Amended in Senate April 21, 2014

Senate Bill No. 1346

Introduced by Senator Wyland

February 21, 2014

An act to amend Sections 41020, 42127, 42238.07, 52052, 52060, 52061, 52063, 52064, 52066, 52067, 52069, 52071, and 52071.5 of, and to add Section 54030 to, the Education Code, relating to schools.

LEGISLATIVE COUNSEL’S DIGEST

SB 1346, as amended, Wyland. Schools: accountability: local control and accountability plans.

(1) Existing law establishes the public school system in this state and, among other things, provides for the establishment of county superintendents of schools, school districts, and charter schools throughout the state. Existing law establishes a public school financing 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, by not later than May 1 of each fiscal year, requires the governing board of each local educational agency to provide for an audit of the books and accounts of the local educational agency, as specified.

This bill would require an audit of a local educational agency to also include whether expenditures were in compliance with the regulations related to the expenditure of moneys apportioned on the basis of the number and concentration of unduplicated pupils, as defined.

(2) Existing law requires the Superintendent of Public Instruction, with approval of the State Board of Education, to develop an Academic Performance Index to measure the performance of schools and school districts, especially the academic performance of pupils. Existing law requires a school or school district to demonstrate comparable improvement in academic achievement as measured by the Academic Performance Index by all numerically significant pupil subgroups at the school or school district, as specified.

This bill would add reclassified English learners, as provided, to the list of pupil subgroups concerning which a school or school district is required to demonstrate this improvement, if the subgroup is numerically significant. By adding to the duties of local educational agencies, this bill would impose a state-mandated local program.

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(3) Existing law requires the State Board of Education, on or before January 31, 2014, to adopt regulations that govern the expenditure of funds apportioned on the basis of the number and concentration of unduplicated pupils pursuant to the local control funding formula. Existing law requires the regulations to include provisions that, among other things, authorize a school district, county office of education, or charter school to use funds apportioned on the basis of the number of unduplicated pupils for schoolwide purposes, or, for school districts, districtwide purposes, for county offices of education, countywide purposes, or for charter schools, charterwide purposes, in a manner no more restrictive than the federal No Child Left Behind Act of 2011.

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This bill would require the state board, on or before January 31, 2015, to revise those regulations to authorize a school district, county office of education, or charter school to use funds apportioned on the basis of both the number and concentration of unduplicated pupils for schoolwide purposes. The bill also would require the revised regulations to authorize a school district or county office of education to use funds apportioned on the basis of both the number and concentration of unduplicated pupils for districtwide or countywide purposes, respectively.

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(3)

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begin insert (4) end insert  Existing law requires a county board of education and a governing board of a school district to annually adopt or revise a local control and accountability plan that aligns with its annual budget and contains certain elements, including, among other elements, a description of the annual goals for all pupils and specified begin delete subgraps end delete begin insert subgroups end insert of pupils to be achieved for each specified state priority. Existing law requires a charter for a charter school to include many of the local control and accountability plan elements and requires the charter school to annually update its plan related to those elements.

Existing law, an initiative measure, requires that all children in public schools, with certain exceptions, be taught English by being taught in English, requires that all children be placed in English language classrooms, and requires that children who are English learners be educated through sheltered English immersion during a temporary transition period not normally intended to exceed one year.

This bill would revise provisions regarding local control and accountability plans, primarily in regard to English learners, including requiring each county superintendent of schools and the governing board of a school district to include a listing and description of certain expenditures in its local control and accountability plan, as specified. The bill would add to the list of state priorities the extent to which teachers, administrators, and staff receive professional development or participate in induction programs, including the type and subject areas of the professional development provided. By adding to the duties of local educational agencies, this bill would impose a state-mandated local program.

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(4)

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begin insert (5) end insert  Existing law, on or before March 31, 2014, requires the State Board of Education to adopt templates for use by school districts and county superintendents of schools to meet the begin delete requirement end delete begin insert requirements end insert of local control and accountability plans.

This bill begin delete would end delete begin insert would, on or before March 31, 2015, end insert require begin delete the templates developed by end delete the state board begin delete to, end delete begin insert to adopt templates to, end insert among other things, ensure that each school district, county superintendent of schools, or charter school that receives supplemental and concentration funds for unduplicated pupils include specified information in its local control and accountability plan.

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(5)

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begin insert (6) end insert  Existing law requires, on or before July 1 of each fiscal year, the governing board of each school district to, among other things, adopt a budget, as provided. Existing law requires the county superintendent of schools to determine whether the adopted budget includes the expenditures necessary to implement the local control and accountability plan or annual update to the local control and accountability plan approved by the county superintendent of schools.

This bill would require the county superintendent of schools to also determine whether the adopted budget complies with the regulations related to the expenditure of moneys apportioned on the basis of the number and concentration of unduplicated pupils, as defined.

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(6)

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begin insert (7) end insert  Existing law requires the governing board of a school district to establish a parent advisory committee to provide advice to the governing board of the school district and the superintendent of the school district, as specified. Existing law additionally requires the governing board of a school district to establish an English learner parent advisory committee if the enrollment of the school district includes at least 15% English learners and the school district enrolls at least 50 pupils who are English learners.

This bill would instead require the governing board of a school district to establish a districtwide parent advisory committee and, as a condition of state supplemental grant funds, if either the enrollment of the school district includes at least 15% English learners or the school district enrolls at least 50 pupils who are English learners, to establish a districtwide English learner parent advisory committee. The bill would require the districtwide English learner parent advisory committee to advise the governing board of the school district on specified tasks, including, among others, the establishment of school district goals and objectives for programs and services for English learners and school district reclassification procedures.

