BILL NUMBER: AB 816	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2004
	AMENDED IN SENATE  JULY 2, 2003
	AMENDED IN SENATE  JUNE 16, 2003
	AMENDED IN ASSEMBLY  JUNE 2, 2003
	AMENDED IN ASSEMBLY  MAY 6, 2003
	AMENDED IN ASSEMBLY  APRIL 8, 2003
	AMENDED IN ASSEMBLY  MARCH 25, 2003

INTRODUCED BY   Assembly Member Reyes
    (Principal coauthors:  Assembly Members Canciamilla and
Richman) 

                        FEBRUARY 20, 2003

    An act to amend Section 80110 of the Water Code, relating
to electric power.   An act to amend Sections 64000 and
64001 of the Education Code, relating to categorical education
programs. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 816, as amended, Reyes.   Local publicly owned electric
utilities: Public Utilities Commission: direct transactions
  Consolidated application for categorical programs
 . 
   Existing law establishes a consolidated application process for
funds provided under specified state and federal categorical programs
and requires the Superintendent of Public Instruction to establish
the content, process, and frequency for conducting reviews of
district achievement related to those categorical programs.  Existing
law requires that school districts ensure that each school in a
district operating those categorical programs consolidate any plans
that are required by those programs into a single plan, to be known
as the Single Plan for Pupil Achievement.  Existing law requires that
this plan be aligned with school goals for improving pupil
achievement, and prescribes related matters.
   This bill would expand the list of categorical programs covered by
those provisions to include, at the discretion of the Superintendent
and with the approval of the state board, other state and federal
categorical programs that provide for the state monitoring of
compliance with program requirements.  The bill would also require
the Superintendent to conduct a review of a categorical program
covered by those provisions, and to determine whether the program is
in compliance with state and federal law.  The bill would require the
Superintendent, if appropriate, to assist a school district to
develop and complete a corrective action plan.   
   (1) Existing law authorizes the Department of Water Resources to
administer existing contracts for the purchase of electric power, and
to sell power to retail end-use customers and, with specified
exceptions, local publicly owned electric utilities, at not more than
the department's acquisition costs.  Existing law imposes on retail
end-use customers of electrical corporations and community choice
aggregators nonbypassable charges to repay certain costs of the
department and electrical corporations.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
and authorizes the commission to fix just and reasonable rates and
charges. Existing law requires the commission to authorize direct
transactions between electricity suppliers and end-use customers,
also known as direct access.  Existing law suspends, after a period
of time to be determined by the commission, the right of a retail
end-use customer to acquire electricity from other electric service
providers pursuant to direct transactions, until the department no
longer supplies electricity under those provisions.  Pursuant to
these provisions, the commission has instituted a rulemaking
proceeding to implement the suspension of direct access to result in
a decision and order adopting cost responsibility surcharge
mechanisms for municipal departing load.
   This bill would require the commission to reinstate the right of
retail end-use customers with a load requirement of 500 kilowatts or
more to acquire electricity from other electric service providers
subject to specified conditions.  Retail end-use customers under
single ownership would be authorized to aggregate load served by
multiple meters, to meet the 500 kilowatt load requirement.  The bill
would require the commission, in considering the procurement plan of
an electrical corporation, to set the amount of direct access
permitted to minimize the potential that the electrical corporation
will enter into commitments that the subsequent exercise of direct
access will render unnecessary or excessive.  The bill would require
the commission to adopt rules it determines to be necessary to
implement the reinstatement of direct access, including any notice
requirements imposed as a condition of direct access, and provisions
to ensure the prompt recovery by an electrical corporation of costs
it incurs to reinstate and administer direct access.  Because a
violation of a rule or order of the commission is a crime under
existing law, the bill would impose a state-mandated local program by
creating a new crime.
   This bill would declare the intent of the Legislature to enact
legislation that will conform to the decision and order of the
commission adopting cost responsibility surcharge mechanisms for
municipal departing load, provided that the decision and order will
not result in cost shifting to bundled service customers of
electrical corporations for recoverable costs reasonably incurred on
behalf of departing municipal load.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   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.  It is the intent of the Legislature to enact 

  SECTION 1.  Section 64000 of the Education Code is amended to read:

   64000.  (a)  The provisions of this   This
 part  shall apply   applies  to
applications for funds under the following categorical programs:
   (1) School library programs established pursuant to Chapter 2
(commencing with Section 18100) of Part 11.
   (2) Staff development centers and programs established pursuant to
Chapter 3.1 (commencing with Section 44670) of Part 25.
   (3) School improvement programs established pursuant to Chapter 6
(commencing with Section 52000) of Part 28.
   (4) Bilingual education programs pursuant to Article 3 (commencing
with Section 52160) of Chapter 7 of Part 28.
   (5) School-based coordinated categorical programs established
pursuant to Chapter 12 (commencing with Section 52800) of Part 28.
   (6) Economic Impact Aid programs established pursuant to Chapter 1
(commencing with Section 54000) of Part 29.
   (7) The Miller-Unruh Basic Reading Act of 1965 pursuant to Chapter
2 (commencing with Section 54100) of Part 29.
   (8) Compensatory education programs established pursuant to
Chapter 4 (commencing with Section 54400) of Part 29, except for
programs for migrant children pursuant to Article 3 (commencing with
Section 54440) of Chapter 4 of Part 29.
   (9) Programs providing assistance to disadvantaged pupils under
Section 6312 of Title 20 of the United States Code, and programs
providing assistance for neglected or delinquent pupils who are at
risk of dropping out of school, as funded by Section 6421 of Title 20
of the United States Code.
   (10) Capital expense funding, as provided by Title I of the
Improving America's Schools Act of 1994 (20 U.S.C. Sec. 1001 et
seq.).
   (11) Tenth grade counseling programs established pursuant to
Section 48431.6.
   (12) California Peer Assistance and Review Programs for Teachers
established pursuant to Article 4.5 (commencing with Section 44500)
of Chapter 3 of Part 25.
   (13) Professional development programs established pursuant to
Section 6601 of Title 20 of the United States Code.
   (14) Innovative Program Strategies Programs established pursuant
to Section 7303 of Title 20 of the United States Code.
   (15) Programs established under the federal Class Size Reduction
Initiative (P.L. 106-554).
   (16) Programs for tobacco use prevention funded by Section 7115 of
Title 20 of the United States Code.
   (17) School safety and violence prevention programs, established
pursuant to Article 3.6 (commencing with Section 32228) of Chapter 2
of Part 19.
   (18) Safe and Drug Free Schools and Communities programs
established pursuant to Section 7113 of Title 20 of the United States
Code.  
   (19) At the discretion of the Superintendent and with the approval
of the State Board of Education, this part shall also apply to other
state and federal categorical programs that provide for state
monitoring of compliance with program requirements. 
   (b) Each school district that elects to apply for any of these
state funds shall submit to the  State Department of
Education   department  , for approval by the State
Board of Education, a single consolidated application for approval
or continuance of those state categorical programs subject to this
part.
   (c) Each school district that elects to apply for any of these
federal funds may submit to the  State Department of
Education   department  for approval, by the State
Board of Education, a single consolidated application for approval or
continuance of those federal categorical programs subject to this
part.   
  SEC. 2.  Section 64001 of the Education Code is amended to read:

   64001.  (a) Notwithstanding any other  provision of
 law,  a  school   
districts   district   shall  
is  not  be  required to submit to the
 State Department of Education   department
 , as part of the consolidated application, school plans for
categorical programs subject to this part.  School districts shall
assure, in the consolidated application, that the Single Plan for
Pupil Achievement established pursuant to subdivision  (d)
  (f)  has been prepared in accordance with law,
that schoolsite councils have developed and approved a plan, to be
known as the Single Plan for Pupil Achievement for schools
participating in programs funded through the consolidated application
process, and any other school program they choose to include, and
that school plans were developed with the review, certification, and
advice of any applicable school advisory committees.  The Single Plan
for Pupil Achievement may also be referred to as the Single Plan for
Student Achievement.  The consolidated application shall also
include certifications by appropriate district advisory committees
that the application was developed with review and advice of those
committees.  
   For  
   (b) For  any consolidated application that does not include
the necessary certifications or assurances, the  State
Department of Education   department  shall
initiate an investigation to determine whether the consolidated
application and Single Plan for Pupil Achievement were developed in
accordance with law and with the involvement of applicable advisory
committees and schoolsite councils.  
   (b) 
    (c) (1)  Onsite school and district compliance reviews
of categorical programs shall continue, and school plans shall be
required and reviewed as part of these onsite visits and compliance
reviews.  The Superintendent  of Public Instruction 
shall establish the process and frequency for conducting reviews of
district achievement and compliance with state and federal
categorical program requirements.  In addition, the
Superintendent of Public Instruction   The
Superintendent  shall establish the content of these
instruments, including any criteria for differentiating these reviews
based on the achievement of pupils, as demonstrated by the Academic
Performance Index developed pursuant to Section 52052,  available
data pertaining to the effectiveness of categorical programs, 
and evidence of district compliance with state and federal law.  The
State Board of Education shall review the content of these
instruments for consistency with  State Board of Education
  state board  policy.  
   (2) The Superintendent shall conduct a review of each categorical
program, based upon an analysis of available data including pupil
achievement data and test results.  The Superintendent shall
determine whether a program is in compliance with state and federal
law.  The Superintendent shall identify corrective action to be
taken, if appropriate, and assist a school district to develop and
complete a corrective action plan.  
   (c)  
   (d)  A school district shall submit school plans whenever the
 State Department of Education   department
 requires the plans in order to effectively administer any
categorical program subject to this part.  The  State
Department of Education   department  may require
submission of the school plan for any school that is the specific
subject of a complaint involving any categorical program or service
subject to this part.
    (e)  The  State Department of Education
  department  may require a school district to
submit other data or information as may be necessary for the
department to effectively administer any categorical program subject
to this part.  
   (d)  
   (f)  Notwithstanding any other  provision of
 law, as a condition of receiving state funding for a
categorical program pursuant to Section 64000,  and in lieu
of the information submission requirements that were previously
required by this section prior to the amendments that added this
subdivision and subdivisions (e) to (i), inclusive,  school
districts shall ensure that each school in a district that operates
any categorical programs subject to this part consolidates any plans
that are required by those programs into a single plan.  Schools may
consolidate any plans that are required by federal programs subject
to this part into this plan, unless otherwise prohibited by federal
law.  That plan shall be known as the Single Plan for Pupil
Achievement or may be referred to as the Single Plan for Student
Achievement.  
   (e)  
   (g)  Plans developed pursuant to subdivision (d) of Section
52054, and Section 6314 and following of Title 20 of the United
States Code,  shall  satisfy  this 
 the  requirement  of subdivision (f)  .  

   (f)  
   (h)  Notwithstanding any other  provision of
 law, the content of a Single Plan for Pupil Achievement
shall be aligned with school goals for improving pupil achievement.
School goals shall be based upon an analysis of verifiable state
data, including the Academic Performance Index developed pursuant to
Section 52052 and the English  Language Development 
 language development  test developed pursuant to Section
60810, and may include any data voluntarily developed by districts to
measure pupil achievement.  The Single Plan for Pupil Achievement
shall, at a minimum, address how funds provided to the school through
any of the sources identified in Section 64000 will be used to
improve the academic performance of all pupils to the level of the
performance goals, as established by the Academic Performance Index
developed pursuant to Section 52052.  The plan shall also identify
the schools' means of evaluating progress toward accomplishing those
goals and  how   the manner in which  state
and federal law governing these programs will be implemented.

   (g)  
   (i)  The plan required by this section shall be reviewed
annually and updated, including proposed expenditure of funds
allocated to the school through the consolidated application, by the
schoolsite council, or, if the school does not have a schoolsite
council, by schoolwide advisory groups or school support groups that
conform to the requirements of Section 52012.  The plans shall be
reviewed and approved by the governing board of the local education
agency at a regularly scheduled meeting whenever there are material
changes that affect the academic programs for  students
  pupils  covered by programs identified in Section
64000.  
   (h)  
   (j)  The school plan and subsequent revisions shall be
reviewed and approved by the governing board of the school district.
School district governing boards shall certify that, to the extent
allowable under federal law, plans developed for purposes of this
section are consistent with district local improvement plans that are
required as a condition of receiving federal funding.  
   (i) Nothing in this act may be construed to prevent  

