.

(3) Notwithstanding paragraph (2), until the Superintendent
determines that a charter school is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall apportion
funding per unit of average daily attendance pursuant to this article.
The base grant for purposes of paragraph (2) shall be the sum of
the entitlements for the charter school in the specified fiscal year
as computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a) of Section 42238.03 and paragraph (3) of
subdivision (b) of Section 42238.03, multiplied by the ratio of
local control funding formula base grant funding computed
pursuant to subdivision (d) of Section 42238.02 to the local control
funding formula amount for the fiscal year computed pursuant to
Section 42238.02.

begin insert

(4) If the sum of the funding transferred pursuant to this
subdivision and the funding calculated pursuant to subdivision (e)
of Section 42238.03 exceeds the sum of the amounts calculated
pursuant to subdivisions (a) and (b) of Section 42238.03, the excess
funding shall be used to offset funding calculated pursuant to
subdivision (e) of Section 42238.03.

end insert

(b) The sponsoring local educational agency shall transfer
funding in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.

(1) For the months of August to February, inclusive, a charter
school’s funding in lieu of property taxes shall be computed based
on the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported
to the Superintendent for purposes of the second principal
apportionment. A sponsoring local educational agency shall transfer
to the charter school the charter school’s estimated annual
entitlement to funding in lieu of property taxes as follows:

(A) Six percent in August.

(B) Twelve percent in September.

(C) Eight percent each month in October, November, December,
January, and February.

(2) For the months of March to June, inclusive, a charter
school’s funding in lieu of property taxes shall be computed based
on the amount of property taxes estimated to be received by the
sponsoring local educational agency during the fiscal year, as
reported to the Superintendent for purposes of the first principal
apportionment. A sponsoring local educational agency shall transfer
to each of its charter schools an amount equal to one-sixth of the
difference between the school’s estimated annual entitlement to
funding in lieu of property taxes and the amounts provided pursuant
to paragraph (1). An additional one-sixth of this difference shall
be included in the amount transferred in the month of March.

(3) For the month of July, a charter school’s funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent for purposes of the second principal apportionment.
A sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to the remaining difference
between the school’s estimated annual entitlement to funding in
lieu of property taxes and the amounts provided pursuant to
paragraphs (1) and (2).

(4) Final adjustments to the amount of funding in lieu of
property taxes allocated to a charter school shall be made in
February, in conjunction with the final reconciliation of annual
apportionments to schools.

(5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
apply for pupils who reside in, and are otherwise eligible to attend
a school in, a basic aid school district, but who attend a charter
school in a nonbasic aid school district. With regard to these pupils,
the sponsoring basic aid school district shall transfer to the charter
school an amount of funds equivalent to the local control funding
formula grant pursuant to Section 42238.02, as implemented by
Section 42238.03, earned through average daily attendance by the
charter school for each pupil’s attendance, not to exceed the
average property tax share per unit of average daily attendance for
pupils residing and attending in the basic aid school district. The
transfer of funds shall be made in not fewer than two installments
at the request of the charter school, the first occurring not later
than February 1 and the second not later than June 1 of each school
year. Payments shall reflect the average daily attendance certified
for the time periods of the first and second principal
apportionments, respectively. The Superintendent may not
apportion any funds for the attendance of pupils described in this
subdivision unless the amount transferred by the basic aid district
is less than the local control funding formula grant pursuant to
Section 42238.02, as implemented by Section 42238.03, earned
by the charter school, in which event the Superintendent shall
apportion the difference to the charter school from state funds.

begin insert

(c) Notwithstanding subdivisions (a) and (b), for a pupil
attending a county charter program school authorized pursuant
to Section 47605.6 for whom the county office of education is not
educationally responsible, the county charter program school may
seek in-lieu property tax reimbursement from the pupil’s school
district of residence in an amount agreed upon by the county
charter program school and the school district of residence.

end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 47663 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47663.  