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(7)

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begin insert (8) end insert  Existing law requires a county superintendent of schools to establish an English learner parent advisory committee if the enrollment of the pupils in the schools and programs operated by the county superintendent of schools includes at least 15% English learners and the schools and programs operated by the county superintendent of schools enroll at least 50 pupils who are English learners.

This bill would instead require a county superintendent of schools to establish an English learner parent advisory committee if either the enrollment of the pupils in the schools and programs operated by the county superintendent of schools includes at least 15% English learners or the schools and programs operated by the county superintendent of schools enroll at least 50 pupils who are English learners.

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(8)

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begin insert (9) end insert  This bill would make other related and conforming changes and various nonsubstantive changes.

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(9)

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begin insert (10) end insert  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 41020 of the Education Code is amended
to read:

41020.  

(a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for
the most efficient and effective use of public funds for the
education of children in California by strengthening fiscal
accountability at the school district, county, and state levels.

(b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit
of all funds under his or her jurisdiction and control and the
governing board of each local educational agency shall either
provide for an audit of the books and accounts of the local
educational agency, including an audit of income and expenditures
by source of funds, or make arrangements with the county
superintendent of schools having jurisdiction over the local
educational agency to provide for that auditing.

(2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and
the governing board.

(3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.

(4) An audit conducted pursuant to this section shall comply
fully with the Government Auditing Standards issued by the
Comptroller General of the United States.

(5) For purposes of this section, “local educational agency” does
not include community colleges.

(c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures. Each audit shall include a determination of whether
funds were expended pursuant to a local control and accountability
plan or an approved annual update to a local control and
accountability plan pursuant to Article 4.5 (commencing with
Section 52060) of Chapter 6.1 of Part 28 of Division 4 and whether
expenditures were in compliance with the regulations adopted
pursuant to Section 42238.07.

(d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.

(e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each school district
from school district funds.

(2) The cost of the audit provided for by a governing board of
a local educational agency shall be paid from local educational
agency funds. The audit of the funds under the jurisdiction and
control of the county superintendent of schools shall be paid from
the county school service fund.

(f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by
the Controller not later than December 31 of each year.

(2) Commencing with the 2003-04 fiscal year and except as
provided in subdivision (d) of Section 41320.1, it is unlawful for
a public accounting firm to provide audit services to a local
educational agency if the lead audit partner, or coordinating audit
partner, having primary responsibility for the audit, or the audit
partner responsible for reviewing the audit, has performed audit
services for that local educational agency in each of the six previous
fiscal years. The Education Audits Appeal Panel may waive this
requirement if the panel finds that no otherwise eligible auditor is
available to perform the audit.

(3) It is the intent of the Legislature that, notwithstanding
paragraph (2), the rotation within public accounting firms conform
to provisions of the federal Sarbanes-Oxley Act of 2002 (Public
Law 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of
the report required by the act of the Comptroller General of the
United States addressing the mandatory rotation of registered
public accounting firms, the Legislature intends to reconsider the
provisions of paragraph (2). In determining which certified public
accountants and public accountants shall be included in the
directory, the Controller shall use the following criteria:

(A) The certified public accountants or public accountants shall
be in good standing as certified by the California Board of
Accountancy.

(B) The certified public accountants or public accountants, as
a result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.

(g) (1) The auditor’s report shall include each of the following:

(A) A statement that the audit was conducted pursuant to
standards and procedures developed in accordance with Chapter
3 (commencing with Section 14500) of Part 9 of Division 1 of
Title 1.

(B) A summary of audit exceptions and management
improvement recommendations.

(C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt
about the ability of the local educational agency to continue as a
going concern for a reasonable period of time. This evaluation
shall be based on the begin delete Statement end delete begin insert Statements end insert on Auditing Standards
(SAS) No. 59, as issued by the begin delete AICPA end delete begin insert American Institute of
Certified Public Accountants (AICPA) end insert regarding disclosure
requirements relating to the ability of the entity to continue as a
going concern.

(2) To the extent possible, a description of correction or plan
of correction shall be incorporated in the audit report, describing
the specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as “will
implement,” “accepted the recommendation,” or “will discuss at
a later date.”

(h) Not later than December 15, a report of each local
educational agency audit for the preceding fiscal year shall be filed
with the county superintendent of schools of the county in which
the local educational agency is located, the department, and the
Controller. The Superintendent shall make any adjustments
necessary in future apportionments of all state funds, to correct
any audit exceptions revealed by those audit reports.

(i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall be responsible
for reviewing the audit exceptions contained in an audit of a local
educational agency under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have
been either corrected or an acceptable plan of correction has been
developed.

(2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall include in
the review of audit exceptions performed pursuant to this
subdivision those audit exceptions related to use of instructional
materials program funds, teacher misassignments pursuant to
Section 44258.9, begin insert and end insert information reported on the school
accountability report card required pursuant to Section begin delete 33126 end delete
begin insert 33126, end insert and shall determine whether the exceptions are either
corrected or an acceptable plan of correction has been developed.

(j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of
the audit by the county superintendent of schools having
jurisdiction over the local educational agency, the county office
of education shall do all of the following:

(1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited
to, those related to local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03,
and independent study.

(2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the local
educational agency and request the governing board of the local
educational agency to provide to the county superintendent of
schools a description of the corrections or plan of correction by
March 15.

(3) Review the description of correction or plan of correction
and determine its adequacy. If the description of the correction or
plan of correction is not adequate, the county superintendent of
schools shall require the local educational agency to resubmit that
portion of its response that is inadequate.

(k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his
or her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review
were reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has
been submitted to the county superintendent of schools. In addition,
the county superintendent shall identify, by local educational
agency, any attendance-related audit exception or exceptions
involving state funds, and require the local educational agency to
which the audit exceptions were directed to submit appropriate
reporting forms for processing by the Superintendent.

