BILL NUMBER: SB 78 ENROLLED
BILL TEXT
PASSED THE SENATE JUNE 19, 2015
PASSED THE ASSEMBLY JUNE 19, 2015
AMENDED IN ASSEMBLY JUNE 16, 2015
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2015
An act to amend Sections 1240, 1622, 1623, 1624, 35160.5, 35736,
35757, 41203.7, 41320.1, 41329.55, 41341, 41344, 41376, 41376.1,
41544, 42127, 42127.1, 42127.2, 42127.3, 42127.8, 42238.01, 42280,
42282, 42283, 42284, 42285, 42286, 42287, 45037, 46602, 46603, 47630,
47630.5, 47635, 47663, 48310, 48359.5, 52315, 52319, 52327, 52329,
52334, 52335, 52335.12, and 63001 of, to amend the heading of Article
7 (commencing with Section 60117) of Chapter 1 of Part 33 of
Division 4 of Title 2 of, to repeal Sections 1242, 1242.5, 2509,
2550, 2550.1, 2550.2, 2550.4, 2550.5, 2550.6, 2550.7, 2551.3, 2557,
2557.5, 2558.1, 2558.3, 2558.4, 2558.45, 2558.46, 2558.5, 2558.6,
14022.5, 33128.2, 35735.3, 41209, 41334, 41338, 41610, 42238.4,
42238.41, 42238.42, 42238.43, 42238.44, 42238.445, 42238.45,
42238.46, 42238.48, 42238.485, 42238.49, 42238.7, 42238.8, 42238.9,
42238.95, 42238.11, 42238.12, 42238.13, 42238.14, 42238.145,
42238.146, 42238.17, 42238.23, 42239, 42240, 42240.1, 42241.3,
42241.7, 42243.7, 42244, 42245, 42281, 42303, 42604, 46201.1, 52324,
52324.5, 52335.1, 52335.2, 52335.3, 52335.4, 52335.5, 52335.6, and
60117 of, to repeal Article 3.5 (commencing with Section 2560) of
Chapter 12 of Part 2 of Division 1 of Title 1 of, and to repeal
Article 4.5 (commencing with Section 42290) of Chapter 7 of Part 24
of Division 3 of Title 2 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 78, Committee on Budget and Fiscal Review. Education finance:
local control funding formula.
(1) Existing law establishes the public school system in this
state, and, among other things, provides for the establishment of
county superintendents of schools, school districts, and charter
schools throughout the state and for their provision of instruction
at the public elementary and secondary schools these local
educational agencies maintain. Existing law, before July 1, 2013,
established a public school financing system that required funding
for county superintendents of schools and school districts to be
calculated pursuant to a revenue limit, as specified, and required
funding for charter schools to be calculated pursuant to a
general-purpose entitlement, except as provided, and required the
revenue limit and general-purpose entitlement to be composed of,
among other things, state aid and certain local revenues. Existing
law also establishes various categorical education programs under
which funding was provided for specific educational purposes.
Existing law, commencing July 1, 2013, revised and recast the
provisions related to the public financing system by requiring state
funding for county superintendents of schools, school districts, and
charter schools that previously received a general-purpose
entitlement to be calculated pursuant to a local control funding
formula, as specified.
This bill would, among other things, repeal provisions requiring
or authorizing many categorical education programs. The bill would
repeal provisions relating to the revenue limit and would replace
references to the former review limit and general-purpose entitlement
calculations with the references to the current local control
funding formula calculation. The bill would, commencing with the
2014-15 fiscal year, revise the authorization for a school
participating in a special assistance alternative authorized under
the federal National School Lunch Program to establish a base year
for purposes of the local control funding formula for determining
pupils eligible for free or reduced-price meals, as specified. The
bill would require specified information to be included in an
alternative household income data collection form for the federal
National School Lunch Program for purposes of the local control
funding formula. The bill would also change the funding calculations
for necessary small schools.
(2) Existing law requires a county superintendent of schools to
annually present a report, on or before August 15, to the governing
board of the school district and the Superintendent of Public
Instruction regarding the fiscal solvency of a school district with a
disapproved budget, qualified interim certification, or a negative
interim certification, or that is determined to be in a position of
fiscal uncertainty.
This bill would instead require a county superintendent of schools
to present the report on or before September 15.
(3) Existing law specifies how funds appropriated pursuant to a
specified budget item of the Budget Act of 2006 for specified county
offices of education for site visits shall be allocated.
This bill would delete that provision.
(4) Existing law, on or before July 1 of each fiscal year,
requires the county board of education to adopt an annual budget for
the budget year and file the budget with the Superintendent of Public
Instruction, the county board of supervisors, and the county
auditor. Existing law requires the Superintendent to examine the
budget, as specified, and, on or before August 15, approve or
disapprove the budget, as specified. If the Superintendent
disapproves the budget, existing law requires the county
superintendent of schools and the county board of education, on or
before September 8, to review the recommendations of the
Superintendent at a regularly scheduled meeting of the county board
of education and respond to those recommendations, as specified.
Existing law requires the Superintendent to examine a revised budget,
as specified, and, on or before October 8, to approve or disapprove
the revised budget. If the Superintendent disapproves the budget,
existing law requires him or her to call for the formation of a
budget review committee, and requires the budget review committee, on
or before October 31, to review the proposed budget, as specified.
If the budget review committee disapproves the budget of the county
office of education, existing law requires the Superintendent to
either approve or disapprove the budget, as specified. If the
Superintendent disapproves the budget, existing law authorizes the
Superintendent or his or her designee to do certain things for the
remainder of the year, including, among others, to develop and adopt,
in consultation with the county superintendent of schools and the
county board of education, on or before November 30, a fiscal plan
and budget for the county office of education, as specified.
This bill would, among other things, extend those dates by one
month to September 15, October 8, November 8, November 30, and
December 31, respectively.
(5) Existing law, on or before July 1 of each fiscal year,
requires a school district to adopt a budget for the subsequent
fiscal year and file the adopted budget with the county
superintendent of schools, as specified. Existing law requires the
county superintendent of schools to examine the adopted budget, as
specified, make certain determinations related to the adopted budget,
and, on or before August 15, approve, conditionally approve, or
disapprove the adopted budget for each school district, as specified.
If the county superintendent of schools conditionally approves or
disapproves the budget, existing law requires the governing board of
the school district, in conjunction with the county superintendent of
schools, on or before September 8, to review and respond to the
recommendations of the county superintendent of schools, as
specified. Existing law requires the county superintendent of schools
to examine the revised budget to make certain determinations and, on
or before October 8, to approve or disapprove the revised budget, as
specified. If the county superintendent of schools disapproves the
budget, existing law requires him or her to call for the formation of
a budget review committee, and requires the budget review committee,
on or before October 31, to review the proposed budget, as
specified. If the budget review committee disapproves the budget of
the school district, existing law requires the Superintendent of
Public Instruction to either approve or disapprove the budget, as
specified. If the Superintendent disapproves the budget, existing law
requires the county superintendent of schools to do certain things,
including, among others, on or before November 30, develop and adopt,
in consultation with the governing board of the school district and
the Superintendent, a fiscal plan and budget for the school district,
as specified.
This bill would, among other things, extend those dates by one
month to September 15, October 8, November 8, November 30, and
December 31, respectively.
(6) This bill would appropriate $5,994,417,000 from the General
Fund to the Superintendent of Public Instruction for purposes of
allocating those funds to school districts and charter schools
pursuant to the local control funding formula for those local
educational agencies.
(7) This bill also would make conforming changes, correct
cross-references, delete obsolete provisions, and make other
nonsubstantive changes.
(8) 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.
(9) 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. Section 1240 of the Education Code is amended to read:
1240. The county superintendent of schools shall do all of the
following:
(a) Superintend the schools of his or her county.
(b) Maintain responsibility for the fiscal oversight of each
school district in his or her county pursuant to the authority
granted by this code.
(c) (1) Visit and examine each school in his or her county at
reasonable intervals to observe its operation and to learn of its
problems. He or she annually may present a report of the state of the
schools in his or her county, and of his or her office, including,
but not limited to, his or her observations while visiting the
schools, to the board of education and the board of supervisors of
his or her county.
(2) (A) For fiscal years 2004-05 to 2006-07, inclusive, to the
extent that funds are appropriated for purposes of this paragraph,
the county superintendent, or his or her designee, annually shall
submit a report, at a regularly scheduled November board meeting, to
the governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2003 base Academic Performance
Index (API), as described in subdivision (b) of Section 17592.70, and
shall include, among other things, his or her observations while
visiting the schools and his or her determinations for each school
regarding the status of all of the circumstances listed in
subparagraph (I) and teacher misassignments and teacher vacancies. As
a condition for receipt of funds, the county superintendent, or his
or her designee, shall use a standardized template to report the
circumstances listed in subparagraph (I) and teacher misassignments
and teacher vacancies, unless the current annual report being used by
the county superintendent, or his or her designee, already includes
those details for each school.
(B) Commencing with the 2007-08 fiscal year, the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county describing the state
of the schools in the county or of his or her office that are ranked
in deciles 1 to 3, inclusive, of the 2006 base API, pursuant to
former Section 52056, as that section read on June 30, 2013. The
annual report shall include the determinations for each school made
by the county superintendent, or his or her designee, regarding the
status of all of the circumstances listed in subparagraph (I) and
teacher misassignments and teacher vacancies, and the county
superintendent, or his or her designee, shall use a standardized
template to report the circumstances listed in subparagraph (I) and
teacher misassignments and teacher vacancies, unless the current
annual report being used by the county superintendent, or his or her
designee, already includes those details with the same level of
specificity that is otherwise required by this subdivision. For
purposes of this section, schools ranked in deciles 1 to 3,
inclusive, on the 2006 base API shall include schools determined by
the department to meet either of the following:
(i) The school meets all of the following criteria:
(I) Does not have a valid base API score for 2006.
(II) Is operating in fiscal year 2007-08 and was operating in
fiscal year 2006-07 during the Standardized Testing and Reporting
(STAR) Program testing period.
(III) Has a valid base API score for 2005 that was ranked in
deciles 1 to 3, inclusive, in that year.
(ii) The school has an estimated base API score for 2006 that
would be in deciles 1 to 3, inclusive.
(C) The department shall estimate an API score for any school
meeting the criteria of subclauses (I) and (II) of clause (i) of
subparagraph (B) and not meeting the criteria of subclause (III) of
clause (i) of subparagraph (B), using available test scores and
weighting or corrective factors it deems appropriate. The department
shall post the API scores on its Internet Web site on or before May
1.
(D) For purposes of this section, references to schools ranked in
deciles 1 to 3, inclusive, on the 2006 base API shall exclude schools
operated by county offices of education pursuant to Section 56140,
as determined by the department.
(E) (i) Commencing with the 2010-11 fiscal year and every third
year thereafter, the Superintendent shall identify a list of schools
ranked in deciles 1 to 3, inclusive, of the API for which the county
superintendent, or his or her designee, annually shall submit a
report, at a regularly scheduled November board meeting, to the
governing board of each school district under his or her
jurisdiction, the county board of education of his or her county, and
the board of supervisors of his or her county that describes the
state of the schools in the county or of his or her office that are
ranked in deciles 1 to 3, inclusive, of the base API as defined in
clause (ii).
(ii) For the 2010-11 fiscal year, the list of schools ranked in
deciles 1 to 3, inclusive, of the base API shall be updated using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the 2009 base
API and thereafter shall be updated every third year using the
criteria set forth in clauses (i) and (ii) of subparagraph (B),
subparagraph (C), and subparagraph (D), as applied to the base API of
the year preceding the third year consistent with clause (i).
(iii) The annual report shall include the determinations for each
school made by the county superintendent, or his or her designee,
regarding the status of all of the circumstances listed in
subparagraph (I) and teacher misassignments and teacher vacancies,
and the county superintendent, or his or her designee, shall use a
standardized template to report the circumstances listed in
subparagraph (I) and teacher misassignments and teacher vacancies,
unless the current annual report being used by the county
superintendent, or his or her designee, already includes those
details with the same level of specificity that is otherwise required
by this subdivision.
(F) The county superintendent of the Counties of Alpine, Amador,
Del Norte, Mariposa, Plumas, and Sierra, and the City and County of
San Francisco shall contract with another county office of education
or an independent auditor to conduct the required visits and make all
reports required by this paragraph.
(G) On a quarterly basis, the county superintendent, or his or her
designee, shall report the results of the visits and reviews
conducted that quarter to the governing board of the school district
at a regularly scheduled meeting held in accordance with public
notification requirements. The results of the visits and reviews
shall include the determinations of the county superintendent, or his
or her designee, for each school regarding the status of all of the
circumstances listed in subparagraph (I) and teacher misassignments
and teacher vacancies. If the county superintendent, or his or her
designee, conducts no visits or reviews in a quarter, the quarterly
report shall report that fact.
