Amended in Assembly June 12, 2013

Senate BillNo. 91


Introduced by Committee on Budget and Fiscal Review

January 10, 2013


An actbegin delete relating to the Budget Act of 2013.end deletebegin insert to amend Sections 1622, 14002, 14501, 17582, 33127, 35035, 35735.1, 37700, 37710.3, 37710.5, 41020, 41303, 41544, 42127, 42238.15, 42280, 42281, 42282, 42283, 42284, 42285, 42285.5, 42286, 42287, 42289, 42289.1, 42289.2, 42289.3, 42289.4, 42289.5, 42800, 46200, 46201, 46201.2, 46202, 47604.32, 47604.33, 47604.5, 47605, 47605.6, 47613, 47631, 47632, 47635, 47636, 47660, 47663, 48310, 48359.5, 49085, 49536, 52052, 52052.1, 52052.5, 52055.750, 56365, 56366.1, 56836.21, and 56836.24 of, to amend and repeal Sections 42238, 42238.1, 42238.2, and 42238.5 of, to add Sections 35736.5, 42238.01, 42238.02, 42238.025, 42238.03, 42238.04, 42238.05, 42238.051, 42238.052, 42238.053, 42238.06, 42238.07, 46207, 46208, 47606.5, and 47607.3 to, to add Article 4.5 (commencing with Section 52060) to Chapter 6.1 of Part 28 of Division 4 of Title 2 of, to add Chapter 12.5 (commencing with Section 2574) to Part 2 of Division 1 of Title 1 of, to repeal Sections 14002.3, 17583, 17584, 17584.1, 17584.2, 17585, 17587, 35735.2, 42282.1, 42283.1, 42283.2, 42285.1, 42285.4, 42605, 42606, 46201.3, 46204, 47612.7, 47632.5, 47664, 52051, and 52052.2 of, and to repeal Article 3 (commencing with Section 52053), Article 3.5 (commencing with Section 52055.600), and Article 4 (commencing with Section 52056) of Chapter 6.1 of Part 28 of Division 4 of Title 2 of, the Education Code, to amend Sections 7906 and 50286 of the Government Code, to amend Sections 33492.78, 33607.5, and 33684 of the Health and Safety Code, and to amend Sections 95 and 196.4 of the Revenue and Taxation Code, relating to school finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 91, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2013. end deletebegin insertSchool finance.end insert

begin insert

(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 provides for the provision of instruction at the public elementary and secondary schools maintained by these local educational agencies. Existing law establishes a public school financing system that requires funding for county superintendents of schools and school districts to be calculated pursuant to a revenue limit, as specified, and requires funding for charter schools to be calculated pursuant to a general-purpose entitlement, except as provided, and requires the revenue limit and general-purpose entitlement to be composed of, among other things, state aid and certain local revenues. Existing law also establishes various categorical education programs under which funding is provided for specific educational purposes, including, among many other programs, programs for home-to-school transportation, adult education, teacher training, and class size reduction.

end insert
begin insert

This bill would revise and recast the provisions related to the public financing system by requiring state funding for county superintendents of schools and school districts, and charter schools that previously received a general-purpose entitlement, to be calculated pursuant to a local control funding formula, as specified. The bill would authorize local educational agencies to expend, for any local educational purpose, the funds previously required to be spent for specified categorical education programs, including, among others, programs for teacher training and class size reduction.

end insert
begin insert

This bill would also change the funding calculations for necessary small schools and make other changes related to shifting financial responsibilities and school accountability, and would make other changes to the law relating to elementary and secondary education.

end insert
begin insert

(2) Existing law requires a county board of education, a governing board of a school district, and a governing body of a charter school, to annually adopt a budget, as specified.

end insert
begin insert

This bill would require 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 the annual budget and contains certain elements and that, among other things, was developed in consultation with teachers, principals, administrators, other school personnel, parents, and pupils. The bill would require a charter for a charter school to include many of the local control and accountability plan elements and would require the charter school to annually update its plan related to those elements. By requiring county boards of education and school districts to annually adopt or revise a local control and accountability plan and provide additional services, the bill would impose a state-mandated local program.

end insert
begin insert

(3) This bill would appropriate $2,099,161,000 with $2,000,000 being apportioned to the Governor’s Office of Planning and Research for purposes of developing regulations, templates, and evaluation rubrics, as specified, and the remaining funds being apportioned to the Superintendent of Public Instruction for purposes of allocating those funds to county superintendents of schools, school districts, and charter schools pursuant to the local control funding formula.

end insert
begin insert

(4) This bill would make conforming changes, correct cross-references, and make other nonsubstantive changes.

end insert
begin insert

(5) 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.

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

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

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1622 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

1622.  

(a) On or before July 1 of each fiscal year, the county
4board of education shall adopt an annual budget for the budget
5year and shall filebegin delete thatend deletebegin insert theend insert budget with the Superintendentbegin delete of Public
6Instructionend delete
, the county board of supervisors, and the county auditor.
7The budget, and supporting data, shall be maintained and made
8available for public review. The budget shall indicate the date,
9time, and location at which the county board of education held the
10public hearing required under Section 1620.begin insert For the 2014-15 fiscal
11year and each fiscal year thereafter, the county board of education
12shall not adopt a budget before the county board of education
13adopts a local control and accountability plan or approves an
14update to an existing local control and accountability plan if an
15existing local control and accountability plan or update to a local
16control and accountability plan is not effective during the budget
17year. The county board of education shall not adopt a budget that
18does not include the expenditures identified in the local control
19and accountability plan and any annual update to the local control
20and accountability plan that will be effective in the subsequent
21fiscal year.end insert

22(b) begin insert(1)end insertbegin insertend insertThe Superintendentbegin delete of Public Instructionend delete shall examine
23the budget to determinebegin delete whetherend deletebegin insert ifend insert itbegin delete (1)end deletebegin insert (A)end insert complies with the
24standards and criteria adopted by thebegin delete State Board of Educationend delete
25begin insert state boardend insert pursuant to Section 33127 for application to final local
26educational agency budgets,begin delete (2)end deletebegin insert (B)end insert allows the county office of
27education to meet its financial obligations during the fiscal year,
28andbegin delete (3)end deletebegin insert (C)end insert is consistent with a financial plan that will enable the
29county office of education to satisfy its multiyear financial
30commitments. In addition, the Superintendent shall identify any
31technical corrections to the budget that must be made. On or before
32August 15, the Superintendentbegin delete of Public Instructionend delete shall approve
33or disapprove the budget and, in the event of a disapproval, transmit
34to the county office of education in writing his or her
35recommendations regarding revision of the budget and the reasons
36for those recommendations.begin delete Forend delete

37begin insert(2)end insertbegin insertend insertbegin insertForend insert the 2011-12 fiscal year, notwithstanding any of the
38standards and criteria adopted by the state board pursuant to Section
P5    133127, the Superintendent, as a condition on approval of a county
2office of education budget, shall not require a county office of
3education to project a lower level of revenue per unit of average
4daily attendance than it received in the 2010-11 fiscal year nor
5require the county superintendent to certify in writing whether or
6not the county office of education is able to meet its financial
7obligations for the two subsequent fiscal years.

begin insert

8(3) For the 2014-15 fiscal year and each fiscal year thereafter,
9the Superintendent shall disapprove a budget if any of the following
10occur:

end insert
begin insert

11(A) The Superintendent has not approved a local control and
12accountability plan or an annual update to the local control and
13accountability plan filed by a county superintendent of schools
14pursuant to Section 52067.

end insert
begin insert

15(B) The Superintendent determines that the budget does not
16include the expenditures necessary to implement the local control
17and accountability plan or an annual update to the local control
18and accountability plan that is effective for that budget year.

end insert

19(c) On or before September 8, the county board of education
20shall revise the county office of education budget to reflect changes
21in projected income or expenditures subsequent to July 1, and to
22include any response to the recommendations of the Superintendent
23begin delete of Public Instructionend delete, shall adopt the revised budget, and shall file
24the revised budget with the Superintendentbegin delete of Public Instructionend delete,
25the county board of supervisors, and the county auditor.begin delete Prior toend delete
26begin insert Beforeend insert revising the budget, the county board of education shall
27hold a public hearing regarding the proposed revisions, which shall
28be made available for public inspection not less than three working
29daysbegin delete prior toend deletebegin insert beforeend insert the hearing. The agenda for that hearing shall
30be posted at least 72 hoursbegin delete prior toend deletebegin insert beforeend insert the public hearing and
31shall include the location where the budget will be available for
32public inspection. The revised budget, and supporting data, shall
33be maintained and made available for public review.

34(d) The Superintendentbegin delete of Public Instructionend delete shall examine the
35revised budget to determinebegin delete whetherend deletebegin insert ifend insert it complies with the
36standards and criteria adopted by thebegin delete State Board of Educationend delete
37begin insert state boardend insert pursuant to Section 33127 for application to final local
38educational agency budgets and, no later than October 8, shall
39approve or disapprove the revised budget.begin insert For the 2014-15 fiscal
40year and each fiscal year thereafter, the Superintendent shall
P6    1disapprove a revised budget if the Superintendent determines that
2the revised budget does not include the expenditures necessary to
3implement the local control and accountability or an annual update
4to the local control and accountability plan approved by the
5Superintendent pursuant to Section 52067.end insert
If the Superintendent
6begin delete of Public Instructionend delete disapproves the budget, he or she shall call
7for the formation of a budget review committee pursuant to Section
81623. For the 2011-12 fiscal year, notwithstanding any of the
9standards and criteria adopted by the state board pursuant to Section
1033127, the Superintendent, as a condition on approval of a county
11office of education budget, shall not require a county office of
12education to project a lower level of revenue per unit of average
13daily attendance than it received in the 2010-11 fiscal year nor
14require the county superintendent to certify in writing whether or
15not the county office of education is able to meet its financial
16obligations for the two subsequent fiscal years.

17(e) Notwithstanding any other provision of this section, the
18budget review for a county office of education shall be governed
19by paragraphs (1), (2), and (3) of this subdivision, rather than by
20subdivisions (c) and (d), if the county board of education so elects,
21and notifies the Superintendentbegin delete of Public Instructionend delete in writing of
22that decision, no later than October 31 of the immediately
23preceding calendar year.

24(1) In the event of the disapproval of the budget of a county
25office of education pursuant to subdivision (b), on or before
26September 8, the county superintendent of schools and the county
27board of education shall review the recommendations of the
28Superintendentbegin delete of Public Instructionend delete at a regularly scheduled
29meeting of the county board of education and respond to those
30recommendations. That response shall include the proposed actions
31to be taken, if any, as a result of those recommendations.

32(2) No later than October 8, after receiving the response required
33under paragraph (1), the Superintendentbegin delete of Public Instructionend delete shall
34review that response and either approve or disapprove the budget
35of the county office of education.begin insert For the 2014-15 fiscal year and
36each fiscal year thereafter, the Superintendent shall disapprove a
37budget if the Superintendent determines that the budget adopted
38by the county board of education does not include the expenditures
39necessary to implement the local control and accountability plan
40or an annual update to the local control and accountability plan
P7    1approved by the Superintendent pursuant to Section 52067.end insert
If the
2Superintendentbegin delete of Public Instructionend delete disapproves the budget, he
3or she shall call for the formation of a budget review committee
4pursuant to Section 1623.

5(3) Not later than 45 days after the Governor signs the annual
6Budget Act, the county office of education shall make available
7for public review any revisions in revenues and expenditures that
8it has made to its budget to reflect the funding made available by
9that Budget Act.

10begin insert

begin insertSEC. 2.end insert  

end insert

begin insertChapter 12.5 (commencing with Section 2574) is added
11to Part 2 of Division 1 of Title 1 of the end insert
begin insertEducation Codeend insertbegin insert, to read:end insert

begin insert

12 

13Chapter  begin insert12.5.end insert County Local Control Funding Formula
14

 

15

begin insert2574.end insert  

For the 2013-14 fiscal year and for each fiscal year
16thereafter, the Superintendent annually shall calculate a county
17local control funding formula for each county superintendent of
18schools as follows:

19(a) Compute a county office of education operations grant equal
20to the sum of each of the following amounts:

21(1) Six hundred fifty-five thousand nine hundred twenty dollars
22($655,920).

23(2) One hundred nine thousand three hundred twenty dollars
24($109,320) multiplied by the number of school districts for which
25the county superintendent of schools has jurisdiction pursuant to
26Section 1253.

27(3) (A) Seventy dollars ($70) multiplied by the number of units
28of countywide average daily attendance, up to a maximum of
2930,000 units. For purposes of this section, countywide average
30daily attendance means the aggregate number of annual units of
31average daily attendance within the county attributable to all
32school districts for which the county superintendent of schools has
33jurisdiction pursuant to Section 1253, charter schools physically
34located within the county, and the schools operated by the county
35superintendent of schools.

36(B) Sixty dollars ($60) multiplied by the number of units of
37countywide average daily attendance for the portion of countywide
38average daily attendance, if any, above 30,000 units, up to a
39maximum of 60,000 units.

P8    1(C) Fifty dollars ($50) multiplied by the number of units of
2countywide average daily attendance for the portion of countywide
3average daily attendance, if any, above 60,000, up to a maximum
4of 140,000 units.

5(D) Forty dollars ($40) multiplied by the number of units of
6countywide average daily attendance for the portion of countywide
7average daily attendance, if any, above 140,000 units.

8(4) For the 2014-15 fiscal year and each fiscal year thereafter,
9adjust each of the amounts provided in the prior year pursuant to
10paragraphs (1), (2), and (3) by the percentage change in the annual
11average value of the Implicit Price Deflator for State and Local
12Government Purchases of Goods and Services for the United
13States, as published by the United States Department of Commerce
14for the 12-month period ending in the third quarter of the prior
15fiscal year. This percentage change shall be determined using the
16latest data available as of May 10 of the preceding fiscal year
17compared with the annual average value of the same deflator for
18the 12-month period ending in the third quarter of the second
19preceding fiscal year, using the latest data available as of May 10
20of the preceding fiscal year, as reported by the Department of
21Finance.

22(b) Determine the enrollment percentage of unduplicated pupils
23pursuant to the following:

24(1) (A) For the 2013-14 fiscal year, divide the enrollment of
25unduplicated pupils in all schools operated by a county
26superintendent of schools in the 2013-14 fiscal year by the total
27enrollment in those schools in the 2013-14 fiscal year.

28(B) For the 2014-15 fiscal year, divide the sum of the enrollment
29of unduplicated pupils in all schools operated by a county
30superintendent of schools in the 2013-14 and 2014-15 fiscal years
31by the sum of the total enrollment in those schools in the 2013-14
32and 2014-15 fiscal years.

33(C) For the 2015-16 fiscal year and each fiscal year thereafter,
34divide the sum of the enrollment of unduplicated pupils in all
35schools operated by a county superintendent of schools in the
36current fiscal year and the two prior fiscal years by the sum of the
37total enrollment in those schools in the current fiscal year and the
38two prior fiscal years.

39(D) For purposes of determining the enrollment percentage of
40unduplicated pupils pursuant to this subdivision, enrollment in
P9    1schools or classes established pursuant to Article 2.5 (commencing
2with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
32 and the enrollment of pupils other than the pupils identified in
4clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph
5(4) of subdivision (c), shall be excluded from the calculation of
6the enrollment percentage of unduplicated pupils.

7(2) For purposes of this section, an “unduplicated pupil” is a
8pupil who is classified as an English learner, eligible to receive a
9free or reduced-price meal, or a foster youth. For purposes of this
10section, the definitions in Section 42238.01 of an English learner,
11a pupil eligible to receive a free or reduced-price meal, and foster
12youth shall apply. A pupil shall be counted only once for purposes
13of this section if any of the following apply:

14(A) The pupil is classified as an English learner and is eligible
15for a free or reduced-price meal.

16(B) The pupil is classified as an English learner and is a foster
17youth.

18(C) The pupil is eligible for a free or reduced-price meal and
19is classified as a foster youth.

20(D) The pupil is classified as an English learner, is eligible for
21a free or reduced-price meal, and is a foster youth.

22(3) (A) Commencing with the 2013-14 fiscal year, a county
23superintendent of schools annually shall report the enrollment of
24unduplicated pupils, pupils classified as English learners, pupils
25eligible for free and reduced-price meals, and foster youth in
26schools operated by the county superintendent of schools to the
27Superintendent using the California Longitudinal Pupil
28Achievement Data System.

29(B) The Superintendent shall make the calculations pursuant
30to this section using the data submitted through the California
31Longitudinal Pupil Achievement Data System.

32(C) The Controller shall include instructions, as appropriate,
33in the audit guide required by subdivision (a) of Section 14502.1
34for determining if the data reported by a county superintendent of
35schools using the California Longitudinal Pupil Achievement Data
36System is consistent with pupil data records maintained by the
37county office of education.

38(c) Compute an alternative education grant equal to the sum of
39the following:

P10   1(1) (A) For the 2013-14 fiscal year, a base grant equal to the
22012-13 per pupil undeficited statewide average juvenile court
3school base revenue limit calculated pursuant to Article 3
4(commencing with Section 2550), as that article read on January
51, 2013.

6(B) Commencing with the 2013-14 fiscal year, the per pupil
7base grant shall be adjusted by the percentage change in the
8annual average value of the Implicit Price Deflator for State and
9Local Government Purchases of Goods and Services for the United
10States, as published by the United States Department of Commerce
11for the 12-month period ending in the third quarter of the prior
12fiscal year. This percentage change shall be determined using the
13latest data available as of May 10 of the preceding fiscal year
14compared with the annual average value of the same deflator for
15the 12-month period ending in the third quarter of the second
16preceding fiscal year, using the latest data available as of May 10
17of the preceding fiscal year, as reported by the Department of
18Finance.

19(2) A supplemental grant equal to 35 percent of the base grant
20described in paragraph (1) multiplied by the enrollment percentage
21calculated in subdivision (b). The supplemental grant shall be
22expended in accordance with the regulations adopted pursuant to
23Section 42238.07.

24(3) (A) A concentration grant equal to 35 percent of the base
25grant described in paragraph (1) multiplied by the greater of either
26of the following:

27(i) The enrollment percentage calculated in subdivision (b) less
2850 percent.

29(ii) Zero.

30(B) The concentration grant shall be expended in accordance
31with the regulations adopted pursuant to Section 42238.07.

32(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
33total number of units of average daily attendance for pupils
34attending schools operated by a county office of education,
35excluding units of average daily attendance for pupils attending
36schools or classes established pursuant to Article 2.5 (commencing
37with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title
382, who are any of the following:

39(i) Probation-referred pursuant to Sections 300, 601, 602, and
40654 of the Welfare and Institutions Code.

P11   1(ii) On probation or parole and not in attendance in a school.

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

4(B) Multiply the number of units of average daily attendance
5for pupils attending schools or classes established pursuant to
6Article 2.5 (commencing with Section 48645) of Chapter 4 of Part
727 of Division 4 of Title 2 by the sum of the base grant calculated
8in paragraph (1), a supplemental grant equal to 35 percent of the
9base grant pursuant to paragraph (1), and a concentration grant
10equal to 17.5 percent of the base grant pursuant to paragraph (1).
11Funds provided for the supplemental and concentration grants
12pursuant to this calculation shall be expended in accordance with
13the regulations adopted pursuant to Section 42238.07.

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

15(d) Add the amount calculated in subdivision (a) to the amount
16calculated in subparagraph (C) of paragraph (4) of subdivision
17(c).

18(e) Add all of the following to the amount calculated in
19subdivision (d):

20(1) The amount of funding a county superintendent of schools
21received for the 2012-13 fiscal year from funds allocated pursuant
22to the Targeted Instructional Improvement Block Grant program,
23as set forth in Article 6 (commencing with Section 41540) of
24Chapter 3.2 of Part 24 of Division 3 of Title 2, as that article read
25on January 1, 2013.

26(2) (A) The amount of funding a county superintendent of
27schools received for the 2012-13 fiscal year from funds allocated
28pursuant to the Home to School Transportation program, as set
29forth in Article 2 (commencing with Section 39820) of Chapter 1
30of Part 23.5 of Division 3 of Title 2, and Article 10 (commencing
31with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title
322, as those articles read on January 1, 2013.

33(B) On or before March 1, 2014, the Legislative Analyst’s Office
34shall submit recommendations to the fiscal committees of both
35houses of the Legislature regarding revisions to the methods of
36funding pupil transportation that address historical funding
37inequities across county offices of education and school districts
38and improve incentives for local educational agencies to provide
39efficient and effective pupil transportation services.

P12   1(f) The funds apportioned pursuant to this section and Section
22575 shall be available to implement the activities required
3pursuant to Article 4.5 (commencing with Section 52060) of
4Chapter 6.1 of Part 28 of Division 4 of Title 2.

5

begin insert2575.end insert  

(a) Commencing with the 2013-14 budget year and for
6each fiscal year thereafter, the Superintendent shall calculate a
7base entitlement for the transition to the county local control
8funding formula for each county office of education based on the
9sum of the amounts computed pursuant to paragraphs (1) to (3),
10inclusive:

11(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
123 (commencing with Section 2550) of Chapter 12, as that article
13read on January 1, 2013, adjusted only for changes in average
14daily attendance claimed by the county superintendent of schools
15for pupils identified in clauses (i), (ii), and (iii) of subparagraph
16(A) of paragraph (4) of subdivision (c) of Section 2574 and for
17pupils attending juvenile court schools. All other average daily
18attendance claimed by the county superintendent of schools and
19any other average daily attendance used for purposes of
20calculating revenue limits pursuant to Article 3 (commencing with
21Section 2550) of Chapter 12, as that article read on January 1,
222013, shall be considered final for purposes of this section as of
23the annual apportionment for the 2012-13 fiscal year, as calculated
24for purposes of the certification required on or before February
2520, 2014, pursuant to Section 41332.

26(2) The sum of both of the following:

27(A) The amount of funding received from appropriations
28contained in Section 2.00 of the Budget Act of 2012, as adjusted
29by Section 12.42, in the following items: 6110-104-0001,
306110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
316110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
326110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
336110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
346110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
356110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
366110-234-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
376110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
386110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
396110-267-0001, 6110-268-0001, and 6360-101-0001, 2012-13
40fiscal year funding for the Class Size Reduction Program pursuant
P13   1to Chapter 6.10 (commencing with Section 52120) of Part 28 of
2Division 4 of Title 2, as it read on January 1, 2013, and 2012-13
3fiscal year funding for pupils enrolled in community day schools
4who are mandatorily expelled pursuant to subdivision (c) of Section
548915.

6(B) The amount of local revenues used to support a regional
7occupational center or program established and maintained by a
8county superintendent of schools pursuant to Section 52301.

9(3) For the 2014-15 fiscal year and for each fiscal year
10thereafter, the sum of the amounts apportioned to the county office
11of education pursuant to subdivision (f) in all prior years.

12(b) The Superintendent shall annually compute a county local
13control funding formula transition adjustment for each county
14superintendent of schools as follows:

15(1) Subtract the amount computed pursuant to subdivision (a)
16from the amount computed pursuant to subdivision (e) of Section
172574. A difference of less than zero shall be deemed to be zero.

18(2) Divide the difference for each county superintendent of
19schools calculated pursuant to paragraph (1) by the total sum of
20the differences for all county superintendents of schools calculated
21pursuant to paragraph (1).

22(3) Multiply the proportion calculated for each county office of
23education pursuant to paragraph (2) by the amount of funding
24specifically appropriated for purposes of subdivision (f). The
25amount calculated shall not exceed the difference for the county
26superintendent of schools calculated pursuant to paragraph (1).

27(c) The Superintendent shall subtract from the amount calculated
28pursuant to subdivision (a) the sum of each of the following:

29(1) Local property tax revenues received pursuant to Section
302573 in the then current fiscal year.

31(2) Any amounts that the county superintendent of schools was
32required to maintain as restricted and not available for expenditure
33in the 1978-79 fiscal year as specified in the second paragraph
34of subdivision (c) of Section 6 of Chapter 292 of the Statutes of
351978, as amended by Chapter 51 of the Statutes of 1979.

36(3) The amount received pursuant to subparagraph (C) of
37paragraph (3) of subdivision (a) of Section 33607.5 of the Health
38and Safety Code that is considered property taxes pursuant to that
39section.

P14   1(4) The amount, if any, received pursuant to Sections 34177,
234179.5, 34179.6, and 34188 of the Health and Safety Code.

3(5) The amount, if any, received pursuant to subparagraph (B)
4of paragraph (3) of subdivision (e) of Section 36 of Article XIII of
5the California Constitution.

6(d) The Superintendent shall subtract from the amount computed
7pursuant to subdivision (e) of Section 2574 the sum of the amounts
8computed pursuant to paragraphs (1) to (5), inclusive, of
9subdivision (c).

10(e) The Superintendent shall annually apportion to each county
11superintendent of schools the amount calculated pursuant to
12subdivision (c) unless the amount computed pursuant to subdivision
13(c) is negative. If the amount computed is negative, except as
14provided in subdivision (f), an amount of property tax of the county
15superintendent of schools equal to the negative amount shall be
16deemed restricted and not available for expenditure during the
17fiscal year. In the following fiscal year, that amount, excluding
18any amount of funds used for purposes of subdivision (f), shall be
19considered restricted local property tax revenue for purposes of
20subdivision (a) of Section 2578. State aid shall not be apportioned
21to the county superintendent of schools pursuant to this subdivision
22if the amount computed pursuant to subdivision (c) is negative.

23(f) (1) The Superintendent shall apportion, from an
24appropriation specifically made for this purpose, the amount
25computed pursuant to subdivision (b), or, if the amount computed
26pursuant to subdivision (c) is negative, the sum of the amounts
27computed pursuant to subdivisions (b) and (c) if the sum if greater
28than zero.

29(2) The Superintendent shall apportion any portion of the
30appropriation made for purposes of paragraph (1) that is not
31apportioned pursuant to paragraph (1) pursuant to the following
32calculation:

33(A) Add the amount calculated pursuant to subdivision (b) to
34the amount computed pursuant to subdivision (a) for a county
35superintendent of schools.

36(B) Subtract the amount computed pursuant to subparagraph
37(A) from the amount computed pursuant to subdivision (e) of
38Section 2574 for the county superintendent of schools.

39(C) Divide the difference for the county superintendent of
40schools computed pursuant to subparagraph (B) by the sum of the
P15   1differences for all county superintendents of schools computed
2pursuant to subparagraph (B).

3(D) Multiply the proportion computed pursuant to subparagraph
4(B) by the unapportioned balance in the appropriation.

5(E) Apportion to each county superintendent of schools the
6amount calculated pursuant to subparagraph (D), or if subdivision
7(c) is negative, apportion the sums of subdivisions (b) and (c) and
8subparagraph (D) if the sum is greater than zero.

9(F) The Superintendent shall repeat the computation made
10pursuant to this paragraph, accounting for any additional amounts
11apportioned after each computation, until the appropriation made
12for purposes of paragraph (1) is fully apportioned.

13(G) The total amount apportioned pursuant to this subdivision
14to a county superintendent of schools shall not exceed the
15difference for the county superintendent of schools calculated
16pursuant to paragraph (1) of subdivision (b).

17(g) (1) For a county superintendent of schools for whom, in the
182013-14 fiscal year, the amount computed pursuant to subdivision
19(c) is less than the amount computed pursuant to subdivision (d),
20in the first fiscal year following the fiscal year in which the sum
21of the apportionments pursuant to subdivisions (e) and (f) is equal
22to the amount calculated pursuant to subdivision (d) of this section,
23the Superintendent shall apportion to the county superintendent
24of schools the amount computed in subdivision (d) in that fiscal
25year and each fiscal year thereafter instead of the amounts
26computed pursuant to subdivisions (e) and (f).

27(2) For a county superintendent of schools for whom, in the
282013-14 fiscal year, the amount computed pursuant to subdivision
29(c) is greater than the amount computed pursuant to subdivision
30(d), in the first fiscal year in which the amount computed pursuant
31to subdivision (c) would be less than the amount computed pursuant
32to subdivision (d), the Superintendent shall apportion to the county
33superintendent of schools the amount computed in subdivision (d)
34in that fiscal year and each fiscal year thereafter instead of the
35amounts computed pursuant to subdivisions (e) and (f).

36(3) In each fiscal year, the Superintendent shall determine the
37percentage of county superintendents of schools that are
38apportioned funding that is less than the amount computed
39pursuant to subdivision (d), as of the second principal
40apportionment of the fiscal year. If the percentage is less than 10
P16   1percent, the Superintendent shall apportion to those county
2superintendents of schools funding equal to the amount computed
3in subdivision (d) in that fiscal year and for each fiscal year
4thereafter instead of the amounts calculated pursuant to
5subdivisions (e) and (f).

6(4) Commencing with the first fiscal year after the
7apportionments in paragraph (3) are made, the adjustments in
8paragraph (4) of subdivision (a) of Section 2574 and subparagraph
9(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
10made only if an appropriation for those purposes is included in
11the annual Budget Act.

12(5) If the calculation pursuant to subdivision (d) is negative and
13the Superintendent apportions to a county superintendent of schools
14the amount computed pursuant to subdivision (d) pursuant to
15paragraph (1), (2), or (3), an amount of property tax of the county
16superintendent of schools equal to the negative amount shall be
17deemed restricted and not available for expenditure during that
18fiscal year. In the following fiscal year the restricted amount shall
19be considered restricted local property tax revenue for purposes
20of subdivision (a) of Section 2578.

21(h) Commencing with the 2013-14 fiscal year, the
22Superintendent shall apportion to a county superintendent of
23schools an amount of state aid, including any amount apportioned
24pursuant to subdivisions (f) and (g), that is no less than the amount
25calculated in subparagraph (A) of paragraph (2) of subdivision
26(a).

27(i) For the 2013-14 and 2014-15 fiscal years only, a county
28superintendent of schools who, in the 2012-13 fiscal year, from
29any of the funding sources identified in paragraph (1) or (2) of
30subdivision (a), received funds on behalf of, or provided funds to,
31a regional occupational center or program joint powers agency
32established in accordance with Article 1 (commencing with Section
336500) of Chapter 5 of Division 7 of Title 1 of the Government Code
34for purposes of providing instruction to pupils enrolled in grades
359 to 12, inclusive, shall not redirect that funding for another
36purpose unless otherwise authorized in law or pursuant to an
37agreement between the regional occupational center or program
38joint powers agency and the contracting county superintendent of
39schools.

P17   1(j) For the 2013-14 and 2014-15 fiscal years only, a county
2superintendent of schools who, in the 2012-13 fiscal year, from
3any of the funding sources identified in paragraph (1) or (2) of
4subdivision (a), received funds on behalf of, or provided funds to,
5a home-to-school transportation joint powers agency established
6in accordance with Article 1 (commencing with Section 6500) of
7Chapter 5 of Division 7 of Title 1 of the Government Code for
8purposes of providing pupil transportation shall not redirect that
9funding for another purpose unless otherwise authorized in law
10or pursuant to an agreement between the home-to-school
11transportation joint powers agency and the contracting county
12superintendent of schools.

13(k) (1) In addition to subdivision (j), of the funds a county
14superintendent of schools receives for home-to-school
15transportation programs pursuant to Article 2 (commencing with
16Section 39820) of Chapter 1 of Part 23.5 of Division 3 of Title 2
17and Article 10 (commencing with Section 41850) of Chapter 5 of
18Part 24 of Division 3 of Title 2, the county superintendent of
19schools shall expend no less for those program than the amount
20of funds the county superintendent of schools expended for
21home-to-school transportation in the 2012-13 fiscal year.

22(2) For the 2013-14 and 2014-15 fiscal years only, of the funds
23a county superintendent of schools receives for purposes of
24regional occupational centers or programs, or adult education,
25the county superintendent of schools shall expend no less for each
26of those programs than the amount of funds the county
27superintendent of schools expended for purposes of regional
28occupational centers or programs, or adult education, respectively,
29in the 2012-13 fiscal year.

30

begin insert2576.end insert  

(a) If a county superintendent of schools enrolls in a
31school operated by the county superintendent of schools a pupil
32not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
33of paragraph (4) of subdivision (c) of Section 2574, any attendance
34generated by that pupil shall be credited to the school district of
35residence. Enrollment of these pupils shall be transferred to the
36school district of residence for purposes of calculating the
37percentage of unduplicated pupils pursuant to Section 42238.02.

38(b) For purposes of this section, the school district of residence
39for a homeless child, as defined in Section 1981.2, enrolled in a
40school operated by a county superintendent of schools shall be
P18   1deemed to be the school district that last provided educational
2services to that child or, if it is not possible to determine that school
3district, the largest school district in the county.

4

begin insert2577.end insert  

Notwithstanding any other law, revenue limit funding
5for county superintendents of schools for the 2012-13 fiscal year
6and prior fiscal years shall continue to be adjusted pursuant to
7Article 3 (commencing with Section 2550) of Chapter 12, as that
8section read on January 1, 2013.

9

begin insert2578.end insert  

(a) Every fiscal year the Superintendent shall determine
10the amount of funds that will be restricted for each county
11superintendent of schools pursuant to subdivisions (e) and (g) of
12Section 2575, as of June 30 of the prior fiscal year.

13(b) The auditor-controller of each county shall distribute the
14amounts determined in subdivision (a) to the Supplemental Revenue
15Augmentation Fund created within the county pursuant to Section
16100.06 of the Revenue and Taxation Code. The amount of funds
17required to be transferred by this subdivision shall be transferred
18annually in two equal shares with the first share transferred on
19or before January 15 of each year and the second share transferred
20after January 15 and on or before May 1 of each year.

21(c) The funds transferred to the Supplemental Revenue
22Augmentation Fund for purposes of this section shall be transferred
23by the county office of education to the auditor-controller of the
24county and shall be exclusively used to offset state costs of
25providing trial court services and costs, until the funds are
26exhausted.

27

begin insert2579.end insert  

Commencing on July 1, 2013, all of the following shall
28apply:

29(a) All references to Section 2558 shall instead refer to Section
302575.

31(b) Unless the context otherwise requires, all references to the
32revenue limit of a county office of education or county
33superintendent of schools shall instead refer to the county local
34control funding formula.

end insert
35begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 14002 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
36read:end insert

begin delete
37

14002.  

(a) The Controller shall during each fiscal year
38commencing with the 1980-81 fiscal year, transfer from the
39General Fund of the state to that portion of the State School Fund
40restricted for elementary and high school purposes, hereinafter
P19   1called Section A of the State School Fund such sums, in addition
2to the sums accruing from other sources, as shall provide in Section
3A of the State School Fund for apportionment during the fiscal
4year a total amount per pupil in average daily attendance during
5the preceding fiscal year credited to all elementary, high, and
6unified school districts and to all county superintendents of schools
7in the state, as certified by the Superintendent of Public Instruction,
8of one hundred eighty dollars ($180).

9(b) The Controller shall also transfer, as needed during each
10fiscal year commencing with the 1980-81 fiscal year, such
11additional amounts from the General Fund to Section A of the
12State School Fund as are certified from time to time by the
13Superintendent of Public Instruction to be necessary to meet actual
14computed apportionments from Section A of the State School Fund
15for the purposes set forth in Section 41301; provided that the total
16of such additional amounts transferred in a fiscal year shall not
17exceed, except pursuant to subdivision (c) of this section, one
18thousand two hundred sixty-eight dollars ($1,268) for the 1980-81
19fiscal year and fiscal years thereafter, per pupil in average daily
20attendance during the preceding fiscal year credited to all
21elementary, high, and unified school districts and to all county
22superintendents of schools in the state, as certified by the
23Superintendent of Public Instruction.

24(c) In addition to the amounts authorized to be transferred to
25Section A of the State School Fund under subdivisions (a) and (b),
26the Controller shall transfer from the General Fund to Section A
27of the State School Fund during the fiscal year, upon certification
28of the Superintendent of Public Instruction, if necessary to meet
29actual computed apportionments for the fiscal year for the purposes
30set forth in Sections 41300 and 41301, an amount not to exceed
31the lesser of: (1) 1 percent of the total apportionment from Section
32A of the State School Fund in the preceding fiscal year for the
33purposes set forth in Sections 41300 and 41301, or (2) the net
34amount, if any, by which the total amounts authorized to be
35transferred from the General Fund to Section A of the State School
36Fund under subdivisions (a) and (b) in prior fiscal years have
37exceeded the total amounts actually apportioned in prior fiscal
38years for the purposes set forth in Sections 41300 and 41301.

39(d) The Controller shall also transfer to Section A of the State
40School Fund any additional amounts appropriated thereto by the
P20   1Legislature in augmentation of any of the amounts for any of the
2purposes set forth in Sections 41300 and 41301 and such additional
3amounts shall be allowed and apportioned by the Superintendent
4of Public Instruction and warrants therefor drawn by the Controller
5in the manner provided in Sections 41050, 46304, and 84503 and
6in this article, Article 2 (commencing with Section 14040), Article
73 (commencing with Section 41330) of Chapter 3, and Article 1
8(commencing with Section 41600) of Chapter 4 of Part 24.

9(e) The amounts transferred under subdivisions (a) and (b) of
10this section shall be cumulatively increased by the following
11amounts:

12(1) In the 1981-82 fiscal year, by 7 percent.

13(2) In the 1982-83 fiscal year and each fiscal year thereafter,
14by 6 percent.

15(f) This section shall become operative on July 1, 2002.

end delete
16begin insert

begin insert14002.end insert  

end insert
begin insert

Notwithstanding any other law, upon certification of
17the Superintendent, the Controller shall transfer from the General
18Fund to Section A of the State School Fund during each fiscal year
19the amount of moneys required to meet the amounts apportioned
20pursuant to subdivisions (e) and (g) of Section 2575, and Sections
212577, 42238.02, as implemented by Section 42238.03, and
2242238.04 for each fiscal year. If all school districts and charter
23schools are funded pursuant to the provisions of Section 42238.02
24and all county superintendents of schools are funded at or above
25the calculation made pursuant to subdivision (d) of Section 2575,
26appropriations for local control funding formula cost-of-living
27adjustments pursuant to Section 2574 and paragraph (2) of
28subdivision (d) of Section 42238.02 shall be subject to an
29appropriation in the annual Budget Act.

end insert
30begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 14002.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
31

14002.3.  

Notwithstanding any other law, for purposes of
32Sections 14002, 14004, and 41301, for the 2000-01 fiscal year
33and each fiscal year thereafter, the Superintendent of Public
34Instruction shall certify to the Controller amounts that do not
35exceed the amounts needed to fund the revenue limits of school
36districts, as determined pursuant to Section 42238, the revenue
37limits of county superintendents of schools, as determined pursuant
38to Section 2558, warrants issued pursuant to Section 41329.57,
39and the revenue limit portion of charter school operational funding,
40as determined pursuant to Section 47633.

end delete
P21   1begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 14501 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
2read:end insert

3

14501.  

(a) As used in this chapter, “financial and compliance
4audit” shall be consistent with the definition provided in the
5“Standards for Audits of Governmental Organizations, Programs,
6Activities, and Functions” promulgated by the Comptroller General
7of the United States. Financial and compliance audits conducted
8under this chapter shall fulfill federal single audit requirements.

9(b) As used in this chapter, “compliance audit” means an audit
10that ascertains and verifies whether or not funds provided through
11apportionment, contract, or grant, either federal or state, have been
12properly disbursed and expended as required by law or regulation
13or both and includes the verification of each of the following:

begin insert

14(1) Expenditure of funds in accordance with the local control
15and accountability plan adopted pursuant to Article 4.5
16(commencing with Section 52060) of Chapter 6.1 of Part 28 of
17Division 4 of Title 2.

end insert
begin delete

18(1)

end delete

19begin insert(2)end insert The reporting requirements for the sufficiency of textbooks
20or instructional materials, or both, as defined in Section 60119.

begin delete

21(2)

end delete

22begin insert(3)end insert Teacher misassignments pursuant to Section 44258.9.

begin delete

23(3)

end delete

24begin insert(4)end insert The accuracy of information reported on the School
25Accountability Report Card required by Section 33126. The
26requirements set forth in paragraphsbegin delete (1) andend delete (2)begin insert and (3)end insert and this
27paragraph shall be added to the audit guide requirements pursuant
28to subdivision (b) of Section 14502.1.

29begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 17582 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
30read:end insert

31

17582.  

(a) The governing board ofbegin delete eachend deletebegin insert aend insert school district may
32establish a restricted fund to be known as the “district deferred
33maintenance fund” for thebegin delete purposeend deletebegin insert purposesend insert of major repair or
34replacement of plumbing, heating, air conditioning, electrical,
35roofing, and floor systems, the exterior and interior painting of
36school buildings, the inspection, sampling, and analysis of building
37materials to determine the presence of asbestos-containing
38materials, the encapsulation or removal of asbestos-containing
39materials, the inspection, identification, sampling, and analysis of
40building materials to determine the presence of lead-containing
P22   1materials, the control, management, and removal of lead-containing
2materials, and any other items of maintenance approved by the
3State Allocation Board. Funds deposited in the district deferred
4maintenance fund may be received from any sourcebegin delete whatsoever,end delete
5 and shall be accounted for separately from all other funds and
6accounts and retained in the district deferred maintenance fund for
7purposes of this section. The term “school building” as used in
8this article includes a facility that a county office of education is
9authorized to use pursuant to Article 3 (commencing with Section
1017280) of Chapter 3.

11(b) Funds deposited in the district deferred maintenance fund
12shall only be expended for maintenance purposes as provided
13pursuant to subdivision (a).

14(c) The governing board of each school district shall have
15complete control over the funds and earnings of funds once
16deposited in the district deferred maintenancebegin delete fund, provided that
17no funds deposited in the district deferred maintenance fund
18pursuant to subdivision (a) or (b) of Section 17584 may be
19expended by the governing board for any purpose except those
20specified in subdivision (a) of this sectionend delete
begin insert fundend insert.

21begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 17583 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
22

17583.  

Notwithstanding Section 17582, whenever the state
23funds provided pursuant to Sections 17584 and 17585 are
24insufficient to fully match the local funds deposited in the deferred
25maintenance fund, the governing board of each school district may
26transfer the excess local funds deposited in that fund to any other
27expenditure classifications in other funds of the district. A
28resolution providing for the transfer shall be approved by a
29two-thirds vote of the governing board members and filed with
30the county superintendent of schools and the county auditor.

end delete
31begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 17584 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
32

17584.  

(a) Each fiscal year, the State Allocation Board shall
33apportion, from the State School Deferred Maintenance Fund, to
34school districts an amount equal to one dollar ($1) for each one
35dollar ($1) of local funds up to a maximum of12 percent of the
36district’s second prior fiscal year revenue limit average daily
37attendance multiplied by the average, per unit of second prior fiscal
38year average daily attendance, of the total expenditures and ending
39fund balances of the total general funds and adult education funds
40for districts of similar size and type, as defined in subdivision (b)
P23   1of Section 42238.4, for the second prior fiscal year, exclusive of
2any amounts expended for capital outlay, debt service, or revenues
3that are passed through to other local education agencies, to the
4extent of funds available.

5(b) In order to be eligible to receive state aid pursuant to
6subdivision (a), no district shall be required to budget from local
7district funds an amount greater than 12 percent of the district’s
8second prior fiscal year revenue limit average daily attendance,
9multiplied by the average, per unit of second prior fiscal year
10average daily attendance, of the total expenditures and ending fund
11balances of the total general funds and adult education funds for
12districts of similar size and type, as defined in subdivision (b) of
13Section 42238.4 for the second prior fiscal year, exclusive of any
14amounts expended for capital outlay, debt service, or revenues that
15are passed through to other local educational agencies.

end delete
16begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 17584.1 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
17by Section 18 of Chapter 7 of the Statutes of 2011, is repealed.end insert

begin delete
18

17584.1.  

(a) The governing board of a school district shall
19discuss proposals and plans for expenditure of funds for the
20deferred maintenance of school district facilities at a regularly
21scheduled public hearing.

22(b) The purposes of this section are to inform the public
23regarding the local decisionmaking process relating to the deferred
24maintenance of school facilities and to provide a foundation for
25local accountability in that regard.

26(c) This section shall become inoperative on July 1, 2015, and,
27as of January 1, 2016, is repealed, unless a later enacted statute,
28that becomes operative on or before January 1, 2016, deletes or
29extends the dates on which it becomes inoperative and is repealed.

end delete
30begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 17584.1 of the end insertbegin insertEducation Codeend insertbegin insert, as amended
31by Section 19 of Chapter 7 of the Statutes of 2011, is repealed.end insert

begin delete
32

17584.1.  

(a) The governing board of a school district shall
33discuss proposals and plans for expenditure of funds for the
34deferred maintenance of school district facilities at a regularly
35scheduled public hearing.

36(b) In any fiscal year that the school district does not set aside
370.5 percent of its current-year revenue limit average daily
38attendance for deferred maintenance, the governing board of a
39school district shall submit a report to the Legislature by March 1
P24   1of that year, with copies to the Superintendent, the state board, the
2Department of Finance, and the State Allocation Board.

3(c) The report required pursuant to subdivision (b) shall include
4all of the following:

5(1) A schedule of the complete school facilities deferred
6maintenance needs of the school district for the current fiscal year,
7including a schedule of costs per schoolsite and total costs.

8(2) A detailed description of the school district’s spending
9priorities for the current fiscal year and an explanation of why
10those priorities, or any other considerations, have prevented the
11school district from setting aside sufficient local funds so as to
12permit it to fully fund its deferred maintenance program and, if
13eligible, to participate in the state deferred maintenance funding
14program as set forth in Section 17584.

15(3) An explanation of the manner in which the governing board
16of a school district plans to meet its current-year facilities deferred
17maintenance needs without setting aside the funds set forth in
18Section 17584.

19(d) Copies of the report shall be made available at each
20schoolsite within the school district, and shall be provided to the
21public upon request.

22(e) The purposes of this section are to inform the public
23regarding the local decisionmaking process relating to the deferred
24maintenance of school facilities and to provide a foundation for
25local accountability in that regard.

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

end delete
27begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 17584.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
28

17584.2.  

At the public hearing required pursuant to Section
2917584.1, the governing board of the school district shall also
30address the use of deferred maintenance funds for the inspection,
31identification, sampling, and analysis of building materials to
32determine the presence of lead-containing materials and the control,
33management, and removal of lead-containing materials.

end delete
34begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 17585 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
35

17585.  

(a) School districts may submit applications to the
36State Allocation Board for deferred maintenance funding in
37addition to the amounts specified in Section 17584. In order to be
38eligible for an additional apportionment, a school district shall do
39all of the following:

P25   1(1) Certify that if an additional apportionment is provided, the
2district will have matched the additional apportionment amount
3with an equal amount of district funds that have not been previously
4used as a match for state aid.

5(2) Certify an additional claim of not greater than one-half of
61 percent of the district’s current-year revenue limit average daily
7attendance, multiplied by the average, per unit of average daily
8attendance, of the total general funds and adult education funds
9budgeted by districts of similar size and type, as defined in Section
1042238.4 for the prior fiscal year, excluding any amounts budgeted
11for capital outlay or debt service, but including adult education
12funds.

13(3) Certify that any additional funds will be used to meet
14deferred maintenance identified in the district’s five-year deferred
15maintenance plan.

16(b) The State Allocation Board shall establish rules and
17regulations regarding the formulas used to apportion additional
18funds pursuant to this section.

19(c) It is the intent of the Legislature that state funds for deferred
20maintenance be drawn first from excess bond repayments by school
21districts, revenues pursuant to subdivision (f) of Section 6217 of
22the Public Resources Code, and proceeds from existing general
23obligation bonds.

end delete
24begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 17587 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
25

17587.  

(a) Notwithstanding the limitations of Section 17584,
26the State Allocation Board may each year reserve an amount not
27to exceed 10 percent of the funds transferred from any source to
28the State School Deferred Maintenance Fund for apportionments
29to school districts, in instances of extreme hardship. The
30apportionment shall be in addition to the apportionments made
31pursuant to Section 17584. Not less than one-half of all funds made
32available by this section shall be apportioned to school districts
33that had an average daily attendance, excluding summer session
34attendance, of less than 2,501 during the prior fiscal year.

35An extreme hardship shall exist in a school district if the State
36Allocation Board determines the existence of all of the following:

37(1) That the district has deposited in its deferred maintenance
38fund an amount equal to at least 0.5 percent of the total general
39funds and adult education funds budgeted by the district for the
P26   1fiscal year, exclusive of any amounts budgeted for capital outlay
2or debt service.

3(2) That the district has a critical project on its five-year plan
4which, if not completed in one year, could result in serious damage
5to the remainder of the facility or would result in a serious hazard
6to the health and safety of the pupils attending the facility.

7(3) That the total funds deposited by the district and the state
8pursuant to Section 17584 are insufficient to complete the project.

9(b) If a determination is made that a hardship exists pursuant to
10subdivision (a), the State Allocation Board may increase the
11apportionment to a school district by the amount it determines
12necessary to complete the critical project.

13(c) Notwithstanding subdivision (a), in any fiscal year in which
14the State Allocation Board has apportioned all funding from the
15State School Deferred Maintenance Fund for which school districts
16have qualified under Section 17584, the board may apportion any
17amount remaining in that fund for the purposes of this section.

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

end delete
19begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 33127 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
20read:end insert

21

33127.  

(a) The Superintendentbegin delete of Public Instructionend delete, the
22Controller, and the Director ofbegin delete the Department ofend delete Finance shall
23develop, on or before March 1, 1989, standards and criteria to be
24reviewed and adopted by thebegin delete State Board of Education,end deletebegin insert state board,end insert
25 and to be used by local educational agencies in the development
26of annual budgets and the management of subsequent expenditures
27from that budget. During the development of the standards and
28criteria, the Superintendentbegin delete of Public Instructionend delete shall convene a
29committee composed of representatives from school districts,
30county offices of education, state agencies, the Legislature, and
31appropriate labor and professional organizations. The committee
32may review and comment on the proposal standards and criteria
33begin delete prior toend deletebegin insert beforeend insert their adoption. In addition, the standards and criteria
34shall be used to monitor the fiscal stability of local educational
35agencies as provided for in Sections 1240.1, 1240.2, 1621, 1623,
3633131, 42127, and 42127.1.

37(b) The Superintendentbegin delete of Public Instructionend delete, the Controller,
38and the Director ofbegin delete the Department ofend delete Finance shall update the
39standards and criteria developed pursuant to subdivision (a) on or
40before September 1, 2005. The updated standards and criteria shall
P27   1be reviewed and adopted pursuant to the procedure established by
2subdivision (a) and are applicable to local educational agency
3budgets commencing with the 2006-07 fiscal year and each fiscal
4year thereafter.

begin insert

5(c) The Superintendent, the Controller, and the Director of
6Finance shall update the standards and criteria developed pursuant
7to subdivision (a) on or before January 1, 2014, to address the
8requirements of Article 4.5 (commencing with Section 52060) of
9Chapter 6.1 of Part 28. The updated standards and criteria shall
10be reviewed and adopted pursuant to the procedure established
11by subdivision (a) and are applicable to local educational agency
12budgets commencing with the 2014-15 fiscal year and each fiscal
13year thereafter.

end insert
begin delete

14(c)

end delete

15begin insert(d)end insert Afterbegin delete September 1, 2005,end deletebegin insert January 1, 2014,end insert to the extent
16necessary, any revisions or updates to the standards and criteria
17shall be developed by the Superintendentbegin delete of Public Instructionend delete,
18the Controller, and the Director ofbegin delete the Department ofend delete Finance
19pursuant thebegin delete proceduresend deletebegin insert procedureend insert established by subdivision (a).
20The revisions or updates shall specify the fiscal year in which the
21revisions or updates are applicable.

22begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 35035 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
23read:end insert

24

35035.  

The superintendent of each school district shall, in
25addition to other powers and duties granted to or imposed upon
26him or her:

27(a) Be the chief executive officer of the governing board of the
28begin insert schoolend insert district.