(l) In the audit of a local educational agency for a subsequent
year, the auditor shall review the correction or plan or plans of
correction submitted by the local educational agency to determine
if the exceptions have been resolved. If not, the auditor shall
immediately notify the appropriate county office of education and
the department and restate the exception in the audit report. After
receiving that notification, the department shall either consult with
the local educational agency to resolve the exception or require
the county superintendent of schools to follow up with the local
educational agency.

(m) (1) The Superintendent shall be responsible for ensuring
that local educational agencies have either corrected or developed
plans of correction for any one or more of the following:

(A) All federal and state compliance audit exceptions identified
in the audit.

(B) Any exceptions that the county superintendent certifies as
of May 15 have not been corrected.

(C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.

(2) In addition, the Superintendent shall be responsible for
ensuring that county superintendents of schools and each county
board of education that serves as the governing board of a local
educational agency either correct all audit exceptions identified in
the audits of county superintendents of schools and of the local
educational agencies for which the county boards of education
serve as the governing boards or develop acceptable plans of
correction for those exceptions.

(3) The Superintendent shall report annually to the Controller
on his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education
that serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).

(n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, commencing with 2002-03
audits pursuant to this section, the Controller shall require auditors
to categorize audit exceptions in each audit report in a manner that
will make it clear to both the county superintendent of schools and
the Superintendent which exceptions they are responsible for
ensuring the correction of by a local educational agency. In
addition, the Controller annually shall select a sampling of county
superintendents of schools and perform a followup of the audit
resolution process of those county superintendents of schools and
report the results of that followup to the Superintendent and the
county superintendents of schools that were reviewed.

(o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.

(p) If a governing board or county superintendent of schools
fails or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements
for the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be.

(q) Audits of regional occupational centers and programs are
subject to the provisions of this section.

(r) This section does not authorize examination of, or reports
on, the curriculum used or provided for in any local educational
agency.

(s) Notwithstanding any other law, an auditing, management,
or other consulting service to be provided to a local educational
agency by a certified public accounting firm while the certified
public accounting firm is performing an audit of the agency
pursuant to this section must be in accord with Government
Accounting Standards, Amendment No. 3, as published by the
United States General Accounting Office.

SEC. 2.  

Section 42127 of the Education Code is amended to
read:

42127.  

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

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

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

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

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

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

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

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

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

(3) Determine whether the adopted budget includes the
expenditures necessary to implement the local control and
accountability plan or annual update to the local control and
accountability plan approved by the county superintendent of
schools and whether those expenditures comply with the
regulations adopted pursuant to Section 42238.07.

(d) (1) On or before August 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the begin delete 2014-15 end delete begin insert 2015-16 end insert
fiscal year and each fiscal year thereafter, the county superintendent
of schools shall disapprove a budget if the county superintendent
of schools determines that the budget does not include the
expenditures necessary to implement a local control and
accountability plan or an annual update to the local control and
accountability plan approved by the county superintendent of
schools or does not comply with the regulations adopted pursuant
to Section 42238.07. If a school district does not submit a budget
to the county superintendent of schools, the county superintendent
of schools shall develop, at school district expense, a budget for
that school district by September 15 and transmit that budget to
the governing board of the school district. The budget prepared
by the county superintendent of schools shall be deemed adopted,
unless the county superintendent of schools approves any
modifications made by the governing board of the school district.
The approved budget shall be used as a guide for the school
district’s priorities. The Superintendent shall review and certify
the budget approved by the county. If, pursuant to the review
conducted pursuant to subdivision (c), the county superintendent
of schools determines that the adopted budget for a school district
does not satisfy paragraph (1), (2), or (3) of that subdivision, he
or she shall conditionally approve or disapprove the budget and,
not later than August 15, transmit to the governing board of the
school district, in writing, his or her recommendations regarding
revision of the budget and the reasons for those recommendations,
including, but not limited to, the amounts of any budget
adjustments needed before he or she can approve that budget. The
county superintendent of schools may assign a fiscal adviser to
assist the school district to develop a budget in compliance with
those revisions. In addition, the county superintendent of schools
may appoint a committee to examine and comment on the
superintendent’s review and recommendations, subject to the
requirement that the committee report its findings to the county
superintendent of schools no later than August 20. For the 2011-12
fiscal year, notwithstanding any of the standards and criteria
adopted by the state board pursuant to Section 33127, the county
superintendent of schools, as a condition on approval of a school
district budget, shall not require a school district to project a lower
level of revenue per unit of average daily attendance than it
received in the 2010-11 fiscal year nor require the school district
to demonstrate that it is able to meet its financial obligations for
the two subsequent fiscal years.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 3.  

Section 42238.07 of the Education Code is amended
to read:

42238.07.  

(a) On or before January 31, 2014, the state board
shall adopt regulations that govern the expenditure of funds
apportioned on the basis of the number and concentration of
unduplicated pupils pursuant to Sections 2574, 2575, 42238.02,
and 42238.03. The regulations shall include, but are not limited
to, provisions that do begin delete all end delete begin insert both end insert of the following:

(1) Require a school district, county office of education, or
charter school to increase or improve services for unduplicated
pupils in proportion to the increase in funds apportioned on the
basis of the number and concentration of unduplicated pupils in
the school district, county office of education, or charter school.

begin delete

(2) Authorize a school district, county office of education, or
charter school to use funds apportioned on the basis of the number
and concentration of unduplicated pupils for schoolwide purposes.
The regulations governing the expenditures of moneys
forschoolwide purposes shall not be more restrictive than the
restrictions provided for in Title I of the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).

