BILL NUMBER: SB 859	CHAPTERED
	BILL TEXT

	CHAPTER  33
	FILED WITH SECRETARY OF STATE  JUNE 20, 2014
	APPROVED BY GOVERNOR  JUNE 20, 2014
	PASSED THE SENATE  JUNE 15, 2014
	PASSED THE ASSEMBLY  JUNE 15, 2014
	AMENDED IN ASSEMBLY  JUNE 12, 2014

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2014

   An act to amend Sections 2005, 2574, 2575, 2576, 2578, 37700,
37710.3, 37710.5, 37712, 41544, 42238.01, 42238.02, 42238.025,
42238.03, 42238.05, 42238.18, 42238.20, 42284, 42285, 46380, 46610,
47605.1, 47613, 47613.1, 47631, 47632, 47635, 47663, 48310, 48359.5,
52064, and 52070 of, to amend the heading of Chapter 7 (commencing
with Section 2000) of Part 2 of Division 1 of Title 1 of, to add
Sections 41376.1 and 42238.055 to, to repeal Sections 2002, 2003,
2004, 2009, 2554, 42238.53, 46611, and 47634.3 of, to repeal the
heading of Article 1 (commencing with Section 2000) of Chapter 7 of
Part 2 of Division 1 of Title 1 of, and to repeal and add Sections
46200.5 and 46201.5 of, the Education Code, relating to education
finance, and making an appropriation therefor, to take effect
immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 859, Committee on Budget and Fiscal Review. Education finance:
local control funding formula.
   (1) Existing law authorizes the county superintendent of any
county contiguous to an adjoining state to grant permission to pupils
residing in the county to attend elementary school or high school in
a school district of the adjoining state and to provide for the
transportation of the pupils to the school. Existing law requires the
county superintendent of schools to pay for the tuition and
transportation of these pupils from the county school tuition fund
and requires the Superintendent of Public Instruction to apportion an
amount to each county superintendent of schools sufficient to pay
for these expenditures.
   This bill would repeal the provisions requiring the county
superintendent of schools to pay for the tuition and transportation
of pupils attending school in a school district of an adjoining state
from the county school tuition fund and would require the
Superintendent to apportion an amount to each county superintendent
of schools sufficient to pay for the tuition and transportation of
those pupils for the 2014-15 fiscal year only. The bill would require
the attendance generated by a pupil who was granted permission by a
county superintendent of schools to attend school in an adjoining
state to be credited to the pupil's school district of residence.
   (2) Existing law establishes a public school system that requires
state funding for county superintendents of schools, school
districts, and charter schools to be calculated pursuant to a local
control funding formula, as specified. Existing law requires the
local control funding formula, in part, to be based upon the
percentage of unduplicated pupils enrolled in the school district or
charter school and defines unduplicated pupils to include, among
other pupils, pupils eligible for free or reduced-price meals, as
defined. Existing law requires the annual reporting of the enrollment
of unduplicated pupils, including pupils eligible for free and
reduced-price meals.
   This bill would authorize a school to establish a base year free
and reduced-price meal eligibility process, pursuant to which the
eligibility is determined for all enrolled pupils at least once every
4 years if the school participates in a specified federal
alternative that provides free meals to all enrolled pupils at a
school. The bill would require a school using this alternative to
maintain information on each student's income eligibility status and
to annually submit pupil data records showing each pupil's
eligibility for free or reduced-price meals. This bill would revise
the definition of foster youth, as specified.
    Existing law requires the Superintendent of Public Instruction to
calculate, for each county superintendent of schools, school
district, and charter school, a base entitlement for the transition
to the local control funding formula that includes, among other
things, the sum of the amounts of funding received from
appropriations contained in certain budget items of the Budget Act of
2012.
   The bill, commencing with the 2014-15 fiscal year, would require a
certain portion of the base entitlement for school districts and
charter schools to be adjusted to reflect the exclusion of one-time
redevelopment agency liquid asset recovery revenue. The bill would
require certain figures and calculations used in the local control
funding formula to be considered final, as of specified times, for
purposes of certain certifications made by the Superintendent. The
bill would, for the 2013-14 and 2014-15 fiscal years only, and for
purposes of assuring the continuity of essential induction and
training services for beginning teachers, require the Alameda County
Superintendent of Schools to withhold $581,540 from the local control
funding formula apportionments of the Newark Unified School
District, and to instead allocate those funds to the Alameda,
Berkeley, San Leandro, and San Lorenzo Unified School Districts, as
specified. The bill would state the findings and declarations of the
Legislature as to the necessity of a special law with respect to
these school districts. The bill would also make numerous changes to
conform existing provisions to the requirements of the local control
funding formula. The bill would require the Superintendent to compute
a reduction to a school district's local control funding formula if
the Superintendent of Public Instruction makes specified
determinations relating to class size.
   As part of the local control funding formula, existing law
provides a school district or charter school state-aid funding of no
less than the sum of certain amounts received in the 2012-13 fiscal
year, including, among other amounts, the 2012-13 fiscal year funding
allowance provided for qualifying necessary small elementary schools
and necessary small high schools. Existing law defines a necessary
small high school as either (1) a high school with an average daily
attendance of less than 287 pupils that meets specified conditions,
or (2) a high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.
   This bill would expand the definition of a necessary small high
school to include, until July 1, 2017, a high school maintained by a
county office of education for the exclusive purpose of educating
foster youth if certain requirements are satisfied, and a high school
maintained by a unified school district as the only comprehensive
high school if the high school has an average daily attendance of
less than 286 pupils and the school district has 50 or fewer pupils
per square mile of school district territory, as measured by the
number of pupils residing in the school district.
   (3) Existing law provides to a basic aid school district that was
entitled to a specified reimbursement because a court order directs
pupils to transfer to that school district as part of the
court-ordered voluntary pupil transfer program, for those transferred
pupils, either 70% of the school district local control funding
formula base grant, or 70% of certain entitlements, that would have
been apportioned to the school district from which the pupils were
transferred. Existing law provides to a basic aid school district
that is sponsoring a charter school for a pupil of the charter school
who resides in, and is otherwise eligible to attend, a school
district other than a basic aid school district, either 70% of the
school district local control funding formula base grant, or 70% of
certain entitlements, that would have been apportioned to the school
district that the pupil resides in and would otherwise have been
eligible to attend, as specified. Existing law authorizes the
governing board of any school district to accept interdistrict
transfers and provides to a school district of choice, as defined,
that is a basic aid school district for those pupils admitted by the
school district of choice either 70% of the school district local
control funding formula base grant, or 70% of certain entitlements,
that would have been apportioned to the school district of residence,
as specified. Existing law, the Open Enrollment Act, authorizes the
parent of a pupil enrolled in a low-achieving school, as defined, to
submit an application for the pupil to attend a school in a school
district of enrollment, as specified, and requires a school district
of enrollment that is a basic aid school district, to receive for
those pupils enrolled in the basic aid school district pursuant to
the Open Enrollment Act either 70% of the school district local
control funding formula base grant, or 70% of certain entitlements,
that would have been apportioned to the school district of residence,
as specified.
   This bill would, in all of the instances described above, provide
to the basic aid school district only 70% of the school district
local control funding formula base grant that would have been
apportioned to, (A) for a court-ordered voluntary pupil transfer
program, the school district from which the pupils transferred, (B)
for a charter school sponsored by a basic aid school district, the
school district that the pupil resides in and would otherwise have
been eligible to attend, and (C) for a school district of choice or
the Open Enrollment Act, the school district of residence, if the
entitlements for that school district include funding for necessary
small schools, as specified.
   (4) Existing law requires the Fallbrook Union High School District
to enter into an interdistrict attendance agreement with the
Capistrano Unified School District to allow up to 150 pupils, at the
request of each pupil's parent or guardian, to attend schools of the
Capistrano Unified School District when the pupils reside in the San
Onofre housing area of the Marine Corps Base, Camp Joseph H.
Pendleton, and requires the Fallbrook Union High School District to
pay tuition to the Capistrano Unified School District for the
attendance of these pupils only in the amount of the state
apportionments paid to the Fallbrook Union High School District for
the attendance of these pupils plus a specified amount. Existing law
requires the Superintendent of Public Instruction to apportion to the
Capistrano Unified School District a certain allowance for educating
secondary pupils attending the Capistrano Unified School District
pursuant to the interdistrict attendance agreement.
   This bill would repeal the requirement for the Superintendent to
apportion that allowance for educating secondary pupils attending the
Capistrano Unified School District pursuant to the interdistrict
attendance agreement and would require the amount of state
apportionments provided to the Fallbrook Union High School District
and the Capistrano Unified School District for the 2012-13 fiscal
year pursuant to these provisions to be included in certain
computations made for purposes of the local control funding formula.
   (5) Existing law requires a sponsoring local educational agency to
annually transfer to each of its charter schools funding in lieu of
property taxes, as specified, and provides that these requirements do
not apply for pupils who reside in, and are otherwise eligible to
attend a school in, a basic aid school district, but who attend a
charter school in a nonbasic aid school district. In regard to these
pupils, existing law requires the sponsoring basic aid school
district to transfer to the charter school a certain amount of funds,
as specified.
   This bill would authorize a county charter program school to seek
in lieu property tax reimbursement from a pupil's school district of
residence in certain instances, as specified.
   (6) Existing law, on or before July 1, 2014, requires the
governing board of each school district and each county board of
education to adopt a local control and accountability plan and
requires the governing board of each school district and each county
board of education to update its local control and accountability
plan before July 1 of each year. Existing law requires the charter of
a charter school to include a reasonably comprehensive description
of certain annual goals and the specific annual actions to achieve
those goals and requires the charter school to annually update those
goals and specific annual actions. Existing law requires the State
Board of Education to adopt templates for use by a local educational
agency in developing its local control accountability plan and by a
charter school in developing its annual goals and specific annual
actions to achieve those goals. Existing law requires the state board
to adopt the templates in accordance with the provisions of the
Administrative Procedure Act, and authorizes the board to adopt
emergency regulations for purposes of implementing those provisions.
   This bill would authorize an alternative procedure for the
adoption of the templates if certain requirements are met and would
deem the adoption of regulations for adopting the templates an
emergency and necessary for the immediate preservation of the public
peace, health, safety, or general welfare.
   (7) Existing law requires the county superintendent of schools to
approve a local control and accountability plan or annual update to a
local control and accountability plan for each school district
within the county, as specified. Existing law, if a county
superintendent of schools has jurisdiction over a single school
district, requires the Superintendent to designate a county
superintendent of schools of an adjoining county to perform these
duties.
    The bill would, if a county superintendent of schools has
jurisdiction over a single school district, require the
Superintendent to perform the duties of the county superintendent of
schools related to approval of a local control and accountability
plan or annual update to a local control and accountability plan.
   (8) This bill would require the State Board of Education, working
in collaboration with the State Department of Education, to report to
the Legislature no later than February 1, 2015, regarding the status
of implementation of the local control funding formula.
   (9) This bill would appropriate $4,747,914,000 from the General
Fund for the transition to the local control funding formula
calculation for the funding of elementary and secondary education.
   (10) Funds appropriated by this bill would be applied toward the
minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution.
   (11) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The heading of Chapter 7 (commencing with Section 2000)
of Part 2 of Division 1 of Title 1 of the Education Code is amended
to read:
      CHAPTER 7.  ATTENDANCE IN ADJOINING STATES