(H) The visits made pursuant to this paragraph shall be conducted
at least annually and shall meet the following criteria:
(i) Minimize disruption to the operation of the school.
(ii) Be performed by individuals who meet the requirements of
Section 45125.1.
(iii) Consist of not less than 25 percent unannounced visits in
each county. During unannounced visits in each county, the county
superintendent shall not demand access to documents or specific
school personnel. Unannounced visits shall only be used to observe
the condition of school repair and maintenance, and the sufficiency
of instructional materials, as defined by Section 60119.
(I) The priority objective of the visits made pursuant to this
paragraph shall be to determine the status of all of the following
circumstances:
(i) Sufficient textbooks as defined in Section 60119 and as
specified in subdivision (i).
(ii) The condition of a facility that poses an emergency or urgent
threat to the health or safety of pupils or staff, as described in
school district policy or paragraph (1) of subdivision (c) of Section
17592.72.
(iii) The accuracy of data reported on the school accountability
report card with respect to the availability of sufficient textbooks
and instructional materials, as defined by Section 60119, and the
safety, cleanliness, and adequacy of school facilities, including
good repair, as required by Sections 17014, 17032.5, 17070.75, and
17089.
(J) The county superintendent may make the status determinations
described in subparagraph (I) during a single visit or multiple
visits. In determining whether to make a single visit or multiple
visits for this purpose, the county superintendent shall take into
consideration factors such as cost-effectiveness, disruption to the
schoolsite, deadlines, and the availability of qualified reviewers.
(K) If the county superintendent determines that the condition of
a facility poses an emergency or urgent threat to the health or
safety of pupils or staff as described in school district policy or
paragraph (1) of subdivision (c) of Section 17592.72, or is not in
good repair, as specified in subdivision (d) of Section 17002 and
required by Sections 17014, 17032.5, 17070.75, and 17089, the county
superintendent, among other things, may do any of the following:
(i) Return to the school to verify repairs.
(ii) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance if the school district has
not provided evidence of successful repairs within 30 days of the
visit of the county superintendent or, for major projects, has not
provided evidence that the repairs will be conducted in a timely
manner. The report may be provided to the governing board of the
school district. If the report is provided to the school district, it
shall be presented at a regularly scheduled meeting held in
accordance with public notification requirements. The county
superintendent shall post the report on his or her Internet Web site.
The report shall be removed from the Internet Web site when the
county superintendent verifies the repairs have been completed.
(d) Distribute all laws, reports, circulars, instructions, and
blanks that he or she may receive for the use of the school officers.
(e) Annually, on or before September 15, present a report to the
governing board of the school district and the Superintendent
regarding the fiscal solvency of a school district with a disapproved
budget, qualified interim certification, or a negative interim
certification, or that is determined to be in a position of fiscal
uncertainty pursuant to Section 42127.6.
(f) Keep in his or her office the reports of the Superintendent.
(g) Keep a record of his or her official acts, and of all the
proceedings of the county board of education, including a record of
the standing, in each study, of all applicants for certificates who
have been examined, which shall be open to the inspection of an
applicant or his or her authorized agent.
(h) Enforce the course of study.
(i) (1) Enforce the use of state textbooks and instructional
materials and of high school textbooks and instructional materials
regularly adopted by the proper authority in accordance with Section
51050.
(2) For purposes of this subdivision, sufficient textbooks or
instructional materials has the same meaning as in subdivision (c) of
Section 60119.
(3) (A) Commencing with the 2005-06 school year, if a school is
ranked in any of deciles 1 to 3, inclusive, of the base API, as
specified in paragraph (2) of subdivision (c), and not currently
under review pursuant to a state or federal intervention program, the
county superintendent specifically shall review that school at least
annually as a priority school. A review conducted for purposes of
this paragraph shall be completed by the fourth week of the school
year. For the 2004-05 fiscal year only, the county superintendent
shall make a diligent effort to conduct a visit to each school
pursuant to this paragraph within 120 days of receipt of funds for
this purpose.
(B) In order to facilitate the review of instructional materials
before the fourth week of the school year, the county superintendent
in a county with 200 or more schools that are ranked in any of
deciles 1 to 3, inclusive, of the base API, as specified in paragraph
(2) of subdivision (c), may utilize a combination of visits and
written surveys of teachers for the purpose of determining
sufficiency of textbooks and instructional materials in accordance
with subparagraph (A) of paragraph (1) of subdivision (a) of Section
60119 and as defined in subdivision (c) of Section 60119. If a county
superintendent elects to conduct written surveys of teachers, the
county superintendent shall visit the schools surveyed within the
same academic year to verify the accuracy of the information reported
on the surveys. If a county superintendent surveys teachers at a
school in which the county superintendent has found sufficient
textbooks and instructional materials for the previous two
consecutive years and determines that the school does not have
sufficient textbooks or instructional materials, the county
superintendent shall within 10 business days provide a copy of the
insufficiency report to the school district as set forth in paragraph
(4).
(C) For purposes of this paragraph, "written surveys" may include
paper and electronic or online surveys.
(4) If the county superintendent of schools determines that a
school does not have sufficient textbooks or instructional materials
in accordance with subparagraph (A) of paragraph (1) of subdivision
(a) of Section 60119 and as defined by subdivision (c) of Section
60119, the county superintendent shall do all of the following:
(A) Prepare a report that specifically identifies and documents
the areas or instances of noncompliance.
(B) Provide within five business days of the review, a copy of the
report to the school district, as provided in subdivision (c), or,
if applicable, provide a copy of the report to the school district
within 10 business days pursuant to subparagraph (B) of paragraph
(3).
(C) Provide the school district with the opportunity to remedy the
deficiency. The county superintendent shall ensure remediation of
the deficiency no later than the second month of the school term.
(D) If the deficiency is not remedied as required pursuant to
subparagraph (C), the county superintendent shall request the
department to purchase the textbooks or instructional materials
necessary to comply with the sufficiency requirement of this
subdivision. If the department purchases textbooks or instructional
materials for the school district, the department shall issue a
public statement at the first regularly scheduled meeting of the
state board occurring immediately after the department receives the
request of the county superintendent and that meets the applicable
public notice requirements, indicating that the district
superintendent and the governing board of the school district failed
to provide pupils with sufficient textbooks or instructional
materials as required by this subdivision. Before purchasing the
textbooks or instructional materials, the department shall consult
with the school district to determine which textbooks or
instructional materials to purchase. The amount of funds necessary
for the purchase of the textbooks and materials is a loan to the
school district receiving the textbooks or instructional materials.
Unless the school district repays the amount owed based upon an
agreed-upon repayment schedule with the Superintendent, the
Superintendent shall notify the Controller and the Controller shall
deduct an amount equal to the total amount used to purchase the
textbooks and materials from the next principal apportionment of the
school district or from another apportionment of state funds.
(j) Preserve carefully all reports of school officers and
teachers.
(k) Deliver to his or her successor, at the close of his or her
official term, all records, books, documents, and papers belonging to
the office, taking a receipt for them, which shall be filed with the
department.
( l ) (1) Submit two reports during the fiscal year to
the county board of education in accordance with the following:
(A) The first report shall cover the financial and budgetary
status of the county office of education for the period ending
October 31. The second report shall cover the period ending January
31. Both reports shall be reviewed by the county board of education
and approved by the county superintendent no later than 45 days after
the close of the period being reported.
(B) As part of each report, the county superintendent shall
certify in writing whether or not the county office of education is
able to meet its financial obligations for the remainder of the
fiscal year and, based on current forecasts, for two subsequent
fiscal years. The certifications shall be classified as positive,
qualified, or negative, pursuant to standards prescribed by the
Superintendent, for the purposes of determining subsequent state
agency actions pursuant to Section 1240.1. For purposes of this
subdivision, a negative certification shall be assigned to a county
office of education that, based upon current projections, will not
meet its financial obligations for the remainder of the fiscal year
or for the subsequent fiscal year. A qualified certification shall be
assigned to a county office of education that may not meet its
financial obligations for the current fiscal year or two subsequent
fiscal years. A positive certification shall be assigned to a county
office of education that will meet its financial obligations for the
current fiscal year and subsequent two fiscal years. In accordance
with those standards, the Superintendent may reclassify a
certification. If a county office of education receives a negative
certification, the Superintendent, or his or her designee, may
exercise the authority set forth in subdivision (c) of Section 1630.
Copies of each certification, and of the report containing that
certification, shall be sent to the Superintendent at the time the
certification is submitted to the county board of education. Copies
of each qualified or negative certification and the report containing
that certification shall be sent to the Controller at the time the
certification is submitted to the county board of education.
(i) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each county office of education budget shall project the same
level of revenue per unit of average daily attendance as it received
in the 2010-11 fiscal year and shall maintain staffing and program
levels commensurate with that level.
(ii) For the 2011-12 fiscal year, the county superintendent shall
not be required to certify in writing whether or not the county
office of education is able to meet its financial obligations for the
two subsequent fiscal years.
(iii) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, the Superintendent, as a condition on approval of a county
office of education budget, shall not require a county office of
education to project a lower level of revenue per unit of average
daily attendance than it received in the 2010-11 fiscal year nor
require the county superintendent to certify in writing whether or
not the county office of education is able to meet its financial
obligations for the two subsequent fiscal years.
(2) All reports and certifications required under this subdivision
shall be in a format or on forms prescribed by the Superintendent,
and shall be based on standards and criteria for fiscal stability
adopted by the state board pursuant to Section 33127. The reports and
supporting data shall be made available by the county superintendent
to an interested party upon request.
(3) This subdivision does not preclude the submission of
additional budgetary or financial reports by the county
superintendent to the county board of education or to the
Superintendent.
(4) The county superintendent is not responsible for the fiscal
oversight of the community colleges in the county, however, he or she
may perform financial services on behalf of those community
colleges.
(m) If requested, act as agent for the purchase of supplies for
the city and high school districts of his or her county.
(n) For purposes of Section 44421.5, report to the Commission on
Teacher Credentialing the identity of a certificated person who
knowingly and willingly reports false fiscal expenditure data
relative to the conduct of an educational program. This requirement
applies only if, in the course of his or her normal duties, the
county superintendent discovers information that gives him or her
reasonable cause to believe that false fiscal expenditure data
relative to the conduct of an educational program has been reported.
(o) If any activities authorized pursuant to this section are
found to be a state reimbursable mandate pursuant to Section 6 of
Article XIII B of the California Constitution, funding provided for
school districts and county offices of education pursuant to Sections
2574, 2575, 42238.02, and 42238.03 shall be used to directly offset
any mandated costs.
SEC. 2. Section 1242 of the Education Code is repealed.
SEC. 3. Section 1242.5 of the Education Code is repealed.
SEC. 4. Section 1622 of the Education Code is amended to read:
1622. (a) On or before July 1 of each fiscal year, the county
board of education shall adopt an annual budget for the budget year
and shall file the budget with the Superintendent, the county board
of supervisors, and the county auditor. The budget, and supporting
data, shall be maintained and made available for public review. The
budget shall indicate the date, time, and location at which the
county board of education held the public hearing required under
Section 1620. For the 2014-15 fiscal year and each fiscal year
thereafter, the county board of education shall not adopt a budget
before the county board of education adopts a local control and
accountability plan or approves an update to an existing local
control and accountability plan if an existing local control and
accountability plan or update to a local control and accountability
plan is not effective during the budget year. The county board of
education shall not adopt a budget that does not include the
expenditures identified in the local control and accountability plan
and any annual update to the local control and accountability plan
that will be effective for the budget year. Notwithstanding any other
provision of this article, for the 2014-15 fiscal year and each
fiscal year thereafter, the budget shall not be adopted or approved
by the Superintendent before a local control and accountability plan
or update to an existing local control and accountability plan for
the budget year is approved.
(b) (1) The Superintendent shall examine the budget to determine
if it (A) complies with the standards and criteria adopted by the
state board pursuant to Section 33127 for application to final local
educational agency budgets, (B) allows the county office of education
to meet its financial obligations during the fiscal year, and (C) is
consistent with a financial plan that will enable the county office
of education to satisfy its multiyear financial commitments. In
addition, the Superintendent shall identify any technical corrections
to the budget that must be made. On or before September 15, the
Superintendent shall approve or disapprove the budget and, in the
event of a disapproval, transmit to the county office of education in
writing his or her recommendations regarding revision of the budget
and the reasons for those recommendations.
(2) For the 2014-15 fiscal year and each fiscal year thereafter,
the Superintendent shall disapprove a budget if any of the following
occur:
(A) The Superintendent has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by a county board of education pursuant to
Section 52070.5 that is effective for the budget year.
(B) The Superintendent determines that the budget does not include
the expenditures necessary to implement the local control and
accountability plan or an annual update to the local control and
accountability plan that is effective for that budget year.