(a) (1) For a pupil of a charter school sponsored by a
basic aid school district who resides in, and is otherwise eligible
to attend, a school district other than a basic aid school district,
the Superintendent shall apportion to the sponsoring school district
an amount equal to 70 percent of the local control funding formula
base grant computed pursuant to subdivision (d) of Section
42238.02, per unit of average daily attendance that would have
been apportioned to the school district that the pupil resides begin delete in end delete begin insert in, end insert
and would otherwise have been eligible to attend.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district the pupil resides in, and would
otherwise have been eligible to attend, is funded pursuant to
Section 42238.02 in the prior fiscal year, the Superintendent shall
apportion, for average daily attendance pursuant to this article, 70
percent of the sum of the entitlements for the school district that
the pupil resides in, and would otherwise have been eligible to
attend, for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (a) of Section
42238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
divided by the average daily attendance for that fiscal year and
then multiplied by the ratio of local control funding formula base
grant funding computed pursuant to subdivision (d) of Section
42238.02 to the local control funding formula amount for the fiscal
year computed pursuant to Section 42238.02.

begin insert

(3) If the entitlements for the school district the pupil resides
in, and would otherwise have been eligible to attend, as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a),
and paragraph (3) of subdivision (b), of Section 42238.03, include
funding calculated pursuant to Article 4 (commencing with Section
42280) of Chapter 7 of Part 24 of Division 3 for a fiscal year,
paragraph (2) shall not apply and the apportionment of state funds
for the average daily attendance credited pursuant to this section
for that fiscal year shall be calculated pursuant to paragraph (1).

end insert

(b) A school district that loses basic aid status as a result of
transferring property taxes to a charter school or schools pursuant
to Section 47635 for pupils who reside in, and are otherwise
eligible to attend, a school district other than the school district
that sponsors the charter school, shall be eligible to receive a pro
rata share of funding provided by subdivision (a), with the proration
factor calculated as the ratio of the following:

(1) The amount of property taxes that the school district receives
in excess of its total base grant per unit of average daily attendance
calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, before any transfers made pursuant to Section
47635, except for transfers begin delete of end delete in lieu of property taxes made for
pupils who reside in, and would otherwise be eligible to attend, a
school of the school district.

(2) The total amount begin delete of end delete in lieu of property taxes transferred
pursuant to Section 47635 to the charter school or schools that it
sponsors, except for transfers begin delete of end delete in lieu of property taxes made for
pupils who reside in, and would otherwise be eligible to attend, a
school of the school district.

(c) In no event shall the amount provided pursuant to this section
exceed the amount begin delete of end delete in lieu of property taxes transferred on behalf
of charter school pupils who do not reside in the school district,
less the proportionate amount of base grant state aid provided
pursuant to Section 42238.02, as implemented by Section 42238.03,
that is attributable to the charter school pupils who do not reside
in the school district.

(d) The Superintendent shall not apportion funds for the
attendance of a pupil in a charter school of a nonbasic aid school
district who resides in, and is otherwise eligible to attend school
in, a basic aid school district unless the pupil is subject to the
begin delete exception end delete begin insert exceptions end insert set forth in paragraph (5) of subdivision (b) begin insert ,
and subdivision (c), end insert of Section 47635.

(e) For purposes of this section, “basic aid school district” means
a school district that does not receive from the state, for any fiscal
year in which the subdivision is applied, an apportionment of state
funds as described in subdivision (o) of Section 42238.02.

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 48310 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

48310.  

(a) The average daily attendance for pupils admitted
by a school district of choice pursuant to this article shall be
credited to that school district pursuant to Section 46607. The
attendance report for the school district of choice may include an
identification of the school district of residence.

(b) Notwithstanding begin insert any end insert other begin delete provisions of end delete law, state aid for
categorical education programs for pupils admitted under this
article shall be apportioned to the school district of choice.

(c) (1) For a school district of choice that is a basic aid school
district, the apportionment of state funds for average daily
attendance credited pursuant to this section shall be 70 percent of
the begin insert school end insert district local control funding formula base grant
computed pursuant to subdivision (d) of Section 42238.02, as
implemented by Section 42238.03, that would have been
apportioned to the school district of residence.

(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this article,
70 percent of the sum of the entitlements for the school district of
residence for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (a) of Section
42238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
divided by the average daily attendance pursuant to this article for
that fiscal year and then multiplied by the ratio of local control
funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.

begin insert

(3) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, include funding calculated pursuant to Article 4
(commencing with Section 42280) of Chapter 7 of Part 24 of
Division 3 for a fiscal year, paragraph (2) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to paragraph (1).

end insert begin delete

(3)

end delete

begin insert (4) end insert  For purposes of this subdivision, the term “basic aid school
district” means a school district that does not receive from the
state, for a fiscal year in which this subdivision is applied, an
apportionment of state funds as described in subdivision (o) of
Section 42238.02.

(d) The average daily attendance of pupils admitted by a school
district of choice pursuant to this article shall be credited to that
school district for purposes of any determination under Article 2
(commencing with Section 17010) of Chapter 12 of Part 10 of
Division 1 of Title 1 that uses an average daily attendance
calculation.