  SEC. 2.  The heading of Article 1 (commencing with Section 2000) of
Chapter 7 of Part 2 of Division 1 of Title 1 of the Education Code
is repealed.
  SEC. 3.  Section 2002 of the Education Code is repealed.
  SEC. 4.  Section 2003 of the Education Code is repealed.
  SEC. 5.  Section 2004 of the Education Code is repealed.
  SEC. 6.  Section 2005 of the Education Code is amended to read:
   2005.  The superintendent of schools of a school district, or the
principal of a school, in an adjoining state attended by pupils
residing in an adjoining county in this state shall certify to the
county superintendent of schools of the county not later than July
2nd of each year the average daily attendance of pupils from the
county attending the school.
  SEC. 7.  Section 2009 of the Education Code is repealed.
  SEC. 8.  Section 2554 of the Education Code is repealed.
  SEC. 9.  Section 2574 of the Education Code is amended to read:
   2574.  For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:
   (a) Compute a county office of education operations grant equal to
the sum of each of the following amounts:
   (1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).
   (2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which the
county superintendent of schools has jurisdiction pursuant to
Section 1253.
   (3) (A) Seventy dollars ($70) multiplied by the number of units of
countywide average daily attendance, up to a maximum of 30,000
units.
   (B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a maximum
of 60,000 units.
   (C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum of
140,000 units.
   (D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.
   (E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools authorized by
school districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.
   (4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:
   (1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.
   (B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years by
the sum of the total enrollment in those schools in the 2013-14 and
2014-15 fiscal years.
   (C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the current
fiscal year and the two prior fiscal years by the sum of the total
enrollment in those schools in the current fiscal year and the two
prior fiscal years.
   (D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a county
superintendent of schools' enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in the
2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.
   (ii) It is the intent of the Legislature to review each county
office of education's enrollment of unduplicated pupils for the
2013-14 and 2014-15 fiscal years and provide one-time funding, if
necessary, for a county office of education with higher enrollment of
unduplicated pupils in the 2014-15 fiscal year as compared to the
2013-14 fiscal year.
   (E) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2
and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.
   (F) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This subparagraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.
   (2) For purposes of this section, an "unduplicated pupil" is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:
   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
youth.
   (C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
   (3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil Achievement
Data System.
   (B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.
   (C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the county
office of education.
   (c) Compute an alternative education grant equal to the sum of the
following:
   (1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court school
base revenue limit calculated pursuant to Article 3 (commencing with
Section 2550) of Chapter 12, as that article read on January 1,
2013. For purposes of this subparagraph, the 2012-13 statewide
average juvenile court school base revenue limit shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) Commencing with the 2013-14 fiscal year, the per pupil base
grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (2) A supplemental grant equal to 35 percent of the base grant
described in paragraph (1) multiplied by the enrollment percentage
calculated in subdivision (b). The supplemental grant shall be
expended in accordance with the regulations adopted pursuant to
Section 42238.07.
   (3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:
   (i) The enrollment percentage calculated in subdivision (b) less
50 percent.
   (ii) Zero.
   (B) The concentration grant shall be expended in accordance with
the regulations adopted pursuant to Section 42238.07.
   (4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education, excluding
units of average daily attendance for pupils attending schools or
classes established pursuant to Article 2.5 (commencing with Section
48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are
enrolled pursuant to any of the following:
   (i) Probation-referred pursuant to Sections 300, 601, 602, and 654
of the Welfare and Institutions Code.
   (ii) On probation or parole and not in attendance in a school.
   (iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
   (B) Multiply the number of units of average daily attendance for
pupils attending schools or classes established pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted pursuant
to Section 42238.07.
   (C) Add the amounts calculated in subparagraphs (A) and (B).
   (d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).
   (e) Add all of the following to the amount calculated in
subdivision (d):
   (1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Targeted Instructional Improvement Block Grant program, as set
forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of
Part 24 of Division 3 of Title 2, as that article read on January 1,
2013.
   (2) (A) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Home-to-School Transportation program, as set forth in Article 2
(commencing with Section 39820) of Chapter 1 of Part 23.5 of
Division 3 of Title 2, Article 10 (commencing with Section 41850) of
Chapter 5 of Part 24 of Division 3 of Title 2, and the Small School
District Transportation program, as set forth in Article 4.5
(commencing with Section 42290) of Chapter 7 of Part 24 of Division 3
of Title 2, as those articles read on January 1, 2013.
   (B) On or before March 1, 2014, the Legislative Analyst's Office
shall submit recommendations to the fiscal committees of both houses
of the Legislature regarding revisions to the methods of funding
pupil transportation that address historical funding inequities
across county offices of education and school districts and improve
incentives for local educational agencies to provide efficient and
effective pupil transportation services.
   (3) The difference determined by subtracting the amount calculated
pursuant to paragraph (1) of subdivision (c) for pupils attending a
school that is eligible for funding pursuant to paragraph (2) of
subdivision (b) of Section 42285 from the amount of funding that is
provided to eligible schools pursuant to Section 42284, if the
difference is positive.
  SEC. 10.  Section 2575 of the Education Code is amended to read:
   2575.  (a) Commencing with the 2013-14 fiscal year and for each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the county local control funding
formula for each county superintendent of schools based on the sum of
the amounts computed pursuant to paragraphs (1) to (3), inclusive,
as adjusted pursuant to paragraph (4):
   (1) Revenue limits in the 2012-13 fiscal year pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that article read
on January 1, 2013, adjusted only for changes in average daily
attendance claimed by the county superintendent of schools for pupils
identified in clauses (i), (ii), and (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574 and for pupils
attending juvenile court schools. For purposes of this paragraph, the
calculation of an amount per unit of average daily attendance for
pupils attending juvenile court schools shall be considered final for
purposes of this section as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections 41332
and 41339. All other average daily attendance claimed by the county
superintendent of schools and any other average daily attendance used
for purposes of calculating revenue limits pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article read on
January 1, 2013, shall be considered final for purposes of this
section as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (2) The sum of all of the following:
   (A) The amount of funding received from appropriations contained
in Section 2.00 of the Budget Act of 2012, as adjusted by Section
12.42, in the following items: 6110-104-0001, 6110-105-0001,
6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001,
6110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001,
6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001,
6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-212-0001,
6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-240-0001,
6110-242-0001, 6110-243-0001, 6110-244-0001, 6110-245-0001,
6110-246-0001, 6110-247-0001, 6110-248-0001, 6110-260-0001,
6110-265-0001, 6110-266-0001, 6110-267-0001, 6110-268-0001, and
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4 of Title 2, as that chapter read on
January 1, 2013, and 2012-13 fiscal year funding for pupils enrolled
in community day schools who are mandatorily expelled pursuant to
subdivision (d) of Section 48915. For purposes of this subparagraph,
the 2012-13 fiscal year appropriations described in this subparagraph
shall be considered final as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections 41332
and 41339.
   (B) The amount of local revenues used to support a regional
occupational center or program established and maintained by a county
superintendent of schools pursuant to Section 52301.
   (3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the sum of the amounts apportioned to the county
superintendent of schools pursuant to subdivision (f) in all prior
years.
   (4) The revenue limit amount determined pursuant to paragraph (1)
shall be increased by the difference determined by subtracting the
amount provided per unit of average daily attendance in paragraph (1)
for pupils attending a school that is eligible for funding pursuant
to paragraph (2) of subdivision (b) of Section 42285 from the amount
of funding that was provided to eligible schools in the 2012-13
fiscal year pursuant to Sections 42284 and 42238.146, as those
sections read on January 1, 2013.
   (b) The Superintendent shall annually compute a county local
control funding formula transition adjustment for each county
superintendent of schools as follows:
   (1) Subtract the amount computed pursuant to subdivision (a) from
the amount computed pursuant to subdivision (e) of Section 2574. A
difference of less than zero shall be deemed to be zero.
   (2) Divide the difference for each county superintendent of
schools calculated pursuant to paragraph (1) by the total sum of the
differences for all county superintendents of schools calculated
pursuant to paragraph (1).
   (3) Multiply the proportion calculated for each county
superintendent of schools pursuant to paragraph (2) by the amount of
funding specifically appropriated for purposes of subdivision (f).
The amount calculated shall not exceed the difference for the county
superintendent of schools calculated pursuant to paragraph (1).
   (c) The Superintendent shall subtract from the amount calculated
pursuant to subdivision (a) the sum of each of the following:
   (1) Local property tax revenues received pursuant to Section 2573
in the then current fiscal year.
   (2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.
   (3) The amount received pursuant to subparagraph (C) of paragraph
(3) of subdivision (a) of Section 33607.5 of the Health and Safety
Code that is considered property taxes pursuant to that section.
   (4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (5) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
   (d) The Superintendent shall subtract from the amount computed
pursuant to subdivision (e) of Section 2574 the sum of the amounts
computed pursuant to paragraphs (1) to (5), inclusive, of subdivision
(c).
   (e) The Superintendent shall annually apportion to each county
superintendent of schools the amount calculated pursuant to
subdivision (c) unless the amount computed pursuant to subdivision
(c) is negative. If the amount computed is negative, except as
provided in subdivision (f), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during the fiscal
year. In the following fiscal year, that amount, excluding any
amount of funds used for purposes of subdivision (f), shall be
considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578. State aid shall not be apportioned
to the county superintendent of schools pursuant to this subdivision
if the amount computed pursuant to subdivision (c) is negative.
   (f) (1) The Superintendent shall apportion, from an appropriation
specifically made for this purpose, the amount computed pursuant to
subdivision (b), or, if the amount computed pursuant to subdivision
(c) is negative, the sum of the amounts computed pursuant to
subdivisions (b) and (c) if the sum if greater than zero.
   (2) The Superintendent shall apportion any portion of the
appropriation made for purposes of paragraph (1) that is not
apportioned pursuant to paragraph (1) pursuant to the following
calculation:
   (A) Add the amount calculated pursuant to subdivision (b) to the
amount computed pursuant to subdivision (a) for a county
superintendent of schools.
   (B) Subtract the amount computed pursuant to subparagraph (A) from
the amount computed pursuant to subdivision (e) of Section 2574 for
the county superintendent of schools.
   (C) Divide the difference for the county superintendent of schools
computed pursuant to subparagraph (B) by the sum of the differences
for all county superintendents of schools computed pursuant to
subparagraph (B).
   (D) Multiply the proportion computed pursuant to subparagraph (C)
by the unapportioned balance in the appropriation. That product shall
be the county superintendent of schools' proportion of total need.
   (E) Apportion to each county superintendent of schools the amount
calculated pursuant to subparagraph (D), or if subdivision (c) is
negative, apportion the sums of subdivisions (b) and (c) and
subparagraph (D) of this subdivision if the sum is greater than zero.

   (F) The Superintendent shall repeat the computation made pursuant
to this paragraph, accounting for any additional amounts apportioned
after each computation, until the appropriation made for purposes of
paragraph (1) is fully apportioned.
   (G) The total amount apportioned pursuant to this subdivision to a
county superintendent of schools shall not exceed the difference for
the county superintendent of schools calculated pursuant to
paragraph (1) of subdivision (b).
   (H) For purposes of this paragraph, the proportion of need that is
funded from any appropriation made specifically for purposes of this
subdivision in the then current fiscal year shall be considered
fixed as of the second principal apportionment for that fiscal year.
Adjustments to a county superintendent of schools' total need
computed pursuant to subparagraph (D) after the second principal
apportionment for the then current fiscal year shall be funded based
on the fixed proportion of need that is funded for that fiscal year
pursuant to this subdivision, and shall be continuously appropriated
pursuant to Section 14002.
   (g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is less than the amount computed pursuant to subdivision (d), in the
first fiscal year following the fiscal year in which the sum of the
apportionments computed pursuant to subdivisions (e) and (f) is equal
to, or greater than, the amount computed pursuant to subdivision (d)
of this section, the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d) in
that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).
   (2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is greater than the amount computed pursuant to subdivision (d), in
the first fiscal year in which the amount computed pursuant to
subdivision (c) would be less than the amount computed pursuant to
subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d) in
that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).
   (3) In each fiscal year, the Superintendent shall determine the
percentage of county superintendents of schools that are apportioned
funding that is less than the amount computed pursuant to subdivision
(d), as of the second principal apportionment of the fiscal year. If
the percentage is less than 10 percent, the Superintendent shall
apportion to those county superintendents of schools funding equal to
the amount computed in subdivision (d) in that fiscal year and for
each fiscal year thereafter instead of the amounts calculated
pursuant to subdivisions (e) and (f).
   (4) Commencing with the first fiscal year after the apportionments
in paragraph (3) are made, the adjustments in paragraph (4) of
subdivision (a) of Section 2574 and subparagraph (B) of paragraph (1)
of subdivision (c) of Section 2574 shall be made only if an
appropriation for those purposes is included in the annual Budget
Act.
   (5) If the calculation pursuant to subdivision (d) is negative and
the Superintendent apportions to a county superintendent of schools
the amount computed pursuant to subdivision (d) pursuant to paragraph
(1), (2), or (3) of this subdivision, an amount of property tax of
the county superintendent of schools equal to the negative amount
shall be deemed restricted and not available for expenditure during
that fiscal year. In the following fiscal year the restricted amount
shall be considered restricted local property tax revenue for
purposes of subdivision (a) of Section 2578.
   (h) Commencing with the 2013-14 fiscal year, the Superintendent
shall apportion to a county superintendent of schools an amount of
state aid, including any amount apportioned pursuant to subdivisions
(f) and (g), that is no less than the amount calculated in
subparagraph (A) of paragraph (2) of subdivision (a).
   (i) (1) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
regional occupational center
           or program joint powers agency established in accordance
with Article 1 (commencing with Section 6500) of Chapter 5 of
Division 7 of Title 1 of the Government Code for purposes of
providing instruction to pupils enrolled in grades 9 to 12,
inclusive, shall not redirect that funding for another purpose unless
otherwise authorized by law or pursuant to an agreement between the
regional occupational center or program joint powers agency and the
contracting county superintendent of schools.
   (2) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing instruction to pupils enrolled in grades 9 to 12,
inclusive, received, in the 2012-13 fiscal year, an apportionment of
funds directly from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.
   (j) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation shall not redirect that funding for
another purpose unless otherwise authorized by law or pursuant to an
agreement between the home-to-school transportation joint powers
agency and the contracting county superintendent of schools.
   (k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school transportation
programs, the county superintendent of schools shall expend, pursuant
to Article 2 (commencing with Section 39820) of Chapter 1 of Part
23.5 of Division 3 of Title 2, Article 10 (commencing with Section
41850) of Chapter 5 of Part 24 of Division 3 of Title 2, and the
Small School District Transportation program, as set forth in Article
4.5 (commencing with Section 42290) of Chapter 7 of Part 24 of
Division 3 of Title 2, no less for those programs than the amount of
funds the county superintendent of schools expended for
home-to-school transportation in the 2012-13 fiscal year.
   (2) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation received, in the 2012-13 fiscal year,
an apportionment of funds directly from the Superintendent from any
of the funding sources identified in subparagraph (A) of paragraph
(2) of subdivision (a), the Superintendent shall apportion that same
amount to the home-to-school transportation joint powers agency.
   (3) For the 2013-14 and 2014-15 fiscal years only, of the funds a
county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a county superintendent of
schools may include expenditures made by a school district within the
county for purposes of regional occupational centers or programs so
long as the total amount of expenditures made by the school districts
and the county superintendent of schools equals or exceeds the total
amount required to be expended for purposes of regional occupational
centers or programs pursuant to this paragraph and paragraph (7) of
subdivision (a) of Section 42238.03.
   (l) The funds apportioned pursuant to this section and Section
2574 shall be available to implement the activities required pursuant
to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of
Part 28 of Division 4 of Title 2.
  SEC. 11.  Section 2576 of the Education Code is amended to read:
   2576.  (a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil not
funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574, or Article 2.5
(commencing with Section 48645) of Chapter 4 of Part 27 of Division 4
of Title 2, any attendance generated by that pupil shall be credited
to the school district of residence. Enrollment of these pupils
shall be transferred to the school district of residence for purposes
of calculating the percentage of unduplicated pupils pursuant to
Section 42238.02.
   (b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, enrolled in a
school operated by a county superintendent of schools shall be deemed
to be the school district that last provided educational services to
the homeless child or, if it is not possible to determine that
school district, the nonbasic aid school district with the largest
average daily attendance in the county that serves the grade level in
which the homeless child would be enrolled.
   (c) If a county superintendent of schools grants permission to a
pupil to attend school in an adjoining state pursuant to Section
2000, attendance generated by that pupil shall be credited to the
school district of residence.
  SEC. 12.  Section 2578 of the Education Code is amended to read:
   2578.  (a) Every fiscal year the Superintendent shall determine
the amount of funds that will be restricted for each county
superintendent of schools pursuant to subdivisions (e) and (g) of
Section 2575, as of June 30 of the prior fiscal year.
   (b) The auditor-controller of each county shall distribute the
amounts determined in subdivision (a) to the Supplemental Revenue
Augmentation Fund created within the county pursuant to Section
100.06 of the Revenue and Taxation Code. The amount of funds required
to be transferred by this subdivision shall be transferred annually
in two equal shares with the first share transferred on or before
January 15 of each year and the second share transferred after
January 15 and on or before May 1 of each year.
   (c) The funds transferred to the Supplemental Revenue Augmentation
Fund pursuant to this section shall be transferred by the county
office of education to the Controller in amounts determined by the
Director of Finance, and shall be exclusively used to offset state
costs of providing trial court services and costs, until the funds
are exhausted.
  SEC. 13.  Section 37700 of the Education Code is amended to read:
   37700.  (a) Notwithstanding any other law, the Pacific Unified
School District, the Leggett Valley Unified School District, and the
Reeds Creek Elementary School District may operate one or more
schools in their respective school districts on a four-day school
week, if the school district complies with the instructional time
requirements specified in Section 37701 and the other requirements of
this chapter.
   (b) If a school district operates one or more schools on a
four-day week pursuant to this section and the program for the school
year provides less than the 180 days of instruction required under
Section 46200, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula grant apportionment
pursuant to Section 42238.02, as implemented pursuant to Section
42238.03, for the average daily attendance of each affected grade
level, by 0.0056 multiplied by that apportionment for each day less
than what was required by subdivision (a) of this section, as this
section read on January 1, 2013, up to a maximum of five days. If a
school district operates one or more schools on a four-day school
week pursuant to this section and the program provides less than the
minimum instructional minutes required under Section 46201, as it
read on January 1, 2013, the Superintendent shall reduce the local
control funding formula grant apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, for the
average daily attendance of each affected grade level, by the amount
of that apportionment multiplied by the percentage of the minimum
required minutes at that grade level that the school district failed
to offer.
   (c) A school district with an exclusive bargaining representative
may operate a school on a four-day school week pursuant to this
section only if the school district and the representative of each
bargaining unit of school district employees mutually agree to that
operation in a memorandum of understanding.
   (d) Notwithstanding subdivisions (a), (b), and (c), upon a
determination that a school district identified in subdivision (a)
equals or exceeds its local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b) of
Section 42238.03, the school district, as a condition of
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, shall offer 180 days or more of instruction per
school year, and meet the minimum minute requirements pursuant to
paragraph (1) of subdivision (a) of Section 46207.
  SEC. 14.  Section 37710.3 of the Education Code is amended to read:

   37710.3.  (a) Beginning in the 2010-11 fiscal year, the Alpaugh
Unified School District may operate one or more schools in the school
district on a four-day school week if the school district complies
with the instructional time requirements in Section 37701 and the
other requirements of this chapter. The state board may waive
five-consecutive-day operating requirements for any of the following
programs that operate on a four-day school week pursuant to this
section, provided that the school district meets the minimum time
requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program for
the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula grant
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, for the average daily attendance of each
affected grade level, by 0.0056 multiplied by that apportionment for
each day less than what was required in subdivision (a) of this
section, as this section read on January 1, 2013, up to a maximum of
five days. If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program
provides fewer than the minimum instructional minutes required under
Section 46201, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula grant apportionment
pursuant to Section 42238.02, as implemented by Section 42238.03, for
the average daily attendance of each affected grade level, by the
amount of that apportionment multiplied by the percentage of the
minimum required minutes at that grade level that the school district
failed to offer.
   (c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid California Assessment of Student Performance
and Progress test scores operating on a four-day school week fails to
achieve its Academic Performance Index growth target pursuant to
Section 52052 for two consecutive years, the authority of that school
to operate on a four-day school week shall be permanently revoked
commencing with the school year following the second consecutive year
the school failed to achieve its Academic Performance Index growth
rate.
   (d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2015. The report shall include, but not necessarily be
limited to, information on all of the following:
   (1) Programs the school district offered on the fifth schoolday
and their participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the state board waived minimum time and
five-consecutive-day requirements and the operational and educational
effects of the programs if they operated at less time than required.

   (5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in session.
   (6) Information on the Academic Performance Index, pursuant to
Section 52052, for every year a school in the school district
operated on a four-day school week. The information shall include,
but not necessarily be limited to, the base and growth Academic
Performance Index of each school that operated on a four-day school
week and whether that school met the Academic Performance growth
targets.
   (e) Notwithstanding subdivisions (a) to (d), inclusive, upon a
determination that the school district identified in subdivision (a)
equals or exceeds its local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b) of
Section 42238.03, the school district, as a condition of
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, shall offer 180 days or more of instruction per
school year, and meet the minimum minute requirements pursuant to
paragraph (1) of subdivision (a) of Section 46207.
   (f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 15.  Section 37710.5 of the Education Code is amended to read:

   37710.5.  (a) Beginning in the 2009-10 fiscal year, the Potter
Valley Community Unified School District may operate one or more
schools in the school district on a four-day school week if the
school district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter. The state board may waive five-consecutive-day operating
requirements for any of the following programs that operate on a
four-day week pursuant to this section, provided that the school
district meets the minimum time requirement for each program:
   (1) Preschools.
   (2) Before and after school programs.
   (3) Independent study programs.
   (4) Child nutrition and food service programs.
   (5) Community day schools.
   (6) Regional occupational centers or programs.
   (7) Continuation high schools.
   (b) If the school district operates one or more schools on a
four-day week pursuant to this section, and the program for the
school year provides fewer than the 180 days of instruction required
under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula grant
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, for the average daily attendance of each
affected grade level, by 0.0056 multiplied by that apportionment for
each day less than what was required in subdivision (a) of this
section, as this section read on January 1, 2013, up to a maximum of
five days. If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program
provides fewer than the minimum instructional minutes required under
Section 46201, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula grant apportionment
pursuant to Section 42238.02, as implemented by Section 42238.03, for
the average daily attendance of each affected grade level, by the
amount of that apportionment multiplied by the percentage of the
minimum required minutes at that grade level that the school district
failed to offer.
   (c) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education and the Assembly Committee on Education on January 15,
2014. The report shall include, but not necessarily be limited to,
information on the following:
   (1) Programs the school district offered on the fifth day and
their participation rates.
   (2) Whether the four-day school week schedule resulted in any
fiscal savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the Superintendent waived minimum time and
five-consecutive-day requirements and the operational and educational
effect of the programs if they operated at less time than required.
   (d) Notwithstanding subdivisions (a), (b), and (c), upon a
determination that the school district identified in subdivision (a)
equals or exceeds its local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b) of
Section 42238.03, the school district, as a condition of
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, shall offer 180 days or more of instruction per
school year, and meet the minimum minute requirements pursuant to
paragraph (1) of subdivision (a) of Section 46207.
   (e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
  SEC. 16.  Section 37712 of the Education Code is amended to read:
   37712.  (a) Beginning in the 2013-14 fiscal year, the Moorpark
Unified School District may operate one or more high schools offering
a middle college program in the school district on a four-day school
week, if the school district complies with the instructional time
requirements specified in Section 37701 and the other requirements of
this chapter. The state board may waive the five-consecutive-day
operating requirements for a middle college program that operates on
a four-day school week pursuant to this section, provided that the
school district meets the minimum time requirement for the middle
college program.
   (b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program for
the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula grant
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, for the average daily attendance of each
affected grade level, by 0.0056 multiplied by that apportionment for
each day less than what was required in subdivision (a) of this
section, as this section read on January 1, 2013, up to a maximum of
five days. If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program
provides fewer than the minimum instructional minutes required under
Section 46201, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding grant apportionment pursuant
to Section 42238.02, as implemented by Section 42238.03, for the
average daily attendance of each affected grade level, by the amount
of that apportionment multiplied by the percentage of the minimum
required minutes at that grade level that the school district failed
to offer.
   (c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid California Assessment of Student Performance
and Progress test scores operating on a four-day school week fails to
achieve its Academic Performance Index growth target pursuant to
Section 52052 for two consecutive years, the authority of that school
to operate on a four-day school week shall be permanently revoked
commencing with the school year following the second consecutive year
the school failed to achieve its Academic Performance Index growth
rate.
   (d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2018. The report shall include, but not necessarily be
limited to, information on all of the following:
   (1) Programs the school district offered on the fifth schoolday
and their participation rates.
   (2) If the four-day school week schedule resulted in fiscal
savings.
   (3) Impact on overall attendance of the schools operating a
four-day school week.
   (4) Programs for which the state board waived minimum time and
five-consecutive-day requirements and the operational and educational
effects of the programs if they operated at less time than required.

   (5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in session.
   (6) Information on the Academic Performance Index, pursuant to
Section 52052, for every year a school in the school district
operated on a four-day school week. The information shall include,
but not necessarily be limited to, the base and growth Academic
Performance Index of each school that operated on a four-day school
week and whether that school met the Academic Performance Index
growth targets.
   (7) Specific outcomes for pupils attending a school operating on a
four-day school week including, but not limited to, attendance
rates, graduation rates, college entrance and attendance rates, and
employment rates of pupils who do not attend college.
   (e) The Moorpark Unified School District operating one or more
schools on a four-day school week pursuant to this section may claim
a day of attendance for the pupils enrolled in a school operating on
a four-day school week pursuant to Sections 11300, 11301, and
46146.5.
   (f) Notwithstanding subdivisions (a) to (e), inclusive, upon a
determination that the school district identified in subdivision (a)
equals or exceeds its local control funding formula target computed
pursuant to Section 42238.02, as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b) of
Section 42238.03, the school district, as a condition of
apportionment pursuant to Section 42238.02, as implemented pursuant
to Section 42238.03, shall offer 180 days or more of instruction per
year, and shall meet the minimum minute requirements pursuant to
paragraph (4) of subdivision (a) of Section 46207.
   (g) This section shall become inoperative on June 30, 2018, and,
as of January 1, 2019, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2019, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 17.  Section 41376.1 is added to the Education Code, to read:
   41376.1.  (a) Commencing with the 2013-14 fiscal year, until the
Superintendent determines that a school district is funded pursuant
to Section 42238.02 in the prior fiscal year, and notwithstanding the
requirement to decrease average daily attendance pursuant to
subdivisions (d), (e), and (f) of Section 41376 and subdivision (e)
of Section 41378, the Superintendent shall compute a reduction to the
school district local control funding formula entitlement pursuant
to Section 42238.02, as implemented by Section 42238.03, for the
specified school year by the sum of the following:
   (1) (A) Multiply the sum of the products obtained in subdivision
(e) of Section 41378 and subdivision (d) of Section 41376 by the
grade span adjusted base grant specified in subparagraph (A) of
paragraph (1) of subdivision (d) of Section 42238.02, as annually
adjusted for cost of living pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.
   (B) Multiply the product obtained in subparagraph (A) by the sum
of the entitlements computed pursuant to paragraphs (1) to (4),
inclusive, of subdivision (a) of Section 42238.03 and paragraph (3)
of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.
   (2) (A) Multiply the product obtained pursuant to subdivision (e)
of Section 41376 by the funded average daily attendance for grades 4
to 6, inclusive, reported by the school district pursuant to Section
42238.05 for the specified school year divided by the funded average
daily attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 42238.05 for the specified school year.

   (B) Multiply the product obtained in subparagraph (A) by the grade
span adjusted base grant specified in subparagraph (B) of paragraph
(1) of subdivision (d) of Section 42238.02, as annually adjusted for
cost of living pursuant to paragraph (2) of subdivision (d) of
Section 42238.02.
   (C) Multiply the product obtained in subparagraph (B) by the sum
of the entitlements computed pursuant to paragraphs (1) to (4),
inclusive, of subdivision (a) of Section 42238.03 and paragraph (3)
of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.
   (3) (A) Multiply the product obtained pursuant to subdivision (e)
of Section 41376 by the funded average daily attendance for grades 7
and 8 reported by the school district pursuant to Section 42238.05
for the specified school year divided by the funded average daily
attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 42238.05 for the specified school year.
   (B) Multiply the product obtained in subparagraph (A) by the grade
span adjusted base grant specified in subparagraph (C) of paragraph
(1) of subdivision (d) of Section
       42238.02, as annually adjusted for cost of living pursuant to
paragraph (2) of subdivision (d) of Section 42238.02.
   (C) Multiply the product obtained in subparagraph (B) by the sum
of the entitlements computed pursuant to paragraphs (1) to (4),
inclusive, of subdivision (a) of Section 42238.03 and paragraph (3)
of subdivision (b) of Section 42238.03 for all school districts,
divided by the sum of the local control funding formula entitlements
computed pursuant to Section 42238.02 for all school districts.
   (b) Commencing with the 2013-14 fiscal year, if the Superintendent
determines that a school district is funded pursuant to Section
42238.02 in the prior fiscal year, and notwithstanding the
requirement to decrease average daily attendance pursuant to
subdivisions (d), (e), and (f) of Section 41376 and subdivision (e)
of Section 41378, the Superintendent shall compute a reduction to the
school district local control funding formula entitlement pursuant
to Section 42238.02 for the specified school year by the sum of the
following:
   (1) Multiply the sum of the products obtained in subdivision (e)
of Section 41378 and subdivision (d) of Section 41376 by the grade
span adjusted base grant specified in subparagraph (A) of paragraph
(1) of subdivision (d) of Section 42238.02, as annually adjusted for
cost of living pursuant to paragraph (2) of subdivision (d) of
Section 42238.02.
   (2) (A) Multiply the product obtained pursuant to subdivision (e)
of Section 41376 by the funded average daily attendance for grades 4
to 6, inclusive, reported by the school district pursuant to Section
42238.05 for the specified school year divided by the funded average
daily attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 42238.05 for the specified school year.