29(b) Except in abegin insert schoolend insert district where the governing board has
30appointed or designated an employee other than the superintendent,
31or a deputy, or assistant superintendent, to prepare and submit a
32budget, prepare and submit to the governing board of thebegin insert schoolend insert
33 district, at the time it may direct, the budget of thebegin insert schoolend insert district
34for the next ensuing school year, and revise and take other action
35in connection with the budget as thebegin insert governingend insert boardbegin insert of the school
36districtend insert
may desire.

begin insert

37(c) Be responsible for the preparation and submission to the
38governing board of the school district, at the time the governing
39board may direct, the local control and accountability plan of the
40school district for the subsequent school year, and revise and take
P28   1other action in connection with the local control and accountability
2plan as the governing board of the school district may desire.

end insert
begin insert

3(d) Except in a school district where the governing board has
4appointed or designated an employee other than the
5superintendent, or a deputy, or assistant superintendent, ensure
6that the local control and accountability plan is implemented.

end insert
begin delete

7(c)

end delete

8begin insert(e)end insert Subject to the approval of the governing boardbegin insert of the school
9districtend insert
, assign all employees ofbegin insert schoolend insert the district employed in
10positions requiring certification qualifications, to the positions in
11which they are to serve. This power to assign includes the power
12to transfer a teacher from one school to another school at which
13the teacher is certificated to serve within thebegin insert schoolend insert district when
14the superintendent concludes that the transfer is in the best interest
15of thebegin insert schoolend insert district.

begin delete

16(d)

end delete

17begin insert(f)end insert Upon adoption, by thebegin insert schoolend insert district board, of abegin insert schoolend insert
18 district policy concerning transfers of teachers from one school to
19another school within thebegin insert schoolend insert district, have authority to transfer
20teachers consistent with that policy.

begin delete

21(e)

end delete

22begin insert(g)end insert Determine that each employee of thebegin insert schoolend insert district in a
23position requiring certification qualifications has a valid certificated
24document registered as required by law authorizing him or her to
25serve in the position to which he or she is assigned.

begin delete

26(f)

end delete

27begin insert(h)end insert Enter into contracts for and on behalf of thebegin insert schoolend insert district
28pursuant to Section 17604.

begin delete

29(g)

end delete

30begin insert(i)end insert Submit financial and budgetary reports to the governing
31boardbegin insert of the school districtend insert as required by Section 42130.

32begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 35735.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

35735.1.  

(a) Thebegin delete base revenue limitend deletebegin insert local control funding
35formula allocationend insert
per unit of average daily attendance for newly
36organized school districts shall be equal to the total of the amount
37ofbegin delete blended revenue limitend deletebegin insert the local control funding formula
38allocation pursuant to Section 42238.02, as implemented by Section
3942238.03,end insert
per unit of average daily attendance of the affected
40school districts computed pursuant tobegin delete paragraph (1), the amount
P29   1based on salaries and benefits of classified employees computed
2pursuant to paragraph (2), the amount based on salaries and benefits
3of certificated employees calculated pursuant to paragraph (3),
4and the amount of the inflation adjustment calculated pursuant to
5paragraph (4)end delete
begin insert the computations set forth belowend insert. The following
6computations shall be made to determine thebegin delete base revenue limitend delete
7begin insert local control funding formula allocation pursuant to Section
842238.02, as implemented by Section 42238.03,end insert
per unit of average
9daily attendance for the newly organized school districts:

begin delete

10(1) Perform the following computation to arrive at the blended
11revenue limit:

end delete
begin delete

12(A)

end delete

13begin insert(1)end insert Based on the current information available for each affected
14school district for the second principal apportionment period for
15the fiscalbegin delete year, two years prior toend deletebegin insert year beforeend insert the fiscal year in
16which the reorganization is to become effective, multiply thebegin delete base
17revenue limitend delete
begin insertlocal control funding formula allocation pursuant
18to Section 42238.02, as implemented by Section 42238.03,end insert
per unit
19of average daily attendance for that school district by the number
20of units of average daily attendance for that school district that the
21county superintendent of schools determines will be included in
22the proposed school district.

begin delete

23(B)

end delete

24begin insert(2)end insert Add the amounts calculated pursuant tobegin delete subparagraph (A)end delete
25begin insertparagraph (1) and divide that sum by the number of units ofend insert
26begin insertaverage daily attendance in the newly organized school districtsend insert.

begin delete

27(2) For each affected school district in the newly organized
28school districts, the following computation shall be made to
29determine the amount to be included in the base revenue limit per
30unit of average daily attendance for the newly organized school
31districts that is based on the salaries and benefits of full-time
32equivalent classified employees:

end delete
begin delete

33(A) For each of those school districts, make the following
34computation to arrive at the highest average amount expended for
35salaries and benefits for classified full-time employees by the
36districts:

end delete
begin delete

37(i) Add the amount of all salaries and benefits for classified
38employees of the district, including both part-time and full-time
39employees.

end delete
begin delete

P30   1(ii) Divide the amount computed in clause (i) by the total number
2of full-time equivalent classified employees in the district.

end delete
begin delete

3(B) Among those school districts that will make up 25 percent
4or more of the average daily attendance of the resulting newly
5organized school district, compare the amounts determined for
6each of those school districts pursuant to subparagraph (A) and
7identify the highest average amount expended for salaries and
8benefits for classified employees.

end delete
begin delete

9(C) For each of the school districts with salaries and benefits
10that are below the highest average amount identified in
11subparagraph (B) and that are included, in whole or in part, in the
12newly organized district, subtract the amount determined for the
13district pursuant to subparagraph (A) from the amount identified
14pursuant to subparagraph (B).

end delete
begin delete

15(D) For each of those school districts, multiply the amount
16determined for the district pursuant to subparagraph (C) by the
17number of full-time equivalent classified employees employed by
18the district, and then multiply by the percentage of the district’s
19average daily attendance to be included in the new district.

end delete
begin delete

20(E) Add the amounts computed for each school district pursuant
21to subparagraph (D).

end delete
begin delete

22(3) For each affected school district in the newly organized
23school districts, the following computation shall be made to
24determine the amount to be included in the base revenue limit per
25unit of average daily attendance for the newly organized school
26districts that is based on the salaries and benefits of full-time
27equivalent certificated employees:

end delete
begin delete

28(A) For each of those school districts, make the following
29computation to determine the highest average amount expended
30for salaries and benefits for certificated full-time employees:

end delete
begin delete

31(i) Add the amount of all salaries and benefits for certificated
32employees, including both part-time and full-time employees.

end delete
begin delete

33(ii) Divide the amount determined in clause (i) by the total
34number of full-time equivalent certificated employees in the
35district.

end delete
begin delete

36(B) Among those school districts that will make up 25 percent
37or more of the average daily attendance of the resulting newly
38organized school district, compare the amounts determined for
39each school district pursuant to subparagraph (A) and identify the
P31   1highest average amount expended for salaries and benefits for
2certificated employees.

end delete
begin delete

3(C) For each of the school districts with salaries and benefits
4that are below the highest average amount identified in
5subparagraph (B) and that are included, in whole or in part, in the
6newly organized school district, subtract the amount determined
7for the district pursuant to subparagraph (A) from the amount
8identified pursuant to subparagraph (B).

end delete
begin delete

9(D) For each of those school districts, multiply the amount
10determined for the district pursuant to subparagraph (C) by the
11number of full-time equivalent certificated employees of the school
12district, and then multiply by the percentage of the district’s
13average daily attendance to be included in the new district.

end delete
begin delete

14(E) Add the amount calculated for each school district identified
15pursuant to subparagraph (D).

end delete
begin delete

16(4) The base revenue limit per unit of average daily attendance
17shall be adjusted for inflation as follows:

end delete
begin delete

18(A) Add the amounts determined pursuant to subparagraph (B)
19of paragraph (1), subparagraph (E) of paragraph (2), and
20subparagraph (E) of paragraph (3), and divide that sum by the
21number of units of average daily attendance in the newly organized
22school districts. The amount determined pursuant to this
23subparagraph shall not exceed 110 percent of the blended revenue
24limit per unit of average daily attendance calculated pursuant to
25paragraph (1).

end delete
begin delete

26(B) (i) Increase the amount determined pursuant to
27subparagraph (A) by the amount of the inflation adjustment
28calculated and used for apportionment purposes pursuant to Section
2942238.1 for the fiscal year immediately preceding the year in which
30the reorganization becomes effective.

end delete
begin delete

31(ii) With respect to a school district that unifies effective July
321, 1997, and that has an average daily attendance in the 1996-97
33fiscal year of more than 1,500 units, increase the amount
34determined pursuant to subparagraph (A) by an amount calculated
35as follows:

end delete
begin delete

36(I) For each component district of the newly unified district,
37multiply the amount of revenue limit equalization aid per unit of
38average daily attendance determined pursuant to Sections 42238.41,
3942238.42, and 42238.43, or any other sections of law, for the
401996-97 fiscal year by the 1996-97 second principal apportionment
P32   1units of average daily attendance determined pursuant to Section
242238.5 for that component district.

end delete
begin delete

3(II) Add the results for all component districts, and divide this
4amount by the sum of the 1996-97 second principal apportionment
5units of average daily attendance determined pursuant to Section
642238.5 for all component districts.

end delete
begin delete

7(C) Increase the amount determined pursuant to subparagraph
8(B) by the amount of the inflation adjustment calculated and used
9for apportionment purposes pursuant to Section 42238.1 for the
10fiscal year in which the reorganization becomes effective for all
11purposes.

end delete
begin delete

12(D) Increase the amount determined pursuant to subparagraph
13(C) by any other adjustments to the base revenue limit per unit of
14average daily attendance that the newly organized school districts
15would have been eligible to receive had they been reorganized in
16the fiscal year two years prior to the year in which the
17reorganization becomes effective for all purposes.

end delete

18(b) The amount determined pursuant tobegin delete subparagraph (D) of
19paragraph (4) ofend delete
subdivision (a) shall be thebegin delete base revenue limitend delete
20begin insert local control funding formula allocation pursuant to Section
2142238.02, as implemented by Section 42238.03,end insert
per unit of average
22daily attendance for the newly organized school districts.

23(c) Thebegin delete base revenue limit per unit ofend delete average daily attendance
24begin delete for theend deletebegin insert of aend insert newly organized school districtbegin delete shall not be greater
25than the amount set forth in the proposal for reorganization that is
26approved by the state board. The Superintendent may make
27adjustments to base revenue limit apportionments to a newly
28organized school district, if necessary to cause those
29apportionments to be consistent with this section.end delete
begin insert, for purposes of
30Sections 42238.02 and 42238.03, shall be the average daily
31attendance that is attributable to the area reorganized for the fiscal
32year before the fiscal year in which the new school district becomes
33effective for all purposes.end insert

begin delete

34(d) If the territorial jurisdiction of any school district was revised
35pursuant to a unification, consolidation, or other reorganization,
36occurring on or before July 1, 1989, that resulted in a school district
37having a larger territorial jurisdiction than the original school
38district prior to the reorganization, and a reorganization of school
39districts occurs on or after the effective date of the act that added
40this subdivision that results in a school district having a territorial
P33   1jurisdiction that is substantially the same, as determined by the
2state board, as the territorial jurisdiction of that original school
3district prior to the most recent reorganization occurring on or
4before July 1, 1989, the revenue limit of the school district resulting
5from the subsequent reorganization shall be the same,
6notwithstanding subdivision (b), as the revenue limit that was
7determined for the original school district prior to the most recent
8reorganization occurring on or before July 1, 1989.

end delete
begin delete

9(e) The average daily attendance of a newly organized school
10district, for purposes of subdivision (d) of Section 42238, shall be
11the average daily attendance that is attributable to the area
12reorganized for the fiscal year two years prior to the fiscal year in
13which the new district becomes effective for all purposes.

end delete
begin delete

14(f) For purposes of computing average daily attendance pursuant
15to subdivision (d) of Section 42238 for each school district that
16exists prior to the reorganization and whose average daily
17attendance is directly affected by the reorganization, the following
18calculation shall apply for the fiscal year two years prior to the
19fiscal year in which the newly reorganized school district becomes
20effective:

end delete
begin delete

21(1) Divide the 1982-83 fiscal year average daily attendance,
22computed pursuant to subdivision (d) of Section 42238, by the
23total average daily attendance of the district pursuant to Section
2442238.5.

end delete
begin delete

25(2) Multiply the percentage computed pursuant to paragraph
26(1) by the total average daily attendance of the district calculated
27pursuant to Section 42238.5, excluding the average daily attendance
28of pupils attributable to the area reorganized.

end delete
begin delete

29(g) This section shall not apply to any reorganization proposal
30approved by the state board prior to January 1, 1995.

end delete
begin insert

31(d) Notwithstanding this section, commencing with the 2013-14
32fiscal year, a newly reorganized school district shall receive
33state-aid funding pursuant to paragraph (3) of subdivision (b) of
34Section 42238.03 or the total combined per pupil funding amount
35received by each school district pursuant to paragraphs (1) and
36(2) of subdivision (a) of Section 42238.03 for the fiscal year before
37the fiscal year in which the new school district becomes effective
38for all purposes, whichever is greater.

end insert
begin delete

39(h)

end delete

P34   1begin insert(e)end insert Notwithstanding any otherbegin delete provision ofend delete law, this section
2shall not be subject to waiver by the state board pursuant to Section
333050 or by the Superintendent.

begin insert

4(f) Upon a determination that all school districts or charter
5schools equal or exceed the local control funding formula target
6computed pursuant to Section 42238.02 as determined by the
7calculation of a zero difference pursuant to paragraph (1) of
8subdivision (b) of Section 42238.03, for all school districts and
9charter schools, this section shall not apply and the newly
10reorganized school district shall receive an allocation equal to
11the amount calculated under Section 42238.02 in that fiscal year
12and future fiscal years.

end insert
13begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 35735.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

35735.2.  

(a) If a newly organized school district is unable to
15provide the school facilities necessary to provide instructional
16services by employees of the district to all of the pupils who are
17residents of that district during the fiscal year in which the
18reorganization becomes effective for all purposes, the base revenue
19limit per unit of average daily attendance of the newly organized
20district shall be the blended revenue limit arrived at pursuant to
21paragraph (1) of subdivision (a) of Section 35735.1 as adjusted by
22the calculations made pursuant to subparagraphs (B), (C), and (D)
23of paragraph (4) of subdivision (a) of Section 35735.1 and
24subdivision (b) of Section 35735.1. As the newly organized school
25district obtains the school facilities necessary to provide
26instructional services by employees of the district to all or a portion
27of those pupils, the following adjustment shall be made to the base
28revenue limit per unit of average daily attendance of the district
29each fiscal year subsequent to the fiscal year in which the
30reorganization becomes effective until the fiscal year in which the
31district provides the facilities necessary to provide those services
32for all of those pupils:

33(1) Determine the total number of pupils who are residents of
34the district to whom the district was unable to provide school
35facilities necessary to provide that instruction during the fiscal
36year in which the reorganization becomes effective for all purposes.

37(2) Determine the total number of pupils identified in paragraph
38(1) that will attend school in school facilities located in, and receive
39instructional services provided by employees of, that district in
40the current fiscal year.

P35   1(3) Divide the number determined pursuant to paragraph (2) by
2the number determined pursuant to paragraph (1) to determine the
3percentage of pupils identified in paragraph (1) who will attend
4school in school facilities located in, and receive instructional
5services provided by employees of, that district in the current fiscal
6year.

7(4) Multiply the numbers determined pursuant to paragraphs
8(2) and (3) of subdivision (a) of Section 35735.1 by the percentage
9determined pursuant to paragraph (3) for that fiscal year, and total
10the amounts. Divide that sum by the number of units of average
11daily attendance residing in the proposed district in the current
12fiscal year.

13(5) Increase the base revenue limit calculated pursuant to
14subdivision (a) of this section for the school district by the amount
15arrived at pursuant to paragraph (4) as adjusted by the calculations
16pursuant to subparagraphs (B), (C), and (D) of paragraph (4) of
17subdivision (a) of Section 35735.1. In no event shall the amount
18determined pursuant to this paragraph exceed that amount that
19would otherwise be calculated pursuant to subdivision (a) of
20Section 35735.1.

21(b) For the purposes of making the adjustments described in
22subdivision (a), the annual audit of the school district required
23pursuant to Section 41020 shall include an audit of the average
24daily attendance of pupils by grade level and the numbers of
25certificated and classified employees on which the adjustments to
26the base revenue limit of the district were made pursuant to
27paragraphs (1), (2), and (3) of subdivision (a) of Section 35735.1.
28Until the newly organized school district provides the school
29facilities necessary to provide instructional services by employees
30of the district to pupils who are residents of the district in the
31manner and in the timeframes set forth in the proposal to reorganize
32that was approved by the State Board of Education, the county
33superintendent of schools shall, for each fiscal year, inform the
34Superintendent of Public Instruction of the extent to which the
35district is providing those facilities to those pupils. The county
36superintendent of schools may charge the school district for the
37cost of preparation of the report. Based on that information, the
38superintendent shall make base revenue limit apportionments to
39the school district in a manner consistent with subdivision (a).

P36   1(c) If the newly organized school district is unable to provide
2the school facilities necessary to provide instructional services by
3employees of the district to all of the pupils who are residents of
4the district five years from the date on which the reorganization
5becomes effective for all purposes, the State Department of
6Education shall recommend to the State Board of Education
7whether or not the district should be lapsed pursuant to Article 5
8(commencing with Section 35780). The State Department of
9Education shall make that recommendation for each fiscal year
10until either the school district provides the school facilities
11necessary to provide instructional services by employees of the
12district to all of the pupils who are residents of the district or the
13district is lapsed. Upon recommendation by the State Department
14of Education, the State Board of Education may direct the county
15committee on school district organization to lapse the school
16district according to the procedures set forth in Article 5
17(commencing with Section 35780).

18(d) This section shall not apply to any reorganization proposal
19approved by the State Board of Education prior to January 1, 1995.

end delete
20begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 35736.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
21read:end insert

begin insert
22

begin insert35736.5.end insert  

Sections 35735 to 35736, inclusive, shall only apply
23to actions to reorganize school districts initiated on or after July
241, 2013, for which the order to reorganize, pursuant to Section
2535765, is appropriately filed after December 1, 2013, pursuant to
26Section 54902 of the Government Code. Actions to reorganize
27school districts initiated before July 1, 2013, for which the order
28to reorganize is appropriately filed on or before December 1, 2013,
29shall be implemented pursuant to Sections 35735 to 35736,
30inclusive, as those sections read on January 1, 2013.

end insert
31begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 37700 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
32read:end insert

33

37700.  

(a) Notwithstanding any other law, the Pacific Unified
34School District, the Leggett Valley Unified School District, and
35the Reeds Creek Elementary School District may operate one or
36more schools in their respective districts on a four-day school
37week, if the district complies with the instructional time
38requirements specified in Section 37701 and the other requirements
39of this chapter.

P37   1(b) If a school district operates one or more schools on a
2four-day week pursuant to this section and the program for the
3school year provides less than the 180 days of instruction required
4under Section 46200,begin insert as it read on January 1, 2013,end insert the
5Superintendentbegin delete of Public Instructionend delete shall reduce thebegin delete base revenue
6limitend delete
begin insert local control funding formula allocation pursuant to Section
742238.02, as implemented pursuant to Section 42238.03,end insert
per unit
8of average daily attendance for that fiscal year by the amount the
9school district would have received for the increase received
10pursuant to subdivision (a) of Section 46200,begin insert as it read on January
111, 2013,end insert
as adjusted in fiscal years subsequent to the 1984-85 fiscal
12year. If a school district operates one or more schools on a four-day
13school week pursuant to this section and the program provides less
14than the minimum instructional minutes required under Section
1546201,begin insert as it read on January 1, 2013,end insert the Superintendentbegin delete of Public
16Instructionend delete
shall reduce thebegin delete base revenue limitend deletebegin insert local control funding
17formula allocation pursuant to Section 42238.02, as implemented
18pursuant to Section 42238.03,end insert
per unit of average daily attendance
19for that fiscal year in which the reduction occurs by the amount
20the school district would have received for the increase in the
211987-88 fiscal year base revenue limit per unit of average daily
22attendance pursuant to paragraph (6) of subdivision (b) of Section
2342238,begin insert as it read on January 1, 2013,end insert as adjustedbegin delete inend deletebegin insert fromend insert the
241987-88 fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the 2012-13
25fiscal year, inclusive, and, commencing with the 2013-14 fiscal
26year, pursuant to the local control funding formula allocation
27pursuant to Section 42238.02, as implemented pursuant to Section
2842238.03, per unit of average daily attendanceend insert
.

29(c) A school district with an exclusive bargaining representative
30may operate a school on a four-day school week pursuant to this
31section only if thebegin insert schoolend insert district and the representative of each
32bargaining unit ofbegin insert schoolend insert district employees mutually agree to that
33operation in a memorandum of understanding.

begin insert

34(d) Notwithstanding this section, upon a determination that a
35school district identified in subdivision (a) equals or exceeds its
36local control funding formula target computed pursuant to Section
3742238.02 as determined by the calculation of a zero difference
38pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
39the school district, as a condition of apportionment pursuant to
40Section 42238.02, as implemented pursuant to Section 42238.03,
P38   1shall offer 180 days or more of instruction per school year, and
2meet the minimum minute requirements pursuant to paragraph
3(1) of subdivision (a) of Section 46207.

end insert
4begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 37710.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
5to read:end insert

6

37710.3.  

(a) Beginning in the 2010-11 fiscal year, the Alpaugh
7Unified School District may operate one or more schools in the
8school district on a four-day school week if the district complies
9with the instructional time requirements in Section 37701 and the
10other requirements of this chapter. The state board may waive
11five-consecutive-day operating requirements for any of the
12following programs that operate on a four-day school week
13pursuant to this section, provided that the district meets the
14minimum time requirement for each program:

15(1) Preschools.

16(2) Before and after school programs.

17(3) Independent study programs.

18(4) Child nutrition and food service programs.

19(5) Community day schools.

20(6) Regional occupational centers or programs.

21(7) Continuation high schools.

22(b) If the school district operates one or more schools on a
23four-day school week pursuant to this section, and the program
24for the school year provides fewer than the 180 days of instruction
25required under Section 46200,begin insert as it read on January 1, 2013,end insert the
26Superintendent shall reduce thebegin delete base revenue limitend deletebegin insert local control
27funding formula allocation pursuant to Section 42238.02, as
28implemented pursuant to Section 42238.03,end insert
per unit of average
29daily attendance for that fiscal year by the amount the school
30district would have received for the increase received pursuant to
31subdivision (a) of Section 46200,begin insert as it read on January 1, 2013,end insert
32 as adjusted in fiscal years subsequent to the 1984-85 fiscal year.
33If the school district operates one or more schools on a four-day
34school week pursuant to this section, and the program provides
35fewer than the minimum instructional minutes required under
36Section 46201,begin insert as it read on January 1, 2013,end insert the Superintendent
37shall reduce thebegin delete base revenue limitend deletebegin insert local control funding formula
38allocation pursuant to Section 42238.02, as implemented pursuant
39to Section 42238.03,end insert
per unit of average daily attendance for that
40fiscal year in which the reduction occurs by the amount the school
P39   1district would have received for the increase in the base revenue
2limit per unit of average daily attendance pursuant to subdivision
3(a) of Section 46201,begin insert as it read on January 1, 2013,end insert as adjusted
4begin delete inend deletebegin insert fromend insert the 1987-88 fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the
52012-13 fiscalend insert
begin insert year, inclusive, and, commencing with the 2013-14
6fiscal year, pursuant to the local control funding formula allocation
7pursuant to Section 42238.02, as implemented pursuant to Section
842238.03, per unit of average daily attendanceend insert
.

9(c) Notwithstanding Section 37710, if a small school having
10between 11 and 99 valid Standardized Testing and Reporting
11Program test scores operating on a four-day school week fails to
12achieve its Academic Performance Index growth target pursuant
13to Section 52052 for two consecutive years, the authority of that
14school to operate on a four-day school week shall be permanently
15revoked commencing with the school year following the second
16consecutive year the school failed to achieve its Academic
17Performance Index growth rate.

18(d) If the school district operates one or more schools on a
19four-day school week pursuant to this section, the school district
20shall submit a report to the department, the Senate Committee on
21Education, and the Assembly Committee on Education on or before
22January 15, 2015. The report shall include, but not necessarily be
23limited to, information on all of the following:

24(1) Programs the district offered on the fifth schoolday and their
25participation rates.

26(2) Whether the four-day school week schedule resulted in any
27fiscal savings.

28(3) Impact on overall attendance of the schools operating a
29four-day school week.

30(4) Programs for which the state board waived minimum time
31and five-consecutive-day requirements and the operational and
32educational effects of the programs if they operated at less time
33than required.

34(5) The impact of the four-day school week on crime statistics,
35especially on the day on which school would otherwise be in
36session.

37(6) Information on the Academic Performance Index, pursuant
38to Section 52052, for every year a school in the district operated
39on a four-day school week. The information shall include, but not
40necessarily be limited to, the base and growth Academic
P40   1Performance Index of each school that operated on a four-day
2school week and whether that school met the Academic
3Performance growth targets.

begin insert

4(e) Notwithstanding this section, upon a determination that the
5school district identified in subdivision (a) equals or exceeds its
6local control funding formula target computed pursuant to Section
742238.02 as determined by the calculation of a zero difference
8pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
9the school district, as a condition of apportionment pursuant to
10Section 42238.02, as implemented pursuant to Section 42238.03,
11shall offer 180 days or more of instruction per school year, and
12meet the minimum minute requirements pursuant to paragraph
13(1) of subdivision (a) of Section 46207.

end insert
begin delete

14(e)

end delete

15begin insert(f)end insert This section shall remain in effect only until January 1, 2016,
16and as of that date is repealed, unless a later enacted statute, that
17is enacted before January 1, 2016, deletes or extends that date.

18begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 37710.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

37710.5.  

(a) Beginning in the 2009-10 fiscal year, the Potter
21Valley Community Unified School District may operate one or
22more schools in the school district on a four-day school week if
23thebegin insert schoolend insert district complies with the instructional time requirements
24specified in Section 37701 and the other requirements of this
25chapter. Thebegin delete State Board of Educationend deletebegin insert state boardend insert may waive
26five-consecutive-day operating requirements for any of the
27following programs that operate on a four-day week pursuant to
28this section, provided that thebegin insert schoolend insert district meets the minimum
29time requirement for each program:

30(1) Preschools.

31(2) Before and after school programs.

32(3) Independent study programs.

33(4) Child nutrition and food service programs.

34(5) Community day schools.

35(6) Regional occupational centers or programs.

36(7) Continuation high schools.

37(b) If the school district operates one or more schools on a
38four-day week pursuant to this section, and the program for the
39school year provides fewer than the 180 days of instruction required
40under Section 46200,begin insert as it read on January 1, 2013,end insert the
P41   1Superintendent shall reduce thebegin delete base revenue limitend deletebegin insert local control
2funding formula allocation pursuant to Section 42238.02, as
3implemented pursuant to Section 42238.03,end insert
per unit of average
4daily attendance for that fiscal year by the amount the school
5district would have received for the increase received pursuant to
6subdivision (a) of Section 46200,begin insert as it read on January 1, 2013,end insert
7 as adjusted in fiscal years subsequent to the 1984-85 fiscal year.
8If the school district operates one or more schools on a four-day
9school week pursuant to this section, and the program provides
10fewer than the minimum instructional minutes required under
11Section 46201,begin insert as it read on January 1, 2013,end insert the Superintendent
12shall reduce thebegin delete base revenue limitend deletebegin insert local control funding formula
13allocation pursuant to Section 42238.02, as implemented pursuant
14to Section 42238.03,end insert
per unit of average daily attendance for that
15fiscal year in which the reduction occurs by the amount the school
16district would have received for the increase in the base revenue
17limit per unit of average daily attendance pursuant to subdivision
18(a) of Section 46201,begin insert as it read on January 1, 2013,end insert as adjusted
19begin delete inend deletebegin insert fromend insert the 1987-88 fiscal yearbegin delete and fiscal years thereafterend deletebegin insert to the
202012-13 fiscalend insert
begin insert year, inclusive, and, commencing with the 2013-14
21fiscal year, pursuant to Section 42238.02, as implemented pursuant
22to Section 42238.03, per unit of average daily attendanceend insert
.

23(c) If the school district operates one or more schools on a
24four-day school week pursuant to this section, the school district
25shall submit a report to the department, the Senate Committee on
26Education and the Assembly Committee on Education on January
2715, 2014. The report shall include, but not necessarily be limited
28to, information on the following:

29(1) Programs the district offered on the fifth day and their
30participation rates.

31(2) Whether the four-day school week schedule resulted in any
32fiscal savings.

33(3) Impact on overall attendance of the schools operating a
34four-day school week.

35(4) Programs for which the Superintendent waived minimum
36time and five-consecutive-day requirements and the operational
37and educational effect of the programs if they operated at less time
38than required.

begin insert

39(d) Notwithstanding this section, upon a determination that the
40school district identified in subdivision (a) equals or exceeds its
P42   1local control funding formula target computed pursuant to Section
242238.02 as determined by the calculation of a zero difference
3pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
4the school district, as a condition of apportionment pursuant to
5Section 42238.02, as implemented pursuant to Section 42238.03,
6shall offer 180 days or more of instruction per school year, and
7meet the minimum minute requirements pursuant to paragraph
8(1) of subdivision (a) of Section 46207.

end insert
begin delete

9(d)

end delete

10begin insert(e)end insert This section shall remain in effect only until January 1, 2015,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2015, deletes or extends that date.

13begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 41020 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

41020.  

(a) It is the intent of the Legislature to encourage sound
16fiscal management practices among local educational agencies for
17the most efficient and effective use of public funds for the
18education of children in California by strengthening fiscal
19accountability at thebegin insert schoolend insert district, county, and state levels.

20(b) (1) Not later than the first day of May of each fiscal year,
21each county superintendent of schools shall provide for an audit
22of all funds under his or her jurisdiction and control and the
23governing board of each local educational agency shall either
24provide for an audit of the books and accounts of the local
25educational agency, including an audit of income and expenditures
26by source of funds, or make arrangements with the county
27superintendent of schools having jurisdiction over the local
28educational agency to provide for that auditing.

29(2) A contract to perform the audit of a local educational agency
30that has a disapproved budget or has received a negative
31certification on any budget or interim financial report during the
32current fiscal year or either of the two preceding fiscal years, or
33for which the county superintendent of schools has otherwise
34determined that a lack of going concern exists, is not valid unless
35approved by the responsible county superintendent of schools and
36the governing board.

37(3) If the governing board of a local educational agency has not
38provided for an audit of the books and accounts of the local
39educational agency by April 1, the county superintendent of schools
P43   1having jurisdiction over the local educational agency shall provide
2for the audit of each local educational agency.

3(4) An audit conducted pursuant to this section shall comply
4fully with the Government Auditing Standards issued by the
5Comptroller General of the United States.

6(5) For purposes of this section, “local educational agency” does
7not include community colleges.

8(c) Each audit conducted in accordance with this section shall
9include all funds of the local educational agency, including the
10student body and cafeteria funds and accounts and any other funds
11under the control or jurisdiction of the local educational agency.
12Each audit shall also include an audit of pupil attendance
13procedures. begin insertEachend insertbegin insert audit shall include a determination of whether
14funds were expended pursuant to a local control and accountability
15plan or an approved annual update to a local control and
16accountability plan pursuant to Article 4.5 (commencing with
17Section 52060) of Chapter 6.1 of Part 28 of Division 4.end insert

18(d) All audit reports for each fiscal year shall be developed and
19reported using a format established by the Controller after
20consultation with the Superintendent and the Director of Finance.

21(e) (1) The cost of the audits provided for by the county
22superintendent of schools shall be paid from the county school
23service fund and the county superintendent of schools shall transfer
24the pro rata share of the cost chargeable to eachbegin insert schoolend insert district
25frombegin insert schoolend insert district funds.

26(2) The cost of the audit provided for by a governing boardbegin insert of
27a local educational agencyend insert
shall be paid from local educational
28agency funds. The audit of the funds under the jurisdiction and
29control of the county superintendent of schools shall be paid from
30the county school service fund.

31(f) (1) The audits shall be made by a certified public accountant
32or a public accountant, licensed by the California Board of
33Accountancy, and selected by the local educational agency, as
34applicable, from a directory of certified public accountants and
35public accountants deemed by the Controller as qualified to conduct
36audits of local educational agencies, which shall be published by
37the Controller not later than December 31 of each year.

38(2) Commencing with the 2003-04 fiscal year and except as
39provided in subdivision (d) of Section 41320.1, it is unlawful for
40a public accounting firm to provide audit services to a local
P44   1educational agency if the lead audit partner, or coordinating audit
2partner, having primary responsibility for the audit, or the audit
3partner responsible for reviewing the audit, has performed audit
4services for that local educational agency in each of the six previous
5fiscal years. The Education Audits Appeal Panel may waive this
6requirement if the panel finds that no otherwise eligible auditor is
7available to perform the audit.

8(3) It is the intent of the Legislature that, notwithstanding
9paragraph (2), the rotation within public accounting firms conform
10to provisions of the federal Sarbanes-Oxley Act of 2002begin delete (P.L.end delete
11begin insert (Public Lawend insert 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon
12release of the report required by the act of the Comptroller General
13of the United States addressing the mandatory rotation of registered
14public accounting firms, the Legislature intends to reconsider the
15provisions of paragraph (2). In determining which certified public
16accountants and public accountants shall be included in the
17directory, the Controller shall use the following criteria:

18(A) The certified public accountants or public accountants shall
19be in good standing as certified by the Board of Accountancy.

20(B) The certified public accountants or public accountants, as
21a result of a quality control review conducted by the Controller
22pursuant to Section 14504.2, shall not have been found to have
23conducted an audit in a manner constituting noncompliance with
24subdivision (a) of Section 14503.

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

26(A) A statement that the audit was conducted pursuant to
27standards and procedures developed in accordance with Chapter
283 (commencing with Section 14500) of Part 9 of Division 1 of
29Title 1.

30(B) A summary of audit exceptions and management
31improvement recommendations.

32(C) Each audit of a local educational agency shall include an
33evaluation by the auditor on whether there is substantial doubt
34about the ability of the local educational agency to continue as a
35going concern for a reasonable period of time. This evaluation
36shall be based on the Statementbegin delete ofend deletebegin insert onend insert Auditing Standards (SAS)
37No. 59, as issued by the AICPA regarding disclosure requirements
38relating to the ability of the entity to continue as a going concern.

39(2) To the extent possible, a description of correction or plan
40of correction shall be incorporated in the audit report, describing
P45   1the specific actions that are planned to be taken, or that have been
2taken, to correct the problem identified by the auditor. The
3descriptions of specific actions to be taken or that have been taken
4shall not solely consist of general comments such as “will
5implement,” “accepted the recommendation,” or “will discuss at
6a later date.”

7(h) Not later than December 15, a report of each local
8educational agency audit for the preceding fiscal year shall be filed
9with the county superintendent of schools of the county in which
10the local educational agency is located, the department, and the
11Controller. The Superintendent shall make any adjustments
12necessary in future apportionments of all state funds, to correct
13any audit exceptions revealed by those audit reports.

14(i) (1) Commencing with the 2002-03 audit of local educational
15agencies pursuant to this section and subdivision (d) of Section
1641320.1, each county superintendent of schools shall be responsible
17for reviewing the audit exceptions contained in an audit of a local
18educational agency under his or her jurisdiction related to
19attendance, inventory of equipment, internal control, and any
20miscellaneous items, and determining whether the exceptions have
21been either corrected or an acceptable plan of correction has been
22developed.

23(2) Commencing with the 2004-05 audit of local educational
24agencies pursuant to this section and subdivision (d) of Section
2541320.1, each county superintendent of schools shall include in
26the review of audit exceptions performed pursuant to this
27subdivision those audit exceptions related to use of instructional
28materials program funds, teacher misassignments pursuant to
29Section 44258.9, information reported on the school accountability
30report card required pursuant to Section 33126 and shall determine
31whether the exceptions are either corrected or an acceptable plan
32of correction has been developed.

33(j) Upon submission of the final audit report to the governing
34board of each local educational agency and subsequent receipt of
35the audit by the county superintendent of schools having
36jurisdiction over the local educational agency, the county office
37of education shall do all of the following:

38(1) Review audit exceptions related to attendance, inventory of
39equipment, internal control, and other miscellaneous exceptions.
40Attendance exceptions or issues shall include, but not be limited
P46   1to, those related tobegin delete revenue limits, adult education,end deletebegin insertlocal control
2funding formula allocations pursuant to Section 42238.02, as
3implemented by Section 42238.03,end insert
and independent study.

4(2) If a description of the correction or plan of correction has
5not been provided as begin deletepartend deletebegin insertPart.end insert of the audit required by this section,
6then the county superintendent of schools shall notify the local
7educational agency and request the governing board of the local
8educational agency to provide to the county superintendent of
9schools a description of the corrections or plan of correction by
10March 15.

11(3) Review the description of correction or plan of correction
12and determine its adequacy. If the description of the correction or
13plan of correction is not adequate, the county superintendent of
14schools shall require the local educational agency to resubmit that
15portion of its response that is inadequate.

16(k) Each county superintendent of schools shall certify to the
17Superintendent and the Controller, not later than May 15, that his
18or her staff has reviewed all audits of local educational agencies
19under his or her jurisdiction for the prior fiscal year, that all
20exceptions that the county superintendent was required to review
21were reviewed, and that all of those exceptions, except as otherwise
22noted in the certification, have been corrected by the local
23educational agency or that an acceptable plan of correction has
24been submitted to the county superintendent of schools. In addition,
25the county superintendent shall identify, by local educational
26agency, any attendance-related audit exception or exceptions
27involving state funds, and require the local educational agency to
28which the audit exceptions were directed to submit appropriate
29reporting forms for processing by the Superintendent.

30(l) In the audit of a local educational agency for a subsequent
31year, the auditor shall review the correction or plan or plans of
32correction submitted by the local educational agency to determine
33if the exceptions have been resolved. If not, the auditor shall
34immediately notify the appropriate county office of education and
35the department and restate the exception in the audit report. After
36receiving that notification, the department shall either consult with
37the local educational agency to resolve the exception or require
38the county superintendent of schools to follow up with the local
39educational agency.

P47   1(m) (1) The Superintendent shall be responsible for ensuring
2that local educational agencies have either corrected or developed
3plans of correction for any one or more of the following:

4(A) All federal and state compliance audit exceptions identified
5in the audit.

6(B) Any exceptions that the county superintendent certifies as
7of May 15 have not been corrected.

8(C) Any repeat audit exceptions that are not assigned to a county
9superintendent to correct.

10(2) In addition, the Superintendent shall be responsible for
11ensuring that county superintendents of schools and each county
12board of education that serves as the governing board of a local
13educational agency either correct all audit exceptions identified in
14the audits of county superintendents of schools and of the local
15educational agencies for which the county boards of education
16serve as the governing boards or develop acceptable plans of
17correction for those exceptions.

18(3) The Superintendent shall report annually to the Controller
19on his or her actions to ensure that school districts, county
20superintendents of schools, and each county board of education
21that serves as the governing board of a school district have either
22corrected or developed plans of correction for any of the exceptions
23noted pursuant to paragraph (1).

24(n) To facilitate correction of the exceptions identified by the
25audits issued pursuant to this section, commencing with 2002-03
26audits pursuant to this section, the Controller shall require auditors
27to categorize audit exceptions in each audit report in a manner that
28will make it clear to both the county superintendent of schools and
29the Superintendent which exceptions they are responsible for
30ensuring the correction of by a local educational agency. In
31addition, the Controller annually shall select a sampling of county
32superintendents of schools and perform a followup of the audit
33resolution process of those county superintendents of schools and
34report the results of that followup to the Superintendent and the
35county superintendents of schools that were reviewed.

36(o) County superintendents of schools shall adjust subsequent
37local property tax requirements to correct audit exceptions relating
38to local educational agency tax rates and tax revenues.

39(p) If a governing board or county superintendent of schools
40fails or is unable to make satisfactory arrangements for the audit
P48   1pursuant to this section, the Controller shall make arrangements
2for the audit and the cost of the audit shall be paid from local
3educational agency funds or the county school service fund, as the
4case may be.

5(q) Audits of regional occupational centers and programs are
6subject to the provisions of this section.

7(r) This section does not authorize examination of, or reports
8on, the curriculum used or provided for in any local educational
9agency.

10(s) Notwithstanding any other provision of law, a nonauditing,
11management, or other consulting service to be provided to a local
12educational agency by a certified public accounting firm while the
13certified public accounting firm is performing an audit of the
14agency pursuant to this section must be in accord with Government
15Accounting Standards, Amendment No. 3, as published by the
16United States General Accounting Office.

17begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 41303 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

41303.  

The Superintendentbegin delete of Public Instructionend delete shall report
20to the Controller, on or before the 20th day of October of each
21year, the total average daily attendance during the preceding fiscal
22year credited to all kindergarten,begin insert including average daily
23attendance for transitional kindergarten,end insert
elementary, high school,
24and adult schools in the state and to county school tuition funds.

25begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 41544 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

41544.  

(a) For a basic aidbegin insert schoolend insert district that was entitled to
28reimbursement pursuant to Section 42247.4, as that section read
29on January 1, 2001, and that received an apportionment pursuant
30to subdivision (h) of Section 42247.4, as that section read on
31January 1, 2001, because a court order directs pupils to transfer to
32thatbegin insert schoolend insert district as begin deletepartend deletebegin insertPart.end insert of the court-ordered voluntary pupil
33transfer program, the Superintendent,begin delete commencing withend deletebegin insert fromend insert the
342001-02 fiscal yearbegin insert to the 2012-13 fiscal year, inclusiveend insert, shall
35calculate an apportionment of state funds for that basic aidbegin insert schoolend insert
36 district that provides 70 percent of the school district revenue limit
37calculated pursuant to Section 42238begin insert, as that section read on
38January 1, 2013,end insert
that would have been apportioned to the school
39district from which the pupils were transferred for the average
40daily attendance of any pupils credited under that court order who
P49   1did not attend the basic aid school district before the 1995-96 fiscal
2year.

begin insert

3(b) (1) For a basic aid school district that was entitled to
4reimbursement pursuant to Section 42247.4, as that section read
5on January 1, 2001, and that received an apportionment pursuant
6to subdivision (h) of Section 42247.4, as that section read on
7January 1, 2001, because a court order directs pupils to transfer
8to that school district as Part. of the court-ordered voluntary pupil
9transfer program, the Superintendent, commencing with the
102013-14 fiscal year, shall calculate an apportionment of state
11funds for that basic aid school district that provides 70 percent of
12the school district local control funding formula base grant
13calculated pursuant to subdivision (d) of Section 42238.02, as
14implemented by Section 42238.03, that would have been
15apportioned to the school district from which the pupils were
16transferred for the average daily attendance of any pupils credited
17under that court order who did not attend the basic aid school
18district before the 1995-96 fiscal year.

end insert
begin insert

19(2) Notwithstanding paragraph (1), until the Superintendent
20determines that the school district from which the pupil or pupils
21were transferred is funded pursuant to Section 42238.02 in the
22prior fiscal year, the Superintendent shall apportion, for average
23daily attendance credited pursuant to paragraph (1), 70 percent
24of the sum of the entitlements for the school district from which
25the pupil or pupils were transferred for the specified fiscal year
26as computed pursuant to paragraphs (1) to (4), inclusive, of
27subdivision (a), and paragraph (3) of subdivision (b), of Section
2842238.03, divided by the average daily attendance of that school
29district for that fiscal year and then multiplied by the ratio of local
30control formula base grant funding computed pursuant to
31subdivision (d) of Section 42238.02 to the local control funding
32formula amount for that fiscal year computed pursuant to Section
3342238.02.

end insert
begin delete

34(b)

end delete

35begin insert(c)end insert For purposes ofbegin insert subdivision (b) ofend insert this section, “basic aid
36begin insert schoolend insert district” means a school district that does not receive from
37the state, for any fiscal year in which this section is applied, an
38apportionment of state funds pursuant to subdivisionbegin delete (h)end deletebegin insert (o)end insert of
39Sectionbegin delete 42238end deletebegin insert 42238.02end insert.

P50   1begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 42127 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
2read:end insert

3

42127.  

(a) On or before July 1 of each year, the governing
4board of each school district shall accomplish the following:

5(1) Hold a public hearing on the budget to be adopted for the
6subsequent fiscal year. The budget to be adopted shall be prepared
7in accordance with Section 42126. The agenda for that hearing
8shall be posted at least 72 hours before the public hearing and shall
9include the location where the budget will be available for public
10inspection.

11(A) For the 2011-12 fiscal year, notwithstanding any of the
12standards and criteria adopted by the state board pursuant to Section
1333127, each school district budget shall project the same level of
14revenue per unit of average daily attendance as it received in the
152010-11 fiscal year and shall maintain staffing and program levels
16commensurate with that level.

17(B) For the 2011-12 fiscal year, the school district shall not be
18required to demonstrate that it is able to meet its financial
19obligations for the two subsequent fiscal years.

20(2) Adopt a budget. Not later than five days after that adoption
21or by July 1, whichever occurs first, the governing board of the
22school district shall file that budget with the county superintendent
23of schools.begin delete Thatend deletebegin insert Theend insert budget and supporting data shall be
24maintained and made available for public review. If the governing
25board of the school district does not want all or a portion of the
26property tax requirement levied for the purpose of making
27payments for the interest and redemption charges on indebtedness
28as described in paragraph (1) or (2) of subdivision (b) of Section
291 of Article XIII A of the California Constitution, the budget shall
30include a statement of the amount or portion for which a levy shall
31not be made. begin insert For the 2014-15 fiscal year and each fiscal year
32thereafter, the governing board of the school district shall not
33adopt a budget before the governing board of the school district
34adopts a local control and accountability plan, if an existing local
35control and accountability plan or annual update to a local control
36and accountability plan is not effective for the budget year. Theend insert

37begin insert governing board of a school district shall not adopt a budget that
38does not include the expenditures necessary to implement the local
39control and accountability plan or the annual update to a local
P51   1control and accountability plan that is effective during the
2subsequent fiscal year.end insert

3(b) The county superintendent of schools may accept changes
4in any statement included in the budget, pursuant to subdivision
5(a), of the amount or portion for which a property tax levy shall
6not be made. The county superintendent of schools or the county
7auditor shall compute the actual amounts to be levied on the
8property tax rolls of the school district for purposes that exceed
9apportionments to the school district pursuant to Chapter 6
10(commencing with Section 95) of Part 0.5 of Division 1 of the
11Revenue and Taxation Code. Each school district shall provide all
12data needed by the county superintendent of schools or the county
13auditor to compute the amounts. On or before August 15, the
14county superintendent of schools shall transmit the amounts
15computed to the county auditor who shall compute the tax rates
16necessary to produce the amounts. On or before September 1, the
17county auditor shall submit the rate computed to the board of
18supervisors for adoption.

19(c) The county superintendent of schools shall do all of the
20following:

21(1) Examine the adopted budget to determine whether it
22complies with the standards and criteria adopted by the state board
23pursuant to Section 33127 for application to final local educational
24agency budgets. The county superintendent of schools shall
25identify, if necessary, technical corrections that are required to be
26made to bring the budget into compliance with those standards
27and criteria.

28(2) Determine whether the adopted budget will allow the school
29district to meet its financial obligations during the fiscal year and
30is consistent with a financial plan that will enable the school district
31to satisfy its multiyear financial commitments. In addition to his
32or her own analysis of the budget of each school district, the county
33superintendent of schools shall review and consider studies, reports,
34evaluations, or audits of the school district that were commissioned
35by the school district, the county superintendent of schools, the
36Superintendent, and state control agencies and that contain
37evidence that the school district is showing fiscal distress under
38the standards and criteria adopted in Section 33127 or that contain
39a finding by an external reviewer that more than three of the 15
40most common predictors of a school district needing intervention,
P52   1as determined by the County Office Fiscal Crisis and Management
2Assistance Team, are present. The county superintendent of schools
3shall either conditionally approve or disapprove a budget that does
4not provide adequate assurance that the school district will meet
5its current and future obligations and resolve any problems
6identified in studies, reports, evaluations, or audits described in
7this paragraph.

begin insert

8(3) Determine whether the adopted budget includes the
9expenditures necessary to implement the local control and
10accountability plan or annual update to the local control and
11accountability plan approved by the county superintendent of
12schools.

end insert

13(d) On or before August 15, the county superintendent of schools
14shall approve, conditionally approve, or disapprove the adopted
15budget for each school district.begin insert For the 2014-15 fiscal year and
16each fiscal year thereafter, theend insert
begin insert county superintendent of schools
17shall disapprove a budget if the county superintendent of schools
18determines that the budget does not include the expenditures
19necessary to implement a local control and accountability plan or
20an annual update to the local control and accountability plan
21approved by the county superintendent of schools.end insert
If a school
22district does not submit a budget to the county superintendent of
23schools, the county superintendent of schools shall develop, at
24school district expense, a budget for that school district by
25September 15 and transmit that budget to the governing board of
26the school district. The budget prepared by the county
27superintendent of schools shall be deemed adopted, unless the
28county superintendent of schools approves any modifications made
29by the governing board of the school district. The approved budget
30shall be used as a guide for the school district’s priorities. The
31Superintendent shall review and certify the budget approved by
32the county. If, pursuant to the review conducted pursuant to
33subdivision (c), the county superintendent of schools determines
34that the adopted budget for a school district does not satisfy
35paragraph (1) or (2) of that subdivision, he or she shall
36conditionally approve or disapprove the budget and, not later than
37August 15, transmit to the governing board of the school district,
38in writing, his or her recommendations regarding revision of the
39budget and the reasons for those recommendations, including, but
40not limited to, the amounts of any budget adjustments needed
P53   1before he or she can approve that budget. The county
2superintendent of schools may assign a fiscal adviser to assist the
3school district to develop a budget in compliance with those
4revisions. In addition, the county superintendent of schools may
5appoint a committee to examine and comment on the
6superintendent’s review and recommendations, subject to the
7requirement that the committee report its findings to the county
8superintendent of schools no later than August 20. For the 2011-12
9fiscal year, notwithstanding any of the standards and criteria
10adopted by the state board pursuant to Section 33127, the county
11superintendent of schools, as a condition on approval of a school
12district budget, shall not require a school district to project a lower
13level of revenue per unit of average daily attendance than it
14received in the 2010-11 fiscal year nor require the school district
15to demonstrate that it is able to meet its financial obligations for
16the two subsequent fiscal years.

17(e) On or before September 8, the governing board of the school
18district shall revise the adopted budget to reflect changes in
19projected income or expenditures subsequent to July 1, and to
20include any response to the recommendations of the county
21superintendent of schools, shall adopt the revised budget, and shall
22file the revised budget with the county superintendent of schools.
23Before revising the budget, the governing board of the school
24district shall hold a public hearing regarding the proposed revisions,
25to be conducted in accordance with Section 42103. In addition, if
26the adopted budget is disapproved pursuant to subdivision (d), the
27governing board of the school district and the county
28superintendent of schools shall review the disapproval and the
29recommendations of the county superintendent of schools regarding
30revision of the budget at the public hearing. The revised budget
31and supporting data shall be maintained and made available for
32public review.

33(1) For the 2011-12 fiscal year, notwithstanding any of the
34standards and criteria adopted by the state board pursuant to Section
3533127, each school district budget shall project the same level of
36revenue per unit of average daily attendance as it received in the
372010-11 fiscal year and shall maintain staffing and program levels
38commensurate with that level.

P54   1(2) For the 2011-12 fiscal year, the school district shall not be
2required to demonstrate that it is able to meet its financial
3obligations for the two subsequent fiscal years.

4(f) On or before September 22, the county superintendent of
5schools shall provide a list to the Superintendent identifying all
6school districts for which budgets may be disapproved.

7(g) The county superintendent of schools shall examine the
8revised budget to determine whether it (1) complies with the
9standards and criteria adopted by the state board pursuant to Section
1033127 for application to final local educational agency budgets,
11(2) allows the school district to meet its financial obligations during
12the fiscal year, (3) satisfies all conditions established by the county
13superintendent of schools in the case of a conditionally approved
14budget, and (4) is consistent with a financial plan that will enable
15the school district to satisfy its multiyear financial commitments,
16and, not later than October 8, shall approve or disapprove the
17revised budget. If the county superintendent of schools disapproves
18the budget, he or she shall call for the formation of a budget review
19committee pursuant to Section 42127.1, unless the governing board
20of the school district and the county superintendent of schools
21agree to waive the requirement that a budget review committee be
22formed and the department approves the waiver after determining
23that a budget review committee is not necessary. Upon the grant
24of a waiver, the county superintendent of schools immediately has
25the authority and responsibility provided in Section 42127.3. Upon
26approving a waiver of the budget review committee, the department
27shall ensure that a balanced budget is adopted for the school district
28by November 30. If no budget is adopted by November 30, the
29Superintendent may adopt a budget for the school district. The
30Superintendent shall report to the Legislature and the Director of
31Finance by December 10 if any school district, including a school
32district that has received a waiver of the budget review committee
33process, does not have an adopted budget by November 30. This
34report shall include the reasons why a budget has not been adopted
35by the deadline, the steps being taken to finalize budget adoption,
36the date the adopted budget is anticipated, and whether the
37Superintendent has or will exercise his or her authority to adopt a
38budget for the school district. For the 2011-12 fiscal year,
39notwithstanding any of the standards and criteria adopted by the
40state board pursuant to Section 33127, the county superintendent
P55   1of schools, as a condition on approval of a school district budget,
2shall not require a school district to project a lower level of revenue
3per unit of average daily attendance than it received in the 2010-11
4fiscal year nor require the school district to demonstrate that it is
5able to meet its financial obligations for the two subsequent fiscal
6years.

7(h) Not later than October 8, the county superintendent of
8schools shall submit a report to the Superintendent identifying all
9school districts for which budgets have been disapproved or budget
10review committees waived. The report shall include a copy of the
11written response transmitted to each of those school districts
12pursuant to subdivision (d).

