Bill Text: CA AB97 | 2013-2014 | Regular Session | Chaptered
Bill Title: School finance.
Spectrum: Partisan Bill (Democrat 15-0)
Status: (Passed) 2013-07-01 - Chaptered by Secretary of State - Chapter 47, Statutes of 2013. [AB97 Detail]
Download: California-2013-AB97-Chaptered.html
BILL NUMBER: AB 97 CHAPTERED
BILL TEXT
CHAPTER 47
FILED WITH SECRETARY OF STATE JULY 1, 2013
APPROVED BY GOVERNOR JULY 1, 2013
PASSED THE SENATE JUNE 14, 2013
PASSED THE ASSEMBLY JUNE 14, 2013
AMENDED IN SENATE JUNE 13, 2013
INTRODUCED BY Committee on Budget (Blumenfield (Chair), Bloom,
Bonilla, Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell,
Mullin, Muratsuchi, Nazarian, Rendon, Stone, and Ting)
JANUARY 10, 2013
An act to amend Sections 1622, 14002, 14501, 17582, 33127, 35035,
35735.1, 37700, 37710.3, 37710.5, 41020, 41303, 41544, 42127,
42238.15, 42280, 42281, 42282, 42283, 42284, 42285, 42285.5, 42286,
42287, 42289, 42289.1, 42289.2, 42289.3, 42289.4, 42289.5, 42800,
46200, 46201, 46201.2, 46202, 47604.32, 47604.33, 47604.5, 47605,
47605.6, 47613, 47631, 47632, 47635, 47636, 47660, 47663, 48310,
48359.5, 49085, 49536, 52052, 52052.1, 52052.5, 52055.750, 56365,
56366.1, 56836.21, and 56836.24 of, to amend and repeal Sections
42238, 42238.1, 42238.2, and 42238.5 of, to add Sections 35736.5,
42238.01, 42238.02, 42238.025, 42238.03, 42238.04, 42238.05,
42238.051, 42238.052, 42238.053, 42238.06, 42238.07, 46207, 46208,
47606.5, and 47607.3 to, to add Article 4.5 (commencing with Section
52060) to Chapter 6.1 of Part 28 of Division 4 of Title 2 of, to add
Chapter 12.5 (commencing with Section 2574) to Part 2 of Division 1
of Title 1 of, to repeal Sections 14002.3, 17583, 17584, 17584.1,
17584.2, 17585, 17587, 35735.2, 42282.1, 42283.1, 42283.2, 42285.1,
42285.4, 42605, 42606, 46201.3, 46204, 47612.7, 47632.5, 47664,
52051, and 52052.2 of, and to repeal Article 3 (commencing with
Section 52053), Article 3.5 (commencing with Section 52055.600), and
Article 4 (commencing with Section 52056) of Chapter 6.1 of Part 28
of Division 4 of Title 2 of, the Education Code, to amend Sections
7906 and 50286 of the Government Code, to amend Sections 33492.78,
33607.5, and 33684 of the Health and Safety Code, and to amend
Sections 95 and 196.4 of the Revenue and Taxation Code, relating to
school finance, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
AB 97, Committee on Budget. School finance.
(1) Existing law establishes the public school system in this
state, and, among other things, provides for the establishment of
county superintendents of schools, school districts, and charter
schools throughout the state. Existing law provides for the provision
of instruction at the public elementary and secondary schools
maintained by these local educational agencies. Existing law
establishes a public school financing system that requires funding
for county superintendents of schools and school districts to be
calculated pursuant to a revenue limit, as specified, and requires
funding for charter schools to be calculated pursuant to a
general-purpose entitlement, except as provided, and requires the
revenue limit and general-purpose entitlement to be composed of,
among other things, state aid and certain local revenues. Existing
law also establishes various categorical education programs under
which funding is provided for specific educational purposes,
including, among many other programs, programs for home-to-school
transportation, adult education, teacher training, and class size
reduction.
This bill would revise and recast the provisions related to the
public financing system by requiring state funding for county
superintendents of schools and school districts, and charter schools
that previously received a general-purpose entitlement, to be
calculated pursuant to a local control funding formula, as specified.
The bill would authorize local educational agencies to expend, for
any local educational purpose, the funds previously required to be
spent for specified categorical education programs, including, among
others, programs for teacher training and class size reduction.
This bill would also change the funding calculations for necessary
small schools and make other changes related to shifting financial
responsibilities and school accountability, and would make other
changes to the law relating to elementary and secondary education.
(2) Existing law requires a county board of education, a governing
board of a school district, and a governing body of a charter
school, to annually adopt a budget, as specified.
This bill would require a county board of education and a
governing board of a school district to annually adopt or revise a
local control and accountability plan that aligns with the annual
budget and contains certain elements and that, among other things,
was developed in consultation with teachers, principals,
administrators, other school personnel, parents, and pupils. The bill
would require a charter for a charter school to include many of the
local control and accountability plan elements and would require the
charter school to annually update its plan related to those elements.
By requiring county boards of education and school districts to
annually adopt or revise a local control and accountability plan and
provide additional services, the bill would impose a state-mandated
local program.
(3) This bill would appropriate $2,099,161,000 with $2,000,000
being apportioned to the Governor's Office of Planning and Research
for purposes of developing regulations, templates, and evaluation
rubrics, as specified, and the remaining funds being apportioned to
the Superintendent of Public Instruction for purposes of allocating
those funds to county superintendents of schools, school districts,
and charter schools pursuant to the local control funding formula.
(4) This bill would make conforming changes, correct
cross-references, and make other nonsubstantive changes.
(5) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(6) Funds appropriated by this bill would be applied toward the
minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution.
(7) 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 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 in the subsequent fiscal year.
(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 August 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 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.
(3) 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 superintendent of schools
pursuant to Section 52067.
(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) On or before September 8, the county board of education shall
revise the county office of education budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the Superintendent, shall
adopt the revised budget, and shall file the revised budget with the
Superintendent, the county board of supervisors, and the county
auditor. Before revising the budget, the county board of education
shall hold a public hearing regarding the proposed revisions, which
shall be made available for public inspection not less than three
working days before the hearing. 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. The revised budget, and supporting data, shall be
maintained and made available for public review.
(d) The Superintendent shall examine the revised budget 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, no later than October 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 or an annual update to the local
control and accountability plan approved by the Superintendent
pursuant to Section 52067. If the Superintendent disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 1623. 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.
(e) Notwithstanding any other provision of this section, the
budget review for a county office of education shall be governed by
paragraphs (1), (2), and (3) of this subdivision, rather than by
subdivisions (c) and (d), if the county board of education so elects,
and notifies the Superintendent in writing of that decision, no
later than October 31 of the immediately preceding calendar year.
(1) In the event of the disapproval of the budget of a county
office of education pursuant to subdivision (b), on or before
September 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 the proposed actions to be taken, if any, as a result
of those recommendations.
(2) No later than October 8, after receiving the response required
under paragraph (1), the Superintendent shall review that response
and either approve or disapprove the budget of the county office of
education. For the 2014-15 fiscal year and each fiscal year
thereafter, the Superintendent shall disapprove a budget if the
Superintendent determines that the budget adopted by the county board
of education 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 52067. If the Superintendent
disapproves the budget, he or she shall call for the formation of a
budget review committee pursuant to Section 1623.
(3) 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. 2. Chapter 12.5 (commencing with Section 2574) is added to
Part 2 of Division 1 of Title 1 of the Education Code, to read:
CHAPTER 12.5. COUNTY LOCAL CONTROL FUNDING FORMULA
2574. For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:
(a) Compute a county office of education operations grant equal to
the sum of each of the following amounts:
(1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).
(2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which the
county superintendent of schools has jurisdiction pursuant to
Section 1253.
(3) (A) Seventy dollars ($70) multiplied by the number of units of
countywide average daily attendance, up to a maximum of 30,000
units. For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools physically
located within the county, and the schools operated by the county
superintendent of schools.
(B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a maximum
of 60,000 units.
(C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum of
140,000 units.
(D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.
(4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the amounts provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
(b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:
(1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.
(B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years by
the sum of the total enrollment in those schools in the 2013-14 and
2014-15 fiscal years.
(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the current
fiscal year and the two prior fiscal years by the sum of the total
enrollment in those schools in the current fiscal year and the two
prior fiscal years.
(D) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2
and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.
(2) For purposes of this section, an "unduplicated pupil" is a
pupil who is classified as an English learner, eligible to receive a
free or reduced-price meal, or a foster youth. For purposes of this
section, the definitions in Section 42238.01 of an English learner, a
pupil eligible to receive a free or reduced-price meal, and foster
youth shall apply. A pupil shall be counted only once for purposes of
this section if any of the following apply:
(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
(B) The pupil is classified as an English learner and is a foster
youth.
(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
(3) (A) Commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil Achievement
Data System.
(B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.
(C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1 for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the county
office of education.
(c) Compute an alternative education grant equal to the sum of the
following:
(1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court school
base revenue limit calculated pursuant to Article 3 (commencing with
Section 2550), as that article read on January 1, 2013.
(B) Commencing with the 2013-14 fiscal year, the per pupil base
grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
(2) A supplemental grant equal to 35 percent of the base grant
described in paragraph (1) multiplied by the enrollment percentage
calculated in subdivision (b). The supplemental grant shall be
expended in accordance with the regulations adopted pursuant to
Section 42238.07.
(3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:
(i) The enrollment percentage calculated in subdivision (b) less
50 percent.
(ii) Zero.
(B) The concentration grant shall be expended in accordance with
the regulations adopted pursuant to Section 42238.07.
(4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education, excluding
units of average daily attendance for pupils attending schools or
classes established pursuant to Article 2.5 (commencing with Section
48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are any
of the following:
(i) Probation-referred pursuant to Sections 300, 601, 602, and 654
of the Welfare and Institutions Code.
(ii) On probation or parole and not in attendance in a school.
(iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
(B) Multiply the number of units of average daily attendance for
pupils attending schools or classes established pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2 by the sum of the base grant calculated in
paragraph (1), a supplemental grant equal to 35 percent of the base
grant pursuant to paragraph (1), and a concentration grant equal to
17.5 percent of the base grant pursuant to paragraph (1). Funds
provided for the supplemental and concentration grants pursuant to
this calculation shall be expended in accordance with the regulations
adopted pursuant to Section 42238.07.
(C) Add the amounts calculated in subparagraphs (A) and (B).
(d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).
(e) Add all of the following to the amount calculated in
subdivision (d):
(1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Targeted Instructional Improvement Block Grant program, as set
forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of
Part 24 of Division 3 of Title 2, as that article read on January 1,
2013.
(2) (A) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Home to School Transportation program, as set forth in Article 2
(commencing with Section 39820) of Chapter 1 of Part 23.5 of
Division 3 of Title 2, and Article 10 (commencing with Section 41850)
of Chapter 5 of Part 24 of Division 3 of Title 2, as those articles
read on January 1, 2013.
(B) On or before March 1, 2014, the Legislative Analyst's Office
shall submit recommendations to the fiscal committees of both houses
of the Legislature regarding revisions to the methods of funding
pupil transportation that address historical funding inequities
across county offices of education and school districts and improve
incentives for local educational agencies to provide efficient and
effective pupil transportation services.
(f) The funds apportioned pursuant to this section and Section
2575 shall be available to implement the activities required pursuant
to Article 4.5 (commencing with Section 52060) of Chapter 6.1 of
Part 28 of Division 4 of Title 2.
2575. (a) Commencing with the 2013-14 budget year and for each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the county local control funding
formula for each county office of education based on the sum of the
amounts computed pursuant to paragraphs (1) to (3), inclusive:
(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that article read
on January 1, 2013, adjusted only for changes in average daily
attendance claimed by the county superintendent of schools for pupils
identified in clauses (i), (ii), and (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574 and for pupils
attending juvenile court schools. All other average daily attendance
claimed by the county superintendent of schools and any other average
daily attendance used for purposes of calculating revenue limits
pursuant to Article 3 (commencing with Section 2550) of Chapter 12,
as that article read on January 1, 2013, shall be considered final
for purposes of this section as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Section 41332.
(2) The sum of both of the following:
(A) The amount of funding received from appropriations contained
in Section 2.00 of the Budget Act of 2012, as adjusted by Section
12.42, in the following items: 6110-104-0001, 6110-105-0001,
6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001,
6110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001,
6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001,
6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-212-0001,
6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-234-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-266-0001, 6110-267-0001,
6110-268-0001, and 6360-101-0001, 2012-13 fiscal year funding for the
Class Size Reduction Program pursuant to Chapter 6.10 (commencing
with Section 52120) of Part 28 of Division 4 of Title 2, as it read
on January 1, 2013, and 2012-13 fiscal year funding for pupils
enrolled in community day schools who are mandatorily expelled
pursuant to subdivision (c) of Section 48915.
(B) The amount of local revenues used to support a regional
occupational center or program established and maintained by a county
superintendent of schools pursuant to Section 52301.
(3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the sum of the amounts apportioned to the county office
of education pursuant to subdivision (f) in all prior years.
(b) The Superintendent shall annually compute a county local
control funding formula transition adjustment for each county
superintendent of schools as follows:
(1) Subtract the amount computed pursuant to subdivision (a) from
the amount computed pursuant to subdivision (e) of Section 2574. A
difference of less than zero shall be deemed to be zero.
(2) Divide the difference for each county superintendent of
schools calculated pursuant to paragraph (1) by the total sum of the
differences for all county superintendents of schools calculated
pursuant to paragraph (1).
(3) Multiply the proportion calculated for each county office of
education pursuant to paragraph (2) by the amount of funding
specifically appropriated for purposes of subdivision (f). The amount
calculated shall not exceed the difference for the county
superintendent of schools calculated pursuant to paragraph (1).
(c) The Superintendent shall subtract from the amount calculated
pursuant to subdivision (a) the sum of each of the following:
(1) Local property tax revenues received pursuant to Section 2573
in the then current fiscal year.
(2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.
(3) The amount received pursuant to subparagraph (C) of paragraph
(3) of subdivision (a) of Section 33607.5 of the Health and Safety
Code that is considered property taxes pursuant to that section.
(4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.
(5) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
(d) The Superintendent shall subtract from the amount computed
pursuant to subdivision (e) of Section 2574 the sum of the amounts
computed pursuant to paragraphs (1) to (5), inclusive, of subdivision
(c).
(e) The Superintendent shall annually apportion to each county
superintendent of schools the amount calculated pursuant to
subdivision (c) unless the amount computed pursuant to subdivision
(c) is negative. If the amount computed is negative, except as
provided in subdivision (f), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during the fiscal
year. In the following fiscal year, that amount, excluding any
amount of funds used for purposes of subdivision (f), shall be
considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578. State aid shall not be apportioned
to the county superintendent of schools pursuant to this subdivision
if the amount computed pursuant to subdivision (c) is negative.
(f) (1) The Superintendent shall apportion, from an appropriation
specifically made for this purpose, the amount computed pursuant to
subdivision (b), or, if the amount computed pursuant to subdivision
(c) is negative, the sum of the amounts computed pursuant to
subdivisions (b) and (c) if the sum if greater than zero.
(2) The Superintendent shall apportion any portion of the
appropriation made for purposes of paragraph (1) that is not
apportioned pursuant to paragraph (1) pursuant to the following
calculation:
(A) Add the amount calculated pursuant to subdivision (b) to the
amount computed pursuant to subdivision (a) for a county
superintendent of schools.
(B) Subtract the amount computed pursuant to subparagraph (A) from
the amount computed pursuant to subdivision (e) of Section 2574 for
the county superintendent of schools.
(C) Divide the difference for the county superintendent of schools
computed pursuant to subparagraph (B) by the sum of the differences
for all county superintendents of schools computed pursuant to
subparagraph (B).