   (B) Multiply the product obtained in subparagraph (A) by the grade
span adjusted base grant specified in subparagraph (B) of paragraph
(1) of subdivision (d) of Section 42238.02, as annually adjusted for
cost of living pursuant to paragraph (2) of subdivision (d) of
Section 42238.02.
   (3) (A) Multiply the product obtained pursuant to subdivision (e)
of Section 41376 by the funded average daily attendance for grades 7
and 8 reported by the school district pursuant to Section 42238.05
for the specified school year divided by the funded average daily
attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 42238.05 for the specified school year.
   (B) Multiply the product obtained in subparagraph (A) by the grade
span adjusted base grant specified in subparagraph (C) of paragraph
(1) of subdivision (d) of Section 42238.02, as annually adjusted for
cost of living pursuant to paragraph (2) of subdivision (d) of
Section 42238.02.
  SEC. 18.  Section 41544 of the Education Code is amended to read:
   41544.  (a) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read on
January 1, 2001, and that received an apportionment pursuant to
subdivision (h) of Section 42247.4, as that section read on January
1, 2001, because a court order directs pupils to transfer to that
school district as part of the court-ordered voluntary pupil transfer
program, the Superintendent, from the 2001-02 fiscal year to the
2012-13 fiscal year, inclusive, shall calculate an apportionment of
state funds for that basic aid school district that provides 70
percent of the school district revenue limit calculated pursuant to
Section 42238, as that section read on January 1, 2013, that would
have been apportioned to the school district from which the pupils
were transferred for the average daily attendance of any pupils
credited under that court order who did not attend the basic aid
school district before the 1995-96 fiscal year.
   (b) (1) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read on
January 1, 2001, and that received an apportionment pursuant to
subdivision (h) of Section 42247.4, as that section read on January
1, 2001, because a court order directs pupils to transfer to that
school district as part of the court-ordered voluntary pupil transfer
program, the Superintendent, commencing with the 2013-14 fiscal
year, shall calculate an apportionment of state funds for that basic
aid school district that provides 70 percent of the school district
local control funding formula base grant calculated pursuant to
subdivision (d) of Section 42238.02, as implemented by Section
42238.03, that would have been apportioned to the school district
from which the pupils were transferred for the average daily
attendance of any pupils credited under that court order who did not
attend the basic aid school district before the 1995-96 fiscal year.
   (2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district from which the pupil or pupils
were transferred is funded pursuant to Section 42238.02 in the prior
fiscal year, the Superintendent shall apportion, for average daily
attendance credited pursuant to paragraph (1), 70 percent of the sum
of the entitlements for the school district from which the pupil or
pupils were transferred for the specified fiscal year as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a), and
paragraph (3) of subdivision (b), of Section 42238.03, divided by
the average daily attendance of that school district for that fiscal
year and then multiplied by the ratio of local control formula base
grant funding computed pursuant to subdivision (d) of Section
42238.02 to the local control funding formula amount for that fiscal
year computed pursuant to Section 42238.02.
   (3) If the entitlements for the school district from which the
pupil or pupils were transferred computed pursuant to paragraphs (1)
to (4), inclusive, of subdivision (a), and paragraph (3) of
subdivision (b), of Section 42238.03, include funding calculated
pursuant to Article 4 (commencing with Section 42280) of Chapter 7
for a fiscal year, paragraph (2) shall not apply and the
apportionment of state funds for the average daily attendance
credited pursuant to this section for that fiscal year shall be
calculated pursuant to paragraph (1).
   (c) For purposes of subdivision (b) of this section, "basic aid
school district" means a school district that does not receive from
the state, for any fiscal year in which this section is applied, an
apportionment of state funds pursuant to subdivision (o) of Section
42238.02.
  SEC. 19.  Section 42238.01 of the Education Code is amended to
read:
   42238.01.  For purposes of Section 42238.02, the following
definitions shall apply:
   (a) "Eligible for free or reduced-price meals" means determined to
meet federal income eligibility criteria or deemed to be
categorically eligible for free or reduced-price meals under the
National School Lunch Program, as described in Part 245 of Title 7 of
the Code of Federal Regulations. A school participating in a special
assistance alternative authorized by Section 11(a)(1) of the Richard
B. Russell National School Lunch Act (Public Law 113-79), including
Provision 2, Provision 3, or the Community Eligibility Option, may
establish a base year for purposes of the local control funding
formula by collecting household income data to determine whether a
student meets free and reduced-price meal income eligibility criteria
at least once every four years, if the school determines free and
reduced-price meal eligibility for each new enrolled or disenrolled
pupil between base year eligibility determination collections. A
school that uses the special assistance alternative shall maintain
information on each student's income eligibility status and annually
submit information on that status in the California Longitudinal
Pupil Achievement Data System pursuant to paragraph (2) of
subdivision (b) of Section 42238.02 or subparagraph (A) of paragraph
(3) of subdivision (b) of Section 2574, as applicable. To the extent
permitted by federal law, a school may choose to establish a new base
year for purposes of the National School Lunch Program at the same
time the school establishes a new base year for purposes of the local
control funding formula. A school may use National School Lunch
Program application forms to collect household income data as
permitted under the National School Lunch Program. If the use of
National School Lunch Program application forms is not permitted, a
school shall use alternative income data collection forms.
   (b) "Foster youth" means any of the following:
   (1) A child who is the subject of a petition filed pursuant to
Section 300 of the Welfare and Institutions Code, whether or not the
child has been removed from his or her home by the juvenile court
pursuant to Section 319 or 361 of the Welfare and Institutions Code.
   (2) A child who is the subject of a petition filed pursuant to
Section 602 of the Welfare and Institutions Code, has been removed
from his or her home by the juvenile court pursuant to Section 727 of
the Welfare and Institutions Code, and is in foster care as defined
by subdivision (d) of Section 727.4 of the Welfare and Institutions
Code.
   (3) A nonminor under the transition jurisdiction of the juvenile
court, as described in Section 450 of the Welfare and Institutions
Code, who satisfies all of the following criteria:
   (A) He or she has attained 18 years of age while under an order of
foster care placement by the juvenile court, and is not more than 19
years of age on or after January 1, 2012, not more than 20 years of
age on or after January 1, 2013, and not more than 21 years of age,
on or after January 1, 2014, and as described in Section 10103.5 of
the Welfare and Institutions Code.
   (B) He or she is in foster care under the placement and care
responsibility of the county welfare department, county probation
department, Indian tribe, consortium of tribes, or tribal
organization that entered into an agreement pursuant to Section
10553.1 of the Welfare and Institutions Code.
   (C) He or she is participating in a transitional independent
living case plan pursuant to Section 475(8) of the federal Social
Security Act (42 U.S.C. Sec. 675(8)), as contained in the federal
Fostering Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351), as described in Section 11403 of the Welfare
and Institutions Code.
   (c) "Pupils of limited English proficiency" means pupils who do
not have the clearly developed English language skills of
comprehension, speaking, reading, and writing necessary to receive
instruction only in English at a level substantially equivalent to
pupils of the same age or grade whose primary language is English.
"English learner" shall have the same meaning as is provided for in
subdivision (a) of Section 306 and as "pupils of limited English
proficiency."
  SEC. 20.  Section 42238.02 of the Education Code is amended to
read:
   42238.02.  (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
   (b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner, eligible for a free or
reduced-price meal, or is a foster youth. A pupil shall be counted
only once for purposes of this section if any of the following apply:

   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
youth.
   (C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
   (2) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a school
district or charter school shall annually submit its enrolled free
and reduced-price meal eligibility, foster youth, and English learner
pupil-level records for enrolled pupils to the Superintendent using
the California Longitudinal Pupil Achievement Data System.
   (3) (A) Commencing with the 2013-14 fiscal year, a county office
of education shall review and validate certified aggregate English
learner, foster youth, and free or reduced-price meal eligible pupil
data for school districts and charter schools under its jurisdiction
to ensure the data is reported accurately. The Superintendent shall
provide each county office of education with appropriate access to
school district and charter school data reports in the California
Longitudinal Pupil Achievement Data System for purposes of ensuring
data reporting accuracy.
   (B) The Controller shall include the instructions necessary to
enforce paragraph (2) in the audit guide required by Section 14502.1.
The instructions shall include, but are not necessarily limited to,
procedures for determining if the English learner, foster youth, and
free or reduced-price meal eligible pupil counts are consistent with
the school district's or charter school's English learner, foster
youth, and free or reduced-price meal eligible pupil records.
   (4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal Pupil
Achievement Data System. Under timeframes and procedures established
by the Superintendent, school districts and charter schools may
review and revise their submitted data on English learner, foster
youth, and free or reduced-price meal eligible pupil counts to ensure
the accuracy of data reflected in the California Longitudinal Pupil
Achievement Data System.
   (5) The Superintendent shall annually compute the percentage of
unduplicated pupils for each school district and charter school by
dividing the enrollment of unduplicated pupils in a school district
or charter school by the total enrollment in that school district or
charter school pursuant to all of the following:
   (A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.
   (B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.
   (C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year and
the two prior fiscal years by the sum of the total pupil enrollment
for the current fiscal year and the two prior fiscal years.
   (D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a school
district's or charter school's enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in the
2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.
   (ii) It is the intent of the Legislature to review each school
district and charter school's enrollment of unduplicated pupils for
the 2013-14 and 2014-15 fiscal years and provide one-time funding, if
necessary, for a school district or charter school with higher
enrollment of unduplicated pupils in the 2014-15 fiscal year as
compared to the 2013-14 fiscal year.
   (6) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This paragraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.
   (c) Commencing with the 2013-14 fiscal year and each fiscal year
thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.
   (d) The Superintendent shall compute a grade span adjusted base
grant equal to the total of the following amounts:
   (1) For the 2013-14 fiscal year, a base grant of:
   (A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.
   (B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.
   (C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.
   (D) Eight thousand two hundred eighty-nine dollars ($8,289) for
average daily attendance in grades 9 to 12, inclusive.
   (2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of May
10 of the preceding fiscal year compared with the annual average
value of the same deflator for the 12-month period ending in the
third quarter of the second preceding fiscal year, using the latest
data available as of May 10 of the preceding fiscal year, as reported
by the Department of Finance.
   (3) (A) The Superintendent shall compute an additional adjustment
to the kindergarten and grades 1 to 3, inclusive, base grant as
adjusted for inflation pursuant to paragraph (2) equal to 10.4
percent. The additional grant shall be calculated by multiplying the
kindergarten and grades 1 to 3, inclusive, base grant, as adjusted by
paragraph (2), by 10.4 percent.
   (B) Until paragraph (4) of subdivision (b) of Section 42238.03 is
effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:
   (i) Determine a school district's average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in the
prior year. For the 2013-14 fiscal year, this amount shall be the
average class enrollment for each schoolsite for kindergarten and
grades 1 to 3, inclusive, in the 2012-13 fiscal year.
   (ii) Determine a school district's proportion of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
   (iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.
   (iv) Determine the difference between the amount computed pursuant
to clause (i) and an average class enrollment of not more than 24
pupils.
   (v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).
   (C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24
pupils or less for each schoolsite in the 2012-13 fiscal year, shall
be exempt from the requirements of subparagraph (B) so long as the
school district continues to maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils, unless a collectively bargained alternative
ratio is agreed to by the school district.
   (D) Upon full implementation of the local control funding formula,
as a condition of the receipt of funds in this paragraph, all school
districts shall maintain an average class enrollment for each
schoolsite for kindergarten and grades 1 to 3, inclusive, of not more
than 24 pupils for each schoolsite in kindergarten and grades 1 to
3, inclusive, unless a collectively bargained alternative ratio is
agreed to by the school district.
   (E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.
   (F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24 pupils, or an alternative average class
enrollment for each schoolsite pursuant to a collectively bargained
alternative ratio. The procedures for determining average class
enrollment for each schoolsite shall include criteria for employing
sampling.
   (4) The Superintendent shall compute an additional adjustment to
the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.
   (e) The Superintendent shall compute a supplemental grant add-on
equal to 20 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for
each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to (D),
inclusive, of paragraph (1), as adjusted by paragraphs (2) to (4),
inclusive, of subdivision (d), by 20 percent and by the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.
   (f) (1) The Superintendent shall compute a concentration grant
add-on equal to 50 percent of the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), for each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district's or
charter school's total enrollment. The concentration grant shall be
calculated by multiplying the base grants as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the total enrollment in that school district or charter
school.
   (2) (A) For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school's percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the school districts in which the charter school has a
school facility. The concentration grant shall be expended in
accordance with the regulations adopted pursuant to Section 42238.07.

   (B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department's determination of
physical location. For a charter school authorized on appeal pursuant
to subdivision (j) of Section 47605, the department shall include
the sponsoring school district in the department's determination of
physical location. The reported physical location of the charter
school shall be considered final as of the second principal
apportionment for that fiscal year. For purposes of this paragraph,
the percentage of unduplicated pupils of the school district
associated with the charter school pursuant to subparagraph (A) shall
be considered final as of the second principal apportionment for
that fiscal year.
   (g) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Targeted Instructional Improvement Block Grant program, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2, for the
2012-13 fiscal year, as that article read on January 1, 2013. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount of funding
received by the school district or charter school from that program
in the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
   (h) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Home-to-School Transportation program, as set forth in former Article
2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former
Article 10 (commencing with Section 41850) of Chapter 5, and the
Small School                                              District
Transportation program, as set forth in former Article 4.5
(commencing with Section 42290), for the 2012-13 fiscal year. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount received by the
school district or charter school for those programs in the 2012-13
fiscal year. The amount computed pursuant to this subdivision shall
reflect the reduction specified in paragraph (2) of subdivision (a)
of Section 42238.03.
   (i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:
   (A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily attendance
computed pursuant to paragraph (2) of subdivision (a) of Section
42238.05 for purposes of the computation specified in subdivision
(d).
   (B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.
   (2) The amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied
by subparagraph (A) or (B) of paragraph (1), as appropriate.
   (j) The Superintendent shall adjust the sum of each school
district's or charter school's amount determined in subdivisions (g)
to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:
   (1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
   (B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
   (7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
   (k) A school district shall annually transfer to each of its
charter schools funding in lieu of property taxes pursuant to Section
47635.
   (l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph (2)
or pursuant to an agreement between the charter school and its
chartering authority.
   (2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13 fiscal
year pursuant to paragraph (2) of subdivision (b) of Section 42606,
as that section read on January 1, 2013, may annually redirect for
another purpose a percentage of the amount of the funding received on
behalf of that charter school. The percentage of funding that may be
redirected shall be determined pursuant to the following
computation:
   (A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.
   (ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.
   (iii) Subtract the amount computed pursuant to paragraphs (1) to
(3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i) of
Section 42238.02.
   (iv) Compute a percentage by dividing the sum of the amounts
computed to clauses (i) and (ii) by the amount computed pursuant to
clause (iii).
   (B) Multiply the percentage computed pursuant to subparagraph (A)
by the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013.
   (C) The maximum amount that may be redirected shall be the lesser
of the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013, or the amount computed pursuant to subparagraph (B).
   (3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount of
funding the schoolsite received pursuant to the charter school block
grant in the 2012-13 fiscal year.
   (m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation Code,
shall be made exclusive of the revenue received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
   (n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of Chapter
6.1 of Part 28 of Division 4 of Title 2.
   (o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subparagraph (A) of paragraph (2) of subdivision (e)
of Section 42238.03, shall be considered a "basic aid school district"
or an "excess tax entity."
  SEC. 21.  Section 42238.025 of the Education Code is amended to
read:
   42238.025.  (a) In the 2013-14 fiscal year, the Superintendent
shall compute an economic recovery target rate for each school
district and charter school equal to the sum of the following:
   (1) (A) For each school district, the school district's revenue
limit in the 2012-13 fiscal year as computed pursuant to this
article, as this article read on January 1, 2013, divided by the
2012-13 fiscal year average daily attendance of the school district
computed pursuant to Section 42238.05. For purposes of this section,
average daily attendance shall include any applicable revenue limit
average daily attendance and shall be considered final for purposes
of this section as of the annual apportionment for the 2012-13 fiscal
year, as calculated for purposes of the certification required on or
before February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) For each charter school, the charter school's general purpose
funding as computed pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4, as that article read
on January 1, 2013, and the in-lieu property tax amount provided to
the charter school pursuant to Section 47635, as that section read on
January 1, 2013, divided by the 2012-13 fiscal year average daily
attendance of the charter school computed pursuant to Section
42238.05. For purposes of this section, average daily attendance
shall include any applicable charter school general purpose funding
average daily attendance and shall be considered final for purposes
of this section as of the annual apportionment for the 2012-13 fiscal
year, as calculated for purposes of the certification required on or
before February 20, 2014, pursuant to Sections 41332 and 41339.
   (C) The amounts determined pursuant to subparagraphs (A) and (B)
shall not reflect the deficit factor adjustments set forth in Section
42238.146 as that section read on January 1, 2013.
   (D) The amounts determined pursuant to subparagraphs (A) and (B)
shall be adjusted for the cost-of-living adjustment for the 2013-14
fiscal year pursuant to paragraph (2) of subdivision (d) of Section
42238.02 and an annual average cost-of-living adjustment of 1.94
percent for the 2014-15 fiscal year to the 2020-21 fiscal year,
inclusive.
   (2) (A) For each school district and charter school, the sum of
the entitlements from items contained in Section 2.00 of the Budget
Act of 2012 for Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for the
Class Size Reduction Program pursuant to Chapter 6.10 (commencing
with Section 52120) of Part 28 of Division 4, as it read on January
1, 2013, and 2012-13 fiscal year funding for pupils enrolled in
community day schools who are mandatorily expelled pursuant to
subdivision (d) of Section 48915, divided by the 2012-13 fiscal year
average daily attendance of the school district computed pursuant to
Section 42238.05. For purposes of this subparagraph, 2012-13 fiscal
year entitlements shall be considered final as of the annual
apportionment for the 2012-13 fiscal year, as calculated for purposes
of the certification required on or before February 20, 2014,
pursuant to Sections 41332 and 41339.
   (B) The amounts determined pursuant to this subdivision shall not
be adjusted for the reduction set forth in Section 12.42 of the
Budget Act of 2012.
   (b) Of the amounts computed for school districts pursuant to
subdivision (a), the Superintendent shall determine the funding rate
per unit of average daily attendance above which fall not more than
10 percent of the total number of school districts statewide.
   (c) The Superintendent shall compute a 2020-21 fiscal year local
control funding formula rate for each school district and charter
school equal to the amount computed pursuant to Section 42238.02 for
the 2013-14 fiscal year, adjusted for an annual average
cost-of-living adjustment of 1.94 percent for the 2014-15 fiscal year
to the 2020-21 fiscal year, inclusive, divided by the 2013-14 fiscal
year average daily attendance of the school district or charter
school computed pursuant to Section 42238.05. For purposes of this
subdivision, the amount computed pursuant to Section 42238.02 for the
2013-14 fiscal year shall be considered final as of the second
principal apportionment for the 2013-14 fiscal year, as calculated
for purposes of the certification required on or before July 2, 2014,
pursuant to Sections 41335 and 41339.
   (d) (1) For each school district and charter school that has a
funding rate per unit of average daily attendance computed pursuant
to subdivision (a) that is equal to, or below, the funding rate per
unit of average daily attendance determined pursuant to subdivision
(b), the Superintendent shall subtract the amount computed pursuant
to subdivision (c) from the amount computed pursuant to subdivision
(a). Each school district or charter school for which this
calculation yields an amount greater than zero shall be eligible for
an economic recovery target payment equal to the amount of the
difference. A school district or charter school that has a funding
rate per unit of average daily attendance calculated pursuant to
subdivision (a) that exceeds the rate calculated pursuant to
subdivision (b) shall not be eligible for an economic recovery target
payment.
   (2) Each school district or charter school eligible for an
economic recovery target payment pursuant to paragraph (1) shall
receive the following apportionments:
   (A) For the 2013-14 fiscal year, one-eighth of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.