end delete begin delete

(3) Authorize a school district or county office of education to
use of funds apportioned on the basis of the number and
concentration of unduplicated pupils, for school districts, for
districtwide purposes, or, for county offices of education, for
countywide purposes.

end delete begin insert

(b) On or before January 31, 2015, the state board shall revise
the regulations adopted pursuant to subdivision (a) to do both of
the following:

end insert begin insert

(1) Authorize a school district, county office of education, or
charter school to use funds apportioned on the basis of the number
and concentration of unduplicated pupils for schoolwide purposes.
The regulations governing the expenditures of moneys for
schoolwide purposes shall not be more restrictive than the
restrictions provided for in Title I of the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).

end insert begin insert

(2) Authorize a school district or county office of education to
use funds apportioned on the basis of the number and concentration
of unduplicated pupils, for school districts, for districtwide
purposes, or, for county offices of education, for countywide
purposes.

end insert begin delete

(b)

end delete

begin insert (c) end insert  The state board may adopt emergency regulations for
purposes of this section.

SEC. 4.  

Section 52052 of the Education Code is amended to
read:

52052.  

(a) (1) The Superintendent, with approval of the state
board, shall develop an Academic Performance Index (API), to
measure the performance of schools and school districts, especially
the academic performance of pupils.

(2) A school or school district shall demonstrate comparable
improvement in academic achievement as measured by the API
by all numerically significant pupil subgroups at the school or
school district, including:

(A) Ethnic subgroups.

(B) Socioeconomically disadvantaged pupils.

(C) English learners.

(D) Pupils with disabilities.

(E) Foster youth.

(F) Reclassified English learners. The inclusion of reclassified
English learners in the API shall, at a minimum, be consistent with
the manner in which reclassified English learners are included in
the determination of adequate yearly progress, as required by
Section 6311(b)(2)(B) of the federal No Child Left Behind Act of
2001 (20 U.S.C. Sec. 6301 et seq.).

(3) (A) For purposes of this section, a numerically significant
pupil subgroup is one that consists of at least 30 pupils, each of
whom has a valid test score.

(B) Notwithstanding subparagraph (A), for a subgroup of pupils
who are foster youth, a numerically significant pupil subgroup is
one that consists of at least 15 pupils.

(C) For a school or school district with an API score that is
based on no fewer than 11 and no more than 99 pupils with valid
test scores, numerically significant pupil subgroups shall be defined
by the Superintendent, with approval by the state board.

(4) (A) The API shall consist of a variety of indicators currently
reported to the department, including, but not limited to, the results
of the achievement test administered pursuant to Section 60640,
attendance rates for pupils in elementary schools, middle schools,
and secondary schools, and the graduation rates for pupils in
secondary schools.

(B) The Superintendent, with the approval of the state board,
may also incorporate into the API the rates at which pupils
successfully promote from one grade to the next in middle school
and high school, and successfully matriculate from middle school
to high school.

(C) Graduation rates for pupils in secondary schools shall be
calculated for the API as follows:

(i) Four-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school
year, which is considered to be three school years after the pupils
entered grade 9 for the first time, and dividing that number by the
total calculated in clause (ii).

(ii) The number of pupils entering grade 9 for the first time in
the school year three school years before the current school year,
plus the number of pupils who transferred into the class graduating
at the end of the current school year between the school year that
was three school years before the current school year and the date
of graduation, less the number of pupils who transferred out of the
school between the school year that was three school years before
the current school year and the date of graduation who were
members of the class that is graduating at the end of the current
school year.

(iii) Five-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school
year, which is considered to be four school years after the pupils
entered grade 9 for the first time, and dividing that number by the
total calculated in clause (iv).

(iv) The number of pupils entering grade 9 for the first time in
the school year four years before the current school year, plus the
number of pupils who transferred into the class graduating at the
end of the current school year between the school year that was
four school years before the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was four years before the
current school year and the date of graduation who were members
of the class that is graduating at the end of the current school year.

(v) Six-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school
year, which is considered to be five school years after the pupils
entered grade 9 for the first time, and dividing that number by the
total calculated in clause (vi).

(vi) The number of pupils entering grade 9 for the first time in
the school year five years before the current school year, plus the
number of pupils who transferred into the class graduating at the
end of the current school year between the school year that was
five school years before the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was five years before the
current school year and the date of graduation who were members
of the class that is graduating at the end of the current school year.

(D) The inclusion of five- and six-year graduation rates for
pupils in secondary schools shall meet the following requirements:

(i) Schools and school districts shall be granted one-half the
credit in their API scores for graduating pupils in five years that
they are granted for graduating pupils in four years.

(ii) Schools and school districts shall be granted one-quarter the
credit in their API scores for graduating pupils in six years that
they are granted for graduating pupils in four years.

(iii) Notwithstanding clauses (i) and (ii), schools and school
districts shall be granted full credit in their API scores for
graduating in five or six years a pupil with disabilities who
graduates in accordance with his or her individualized education
program.

(E) The pupil data collected for the API that comes from the
achievement test administered pursuant to Section 60640 and the
high school exit examination administered pursuant to Section
60851, when fully implemented, shall be disaggregated by special
education status, English learners, socioeconomic status, gender,
and ethnic group. Only the test scores of pupils who were counted
as part of the enrollment in the annual data collection of the
California Basic Educational Data System for the current fiscal
year and who were continuously enrolled during that year may be
included in the test result reports in the API score of the school.

(F) (i) Commencing with the baseline API calculation in 2016,
and for each year thereafter, results of the achievement test and
other tests specified in subdivision (b) shall constitute no more
than 60 percent of the value of the index for secondary schools.

(ii)  In addition to the elements required by this paragraph, the
Superintendent, with approval of the state board, may incorporate
into the index for secondary schools valid, reliable, and stable
measures of pupil preparedness for postsecondary education and
career.