(c) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before October
8, the county superintendent of schools and the county board of
education shall review the recommendations of the Superintendent at a
regularly scheduled meeting of the county board of education and
respond to those recommendations. That response shall include any
revisions to the adopted budget and other proposed actions to be
taken, if any, as a result of those recommendations.
(d) (1) The Superintendent shall examine the revised budget as
provided in subdivision (c) to determine if it complies with the
standards and criteria adopted by the state board pursuant to Section
33127 for application to final local educational agency budgets and,
on or before November 8, shall approve or disapprove the revised
budget. For the 2014-15 fiscal year and each fiscal year thereafter,
the Superintendent shall disapprove a revised budget if the
Superintendent determines that the revised budget does not include
the expenditures necessary to implement the local control and
accountability plan or an annual update to the local control and
accountability plan approved by the Superintendent pursuant to
Section 52070.5 that is effective for the budget year. If the
Superintendent disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 1623.
(2) Notwithstanding any other law, for the 2014-15 fiscal year and
each fiscal year thereafter, if the Superintendent disapproves the
budget for the sole reason that the Superintendent has not approved a
local control and accountability plan or an annual update to the
local control and accountability plan filed by the county board of
education pursuant to
Section 52070.5, the Superintendent shall not call for the formation
of a budget review committee pursuant to Section 1623.
(e) Not later than 45 days after the Governor signs the annual
Budget Act, the county office of education shall make available for
public review any revisions in revenues and expenditures that it has
made to its budget to reflect the funding made available by that
Budget Act.
SEC. 5. Section 1623 of the Education Code is amended to read:
1623. (a) The budget review committee shall be composed of three
persons and shall be selected by the county superintendent of schools
and the county board of education solely from a list of no fewer
than five candidates provided by the Superintendent. The candidates
shall be persons who have expertise in the management of a school
district or county office of education, including, but not be limited
to, the fiscal and educational aspects of that management.
(b) No later than five working days after the receipt of the
candidate list described in subdivision (a), the county
superintendent of schools and the county board of education shall
select the budget review committee. If the county superintendent of
schools and the county board of education fail to select a committee
within the period of time permitted by this subdivision, the
Superintendent instead shall select and convene the budget review
committee no later than 10 working days after the receipt by the
county superintendent of schools and the county board of education of
the candidate list.
(c) On or before November 30, the budget review committee shall
review the proposed budget of the county office of education and the
underlying fiscal policies of that county office of education, and
shall transmit to the Superintendent, the county superintendent of
schools, and the county board of education either of the following:
(1) The recommendation that the budget be approved.
(2) A report disapproving the budget and setting forth
recommendations for revisions to the budget that would enable the
county office of education to meet its financial obligations both in
the budget year and with regard to multiyear financial commitments.
(d) Upon the request of the budget review committee, the
Superintendent may extend the deadline set forth in subdivision (c)
for a period of not more than 15 working days.
(e) The Superintendent shall develop criteria and procedures
governing the performance by budget review committees of their duties
under this section.
(f) The members of the budget review committee shall be reimbursed
for their services and associated expenses while on official
business, at rates established by the state board.
SEC. 6. Section 1624 of the Education Code is amended to read:
1624. (a) If the budget review committee established pursuant to
Section 1623 disapproves the budget of the county office of
education, within five working days following the receipt of the
committee's report, the county superintendent of schools and the
county board of education may submit a response to the
Superintendent, including any revisions to the adopted budget and any
other proposed action to be taken as a result of the recommendations
of the budget review committee.
(b) Based upon the recommendations of the budget review committee
provided pursuant to subdivision (c) of Section 1623, and any
response provided pursuant to subdivision (a), the Superintendent
shall either approve or disapprove the budget of the county office of
education. If the Superintendent disapproves the budget, the
superintendent or his or her designee may do any of the following for
the remainder of the current fiscal year:
(1) On or before December 31, develop and adopt, in consultation
with the county superintendent of schools and the county board of
education, a fiscal plan and budget for the county office of
education that will allow the county office of education to meet its
financial obligations both in the budget year and with regard to the
multiyear financial commitments. The county board of education and
the county superintendent of schools shall govern the operation of
the county office of education for the budget year in accordance with
that fiscal plan and budget. The deadline set forth in this
paragraph shall be modified to reflect any extension granted under
subdivision (d) of Section 1623.
(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is
inconsistent with the fiscal plan and budget adopted pursuant to
paragraph (1). The Superintendent shall inform the county board of
education and the county superintendent of schools in writing of his
or her justification for any exercise of authority under this
paragraph.
(3) Monitor and review the operation of the county office of
education.
(4) Determine the need for additional staff and may employ, at
county office of education expense, short-term analytical assistance
or expertise to validate financial information if the county does not
have the expertise or staff.
(5) Require the county office of education to encumber all
contracts and other obligations, to prepare appropriate cashflow
analyses and monthly or quarterly budget revisions, and to
appropriately record all receivables and payables.
(6) Determine whether there are any financial problem areas and
may employ, at county office of education expense, a certified public
accounting firm to investigate financial problem areas.
(7) Withhold compensation of the members of the county board of
education and the county superintendent for failure to provide
requested financial information.
(c) The county office of education shall pay reasonable fees
charged by the Superintendent of Public Instruction for actual
administrative expenses incurred pursuant to subdivision (b), or
costs associated with improving the county office of education's
financial management practices.
(d) This section shall not be construed to authorize the
Superintendent to abrogate any provision of a collective bargaining
agreement that was entered into by a county office of education prior
to the date upon which the Superintendent disapproved the budget of
the county office of education pursuant to subdivision (b).
(e) As he or she deems necessary for the purposes set forth in
subdivision (b), the Superintendent may seek from the county office
of education, or otherwise obtain, additional information regarding
the budget or operations of the county office of education, through a
financial or management review of the county office of education, a
cashflow projection, or other appropriate means.
SEC. 7. Section 2509 of the Education Code is repealed.
SEC. 8. Section 2550 of the Education Code is repealed.
SEC. 9. Section 2550.1 of the Education Code is repealed.
SEC. 10. Section 2550.2 of the Education Code is repealed.
SEC. 11. Section 2550.4 of the Education Code is repealed.
SEC. 12. Section 2550.5 of the Education Code is repealed.
SEC. 13. Section 2550.6 of the Education Code is repealed.
SEC. 14. Section 2550.7 of the Education Code is repealed.
SEC. 15. Section 2551.3 of the Education Code is repealed.
SEC. 16. Section 2557 of the Education Code is repealed.
SEC. 17. Section 2557.5 of the Education Code is repealed.
SEC. 18. Section 2558.1 of the Education Code is repealed.
SEC. 19. Section 2558.3 of the Education Code is repealed.
SEC. 20. Section 2558.4 of the Education Code is repealed.
SEC. 21. Section 2558.45 of the Education Code is repealed.
SEC. 22. Section 2558.46 of the Education Code is repealed.
SEC. 23. Section 2558.5 of the Education Code is repealed.
SEC. 24. Section 2558.6 of the Education Code is repealed.
SEC. 25. Article 3.5 (commencing with Section 2560) of Chapter 12
of Part 2 of Division 1 of Title 1 of the Education Code is repealed.
SEC. 26. Section 14022.5 of the Education Code, as added by
Section 2 of Chapter 82 of the Statutes of 1989, is repealed.
SEC. 27. Section 33128.2 of the Education Code is repealed.
SEC. 28. Section 35160.5 of the Education Code is amended to read:
35160.5. (a) The governing board of a school district that
maintains one or more schools containing any of grades 7 to 12,
inclusive, as a condition for the receipt of inflation adjustments
pursuant to Section 42238.02, as implemented by Section 42238.03,
shall establish a school district policy regarding participation in
extracurricular and cocurricular activities by pupils in grades 7 to
12, inclusive. The criteria, which shall be applied to
extracurricular and cocurricular activities, shall ensure that pupil
participation is conditioned upon satisfactory educational progress
in the previous grading period.
(1) For purposes of this subdivision, "extracurricular activity"
means a program that has all of the following characteristics:
(A) The program is supervised or financed by the school district.
(B) Pupils participating in the program represent the school
district.
(C) Pupils exercise some degree of freedom in either the
selection, planning, or control of the program.
(D) The program includes both preparation for performance and
performance before an audience or spectators.
(2) For purposes of this subdivision, an "extracurricular activity"
is not part of the regular school curriculum, is not graded, does
not offer credit, and does not take place during classroom time.
(3) For purposes of this subdivision, a "cocurricular activity" is
defined as a program that may be associated with the curriculum in a
regular classroom.
(4) Any teacher graded or required program or activity for a
course that satisfies the entrance requirements for admission to the
California State University or the University of California is not an
extracurricular or cocurricular activity as defined by this section.
(5) For purposes of this subdivision, "satisfactory educational
progress" shall include, but not necessarily be limited to, both of
the following:
(A) Maintenance of minimum passing grades, which is defined as at
least a 2.0 grade point average in all enrolled courses on a 4.0
scale.
(B) Maintenance of minimum progress toward meeting the high school
graduation requirements prescribed by the governing board.
(6) For purposes of this subdivision, "previous grading period"
does not include a grading period in which the pupil was not in
attendance for all, or a majority of, the grading period due to
absences excused by the school for reasons such as serious illness or
injury, approved travel, or work. In that event, "previous grading
period" is deemed to mean the grading period immediately prior to the
grading period or periods excluded pursuant to this paragraph.
(7) A program that has, as its primary goal, the improvement of
academic or educational achievements of pupils is not an
extracurricular or cocurricular activity as defined by this section.
(8) The governing board of each school district may adopt, as part
of its policy established pursuant to this subdivision, provisions
that would allow a pupil who does not achieve satisfactory
educational progress, as defined in paragraph (5), in the previous
grading period to remain eligible to participate in extracurricular
and cocurricular activities during a probationary period. The
probationary period shall not exceed one semester in length, but may
be for a shorter period of time, as determined by the governing board
of the school district. A pupil who does not achieve satisfactory
educational progress, as defined in paragraph (5), during the
probationary period shall not be allowed to participate in
extracurricular and cocurricular activities in the subsequent grading
period.
(9) Nothing in this subdivision shall preclude the governing board
of a school district from imposing a more stringent academic
standard than that imposed by this subdivision. If the governing
board of a school district imposes a more stringent academic
standard, the governing board shall establish the criteria for
participation in extracurricular and cocurricular activities at a
meeting open to the public pursuant to Section 35145.
(10) The governing board of each school district annually shall
review the school district policies adopted pursuant to the
requirements of this section.
(b) (1) On or before July 1, 1994, the governing board of each
school district, as a condition for the receipt of school
apportionments from the state school fund, shall adopt rules and
regulations establishing a policy of open enrollment within the
district for residents of the district. This requirement does not
apply to a school district that has only one school or a school
district with schools that do not serve any of the same grade levels.
(2) The policy shall include all of the following elements:
(A) It shall provide that the parent or guardian of each schoolage
child who is a resident in the district may select the schools the
child shall attend, irrespective of the particular locations of his
or her residence within the district, except that school districts
shall retain the authority to maintain appropriate racial and ethnic
balances among their respective schools at the school districts'
discretion or as specified in applicable court-ordered or voluntary
desegregation plans.
(B) It shall include a selection policy for a school that receives
requests for admission in excess of the capacity of the school that
ensures that selection of pupils to enroll in the school is made
through a random, unbiased process that prohibits an evaluation of
whether a pupil should be enrolled based upon his or her academic or
athletic performance. The governing board of a school district shall
calculate the capacity of the schools in the district for purposes of
this subdivision in a nonarbitrary manner using pupil enrollment and
available space. However, school districts may employ existing
entrance criteria for specialized schools or programs if the criteria
are uniformly applied to all applicants. This subdivision shall not
be construed to prohibit school districts from using academic
performance to determine eligibility for, or placement in, programs
for gifted and talented pupils established pursuant to former Chapter
8 (commencing with Section 52200) of Part 28 of Division 4, as that
chapter read on January 1, 2014.
(C) It shall provide that no pupil who currently resides in the
attendance area of a school shall be displaced by pupils transferring
from outside the attendance area.
(3) Notwithstanding the requirement of subparagraph (B) of
paragraph (2) that the policy include a selection policy for a school
that receives requests for admission in excess of the capacity of
the school that ensures that the selection is made through a random,
unbiased process, the policy may include either of the following
elements:
(A) (i) It may provide that special circumstances exist that might
be harmful or dangerous to a particular pupil in the current
attendance area of the pupil, including, but not necessarily limited
to, threats of bodily harm or threats to the emotional stability of
the pupil, that serve as a basis for granting a priority of
attendance outside the current attendance area of the pupil. A
finding of harmful or dangerous special circumstances shall be based
upon either of the following:
(I) A written statement from a representative of the appropriate
state or local agency, including, but not necessarily limited to, a
law enforcement official or a social worker, or properly licensed or
registered professionals, including, but not necessarily limited to,
psychiatrists, psychologists, or marriage and family therapists.