13(i) Notwithstanding any other provision of this section, the
14budget review for a school district shall be governed by paragraphs
15(1), (2), and (3), rather than by subdivisions (e) and (g), if the
16governing board of the school district so elects and notifies the
17county superintendent of schools in writing of that decision, not
18later than October 31 of the immediately preceding calendar year.
19On or before July 1, the governing board of a school district for
20which the budget review is governed by this subdivision, rather
21than by subdivisions (e) and (g), shall conduct a public hearing
22regarding its proposed budget in accordance with Section 42103.

23(1) If the adopted budget of a school district is disapproved
24pursuant to subdivision (d), on or before September 8, the
25governing board of the school district, in conjunction with the
26county superintendent of schools, shall review the superintendent’s
27recommendations at a regular meeting of the governing board of
28the school district and respond to those recommendations. The
29response shall include any revisions to the adopted budget and
30other proposed actions to be taken, if any, as a result of those
31recommendations.

32(2) On or before September 22, the county superintendent of
33schools shall provide a list to the Superintendent identifying all
34school districts for which a budget may be tentatively disapproved.

35(3) Not later than October 8, after receiving the response
36required under paragraph (1), the county superintendent of schools
37shall review that response and either approve or disapprove the
38budget. If the county superintendent of schools disapproves the
39budget, he or she shall call for the formation of a budget review
40committee pursuant to Section 42127.1, unless the governing board
P56   1of the school district and the county superintendent of schools
2agree to waive the requirement that a budget review committee be
3formed and the department approves the waiver after determining
4that a budget review committee is not necessary. Upon the grant
5of a waiver, the county superintendent has the authority and
6responsibility provided to a budget review committee in Section
742127.3. Upon approving a waiver of the budget review committee,
8the department shall ensure that a balanced budget is adopted for
9the school district by November 30. The Superintendent shall
10report to the Legislature and the Director of Finance by December
1110 if any school district, including a school district that has received
12a waiver of the budget review committee process, does not have
13an adopted budget by November 30. This report shall include the
14reasons why a budget has not been adopted by the deadline, the
15steps being taken to finalize budget adoption, and the date the
16adopted budget is anticipated. For the 2011-12 fiscal year,
17notwithstanding any of the standards and criteria adopted by the
18state board pursuant to Section 33127, the county superintendent
19of schools, as a condition on approval of a school district budget,
20shall not require a school district to project a lower level of revenue
21per unit of average daily attendance than it received in the 2010-11
22fiscal year nor require the school district to demonstrate that it is
23able to meet its financial obligations for the two subsequent fiscal
24years.

25(4) Not later than 45 days after the Governor signs the annual
26Budget Act, the school district shall make available for public
27review any revisions in revenues and expenditures that it has made
28to its budget to reflect the funding made available by that Budget
29Act.

30(j) Any school district for which the county board of education
31serves as the governing board of the school district is not subject
32to subdivisions (c) to (h), inclusive, but is governed instead by the
33budget procedures set forth in Section 1622.

34begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 42238 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
35read:end insert

36

42238.  

(a) For the 1984-85 fiscal year and each fiscal year
37thereafter, the county superintendent of schools shall determine a
38revenue limit for each school district in the county pursuant to this
39section.

P57   1(b) The base revenue limit for a fiscal year shall be determined
2by adding to the base revenue limit for the prior fiscal year the
3following amounts:

4(1) The inflation adjustment specified in Section 42238.1.

5(2) For the 1995-96 fiscal year, the equalization adjustment
6specified in Section 42238.4.

7(3) For the 1996-97 fiscal year, the equalization adjustments
8specified in Sections 42238.41, 42238.42, and 42238.43.

9(4) For the 1985-86 fiscal year, the amount per unit of average
10daily attendance received in the 1984-85 fiscal year pursuant to
11Section 42238.7.

12(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the
13amount per unit of average daily attendance received in the prior
14fiscal year pursuant to Section 42238.8.

15(6) For the 2004-05 fiscal year, the equalization adjustment
16specified in Section 42238.44.

17(7) For the 2006-07 fiscal year, the equalization adjustment
18specified in Section 42238.48.

19(8) For the 2011-12 fiscal year, the equalization adjustment
20specified in Section 42238.49.

21(c) (1) (A) For the 2010-11 fiscal year, the Superintendent
22shall compute an add-on for each school district by adding the
23inflation adjustment specified in Section 42238.1 to the adjustment
24specified in Section 42238.485.

25(B) For the 2011-12 fiscal year and each fiscal year thereafter,
26the Superintendent shall compute an add-on for each school district
27by adding the inflation adjustment specified in Section 42238.1 to
28the amount computed pursuant to this paragraph for the prior fiscal
29year.

30(2) Commencing with the 2010-11 fiscal year, the
31Superintendent shall compute an add-on for each school district
32by dividing each school district’s fiscal year average daily
33attendance computed pursuant to Section 42238.5 by the total
34adjustments in funding for each district made for the 2007-08
35fiscal year pursuant to Section 42238.22 as it read on January 1,
362009.

37(d) The sum of the base revenue limit computed pursuant to
38subdivision (b) and the add-on computed pursuant to subdivision
39(c) shall be multiplied by the district average daily attendance
40computed pursuant to Section 42238.5.

P58   1(e) For districts electing to compute units of average daily
2attendance pursuant to paragraph (2) of subdivision (a) of Section
342238.5, the amount computed pursuant to Article 4 (commencing
4with Section 42280) shall be added to the amount computed in
5subdivision (c) or (d), as appropriate.

6(f) For the 1984-85 fiscal year only, the county superintendent
7shall reduce the total revenue limit computed in this section by the
8amount of the decreased employer contributions to the Public
9Employees’ Retirement System resulting from enactment of
10Chapter 330 of the Statutes of 1982, offset by any increase in those
11contributions, as of the 1983-84 fiscal year, resulting from
12subsequent changes in employer contribution rates.

13(g) The reduction required by subdivision (f) shall be calculated
14as follows:

15(1) Determine the amount of employer contributions that would
16have been made in the 1983-84 fiscal year if the applicable Public
17Employees’ Retirement System employer contribution rate in effect
18immediately before the enactment of Chapter 330 of the Statutes
19of 1982 was in effect during the 1983-84 fiscal year.

20(2) Subtract from the amount determined in paragraph (1) the
21greater of subparagraph (A) or (B):

22(A) The amount of employer contributions that would have been
23made in the 1983-84 fiscal year if the applicable Public
24Employees’ Retirement System employer contribution rate in effect
25immediately after the enactment of Chapter 330 of the Statutes of
261982 was in effect during the 1983-84 fiscal year.

27(B) The actual amount of employer contributions made to the
28Public Employees’ Retirement System in the 1983-84 fiscal year.

29(3) For purposes of this subdivision, employer contributions to
30the Public Employees’ Retirement System for either of the
31following shall be excluded from the calculation specified above:

32(A) Positions supported totally by federal funds that were subject
33to supplanting restrictions.

34(B) Positions supported, to the extent of employer contributions
35not exceeding twenty-five thousand dollars ($25,000) by a single
36educational agency, from a revenue source determined on the basis
37of equity to be properly excludable from the provisions of this
38subdivision by the Superintendent with the approval of the Director
39of Finance.

P59   1(4) For accounting purposes, the reduction made by this
2subdivision may be reflected as an expenditure from appropriate
3sources of revenue as directed by the Superintendent.

4(h) The Superintendent shall apportion to each school district
5the amount determined in this section less the sum of:

6(1) The district’s property tax revenue received pursuant to
7Chapter 3.5 (commencing with Section 75) and Chapter 6
8(commencing with Section 95) of Part 0.5 of Division 1 of the
9Revenue and Taxation Code.

10(2) The amount, if any, received pursuant to Part 18.5
11(commencing with Section 38101) of Division 2 of the Revenue
12and Taxation Code.

13(3) The amount, if any, received pursuant to Chapter 3
14(commencing with Section 16140) of Part 1 of Division 4 of Title
152 of the Government Code.

16(4) Prior years’ taxes and taxes on the unsecured roll.

17(5) Fifty percent of the amount received pursuant to Section
1841603.

19(6) (A) The amount, if any, received pursuant to the Community
20Redevelopment Law (Part 1 (commencing with Section 33000)
21of Division 24 of the Health and Safety Code), except for any
22amount received pursuant to Section 33401 or 33676 of the Health
23and Safety Code that is used for land acquisition, facility
24construction, reconstruction, or remodeling, or deferred
25maintenance, except for any amount received pursuant to Section
2633492.15 of, paragraph (4) of subdivision (a) of Section 33607.5
27of, or Section 33607.7 of, the Health and Safety Code that is
28allocated exclusively for educational facilities.

29(B) The amount, if any, received pursuant to Sections 34177,
3034179.5, 34179.6, and 34188 of the Health and Safety Code.

31(C) The amount, if any, received pursuant to subparagraph (B)
32of paragraph (3) of subdivision (e) of Section 36 of Article XIII
33of the California Constitution.

34(7) For a unified school district, other than a unified school
35district that has converted all of its schools to charter status
36pursuant to Section 47606, the amount of statewide average
37general-purpose funding per unit of average daily attendance
38received by school districts for each of four grade level ranges, as
39computed by the department pursuant to Section 47633, multiplied
40by the average daily attendance, in corresponding grade level
P60   1ranges, of any pupils who attend charter schools funded pursuant
2to Chapter 6 (commencing with Section 47630) of Part 26.8 of
3Division 4 for which the school district is the sponsoring local
4educational agency, as defined in Section 47632, and who reside
5in and would otherwise have been eligible to attend a noncharter
6school of the school district.

7(i) A transfer of pupils of grades 7 and 8 between an elementary
8school district and a high school district shall not result in the
9receiving school district receiving a revenue limit apportionment
10for those pupils that exceeds 105 percent of the statewide average
11revenue limit for the type and size of the receiving school district.

begin insert

12(j) Commencing with the 2013-14 fiscal year, this section shall
13be used only for purposes of allocating revenues received pursuant
14to subparagraph (B) of paragraph (3) of subdivision (e) of Section
1536 of Article XIII of the California Constitution.

end insert
begin insert

16(k) This section shall become inoperative on July 1, 2021, and,
17as of January 1, 2022, is repealed, unless a later enacted statute,
18that becomes operative on or before January 1, 2022, deletes or
19extends the dates on which it becomes inoperative and is repealed.

end insert
20begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 42238.01 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
21read:end insert

begin insert
22

begin insert42238.01.end insert  

For purposes of Section 42238.02, the following
23definitions shall apply:

24(a) “Eligible for free or reduced-price meal” means determined
25to meet federal eligibility criteria for free or reduced-price meals
26as specified in Section 49531, as that section read on January 1,
272013, except in regard to meals in family day care homes.

28(b) “Foster youth” means a foster child, as described in
29subdivision (a) of Section 48853.5, or a nonminor under the
30transition jurisdiction of the juvenile court, as described in Section
31450 of the Welfare and Institutions Code, who satisfies all of the
32following criteria:

33(1) He or she has attained 18 years of age while under an order
34of foster care placement by the juvenile court, and is not more
35than 19 years of age on or after January 1, 2012, not more than
3620 years of age on or after January 1, 2013, and not more than
3721 years of age, on or after January 1, 2014, and as described in
38Section 10103.5 of the Welfare and Institutions Code.

39(2) He or she is in foster care under the placement and care
40responsibility of the county welfare department, county probation
P61   1department, Indian tribe, consortium of tribes, or tribal
2organization that entered into an agreement pursuant to Section
310553.1 of the Welfare and Institutions Code.

4(3) He or she is participating in a transitional independent
5living case plan pursuant to Section 475(8) of the federal Social
6Security Act (42 U.S.C. Sec. 675(8)), as contained in the federal
7Fostering Connections to Success and Increasing Adoptions Act
8of 2008 (Public Law 110-351), as described in Section 11403 of
9the Welfare and Institutions Code.

10(c) “Pupils of limited English proficiency” means pupils who
11do not have the clearly developed English language skills of
12comprehension, speaking, reading, and writing necessary to receive
13instruction only in English at a level substantially equivalent to
14pupils of the same age or grade whose primary language is
15English. “English learner” shall have the same meaning as is
16provided for in subdivision (a) of Section 306 and as “pupils of
17limited English proficiency.”

end insert
18begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 42238.02 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
19read:end insert

begin insert
20

begin insert42238.02.end insert  

(a) The amount computed pursuant to this section
21shall be known as the school district and charter school local
22control funding formula.

23(b) (1) For purposes of this section “unduplicated pupil” means
24a pupil enrolled in a school district or a charter school who is
25either classified as an English learner, eligible to receive a free
26or reduced-price meal, or is a foster youth. A pupil shall be counted
27only once for purposes of this section if any of the following apply:

28(A) The pupil is classified as an English learner and is eligible
29for a free or reduced-price meal.

30(B) The pupil is classified as an English learner and is a foster
31youth.

32(C) The pupil is eligible for a free or reduced-price meal and
33is classified as a foster youth.

34(D) The pupil is classified as an English learner, is eligible for
35a free or reduced-price meal, and is a foster youth.

36(2) Commencing with the 2013-14 fiscal year, a school district
37or charter school shall annually report its enrolled free and
38reduced-price meal eligibility, foster youth, and English learner
39pupil-level records to the Superintendent using the California
40Longitudinal Pupil Achievement Data System.

P62   1(3) (A) Commencing with the 2013-14 fiscal year, a county
2office of education shall review and validate reported English
3learner, foster youth, and free or reduced-price meal eligible pupil
4data for school districts and charter schools under its jurisdiction
5to ensure the data is reported accurately. The Superintendent shall
6provide each county office of education with appropriate access
7to school district and charter school data reports in the California
8Longitudinal Pupil Achievement Data System for purposes of
9ensuring data reporting accuracy.

10(B) The Controller shall include the instructions necessary to
11enforce paragraph (2) in the audit guide required by Section
1214502.1. The instructions shall include, but are not necessarily
13limited to, procedures for determining if the English learner, foster
14youth, and free or reduced-price meal eligible pupil counts are
15consistent with the school district’s or charter school’s English
16learner, foster youth, and free or reduced-price meal eligible pupil
17records.

18(4) The Superintendent shall make the calculations pursuant to
19this section using the data submitted by local educational agencies,
20including charter schools, through the California Longitudinal
21Pupil Achievement Data System. The Superintendent shall
22authorize school districts and charter schools to review and revise,
23as necessary, their submitted data on English learner, foster youth,
24and free or reduced-price meal eligible pupil counts to ensure the
25accuracy of data reflected in the California Longitudinal Pupil
26Achievement Data System.

27(5) The Superintendent shall annually compute the percentage
28of unduplicated pupils for each school district and charter school
29by dividing the enrollment of unduplicated pupils in a school
30district or charter school by the total enrollment in that school
31district or charter school pursuant to all of the following:

32(A) For the 2013-14 fiscal year, divide the sum of unduplicated
33pupils for the 2013-14 fiscal year by the sum of the total pupil
34enrollment for the 2013-14 fiscal year.

35(B) For the 2014-15 fiscal year, divide the sum of unduplicated
36pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
37total pupil enrollment for the 2013-14 and 2014-15 fiscal years.

38(C) For the 2015-16 fiscal year and each fiscal year thereafter,
39divide the sum of unduplicated pupils for the current fiscal year
P63   1and the two prior fiscal years by the sum of the total pupil
2enrollment for the current fiscal year and the two prior fiscal years.

3(c) Commencing with the 2013-14 fiscal year and each fiscal
4year thereafter, the Superintendent shall annually calculate a local
5control funding formula grant for each school district and charter
6school in the state pursuant to this section.

7(d) The Superintendent shall compute a grade span adjusted
8base grant equal to the total of the following amounts:

9(1) For the 2013-14 fiscal year, a base grant of:

10(A) Six thousand eight hundred forty-five dollars ($6,845) for
11average daily attendance in kindergarten and grades 1 to 3,
12inclusive.

13(B) Six thousand nine hundred forty-seven dollars ($6,947) for
14average daily attendance in grades 4 to 6, inclusive.

15(C) Seven thousand one hundred fifty-four dollars ($7,154) for
16average daily attendance in grades 7 and 8.

17(D) Eight thousand two hundred eighty-nine dollars ($8,289)
18for average daily attendance in grades 9 to 12, inclusive.

19(2) In each year the grade span adjusted base grants in
20paragraph (1) shall be adjusted by the percentage change in the
21annual average value of the Implicit Price Deflator for State and
22Local Government Purchases of Goods and Services for the United
23States, as published by the United States Department of Commerce
24for the 12-month period ending in the third quarter of the prior
25fiscal year. This percentage change shall be determined using the
26latest data available as of May 10 of the preceding fiscal year
27compared with the annual average value of the same deflator for
28the 12-month period ending in the third quarter of the second
29preceding fiscal year, using the latest data available as of May 10
30of the preceding fiscal year, as reported by the Department of
31Finance.

32(3) (A) The Superintendent shall compute an additional
33adjustment to the kindergarten and grades 1 to 3, inclusive, base
34grant as adjusted for inflation pursuant to paragraph (2) equal to
3510.4 percent. The additional grant shall be calculated by
36multiplying the kindergarten and grades 1 to 3, inclusive, base
37grant as adjusted by paragraph (2) by 10.4 percent.

38(B) Until paragraph (4) of subdivision (b) of Section 42238.03
39is effective, as a condition of the receipt of funds in this paragraph,
40a school district shall make progress toward maintaining an
P64   1average class enrollment of not more than 24 pupils for each
2schoolsite in kindergarten and grades 1 to 3, inclusive, unless a
3collectively bargained alternative annual average class enrollment
4for each schoolsite in those grades is agreed to by the school
5district, pursuant to the following calculation:

6(i) Determine a school district’s average class enrollment for
7each schoolsite for kindergarten and grades 1 to 3, inclusive, in
8the prior year. For the 2013-14 fiscal year, this amount shall be
9the average class enrollment for each schoolsite for kindergarten
10and grades 1 to 3, inclusive, in the 2012-13 fiscal year.

11(ii) Determine a school district’s percentage of total need
12pursuant to paragraph (2) of subdivision (b) of Section 42238.03.

13(iii) Determine the percentage of the need calculated in clause
14(ii) that is met by funding provided to the school district pursuant
15to paragraph (3) of subdivision (b) of Section 42238.03.

16(iv) Determine the difference between the amount computed
17pursuant to clause (i) and an average class enrollment of not more
18than 24 pupils.

19(v) Calculate a current year average class enrollment adjustment
20for each schoolsite for kindergarten and grades 1 to 3, inclusive,
21equal to the adjustment calculated in clause (iv) multiplied by the
22percentage determined pursuant to clause (iii).

23(C) School districts that have an average class enrollment for
24each schoolsite for kindergarten and grades 1 to 3, inclusive, of
2524 pupils or less for each schoolsite in the 2012-13 fiscal year,
26shall be exempt from the requirements of subparagraph (B) so
27long as the school district continues to maintain an average class
28enrollment for each schoolsite for kindergarten and grades 1 to
293, inclusive, of not more than 24 pupils, unless a collectively
30bargained alternative ratio is agreed to by the school district.

31(D) Upon full implementation of the local control funding
32formula, as a condition of the receipt of funds in this paragraph,
33all school districts shall maintain an average class enrollment for
34each schoolsite for kindergarten and grades 1 to 3, inclusive, of
35not more than 24 pupils for each schoolsite in kindergarten and
36grades 1 to 3, inclusive, unless a collectively bargained alternative
37ratio is agreed to by the school district.

38(E) The average class enrollment requirement for each
39schoolsite for kindergarten and grades 1 to 3, inclusive, established
P65   1pursuant to this paragraph shall not be subject to waiver by the
2state board pursuant to Section 33050 or by the Superintendent.

3(F) The Controller shall include the instructions necessary to
4enforce this paragraph in the audit guide required by Section
514502.1. The instructions shall include, but are not necessarily
6limited to, procedures for determining if the average class
7enrollment for each schoolsite for kindergarten and grades 1 to
83, inclusive, exceeds 24, or an alternative average class enrollment
9for each schoolsite pursuant to a collectively bargained alternative
10ratio. The procedures for determining average class enrollment
11for each schoolsite shall include criteria for employing sampling.

12(4) (A) The Superintendent shall compute an additional
13adjustment to the base grant for grades 9 to 12, inclusive, as
14adjusted for inflation pursuant to paragraph (2), equal to 2.6
15percent. The additional grant shall be calculated by multiplying
16the base grant for grades 9 to 12, inclusive, as adjusted by
17paragraph (2), by 2.6 percent.

18(B) A school district or charter school shall expend funds
19appropriated pursuant to this paragraph on pupils enrolled in
20grades 9 to 12, inclusive, for any purposes or programs that
21support a school district or charter school in achieving its goals
22for college and career readiness as described in a school district’s
23local control and accountability plan pursuant to subparagraph
24(C) of paragraph (4) of subdivision (d) of Section 52060, or a
25charter school’s plan pursuant to Section 47605, 47605.6, or
2647606.5, as applicable.

27(C) As a condition of the receipt of funds pursuant to this
28paragraph, a school district or charter school shall report such
29pupil-level college and career readiness information as may be
30approved by the state board to implement subparagraph (ii) of
31subparagraph (F) of paragraph (4) of subdivision (a) of Section
3252052.

33(D) Funds apportioned pursuant to this paragraph are
34specifically intended to fund, and shall be first used to offset, the
35costs of any new programs or higher levels of service required by
36this paragraph.

37(e) The Superintendent shall compute a supplemental grant
38add-on equal to 20 percent of the base grants as specified in
39subparagraphs (A) to (D), inclusive, of paragraph (1) of
40subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of
P66   1subdivision (d), for each school district’s or charter school’s
2percentage of unduplicated pupils calculated pursuant to
3paragraph (5) of subdivision (b). The supplemental grant shall be
4calculated by multiplying the base grants as specified in
5subparagraphs (A) to (D), inclusive, of paragraph (1), as adjusted
6by paragraphs (2) to (4), inclusive, of subdivision (d), by 20 percent
7and by the percentage of unduplicated pupils calculated pursuant
8to paragraph (5) of subdivision (b) in that school district or charter
9school. The supplemental grant shall be expended in accordance
10with the regulations adopted pursuant to Section 42238.07.

11(f) The Superintendent shall compute a concentration grant
12add-on equal to 50 percent of the base grants as specified in
13subparagraphs (A) to (D), inclusive, of paragraph (1) of
14subdivision (d), as adjusted by paragraphs (2) to (4), inclusive, of
15subdivision (d), for each school district’s or charter school’s
16percentage of unduplicated pupils calculated pursuant to
17paragraph (5) of subdivision (b) in excess of 55 percent of the
18school district’s or charter school’s total enrollment. The
19concentration grant shall be calculated by multiplying the base
20grant as specified in subparagraphs (A) to (D), inclusive, of
21paragraph (1) of subdivision (d), as adjusted by paragraphs (2)
22to (4), inclusive, of subdivision (d), by 50 percent and by the
23percentage of unduplicated pupils calculated pursuant to
24paragraph (5) of subdivision (b) in excess of 55 percent of the total
25enrollment in that school district or charter school. For a charter
26school physically located in only one school district, the percentage
27of unduplicated pupils calculated pursuant to paragraph (5) of
28subdivision (b) in excess of 55 percent used to calculate
29concentration grants shall not exceed the percentage of
30unduplicated pupils calculated pursuant to paragraph (5) of
31subdivision (b) in excess of 55 percent of the school district in
32which the charter school is physically located. For a charter school
33physically located in more than one school district, the charter
34school’s percentage of unduplicated pupils calculated pursuant
35to paragraph (5) of subdivision (b) in excess of 55 percent used
36to calculate concentration grants shall not exceed that of the school
37district with the highest percentage of unduplicated pupils
38calculated pursuant to paragraph (5) of subdivision (b) in excess
39of 55 percent of the school districts in which the charter school
40has a school facility. The concentration grant shall be expended
P67   1in accordance with the regulations adopted pursuant to Section
242238.07.

3(g) The Superintendent shall compute an add-on to the total
4sum of a school district’s or charter school’s base, supplemental,
5and concentration grants equal to the amount of funding a school
6district or charter school received from funds allocated pursuant
7to the Targeted Instructional Improvement Block Grant program,
8as set forth in Article 6 (commencing with Section 41540) of
9Chapter 3.2, for the 2012-13 fiscal year, as that article read on
10January 1, 2013. A school district or charter school shall not
11receive a total funding amount from this add-on greater than the
12total amount of funding received by the school district or charter
13school from that program in the 2012-13 fiscal year. The amount
14computed pursuant to this subdivision shall reflect the reduction
15specified in paragraph (2) of subdivision (a) of Section 42238.03.

16(h) The Superintendent shall compute an add-on to the total
17sum of a school district’s or charter school’s base, supplemental,
18and concentration grants equal to the amount of funding a school
19district or charter school received from funds allocated pursuant
20to the Home-to-School Transportation program, as set forth in
21former Article 2 (commencing with Section 39820) of Chapter 1
22of Part 23.5, former Article 10 (commencing with Section 41850)
23of Chapter 5, and the Small School District Transportation
24program, as set forth in former Article 4.5 (commencing with
25Section 42290), for the 2012-13 fiscal year. A school district or
26charter school shall not receive a total funding amount from this
27add-on greater than the total amount received by the school district
28or charter school for that program in the 2012-13 fiscal year. The
29amount computed pursuant to this subdivision shall reflect the
30reduction specified in paragraph (2) of subdivision (a) of Section
3142238.03.

32(i) (1) The sum of the local control funding formula rates
33computed pursuant to subdivisions (c) to (f), inclusive, shall be
34multiplied by:

35(A) For school districts, the average daily attendance of the
36school district in the corresponding grade level ranges computed
37pursuant to Section 42238.05.

38(B) For charter schools, the total current year average daily
39attendance in the corresponding grade level ranges.

P68   1(2) (A) The amount computed pursuant to Article 4
2(commencing with Section 42280) shall be added to the amount
3computed pursuant to paragraphs (1) to (4), inclusive, of
4subdivision (d), as multiplied by subparagraph (A) or (B) of
5paragraph (1), as appropriate.

6(B) The amount added pursuant to this paragraph shall not
7change the calculation of a school district’s or charter school’s
8supplemental grant or concentration grant.

9(j) The Superintendent shall adjust the sum of each school
10district’s or charter school’s amount determined in subdivisions
11(g) to (i), inclusive, pursuant to the calculation specified in Section
1242238.03, less the sum of the following:

13(1) (A) For school districts, the property tax revenue received
14pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
156 (commencing with Section 95) of Part 0.5 of Division 1 of the
16Revenue and Taxation Code.

17(B) For charter schools, the in-lieu property tax amount
18provided to a charter school pursuant to Section 47635.

19(2) The amount, if any, received pursuant to Part 18.5
20(commencing with Section 38101) of Division 2 of the Revenue
21and Taxation Code.

22(3) The amount, if any, received pursuant to Chapter 3
23(commencing with Section 16140) of Part 1 of Division 4 of Title
242 of the Government Code.

25(4) Prior years’ taxes and taxes on the unsecured roll.

26(5) Fifty percent of the amount received pursuant to Section
2741603.

28(6) The amount, if any, received pursuant to the Community
29Redevelopment Law (Part 1 (commencing with Section 33000) of
30Division 24 of the Health and Safety Code), less any amount
31received pursuant to Section 33401 or 33676 of the Health and
32Safety Code that is used for land acquisition, facility construction,
33reconstruction, or remodeling, or deferred maintenance and that
34is not an amount received pursuant to Section 33492.15, or
35paragraph (4) of subdivision (a) of Section 33607.5, or Section
3633607.7 of the Health and Safety Code that is allocated exclusively
37for educational facilities.

38(7) The amount, if any, received pursuant to Sections 34183
39and 34188 of the Health and Safety Code.

P69   1(8) Revenue received pursuant to subparagraph (B) of
2paragraph (3) of subdivision (e) of Section 36 of Article XIII of
3the California Constitution.

4(k) A school district shall annually transfer to each of its charter
5schools funding in lieu of property taxes pursuant to Section 47635.

6(l) (1) Nothing in this section shall be interpreted to authorize
7a school district that receives funding on behalf of a charter school
8pursuant to Section 47651 to redirect this funding for another
9purpose unless otherwise authorized in law pursuant to paragraph
10(2) or pursuant to an agreement between a charter school and its
11chartering authority.

12(2) A school district that receives funding on behalf of a locally
13funded charter school pursuant to paragraph (2) of subdivision
14(b) of Section 42605, Section 42606, and subdivision (b) of Section
1547634 in the 2012-13 fiscal year may annually redirect for another
16purpose a percentage of the amount of the funding received on
17behalf of that charter school. The percentage of funding that may
18be redirected shall be determined pursuant to the following
19computation:

20(A) (i) Determine the sum of the need fulfilled for that charter
21school pursuant to paragraph (3) of subdivision (b) of Section
2242238.03 in the then current fiscal year for the charter school.

23(ii) Determine the sum of the need fulfilled in every fiscal year
24before the then current fiscal year pursuant to paragraph (3) of
25subdivision (b) of Section 42238.03 adjusted for changes in average
26daily attendance pursuant to paragraph (3) of subdivision (a) of
27Section 42238.03 for the charter school.

28(iii) Subtract the amount computed pursuant to paragraphs (1)
29to (3), inclusive, of subdivision (a) of Section 42238.03 from the
30amount computed for that charter school under the local control
31funding formula entitlement computed pursuant to subdivision (i)
32of Section 42238.02.

33(iv) Compute a percentage by dividing the sum of the amounts
34computed to clauses (i) and (ii) by the amount computed pursuant
35to clause (iii).

36(B) Multiply the percentage computed pursuant to subparagraph
37(A) by the amount of funding the school district received on behalf
38of the charter school pursuant to paragraph (2) of subdivision (b)
39of Section 42605, Section 42606, and subdivision (b) of Section
4047634 for the 2012-13 fiscal year.

P70   1(C) The maximum amount that may be redirected shall be the
2lesser of the amount of funding the school district received on
3behalf of the charter school pursuant to paragraph (2) of
4subdivision (b) of Section 42605, Section 42606, and subdivision
5(b) of Section 47634 for the 2012-13 fiscal year or the amount
6computed pursuant to subparagraph (B).

7(3) Commencing with the 2013-14 fiscal year, a school district
8operating one or more affiliated charter schools shall provide
9each affiliated charter school schoolsite with no less than the
10amount of funding the schoolsite received pursuant to the charter
11school block grant in the 2012-13 fiscal year.

12(n) Any calculations in law that are used for purposes of
13determining if a local educational agency is an excess tax school
14entity or basic aid school district, including, but not limited to,
15this section and Sections 42238.03, 41544, 47660, 47632, 47663,
1648310, and 48359.5, and Section 95 of the Revenue and Taxation
17Code, shall be made exclusive of the revenue received pursuant
18to subparagraph (B) of paragraph (3) of subdivision (e) of Section
1936 of Article XIII of the California Constitution.

20(o) A school district that does not receive an apportionment of
21state funds pursuant to this section as implemented pursuant to
22Section 42238.03, excluding funds apportioned pursuant to the
23requirements of subdivision (d) of Section 42238.03 shall be
24considered a “basic aid school district” or an “excess tax entity.”

25(p) The funds apportioned pursuant to this section and Section
2642238.03 shall be available to implement the activities required
27pursuant to Article 4.5 (commencing with Section 52060) of
28Chapter 6.1 of Part 28 of Division 4 of Title 2.

end insert
29begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 42238.025 is added to the end insertbegin insertEducation Codeend insertbegin insert,
30to read:end insert

begin insert
31

begin insert42238.025.end insert  

(a) In the 2013-14 fiscal year, the Superintendent
32shall compute an economic recovery target rate for each school
33district and charter school equal to the sum of the following:

34(1) (A) For each school district, the school district’s revenue
35limit in the 2012-13 fiscal year as computed pursuant to this
36article, as this article read on January 1, 2013, divided by the
372012-13 fiscal year average daily attendance of the school district
38computed pursuant to Section 42238.05.

39(B) For each charter school, the charter school’s general
40purpose funding as computed pursuant to Article 2 (commencing
P71   1with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as
2that article read on January 1, 2013, and the in-lieu property tax
3amount provided to the charter school pursuant to Section 47635,
4as that section read on January 1, 2013, divided by the 2012-13
5fiscal year average daily attendance of the school district computed
6pursuant to Section 42238.05.

7(C) The amounts determined pursuant to subparagraphs (A)
8and (B) of this paragraph shall not reflect the deficit factor
9adjustments set forth in Section 42238.146 as that section read on
10January 1, 2013.

11(D) The amounts determined pursuant to this subdivision shall
12be adjusted for the cost of living for the 2013-14 fiscal year
13pursuant to paragraph (2) of subdivision (d) of Section 42238.02
14and an annual average cost-of-living adjustment of 1.94 percent
15for the 2014-15 fiscal year to the 2020-21 fiscal year, inclusive.

16(2) (A) For each school district and charter school the sum of
17the entitlements from items contained in Section 2.00 of the Budget
18Act of 2012 for Items 6110-104-0001, 6110-105-0001,
196110-108-0001, 6110-111-0001, 6110-124-0001, 6110-128-0001,
206110-137-0001, 6110-144-0001, 6110-156-0001, 6110-181-0001,
216110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
226110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
236110-209-0001, 6110-211-0001, 6110-212-0001, 6110-227-0001,
246110-228-0001, 6110-232-0001, 6110-240-0001, 6110-242-0001,
256110-243-0001, 6110-244-0001, 6110-245-0001, 6110-246-0001,
266110-247-0001, 6110-248-0001, 6110-260-0001, 6110-265-0001,
276110-267-0001, 6110-268-0001, 6360-101-0001, 2012-13 fiscal
28year funding for the Class Size Reduction Program pursuant to
29Chapter 6.10 (commencing with Section 52120) of Part 28 of
30Division 4, as it read on January 1, 2013, and 2012-13 fiscal year
31funding for the community day school mandatorily expelled pupils
32program pursuant to subdivision (c) of Section 48915, divided by
33the 2012-13 fiscal year average daily attendance of the school
34district computed pursuant to Section 42238.05.

35(B) The amounts determined pursuant to this subdivision shall
36not be adjusted for the reduction set forth in Section 12.42 of the
37Budget Act of 2012.

38(b) Of the amounts computed for school districts pursuant to
39subdivision (a), the Superintendent shall determine the funding
40rate per unit of average daily attendance above which fall not
P72   1more than 10 percent of the total number of school districts
2statewide.

3(c) The Superintendent shall compute a 2020-21 fiscal year
4local control funding formula rate for each school district and
5charter school equal to the amount computed pursuant to section
642238.02 for the 2013-14 fiscal year, adjusted for an annual
7average cost-of-living adjustment of 1.94 percent for the 2014-15
8fiscal year to the 2020-21 fiscal year, inclusive, divided by the
92012-13 fiscal year average daily attendance of the school district
10or charter school computed pursuant to Section 42238.05.

11(d) (1) For each school district and charter school that has a
12funding rate per unit of average daily attendance computed
13pursuant to subdivision (a) that is equal to, or below, the funding
14rate per unit of average daily attendance determined pursuant to
15subdivision (b), the Superintendent shall subtract the amount
16computed pursuant to subdivision (c) from the amount computed
17pursuant to subdivision (a). Each school district or charter school
18for which this calculation yields an amount greater than zero shall
19be eligible for an economic recovery target payment equal to the
20amount of the difference. A school district or charter school that
21has a funding rate per unit of average daily attendance calculated
22pursuant to subdivision (a) that exceeds the rate calculated
23pursuant to subdivision (b) shall not be eligible for an economic
24recovery target payment.

25(2) Each school district or charter school eligible for an
26economic recovery target payment pursuant to paragraph (1) shall
27receive the following apportionments:

28(A) For the 2013-14 fiscal year, one-eighth of the amount
29calculated pursuant to paragraph (1) multiplied by the 2012-13
30fiscal year average daily attendance computed pursuant to Section
3142238.05.

32(B) For the 2014-15 fiscal year, two-eighths of the amount
33calculated pursuant to paragraph (1) multiplied by the 2012-13
34fiscal year average daily attendance computed pursuant to Section
3542238.05.

36(C) For the 2015-16 fiscal year, three-eighths of the amount
37calculated pursuant to paragraph (1) multiplied by the 2012-13
38fiscal year average daily attendance computed pursuant to Section
3942238.05.

P73   1(D) For the 2016-17 fiscal year, four-eighths of the amount
2calculated pursuant to paragraph (1) multiplied by the 2012-13
3fiscal year average daily attendance computed pursuant to Section
442238.05.

5(E) For the 2017-18 fiscal year, five-eighths of the amount
6calculated pursuant to paragraph (1) multiplied by the 2012-13
7fiscal year average daily attendance computed pursuant to Section
842238.05.

9(F) For the 2018-19 fiscal year, six-eighths of the amount
10calculated pursuant to paragraph (1) multiplied by the 2012-13
11fiscal year average daily attendance computed pursuant to Section
1242238.05.

13(G) For the 2019-20 fiscal year, seven-eighths of the amount
14calculated pursuant to paragraph (1) multiplied by the 2012-13
15fiscal year average daily attendance computed pursuant to Section
1642238.05.

17(H) For the 2020-21 fiscal year and each fiscal year thereafter,
18the amount calculated pursuant to paragraph (1) multiplied by
19the 2012-13 fiscal year average daily attendance computed
20pursuant to Section 42238.05.

21(3) In each fiscal year until a determination has been made that
22all school districts and charter schools equal or exceed the local
23control funding formula target computed pursuant to Section
2442238.02, as determined by the calculation of a zero difference
25pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
26the economic recovery target payment apportioned to each eligible
27school district or charter school pursuant to paragraph (2) shall
28be added to the school district’s or charter school’s funding
29amounts that are continuously appropriated pursuant to
30subdivision (a) of Section 42238.03 and included in the amount
31of funding that may be offset pursuant to subdivision (c) of Section
3242238.03. The amount apportioned pursuant to paragraph (2)
33shall not receive a cost-of-living adjustment.

34(4) Commencing with the first fiscal year in which all school
35districts and charter schools are apportioned funding pursuant to
36Section 42238.02, the economic recovery target payment amount
37calculated pursuant to paragraph (2) for the applicable fiscal year
38shall be included as an add-on to the amounts computed pursuant
39to subdivisions (c) to (i), inclusive, of Section 42238.02 and
40included in the amount of funding that may be offset pursuant to
P74   1subdivision (j) of Section 42238.02. The amount included as an
2add-on pursuant to this paragraph shall not receive a cost-of-living
3adjustment.

end insert
4begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 42238.03 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert42238.03.end insert  

(a) Commencing with the 2013-14 fiscal year and
7each fiscal year thereafter, the Superintendent shall calculate a
8base entitlement for the transition to the local control funding
9formula for each school district and charter school equal to the
10sum of the amounts computed pursuant to paragraphs (1) to (4),
11inclusive. The amounts computed pursuant to paragraphs (1) to
12(6), inclusive, shall be continuously appropriated pursuant to
13Section 14002.

14(1) The current fiscal year base entitlement funding level shall
15be the sum of all of the following:

16(A) For school districts, revenue limits in the 2012-13 fiscal
17year as computed pursuant to Article 2 (commencing with Section
1842238), as that article read on January 1, 2013, divided by the
192012-13 average daily attendance of the school district computed
20pursuant to Section 42238.05. That quotient shall be multiplied
21by the current fiscal year average daily attendance of the school
22district computed pursuant Section 42238.05.

23(B) (i) For charter schools, general purpose funding as
24computed pursuant to Article 2 (commencing with Section 47633)
25of Chapter 6, as that article read on January 1, 2013, and the
26amount of in-lieu property tax provided to the charter school
27pursuant to Section 47635, as that section read on June 30, 2013,
28divided by the 2012-13 average daily attendance of the charter
29school computed pursuant to Section 42238.05. That quotient shall
30be multiplied by the current fiscal year average daily attendance
31of the charter school computed pursuant to Section 42238.05.

32(ii) The amount computed pursuant to clause (i) shall exclude
33funds received by a charter school pursuant to Section 47634.1,
34as that section read on January 1, 2013.

35(C) The amount computed pursuant to subparagraphs (A) and
36(B) shall exclude funds received pursuant to Section 47633, as
37that section read on January 1, 2013.

38(D) The amount computed pursuant to subparagraph (A) shall
39exclude amounts computed pursuant to Article 4 (commencing
40with Section 42280). Funding for qualifying necessary small high
P75   1school and necessary small elementary schools shall be adjusted
2pursuant Article 4 (commencing with Section 42280) and Section
342238.146, as those provisions read on January 1, 2013.

4(2) Entitlements from items contained in Section 2.00, as
5adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
6Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
76110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
86110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
96110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
106110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
116110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
126110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
136110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
146110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
156110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
16the Class Size Reduction Program pursuant to Chapter 6.10
17(commencing with Section 52120) of Part 28 of Division 4, as it
18read on January 1, 2013, and 2012-13 fiscal year funding for
19pupils enrolled in community day schools who are mandatorily
20expelled pursuant to subdivision (c) of Section 48915. The
21entitlement for basic aid school districts shall include the reduction
22of 8.92 percent as applied pursuant to subparagraph (A) of
23paragraph (1) of subdivision (a) of Section 3 of Chapter 2 of the
24Statutes of 2012.

25(3) The allocations pursuant to Sections 42606 and 47634.1,
26as those sections read on January 1, 2013, divided by the 2012-13
27average daily attendance of the charter school computed pursuant
28to Section 42238.05. That quotient shall be multiplied by the
29current fiscal year average daily attendance of the charter school
30computed pursuant to Section 42238.05.

31(4) The amount allocated to a school district or charter school
32pursuant to paragraph (3) of subdivision (b) for the fiscal years
33before the current fiscal year divided by the average daily
34attendance of the school district or charter school for the fiscal
35years before the current fiscal year computed pursuant to Section
3642238.05. That quotient shall be multiplied by the current fiscal
37year average daily attendance of the school district or charter
38school computed pursuant to Section 42238.05.

39(5) For the 2013-14 and 2014-15 fiscal years only, a school
40district that, in the 2012-13 fiscal year, from any of the funding
P76   1sources identified in paragraph (1) or (2), received funds on behalf
2of, or provided funds to, a regional occupational center or program
3joint powers agency established in accordance with Article 1
4(commencing with Section 6500) of Chapter 5 of Division 7 of
5Title 1 of the Government Code for purposes of providing
6instruction to secondary pupils shall not redirect that funding for
7another purpose unless otherwise authorized in law or pursuant
8to an agreement between the regional occupational center or
9program joint powers agency and the contracting school district.

10(6) (A) For the 2013-14 and 2014-15 fiscal years only, a school
11district that, in the 2012-13 fiscal year, from any of the funding
12sources identified in paragraph (1) or (2), received funds on behalf
13of, or provided funds to, a home-to-school transportation joint
14powers agency established in accordance with Article 1
15(commencing with Section 6500) of Chapter 5 of Division 7 of
16Title 1 of the Government Code for purposes of providing pupil
17transportation shall not redirect that funding for another purpose
18unless otherwise authorized in law or pursuant to an agreement
19between the home-to-school transportation joint powers agency
20and the contracting school district.

21(B) In addition to subparagraph (A), of the funds a school
22district receives for home-to-school transportation programs
23pursuant to Article 2 (commencing with Section 39820) of Chapter
241 of Part 23.5 and Article 10 (commencing with Section 41850)
25of Chapter 5, the school district shall expend no less than the
26amount of funds the school district expended for home-to-school
27transportation in the 2012-13 fiscal year.

28(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
29a school district receives for purposes of regional occupational
30centers or programs, or adult education, the school district shall
31expend no less than the amount of funds the school district
32expended for purposes of regional occupational centers or
33programs, or adult education, respectively, in the 2012-13 fiscal
34year.

35(b) Compute an annual local control funding formula transition
36adjustment for each school district and charter school as follows:

37(1) Subtract the amount computed pursuant to paragraphs (1)
38to (4), inclusive, of subdivision (a) from the amount computed for
39each school district or charter school under the local control
40funding formula entitlements computed pursuant to subdivision
P77   1(i) of Section 42238.02. School districts and charter schools with
2a negative difference shall be deemed to have a zero difference.

3(2) Each school district’s and charter school’s total need as
4calculated pursuant to paragraph (1) shall be divided by the sum
5of all school districts’ and charter schools’ total need to determine
6the school district’s or charter school’s respective proportions of
7total need.

8(3) Each school district’s and charter school’s proportion of
9total need shall be multiplied by any available appropriations
10specifically made for purposes of this subdivision, and added to
11the school district’s or charter school’s funding amounts as
12calculated pursuant to subdivision (a).

13(4) If the total amount of funds appropriated for purposes of
14paragraph (3) pursuant to this subdivision are sufficient to fully
15fund any positive amounts computed pursuant to paragraph (1),
16the local control funding formula grant computed pursuant to
17subdivision (c) of Section 42238.02 shall be adjusted to ensure
18that any available appropriation authority is expended for purposes
19of the local control funding formula.

20(5) Commencing with the first fiscal year after either paragraph
21(4) or paragraph (2) of subdivision (h) applies, the adjustments
22in paragraph (2) of subdivision (d) of Section 42238.02 shall be
23made only if an appropriation for those adjustments is included
24in the annual Budget Act.

25(c) The Superintendent shall subtract from the amounts
26computed pursuant to subdivisions (a) and (b) the sum of the
27following:

28(1) (A) For school districts, the property tax revenue received
29pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
306 (commencing with Section 95) of Part 0.5 of Division 1 of the
31Revenue and Taxation Code.

32(B) For charter schools, the in-lieu property tax amount
33provided to a charter school pursuant to Section 47635.

34(2) The amount, if any, received pursuant to Part 18.5
35(commencing with Section 38101) of Division 2 of the Revenue
36and Taxation Code.

37(3) The amount, if any, received pursuant to Chapter 3
38(commencing with Section 16140) of Part 1 of Division 4 of Title
392 of the Government Code.

40(4) Prior years’ taxes and taxes on the unsecured roll.

P78   1(5) Fifty percent of the amount received pursuant to Section
241603.

3(6) The amount, if any, received pursuant to the Community
4Redevelopment Law (Part 1 (commencing with Section 33000) of
5Division 24 of the Health and Safety Code), less any amount
6received pursuant to Section 33401 or 33676 of the Health and
7Safety Code that is used for land acquisition, facility construction,
8reconstruction, or remodeling, or deferred maintenance and that
9is not an amount received pursuant to Section 33492.15, or
10paragraph (4) of subdivision (a) of Section 33607.5, or Section
1133607.7 of the Health and Safety Code that is allocated exclusively
12for educational facilities.

13(7) The amount, if any, received pursuant to Sections 34183
14and 34188 of the Health and Safety Code.

15(8) Revenue received pursuant to subparagraph (B) of
16paragraph (3) of subdivision (e) of Section 36 of Article XIII of
17the California Constitution.

18(d) A school district or charter school that has a zero difference
19pursuant to paragraph (1) of subdivision (b) in the prior fiscal
20year shall receive an entitlement equal to the amount calculated
21pursuant to Section 42238.02 in the current fiscal year and future
22fiscal years.

23(e) Notwithstanding the computations pursuant to subdivisions
24(b) to (d), inclusive, and Section 42238.02, commencing with the
252013-14 fiscal year, a school district or charter school shall
26receive state-aid funding of no less than the sum of the amounts
27computed pursuant to paragraphs (1) to (3), inclusive.

28(1) (A) For school districts, revenue limits in the 2012-13 fiscal
29year as computed pursuant to Article 2 (commencing with Section
3042238), as that article read on January 1, 2013, divided by the
312012-13 average daily attendance of the school district computed
32pursuant to Section 42238.05. That quotient shall be multiplied
33by the current fiscal year average daily attendance of the school
34district computed pursuant Section 42238.05 and then offset for
35local revenues pursuant to subdivision (c) for the current fiscal
36year.

37(B) (i) For charter schools, general purpose funding in the
382012-13 fiscal year as computed pursuant to Article 2
39(commencing with Section 47633) of Chapter 6, as that article
40read on January 1, 2013, and the amount of in-lieu property tax
P79   1provided to the charter school in the 2012-13 fiscal year pursuant
2to Section 47635, as that section read on January 1, 2013, divided
3by the 2012-13 average daily attendance of the charter school
4computed pursuant to Section 42238.05. That quotient shall be
5multiplied by the current fiscal year average daily attendance of
6the charter school computed pursuant to Section 42238.05 and
7then offset for local revenues pursuant to subdivision (c) for the
8current fiscal year.

9(ii) The amount computed pursuant to clause (i) shall exclude
10funds received by a charter school pursuant to Section 47634.1,
11as that section read on January 1, 2013.

12(C) The amount computed pursuant to subparagraphs (A) and
13(B) shall exclude funds received pursuant to Section 47633, as
14that section read on January 1, 2013.

15(D) The amount computed pursuant to subparagraph (A) shall
16exclude amounts computed pursuant to Article 4 (commencing
17with Section 42280). Funding for qualifying necessary small high
18school and necessary small elementary schools shall be adjusted
19pursuant Article 4 (commencing with Section 42280) and Section
2042238.146, as those provisions read on January 1, 2013.

21(E) The amount computed pursuant to subparagraphs (A) to
22(C), inclusive, shall be reduced by the sum of the amount computed
23pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).

24(2) (A) Entitlements from items contained in Section 2.00, as
25adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
26Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
276110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
286110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
296110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
306110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
316110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
326110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
336110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
346110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
356110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for
36the Class Size Reduction Program pursuant to Chapter 6.10
37(commencing with Section 52120) of Part 28 of Division 4, as it
38read on January 1, 2013, and 2012-13 fiscal year funding for
39pupils enrolled in community day schools who are mandatorily
40expelled pursuant to subdivision (c) of Section 48915.
P80   1Notwithstanding Section 39 of Chapter 38 of the Statutes of 2012,
2the entitlement for basic aid school districts shall include the
3reduction of 8.92 percent as applied pursuant to subparagraph
4(A) of paragraph (1) of subdivision (a) of Section 3 of Chapter 2
5of the Statutes of 2012.

6(3) The allocations pursuant to Sections 42606 and 47634.1,
7as those sections read on January 1, 2013, divided by the 2012-13
8average daily attendance of the charter school. That quotient shall
9be multiplied by the current fiscal year average daily attendance
10of the charter school.

11(f) (1) For purposes of this section, commencing with the
122013-14 fiscal year and until all school districts and charter
13schools equal or exceed their local control funding formula target
14computed pursuant to Section 42238.02 as determined by the
15calculation of a zero difference pursuant to paragraph (1) of
16subdivision (b), a newly operational charter school shall be
17determined to have a prior year per average daily attendance
18funding amount equal to the lesser of:

19(A) The prior year funding amount per unit of average daily
20attendance for the school district in which the charter school is
21physically located. The Superintendent shall calculate the funding
22amount per unit of average daily attendance for this purpose by
23dividing the total local control funding formula entitlement received
24by that school district in the prior year by prior year average daily
25attendance of that school district. For purposes of this paragraph,
26a charter school that is physically located in more than one school
27district shall use the calculated local control funding entitlement
28per unit of average daily attendance of the school district with the
29highest prior year funding amount per unit of average daily
30attendance.

31(B) The charter school’s local control funding formula rate
32computed pursuant to subdivisions (c) to (i), inclusive, of Section
3342238.02.

34(2) For charter schools funded pursuant to paragraph (1), the
35charter school shall be eligible to receive growth funding pursuant
36to subdivision (b) toward meeting the newly operational charter
37school’s local control funding formula target.

38(3) Upon a determination that all school districts and charter
39schools equal or exceed the local control funding formula target
40computed pursuant to Section 42238.02 as determined by the
P81   1calculation of a zero difference pursuant to paragraph (1) of
2subdivision (b) for all school districts and charter schools, this
3subdivision shall not apply and the charter school shall receive
4an allocation equal to the amount calculated under Section
542238.02 in that fiscal year and future fiscal years.

6(g) (1) In each fiscal year the Superintendent shall determine
7the percentage of school districts that are apportioned funding
8pursuant to this section that is less than the amount computed
9pursuant to Section 42238.02 as of the second principal
10apportionments of the fiscal year. If the percentage is less than 10
11percent, the Superintendent shall apportion funding to the school
12districts and charter schools equal to the amount computed
13pursuant to Section 42238.02 in that fiscal year.

14(2) For each fiscal year thereafter, the Superintendent shall
15apportion funding to a school district and charter school equal to
16the amount computed pursuant to Section 42238.02.

end insert
17begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 42238.04 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
18read:end insert

begin insert
19

begin insert42238.04.end insert  

Notwithstanding any other law, revenue limit funding
20for school districts and charter school block grant funding for
21charter schools for the 2012-13 fiscal year and prior fiscal years
22shall continue to be adjusted pursuant to Article 2 (commencing
23with Section 42238), and Article 2 (commencing with Section
2447633) of Chapter 6 of Part 26.8 of Division 4, as those articles
25read on January 1, 2013.

end insert
26begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 42238.05 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
27read:end insert

begin insert
28

begin insert42238.05.end insert  

(a) For purposes of Sections 42238.02 and
2942238.03, the fiscal year average daily attendance shall be
30computed pursuant to paragraph (1) or (2).