(G) Results of the achievement test and other tests specified in
subdivision (b) shall constitute at least 60 percent of the value of
the index for primary schools and middle schools.

(H) It is the intent of the Legislature that the state’s system of
public school accountability be more closely aligned with both the
public’s expectations for public education and the workforce needs
of the state’s economy. It is therefore necessary that the
accountability system evolve beyond its narrow focus on pupil test
scores to encompass other valuable information about school
performance, including, but not limited to, pupil preparedness for
college and career, as well as the high school graduation rates
already required by law.

(I) The Superintendent shall annually determine the accuracy
of the graduation rate data. Notwithstanding any other law,
graduation rates for pupils in dropout recovery high schools shall
not be included in the API. For purposes of this subparagraph,
“dropout recovery high school” means a high school in which 50
percent or more of its pupils have been designated as dropouts
pursuant to the exit/withdrawal codes developed by the department
or left a school and were not otherwise enrolled in a school for a
period of at least 180 days.

(J) To complement the API, the Superintendent, with the
approval of the state board, may develop and implement a program
of school quality review that features locally convened panels to
visit schools, observe teachers, interview pupils, and examine pupil
work, if an appropriation for this purpose is made in the annual
Budget Act.

(K) The Superintendent shall annually provide to local
educational agencies and the public a transparent and
understandable explanation of the individual components of the
API and their relative values within the API.

(L) An additional element chosen by the Superintendent and
the state board for inclusion in the API pursuant to this paragraph
shall not be incorporated into the API until at least one full school
year after the state board’s decision to include the element into the
API.

(b) Pupil scores from the following tests, when available and
when found to be valid and reliable for this purpose, shall be
incorporated into the API:

(1) The standards-based achievement tests provided for in
Section 60642.5.

(2) The high school exit examination.

(c) Based on the API, the Superintendent shall develop, and the
state board shall adopt, expected annual percentage growth targets
for all schools based on their API baseline score from the previous
year. Schools are expected to meet these growth targets through
effective allocation of available resources. For schools below the
statewide API performance target adopted by the state board
pursuant to subdivision (d), the minimum annual percentage growth
target shall be 5 percent of the difference between the actual API
score of a school and the statewide API performance target, or one
API point, whichever is greater. Schools at or above the statewide
API performance target shall have, as their growth target,
maintenance of their API score above the statewide API
performance target. However, the state board may set differential
growth targets based on grade level of instruction and may set
higher growth targets for the lowest performing schools because
they have the greatest room for improvement. To meet its growth
target, a school shall demonstrate that the annual growth in its API
is equal to or more than its schoolwide annual percentage growth
target and that all numerically significant pupil subgroups, as
defined in subdivision (a), are making comparable improvement.

(d) Upon adoption of state performance standards by the state
board, the Superintendent shall recommend, and the state board
shall adopt, a statewide API performance target that includes
consideration of performance standards and represents the
proficiency level required to meet the state performance target.

(e) (1) A school or school district with 11 to 99 pupils with
valid test scores shall receive an API score with an asterisk that
indicates less statistical certainty than API scores based on 100 or
more test scores.

(2) A school or school district annually shall receive an API
score, unless the Superintendent determines that an API score
would be an invalid measure of the performance of the school or
school district for one or more of the following reasons:

(A) Irregularities in testing procedures occurred.

(B) The data used to calculate the API score of the school or
school district are not representative of the pupil population at the
school or school district.

(C) Significant demographic changes in the pupil population
render year-to-year comparisons of pupil performance invalid.

(D) The department discovers or receives information indicating
that the integrity of the API score has been compromised.

(E) Insufficient pupil participation in the assessments included
in the API.

(F) A transition to new standards-based assessments
compromises comparability of results across schools or school
districts. The Superintendent may use the authority in this
subparagraph in the 2013-14 and 2014-15 school years only, with
approval of the state board.

(3) If a school or school district has fewer than 100 pupils with
valid test scores, the calculation of the API or adequate yearly
progress pursuant to the federal No Child Left Behind Act of 2001
(20 U.S.C. Sec. 6301 et seq.) and federal regulations may be
calculated over more than one annual administration of the tests
administered pursuant to Section 60640 and the high school exit
examination administered pursuant to Section 60851, consistent
with regulations adopted by the state board.

(4) Any school or school district that does not receive an API
calculated pursuant to subparagraph (F) of paragraph (2) shall not
receive an API growth target pursuant to subdivision (c). Schools
and school districts that do not have an API calculated pursuant
to subparagraph (F) of paragraph (2) shall use one of the following:

(A) The most recent API calculation.

(B) An average of the three most recent annual API calculations.

(C) Alternative measures that show increases in pupil academic
achievement for all groups of pupils schoolwide and among
significant subgroups.

(f) Only schools with 100 or more test scores contributing to
the API may be included in the API rankings.

(g) The Superintendent, with the approval of the state board,
shall develop an alternative accountability system for schools under
the jurisdiction of a county board of education or a county
superintendent of schools, community day schools, nonpublic,
nonsectarian schools pursuant to Section 56366, and alternative
schools serving high-risk pupils, including continuation high
schools and opportunity schools. Schools in the alternative
accountability system may receive an API score, but shall not be
included in the API rankings.

(h) For purposes of this section, county offices of education
shall be considered school districts.

SEC. 5.  

Section 52060 of the Education Code is amended to
read:

52060.  

(a) On or before July 1, 2014, the governing board of
each school district shall adopt a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a
governing board of a school district shall be effective for a period
of three years, and shall be updated on or before July 1 of each
year.