(II) A court order, including a temporary restraining order and
injunction, issued by a judge.
(ii) A finding of harmful or dangerous special circumstances
pursuant to this subparagraph may be used by a school district to
approve transfers within the district to schools that have been
deemed by the school district to be at capacity and otherwise closed
to transfers that are not based on harmful or dangerous special
circumstances.
(B) It may provide that schools receiving requests for admission
shall give priority for attendance to siblings of pupils already in
attendance in that school and to pupils whose parent or legal
guardian is assigned to that school as his or her primary place of
employment.
(4) To the extent required and financed by federal law and at the
request of the pupil's parent or guardian, each school district shall
provide transportation assistance to the pupil.
SEC. 29. Section 35735.3 of the Education Code is repealed.
SEC. 30. Section 35736 of the Education Code is amended to read:
35736. Plans and recommendations may include a proposal for
dividing the property, other than real property, and obligations of
any school district proposed to be divided between two or more school
districts, or proposed to be partially included in one or more
school districts. As used in this section, "property" includes funds,
cash on hand, and moneys due but uncollected on the date
reorganization becomes effective for all purposes, and state
apportionments based on average daily attendance earned in the year
immediately preceding the date reorganization becomes effective for
all purposes. In providing for this division, the plans and
recommendations may consider the assessed valuation of each portion
of the school district, the local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, per
pupil in each school district, the number of children of school age
residing in each portion of the school district, the value and
location of the school property, and such other matters as may be
deemed pertinent and equitable. Any such proposal shall be an
integral part of the proposal and not a separate proposition.
SEC. 31. Section 35757 of the Education Code is amended to read:
35757. The county superintendent of schools shall prepare a
statement of official information and statistics relating to the
proposed reorganization that shall include, but is not limited to,
the plans and recommendations, the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per pupil, the rate of growth, the expected enrollment, and
the support from the state that can be expected if such area
maintains an adequate school program. Such statistics shall be based
upon the school year last completed before the date of the election.
SEC. 32. Section 41203.7 of the Education Code is amended to read:
41203.7. (a) Notwithstanding any other law, a supplemental
appropriation shall be made from the General Fund for the support of
school districts, as defined in Section 41302.5, in each fiscal year
for the purposes set forth in subdivision (c). The amount of that
supplemental appropriation shall be equal to the sum of the amount
allocated to school districts pursuant to this section in the prior
fiscal year and 25 percent of the amount, if any, allocated to school
districts in the prior fiscal year pursuant to Section 8.5 of
Article XVI of the California Constitution. That amount shall be
adjusted annually for changes in enrollment, and for the change in
the cost of living pursuant to paragraph (1) of subdivision (e) of
Section 8 of Article XIII B of the California Constitution.
(b) The funds appropriated for the purposes of subdivision (a)
shall be allocated to each school district in an equal amount per
unit of enrollment, in accordance with the allocation procedure set
forth in subdivision (c) of Section 8.5 of Article XVI of the
California Constitution.
(c) The amount allocated to each school district pursuant to this
section shall be used only for the reduction of class size in any
grade level or subject area. That class size reduction shall occur in
any manner determined by the governing board of the school district.
Not later than 90 days following each fiscal year in which a school
district receives funding pursuant to this section, the governing
board of the school district shall certify in writing to the
Superintendent that all expenditures of that funding were in
compliance with this subdivision.
SEC. 33. Section 41209 of the Education Code is repealed.
SEC. 34. Section 41320.1 of the Education Code is amended to read:
41320.1. Acceptance by the school district of the apportionments
made pursuant to Section 41320 constitutes the agreement by the
school district to all of the following conditions:
(a) The Superintendent shall appoint a trustee who has recognized
expertise in management and finance and may employ, on a short-term
basis, staff necessary to assist the trustee, including, but not
limited to, certified public accountants, as follows:
(1) The expenses incurred by the trustee and necessary staff shall
be borne by the school district.
(2) The Superintendent shall establish the terms and conditions of
the employment, including the remuneration of the trustee. The
trustee shall serve at the pleasure of, and report directly to, the
Superintendent.
(3) The trustee, and necessary staff, shall serve until the school
district has adequate fiscal systems and controls in place, the
Superintendent has determined that the school district's future
compliance with the fiscal plan approved for the school district
under Section 41320 is probable, and the Superintendent decides to
terminate the trustee's appointment, but in no event, for less than
three years. The Superintendent shall notify the county
superintendent of schools, the Legislature, the Department of
Finance, and the Controller no less than 60 days before the time that
the Superintendent expects these conditions to be met.
(4) Before the school district repays the loan, including
interest, the recipient of the loan shall select an auditor from a
list established by the Superintendent and the Controller to conduct
an audit of its fiscal systems. If the fiscal systems are deemed to
be inadequate, the Superintendent may retain the trustee until the
deficiencies are corrected. The cost of this audit and any additional
cost of the trustee shall be borne by the school district.
(5) Notwithstanding any other law, all reports submitted to the
trustee are public records.
(6) To facilitate the appointment of the trustee and the
employment of necessary staff, for purposes of this section, the
Superintendent is exempt from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code and Part 2 (commencing with Section 10100)
of Division 2 of the Public Contract Code.
(7) Notwithstanding any other law, the Superintendent may appoint
an employee of the department to act as trustee for up to the
duration of the trusteeship. The salary and benefits of that employee
shall be established by the Superintendent and paid by the school
district. During the time of appointment, the employee is an employee
of the school district, but shall remain in the same retirement
system under the same plan as if the employee had remained in the
department. Upon the expiration or termination of the appointment,
the employee shall have the right to return to his or her former
position, or to a position at substantially the same level as that
position, with the department. The time served in the appointment
shall be counted for all purposes as if the employee had served that
time in his or her former position with the department.
(b) (1) The trustee appointed by the Superintendent shall monitor
and review the operation of the school district. During the period of
his or her service, the trustee may stay or rescind an action of the
governing board of the school district that, in the judgment of the
trustee, may affect the financial condition of the school district.
(2) After the trustee's period of service, and until the loan is
repaid, the county superintendent of schools that has jurisdiction
over the school district may stay or rescind an action of the
governing board of the school district that, in his or her judgment,
may affect the financial condition of the school district. The county
superintendent of schools shall notify the Superintendent, within
five business days, if he or she stays or rescinds an action of the
governing board of the school district. The notice shall include, but
not be limited to, both of the following:
(A) A description of the governing board of the school district's
intended action and its financial implications.
(B) The rationale and findings that support the county
superintendent of school's decision to stay or rescind the action of
the governing board of the school district.
(3) If the Superintendent is notified by the county superintendent
of schools pursuant to paragraph (2), the Superintendent shall
report to the Legislature, on or before December 30 of every year,
whether the school district is complying with the fiscal plan
approved for the school district.
(4) The Superintendent may establish timelines and prescribe
formats for reports and other materials to be used by the trustee to
monitor and review the operations of the school district. The trustee
shall approve or reject all reports and other materials required
from the school district as a condition of receiving the
apportionment. The Superintendent, upon the recommendation of the
trustee, may reduce an apportionment to the school district in an
amount up to two hundred dollars ($200) per day for each late or
unacceptable report or other material required under this part, and
shall report to the Legislature a failure of the school district to
comply with the requirements of this section. If the Superintendent
determines, at any time, that the fiscal plan approved for the school
district under Section 41320 is unsatisfactory, he or she may modify
the plan as necessary, and the school district shall comply with the
plan as modified.
(c) At the request of the Superintendent, the Controller shall
transfer to the department, from an apportionment to which the school
district would otherwise have been entitled pursuant to Section
42238.02, as implemented by Section 42238.03, the amount necessary to
pay the expenses incurred by the trustee and associated costs
incurred by the county superintendent of schools.
(d) For the fiscal year in which the apportionments are disbursed
and every year thereafter, the Controller, or his or her designee,
shall cause an audit to be conducted of the books and accounts of the
school district, in lieu of the audit required by Section 41020. At
the Controller's discretion, the audit may
be conducted by the Controller, his or her
designee, or an auditor selected by the school district and approved
by the Controller. The costs of these audits shall be borne by the
school district. These audits shall be required until the Controller
determines, in consultation with the Superintendent, that the school
district is financially solvent, but in no event earlier than one
year following the implementation of the plan or later than the time
the apportionment made is repaid, including interest. In addition,
the Controller shall conduct quality control reviews pursuant to
subdivision (c) of Section 14504.2.
(e) For purposes of errors and omissions liability insurance
policies, the trustee appointed pursuant to this section is an
employee of the local educational agency to which he or she is
assigned. For purposes of workers' compensation benefits, the trustee
is an employee of the local educational agency to which he or she is
assigned, except that a trustee appointed pursuant to paragraph (7)
of subdivision (a) is an employee of the department for those
purposes.
(f) Except for an individual appointed by the Superintendent as
trustee pursuant to paragraph (7) of subdivision (a), the
state-appointed trustee is a member of the State Teachers' Retirement
System, if qualified, for the period of service as trustee, unless
the trustee elects in writing not to become a member. A person who is
a member or retirant of the State Teachers' Retirement System at the
time of appointment shall continue to be a member or retirant of the
system for the duration of the appointment. If the trustee chooses
to become a member or is already a member, the trustee shall be
placed on the payroll of the school district for the purpose of
providing appropriate contributions to the system. The Superintendent
may also require that an individual appointed as trustee pursuant to
paragraph (7) of subdivision (a) be placed on the payroll of the
school district for purposes of remuneration, other benefits, and
payroll deductions. For purposes of workers' compensation benefits,
the state-appointed trustee is deemed an employee of the local
educational agency to which he or she is assigned, except that a
trustee who is appointed pursuant to paragraph (7) of subdivision (a)
is an employee of the department for those purposes.
SEC. 35. Section 41329.55 of the Education Code is amended to
read:
41329.55. (a) Simultaneous with the execution of the lease
financing authorized pursuant to Section 41329.52, the bank shall
provide to the Controller and the school district a notification of
its lease financing. The notice shall include a schedule of rent
payments to become due to the bank from the school district and the
bond trustee. The Controller shall make the apportionment to the bond
trustee of those amounts on the dates shown on the schedule. The
bank may further authorize the apportionments to be used to pay or
reimburse the provider of any credit enhancement of bonds and other
ongoing or periodic ancillary costs of the bond financing issued by
the bank in connection with this article. If the amount of rent
payments vary from the schedule as a result of variable interest
rates on the bonds, early redemptions, or changes in expenses, the
bank shall amend or supplement the schedule accordingly.
(b) Except where financing is for a community college district,
the Controller shall make the apportionment only from moneys in
Section A of the State School Fund and the Education Protection
Account designated for apportionment to the district and any
apportionment authorized pursuant to this subdivision shall
constitute a lien senior to any other apportionment or payment of
State School Fund and the Education Protection Account moneys to or
for that district not made pursuant to this subdivision.
(c) If financing is for the Compton Community College District,
the Controller shall make the apportionment only from moneys in
Section B of the State School Fund. Any apportionment authorized
pursuant to this subdivision shall constitute a lien senior to any
other apportionment or payment of Section B State School Fund moneys.
(d) The amount apportioned for a school district pursuant to this
section is an allocation to the school district for purposes of
subdivision (b) of Section 8 of Article XVI of the California
Constitution. For purposes of computing the local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03, for any school district, the local control funding
formula allocation for any fiscal year in which funds are apportioned
for the school district pursuant to this section shall include any
amounts apportioned by the Controller pursuant to subdivisions (a),
(b), and (c), and Section 41329.57.
(e) No party, including the school district or any of its
creditors, shall have any claim to the money apportioned or to be
apportioned to the bond trustee by the Controller pursuant to this
section.
SEC. 36. Section 41334 of the Education Code is repealed.
SEC. 37. Section 41338 of the Education Code is repealed.
SEC. 38. Section 41341 of the Education Code is amended to read:
41341. (a) (1) If, during any fiscal year, the amount apportioned
to a school district or to any fund from Section A of the State
School Fund differs either positively or negatively from the amount
to which the school district or fund was entitled by an amount equal
to the local control funding formula allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, for one unit
of average daily attendance, the Superintendent, in accordance with
regulations that he or she is hereby authorized to adopt, not later
than the first succeeding fiscal year from the fiscal year in which
the computational error was made, shall withhold from, or add to, the
apportionment made during that fiscal year, the amount of the excess
or deficiency, as the case may be. Notwithstanding any other
provision of this code to the contrary, excesses withheld or
deficiencies added by the Superintendent pursuant this subdivision
shall be added to or allowed from any portion of the State School
Fund.