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 48359.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

48359.5.  

(a) For a school district of enrollment that is a basic
aid school district, the apportionment of state funds for average
daily attendance credited pursuant to this article shall be 70 percent
of the school district local control funding formula base grant that
would have been apportioned to the school district of residence
pursuant to subdivision (d) of Section 42238.02. Apportionment
of these funds shall begin in the second consecutive year of
enrollment, and continue annually until the pupil graduates from,
or is no longer enrolled in, the school district of enrollment.

(b) Notwithstanding subdivision (a), until the Superintendent
determines that the school district of begin delete enrollment end delete begin insert residence end insert is funded
pursuant to Section 42238.02 in the prior fiscal year, the
Superintendent shall apportion, for average daily attendance
pursuant to this article, 70 percent of the sum of the entitlements
for the school district of begin delete enrollment end delete begin insert residence end insert for the specified
fiscal year as computed pursuant to paragraphs (1) to (4), inclusive,
of subdivision (a) of Section 42238.03 and paragraph (3) of
subdivision (b) of Section 42238.03, divided by the average daily
attendance pursuant to this article for that fiscal year and then
multiplied by the ratio of local control funding formula base grant
funding computed pursuant to subdivision (d) of Section 42238.02
to the local control funding formula amount for the fiscal year
computed pursuant to Section 42238.02.

begin insert

(c) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), and paragraph (3) of subdivision (b), of Section
42238.03, include funding calculated pursuant to Article 4
(commencing with Section 42280) of Chapter 7 of Part 24 of
Division 3 for a fiscal year, subdivision (b) shall not apply and
the apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to subdivision (a).

end insert begin delete

(c)

end delete

begin insert (d) end insert  For purposes of this section, “basic aid school district” means
a school district that does not receive an apportionment of state
funds as described in subdivision (o) of Section 42238.02 for a
fiscal year in which this section may apply.

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 52064 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

52064.  

(a) On or before March 31, 2014, the state board shall
adopt templates for the following purposes:

(1) For use by school districts to meet the requirements of
Sections 52060 to 52063, inclusive.

(2) For use by county superintendents of schools to meet the
requirements of Sections 52066 to 52069, inclusive.

(3) For use by charter schools to meet the requirements of
Section 47606.5.

(b) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
No Child Left Behind Act of 2001 related to local educational
agency plans pursuant to Section 1112 of Subpart 1 of Part A of
Title I of Public Law 107-110. The state board shall also take steps
to minimize duplication of effort at the local level to the greatest
extent possible. The template shall include guidance for school
districts, county superintendents of schools, and charter schools
to report both of the following:

(1) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, implementing the
specific actions included in the local control and accountability
plan.

(2) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, that will serve the pupils
to whom one or more of the definitions in Section 42238.01 apply
and pupils redesignated as fluent English proficient.

(c) If possible, the templates identified in paragraph (2) of
subdivision (a) for use by county superintendents of schools shall
allow a county superintendent of schools to develop a single local
control and accountability plan that would also satisfy the
requirements of Section 48926.

(d) The state board shall adopt the template pursuant to the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code). The state board may adopt emergency
regulations for purposes of implementing this section. begin insert The adoption
of emergency regulations shall be deemed an emergency and
necessary for the immediate preservation of the public peace,
health, safety, or general welfare. end insert

begin insert

(e) Notwithstanding subdivision (d), the state board may adopt
the template in accordance with the requirements of the
Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
the Government Code). When adopting the template pursuant to
the requirements of the Bagley-Keene Open Meeting Act, the state
board shall present the template at a regular meeting and may
only take action to adopt the template at a subsequent regular
meeting. This subdivision shall become inoperative on January
31, 2018.

end insert begin delete

(e)

end delete

begin insert (f) end insert  Revisions to a template or evaluation rubric shall be approved
by the state board by January 31 before the fiscal year during which
the template or evaluation rubric is to be used by a school district,
county superintendent of schools, or charter school.

begin delete

(f)

end delete

begin insert (g) end insert  The adoption of a template or evaluation rubric by the state
board shall not create a requirement for a governing board of a
school district, a county board of education, or a governing body
of a charter school to submit a local control and accountability
plan to the state board, unless otherwise required by federal law.
The Superintendent shall not require a local control and
accountability plan to be submitted by a governing board of a
school district or the governing body of a charter school to the
state board. The state board may adopt a template or evaluation
rubric that would authorize a school district or a charter school to
submit to the state board only the sections of the local control and
accountability plan required by federal law.