(D) Multiply the proportion computed pursuant to subparagraph (B)
by the unapportioned balance in the appropriation.
(E) Apportion to each county superintendent of schools the amount
calculated pursuant to subparagraph (D), or if subdivision (c) is
negative, apportion the sums of subdivisions (b) and (c) and
subparagraph (D) if the sum is greater than zero.
(F) The Superintendent shall repeat the computation made pursuant
to this paragraph, accounting for any additional amounts apportioned
after each computation, until the appropriation made for purposes of
paragraph (1) is fully apportioned.
(G) The total amount apportioned pursuant to this subdivision to a
county superintendent of schools shall not exceed the difference for
the county superintendent of schools calculated pursuant to
paragraph (1) of subdivision (b).
(g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is less than the amount computed pursuant to subdivision (d), in the
first fiscal year following the fiscal year in which the sum of the
apportionments pursuant to subdivisions (e) and (f) is equal to the
amount calculated pursuant to subdivision (d) of this section, the
Superintendent shall apportion to the county superintendent of
schools the amount computed in subdivision (d) in that fiscal year
and each fiscal year thereafter instead of the amounts computed
pursuant to subdivisions (e) and (f).
(2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is greater than the amount computed pursuant to subdivision (d), in
the first fiscal year in which the amount computed pursuant to
subdivision (c) would be less than the amount computed pursuant to
subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d) in
that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).
(3) In each fiscal year, the Superintendent shall determine the
percentage of county superintendents of schools that are apportioned
funding that is less than the amount computed pursuant to subdivision
(d), as of the second principal apportionment of the fiscal year. If
the percentage is less than 10 percent, the Superintendent shall
apportion to those county superintendents of schools funding equal to
the amount computed in subdivision (d) in that fiscal year and for
each fiscal year thereafter instead of the amounts calculated
pursuant to subdivisions (e) and (f).
(4) Commencing with the first fiscal year after the apportionments
in paragraph (3) are made, the adjustments in paragraph (4) of
subdivision (a) of Section 2574 and subparagraph (B) of paragraph (1)
of subdivision (c) of Section 2574 shall be made only if an
appropriation for those purposes is included in the annual Budget
Act.
(5) If the calculation pursuant to subdivision (d) is negative and
the Superintendent apportions to a county superintendent of schools
the amount computed pursuant to subdivision (d) pursuant to paragraph
(1), (2), or (3), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during that
fiscal year. In the following fiscal year the restricted amount shall
be considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578.
(h) Commencing with the 2013-14 fiscal year, the Superintendent
shall apportion to a county superintendent of schools an amount of
state aid, including any amount apportioned pursuant to subdivisions
(f) and (g), that is no less than the amount calculated in
subparagraph (A) of paragraph (2) of subdivision (a).
(i) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
regional occupational center or program joint powers agency
established in accordance with Article 1 (commencing with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government Code
for purposes of providing instruction to pupils enrolled in grades 9
to 12, inclusive, shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the regional occupational center or program joint powers
agency and the contracting county superintendent of schools.
(j) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation shall not redirect that funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between the home-to-school transportation joint powers
agency and the contracting county superintendent of schools.
(k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school transportation
programs pursuant to Article 2 (commencing with Section 39820) of
Chapter 1 of Part 23.5 of Division 3 of Title 2, and Article 10
(commencing with Section 41850) of Chapter 5 of Part 24 of Division 3
of Title 2, the county superintendent of schools shall expend no
less for those program than the amount of funds the county
superintendent of schools expended for home-to-school transportation
in the 2012-13 fiscal year.
(2) For the 2013-14 and 2014-15 fiscal years only, of the funds a
county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year.
2576. (a) If a county superintendent of schools enrolls in a
school operated by the county superintendent of schools a pupil not
funded pursuant to clause (i), (ii), or (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574, any attendance
generated by that pupil shall be credited to the school district of
residence. Enrollment of these pupils shall be transferred to the
school district of residence for purposes of calculating the
percentage of unduplicated pupils pursuant to Section 42238.02.
(b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, enrolled in a
school operated by a county superintendent of schools shall be deemed
to be the school district that last provided educational services to
that child or, if it is not possible to determine that school
district, the largest school district in the county.
2577. Notwithstanding any other law, revenue limit funding for
county superintendents of schools for the 2012-13 fiscal year and
prior fiscal years shall continue to be adjusted pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that section read
on January 1, 2013.
2578. (a) Every fiscal year the Superintendent shall determine
the amount of funds that will be restricted for each county
superintendent of schools pursuant to subdivisions (e) and (g) of
Section 2575, as of June 30 of the prior fiscal year.
(b) The auditor-controller of each county shall distribute the
amounts determined in subdivision (a) to the Supplemental Revenue
Augmentation Fund created within the county pursuant to Section
100.06 of the Revenue and Taxation Code. The amount of funds required
to be transferred by this subdivision shall be transferred annually
in two equal shares with the first share transferred on or before
January 15 of each year and the second share transferred after
January 15 and on or before May 1 of each year.
(c) The funds transferred to the Supplemental Revenue Augmentation
Fund for purposes of this section shall be transferred by the county
office of education to the auditor-controller of the county and
shall be exclusively used to offset state costs of providing trial
court services and costs, until the funds are exhausted.
2579. Commencing on July 1, 2013, all of the following shall
apply:
(a) All references to Section 2558 shall instead refer to Section
2575.
(b) Unless the context otherwise requires, all references to the
revenue limit of a county office of education or county
superintendent of schools shall instead refer to the county local
control funding formula.
SEC. 3. Section 14002 of the Education Code is amended to read:
14002. Notwithstanding any other law, upon certification of the
Superintendent, the Controller shall transfer from the General Fund
to Section A of the State School Fund during each fiscal year the
amount of moneys required to meet the amounts apportioned pursuant to
subdivisions (e) and (g) of Section 2575, and Sections 2577,
42238.02, as implemented by Section 42238.03, and 42238.04 for each
fiscal year. If all school districts and charter schools are funded
pursuant to the provisions of Section 42238.02 and all county
superintendents of schools are funded at or above the calculation
made pursuant to subdivision (d) of Section 2575, appropriations for
local control funding formula cost-of-living adjustments pursuant to
Section 2574 and paragraph (2) of subdivision (d) of Section 42238.02
shall be subject to an appropriation in the annual Budget Act.
SEC. 4. Section 14002.3 of the Education Code is repealed.
SEC. 5. Section 14501 of the Education Code is amended to read:
14501. (a) As used in this chapter, "financial and compliance
audit" shall be consistent with the definition provided in the
"Standards for Audits of Governmental Organizations, Programs,
Activities, and Functions" promulgated by the Comptroller General of
the United States. Financial and compliance audits conducted under
this chapter shall fulfill federal single audit requirements.
(b) As used in this chapter, "compliance audit" means an audit
that ascertains and verifies whether or not funds provided through
apportionment, contract, or grant, either federal or state, have been
properly disbursed and expended as required by law or regulation or
both and includes the verification of each of the following:
(1) Expenditure of funds in accordance with the local control and
accountability plan adopted pursuant to Article 4.5 (commencing with
Section 52060) of Chapter 6.1 of Part 28 of Division 4 of Title 2.
(2) The reporting requirements for the sufficiency of textbooks or
instructional materials, or both, as defined in Section 60119.
(3) Teacher misassignments pursuant to Section 44258.9.
(4) The accuracy of information reported on the School
Accountability Report Card required by Section 33126. The
requirements set forth in paragraphs (2) and (3) and this paragraph
shall be added to the audit guide requirements pursuant to
subdivision (b) of Section 14502.1.
SEC. 6. Section 17582 of the Education Code is amended to read:
17582. (a) The governing board of a school district may establish
a restricted fund to be known as the "district deferred maintenance
fund" for the purposes of major repair or replacement of plumbing,
heating, air conditioning, electrical, roofing, and floor systems,
the exterior and interior painting of school buildings, the
inspection, sampling, and analysis of building materials to determine
the presence of asbestos-containing materials, the encapsulation or
removal of asbestos-containing materials, the inspection,
identification, sampling, and analysis of building materials to
determine the presence of lead-containing materials, the control,
management, and removal of lead-containing materials, and any other
items of maintenance approved by the State Allocation Board. Funds
deposited in the district deferred maintenance fund may be received
from any source and shall be accounted for separately from all other
funds and accounts and retained in the district deferred maintenance
fund for purposes of this section. The term "school building" as used
in this article includes a facility that a county office of
education is authorized to use pursuant to Article 3 (commencing with
Section 17280) of Chapter 3.
(b) Funds deposited in the district deferred maintenance fund
shall only be expended for maintenance purposes as provided pursuant
to subdivision (a).
(c) The governing board of each school district shall have
complete control over the funds and earnings of funds once deposited
in the district deferred maintenance fund.
SEC. 7. Section 17583 of the Education Code is repealed.
SEC. 8. Section 17584 of the Education Code is repealed.
SEC. 9. Section 17584.1 of the Education Code, as amended by
Section 18 of Chapter 7 of the Statutes of 2011, is repealed.
SEC. 10. Section 17584.1 of the Education Code, as amended by
Section 19 of Chapter 7 of the Statutes of 2011, is repealed.
SEC. 11. Section 17584.2 of the Education Code is repealed.
SEC. 12. Section 17585 of the Education Code is repealed.
SEC. 13. Section 17587 of the Education Code is repealed.
SEC. 14. Section 33127 of the Education Code is amended to read:
33127. (a) The Superintendent, the Controller, and the Director
of Finance shall develop, on or before March 1, 1989, standards and
criteria to be reviewed and adopted by the state board, and to be
used by local educational agencies in the development of annual
budgets and the management of subsequent expenditures from that
budget. During the development of the standards and criteria, the
Superintendent shall convene a committee composed of representatives
from school districts, county offices of education, state agencies,
the Legislature, and appropriate labor and professional
organizations. The committee may review and comment on the proposal
standards and criteria before their adoption. In addition, the
standards and criteria shall be used to monitor the fiscal stability
of local educational agencies as provided for in Sections 1240.1,
1240.2, 1621, 1623, 33131, 42127, and 42127.1.
(b) The Superintendent, the Controller, and the Director of
Finance shall update the standards and criteria developed pursuant to
subdivision (a) on or before September 1, 2005. The updated
standards and criteria shall be reviewed and adopted pursuant to the
procedure established by subdivision (a) and are applicable to local
educational agency budgets commencing with the 2006-07 fiscal year
and each fiscal year thereafter.
(c) The Superintendent, the Controller, and the Director of
Finance shall update the standards and criteria developed pursuant to
subdivision (a) on or before January 1, 2014, to address the
requirements of Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28. The updated standards and criteria shall be
reviewed and adopted pursuant to the procedure established by
subdivision (a) and are applicable to local educational agency
budgets commencing with the 2014-15 fiscal year and each fiscal year
thereafter.
(d) After January 1, 2014, to the extent necessary, any revisions
or updates to the standards and criteria shall be developed by the
Superintendent, the Controller, and the Director of Finance pursuant
the procedure established by subdivision (a). The revisions or
updates shall specify the fiscal year in which the revisions or
updates are applicable.
SEC. 15. Section 35035 of the Education Code is amended to read:
35035. The superintendent of each school district shall, in
addition to other powers and duties granted to or imposed upon him or
her:
(a) Be the chief executive officer of the governing board of the
school district.
(b) Except in a school district where the governing board has
appointed or designated an employee other than the superintendent, or
a deputy, or assistant superintendent, to prepare and submit a
budget, prepare and submit to the governing board of the school
district, at the time it may direct, the budget of the school
district for the next ensuing school year, and revise and take other
action in connection with the budget as the governing board of the
school district may desire.
(c) Be responsible for the preparation and submission to the
governing board of the school district, at the time the governing
board may direct, the local control and accountability plan of the
school district for the subsequent school year, and revise and take
other action in connection with the local control and accountability
plan as the governing board of the school district may desire.
(d) Except in a school district where the governing board has
appointed or designated an employee other than the superintendent, or
a deputy, or assistant superintendent, ensure that the local control
and accountability plan is implemented.
(e) Subject to the approval of the governing board of the school
district, assign all employees of school the district employed in
positions requiring certification qualifications, to the positions in
which they are to serve. This power to assign includes the power to
transfer a teacher from one school to another school at which the
teacher is certificated to serve within the school district when the
superintendent concludes that the transfer is in the best interest of
the school district.
(f) Upon adoption, by the school district board, of a school
district policy concerning transfers of teachers from one school to
another school within the school district, have authority to transfer
teachers consistent with that policy.
(g) Determine that each employee of the school district in a
position requiring certification qualifications has a valid
certificated document registered as required by law authorizing him
or her to serve in the position to which he or she is assigned.
(h) Enter into contracts for and on behalf of the school district
pursuant to Section 17604.
(i) Submit financial and budgetary reports to the governing board
of the school district as required by Section 42130.
SEC. 16. Section 35735.1 of the Education Code is amended to read:
35735.1. (a) The local control funding formula allocation per
unit of average daily attendance for newly organized school districts
shall be equal to the total of the amount of the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
of the affected school districts computed pursuant to the
computations set forth below. The following computations shall be
made to determine the local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03, per
unit of average daily attendance for the newly organized school
districts:
(1) Based on the current information available for each affected
school district for the second principal apportionment period for the
fiscal year before the fiscal year in which the reorganization is to
become effective, multiply the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance for that school
district by the number of units of average daily attendance for that
school district that the county superintendent of schools determines
will be included in the proposed school district.
(2) Add the amounts calculated pursuant to paragraph (1) and
divide that sum by the number of units of average daily attendance in
the newly organized school districts.
(b) The amount determined pursuant to subdivision (a) shall be the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance for the newly organized school districts.
(c) The average daily attendance of a newly organized school
district, for purposes of Sections 42238.02 and 42238.03, shall be
the average daily attendance that is attributable to the area
reorganized for the fiscal year before the fiscal year in which the
new school district becomes effective for all purposes.
(d) Notwithstanding this section, commencing with the 2013-14
fiscal year, a newly reorganized school district shall receive
state-aid funding pursuant to paragraph (3) of subdivision (b) of
Section 42238.03 or the total combined per pupil funding amount
received by each school district pursuant to paragraphs (1) and (2)
of subdivision (a) of Section 42238.03 for the fiscal year before the
fiscal year in which the new school district becomes effective for
all purposes, whichever is greater.
(e) Notwithstanding any other law, this section shall not be
subject to waiver by the state board pursuant to Section 33050 or by
the Superintendent.
(f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, for all school districts and
charter schools, this section shall not apply and the newly
reorganized school district shall receive an allocation equal to the
amount calculated under Section 42238.02 in that fiscal year and
future fiscal years.
SEC. 17. Section 35735.2 of the Education Code is repealed.
SEC. 18. Section 35736.5 is added to the Education Code, to read:
35736.5. Sections 35735 to 35736, inclusive, shall only apply to
actions to reorganize school districts initiated on or after July 1,
2013, for which the order to reorganize, pursuant to Section 35765,
is appropriately filed after December 1, 2013, pursuant to Section
54902 of the Government Code. Actions to reorganize school districts
initiated before July 1, 2013, for which the order to reorganize is
appropriately filed on or before December 1, 2013, shall be
implemented pursuant to Sections 35735 to 35736, inclusive, as those
sections read on January 1, 2013.
SEC. 19. Section 37700 of the Education Code is amended to read:
37700. (a) Notwithstanding any other law, the Pacific Unified
School District, the Leggett Valley Unified School District, and the
Reeds Creek Elementary School District may operate one or more
schools in their respective districts on a four-day school week, if
the district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter.