   (k) This section does not prohibit  a school district, at its
discretion, from conducting an independent review pursuant to
subdivision (c) of Section 64001 as that section read on January 1,
2001.    subsequent legislation that will conform to the
decision and order of the Public Utilities Commission adopting cost
responsibility surcharge mechanisms for municipal departing load,
provided that the decision and order will not result in cost shifting
to bundled service customers of an electrical corporation for
recoverable costs reasonably incurred on behalf of departing
municipal load.
  SEC. 2.  Section 80110 of the Water Code is amended to read:
   80110.  (a) The department shall retain title to all power sold by
it to the retail end-use customers.  The department shall be
entitled to recover, as a revenue requirement, amounts and at the
times necessary to enable it to comply with Section 80134, and shall
advise the commission as the department determines to be appropriate.
  Those revenue requirements may also include any advances made to
the department hereunder or hereafter for purposes of this division,
or from the Department of Water Resources Electric Power Fund, and
General Fund moneys expended by the department pursuant to the
Governor's State of Emergency Proclamation, dated January 17, 2001.
For purposes of this division and except as otherwise provided in
this section, the commission's authority as set forth in Section 451
of the Public Utilities Code shall apply, except any just and
reasonable review under Section 451 shall be conducted and determined
by the department.  The commission may enter into an agreement with
the department with respect to charges under Section 451 for purposes
of this division, and that agreement shall have the force and effect
of a financing order adopted in accordance with Article 5.5
(commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of
the Public Utilities Code, as determined by the commission.  In no
case shall the commission increase the electricity charges in effect
on February 1, 2001, for residential customers for existing baseline
quantities or usage by those customers of up to 130 percent of
existing baseline quantities, until the department has recovered the
costs of power it has procured for the electrical corporation's
retail end-use customers as provided in this division.
   (b) The commission shall reinstate the right of retail end-use
customers with a load requirement of 500 kilowatts or more to acquire
service from other electric service providers pursuant to Article 6
(commencing with Section 360) of Chapter 2.3 of Part 1 of Division 1
of the Public Utilities Code, once each of the following conditions
are met:
   (1) The commission has established a cost responsibility surcharge
for customers that opt for direct transactions.  Each retail end-use
customer that has purchased power from an electrical corporation on
or after February 1, 2001, shall bear a fair share of the department'
s electricity purchase costs that are recoverable from electrical
corporation customers in commission-approved rates including costs
described in subdivisions (d), (e), (f), and (g) of Section 366.2.
   (2) The State of California has issued revenue bonds pursuant to
Chapter 2.5 (commencing with Section 80130).
   (3) The electrical corporations are procuring electricity under
procurement plans pursuant to Section 454.5 of the Public Utilities
Code.
   (4) The commission has resolved all issues necessary to reinstate
direct transactions in the direct access phase of commission
Rulemaking 02-01-011.  This subdivision does not require update
proceedings on the direct access cost responsibility surcharge to be
considered a condition of reinstating the right of retail end-use
customers to acquire electricity from electric service providers.
   (5) The commission has adopted rules for the treatment of direct
access customers who voluntarily or involuntarily return to
electrical corporation bundled service.  The rules adopted by the
commission shall ensure that electric corporation customers receiving
bundled service are indifferent to cost shifting caused by direct
access customers returning to bundled service.
   (c) Customers receiving service from electric service providers on
January 1, 2004, shall continue to have the right to obtain
electricity from electric service providers, and any customer exempt
from a direct access cost responsibility surcharge on that date,
shall remain exempt, unless and until that time when, the customer
returns to bundled utility service and thereafter obtains service
from an electric service provider.
   (d) Retail end-use customers under single ownership may aggregate
their load served by multiple meters, to meet the 500 kilowatt load
requirement of subdivision (b).  The commission shall design a
regulatory framework to implement permissible customer aggregation
pursuant to this subdivision by June 23, 2004.
   (e) The department shall have the same rights with respect to the
payment by retail end-use customers for power sold by the department
as do providers of power to those customers.
   (f) The commission, in considering the procurement plan of an
electrical corporation, shall set the amount of direct access
permitted to minimize the potential that the electrical corporation
will enter into commitments that the subsequent exercise of direct
access will render unnecessary or excessive.
   (g) The commission shall adopt rules it determines to be necessary
to implement the reinstatement of direct access pursuant to this
section, including any notice requirements imposed as a condition of
direct access, and provisions to ensure the prompt recovery by an
electrical corporation of costs it incurs to reinstate and administer
direct access.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district because in that regard this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.