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 52070 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

52070.  

(a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the governing board of a school district
shall file the local control and accountability plan or annual update
to the local control and accountability plan with the county
superintendent of schools.

(b) On or before August 15 of each year, the county
superintendent of schools may seek clarification, in writing, from
the governing board of a school district about the contents of the
local control and accountability plan or annual update to the local
control and accountability plan. Within 15 days the governing
board of a school district shall respond, in writing, to requests for
clarification.

(c) Within 15 days of receiving the response from the governing
board of the school district, the county superintendent of schools
may submit recommendations, in writing, for amendments to the
local control and accountability plan or annual update to the local
control and accountability plan. The governing board of a school
district shall consider the recommendations submitted by the county
superintendent of schools in a public meeting within 15 days of
receiving the recommendations.

(d) The county superintendent of schools shall approve a local
control and accountability plan or annual update to a local control
and accountability plan on or before October 8, if he or she
determines all of the following:

(1) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.

(2) The budget for the applicable fiscal year adopted by the
governing board of the school district includes expenditures
sufficient to implement the specific actions and strategies included
in the local control and accountability plan adopted by the
governing board of the school district, based on the projections of
the costs included in the plan.

(3) The local control and accountability plan or annual update
to the local control and accountability plan adheres to the
expenditure requirements adopted pursuant to Section 42238.07
for funds apportioned on the basis of the number and concentration
of unduplicated pupils pursuant to Sections 42238.02 and 42238.03.

(e) If a county superintendent of schools has jurisdiction over
a single school district, the Superintendent shall begin delete designate a county
superintendent of schools of an adjoining county to end delete perform the
duties specified in this section.

begin insert

begin insert SEC. 49. end insert   

end insert begin insert

For the 2014-15 fiscal year only, for tuition for pupils
attending schools in adjoining states, the Superintendent of Public
Instruction shall apportion to each applicable county
superintendent of schools an amount sufficient to pay the amounts
previously required or allowed to be paid for the 2013-14 fiscal
year, pursuant to Sections 2002 to 2006, inclusive, of the Education
Code, as those sections read on June 1, 2013.

end insert

begin insert

begin insert SEC. 50. end insert   

end insert begin insert

(a) The State Board of Education, working in
collaboration with the State Department of Education, shall report
to the Legislature no later than February 1, 2015, regarding the
status of implementation of the local control funding formula. At
a minimum, the report shall include all of the following:

end insert begin insert

(1) A description of the implementation roles and responsibilities
of the State Department of Education, the State Board of Education,
the California Collaborative for Educational Excellence, the Fiscal
Crisis Management and Assistance Team, and county offices of
education for local control funding formula oversight and technical
assistance to local educational agencies.

end insert begin insert

(2) A description of implementation challenges to date and
efforts made by state and local entities to address those challenges.

end insert begin insert

(3) Observations of the State Department of Education and the
State Board of Education about the first year that local educational
agencies completed their local control and accountability plans.

end insert begin insert

(4) The State Board of Education’s long-term vision for local
control funding formula support and guidance to the field and
which agency or agencies would provide that support and
guidance.

end insert begin insert

(b) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

end insert

begin insert

begin insert SEC. 51. end insert   

end insert begin insert

(a) The sum of four billion seven hundred forty-seven
million nine hundred fourteen thousand dollars ($4,747,914,000)
is hereby appropriated from the General Fund for the purposes
of this act as follows:

end insert begin insert

(1) Four billion seven hundred twenty-one million nine hundred
seventy thousand dollars ($4,721,970,000) is appropriated to the
Superintendent of Public Instruction and shall be allocated
pursuant to the calculation in subdivision (b) of Section 42238.03
of the Education Code.

end insert begin insert

(2) Twenty-five million nine hundred forty-four thousand dollars
($25,944,000) is appropriated to the Superintendent of Public
Instruction and shall be allocated pursuant to the calculation in
subdivision (f) of Section 2575 of the Education Code.

end insert begin insert

(b) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation 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. 52. end insert   

end insert begin insert

In regard to Section 22 of this act, the Legislature
finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique fiscal challenges for purposes of teacher induction and
training for beginning teachers facing Alameda, Berkeley, San
Leandro, and San Lorenzo Unified School Districts.

end insert

begin insert

begin insert SEC. 53. 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