(2) Notwithstanding paragraph (1), excesses may be withheld or
deficiencies added to apportionments on account of audit exceptions
in any fiscal year in which they are certified by the Superintendent.
(b) If, during any fiscal year, the amount apportioned to a
community college district or to any fund from Section B of the State
School Fund differs either positively or negatively from the amount
to which the community college district or fund was entitled, by an
amount equal to the funding of one full-time equivalent student, the
Chancellor of the California Community Colleges, in accordance with
regulations that he or she is hereby authorized to adopt, not later
than the first succeeding fiscal year from the fiscal year in which
the computational error was made, shall withhold from, or add to, the
apportionment made during that fiscal year, the amount of the excess
or deficiency, as the case may be. Notwithstanding any other
provision of this code to the contrary, excesses withheld or
deficiencies added by the Chancellor of the California Community
Colleges under this subdivision shall be added to or allowed from any
portion of the State School Fund.
SEC. 39. Section 41344 of the Education Code is amended to read:
41344. (a) If, as the result of an audit or review, a local
educational agency is required to repay an apportionment significant
audit exception or to pay a penalty arising from an audit exception,
the Superintendent and the Director of Finance, or their designees,
jointly shall establish a plan for repayment of state school funds
that the local educational agency received on the basis of average
daily attendance, or other data, that did not comply with statutory
or regulatory requirements that were conditions of the
apportionments, or for payment of a penalty arising from an audit
exception. A local educational agency shall request a plan within 90
days of receiving the final audit report or review, within 30 days of
withdrawing or receiving a final determination regarding an appeal
pursuant to subdivision (d), or, in the absence of an appeal pursuant
to subdivision (d), within 30 days of withdrawing or receiving a
determination of a summary review pursuant to subdivision (d) of
Section 41344.1. At the time the local educational agency is
notified, the Controller also shall be notified of the plan. The plan
shall be established in accordance with the following:
(1) The Controller shall withhold the disallowed or penalty amount
at the next principal apportionment or pursuant to paragraph (2),
unless subdivision (d) of this section or subdivision (d) of Section
41344.1 applies, in which case the disallowed or penalty amount shall
be withheld, at the next principal apportionment or pursuant to
paragraph (2) following the determination regarding the appeal or
summary appeal. In calculating a disallowed amount, the Controller
shall determine the total amount of overpayment received by the local
educational agency on the basis of average daily attendance, or
other data, reported by the local educational agency that did not
comply with one or more statutory or regulatory requirements that are
conditions of apportionment.
(2) If the Superintendent and the Director of Finance concur that
repayment of the full liability or payment of the penalty in the
current fiscal year would constitute a severe financial hardship for
the local educational agency, they may approve a plan of equal annual
payments over a period of up to eight years. The plan shall include
interest on each year's outstanding balance at the rate earned on the
state's Pooled Money Investment Account during that year. The
Superintendent and the Director of Finance jointly shall establish
this plan. The Controller shall withhold amounts pursuant to the
plan.
(3) If the Superintendent and the Director of Finance do not
jointly establish a plan, the Controller shall withhold the entire
disallowed amount determined pursuant to paragraph (1), or the
penalty amount, at the next principal apportionment.
(b) (1) For purposes of computing average daily attendance
pursuant to Section 42238.05, a local educational agency's prior
fiscal year average daily attendance shall be reduced by an amount
equal to any average daily attendance disallowed in the current year,
by an audit or review, as defined in subdivision (e).
(2) Commencing with the 1999-2000 fiscal year, this subdivision
may not result in a local educational agency repaying more than the
value of the average daily attendance disallowed in the audit
exception plus interest and other penalties or reductions in
apportionments as provided by existing law.
(c) Notwithstanding any other law, this section may not be waived
under any authority set forth in this code except as provided in this
section or Section 41344.1.
(d) Within 60 days of the date on which a local educational agency
receives a final audit report resulting from an audit or review of
all or any part of the operations of the local educational agency, or
within 30 days of receiving a determination of a summary review
pursuant to subdivision (d) of Section 41344.1, a local educational
agency may appeal a finding contained in the final report, pursuant
to Section 41344.1. Within 90 days of the date on which the appeal is
received by the panel, a hearing shall be held at which the local
educational agency may present evidence or arguments if the local
educational agency believes that the final report contains any
finding that was based on errors of fact or interpretation of law, or
if the local educational agency believes in good faith that it was
in substantial compliance with all legal requirements. A repayment
schedule may not commence until the panel reaches a determination
regarding the appeal. If the panel determines that the local
educational agency is correct in its assertion, in whole or in part,
the allowable portion of any apportionment payment that was withheld
shall be paid at the next principal apportionment.
(e) (1) As used in this section, "audit or review" means an audit
conducted by the Controller's office, an annual audit conducted by a
certified public accountant or a public accounting firm pursuant to
Section 41020, and an audit or review conducted by a governmental
agency that provided the local educational agency with an opportunity
to provide a written response.
(2) As used in this section, "local educational agency" includes a
charter school.
SEC. 40. Section 41376 of the Education Code is amended to read:
41376. (a) The Superintendent, in computing apportionments and
allowances from the State School Fund for the second principal
apportionment, shall determine the following for the regular day
classes of the elementary schools maintained by each school district:
(1) (A) For grades 1 to 3, inclusive, the Superintendent shall
determine the number of classes, the number of pupils enrolled in
each class, the total enrollment in all such classes, the average
number of pupils enrolled per class, and the total of the numbers of
pupils which are in excess of thirty (30) in each class.
(B) For those school districts that do not have any classes with
an enrollment in excess of 32 and whose average size for all the
classes is 30.0 or less, there shall be no excess declared. For those
school districts that have one or more classes in excess of an
enrollment of 32 or whose average size for all the classes is more
than 30, the excess shall be the total of the number of pupils which
are in excess of 30 in each class having an enrollment of more than
30.
(2) For grades 4 to 8, inclusive, the Superintendent shall
determine the total number of pupils enrolled, the number of
full-time equivalent classroom teachers, and the average number of
pupils per each full-time equivalent classroom teacher. The
Superintendent shall also determine the excess if any, of pupils
enrolled in such grades in the following manner:
(A) Determine the number of pupils by which the average number of
pupils per each full-time equivalent classroom teacher for the
current fiscal year exceeds the greater of the average number of
pupils per each full-time equivalent classroom teacher in all the
appropriate districts of the state, as determined by the
Superintendent for October 30, 1964, or the average number of pupils
per each full-time equivalent classroom teacher which existed in the
school district on either October 30, 1964, or March 30, 1964, as
selected by the governing board of the school district.
(B) Multiply the number determined in subparagraph (A) by the
number of full-time equivalent classroom teachers of the current
fiscal year.
(C) Reduce the number determined in subparagraph (B) by the
remainder that results from dividing such number by the average
number of pupils per each full-time equivalent teacher for October
30, 1964, as determined by the Superintendent in subparagraph (A).
(3) The Superintendent shall compute the product obtained by
multiplying the excess number of pupils, if any, in paragraph (1) by
ninety-seven hundredths.
(4) If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of 30 per class pursuant to paragraph (1), and there
is no excess number of pupils computed pursuant to paragraph (2),
the Superintendent shall decrease the average daily attendance
reported under the provisions of Section 41601 by the product
determined pursuant to paragraph (3).
(5) If the school district reports that it has maintained, during
the current fiscal year, no classes in which there were enrolled
pupils in excess of 30 per class determined pursuant to paragraph
(1), and there is an excess number of pupils computed pursuant to
paragraph (2), the Superintendent shall compute the product obtained
by multiplying the excess number of pupils computed pursuant to
paragraph (2) by ninety-seven hundredths. The Superintendent shall
decrease the average daily attendance reported under the provisions
of Section 41601 by the resulting product.
(6) If the school district reports that it has maintained, during
the current fiscal year, any classes in which there were enrolled
pupils in excess of 30 per class determined pursuant to paragraph
(1), and there is an excess number of pupils computed pursuant to
paragraph (2), the Superintendent shall add to the product determined
pursuant to paragraph (3), the product determined pursuant to
paragraph (5), and shall decrease the average daily attendance
reported under the provisions of Section 41601 by this total amount.
(b) The governing board of each school district maintaining
elementary schools shall report for the fiscal year 1964-65 and each
year thereafter the information required for the determination to be
made by the Superintendent pursuant to this section in accordance
with instructions provided on forms furnished and prescribed by the
Superintendent. Such information shall be reported by the school
district together with, and at the same time as, the reports required
to be filed for the second principal apportionment of the State
School Fund. The forms on which the data and information is reported
shall include a certification by the superintendent of each school
district or its chief administrative officer that the data is correct
and accurate for the period covered, according to his or her best
information and belief.
(c) For purposes of this section, a "full-time equivalent
classroom teacher" means an employee of an elementary, high school,
or unified school district, employed in a position requiring
certification qualifications and whose duties require him to teach
pupils in the elementary schools of that district in regular day
classes for the full time for which he is employed during the regular
schoolday. In reporting the total number of full-time equivalent
classroom teachers, there shall be included, in addition to those
employees defined above, the full-time equivalent of all fractional
time for which employees in positions requiring certification
qualifications are required to devote to teaching pupils in the
elementary schools of the district in regular day classes during the
regular schoolday.
(d) For purposes of this section, the number of pupils enrolled in
each class means the average of the active enrollment in that class
on the last teaching day of each school month that ends before April
15 of each school year.
(e) This section shall not be applicable to school districts with
less than 101 units of average daily attendance for the current
fiscal year.
(f) The Superintendent shall adopt rules and regulations that he
or she may deem necessary for the effective administration of this
section. Those rules and regulations may specify that no decrease in
average daily attendance reported under the provisions of Section
41601 shall be made for a school district on account of large classes
due to instructional television or team teaching, which may
necessarily involve class sizes at periods during the day larger than
the standard set forth in this section.
SEC. 41. Section 41376.1 of the Education Code is amended 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
paragraphs (4), (5), and (6) of subdivision (a) 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 paragraph (4) of subdivision (a) 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 paragraph (5) of
subdivision (a) of Section 41376 by the average daily attendance for
grades 4 to 6, inclusive, reported by the school district pursuant
to Section 41601 for the specified school year divided by the average
daily attendance for grades 4 to 8, inclusive, reported by the
school district pursuant to Section 41601 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 paragraph (5) of
subdivision (a) of Section 41376 by the average daily attendance for
grades 7 and 8 reported by the school district pursuant to Section
41601 for the specified school year divided by the average daily
attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 41601 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
paragraphs (4), (5), and (6) of subdivision (a) 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 paragraph (4) of subdivision (a) 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 paragraph (5) of
subdivision (a) of Section 41376 by the average daily attendance for
grades 4 to 6, inclusive, reported by the school district pursuant
to Section 41601 for the specified school year divided by the average
daily attendance for grades 4 to 8, inclusive, reported by the
school district pursuant to Section 41601 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 paragraph (5) of
subdivision (a) of Section 41376 by the average daily attendance for
grades 7 and 8 reported by the school district pursuant to Section
41601 for the specified school year divided by the average daily
attendance for grades 4 to 8, inclusive, reported by the school
district pursuant to Section 41601 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. 42. 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 former Section 42247.4, as that section
read on January 1, 2001, and that received an apportionment pursuant
to subdivision (h) of former 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
former 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 former Section 42247.4, as that section
read on January 1, 2001, and that received an apportionment pursuant
to subdivision (h) of former 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), the lesser of the
amount calculated pursuant to paragraph (1) or 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 funding
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), "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. 43. Section 41610 of the Education Code is repealed.
SEC. 44. Section 42127 of the Education Code is amended to read:
42127. (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
(1) Hold a public hearing conducted in accordance with Section
42103 on the budget to be adopted for the subsequent fiscal year. The
budget to be adopted shall be prepared in accordance with Section
42126. The agenda for that hearing shall be posted at least 72 hours
before the public hearing and shall include the location where the
budget will be available for public inspection.
(2) (A) Adopt a budget. Not later than five days after that
adoption or by July 1, whichever occurs first, the governing board of
the school district shall file that budget with the county
superintendent of schools. The budget and supporting data shall be
maintained and made available for public review. If the governing
board of the school district does not want all or a portion of the
property tax requirement levied for the purpose of making payments
for the interest and redemption charges on indebtedness as described
in paragraph (1) or (2) of subdivision (b) of Section 1 of Article
XIII A of the California Constitution, the budget shall include a
statement of the amount or portion for which a levy shall not be
made. For the 2014-15 fiscal year and each fiscal year thereafter,
the governing board of the school district shall not adopt a budget
before the governing board of the school district adopts a local
control and accountability plan, if an existing local control and
accountability plan or annual update to a local control and
accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective for the budget
year.