(c) A local control and accountability plan adopted by a
governing board of a school district shall include, for the school
district and each school within the school district, all of the
following:

(1) A description of the annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d) and for any additional local priorities identified by the
governing board of the school district. For purposes of this article,
a subgroup of pupils identified pursuant to Section 52052 shall be
a numerically significant pupil subgroup as specified in paragraphs
(2) and (3) of subdivision (a) of Section 52052.

(2) A description of the specific actions the school district will
take during each year of the local control and accountability plan
to achieve the goals identified in paragraph (1), including the
enumeration of any specific actions necessary for that year to
correct any deficiencies in regard to the state priorities listed in
paragraph (1) of subdivision (d). The specific actions shall not
supersede the provisions of existing local collective bargaining
agreements within the jurisdiction of the school district.

(3)  begin delete A end delete begin insert Beginning with the 2015-16 fiscal year, and each year
thereafter the local control and accountability plan is updated, a end insert
listing and description of the expenditures for the begin delete initial end delete fiscal year
implementing the specific actions included in the local control and
accountability plan.

(4)  begin delete A end delete begin insert Beginning with the 2015-16 fiscal year, and each year end insert
begin insert thereafter the local control and accountability plan is updated, a end insert
listing and description of the expenditures for the begin delete initial end delete fiscal year
that will serve pupils to whom one or more of the definitions in
Section 42238.01 apply, and pupils reclassified as fluent English
proficient.

(d) All of the following are state priorities:

(1) The degree to which the teachers of the school district are
appropriately assigned in accordance with Section 44258.9, and
fully credentialed in the subject areas, and, for the pupils they are
teaching, every pupil in the school district has sufficient access to
the standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to former Section 60811.3 as it read on June 30, 2013,
or adopted pursuant to Section 60811.4 on or after January 1, 2014,
for purposes of gaining academic content knowledge and English
language proficiency.

(3) Parental involvement, including efforts the school district
makes to seek parent input in making decisions for the school
district and each individual schoolsite, and including how the
school district will promote parental participation in programs for
unduplicated pupils and individuals with exceptional needs.

(4) Pupil achievement, including for each subgroup as identified
in Section 52052, as measured by all of the following, as
applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical educational standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the program and services
that are provided to benefit these pupils as a result of the funding
received pursuant to Section 42238.02, as implemented by Section
42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(9) The extent to which teachers, administrators, and staff
receive professional development or participate in induction
programs, including the type and subject areas of the professional
development provided.

(e) For purposes of the descriptions required by subdivision (c),
a governing board of a school district may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) of
paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) A governing board of a school district shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the school district, parents, and pupils in
developing a local control and accountability plan.

(h) A school district may identify local priorities, goals in regard
to the local priorities, and the method for measuring the school
district’s progress toward achieving those goals.

SEC. 6.  

Section 52061 of the Education Code is amended to
read:

52061.  

(a) On or before July 1, 2015, and each year thereafter,
a school district shall update the local control and accountability
plan. The annual update shall be developed using a template
developed pursuant to Section 52064 and shall include all of the
following:

(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52060.

(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of
the effectiveness of the specific actions described in the existing
local control and accountability plan toward achieving the goals,
and a description of changes to the specific actions the school
district will make as a result of the review and assessment.

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan and the changes to the specific actions
made as a result of the reviews and assessment required by
paragraphs (1) and (2).

(4) A listing and description of expenditures for the fiscal year
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.

(b) The expenditures identified in subdivision (a) of this section
and subdivision (c) of Section 52060 shall be classified using the
California School Accounting Manual pursuant to Section 41010.

SEC. 7.  

Section 52063 of the Education Code is amended to
read:

52063.  

(a) (1) The governing board of a school district shall
establish a districtwide parent advisory committee to provide advice
to the governing board of the school district and the superintendent
of the school district regarding the requirements of this article.

(2) A parent advisory committee shall include parents or legal
guardians of pupils to whom one or more of the definitions in
Section 42238.01 apply.

(3) This subdivision shall not require the governing board of
the school district to establish a new districtwide parent advisory
committee if the governing board of the school district already has
established a districtwide parent advisory committee that meets
the requirements of this subdivision, including any committee
established to meet the requirements of the federal No Child Left
Behind Act of 2001 (Public Law 107-110) pursuant to Section
1112 of Subpart 1 of Part A of Title I of that act.

(b) As a condition of receipt of state supplemental grant funds,
the governing board of a school district shall establish a districtwide
English learner parent advisory committee if the enrollment of the
school district includes at least 15 percent English learners or the
school district enrolls at least 50 pupils who are English learners.

(c) Districtwide English learner parent advisory committees
shall advise the governing board of the school district on at least
the following tasks:

(1) Establishment of school district goals and objectives for
programs and services for English learners to ensure that the
academic and language proficiency needs of English learners,
including long-term English learners and English learners at risk
of becoming long-term English learners, as defined in Section
313.1, are being met.

(2) Administration of the home language survey.

(3) School district reclassification procedures, consistent with
the procedures developed pursuant to subdivision (f) of Section
313.

(d) This section shall not require the governing board of the
school district to establish a new districtwide English learner parent
advisory committee if the governing board of the school district
already has established a school district level parent advisory
committee that meets the applicable requirements of this section.

SEC. 8.  

Section 52064 of the Education Code is amended to
read:

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, 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, and the requirements of the federal No Child
Left Behind Act of 2001 (Public Law 107-110) and Section 64001
related to the Single Plan for Pupil Achievement, including the
requirements of Title III of the federal No Child Left Behind Act
of 2001 (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)  begin delete The templates developed by the state board shall end delete begin insert On or
before March 31, 2015, the state board shall adopt templates that,
beginning with the 2015-16 fiscal year, and each fiscal year
thereafter, end insert ensure that each school district, county superintendent
of schools, or charter school that receives supplemental and
concentration funds for unduplicated pupils, pursuant to Sections
2574, 2575, 42238.02, and 42238.03, include information on the
instructional programs and services provided to unduplicated pupils
for the purpose of increasing their academic achievement, as
referenced in Sections 52060 and 52066, in its local control and
accountability plan.