31(1) The second principal apportionment regular average daily
32attendance for either the current or prior fiscal year, whichever
33is greater. However, prior fiscal year average daily attendance
34shall be adjusted for any loss or gain of average daily attendance
35due to a reorganization or transfer of territory.

36(2) A school district that elects to receive funding pursuant to
37Article 4 (commencing with Section 42280) shall compute its units
38of average daily attendance for purposes of paragraphs (1), (3),
39and (4), of subdivision (d) of Section 42238.02 by subtracting the
P82   1amount determined in subparagraph (B) from the amount
2determined in subparagraph (A).

3(A) The units of average daily attendance computed pursuant
4to paragraph (1).

5(B) The units of average daily attendance resulting from pupils
6attending schools funded pursuant to Article 4 (commencing with
7Section 42280).

8(b) For purposes of this article, regular average daily
9attendance shall be the base grant average daily attendance.

10(c) For purposes of this section, the Superintendent shall
11distribute total ungraded enrollment and average daily attendance
12among kindergarten and each of grades 1 to 12, inclusive, in
13proportion to the amounts of graded enrollment and average daily
14attendance, respectively, in each of these grades.

15(d) For purposes of this section, the Superintendent shall
16distribute average daily attendance generated by the difference
17between prior year average daily attendance and current year
18average daily attendance, if positive, among kindergarten and
19each of grades 1 to 12, inclusive, in proportion to the amounts of
20graded average daily attendance, respectively, in each of these
21grades.

22(e) This section shall only apply to average daily attendance
23generated by school districts and shall not apply to average daily
24attendance generated by charter schools.

25(f) A pupil shall not be counted more than once for purposes of
26calculating average daily attendance pursuant to this section.

end insert
27begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 42238.051 is added to the end insertbegin insertEducation Codeend insertbegin insert,
28to read:end insert

begin insert
29

begin insert42238.051.end insert  

(a) For purposes of paragraph (1) of subdivision
30(a) of Section 42238.05, a sponsoring school district’s average
31daily attendance shall be computed as follows:

32(1) Compute the sponsoring school district’s regular average
33daily attendance in the current year, excluding the attendance of
34pupils in charter schools.

35(2) (A) Compute the regular average daily attendance used to
36calculate the second principal apportionment of the school district
37for the prior year, excluding the attendance of pupils in charter
38schools.

39(B) Compute the attendance of pupils who attended one or more
40noncharter schools of the school district between July 1, and the
P83   1last day of the second period, inclusive, in the prior year, and who
2attended a charter school sponsored by the school district between
3July 1, and the last day of the second period, inclusive, in the
4current year. For purposes of this subparagraph, a pupil enrolled
5in a grade at a charter school sponsored by the school district
6shall not be counted if the school district does not offer classes for
7pupils enrolled in that grade. The amount of the attendance counted
8for any pupil for the purpose of this subparagraph may not be
9greater than the attendance claimed for that pupil by the charter
10school in the current year.

11(C) Compute the attendance of pupils who attended a charter
12school sponsored by the school district in the prior year and who
13attended one or more noncharter schools of the school district in
14the current year. The amount of the attendance counted for any
15pupil for the purpose of this subparagraph may not be greater
16than the attendance claimed for that pupil by the school district
17in the current year.

18(D) From the amount determined pursuant to subparagraph
19(B), subtract the amount determined pursuant to subparagraph
20(C). If the result is less than zero, the amount shall be deemed to
21be zero.

22(E) The prior year average daily attendance determined
23pursuant to subparagraph (A) shall be reduced by the amount
24determined pursuant to subparagraph (D).

25(3) To the greater of the amounts computed pursuant to
26paragraphs (1) and (2), add the regular average daily attendance
27in the current year of all pupils attending charter schools
28sponsored by the school district that are not funded through the
29charter schools local control funding formula allocation pursuant
30to Section 42238.02, as implemented by Section 42238.03.

31(b) For purposes of this section, a “sponsoring school district”
32shall mean a “sponsoring local educational agency,” as defined
33in Section 47632, as that section read on January 1, 2013.

end insert
34begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 42238.052 is added to the end insertbegin insertEducation Codeend insertbegin insert,
35to read:end insert

begin insert
36

begin insert42238.052.end insert  

(a) Notwithstanding any other law, the prior year
37average daily attendance for a school district determined pursuant
38to subdivision (a) of Section 42238.051 shall be increased by the
39prior year second principal apportionment average daily
P84   1attendance of a school district only for a school that meets the
2following description:

3(1) The school was a district noncharter school in any year
4before the prior year.

5(2) The school was operated as a district-approved charter
6school in the prior year.

7(3) The school is again operated as a district noncharter school
8in the current year.

9(b) An adjustment to prior year average daily attendance
10pursuant to this section may not be made for the attendance of
11pupils who were not residents of the school district in the prior
12year.

end insert
13begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 42238.053 is added to the end insertbegin insertEducation Codeend insertbegin insert,
14to read:end insert

begin insert
15

begin insert42238.053.end insert  

(a) The fiscal year average daily attendance
16computed under Section 42238.05 shall be increased, for each
17school district that operates a school that meets the eligibility
18requirements set forth in subdivision (b), by the number of days
19of attendance of pupils enrolled in eligible schools in the school
20district who are currently migratory children, as defined by Section
2154441, and who are residing in state-operated migrant housing
22projects between the second principal apportionment and the end
23of the regular school year, divided by the number of days school
24was actually taught in the regular day schools of the district,
25excluding Saturdays and Sundays.

26(b) For a school district to be eligible for purposes of this
27section, the following conditions shall apply:

28(1) One or more state-operated migrant housing projects are
29located within the attendance area of the school.

30(2) The maximum number of pupils enrolled in the school in the
31relevant fiscal year who are currently migratory children, as
32calculated under subdivision (a), constitutes not less than one-third
33of the total pupil enrollment of the school.

34(c) The Superintendent shall establish rules and regulations for
35the implementation of this section.

end insert
36begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 42238.06 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
37read:end insert

begin insert
38

begin insert42238.06.end insert  

Commencing on July 1, 2013, except for Sections
3942238, 42238.1, 42238.2, and 42238.5, or where the context
40requires otherwise, all of the following shall apply:

P85   1(a) References to “revenue limit” shall instead refer to the
2“local control funding formula.”

3(b) References to “the revenue limit calculated pursuant to
4Section 42238” shall instead refer to “the local control funding
5formula calculated pursuant to Section 42238.02, as implemented
6by Section 42238.03.”

7(c) References to “Section 42238” shall instead refer to “Section
842238.02, as implemented pursuant to Section 42238.03.”

9(d) References to “Section 42238.1” shall instead refer to
10“Section 42238.02.”

11(e) References to “Section 42238.5” shall instead refer to
12“Section 42238.05.”

13(f) References to “general-purpose entitlement” shall instead
14refer to “local control funding formula grant funding pursuant to
15Section 42238.02, as implemented by Section 42238.03.”

end insert
16begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 42238.07 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
17 read:end insert

begin insert
18

begin insert42238.07.end insert  

(a) On or before January 31, 2014, the state board
19shall adopt regulations that govern the expenditure of funds
20apportioned on the basis of the number and concentration of
21unduplicated pupils pursuant to Sections 2574, 2575, 42238.02,
22and 42238.03. The regulations shall include, but are not limited
23to, provisions that do all of the following:

24(1) Require a school district, county office of education, or
25charter school to increase or improve services for unduplicated
26pupils in proportion to the increase in funds apportioned on the
27basis of the number and concentration of unduplicated pupils in
28the school district, county office of education, or charter school.

29(2) Authorize a school district, county office of education, or
30charter school to use funds apportioned on the basis of the number
31of unduplicated pupils for schoolwide purposes, or, for school
32districts, districtwide purposes, for county offices of education,
33countywide purposes, or for charter schools, charterwide purposes,
34in a manner that is no more restrictive than the restrictions
35provided for in Title I of the federal No Child Left Behind Act of
362001 (20 U.S.C. Sec. 6301, et seq.).

37(b) The state board may adopt emergency regulations for
38purposes of this section.

end insert
39begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 42238.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P86   1

42238.1.  

(a) For the 1986-87 fiscal year and each fiscal year
2up to and including the 1998-99 fiscal year, the Superintendent
3of Public Instruction shall compute an inflation adjustment equal
4to the product of paragraphs (1) and (2):

5(1) Compute the sum of the following:

6(A) The statewide average base revenue limit per unit of average
7daily attendance for the prior fiscal year for districts of similar
8type.

9(B) The amount, if any, per unit of average daily attendance
10received by the district pursuant to Article 8 (commencing with
11Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

12(2) The percentage change in the annual average value of the
13Implicit Price Deflator for State and Local Government Purchases
14of Goods and Services for the United States, as published by the
15United States Department of Commerce for the 12-month period
16ending in the third quarter of the prior fiscal year. This percentage
17change shall be determined using the latest data available as of
18May 1 of the preceding fiscal year compared with the annual
19average value of the same deflator for the 12-month period ending
20in the third quarter of the second preceding fiscal year, using the
21latest data available as of May 1 of the second preceding fiscal
22year, as reported by the Department of Finance.

23(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
24the Superintendent of Public Instruction shall compute an inflation
25adjustment equal to the product of paragraphs (1) and (2):

26(1) Compute the sum of the following:

27(A) The statewide average base revenue limit per unit of average
28daily attendance for the prior fiscal year for districts of similar
29type.

30(B) The amount, if any, per unit of average daily attendance
31received by the district pursuant to Article 8 (commencing with
32Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.

33(2) The percentage change in the annual average value of the
34Implicit Price Deflator for State and Local Government Purchases
35of Goods and Services for the United States, as published by the
36United States Department of Commerce for the 12-month period
37ending in the third quarter of the prior fiscal year. This percentage
38change shall be determined using the latest data available as of
39May 10 of the preceding fiscal year compared with the annual
40average value of the same deflator for the 12-month period ending
P87   1in the third quarter of the second preceding fiscal year, using the
2latest data available as of May 10 of the preceding fiscal year, as
3report by the Department of Finance.

4(c) This section shall become operative July 1, 1986.

begin insert

5(d) Commencing with the 2013-14 fiscal year, this section shall
6be used only for purposes of allocating revenues received pursuant
7to subparagraph (B) of paragraph (3) of subdivision (e) of Section
836 of Article XIII of the California Constitution.

end insert
begin insert

9(e) This section shall become inoperative on July 1, 2021, and,
10as of January 1, 2022, is repealed, unless a later enacted statute,
11that becomes operative on or before January 1, 2022, deletes or
12extends the dates on which it becomes inoperative and is repealed.

end insert
13begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 42238.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
14to read:end insert

15

42238.2.  

(a) (1) Notwithstanding Section 42238.5 or any other
16provision of law, a school district that meets any of the following
17conditions shall be entitled to an adjustment to its units of average
18daily attendance pursuant to this section:

19(A) The school district experiences a decline in the number of
20units of average daily attendance in excess of 8 percent of its total
21average daily attendance as a result of the closure of a facility
22operated by a branch of the United States Armed Forces in the
23school district’s boundaries.

24(B) The school district experiences a decline in the number of
25units of average daily attendance that is less than 8 percent but at
26least 5 percent of its total average daily attendance as a result of
27the closure of a facility operated by a branch of the United States
28Armed Forces in that school district’s boundaries, upon a finding
29by both the Superintendent of Public Instruction and the Director
30of Finance that both of the following conditions exist:

31(i) The school district demonstrates that at the end of a three-year
32period the school district will experience a 10-percent reduction
33in the amount of funding that the school district would otherwise
34have received from state apportionments, funding received pursuant
35to the California State Lottery Act of 1984 (Chapter 12.5
36(commencing with Section 8880) of Division 1 of Title 2 of the
37Government Code), and funding received pursuant to Title VIII
38of Public Law 103-382, as a result of the loss of pupils related to
39the closure of a facility operated by a branch of the United States
40Armed Forces.

P88   1(ii) The fiscal crisis and management assistance team established
2pursuant to Section 42127.8 has reviewed the school district’s
3finances and has found that the school district has taken significant
4steps to reduce expenditure.

5(C) The school district experiences a decline in the number of
6units of average daily attendance in excess of 5 percent of its total
7average daily attendance and the Director of Finance determines
8that the school district is likely, within eight years of that decline,
9to maintain a number of units of average daily attendance that is
10equivalent to the number of units of average daily attendance
11maintained by the school district prior to the decline.
12Notwithstanding subdivision (b), loan repayments shall commence
13no later than the fourth year after the base year or at a later time,
14as determined by the Director of Finance.

15(2) For purposes of this section, the year preceding a decline
16shall be the base year.

17(b) In the second year after the base year, the district average
18daily attendance pursuant to Section 42238.5 may, if the district
19chooses, be increased by 75 percent of the difference between the
20base year units of average daily attendance and the units of average
21daily attendance in the first year of decline. In the third year after
22the base year, the district average daily attendance pursuant to
23Section 42238.5 may, if the district chooses, be increased by 50
24percent of the difference between the base year units of average
25daily attendance and the units of average daily attendance in the
26first year of decline. The amount of money represented by these
27increases shall be considered a loan to the school district. Loan
28repayments shall commence no later than the fourth year after the
29base year.

30(c) (1) The Superintendent of Public Instruction, in consultation
31with a school district subject to this section, shall determine a
32schedule for repayment of the total amount loaned pursuant to this
33section which may not exceed 10 years. Payments shall include
34interest charged at a rate based on the most current investment rate
35of the Pooled Money Investment Account in the General Fund as
36of the date of the disbursement of funds to the school district.

37(2) Upon written notification by the Superintendent of Public
38Instruction that the school district has not made one or more of the
39payments required by the schedule established pursuant to
40paragraph (1), the Controller shall withhold from Section A of the
P89   1State School Fund the defaulted payment which shall not exceed
2the amount of any apportionment entitlement of the district to
3moneys in Section A of the State School Fund. In that regard, the
4Controller shall withhold the amount of any payment made under
5this subdivision, including reimbursement of the Controller’s
6administrative costs as determined under a schedule approved by
7the California Debt Advisory Commission, from subsequent
8apportionments to the school district from Section A of the State
9School Fund.

10(3) Any apportionments made by the Controller pursuant to
11paragraph (2) shall be deemed to be an allocation to the school
12district for purposes of subdivision (b) of Section 8 of Article XVI
13of the California Constitution, and for purposes of Chapter 2
14(commencing with Section 41200) of Part 24.

15(d) In no event shall the adjustment provided by this section
16cause the apportionment to a school district to exceed the amount
17that would otherwise be calculated for apportionment to the district
18pursuant to Sections 42238 and 42238.1.

19(e) This section does not apply to a school district that
20experiences a decline in enrollment as a result of a school district
21reorganization pursuant to Chapter 3 (commencing with Section
2235500) of Part 21 or any other law.

begin insert

23(f) Commencing with the 2013-14 fiscal year, this section shall
24be used only for purposes of allocating revenues received pursuant
25to subparagraph (B) of paragraph (3) of subdivision (e) of Section
2636 of Article XIII of the California Constitution.

end insert
begin insert

27(g) This section shall become inoperative on July 1, 2021, and,
28as of January 1, 2022, is repealed, unless a later enacted statute,
29that becomes operative on or before January 1, 2022, deletes or
30extends the dates on which it becomes inoperative and is repealed.

end insert
31begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 42238.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
32to read:end insert

33

42238.5.  

(a) For purposes of Section 42238, the fiscal year
34average daily attendance shall be computed pursuant to paragraph
35(1) or (2).

36(1) The second principal apportionment regular average daily
37attendance for either the current or prior fiscal year, whichever is
38greater. However, prior fiscal year average daily attendance shall
39be adjusted for any loss or gain of average daily attendance due
40to a reorganization or transfer of territory, or, commencing in the
P90   11993-94 fiscal year, and each fiscal year thereafter, for any change
2in average daily attendance for pupils who are concurrently enrolled
3in adult programs and classes pursuant to Section 52616.17.

4(2) Any school district that elects to receive funding pursuant
5to Article 4 (commencing with Section 42280) shall compute its
6units of average daily attendance for purposes of Section 42238
7by subtracting the amount determined in subparagraph (B) from
8the amount determined in subparagraph (A).

9(A) The units of average daily attendance computed pursuant
10to paragraph (1).

11(B) The units of average daily attendance resulting from pupils
12attending schools funded pursuant to Article 4 (commencing with
13Section 42280).

14(b) For purposes of this article, regular average daily attendance
15shall be the base revenue limit average daily attendance, excluding
16summer school average daily attendance.

17(c) For purposes of this section, for the 1998-99 fiscal year
18only, the prior year average daily attendance shall be the 1997-98
19regular average daily attendance, excluding absences excused
20pursuant to subdivision (b) of Section 46010, as that subdivision
21read on July 1, 1996.

begin insert

22(d) Commencing with the 2013-14 fiscal year, this section shall
23be used only for purposes of allocating revenues received pursuant
24to subparagraph (B) of paragraph (3) of subdivision (e) of Section
2536 of Article XIII of the California Constitution.

end insert
begin insert

26(e) This section shall become inoperative on July 1, 2021, and,
27as of January 1, 2022, is repealed, unless a later enacted statute,
28that becomes operative on or before January 1, 2022, deletes or
29extends the dates on which it becomes inoperative and is repealed.

end insert
30begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 42238.15 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

42238.15.  

(a) Notwithstanding any other law, and in lieu of
33any inflation or cost-of-living adjustment otherwise authorized for
34any of the programs enumerated in subdivision (b), state funding
35for the programs enumerated in subdivision (b) shall be increased
36annually by the product of the following:

37(1) The sum of 1.0 plus the percentage change determined under
38begin insert paragraph (2) ofend insert subdivisionbegin delete (b)end deletebegin insert (d)end insert of Sectionbegin delete 42238.1end deletebegin insert 42238.02end insert.

P91   1(2) The sum of 1.0 plus the percentage of increase, from the
2prior fiscal year to the current fiscal year, in each of the workload
3factors described in subdivision (b).

4(b) The programs for which annual state funding increases are
5determined under this section, and the factors used to measure
6workload for each of those programs, are as follows:

7(1) Special education programs and services, as measured by
8the regular second principal apportionment average daily
9attendance for kindergarten and grades 1 to 12, inclusive.

10(2) Child care and development programs, and preschool
11programs, as measured by the state population of children up to
12and including four years of age.

begin delete

13(3) Instructional materials for kindergarten and grades 1 to 8,
14inclusive, as measured by enrollment in kindergarten and grades
151 to 8, inclusive.

end delete
begin delete

16(4) Instructional materials for grades 9 to 12, inclusive, as
17measured by enrollment in those grades.

end delete
begin delete

18(5) Regional occupational programs and centers, as measured
19by enrollment in grades 11 and 12.

end delete
begin delete

20(6) School improvement programs in kindergarten and grades
211 to 6, inclusive, as measured by enrollment in kindergarten and
22grades 1 to 6, inclusive.

end delete
begin delete

23(7) School improvement programs in grades 7 to 12, inclusive,
24as measured by enrollment in those grades.

end delete
begin delete

25(8) Economic impact aid, as measured by the number of children
26of ages 5 to 17 years, inclusive, from families that receive Aid to
27Families with Dependent Children and the number of pupils of
28limited English proficiency, as identified pursuant to Section
2952163.

end delete
begin delete

30(9) Staff development programs, as measured by enrollment in
31kindergarten and grades 1 to 12, inclusive.

end delete
begin delete

32(10) Gifted and talented education programs, as measured by
33enrollment in kindergarten and grades 1 to 12, inclusive.

end delete

34(c) Notwithstanding any other law, child care and development
35programs shall not receive a cost-of-living adjustment in the
362012-13, 2013-14, and 2014-15 fiscal years.

37begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 42280 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

39

42280.  

(a) For each school district that meets, in the current
40or prior fiscal year, the conditions specified in Section 42281,
P92   142282, or 42284 thebegin delete county superintendent of schoolsend delete
2begin insert Superintendentend insert shall compute, for each qualifying school in the
3begin insert schoolend insert district, an amount pursuant to this article.

4(b) For each school district that is a countywide unified school
5district that had fewer than 2,501 units of average daily attendance
6in the 1990-91 fiscal year, thebegin delete county superintendent of schoolsend delete
7begin insert Superintendentend insert shall compute an amount pursuant to this article
8for those schools that meet the conditions specified in Sections
942283 and 42285 in the current or prior fiscal year. This
10subdivision is only applicable to those schools funded pursuant to
11this article in the 1990-91 fiscal year and, in subsequent years, if
12the school district has no more than 3,000 units of average daily
13attendance.

begin delete

14(c) For the 1998-99 fiscal year, average daily attendance
15reported pursuant to Section 41601 for the 1997-98 fiscal year,
16exclusive of average daily attendance for absences excused
17pursuant to subdivision (b) of Section 46010 as that subdivision
18read on July 1, 1996, shall be used for the purpose of determining
19whether school districts meet the conditions in Sections 42281,
2042282, and 42284 for the prior fiscal year.

end delete
21begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 42281 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
22read:end insert

23

42281.  

begin delete(a)end deletebegin deleteend deleteExcept as specified in paragraph (4), for each
24elementary school district that maintains only one school with a
25second principal apportionment average daily attendance of less
26thanbegin delete 101,end deletebegin insert 97,end insert thebegin delete county superintendentend deletebegin insert Superintendentend insert shall make
27one of the following computations, whichever provides the lesser
28amount:

begin delete

29(1)

end delete

30begin insert(a)end insert For each small school that has an average daily attendance
31during the fiscal year of less thanbegin delete 26,end deletebegin insert 25,end insert exclusive of pupils
32attending the 7th and 8th grades of a junior high school, and for
33which school at least one teacher was hired full time, thebegin delete county
34superintendentend delete
begin insert Superintendentend insert shall compute for thebegin insert schoolend insert district
35fifty-two thousand nine hundred twenty-five dollars ($52,925).

begin delete

36(2)

end delete

37begin insert(b)end insert For each small school that has an average daily attendance
38during the fiscal year ofbegin delete 26end deletebegin insert 25end insert or more and less thanbegin delete 51,end deletebegin insert 49,end insert
39 exclusive of pupils attending the 7th and 8th grades of a junior
40high school, and for which school at least two teachers were hired
P93   1full time for more than one-half of the days schools were
2maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
3compute for thebegin insert schoolend insert district one hundred five thousand eight
4hundred fifty dollars ($105,850).

begin delete

5(3)

end delete

6begin insert(c)end insert For each small school that has an average daily attendance
7during the fiscal year ofbegin delete 51end deletebegin insert 49end insert or more but less thanbegin delete 76,end deletebegin insert 73,end insert
8 exclusive of pupils attending the 7th and 8th grades of a junior
9high school, and for which school three teachers were hired full
10time for more than one-half of the days schools were maintained,
11thebegin delete county superintendentend deletebegin insert Superintendentend insert shall compute for the
12begin insert schoolend insert district one hundred fifty-eight thousand seven hundred
13seventy-five dollars ($158,775).

begin delete

14(4)

end delete

15begin insert(d)end insert For each small school that has an average daily attendance
16during the fiscal year ofbegin delete 76end deletebegin insert 73end insert or more and less thanbegin delete 101,end deletebegin insert 97,end insert
17 exclusive of pupils attending the 7th and 8th grades of a junior
18high school, and for which school four teachers were hired full
19time for more than one-half of the days schools were maintained,
20thebegin delete county superintendentend deletebegin insert Superintendentend insert shall compute for the
21begin insert schoolend insert district two hundred eleven thousand seven hundred dollars
22($211,700). A school district that qualifies under this subdivision
23may use this funding calculation until thebegin delete revenue limitend deletebegin insert end insertbegin insertlocal
24control funding formula allocation pursuant to Sectionend insert
begin insert 42238.02,
25as implemented by Section 42238.03,end insert
per unit of average daily
26attendance multiplied by the average daily attendance produces
27state aid equal to the small school funding formula.

begin delete

28(b) For the 1998-99 fiscal year and each fiscal year thereafter,
29the average daily attendance figure of 101 specified in subdivision
30(a) and the ranges of average daily attendance specified in
31paragraphs (1) to (4), inclusive, shall be reduced by the statewide
32average rate of excused absence reported for elementary school
33districts for the 1996-97 fiscal year pursuant to Section 42238.7,
34with the resultant figures and ranges rounded to the nearest integer.

end delete
35begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 42282 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
36read:end insert

37

42282.  

For each district with fewer than 2,501 units of second
38principal apportionment average daily attendance, on account of
39each necessary small school, thebegin delete county superintendentend delete
40begin insert Superintendentend insert shall make the following computations:

P94   1(a) For each necessary small school which has an average daily
2attendance during the fiscal year of less thanbegin delete 26,end deletebegin insert 25,end insert exclusive of
3pupils attending the 7th and 8th grades of a junior high school,
4and for which school at least one teacher was hired full time, the
5begin delete county superintendentend deletebegin insert Superintendentend insert shall compute for thebegin insert schoolend insert
6 district fifty-two thousand nine hundred twenty-five dollars
7($52,925).

8(b) For each necessary small school which has an average daily
9attendance during the fiscal year ofbegin delete 26end deletebegin insert 25end insert or more and less than
10begin delete 51,end deletebegin insert 49,end insert exclusive of pupils attending the 7th and 8th grades of a
11junior high school, and for which school at least two teachers were
12hired full time for more than one-half of the days schools were
13maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
14compute for thebegin insert schoolend insert district one hundred five thousand eight
15hundred fifty dollars ($105,850).

16(c) For each necessary small school which has an average daily
17attendance during the fiscal year ofbegin delete 51end deletebegin insert 49end insert or more, but less than
18begin delete 76,end deletebegin insert 73,end insert exclusive of pupils attending the 7th and 8th grades of a
19junior high school, and for which school three teachers were hired
20full time for more than one-half of the days schools were
21maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
22compute for thebegin insert schoolend insert district one hundred fifty-eight thousand
23seven hundred seventy-five dollars ($158,775).

24(d) For each necessary small school which has an average daily
25attendance during the fiscal year ofbegin delete 76end deletebegin insert 73end insert or more and less than
26begin delete 101,end deletebegin insert 97,end insert exclusive of pupils attending the 7th and 8th grades of a
27junior high school, and for which school four teachers were hired
28full time for more than one-half of the days schools were
29maintained, thebegin delete county superintendentend deletebegin insert Superintendentend insert shall
30compute for thebegin insert schoolend insert district two hundred eleven thousand seven
31hundred dollars ($211,700).

32(e) A school district that qualifies under this section may use
33this funding calculation until thebegin delete revenue limitend deletebegin insert local control funding
34formula allocation pursuant to Section 42238.02, as implemented
35by Section 42238.03,end insert
per unit of average daily attendance
36multiplied by the average daily attendance produces state aid equal
37to the small school funding formula.

begin delete

38(f) For the 1998-99 fiscal year and each fiscal year thereafter,
39the ranges of average daily attendance specified in subdivisions
40(a) to (d), inclusive, shall be reduced by the statewide average rate
P95   1of excused absences reported for elementary school districts for
2the 1996-97 fiscal year pursuant to Section 42238.7, with the
3resultant figures and ranges rounded to the nearest integer.

end delete
4begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 42282.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
5

42282.1.  

(a) Notwithstanding Section 42282, or any other
6provision of law, each necessary small school in the Death Valley
7Unified School District shall qualify for the apportionment
8specified in subdivision (b) of Section 42282 if that school has an
9average daily attendance of 21 or more and less than 51, exclusive
10of pupils attending the 7th and 8th grades of a junior high school,
11and for which school at least two teachers were hired full-time for
12more than one-half of the days schools were maintained.

13(b) It is the intent of the Legislature not to provide a special
14allowance to the Death Valley Unified School District for one of
15its schools by future legislation if the average daily attendance at
16the school is 18 or less.

end delete
17begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 42283 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

42283.  

(a) Forbegin delete theend delete purposes ofbegin delete Sectionend deletebegin insert Sections 42281 andend insert
20 42282, a “necessary small school” is an elementary school with
21an average daily attendance of less thanbegin delete 101,end deletebegin insert 97,end insert exclusive of pupils
22attending the seventh and eighth grades of a junior high school,
23maintained by a school districtbegin delete which maintains two or more
24schools andend delete
to which school any of the following conditions apply:

25(1) If as many as five pupils residing in thebegin insert schoolend insert district and
26attending kindergarten and grades 1 to 8, inclusive, exclusive of
27pupils attending the seventh and eighth grades of a junior high
28school in the elementary school with an average daily attendance
29of less thanbegin delete 101end deletebegin insert 97end insert would be required to travel more than 10 miles
30one way from a point on a well-traveled road nearest their home
31to the nearest other public elementary school.

32(2) If as many as 15 pupils residing in thebegin insert schoolend insert district and
33attending kindergarten and grades 1 to 8, inclusive, exclusive of
34pupils attending the seventh and eighth grades of a junior high
35school in the elementary school with an average daily attendance
36of less thanbegin delete 101end deletebegin insert 97end insert would be required to travel more than five
37miles one way from a point on a well-traveled road nearest their
38home to the nearest other public elementary school.

39(3) If topographical or other conditions exist in abegin insert schoolend insert district
40which would impose unusual hardships if the number of miles
P96   1specified in paragraph (1) or (2) were required to be traveled, or
2if during the fiscal year the roads which would be traveled have
3been impassable for more than an average of two weeks per year
4for the preceding five years, the governing board of thebegin insert schoolend insert
5 district may, on or before April 1, request the Superintendentbegin delete of
6Public Instructionend delete
, in writing, for an exemption from these
7requirements or for a reduction in the miles required. The request
8shall be accompanied by a statement of the conditions upon which
9the request is based, giving the information in a form required by
10the Superintendentbegin delete of Public Instructionend delete. The Superintendentbegin delete of
11Public Instructionend delete
shall cause an investigation to be made, and
12shall either grant the request to the extent he or she deems
13necessary, or deny the request.

begin delete

14(b) For the 1998-99 fiscal year and each fiscal year thereafter,
15a “necessary small school,” as defined in subdivision (a), shall be
16an elementary school with an average daily attendance of less than
17101 reduced by the statewide average rate of excused absence
18reported for elementary school districts for the 1996-97 fiscal year
19pursuant to Section 42238.7, rounded to the nearest integer.

end delete
begin insert

20(b) For purposes of this section, “other public elementary
21school” is a public school, including a charter school, that serves
22kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
237 and 8 of a junior high school.

end insert
24begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 42283.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
25

42283.1.  

(a) Notwithstanding any provision of this article or
26any other provision of law, Mt. Hamilton Elementary School and
27Harney Elementary School each shall be deemed a necessary small
28school, as defined in Section 42283. In lieu of the amount
29calculated for necessary small schools, and in addition to the
30amount per unit of average daily attendance received by the
31districts, as calculated pursuant to Article 2 (commencing with
32Section 42238), the Alum Rock Union Elementary School District
33shall receive in each fiscal year, commencing with the 1993-94
34fiscal year, a twenty thousand dollar ($20,000) apportionment for
35Mt. Hamilton Elementary School and the Patterson Joint Unified
36School District shall receive a twenty thousand dollar ($20,000)
37apportionment for Harney Elementary School.

38(b) If either Mt. Hamilton Elementary School or Harney
39Elementary School exceeds 20 units of average daily attendance
P97   1in any fiscal year, then that school shall no longer be entitled to
2receive the apportionments set forth in subdivision (a).

end delete
3begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 42283.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
4

42283.2.  

(a)  Notwithstanding any other provision of law, the
5Rand Elementary School shall be deemed a necessary small school,
6as defined in Section 42283. Notwithstanding any other provision
7of law, the Sierra Sands Unified School District is eligible to
8receive apportionments for the Rand Elementary School pursuant
9to Section 42282.

10(b) If the amount of average daily attendance of the Rand
11Elementary School exceeds 100, then that school shall no longer
12be entitled to receive apportionments as a necessary small school.

end delete
13begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 42284 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
14read:end insert

15

42284.  

(a) For each district with fewer than 2,501 units of
16average daily attendance, on account of each necessary small high
17school, the county superintendent of schools shall make one of the
18following computations selected with regard only to the number
19of certificated employees employed or average daily attendance,
20whichever provides the lesser amount:


21

 


Average daily
attendance

Minimum number
of certificated
employees

Amount to be
computed

   

1-begin deleteend deletebegin delete20end deletebegin deleteend deletebegin insertend insertbegin insert19end insertbegin insertend insert   

less than 3

$42,980

 

 

per teacher

1-begin deleteend deletebegin delete20end deletebegin deleteend deletebegin insertend insertbegin insert19end insertbegin insertend insert   

 3

191,340

begin deleteend deletebegin delete21-end deletebegin deleteend deletebegin delete40end deletebegin deleteend deletebegin insertend insertbegin insert20-end insertbegin insertend insertbegin insert38end insertbegin insertend insert   

 4

234,320

begin deleteend deletebegin delete41-end deletebegin deleteend deletebegin delete60end deletebegin deleteend deletebegin insertend insertbegin insert39-end insertbegin insertend insertbegin insert57end insertbegin insertend insert   

 5

277,300

begin deleteend deletebegin delete61-end deletebegin deleteend deletebegin delete75end deletebegin deleteend deletebegin insertend insertbegin insert58-end insertbegin insertend insertbegin insert71end insertbegin insertend insert   

 6

320,280

begin deleteend deletebegin delete76-end deletebegin deleteend deletebegin delete90end deletebegin deleteend deletebegin insertend insertbegin insert72-end insertbegin insertend insertbegin insert86end insertbegin insertend insert   

 7

363,260

begin deleteend deletebegin delete91-105end deletebegin deleteend deletebegin insertend insertbegin insert87-end insertbegin insertend insertbegin insert100end insertbegin insertend insert   

 8

406,240

begin delete106-120end deletebegin deleteend deletebegin insert01-114end insertbegin insertend insert   

 9

449,220

begin delete121-135end deletebegin deleteend deletebegin insert115-129end insertbegin insertend insert   

10

492,200

begin delete136-150end deletebegin deleteend deletebegin insert130-143end insertbegin insertend insert   

11

535,180

begin delete151-180end deletebegin deleteend deletebegin insert44-171end insertbegin insertend insert   

12

578,160

begin delete181-220end deletebegin deleteend deletebegin insert172-210end insertbegin insertend insert   

13

621,140

begin delete221-260end deletebegin deleteend deletebegin insert211-248end insertbegin insertend insert   

14

664,120

begin delete261-300end deletebegin deleteend deletebegin insert249-286end insertbegin insertend insert   

15

707,100

 

P98   1(b) For purposes of this section, a “certificated employee” means
2an equivalent full-time position of an individual holding a
3credential authorizing service and providing service in grades 9
4to 12, inclusive, in any secondary school. Any fraction of an
5equivalent full-time position remaining after all equivalent full-time
6positions for certificated employees within the district have been
7calculated shall be deemed to be a full-time position.

8(c) A school district that qualifies under this section may use
9the funding calculation as provided in this section until thebegin delete revenue
10limitend delete
begin insert end insertbegin insertlocal control funding formula allocation pursuant to Section
1142238.02, as implemented by Section 42238.03,end insert
per unit of average
12daily attendance multiplied by the average daily attendance
13produces state aid equal to the funding provided under this section.

begin delete

14(d) For the 1998-99 fiscal year and each fiscal year thereafter,
15the ranges of average daily attendance specified in the table in
16subdivision (a) shall be reduced by the statewide average rate of
17excused absence reported for high school districts for the 1996-97
18fiscal year pursuant to Section 42238.7, with the resultant ranges
19rounded to the nearest integer.

end delete
20begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 42285 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
21read:end insert

22

42285.  

(a) For the purposes of Section 42284, a necessary
23small high school is a high school with an average daily attendance
24of less thanbegin delete 301end deletebegin insert 287end insert that comes within any of the following
25conditions:

26(1) The projection of its future enrollment on the basis of the
27enrollment of the elementary schools in the district shows that
28within eight years the enrollment in high school in grades 9 to 12,
29inclusive, will exceedbegin delete 300end deletebegin insert 286end insert pupils.

30(2) Any one of the following combinations of distance and units
31of average daily attendance applies:

32(A) The high school had an average daily attendance of less
33thanbegin delete 100end deletebegin insert 96end insert in grades 9 to 12, inclusive, during the preceding fiscal
34year and is more than 15 miles by well-traveled road from the
35nearest other public high school and either 90 percent of the pupils
36would be required to travel 20 miles or 25 percent of the pupils
37would be required to travel 30 miles one way from a point on a
38well-traveled road nearest their homes to the nearest other public
39high school.

P99   1(B) The high school had an average daily attendance ofbegin delete 100end deletebegin insert 96end insert
2 or more and less thanbegin delete 150end deletebegin insert 144end insert in grades 9 to 12, inclusive, during
3the preceding fiscal year and is more than 10 miles by well-traveled
4road from the nearest other public high school and either 90 percent
5of the pupils would be required to travel 18 miles or 25 percent of
6the pupils would be required to travel 25 miles one way from a
7point on a well-traveled road nearest their homes to the nearest
8other public high school.

9(C) The high school had an average daily attendance ofbegin delete 150end deletebegin insert 144end insert
10 or more and less thanbegin delete 200end deletebegin insert 192end insert in grades 9 to 12, inclusive, during
11the preceding fiscal year and is more than 712 miles by
12well-traveled road from the nearest other public high school and
13either 90 percent of the pupils would be required to travel 15 miles
14or 25 percent of the pupils would be required to travel 20 miles
15one way from a point on a well-traveled road nearest their homes
16to the nearest other public high school.

17(D) The high school had an average daily attendance ofbegin delete 200end delete
18begin insert 192end insert or more and less thanbegin delete 301end deletebegin insert 287end insert in grades 9 to 12, inclusive,
19during the preceding fiscal year and is more than five miles by
20well-traveled road from the nearest other public high school and
21either 90 percent of the pupils would be required to travel 10 miles
22or 25 percent of the pupils would be required to travel 15 miles to
23the nearest other public high school.

24(3) Topographical or other conditions exist in thebegin insert schoolend insert district
25which would impose unusual hardships on the pupils if the number
26of miles specified above were required to be traveled. In these
27cases, the Superintendent may, when requested, and after
28investigation, grant exceptions from the distance requirements.

29(4) The Superintendent has approved the recommendation of a
30county committee on school district organization designating one
31of two or more schools as necessary isolated schools in a situation
32where the schools are operated by two or morebegin insert schoolend insert districts and
33the average daily attendance of each of the schools is less thanbegin delete 301end delete
34begin insert 287end insert in grades 9 to 12, inclusive.

35(b) Forbegin delete theend delete purposes of Section 42284, a necessary small high
36school also includesbegin delete any of the following:end deletebegin insert end insertbegin inserta high school maintained
37by a school district for the exclusive purpose of educating juvenile
38hall pupils or pupils with exceptional needs.end insert

begin delete

39(1) The only high school maintained by a unified school district.

end delete
begin delete

P100  1(2) A high school maintained by a school district for the
2exclusive purpose of educating juvenile hall pupils or pupils with
3exceptional needs.

end delete
begin delete

4(3) (A) The Sea View Elementary School in the Coachella
5Valley Unified School District, as long as the amount of average
6daily attendance of that school is 286 or less.

end delete
begin delete

7(B) The West Shores High School in the Coachella Valley
8Unified School District, as long as the amount of average daily
9attendance of that school is 286 or less.

end delete

10(c) Forbegin delete theend delete purposes of Section 42284, a necessary small high
11school does not include a continuation school.

begin delete

12(d) For each fiscal year, the high school and junior high school
13average daily attendance figures specified in subdivision (a) and
14the ranges of average daily attendance specified in paragraph (2)
15of subdivision (a) shall be reduced by the statewide average rate
16of excused absence reported for high school districts for the
171996-97 fiscal year pursuant to Section 42238.7, with the resultant
18figures and ranges rounded to the nearest integer.

end delete
begin insert

19(d) For purposes of this section, “other public high school” is
20a public school, including a charter school, that serves any of
21grades 9 to 12, inclusive, or grades 7 and 8 in a junior high school.

end insert
22begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 42285.1 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
23

42285.1.  

(a) For purposes of Section 42285, a necessary small
24high school includes the Boys Republic High School maintained
25by the Chino Unified School District in which the majority of the
26pupils are placed by court order and the enrollment of the school
27is less than 200 pupils. The total amount annually received by the
28Chino Unified School District pursuant to this section for the
291988-89 fiscal year and each fiscal year thereafter shall not exceed
30an amount equal to the sum of one hundred eighty thousand dollars
31($180,000) plus the amount of revenue that the average daily
32attendance in the Boys Republic High School would have generated
33pursuant to Section 42238 and paragraph (1) of subdivision (a) of
34Section 42238.5.

35(b) The Chino Unified School District shall submit an annual
36report to the State Department of Education regarding the necessary
37small high school as defined in this section. The report shall
38include, but not be limited to, the number of pupils attending the
39school, the number of teachers teaching in the school, the number
P101  1of days that classes were held in the school, and the type of
2program provided by the district.

3(c) It is the intent of the Legislature that the Chino Unified
4School District receive funding as provided by this section
5commencing with the 1988-89 fiscal year and continuing in
6subsequent fiscal years.

end delete
7begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 42285.4 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
8

42285.4.  

Notwithstanding any other provision of law, the River
9Delta Unified School District is eligible to receive apportionments
10pursuant to the schedule and criteria for small necessary high
11schools set forth in Section 42284 if the school district has no more
12than 3,000 units of average daily attendance.

end delete
13begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 42285.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
14to read:end insert

15

42285.5.  

(a) For purposes of subdivision (a) of Section 42284
16and Section 42285, a school district may include average daily
17attendance in grades 7 and 8 and the instructors of grade 7 and 8
18pupils in the calculation of average daily attendance and number
19of certificated employees employedbegin delete in the 2011-12 fiscal year if
20the school district included average daily attendance in grades 7
21and 8 and the instructors of grade 7 and 8 pupils in the calculation
22of average daily attendance and certificated employees employed
23in the 2010-11 fiscal yearend delete
.

24(b) Notwithstanding Sections 42284 and 42285, for purposes
25of this section, with respect to a school district eligible to utilize
26subdivision (a), any references to grades 9 to 12, inclusive, in
27Sections 42284 and 42285 shall be deemed instead to be references
28to grades 7 to 12, inclusive.

29begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 42286 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
30read:end insert

31

42286.  

(a) Except as required under subdivision (b), if a high
32school is determined to be a necessary small high school under
33Section 42285, that status shall not be changed except as a review
34of the determinative factors made everybegin delete fiveend deletebegin insert twoend insert years following
35the date of the determination indicates that the determination should
36be changed.

37(b) If a high school is determined to be a necessary small high
38school under paragraph (3) of subdivision (b) of Section 42285,
39that status shall not be changed except as a review of the
40determinative factors made every two years following the date of
P102  1the determination indicates that the determination should be
2changed.

3(c) begin deleteAny end deletebegin insertA end inserthigh school that has not been determined to be a
4necessary small high school under Section 42285, may be
5determined to be a necessary small high school at the beginning
6ofbegin delete anyend deletebegin insert aend insert fiscal year if it meets the criteria specified in Section
742285.

8begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 42287 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
9read:end insert

10

42287.  

begin insert(a)end insertbegin insertend insert For the 1984-85 fiscal yearbegin delete and each fiscal year
11thereafter,end delete
begin insert to the 2012-13 fiscal year, inclusive,end insert the Superintendent
12of Public Instruction shall increase the funding amounts specified
13in Sections 42281, 42282, and 42284 by an amount proportionate
14to the increase applied to the statewide average revenue limit for
15unified school districts for the then current fiscal year.

begin insert

16(b) Commencing with the 2013-14 fiscal year, the
17Superintendent shall increase the funding amounts specified in
18Sections 42281, 42282, and 42284, as previously increased
19pursuant to subdivision (a) and Sections 42289 to 42289.5,
20inclusive, by an amount proportionate to the increase in the
21statewide average local control funding formula allocations
22pursuant to Section 42238.02, as implemented by Section 42238.03,
23for the then current fiscal year.

end insert
24begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 42289 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
25read:end insert

26

42289.  

Notwithstanding any otherbegin delete provision ofend delete law, for each
27fiscalbegin delete year, prior toend deletebegin insert year through the 2012-13 fiscal year, beforeend insert
28 calculating the increase in funding amount specified in Section
2942287, the Superintendentbegin delete of Public Instructionend delete shall increase the
30funding amounts specified in Sections 42281, 42282, and 42284,
31by the product of subdivisions (a) and (b):

32(a) The amount per unit of average daily attendance received
33by thebegin insert schoolend insert district pursuant to Section 46201 in the prior fiscal
34year.

35(b) The average daily attendance for each necessary small school
36and necessary small high school for which thebegin insert schoolend insert district
37received funding in the prior fiscal year pursuant to Section 42281,
3842282, or 42284, as appropriate.

39begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 42289.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
40to read:end insert

P103  1

42289.1.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, for
2the 1988-89 fiscal yearbegin delete and each fiscal year thereafter,end deletebegin insert to the
32012-13 fiscal year, inclusive,end insert
after calculating the increase in
4funding amounts specified in Section 42287, the Superintendent
5begin delete of Public Instructionend delete shall increase the funding amounts specified
6in Sections 42281, 42282, and 42284, by the sum of paragraphs
7(1) and (2):

8(1) Compute the product of subparagraphs (A) and (B):

9(A) The amount per unit of average daily attendance computed
10pursuant to subdivision (g) of Section 42240.

11(B) The average daily attendance for each necessary small
12school and necessary small high school for which the district
13receives funding in the current fiscal year pursuant to Section
1442281, 42282, or 42284, as appropriate.

15(2) begin deleteCommencing in end deletebegin insertFrom end insertthe 1990-91 fiscal yearbegin delete and each
16fiscal year thereafter,end delete
begin insert to the 2012-13 fiscal year, inclusive,end insert the
17amount computed pursuant to paragraph (1) shall be increased by
18the percentage cost-of-living increase given to school district
19revenue limits for the then current fiscal year.

20begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 42289.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
21to read:end insert

22

42289.2.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, for
23the 1989-90 fiscal yearbegin delete and each fiscal year thereafter,end deletebegin insert to the
242012-13 fiscal year, inclusive,end insert
after calculating the increase in
25funding amounts specified in Section 42287, the Superintendent
26begin delete of Public Instructionend delete shall increase the funding amounts specified
27in Sections 42281, 42282, and 42284, by the sum of paragraphs
28(1) and (2):

29(1) Compute the product of subparagraphs (A) and (B):

30(A) The amount per unit of average daily attendance computed
31pursuant to subdivision (e) of Section 54060.5.

32(B) The average daily attendance for each necessary small
33school and necessary small high school for which thebegin insert schoolend insert district
34receives funding in the current fiscal year pursuant to Section
3542281, 42282, or 42284, as appropriate.

36(2) begin deleteCommencing in end deletebegin insertFrom end insertthe 1990-91 fiscal yearbegin delete and each
37fiscal year thereafter,end delete
begin insert to the 2012-13 fiscal year, inclusive,end insert the
38amount computed pursuant to paragraph (1) shall be increased by
39the percentage cost-of-living increase given to school district
40revenue limits for the then current fiscal year.

P104  1begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 42289.3 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

42289.3.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, for
4the 1989-90 fiscal yearbegin delete and each fiscal year thereafter,end deletebegin insert to the
52012-13 fiscal year, inclusive,end insert
after calculating the increase in
6funding amounts specified in Section 42287, the Superintendent
7begin delete of Public Instructionend delete shall increase the funding amounts specified
8in Sections 42281, 42282, and 42284, by the sum of paragraphs
9(1) and (2):

10(1) Compute the product of subparagraphs (A) and (B):

11(A) The amount per unit of average daily attendance computed
12pursuant to subdivision (e) of Section 54060.6.

13(B) The average daily attendance for each necessary small
14school and necessary small high school for which thebegin insert schoolend insert district
15receives funding in the current fiscal year pursuant to Section
1642281, 42282, or 42284, as appropriate.

17(2) begin deleteCommencing in end deletebegin insertFrom end insertthe 1990-91 fiscal yearbegin delete and each
18fiscal year thereafter,end delete
begin insert to the 2012-13 fiscal year, inclusive,end insert the
19amount computed pursuant to paragraph (1) shall be increased by
20the percentage cost-of-living increase given to school district
21revenue limits for the then current fiscal year.

22begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 42289.4 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

42289.4.  

(a) Notwithstanding any otherbegin delete provision ofend delete law, for
25the 1989-90 fiscal yearbegin delete and each fiscal year thereafter,end deletebegin insert to the
262012-13 fiscal year, inclusive,end insert
after calculating the increase in
27funding amounts specified in Section 42287, the Superintendent
28of Public Instruction shall increase the funding amounts specified
29in Sections 42281, 42282, and 42284, by the sum of paragraphs
30(1) and (2):

31(1) Compute the product of subparagraphs (A) and (B):

32(A) The amount per unit of average daily attendance computed
33pursuant to subdivision (b) of Section 54060.7.

34(B) The average daily attendance for each necessary small
35school and necessary small high school for which thebegin insert schoolend insert district
36receives funding in the current fiscal year pursuant to Section
3742281, 42282, or 42284, as appropriate.

38(2) begin deleteCommencing in end deletebegin insertFrom end insertthe 1990-91 fiscal yearbegin delete and each
39fiscal year thereafter,end delete
begin insert to the 2012-13 fiscal year, inclusive,end insert the
40amount computed pursuant to paragraph (1) shall be increased by
P105  1the percentage cost-of-living increase given to school district
2revenue limits for the then current fiscal year.

3begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 42289.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

42289.5.  

Notwithstanding any otherbegin delete provision ofend delete law, the
6increases determined pursuant to Sections 42289, 42289.1, 42289.3,
7and 42289.4 shall be permanently increased for the 1998-99 fiscal
8year by the quotient, for eachbegin insert schoolend insert district eligible for an increase,
9of the amount determined pursuant to subparagraph (B) of
10paragraph (3) of subdivision (a) of Section 42238.8begin insert, as that section
11read on January 1, 2013,end insert
divided by the amount determined
12pursuant to subparagraph (C) of paragraph (3) of subdivision (a)
13of Section 42238.8begin insert, as that section read on January 1, 2013end insert.

14begin insert

begin insertSEC. 62.end insert  

end insert

begin insertSection 42605 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
15

42605.  

(a) (1) Unless otherwise prohibited under federal law
16or otherwise specified in subdivision (e), for the 2008-09 fiscal
17year to the 2014-15 fiscal year, inclusive, recipients of funds from
18the items listed in paragraph (2) may use funding received, pursuant
19to subdivision (b), from any of these items listed in paragraph (2)
20that are contained in Section 2.00 of the annual Budget Act, for
21any educational purpose.

22(2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
236110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
246110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
256110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
266110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
276110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
286110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
296110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
306110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
316110-267-0001, 6110-268-0001, and 6360-101-0001 of Section
322.00.

33(b) (1) For the 2009-10 fiscal year to the 2014-15 fiscal year,
34inclusive, the Superintendent or other administering state agency,
35as appropriate, shall apportion from the amounts provided in the
36annual Budget Act for the items enumerated in paragraph (2) of
37subdivision (a) an amount to recipients based on the same relative
38proportion that the recipient received in the 2008-09 fiscal year
39for the programs funded through the items enumerated in paragraph
40(2) of subdivision (a).

P106  1(2) This section and Section 42 of Chapter 12 of the Third
2Extraordinary Session of the Statutes of 2009 do not authorize a
3school district that receives funding on behalf of a charter school
4pursuant to Sections 47634.1 and 47651 to redirect this funding
5for another purpose unless otherwise authorized in law or pursuant
6to an agreement between a charter school and its chartering
7authority. Notwithstanding paragraph (1), for the 2008-09 fiscal
8year to the 2014-15 fiscal year, inclusive, a school district that
9receives funding on behalf of a charter school pursuant to Sections
1047634.1 and 47651 shall continue to distribute the funds to those
11charter schools based on the relative proportion that the school
12district distributed in the 2007-08 fiscal year, and shall adjust those
13amounts to reflect changes in charter school attendance in the
14district. The amounts allocated shall be adjusted for any greater
15or lesser amount appropriated for the items enumerated in
16paragraph (2) of subdivision (a). For a charter school that began
17operation in the 2008-09 fiscal year, if a school district received
18funding on behalf of that charter school pursuant to Sections
1947634.1 and 47651, the school district shall continue to distribute
20the funds to that charter school based on the relative proportion
21that the school district distributed in the 2008-09 fiscal year and
22shall adjust the amount of those funds to reflect changes in charter
23school attendance in the district. The amounts allocated shall be
24adjusted for any greater or lesser amount appropriated for the items
25enumerated in paragraph (2) of subdivision (a).