(B) Commencing with budgets adopted for the 2015-16 fiscal year,
the governing board of a school district that proposes to adopt a
budget that includes a combined assigned and unassigned ending fund
balance in excess of the minimum recommended reserve for economic
uncertainties adopted by the state board pursuant to subdivision (a)
of Section 33128, shall, at the public hearing held pursuant to
paragraph (1), provide all of the following for public review and
discussion:
(i) The minimum recommended reserve for economic uncertainties for
each fiscal year identified in the budget.
(ii) The combined assigned and unassigned ending fund balances
that are in excess of the minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget.
(iii) A statement of reasons that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties for each
fiscal year that the school district identifies an assigned and
unassigned ending fund balance that is in excess of the minimum
recommended reserve for economic uncertainties, as identified
pursuant to clause (ii).
(C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission each time it files an adopted or revised budget with the
county superintendent of schools. The information required pursuant
to subparagraph (B) shall be maintained and made available for public
review.
(b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
(c) The county superintendent of schools shall do all of the
following:
(1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
(2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than 3 of the 15
most common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet its
current and future obligations and resolve any problems identified
in studies, reports, evaluations, or audits described in this
paragraph.
(3) Determine whether the adopted budget includes the expenditures
necessary to implement the local control and accountability plan or
annual update to the local control and accountability plan approved
by the county superintendent of schools.
(4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the minimum
recommended reserve for economic uncertainties. If the adopted budget
includes a combined assigned and unassigned ending fund balance that
exceeds the minimum recommended reserve for economic uncertainties,
the county superintendent of schools shall verify that the school
district complied with the requirements of subparagraphs (B) and (C)
of paragraph (2) of subdivision (a).
(d) (1) On or before September 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal year
and each fiscal year thereafter, the county superintendent of schools
shall disapprove a budget if the county superintendent of schools
determines that the budget does not include the expenditures
necessary to implement a local control and accountability plan or an
annual update to the local control and accountability plan approved
by the county superintendent of schools. If the governing board of a
school district does not submit a budget to the county superintendent
of schools, the county superintendent of schools shall develop, at
school district expense, a budget for that school district by
September 15 and transmit that budget to the governing board of the
school district. The budget prepared by the county superintendent of
schools shall be deemed adopted, unless the county superintendent of
schools approves any modifications made by the governing board of the
school district. The budget prepared by the county superintendent of
schools shall also comply with the requirements of subparagraph (B)
of paragraph (2) of subdivision (a). The approved budget shall be
used as a guide for the school district's priorities. The
Superintendent shall review and certify the budget approved by the
county. If, pursuant to the review conducted pursuant to subdivision
(c), the county superintendent of schools determines that the adopted
budget for a school district does not satisfy paragraph (1), (2),
(3), or (4) of that subdivision, he or she shall conditionally
approve or disapprove the budget and, not later than September 15,
transmit to the governing board of the school district, in writing,
his or her recommendations regarding revision of the budget and the
reasons for those recommendations, including, but not limited to, the
amounts of any budget adjustments needed before he or she can
approve that budget. The county superintendent of schools may assign
a fiscal adviser to assist the school district to develop a budget in
compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the superintendent's review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than September 20.
(2) Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget shall
not be adopted or approved by the county superintendent of schools
before a local control and accountability plan or update to an
existing local control and accountability plan for the budget year is
approved.
(3) If the adopted budget of a school district is conditionally
approved or disapproved pursuant to paragraph (1), on or before
October 8, the governing board of the school district, in conjunction
with the county superintendent of schools, shall review and respond
to the recommendations of the county superintendent of schools at a
regular meeting of the governing board of the school district. The
response shall include any revisions to the adopted budget and other
proposed actions to be taken, if any, as a result of those
recommendations.
(e) On or before October 22, the county superintendent of schools
shall provide a list to the Superintendent identifying all school
districts for which budgets may be disapproved.
(f) (1) The county superintendent of schools shall examine the
revised budget as provided in paragraph (3) of subdivision (d) to
determine whether it (A) complies with the standards and criteria
adopted by the state board pursuant to Section 33127 for application
to final local educational agency budgets, (B) allows the school
district to meet its financial obligations during the fiscal year,
(C) satisfies all conditions established by the county superintendent
of schools in the case of a conditionally approved budget, (D) is
consistent with a financial plan that will enable the school district
to satisfy its multiyear financial commitments, and, not later than
November 8, shall approve or disapprove the revised budget, and (E)
whether the revised budget complies with the requirements of
subparagraph (B) of paragraph (2) of subdivision (a). If the county
superintendent of schools disapproves the budget, he or she shall
call for the formation of a budget review committee pursuant to
Section 42127.1, unless the governing board of the school district
and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed and the
department approves the waiver after determining that a budget review
committee is not necessary. Upon the grant of a waiver, the county
superintendent of schools immediately has the authority and
responsibility provided in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by December 31. If
no budget is adopted by December 31, the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by January 10 if any
school district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by December 31. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district.
(2) Notwithstanding any other law, for the 2014-15 fiscal year and
each fiscal year thereafter, if the county superintendent of schools
disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the governing board of the school
district pursuant to Section 52070, the county superintendent of
schools shall not call for the formation of a budget review committee
pursuant to Section 42127.1.
(g) Not later than November 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to paragraph (1) of subdivision (d).
(h) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.
(i) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
SEC. 45. Section 42127.1 of the Education Code is amended to read:
42127.1. (a) Pursuant to subdivision (g) or (i) of Section 42127,
upon the disapproval of a school district budget by the county
superintendent of schools, the county superintendent of schools shall
call for the formation of a budget review committee unless the
governing board of the school district and the county superintendent
of schools agree to waive the requirement that a budget review
committee be formed, and the department approves the waiver after
determining that a budget review committee is not necessary. Upon the
grant of a waiver, the county superintendent has the authority and
responsibility provided to a budget review committee in Section
42127.3. Upon approving a waiver of the budget review committee, the
department shall ensure that a balanced budget is adopted for the
school district by December 31. The Superintendent shall report to
the Legislature and the Director of Finance by January 10 if any
district, including a school district that has received a waiver of
the budget review committee process, does not have an adopted budget
by December 31. This report shall include the reasons why a budget
has not been adopted by the deadline, the steps being taken to
finalize budget adoption, and the date the adopted budget is
anticipated.
(b) The budget review committee shall be composed of three persons
selected by the governing board of the school district from a list
of candidates provided to the governing board of the school district
by the Superintendent. The list of candidates shall be composed of
persons who have expertise in the management of a school district or
county office of education. Their experience shall include, but not
be limited to, the fiscal and educational aspects of local
educational agency management.
(c) Notwithstanding subdivision (b) or any other provision of this
article, with the approval of the Superintendent and the governing
board of the school district, the county superintendent of schools
may select and convene a regional review committee, consisting of
persons having the expertise described in that subdivision. The
regional review committee shall operate in place of the budget review
committee, in accordance with the provisions of this article
governing budget review committees.
(d) Members of the committee shall be reimbursed by the department
for their services and associated expenses while on official
business at rates established by the state board.
SEC. 46. Section 42127.2 of the Education Code is amended to read:
42127.2. (a) The governing board of a school district shall, no
later than five working days after the receipt of a candidate list
from the Superintendent pursuant to Section 42127.1, select a budget
review committee, and the Superintendent shall convene the committee
no later than five working days following that selection. If the
governing board of the school district fails to select a committee
within the period of time permitted by this subdivision, the
Superintendent instead shall select and convene the budget review
committee no later than 10 working days after the district's receipt
of the candidate list.
(b) On or before November 30, the budget review committee shall
review the proposed budget of the district and the underlying fiscal
policies of the school district and transmit to the Superintendent of
Public Instruction, the county superintendent of schools, and the
governing board of the school district either of the following:
(1) The recommendation that the school district budget be
approved.
(2) A report disapproving the school district budget and setting
forth recommendations for revisions to the school district budget
that would enable the district to meet its financial obligations both
in the current fiscal year and with regard to the district's
multiyear financial commitments.
(c) The Superintendent may extend the deadline set forth in
subdivision (b) for a period of not more than 15 working days.
(d) The Superintendent shall establish criteria and procedures
governing the performance by budget review committees of their duties
pursuant to this section.
(e) Upon request of the county superintendent of schools, the
Controller's office may conduct an audit or review of the fiscal
condition of the school district in order to assist a budget review
committee or regional review committee for the purposes of this
section.
SEC. 47. Section 42127.3 of the Education Code is amended to read:
42127.3. (a) If the budget review committee established pursuant
to Sections 42127.1 and 42127.2 recommends approval of the school
district budget, the county superintendent of schools shall accept
the recommendation of the budget review committee and approve the
budget.
(b) If the budget review committee established pursuant to
Sections 42127.1 and 42127.2 disapproves the school district budget,
the governing board of the school district, not later than five
working days after receipt of the report described in paragraph (2)
of subdivision (b) of Section 42127.2, may submit a response to the
Superintendent, including any revisions to the adopted final budget
and any other proposed actions to be taken as a result of the
recommendations of the budget review committee. Based upon the
recommendations of the budget review committee and any response to
those recommendations provided by the governing board of the school
district, the Superintendent shall either approve or disapprove the
budget. If the Superintendent disapproves the budget, he or she shall
notify the governing board of the school district in writing of the
reasons for that disapproval and, until the county superintendent of
schools certifies the school district's first interim report pursuant
to Section 42131, the county superintendent of schools shall do the
following as necessary:
(1) On or before December 31, develop and adopt, in consultation
with the Superintendent and the governing board of the school
district, a fiscal plan and budget that will govern the district and
will allow the district to meet its financial obligations, both in
the current fiscal year and with regard to the district's multiyear
financial commitments. The Superintendent may extend the date by
which the county superintendent of schools is required to develop and
adopt a fiscal plan and budget. The governing board of the school
district shall govern the operation of the school district for the
current fiscal year in accordance with that adopted budget.
(2) Cancel purchase orders, prohibit the issuance of nonsalary
warrants, and otherwise stay or rescind any action that is
inconsistent with the budget adopted pursuant to paragraph (1). The
county superintendent of schools shall inform the governing board of
the school district in writing of his or her justification for any
exercise of authority under this paragraph.
(3) Monitor and review the operation of the school district.
(4) Determine the need for additional staff and may employ,
subject to approval by the Superintendent, short-term analytical
assistance or expertise to validate financial information if the
school district staff does not have the expertise or staff.
(5) Require the school district to encumber all contracts and
other obligations, to prepare appropriate cashflow analyses and
monthly or quarterly budget revisions, and to appropriately record
all receivables and payables.
(6) Determine whether there are any financial problem areas and
may employ, subject to approval by the Superintendent, a certified
public accounting firm to investigate financial problem areas.
(7) Withhold compensation of the members of the governing board of
the school district and the superintendent of the school district
for failure to provide requested financial information. A forfeiture
may be appealed to the Superintendent pursuant to subdivision (b) of
Section 42127.6.
(c) If, during the selection of the budget review committee or
during the committee's review of the budget, an agreement is reached
between the governing board of the school district and the county
superintendent of schools, and the school district revises its budget
to comply with this agreement, the county superintendent of schools
shall approve the school district budget and the budget review
committee selection, or its review of the budget, shall be canceled.
(d) The school district shall pay 75 percent and the county office
of education shall pay 25 percent of the actual administrative
expenses incurred pursuant to subdivision (b), or costs associated
with improving the district's financial management practices. The
Superintendent shall develop, and distribute to affected school
districts and county offices of education, advisory guidelines
regarding the appropriate amount of any fees charged pursuant to this
subdivision.
(e) This section shall not be construed to authorize the county
superintendent of schools to abrogate any provision of a collective
bargaining agreement that was entered into by a school district prior
to the date upon which the county superintendent of schools
disapproved the budget of the school district pursuant to subdivision
(b).
SEC. 48. Section 42127.8 of the Education Code is amended to read:
42127.8. (a) The governing board provided for in subdivision (b)
shall establish a unit to be known as the County Office Fiscal Crisis
and Management Assistance Team. The team shall consist of persons
having extensive experience in school district budgeting, accounting,
data processing, telecommunications, risk management, food services,
pupil transportation, purchasing and warehousing, facilities
maintenance and operation, and personnel administration,
organization, and staffing. The Superintendent may appoint one
employee of the department to serve on the unit. The unit shall be
operated under the immediate direction of an appropriate county
office of education selected jointly, in response to an application
process, by the Superintendent and the president of the state board
or his or her designee.
(b) The unit established under subdivision (a) shall be selected
and governed by a 25-member governing board consisting of one
representative chosen by
the California County Superintendents Educational Services
Association from each of the 11 county service regions designated by
the association, 11 superintendents of school districts chosen by the
Association of California School Administrators from each of the 11
county service regions, one representative from the department chosen
by the Superintendent, the Chancellor of the California Community
Colleges or his or her designee, and one member of a community
college district governing board chosen by the chancellor. The
governing board of the County Office Fiscal Crisis and Management
Assistance Team shall select a county superintendent of schools to
chair the unit.