(b) If a school district operates one or more schools on a
four-day week pursuant to this section and the program for the school
year provides less than the 180 days of instruction required under
Section 46200, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula allocation pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, per
unit of average daily attendance for that fiscal year by the amount
the school district would have received for the increase received
pursuant to subdivision (a) of Section 46200, as it read on January
1, 2013, as adjusted in fiscal years subsequent to the 1984-85 fiscal
year. If a school district operates one or more schools on a
four-day school week pursuant to this section and the program
provides less than the minimum instructional minutes required under
Section 46201, as it read on January 1, 2013, the Superintendent
shall reduce the local control funding formula allocation pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, per
unit of average daily attendance for that fiscal year in which the
reduction occurs by the amount the school district would have
received for the increase in the 1987-88 fiscal year base revenue
limit per unit of average daily attendance pursuant to paragraph (6)
of subdivision (b) of Section 42238, as it read on January 1, 2013,
as adjusted from the 1987-88 fiscal year to the 2012-13 fiscal year,
inclusive, and, commencing with the 2013-14 fiscal year, pursuant to
the local control funding formula allocation pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit of
average daily attendance.
(c) A school district with an exclusive bargaining representative
may operate a school on a four-day school week pursuant to this
section only if the school district and the representative of each
bargaining unit of school district employees mutually agree to that
operation in a memorandum of understanding.
(d) Notwithstanding this section, upon a determination that a
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
SEC. 20. Section 37710.3 of the Education Code is amended to read:
37710.3. (a) Beginning in the 2010-11 fiscal year, the Alpaugh
Unified School District may operate one or more schools in the school
district on a four-day school week if the district complies with the
instructional time requirements in Section 37701 and the other
requirements of this chapter. The state board may waive
five-consecutive-day operating requirements for any of the following
programs that operate on a four-day school week pursuant to this
section, provided that the district meets the minimum time
requirement for each program:
(1) Preschools.
(2) Before and after school programs.
(3) Independent study programs.
(4) Child nutrition and food service programs.
(5) Community day schools.
(6) Regional occupational centers or programs.
(7) Continuation high schools.
(b) If the school district operates one or more schools on a
four-day school week pursuant to this section, and the program for
the school year provides fewer than the 180 days of instruction
required under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year by the amount the school district would have received for
the increase received pursuant to subdivision (a) of Section 46200,
as it read on January 1, 2013, as adjusted in fiscal years subsequent
to the 1984-85 fiscal year. If the school district operates one or
more schools on a four-day school week pursuant to this section, and
the program provides fewer than the minimum instructional minutes
required under Section 46201, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year in which the reduction occurs by the amount the school
district would have received for the increase in the base revenue
limit per unit of average daily attendance pursuant to subdivision
(a) of Section 46201, as it read on January 1, 2013, as adjusted from
the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to the local
control funding formula allocation pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03, per unit of average daily
attendance.
(c) Notwithstanding Section 37710, if a small school having
between 11 and 99 valid Standardized Testing and Reporting Program
test scores operating on a four-day school week fails to achieve its
Academic Performance
Index growth target pursuant to Section 52052 for two consecutive
years, the authority of that school to operate on a four-day school
week shall be permanently revoked commencing with the school year
following the second consecutive year the school failed to achieve
its Academic Performance Index growth rate.
(d) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education, and the Assembly Committee on Education on or before
January 15, 2015. The report shall include, but not necessarily be
limited to, information on all of the following:
(1) Programs the district offered on the fifth schoolday and their
participation rates.
(2) Whether the four-day school week schedule resulted in any
fiscal savings.
(3) Impact on overall attendance of the schools operating a
four-day school week.
(4) Programs for which the state board waived minimum time and
five-consecutive-day requirements and the operational and educational
effects of the programs if they operated at less time than required.
(5) The impact of the four-day school week on crime statistics,
especially on the day on which school would otherwise be in session.
(6) Information on the Academic Performance Index, pursuant to
Section 52052, for every year a school in the district operated on a
four-day school week. The information shall include, but not
necessarily be limited to, the base and growth Academic Performance
Index of each school that operated on a four-day school week and
whether that school met the Academic Performance growth targets.
(e) Notwithstanding this section, upon a determination that the
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
(f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 21. Section 37710.5 of the Education Code is amended to read:
37710.5. (a) Beginning in the 2009-10 fiscal year, the Potter
Valley Community Unified School District may operate one or more
schools in the school district on a four-day school week if the
school district complies with the instructional time requirements
specified in Section 37701 and the other requirements of this
chapter. The state board may waive five-consecutive-day operating
requirements for any of the following programs that operate on a
four-day week pursuant to this section, provided that the school
district meets the minimum time requirement for each program:
(1) Preschools.
(2) Before and after school programs.
(3) Independent study programs.
(4) Child nutrition and food service programs.
(5) Community day schools.
(6) Regional occupational centers or programs.
(7) Continuation high schools.
(b) If the school district operates one or more schools on a
four-day week pursuant to this section, and the program for the
school year provides fewer than the 180 days of instruction required
under Section 46200, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year by the amount the school district would have received for
the increase received pursuant to subdivision (a) of Section 46200,
as it read on January 1, 2013, as adjusted in fiscal years subsequent
to the 1984-85 fiscal year. If the school district operates one or
more schools on a four-day school week pursuant to this section, and
the program provides fewer than the minimum instructional minutes
required under Section 46201, as it read on January 1, 2013, the
Superintendent shall reduce the local control funding formula
allocation pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03, per unit of average daily attendance for that
fiscal year in which the reduction occurs by the amount the school
district would have received for the increase in the base revenue
limit per unit of average daily attendance pursuant to subdivision
(a) of Section 46201, as it read on January 1, 2013, as adjusted from
the 1987-88 fiscal year to the 2012-13 fiscal year, inclusive, and,
commencing with the 2013-14 fiscal year, pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, per unit of
average daily attendance.
(c) If the school district operates one or more schools on a
four-day school week pursuant to this section, the school district
shall submit a report to the department, the Senate Committee on
Education and the Assembly Committee on Education on January 15,
2014. The report shall include, but not necessarily be limited to,
information on the following:
(1) Programs the district offered on the fifth day and their
participation rates.
(2) Whether the four-day school week schedule resulted in any
fiscal savings.
(3) Impact on overall attendance of the schools operating a
four-day school week.
(4) Programs for which the Superintendent waived minimum time and
five-consecutive-day requirements and the operational and educational
effect of the programs if they operated at less time than required.
(d) Notwithstanding this section, upon a determination that the
school district identified in subdivision (a) equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03, the
school district, as a condition of apportionment pursuant to Section
42238.02, as implemented pursuant to Section 42238.03, shall offer
180 days or more of instruction per school year, and meet the minimum
minute requirements pursuant to paragraph (1) of subdivision (a) of
Section 46207.
(e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 22. Section 41020 of the Education Code is amended to read:
41020. (a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for the
most efficient and effective use of public funds for the education
of children in California by strengthening fiscal accountability at
the school district, county, and state levels.
(b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit of
all funds under his or her jurisdiction and control and the governing
board of each local educational agency shall either provide for an
audit of the books and accounts of the local educational agency,
including an audit of income and expenditures by source of funds, or
make arrangements with the county superintendent of schools having
jurisdiction over the local educational agency to provide for that
auditing.
(2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and the
governing board.
(3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.
(4) An audit conducted pursuant to this section shall comply fully
with the Government Auditing Standards issued by the Comptroller
General of the United States.
(5) For purposes of this section, "local educational agency" does
not include community colleges.
(c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures. Each audit shall include a determination of whether funds
were expended pursuant to a local control and accountability plan or
an approved annual update to a local control and accountability plan
pursuant to Article 4.5 (commencing with Section 52060) of Chapter
6.1 of Part 28 of Division 4.
(d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.
(e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each school district
from school district funds.
(2) The cost of the audit provided for by a governing board of a
local educational agency shall be paid from local educational agency
funds. The audit of the funds under the jurisdiction and control of
the county superintendent of schools shall be paid from the county
school service fund.
(f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by the
Controller not later than December 31 of each year.
(2) Commencing with the 2003-04 fiscal year and except as provided
in subdivision (d) of Section 41320.1, it is unlawful for a public
accounting firm to provide audit services to a local educational
agency if the lead audit partner, or coordinating audit partner,
having primary responsibility for the audit, or the audit partner
responsible for reviewing the audit, has performed audit services for
that local educational agency in each of the six previous fiscal
years. The Education Audits Appeal Panel may waive this requirement
if the panel finds that no otherwise eligible auditor is available to
perform the audit.
(3) It is the intent of the Legislature that, notwithstanding
paragraph (2), the rotation within public accounting firms conform to
provisions of the federal Sarbanes-Oxley Act of 2002 (Public Law
107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of the report
required by the act of the Comptroller General of the United States
addressing the mandatory rotation of registered public accounting
firms, the Legislature intends to reconsider the provisions of
paragraph (2). In determining which certified public accountants and
public accountants shall be included in the directory, the Controller
shall use the following criteria:
(A) The certified public accountants or public accountants shall
be in good standing as certified by the Board of Accountancy.
(B) The certified public accountants or public accountants, as a
result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.
(g) (1) The auditor's report shall include each of the following:
(A) A statement that the audit was conducted pursuant to standards
and procedures developed in accordance with Chapter 3 (commencing
with Section 14500) of Part 9 of Division 1 of Title 1.
(B) A summary of audit exceptions and management improvement
recommendations.
(C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt about
the ability of the local educational agency to continue as a going
concern for a reasonable period of time. This evaluation shall be
based on the Statement on Auditing Standards (SAS) No. 59, as issued
by the AICPA regarding disclosure requirements relating to the
ability of the entity to continue as a going concern.
(2) To the extent possible, a description of correction or plan of
correction shall be incorporated in the audit report, describing the
specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as "will implement,"
"accepted the recommendation," or "will discuss at a later date."
(h) Not later than December 15, a report of each local educational
agency audit for the preceding fiscal year shall be filed with the
county superintendent of schools of the county in which the local
educational agency is located, the department, and the Controller.
The Superintendent shall make any adjustments necessary in future
apportionments of all state funds, to correct any audit exceptions
revealed by those audit reports.
(i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall be responsible
for reviewing the audit exceptions contained in an audit of a local
educational agency under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have been
either corrected or an acceptable plan of correction has been
developed.
(2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall include in the
review of audit exceptions performed pursuant to this subdivision
those audit exceptions related to use of instructional materials
program funds, teacher misassignments pursuant to Section 44258.9,
information reported on the school accountability report card
required pursuant to Section 33126 and shall determine whether the
exceptions are either corrected or an acceptable plan of correction
has been developed.
(j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of the
audit by the county superintendent of schools having jurisdiction
over the local educational agency, the county office of education
shall do all of the following:
(1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited to,
those related to local control funding formula allocations pursuant
to Section 42238.02, as implemented by Section 42238.03, and
independent study.
(2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, then
the county superintendent of schools shall notify the local
educational agency and request the governing board of the local
educational agency to provide to the county superintendent of schools
a description of the corrections or plan of correction by March 15.
(3) Review the description of correction or plan of correction and
determine its adequacy. If the description of the correction or plan
of correction is not adequate, the county superintendent of schools
shall require the local educational agency to resubmit that portion
of its response that is inadequate.
(k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his or
her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review were
reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has been
submitted to the county superintendent of schools. In addition, the
county superintendent shall identify, by local educational agency,
any attendance-related audit exception or exceptions involving state
funds, and require the local educational agency to which the audit
exceptions were directed to submit appropriate reporting forms for
processing by the Superintendent.
( l ) In the audit of a local educational agency for a
subsequent year, the auditor shall review the correction or plan or
plans of correction submitted by the local educational agency to
determine if the exceptions have been resolved. If not, the auditor
shall immediately notify the appropriate county office of education
and the department and restate the exception in the audit report.
After receiving that notification, the department shall either
consult with the local educational agency to resolve the exception or
require the county superintendent of schools to follow up with the
local educational agency.
(m) (1) The Superintendent shall be responsible for ensuring that
local educational agencies have either corrected or developed plans
of correction for any one or more of the following:
(A) All federal and state compliance audit exceptions identified
in the audit.
(B) Any exceptions that the county superintendent certifies as of
May 15 have not been corrected.
(C) Any repeat audit exceptions that are not assigned to a county
superintendent to correct.
(2) In addition, the Superintendent shall be responsible for
ensuring that county superintendents of schools and each county board
of education that serves as the governing board of a local
educational agency either correct all audit exceptions identified in
the audits of county superintendents of schools and of the local
educational agencies for which the county boards of education serve
as the governing boards or develop acceptable plans of correction for
those exceptions.
(3) The Superintendent shall report annually to the Controller on
his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education that
serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).
(n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, commencing with 2002-03
audits pursuant to this section, the Controller shall require
auditors to categorize audit exceptions in each audit report in a
manner that will make it clear to both the county superintendent of
schools and the Superintendent which exceptions they are responsible
for ensuring the correction of by a local educational agency. In
addition, the Controller annually shall select a sampling of county
superintendents of schools and perform a followup of the audit
resolution process of those county superintendents of schools and
report the results of that followup to the Superintendent and the
county superintendents of schools that were reviewed.
(o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.
(p) If a governing board or county superintendent of schools fails
or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements for
the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be.
(q) Audits of regional occupational centers and programs are
subject to the provisions of this section.
(r) This section does not authorize examination of, or reports on,
the curriculum used or provided for in any local educational agency.
(s) Notwithstanding any other provision of law, a nonauditing,
management, or other consulting service to be provided to a local
educational agency by a certified public accounting firm while the
certified public accounting firm is performing an audit of the agency
pursuant to this section must be in accord with Government
Accounting Standards, Amendment No. 3, as published by the United
States General Accounting Office.
SEC. 23. Section 41303 of the Education Code is amended to read:
41303. The Superintendent shall report to the Controller, on or
before the 20th day of October of each year, the total average daily
attendance during the preceding fiscal year credited to all
kindergarten, including average daily attendance for transitional
kindergarten, elementary, high school, and adult schools in the state
and to county school tuition funds.
SEC. 24. Section 41544 of the Education Code is amended to read:
41544. (a) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read on
January 1, 2001, and that received an apportionment pursuant to
subdivision (h) of Section 42247.4, as that section read on January
1, 2001, because a court order directs pupils to transfer to that
school district as part of the court-ordered voluntary pupil transfer
program, the Superintendent, from the 2001-02 fiscal year to the
2012-13 fiscal year, inclusive, shall calculate an apportionment of
state funds for that basic aid school district that provides 70
percent of the school district revenue limit calculated pursuant to
Section 42238, as that section read on January 1, 2013, that would
have been apportioned to the school district from which the pupils
were transferred for the average daily attendance of any pupils
credited under that court order who did not attend the basic aid
school district before the 1995-96 fiscal year.
(b) (1) For a basic aid school district that was entitled to
reimbursement pursuant to Section 42247.4, as that section read on
January 1, 2001, and that received an apportionment pursuant to
subdivision (h) of Section 42247.4, as that section read on January
1, 2001, because a court order directs pupils to transfer to that
school district as part of the court-ordered voluntary pupil transfer
program, the Superintendent, commencing with the 2013-14 fiscal
year, shall calculate an apportionment of state funds for that basic
aid school district that provides 70 percent of the school district
local control funding formula base grant calculated pursuant to
subdivision (d) of Section 42238.02, as implemented by Section
42238.03, that would have been apportioned to the school district
from which the pupils were transferred for the average daily
attendance of any pupils credited under that court order who did not
attend the basic aid school district before the 1995-96 fiscal year.