26(3) Notwithstanding paragraph (1), for the 2008-09 fiscal year
27to the 2014-15 fiscal year, inclusive, the Superintendent shall
28apportion from the amounts appropriated by Item 6110-211-0001
29of Section 2.00 of the annual Budget Act an amount to a charter
30school in accordance with the per-pupil methodology prescribed
31in subdivision (c) of Section 47634.1.

32(4) Notwithstanding paragraph (1), for the 2008-09 fiscal year
33to the 2014-15 fiscal year, inclusive, the Superintendent shall
34apportion from the amounts provided in the annual Budget Act an
35amount to a school district, charter school, and county office of
36education based on the same relative proportion that the local
37educational agency received in the 2007-08 fiscal year for the
38programs funded through the following items contained in Section
392.00 of the annual Budget Act: 6110-104-0001, 6110-105-0001,
406110-156-0001, 6110-190-0001, Schedule (3) of 6110-193-0001,
P107  16110-198-0001, 6110-232-0001, and Schedule (2) of
26110-240-0001.

3(5) For purposes of paragraph (4), if a direct-funded charter
4school began operation in the 2008-09 fiscal year, the amount that
5the charter school was entitled to receive from the items
6enumerated in paragraph (4) for the 2008-09 fiscal year, as certified
7by the Superintendent in March 2009, is deemed to have been
8received in the 2007-08 fiscal year.

9(c) (1) This section does not obligate the state to refund or repay
10reductions made pursuant to this section. A decision by a school
11district to reduce funding pursuant to this section for a
12state-mandated local program shall constitute a waiver of the
13subvention of funds that the school district is otherwise entitled to
14pursuant to Section 6 of Article XIII B of the California
15Constitution on the amount so reduced.

16(2) (A) As a condition of receipt of funds, the governing board
17of the school district or governing board of the county office of
18education, as appropriate, at a regularly scheduled open public
19hearing shall take testimony from the public, discuss, approve or
20disapprove the proposed use of funding, and make explicit for each
21of the budget items in paragraph (2) of subdivision (a) the purposes
22for which the funds will be used.

23(B) The regularly scheduled open public hearing held pursuant
24to subparagraph (A) shall be held before and independent of a
25meeting where the governing board of the school district or
26governing board of the county office of education adopts a budget.
27If the governing board intends to close a program funded by the
28items listed in paragraph (2) of subdivision (a), the governing board
29shall identify, in the notice of the agenda of the public hearing or
30at another public hearing, the program or programs proposed to
31be closed.

32(3) Using the Standardized Account Code Structure reporting
33process, a local educational agency shall report expenditures of
34funds pursuant to the authority of this section by using the
35appropriate function codes to indicate the activities for which these
36funds are expended. The department shall collect and provide this
37information to the Department of Finance and the appropriate
38policy and budget committees of the Legislature by April 15, 2010,
39and annually thereafter on April 15 until, and including, April 15,
402016.

P108  1(d) For the 2008-09 fiscal year to the 2014-15 fiscal year,
2inclusive, local educational agencies that use the flexibility
3provision of this section shall be deemed to be in compliance with
4the program and funding requirements contained in statutory,
5regulatory, and provisional language, associated with the items
6enumerated in subdivision (a).

7(e) Notwithstanding subdivision (d), the following requirements
8shall continue to apply:

9(1) For Item 6110-105-0001 of Section 2.00 of the annual
10Budget Act, the amount authorized for flexibility shall exclude the
11 funding provided to fund remedial educational services pursuant
12to Provision 4. For Item 6110-156-0001 of Section 2.00 of the
13annual Budget Act, the amount authorized for flexibility shall
14exclude the funding provided for instruction of CalWORKs-eligible
15students pursuant to Schedules (2) and (3) and Provisions 2 and
164.

17(2) (A) Any instructional materials purchased by a local
18educational agency for kindergarten and grades 1 to 8, inclusive,
19and for grades 9 to 12, inclusive, shall be aligned with the state
20standards adopted pursuant to Section 60605 or 60605.8, and shall
21also meet the reporting and sufficiency requirements contained in
22Section 60119.

23(B) For purposes of this section, “sufficiency” means that each
24pupil has sufficient textbooks and instructional materials in the
25four core areas as defined by Section 60119 and that all pupils
26within the local educational agency who are enrolled in the same
27course shall have identical textbooks and instructional materials,
28as specified in Section 1240.3.

29(3) For Item 6110-195-0001 of Section 2.00 of the annual
30Budget Act, the item shall exclude moneys that are required to
31fund awards for teachers that have previously met the requirements
32necessary to obtain these awards, until the award is paid in full.

33(4) For Item 6110-266-0001 of Section 2.00 of the annual
34Budget Act, a county office of education shall conduct at least one
35site visit to each of the required schoolsites pursuant to Section
361240 and shall fulfill all of the duties set forth in Sections 1240
37and 44258.9.

38(5) For Item 6110-198-0001 of Section 2.00 of the annual
39Budget Act, a school district or county office of education that
40operates the child care component of the Cal-SAFE program shall
P109  1comply with paragraphs (5) and (6) of subdivision (c) of Section
254746.

3(f) This section does not invalidate any state law pertaining to
4teacher credentialing requirements or the functions that require
5credentials.

end delete
6begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 42606 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
7

42606.  

(a) To the extent funds are provided, for the 2010-11
8to the 2014-15 fiscal years, inclusive, the Superintendent shall
9allocate a supplemental categorical block grant to a charter school
10that began operation during or after the 2008-09 fiscal year. These
11supplemental categorical block grant funds may be used for any
12educational purpose. Commencing in the 2011-12 fiscal year, a
13locally or direct funded charter school that converted from a
14preexisting school between the 2008-09 and 2014-15 fiscal years,
15inclusive, is not eligible for funding specified in this section. A
16charter school that receives funding pursuant to this subdivision
17shall not receive additional funding for programs specified in
18paragraph (2) of subdivision (a) of Section 42605, with the
19exception of the program funded pursuant to Item 6110-211-0001
20of Section 2.00 of the annual Budget Act.

21(b) (1) For the 2010-11 fiscal year, the supplemental categorical
22block grant shall equal one hundred twenty-seven dollars ($127)
23per unit of charter school average daily attendance as determined
24at the 2010-11 second principal apportionment for charter schools
25commencing operations during or after the 2008-09 fiscal year.
26A locally funded charter school that converted from a preexisting
27school during or after the 2008-09 fiscal year is not eligible for
28funding specified in this section.

29(2) For the 2011-12 to the 2014-15 fiscal years, inclusive, the
30supplemental categorical block grant shall equal one hundred
31twenty-seven dollars ($127) per unit of charter school average
32daily attendance as determined at the current year second principal
33apportionment for charter schools commencing operations during
34or after the 2008-09 fiscal year. In lieu of this supplemental grant,
35a school district shall provide new conversion charter schools that
36commenced operations within the district during or after the
372008-09 fiscal year, one hundred twenty-seven dollars ($127) per
38unit of charter school average daily attendance as determined at
39the current year second principal apportionment. This paragraph
40does not preclude a school district and a new conversion charter
P110  1school from negotiating an alternative funding rate. Absent
2agreement from both parties on an alternative rate, the school
3district shall be obligated to provide funding at the one hundred
4twenty-seven dollars ($127) per average daily attendance rate.

end delete
5begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 42800 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
6read:end insert

7

42800.  

(a) The governing board ofbegin delete anyend deletebegin insert aend insert school district may,
8with the consent of the county superintendent of schools, establish
9a revolving cash fund for the use of the chief accounting officer
10of thebegin insert schoolend insert district, by adopting a resolution setting forth the
11necessity for the revolving cash fund, the officer for whom and
12the purposes for which the revolving cash fund shall be available,
13and the amount of the fund. The purposes for which the revolving
14cash fund shall be available shall include the purposes specified
15in Section 45167. Three certified copies of the resolution shall be
16transmitted to the county superintendent of schools. If he approves
17the establishment of the fund, the county superintendent shall
18endorse his consent on the resolution and return one copy to the
19governing body of thebegin insert schoolend insert district, and transmit one copy to the
20county auditor.

21(b) The maximum amount allowed for revolving cash funds
22established pursuant to subdivision (a) shall be the lesser of:

23(1) Two percent of the district’s estimated expenditures for the
24current fiscal year, or

25(2) A dollar amount limit of seventy-five thousand dollars
26($75,000) for any elementary school or high school district and
27one hundred fifty thousand dollars ($150,000) for any unified
28school district for fiscal year 1990-91. The dollar amount limit
29for eachbegin insert schoolend insert districtbegin delete shall thereafterend deletebegin insert shall, through the 2012-13
30fiscal year,end insert
be increased annually by the percentage increase in
31the district’s revenue limit established by Section 42238begin insert, as that
32section read on January 1, 2013. The dollar amount limit for each
33school district shall thereafter be increased annually by the
34percentage increase in the school district’s local control funding
35formula allocation established pursuant to Section 42238.02, as
36implemented pursuant to Section 42238.03end insert
.

37begin insert

begin insertSEC. 65.end insert  

end insert

begin insertSection 46200 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
38read:end insert

begin delete
39

46200.  

(a) In the 1984-85 fiscal year, for each school district
40that certifies to the Superintendent of Public Instruction that it
P111  1offers 180 days or more of instruction per school year, the
2Superintendent of Public Instruction shall apportion thirty-five
3dollars ($35) per unit of average daily attendance, exclusive of
4adult average daily attendance, the average daily attendance of
5pupils while participating in regional occupation centers or
6programs, and average daily attendance for pupils attending
7summer school. A multitrack year-round school shall be deemed
8to be in compliance with the 180-day requirement if it certifies to
9the Superintendent of Public Instruction that it is a multitrack
10year-round school and maintains its school for a minimum of 163
11schooldays. Each school district that received an apportionment
12pursuant to this subdivision in the 1984-85 fiscal year shall add
13thirty-five dollars ($35) to the district’s base revenue limit per unit
14of average daily attendance for the 1985-86 fiscal year.

15(b) For any school district that received an apportionment
16pursuant to subdivision (a) and that offered less than 180 days, or
17offered less than the number of days required in subdivision (a)
18for multitrack year-round schools, of instruction in the 1985-86
19fiscal year to the 2000-01 fiscal year, inclusive, and that does not
20provide the minimum number of instructional minutes specified
21in subdivision (a) of Section 46201 for that fiscal year, the
22Superintendent of Public Instruction shall reduce the base revenue
23limit per unit of average daily attendance for that fiscal year or
24years by an amount attributable to the increase received pursuant
25to subdivision (a), as adjusted in fiscal years subsequent to the
261984-85 fiscal year.

27(c) 

end delete
28begin insert

begin insert46200.end insert  

end insert

Forbegin delete anyend deletebegin insert aend insert school district that received an apportionment
29pursuant to subdivision (a)begin insert of this section, as it read on January
301, 2013,end insert
and that offers less than 180 days of instruction or, in
31multitrack year-round schools, fewer than the number of days
32required in subdivision (a)begin insert of this section, as it read on January
331, 2013,end insert
for multitrack year-round schools, in thebegin delete 2001-02end deletebegin insert 2013-14end insert
34 fiscal year, or any fiscal year thereafter, the Superintendentbegin delete of
35Public Instructionend delete
shall withhold from thebegin delete district’s revenue limit
36apportionmentend delete
begin insert school district’s local control funding formula grant
37apportionment pursuant to Section 42238.02, as implemented by
38Section 42238.03,end insert
for the average daily attendance of each affected
39grade level the sum of 0.0056 multiplied bybegin delete that apportionment,end delete
40begin insert the apportionment received pursuant to subdivision (a) of this
P112  1section, as it read on January 1, 2013,end insert
for each day less than 180,
2or, in multitrack year-round schools, for each day less than the
3number of days required in subdivision (a) for year-round schools
4that thebegin insert schoolend insert district offered.

begin delete

5(d) For any school district that received an apportionment
6pursuant to subdivision (a) and that offered less than 180 days of
7instruction as required in subdivision (a) in the 1985-86 fiscal
8year, to either the end of the final year of the teacher bargaining
9unit contract in force in that district on January 1, 2002, inclusive,
10or, if no teacher bargaining unit contract was in force in that district
11on January 1, 2002, to the end of the 2001-02 fiscal year, inclusive,
12and that provided the minimum number of instructional minutes
13in subdivision (a) of Section 46201 during all of the period
14applicable to the district pursuant to this subdivision, subdivision
15(c) shall not apply until the first fiscal year following the end of
16the applicable period of years.

end delete
17begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 46201 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

begin delete
19

46201.  

(a) In each of the 1984-85, 1985-86, and 1986-87
20fiscal years, for each school district that certifies to the
21Superintendent of Public Instruction that it offers at least the
22amount of instructional time specified in this subdivision at a grade
23level or levels, the Superintendent of Public Instruction shall
24determine an amount equal to twenty dollars ($20) per unit of
25current year second principal apportionment regular average daily
26attendance in kindergarten and grades 1 to 8, inclusive, and forty
27dollars ($40) per unit of current year second principal
28apportionment regular average daily attendance in grades 9 to 12,
29inclusive. This section shall not apply to adult average daily
30attendance, the average daily attendance for pupils attending
31summer schools, alternative schools, regional occupational centers
32and programs, continuation high schools, or opportunity schools,
33and the attendance of pupils while participating in community
34college or independent study programs.

35(1) In the 1984-85 fiscal year, for kindergarten and each of
36grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):

37(A) The number of instructional minutes offered at that grade
38level in the 1982-83 fiscal year.

39(B) One-third of the difference between the number of minutes
40specified for that grade level in paragraph (3) and the number of
P113  1instructional minutes offered at that grade level in the 1982-83
2fiscal year.

3(2) In the 1985-86 fiscal year, for kindergarten and each of
4grades 1 to 12, inclusive, the sum of subparagraphs (A) and (B):

5(A) The number of instructional minutes offered at that grade
6level in the 1982-83 fiscal year.

7(B) Two-thirds of the difference between the number of minutes
8specified for that grade level in paragraph (3) and the number of
9instructional minutes offered at that grade level in the 1982-83
10fiscal year.

11(3) In the 1986-87 fiscal year:

12(A) Thirty-six thousand minutes in kindergarten.

13(B) Fifty thousand four hundred minutes in grades 1 to 3,
14inclusive.

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

16(D) Sixty-four thousand eight hundred minutes in grades 9 to
1712, inclusive.

18(4) In any fiscal year, each school district that receives an
19apportionment pursuant to subdivision (a) for average daily
20attendance in grades 9 to 12, inclusive, shall offer a program of
21instruction that allows each student to receive at least 24 course
22years of instruction, or the equivalent, during grades 9 to 12,
23inclusive.

24(5) For any schoolsite at which programs are operated in more
25than one of the grade levels enumerated in subparagraph (B) or
26(C) of paragraph (3), the school district may calculate a weighted
27average of minutes for those grade levels at that schoolsite for
28purposes of making the certification authorized by this subdivision.

29(b) (1) If any of the amounts of instructional time specified in
30paragraph (3) of subdivision (a) is a lesser number of minutes for
31that grade level than actually provided by the district in the same
32grade in the 1982-83 fiscal year, the 1982-83 fiscal year number
33of minutes for that grade level, adjusted to comply with Section
3446111, shall instead be the requirement for the purposes of
35paragraphs (1), (2), and (3) of subdivision (a). Commencing with
36the 1990-91 fiscal year, and each fiscal year through the 1995-96
37fiscal year, any school district subject to this subdivision that does
38not maintain the number of instructional minutes for a particular
39grade level that the school district maintained for the 1982-83
40fiscal year, adjusted to comply with Section 46111, shall not be
P114  1subject to paragraphs (1) to (3), inclusive, of subdivision (c) if that
2school district maintains at least the minimum number of
3instructional minutes for each grade level set forth in paragraph
4(3) of subdivision (a) in the 1990-91 fiscal year and each fiscal
5year through the 1994-95 fiscal year or the 1995-96 fiscal year
6for districts whose instructional minutes were adjusted to comply
7with Section 46111, and thereafter returns to the number of
8instructional minutes maintained for each grade level in the
91982-83 fiscal year.

10(2) The Legislature finds and declares that the school districts
11to which paragraph (1) is applicable have not offered any less
12instructional time than is required of all other school districts and
13therefore should not be forced to pay any penalty.

14(c) (1) For any school district that receives an apportionment
15pursuant to subdivision (a) in the 1984-85 fiscal year and that
16reduces the amount of instructional time offered below the
17minimum amounts specified in paragraph (1) of subdivision (a)
18in the 1985-86 fiscal year or any fiscal year thereafter, up to and
19including the 2000-01 fiscal year, the Superintendent of Public
20Instruction shall reduce the base revenue limit per unit of average
21 daily attendance for the fiscal year in which the reduction occurs
22by an amount attributable to the increase in the 1985-86 fiscal
23year base revenue limit per unit of average daily attendance
24pursuant to paragraph (4) of subdivision (b) of Section 42238, as
25adjusted in the 1985-86 fiscal year and fiscal years thereafter.

26(2) For each school district that receives an apportionment
27pursuant to subdivision (a) in the 1985-86 fiscal year and that
28reduces the amount of instructional time offered below the
29minimum amounts specified in paragraph (2) of subdivision (a)
30in the 1986-87 fiscal year or any fiscal year thereafter, up to and
31including the 2000-01 fiscal year, the Superintendent of Public
32Instruction shall reduce the base revenue limit per unit of average
33daily attendance for the fiscal year in which the reduction occurs
34by an amount attributable to the increase in the 1986-87 fiscal
35year base revenue limit per unit of average daily attendance
36pursuant to paragraph (4) of subdivision (b) of Section 42238, as
37adjusted in the 1986-87 fiscal year and fiscal years thereafter.

38(3) For each school district that receives an apportionment
39pursuant to subdivision (a) in the 1986-87 fiscal year and that
40reduces the amount of instructional time offered below the
P115  1minimum amounts specified in paragraph (3) of subdivision (a)
2in the 1987-88 fiscal year or any fiscal year thereafter, up to and
3including the 2000-01 fiscal year, the Superintendent of Public
4Instruction shall reduce the base revenue limit per unit of average
5daily attendance for the fiscal year in which the reduction occurs
6by an amount attributable to the increase in the 1987-88 fiscal
7year base revenue limit per unit of average daily attendance
8pursuant to paragraph (4) of subdivision (b) of Section 42238, as
9adjusted in the 1987-88 fiscal year and fiscal years thereafter.

10(d)

end delete
11begin insert

begin insert46201.end insert  

end insert

begin insert(a)end insert For each school district thatbegin delete receivesend deletebegin insert receivedend insert an
12apportionment pursuant to subdivision (a)begin delete in the 1986-87 fiscal
13yearend delete
begin insert of this section, as it read on January 1, 2013,end insert and that reduces
14the amount of instructional time offered below the minimum
15amounts specified inbegin delete either paragraph (3) of subdivision (a) or
16paragraph (1) ofend delete
subdivision (b),begin delete whichever is applicable, in the
172001-02 fiscal year, or any fiscal year thereafter,end delete
the
18Superintendentbegin delete of Public Instructionend delete shall withhold from the
19begin delete district’s revenue limit apportionmentend deletebegin insert school district’s local control
20funding formula grant apportionment pursuant to Section
2142238.02, as implemented by Section 42238.03,end insert
for the average
22daily attendance of each affected grade level, the sum ofbegin delete that
23apportionmentend delete
begin insert the apportionment received pursuant to subdivision
24(a) of this section, as it read on January 1, 2013,end insert
multiplied by
25the percentage of the minimum offered minutes at that grade level
26that thebegin insert schoolend insert district failed to offer.

begin insert

27(b) Commencing with the 2013-14 fiscal year:

end insert
begin insert

28(1) Thirty-six thousand minutes in kindergarten.

end insert
begin insert

29(2) Fifty thousand four hundred minutes in grades 1 to 3,
30inclusive.

end insert
begin insert

31(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.

end insert
begin insert

32(4) Sixty-four thousand eight hundred minutes in grades 9 to
3312, inclusive.

end insert
34begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 46201.2 of the end insertbegin insertEducation Codeend insertbegin insert is amended
35to read:end insert

36

46201.2.  

(a) Commencing with the 2009-10 school year and
37continuing through thebegin delete 2014-15end deletebegin insert 2012-13end insert school year, a school
38district, county office of education, or charter school may reduce
39the equivalent of up to five days of instruction or the equivalent
40number of instructional minutes without incurring the penalties
P116  1set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
246202, and 47612.5begin insert, as those sections read on January 1, 2013end insert.
3A school district, county office of education, or charter school
4shall receive revenue limit funding based on the adjustments
5prescribed pursuant to Section 42238.146begin insert, as it read on January
61, 2013,end insert
whether or not it reduces the number of schooldays or
7instructional minutes.

begin insert

8(b) For the 2013-14 and 2014-15 school years, a school district,
9county office of education, or charter school may reduce the
10equivalent of up to five days of instruction or the equivalent number
11of instructional minutes without incurring the penalties set forth
12in Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and
1347612.5.

end insert
begin delete

14(b)

end delete

15begin insert(c)end insert This section shall become inoperative on July 1, 2015, and,
16as of January 1, 2016, is repealed, unless a later enacted statute,
17that becomes operative on or before January 1, 2016, deletes or
18extends the dates on which it becomes inoperative and is repealed.

19begin insert

begin insertSEC. 68.end insert  

end insert

begin insertSection 46201.3 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
20

46201.3.  

(a) For the 2011-12 school year, the minimum
21number of instructional days and minutes school districts, county
22offices of education, and charter schools are required to offer as
23set forth in Sections 41420, 46200, 46200.5, 46201, 46201.5,
2446202, and 47612.5 shall be reduced by up to seven days.

25(b) Implementation of the reduction in the number of
26instructional days offered by a school district, county office of
27education, and charter school that is subject to collective bargaining
28pursuant to Chapter 10.7 (commencing with Section 3540) of
29Division 4 of Title 1 of the Government Code shall be achieved
30through the bargaining process, provided that the agreement has
31been completed and reductions implemented no later than June
3230, 2012.

33(c) The revenue limit for each school district, county office of
34education, and charter school determined pursuant to Article 3
35(commencing with Section 2550) of Chapter 12 of Part 2 of
36Division 1 of Title 1, Article 2 (commencing with Section 42238)
37of Chapter 7 of Part 24 of Division 3, and Article 2 (commencing
38with Section 47633) of Chapter 6 of Part 26.8 of Division 4 shall
39be reduced by the product of 4 percent and the fraction determined
40pursuant to paragraph (2).

P117  1(1) Subtract the revenue forecast determined pursuant to
2subdivision (a) of Section 3.94 of the Budget Act of 2011 from
3eighty-six billion four hundred fifty-two million five hundred
4thousand dollars ($86,452,500,000).

5(2) Divide the lesser of two billion dollars ($2,000,000,000) or
6the amount calculated in paragraph (1) by two billion dollars
7($2,000,000,000).

8(d) This section does not affect the number of instructional days
9or instructional minutes that may be reduced pursuant to Section
1046201.2.

11(e) The revenue limit reductions authorized by this section,
12when combined with the reductions applied under subdivision (c)
13of Section 3.94 of the Budget Act of 2011, may not be applied so
14as to reduce school funding below the requirements of Section 8
15of Article XVI of the California Constitution based on the
16applicable revenues estimated by the Department of Finance
17pursuant to Section 3.94 of the Budget Act of 2011.

18(f) This section shall be operative on February 1, 2012, only for
19the 2011-12 school year and only if subdivision (c) of Section
203.94 of the Budget Act of 2011 is operative.

end delete
21begin insert

begin insertSEC. 69.end insert  

end insert

begin insertSection 46202 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
22read:end insert

begin delete
23

46202.  

(a) Except as otherwise provided in this section, in
24fiscal year 2000-01 and prior, if the governing board of a school
25district offers less instructional time than the amount of
26instructional time fixed for the 1982-83 fiscal year, the
27Superintendent of Public Instruction shall, in that fiscal year, reduce
28that district’s apportionment by the average percentage increase
29in the base revenue limit for districts of similar type and size
30multiplied by the district’s units of average daily attendance.

31(b) Except as otherwise provided in this section, in fiscal year
322001-02 and any fiscal year thereafter, if

end delete
33begin insert

begin insert46202.end insert  

end insert

begin insertIf end inserta school district that does not participate in the
34program set forth inbegin delete this articleend deletebegin insert Sections 46200 to 46206, inclusive,
35as those sections read on January 1, 2013,end insert
offers less instructional
36timebegin insert in a fiscal yearend insert than the amount of instructional time fixed
37for the 1982-83 fiscal year, the Superintendentbegin delete of Public Instructionend delete
38 shall withhold for that fiscal year, from thebegin delete district’s revenue limit
39apportionmentend delete
begin insert school district’s local control funding formula grant
40apportionment pursuant to Section 42238.03, as implemented by
P118  1Section 42238.03,end insert
for the average daily attendance of each affected
2grade level, the amount of that apportionment multiplied by the
3percentage of instructional minutes fixed in the 1982-83 school
4year, at that grade level, that thebegin insert schoolend insert district failed to offer.

begin delete

5(c) The Glendora Unified School District shall reinstate the
6sixth period, which shall be equivalent to at least 50 minutes of
7instruction, effective the start of the second semester of the
81983-84 fiscal year.

end delete
9begin insert

begin insertSEC. 70.end insert  

end insert

begin insertSection 46204 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
10

46204.  

The Superintendent of Public Instruction shall reduce
11the time periods specified in Sections 46200 and 46201 to the
12extent that the superintendent determines that insufficient funds
13are available to fund the per pupil amounts prescribed by those
14sections.

end delete
15begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 46207 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert46207.end insert  

(a) Notwithstanding Sections 46200 to 46205, inclusive,
18upon a determination that a school district equals or exceeds its
19local control funding formula target computed pursuant to Section
2042238.02 as determined by the calculation of a zero difference
21pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
22each school district, as a condition of apportionment pursuant to
23Section 42238.02, as implemented pursuant to Section 42238.03,
24shall, for each fiscal year, offer, at a minimum, the following
25number of minutes of instruction:

26(1) To pupils in kindergarten, 36,000 minutes.

27(2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.

28(3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.

29(4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.

30(b) For a school district that has met its local control funding
31formula target that reduces the amount of instructional time offered
32below the minimum amounts specified in subdivision (a), the
33Superintendent shall withhold from the school district’s local
34control funding formula apportionment for the average daily
35attendance of each affected grade level, the product of that
36apportionment multiplied by the percentage of the minimum offered
37minutes at that grade level that the school district failed to offer.

38(c) Notwithstanding subdivision (a), for the 2013-14 and
392014-15 school years, a school district that equals or exceeds its
40computed local control funding formula target may reduce the
P119  1equivalent of up to five days of instruction or the equivalent number
2of instructional minutes without incurring the penalties set forth
3in this section.

end insert
4begin insert

begin insertSEC. 72.end insert  

end insert

begin insertSection 46208 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert46208.end insert  

(a) Notwithstanding Sections 46200 to 46205, inclusive,
7upon a determination that a school district equals or exceeds its
8local control funding formula target computed pursuant to Section
942238.02 as determined by the calculation of a zero difference
10pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
11each school district, as a condition of apportionment pursuant to
12Section 42238.02, as implemented pursuant to Section 42238.03,
13shall offer 180 days or more of instruction per school year. A
14school operating a multitrack year-round school shall be deemed
15to be in compliance with the 180-day requirement if it certifies to
16the Superintendent that it is a multitrack year-round school and
17maintains its school for a minimum of 163 schooldays.

18(b) Notwithstanding subdivision (a), for the 2013-14 and
192014-15 school years, a school district that equals or exceeds its
20computed local control funding formula target may reduce the
21equivalent of up to five days of instruction or the equivalent number
22of instructional minutes without incurring the penalties set forth
23in this section.

end insert
24begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 47604.32 of the end insertbegin insertEducation Codeend insertbegin insert is amended
25to read:end insert

26

47604.32.  

Each chartering authority, in addition to any other
27duties imposed by this part, shall do all of the following with
28respect to each charter school under its authority:

29(a) Identify at least one staff member as a contact person for
30the charter school.

31(b) Visit each charter school at least annually.

32(c) Ensure that each charter school under its authority complies
33with all reports required of charter schools by lawbegin insert, including the
34annual update required pursuant to Sectionend insert
begin insert 47606.5end insert.

35(d) Monitor the fiscal condition of each charter school under its
36authority.

37(e) Provide timely notification to the department if any of the
38following circumstances occur or will occur with regard to a charter
39school for which it is the chartering authority:

40(1) A renewal of the charter is granted or denied.

P120  1(2) The charter is revoked.

2(3) The charter school will cease operation for any reason.

3(f) The cost of performing the duties required by this section
4shall be funded with supervisorial oversight fees collected pursuant
5to Section 47613.

6begin insert

begin insertSEC. 74.end insert  

end insert

begin insertSection 47604.33 of the end insertbegin insertEducation Codeend insertbegin insert is amended
7to read:end insert

8

47604.33.  

(a) Each charter school shall annually prepare and
9submit the following reports to its chartering authority and the
10county superintendent of schools, or only to the county
11superintendent of schools if the county board of education is the
12chartering authority:

13(1) On or before July 1, a preliminary budget. For a charter
14school in its first year of operation, the information submitted
15pursuant to subdivision (g) of Section 47605 satisfies this
16requirement.

begin insert

17(2) On or before July 1, an annual update required pursuant to
18Section 47606.5.

end insert
begin delete

19(2)

end delete

20begin insert(3)end insert On or before December 15, an interim financial report. This
21report shall reflect changes through October 31.

begin delete

22(3)

end delete

23begin insert(4)end insert On or before March 15, a second interim financial report.
24This report shall reflect changes through January 31.

begin delete

25(4)

end delete

26begin insert(5)end insert On or before September 15, a final unaudited report for the
27full prior year.

28(b) The chartering authority shall use any financial information
29it obtains from the charter school, including, but not limited to,
30the reports required by this section, to assess the fiscal condition
31of the charter school pursuant to subdivision (d) of Section
3247604.32.

33(c) The cost of performing the duties required by this section
34shall be funded with supervisorial oversight fees collected pursuant
35to Section 47613.

36begin insert

begin insertSEC. 75.end insert  

end insert

begin insertSection 47604.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

47604.5.  

Thebegin delete State Board of Education,end deletebegin insert state board,end insert whether
39or not it is the authority that granted the charter, may, based upon
40the recommendation of the Superintendentbegin delete of Public Instructionend delete,
P121  1take appropriate action, including, but not limited to, revocation
2of the school’s charter, when thebegin delete State Board of Educationend deletebegin insert state
3boardend insert
finds any of the following:

4(a) Gross financial mismanagement that jeopardizes the financial
5stability of the charter school.

6(b) Illegal or substantially improper use of charter school funds
7for the personal benefit of any officer, director, or fiduciary of the
8charter school.

9(c) Substantial and sustained departure from measurably
10successful practices such that continued departure would jeopardize
11the educational development of the school’s pupils.

begin insert

12(d) Failure to improve pupil outcomes across multiple state and
13school priorities identified in the charter pursuant to subparagraph
14(A) of paragraph (5) of subdivision (b) of Section 47605 or
15subparagraph (A) of paragraph (5) of subdivision (d) of Section
1647605.6.

end insert
17begin insert

begin insertSEC. 76.end insert  

end insert

begin insertSection 47605 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
18read:end insert

19

47605.  

(a) (1) Except as set forth in paragraph (2), a petition
20for the establishment of a charter school within a school district
21may be circulated by one or more persons seeking to establish the
22charter school. A petition for the establishment of a charter school
23shall identify a single charter school that will operate within the
24geographic boundaries of that school district. A charter school
25may propose to operate at multiple sites within the school district,
26as long as each location is identified in the charter school petition.
27The petition may be submitted to the governing board of the school
28district for review after either of the following conditions is met:

29(A) The petition is signed by a number of parents or legal
30guardians of pupils that is equivalent to at least one-half of the
31number of pupils that the charter school estimates will enroll in
32the school for its first year of operation.

33(B) The petition is signed by a number of teachers that is
34equivalent to at least one-half of the number of teachers that the
35charter school estimates will be employed at the school during its
36first year of operation.

37(2) A petition that proposes to convert an existing public school
38to a charter school that would not be eligible for a loan pursuant
39to subdivision (b) of Section 41365 may be circulated by one or
40more persons seeking to establish the charter school. The petition
P122  1may be submitted to the governing board of the school district for
2review after the petition is signed by not less than 50 percent of
3the permanent status teachers currently employed at the public
4school to be converted.

5(3) A petition shall include a prominent statement that a
6signature on the petition means that the parent or legal guardian
7is meaningfully interested in having his or her child or ward attend
8the charter school, or in the case of a teacher’s signature, means
9that the teacher is meaningfully interested in teaching at the charter
10school. The proposed charter shall be attached to the petition.

11(4) After receiving approval of its petition, a charter school that
12proposes to establish operations at one or more additional sites
13shall request a material revision to its charter and shall notify the
14authority that granted its charter of those additional locations. The
15authority that granted its charter shall consider whether to approve
16those additional locations at an open, public meeting. If the
17additional locations are approved, they shall be a material revision
18to the charter school’s charter.

19(5) A charter school that is unable to locate within the
20jurisdiction of the chartering school district may establish one site
21outside the boundaries of the school district, but within the county
22in which that school district is located, if the school district within
23the jurisdiction of which the charter school proposes to operate is
24notified in advance of the charter petition approval, the county
25superintendent of schools and the Superintendent are notified of
26the location of the charter school before it commences operations,
27and either of the following circumstances exists:

28(A) The school has attempted to locate a single site or facility
29to house the entire program, but a site or facility is unavailable in
30the area in which the school chooses to locate.

31(B) The site is needed for temporary use during a construction
32or expansion project.

33(6) Commencing January 1, 2003, a petition to establish a charter
34school may not be approved to serve pupils in a grade level that
35is not served by the school district of the governing board
36considering the petition, unless the petition proposes to serve pupils
37in all of the grade levels served by that school district.

38(b) No later than 30 days after receiving a petition, in accordance
39with subdivision (a), the governing board of the school district
40shall hold a public hearing on the provisions of the charter, at
P123  1which time the governing board of the school district shall consider
2the level of support for the petition by teachers employed by the
3district, other employees of the district, and parents. Following
4review of the petition and the public hearing, the governing board
5of the school district shall either grant or deny the charter within
660 days of receipt of the petition, provided, however, that the date
7may be extended by an additional 30 days if both parties agree to
8the extension. In reviewing petitions for the establishment of
9charter schools pursuant to this section, the chartering authority
10shall be guided by the intent of the Legislature that charter schools
11are and should become an integral part of the California educational
12system and that establishment of charter schools should be
13encouraged. The governing board of the school district shall grant
14a charter for the operation of a school under this part if it is satisfied
15that granting the charter is consistent with sound educational
16practice. The governing board of the school district shall not deny
17a petition for the establishment of a charter school unless it makes
18written factual findings, specific to the particular petition, setting
19forth specific facts to support one or more of the following
20findings:

21(1) The charter school presents an unsound educational program
22for the pupils to be enrolled in the charter school.

23(2) The petitioners are demonstrably unlikely to successfully
24implement the program set forth in the petition.

25(3) The petition does not contain the number of signatures
26required by subdivision (a).

27(4) The petition does not contain an affirmation of each of the
28conditions described in subdivision (d).

29(5) The petition does not contain reasonably comprehensive
30descriptions of all of the following:

31(A) (i) A description of the educational program of the school,
32designed, among other things, to identify those whom the school
33is attempting to educate, what it means to be an “educated person”
34in the 21st century, and how learning best occurs. The goals
35identified in that program shall include the objective of enabling
36pupils to become self-motivated, competent, and lifelong learners.

begin insert

37(ii) A description, for the charter school, of annual goals, for
38all pupils and for each subgroup of pupils identified pursuant to
39Section 52052, to be achieved in the state priorities, as described
40in subdivision (d) of Section 52060, that apply for the grade levels
P124  1served, or the nature of the program operated, by the charter
2school, and specific annual actions to achieve those goals. A
3charter petition may identify additional school priorities, the goals
4for the school priorities, and the specific annual actions to achieve
5those goals.

end insert
begin delete

6(ii)

end delete

7begin insert(iii)end insert If the proposed school will serve high school pupils, a
8description of the manner in which the charter school will inform
9parents about the transferability of courses to other public high
10schools and the eligibility of courses to meet college entrance
11requirements. Courses offered by the charter school that are
12accredited by the Western Association of Schools and Colleges
13may be considered transferable and courses approved by the
14University of California or the California State University as
15creditable under the “A” to “G” admissions criteria may be
16considered to meet college entrance requirements.

17(B) The measurable pupil outcomes identified for use by the
18charter school. “Pupil outcomes,” for purposes of this part, means
19the extent to which all pupils of the school demonstrate that they
20have attained the skills, knowledge, and attitudes specified as goals
21in the school’s educational program. Pupil outcomes shall include
22outcomes that address increases in pupil academic achievement
23both schoolwide and for all groups of pupils served by the charter
24school, as that term is defined in subparagraph (B) of paragraph
25(3) of subdivision (a) of Section 47607.begin insert The pupil outcomes shall
26align with the state priorities, as described in subdivision (d) of
27Section 52060, that apply for the grade levels served, or the nature
28of the program operated, by the charter school.end insert

29(C) The method by which pupil progress in meeting those pupil
30outcomes is to be measured.begin insert To the extent practicable, the method
31for measuring pupil end insert
begin insertoutcomes for state priorities shall be consistent
32with the way information is reported on a school accountability
33report card.end insert

34(D) The governance structure of the school, including, but not
35limited to, the process to be followed by the school to ensure
36parental involvement.

37(E) The qualifications to be met by individuals to be employed
38by the school.

39(F) The procedures that the school will follow to ensure the
40health and safety of pupils and staff. These procedures shall include
P125  1the requirement that each employee of the school furnish the school
2with a criminal record summary as described in Section 44237.

3(G) The means by which the school will achieve a racial and
4ethnic balance among its pupils that is reflective of the general
5population residing within the territorial jurisdiction of the school
6district to which the charter petition is submitted.

7(H) Admission requirements, if applicable.

8(I) The manner in which annual, independent financial audits
9shall be conducted, which shall employ generally accepted
10accounting principles, and the manner in which audit exceptions
11and deficiencies shall be resolved to the satisfaction of the
12chartering authority.

13(J) The procedures by which pupils can be suspended or
14expelled.

15(K) The manner by which staff members of the charter schools
16will be covered by the State Teachers’ Retirement System, the
17Public Employees’ Retirement System, or federal social security.

18(L) The public school attendance alternatives for pupils residing
19within the school district who choose not to attend charter schools.

20(M) A description of the rights of any employee of the school
21district upon leaving the employment of the school district to work
22in a charter school, and of any rights of return to the school district
23after employment at a charter school.

24(N) The procedures to be followed by the charter school and
25the entity granting the charter to resolve disputes relating to
26provisions of the charter.

27(O) A declaration whether or not the charter school shall be
28deemed the exclusive public school employer of the employees of
29the charter school for purposes of Chapter 10.7 (commencing with
30Section 3540) of Division 4 of Title 1 of the Government Code.

31(P) A description of the procedures to be used if the charter
32school closes. The procedures shall ensure a final audit of the
33school to determine the disposition of all assets and liabilities of
34the charter school, including plans for disposing of any net assets
35and for the maintenance and transfer of pupil records.

36(c) (1) Charter schools shall meet all statewide standards and
37conduct the pupil assessments required pursuant to Sections 60605
38and 60851 and any other statewide standards authorized in statute
39or pupil assessments applicable to pupils in noncharter public
40schools.

P126  1(2) Charter schools shall, on a regular basis, consult with their
2parents, legal guardians, and teachers regarding the school’s
3educational programs.

4(d) (1) In addition to any other requirement imposed under this
5part, a charter school shall be nonsectarian in its programs,
6admission policies, employment practices, and all other operations,
7shall not charge tuition, and shall not discriminate against any
8pupil on the basis of the characteristics listed in Section 220. Except
9as provided in paragraph (2), admission to a charter school shall
10not be determined according to the place of residence of the pupil,
11or of his or her parent or legal guardian, within this state, except
12that an existing public school converting partially or entirely to a
13charter school under this part shall adopt and maintain a policy
14giving admission preference to pupils who reside within the former
15attendance area of that public school.

16(2) (A) A charter school shall admit all pupils who wish to
17attend the school.

18(B) If the number of pupils who wish to attend the charter school
19exceeds the school’s capacity, attendance, except for existing pupils
20of the charter school, shall be determined by a public random
21drawing. Preference shall be extended to pupils currently attending
22the charter school and pupils who reside in the district except as
23provided for in Section 47614.5. Other preferences may be
24permitted by the chartering authority on an individual school basis
25and only if consistent with the law.

26(C) In the event of a drawing, the chartering authority shall
27make reasonable efforts to accommodate the growth of the charter
28school and in no event shall take any action to impede the charter
29school from expanding enrollment to meet pupil demand.

30(3) If a pupil is expelled or leaves the charter school without
31graduating or completing the school year for any reason, the charter
32school shall notify the superintendent of the school district of the
33pupil’s last known address within 30 days, and shall, upon request,
34provide that school district with a copy of the cumulative record
35of the pupil, including a transcript of grades or report card, and
36health information. This paragraph applies only to pupils subject
37to compulsory full-time education pursuant to Section 48200.

38(e) The governing board of a school district shall not require
39any employee of the school district to be employed in a charter
40school.

P127  1(f) The governing board of a school district shall not require
2any pupil enrolled in the school district to attend a charter school.

3(g) The governing board of a school district shall require that
4the petitioner or petitioners provide information regarding the
5proposed operation and potential effects of the school, including,
6but not limited to, the facilities to be used by the school, the manner
7in which administrative services of the school are to be provided,
8and potential civil liability effects, if any, upon the school and
9upon the school district. The description of the facilities to be used
10by the charter school shall specify where the school intends to
11locate. The petitioner or petitioners shall also be required to provide
12financial statements that include a proposed first-year operational
13budget, including startup costs, and cashflow and financial
14projections for the first three years of operation.

15(h) In reviewing petitions for the establishment of charter
16schools within the school district, the governing board of the school
17district shall give preference to petitions that demonstrate the
18capability to provide comprehensive learning experiences to pupils
19identified by the petitioner or petitioners as academically low
20achieving pursuant to the standards established by the department
21under Section 54032, as it read before July 19, 2006.

22(i) Upon the approval of the petition by the governing board of
23the school district, the petitioner or petitioners shall provide written
24notice of that approval, including a copy of the petition, to the
25applicable county superintendent of schools, the department, and
26the state board.

27(j) (1) If the governing board of a school district denies a
28petition, the petitioner may elect to submit the petition for the
29establishment of a charter school to the county board of education.
30The county board of education shall review the petition pursuant
31to subdivision (b). If the petitioner elects to submit a petition for
32establishment of a charter school to the county board of education
33and the county board of education denies the petition, the petitioner
34may file a petition for establishment of a charter school with the
35state board, and the state board may approve the petition, in
36accordance with subdivision (b). A charter school that receives
37approval of its petition from a county board of education or from
38the state board on appeal shall be subject to the same requirements
39concerning geographic location to which it would otherwise be
40subject if it received approval from the entity to which it originally
P128  1submitted its petition. A charter petition that is submitted to either
2a county board of education or to the state board shall meet all
3otherwise applicable petition requirements, including the
4identification of the proposed site or sites where the charter school
5will operate.

6(2) In assuming its role as a chartering agency, the state board
7shall develop criteria to be used for the review and approval of
8charter school petitions presented to the state board. The criteria
9shall address all elements required for charter approval, as
10identified in subdivision (b) and shall define “reasonably
11comprehensive” as used in paragraph (5) of subdivision (b) in a
12way that is consistent with the intent of this part. Upon satisfactory
13completion of the criteria, the state board shall adopt the criteria
14on or before June 30, 2001.

15(3) A charter school for which a charter is granted by either the
16county board of education or the state board based on an appeal
17pursuant to this subdivision shall qualify fully as a charter school
18for all funding and other purposes of this part.

19(4) If either the county board of education or the state board
20fails to act on a petition within 120 days of receipt, the decision
21of the governing board of the school district to deny a petition
22shall, thereafter, be subject to judicial review.

23(5) The state board shall adopt regulations implementing this
24subdivision.

25(6) Upon the approval of the petition by the county board of
26education, the petitioner or petitioners shall provide written notice
27of that approval, including a copy of the petition to the department
28and the state board.

29(k) (1) The state board may, by mutual agreement, designate
30its supervisorial and oversight responsibilities for a charter school
31approved by the state board to any local educational agency in the
32county in which the charter school is located or to the governing
33board of the school district that first denied the petition.

34(2) The designated local educational agency shall have all
35monitoring and supervising authority of a chartering agency,
36including, but not limited to, powers and duties set forth in Section
3747607, except the power of revocation, which shall remain with
38the state board.

39(3) A charter school that is granted its charter through an appeal
40to the state board and elects to seek renewal of its charter shall,
P129  1before expiration of the charter, submit its petition for renewal to
2the governing board of the school district that initially denied the
3charter. If the governing board of the school district denies the
4school’s petition for renewal, the school may petition the state
5board for renewal of its charter.

6(l) Teachers in charter schools shall hold a Commission on
7Teacher Credentialing certificate, permit, or other document
8equivalent to that which a teacher in other public schools would
9be required to hold. These documents shall be maintained on file
10at the charter school and are subject to periodic inspection by the
11chartering authority. It is the intent of the Legislature that charter
12schools be given flexibility with regard to noncore, noncollege
13preparatory courses.

14(m) A charter school shall transmit a copy of its annual,
15independent financial audit report for the preceding fiscal year, as
16described in subparagraph (I) of paragraph (5) of subdivision (b),
17to its chartering entity, the Controller, the county superintendent
18of schools of the county in which the charter school is sited, unless
19the county board of education of the county in which the charter
20school is sited is the chartering entity, and the department by
21December 15 of each year. This subdivision does not apply if the
22audit of the charter school is encompassed in the audit of the
23chartering entity pursuant to Section 41020.

24begin insert

begin insertSEC. 77.end insert  

end insert

begin insertSection 47605.6 of the end insertbegin insertEducation Codeend insertbegin insert is amended
25to read:end insert

26

47605.6.  

(a) (1) In addition to the authority provided by
27Section 47605.5, a county board of education may also approve a
28petition for the operation of a charter school that operates at one
29or more sites within the geographic boundaries of the county and
30that provides instructional services that are not generally provided
31by a county office of education. A county board of education may
32approve a countywide charter only if it finds, in addition to the
33other requirements of this section, that the educational services to
34be provided by the charter school will offer services to a pupil
35population that will benefit from those services and that cannot be
36served as well by a charter school that operates in only one school
37district in the county. A petition for the establishment of a
38countywide charter school pursuant to this subdivision may be
39circulated throughout the county by any one or more persons
40seeking to establish the charter school. The petition may be
P130  1submitted to the county board of education for review after either
2of the following conditions is met:

3(A) The petition is signed by a number of parents or guardians
4of pupils residing within the county that is equivalent to at least
5one-half of the number of pupils that the charter school estimates
6will enroll in the school for its first year of operation and each of
7the school districts where the charter school petitioner proposes
8to operate a facility has received at least 30 days’ notice of the
9petitioner’s intent to operate a school pursuant to this section.

10(B) The petition is signed by a number of teachers that is
11equivalent to at least one-half of the number of teachers that the
12charter school estimates will be employed at the school during its
13first year of operation and each of the school districts where the
14charter school petitioner proposes to operate a facility has received
15at least 30 days’ notice of the petitioner’s intent to operate a school
16pursuant to this section.

17(2) An existing public school may not be converted to a charter
18school in accordance with this section.

19(3) After receiving approval of its petition, a charter school that
20proposes to establish operations at additional sites within the
21geographic boundaries of the county board of education shall notify
22the school districts where those sites will be located. The charter
23school shall also request a material revision of its charter by the
24county board of education that approved its charter and the county
25board of education shall consider whether to approve those
26additional locations at an open, public meeting, held no sooner
27than 30 days following notification of the school districts where
28the sites will be located. If approved, the location of the approved
29sites shall be a material revision of the school’s approved charter.

30(4) A petition shall include a prominent statement indicating
31that a signature on the petition means that the parent or guardian
32is meaningfully interested in having his or her child or ward attend
33the charter school, or in the case of a teacher’s signature, means
34that the teacher is meaningfully interested in teaching at the charter
35school. The proposed charter shall be attached to the petition.

36(b) No later than 60 days after receiving a petition, in accordance
37with subdivision (a), the county board of education shall hold a
38public hearing on the provisions of the charter, at which time the
39county board of education shall consider the level of support for
40the petition by teachers, parents or guardians, and the school
P131  1districts where the charter school petitioner proposes to place
2school facilities. Following review of the petition and the public
3hearing, the county board of education shall either grant or deny
4the charter within 90 days of receipt of the petition. However, this
5date may be extended by an additional 30 days if both parties agree
6to the extension. A county board of education may impose any
7additional requirements beyond those required by this section that
8it considers necessary for the sound operation of a countywide
9charter school. A county board of education may grant a charter
10for the operation of a school under this part only if the board is
11satisfied that granting the charter is consistent with sound
12educational practice and that the charter school has reasonable
13justification for why it could not be established by petition to a
14school district pursuant to Section 47605. The county board of
15education shall deny a petition for the establishment of a charter
16school if the board finds one or more of the following:

17(1) The charter school presents an unsound educational program
18for the pupils to be enrolled in the charter school.

19(2) The petitioners are demonstrably unlikely to successfully
20implement the program set forth in the petition.

21(3) The petition does not contain the number of signatures
22required by subdivision (a).

23(4) The petition does not contain an affirmation of each of the
24conditions described in subdivision (d).

25(5) The petition does not contain reasonably comprehensive
26descriptions of all of the following:

27(A) (i) A description of the educational program of the school,
28designed, among other things, to identify those pupils whom the
29school is attempting to educate, what it means to be an “educated
30person” in the 21st century, and how learning best occurs. The
31goals identified in that program shall include the objective of
32enabling pupils to become self-motivated, competent, and lifelong
33learners.

begin insert

34(ii) A description, for the charter school, of annual goals, for
35all pupils and for each subgroup of pupils identified pursuant to
36Section 52052, to be achieved in the state priorities, as described
37in subdivision (d) of Section 52060, that apply for the grade levels
38served, or the nature of the program operated, by the charter
39school, and specific annual actions to achieve those goals. A
40charter petition may identify additional school priorities, the goals
P132  1for the school priorities, and the specific annual actions to achieve
2those goals.

end insert
begin delete

3(ii)

end delete

4begin insert(iii)end insert If the proposed charter school will enroll high school pupils,
5a description of the manner in which the charter school will inform
6parents regarding the transferability of courses to other public high
7schools. Courses offered by the charter school that are accredited
8by the Western Association of Schools and Colleges may be
9considered to be transferable to other public high schools.

begin delete

10(iii)

end delete

11begin insert(iv)end insert If the proposed charter school will enroll high school pupils,
12information as to the manner in which the charter school will
13inform parents as to whether each individual course offered by the
14charter school meets college entrance requirements. Courses
15approved by the University of California or the California State
16University as satisfying their prerequisites for admission may be
17considered as meeting college entrance requirements for purposes
18of this clause.

19(B) The measurable pupil outcomes identified for use by the
20charter school. “Pupil outcomes,” for purposes of this part, means
21the extent to which all pupils of the school demonstrate that they
22have attained the skills, knowledge, and aptitudes specified as
23goals in the school’s educational program. Pupil outcomes shall
24include outcomes that address increases in pupil academic
25achievement both schoolwide and for all groups of pupils served
26by the charter school, as that term is defined in subparagraph (B)
27of paragraph (3) of subdivision (a) of Section 47607.begin insert The pupil
28outcomes shall align with the state priorities, as described in
29subdivision (d) of Section 52060, that apply for the grade levels
30served, or the nature of the program operated, by the charter
31school.end insert

32(C) The method by which pupil progress in meeting those pupil
33outcomes is to be measured.begin insert To the extent practicable, the method
34for measuring pupil outcomes for state priorities shall be consistent
35with the way information is reported on a school accountability
36report card.end insert

37(D) The location of each charter school facility that the petitioner
38proposes to operate.

P133  1(E) The governance structure of the school, including, but not
2limited to, the process to be followed by the school to ensure
3parental involvement.

4(F) The qualifications to be met by individuals to be employed
5by the school.

6(G) The procedures that the school will follow to ensure the
7health and safety of pupils and staff. These procedures shall include
8the requirement that each employee of the school furnish the school
9with a criminal record summary as described in Section 44237.

10(H) The means by which the school will achieve a racial and
11ethnic balance among its pupils that is reflective of the general
12population residing within the territorial jurisdiction of the school
13district to which the charter petition is submitted.