(c) (1) The Superintendent may request the unit to provide the
assistance described in subdivision (b) of Section 1624, Section
1630, subdivision (b) of Section 42127.3, subdivision (c) of Section
42127.6, and Section 42127.9, and with the computation described in
subdivision (a) of Section 42238.2, and to review the fiscal and
administrative condition of any county office of education, school
district, or charter school.
(2) A county superintendent of schools may request the unit to
review the fiscal or administrative condition of a school district or
charter school under his or her jurisdiction.
(3) The Board of Governors of the California Community Colleges
may request the unit to provide the assistance described in Section
84041.
(d) In addition to the functions described in subdivision (c), the
unit shall do all of the following:
(1) Provide fiscal management assistance, at the request of any
school district, charter school, or county office of education, or,
pursuant to subdivision (g) of Section 84041, at the request of any
community college district. Each school district, charter school, or
county office of education receiving that assistance shall be
required to pay the onsite personnel costs and travel costs incurred
by the unit for that purpose, pursuant to rates determined by the
governing board established under subdivision (b). The governing
board annually shall distribute rate information to each school
district, charter school, and county office of education.
(2) Facilitate training for members of the governing board of the
school district, district and county superintendents, chief financial
officers within the district, and schoolsite personnel whose primary
responsibility is to address fiscal issues. Training services shall
emphasize efforts to improve fiscal accountability and expand the
fiscal competency of local agencies. The unit shall use state
professional associations, private organizations, and public agencies
to provide guidance, support, and the delivery of any training
services.
(3) Facilitate fiscal management training through the 11 county
service regions to county office of education staff to ensure that
they develop the technical skills necessary to perform their
fiduciary duties. The governing board established pursuant to
subdivision (b) shall determine the extent of the training that is
necessary to comply with this paragraph.
(4) Produce a training calendar, to be disseminated semiannually
to each county service region, that publicizes all of the fiscal
training services that are being offered at the local, regional, and
state levels.
(e) The governing board shall reserve not less than 25 percent,
nor more than 50 percent, of its revenues each year for expenditure
for the costs of contracts and professional services as management
assistance to school districts or county superintendents of schools
in which the board determines that a fiscal emergency exists.
(f) The governing board established under subdivision (b) may levy
an annual assessment against each county office of education that
elects to participate under this section in an amount not to exceed
twenty cents ($0.20) per unit of total average daily attendance for
all school districts within the county. The revenues collected
pursuant to that assessment shall be applied to the expenses of the
unit.
(g) The governing board established under subdivision (b) may pay
to the department, from any available funds, a reasonable amount to
reimburse the department for actual administrative expenses incurred
in the review of the budgets and fiscal conditions of school
districts, charter schools, and county superintendents of schools.
(h) When employed as a fiscal adviser by the department pursuant
to Section 1630, employees of the unit established pursuant to
subdivision (a) shall be considered employees of the department for
purposes of errors and omissions liability insurance.
(i) (1) The unit shall request and review applications to
establish regional teams of education finance experts throughout the
state.
(2) To the extent that funding is provided for purposes of this
subdivision in the annual Budget Act or through another
appropriation, regional teams selected by the Superintendent, in
consultation with the unit, shall provide training and technical
expertise to school districts, charter schools, and county offices of
education facing fiscal difficulties.
(3) The regional teams shall follow the standards and guidelines
of and remain under the general supervision of the governing board
established under subdivision (b).
(4) It is the intent of the Legislature that, to the extent
possible, the regional teams be distributed geographically throughout
the various regions of the state in order to provide timely,
cost-effective expertise to school districts, charter schools, county
offices of education, and community college districts throughout the
state.
SEC. 49. 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, either through completing
an application for the federal National School Lunch Program or
through an alternative household income data collection form, or
deemed to be categorically eligible for free or reduced-price meals
under the federal National School Lunch Program, as described in Part
245 of Title 7 of the Code of Federal Regulations.
(1) 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 Provision, may establish a
base year for purposes of the local control funding formula by
determining the pupils at the school who are eligible for free or
reduced-price meals and using each pupil's eligibility status in that
base year to report eligibility for up to each of the following
three school years. The school may include between base year
eligibility determinations, any newly enrolled pupils who are
determined to be eligible for free or reduced-price meals or any
current pupils found to be newly eligible for free or reduced-price
meals as identified through a local or state direct certification
match or another categorical designation.
(2) A school that uses the special assistance alternative shall
maintain information on each pupil's 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.
(3) For a pupil who transfers to a school using a special
assistance alternative and who is transferring between schools within
the same school district, documentation supporting eligibility for
that pupil for purposes of the local control funding formula may be
transferred from the pupil's old school to the pupil's new school, as
long as the documentation supporting eligibility for that pupil is
less than four years old and is updated at least once every four
years.
(4) To the extent permitted by federal law, a school may choose to
establish a new base year for purposes of the federal 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 federal National School Lunch Program application forms to
collect household income data as permitted under the federal National
School Lunch Program. If the use of federal National School Lunch
Program application forms is not permitted, a school shall use
alternative household income data collection forms.
(5) An alternative household income data collection form shall be
confidential and shall not be shared by the school other than as
necessary for purposes of determining funding allocations under the
local control funding formula and for assessing the accountability of
that funding. An alternative household income data collection form
shall contain, at a minimum, all of the following information:
(A) Information sufficient to identify the pupil or pupils.
(B) Information sufficient to determine that the pupil or
household meets federal income eligibility criteria sufficient to
qualify for either a free or reduced-priced meal under the Richard B.
Russell National School Lunch Act (Public Law 113-79).
(C) Certification that the information is true and correct by the
pupil's adult household member.
(6) Paragraphs (1) and (3) are effective commencing with the
2014-15 fiscal year.
(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), 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 provided for in
subdivision (a) of Section 306 and as "pupils of limited English
proficiency."
SEC. 50. Section 42238.4 of the Education Code is repealed.
SEC. 51. Section 42238.41 of the Education Code is repealed.
SEC. 52. Section 42238.42 of the Education Code is repealed.
SEC. 53. Section 42238.43 of the Education Code is repealed.
SEC. 54. Section 42238.44 of the Education Code is repealed.
SEC. 55. Section 42238.445 of the Education Code is repealed.
SEC. 56. Section 42238.45 of the Education Code is repealed.
SEC. 57. Section 42238.46 of the Education Code is repealed.
SEC. 58. Section 42238.48 of the Education Code is repealed.
SEC. 59. Section 42238.485 of the Education Code is repealed.
SEC. 60. Section 42238.49 of the Education Code is repealed.
SEC. 61. Section 42238.7 of the Education Code is repealed.
SEC. 62. Section 42238.8 of the Education Code is repealed.
SEC. 63. Section 42238.9 of the Education Code is repealed.
SEC. 64. Section 42238.95 of the Education Code is repealed.
SEC. 65. Section 42238.11 of the Education Code is repealed.
SEC. 66. Section 42238.12 of the Education Code is repealed.
SEC. 67. Section 42238.13 of the Education Code is repealed.
SEC. 68. Section 42238.14 of the Education Code is repealed.
SEC. 69. Section 42238.145 of the Education Code is repealed.
SEC. 70. Section 42238.146 of the Education Code is repealed.
SEC. 71. Section 42238.17 of the Education Code is repealed.
SEC. 72. Section 42238.23 of the Education Code is repealed.
SEC. 73. Section 42239 of the Education Code is repealed.
SEC. 74. Section 42240 of the Education Code is repealed.
SEC. 75. Section 42240.1 of the Education Code is repealed.
SEC. 76. Section 42241.3 of the Education Code is repealed.
SEC. 77. Section 42241.7 of the Education Code is repealed.
SEC. 78. Section 42243.7 of the Education Code is repealed.
SEC. 79. Section 42244 of the Education Code is repealed.
SEC. 80. Section 42245 of the Education Code is repealed.
SEC. 81. Section 42280 of the Education Code is amended to read:
42280. (a) For each school district that meets, in the current or
prior fiscal year, the conditions specified in Section 42282 or
42284 the Superintendent shall compute, for each qualifying school in
the school district, an amount pursuant to this article.
(b) The amount of funding for each qualified school district shall
equal the greater of either of the following:
(1) The sum of necessary small elementary school allowances
determined pursuant to Section 42282 for the prior year average daily
attendance and the number of full-time teachers, and necessary small
high school allowances determined pursuant to Section 42284 for the
prior year average daily attendance and the number of certificated
employees.
(2) The sum of necessary small elementary school allowances
determined pursuant to Section 42282 for the current year average
daily attendance and the number of full-time teachers, and necessary
small high school allowances determined pursuant to Section 42284 for
the current year average daily attendance and the number of
certificated employees.
SEC. 82. Section 42281 of the Education Code is repealed.
SEC. 83. Section 42282 of the Education Code is amended to read:
42282. For each district with fewer than 2,501 units of second
principal apportionment average daily attendance, on account of each
necessary small school, the Superintendent shall make the following
computations:
(a) For each necessary small school which has an average daily
attendance during the fiscal year of less than 25, exclusive of
pupils attending the 7th and 8th grades of a junior high school, and
for which school at least one teacher was hired full time, the
Superintendent shall compute for the school district fifty-two
thousand nine hundred twenty-five dollars ($52,925).
(b) For each necessary small school which has an average daily
attendance during the fiscal year of 25 or more and less than 49,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school at least two teachers were hired full
time for more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred five
thousand eight hundred fifty dollars ($105,850).
(c) For each necessary small school which has an average daily
attendance during the fiscal year of 49 or more, but less than 73,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school three teachers were hired full time for
more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district one hundred
fifty-eight thousand seven hundred seventy-five dollars ($158,775).
(d) For each necessary small school which has an average daily
attendance during the fiscal year of 73 or more and less than 97,
exclusive of pupils attending the 7th and 8th grades of a junior high
school, and for which school four teachers were hired full time for
more than one-half of the days schools were maintained, the
Superintendent shall compute for the school district two hundred
eleven thousand seven hundred dollars ($211,700).
(e) A school district that continues to satisfy the criteria
specified in Section 42283 may use this funding calculation until the
local control funding formula grade span adjusted base grant
calculated pursuant to subdivision (d) of Section 42238.02 produces
state aid equal to the small school funding formula.
SEC. 84. Section 42283 of the Education Code is amended to read:
42283. (a) For purposes of Section 42282, a "necessary small
school" is an elementary school with an average daily attendance of
less than 97 pupils, excluding pupils attending the seventh and
eighth grades of a junior high school, maintained by a school
district to which any of the following conditions apply:
(1) If as many as five pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, excluding pupils
attending the seventh and eighth grades of a junior high school, in
the elementary school with an average daily attendance of less than
97 pupils would be required to travel more than 10 miles one way from
a point on a well-traveled road nearest their home to the nearest
other public elementary school.
(2) If as many as 15 pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, excluding pupils
attending the seventh and eighth grades of a junior high school, in
the elementary school with an average daily attendance of less than
97 pupils would be required to travel more than five miles one way
from a point on a well-traveled road nearest their home to the
nearest other public elementary school.
(3) If topographical or other conditions exist in a school
district that would impose unusual hardships if the number of miles
specified in paragraph (1) or (2) were required to be traveled, or if
during the fiscal year the roads that would be traveled have been
impassable for more than an average of two weeks per year for the
preceding five years, the governing board of the school district may,
on or before April 1, request the Superintendent, in writing, for an
exemption from these requirements or for a reduction in the miles
required. The request shall be accompanied by a statement of the
conditions upon which the request is based, giving the information in
a form required by the Superintendent. The Superintendent shall
cause an investigation to be made, and shall either grant the request
to the extent he or she deems necessary, or deny the request.
(b) For purposes of this section, "other public elementary school"
is a public school, including a charter school, that serves
kindergarten or any of grades 1 to 8, inclusive, excluding grades 7
and 8 of a junior high school.
SEC. 85. 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 any of 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 continues to satisfy the criteria
specified in Section 42285 may use the funding calculation as
provided in this section until the local control funding formula
grade span adjusted base grant calculated pursuant to subdivision (d)
of Section 42238.02 produces state aid equal to the funding provided
under this section.
SEC. 86. 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 287 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. 87. Section 42286 of the Education Code is amended to read:
42286. (a) If a high school is determined to be a necessary small
high school pursuant to Section 42285, that status shall not be
changed except as a review of the determinative factors made every
two years following the date of
the determination indicates that the determination should be
changed.
(b) A high school that has not been determined to be a necessary
small high school under Section 42285, may be determined to be a
necessary small high school at the beginning of a fiscal year if it
meets the criteria specified in Section 42285.