(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district from which the pupil or pupils
were transferred is funded pursuant to Section 42238.02 in the prior
fiscal year, the Superintendent shall apportion, for average daily
attendance credited pursuant to paragraph (1), 70 percent of the sum
of the entitlements for the school district from which the pupil or
pupils were transferred for the specified fiscal year as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a), and
paragraph (3) of subdivision (b), of Section 42238.03, divided by
the average daily attendance of that school district for that fiscal
year and then multiplied by the ratio of local control formula base
grant funding computed pursuant to subdivision (d) of Section
42238.02 to the local control funding formula amount for that fiscal
year computed pursuant to Section 42238.02.
(c) For purposes of subdivision (b) of this section, "basic aid
school district" means a school district that does not receive from
the state, for any fiscal year in which this section is applied, an
apportionment of state funds pursuant to subdivision (o) of Section
42238.02.
SEC. 25. Section 42127 of the Education Code is amended to read:
42127. (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
(1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection.
(A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
(B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(2) Adopt a budget. Not later than five days after that adoption
or by July 1, whichever occurs first, the governing board of the
school district shall file that budget with the county superintendent
of schools. The budget and supporting data shall be maintained and
made available for public review. If the governing board of the
school district does not want all or a portion of the property tax
requirement levied for the purpose of making payments for the
interest and redemption charges on indebtedness as described in
paragraph (1) or (2) of subdivision (b) of Section 1 of Article XIII
A of the California Constitution, the budget shall include a
statement of the amount or portion for which a levy shall not be
made. For the 2014-15 fiscal year and each fiscal year thereafter,
the governing board of the school district shall not adopt a budget
before the governing board of the school district adopts
a local control and
accountability plan, if an existing local control and accountability
plan or annual update to a local control and accountability plan is
not effective for the budget year. The governing board of a school
district shall not adopt a budget that does not include the
expenditures necessary to implement the local control and
accountability plan or the annual update to a local control and
accountability plan that is effective during the subsequent fiscal
year.
(b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
(c) The county superintendent of schools shall do all of the
following:
(1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
(2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than three 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.
(d) On or before August 15, the county superintendent of schools
shall approve, conditionally approve, or disapprove the adopted
budget for each school district. For the 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 a school district does
not submit a budget to the county superintendent of schools, the
county superintendent of schools shall develop, at school district
expense, a budget for that school district by September 15 and
transmit that budget to the governing board of the school district.
The budget prepared by the county superintendent of schools shall be
deemed adopted, unless the county superintendent of schools approves
any modifications made by the governing board of the school district.
The approved budget shall be used as a guide for the school district'
s priorities. The Superintendent shall review and certify the budget
approved by the county. If, pursuant to the review conducted pursuant
to subdivision (c), the county superintendent of schools determines
that the adopted budget for a school district does not satisfy
paragraph (1) or (2) of that subdivision, he or she shall
conditionally approve or disapprove the budget and, not later than
August 15, transmit to the governing board of the school district, in
writing, his or her recommendations regarding revision of the budget
and the reasons for those recommendations, including, but not
limited to, the amounts of any budget adjustments needed before he or
she can approve that budget. The county superintendent of schools
may assign a fiscal adviser to assist the school district to develop
a budget in compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the superintendent's review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than August 20. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Before revising the
budget, the governing board of the school district shall hold a
public hearing regarding the proposed revisions, to be conducted in
accordance with Section 42103. In addition, if the adopted budget is
disapproved pursuant to subdivision (d), the governing board of the
school district and the county superintendent of schools shall review
the disapproval and the recommendations of the county superintendent
of schools regarding revision of the budget at the public hearing.
The revised budget and supporting data shall be maintained and made
available for public review.
(1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
(2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
(g) The county superintendent of schools shall examine the revised
budget to determine whether it (1) complies with the standards and
criteria adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (2) allows the
school district to meet its financial obligations during the fiscal
year, (3) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, and (4) is consistent with a financial plan that will enable
the school district to satisfy its multiyear financial commitments,
and, not later than October 8, shall approve or disapprove the
revised budget. If the county superintendent of schools disapproves
the budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree
to waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent of schools immediately has the authority and
responsibility provided in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by November 30. If
no budget is adopted by November 30, the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by December 10 if any
school district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by November 30. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those school districts pursuant to
subdivision (d).
(i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3), rather than by subdivisions (e) and (g), if the
governing board of the school district so elects and notifies the
county superintendent of schools in writing of that decision, not
later than October 31 of the immediately preceding calendar year. On
or before July 1, the governing board of a school district for which
the budget review is governed by this subdivision, rather than by
subdivisions (e) and (g), shall conduct a public hearing regarding
its proposed budget in accordance with Section 42103.
(1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board of the
school district and respond to those recommendations. The response
shall include any revisions to the adopted budget and other proposed
actions to be taken, if any, as a result of those recommendations.
(2) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
(3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. If the county superintendent of schools disapproves the
budget, he or she shall call for the formation of a budget review
committee pursuant to Section 42127.1, unless the governing board of
the school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed and
the department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver, the
county superintendent has the authority and responsibility provided
to a budget review committee in Section 42127.3. Upon approving a
waiver of the budget review committee, the department shall ensure
that a balanced budget is adopted for the school district by November
30. The Superintendent shall report to the Legislature and the
Director of Finance by December 10 if any school district, including
a school district that has received a waiver of the budget review
committee process, does not have an adopted budget by November 30.
This report shall include the reasons why a budget has not been
adopted by the deadline, the steps being taken to finalize budget
adoption, and the date the adopted budget is anticipated. For the
2011-12 fiscal year, notwithstanding any of the standards and
criteria adopted by the state board pursuant to Section 33127, the
county superintendent of schools, as a condition on approval of a
school district budget, shall not require a school district to
project a lower level of revenue per unit of average daily attendance
than it received in the 2010-11 fiscal year nor require the school
district to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
(4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.
(j) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
SEC. 26. Section 42238 of the Education Code is amended to read:
42238. (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
(b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
(1) The inflation adjustment specified in Section 42238.1.
(2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
(3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
(4) For the 1985-86 fiscal year, the amount per unit of average
daily attendance received in the 1984-85 fiscal year pursuant to
Section 42238.7.
(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
(6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
(7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
(8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
(c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
(B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
(2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5 by the total adjustments in funding for
each district made for the 2007-08 fiscal year pursuant to Section
42238.22 as it read on January 1, 2009.
(d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
(e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
(f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
(g) The reduction required by subdivision (f) shall be calculated
as follows:
(1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately before the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
(2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
(A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
(B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
(3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
(A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
(B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
(4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
(h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
(1) The district's property tax revenue received pursuant to
Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) (A) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except for any amount received
pursuant to Section 33401 or 33676 of the Health and Safety Code that
is used for land acquisition, facility construction, reconstruction,
or remodeling, or deferred maintenance, except for any amount
received pursuant to Section 33492.15 of, paragraph (4) of
subdivision (a) of Section 33607.5 of, or Section 33607.7 of, the
Health and Safety Code that is allocated exclusively for educational
facilities.
(B) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, and 34188 of the Health and Safety Code.
(C) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
(7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the school district is the sponsoring local educational agency, as
defined in Section 47632, and who reside in and would otherwise have
been eligible to attend a noncharter school of the school district.
(i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving school district receiving a revenue limit apportionment for
those pupils that exceeds 105 percent of the statewide average
revenue limit for the type and size of the receiving school district.
(j) Commencing with the 2013-14 fiscal year, this section shall be
used only for purposes of allocating revenues received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(k) This section shall become inoperative on July 1, 2021, and, as
of January 1, 2022, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2022, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 27. Section 42238.01 is added to the Education Code, to read:
42238.01. For purposes of Section 42238.02, the following
definitions shall apply:
(a) "Eligible for free or reduced-price meal" means determined to
meet federal eligibility criteria for free or reduced-price meals as
specified in Section 49531, as that section read on January 1, 2013,
except in regard to meals in family day care homes.
(b) "Foster youth" means a foster child, as described in
subdivision (a) of Section 48853.5, or 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:
(1) 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.
(2) 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.
(3) He or she is participating in a transitional independent
living case plan pursuant to Section 475(8) of the federal Social
Security Act (42 U.S.C. Sec. 675(8)), as contained in the federal
Fostering Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351), as described in Section 11403 of the Welfare
and Institutions Code.
(c) "Pupils of limited English proficiency" means pupils who do
not have the clearly developed English language skills of
comprehension, speaking, reading, and writing necessary to receive
instruction only in English at a level substantially equivalent to
pupils of the same age or grade whose primary language is English.
"English learner" shall have the same meaning as is provided for in
subdivision (a) of Section 306 and as "pupils of limited English
proficiency."
SEC. 28. Section 42238.02 is added to the Education Code, to read:
42238.02. (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
(b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner, eligible to receive a free or
reduced-price meal, or is a foster youth. A pupil shall be counted
only once for purposes of this section if any of the following apply:
(A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
(B) The pupil is classified as an English learner and is a foster
youth.
(C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
(D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
(2) Commencing with the 2013-14 fiscal year, a school district or
charter school shall annually report its enrolled free and
reduced-price meal eligibility, foster youth, and English learner
pupil-level records to the Superintendent using the California
Longitudinal Pupil Achievement Data System.
(3) (A) Commencing with the 2013-14 fiscal year, a county office
of education shall review and validate reported English learner,
foster youth, and free or reduced-price meal eligible pupil data for
school districts and charter schools under its jurisdiction to ensure
the data is reported accurately. The Superintendent shall provide
each county office of education with appropriate access to school
district and charter school data reports in the California
Longitudinal Pupil Achievement Data System for purposes of ensuring
data reporting accuracy.
(B) The Controller shall include the instructions necessary
to enforce paragraph (2) in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the English learner, foster
youth, and free or reduced-price meal eligible pupil counts are
consistent with the school district's or charter school's English
learner, foster youth, and free or reduced-price meal eligible pupil
records.
(4) The Superintendent shall make the calculations pursuant to
this section using the data submitted by local educational agencies,
including charter schools, through the California Longitudinal Pupil
Achievement Data System. The Superintendent shall authorize school
districts and charter schools to review and revise, as necessary,
their submitted data on English learner, foster youth, and free or
reduced-price meal eligible pupil counts to ensure the accuracy of
data reflected in the California Longitudinal Pupil Achievement Data
System.
(5) The Superintendent shall annually compute the percentage of
unduplicated pupils for each school district and charter school by
dividing the enrollment of unduplicated pupils in a school district
or charter school by the total enrollment in that school district or
charter school pursuant to all of the following:
(A) For the 2013-14 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 fiscal year by the sum of the total pupil
enrollment for the 2013-14 fiscal year.
(B) For the 2014-15 fiscal year, divide the sum of unduplicated
pupils for the 2013-14 and 2014-15 fiscal years by the sum of the
total pupil enrollment for the 2013-14 and 2014-15 fiscal years.
(C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of unduplicated pupils for the current fiscal year and
the two prior fiscal years by the sum of the total pupil enrollment
for the current fiscal year and the two prior fiscal years.
(c) Commencing with the 2013-14 fiscal year and each fiscal year
thereafter, the Superintendent shall annually calculate a local
control funding formula grant for each school district and charter
school in the state pursuant to this section.
(d) The Superintendent shall compute a grade span adjusted base
grant equal to the total of the following amounts:
(1) For the 2013-14 fiscal year, a base grant of:
(A) Six thousand eight hundred forty-five dollars ($6,845) for
average daily attendance in kindergarten and grades 1 to 3,
inclusive.
(B) Six thousand nine hundred forty-seven dollars ($6,947) for
average daily attendance in grades 4 to 6, inclusive.
(C) Seven thousand one hundred fifty-four dollars ($7,154) for
average daily attendance in grades 7 and 8.
(D) Eight thousand two hundred eighty-nine dollars ($8,289) for
average daily attendance in grades 9 to 12, inclusive.
(2) In each year the grade span adjusted base grants in paragraph
(1) shall be adjusted by the percentage change in the annual average
value of the Implicit Price Deflator for State and Local Government
Purchases of Goods and Services for the United States, as published
by the United States Department of Commerce for the 12-month period
ending in the third quarter of the prior fiscal year. This percentage
change shall be determined using the latest data available as of May
10 of the preceding fiscal year compared with the annual average
value of the same deflator for the 12-month period ending in the
third quarter of the second preceding fiscal year, using the latest
data available as of May 10 of the preceding fiscal year, as reported
by the Department of Finance.
(3) (A) The Superintendent shall compute an additional adjustment
to the kindergarten and grades 1 to 3, inclusive, base grant as
adjusted for inflation pursuant to paragraph (2) equal to 10.4
percent. The additional grant shall be calculated by multiplying the
kindergarten and grades 1 to 3, inclusive, base grant as adjusted by
paragraph (2) by 10.4 percent.
(B) Until paragraph (4) of subdivision (b) of Section 42238.03 is
effective, as a condition of the receipt of funds in this paragraph,
a school district shall make progress toward maintaining an average
class enrollment of not more than 24 pupils for each schoolsite in
kindergarten and grades 1 to 3, inclusive, unless a collectively
bargained alternative annual average class enrollment for each
schoolsite in those grades is agreed to by the school district,
pursuant to the following calculation:
(i) Determine a school district's average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, in the
prior year. For the 2013-14 fiscal year, this amount shall be the
average class enrollment for each schoolsite for kindergarten and
grades 1 to 3, inclusive, in the 2012-13 fiscal year.
(ii) Determine a school district's percentage of total need
pursuant to paragraph (2) of subdivision (b) of Section 42238.03.
(iii) Determine the percentage of the need calculated in clause
(ii) that is met by funding provided to the school district pursuant
to paragraph (3) of subdivision (b) of Section 42238.03.
(iv) Determine the difference between the amount computed pursuant
to clause (i) and an average class enrollment of not more than 24
pupils.
(v) Calculate a current year average class enrollment adjustment
for each schoolsite for kindergarten and grades 1 to 3, inclusive,
equal to the adjustment calculated in clause (iv) multiplied by the
percentage determined pursuant to clause (iii).
(C) School districts that have an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of 24
pupils or less for each schoolsite in the 2012-13 fiscal year, shall
be exempt from the requirements of subparagraph (B) so long as the
school district continues to maintain an average class enrollment for
each schoolsite for kindergarten and grades 1 to 3, inclusive, of
not more than 24 pupils, unless a collectively bargained alternative
ratio is agreed to by the school district.
(D) Upon full implementation of the local control funding formula,
as a condition of the receipt of funds in this paragraph, all school
districts shall maintain an average class enrollment for each
schoolsite for kindergarten and grades 1 to 3, inclusive, of not more
than 24 pupils for each schoolsite in kindergarten and grades 1 to
3, inclusive, unless a collectively bargained alternative ratio is
agreed to by the school district.
(E) The average class enrollment requirement for each schoolsite
for kindergarten and grades 1 to 3, inclusive, established pursuant
to this paragraph shall not be subject to waiver by the state board
pursuant to Section 33050 or by the Superintendent.
(F) The Controller shall include the instructions necessary to
enforce this paragraph in the audit guide required by Section
14502.1. The instructions shall include, but are not necessarily
limited to, procedures for determining if the average class
enrollment for each schoolsite for kindergarten and grades 1 to 3,
inclusive, exceeds 24, or an alternative average class enrollment for
each schoolsite pursuant to a collectively bargained alternative
ratio. The procedures for determining average class enrollment for
each schoolsite shall include criteria for employing sampling.
(4) (A) The Superintendent shall compute an additional adjustment
to the base grant for grades 9 to 12, inclusive, as adjusted for
inflation pursuant to paragraph (2), equal to 2.6 percent. The
additional grant shall be calculated by multiplying the base grant
for grades 9 to 12, inclusive, as adjusted by paragraph (2), by 2.6
percent.