14(I) The manner in which annual, independent, financial audits
15shall be conducted, in accordance with regulations established by
16the state board, and the manner in which audit exceptions and
17deficiencies shall be resolved.

18(J) The procedures by which pupils can be suspended or
19expelled.

20(K) The manner by which staff members of the charter schools
21will be covered by the State Teachers’ Retirement System, the
22Public Employees’ Retirement System, or federal social security.

23(L) The procedures to be followed by the charter school and the
24county board of education to resolve disputes relating to provisions
25of the charter.

26(M) A declaration whether or not the charter school shall be
27deemed the exclusive public school employer of the employees of
28the charter school for purposes of the Educational Employment
29Relations Act (Chapter 10.7 (commencing with Section 3540) of
30Division 4 of Title 1 of the Government Code).

31(N) Admission requirements of the charter school, if applicable.

32(O) The public school attendance alternatives for pupils residing
33within the county who choose not to attend the charter school.

34(P) A description of the rights of an employee of the county
35office of education, upon leaving the employment of the county
36office of education, to be employed by the charter school, and a
37description of any rights of return to the county office of education
38that an employee may have upon leaving the employ of the charter
39school.

P134  1(Q) A description of the procedures to be used if the charter
2school closes. The procedures shall ensure a final audit of the
3school to determine the disposition of all assets and liabilities of
4the charter school, including plans for disposing of any net assets
5and for the maintenance and transfer of public records.

6(6) Any other basis that the county board of education finds
7justifies the denial of the petition.

8(c) A county board of education that approves a petition for the
9operation of a countywide charter may, as a condition of charter
10approval, enter into an agreement with a third party, at the expense
11of the charter school, to oversee, monitor, and report to the county
12board of education on the operations of the charter school. The
13county board of education may prescribe the aspects of the charter
14school’s operations to be monitored by the third party and may
15prescribe appropriate requirements regarding the reporting of
16information concerning the operations of the charter school to the
17county board of education.

18(d) (1) Charter schools shall meet all statewide standards and
19conduct the pupil assessments required pursuant to Section 60605
20and any other statewide standards authorized in statute or pupil
21assessments applicable to pupils in noncharter public schools.

22(2) Charter schools shall on a regular basis consult with their
23parents and teachers regarding the school’s educational programs.

24(e) (1) In addition to any other requirement imposed under this
25part, a charter school shall be nonsectarian in its programs,
26admission policies, employment practices, and all other operations,
27shall not charge tuition, and shall not discriminate against any
28pupil on the basis of ethnicity, national origin, gender, gender
29identity, gender expression, or disability. Except as provided in
30paragraph (2), admission to a charter school shall not be determined
31according to the place of residence of the pupil, or of his or her
32parent or guardian, within this state.

33(2) (A) A charter school shall admit all pupils who wish to
34attend the school.

35(B) If the number of pupils who wish to attend the charter school
36exceeds the school’s capacity, attendance, except for existing pupils
37of the charter school, shall be determined by a public random
38drawing. Preference shall be extended to pupils currently attending
39the charter school and pupils who reside in the county except as
40provided for in Section 47614.5. Other preferences may be
P135  1permitted by the chartering authority on an individual school basis
2and only if consistent with the law.

3(C) In the event of a drawing, the county board of education
4shall make reasonable efforts to accommodate the growth of the
5charter school and in no event shall take any action to impede the
6charter school from expanding enrollment to meet pupil demand.

7(f) The county board of education shall not require any employee
8of the county or a school district to be employed in a charter school.

9(g) The county board of education shall not require any pupil
10enrolled in a county program to attend a charter school.

11(h) The county board of education shall require that the
12petitioner or petitioners provide information regarding the proposed
13operation and potential effects of the school, including, but not
14limited to, the facilities to be used by the school, the manner in
15which administrative services of the school are to be provided,
16and potential civil liability effects, if any, upon the school, any
17school district where the charter school may operate, and upon the
18county board of education. The petitioner or petitioners shall also
19be required to provide financial statements that include a proposed
20first-year operational budget, including startup costs, and cashflow
21and financial projections for the first three years of operation.

22(i) In reviewing petitions for the establishment of charter schools
23within the county, the county board of education shall give
24preference to petitions that demonstrate the capability to provide
25comprehensive learning experiences to pupils identified by the
26petitioner or petitioners as academically low achieving pursuant
27to the standards established by the department under Section 54032,
28as it read before July 19, 2006.

29(j) Upon the approval of the petition by the county board of
30education, the petitioner or petitioners shall provide written notice
31of that approval, including a copy of the petition, to the school
32districts within the county, the Superintendent, and to the state
33board.

34(k) If a county board of education denies a petition, the petitioner
35may not elect to submit the petition for the establishment of the
36charter school to the state board.

37(l) Teachers in charter schools shall be required to hold a
38Commission on Teacher Credentialing certificate, permit, or other
39document equivalent to that which a teacher in other public schools
40would be required to hold. These documents shall be maintained
P136  1on file at the charter school and shall be subject to periodic
2inspection by the chartering authority.

3(m) A charter school shall transmit a copy of its annual,
4independent, financial audit report for the preceding fiscal year,
5as described in subparagraph (I) of paragraph (5) of subdivision
6(b), to the county office of education, the Controller, and the
7department by December 15 of each year. This subdivision shall
8not apply if the audit of the charter school is encompassed in the
9audit of the chartering entity pursuant to Section 41020.

10begin insert

begin insertSEC. 78.end insert  

end insert

begin insertSection 47606.5 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
11read:end insert

begin insert
12

begin insert47606.5.end insert  

(a) On or before July 1, 2015, and each year
13thereafter, a charter school shall update the goals and annual
14actions to achieve those goals identified in the charter pursuant
15to subparagraph (A) of paragraph (5) of subdivision (b) of Section
1647605 or subparagraph (A) of paragraph (5) of subdivision (b) of
17Section 47605.6. The annual update shall be developed using the
18template adopted pursuant to Section 52064 and shall include all
19of the following:

20(1) A review of the progress toward the goals included in the
21charter, an assessment of the effectiveness of the specific actions
22described in the charter toward achieving the goals, and a
23description of changes to the specific actions the charter school
24will make as a result of the review and assessment.

25(2) A listing and description of the expenditures for the fiscal
26year implementing the specific actions included in the charter as
27a result of the reviews and assessment required by paragraph (1).

28(b) The expenditures identified in subdivision (a) shall be
29classified using the California School Accounting Manual pursuant
30to Section 41010.

31(c) For purposes of the review required by subdivision (a), a
32governing body of a charter school may consider qualitative
33information, including, but not limited to, findings that result from
34school quality reviews conducted pursuant to subparagraph (J)
35or paragraph (4) of subdivision (a) of Section 52052 or any other
36reviews.

37(d) To the extent practicable, data reported pursuant to this
38section shall be reported in a manner consistent with how
39information is reported on a school accountability report card.

P137  1(e) The charter school shall consult with teachers, principals,
2administrators, other school personnel, parents, and pupils in
3developing the annual update.

end insert
4begin insert

begin insertSEC. 79.end insert  

end insert

begin insertSection 47607.3 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert47607.3.end insert  

(a) If a charter school fails to improve outcomes for
7three or more pupil subgroups identified pursuant to Section 52052,
8or, if the charter school has less than three pupil subgroups, all
9of the charter school’s pupil subgroups, in regard to one or more
10state or school priority identified in the charter pursuant to
11subparagraph (A) of paragraph (5) of subdivision (b) of Section
1247605 or subparagraph (A) of paragraph (5) of subdivision (b) of
13Section 47605.6, in three out of four consecutive school years, all
14of the following shall apply:

15(1) Using an evaluation rubric adopted by the state board
16pursuant to Section 52064.5, the chartering authority shall provide
17technical assistance to the charter school.

18(2) The Superintendent may assign, at the request of the
19chartering authority and with the approval of the state board, the
20California Collaborative for Educational Excellence to provide
21advice and assistance to the charter school pursuant to Section
2252074.

23(b) A chartering authority shall consider for revocation any
24charter school to which the California Collaborative for
25Educational Excellence has provided advice and assistance
26pursuant to subdivision (a) and about which it has made either of
27the following findings, which shall be submitted to the chartering
28authority:

29(1) That the charter school has failed, or is unable, to implement
30the recommendations of the California Collaborative for
31Educational Excellence.

32(2) That the inadequate performance of the charter school,
33based upon an evaluation rubric adopted pursuant to Section
3452064.5, is either so persistent or so acute as to require revocation
35of the charter.

36(c) The chartering authority shall consider increases in pupil
37academic achievement for all pupil subgroups served by the charter
38school as the most important factor in determining whether to
39revoke the charter.

P138  1(d) A chartering authority shall comply with the hearing process
2described in subdivision (e) of Section 47607 in revoking a charter.
3A charter school may not appeal a revocation of a charter made
4pursuant to this section.

end insert
5begin insert

begin insertSEC. 80.end insert  

end insert

begin insertSection 47612.7 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
6

47612.7.  

(a) Notwithstanding Section 47612.5 or any other
7law, the Center for Advanced Research and Technology, operating
8pursuant to a joint powers agreement between the Clovis Unified
9School District and the Fresno Unified School District, is eligible
10to receive general-purpose funding, as calculated pursuant to
11Section 47633, for the 2005-06 and 2006-07 fiscal years for a
12total average daily attendance not to exceed the center’s average
13daily attendance as determined at the second principal
14apportionment for the 2005-06 and 2006-07 fiscal years,
15respectively, and for the 2007-08 fiscal year for a total average
16daily attendance not to exceed the center’s average daily attendance
17as determined at the second principal apportionment for the
182006-07 fiscal year.

19(b) Commencing with the 2008-09 fiscal year, the Center for
20Advanced Research and Technology, as described in subdivision
21(a), is not eligible to receive funding pursuant to Chapter 6
22(commencing with Section 47630).

23(c) This section shall become inoperative on July 1, 2017, and,
24as of January 1, 2018, is repealed, unless a later enacted statute,
25that becomes operative on or before January 1, 2018, deletes or
26extends the dates on which it becomes inoperative and is repealed.

end delete
27begin insert

begin insertSEC. 81.end insert  

end insert

begin insertSection 47613 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
28read:end insert

29

47613.  

(a) Except as set forth in subdivision (b), a chartering
30authority may charge for the actual costs of supervisorial oversight
31of a charter school not to exceed 1 percent of the revenue of the
32charter school.

33(b) A chartering authority may charge for the actual costs of
34supervisorial oversight of a charter school not to exceed 3 percent
35of the revenue of the charter school if the charter school is able to
36obtain substantially rent free facilities from the chartering authority.

37(c) A local agency that is given the responsibility for
38supervisorial oversight of a charter school, pursuant to paragraph
39(1) of subdivision (k) of Section 47605, may charge for the actual
40costs of supervisorial oversight, and administrative costs necessary
P139  1to secure charter school funding. A charter school that is charged
2for costs under this subdivision may not be charged pursuant to
3subdivision (a) or (b).

4(d) This section does not prevent the charter school from
5separately purchasing administrative or other services from the
6chartering authority or any other source.

7(e) For purposes of this section, a chartering authority means a
8school district, county board of education, or the state board, that
9granted the charter to the charter school.

10(f) For purposes of this section, “revenue of the charter school”
11means the general purpose entitlement and categorical block grant,
12as defined in subdivisions (a) and (b) of Section 47632.

begin insert

13(g) For purposes of this section, “costs of supervisorial
14oversight” includes, but is not limited to, costs incurred pursuant
15to Section 47607.3.

end insert
begin delete

16(g) (1) The California Research Bureau of the California State
17Library shall prepare and submit to the Legislature on or before
18January 8, 2009, a report on the key elements and actual costs of
19charter school oversight. For purposes of the report, the bureau
20shall define fiscal and academic oversight and shall include any
21financial relationship between a charter school and its chartering
22authority that has the effect of furthering the operations of the
23charter school and that may provide opportunities to oversee the
24charter school. The report, at a minimum, shall address all of the
25following issues:

end delete
begin delete

26(A) The range of annual activities that entities providing
27supervisorial oversight of charter schools are expected to perform.

end delete
begin delete

28(B) Staff time spent on reviewing charter petitions measured
29by the size of school districts and the number of charter petitions
30reviewed.

end delete
begin delete

31(C) Staff time spent on oversight responsibilities measured by
32the size of school districts and the number of charter schools.

end delete
begin delete

33(D) Best practices for charter school oversight measured by
34efficiency and effectiveness. A cost analysis of those best practices
35after being measured by efficiency and effectiveness.

end delete
begin delete

36(E) Comparison of school district costs and revenues attributable
37to charter school oversight.

end delete
begin delete

38(F) Administrative services provided to a charter school by a
39chartering authority, such as human resources, that may be useful
P140  1in the oversight of the charter school and chartering authority
2revenues attributable to those services.

end delete
begin delete

3(G) Length of time required to review a single charter petition.

end delete
begin delete

4(H) Recommendations for structuring charter school oversight
5and accountability in California, including an assessment of
6whether or not the associated costs specified in subdivisions (a)
7and (b) and subparagraph (F) are adequate to support appropriate
8supervisorial oversight.

end delete
begin delete

9(2) In preparing its report, the California Research Bureau shall
10consult with an advisory panel to ensure technical accuracy.

end delete
11begin insert

begin insertSEC. 82.end insert  

end insert

begin insertSection 47631 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
12read:end insert

13

47631.  

(a) begin deleteArticle 2 (commencing with Section 47633) and end delete
14Article 3 (commencing with Section 47636)begin delete mayend deletebegin insert shallend insert not apply
15to a charter granted pursuant to Section 47605.5.

begin delete

16(b) Notwithstanding subdivision (a), a pupil attending a
17county-sponsored charter school who is eligible to attend that
18school solely as a result of parental request pursuant to subdivision
19(b) of Section 1981 shall be funded pursuant to this chapter.

end delete
begin insert

20(b) A county-sponsored charter school shall receive the average
21daily attendance rate calculated pursuant to paragraph (1) of
22subdivision (c) of Section 2574 for enrolled pupils who are
23identified as any of the following:

end insert
begin insert

24(1) Probation-referred pursuant to Section 300, 601, 602, or
25654 of the Welfare and Institutions Code.

end insert
begin insert

26(2) On probation or parole and not attending a school.

end insert
begin insert

27(3) Expelled for any of the reasons specified in subdivision (a)
28or (c) of Section 48915.

end insert
begin insert

29(c) A county-sponsored charter school shall be funded pursuant
30to the local control funding formula pursuant to Section 42238.02,
31as implemented by Section 42238.03, for all pupils except for pupils
32funded pursuant to subdivision (b).

end insert
33begin insert

begin insertSEC. 83.end insert  

end insert

begin insertSection 47632 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
34read:end insert

35

47632.  

For purposes of this chapter, the following terms shall
36be defined as follows:

37(a) “General-purpose entitlement” means an amount computed
38by thebegin delete formula set forth in Section 47633 beginning in the
391999-2000 fiscal year, which is based on the statewide average
40amounts of general-purpose funding from those state and local
P141  1sources identified in Section 47633 received by school districts of
2similar type and serving similar pupil populationsend delete
begin insert local control
3funding formula pursuant to Section 42238.02, as implemented by
4Section 42238.03end insert
.

begin delete

5(b) “Categorical block grant” means an amount computed by
6the formula set forth in Section 47634 beginning in the 1999-2000
7fiscal year, which is based on the statewide average amounts of
8categorical aid from those sources identified in Section 47634
9received by school districts of similar type and serving similar
10pupil populations.

end delete
begin delete

11(c)

end delete
begin insert

12(b) “Economic impact aid-eligible pupils” means those pupils
13that are included in the economic impact aid-eligible pupil count
14pursuant to Section 54023. For purposes of applying Section 54023
15to charter schools, “economically disadvantaged pupils” means
16the pupils described in paragraph (2) of subdivision (a) of Section
1754026.

end insert

18begin insert(c)end insert “General-purpose funding” means those funds that consist
19of state aid, local property taxes, and other revenues applied toward
20a school district’sbegin delete revenue limit, pursuant to Section 42238end deletebegin insert local
21control funding formula, pursuant to Section 42238.02, as
22implemented by Section 42238.03end insert
.

23(d) “Categorical aid” means aid that consists of state or federally
24funded programs, or both, which are apportioned for specific
25purposes set forth in statute or regulation.

begin delete

26(e) “Economic impact aid-eligible pupils” means those pupils
27that are included in the economic impact aid-eligible pupil count
28pursuant to Section 54023. For purposes of applying Section 54023
29to charter schools, “economically disadvantaged pupils” means
30the pupils described in paragraph (2) of subdivision (a) of Section
3154026.

end delete
begin delete

32(f)

end delete

33begin insert(e)end insert “Educationally disadvantaged pupils” means thosebegin delete pupils
34who are eligible for subsidized meals pursuant to Section 49552
35or are identified as English learners pursuant to subdivision (a) of
36Section 306, or bothend delete
begin insertpupils who meet federal eligibility criteria
37for free and reduced-price meals as specified in Section 49531,
38as that section read on January 1, 2013, except in regard to meals
39in family day care homesend insert
.

begin delete

40(g)

end delete

P142  1begin insert(f)end insert “Operational funding” means all funding except funding for
2capital outlay.

begin delete

3(h)

end delete

4begin insert(g)end insert “School district of a similar type” means a school district
5that is serving similar grade levels.

begin delete

6(i)

end delete

7begin insert(h)end insert “Similar pupil population” means similar numbers of pupils
8by grade level, with a similar proportion of educationally
9disadvantaged pupils.

begin delete

10(j)

end delete

11begin insert(i)end insert “Sponsoring local educational agency” means the following:

12(1) If a charter school is granted by a school district, the
13sponsoring local educational agency is the school district.

14(2) If a charter is granted by a county office of education after
15having been previously denied by a school district, the sponsoring
16local educational agency means the school district that initially
17denied the charter petition.

18(3) If a charter is granted by the state board after having been
19previously denied by a local educational agency, the sponsoring
20local educational agency means the local educational agency
21designated by the state board pursuant to paragraph (1) of
22subdivision (k) of Section 47605 or if a local educational agency
23is not designated, the local educational agency that initially denied
24the charter petition.

25(4) For pupils attending county-sponsored charter schools who
26are eligible to attend those schools solely as a result of parental
27request pursuant to subdivision (b) of Section 1981, the sponsoring
28local educational agency means the pupils’ school district of
29residence.

30(5) For pupils attending countywide charter schools pursuant
31to Section 47605.6 who reside in a basic aid school district, the
32sponsoring local educational agency means the school district of
33residence of the pupil. For purposes of this paragraph, “basic aid
34school district” means a school district that does not receive an
35apportionment of state fundsbegin delete pursuant toend deletebegin insert as described inend insert
36 subdivisionbegin delete (h)end deletebegin insert (o)end insert of Sectionbegin delete 42238end deletebegin insert 42238.02end insert.

37begin insert

begin insertSEC. 84.end insert  

end insert

begin insertSection 47632.5 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
38

47632.5.  

A charter school that is established through the
39conversion of an existing public school where the charter is granted
40by a district other than the district in which the school is located
P143  1may not generate or receive revenue limit funding in excess of the
2revenue limit of the school district in which the school was located
3prior to the conversion to charter status. This limitation shall apply
4whether the charter converts to charter status a single existing
5public school or multiple existing public schools.

end delete
6begin insert

begin insertSEC. 85.end insert  

end insert

begin insertSection 47635 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
7read:end insert

8

47635.  

(a) A sponsoring local educational agency shall
9annually transfer to each of its charter schools funding in lieu of
10property taxes equal to the lesser of the following two amounts:

11(1) The average amount of property taxes per unit of average
12daily attendance, including average daily attendance attributable
13to charter schools, received by the local educational agency,
14multiplied by the charter school’s average daily attendance.

15(2) The statewide averagebegin delete general-purpose fundingend deletebegin insert local controlend insert
16begin insert funding formula grant funding computed pursuant to subdivision
17(d) of Section 42238.02,end insert
per unit of average daily attendance
18received by school districts, as determined by thebegin delete State Department
19of Education,end delete
begin insert department,end insert multiplied by the charter school’s
20average daily attendance in each of the four corresponding grade
21level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and
226; grades 7 and 8; and grades 9 to 12, inclusive.

begin insert

23(3) Notwithstanding paragraph (2), until the Superintendent
24determines that a charter school is funded pursuant to Section
2542238.02 in the prior fiscal year, the Superintendent shall
26apportion funding per unit of average daily attendance pursuant
27to this article. The base grant for purposes of paragraph (2) shall
28be the sum of the entitlements for the charter school in the specified
29fiscal year as computed pursuant to paragraphs (1) to (4),
30inclusive, of subdivision (a) of Section 42238.03 and paragraph
31(3) of subdivision (b) of Section 42238.03, multiplied by the ratio
32of local control funding formula base grant funding computed
33pursuant to subdivision (d) of Section 42238.02 to the local control
34funding formula amount for the fiscal year computed pursuant to
35Section 42238.02.

end insert

36(b) The sponsoring local educational agency shall transfer
37funding in lieu of property taxes to the charter school in monthly
38installments, by no later than the 15th of each month.

39(1) For the months of August to February, inclusive, a charter
40school’s funding in lieu of property taxes shall be computed based
P144  1on the amount of property taxes received by the sponsoring local
2educational agency during the preceding fiscal year, as reported
3to the Superintendentbegin delete of Public Instructionend delete for purposes of the
4second principal apportionment. A sponsoring local educational
5agency shall transfer to the charter school the charter school’s
6estimated annual entitlement to funding in lieu of property taxes
7as follows:

8(A) Six percent in August.

9(B) Twelve percent in September.

10(C) Eight percent each month in October, November, December,
11January, and February.

12(2) For the months of March to June, inclusive, a charter
13school’s funding in lieu of property taxes shall be computed based
14on the amount of property taxes estimated to be received by the
15sponsoring local educational agency during the fiscal year, as
16reported to the Superintendentbegin delete of Public Instructionend delete for purposes
17of the first principal apportionment. A sponsoring local educational
18agency shall transfer to each of its charter schools an amount equal
19to one-sixth of the difference between the school’s estimated annual
20entitlement to funding in lieu of property taxes and the amounts
21provided pursuant to paragraph (1). An additional one-sixth of this
22difference shall be included in the amount transferred in the month
23of March.

24(3) For the month of July, a charter school’s funding in lieu of
25property taxes shall be computed based on the amount of property
26taxes estimated to be received by the sponsoring local educational
27agency during the prior fiscal year, as reported to the
28Superintendentbegin delete of Public Instructionend delete for purposes of the second
29principal apportionment. A sponsoring local educational agency
30shall transfer to each of its charter schools an amount equal to the
31remaining difference between the school’s estimated annual
32entitlement to funding in lieu of property taxes and the amounts
33provided pursuant to paragraphs (1) and (2).

34(4) Final adjustments to the amount of funding in lieu of
35property taxes allocated to a charter school shall be made in
36February, in conjunction with the final reconciliation of annual
37apportionments to schools.

38(5) Subdivision (a) and paragraphs (1) to (4), inclusive,begin delete of
39subdivision (b)end delete
do not apply for pupils who reside in, and are
40otherwise eligible to attend a school in, a basic aid school district,
P145  1but who attend a charter school in a nonbasic aid school district.
2With regard to these pupils, the sponsoring basic aidbegin insert schoolend insert district
3shall transfer to the charter school an amount of funds equivalent
4to thebegin delete revenue limitend deletebegin insert local control funding formula grant pursuant
5to Section 42238.02, as implemented by Section 42238.03,end insert
earned
6through average daily attendance by the charter school for each
7pupil’s attendance, not to exceed the average property tax share
8per unit of average daily attendance for pupils residing and
9attending in the basic aidbegin insert schoolend insert district. The transfer of funds shall
10be made in not fewer than two installments at the request of the
11charter school, the first occurring not later than February 1 and the
12second not later than June 1 of each school year. Payments shall
13reflect the average daily attendance certified for the time periods
14of the first and second principal apportionments, respectively. The
15Superintendentbegin delete of Public Instructionend delete may not apportion any funds
16for the attendance of pupils described in this subdivision unless
17the amount transferred by the basic aid district is less than the
18begin delete revenue limitend deletebegin insert local control funding formula grant pursuant to
19Section 42238.02, as implemented by Section 42238.03,end insert
earned by
20the charter school, in which event the Superintendentbegin delete of Public
21Instructionend delete
shall apportion the difference to the charter school from
22state funds.

23begin insert

begin insertSEC. 86.end insert  

end insert

begin insertSection 47636 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

47636.  

(a) This chapterbegin delete doesend deletebegin insert shallend insert not prevent a charter school
26from negotiating with a local educational agency for a share of
27operational funding from sources not otherwise set forth in this
28chapter including, but not limited to, all of the following:

29(1) Forest reserve revenues and other operational revenues
30received due to harvesting or extraction of minerals or other natural
31resources.

32(2) Sales and use taxes, to the extent that the associated revenues
33are available for noncapital expenses of public schools.

34(3) Parcel taxes, to the extent that the associated revenues are
35available for noncapital expenses of public schools.

36(4) Ad valorem property taxes received by a school district
37which exceed itsbegin delete revenue limit entitlementend deletebegin insert local control funding
38formula entitlement pursuant to Section 42238.02, as implemented
39by Section 42238.03end insert
.

P146  1(5) “Basic aid” received by a school district pursuant to Section
26 of Article IX of the California Constitution.

3(b) This section shall become operative July 1, 2006.

4begin insert

begin insertSEC. 87.end insert  

end insert

begin insertSection 47660 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
5read:end insert

6

47660.  

begin delete(a)end deletebegin deleteend deleteFor purposes of computing eligibility for, and
7entitlements to, general purpose funding and operational funding
8for categorical programs, the enrollment and average daily
9attendance of a sponsoring local educational agency shall exclude
10the enrollment and attendance of pupils in its charter schools
11funded pursuant to this chapter.

begin delete

12(b) (1) Notwithstanding subdivision (a), and commencing with
13the 2005-06 fiscal year, for purposes of computing eligibility for,
14and entitlements to, revenue limit funding, the average daily
15attendance of a unified school district, other than a unified school
16district that has converted all of its schools to charter status
17pursuant to Section 47606, shall include all attendance of pupils
18who reside in the unified school district and who would otherwise
19have been eligible to attend a noncharter school of the school
20district, if the school district was a basic aid school district in the
21prior fiscal year, or if the pupils reside in the unified school district
22and attended a charter school of that school district that converted
23to charter status on or after July 1, 2005. Only the attendance of
24the pupils described by this paragraph shall be included in the
25calculation made pursuant to paragraph (7) of subdivision (h) of
26Section 42238.

end delete
begin delete

27(2) Notwithstanding subdivision (a), for the 2005-06 fiscal year
28only, for purposes of computing eligibility for, and entitlements
29to, revenue limit funding, the average daily attendance of a unified
30school district, other than a unified school district that has
31converted all of its schools to charter status pursuant to Section
3247606 and is operating them as charter schools, shall include all
33attendance of pupils who reside in the unified school district and
34who would otherwise have been eligible to attend a noncharter
35school of the unified school district if the pupils attended a charter
36school operating in the unified school district prior to July 1, 2005.
37Only the attendance of pupils described by this paragraph shall be
38included in the calculation made pursuant to Section 42241.3. The
39attendance of the pupils described by this paragraph shall be
P147  1included in the calculation made pursuant to paragraph (7) of
2subdivision (h) of Section 42238.

end delete
begin delete

3(c) (1) For the attendance of pupils specified in subdivision (b),
4the general-purpose entitlement for a charter school that is
5established through the conversion of an existing public school
6within a unified school district on or after July 1, 2005, but before
7January 1, 2010, shall be determined using the following amount
8of general-purpose funding per unit of average daily attendance,
9in lieu of the amount calculated pursuant to subdivision (a) of
10Section 47633:

end delete
begin delete

11(A) The amount of the actual unrestricted revenues expended
12per unit of average daily attendance for that school in the year
13prior to its conversion to, and operation as, a charter school,
14adjusted for the base revenue limit per pupil inflation increase
15adjustment set forth in Section 42238.1, if this adjustment is
16provided, and also adjusted for equalization, deficit reduction, and
17other state general-purpose increases, if any, provided for the
18unified school district in the year of conversion to, and operation
19as a charter school.

end delete
begin delete

20(B) For a subsequent fiscal year, the general-purpose entitlement
21shall be determined based on the amount per unit of average daily
22attendance allocated in the prior fiscal year adjusted for the base
23revenue limit per pupil inflation increase adjustment set forth in
24Section 42238.1, if this adjustment is provided, and also adjusted
25for equalization, deficit reduction, and other state general-purpose
26increases, if any, provided for the unified school district in that
27fiscal year.

end delete
begin delete

28(2) This subdivision shall not apply to a charter school that is
29established through the conversion of an existing public school
30within a unified school district on or after January 1, 2010, which
31instead shall receive general-purpose funding

end delete
begin delete

32pursuant to Section 47633. This paragraph does not preclude a
33charter school or unified school district from agreeing to an
34alternative funding formula.

end delete
begin delete

35(d) Commencing with the 2005-06 fiscal year, the
36general-purpose funding per unit of average daily attendance
37specified for a unified school district for purposes of paragraph
38(7) of subdivision (h) of Section 42238 for a school within the
39unified school district that converted to charter status on or after
P148  1July 1, 2005, shall be deemed to be the amount computed pursuant
2to subdivision (c).

end delete
begin delete

3(e) A unified school district that is the sponsoring local
4educational agency as defined in subdivision (j) of Section 47632
5of a charter school that is subject to paragraphs (1) and (2) of
6subdivision (c) shall certify to the Superintendent the amount
7specified in paragraph (1) of subdivision (c) prior to the approval
8of the charter petition by the governing board of the school district.
9This amount may be based on estimates of the unrestricted revenues
10expended in the fiscal year prior to the school’s conversion to
11charter status and the school’s operation as a charter school,
12provided that the amount is recertified when the actual data
13becomes available.

end delete
begin delete

14(f) For the purposes of this section, “basic aid school district”
15means a school district that does not receive from the state an
16apportionment of state funds pursuant to subdivision (h) of Section
1742238.

end delete
begin delete

18(g) A school district may use the existing Standardized Account
19Code Structure and cost allocation methods, if appropriate, for an
20accounting of the actual unrestricted revenues expended in support
21of a school pursuant to subdivision (c).

end delete
begin delete

22(h) For purposes of this section and Section 42241.3, “operating”
23means that pupils are attending and receiving instruction at the
24charter school.

end delete
25begin insert

begin insertSEC. 88.end insert  

end insert

begin insertSection 47663 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

47663.  

(a) begin insert(1)end insertbegin insertend insert For a pupil of a charter school sponsored by
28a basic aid school district who resides in, and is otherwise eligible
29to attend, a school district other than a basic aid school district,
30the Superintendentbegin delete of Public Instructionend delete shall apportion to the
31sponsoring school district an amount equal to 70 percent of the
32begin delete revenue limitend deletebegin insert local control funding formula base grant computed
33pursuant to subdivision (d) of Section 42238.02,end insert
per unit of average
34daily attendance that would have been apportioned to the school
35district that the pupil resides in and would otherwise have been
36eligible to attend.

begin insert

37(2) Notwithstanding paragraph (1), until the Superintendent
38determines that the school district the pupil resides in, and would
39otherwise have been eligible to attend, is funded pursuant to
40Section 42238.02 in the prior fiscal year, the Superintendent shall
P149  1apportion, for average daily attendance pursuant to this article,
270 percent of the sum of the entitlements for the school district
3that the pupil resides in, and would otherwise have been eligible
4to attend, for the specified fiscal year as computed pursuant to
5paragraphs (1) to (4), inclusive, of subdivision (a) of Section
642238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
7divided by the average daily attendance for that fiscal year and
8then multiplied by the ratio of local control funding formula base
9grant funding computed pursuant to subdivision (d) of Section
1042238.02 to the local control funding formula amount for the fiscal
11year computed pursuant to Section 42238.02.

end insert

12(b) Abegin insert schoolend insert district that loses basic aid status as a result of
13transferring property taxes to a charter school or schools pursuant
14to Section 47635begin insert for pupils who reside in, and are otherwise
15eligible to attend, a school district other than the school district
16that sponsors the charter school,end insert
shall be eligible to receive a pro
17rata share of funding provided by subdivision (a), with the proration
18factor calculated as the ratio of the following:

19(1) The amount of property taxes that thebegin insert schoolend insert district receives
20in excess of its totalbegin delete revenue limit guarantee, prior toend deletebegin insert base grant
21per unit of average daily attendance calculated pursuant to Section
2242238.02, as impend insert
begin insertlemented by Section 42238.03, beforeend insert any
23transfers made pursuant to Section 47635begin insert, except for transfers of
24in lieu of property taxes made for pupils who reside in, and would
25otherwise be eligible to attend, a school of the school districtend insert
.

26(2) The total amount ofbegin insert in lieu ofend insert property taxes transferred
27pursuant to Section 47635 to the charter school or schools that it
28sponsorsbegin insert, except for transfers of in lieu of property taxes made for
29pupils who reside in, and would otherwise be eligible to attend, a
30school of the school districtend insert
.

begin insert

31(c) In no event shall the amount provided pursuant to this section
32exceed the amount of in lieu of property taxes transferred on behalf
33of charter school pupils who do not reside in the school district,
34less the proportionate amount of base grant state aid provided
35pursuant to Section 42238.02, as implemented by Section 42238.03,
36that is attributable to the charter school pupils who do not reside
37in the school district.

end insert
begin delete

38(c)

end delete

39begin insert(d)end insert The Superintendentbegin delete of Public Instruction mayend deletebegin insert shallend insert not
40apportion funds for the attendance of a pupil in a charter school
P150  1of a nonbasic aid school district who resides in, and is otherwise
2eligible to attend school in, a basic aid school district unless the
3pupil is subject to the exception set forth in paragraph (5) of
4subdivision (b) of Section 47635.

begin delete

5(d)

end delete

6begin insert(e)end insert For purposes of this section, “basic aid school district” means
7a school district that does not receive from the state, for any fiscal
8year in which the subdivision is applied, an apportionment of state
9fundsbegin delete pursuant toend deletebegin insert as described inend insert subdivisionbegin delete (h)end deletebegin insert (o)end insert of Section
10begin delete 42238end deletebegin insert 42238.02end insert.

11begin insert

begin insertSEC. 89.end insert  

end insert

begin insertSection 47664 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
12

47664.  

(a) A school district in which all schools have been
13converted to charter schools pursuant to Section 47606, at the
14school district’s discretion, may use the funding method provided
15for by this chapter. A school district that elects to have its funding
16determined pursuant to the method provided for by this chapter
17shall so notify the Superintendent of Public Instruction by June 1
18prior to the affected fiscal year. Once made, an election to be
19funded pursuant to the method provided for by this chapter is
20irrevocable.

21(b) In the case of a school district in which all schools have been
22converted to charter schools pursuant to Section 47606, and that
23has not elected to be funded pursuant to the method provided for
24by this chapter, any increase in district average daily attendance
25attributable to pupils who reside in, and would otherwise be eligible
26to attend, a district other than the district sponsoring the charter
27school shall be funded at the lesser of the following:

28(1) The sponsoring district’s own base revenue limit per unit of
29average daily attendance.

30(2) The statewide average base revenue limit per unit of average
31daily attendance for districts of a similar type. For purposes of this
32paragraph, increases in average daily attendance shall be measured
33relative to the 1998-99 fiscal year or the fiscal year in which all
34schools in the district were converted to charter schools pursuant
35to Section 47606, whichever fiscal year is later.

36(c) A school district in which all schools have been converted
37to charter schools pursuant to Section 47606 and that is the
38sponsoring entity for a charter school or schools that were
39previously funded pursuant to the method provided pursuant to
40this chapter shall have its base revenue limit computed as follows:

P151  1(1) The average daily attendance of the charter school or schools
2for the fiscal year prior to the fiscal year in which the conversion
3is effective shall be multiplied by the statewide average base
4revenue limit per unit of average daily attendance for districts of
5similar type for the fiscal year in which the conversion is effective.

6(2) The school district’s remaining average daily attendance for
7the fiscal year prior to the fiscal year in which the conversion is
8effective shall be multiplied by the school district’s base revenue
9limit per unit of average daily attendance for the fiscal year in
10which the conversion is effective.

11(3) The amounts computed in paragraphs (1) and (2) shall be
12added and this total shall be divided by the district’s total average
13daily attendance, including average daily attendance in charter
14schools for which it is the sponsoring entity, for the fiscal year
15prior to the fiscal year in which the conversion is effective.

end delete
16begin insert

begin insertSEC. 90.end insert  

end insert

begin insertSection 48310 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
17read:end insert

18

48310.  

(a) The average daily attendance for pupils admitted
19by a school district of choice pursuant to this article shall be
20credited to thatbegin insert schoolend insert district pursuant to Section 46607. The
21attendance report for the school district of choice may include an
22identification of the school district of residence.

23(b) Notwithstanding other provisions of law, state aid for
24categorical education programs for pupils admitted under this
25article shall be apportioned to the school district of choice.

26(c) begin insert(1)end insertbegin insertend insert Forbegin delete anyend deletebegin insert aend insert school district of choice that is a basic aid
27begin insert schoolend insert district, the apportionment of state funds forbegin delete anyend delete average
28daily attendance credited pursuant to this section shall be 70 percent
29of the districtbegin delete revenue limit calculatedend deletebegin insert local control funding
30formula base grant computedend insert
pursuant tobegin insert subdivision (d) ofend insert Section
31begin delete 42238end deletebegin insert 42238.02, as implemented by Section 42238.03,end insert that would
32have been apportioned to thebegin insert schoolend insert district of residence.begin delete For
33purposes of this subdivision, the term “basic aid district” means a
34school district that does not receive from the state, for any fiscal
35year in which the subdivision is applied, an apportionment of state
36funds pursuant to subdivision (h) of Section 42238.end delete

begin insert

37(2) Notwithstanding paragraph (1), until the Superintendent
38determines that the school district of residence is funded pursuant
39to Section 42238.02 in the prior fiscal year, the Superintendent
40shall apportion, for average daily attendance pursuant to this
P152  1article, 70 percent of the sum of the entitlements for the school
2district of residence for the specified fiscal year as computed
3pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) of
4Section 42238.03 and paragraph (3) of subdivision (b) of Section
542238.03, divided by the average daily attendance pursuant to
6this article for that fiscal year and then multiplied by the ratio of
7local control funding formula base grant funding computed
8pursuant to subdivision (d) of Section 42238.02 to the local control
9funding formula amount for the fiscal year computed pursuant to
10Section 42238.02.

end insert
begin insert

11(3) For purposes of this subdivision, the term “basic aid school
12district” means a school district that does not receive from the
13state, for a fiscal year in which this subdivision is applied, an
14apportionment of state funds as described in subdivision (o) of
15Section 42238.02.

end insert

16(d) The average daily attendance of pupils admitted by a school
17district of choice pursuant to this article shall be credited to that
18school district forbegin delete theend delete purposes of any determination under Article
192 (commencing with Section 17010) of Chapter 12 of Part 10begin insert of
20Division 1 of Title 1end insert
thatbegin delete utilizesend deletebegin insert usesend insert an average daily attendance
21calculation.

22begin insert

begin insertSEC. 91.end insert  

end insert

begin insertSection 48359.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
23to read:end insert

24

48359.5.  

begin insert(a)end insertbegin insertend insert For a school district of enrollment that is a basic
25aidbegin insert schoolend insert district, the apportionment of state funds forbegin delete anyend delete average
26daily attendance credited pursuant to this article shall be 70 percent
27of thebegin insert schoolend insert districtbegin delete revenue limitend deletebegin insert local control fundingend insertbegin insert formula
28base grantend insert
that would have been apportioned to the school district
29of residencebegin insert pursuant to subdivision (d) of Section 42238.02end insert.
30Apportionment of these funds shall begin in the second consecutive
31year of enrollment, and continue annually until the pupil graduates
32from, or is no longer enrolled in, the school district of enrollment.
33begin delete For purposes of this section, “basic aid school district” means a
34school district that does not receive an apportionment of state funds
35pursuant to subdivision (h) of Section 42238 for any fiscal year in
36which this subdivision may apply.end delete

begin insert

37(b) Notwithstanding subdivision (a), until the Superintendent
38determines that the school district of enrollment is funded pursuant
39to Section 42238.02 in the prior fiscal year, the Superintendent
40shall apportion, for average daily attendance pursuant to this
P153  1article, 70 percent of the sum of the entitlements for the school
2district of enrollment for the specified fiscal year as computed
3pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) of
4Section 42238.03 and paragraph (3) of subdivision (b) of Section
542238.03, divided by the average daily attendance pursuant to
6this article for that fiscal year and then multiplied by the ratio of
7local control funding formula base grant funding computed
8pursuant to subdivision (d) of Section 42238.02 to the local control
9funding formula amount for the fiscal year computed pursuant to
10Section 42238.02.

end insert
begin insert

11(c) For purposes of this section, “basic aid school district”
12means a school district that does not receive an apportionment of
13state funds as described in subdivision (o) of Section 42238.02 for
14a fiscal year in which this section may apply.

end insert
15begin insert

begin insertSEC. 92.end insert  

end insert

begin insertSection 49085 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
16read:end insert

17

49085.  

begin insert(a)end insertbegin insertend insert The departmentbegin delete shall ensure that the California
18School Information Services system meets the needs of pupils in
19foster care and includes disaggregated data on pupils in foster care.end delete

20begin insert and the State Department of Social Services shall develop and
21enter into a memorandum of understanding that shall, at a
22minimum, require the State Department of Social Services, at least
23once per week, to share with the department both of the following:end insert

begin insert

24(1) Disaggregated information on children and youth in foster
25care sufficient for the department to identify pupils in foster care.

end insert
begin insert

26(2) Disaggregated data on children and youth in foster care
27that is helpful to county offices of education and other local
28educational agencies responsible for ensuring that pupils in foster
29care received appropriate educational supports and services.

end insert
begin insert

30(b) To the extent allowable under federal law, the department
31shall regularly identify pupils in foster care and designate those
32pupils in the California Longitudinal Pupil Achievement Data
33System or any future data system used by the department to collect
34disaggregated pupil outcome data.

end insert
begin insert

35(c) To the extent allowable under federal law, the
36Superintendent, on or before February 15 of each even-numbered
37year, shall report to the Legislature and the Governor on the
38educational outcomes for pupils in foster care at both the individual
39schoolsite level and school district level. The report shall include,
40but is not limited to, all of the following:

end insert
begin insert

P154  1(1) Individual schoolsite level and school district level
2educational outcome data for each local educational agency that
3enrolls at least 15 pupils in foster care, each county in which at
4least 15 pupils in foster care attend school, and for the entire state.

end insert
begin insert

5(2) The number of pupils in foster care statewide and by each
6local educational agency.

end insert
begin insert

7(3) The academic achievement of pupils in foster care.

end insert
begin insert

8(4) The incidence of suspension and expulsion for pupils in
9foster care.

end insert
begin insert

10(5) Truancy rates, attendance rates, and dropout rates for pupils
11in foster care.

end insert
begin insert

12(d) To the extent allowable under federal law, the department,
13at least once per week, shall do all of the following:

end insert
begin insert

14(1) Inform school districts and charter schools of any pupils
15enrolled in those school districts or charter schools who are in
16foster care.

end insert
begin insert

17(2) Inform county offices of education of any pupils enrolled in
18schools in the county who are in foster care.

end insert
begin insert

19(3) Provide schools districts, county office of education, and
20charter schools disaggregated data helpful to ensuring pupils in
21foster care receive appropriate educational supports and services.

end insert
begin insert

22(e) For purposes of this section “pupil in foster care” means a
23pupil who is under the jurisdiction of the juvenile court pursuant
24to Section 300, 601, or 602 of the Welfare and Institutions Code.

end insert
25begin insert

begin insertSEC. 93.end insert  

end insert

begin insertSection 49536 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
26read:end insert

27

49536.  

begin deleteThe State Department of Education end deletebegin insert(a)end insertbegin insertend insertbegin insertThe department end insert
28shall,begin delete prior toend deletebegin insert beforeend insert July 1 of each year, prescribe an adjustment
29in the state meal contribution rates established pursuant to this
30section for the forthcoming fiscal year. The adjustments shall
31reflect the changes in the cost of operating a school breakfast and
32lunch program and shall be made commencing on July 1 of each
33year. The adjustment shall be the average of the separate indices
34of the “Food Away From Home Index” for Los Angeles and San
35Francisco as prepared by the United States Bureau of Labor
36Statistics.

37begin insert(b)end insertbegin insertend insert In giving effect to the cost-of-living provisions of this
38section, thebegin delete Department of Educationend deletebegin insert departmentend insert shall use the
39same month for computation of the percentage change in the cost
40of living after July 1, 1975. The same month shall be used annually
P155  1thereafter. The product ofbegin delete anyend deletebegin insert aend insert percentage increase or decrease
2in the average index and the per meal reimbursement disbursement
3rate shall be adjusted by the amount ofbegin delete anyend deletebegin insert aend insert cost-of-living change
4currently in effect pursuant to the provisions of this section.

begin delete

5Commencing with

end delete

6begin insert(c)end insertbegin insertend insertbegin insertForend insert the 1990-91 fiscalbegin delete year,end deletebegin insert year to the 2012-13 fiscal year,
7inclusive,end insert
the cost-of-living adjustment shall be equal to the
8percentage change determined pursuant to subdivision (b) of
9Section 42238.1begin insert, as that section read on January 1, 2013.
10Commencing with the 2013-14 fiscal year, the cost-of-living
11adjustment shall be equal to the percentage determined pursuant
12to paragraph (2) of subdivision (d) of Section 42238.02end insert
.

13begin insert

begin insertSEC. 94.end insert  

end insert

begin insertSection 52051 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
14

52051.  

The Public School Performance Accountability Program
15is hereby established and shall consist of the following three
16component parts:

17(a) The state Academic Performance Index, to be known as the
18API.

19(b) The Immediate Intervention/Underperforming Schools
20Program.

21(c) The Governor’s High Achieving/Improving Schools
22Program.

end delete
23begin insert

begin insertSEC. 95.end insert  

end insert

begin insertSection 52052 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

52052.  

(a) (1) The Superintendent, with approval of the state
26board, shall develop an Academic Performance Index (API), to
27measure the performance ofbegin delete schools,end deletebegin insert schools and school districts,end insert
28 especially the academic performance of pupils.

29(2) A schoolbegin insert or school districtend insert shall demonstrate comparable
30improvement in academic achievement as measured by the API
31by all numerically significant pupil subgroups at thebegin delete school,end deletebegin insert school
32or school district,end insert
including:

33(A) Ethnic subgroups.

34(B) Socioeconomically disadvantaged pupils.

35(C) English learners.

36(D) Pupils with disabilities.

begin insert

37(E) Foster youth.

end insert

38(3) (A) For purposes of this section, a numerically significant
39pupil subgroup is one thatbegin delete meets both of the following criteria:end delete
40begin insert consists of at least 30 pupils, each of whom has a valid test score.end insert

begin insert

P156  1(B) Notwithstanding subparagraph (A), for a subgroup of pupils
2who are foster youth, a numerically significant pupil subgroup is
3one that consists of at least 15 pupils.

end insert
begin delete

4(i) The subgroup consists of at least 50 pupils each of whom
5has a valid test score.

end delete
begin delete

6(ii) The subgroup constitutes at least 15 percent of the total
7population of pupils at a school who have valid test scores.

end delete
begin delete

8(B) If a subgroup does not constitute 15 percent of the total
9population of pupils at a school who have valid test scores, the
10subgroup may constitute a numerically significant pupil subgroup
11if it has at least 100 valid test scores.

end delete

12(C) For a schoolbegin insert or school districtend insert with an API score that is
13based on no fewer than 11 and no more than 99 pupils with valid
14test scores, numerically significant pupil subgroups shall be defined
15by the Superintendent, with approval by the state board.

16(4) (A) The API shall consist of a variety of indicators currently
17reported to the department, including, but not limited to, the results
18of the achievement test administered pursuant to Section 60640,
19attendance rates for pupils in elementary schools, middle schools,
20and secondary schools, and the graduation rates for pupils in
21secondary schools.

22(B) The Superintendent, with the approval of the state board,
23may also incorporate into the API the rates at which pupils
24successfully promote from one grade to the next in middle school
25and high school, and successfully matriculate from middle school
26to high school.

27(C) Graduation rates for pupils in secondary schools shall be
28calculated for the API as follows:

29(i) Four-year graduation rates shall be calculated by taking the
30number of pupils who graduated on time for the current school
31year, which is considered to be three school years after the pupils
32entered grade 9 for the first time, and dividing that number by the
33total calculated in clause (ii).

34(ii) The number of pupils entering grade 9 for the first time in
35the school year three school years before the current school year,
36plus the number of pupils who transferred into the class graduating
37at the end of the current school year between the school year that
38was three school years before the current school year and the date
39of graduation, less the number of pupils who transferred out of the
40school between the school year that was three school years before
P157  1the current school year and the date of graduation who were
2members of the class that is graduating at the end of the current
3school year.

4(iii) Five-year graduation rates shall be calculated by taking the
5number of pupils who graduated on time for the current school
6year, which is considered to be four school years after the pupils
7entered grade 9 for the first time, and dividing that number by the
8total calculated in clause (iv).

9(iv) The number of pupils entering grade 9 for the first time in
10the school year four years before the current school year, plus the
11number of pupils who transferred into the class graduating at the
12end of the current school year between the school year that was
13four school years before the current school year and the date of
14graduation, less the number of pupils who transferred out of the
15school between the school year that was four years before the
16current school year and the date of graduation who were members
17of the class that is graduating at the end of the current school year.

18(v) Six-year graduation rates shall be calculated by taking the
19number of pupils who graduated on time for the current school
20year, which is considered to be five school years after the pupils
21entered grade 9 for the first time, and dividing that number by the
22total calculated in clause (vi).

23(vi) The number of pupils entering grade 9 for the first time in
24the school year five years before the current school year, plus the
25number of pupils who transferred into the class graduating at the
26end of the current school year between the school year that was
27five school years before the current school year and the date of
28graduation, less the number of pupils who transferred out of the
29school between the school year that was five years before the
30current school year and the date of graduation who were members
31of the class that is graduating at the end of the current school year.

32(D) The inclusion of five- and six-year graduation rates for
33pupils in secondary schools shall meet the following requirements:

34(i) Schools shall be granted one-half the credit in their API
35scores for graduating pupils in five years that they are granted for
36graduating pupils in four years.

37(ii) Schoolsbegin insert and school districtsend insert shall be granted one-quarter
38the credit in their API scores for graduating pupils in six years that
39they are granted for graduating pupils in four years.

P158  1(iii) Notwithstanding clauses (i) and (ii), schoolsbegin insert and school
2districtsend insert
shall be granted full credit in their API scores for
3graduating in five or six years a pupil with disabilities who
4graduates in accordance with his or her individualized education
5program.

6(E) The pupil data collected for the API that comes from the
7achievement test administered pursuant to Section 60640 and the
8high school exit examination administered pursuant to Section
960851, when fully implemented, shall be disaggregated by special
10education status, English learners, socioeconomic status, gender,
11and ethnic group. Only the test scores of pupils who were counted
12as part of the enrollment in the annual data collection of the
13California Basic Educational Data System for the current fiscal
14year and who were continuously enrolled during that year may be
15included in the test result reports in the API score of the school.

16(F) (i) Commencing with the baseline API calculation in 2016,
17and for each year thereafter, results of the achievement test and
18other tests specified in subdivision (b) shall constitute no more
19than 60 percent of the value of the index for secondary schools.

20(ii)  In addition to the elements required by this paragraph, the
21Superintendent, with approval of the state board, may incorporate
22into the index for secondary schools valid, reliable, and stable
23measures of pupil preparedness for postsecondary education and
24career.

25(G) Results of the achievement test and other tests specified in
26subdivision (b) shall constitute at least 60 percent of the value of
27the index for primary schools and middle schools.

28(H) It is the intent of the Legislature that the state’s system of
29public school accountability be more closely aligned with both the
30public’s expectations for public education and the workforce needs
31of the state’s economy. It is therefore necessary that the
32accountability system evolve beyond its narrow focus on pupil test
33scores to encompass other valuable information about school
34performance, including, but not limited to, pupil preparedness for
35college and career, as well as the high school graduation rates
36already required by law.

37(I) The Superintendent shall annually determine the accuracy
38of the graduation rate data. Notwithstanding any other law,
39graduation rates for pupils in dropout recovery high schools shall
40not be included in the API. For purposes of this subparagraph,
P159  1“dropout recovery high school” means a high school in which 50
2percent or more of its pupils have been designated as dropouts
3pursuant to the exit/withdrawal codes developed by the department
4or left a school and were not otherwise enrolled in a school for a
5period of at least 180 days.