SEC. 88. Section 42287 of the Education Code is amended to read:
42287. (a) For the 1984-85 fiscal year to the 2012-13 fiscal
year, inclusive, the Superintendent shall increase the funding
amounts specified in Sections 42282 and 42284 by an amount
proportionate to the increase applied to the statewide average
revenue limit for unified school districts for the then current
fiscal year.
(b) Commencing with the 2013-14 fiscal year, the Superintendent
shall increase the funding amounts specified in Sections 42282 and
42284, as previously increased pursuant to subdivision (a) and
Sections 42289 to 42289.5, inclusive, by the percentage calculated
pursuant to paragraph (2) of subdivision (d) of Section 42238.02,
subject to the criteria specified in paragraph (5) of subdivision (b)
of Section 42238.03, for the then current fiscal year.
SEC. 89. Article 4.5 (commencing with Section 42290) of Chapter 7
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
SEC. 90. Section 42303 of the Education Code is repealed.
SEC. 91. Section 42604 of the Education Code is repealed.
SEC. 92. Section 45037 of the Education Code is amended to read:
45037. (a) Except as provided in Section 45036, for the fiscal
year 2001-02 and for any fiscal year thereafter in which a person
renders service as a teacher in kindergarten or any of grades 1 to
12, inclusive, who does not have a valid certification document, the
school district or county office of education in which the person is
employed shall be assessed a penalty that shall be calculated as
provided in subdivision (b) and withheld from state funding otherwise
due to the district or county office of education.
(1) Notwithstanding Section 46300, the attendance of the
noncertificated person's pupils during the period of service shall be
included in the computation of average daily attendance.
(2) The noncertificated person's period of service shall not be
excluded from the determination of eligibility for instruction time
pursuant to Article 8 (commencing with Section 46200) of Chapter 2 of
Part 26.
(b) (1) For each person who rendered service in the employment of
the district or county office of education as a teacher in
kindergarten or any of grades 1 to 12, inclusive, during the fiscal
year, add the total number of schooldays on which the person rendered
any amount of the service.
(2) For each person who rendered service in the employment of the
district or county office of education as a teacher in kindergarten
or any of grades 1 to 12, inclusive, during the fiscal year, for a
period of service during which the person did not have a valid
certification document, add the number of schooldays on which the
person rendered any amount of the service without a valid
certification document.
(3) Divide the number determined in paragraph (2) by the number
determined in paragraph (1) and carry the result to four decimal
places.
(4) Multiply a school district's local control funding formula
grant apportionment for the fiscal year, calculated pursuant to
Section 42238.02, as implemented by Section 42238.03, or a county
office of education's local control funding formula alternative
education grant computed pursuant to Section 2574, as apportioned
pursuant to Section 2575, for the fiscal year, for the program in
which the noncertificated person rendered service by the number
determined in paragraph (3).
(c) Beginning in 2002-03, if a county office of education releases
a warrant in favor of a person for whom a period of school district
service is included in the calculation set forth in paragraph (2) of
subdivision (b), and the warrant is either compensation for
employment as a teacher or for employment in some other capacity if
the county office of education has direct knowledge or is in
possession of information giving rise to a reasonable inference that
the person is rendering service as a teacher, the county office shall
be assessed a penalty. The penalty assessed to a county office for
any fiscal year in which one or more district teachers did not have a
valid certification document shall be equal to the lesser of three
amounts as follows:
(1) Fifty percent of all penalties assessed for that fiscal year
to all school districts in the county office's jurisdiction pursuant
to subdivision (b).
(2) One-half percent of the total expenditures for that fiscal
year from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service
fund, when two or fewer districts in the county office's jurisdiction
are subject to penalties pursuant to subdivision (b).
(3) One percent of the total expenditures for that fiscal year
from unrestricted resources, as defined in the California School
Accounting Manual, in the county office's county school service fund,
when three or more districts in the county office's jurisdiction are
subject to penalties pursuant to subdivision (b).
(d) Except as provided in Section 41344.1, nothing in this section
may be waived in whole or in part.
SEC. 93. Section 46201.1 of the Education Code is repealed.
SEC. 94. Section 46602 of the Education Code is amended to read:
46602. (a) If the county board of education determines that the
pupil should be permitted to attend in the school district in which
he or she desires to attend, the pupil shall be admitted to school in
the school district without delay and the attendance may be counted
by the school district of attendance for state apportionment
purposes.
(b) Written notice of the decision by the county board of
education shall be delivered to the pupil and the parent or guardian,
or person having custody of him or her, and to the governing boards
of the school districts.
SEC. 95. Section 46603 of the Education Code is amended to read:
46603. (a) For a period not to exceed two school months, the
governing board of a school district may provisionally admit to the
schools of the school district a pupil who resides in another school
district, pending a decision of the two governing boards of the
school districts, or by the county board of education upon appeal,
regarding the interdistrict attendance.
(b) Regardless of whether the decision on interdistrict attendance
is allowed, the provisional attendance may be counted by the school
district of attendance for state apportionment purposes.
SEC. 96. Section 47630 of the Education Code is amended to read:
47630. It is the intent of the Legislature that each charter
school be provided with operational funding that is equal to the
total funding that would be available to a similar school district
serving a similar pupil population, except that a charter school may
not be funded as a necessary small school or a necessary small high
school.
SEC. 97. Section 47630.5 of the Education Code is amended to read:
47630.5. (a) This chapter applies to the calculation of
operational funding for charter schools. Except as otherwise provided
in this chapter, this chapter shall apply to all charter schools
without regard to their sponsoring local education agency.
(b) Additional legal or fiscal responsibilities on the part of a
county superintendent of schools are not imposed by this chapter,
except as specifically provided in this chapter.
SEC. 98. 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
lesser of the amount calculated pursuant to paragraph (2) or 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), 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 school 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. 99. 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, the
lesser of the amount calculated pursuant to paragraph (1) or 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), 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. 100. 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, the lesser of the amount calculated pursuant to paragraph
(1) or 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), 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. 101. 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, the lesser of the amount calculated pursuant to subdivision
(a) or 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), 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. 102. Section 52315 of the Education Code is amended to read:
52315. (a) A visually impaired, orthopedically impaired, or deaf
person who is not enrolled in a regular high school or community
college program may attend a regional occupational center or regional
occupational program pursuant to the requirements described in
Section 52314.5. Additional special instruction and support services
shall be provided to these persons.
(b) If the Superintendent determines that there would be a
duplication of effort to these impaired persons if a regional
occupational center or regional occupational program provided
services to them, in that other programs exist that are available to
them, the Superintendent may disapprove of the curriculum to provide
programs to these impaired persons pursuant to Section 52309.
SEC. 103. Section 52319 of the Education Code is amended to read:
52319. (a) Whenever the establishment and maintenance of a
regional occupational center by two or more school districts has been
undertaken pursuant to an agreement entered into in accordance with
the provisions of Article 1 (commencing with Section 6500) of Chapter
5 of Division 7 of Title 1 of the Government Code, and the terms of
the agreement so authorize, provision may be made for the issuance of
bonds for construction and other capital expenditure for the
regional occupational center. An election shall be called, held, and
conducted in the manner provided in Chapter 3 (commencing with
Section 5300) of Part 4 of Division 1 of Title 1 on the question of
the approval of the issuance of such bonds. If, at the election, the
requisite number of voters cast their ballots in favor of the
issuance of bonds, the bonds shall be issued and sold in the manner
provided by law for the issuance and sale of bonds of a high school
district. The issuance and sale of such bonds shall be deemed to be
an act of the governing board of a high school district.
(b) The total amount of bonds issued shall not exceed one-half of
1 percent of the taxable property of the area served by the regional
occupational center as shown by the last equalized assessment roll of
the county or counties that the center serves.
(c) Bonds issued and sold pursuant to this section shall be
retired from proceeds of the tax under the provisions of Section
52317.
SEC. 104. Section 52324 of the Education Code is repealed.
SEC. 105. Section 52324.5 of the Education Code is repealed.
SEC. 106. Section 52327 of the Education Code is amended to read:
52327. (a) The governing board of a school district maintaining a
regional occupational center may establish a bookstore on school
district property for the purpose of offering for sale textbooks,
workbooks, supplementary textbooks and workbooks, school supplies,
stationery supplies, confectionary items, and related auxiliary
school supplies and services.
(b) The governing board of the school district may establish a
bookstore fund into which the proceeds derived from the operation of
a regional occupational center bookstore may be transferred. Moneys
in a bookstore fund shall be deposited or invested in one or more of
the following ways:
(1) Deposits in a bank or banks, or other institution, whose
accounts are federally insured.
(2) Investment certificates or withdrawable shares in
state-chartered savings and loan associations and savings accounts of
federal savings and loan associations, provided the associations are
doing business in this state and have their accounts insured by the
Federal Savings and Loan Insurance Corporation.
(3) Purchase of United States securities pursuant to subdivision
(a) of Section 16430 of the Government Code.
(c) The governing board of the school district shall designate an
employee or official of the school district to act as trustee for
funds derived from the operation of a regional occupational center
bookstore and to receive those funds in accordance with procedures
established by the board.
(d) All necessary expenses, including salaries, wages and costs of
capital improvements may be deducted from the revenue of a regional
occupational center bookstore. Net proceeds from the operation of a
regional occupational center bookstore shall be used for the general
benefit of the student body as determined by the governing board of
the school district. Income from a regional occupational center
bookstore shall not be included in the school district funding
allocation. Funds derived from the operation of a regional
occupational center bookstore shall be subject to audit pursuant to
Section 41020.
SEC. 107. Section 52329 of the Education Code is amended to read:
52329. (a) The governing board of a school district located in a
county, or the county superintendent of schools maintaining a
regional occupational program in a county, any of the boundaries of
which are contiguous to the State of Arizona, may enter into an
agreement with a public or private educational agency located in the
State of Arizona to provide to pupils living in the school district
and enrolled in a regional occupational program, career technical or
technical training which, due to geographical isolation, is not
otherwise available to these pupils.
(b) The program of training at the public or private educational
agency shall conform to the California State Plan for Career
Technical Education.
SEC. 108. Section 52334 of the Education Code is amended to read:
52334. (a) Indirect costs charged to regional occupational
centers and programs may not exceed the school district or county
office of education, as appropriate, prior year indirect cost rate as
approved by the department.
(b) The indirect costs charged by county offices of education and
school districts that provide regional occupational centers and
programs services on behalf of the county office of education or
joint powers authority, when added together, may not exceed the
indirect cost rate approved by the department for the county office
of education or the school district, whichever is higher.
SEC. 109. Section 52335 of the Education Code is amended to read:
52335. For purposes of this article, "ROC/P" means regional
occupational center or program.
SEC. 110. Section 52335.1 of the Education Code is repealed.
SEC. 111. Section 52335.12 of the Education Code is amended to
read:
52335.12. (a) As a condition of receiving state or federal funds,
the regional occupational center or program shall report annually to
the department the academic and workforce preparation progress of
the secondary pupils enrolled in the center or program. Indicators to
measure that progress shall include, but are not limited to, the
California Assessment of Student Performance and Progress,
established pursuant to Article 4 (commencing with Section 60640) of
Chapter 5 of Part 33; the high school exit examination, pursuant to
Chapter 9 (commencing with 60850) of Part 33; and other indicators of
academic and workforce preparation success, such as reduced dropout
rates, workforce preparation, increased matriculation into
postsecondary educational institutions, and other measures as
determined by the department.
(b) This section shall become effective only when the longitudinal
data on pupils enrolled in regional occupational centers and
programs can be disaggregated from the California longitudinal pupil
achievement data system database, established pursuant to Chapter 10
(commencing with Section 60900) of Part 33.
SEC. 112. Section 52335.2 of the Education Code is repealed.
SEC. 113. Section 52335.3 of the Education Code is repealed.
SEC. 114. Section 52335.4 of the Education Code is repealed.
SEC. 115. Section 52335.5 of the Education Code is repealed.
SEC. 116. Section 52335.6 of the Education Code is repealed.
SEC. 117. The heading of Article 7 (commencing with Section 60117)
of Chapter 1 of Part 33 of Division 4 of Title 2 of the Education
Code is amended to read:
Article 7. Public Hearings, Instructional Materials
SEC. 118. Section 60117 of the Education Code is repealed.
SEC. 119. Section 63001 of the Education Code is amended to read:
63001. A school district that, in a fiscal year, receives an
apportionment for a program specified in Section 63000 shall use no
less than 85 percent of that apportionment at schoolsites for direct
services to pupils.
SEC. 120. (a) The sum of five billion nine hundred ninety-four
million four hundred seventeen thousand dollars ($5,994,417,000) is
hereby appropriated from the General Fund 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.
(b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
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 2015-16 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 2015-16 fiscal
year.
SEC. 121. 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.