(B) A school district or charter school shall expend funds
appropriated pursuant to this paragraph on pupils enrolled in grades
9 to 12, inclusive, for any purposes or programs that support a
school district or charter school in achieving its goals for college
and career readiness as described in a school district's local
control and accountability plan pursuant to subparagraph (C) of
paragraph (4) of subdivision (d) of Section 52060, or a charter
school's plan pursuant to Section 47605, 47605.6, or 47606.5, as
applicable.
(C) As a condition of the receipt of funds pursuant to this
paragraph, a school district or charter school shall report such
pupil-level college and career readiness information as may be
approved by the state board to implement subparagraph (ii) of
subparagraph (F) of paragraph (4) of subdivision (a) of Section
52052.
(D) Funds apportioned pursuant to this paragraph are specifically
intended to fund, and shall be first used to offset, the costs of any
new programs or higher levels of service required by this paragraph.
(e) The Superintendent shall compute a supplemental grant add-on
equal to 20 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for
each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b). The supplemental grant shall be calculated by
multiplying the base grants as specified in subparagraphs (A) to (D),
inclusive, of paragraph (1), as adjusted by paragraphs (2) to (4),
inclusive, of subdivision (d), by 20 percent and by the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in that school district or charter school. The
supplemental grant shall be expended in accordance with the
regulations adopted pursuant to Section 42238.07.
(f) The Superintendent shall compute a concentration grant add-on
equal to 50 percent of the base grants as specified in subparagraphs
(A) to (D), inclusive, of paragraph (1) of subdivision (d), as
adjusted by paragraphs (2) to (4), inclusive, of subdivision (d), for
each school district's or charter school's percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district's or
charter school's total enrollment. The concentration grant shall be
calculated by multiplying the base grant as specified in
subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision
(d), as adjusted by paragraphs (2) to (4), inclusive, of subdivision
(d), by 50 percent and by the percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the total enrollment in that school district or charter
school. For a charter school physically located in only one school
district, the percentage of unduplicated pupils calculated pursuant
to paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed the percentage of
unduplicated pupils calculated pursuant to paragraph (5) of
subdivision (b) in excess of 55 percent of the school district in
which the charter school is physically located. For a charter school
physically located in more than one school district, the charter
school's percentage of unduplicated pupils calculated pursuant to
paragraph (5) of subdivision (b) in excess of 55 percent used to
calculate concentration grants shall not exceed that of the school
district with the highest percentage of unduplicated pupils
calculated pursuant to paragraph (5) of subdivision (b) in excess of
55 percent of the school districts in which the charter school has a
school facility. The concentration grant shall be expended in
accordance with the regulations adopted pursuant to Section 42238.07.
(g) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Targeted Instructional Improvement Block Grant program, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2, for the
2012-13 fiscal year, as that article read on January 1, 2013. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount of funding
received by the school district or charter school from that program
in the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
(h) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Home-to-School Transportation program, as set forth in former Article
2 (commencing with Section 39820) of Chapter 1 of Part 23.5, former
Article 10 (commencing with Section 41850) of Chapter 5, and the
Small School District Transportation program, as set forth in former
Article 4.5 (commencing with Section 42290), for the 2012-13 fiscal
year. A school district or charter school shall not receive a total
funding amount from this add-on greater than the total amount
received by the school district or charter school for that program in
the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
(i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:
(A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05.
(B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.
(2) (A) The amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied
by subparagraph (A) or (B) of paragraph (1), as appropriate.
(B) The amount added pursuant to this paragraph shall not change
the calculation of a school district's or charter school's
supplemental grant or concentration grant.
(j) The Superintendent shall adjust the sum of each school
district's or charter school's amount determined in subdivisions (g)
to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:
(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
(7) The amount, if any, received pursuant to Sections 34183 and
34188 of the Health and Safety Code.
(8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
(k) A school district shall annually transfer to each of its
charter schools funding in lieu of property taxes pursuant to Section
47635.
(l) (1) Nothing in this section shall be interpreted to authorize
a school district that receives funding on behalf of a charter school
pursuant to Section 47651 to redirect this funding for another
purpose unless otherwise authorized in law pursuant to paragraph (2)
or pursuant to an agreement between a charter school and its
chartering authority.
(2) A school district that receives funding on behalf of a locally
funded charter school pursuant to paragraph (2) of subdivision (b)
of Section 42605, Section 42606, and subdivision (b) of Section 47634
in the 2012-13 fiscal year may annually redirect for another purpose
a percentage of the amount of the funding received on behalf of that
charter school. The percentage of funding that may be redirected
shall be determined pursuant to the following computation:
(A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.
(ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.
(iii) Subtract the amount computed pursuant to paragraphs (1) to
(3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i) of
Section 42238.02.
(iv) Compute a percentage by dividing the sum of the amounts
computed to clauses (i) and (ii) by the amount computed pursuant to
clause (iii).
(B) Multiply the percentage computed pursuant to subparagraph (A)
by the amount of funding the school district received on behalf of
the charter school pursuant to paragraph (2) of subdivision (b) of
Section 42605, Section 42606, and subdivision (b) of Section 47634
for the 2012-13 fiscal year.
(C) The maximum amount that may be redirected shall be the lesser
of the amount of funding the school district received on behalf of
the charter school pursuant to paragraph (2) of subdivision (b) of
Section 42605, Section 42606, and subdivision (b) of Section 47634
for the 2012-13 fiscal year or the amount computed pursuant to
subparagraph (B).
(3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount of
funding the schoolsite received pursuant to the charter school block
grant in the 2012-13 fiscal year.
(m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47660, 47632, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation Code,
shall be made exclusive of the revenue received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(n) A school district that does not receive an apportionment of
state funds pursuant to this section as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subdivision (d) of Section 42238.03 shall be
considered a "basic aid school district" or an "excess tax entity."
(o) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of Chapter
6.1 of Part 28 of Division 4 of Title 2.
SEC. 29. Section 42238.025 is added to the Education Code, to
read:
42238.025. (a) In the 2013-14 fiscal year, the Superintendent
shall compute an economic recovery target rate for each school
district and charter school equal to the sum of the following:
(1) (A) For each school district, the school district's revenue
limit in the 2012-13 fiscal year as computed pursuant to this
article, as this article read on January 1, 2013, divided by the
2012-13 fiscal year average daily attendance of the school district
computed pursuant to Section 42238.05.
(B) For each charter school, the charter school's general purpose
funding as computed pursuant to Article 2 (commencing with Section
47633) of Chapter 6 of Part 26.8 of Division 4, as that article read
on January 1, 2013, and the in-lieu property tax amount provided to
the charter school pursuant to Section 47635, as that section read on
January 1, 2013, divided by the 2012-13 fiscal year average daily
attendance of the school district computed pursuant to Section
42238.05.
(C) The amounts determined pursuant to subparagraphs (A) and (B)
of this paragraph shall not reflect the deficit factor adjustments
set forth in Section 42238.146 as that section read on January 1,
2013.
(D) The amounts determined pursuant to this subdivision shall be
adjusted for the cost of living for the 2013-14 fiscal year pursuant
to paragraph (2) of subdivision (d) of Section 42238.02 and an annual
average cost-of-living adjustment of 1.94 percent for the 2014-15
fiscal year to the 2020-21 fiscal year, inclusive.
(2) (A) For each school district and charter school the sum of the
entitlements from items contained in Section 2.00 of the Budget Act
of 2012 for Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, 6360-101-0001, 2012-13 fiscal year funding for the
Class Size Reduction Program pursuant to Chapter 6.10 (commencing
with Section 52120) of Part 28 of Division 4, as it read on January
1, 2013, and 2012-13 fiscal year funding for the community day school
mandatorily expelled pupils program pursuant to subdivision (c) of
Section 48915, divided by the 2012-13 fiscal year average daily
attendance of the school district computed pursuant to Section
42238.05.
(B) The amounts determined pursuant to this subdivision shall not
be adjusted for the reduction set forth in Section 12.42 of the
Budget Act of 2012.
(b) Of the amounts computed for school districts pursuant to
subdivision (a), the Superintendent shall determine the funding rate
per unit of average daily attendance above which fall not more than
10 percent of the total number of school districts statewide.
(c) The Superintendent shall compute a 2020-21 fiscal year local
control funding formula rate for each school district and charter
school equal to the amount computed pursuant to Section 42238.02 for
the 2013-14 fiscal year, adjusted for an annual average
cost-of-living adjustment of 1.94 percent for the 2014-15 fiscal year
to the 2020-21 fiscal year, inclusive, divided by the 2012-13 fiscal
year average daily attendance of the school district or charter
school computed pursuant to Section 42238.05.
(d) (1) For each school district and charter school that has a
funding rate per unit of average daily attendance computed pursuant
to subdivision (a) that is equal to, or below, the funding rate per
unit of average daily attendance determined pursuant to subdivision
(b), the Superintendent shall subtract the amount computed pursuant
to subdivision (c) from the amount computed pursuant to subdivision
(a). Each school district or charter school for which this
calculation yields an amount greater than zero shall be eligible for
an economic recovery target payment equal to the amount of the
difference. A school district or charter school that has a funding
rate per unit of average daily attendance calculated pursuant to
subdivision (a) that exceeds the rate calculated pursuant to
subdivision (b) shall not be eligible for an economic recovery target
payment.
(2) Each school district or charter school eligible for an
economic recovery target payment pursuant to paragraph (1) shall
receive the following apportionments:
(A) For the 2013-14 fiscal year, one-eighth of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(B) For the 2014-15 fiscal year, two-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(C) For the 2015-16 fiscal year, three-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(D) For the 2016-17 fiscal year, four-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(E) For the 2017-18 fiscal year, five-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(F) For the 2018-19 fiscal year, six-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(G) For the 2019-20 fiscal year, seven-eighths of the amount
calculated pursuant to paragraph (1) multiplied by the 2012-13 fiscal
year average daily attendance computed pursuant to Section 42238.05.
(H) For the 2020-21 fiscal year and each fiscal year thereafter,
the amount calculated pursuant to paragraph (1) multiplied by the
2012-13 fiscal year average daily attendance computed pursuant to
Section 42238.05.
(3) In each fiscal year until a determination has been made that
all school districts and charter schools equal or exceed the local
control funding formula target computed pursuant to Section 42238.02,
as determined by the calculation of a zero difference pursuant to
paragraph (1) of subdivision (b) of Section 42238.03, the economic
recovery target payment apportioned to each eligible school district
or charter school pursuant to paragraph (2) shall be added to the
school district's or charter school's funding
amounts that are continuously appropriated
pursuant to subdivision (a) of Section 42238.03 and included in the
amount of funding that may be offset pursuant to subdivision (c) of
Section 42238.03. The amount apportioned pursuant to paragraph (2)
shall not receive a cost-of-living adjustment.
(4) Commencing with the first fiscal year in which all school
districts and charter schools are apportioned funding pursuant to
Section 42238.02, the economic recovery target payment amount
calculated pursuant to paragraph (2) for the applicable fiscal year
shall be included as an add-on to the amounts computed pursuant to
subdivisions (c) to (i), inclusive, of Section 42238.02 and included
in the amount of funding that may be offset pursuant to subdivision
(j) of Section 42238.02. The amount included as an add-on pursuant to
this paragraph shall not receive a cost-of-living adjustment.
SEC. 30. Section 42238.03 is added to the Education Code, to read:
42238.03. (a) Commencing with the 2013-14 fiscal year and each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the local control funding formula
for each school district and charter school equal to the sum of the
amounts computed pursuant to paragraphs (1) to (4), inclusive. The
amounts computed pursuant to paragraphs (1) to (6), inclusive, shall
be continuously appropriated pursuant to Section 14002.
(1) The current fiscal year base entitlement funding level shall
be the sum of all of the following:
(A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05.
(B) (i) For charter schools, general purpose funding as computed
pursuant to Article 2 (commencing with Section 47633) of Chapter 6,
as that article read on January 1, 2013, and the amount of in-lieu
property tax provided to the charter school pursuant to Section
47635, as that section read on June 30, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant to
Section 42238.05. That quotient shall be multiplied by the current
fiscal year average daily attendance of the charter school computed
pursuant to Section 42238.05.
(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
(C) The amount computed pursuant to subparagraphs (A) and (B)
shall exclude funds received pursuant to Section 47633, as that
section read on January 1, 2013.
(D) The amount computed pursuant to subparagraph (A) shall exclude
amounts computed pursuant to Article 4 (commencing with Section
42280). Funding for qualifying necessary small high school and
necessary small elementary schools shall be adjusted pursuant Article
4 (commencing with Section 42280) and Section 42238.146, as those
provisions read on January 1, 2013.
(2) Entitlements from items contained in Section 2.00, as adjusted
pursuant to Section 12.42, of the Budget Act of 2012 for Items
6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001,
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4, as it read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (c) of
Section 48915. The entitlement for basic aid school districts shall
include the reduction of 8.92 percent as applied pursuant to
subparagraph (A) of paragraph (1) of subdivision (a) of Section 3 of
Chapter 2 of the Statutes of 2012.
(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant to
Section 42238.05. That quotient shall be multiplied by the current
fiscal year average daily attendance of the charter school computed
pursuant to Section 42238.05.
(4) The amount allocated to a school district or charter school
pursuant to paragraph (3) of subdivision (b) for the fiscal years
before the current fiscal year divided by the average daily
attendance of the school district or charter school for the fiscal
years before the current fiscal year computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the school district or charter
school computed pursuant to Section 42238.05.
(5) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code for purposes of providing instruction to
secondary pupils shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the regional occupational center or program joint powers
agency and the contracting school district.
(6) (A) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a home-to-school transportation joint
powers agency established in accordance with Article 1 (commencing
with Section 6500) of Chapter 5 of Division 7 of Title 1 of the
Government Code for purposes of providing pupil transportation shall
not redirect that funding for another purpose unless otherwise
authorized in law or pursuant to an agreement between the
home-to-school transportation joint powers agency and the contracting
school district.
(B) In addition to subparagraph (A), of the funds a school
district receives for home-to-school transportation programs pursuant
to Article 2 (commencing with Section 39820) of Chapter 1 of Part
23.5, and Article 10 (commencing with Section 41850) of Chapter 5,
the school district shall expend no less than the amount of funds the
school district expended for home-to-school transportation in the
2012-13 fiscal year.
(7) For the 2013-14 and 2014-15 fiscal years only, of the funds a
school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district expended
for purposes of regional occupational centers or programs, or adult
education, respectively, in the 2012-13 fiscal year.
(b) Compute an annual local control funding formula transition
adjustment for each school district and charter school as follows:
(1) Subtract the amount computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) from the amount computed for each
school district or charter school under the local control funding
formula entitlements computed pursuant to subdivision (i) of Section
42238.02. School districts and charter schools with a negative
difference shall be deemed to have a zero difference.
(2) Each school district's and charter school's total need as
calculated pursuant to paragraph (1) shall be divided by the sum of
all school districts' and charter schools' total need to determine
the school district's or charter school's respective proportions of
total need.
(3) Each school district's and charter school's proportion of
total need shall be multiplied by any available appropriations
specifically made for purposes of this subdivision, and added to the
school district's or charter school's funding amounts as calculated
pursuant to subdivision (a).
(4) If the total amount of funds appropriated for purposes of
paragraph (3) pursuant to this subdivision are sufficient to fully
fund any positive amounts computed pursuant to paragraph (1), the
local control funding formula grant computed pursuant to subdivision
(c) of Section 42238.02 shall be adjusted to ensure that any
available appropriation authority is expended for purposes of the
local control funding formula.
(5) Commencing with the first fiscal year after either paragraph
(4) or paragraph (2) of subdivision (h) applies, the adjustments in
paragraph (2) of subdivision (d) of Section 42238.02 shall be made
only if an appropriation for those adjustments is included in the
annual Budget Act.