6(J) To complement the API, the Superintendent, with the
7approval of the state board, may develop and implement a program
8of school quality review that features locally convened panels to
9visit schools, observe teachers, interview pupils, and examine pupil
10work, if an appropriation for this purpose is made in the annual
11Budget Act.

12(K) The Superintendent shall annually provide to local
13educational agencies and the public a transparent and
14understandable explanation of the individual components of the
15API and their relative values within the API.

16(L) An additional element chosen by the Superintendent and
17the state board for inclusion in the API pursuant to this paragraph
18shall not be incorporated into the API until at least one full school
19year after the state board’s decision to include the element into the
20API.

21(b) Pupil scores from the following tests, when available and
22when found to be valid and reliable for this purpose, shall be
23incorporated into the API:

24(1) The standards-based achievement tests provided for in
25Section 60642.5.

26(2) The high school exit examination.

27(c) Based on the API, the Superintendent shall develop, and the
28state board shall adopt, expected annual percentage growth targets
29for all schools based on their API baseline score from the previous
30year. Schools are expected to meet these growth targets through
31effective allocation of available resources. For schools below the
32statewide API performance target adopted by the state board
33pursuant to subdivision (d), the minimum annual percentage growth
34target shall be 5 percent of the difference between the actual API
35score of a school and the statewide API performance target, or one
36API point, whichever is greater. Schools at or above the statewide
37API performance target shall have, as their growth target,
38maintenance of their API score above the statewide API
39performance target. However, the state board may set differential
40growth targets based on grade level of instruction and may set
P160  1higher growth targets for the lowest performing schools because
2they have the greatest room for improvement. To meet its growth
3target, a school shall demonstrate that the annual growth in its API
4is equal to or more than its schoolwide annual percentage growth
5target and that all numerically significant pupil subgroups, as
6defined in subdivision (a), are making comparable improvement.

7(d) Upon adoption of state performance standards by the state
8board, the Superintendent shall recommend, and the state board
9shall adopt, a statewide API performance target that includes
10consideration of performance standards and represents the
11proficiency level required to meet the state performance target.
12begin delete When the API is fully developed, schools, at a minimum, shall
13meet their annual API growth targets to be eligible for the
14Governor’s Performance Award Program as set forth in Section
1552057. The state board may establish additional criteria that schools
16must meet to be eligible for the Governor’s Performance Award
17Program.end delete

18(e) (1) A schoolbegin insert or school districtend insert with 11 to 99 pupils with
19valid test scores shall receive an API score with an asterisk that
20indicates less statistical certainty than API scores based on 100 or
21more test scores.

22(2) A schoolbegin insert or school districtend insert annually shall receive an API
23score, unless the Superintendent determines that an API score
24would be an invalid measure of the performance of the schoolbegin insert or
25school districtend insert
for one or more of the following reasons:

26(A) Irregularities in testing procedures occurred.

27(B) The data used to calculate the API score of the schoolbegin insert or
28school districtend insert
are not representative of the pupil population at the
29schoolbegin insert or school districtend insert.

30(C) Significant demographic changes in the pupil population
31render year-to-year comparisons of pupil performance invalid.

32(D) The department discovers or receives information indicating
33that the integrity of the API score has been compromised.

34(E) Insufficient pupil participation in the assessments included
35in the API.

36(3) If a schoolbegin insert or school districtend insert has fewer than 100 pupils with
37valid test scores, the calculation of the API or adequate yearly
38progress pursuant to the federal No Child Left Behind Act of 2001
39(20 U.S.C. Sec. 6301 et seq.) and federal regulations may be
40calculated over more than one annual administration of the tests
P161  1administered pursuant to Section 60640 and the high school exit
2examination administered pursuant to Section 60851, consistent
3with regulations adopted by the state board.

4(f) Only schools with 100 or more test scores contributing to
5the API may be included in the API rankings.

6(g) The Superintendent, with the approval of the state board,
7shall develop an alternative accountability system for schools under
8the jurisdiction of a county board of education or a county
9superintendent of schools, community day schools, nonpublic,
10nonsectarian schools pursuant to Section 56366, and alternative
11schools serving high-risk pupils, including continuation high
12schools and opportunity schools. Schools in the alternative
13accountability system may receive an API score, but shall not be
14included in the API rankings.

begin insert

15(h) For purposes of this section, county offices of education
16shall be considered school districts.

end insert
17begin insert

begin insertSEC. 96.end insert  

end insert

begin insertSection 52052.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

52052.1.  

(a) Beginning July 1, 2011, in addition to the test
20scores specified in subparagraph (B) of paragraph (4) of subdivision
21(a) of Section 52052, the Academic Performance Index (API) for
22a school or school district shall do all of the following:

23(1) Include the test scores and other accountability data of
24enrolled pupils who were referred by the school or school district
25of residence to an alternative education program, including
26community, community day, and continuation high schools and
27independent study, and be calculated by assigning all accountability
28data on pupils in alternative education programs, including
29community, community day, and continuation high schools and
30independent study, to the school and school district of residence
31to ensure that placement decisions are in the best interests of
32affected pupils. If a pupil is referred to an alternative education
33program by a juvenile court judge or other correctional or judicial
34official, or if the pupil is expelled pursuant to subdivision (a)begin delete, (b),end delete
35 or (c) of Section 48915, the test scores of that pupil shall remain
36with the alternative education program and with the school district
37or county office of education serving that pupil. This section does
38not prohibit the alternative education program from counting the
39test scores of those pupils served in their alternative education
P162  1program. It is the intent of the Legislature that these alternative
2education programs remain accountable to the pupils they serve.

3(2) Exclude the test scores or other data of those pupils exempt
4pursuant to federal statute or federal regulation.

5(3) Include school and school district dropout rates for pupils
6who drop out of school while enrolled in grade 8 or 9. If reliable
7data is not available by July 1, 2011, the Superintendent, on or
8before that date, shall report to the Legislature the reasons for the
9delay and date he or she anticipates the specified dropout rates
10will be included in the API.

11(b) The advisory committee established pursuant to Section
1252052.5 shall recommend to the Superintendent and the state board
13all of the following:

14(1) The length of time for which the accountability data on
15pupils in alternative education programs shall be assigned to the
16school and school district of residence pursuant to paragraph (1)
17of subdivision (a).

18(2) Whether it is appropriate to assign accountability data to the
19school or the school district, pursuant to paragraph (1) of
20subdivision (a), if the pupil never attended the school of residence
21or has been absent for more than one year from the school district
22of residence due to placement in another school or school district
23or out of state.

begin insert

24(c) Before January 30, 2014, the advisory committee established
25pursuant to Section 52052.5 shall review, and recommend to the
26Superintendent and the state board any changes proposed for, the
27assignment of accountability data to the school district of residence
28pursuant to paragraph (1) of subdivision (a) based on the addition
29of Sections 2574, 2575, 42238.02, and 42238.03, and Article 4.5
30(commencing with Section 52060) by the act adding this
31subdivision.

end insert
32begin insert

begin insertSEC. 97.end insert  

end insert

begin insertSection 52052.2 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
33

52052.2.  

A school that receives an API score with an asterisk
34shall be eligible for the Governor’s Performance Awards Program,
35as set forth in Section 52057 and for participation in the Immediate
36Intervention/Underperforming Schools Program, as set forth in
37Section 52053.

end delete
38begin insert

begin insertSEC. 98.end insert  

end insert

begin insertSection 52052.5 of the end insertbegin insertEducation Codeend insertbegin insert is amended
39to read:end insert

P163  1

52052.5.  

(a) The Superintendent shall establish a broadly
2representative and diverse advisory committee to advise the
3Superintendentbegin delete of Public Instructionend delete and the state board on all
4appropriate matters relative to the creation of the Academic
5Performance Indexbegin delete and the implementation of the Immediate
6Intervention/Underperforming Schools Program and the High
7Achieving/Improving Schools Programend delete
. Members of the advisory
8committee shall serve without compensation for terms not to
9exceed two years. The department shall provide staff to the
10advisory panel.

11(b) By July 1, 2005, the advisory committee established pursuant
12to this section shall make recommendations to the Superintendent
13on the appropriateness and feasibility of a methodology for
14generating a measurement of academic performance bybegin delete utilizingend delete
15begin insert usingend insert unique pupil identifiers for pupils in kindergarten and any
16of grades 1 to 12, inclusive, and annual academic achievement
17growth to provide a more accurate measure of a school’s growth
18over time. If appropriate and feasible, the Superintendent, with the
19approval of the state board, shall thereafter implement this
20measurement of academic performance.

21(c) By January 1, 2011, the Superintendent and the state board,
22in consultation with the advisory committee established pursuant
23to subdivision (a), shall make recommendations to the Legislature
24and the Governor on each of the following:

25(1) Approaches to increasing the emphasis of science and
26mathematics in the calculation of the Academic Performance Index
27or any successor measure.

28(2) Methods to incorporate into the Academic Performance
29Index, or into other aspects of the state’s accountability system, a
30measure of the degree to which pupils graduate from high school
31with the skills and knowledge necessary to attain entry-level
32employment in business or industry, as set forth in subdivision (b)
33of Section 51228.

34(3) Methods to incorporate into the Academic Performance
35Index, or into other aspects of the state’s accountability system, a
36measure of the degree to which pupils graduate from high school
37with the skills and knowledge necessary to succeed in
38postsecondary education.

39(d) By July 1, 2013, the Superintendent and the state board, in
40consultation with the advisory committee established pursuant to
P164  1subdivision (a), shall make recommendations to the Legislature
2and the Governor on the establishment of a methodology for
3generating a measurement of group and individual academic
4performance growth by utilizing individual pupil results from a
5longitudinally valid achievement assessment system. These
6recommendations should also address any interactions between
7the Academic Performance Index, or any successor measure, and
8individual test scores from the state’s tests, as well as implications
9for the reauthorization of the state’s assessment system. This
10paragraph shall not be construed to supersede the provisions of
11Chapter 273 of the Statutes of 2009.

12begin insert

begin insertSEC. 99.end insert  

end insert

begin insertArticle 3 (commencing with Section 52053) of Chapter
13601 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation Codeend insertbegin insert is
14repealed.end insert

15begin insert

begin insertSEC. 100.end insert  

end insert

begin insertArticle 3.5 (commencing with Section 52055.600)
16of Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
17Code
end insert
begin insert is repealed.end insert

18begin insert

begin insertSEC. 101.end insert  

end insert

begin insertSection 52055.750 of the end insertbegin insertEducation Codeend insertbegin insert is amended
19to read:end insert

20

52055.750.  

(a) A school district or chartering authority that
21receives funding pursuant to this article shall agree to do all of the
22following for each funded school within its jurisdiction:

23(1) Comply with the program requirements of this article and
24require that each funded schoolsite complete and meet the criteria
25of an academic review process that includes the elements of the
26school assistance and intervention team review process described
27in Section 52055.51begin insert, as that section read on January 1, 2013end insert.

28(2) Ensure that funded schools meet the requirements of this
29article.

30(3) Ensure that each school administrator in a funded school is
31confirmed to have exemplary qualifications and experience by the
32end of the first full year of funding and in each year of funding
33thereafter. Those qualifications shall include the ability to support
34the success of all pupils by facilitating the development,
35articulation, implementation, and stewardship of a vision of
36learning that is shared and supported by the school community as
37well as the ability to advocate, nurture, and sustain a school culture
38and instructional program that is conducive to pupils learning and
39staff professional growth. The school district or chartering authority
40shall provide for high quality professional development for each
P165  1administrator through leadership training, coaching, and mentoring
2and shall take all reasonable steps to maintain stable school
3leadership in schools that receive funding pursuant to this article.
4To the extent appropriatebegin insert,end insert the professional development shall be
5similar in quality and rigor to that provided pursuant to the
6Administrator Training Program under Article 4.6 (commencing
7with Section 44510) of Chapter 3 of Part 25.

8(4) Provide all fiscal and evaluation data requested by the
9Superintendent for initial approval, annual reviews, and reports.

10(5) Comply with subdivisions (a) to (c), inclusive, of Section
1152055.630,begin insert as that section read on January 1, 2013,end insert and in the
12same manner consult with the exclusive representative of classified
13employees.

14(6) Assist eligible schools in developing and carrying out a plan
15to implement the provisions of this article to ensure thebegin insert schoolend insert
16 district’s plan supports the work of the school.

17(7) Agree to focus on conditions that improve instruction and
18achievement in funded schools.

19(8) Express its full understanding that not meeting annual and
20final program and academic achievement requirements under this
21article will result in the termination of funding.

22(9) Ensure that the funds received on behalf of funded schools
23are expended on that school, except that during the first partial
24year of fundingbegin insert schoolend insert districts may use funding under this article
25for facilities necessary to meet the class size reduction requirements
26of this article, if all funds are spent on funded schools within the
27begin insert schoolend insert district.

28(10) Use the uniform process recommended by the
29Superintendent pursuant to subdivision (d) of Section 52055.730
30to ensure that the average teaching experience of the classroom
31teachers in funded schools is equal to or greater than the average
32teaching experience of classroom teachers in the school district as
33a whole.

34(b) If not expressly prohibited by federal law, a school district
35or chartering authority on behalf of a funded school is exempt from
36requirements imposed on the use of state categorical or federal
37funds in the consolidated application, except those funds related
38to economic impact aid, if those funds are identified in the revised
39plan of Section 52055.755. Funded schools are exempt from all
40program requirements associated with funds in the consolidated
P166  1application, except requirements regarding parent advisory
2committees, schoolsite councils, and special education. Funds
3provided under the economic aid program shall not be used to
4implement this program.

5(c) Each funded school shall ensure that each teacher in a
6subject-specific classroom or teaching covered subjects participates
7in professional development that is made available by thebegin insert schoolend insert
8 district or the schoolsite councils, is developed in a collaborative
9process with interested parties, and is articulated in an improvement
10plan. For purposes of this article, professional development
11activities may include collaboration time for teachers to develop
12new instructional lessons or analyze pupil data, mentoring projects
13for new teachers, or extra support for teachers to improve practice.
14At a minimum, appropriate professional development for the site
15shall be part of a coherent plan that combines school activities
16within the school, including, but not limited to, lesson study or
17coteaching, and external learning opportunities that meet all of the
18following criteria:

19(1) Are related to the academic subjects taught.

20(2) Provide time to meet and work with other teachers.

21(3) Support instruction and pupil learning to improve instruction
22in a manner that is consistent with academic content standards.

23(4) Include an average of 40 hours per teacher per year.

24(d) At a minimum, professional development in a self-contained
25classroom shall include content regarding mathematics, science,
26English language arts, reading, and English language development.
27Professional development for teachers teaching subject specific
28courses shall include the specific subject and English language
29development. To the extent appropriate the professional
30development shall be similar in quality and rigor to the training
31provided under the Mathematics and Reading Professional
32Development Program in Article 3 (commencing with Section
3399230) of Chapter 5 of Part 65begin insert of Division 14 of Title 3end insert.

34(e) On or before the end of the first three years of full funding,
35funded schools shall do the following:

36(1) Increase actual pupil attendance, as compared with monthly
37enrollment in the school.

38(2) For secondary schools, increase graduation rates as described
39in Section 52055.640.

P167  1begin insert

begin insertSEC. 102.end insert  

end insert

begin insertArticle 4 (commencing with Section 52056) of
2Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insertEducation
3Code
end insert
begin insert is repealed.end insert

4begin insert

begin insertSEC. 103.end insert  

end insert

begin insertArticle 4.5 (commencing with Section 52060) is
5added to Chapter 6.1 of Part 28 of Division 4 of Title 2 of the end insert
begin insert6Education Codeend insertbegin insert, to read:end insert

begin insert

7 

8Article begin insert4.5.end insert  Local Control and Accountability Plans
9

 

10

begin insert52060.end insert  

(a) On or before July 1, 2014, the governing board of
11each school district shall adopt a local control and accountability
12plan using a template adopted by the state board.

13(b) A local control and accountability plan adopted by a
14governing board of a school district shall be effective for a period
15of three years, and shall be updated on or before July 1 of each
16year.

17(c) A local control and accountability plan adopted by a
18governing board of a school district shall include, for the school
19district and each school within the school district, a description
20of both of the following:

21(1) The annual goals, for all pupils and each subgroup of pupils
22identified pursuant to Section 52052, to be achieved for each of
23the state priorities identified in subdivision (d) and for any
24additional local priorities identified by the governing board of the
25school district. For purposes of this article, a subgroup of pupils
26identified pursuant to Section 52052 shall be a numerically
27significant pupil subgroup as specified in paragraphs (2) and (3)
28of subdivision (a) of Section 52052.

29(2) The specific actions the school district will take during each
30year of the local control and accountability plan to achieve the
31goals identified in paragraph (1), including the enumeration of
32any specific actions necessary for that year to correct any
33deficiencies in regard to the state priorities listed in paragraph
34(1) of subdivision (d).

35(d) All of the following are state priorities:

36(1) The degree to which the teachers of the school district are
37appropriately assigned in accordance with Section 44258.9, and
38fully credentialed in the subject areas, and, for the pupils they are
39teaching, every pupil in the school district has sufficient access to
40the standards-aligned instructional materials as determined
P168  1pursuant to Section 60119, and school facilities are maintained
2in good repair as specified in subdivision (d) of Section 17002.

3(2) Implementation of the academic content and performance
4standards adopted by the state board, including how the programs
5and services will enable English learners to access the common
6core academic content standards adopted pursuant to Section
760605.8 and the English language development standards adopted
8pursuant to Section 60811.3 for purposes of gaining academic
9content knowledge and English language proficiency.

10(3) Parental involvement, including efforts the school district
11makes to seek parent input in making decisions for the school
12district and each individual schoolsite, and including how the
13school district will promote parental participation in programs
14for unduplicated pupils and individuals with exceptional needs.

15(4) Pupil achievement, as measured by all of the following, as
16applicable:

17(A) Statewide assessments administered pursuant to Article 4
18(commencing with Section 60640) of Chapter 5 of Part 33 or any
19subsequent assessment, as certified by the state board.

20(B) The Academic Performance Index, as described in Section
2152052.

22(C) The percentage of pupils who have successfully completed
23courses that satisfy the requirements for entrance to the University
24of California and the California State University, or career
25technical education sequences or clusters of courses that satisfy
26the requirements of subdivision (a) of Section 52302, subdivision
27(a) of Section 52372.5, or paragraph (2) of subdivision (e) of
28Section 54692, and align with state board-approved career
29technical education standards and frameworks.

30(D) The percentage of English learner pupils who make progress
31toward English proficiency as measured by the California English
32Language Development Test or any subsequent assessment of
33English proficiency, as certified by the state board.

34(E) The English learner reclassification rate.

35(F) The percentage of pupils who have passed an advanced
36placement examination with a score of 3 or higher.

37(G) The percentage of pupils who participate in, and
38demonstrate college preparedness pursuant to, the Early
39Assessment Program, as described in Chapter 6 (commencing with
P169  1Section 99300) of Part 65 of Division 14 of Title 3, or any
2subsequent assessment of college preparedness.

3(5) Pupil engagement, as measured by all of the following, as
4applicable:

5(A) School attendance rates.

6(B) Chronic absenteeism rates.

7(C) Middle school dropout rates, as described in paragraph (3)
8of subdivision (a) of Section 52052.1.

9(D) High school dropout rates.

10(E) High school graduation rates.

11(6) School climate, as measured by all of the following, as
12applicable:

13(A) Pupil suspension rates.

14(B) Pupil expulsion rates.

15(C) Other local measures, including surveys of pupils, parents,
16and teachers on the sense of safety and school connectedness.

17(7) The extent to which pupils have access to, and are enrolled
18in, a broad course of study that includes all of the subject areas
19described in Section 51210 and subdivisions (a) to (i), inclusive,
20of Section 51220, as applicable, including the programs and
21services developed and provided to unduplicated pupils and
22individuals with exceptional needs, and the program and services
23that are provided to benefit these pupils as a result of the funding
24received pursuant to Section 42238.02, as implemented by Section
2542238.03.

26(8) Pupil outcomes, if available, in the subject areas described
27in Section 51210 and subdivisions (a) to (i), inclusive, of Section
2851220, as applicable.

29(e) For purposes of the descriptions required by subdivision
30(c), a governing board of a school district may consider qualitative
31information, including, but not limited to, findings that result from
32school quality reviews conducted pursuant to subparagraph (J)
33or paragraph (4) of subdivision (a) of Section 52052 or any other
34reviews.

35(f) To the extent practicable, data reported in a local control
36and accountability plan shall be reported in a manner consistent
37with how information is reported on a school accountability report
38card.

39(g) A governing board of a school district shall consult with
40teachers, principals, administrators, other school personnel,
P170  1parents, and pupils in developing a local control and accountability
2plan.

3(h) A school district may identify local priorities, goals in regard
4to the local priorities, and the method for measuring the school
5district’s progress toward achieving those goals.

6

begin insert52061.end insert  

(a) On or before July 1, 2015, and each year thereafter,
7a school district shall update the local control and accountability
8plan. The annual update shall be developed using a template
9developed pursuant to Section 52064 and shall include all of the
10following:

11(1) A review of any changes in the applicability of the goals
12described in paragraph (1) of subdivision (c) of Section 52060.

13(2) A review of the progress toward the goals included in the
14existing local control and accountability plan, an assessment of
15the effectiveness of the specific actions described in the existing
16local control and accountability plan toward achieving the goals,
17and a description of changes to the specific actions the school
18district will make as a result of the review and assessment.

19(3) A listing and description of the expenditures for the fiscal
20year implementing the specific actions included in the local control
21and accountability plan as a result of the reviews and assessment
22required by paragraphs (1) and (2).

23(4) A listing and description of expenditures for the fiscal year
24that will serve the pupils to whom one or more of the definitions
25in Section 42238.01 apply and pupils redesignated as fluent English
26proficient.

27(b) The expenditures identified in subdivision (a) shall be
28classified using the California School Accounting Manual pursuant
29to Section 41010.

30

begin insert52062.end insert  

(a) Before the governing board of a school district
31considers the adoption of a local control and accountability plan
32or an annual update to the local control and accountability plan,
33all of the following shall occur:

34(1) The superintendent of the school district shall present the
35local control and accountability plan or annual update to the local
36control and accountability plan to the parent advisory committee
37established pursuant to Section 52063 for review and comment.
38The superintendent of the school district shall respond, in writing,
39to comments received from the parent advisory committee.

P171  1(2) The superintendent of the school district shall present the
2local control and accountability plan or annual update to the local
3control and accountability plan to the English learner parent
4advisory committee established pursuant to Section 52063, if
5applicable, for review and comment. The superintendent of the
6school district shall respond, in writing, to comments received
7from the English learner parent advisory committee.

8(3) The superintendent of the school district shall notify members
9of the public of the opportunity to submit written comments
10regarding the specific actions and expenditures proposed to be
11included in the local control and accountability plan or annual
12update to the local control and accountability plan, using the most
13efficient method of notification possible. This paragraph shall not
14require a school district to produce printed notices or to send
15notices by mail.

16(4) The superintendent of the school district shall review school
17plans submitted pursuant to Section 64001 for schools within the
18school district and ensure that the specific actions included in the
19local control and accountability plan or annual update to the local
20control and accountability plan are consistent with strategies
21included in the school plans submitted pursuant to Section 64001.

22(b) (1) A governing board of a school district shall hold at least
23one public hearing to solicit the recommendations and comments
24of members of the public regarding the specific actions and
25expenditures proposed to be included in the local control and
26accountability plan or annual update to the local control and
27accountability plan. The agenda for the public hearing shall be
28posted at least 72 hours before the public hearing and shall include
29the location where the local control and accountability plan or
30annual update to the local control and accountability plan will be
31available for public inspection. The public hearing shall be held
32at the same meeting as the public hearing required by paragraph
33(1) of subdivision (a) of Section 42127.

34(2) A governing board of a school district shall adopt a local
35control and accountability plan or annual update to the local
36control and accountability plan in a public meeting. This meeting
37shall be held after, but not on the same day as, the public hearing
38held pursuant to paragraph (1). This meeting shall be the same
39meeting as that during which the governing board of the school
P172  1district adopts a budget pursuant to paragraph (2) of subdivision
2(a) of Section 42127.

3(c) A governing board of a school district may adopt revisions
4to a local control and accountability plan during the period the
5local control and accountability plan is in effect. A governing
6board of a school district may only adopt a revision to a local
7control and accountability plan if it follows the process to adopt
8a local control and accountability plan pursuant to this section
9and the revisions are adopted in a public meeting.

10

begin insert52063.end insert  

(a) (1) The governing board of a school district shall
11establish a parent advisory committee to provide advice to the
12governing board of the school district and the superintendent of
13the school district regarding the requirements of this article.

14(2) A parent advisory committee shall include parents or legal
15guardians of pupils to whom one or more of the definitions in
16Section 42238.01 apply.

17(3) This subdivision shall not require the governing board of
18the school district to establish a new parent advisory committee
19if the governing board of the school district already has established
20a parent advisory committee that meets the requirements of this
21subdivision, including any committee established to meet the
22requirements of the federal No Child Left Behind Act of 2001
23(Public Law 107-110) pursuant to Section 1112 of Subpart 1 of
24Part A of Title I of that act.

25(b) (1) The governing board of a school district shall establish
26an English learner parent advisory committee if the enrollment of
27the school district includes at least 15 percent English learners
28and the school district enrolls at least 50 pupils who are English
29learners.

30(2) This subdivision shall not require the governing board of
31the school district to establish a new English learner parent
32advisory committee if the governing board of the school district
33already has established a committee that meets the requirements
34of this subdivision.

35

begin insert52064.end insert  

(a) On or before March 31, 2014, the state board shall
36adopt templates for the following purposes:

37(1) For use by school districts to meet the requirements of
38Sections 52060 to 52063, inclusive.

39(2) For use by county superintendents of schools to meet the
40requirements of Sections 52066 to 52069, inclusive.

P173  1(3) For use by charter schools to meet the requirements of
2Section 47606.5.

3(b) The templates developed by the state board shall allow a
4school district, county superintendent of schools, or charter school
5to complete a single local control and accountability plan to meet
6the requirements of this article and the requirements of the federal
7No Child Left Behind Act of 2001 related to local educational
8agency plans pursuant to Section 1112 of Subpart 1 of Part A of
9Title I of Public Law 107-110. The state board shall also take steps
10to minimize duplication of effort at the local level to the greatest
11extent possible.

12(c) If possible, the templates identified in paragraph (2) of
13subdivision (a) for use by county superintendents of schools shall
14allow a county superintendent of schools to develop a single local
15control and accountability plan that would also satisfy the
16requirements of Section 48926.

17(d) The state board shall adopt the template pursuant to the
18requirements of the Administrative Procedure Act (Chapter 3.5
19(commencing with Section 11340) of Part 1 of Division 3 of Title
202 of the Government Code). The state board may adopt emergency
21regulations for purposes of implementing this section.

22(e) Revisions to a template or evaluation rubric shall be
23approved by the state board by January 31 before the fiscal year
24during which the template or evaluation rubric is to be used by a
25school district, county superintendent of schools, or charter school.

26(f) The adoption of a template or evaluation rubric by the state
27board shall not create a requirement for a governing board of a
28school district, a county board of education, or a governing body
29of a charter school to submit a local control and accountability
30plan to the state board, unless otherwise required by federal law.
31The Superintendent shall not require a local control and
32accountability plan to be submitted by a governing board of a
33school district or the governing body of a charter school to the
34state board. The state board may adopt a template or evaluation
35rubric that would authorize a school district or a charter school
36to submit to the state board only the sections of the local control
37and accountability plan required by federal law.

38

begin insert52064.5.end insert  

(a) On or before October 1, 2015, the state board
39shall adopt evaluation rubrics for all of the following purposes:

P174  1(1) To assist a school district, county office of education, or
2charter school in evaluating its strengths, weaknesses, and areas
3that require improvement.

4(2) To assist a county superintendent of schools in identifying
5school districts and charter schools in need of technical assistance
6pursuant to Section 52071 or 47607.3, as applicable, and the
7specific priorities upon which the technical assistance should be
8focused.

9(3) To assist the Superintendent in identifying school districts
10for which intervention pursuant to Section 52072 is warranted.

11(b) The evaluation rubrics shall reflect a holistic,
12multidimensional assessment of school district and individual
13schoolsite performance and shall include all of the state priorities
14described in subdivision (d) of Section 52060.

15(c) As part of the evaluation rubrics, the state board shall adopt
16standards for school district and individual schoolsite performance
17and expectation for improvement in regard to each of the state
18priorities described in subdivision (d) of Section 52060.

19

begin insert52065.end insert  

(a) The superintendent of a school district shall post
20on the Internet Web site of the school district any local control
21and accountability plan approved by the governing board of the
22school district, and any updates or revisions to a local control and
23accountability plan approved by the governing board of the school
24district.

25(b) A county superintendent of schools shall do all of the
26following:

27(1) Post on the Internet Web site of the county office of education
28any local control and accountability plan approved by the county
29board of education, and any updates or revisions to a local control
30and accountability plan approved by the county board of education.

31(2) Post all local control and accountability plans submitted by
32school districts, or links to those plans, on the Internet Web site
33of the county office of education.

34(3) Transmit or otherwise make available to the Superintendent
35all local control and accountability plans submitted to the county
36superintendent of schools by school districts and the local control
37and accountability plan approved by the county board of education.

38(c) The Superintendent shall post links to all local control and
39accountability plans approved by the governing boards of school
P175  1districts and county boards of education on the Internet Web site
2of the department.

3

begin insert52066.end insert  

(a) On or before July 1, 2014, each county
4superintendent of schools shall develop, and present to the county
5board of education for adoption, a local control and accountability
6plan using a template adopted by the state board.

7(b) A local control and accountability plan adopted by a county
8board of education shall be effective for a period of three years,
9and shall be updated on or before July 1 of each year.

10(c) A local control and accountability plan adopted by a county
11board of education shall include, for each school or program
12operated by the county superintendent of schools, a description of
13both of the following:

14(1) The annual goals, for all pupils and each subgroup of pupils
15identified pursuant to Section 52052, to be achieved for each of
16the state priorities identified in subdivision (d), as applicable to
17the pupils served, and for any additional local priorities identified
18by the county board of education.

19(2) The specific actions the county superintendent of schools
20will take during each year of the local control and accountability
21plan to achieve the goals identified in paragraph (1), including
22the enumeration of any specific actions necessary for that year to
23correct any deficiencies in regard to the state priorities listed in
24paragraph (1) of subdivision (d).

25(d) All of the following are state priorities:

26(1) The degree to which the teachers in the schools or programs
27operated by the county superintendent of schools are appropriately
28assigned in accordance with Section 44258.9 and fully credentialed
29in the subject areas, and, for the pupils they are teaching, every
30pupil in the schools or programs operated by the county
31superintendent of schools has sufficient access to the
32standards-aligned instructional materials as determined pursuant
33to Section 60119, and school facilities are maintained in good
34repair as specified in subdivision (d) of Section 17002.

35(2) Implementation of the academic content and performance
36standards adopted by the state board, including how the programs
37and services will enable English learners to access the common
38core academic content standards adopted pursuant to Section
3960605.8 and the English language development standards adopted
P176  1pursuant to Section 60811.3 for purposes of gaining academic
2content knowledge and English language proficiency.

3(3) Parental involvement, including efforts the county
4superintendent of schools makes to seek parent input in making
5decisions for each individual schoolsite and program operated by
6a county superintendent of schools, and including how the county
7superintendent of schools will promote parental participation in
8programs for unduplicated pupils and individuals with exceptional
9needs.

10(4) Pupil achievement, as measured by all of the following, as
11applicable:

12(A) Statewide assessments administered pursuant to Article 4
13(commencing with Section 60640) of Chapter 5 of Part 33 or any
14subsequent assessment, as certified by the state board.

15(B) The Academic Performance Index, as described in Section
1652052.

17(C) The percentage of pupils who have successfully completed
18courses that satisfy the requirements for entrance to the University
19of California and the California State University, or career
20technical education sequences or clusters of courses that satisfy
21the requirements of subdivision (a) of Section 52302, subdivision
22(a) of Section 52372.5, or paragraph (2) of subdivision (e) of
23Section 54692, and align with state board-approved career
24technical education standards and frameworks.

25(D) The percentage of English learner pupils who make progress
26toward English proficiency as measured by the California English
27Language Development Test or any subsequent assessment of
28English proficiency, as certified by the state board.

29(E) The English learner reclassification rate.

30(F) The percentage of pupils who have passed an advanced
31placement examination with a score of 3 or higher.

32(G) The percentage of pupils who participate in, and
33demonstrate college preparedness pursuant to, the Early
34Assessment Program, as described in Chapter 6 (commencing with
35Section 99300) of Part 65 of Division 14 of Title 3, or any
36subsequent assessment of college preparedness.

37(5) Pupil engagement, as measured by all of the following, as
38applicable:

39(A) School attendance rates.

40(B) Chronic absenteeism rates.

P177  1(C) Middle school dropout rates, as described in paragraph (3)
2of subdivision (a) of Section 52052.1.

3(D) High school dropout rates.

4(E) High school graduation rates.

5(6) School climate, as measured by all of the following, as
6applicable:

7(A) Pupil suspension rates.

8(B) Pupil expulsion rates.

9(C) Other local measures, including surveys of pupils, parents,
10and teachers on the sense of safety and school connectedness.

11(7) The extent to which pupils have access to, and are enrolled
12in, a broad course of study that includes all of the subject areas
13described in Section 51210 and subdivisions (a) to (i), inclusive,
14of Section 51220, as applicable, including the programs and
15services developed and provided to unduplicated pupils and
16individuals with exceptional needs, and the program and services
17that are provided to benefit these pupils as a result of the funding
18received pursuant to Section 42238.02, as implemented by Section
1942238.03.

20(8) Pupil outcomes, if available, in the subject areas described
21in Section 51210 and subdivisions (a) to (i), inclusive, of Section
2251220, as applicable.

23(9) How the county superintendent of schools will coordinate
24instruction of expelled pupils pursuant to Section 48926.

25(10) How the county superintendent of schools will coordinate
26services for foster children, including, but not limited to, all of the
27following:

28(A) Working with the county child welfare agency to minimize
29changes in school placement.

30(B) Providing education-related information to the county child
31welfare agency to assist the county child welfare agency in the
32delivery of services to foster children, including, but not limited
33to, educational status and progress information that is required
34to be included in court reports.

35(C) Responding to requests from the juvenile court for
36information and working with the juvenile court to ensure the
37delivery and coordination of necessary educational services.

38(D) Establishing a mechanism for the efficient expeditious
39transfer of health and education records and the health and
40education passport.

P178  1(e) For purposes of the descriptions required by subdivision
2(c), a county board of education may consider qualitative
3information, including, but not limited to, findings that result from
4school quality reviews conducted pursuant to subparagraph (J)
5or paragraph (4) of subdivision (a) of Section 52052 or any other
6reviews.

7(f) To the extent practicable, data reported in a local control
8and accountability plan shall be reported in a manner consistent
9with how information is reported on a school accountability report
10card.

11(g) The county superintendent of schools shall consult with
12teachers, principals, administrators, other school personnel,
13parents, and pupils in developing a local control and accountability
14plan.

15(h) A county board of education may identify local priorities,
16goals in regard to the local priorities, and the method for
17measuring the county office of education’s progress toward
18achieving those goals.

19

begin insert52067.end insert  

(a) On or before July 1, 2015, and each year thereafter,
20a county board of education shall update the local control and
21accountability plan. The annual update shall be developed using
22a template developed pursuant to Section 52064 and shall include
23all of the following:

24(1) A review of any changes in the applicability of the goals
25described in paragraph (1) of subdivision (c) of Section 52066.

26(2) A review of the progress toward the goals included in the
27existing local control and accountability plan, an assessment of
28the effectiveness of the specific actions described in the existing
29local control and accountability plan toward achieving the goals,
30and a description of changes to the specific actions the county
31office of education will make as a result of the review and
32assessment.

33(3) A listing and description of the expenditures for the fiscal
34 year implementing the specific actions included in the local control
35and accountability plan as a result of the reviews and assessment
36required by paragraphs (1) and (2).

37(4) A listing and description of expenditures for the fiscal year
38that will serve the pupils to whom one or more of the definitions
39in Section 42238.01 apply and pupils redesignated as fluent English
40proficient.

P179  1(b) The expenditures identified in subdivision (a) shall be
2classified using the California School Accounting Manual pursuant
3to Section 41010.

4

begin insert52068.end insert  

(a) Before the county board of education considers the
5adoption of a local control and accountability plan or an annual
6update to the local control and accountability plan, all of the
7following shall occur:

8(1) The county superintendent of schools shall present the local
9control and accountability plan or annual update to the local
10control and accountability plan to a parent advisory committee
11established pursuant to Section 52069 for review and comment.
12The county superintendent of schools shall respond, in writing, to
13comments received from the parent advisory committee.

14(2) The county superintendent of schools shall present the local
15control and accountability plan or annual update to the local
16control and accountability plan to the English learner parent
17advisory committee established pursuant to Section 52069, if
18applicable, for review and comment. The county superintendent
19of schools shall respond, in writing, to comments received from
20the English learner parent advisory committee.

21(3) The county superintendent of schools shall notify members
22of the public of the opportunity to submit written comments
23regarding the specific actions and expenditures proposed to be
24included in the local control and accountability plan or annual
25update to the local control and accountability plan, using the most
26efficient method of notification possible. This paragraph shall not
27require a county superintendent of schools to produce printed
28notices or to send notices by mail.

29(4) The county superintendent of schools shall review school
30plans submitted pursuant to Section 64001 for schools operated
31by the county superintendent of schools and ensure that the specific
32actions included in the local control and accountability plan or
33annual update to the local control and accountability plan are
34consistent with strategies included in the school plans submitted
35pursuant to Section 64001.

36(b) (1) The county board of education shall hold at least one
37public hearing to solicit the recommendations and comments of
38members of the public regarding the specific actions and
39expenditures proposed to be included in the local control and
40accountability plan or annual update to the local control and
P180  1accountability plan. The agenda for the public hearing shall be
2posted at least 72 hours before the public hearing and shall include
3the location where the local control and accountability plan or
4annual update to the local control and accountability plan, and
5any comments received pursuant to paragraphs (1) to (3), inclusive,
6of subdivision (a), will be available for public inspection. The
7public hearing shall be held at the same meeting as the public
8hearing required by Section 1620.

9(2) The county board of education shall adopt a local control
10and accountability plan or annual update to the local control and
11accountability plan in a public meeting. This meeting shall be held
12after, but not on the same day as, the public hearing held pursuant
13to paragraph (1). This meeting shall be the same meeting as that
14during which the county board of education adopts a budget
15pursuant to Section 1622.

16(c) A county superintendent of schools may develop and present
17to a county board of education for adoption revisions to a local
18control and accountability plan during the period the local control
19and accountability plan is in effect. The county board of education
20may only adopt a revision to a local control and accountability
21plan if it follows the process to adopt a local control and
22accountability plan pursuant to this section and the revisions are
23adopted in a public meeting.

24

begin insert52069.end insert  

(a) (1) A county superintendent of schools shall
25establish a parent advisory committee to provide advice to the
26county board of education and the county superintendent of schools
27regarding the requirements of this article.

28(2) A parent advisory committee shall include parents or legal
29guardians of pupils to whom one or more of the definitions in
30Section 42238.01 apply.

31(3) This subdivision shall not require the county superintendent
32of schools to establish a new parent advisory committee if the
33county superintendent of schools already has established a parent
34advisory committee that meets the requirements of this subdivision,
35including any committee established to meet the requirements of
36the federal No Child Left Behind Act of 2001 (Public Law 107-110)
37pursuant to Section 1112 of Subpart 1 of Part A of Title I of that
38act.

39(b) (1) A county superintendent of schools shall establish an
40English learner parent advisory committee if the enrollment of the
P181  1pupils in the schools and programs operated by the county
2superintendent of schools includes at least 15 percent English
3learners and the schools and programs operated by the county
4superintendent of schools enroll at least 50 pupils who are English
5learners.

6(2) This subdivision shall not require the county superintendent
7of schools to establish a new English learner parent advisory
8committee if the county superintendent of schools already has
9established a committee that meets the requirements of this
10subdivision.

11

begin insert52070.end insert  

(a) Not later than five days after adoption of a local
12control and accountability plan or annual update to a local control
13and accountability plan, the governing board of a school district
14shall file the local control and accountability plan or annual update
15to the local control and accountability plan with the county
16superintendent of schools.

17(b) On or before August 15 of each year, the county
18superintendent of schools may seek clarification, in writing, from
19the governing board of a school district about the contents of the
20local control and accountability plan or annual update to the local
21control and accountability plan. Within 15 days the governing
22board of a school district shall respond, in writing, to requests for
23clarification.

24(c) Within 15 days of receiving the response from the governing
25board of the school district, the county superintendent of schools
26may submit recommendations, in writing, for amendments to the
27local control and accountability plan or annual update to the local
28control and accountability plan. The governing board of a school
29district shall consider the recommendations submitted by the county
30superintendent of schools in a public meeting within 15 days of
31receiving the recommendations.

32(d) The county superintendent of schools shall approve a local
33control and accountability plan or annual update to a local control
34and accountability plan on or before October 8, if he or she
35determines both of the following:

36(1) The local control and accountability plan or annual update
37to the local control and accountability plan adheres to the template
38adopted by the state board pursuant to Section 52064.

39(2) The budget for the applicable fiscal year adopted by the
40governing board of the school district includes expenditures
P182  1sufficient to implement the specific actions and strategies included
2in the local control and accountability plan adopted by the
3governing board of the school district, based on the projections
4of the costs included in the plan.

5(e) If a county superintendent of schools has jurisdiction over
6a single school district, the Superintendent shall designate a county
7superintendent of schools of an adjoining county to perform the
8duties specified in this section.

9

begin insert52070.5.end insert  

(a) Not later than five days after adoption of a local
10control and accountability plan or annual update to a local control
11and accountability plan, the county board of education shall file
12the local control and accountability plan or annual update to the
13local control and accountability plan with the Superintendent.

14(b) On or before August 15 of each year, the Superintendent
15may seek clarification, in writing, from the county board of
16education about the contents of the local control and accountability
17plan or annual update to the local control and accountability plan.
18Within 15 days the county board of education shall respond, in
19writing, to requests for clarification.

20(c) Within 15 days of receiving the response from the county
21board of education, the Superintendent may submit
22recommendations, in writing, for amendments to the local control
23and accountability plan or annual update to the local control and
24accountability plan. The county board of education shall consider
25the recommendations submitted by the Superintendent in a public
26meeting within 15 days of receiving the recommendations.

27(d) The Superintendent shall approve a local control and
28accountability plan or annual update to a local control and
29accountability plan on or before October 8, if he or she determines
30both of the following:

31(1) The local control and accountability plan or annual update
32to the local control and accountability plan adheres to the template
33adopted by the state board pursuant to Section 52064.

34(2) The budget for the applicable fiscal year adopted by the
35county board of education includes expenditures sufficient to
36implement the specific actions and strategies included in the local
37control and accountability plan adopted by the county board of
38education, based on the projections of the costs included in the
39plan.

P183  1

begin insert52071.end insert  

(a) If a county superintendent of schools does not
2approve a local control and accountability plan or annual update
3to the local control and accountability plan approved by a
4governing board of a school district, or if the governing board of
5a school district requests technical assistance, the county
6superintendent of schools shall provide technical assistance,
7including, among other things, any of the following:

8(1) Identification of the school district’s strengths and
9weaknesses in regard to the state priorities described in subdivision
10(d) of Section 52060, communicated in writing to the school
11district. This identification shall include a review of effective,
12evidence-based programs that apply to the school district’s goals.

13(2) Assignment of an academic expert or team of academic
14experts to assist the school district in identifying and implementing
15effective programs that are designed to improve the outcomes for
16all pupil subgroups identified pursuant to Section 52052. The
17county superintendent of schools may also solicit another school
18district within the county to act as a partner to the school district
19in need of technical assistance.

20(3) Request that the Superintendent assign the California
21Collaborative for Educational Excellence to provide advice and
22assistance to the school district.

23(b) Using an evaluation rubric adopted by the state board
24pursuant to Section 52064.5, the county superintendent of schools
25shall provide the technical assistance described in subdivision (a)
26to any school district that fails to improve pupil achievement across
27more than one state priority described in subdivision (d) of Section
2852060 for one or more pupil subgroup identified pursuant to
29Section 52052.

30(c) Technical assistance provided pursuant to this section at
31the request of a school district shall be paid for by the school
32district requesting the assistance.

33

begin insert52071.5.end insert  

(a) If the Superintendent does not approve a local
34control and accountability plan or annual update to the local
35control and accountability plan approved by a county board of
36education, or if the county board of education requests technical
37assistance, the Superintendent shall provide technical assistance,
38including, among other things, any of the following:

39(1) Identification of the county board of education’s strengths
40and weaknesses in regard to the state priorities described in
P184  1subdivision (d) of Section 52066, communicated in writing to the
2county board of education. This identification shall include a
3review of effective, evidence-based programs that apply to the
4board’s goals.

5(2) Assignment of an academic expert or team of academic
6experts, or the California Collaborative for Educational Excellence
7established pursuant to Section 52074, to assist the county board
8of education in identifying and implementing effective programs
9that are designed to improve the outcomes for all pupil subgroups
10identified pursuant to Section 52052. The Superintendent may also
11solicit another county office of education to act as a partner to the
12county office of education in need of technical assistance.

13(b) Using an evaluation rubric adopted by the state board
14pursuant to Section 52064.5, the Superintendent shall provide the
15technical assistance described in subdivision (a) to any county
16office of education that fails to improve pupil achievement in
17regard to more than one state priority described in subdivision
18(d) of Section 52066 for one or more pupil subgroups identified
19pursuant to Section 52052.

20(c) Technical assistance provided pursuant to this section at
21the request of a county board of education shall be paid for by the
22county board of education receiving assistance.

23

begin insert52072.end insert  

(a) The Superintendent may, with the approval of the
24state board, identify school districts in need of intervention.

25(b) The Superintendent shall only intervene in a school district
26that meets both of the following criteria:

27(1) The school district did not improve the outcomes for three
28or more pupil subgroups identified pursuant to Section 52052 or,
29if the school district has less than three pupil subgroups, all of the
30school district’s pupil subgroups, in regard to more than one state
31or local priority in three out of four consecutive school years.

32(2) The California Collaborative for Educational Excellence
33has provided advice and assistance to the school district pursuant
34to Section 52071 and submits either of the following findings to
35the Superintendent:

36(A) That the school district has failed, or is unable, to implement
37the recommendations of the California Collaborative for
38Educational Excellence.

39(B) That the inadequate performance of the school district,
40based upon an evaluation rubric adopted pursuant to Section
P185  152064.5, is either so persistent or acute as to require intervention
2by the Superintendent.

3(c) For school districts identified pursuant to subdivision (a),
4the Superintendent may, with the approval of the state board, do
5one or more of the following:

6(1) Make changes to a local control and accountability plan
7adopted by the governing board of the school district.

8(2) Develop and impose a budget revision, in conjunction with
9revisions to the local control and accountability plan, that the
10Superintendent determines would allow the school district to
11improve the outcomes for all pupil subgroups identified pursuant
12to Section 52052 in regard to state and local priorities.

13(3) Stay or rescind an action, if that action is not required by a
14local collective bargaining agreement, that would prevent the
15school district from improving outcomes for all pupil subgroups
16identified pursuant to Section 52052 in regard to state or local
17priorities.

18(4) Appoint an academic trustee to exercise the powers and
19authority specified in this section on his or her behalf.

20(d) The Superintendent shall notify the county superintendent
21of schools, the county board of education, the superintendent of
22the school district, and the governing board of the school district
23of any action by the state board to direct him or her to exercise
24any of the powers and authorities specified in this section.

25

begin insert52072.5.end insert  

(a) The Superintendent may, with the approval of
26the state board, identify county offices of education in need of
27intervention.

28(b) The Superintendent shall only intervene in a county office
29of education that meets both of the following criteria:

30(1) The county office of education did not improve the outcomes
31for three or more pupil subgroups identified pursuant to Section
3252052 or, if the county office of education has less than three pupil
33subgroups, all of the county office of education’s pupil subgroups,
34in regard to more than one state or local priority in three out of
35four consecutive school years.

36(2) The California Collaborative for Educational Excellence
37has provided advice and assistance to the county office of education
38pursuant to Section 52071.5 and submits either of the following
39findings to the Superintendent:

P186  1(A) That the county office of education has failed, or is unable,
2to implement the recommendations of the California Collaborative
3for Educational Excellence.

4(B) That the inadequate performance of the county office of
5education, based upon an evaluation rubric adopted pursuant to
6Section 52064.5, is either so persistent or acute as to require
7intervention by the Superintendent.

8(c) For county offices of education identified pursuant to
9subdivision (a), the Superintendent may, with the approval of the
10state board, do one or more of the following:

11(1) Make changes to a local control and accountability plan
12adopted by the county board of education.

13(2) Develop and impose a budget revision, in conjunction with
14revisions to the local control and accountability plan, that the
15Superintendent determines would allow the county office of
16education to improve the outcomes for all pupil subgroups
17identified pursuant to Section 52052 in regard to state and local
18priorities.

19(3) Stay or rescind an action, if that action is not required by a
20local collective bargaining agreement, that would prevent the
21county office of education from improving outcomes for all pupil
22subgroups identified pursuant to Section 52052 in regard to state
23or local priorities.

24(4) Appoint an academic trustee to exercise the powers and
25authority specified in this section on his or her behalf.

26(d) The Superintendent shall notify the county board of
27education and the county superintendent of schools, in writing, of
28any action by the state board to direct him or her to exercise any
29of the powers and authorities specified in this section.

30

begin insert52074.end insert  

(a) The California Collaborative for Educational
31Excellence is hereby established.

32(b) The purpose of the California Collaborative for Educational
33Excellence is to advise and assist school districts, county
34superintendents of schools, and charter schools in achieving the
35goals set forth in a local control and accountability plan adopted
36pursuant to this article.

37(c) The Superintendent shall, with the approval of the state
38board, contract with individuals, local educational agencies, or
39organizations with the expertise, experience, and a record of
40success to carry out the purposes of this article. The areas of
P187  1expertise, experience, and record of success shall include, but are
2not limited to, all of the following:

3(1) State priorities as described in subdivision (d) of Section
452060.

5(2) Improving the quality of teaching.

6(3) Improving the quality of school district and schoolsite
7leadership.

8(4) Successfully addressing the needs of special pupil
9populations, including, but not limited to, English learners, pupils
10eligible to receive a free or reduced-price meal, pupils in foster
11care, and individuals with exceptional needs.

12(d) The Superintendent may direct the California Collaborative
13for Educational Excellence to advise and assist a school district,
14county superintendent of schools, or charter school in any of the
15following circumstances:

16(1) If the governing board of a school district, county board of
17education, or governing body or a charter school requests the
18advice and assistance of the California Collaborative for
19Educational Excellence.

20(2) If the county superintendent of schools of the county in which
21the school district or charter school is located determines,
22following the provision of technical assistance pursuant to Section
2352071 or 47607.3 as applicable, that the advice and assistance of
24the California Collaborative for Educational Excellence is
25necessary to help the school district or charter school accomplish
26the goals described in the local control and accountability plan
27adopted pursuant to this article.

28(3) If the Superintendent determines that the advice and
29assistance of the California Collaborative for Educational
30Excellence is necessary to help the school district, county
31superintendent of schools, or charter school accomplish the goals
32set forth in the local control and accountability plan adopted
33pursuant to this article.

34

begin insert52075.end insert  

(a) A complaint that a school district, county
35superintendent of schools, or charter school has not complied with
36the requirements of this article or Sections 47606.5 and 47607.3,
37as applicable, may be filed with a school district, county
38superintendent of schools, or charter school pursuant to the
39Uniform Complaint Procedures set forth in Chapter 5.1
P188  1(commencing with Section 4600) of Division 1 of Title 5 of the
2California Code of Regulations.

3(b) A complaint may be filed anonymously if the complaint
4provides evidence or information leading to evidence to support
5an allegation of noncompliance with the requirements of this
6article.

7(c) A complainant not satisfied with the decision of a school
8district, county superintendent of schools, or charter school may
9appeal the decision to the Superintendent and shall receive a
10written appeal decision within 60 days of the Superintendent’s
11receipt of the appeal.

12(d) If a school district, county superintendent of schools, or
13charter school finds merit in a complaint, or the Superintendent
14finds merit in an appeal, the school district, county superintendent
15of schools, or charter school shall provide a remedy to all affected
16pupils, parents, and guardians.

17(e) Information regarding the requirements of this article shall
18be included in the annual notification distributed to pupils, parents
19and guardians, employees, and other interested parties pursuant
20to Section 4622 of Title 5 of the California Code of Regulations
21or any successor regulation.

22(f) School districts, county superintendents of schools, and
23charter schools shall establish local policies and procedures to
24implement the provisions of this section on or before June 30,
252014.