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

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

   (D) For the 2016-17 fiscal year, one-half of the amount calculated
pursuant to paragraph (1) multiplied by the 2012-13 fiscal year
average daily attendance computed pursuant to Section 42238.05.
   (E) For the 2017-18 fiscal year, five-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.

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

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

   (H) For the 2020-21 fiscal year and each fiscal year thereafter,
the amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant to
Section 42238.05.
   (3) In each fiscal year until a determination has been made that
all school districts and charter schools equal or exceed the local
control funding formula target computed pursuant to Section 42238.02,
as determined by the calculation of a zero difference pursuant to
paragraph (1) of subdivision (b) of Section 42238.03, the economic
recovery target payment apportioned to each eligible school district
or charter school pursuant to paragraph (2) shall be added to the
school district's or charter school's funding amounts that are
continuously appropriated pursuant to subdivision (a) of Section
42238.03 and included in the amount of funding that is subject to
offset pursuant to subdivision (c) of Section 42238.03. The amount
apportioned pursuant to paragraph (2) shall not receive a
cost-of-living adjustment.
   (4) Commencing with the first fiscal year in which all school
districts and charter schools are apportioned funding pursuant to
Section 42238.02, the economic recovery target calculated pursuant to
subparagraph (H) of paragraph (2) shall be included as an add-on to
the amounts computed pursuant to subdivisions (c) to (i), inclusive,
of Section 42238.02 and included in the amount of funding that is
subject to offset pursuant to subdivision (j) of Section 42238.02.
The amount included as an add-on pursuant to this paragraph shall not
receive a cost-of-living adjustment.
  SEC. 22.  Section 42238.03 of the Education Code is amended to
read:
   42238.03.  (a) Commencing with the 2013-14 fiscal year and each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the local control funding formula
for each school district and charter school equal to the sum of the
amounts computed pursuant to paragraphs (1) to (4), inclusive. The
amounts computed pursuant to paragraphs (1) to (4), inclusive, shall
be continuously appropriated pursuant to Section 14002.
   (1) The current fiscal year base entitlement funding level shall
be the sum of all of the following:
   (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district's
2012-13 fiscal year revenue limit funding shall exclude amounts
computed pursuant to Article 4 (commencing with Section 42280). For
purposes of this subparagraph, 2012-13 fiscal year average daily
attendance and 2012-13 fiscal year revenue limits shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the amount of in-lieu property
tax provided to the charter school pursuant to Section 47635, as that
section read on June 30, 2013, divided by the 2012-13 average daily
attendance of the charter school computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the charter school computed pursuant
to Section 42238.05. For purposes of this subparagraph, 2012-13
fiscal year average daily attendance and 2012-13 fiscal year general
purpose funding, as computed pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, shall be considered final as of the
annual apportionment for the 2012-13 fiscal year, as calculated for
purposes of the certification required on or before February 20,
2014, pursuant to Sections 41332 and 41339.
   (ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
   (C) The amount computed pursuant to subparagraph (A) shall exclude
funds received pursuant to Section 47633, as that section read on
January 1, 2013.
   (D) For school districts, funding for qualifying necessary small
high school and necessary small elementary schools shall be adjusted
to reflect the funding levels that correspond to the 2012-13
necessary small high school and necessary small elementary school
allowances pursuant Article 4 (commencing with Section 42280) and
Section 42238.146, as those provisions read on January 1, 2013.
   (2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001,
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4, as it read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (d) of
Section 48915. The entitlement for basic aid school districts shall
include the reduction of 8.92 percent as applied pursuant to
subparagraph (A) of paragraph (1) of subdivision (a) of Section 89 of
Chapter 38 of the Statutes of 2012. For purposes of this
subparagraph, 2012-13 fiscal year entitlements shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health and
Safety Code, before the application of the 8.92-percent reduction
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 3 of Chapter 2 of the Statutes of 2012.
   (3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant to
Section 42238.05. That quotient shall be multiplied by the current
fiscal year average daily attendance of the charter school computed
pursuant to Section 42238.05.
   (4) The amount allocated to a school district or charter school
pursuant to paragraph (3) of subdivision (b) for the fiscal years
before the current fiscal year divided by the average daily
attendance of the school district or charter school for the fiscal
years before the current fiscal year computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the school district or charter
school computed pursuant to Section 42238.05.
   (5) (A) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code for purposes of providing instruction to
secondary pupils shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the regional occupational center or program joint powers
agency and the contracting school district.
   (B) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing instruction to pupils enrolled in grades 9 to 12,
inclusive, received, in the 2012-13 fiscal year, an apportionment of
funds directly from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.
   (6) (A) (i) For the 2013-14 and 2014-15 fiscal years only, a
school district that, in the 2012-13 fiscal year, from any of the
funding sources identified in paragraph (1) or (2), received funds on
behalf of, or provided funds to, a home-to-school transportation
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code for purposes of providing pupil transportation
shall not redirect that funding for another purpose unless otherwise
authorized in law or pursuant to an agreement between the
home-to-school transportation joint powers agency and the contracting
school district.
   (ii) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation received, in the 2012-13 fiscal year,
an apportionment of funds directly from the Superintendent from any
of the funding sources identified in subparagraph (A) of paragraph
(2) of subdivision (a), the Superintendent shall apportion that same
amount to the home-to-school transportation joint powers agency.
   (B) In addition to subparagraph (A), of the funds a school
district receives for home-to-school transportation programs the
school district shall expend, pursuant to Article 2 (commencing with
Section 39820) of Chapter 1 of Part 23.5, Article 10 (commencing with
Section 41850) of Chapter 5, and the Small School District
Transportation program, as set forth in Article 4.5 (commencing with
Section 42290) of Chapter 7 of Part 24 of Division 3 of Title 2, no
less for those programs than the amount of funds the school district
expended for home-to-school transportation in the 2012-13 fiscal
year.
   (7) For the 2013-14 and 2014-15 fiscal years only, of the funds a
school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district expended
for purposes of regional occupational centers or programs, or adult
education, respectively, in the 2012-13 fiscal year. For purposes of
this paragraph, a school district may include expenditures made by
its county office of education within the school district for
purposes of regional occupational centers or programs so long as the
total amount of expenditures by the school district and the county
office of education equal or exceed the total amount required to be
expended for purposes of regional occupational centers or programs
pursuant to this paragraph and paragraph
                  (3) of subdivision (k) of Section 2575.
   (8) For the 2013-14 and 2014-15 fiscal years only, and for
purposes of ensuring the continuity of essential induction and
training services for beginning teachers, the Alameda County
Superintendent of Schools shall withhold five hundred eighty-one
thousand five hundred forty dollars ($581,540) from the local control
funding formula apportionments of the Newark Unified School
District, and from those withheld funds shall allocate the following
amounts to the following entities:
   (A) One hundred forty-seven thousand nine hundred twenty dollars
($147,920) to the Alameda Unified School District.
   (B) One hundred four thousand dollars ($104,000) to the San
Leandro Unified School District.
   (C) One hundred sixty-four thousand six hundred twenty dollars
($164,620) to the Berkeley Unified School District.
   (D) One hundred sixty-five thousand dollars ($165,000) to the San
Lorenzo Unified School District.
   (b) Compute an annual local control funding formula transition
adjustment for each school district and charter school as follows:
   (1) Subtract the amount computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) from the amount computed for each
school district or charter school under the local control funding
formula entitlements computed pursuant to Section 42238.02. School
districts and charter schools with a negative difference shall be
deemed to have a zero difference.
   (2) Each school district's and charter school's total need, as
calculated pursuant to paragraph (1), shall be divided by the sum of
all school districts' and charter schools' total need to determine
the school district's or charter school's respective proportions of
total need.
   (3) (A) Each school district's and charter school's proportion of
total need shall be multiplied by any available appropriations
specifically made for purposes of this subdivision, and added to the
school district's or charter school's funding amounts as calculated
pursuant to subdivision (a).
   (B) For purposes of subparagraph (A), the proportion of total need
that is funded from any available appropriations specifically made
for purposes of this subdivision for a fiscal year shall be
considered fixed as of the second principal apportionment for that
fiscal year. Adjustments to a school district's or charter school's
total need, as computed pursuant to paragraph (1), subsequent to the
second principal apportionment for a fiscal year, shall be funded
based on the fixed proportion of total need that is funded for that
fiscal year pursuant to this subdivision and shall be continuously
appropriated pursuant to Section 14002.
   (4) If the total amount of funds appropriated for purposes of
paragraph (3) pursuant to this subdivision are sufficient to fully
fund any positive amounts computed pursuant to paragraph (1), the
local control funding formula grant computed pursuant to subdivision
(c) of Section 42238.02 shall be adjusted to ensure that any
available appropriation authority is expended for purposes of the
local control funding formula.
   (5) Commencing with the first fiscal year after either paragraph
(4) of this subdivision or paragraph (2) of subdivision (g) applies,
the adjustments in paragraph (2) of subdivision (d) of Section
42238.02 shall be made only if an appropriation for those adjustments
is included in the annual Budget Act.
   (c) The Superintendent shall subtract from the amounts computed
pursuant to subdivisions (a) and (b) the sum of the following:
   (1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
   (B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
   (7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
   (d) A school district or charter school that has a zero difference
pursuant to paragraph (1) of subdivision (b) in the prior fiscal
year shall receive an entitlement equal to the amount calculated
pursuant to Section 42238.02 in the current fiscal year and future
fiscal years.
   (e) Notwithstanding the computations pursuant to subdivisions (b)
to (d), inclusive, and Section 42238.02, commencing with the 2013-14
fiscal year, a school district or charter school shall receive
state-aid funding of no less than the sum of the amounts computed
pursuant to paragraphs (1) to (3), inclusive.
   (1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district's
2012-13 revenue limit funding shall exclude amounts computed pursuant
to Article 4 (commencing with Section 42280). For purposes of this
subparagraph, 2012-13 fiscal year average daily attendance and
2012-13 fiscal year revenue limits shall be considered final as of
the annual apportionment for the 2012-13 fiscal year, as calculated
for purposes of the certification required on or before February 20,
2014, pursuant to Sections 41332 and 41339.
   (B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the amount of in-lieu property
tax provided to the charter school in the 2012-13 fiscal year
pursuant to Section 47635, as that section read on January 1, 2013,
divided by the 2012-13 average daily attendance of the charter school
computed pursuant to Section 42238.05. That quotient shall be
multiplied by the current fiscal year average daily attendance of the
charter school computed pursuant to Section 42238.05. For purposes
of this subparagraph, 2012-13 fiscal year average daily attendance
and 2012-13 fiscal year general purpose funding, as computed pursuant
to Article 2 (commencing with Section 47633) of Chapter 6 of Part
26.8 of Division 4, as that article read on January 1, 2013, shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339.
   (ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
   (C) The amount computed pursuant to subparagraph (A) shall exclude
funds received pursuant to Section 47633, as that section read on
January 1, 2013.
   (D) For school districts, the 2012-13 funding allowance provided
for qualifying necessary small high schools and necessary small
elementary schools pursuant to Article 4 (commencing with Section
42280) and Section 42238.146, as those provisions read on January 1,
2013.
   (E) The amount computed pursuant to subparagraphs (A) to (D),
inclusive, shall be reduced by the sum of the amount computed
pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).
   (2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001,
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4, as it read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (d) of
Section 48915. The entitlement for basic aid school districts shall
include the reduction of 8.92 percent as applied pursuant to
subparagraph (A) of paragraph (1) of subdivision (a) of Section 89 of
Chapter 38 of the Statutes of 2012. For purposes of this
subparagraph, 2012-13 fiscal year entitlements shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health and
Safety Code, before the application of the 8.92-percent reduction
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 3 of Chapter 2 of the Statutes of 2012.
   (C) The Superintendent shall annually apportion any entitlement
provided to the state special schools from the items specified in
subparagraph (A) to the state special schools in the same amount as
the state special schools received from those items in the 2012-13
fiscal year.
   (3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school. That quotient shall
be multiplied by the current fiscal year average daily attendance of
the charter school.
   (f) (1) For purposes of this section, commencing with the 2013-14
fiscal year and until all school districts and charter schools equal
or exceed their local control funding formula target computed
pursuant to Section 42238.02, as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b), a newly
operational charter school shall be determined to have a prior year
per average daily attendance funding amount equal to the lesser of:
   (A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement,
calculated pursuant to subdivisions (a) and (b), received by that
school district in the prior year by prior year funded average daily
attendance of that school district. For purposes of this
subparagraph, a charter school that is physically located in more
than one school district shall use the calculated local control
funding entitlement per unit of average daily attendance of the
school district with the highest prior year funding amount per unit
of average daily attendance. For purposes of this subparagraph, the
prior year funding amount per unit of average daily attendance for
the school district in which the charter school is physically located
shall be considered final as of the second principal apportionment
of the prior fiscal year.
   (B) The charter school's local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.
   (2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school's local control funding formula target.
   (3) Upon a determination that all school districts and charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02, as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02 in
that fiscal year and future fiscal years.
   (4) For purposes of this subdivision, the determination of a
charter school's physical location shall be considered final as of
the second principal apportionment for the applicable fiscal year.
   (g) (1) In each fiscal year the Superintendent shall determine the
percentage of school districts that are apportioned funding pursuant
to this section that is less than the amount computed pursuant to
Section 42238.02 as of the second principal apportionments of the
fiscal year. If the percentage is less than 10 percent, the
Superintendent shall apportion funding to school districts and
charter schools equal to the amount computed pursuant to Section
42238.02 in that fiscal year.
   (2) For each fiscal year thereafter, the Superintendent shall
apportion funding to a school district and charter school equal to
the amount computed pursuant to Section 42238.02.
  SEC. 23.  Section 42238.05 of the Education Code is amended to
read:
   42238.05.  (a) For purposes of Sections 42238.02, 42238.025, and
42238.03, the fiscal year average daily attendance for a school
district shall be computed pursuant to paragraphs (1) to (3),
inclusive, as applicable.
   (1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater, excluding units of average daily attendance resulting from
pupils attending schools funded pursuant to Article 4 (commencing
with Section 42280).
   (2) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
   (3) Prior fiscal year average daily attendance shall be adjusted
for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.
   (b) For purposes of this article, regular average daily attendance
shall be the base grant average daily attendance.
   (c) For purposes of this section, the Superintendent shall
distribute total ungraded enrollment and average daily attendance
among kindergarten and each of grades 1 to 12, inclusive, in
proportion to the amounts of graded enrollment and average daily
attendance, respectively, in each of these grades.
   (d) Subdivisions (a) to (c), inclusive, shall only apply to
average daily attendance generated by school districts and shall not
apply to average daily attendance generated by charter schools.
   (e) A pupil shall not be counted more than once for purposes of
calculating average daily attendance pursuant to this section.
   (f) For purposes of Sections 42238.02, 42238.025, and 42238.03,
average daily attendance for a charter school shall be the total
current year average daily attendance in the corresponding grade
level ranges for the charter school.
  SEC. 24.  Section 42238.055 is added to the Education Code, to
read:
   42238.055.  (a) Sections 42238.051 and 42238.052 do not apply to
resident pupils in charter schools operating under the districtwide
charter of a school district that has converted all of its schools to
charter status pursuant to Section 47606.
   (b) For purposes of this section, "resident pupils" means pupils
who reside in, and are otherwise eligible to attend, a school in the
specified school district.
  SEC. 25.  Section 42238.18 of the Education Code is amended to
read:
   42238.18.  (a) Notwithstanding any other law, only those pupils
enrolled in county office of education programs while detained in a
juvenile hall, juvenile home, day center, juvenile ranch, juvenile
camp, or regional youth educational facility established pursuant to
Article 23 (commencing with Section 850), Article 24 (commencing with
Section 880), and Article 24.5 (commencing with Section 894) of
Chapter 2 of Part 1 of Division 2 of the Welfare and Institutions
Code shall be counted as juvenile court school pupils. For purposes
of apportionments, those pupils in a group home housing 25 or more
children placed pursuant to Sections 362, 727, and 730 of the Welfare
and Institutions Code or in any group home housing 25 or more
children and operating one or more additional sites under a central
administration for children placed pursuant to Section 362, 727, or
730 of the Welfare and Institutions Code shall be reported as county
group home and institutions pupils to the Superintendent and shall be
counted as juvenile court school pupils for purposes of
apportionments.
   (b) Notwithstanding any other law, pupils who are referred by the
county probation department under Section 601 or 654 of the Welfare
and Institutions Code, shall be enrolled and eligible for
apportionments in county community schools only after an
individualized review and certification of the appropriateness of
enrollment in the county group home and institution's school or
county community school. The individualized review shall include
representatives of the court, the county office of education, the
county probation department, and either the school district of
residence or, in cases in which the pupil resides in a group home or
institution, the school district in which the group home or
institution is located, and, in each case, the school district
representative shall agree to the appropriateness of the proposed
placement and pupils so placed shall have a probation officer
assigned to their case.
   (c) Regardless of the operative date of the amendments to this
section made during the 1997 portion of the 1997-98 Regular Session,
this section, as so amended, shall be implemented as though it had
been operative on July 1, 1996. For the purpose of implementing this
section for the entire 1996-97 fiscal year, the Superintendent and
other public officers shall take all necessary steps to effect the
required adjustments and shall have authority to adjust allowance
computations, apportionments, and disbursements ordered from Section
A of the State School Fund and other public funds.
   (d) Notwithstanding any other law, on or after July 1, 2013, a
county office of education may expend funds previously deposited in
the capital outlay reserve established pursuant to former paragraph
(4) of subdivision (b) of this section, as this section read on June
30, 2013, for any of the purposes specified in the local control and
accountability plan adopted pursuant to Section 52066.
  SEC. 26.  Section 42238.20 of the Education Code is amended to
read:
   42238.20.  (a) Notwithstanding any other law, commencing with the
2008-09 fiscal year, the minimum schoolday for a pupil concurrently
enrolled in regular secondary school classes and classes operating
pursuant to a joint powers agreement that became effective before
January 1, 2008, is 180 minutes. These regular secondary school
classes constitute regular school classes for purposes of Section
46010.3.
   (b) For a pupil described in subdivision (a), the average daily
attendance shall be included as school district average daily
attendance computed pursuant to Section 42238.05.
   (c) For purposes of computing attendance pursuant to Section 46300
or any other law, immediate supervision and control of pupils while
attending classes pursuant to a joint powers agreement described in
subdivision (a) is deemed satisfied regardless of the school district
employing the certificated employee providing the supervision and
control, provided the school district is a party to the joint powers
agreement.
   (d) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 27.  Section 42238.53 of the Education Code is repealed.
  SEC. 28.  Section 42284 of the Education Code is amended to read:
   42284.  (a) For each school district with fewer than 2,501 units
of average daily attendance, on account of each necessary small high
school, the Superintendent shall make one of the following
computations selected with regard only to the number of certificated
employees employed or average daily attendance, whichever provides
the lesser amount:
                             Minimum
                             number         Amount
Average                       of             to
daily                    certificated        be
attendance                 employees      computed
     1-19 ............     less than 3     $42,980
                                             per
                                           teacher
     1-19 ............          3          191,340
    20-38 ............          4          234,320
    39-57 ............          5          277,300
    58-71 ............          6          320,280
    72-86 ............          7          363,260
   87-100 ............          8          406,240
  101-114 ............          9          449,220
  115-129 ............         10          492,200
  130-143 ............         11          535,180
  144-171 ............         12          578,160
  172-210 ............         13          621,140
  211-248 ............         14          664,120
  249-286 ............         15          707,100