(c) The Superintendent shall subtract from the amounts computed
pursuant to subdivisions (a) and (b) the sum of the following:
(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
(7) The amount, if any, received pursuant to Sections 34183 and
34188 of the Health and Safety Code.
(8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
(d) A school district or charter school that has a zero difference
pursuant to paragraph (1) of subdivision (b) in the prior fiscal
year shall receive an entitlement equal to the amount calculated
pursuant to Section 42238.02 in the current fiscal year and future
fiscal years.
(e) Notwithstanding the computations pursuant to subdivisions (b)
to (d), inclusive, and Section 42238.02, commencing with the 2013-14
fiscal year, a school district or charter school shall receive
state-aid funding of no less than the sum of the amounts computed
pursuant to paragraphs (1) to (3), inclusive.
(1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05 and then offset for local
revenues pursuant to subdivision (c) for the current fiscal year.
(B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2 (commencing
with Section 47633) of Chapter 6, as that article read on January 1,
2013, and the amount of in-lieu property tax provided to the charter
school in the 2012-13 fiscal year pursuant to Section 47635, as that
section read on January 1, 2013, divided by the 2012-13 average daily
attendance of the charter school computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the charter school computed pursuant
to Section 42238.05 and then offset for local revenues pursuant to
subdivision (c) for the current fiscal year.
(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
(C) The amount computed pursuant to subparagraphs (A) and (B)
shall exclude funds received pursuant to Section 47633, as that
section read on January 1, 2013.
(D) The amount computed pursuant to subparagraph (A) shall exclude
amounts computed pursuant to Article 4 (commencing with Section
42280). Funding for qualifying necessary small high school and
necessary small elementary schools shall be adjusted pursuant Article
4 (commencing with Section 42280) and Section 42238.146, as those
provisions read on January 1, 2013.
(E) The amount computed pursuant to subparagraphs (A) to (C),
inclusive, shall be reduced by the sum of the amount computed
pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).
(2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001,
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4, as it read on January 1, 2013, and
2012-13 fiscal year funding for pupils enrolled in community day
schools who are mandatorily expelled pursuant to subdivision (c) of
Section 48915. Notwithstanding Section 39 of Chapter 38 of the
Statutes of 2012, the entitlement for basic aid school districts
shall include the reduction of 8.92 percent as applied pursuant to
subparagraph (A) of paragraph (1) of subdivision (a) of Section 3 of
Chapter 2 of the Statutes of 2012.
(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school. That quotient shall
be multiplied by the current fiscal year average daily attendance of
the charter school.
(f) (1) For purposes of this section, commencing with the 2013-14
fiscal year and until all school districts and charter schools equal
or exceed their local control funding formula target computed
pursuant to Section 42238.02 as determined by the calculation of a
zero difference pursuant to paragraph (1) of subdivision (b), a newly
operational charter school shall be determined to have a prior year
per average daily attendance funding amount equal to the lesser of:
(A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement received
by that school district in the prior year by prior year average
daily attendance of that school district. For purposes of this
paragraph, a charter school that is physically located in more than
one school district shall use the calculated local control funding
entitlement per unit of average daily attendance of the school
district with the highest prior year funding amount per unit of
average daily attendance.
(B) The charter school's local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.
(2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school's local control funding formula target.
(3) Upon a determination that all school districts and charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02 in
that fiscal year and future fiscal years.
(g) (1) In each fiscal year the Superintendent shall determine the
percentage of school districts that are apportioned funding pursuant
to this section that is less than the amount computed pursuant to
Section 42238.02 as of the second principal apportionments of the
fiscal year. If the percentage is less than 10 percent, the
Superintendent shall apportion funding to the school districts and
charter schools equal to the amount computed pursuant to Section
42238.02 in that fiscal year.
(2) For each fiscal year thereafter, the Superintendent shall
apportion funding to a school district and charter school equal to
the amount computed pursuant to Section 42238.02.
SEC. 31. Section 42238.04 is added to the Education Code, to read:
42238.04. Notwithstanding any other law, revenue limit funding
for school districts and charter school block grant funding for
charter schools for the 2012-13 fiscal year and prior fiscal years
shall continue to be adjusted pursuant to Article 2 (commencing with
Section 42238), and Article 2 (commencing with Section 47633) of
Chapter 6 of Part 26.8 of Division 4, as those articles read on
January 1, 2013.
SEC. 32. Section 42238.05 is added to the Education Code, to read:
42238.05. (a) For purposes of Sections 42238.02 and 42238.03, the
fiscal year average daily attendance shall be computed pursuant to
paragraph (1) or (2).
(1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory.
(2) A school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of paragraphs (1), (3), and
(4), of subdivision (d) of Section 42238.02 by subtracting the amount
determined in subparagraph (B) from the amount determined in
subparagraph (A).
(A) The units of average daily attendance computed pursuant to
paragraph (1).
(B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
(b) For purposes of this article, regular average daily attendance
shall be the base grant average daily attendance.
(c) For purposes of this section, the Superintendent shall
distribute total ungraded enrollment and average daily attendance
among kindergarten and each of grades 1 to 12, inclusive, in
proportion to the amounts of graded enrollment and average daily
attendance, respectively, in each of these grades.
(d) For purposes of this section, the Superintendent shall
distribute average daily attendance generated by the difference
between prior year average daily attendance and current year average
daily attendance, if positive, among kindergarten and each of grades
1 to 12, inclusive, in proportion to the amounts of graded average
daily attendance, respectively, in each of these grades.
(e) This section shall only apply to average daily attendance
generated by school districts and shall not apply to average daily
attendance generated by charter schools.
(f) A pupil shall not be counted more than once for purposes of
calculating average daily attendance pursuant to this section.
SEC. 33. Section 42238.051 is added to the Education Code, to
read:
42238.051. (a) For purposes of paragraph (1) of subdivision (a)
of Section 42238.05, a sponsoring school district's average daily
attendance shall be computed as follows:
(1) Compute the sponsoring school district's regular average daily
attendance in the current year, excluding the attendance of pupils
in charter schools.
(2) (A) Compute the regular average daily attendance used to
calculate the second principal apportionment of the school district
for the prior year, excluding the attendance of pupils in charter
schools.
(B) Compute the attendance of pupils who attended one or more
noncharter schools of the school district between July 1, and the
last day of the second period, inclusive, in the prior year, and who
attended a charter school sponsored by the school district between
July 1, and the last day of the second period, inclusive, in the
current year. For purposes of this subparagraph, a pupil enrolled in
a grade at a charter school sponsored by the school district shall
not be counted if the school district does not offer classes for
pupils enrolled in that grade. The amount of the attendance counted
for any pupil for the purpose of this subparagraph may not be greater
than the attendance claimed for that pupil by the charter school in
the current year.
(C) Compute the attendance of pupils who attended a charter school
sponsored by the school district in the prior year and who attended
one or more noncharter schools of the school district in the current
year. The amount of the attendance counted for any pupil for the
purpose of this subparagraph may not be greater than the attendance
claimed for that pupil by the school district in the current year.
(D) From the amount determined pursuant to subparagraph (B),
subtract the amount determined pursuant to subparagraph (C). If the
result is less than zero, the amount shall be deemed to be zero.
(E) The prior year average daily attendance determined pursuant to
subparagraph (A) shall be reduced by the amount determined pursuant
to subparagraph (D).
(3) To the greater of the amounts computed pursuant to paragraphs
(1) and (2), add the regular average daily attendance in the current
year of all pupils attending charter schools sponsored by the school
district that are not funded through the charter schools local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03.
(b) For purposes of this section, a "sponsoring school district"
shall mean a "sponsoring local educational agency," as defined in
Section 47632, as that section read on January 1, 2013.
SEC. 34. Section 42238.052 is added to the Education Code, to
read:
42238.052. (a) Notwithstanding any other law, the prior year
average daily attendance for a school district determined pursuant to
subdivision (a) of Section 42238.051 shall be increased by the prior
year second principal apportionment average daily attendance of a
school district only for a school that meets the following
description:
(1) The school was a district noncharter school in any year before
the prior year.
(2) The school was operated as a district-approved charter school
in the prior year.
(3) The school is again operated as a district noncharter school
in the current year.
(b) An adjustment to prior year average daily attendance pursuant
to this section may not be made for the attendance of pupils who were
not residents of the school district in the prior year.
SEC. 35. Section 42238.053 is added to the Education Code, to
read:
42238.053. (a) The fiscal year average daily attendance computed
under Section 42238.05 shall be increased, for each school district
that operates a school that meets the eligibility requirements set
forth in subdivision (b), by the number of days of attendance of
pupils enrolled in eligible schools in the school district who are
currently migratory children, as defined by Section 54441, and who
are residing in state-operated migrant housing projects between the
second principal apportionment and the end of the regular school
year, divided by the number of days school was actually taught in the
regular day schools of the district, excluding Saturdays and
Sundays.
(b) For a school district to be eligible for purposes of this
section, the following conditions shall apply:
(1) One or more state-operated migrant housing projects are
located within the attendance area of the school.
(2) The maximum number of pupils enrolled in the school in the
relevant fiscal year who are currently migratory children, as
calculated under subdivision (a), constitutes not less than one-third
of the total pupil enrollment of the school.
(c) The Superintendent shall establish rules and regulations for
the implementation of this section.
SEC. 36. Section 42238.06 is added to the Education Code, to read:
42238.06. Commencing on July 1, 2013, except for Sections 42238,
42238.1, 42238.2, and 42238.5, or where the context requires
otherwise, all of the following shall apply:
(a) References to "revenue limit" shall instead refer to the
"local control funding formula."
(b) References to "the revenue limit calculated pursuant to
Section 42238" shall instead refer to "the local control funding
formula calculated pursuant to Section 42238.02, as implemented by
Section 42238.03."
(c) References to "Section 42238" shall instead refer to "Section
42238.02, as implemented pursuant to Section 42238.03."
(d) References to "Section 42238.1" shall instead refer to
"Section 42238.02."
(e) References to "Section 42238.5" shall instead refer to
"Section 42238.05."
(f) References to "general-purpose entitlement" shall instead
refer to "local control funding formula grant funding pursuant to
Section 42238.02, as implemented by Section 42238.03."
SEC. 37. Section 42238.07 is added to the Education Code, to
read:
42238.07. (a) On or before January 31, 2014, the state board
shall adopt regulations that govern the expenditure of funds
apportioned on the basis of the number and concentration of
unduplicated pupils pursuant to Sections 2574, 2575, 42238.02, and
42238.03. The regulations shall include, but are not limited to,
provisions that do all of the following:
(1) Require a school district, county office of education, or
charter school to increase or improve services for unduplicated
pupils in proportion to the increase in funds apportioned on the
basis of the number and concentration of unduplicated pupils in the
school district, county office of education, or charter school.
(2) Authorize a school district, county office of education, or
charter school to use funds apportioned on the basis of the number of
unduplicated pupils for schoolwide purposes, or, for school
districts, districtwide purposes, for county offices of education,
countywide purposes, or for charter schools, charterwide purposes, in
a manner that is no more restrictive than the restrictions provided
for in Title I of the federal No Child Left Behind Act of 2001 (20
U.S.C. Sec. 6301, et seq.).
(b) The state board may adopt emergency regulations for purposes
of this section.
SEC. 38. Section 42238.1 of the Education Code is amended to read:
42238.1. (a) For the 1986-87 fiscal year and each fiscal year up
to and including the 1998-99 fiscal year, the Superintendent of
Public Instruction shall compute an inflation adjustment equal to the
product of paragraphs (1) and (2):
(1) Compute the sum of the following:
(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
(B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 1 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 1 of the second preceding fiscal year, as reported by the
Department of Finance.
(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent of Public Instruction shall compute an inflation
adjustment equal to the product of paragraphs (1) and (2):
(1) Compute the sum of the following:
(A) The statewide average base revenue limit per unit of average
daily attendance for the prior fiscal year for districts of similar
type.
(B) The amount, if any, per unit of average daily attendance
received by the district pursuant to Article 8 (commencing with
Section 46200) of Chapter 2 of Part 26 for the prior fiscal year.
(2) The percentage change in the annual average value of the
Implicit Price Deflator for State and Local Government Purchases of
Goods and Services for the United States, as published by the United
States Department of Commerce for the 12-month period ending in the
third quarter of the prior fiscal year. This percentage change shall
be determined using the latest data available as of May 10 of the
preceding fiscal year compared with the annual average value of the
same deflator for the 12-month period ending in the third quarter of
the second preceding fiscal year, using the latest data available as
of May 10 of the preceding fiscal year, as report by the Department
of Finance.
(c) This section shall become operative July 1, 1986.
(d) Commencing with the 2013-14 fiscal year, this section shall be
used only for purposes of allocating revenues received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(e) This section shall become inoperative on July 1, 2021, and, as
of January 1, 2022, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2022, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 39. Section 42238.2 of the Education Code is amended to read:
42238.2. (a) (1) Notwithstanding Section 42238.5 or any other
provision of law, a school district that meets any of the following
conditions shall be entitled to an adjustment to its units of average
daily attendance pursuant to this section:
(A) The school district experiences a decline in the number of
units of average daily attendance in excess of 8 percent of its total
average daily attendance as a result of the closure of a facility
operated by a branch of the United States Armed Forces in the school
district's boundaries.
(B) The school district experiences a decline in the number of
units of average daily attendance that is less than 8 percent but at
least 5 percent of its total average daily attendance as a result of
the closure of a facility operated by a branch of the United States
Armed Forces in that school district's boundaries, upon a finding by
both the Superintendent of Public Instruction and the Director of
Finance that both of the following conditions exist:
(i) The school district demonstrates that at the end of a
three-year period the school district will experience a 10-percent
reduction in the amount of funding that the school district would
otherwise have received from state apportionments, funding received
pursuant to the California State Lottery Act of 1984 (Chapter 12.5
(commencing with Section 8880) of Division 1 of Title 2 of the
Government Code), and funding received pursuant to Title VIII of
Public Law 103-382, as a result of the loss of pupils related to the
closure of a facility operated by a branch of the United States Armed
Forces.
(ii) The fiscal crisis and management assistance team established
pursuant to Section 42127.8 has reviewed the school district's
finances and has found that the school district has taken significant
steps to reduce expenditure.
(C) The school district experiences a decline in the number of
units of average daily attendance in excess of 5 percent of its total
average daily attendance and the Director of Finance determines that
the school district is likely, within eight years of that decline,
to maintain a number of units of average daily attendance that is
equivalent to the number of units of average daily attendance
maintained by the school district prior to the decline.
Notwithstanding subdivision (b), loan repayments shall commence no
later than the fourth year after the base year or at a later time, as
determined by the Director of Finance.
(2) For purposes of this section, the year preceding a decline
shall be the base year.
(b) In the second year after the base year, the district average
daily attendance pursuant to Section 42238.5 may, if the district
chooses, be increased by 75 percent of the difference between the
base year units of average daily attendance and the units of average
daily attendance in the first year of decline. In the third year
after the base year, the district average daily attendance pursuant
to Section 42238.5 may, if the district chooses, be increased by 50
percent of the difference between the base year units of average
daily attendance and the units of average daily attendance in the
first year of decline. The amount of money represented by these
increases shall be considered a loan to the school district. Loan
repayments shall commence no later than the fourth year after the
base year.
(c) (1) The Superintendent of Public Instruction, in consultation
with a school district subject to this section, shall determine a
schedule for repayment of the total amount loaned pursuant to this
section which may not exceed 10 years. Payments shall include
interest charged at a rate based on the most current investment rate
of the Pooled Money Investment Account in the General Fund as of the
date of the disbursement of funds to the school district.