(d)  begin delete The templates shall end delete begin insert On or before March 31, 2015, the state
board shall adopt templates that, beginning with the 2015-16
fiscal year, and each fiscal year thereafter, end insert ensure that school
districts, county superintendents of schools, or charter schools
include information on the types of English language development
instructional programs provided to English learners, and how those
programs support the core instructional program, including, but
not limited to, the types of instructional materials provided to
pupils and the professional development provided to schoolsite
staff.

(e) 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.

(f) 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.

(g) 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.

(h) 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.

SEC. 9.  

Section 52066 of the Education Code is amended to
read:

52066.  

(a) On or before July 1, 2014, each county
superintendent of schools shall develop, and present to the county
board of education for adoption, a local control and accountability
plan using a template adopted by the state board.

(b) A local control and accountability plan adopted by a county
board of education shall be effective for a period of three years,
and shall be updated on or before July 1 of each year.

(c) A local control and accountability plan adopted by a county
board of education shall include, for each school or program
operated by the county superintendent of schools, all of the
following:

(1) A description of the annual goals, for all pupils and each
subgroup of pupils identified pursuant to Section 52052, to be
achieved for each of the state priorities identified in subdivision
(d), as applicable to the pupils served, and for any additional local
priorities identified by the county board of education.

(2) A description of the specific actions the county
superintendent of schools will take during each year of the local
control and accountability plan to achieve the goals identified in
paragraph (1), including the enumeration of any specific actions
necessary for that year to correct any deficiencies in regard to the
state priorities listed in paragraph (1) of subdivision (d). The
specific actions shall not supersede the provisions of existing local
collective bargaining agreements within the jurisdiction of the
county superintendent of schools.

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan pursuant to paragraph (2).

(4) A listing and description of expenditures for the fiscal year
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.

(d) All of the following are state priorities:

(1) The degree to which the teachers in the schools or programs
operated by the county superintendent of schools are appropriately
assigned in accordance with Section 44258.9 and fully credentialed
in the subject areas, and, for the pupils they are teaching, every
pupil in the schools or programs operated by the county
superintendent of schools has sufficient access to the
standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.

(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs
and services will enable English learners to access the common
core academic content standards adopted pursuant to Section
60605.8 and the English language development standards adopted
pursuant to former Section 60811.3 as it read on June 30, 2013,
or adopted pursuant to Section 60811.4 on or after January 1, 2014,
for purposes of gaining academic content knowledge and English
language proficiency.

(3) Parental involvement, including efforts the county
superintendent of schools makes to seek parent input in making
decisions for each individual schoolsite and program operated by
a county superintendent of schools, and including how the county
superintendent of schools will promote parental participation in
programs for unduplicated pupils and individuals with exceptional
needs.

(4) Pupil achievement, including for each of the subgroups
identified pursuant to Section 52052, as measured by all of the
following, as applicable:

(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.

(B) The Academic Performance Index, as described in Section
52052.

(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career technical
education sequences or programs of study that align with state
board-approved career technical education standards and
frameworks, including, but not limited to, those described in
subdivision (a) of Section 52302, subdivision (a) of Section
52372.5, or paragraph (2) of subdivision (e) of Section 54692.

(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of
English proficiency, as certified by the state board.

(E) The English learner reclassification rate.

(F) The percentage of pupils who have passed an advanced
placement examination with a score of 3 or higher.

(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program,
as described in Chapter 6 (commencing with Section 99300) of
Part 65 of Division 14 of Title 3, or any subsequent assessment of
college preparedness.

(5) Pupil engagement, as measured by all of the following, as
applicable:

(A) School attendance rates.

(B) Chronic absenteeism rates.

(C) Middle school dropout rates, as described in paragraph (3)
of subdivision (a) of Section 52052.1.

(D) High school dropout rates.

(E) High school graduation rates.

(6) School climate, as measured by all of the following, as
applicable:

(A) Pupil suspension rates.

(B) Pupil expulsion rates.

(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.

(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive,
of Section 51220, as applicable, including the programs and
services developed and provided to unduplicated pupils and
individuals with exceptional needs, and the begin delete program end delete begin insert programs end insert
and services that are provided to benefit these pupils as a result of
the funding received pursuant to Section 42238.02, as implemented
by Section 42238.03.

(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.

(9) How the county superintendent of schools will coordinate
instruction of expelled pupils pursuant to Section 48926.

(10) How the county superintendent of schools will coordinate
services for foster children, including, but not limited to, all of the
following:

(A) Working with the county child welfare agency to minimize
changes in school placement.

(B) Providing education-related information to the county child
welfare agency to assist the county child welfare agency in the
delivery of services to foster children, including, but not limited
to, educational status and progress information that is required to
be included in court reports.

(C) Responding to requests from the juvenile court for
information and working with the juvenile court to ensure the
delivery and coordination of necessary educational services.

(D) Establishing a mechanism for the efficient expeditious
transfer of health and education records and the health and
education passport.

(11) The extent to which teachers, administrators, and staff
receive professional development or participate in induction
programs, including the type and subject areas of the professional
development provided.

(e) For purposes of the descriptions required by subdivision (c),
a county board of education may consider qualitative information,
including, but not limited to, findings that result from school quality
reviews conducted pursuant to subparagraph (J) of paragraph (4)
of subdivision (a) of Section 52052 or any other reviews.