26

begin insert52076.end insert  

Notwithstanding any other law, this article shall not
27be subject to waiver by the state board pursuant to Section 33050
28or by the Superintendent.

29

begin insert52077.end insert  

If any activities authorized pursuant to this article and
30implementing regulations are found to be a state reimbursable
31mandate pursuant to Section 6 of Article XIII B of the California
32Constitution, funding provided for school districts and county
33offices of education pursuant to Sections 2574, 2575, 42238.02,
34and 42238.03 shall be used to directly offset any mandated costs.

end insert
35begin insert

begin insertSEC. 104.end insert  

end insert

begin insertSection 56365 of the end insertbegin insertEducation Codeend insertbegin insert is amended
36to read:end insert

37

56365.  

(a) Services provided by nonpublic, nonsectarian
38schools, as defined pursuant to Section 56034, and nonpublic,
39nonsectarian agencies, as defined pursuant to Section 56035, shall
40be made available. These services shall be provided pursuant to
P189  1Section 56366, and in accordance with Section 300.146 of Title
234 of the Code of Federal Regulations, under contract with the
3local educational agency to provide the appropriate special
4educational facilities, special education, or designated instruction
5and services required by the individual with exceptional needs if
6no appropriate public education program is available.

7(b) Pupils enrolled in nonpublic, nonsectarian schools and
8agencies under this section shall be deemed to be enrolled in public
9schools for all purposes of Chapter 4 (commencing with Section
1041600) of Part 24begin insert of Division 3end insert and Sectionbegin delete 42238end deletebegin insert 42238.02end insert. The
11local educational agency shall be eligible to receive allowances
12under Articles 3 (commencing with Section 56836.165) and 4
13(commencing with Section 56836.20) of Chapter 7.2 for services
14that are provided to individuals with exceptional needs pursuant
15to the contract.

16(c) If the state participates in the federal program of assistance
17for state-operated or state-supported programs for individuals with
18exceptional needsbegin delete (P.L.end deletebegin insert (Public Lawend insert 89-313, Sec. 6), pupils
19enrolled in nonpublic, nonsectarian schools shall be deemed to be
20enrolled in state-supported institutions for all purposes of that
21program and shall be eligible to receive allowances under Chapter
227.2 (commencing with Section 56836) for supplemental services
23provided to individuals with exceptional needs pursuant to a
24contract with a local educational agency. In order to participate in
25the federal program, the state shall find that participation will not
26result in any additional expenditures from the General Fund.

27(d) The local educational agency shall pay to the nonpublic,
28nonsectarian school or agency the full amount of the tuition for
29individuals with exceptional needs that are enrolled in programs
30provided by the nonpublic, nonsectarian school pursuant to the
31contract.

32(e) Before contracting with a nonpublic, nonsectarian school or
33agency outside of this state, the local educational agency shall
34document its efforts to utilize public schools or to locate an
35appropriate nonpublic, nonsectarian school or agency program, or
36both, within the state.

37(f) If a local educational agency places a pupil with a nonpublic,
38nonsectarian school or agency outside of this state, the pupil’s
39individualized education program team shall submit a report to
40the Superintendent within 15 days of the placement decision. The
P190  1report shall include information about the special education and
2related services provided by the out-of-state program placement
3and the costs of the special education and related services provided,
4and shall indicate the efforts of the local educational agency to
5locate an appropriate public school or nonpublic, nonsectarian
6school or agency, or a combination thereof, within the state. The
7Superintendent shall submit a report to the board on all placements
8made outside of this state.

9(g) If a local educational agency decides to place a pupil with
10a nonpublic, nonsectarian school or agency outside of this state,
11that local educational agency shall indicate the anticipated date
12for the return of the pupil to a public or nonpublic, nonsectarian
13school or agency placement, or a combination thereof, located in
14the state and shall document efforts during the previous placement
15year to return the pupil.

16(h) In addition to meeting the requirements of Section 56366.1,
17a nonpublic, nonsectarian school or agency that operates a program
18outside of this state shall be certified or licensed by that state to
19provide, respectively, special education and related services and
20designated instruction and related services to pupils under the
21federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
221400 et seq.).

23(i) A nonpublic, nonsectarian school or agency that is located
24outside of this state is eligible for certification pursuant to Section
2556366.1 only if a pupil is enrolled in a program operated by that
26school or agency pursuant to the recommendation of an
27individualized education program team in California, and if that
28pupil’s parents or guardians reside in California.

29(j) In accordance with Section 300.147(b) and (c) of Title 34 of
30the Code of Federal Regulations, the department shall disseminate
31copies of applicable standards to each nonpublic, nonsectarian
32school and nonpublic, nonsectarian agency to which a local
33educational agency has referred or placed an individual with
34exceptional needs and shall provide an opportunity for those
35nonpublic, nonsectarian schools and nonpublic, nonsectarian
36agencies to participate in the development and revision of state
37standards that apply to those entities.

38begin insert

begin insertSEC. 105.end insert  

end insert

begin insertSection 56366.1 of the end insertbegin insertEducation Codeend insertbegin insert is amended
39to read:end insert

P191  1

56366.1.  

(a) A nonpublic, nonsectarian school or agency that
2seeks certification shall file an application with the Superintendent
3on forms provided by the department and include the following
4information on the application:

5(1) A description of the special education and designated
6instruction and services provided to individuals with exceptional
7needs if the application is for nonpublic, nonsectarian school
8certification.

9(2) A description of the designated instruction and services
10provided to individuals with exceptional needs if the application
11is for nonpublic, nonsectarian agency certification.

12(3) A list of appropriately qualified staff, a description of the
13credential, license, or registration that qualifies each staff member
14rendering special education or designated instruction and services
15to do so, and copies of their credentials, licenses, or certificates of
16registration with the appropriate state or national organization that
17has established standards for the service rendered.

18(4) An annual operating budget.

19(5) Affidavits and assurances necessary to comply with all
20applicable federal, state, and local laws and regulations that include
21criminal record summaries required of all nonpublic, nonsectarian
22school or agency personnel having contact with minor children
23under Section 44237.

24(b) (1) The applicant shall provide the special education local
25plan area in which the applicant is located with the written
26notification of its intent to seek certification or renewal of its
27certification. The applicant shall submit on a form, developed by
28the department, a signed verification by local educational agency
29representatives that they have been notified of the intent to certify
30or renew certification. The verification shall include a statement
31that representatives of the local educational agency for the area in
32which the applicant is located have had the opportunity to review
33the application at least 60 calendar days prior to submission of an
34initial application to the Superintendent, or at least 30 calendar
35days prior to submission of a renewal application to the
36Superintendent. The signed verification shall provide assurances
37that local educational agency representatives have had the
38opportunity to provide input on all required components of the
39application.

P192  1(2) If the applicant has not received a response from the local
2educational agency 60 calendar days from the date of the return
3receipt for initial applications or 30 calendar days from the date
4of the return receipt for renewal applications, the applicant may
5file the application with the Superintendent. A copy of the return
6receipt shall be included with the application as verification of
7notification efforts to the local educational agency.

8(3) The department shall mail renewal application materials to
9certified nonpublic, nonsectarian schools and agencies at least 120
10daysbegin delete prior toend deletebegin insert beforeend insert the date their current certification expires.

11(c) If the applicant operates a facility or program on more than
12one site, each site shall be certified.

13(d) If the applicant is part of a larger program or facility on the
14same site, the Superintendent shall consider the effect of the total
15program on the applicant. A copy of the policies and standards for
16the nonpublic, nonsectarian school or agency and the larger
17program shall be available to the Superintendent.

18(e) begin deletePrior to end deletebegin insertBefore end insertcertification, the Superintendent shall conduct
19an onsite review of the facility and program for which the applicant
20seeks certification. The Superintendent may be assisted by
21representatives of the special education local plan area in which
22the applicant is located and a nonpublic, nonsectarian school or
23agency representative who does not have a conflict of interest with
24the applicant. The Superintendent shall conduct an additional onsite
25review of the facility and program within three years of the
26effective date of the certification, unless the Superintendent
27conditionally certifies the school or agency or unless the
28Superintendent receives a formal complaint against the school or
29agency. In the latter two cases, the Superintendent shall conduct
30an onsite review at least annually.

31(f) The Superintendent shall make a determination on an
32application within 120 days of receipt of the application and shall
33certify, conditionally certify, or deny certification to the applicant.
34If the Superintendent fails to take one of these actions within 120
35days, the applicant is automatically granted conditional certification
36for a period terminating on August 31 of the current school year.
37If certification is denied, the Superintendent shall provide reasons
38for the denial. The Superintendent may certify the school or agency
39for a period of not longer than one year.

P193  1(g) Certification becomes effective on the date the nonpublic,
2nonsectarian school or agency meets all the application
3requirements and is approved by the Superintendent. Certification
4may be retroactive if the school or agency met all the requirements
5of this section on the date the retroactive certification is effective.
6Certification expires on December 31 of the terminating year.

7(h) The Superintendent annually shall review the certification
8of each nonpublic, nonsectarian school and agency. For this
9purpose, a certified school or agency annually shall update its
10application between August 1 and October 31, unless the board
11grants a waiver pursuant to Section 56101. The Superintendent
12may conduct an onsite review as part of the annual review.

13(i) (1) The Superintendent shall conduct an investigation of a
14nonpublic, nonsectarian school or agency onsite at any time without
15prior notice if there is substantial reason to believe that there is an
16immediate danger to the health, safety, or welfare of a child. The
17Superintendent shall document the concern and submit it to the
18nonpublic, nonsectarian school or agency at the time of the onsite
19investigation. The Superintendent shall require a written response
20to any noncompliance or deficiency found.

21(2) With respect to a nonpublic, nonsectarian school, the
22Superintendent shall conduct an investigation, which may include
23an unannounced onsite visit, if the Superintendent receives
24evidence of a significant deficiency in the quality of educational
25services provided, a violation of Section 56366.9, or
26noncompliance with the policies expressed by subdivision (b) of
27Section 1501 of the Health and Safety Code by the nonpublic,
28nonsectarian school. The Superintendent shall document the
29complaint and the results of the investigation and shall provide
30copies of the documentation to the complainant, the nonpublic,
31nonsectarian school, and the contracting local educational agency.

32(3) Violations or noncompliance documented pursuant to
33paragraph (1) or (2) shall be reflected in the status of the
34certification of the school, at the discretion of the Superintendent,
35pending an approved plan of correction by the nonpublic,
36nonsectarian school. The department shall retain for a period of
3710 years all violations pertaining to certification of the nonpublic,
38nonsectarian school or agency.

39(j) The Superintendent shall monitor the facilities, the
40educational environment, and the quality of the educational
P194  1program, including the teaching staff, the credentials authorizing
2service, the standards-based core curriculum being employed, and
3the standard-focused instructional materials used, of an existing
4certified nonpublic, nonsectarian school or agency on a three-year
5cycle, as follows:

6(1) The nonpublic, nonsectarian school or agency shall complete
7a self-review in year one.

8(2) The Superintendent shall conduct an onsite review of the
9nonpublic, nonsectarian school or agency in year two.

10(3) The Superintendent shall conduct a followup visit to the
11nonpublic, nonsectarian school or agency in year three.

12(k) (1) Notwithstanding any otherbegin delete provision ofend delete law, the
13Superintendent shall not certify a nonpublic, nonsectarian school
14or agency that proposes to initiate or expand services to pupils
15currently educated in the immediate prior fiscal year in a juvenile
16court program, community school pursuant to Section 56150, or
17other nonspecial education program, including independent study
18or adult school, or both, unless the nonpublic, nonsectarian school
19or agency notifies the county superintendent of schools and the
20special education local plan area in which the proposed new or
21expanded nonpublic, nonsectarian school or agency is located of
22its intent to seek certification.

23(2) The notification shall occur no later than the December 1
24begin delete prior toend deletebegin insert beforeend insert the new fiscal year in which the proposed or
25expanding school or agency intends to initiate services. The notice
26shall include the following:

27(A) The specific date upon which the proposed nonpublic,
28nonsectarian school or agency is to be established.

29(B) The location of the proposed program or facility.

30(C) The number of pupils proposed for services, the number of
31pupils currently served in the juvenile court, community school,
32or other nonspecial education program, the current school services
33including special education and related services provided for these
34pupils, and the specific program of special education and related
35services to be provided under the proposed program.

36(D) The reason for the proposed change in services.

37(E) The number of staff who will provide special education and
38designated instruction and services and hold a current valid
39California credential or license in the service rendered.

P195  1(3) In addition to the requirements in subdivisions (a) to (f),
2inclusive, the Superintendent shall require and consider the
3following in determining whether to certify a nonpublic,
4nonsectarian school or agency as described in this subdivision:

5(A) A complete statement of the information required as part
6of the notice under paragraph (1).

7(B) Documentation of the steps taken in preparation for the
8conversion to a nonpublic, nonsectarian school or agency, including
9information related to changes in the population to be served and
10the services to be provided pursuant to each pupil’s individualized
11education program.

12(4) Notwithstanding any otherbegin delete provision ofend delete law, the certification
13becomes effective no earlier than July 1 if the school or agency
14provided the notification required pursuant to paragraph (1).

15(l) (1) Notwithstanding any otherbegin delete provision ofend delete law, the
16Superintendent shall not certify or renew the certification of a
17nonpublic, nonsectarian school or agency, unless all of the
18following conditions are met:

19(A) The entity operating the nonpublic, nonsectarian school or
20agency maintains separate financial records for each entity that it
21operates, with each nonpublic, nonsectarian school or agency
22identified separately from any licensed children’s institution that
23it operates.

24(B) The entity submits an annual budget that identifies the
25projected costs and revenues for each entity and demonstrates that
26the rates to be charged are reasonable to support the operation of
27the entity.

28(C) The entity submits an entitywide annual audit that identifies
29its costs and revenues, by entity, in accordance with generally
30accepted accounting and auditing principles. The audit shall clearly
31document the amount of moneys received and expended on the
32education program provided by the nonpublic, nonsectarian school.

33(D) The relationship between various entities operated by the
34same entity are documented, defining the responsibilities of the
35entities. The documentation shall clearly identify the services to
36be provided as part of each program, for example, the residential
37or medical program, the mental health program, or the educational
38program. The entity shall not seek funding from a public agency
39for a service, either separately or as part of a package of services,
P196  1if the service is funded by another public agency, either separately
2or as part of a package of services.

3(2) For purposes of this section, “licensed children’s institution”
4has the same meaning as it is defined by Section 56155.5.

5(m) The school or agency shall be charged a reasonable fee for
6certification. The Superintendent may adjust the fee annually
7commensurate with the statewide average percentage inflation
8adjustment computed forbegin delete revenue limitsend deletebegin insert local control funding
9formula allocations pursuant to Section 42238.02, as implemented
10by Section 42238.03,end insert
of unified school districts with greater than
111,500 units of average daily attendance if the percentage increase
12is reflected in thebegin insert schoolend insert districtbegin delete revenue limitend deletebegin insert local control funding
13formula allocation pursuant to Section 42238.02, as implemented
14by Section 42238.03,end insert
for inflation purposes. For purposes of this
15section, the base fee shall be the following:


16

 

(1)1-5 pupils   

$  300

(2)6-10 pupils   

500

(3)11-24 pupils   

1,000

(4)25-75 pupils   

1,500

(5)76 pupils and over   

2,000

P196 22

 

23The school or agency shall pay this fee when it applies for
24certification and when it updates its application for annual renewal
25by the Superintendent. The Superintendent shall use these fees to
26conduct onsite reviews, which may include field experts. No fee
27shall be refunded if the application is withdrawn or is denied by
28the Superintendent.

29(n) (1) Notwithstanding any otherbegin delete provision ofend delete law, only those
30nonpublic, nonsectarian schools and agencies that provide special
31education and designated instruction and services utilizing staff
32who hold a certificate, permit, or other document equivalent to
33that which staff in a public school are required to hold in the service
34rendered are eligible to receive certification. Only those nonpublic,
35nonsectarian schools or agencies located outside of California that
36employ staff who hold a current valid credential or license to render
37special education and related services as required by that state shall
38be eligible to be certified.

39(2) The board shall develop regulations to implement this
40subdivision.

P197  1(o) In addition to meeting the standards adopted by the board,
2a nonpublic, nonsectarian school or agency shall provide written
3assurances that it meets all applicable standards relating to fire,
4health, sanitation, and building safety.

5begin insert

begin insertSEC. 106.end insert  

end insert

begin insertSection 56836.21 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

56836.21.  

(a) The department shall administer an extraordinary
8cost pool to protect special education local plan areas from the
9extraordinary costs associated with single placements as described
10in subdivision (d). Funds shall be appropriated for this purpose in
11the annual Budget Act. Special education local plan areas shall be
12eligible for reimbursement from this pool in accordance with this
13section.

14(b) The threshold amount for claims under this section shall be
15the lesser of the following:

16(1) One percent of the allocation calculated pursuant to Section
1756836.08 for the special education local plan area for the current
18fiscal year for any special education local plan area that meets the
19criteria in Section 56212.

20(2) The department shall calculate the average cost of a
21nonpublic, nonsectarian school placement in the 1997-98 fiscal
22year. This amount shall be multiplied by 2.5, then by one plus the
23inflation factor computed pursuant to Section 42238.1,begin insert as that
24section read on January 1, 2013,end insert
to obtain the alternative threshold
25amount for claims in the 1998-99 fiscal year. In subsequent fiscal
26years, the alternative threshold amount shall be the alternative
27threshold amount for the prior fiscal year multiplied by one plus
28the inflation factor computed pursuant to Section 42238.1begin insert, as that
29section read on January 1, 2013, through the 2012-13 fiscal year
30and, commencing with the 2013-14 fiscal year, paragraph (2) ofend insert

31begin insert subdivision (d) of Section 42238.02end insert.

32(c) Special education local plan areas are eligible to submit
33claims for costs exceeding the threshold amount on forms
34developed by the department. All claims for a fiscal year shall be
35submitted by November 30 following the close of the fiscal year.
36If the total amount claimed by special education local plan areas
37exceeds the amount appropriated, the claims shall be prorated.

38(d) Special education local plan areas are eligible to submit
39claims for the costs of nonpublic, nonsectarian school placements
40in excess of those in existence in the 1997-98 fiscal year and of
P198  1special education and related services for pupils who reside in
2licensed children’s institutions.

3begin insert

begin insertSEC. 107.end insert  

end insert

begin insertSection 56836.24 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

56836.24.  

Commencing with the 1998-99 fiscal year and each
6year thereafter, thebegin delete superintendentend deletebegin insert end insertbegin insertSuperintendentend insert shall make the
7following computations to determine the amount of funding for
8the purposes specified in Section 56836.23 to apportion to each
9special education local plan area for the fiscal year in which the
10computation is made:

11(a) For the 1998-99 fiscal year the superintendent shall make
12the following computations:

13(1) Multiply the total amount of state General Fund money
14allocated to the special education local plan areas in the 1997-98
15fiscal year, for the purposes of Article 9 (commencing with Section
1656780) of Chapter 7, as that chapter existed on December 31, 1998,
17by one plus the inflation factor computed pursuant to subdivision
18(b) of Section 42238.1begin insert, as that section read on January 1, 2013,end insert
19 for the 1998-99 fiscal year.

20(2) Divide the amount calculated in paragraph (1) by the units
21of average daily attendance, exclusive of average daily attendance
22for absences excused pursuant to subdivision (b) of Section 46010
23as that subdivision read on July 1, 1997, reported for the special
24education local plan area for the 1997-98 fiscal year.

25(3) To determine the amount to be allocated to each special
26education local plan area in the 1998-99 fiscal year, the
27superintendent shall multiply the amount computed in paragraph
28(2) by the number of units of average daily attendance reported
29for the special education local plan area for the 1998-99 fiscal
30year, except that a special education local plan area designated as
31a necessary small special education local plan area in accordance
32with Section 56212 and reporting fewer than 15,000 units of
33average daily attendance for the 1998-99 fiscal year shall be
34deemed to have 15,000 units of average daily attendance, and no
35special education local plan area shall receive less than it received
36in the 1997-98 fiscal year.

37(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
38thebegin delete superintendentend deletebegin insert Superintendentend insert shall make the following
39calculations:

P199  1(1) Multiply the amount determined in paragraph (2) of
2subdivision (a) by one plus the inflation factor computed pursuant
3to subdivision (b) of Section 42238.1begin insert, as that section read on
4January 1, 2013, and commencing with the 2013-14 fiscal year,
5paragraph (2) of subdivision (d) of Section 42238.02end insert
for the current
6fiscal year.

7(2) Multiply the amount determined in paragraph (1) by the
8number of units of average daily attendance reported for the special
9education local plan area for the current fiscal year, except that a
10special education local plan area designated as a necessary small
11special education local plan area in accordance with Section 56212
12and reporting fewer than 15,000 units of average daily attendance
13for the current fiscal year shall be deemed to have 15,000 units of
14average daily attendance.

15begin insert

begin insertSEC. 108.end insert  

end insert

begin insertSection 7906 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

7906.  

For school districts:

18(a) “ADA” means a school district’s second principal
19apportionment units of average daily attendance as determined
20pursuant to Sectionbegin delete 42238.5end deletebegin insert 42238.5end insert of the Education Code,
21including average daily attendance in summer school, regional
22occupational centers and programs, and apprenticeship programs,
23and excluding average daily attendance in adult education
24programs. All other units of average daily attendance including,
25but not limited to, special day classes for special education pupils,
26shall be included.

begin delete

27(1) For purposes of this subdivision, the average daily attendance
28of summer school programs shall be determined pursuant to
29subparagraph (F) of paragraph (1) of subdivision (a) of Section
3014022.5 of the Education Code.

end delete
begin delete

31(2)

end delete

32begin insert(1)end insert For purposes of this subdivision, the average daily attendance
33of apprenticeship programs shall be determined pursuant to
34begin delete subparagraph (D) of paragraph (1) of subdivision (a) of Section
3514022.5end delete
begin insert Section 79149.1end insert of the Education Code.

begin delete

36(3) For the 2008-09, 2009-10, 2010-11, 2011-12, 2012-13,
372013-14, and 2014-15 fiscal years, the

end delete

38begin insert(2)end insertbegin insertend insertbegin insertFor the 2008-09 fiscal year and each fiscal year thereafter,
39the end insert
average daily attendance of public school districts, including
40county superintendents of schools, serving kindergarten and grades
P200  11 to 12, inclusive, or any part thereof, shall include the same
2amount of average daily attendance for classes for supplemental
3instruction and regional occupational centers and programs that
4was used for purposes of this section for the 2007-08 fiscal year.

5(b) “Foundation program level” means:

6(1) For the 1978-79 fiscal year, one thousand two hundred
7forty-one dollars ($1,241) for elementary school districts, one
8thousand three hundred twenty-two dollars ($1,322) for unified
9school districts, and one thousand four hundred twenty-seven
10dollars ($1,427) for high school districts.

11(2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
12inclusive, the levels specified in paragraph (1) increased by the
13lesser of the change in cost of living or California per capita
14personal income for the preceding calendar year.

15(3) For the 1986-87 fiscal year, the levels specified in paragraph
16(2) increased by one hundred eighty dollars ($180) for elementary
17school districts, one hundred ninety-one dollars ($191) for unified
18school districts, and two hundred seven dollars ($207) for high
19school districts.

20(4) For the 1987-88 fiscal year, the levels specified in paragraph
21(3) increased by the lesser of the change in cost of living or
22California per capita personal income for the preceding calendar
23year.

24(5) For the 1988-89 fiscal year and each fiscal year thereafter,
25the foundation program level shall be the appropriations limit of
26the school district for the current fiscal year, plus amounts paid
27for any nonreimbursed court or federal mandates imposed on or
28after November 6, 1979, less the sum of the following:

29(A) Interest earned on the proceeds of taxes during the current
30fiscal year.

31(B) The 50 percent of miscellaneous funds received during the
32current fiscal year that are from the proceeds of taxes.

33(C) Locally voted taxes received during the current fiscal year,
34such as parcel taxes or square foot taxes, unless for voter-approved
35bonded debt.

36(D) Any other local proceeds of taxes received during the current
37fiscal year, other than local taxes which count towards the revenue
38limit, such as excess bond revenues transferred to a district’s
39general fund pursuant to Section 15234 of the Education Code.

P201  1(c) “Proceeds of taxes” shall be deemed to include subventions
2received from the state only if those subventions are for one of the
3following two purposes:

4(1) Basic aid subventions of one hundred twenty dollars ($120)
5per ADA.

6(2) Additional apportionments that, when added to the district’s
7local revenues as defined in Section 42238 of the Education Code,
8do not exceed the foundation program level for that district. In no
9case shall subventions received from the state for reimbursement
10of state mandates in accordance with the provisions of Section 6
11of Article XIII B of the California Constitution or of Section 17561
12or for reimbursement of court or federal mandates imposed on or
13after November 6, 1979, be considered “proceeds of taxes” for
14purposes of this section.

15(d) Proceeds of taxes for a fiscal year shall not include any
16proceeds of taxes within the district’s beginning balance or reserve,
17unless those funds were not appropriated in a prior fiscal year.
18Funds that were appropriated to a reserve or other fund referenced
19in Section 5 of Article XIII B of the California Constitution shall
20be deemed to be appropriated for the purpose of this paragraph.

21(e) The remainder of the state apportionments, including special
22purpose apportionments and categorical aid subventions shall not
23be considered proceeds of taxes for a school district.

24(f) Each school district shall report to the Superintendent of
25Public Instruction and to the Director of Finance at least annually
26its appropriations limit, its appropriations subject to limitation, the
27amount of its state aid apportionments and subventions included
28within the proceeds of taxes of the school district, and amounts
29excluded from its appropriations limit, at a time and in a manner
30prescribed by the Superintendent of Public Instruction and
31approved by the Director of Finance.

32(g) For the 1988-89 fiscal year and each fiscal year thereafter,
33nothing in paragraph (2) of subdivision (c) shall be so construed
34as to require that the amount determined pursuant to subdivision
35(b) be multiplied by the amount determined pursuant to subdivision
36(a) for purposes of determining the amount of state aid included
37in school district “proceeds of taxes” for purposes of this section.

38begin insert

begin insertSEC. 109.end insert  

end insert

begin insertSection 50286 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
39to read:end insert

P202  1

50286.  

(a) If a contract is canceled under Section 50284, the
2owner shall pay a cancellation fee equal to 1212 percent of the
3current fair market value of the property , as determined by the
4county assessor as though the property were free of the contractual
5restriction.

6(b) The cancellation fee shall be paid to the county auditor, at
7the time and in the manner that the county auditor shall prescribe,
8and shall be allocated by the county auditor to each jurisdiction in
9the tax rate area in which the property is located in the same manner
10as the auditor allocates the annual tax increment in that tax rate
11area in that fiscal year.

12(c) Notwithstanding any otherbegin delete provision ofend delete law, revenue received
13by a school district pursuant to this section shall be considered
14property tax revenue for the purposes of Sectionbegin delete 42238end deletebegin insert 42238.02
15of the Education Code, as implemented pursuant to Section
1642238.03end insert
of the Education Code, and revenue received by a county
17superintendent of schools pursuant to this section shall be
18considered property tax revenue forbegin delete theend delete purposes of Articlebegin delete 3end deletebegin insert 4end insert
19 (commencing with Sectionbegin delete 2550)end deletebegin insert 2570)end insert of Chapter 12 of Part 2
20of Division 1 of Title 1 of the Education Code.

21begin insert

begin insertSEC. 110.end insert  

end insert

begin insertSection 33492.78 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
22amended to read:end insert

23

33492.78.  

(a) Section 33607.5 shall not apply to an agency
24created pursuant to this article. For purposes of Sectionsbegin delete 42238,
2584750,end delete
begin insert 42238.02, 84750.5,end insert and 84751 of the Education Code,
26funds allocated pursuant to this section shall be treated as if they
27were allocated pursuant to Section 33607.5.

28(1) This section shall apply to each redevelopment project area
29created pursuant to a redevelopment plan that contains the
30provisions required by Section 33670 and is created pursuant to
31this article. All the amounts calculated pursuant to this section
32shall be calculated after the amount required to be deposited in the
33Low and Moderate Income Housing Fund pursuant to Sections
3433334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
35has been deducted from the total amount of tax-increment funds
36received by the agency in the applicable fiscal year.

37(2) The payments made pursuant to this section shall be in
38addition to any amounts the school district or districts and
39community college district or districts receive pursuant to
40subdivision (a) of Section 33670. The agency shall reduce its
P203  1payments pursuant to this section to an affected school or
2community college district by any amount the agency has paid,
3directly or indirectly, pursuant to Section 33445, 33445.5, or 33446,
4or any provision of law other than this section for, or in connection
5with, a public facility owned or leased by that affected school or
6community college district.

7(3) (A) Of the total amount paid each year pursuant to this
8section to school districts, 43.9 percent shall be considered to be
9property taxes for the purposes of paragraph (1) of subdivisionbegin delete (h)end delete
10begin insert (j)end insert of Sectionbegin delete 42238end deletebegin insert 42238.02end insert of the Education Code, and 56.1
11percent shall not be considered to be property taxes for the purposes
12of that section, and shall be available to be used for educational
13facilities.

14(B) Of the total amount paid each year pursuant to this section
15to community college districts, 47.5 percent shall be considered
16to be property taxes for the purposes of Sectionbegin delete 84750end deletebegin insert 84751end insert of
17the Education Code, and 52.5 percent shall not be considered to
18be property taxes for the purposes of that section, and shall be
19available to be used for educational facilities.

20(C) Of the total amount paid each year pursuant to this section
21to county offices of education, 19 percent shall be considered to
22be property taxes for the purposes of paragraph (1) of subdivision
23begin delete (h)end deletebegin insert (c)end insert of Sectionbegin delete 42238end deletebegin insert 2575end insert of the Education Code, and 81
24percent shall not be considered to be property taxes for the purposes
25of that section, and shall be available to be used for educational
26facilities.

27(D) Of the total amount paid each year pursuant to this section
28to special education, 19 percent shall be considered to be property
29taxes for the purposes of paragraph (1) of subdivisionbegin delete (h)end deletebegin insert (j)end insert of
30Sectionbegin delete 42238end deletebegin insert 42238.02end insert of the Education Code, and 81 percent
31shall not be considered to be property taxes for the purposes of
32that section, and shall be available to be used for educational
33facilities.

34(4) Local education agencies that use funds received pursuant
35to this section for educational facilities shall spend these funds at
36schools that are any one of the following:

37(A) Within the project area.

38(B) Attended by students from the project area.

39(C) Attended by students generated by projects that are assisted
40directly by the redevelopment agency.

P204  1(D) Determined by a local education agency to be of benefit to
2the project area.

3(b) Commencing with the first fiscal year in which the agency
4receives tax increments, and continuing through the last fiscal year
5in which the agency receives tax increments, a redevelopment
6agency created pursuant to this article shall pay to each affected
7school and community college district an amount equal to the
8product of 25 percent times the percentage share of total property
9taxes collected that are allocated to each affected school or
10community college district, including any amount allocated to each
11district pursuant to Sections 97.03 and 97.035 of the Revenue and
12Taxation Code times the total of the tax increments received by
13the agency after the amount required to be deposited in the Low
14and Moderate Income Housing Fund has been deducted.

15(c) Commencing with the 11th fiscal year in which the agency
16receives tax increments and continuing through the last fiscal year
17in which the agency receives tax increments, a redevelopment
18agency created pursuant to this article shall pay to each affected
19school and community college district, in addition to the amounts
20paid pursuant to subdivision (b), an amount equal to the product
21of 21 percent times the percentage share of total property taxes
22collected that are allocated to each affected school or community
23college district, including any amount allocated to each district
24pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
25Code times the total of the first adjusted tax increments received
26by the agency after the amount required to be deposited in the Low
27and Moderate Income Housing Fund has been deducted. The first
28adjusted tax increments received by the agency shall be calculated
29by applying the tax rate against the amount of assessed value by
30which the current year assessed value exceeds the first adjusted
31base year assessed value. The first adjusted base year assessed
32value is the assessed value of the project area in the 10th fiscal
33year in which the agency receives tax increment.

34(d) Commencing with the 31st fiscal year in which the agency
35receives tax increments and continuing through the last fiscal year
36in which the agency receives tax increments, a redevelopment
37agency shall pay to the affected school and community college
38districts, in addition to the amounts paid pursuant to subdivisions
39(b) and (c), an amount equal to 14 percent times the percentage
40share of total property taxes collected that are allocated to each
P205  1affected school or community college district, including any
2amount allocated to each district pursuant to Sections 97.03 and
397.035 of the Revenue and Taxation Code times the total of the
4second adjusted tax increments received by the agency after the
5amount required to be deposited in the Low and Moderate Income
6Housing Fund has been deducted. The second adjusted tax
7increments received by the agency shall be calculated by applying
8the tax rate against the amount of assessed value by which the
9current year assessed value exceeds the second adjusted base year
10assessed value. The second adjusted base year assessed value is
11the assessed value of the project area in the 30th fiscal year in
12which the agency receives tax increments.

13(e) (1) The Legislature finds and declares both of the following:

14(A) The payments made pursuant to this section are necessary
15in order to alleviate the financial burden and detriment that affected
16school and community college districts may incur as a result of
17the adoption of a redevelopment plan, and payments made pursuant
18to this section will benefit redevelopment project areas.

19(B) The payments made pursuant to this section are the exclusive
20payments that are required to be made by a redevelopment agency
21to affected school and community college districts during the term
22of a redevelopment plan.

23(2) Notwithstanding any other provision of law, a redevelopment
24agency shall not be required, either directly or indirectly, as a
25measure to mitigate a significant environmental effect or as part
26of any settlement agreement or judgment brought in any action to
27contest the validity of a redevelopment plan pursuant to Section
2833501, to make any other payments to affected school or
29community college districts, or to pay for public facilities that will
30be owned or leased to an affected school or community college
31district.

32(f) As used in this section, a “local education agency” includes
33a school district, a community college district, or a county office
34of education.

35begin insert

begin insertSEC. 111.end insert  

end insert

begin insertSection 33607.5 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert

37

33607.5.  

(a) (1) This section shall apply to each
38redevelopment project area that, pursuant to a redevelopment plan
39which contains the provisions required by Section 33670, is either:
40(A) adopted on or after January 1, 1994, including later
P206  1amendments to these redevelopment plans; or (B) adopted prior
2to January 1, 1994, but amended, after January 1, 1994, to include
3new territory. For plans amended after January 1, 1994, only the
4tax increments from territory added by the amendment shall be
5subject to this section. All the amounts calculated pursuant to this
6section shall be calculated after the amount required to be deposited
7in the Low and Moderate Income Housing Fund pursuant to
8Sections 33334.2, 33334.3, and 33334.6 has been deducted from
9the total amount of tax increment funds received by the agency in
10the applicable fiscal year.

11(2) The payments made pursuant to this section shall be in
12addition to any amounts the affected taxing entities receive
13pursuant to subdivision (a) of Section 33670. The payments made
14pursuant to this section to the affected taxing entities, including
15the community, shall be allocated among the affected taxing
16entities, including the community if the community elects to receive
17payments, in proportion to the percentage share of property taxes
18each affected taxing entity, including the community, receives
19during the fiscal year the funds are allocated, which percentage
20share shall be determined without regard to any amounts allocated
21to a city, a city and county, or a county pursuant to Sections 97.68
22and 97.70 of the Revenue and Taxation Code, and without regard
23to any allocation reductions to a city, a city and county, a county,
24a special district, or a redevelopment agency pursuant to Sections
2597.71, 97.72, and 97.73 of the Revenue and Taxation Code and
26Section 33681.12. The agency shall reduce its payments pursuant
27to this section to an affected taxing entity by any amount the agency
28has paid, directly or indirectly, pursuant to Section 33445, 33445.5,
2933445.6, 33446, or any other provision of law other than this
30section for, or in connection with, a public facility owned or leased
31by that affected taxing agency, except: (A)  any amounts the
32agency has paid directly or indirectly pursuant to an agreement
33with a taxing entity adopted prior to January 1, 1994; or (B)  any
34amounts that are unrelated to the specific project area or
35amendment governed by this section. The reduction in a payment
36by an agency to a school district, community college district, or
37county office of education, or for special education, shall be
38subtracted only from the amount that otherwise would be available
39for use by those entities for educational facilities pursuant to
40paragraph (4). If the amount of the reduction exceeds the amount
P207  1that otherwise would have been available for use for educational
2facilities in any one year, the agency shall reduce its payment in
3more than one year.

4(3) If an agency reduces its payment to a school district,
5community college district, or county office of education, or for
6special education, the agency shall do all of the following:

7(A) Determine the amount of the total payment that would have
8been made without the reduction.

9(B) Determine the amount of the total payment without the
10reduction which: (i) would have been considered property taxes;
11and (ii) would have been available to be used for educational
12facilities pursuant to paragraph (4).

13(C) Reduce the amount available to be used for educational
14facilities.

15(D) Send the payment to the school district, community college
16district, or county office of education, or for special education,
17with a statement that the payment is being reduced and including
18the calculation required by this subdivision showing the amount
19to be considered property taxes and the amount, if any, available
20for educational facilities.

21(4) (A) Except as specified in subparagraph (E), of the total
22amount paid each year pursuant to this section to school districts,
2343.3 percent shall be considered to be property taxes for the
24purposes of paragraph (1) of subdivision (h) of Section 42238 of
25the Education Code,begin insert as it read on January 1, 2013, and paragraph
26(1) of subdivision (j) of Section 42238.02 of the Education Code,end insert

27 and 56.7 percent shall not be considered to be property taxes for
28the purposes of that section and shall be available to be used for
29educational facilities, including, in the case of amounts paid during
30the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
31land acquisition, facility construction, reconstruction, remodeling,
32maintenance, or deferred maintenance.

33(B) Except as specified in subparagraph (E), of the total amount
34paid each year pursuant to this section to community college
35districts, 47.5 percent shall be considered to be property taxes for
36the purposes of Section 84751 of the Education Code, and 52.5
37percent shall not be considered to be property taxes for the purposes
38of that section and shall be available to be used for educational
39facilities, including, in the case of amounts paid during the 2011-12
40fiscal year through the 2015-16 fiscal year, inclusive, land
P208  1acquisition, facility construction, reconstruction, remodeling,
2maintenance, or deferred maintenance.

3(C) Except as specified in subparagraph (E), of the total amount
4paid each year pursuant to this section to county offices of
5education, 19 percent shall be considered to be property taxes for
6the purposes of Section 2558 of the Education Code,begin insert as it read on
7January 1, 2013, and Section 2575 of the Education Code,end insert
and 81
8percent shall not be considered to be property taxes for the purposes
9of that section and shall be available to be used for educational
10facilities, including, in the case of amounts paid during the 2011-12
11fiscal year through the 2015-16 fiscal year, inclusive, land
12acquisition, facility construction, reconstruction, remodeling,
13maintenance, or deferred maintenance.

14(D) Except as specified in subparagraph (E), of the total amount
15paid each year pursuant to this section for special education, 19
16percent shall be considered to be property taxes for the purposes
17of Section 56712 of the Education Code, and 81 percent shall not
18be considered to be property taxes for the purposes of that section
19and shall be available to be used for education facilities, including,
20in the case of amounts paid during the 2011-12 fiscal year through
21the 2015-16 fiscal year, inclusive, land acquisition, facility
22construction, reconstruction, remodeling, maintenance, or deferred
23maintenance.

24(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
25payments to an educational entity, the calculation made by the
26agency pursuant to paragraph (3) shall determine the amount
27considered to be property taxes and the amount available to be
28used for educational facilities in the year the reduction was made.

29(5) Local education agencies that use funds received pursuant
30to this section for school facilities shall spend these funds at schools
31that are: (A) within the project area, (B) attended by students from
32the project area, (C) attended by students generated by projects
33that are assisted directly by the redevelopment agency, or (D)
34determined by the governing board of a local education agency to
35be of benefit to the project area.

36(b) Commencing with the first fiscal year in which the agency
37receives tax increments and continuing through the last fiscal year
38in which the agency receives tax increments, a redevelopment
39agency shall pay to the affected taxing entities, including the
40community if the community elects to receive a payment, an
P209  1amount equal to 25 percent of the tax increments received by the
2agency after the amount required to be deposited in the Low and
3Moderate Income Housing Fund has been deducted. In any fiscal
4year in which the agency receives tax increments, the community
5that has adopted the redevelopment project area may elect to
6receive the amount authorized by this paragraph.

7(c) Commencing with the 11th fiscal year in which the agency
8receives tax increments and continuing through the last fiscal year
9in which the agency receives tax increments, a redevelopment
10agency shall pay to the affected taxing entities, other than the
11community which has adopted the project, in addition to the
12amounts paid pursuant to subdivision (b) and after deducting the
13amount allocated to the Low and Moderate Income Housing Fund,
14an amount equal to 21 percent of the portion of tax increments
15received by the agency, which shall be calculated by applying the
16tax rate against the amount of assessed value by which the current
17year assessed value exceeds the first adjusted base year assessed
18value. The first adjusted base year assessed value is the assessed
19value of the project area in the 10th fiscal year in which the agency
20receives tax increment revenues.

21(d) Commencing with the 31st fiscal year in which the agency
22receives tax increments and continuing through the last fiscal year
23in which the agency receives tax increments, a redevelopment
24agency shall pay to the affected taxing entities, other than the
25community which has adopted the project, in addition to the
26amounts paid pursuant to subdivisions (b) and (c) and after
27deducting the amount allocated to the Low and Moderate Income
28Housing Fund, an amount equal to 14 percent of the portion of tax
29increments received by the agency, which shall be calculated by
30applying the tax rate against the amount of assessed value by which
31the current year assessed value exceeds the second adjusted base
32year assessed value. The second adjusted base year assessed value
33is the assessed value of the project area in the 30th fiscal year in
34which the agency receives tax increments.

35(e) (1) Prior to incurring any loans, bonds, or other
36indebtedness, except loans or advances from the community, the
37agency may subordinate to the loans, bonds, or other indebtedness
38the amount required to be paid to an affected taxing entity by this
39section, provided that the affected taxing entity has approved these
40subordinations pursuant to this subdivision.

P210  1(2) At the time the agency requests an affected taxing entity to
2subordinate the amount to be paid to it, the agency shall provide
3the affected taxing entity with substantial evidence that sufficient
4funds will be available to pay both the debt service and the
5payments required by this section, when due.

6(3) Within 45 days after receipt of the agency’s request, the
7affected taxing entity shall approve or disapprove the request for
8subordination. An affected taxing entity may disapprove a request
9for subordination only if it finds, based upon substantial evidence,
10that the agency will not be able to pay the debt payments and the
11amount required to be paid to the affected taxing entity. If the
12affected taxing entity does not act within 45 days after receipt of
13the agency’s request, the request to subordinate shall be deemed
14approved and shall be final and conclusive.

15(f) (1) The Legislature finds and declares both of the following:

16(A) The payments made pursuant to this section are necessary
17in order to alleviate the financial burden and detriment that affected
18taxing entities may incur as a result of the adoption of a
19redevelopment plan, and payments made pursuant to this section
20will benefit redevelopment project areas.

21(B) The payments made pursuant to this section are the exclusive
22payments that are required to be made by a redevelopment agency
23to affected taxing entities during the term of a redevelopment plan.

24(2) Notwithstanding any other provision of law, a redevelopment
25agency shall not be required, either directly or indirectly, as a
26measure to mitigate a significant environmental effect or as part
27of any settlement agreement or judgment brought in any action to
28contest the validity of a redevelopment plan pursuant to Section
2933501, to make any other payments to affected taxing entities, or
30to pay for public facilities that will be owned or leased to an
31affected taxing entity.

32(g) As used in this section, a “local education agency” is a school
33district, a community college district, or a county office of
34education.

35begin insert

begin insertSEC. 112.end insert  

end insert

begin insertSection 33684 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert

37

33684.  

(a) (1) This section shall apply to each redevelopment
38project area that, pursuant to a redevelopment plan that contains
39the provisions required by Section 33670, meets any of the
40following:

P211  1(A) Was adopted on or after January 1, 1994, including later
2amendments to these redevelopment plans.

3(B) Was adopted prior to January 1, 1994, but amended after
4January 1, 1994, to include new territory. For plans amended after
5January 1, 1994, only the tax increments from territory added by
6the amendment shall be subject to this section.

7(C) Was adopted prior to January 1, 1994, but amended after
8January 1, 1994, to increase the limitation on the number of dollars
9to be allocated to the agency or that increased, or eliminated,
10pursuant to paragraph (1) of subdivision (e) of Section 33333.6,
11the time limit on the establishing of loans, advances, and
12 indebtedness established pursuant to paragraphs (1) and (2) of
13subdivision (a) of Section 33333.6, as those paragraphs read on
14December 31, 2001, or that lengthened the period during which
15the redevelopment plan is effective if the redevelopment plan being
16amended contains the provisions required by subdivision (b) of
17Section 33670.

18(2) This section shall apply to passthrough payments, as required
19by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
20inclusive, fiscal years. For purposes of this section, a passthrough
21payment shall be considered the responsibility of an agency in the
22fiscal year the agency receives the tax increment revenue for which
23the passthrough payment is required.

24(3) For purposes of this section, “local educational agency” is
25a school district, a community college district, or a county office
26of education.

27(b) On or before October 1, 2008, each agency shall submit a
28report to the county auditor and to each affected taxing entity that
29describes each project area, including its location, purpose, date
30established, date or dates amended, and statutory and contractual
31passthrough requirements. The report shall specify, by year, for
32each project area all of the following:

33(1) Gross tax increment received between July 1, 2003, and
34June 30, 2008, that is subject to a passthrough payment pursuant
35to Sections 33607.5 and 33607.7, and accumulated gross tax
36increments through June 30, 2003.

37(2) Total passthrough payments to each taxing entity that the
38agency deferred pursuant to a subordination agreement approved
39by the taxing agency under subdivision (e) of Section 33607.5 and
40the dates these deferred payments will be made.

P212  1(3) Total passthrough payments to each taxing entity that the
2agency was responsible to make between July 1, 2003, and June
330, 2008, pursuant to Sections 33607.5 and 33607.7, excluding
4payments identified in paragraph (2).

5(4) Total passthrough payments that the agency disbursed to
6each taxing entity between July 1, 2003, and June 30, 2008,
7pursuant to Sections 33607.5 and 33607.7.

8(5) Total sums reported in paragraph (4) for each local
9educational agency that are considered to be property taxes under
10the provisions of paragraph (4) of subdivision (a) of Section
1133607.5 and Section 33607.7.

12(6) Total outstanding payment obligations to each taxing entity
13as of June 30, 2008. This amount shall be calculated by subtracting
14the amounts reported in paragraph (4) from paragraph (3) and
15reporting any positive difference.

16(7) Total outstanding overpayments to each taxing entity as of
17June 30, 2008. This amount shall be calculated by subtracting the
18amounts reported in paragraph (3) from paragraph (4) and reporting
19any positive difference.

20(8) The dates on which the agency made payments identified
21in paragraph (6) or intends to make the payments identified in
22paragraph (6).

23(9) A revised estimate of the agency’s total outstanding
24passthrough payment obligation to each taxing agency pursuant
25to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
26(c) and the dates on which the agency intends to make these
27payments.

28(c) On or before October 1, 2009, each agency shall submit a
29report to the county auditor and to each affected taxing entity that
30describes each project area, including its location, purpose, date
31established, date or dates amended, and statutory and contractual
32passthrough requirements. The report shall specify, by year, for
33each project area all of the following:

34(1) Gross tax increment received between July 1, 2008, and
35June 30, 2009, that is subject to a passthrough payment pursuant
36to Sections 33607.5 and 33607.7.

37(2) Total passthrough payments to each taxing entity that the
38agency deferred pursuant to a subordination agreement approved
39by the taxing entity under subdivision (e) of Section 33607.5 and
40the dates these deferred payments will be made.

P213  1(3) Total passthrough payments to each taxing entity that the
2agency was responsible to make between July 1, 2008, and June
330, 2009, pursuant to Sections 33607.5 and 33607.7, excluding
4payments identified in paragraph (2).

5(4) Total passthrough payments that the agency disbursed to
6each taxing entity between July 1, 2008, and June 30, 2009,
7pursuant to Sections 33607.5 and 33607.7.

8(5) Total sums reported in paragraph (4) for each local
9educational agency that are considered to be property taxes under
10the provisions of paragraph (4) of subdivision (a) of Sections
1133607.5 and 33607.7.

12(6) Total outstanding payment obligations to each taxing entity
13as of June 30, 2009. This amount shall be calculated by subtracting
14the amounts reported in paragraph (4) from paragraph (3) and
15reporting any positive difference.

16(7) Total outstanding overpayments to each taxing entity as of
17June 30, 2009. This amount shall be calculated by subtracting the
18amounts reported in paragraph (3) from paragraph (4) and reporting
19any positive difference.

20(8) The dates on which the agency made payments identified
21in paragraph (6) or intends to make the payments identified in
22paragraph (6).

23(d) If an agency reports pursuant to paragraph (6) of subdivision
24(b) or paragraph (6) of subdivision (c) that it has an outstanding
25passthrough payment obligation to any taxing entity, the agency
26shall submit annual updates to the county auditor on October 1 of
27each year until such time as the county auditor notifies the agency
28in writing that the agency’s outstanding payment obligations have
29been fully satisfied. The report shall contain both of the following:

30(1) A list of payments to each taxing agency and to the
31Educational Revenue Augmentation Fund pursuant to subdivision
32(j) that the agency disbursed after the agency’s last update filed
33pursuant to this subdivision or, if no update has been filed, after
34the agency’s submission of the reports required pursuant to
35subdivisions (b) and (c). The list of payments shall include only
36those payments that address obligations identified pursuant to
37paragraph (6) of subdivision (b) and paragraph (6) of subdivision
38(c). The update shall specify the date on which each payment was
39disbursed.

P214  1(2) A revised estimate of the agency’s total outstanding
2passthrough payment obligation to each taxing agency pursuant
3to paragraph (6) of subdivision (b) and paragraph (6) of subdivision
4(c) and the dates on which the agency intends to make these
5payments.

6(e) The county auditor shall review each agency’s reports
7submitted pursuant to subdivisions (b) and (c) and any other
8relevant information to determine whether the county auditor
9concurs with the information included in the reports.

10(1) If the county auditor concurs with the information included
11in a report, the county auditor shall issue a finding of concurrence
12within 45 days.

13(2) If the county auditor does not concur with the information
14included in a report or considers the report to be incomplete, the
15county auditor shall return the report to the agency within 45 days
16with information identifying the elements of the report with which
17the county auditor does not concur or considers to be incomplete.
18The county auditor shall provide the agency at least 15 days to
19respond to concerns raised by the county auditor regarding the
20information contained in the report. An agency may revise a report
21that has not received a finding of concurrence and resubmit it to
22the county auditor.

23(3) If an agency and county auditor do not agree regarding the
24passthrough requirements of Sections 33607.5 and 33607.7, an
25agency may submit a report pursuant to subdivisions (b) and (c)
26and a statement of dispute identifying the issue needing resolution.

27(4) An agency may amend a report for which the county auditor
28has issued a finding of concurrence and resubmit the report
29pursuant to paragraphs (1), (2), and (3) if any of the following
30apply:

31(A) The county auditor and agency agree that an issue identified
32in the agency’s statement of dispute has been resolved and the
33agency proposes to modify the sections of the report to conform
34with the resolution of the statement of dispute.

35(B) The county auditor and agency agree that the amount of
36gross tax increment or the amount of a passthrough payment to a
37taxing entity included in the report is not accurate.

38(5) The Controller may revoke a finding of concurrence and
39direct the agency to resubmit a report to the county auditor pursuant
P215  1to paragraphs (1), (2), and (3) if the Controller finds significant
2errors in a report.

3(f) On or before December 15, 2008, and annually thereafter
4through 2014, the county auditor shall submit a report to the
5Controller that includes all of the following:

6(1) The name of each redevelopment project area in the county
7for which an agency must submit a report pursuant to subdivision
8(b) or (c) and information as to whether the county auditor has
9issued a finding of concurrence regarding the report.

10(2) A list of the agencies for which the county auditor has issued
11a finding of concurrence for all project areas identified in paragraph
12(1).

13(3) A list of agencies for which the county auditor has not issued
14a finding of concurrence for all project areas identified in paragraph
15(1).

16(4) Using information applicable to agencies listed in paragraph
17(2), the county auditor shall report all of the following:

18(A) The total sums reported by each redevelopment agency
19related to each taxing entity pursuant to paragraphs (1) to (7),
20inclusive, of subdivision (b) and, on or after December 15, 2009,
21pursuant to paragraphs (1) to (7), inclusive, of subdivision (c).

22(B) The names of agencies that have outstanding passthrough
23payment obligations to a local educational agency that exceed the
24amount of outstanding passthrough payments to the local
25educational agency.

26(C) Summary information regarding agencies’ stated plans to
27pay the outstanding amounts identified in paragraph (6) of
28subdivision (b) and paragraph (6) of subdivision (c) and the actual
29amou