(2) Upon written notification by the Superintendent of Public
Instruction that the school district has not made one or more of the
payments required by the schedule established pursuant to paragraph
(1), the Controller shall withhold from Section A of the State School
Fund the defaulted payment which shall not exceed the amount of any
apportionment entitlement of the district to moneys in Section A of
the State School Fund. In that regard, the Controller shall withhold
the amount of any payment made under this subdivision, including
reimbursement of the Controller's administrative costs as determined
under a schedule approved by the California Debt Advisory Commission,
from subsequent apportionments to the school district from Section A
of the State School Fund.
(3) Any apportionments made by the Controller pursuant to
paragraph (2) shall be deemed to be an allocation to the school
district for purposes of subdivision (b) of Section 8 of Article XVI
of the California Constitution, and for purposes of Chapter 2
(commencing with Section 41200) of Part 24.
(d) In no event shall the adjustment provided by this section
cause the apportionment to a school district to exceed the amount
that would otherwise be calculated for apportionment to the district
pursuant to Sections 42238 and 42238.1.
(e) This section does not apply to a school district that
experiences a decline in enrollment as a result of a school district
reorganization pursuant to Chapter 3 (commencing with Section 35500)
of Part 21 or any other law.
(f) Commencing with the 2013-14 fiscal year, this section shall be
used only for purposes of allocating revenues received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(g) This section shall become inoperative on July 1, 2021, and, as
of January 1, 2022, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2022, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 40. Section 42238.5 of the Education Code is amended to read:
42238.5. (a) For purposes of Section 42238, the fiscal year
average daily attendance shall be computed pursuant to paragraph (1)
or (2).
(1) The second principal apportionment regular average daily
attendance for either the current or prior fiscal year, whichever is
greater. However, prior fiscal year average daily attendance shall be
adjusted for any loss or gain of average daily attendance due to a
reorganization or transfer of territory, or, commencing in the
1993-94 fiscal year, and each fiscal year thereafter, for any change
in average daily attendance for pupils who are concurrently enrolled
in adult programs and classes pursuant to Section 52616.17.
(2) Any school district that elects to receive funding pursuant to
Article 4 (commencing with Section 42280) shall compute its units of
average daily attendance for purposes of Section 42238 by
subtracting the amount determined in subparagraph (B) from the amount
determined in subparagraph (A).
(A) The units of average daily attendance computed pursuant to
paragraph (1).
(B) The units of average daily attendance resulting from pupils
attending schools funded pursuant to Article 4 (commencing with
Section 42280).
(b) For purposes of this article, regular average daily attendance
shall be the base revenue limit average daily attendance, excluding
summer school average daily attendance.
(c) For purposes of this section, for the 1998-99 fiscal year
only, the prior year average daily attendance shall be the 1997-98
regular average daily attendance, excluding absences excused pursuant
to subdivision (b) of Section 46010, as that subdivision read on
July 1, 1996.
(d) Commencing with the 2013-14 fiscal year, this section shall be
used only for purposes of allocating revenues received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
(e) This section shall become inoperative on July 1, 2021, and, as
of January 1, 2022, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2022, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 41. Section 42238.15 of the Education Code is amended to
read:
42238.15. (a) Notwithstanding any other law, and in lieu of any
inflation or cost-of-living adjustment otherwise authorized for any
of the programs enumerated in subdivision (b), state funding for the
programs enumerated in subdivision (b) shall be increased annually by
the product of the following:
(1) The sum of 1.0 plus the percentage change determined under
paragraph (2) of subdivision (d) of Section 42238.02.
(2) The sum of 1.0 plus the percentage of increase, from the prior
fiscal year to the current fiscal year, in each of the workload
factors described in subdivision (b).
(b) The programs for which annual state funding increases are
determined under this section, and the factors used to measure
workload for each of those programs, are as follows:
(1) Special education programs and services, as measured by the
regular second principal apportionment average daily attendance for
kindergarten and grades 1 to 12, inclusive.
(2) Child care and development programs, and preschool programs,
as measured by the state population of children up to and including
four years of age.
(c) Notwithstanding any other law, child care and development
programs shall not receive a cost-of-living adjustment in the
2012-13, 2013-14, and 2014-15 fiscal years.
SEC. 42. 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 42281, 42282,
or 42284 the Superintendent shall compute, for each qualifying
school in the school district, an amount pursuant to this article.
(b) For each school district that is a countywide unified school
district that had fewer than 2,501 units of average daily attendance
in the 1990-91 fiscal year, the Superintendent shall compute an
amount pursuant to this article for those schools that meet the
conditions specified in Sections 42283 and 42285 in the current or
prior fiscal year. This subdivision is only applicable to those
schools funded pursuant to this article in the 1990-91 fiscal year
and, in subsequent years, if the school district has no more than
3,000 units of average daily attendance.
SEC. 43. Section 42281 of the Education Code is amended to read:
42281. Except as specified in paragraph (4), for each elementary
school district that maintains only one school with a second
principal apportionment average daily attendance of less than 97, the
Superintendent shall make one of the following computations,
whichever provides the lesser amount:
(a) For each small school that 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 small school that 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 small school that 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 small school that 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). A school district that qualifies
under this subdivision may use this funding calculation until the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance multiplied by the average daily attendance produces
state aid equal to the small school funding formula.
SEC. 44. 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 qualifies under this section may use
this funding calculation until the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance multiplied by the
average daily attendance produces state aid equal to the small school
funding formula.
SEC. 45. Section 42282.1 of the Education Code is repealed.
SEC. 46. Section 42283 of the Education Code is amended to read:
42283. (a) For purposes of Sections 42281 and 42282, a "necessary
small school" is an elementary school with an average daily
attendance of less than 97, exclusive of pupils attending the seventh
and eighth grades of a junior high school, maintained by a school
district to which school 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, exclusive of
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 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, exclusive of
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 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 which 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 which 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, exclusive of grades
7 and 8 of a junior high school.
SEC. 47. Section 42283.1 of the Education Code is repealed.
SEC. 48. Section 42283.2 of the Education Code is repealed.
SEC. 49. Section 42284 of the Education Code is amended to read:
42284. (a) For each district with fewer than 2,501 units of
average daily attendance, on account of each necessary small high
school, the county superintendent of schools 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
Average of Amount 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
01-114 ........ 9 449,220
115-129 ....... 10 492,200
130-143 ....... 11 535,180
44-171 ........ 12 578,160
172-210 ....... 13 621,140
211-248 ....... 14 664,120
249-286 ....... 15 707,100
(b) For purposes of this section, a "certificated employee" means
an equivalent full-time position of an individual holding a
credential authorizing service and providing service in grades 9 to
12, inclusive, in any secondary school. Any fraction of an equivalent
full-time position remaining after all equivalent full-time
positions for certificated employees within the district have been
calculated shall be deemed to be a full-time position.
(c) A school district that qualifies under this section may use
the funding calculation as provided in this section until the local
control funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily attendance
multiplied by the average daily attendance produces state aid equal
to the funding provided under this section.
SEC. 50. Section 42285 of the Education Code is amended to read:
42285. (a) For the purposes of Section 42284, a necessary small
high school is a high school with an average daily attendance of less
than 287 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 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 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 or more
and less than 144 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 or more
and less than 192 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 or more
and less than 287 in grades 9 to 12, inclusive, during the preceding
fiscal year and is more than five 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 above 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 in grades 9
to 12, inclusive.
(b) For purposes of Section 42284, a necessary small high school
also includes a high school maintained by a school district for the
exclusive purpose of educating juvenile hall pupils or pupils with
exceptional needs.
(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, or grades 7 and 8 in a junior high school.
SEC. 51. Section 42285.1 of the Education Code is repealed.
SEC. 52. Section 42285.4 of the Education Code is repealed.
SEC. 53. Section 42285.5 of the Education Code is amended to read:
42285.5. (a) For purposes of subdivision (a) of Section 42284 and
Section 42285, a school district may include average daily
attendance in grades 7 and 8 and the instructors of grade 7 and 8
pupils in the calculation of average daily attendance and number of
certificated employees employed.
(b) Notwithstanding Sections 42284 and 42285, for purposes of this
section, with respect to a school district eligible to utilize
subdivision (a), any references to grades 9 to 12, inclusive, in
Sections 42284 and 42285 shall be deemed instead to be references to
grades 7 to 12, inclusive.
SEC. 54. Section 42286 of the Education Code is amended to read:
42286. (a) Except as required under subdivision (b), if a high
school is determined to be a necessary small high school under
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) If a high school is determined to be a necessary small high
school under paragraph (3) of subdivision (b) of 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.
(c) 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. 55. 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 of Public Instruction shall
increase the funding amounts specified in Sections 42281, 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 42281,
42282, and 42284, as previously increased pursuant to subdivision (a)
and Sections 42289 to 42289.5, inclusive, by an amount proportionate
to the increase in the statewide average local control funding
formula allocations pursuant to Section 42238.02, as implemented by
Section 42238.03, for the then current fiscal year.
SEC. 56. Section 42289 of the Education Code is amended to read:
42289. Notwithstanding any other law, for each fiscal year
through the 2012-13 fiscal year, before calculating the increase in
funding amount specified in Section 42287, the Superintendent shall
increase the funding amounts specified in Sections 42281, 42282, and
42284, by the product of subdivisions (a) and (b):
(a) The amount per unit of average daily attendance received by
the school district pursuant to Section 46201 in the prior fiscal
year.
(b) The average daily attendance for each necessary small school
and necessary small high school for which the school district
received funding in the prior fiscal year pursuant to Section 42281,
42282, or 42284, as appropriate.
SEC. 57. Section 42289.1 of the Education Code is amended to read:
42289.1. (a) Notwithstanding any other law, for the 1988-89
fiscal year to the 2012-13 fiscal year, inclusive, after calculating
the increase in funding amounts specified in Section 42287, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284, by the sum of paragraphs (1) and
(2):
(1) Compute the product of subparagraphs (A) and (B):
(A) The amount per unit of average daily attendance computed
pursuant to subdivision (g) of Section 42240.
(B) The average daily attendance for each necessary small school
and necessary small high school for which the district receives
funding in the current fiscal year pursuant to Section 42281, 42282,
or 42284, as appropriate.
(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
inclusive, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year.
SEC. 58. Section 42289.2 of the Education Code is amended to read:
42289.2. (a) Notwithstanding any other law, for the 1989-90
fiscal year to the 2012-13 fiscal year, inclusive, after calculating
the increase in funding amounts specified in Section 42287, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284, by the sum of paragraphs (1) and
(2):
(1) Compute the product of subparagraphs (A) and (B):
(A) The amount per unit of average daily attendance computed
pursuant to subdivision (e) of Section 54060.5.
(B) The average daily attendance for each necessary small school
and necessary small high school for which the school district
receives funding in the current fiscal year pursuant to Section
42281, 42282, or 42284, as appropriate.
(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
inclusive, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year.
SEC. 59. Section 42289.3 of the Education Code is amended to read:
42289.3. (a) Notwithstanding any other law, for the 1989-90
fiscal year to the 2012-13 fiscal year, inclusive, after calculating
the increase in funding amounts specified in Section 42287, the
Superintendent shall increase the funding amounts specified in
Sections 42281, 42282, and 42284, by the sum of paragraphs (1) and
(2):
(1) Compute the product of subparagraphs (A) and (B):
(A) The amount per unit of average daily attendance computed
pursuant to subdivision (e) of Section 54060.6.
(B) The average daily attendance for each necessary small school
and necessary small high school for which the school district
receives funding in the current fiscal year pursuant to Section
42281, 42282, or 42284, as appropriate.
(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
inclusive, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year.
SEC. 60. Section 42289.4 of the Education Code is amended to read:
42289.4. (a) Notwithstanding any other law, for the 1989-90
fiscal year to the 2012-13 fiscal year, inclusive, after calculating
the increase in funding amounts specified in Section 42287, the
Superintendent of Public Instruction shall increase the funding
amounts specified in Sections 42281, 42282, and 42284, by the sum of
paragraphs (1) and (2):
(1) Compute the product of subparagraphs (A) and (B):
(A) The amount per unit of average daily attendance computed
pursuant to subdivision (b) of Section 54060.7.
(B) The average daily attendance for each necessary small school
and necessary small high school for which the school district
receives funding in the current fiscal year pursuant to Section
42281, 42282, or 42284, as appropriate.
(2) From the 1990-91 fiscal year to the 2012-13 fiscal year,
inclusive, the amount computed pursuant to paragraph (1) shall be
increased by the percentage cost-of-living increase given to school
district revenue limits for the then current fiscal year.
SEC. 61. Section 42289.5 of the Education Code is amended to read:
42289.5. Notwithstanding any other law, the increases determined
pursuant to Sections 42289, 42289.1, 42289.3, and 42289.4 shall be
permanently increased for the 1998-99 fiscal year by the quotient,
for each school district eligible for an increase, of the amount
determined pursuant to subparagraph (B) of paragraph (3) of
subdivision (a) of Section 42238.8, as that section read on January
1, 2013, divided by the amount determined pursuant to subparagraph
(C) of paragraph (3) of subdivision (a) of Section 42238.8, as that
section read on January 1, 2013.
SEC. 62. Section 42605 of the Education Code is repealed.
SEC. 63. Section 42606 of the Education Code is repealed.
SEC. 64. Section 42800 of the Education Code is amended to read:
42800. (a) The governing board of a school district may, with the
consent of the county superintendent of schools, establish a
revolving cash fund for the use of the chief accounting officer of
the school district, by adopting a resolution setting forth the
necessity for the revolving cash fund, the officer for whom and the
purposes for which the revolving cash fund shall be available, and
the amount of the fund. The purposes for which the revolving cash
fund shall be available shall include the purposes specified in
Section 45167. Three certified copies of the resolution shall be
transmitted to the county superintendent of schools. If he approves
the establishment of the fund, the county superintendent shall
endorse his consent on the resolution and return one copy to the
governing body of the school district, and transmit one copy to the
county auditor.
(b) The maximum amount allowed for revolving cash funds
established pursuant to subdivision (a) shall be the lesser of:
(1) Two percent of the district's estimated expenditures for the
current fiscal year, or
(2) A dollar amount limit of seventy-five thousand dollars
($75,000) for any elementary school or high school district and one
hundred fifty thousand dollars ($150,000) for any unified school
district for fiscal year 1990-91. The dollar amount limit for each
school district shall, through the 2012-13 fiscal year, be increased
annually by the percentage increase in the district's revenue limit
established by Section 42238, as that section read on January 1,
2013. The dollar amount limit for each school district shall
thereafter be increased annually by the percentage increase in the
school district's local control funding formula allocation
established pursuant to Section 42238.02, as implemented pursuant to
Section 42238.03.
SEC. 65. Section 46200 of the Education Code is amended to read:
46200. For a school district that received an apportionment
pursuant to subdivision (a) of this section, as it read on January 1,
2013, and that offers less than 180 days of instruction or, in
multitrack year-round schools, fewer than the number of days required
in subdivision (a) of this section, as it read on January 1, 2013,
for multitrack year-round schools, in the 2013-14 fiscal year, or any
fiscal year thereafter, the Superintendent shall withhold from the
school district's local control funding formula grant apportionment
pursuant to Section 42238.02, as implemented by Section 42238.03, for
the average daily attendance of each affected grade level the sum of
0.0056 multiplied by the apportionment received pursuant to
subdivision (a) of this section, as it read on January 1, 2013, for
each day less than 180, or, in multitrack year-round schools, for
each day less than the number of days required in subdivision (a) for
year-round schools that the school district offered.