(f) To the extent practicable, data reported in a local control and
accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.

(g) The county superintendent of schools shall consult with
teachers, principals, administrators, other school personnel, local
bargaining units of the county office of education, parents, and
pupils in developing a local control and accountability plan.

(h) A county board of education may identify local priorities,
goals in regard to the local priorities, and the method for measuring
the county office of education’s progress toward achieving those
goals.

SEC. 10.  

Section 52067 of the Education Code is amended to
read:

52067.  

(a) On or before July 1, 2015, and each year thereafter,
a county board of education shall update the local control and
accountability plan. The annual update shall be developed using
a template developed pursuant to Section 52064 and shall include
all of the following:

(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52066.

(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of
the effectiveness of the specific actions described in the existing
local control and accountability plan toward achieving the goals,
and a description of changes to the specific actions the county
office of education will make as a result of the review and
assessment.

(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan, including the changes to the specific
actions made as a result of the reviews and assessment required
by paragraphs (1) and (2).

(4) A listing and description of expenditures for the county
office of education and each school for the fiscal year 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.

(b) The expenditures identified in subdivision (a) of this section
and subdivision (c) of Section 52066 shall be classified using the
California School Accounting Manual pursuant to Section 41010.

SEC. 11.  

Section 52069 of the Education Code is amended to
read:

52069.  

(a) (1) A county superintendent of schools shall
establish a parent advisory committee to provide advice to the
county board of education and the county superintendent of schools
regarding the requirements of this article.

(2) A parent advisory committee shall include parents or legal
guardians of pupils to whom one or more of the definitions in
Section 42238.01 apply.

(3) This subdivision shall not require the county superintendent
of schools to establish a new parent advisory committee if the
county superintendent of schools already has established a parent
advisory committee that meets the requirements of this subdivision,
including any committee established to meet the requirements of
the federal No Child Left Behind Act of 2001 (Public Law
107-110) pursuant to Section 1112 of Subpart 1 of Part A of Title
I of that act.

(b) (1) A county superintendent of schools shall establish an
English learner parent advisory committee if the enrollment of the
pupils in the schools and programs operated by the county
superintendent of schools includes at least 15 percent English
learners or the schools and programs operated by the county
superintendent of schools enroll at least 50 pupils who are English
learners.

(2) This subdivision shall not require the county superintendent
of schools to establish a new English learner parent advisory
committee if the county superintendent of schools already has
established a committee that meets the requirements of this
subdivision.

(3) A representative of the English learner parent advisory
committee shall be a member of the parent advisory committee
established pursuant to paragraph (1) of subdivision (a).

SEC. 12.  

Section 52071 of the Education Code is amended to
read:

52071.  

(a) If a county superintendent of schools does not
approve a local control and accountability plan or annual update
to the local control and accountability plan approved by a
governing board of a school district, or if the governing board of
a school district requests technical assistance, the county
superintendent of schools shall provide technical assistance,
including, among other things, any of the following:

(1) Identification of the school district’s strengths and
weaknesses in regard to the state priorities described in subdivision
(d) of Section 52060, communicated in writing to the school
district. This identification shall include a review of effective,
evidence-based programs that apply to the school district’s goals.

(2) Assignment of an academic expert or team of academic
experts to assist the school district in identifying and implementing
effective programs that are designed to improve the outcomes for
all pupil subgroups identified pursuant to Section 52052. The
county superintendent of schools may also solicit another school
district within the county to act as a partner to the school district
in need of technical assistance.

(3) Request that the Superintendent assign the California
Collaborative for Educational Excellence to provide advice and
assistance to the school district.

(b) Using an evaluation rubric adopted by the state board
pursuant to Section 52064.5, the county superintendent of schools
shall provide the technical assistance described in subdivision (a)
to any school district that fails to improve pupil achievement across
more than one state priority described in subdivision (d) of Section
52060 for one or more pupil subgroups identified pursuant to
Section 52052.

(c) Technical assistance provided pursuant to this section at the
request of a school district shall be paid for by the school district
requesting the assistance.

SEC. 13.  

Section 52071.5 of the Education Code is amended
to read:

52071.5.  

(a) If the Superintendent does not approve a local
control and accountability plan or annual update to the local control
and accountability plan approved by a county board of education,
or if the county board of education requests technical assistance,
the Superintendent shall provide technical assistance, including,
among other things, any of the following:

(1) Identification of the county board of education’s strengths
and weaknesses in regard to the state priorities described in
subdivision (d) of Section 52066, communicated in writing to the
county board of education. This identification shall include a
review of effective, evidence-based programs that apply to the
board’s goals.

(2) Assignment of an academic expert or team of academic
experts, or the California Collaborative for Educational Excellence
established pursuant to Section 52074, to assist the county board
of education in identifying and implementing effective programs
that are designed to improve the outcomes for all pupil subgroups
identified pursuant to Section 52052. The Superintendent may also
solicit another county office of education to act as a partner to the
county office of education in need of technical assistance.

(b) Using an evaluation rubric adopted by the state board
pursuant to Section 52064.5, the Superintendent shall provide the
technical assistance described in subdivision (a) to any county
office of education that fails to improve pupil achievement in
regard to more than one state priority described in subdivision (d)
of Section 52066 for any pupil subgroup identified pursuant to
Section 52052.

(c) Technical assistance provided pursuant to this section at the
request of a county board of education shall be paid for by the
county board of education receiving assistance.

SEC. 14.  

Section 54030 is added to the Education Code, to
read:

54030.  

A local educational agency shall expend unexpended
economic impact aid balances received pursuant to this part only
for purposes authorized in this part as it and adopted regulations
read on June 30, 2013.

SEC. 15.  

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