   (b) For purposes of this section, a "certificated employee" means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in grades 9 to
12, inclusive, in any secondary school. Any fraction of an equivalent
full-time position remaining after all equivalent full-time
positions for certificated employees within the school district have
been calculated shall be deemed to be a full-time position.
   (c) A school district that qualifies under this section may use
the funding calculation as provided in this section until the local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
multiplied by the average daily attendance produces state aid equal
to the funding provided under this section.
  SEC. 29.  Section 42285 of the Education Code is amended to read:
   42285.  (a) For purposes of Section 42284, a necessary small high
school is a high school with an average daily attendance of less than
287 pupils that comes within any of the following conditions:
   (1) The projection of its future enrollment on the basis of the
enrollment of the elementary schools in the school district shows
that within eight years the enrollment in high school in grades 9 to
12, inclusive, will exceed 286 pupils.
   (2) Any one of the following combinations of distance and units of
average daily attendance applies:
   (A) The high school had an average daily attendance of less than
96 pupils in grades 9 to 12, inclusive, during the preceding fiscal
year and is more than 15 miles by well-traveled road from the nearest
other public high school and either 90 percent of the pupils would
be required to travel 20 miles or 25 percent of the pupils would be
required to travel 30 miles one way from a point on a well-traveled
road nearest their homes to the nearest other public high school.
   (B) The high school had an average daily attendance of 96 pupils
or more and less than 144 pupils in grades 9 to 12, inclusive, during
the preceding fiscal year and is more than 10 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 18 miles or 25 percent of
the pupils would be required to travel 25 miles one way from a point
on a well-traveled road nearest their homes to the nearest other
public high school.
   (C) The high school had an average daily attendance of 144 pupils
or more and less than 192 pupils in grades 9 to 12, inclusive, during
the preceding fiscal year and is more than 71/2 miles by
well-traveled road from the nearest other public high school and
either 90 percent of the pupils would be required to travel 15 miles
or 25 percent of the pupils would be required to travel 20 miles one
way from a point on a well-traveled road nearest their homes to the
nearest other public high school.
   (D) The high school had an average daily attendance of 192 pupils
or more and less than 287 pupils in grades 9 to 12, inclusive, during
the preceding fiscal year and is more than 5 miles by well-traveled
road from the nearest other public high school and either 90 percent
of the pupils would be required to travel 10 miles or 25 percent of
the pupils would be required to travel 15 miles to the nearest other
public high school.
   (3) Topographical or other conditions exist in the school district
which would impose unusual hardships on the pupils if the number of
miles specified in paragraph (2) were required to be traveled. In
these cases, the Superintendent may, when requested, and after
investigation, grant exceptions from the distance requirements.
   (4) The Superintendent has approved the recommendation of a county
committee on school district organization designating one of two or
more schools as necessary isolated schools in a situation where the
schools are operated by two or more school districts and the average
daily attendance of each of the schools is less than 287 pupils in
grades 9 to 12, inclusive.
                                                       (b) For
purposes of Section 42284, a necessary small high school also
includes any of the following:
   (1) A high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.
   (2) A high school maintained by a county office of education for
the exclusive purpose of educating foster youth if the high school
provided instruction in the 2012-13 fiscal year and the high school
is the only one maintained by the county office of education that
exclusively educates foster youth. Notwithstanding Section 42286,
this paragraph shall become inoperative on July 1, 2017.
   (3) A high school maintained by a unified school district as the
only comprehensive high school if the high school has an average
daily attendance of less than 286 pupils and the school district has
50 or fewer pupils per square mile of school district territory, as
measured by the number of pupils residing in the school district.
Notwithstanding Section 42286, this paragraph shall become
inoperative on July 1, 2017.
   (c) For purposes of Section 42284, a necessary small high school
does not include a continuation school.
   (d) For purposes of this section, "other public high school" is a
public school, including a charter school, that serves any of grades
9 to 12, inclusive.
  SEC. 30.  Section 46200.5 of the Education Code is repealed.
  SEC. 31.  Section 46200.5 is added to the Education Code, to read:
   46200.5.  For a county office of education that received an
apportionment pursuant to former subdivision (c) of this section, as
it read on January 1, 2013, and that offers fewer than 180 days of
instruction, or, in multitrack year-round schools, fewer than the 163
days of instruction, as required in former subdivision (c) of this
section, as it read on January 1, 2013, in the 2013-14 fiscal year or
any fiscal year thereafter, the Superintendent shall withhold from
the county superintendent of schools' local control funding formula
alternative education grant computed pursuant to Section 2574, as
apportioned pursuant to Section 2575, for the average daily
attendance of each affected grade level, the product of 0.0056
multiplied by that apportionment for each day less than what was
required to avoid a reduction pursuant to this section, as it read on
January 1, 2013, up to a maximum of five days.
  SEC. 32.  Section 46201.5 of the Education Code is repealed.
  SEC. 33.  Section 46201.5 is added to the Education Code, to read:
   46201.5.  (a) For a county office of education that received an
apportionment pursuant to former subdivision (a) of this section, as
it read on January 1, 2013, and that reduces the amount of
instructional time offered below the minimum amounts specified in
subdivision (b), the Superintendent shall withhold from the county
superintendent of schools' county local control funding formula grant
apportionment computed pursuant to Section 2574, as apportioned
pursuant to Section 2575, for the average daily attendance of each
affected grade level, the product of that apportionment multiplied by
the percentage of the minimum required minutes at that grade level
that the county office of education failed to offer.
   (b) Commencing with the 2013-14 fiscal year, a county office of
education shall, at a minimum, offer the following amount of
instructional time:
   (1) Thirty-six thousand minutes in kindergarten.
   (2) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.
   (3) Fifty-four thousand minutes in grades 4 to 8, inclusive.
   (4) Sixty-four thousand eight hundred minutes in grades 9 to 12,
inclusive.
  SEC. 34.  Section 46380 of the Education Code is amended to read:
   46380.  The average daily attendance for the fiscal year of pupils
residing in a county of this state and attending a school in an
adjoining state under Article 1 (commencing with Section 2000) of
Chapter 7 of Part 2 of Division 1 of Title 1 shall be computed by
dividing the total number of days of attendance of the pupils in the
school by the number of days the school was maintained during that
fiscal year, but by not less than 175.
  SEC. 35.  Section 46610 of the Education Code is amended to read:
   46610.  (a) (1) Notwithstanding any other law, the Fallbrook Union
High School District shall enter into an interdistrict attendance
agreement with the Capistrano Unified School District to allow any
pupil, at the request of his or her parent or guardian, to attend
schools of the Capistrano Unified School District when the pupil
resides in the San Onofre housing area of the Marine Corps Base, Camp
Joseph H. Pendleton. No more than 150 pupils from the Fallbrook
Union High School District may attend school in the Capistrano
Unified School District pursuant to this interdistrict attendance
agreement.
   (2) The Fallbrook Union High School District shall be credited
with the average daily attendance of these pupils solely for purposes
of receiving federal grants pursuant to Public Law 81-874.
   (b) The Fallbrook Union High School District shall pay tuition to
the Capistrano Unified School District for the attendance of these
pupils only in the amount computed pursuant to paragraphs (1) and
(2), as follows:
   (1) Divide the amount of funds paid pursuant to Section 3 of
Public Law 81-874 (20 U.S.C. 238) to the Fallbrook Union High School
District in the current fiscal year by the average daily attendance
of the school district in the current fiscal year.
   (2) Multiply the amount in subdivision (a) by the average daily
attendance, for the year of attendance for secondary school pupils
attending the schools of the Capistrano Unified School District
pursuant to Section 46610.
   (c) Notwithstanding any other law, the amount provided to the
Fallbrook Union High School District and the Capistrano Unified
School District for the 2012-13 fiscal year pursuant to this section
and Section 46111, as these sections read on June 1, 2013, shall be
included in the computations made pursuant to paragraph (2) of
subdivision (a) of Section 42238.025, paragraph (2) of subdivision
(a) of Section 42238.03, and paragraph (2) of subdivision (e) of
Section 42238.03. For purposes of calculating funding pursuant to
subdivisions (a) and (e) of Section 42238.03, the school district of
residence shall be credited with the 2012-13 fiscal year revenue
limit funding received for the pupils reported pursuant to this
section after accounting for the amount of tuition paid to the school
district of attendance. For purposes of calculating funding pursuant
to subdivisions (a) and (e) of Section 42238.03, the school district
of attendance shall be credited with the average daily attendance of
the pupils reported pursuant to this section in the 2012-13 fiscal
year, and the tuition received by the school district of residence
pursuant to this section and Section 46611, as these sections read on
March 1, 2014.
  SEC. 36.  Section 46611 of the Education Code is repealed.
  SEC. 37.  Section 47605.1 of the Education Code is amended to read:

   47605.1.  (a) (1) Notwithstanding any other law, a charter school
that is granted a charter from the governing board of a school
district or county office of education after July 1, 2002, and
commences providing educational services to pupils on or after July
1, 2002, shall locate in accordance with the geographic and site
limitations of this part.
   (2) Notwithstanding any other law, a charter school that is
granted a charter by the state board after July 1, 2002, and
commences providing educational services to pupils on or after July
1, 2002, based on the denial of a petition by the governing board of
a school district or county board of education, as described in
paragraphs (1) and (2) of subdivision (j) of Section 47605, may
locate only within the geographic boundaries of the chartering entity
that initially denied the petition for the charter.
   (3) A charter school that receives approval of its charter from a
governing board of a school district, a county office of education,
or the state board before July 1, 2002, but does not commence
operations until after January 1, 2003, shall be subject to the
geographic limitations of the part, in accordance with subdivision
(e).
   (b) Nothing in this section is intended to affect the admission
requirements contained in subdivision (d) of Section 47605.
   (c) Notwithstanding any other law, a charter school may establish
a resource center, meeting space, or other satellite facility located
in a county adjacent to that in which the charter school is
authorized if the following conditions are met:
   (1) The facility is used exclusively for the educational support
of pupils who are enrolled in nonclassroom-based independent study of
the charter school.
   (2) The charter school provides its primary educational services
in, and a majority of the pupils it serves are residents of, the
county in which the school is authorized.
   (d) Notwithstanding subdivision (a) or subdivision (a) of Section
47605, a charter school that is unable to locate within the
geographic boundaries of the chartering school district may establish
one site outside the boundaries of the school district, but within
the county within which that school district is located, if the
school district where the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools is notified of the location of the charter
school before it commences operations, and either of the following
circumstances exist:
   (1) The school has attempted to locate a single site or facility
to house the entire program but such a facility or site is
unavailable in the area in which the school chooses to locate.
   (2) The site is needed for temporary use during a construction or
expansion project.
   (e) (1) For a charter school that was granted approval of its
charter before July 1, 2002, and provided educational services to
pupils before July 1, 2002, this section shall only apply to any new
educational services or schoolsites established or acquired by the
charter school on or after July 1, 2002.
   (2) For a charter school that was granted approval of its charter
before July 1, 2002, but did not provide educational services to
pupils before July 1, 2002, this section shall only apply upon the
expiration of a charter that is in existence on January 1, 2003.
   (3) Notwithstanding other implementation timelines in this
section, by June 30, 2005, or upon the expiration of a charter that
is in existence on January 1, 2003, whichever is later, all charter
schools shall be required to comply with this section for schoolsites
at which education services are provided to pupils before or after
July 1, 2002, regardless of whether the charter school initially
received approval of its charter school petition before July 1, 2002.
To achieve compliance with this section, a charter school shall be
required to receive approval of a charter petition in accordance with
this section and Section 47605.
   (4) Nothing in this section is intended to affect the authority of
a governmental entity to revoke a charter that is granted on or
before the effective date of this section.
   (f) A charter school that submits its petition directly to a
county board of education, as authorized by Sections 47605.5 or
47605.6, may establish charter school operations only within the
geographical boundaries of the county in which that county board of
education has jurisdiction.
   (g) Notwithstanding any other law, the jurisdictional limitations
set forth in this section do not apply to a charter school that
provides instruction exclusively in partnership with any of the
following:
   (1) The federal Workforce Investment Act of 1998 (29 U.S.C. Sec.
2801 et seq.).
   (2) Federally affiliated Youth Build programs.
   (3) Federal job corps training or instruction provided pursuant to
a memorandum of understanding with the federal provider.
   (4) The California Conservation Corps or local conservation corps
certified by the California Conservation Corps pursuant to Sections
14507.5 or 14406 of the Public Resources Code.
   (5) Instruction provided to juvenile court school pupils pursuant
to subdivision (b) of Section 42238.18 or pursuant to Section 1981
for individuals who are placed in a residential facility.
  SEC. 38.  Section 47613 of the Education Code is amended to read:
   47613.  (a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.
   (b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering
authority.
   (c) A local educational agency that is given the responsibility
for supervisorial oversight of a charter school, pursuant to
paragraph (1) of subdivision (k) of Section 47605, may charge for the
actual costs of supervisorial oversight, and administrative costs
necessary to secure charter school funding. A charter school that is
charged for costs under this subdivision may not be charged pursuant
to subdivision (a) or (b).
   (d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.
   (e) For purposes of this section, "chartering authority" means a
school district, county board of education, or the state board, that
granted the charter to the charter school.
   (f) For purposes of this section, "revenue of the charter school"
means the amount received in the current fiscal year from the local
control funding formula calculated pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (g) For purposes of this section, "costs of supervisorial
oversight" include, but are not limited to, costs incurred pursuant
to Section 47607.3.
  SEC. 39.  Section 47613.1 of the Education Code is amended to read:

   47613.1.  (a) The Superintendent shall make all of the following
apportionments on behalf of a charter school in a school district in
which all schools have been converted to charter schools pursuant to
Section 47606:
   (1) From funds appropriated to Section A of the State School Fund
for apportionment for that fiscal year pursuant to Article 2
(commencing with Section 42238) of Chapter 7 of Part 24 of Division
3, an amount for each unit of current fiscal year regular average
daily attendance in the charter school multiplied by the funding
rates calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, except that average daily attendance generated by
pupils who are residents of the school district may be funded
pursuant to paragraph (1) of subdivision (a) of Section 42238.05.
   (2) For each pupil enrolled in the charter school who is entitled
to special education services, the state and federal funds for
special education services for that pupil that would have been
apportioned for that pupil to the school district to which the
charter petition was submitted.
   (3) Funds for the programs described in former clause (i) of
subparagraph (B) of paragraph (1) of subdivision (a) of Section
54761, as that section read on June 30, 2005, and Sections 63000 and
64000, to the extent that any pupil enrolled in the charter school is
eligible to participate.
   (b) Transfers of funding in lieu of property taxes pursuant to
Section 47635 shall not apply to a school district in which all
schools have been converted to charter schools pursuant to Section
47606.
   (c) For each pupil residing in the school district and receiving
instruction provided by the county office of education, a school
district in which all schools have been converted to charter schools
shall, for purposes of Section 2576, be treated as a school district
in which all schools have not been converted to charter schools.
   (d) The provisions of subparagraph (A) of paragraph (2) of
subdivision (f) of Section 42238.02 that cap the percentage of
unduplicated pupils used for calculating the concentration grant
add-on to the percentage of unduplicated pupils of the school
district in which the charter school is physically located shall not
apply to a school district described in this section.
   (e) Consistent with Section 47630, necessary small school funding
shall not be provided to a school district described in this section.

  SEC. 40.  Section 47631 of the Education Code is amended to read:
   47631.  (a) Article 3 (commencing with Section 47636) shall not
apply to a charter granted pursuant to Section 47605.5.
   (b) A charter school authorized pursuant to Section 47605.5 shall
receive the average daily attendance rate calculated pursuant to
paragraph (1) of subdivision (c) of Section 2574 for enrolled pupils
who are identified as any of the following:
   (1) Probation-referred pursuant to Section 300, 601, 602, or 654
of the Welfare and Institutions Code.
   (2) On probation or parole and not attending a school.
   (3) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
   (4) Attending schools or classes established pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27.
   (c) A charter school authorized pursuant to Section 47605.5 shall
be funded pursuant to the local control funding formula pursuant to
Section 42238.02, as implemented by Section 42238.03, for all pupils
except for pupils funded pursuant to subdivision (b).
   (d) A charter school authorized pursuant to Section 47605.5 shall
be funded pursuant to the local control funding formula pursuant to
Section 2575 for pupils receiving the average daily attendance rate
computed pursuant to paragraph (1) of subdivision (c) of Section 2574
and identified in paragraphs (1) to (4), inclusive, of subdivision
(b).
  SEC. 41.  Section 47632 of the Education Code is amended to read:
   47632.  For purposes of this chapter, the following terms shall be
defined as follows:
   (a) "General-purpose entitlement" means an amount computed by the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03.
   (b) "Economic impact aid-eligible pupils" means those pupils that
are included in the economic impact aid-eligible pupil count pursuant
to Section 54023. For purposes of applying Section 54023 to charter
schools, "economically disadvantaged pupils" means the pupils
described in paragraph (2) of subdivision (a) of Section 54026.
   (c) "General-purpose funding" means those funds that consist of
state aid, local property taxes, and other revenues applied toward a
school district's local control funding formula, pursuant to Section
42238.02, as implemented by Section 42238.03.
   (d) "Categorical aid" means aid that consists of state or
federally funded programs, or both, that are apportioned for specific
purposes set forth in statute or regulation.
   (e) "Educationally disadvantaged pupils" means those pupils who
meet federal eligibility criteria for free and reduced-price meals as
specified in Section 49531, as that section read on January 1, 2013,
except in regard to meals in family day care homes.
   (f) "Operational funding" means all funding except funding for
capital outlay.
   (g) "School district of a similar type" means a school district
that is serving similar grade levels.
   (h) "Similar pupil population" means similar numbers of pupils by
grade level, with a similar proportion of educationally disadvantaged
pupils.
   (i) "Sponsoring local educational agency" means the following:
   (1) If a charter school is granted by a school district, the
sponsoring local educational agency is the school district.
   (2) If a charter is granted by a county office of education after
having been previously denied by a school district, the sponsoring
local educational agency means the school district that initially
denied the charter petition.
   (3) If a charter is granted by the state board after having been
previously denied by a local educational agency, the sponsoring local
educational agency means the local educational agency designated by
the state board pursuant to paragraph (1) of subdivision (k) of
Section 47605 or if a local educational agency is not designated, the
local educational agency that initially denied the charter petition.

   (4) For pupils attending county-sponsored charter schools pursuant
to Section 47605.5 who do not meet the criteria identified in
subdivision (b) of Section 47631, the sponsoring local educational
agency means the pupils' school district of residence.
   (5) For pupils attending countywide charter schools pursuant to
Section 47605.6 who reside in a basic aid school district, the
sponsoring local educational agency means the pupils' school district
of residence. For purposes of this paragraph, "basic aid school
district" means a school district that did not receive an
apportionment of state funds as described in subdivision (o) of
Section 42238.02 in the prior fiscal year.
  SEC. 42.  Section 47634.3 of the Education Code is repealed.
  SEC. 43.  Section 47635 of the Education Code is amended to read:
   47635.  (a) A sponsoring local educational agency shall annually
transfer to each of its charter schools funding in lieu of property
taxes equal to the lesser of the following two amounts:
   (1) The average amount of property taxes per unit of average daily
attendance, including average daily attendance attributable to
charter schools, received by the local educational agency, multiplied
by the charter school's average daily attendance.
   (2) The local control funding formula grant funding computed
pursuant to subdivision (d) of Section 42238.02, per unit of average
daily attendance, multiplied by the charter school's average daily
attendance in each of the four corresponding grade level ranges:
kindergarten and grades 1, 2, and 3; grades 4, 5, and 6; grades 7 and
8; and grades 9 to 12, inclusive.
   (3) Notwithstanding paragraph (2), until the Superintendent
determines that a charter school is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall apportion
funding per unit of average daily attendance pursuant to this
article. The base grant for purposes of paragraph (2) shall be the
sum of the entitlements for the charter school in the specified
fiscal year as computed pursuant to paragraphs (1) to (4), inclusive,
of subdivision (a) of Section 42238.03 and paragraph (3) of
subdivision (b) of Section 42238.03, multiplied by the ratio of local
control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.
   (4) If the sum of the funding transferred pursuant to this
subdivision and the funding calculated pursuant to subdivision (e) of
Section 42238.03 exceeds the sum of the amounts calculated pursuant
to subdivisions (a) and (b) of Section 42238.03, the excess funding
shall be used to offset funding calculated pursuant to subdivision
(e) of Section 42238.03.
   (b) The sponsoring local educational agency shall transfer funding
in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.
   (1) For the months of August to February, inclusive, a charter
school's funding in lieu of property taxes shall be computed based on
the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported to
the Superintendent for purposes of the second principal
apportionment. A sponsoring local educational agency shall transfer
to the charter school the charter school's estimated annual
entitlement to funding in lieu of property taxes as follows:
   (A) Six percent in August.
   (B) Twelve percent in September.
   (C) Eight percent each month in October, November, December,
January, and February.
   (2) For the months of March to June, inclusive, a charter school's
funding in lieu of property taxes shall be computed based on the
amount of property taxes estimated to be received by the sponsoring
local educational agency during the fiscal year, as reported to the
Superintendent for purposes of the first principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to one-sixth of the difference
between the school's estimated annual entitlement to funding in lieu
of property taxes and the amounts provided pursuant to paragraph (1).
An additional one-sixth of this difference shall be included in the
amount transferred in the month of March.
   (3) For the month of July, a charter school's funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent for purposes of the second principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to the remaining difference between
the school's estimated annual entitlement to funding in lieu of
property taxes and the amounts provided pursuant to paragraphs (1)
and (2).
   (4) Final adjustments to the amount of funding in lieu of property
taxes allocated to a charter school shall be made in February, in
conjunction with the final reconciliation of annual apportionments to
schools.
   (5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
apply for pupils who reside in, and are otherwise eligible to attend
a school in, a basic aid school district, but who attend a charter
school in a nonbasic aid school district. With regard to these
pupils, the sponsoring basic aid school district shall transfer to
the charter school an amount of funds equivalent to the local control
funding formula grant pursuant to Section 42238.02, as implemented
by Section 42238.03, earned through average daily attendance by the
charter school for each pupil's attendance, not to exceed the average
property tax share per unit of average daily attendance for pupils
residing and attending in the basic aid school district. The transfer
of funds shall be made in not fewer than two installments at the
request of the charter school, the first occurring not later than
February 1 and the second not later than June 1 of each school year.
Payments shall reflect the average daily attendance certified for the
time periods of the first and second principal apportionments,
respectively. The Superintendent may not apportion any funds for the
attendance                                          of pupils
described in this subdivision unless the amount transferred by the
basic aid district is less than the local control funding formula
grant pursuant to Section 42238.02, as implemented by Section
42238.03, earned by the charter school, in which event the
Superintendent shall apportion the difference to the charter school
from state funds.
   (c) Notwithstanding subdivisions (a) and (b), for a pupil
attending a county charter program school authorized pursuant to
Section 47605.6 for whom the county office of education is not
educationally responsible, the county charter program school may seek
in-lieu property tax reimbursement from the pupil's school district
of residence in an amount agreed upon by the county charter program
school and the school district of residence.
  SEC. 44.  Section 47663 of the Education Code is amended to read:
   47663.  (a) (1) For a pupil of a charter school sponsored by a
basic aid school district who resides in, and is otherwise eligible
to attend, a school district other than a basic aid school district,
the Superintendent shall apportion to the sponsoring school district
an amount equal to 70 percent of the local control funding formula
base grant computed pursuant to subdivision (d) of Section 42238.02,
per unit of average daily attendance that would have been apportioned
to the school district that the pupil resides in, and would
otherwise have been eligible to attend.
   (2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district the pupil resides in, and would
otherwise have been eligible to attend, is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall
apportion, for average daily attendance pursuant to this article, 70
percent of the sum of the entitlements for the school district that
the pupil resides in, and would otherwise have been eligible to
attend, for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (a) of Section
42238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
divided by the average daily attendance for that fiscal year and then
multiplied by the ratio of local control funding formula base grant
funding computed pursuant to subdivision (d) of Section 42238.02 to
the local control funding formula amount for the fiscal year computed
pursuant to Section 42238.02.
   (3) If the entitlements for the school district the pupil resides
in, and would otherwise have been eligible to attend, as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a), and
paragraph (3) of subdivision (b), of Section 42238.03, include
funding calculated pursuant to Article 4 (commencing with Section
42280) of Chapter 7 of Part 24 of Division 3 for a fiscal year,
paragraph (2) shall not apply and the apportionment of state funds
for the average daily attendance credited pursuant to this section
for that fiscal year shall be calculated pursuant to paragraph (1).
   (b) A school district that loses basic aid status as a result of
transferring property taxes to a charter school or schools pursuant
to Section 47635 for pupils who reside in, and are otherwise eligible
to attend, a school district other than the school district that
sponsors the charter school, shall be eligible to receive a pro rata
share of funding provided by subdivision (a), with the proration
factor calculated as the ratio of the following:
   (1) The amount of property taxes that the school district receives
in excess of its total base grant per unit of average daily
attendance calculated pursuant to Section 42238.02, as implemented by
Section 42238.03, before any transfers made pursuant to Section
47635, except for transfers in lieu of property taxes made for pupils
who reside in, and would otherwise be eligible to attend, a school
of the school district.
   (2) The total amount in lieu of property taxes transferred
pursuant to Section 47635 to the charter school or schools that it
sponsors, except for transfers in lieu of property taxes made for
pupils who reside in, and would otherwise be eligible to attend, a
school of the school district.
   (c) In no event shall the amount provided pursuant to this section
exceed the amount in lieu of property taxes transferred on behalf of
charter school pupils who do not reside in the school district, less
the proportionate amount of base grant state aid provided pursuant
to Section 42238.02, as implemented by Section 42238.03, that is
attributable to the charter school pupils who do not reside in the
school district.
   (d) The Superintendent shall not apportion funds for the
attendance of a pupil in a charter school of a nonbasic aid school
district who resides in, and is otherwise eligible to attend school
in, a basic aid school district unless the pupil is subject to the
exceptions set forth in paragraph (5) of subdivision (b), and
subdivision (c), of Section 47635.
   (e) For purposes of this section, "basic aid school district"
means a school district that does not receive from the state, for any
fiscal year in which the subdivision is applied, an apportionment of
state funds as described in subdivision (o) of Section 42238.02.
  SEC. 45.  Section 48310 of the Education Code is amended to read:
   48310.  (a) The average daily attendance for pupils admitted by a
school district of choice pursuant to this article shall be credited
to that school district pursuant to Section 46607. The attendance
report for the school district of choice may include an
identification of the school district of residence.
   (b) Notwithstanding any other law, state aid for categorical
education programs for pupils admitted under this article shall be
apportioned to the school district of choice.
   (c) (1) For a school district of choice that is a basic aid school
district, the apportionment of state funds for average daily
attendance credited pursuant to this section shall be 70 percent of
the school district local control funding formula base grant computed
pursuant to subdivision (d) of Section 42238.02, as implemented by
Section 42238.03, that would have been apportioned to the school
district of residence.
   (2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this
article, 70 percent of the sum of the entitlements for the school
district of residence for the specified fiscal year as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) of
Section 42238.03 and paragraph (3) of subdivision (b) of Section
42238.03, divided by the average daily attendance pursuant to this
article for that fiscal year and then multiplied by the ratio of
local control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.
   (3) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of subdivision
(a), and paragraph (3) of subdivision (b), of Section 42238.03,
include funding calculated pursuant to Article 4 (commencing with
Section 42280) of Chapter 7 of Part 24 of Division 3 for a fiscal
year, paragraph (2) shall not apply and the apportionment of state
funds for the average daily attendance credited pursuant to this
section for that fiscal year shall be calculated pursuant to
paragraph (1).
   (4) For purposes of this subdivision, the term "basic aid school
district" means a school district that does not receive from the
state, for a fiscal year in which this subdivision is applied, an
apportionment of state funds as described in subdivision (o) of
Section 42238.02.
   (d) The average daily attendance of pupils admitted by a school
district of choice pursuant to this article shall be credited to that
school district for purposes of any determination under Article 2
(commencing with Section 17010) of Chapter 12 of Part 10 of Division
1 of Title 1 that uses an average daily attendance calculation.
  SEC. 46.  Section 48359.5 of the Education Code is amended to read:

   48359.5.  (a) For a school district of enrollment that is a basic
aid school district, the apportionment of state funds for average
daily attendance credited pursuant to this article shall be 70
percent of the school district local control funding formula base
grant that would have been apportioned to the school district of
residence pursuant to subdivision (d) of Section 42238.02.
Apportionment of these funds shall begin in the second consecutive
year of enrollment, and continue annually until the pupil graduates
from, or is no longer enrolled in, the school district of enrollment.

   (b) Notwithstanding subdivision (a), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this
article, 70 percent of the sum of the entitlements for the school
district of residence for the specified fiscal year as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) of
Section 42238.03 and paragraph (3) of subdivision (b) of Section
42238.03, divided by the average daily attendance pursuant to this
article for that fiscal year and then multiplied by the ratio of
local control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.
   (c) If the entitlements for the school district of residence
computed pursuant to paragraphs (1) to (4), inclusive, of subdivision
(a), and paragraph (3) of subdivision (b), of Section 42238.03,
include funding calculated pursuant to Article 4 (commencing with
Section 42280) of Chapter 7 of Part 24 of Division 3 for a fiscal
year, subdivision (b) shall not apply and the apportionment of state
funds for the average daily attendance credited pursuant to this
section for that fiscal year shall be calculated pursuant to
subdivision (a).
   (d) For purposes of this section, "basic aid school district"
means a school district that does not receive an apportionment of
state funds as described in subdivision (o) of Section 42238.02 for a
fiscal year in which this section may apply.
  SEC. 47.  Section 52064 of the Education Code is amended to read:
   52064.  (a) On or before March 31, 2014, the state board shall
adopt templates for the following purposes:
   (1) For use by school districts to meet the requirements of
Sections 52060 to 52063, inclusive.
   (2) For use by county superintendents of schools to meet the
requirements of Sections 52066 to 52069, inclusive.
   (3) For use by charter schools to meet the requirements of Section
47606.5.
   (b) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
No Child Left Behind Act of 2001 related to local educational agency
plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
Public Law 107-110. The state board shall also take steps to minimize
duplication of effort at the local level to the greatest extent
possible. The template shall include guidance for school districts,
county superintendents of schools, and charter schools to report both
of the following:
   (1) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, implementing the
specific actions included in the local control and accountability
plan.
   (2) A listing and description of expenditures for the 2014-15
fiscal year, and each fiscal year thereafter, that will serve the
pupils to whom one or more of the definitions in Section 42238.01
apply and pupils redesignated as fluent English proficient.
   (c) If possible, the templates identified in paragraph (2) of
subdivision (a) for use by county superintendents of schools shall
allow a county superintendent of schools to develop a single local
control and accountability plan that would also satisfy the
requirements of Section 48926.
   (d) The state board shall adopt the template pursuant to the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code). The state board may adopt emergency
regulations for purposes of implementing this section. The adoption
of emergency regulations shall be deemed an emergency and necessary
for the immediate preservation of the public peace, health, safety,
or general welfare.
   (e) Notwithstanding subdivision (d), the state board may adopt the
template in accordance with the requirements of the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
When adopting the template pursuant to the requirements of the
Bagley-Keene Open Meeting Act, the state board shall present the
template at a regular meeting and may only take action to adopt the
template at a subsequent regular meeting. This subdivision shall
become inoperative on January 31, 2018.
   (f) Revisions to a template or evaluation rubric shall be approved
by the state board by January 31 before the fiscal year during which
the template or evaluation rubric is to be used by a school
district, county superintendent of schools, or charter school.
   (g) The adoption of a template or evaluation rubric by the state
board shall not create a requirement for a governing board of a
school district, a county board of education, or a governing body of
a charter school to submit a local control and accountability plan to
the state board, unless otherwise required by federal law. The
Superintendent shall not require a local control and accountability
plan to be submitted by a governing board of a school district or the
governing body of a charter school to the state board. The state
board may adopt a template or evaluation rubric that would authorize
a school district or a charter school to submit to the state board
only the sections of the local control and accountability plan
required by federal law.
  SEC. 48.  Section 52070 of the Education Code is amended to read:
   52070.  (a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the governing board of a school district
shall file the local control and accountability plan or annual update
to the local control and accountability plan with the county
superintendent of schools.
   (b) On or before August 15 of each year, the county superintendent
of schools may seek clarification, in writing, from the governing
board of a school district about the contents of the local control
and accountability plan or annual update to the local control and
accountability plan. Within 15 days the governing board of a school
district shall respond, in writing, to requests for clarification.
   (c) Within 15 days of receiving the response from the governing
board of the school district, the county superintendent of schools
may submit recommendations, in writing, for amendments to the local
control and accountability plan or annual update to the local control
and accountability plan. The governing board of a school district
shall consider the recommendations submitted by the county
superintendent of schools in a public meeting within 15 days of
receiving the recommendations.
   (d) The county superintendent of schools shall approve a local
control and accountability plan or annual update to a local control
and accountability plan on or before October 8, if he or she
determines all of the following:
   (1) The local control and accountability plan or annual update to
the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.
   (2) The budget for the applicable fiscal year adopted by the
governing board of the school district includes expenditures
sufficient to implement the specific actions and strategies included
in the local control and accountability plan adopted by the governing
board of the school district, based on the projections of the costs
included in the plan.
   (3) The local control and accountability plan or annual update to
the local control and accountability plan adheres to the expenditure
requirements adopted pursuant to Section 42238.07 for funds
apportioned on the basis of the number and concentration of
unduplicated pupils pursuant to Sections 42238.02 and 42238.03.
   (e) If a county superintendent of schools has jurisdiction over a
single school district, the Superintendent shall perform the duties
specified in this section.
  SEC. 49.  For the 2014-15 fiscal year only, for tuition for pupils
attending schools in adjoining states, the Superintendent of Public
Instruction shall apportion to each applicable county superintendent
of schools an amount sufficient to pay the amounts previously
required or allowed to be paid for the 2013-14 fiscal year, pursuant
to Sections 2002 to 2006, inclusive, of the Education Code, as those
sections read on June 1, 2013.
  SEC. 50.  (a) The State Board of Education, working in
collaboration with the State Department of Education, shall report to
the Legislature no later than February 1, 2015, regarding the status
of implementation of the local control funding formula. At a
minimum, the report shall include all of the following:
   (1) A description of the implementation roles and responsibilities
of the State Department of Education, the State Board of Education,
the California Collaborative for Educational Excellence, the Fiscal
Crisis Management and Assistance Team, and county offices of
education for local control funding formula oversight and technical
assistance to local educational agencies.
   (2) A description of implementation challenges to date and efforts
made by state and local entities to address those challenges.
   (3) Observations of the State Department of Education and the
State Board of Education about the first year that local educational
agencies completed their local control and accountability plans.
   (4) The State Board of Education's long-term vision for local
control funding formula support and guidance to the field and which
agency or agencies would provide that support and guidance.
   (b) A report to be submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
  SEC. 51.  (a) The sum of four billion seven hundred forty-seven
million nine hundred fourteen thousand dollars ($4,747,914,000) is
hereby appropriated from the General Fund for the purposes of this
act as follows:
   (1) Four billion seven hundred twenty-one million nine hundred
seventy thousand dollars ($4,721,970,000) is appropriated to the
Superintendent of Public Instruction and shall be allocated pursuant
to the calculation in subdivision (b) of Section 42238.03 of the
Education Code.
   (2) Twenty-five million nine hundred forty-four thousand dollars
($25,944,000) is appropriated to the Superintendent of Public
Instruction and shall be allocated pursuant to the calculation in
subdivision (f) of Section 2575 of the Education Code.
   (b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation made
by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2014-15 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2014-15 fiscal
year.
  SEC. 52.  In regard to Section 22 of this act, the Legislature
finds and declares that a special law is necessary and that a general
law cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution because of the unique
fiscal challenges for purposes of teacher induction and training for
beginning teachers facing Alameda, Berkeley, San Leandro, and San
Lorenzo Unified School Districts.
  SEC. 53.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.