SEC. 66. Section 46201 of the Education Code is amended to read:
46201. (a) For each school district that received an
apportionment pursuant to subdivision (a) of this section, as it read
on January 1, 2013, and that reduces the amount of instructional
time offered below the minimum amounts specified in subdivision (b),
the Superintendent shall withhold from the school district's local
control funding formula grant apportionment pursuant to Section
42238.02, as implemented by Section 42238.03, for the average daily
attendance of each affected grade level, the sum of the apportionment
received pursuant to subdivision (a) of this section, as it read on
January 1, 2013, multiplied by the percentage of the minimum offered
minutes at that grade level that the school district failed to offer.
(b) Commencing with the 2013-14 fiscal year:
(1) Thirty-six thousand minutes in kindergarten.
(2) Fifty thousand four hundred minutes in grades 1 to 3,
inclusive.
(3) Fifty-four thousand minutes in grades 4 to 8, inclusive.
(4) Sixty-four thousand eight hundred minutes in grades 9 to 12,
inclusive.
SEC. 67. Section 46201.2 of the Education Code is amended to read:
46201.2. (a) Commencing with the 2009-10 school year and
continuing through the 2012-13 school year, a school district, county
office of education, or charter school may reduce the equivalent of
up to five days of instruction or the equivalent number of
instructional minutes without incurring the penalties set forth in
Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and 47612.5,
as those sections read on January 1, 2013. A school district, county
office of education, or charter school shall receive revenue limit
funding based on the adjustments prescribed pursuant to Section
42238.146, as it read on January 1, 2013, whether or not it reduces
the number of schooldays or instructional minutes.
(b) For the 2013-14 and 2014-15 school years, a school district,
county office of education, or charter school may reduce the
equivalent of up to five days of instruction or the equivalent number
of instructional minutes without incurring the penalties set forth
in Sections 41420, 46200, 46200.5, 46201, 46201.5, 46202, and
47612.5.
(c) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 68. Section 46201.3 of the Education Code is repealed.
SEC. 69. Section 46202 of the Education Code is amended to read:
46202. If a school district that does not participate in the
program set forth in Sections 46200 to 46206, inclusive, as those
sections read on January 1, 2013, offers less instructional time in a
fiscal year than the amount of instructional time fixed for the
1982-83 fiscal year, the Superintendent shall withhold for that
fiscal year, from the school district's local control funding formula
grant apportionment pursuant to Section 42238.03, as implemented by
Section 42238.03, for the average daily attendance of each affected
grade level, the amount of that apportionment multiplied by the
percentage of instructional minutes fixed in the 1982-83 school year,
at that grade level, that the school district failed to offer.
SEC. 70. Section 46204 of the Education Code is repealed.
SEC. 71. Section 46207 is added to the Education Code, to read:
46207. (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall,
for each fiscal year, offer, at a minimum, the following number of
minutes of instruction:
(1) To pupils in kindergarten, 36,000 minutes.
(2) To pupils in grades 1 to 3, inclusive, 50,400 minutes.
(3) To pupils in grades 4 to 8, inclusive, 54,000 minutes.
(4) To pupils in grades 9 to 12, inclusive, 64,800 minutes.
(b) For a school district that has met its local control funding
formula target that reduces the amount of instructional time offered
below the minimum amounts specified in subdivision (a), the
Superintendent shall withhold from the school district's local
control funding formula apportionment for the average daily
attendance of each affected grade level, the product of that
apportionment multiplied by the percentage of the minimum offered
minutes at that grade level that the school district failed to offer.
(c) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.
SEC. 72. Section 46208 is added to the Education Code, to read:
46208. (a) Notwithstanding Sections 46200 to 46205, inclusive,
upon a determination that a school district equals or exceeds its
local control funding formula target computed pursuant to Section
42238.02 as determined by the calculation of a zero difference
pursuant to paragraph (1) of subdivision (b) of Section 42238.03,
each school district, as a condition of apportionment pursuant to
Section 42238.02, as implemented pursuant to Section 42238.03, shall
offer 180 days or more of instruction per school year. A school
operating a multitrack year-round school shall be deemed to be in
compliance with the 180-day requirement if it certifies to the
Superintendent that it is a multitrack year-round school and
maintains its school for a minimum of 163 schooldays.
(b) Notwithstanding subdivision (a), for the 2013-14 and 2014-15
school years, a school district that equals or exceeds its computed
local control funding formula target may reduce the equivalent of up
to five days of instruction or the equivalent number of instructional
minutes without incurring the penalties set forth in this section.
SEC. 73. Section 47604.32 of the Education Code is amended to
read:
47604.32. Each chartering authority, in addition to any other
duties imposed by this part, shall do all of the following with
respect to each charter school under its authority:
(a) Identify at least one staff member as a contact person for the
charter school.
(b) Visit each charter school at least annually.
(c) Ensure that each charter school under its authority complies
with all reports required of charter schools by law, including the
annual update required pursuant to Section 47606.5.
(d) Monitor the fiscal condition of each charter school under its
authority.
(e) Provide timely notification to the department if any of the
following circumstances occur or will occur with regard to a charter
school for which it is the chartering authority:
(1) A renewal of the charter is granted or denied.
(2) The charter is revoked.
(3) The charter school will cease operation for any reason.
(f) The cost of performing the duties required by this section
shall be funded with supervisorial oversight fees collected pursuant
to Section 47613.
SEC. 74. Section 47604.33 of the Education Code is amended to
read:
47604.33. (a) Each charter school shall annually prepare and
submit the following reports to its chartering authority and the
county superintendent of schools, or only to the county
superintendent of schools if the county board of education is the
chartering authority:
(1) On or before July 1, a preliminary budget. For a charter
school in its first year of operation, the information submitted
pursuant to subdivision (g) of Section 47605 satisfies this
requirement.
(2) On or before July 1, an annual update required pursuant to
Section 47606.5.
(3) On or before December 15, an interim financial report. This
report shall reflect changes through October 31.
(4) On or before March 15, a second interim financial report. This
report shall reflect changes through January 31.
(5) On or before September 15, a final unaudited report for the
full prior year.
(b) The chartering authority shall use any financial information
it obtains from the charter school, including, but not limited to,
the reports required by this section, to assess the fiscal condition
of the charter school pursuant to subdivision (d) of Section
47604.32.
(c) The cost of performing the duties required by this section
shall be funded with supervisorial oversight fees collected pursuant
to Section 47613.
SEC. 75. Section 47604.5 of the Education Code is amended to read:
47604.5. The state board, whether or not it is the authority that
granted the charter, may, based upon the recommendation of the
Superintendent, take appropriate action, including, but not limited
to, revocation of the school's charter, when the state board finds
any of the following:
(a) Gross financial mismanagement that jeopardizes the financial
stability of the charter school.
(b) Illegal or substantially improper use of charter school funds
for the personal benefit of any officer, director, or fiduciary of
the charter school.
(c) Substantial and sustained departure from measurably successful
practices such that continued departure would jeopardize the
educational development of the school's pupils.
(d) Failure to improve pupil outcomes across multiple state and
school priorities identified in the charter pursuant to subparagraph
(A) of paragraph (5) of subdivision (b) of Section 47605 or
subparagraph (A) of paragraph (5) of subdivision (d) of Section
47605.6.
SEC. 76. Section 47605 of the Education Code is amended to read:
47605. (a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school may
propose to operate at multiple sites within the school district, as
long as each location is identified in the charter school petition.
The petition may be submitted to the governing board of the school
district for review after either of the following conditions is met:
(A) The petition is signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in the
school for its first year of operation.
(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.
(2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant to
subdivision (b) of Section 41365 may be circulated by one or more
persons seeking to establish the charter school. The petition may be
submitted to the governing board of the school district for review
after the petition is signed by not less than 50 percent of the
permanent status teachers currently employed at the public school to
be converted.
(3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
(4) After receiving approval of its petition, a charter school
that proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify
the authority that granted its charter of those additional locations.
The authority that granted its charter shall consider whether to
approve those additional locations at an open, public meeting. If the
additional locations are approved, they shall be a material revision
to the charter school's charter.
(5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district
within the jurisdiction of which the charter school proposes to
operate is notified in advance of the charter petition approval, the
county superintendent of schools and the Superintendent are notified
of the location of the charter school before it commences operations,
and either of the following circumstances exists:
(A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.
(B) The site is needed for temporary use during a construction or
expansion project.
(6) Commencing January 1, 2003, a petition to establish a charter
school may not be approved to serve pupils in a grade level that is
not served by the school district of the governing board considering
the petition, unless the petition proposes to serve pupils in all of
the grade levels served by that school district.
(b) No later than 30 days after receiving a petition, in
accordance with subdivision (a), the governing board of the school
district shall hold a public hearing on the provisions of the
charter, at which time the governing board of the school district
shall consider the level of support for the petition by teachers
employed by the district, other employees of the district, and
parents. Following review of the petition and the public
hearing, the governing board of the
school district shall either grant or deny the charter within 60 days
of receipt of the petition, provided, however, that the date may be
extended by an additional 30 days if both parties agree to the
extension. In reviewing petitions for the establishment of charter
schools pursuant to this section, the chartering authority shall be
guided by the intent of the Legislature that charter schools are and
should become an integral part of the California educational system
and that establishment of charter schools should be encouraged. The
governing board of the school district shall grant a charter for the
operation of a school under this part if it is satisfied that
granting the charter is consistent with sound educational practice.
The governing board of the school district shall not deny a petition
for the establishment of a charter school unless it makes written
factual findings, specific to the particular petition, setting forth
specific facts to support one or more of the following findings:
(1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
(3) The petition does not contain the number of signatures
required by subdivision (a).
(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
(A) (i) A description of the educational program of the school,
designed, among other things, to identify those whom the school is
attempting to educate, what it means to be an "educated person" in
the 21st century, and how learning best occurs. The goals identified
in that program shall include the objective of enabling pupils to
become self-motivated, competent, and lifelong learners.
(ii) A description, for the charter school, of annual goals, for
all pupils and for each subgroup of pupils identified pursuant to
Section 52052, to be achieved in the state priorities, as described
in subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school,
and specific annual actions to achieve those goals. A charter
petition may identify additional school priorities, the goals for the
school priorities, and the specific annual actions to achieve those
goals.
(iii) If the proposed school will serve high school pupils, a
description of the manner in which the charter school will inform
parents about the transferability of courses to other public high
schools and the eligibility of courses to meet college entrance
requirements. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges may be
considered transferable and courses approved by the University of
California or the California State University as creditable under the
"A" to "G" admissions criteria may be considered to meet college
entrance requirements.
(B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school's educational program. Pupil outcomes shall include
outcomes that address increases in pupil academic achievement both
schoolwide and for all groups of pupils served by the charter school,
as that term is defined in subparagraph (B) of paragraph (3) of
subdivision (a) of Section 47607. The pupil outcomes shall align with
the state priorities, as described in subdivision (d) of Section
52060, that apply for the grade levels served, or the nature of the
program operated, by the charter school.
(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method for
measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.
(D) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
(E) The qualifications to be met by individuals to be employed by
the school.
(F) The procedures that the school will follow to ensure the
health and safety of pupils and staff. These procedures shall include
the requirement that each employee of the school furnish the school
with a criminal record summary as described in Section 44237.
(G) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
(H) Admission requirements, if applicable.
(I) The manner in which annual, independent financial audits shall
be conducted, which shall employ generally accepted accounting
principles, and the manner in which audit exceptions and deficiencies
shall be resolved to the satisfaction of the chartering authority.
(J) The procedures by which pupils can be suspended or expelled.
(K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
(L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.
(M) A description of the rights of any employee of the school
district upon leaving the employment of the school district to work
in a charter school, and of any rights of return to the school
district after employment at a charter school.
(N) The procedures to be followed by the charter school and the
entity granting the charter to resolve disputes relating to
provisions of the charter.
(O) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for purposes of Chapter 10.7 (commencing with Section
3540) of Division 4 of Title 1 of the Government Code.
(P) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
school to determine the disposition of all assets and liabilities of
the charter school, including plans for disposing of any net assets
and for the maintenance and transfer of pupil records.
(c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605 and
60851 and any other statewide standards authorized in statute or
pupil assessments applicable to pupils in noncharter public schools.
(2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the school's
educational programs.
(d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of the characteristics listed in Section 220.
Except as provided in paragraph (2), admission to a charter school
shall not be determined according to the place of residence of the
pupil, or of his or her parent or legal guardian, within this state,
except that an existing public school converting partially or
entirely to a charter school under this part shall adopt and maintain
a policy giving admission preference to pupils who reside within the
former attendance area of that public school.
(2) (A) A charter school shall admit all pupils who wish to attend
the school.
(B) If the number of pupils who wish to attend the charter school
exceeds the school's capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the district except as
provided for in Section 47614.5. Other preferences may be permitted
by the chartering authority on an individual school basis and only if
consistent with the law.
(C) In the event of a drawing, the chartering authority shall make
reasonable efforts to accommodate the growth of the charter school
and in no event shall take any action to impede the charter school
from expanding enrollment to meet pupil demand.
(3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil's last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record of
the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject to
compulsory full-time education pursuant to Section 48200.
(e) The governing board of a school district shall not require any
employee of the school district to be employed in a charter school.
(f) The governing board of a school district shall not require any
pupil enrolled in the school district to attend a charter school.
(g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the school, including,
but not limited to, the facilities to be used by the school, the
manner in which administrative services of the school are to be
provided, and potential civil liability effects, if any, upon the
school and upon the school district. The description of the
facilities to be used by the charter school shall specify where the
school intends to locate. The petitioner or petitioners shall also be
required to provide financial statements that include a proposed
first-year operational budget, including startup costs, and cashflow
and financial projections for the first three years of operation.
(h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032, as it read before July 19, 2006.
(i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide
written notice of that approval, including a copy of the petition, to
the applicable county superintendent of schools, the department, and
the state board.
(j) (1) If the governing board of a school district denies a
petition, the petitioner may elect to submit the petition for the
establishment of a charter school to the county board of education.
The county board of education shall review the petition pursuant to
subdivision (b). If the petitioner elects to submit a petition for
establishment of a charter school to the county board of education
and the county board of education denies the petition, the petitioner
may file a petition for establishment of a charter school with the
state board, and the state board may approve the petition, in
accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from the
state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be subject
if it received approval from the entity to which it originally
submitted its petition. A charter petition that is submitted to
either a county board of education or to the state board shall meet
all otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.
(2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision (b) and shall define "reasonably
comprehensive" as used in paragraph (5) of subdivision (b) in a way
that is consistent with the intent of this part. Upon satisfactory
completion of the criteria, the state board shall adopt the criteria
on or before June 30, 2001.
(3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.
(4) If either the county board of education or the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny a petition
shall, thereafter, be subject to judicial review.
(5) The state board shall adopt regulations implementing this
subdivision.
(6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the department
and the state board.
(k) (1) The state board may, by mutual agreement, designate its
supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is located or to the governing
board of the school district that first denied the petition.
(2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with the
state board.
(3) A charter school that is granted its charter through an appeal
to the state board and elects to seek renewal of its charter shall,
before expiration of the charter, submit its petition for renewal to
the governing board of the school district that initially denied the
charter. If the governing board of the school district denies the
school's petition for renewal, the school may petition the state
board for renewal of its charter.
( l ) Teachers in charter schools shall hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained on
file at the charter school and are subject to periodic inspection by
the chartering authority. It is the intent of the Legislature that
charter schools be given flexibility with regard to noncore,
noncollege preparatory courses.
(m) A charter school shall transmit a copy of its annual,
independent financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b), to
its chartering entity, the Controller, the county superintendent of
schools of the county in which the charter school is sited, unless
the county board of education of the county in which the charter
school is sited is the chartering entity, and the department by
December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.
SEC. 77. Section 47605.6 of the Education Code is amended to read:
47605.6. (a) (1) In addition to the authority provided by Section
47605.5, a county board of education may also approve a petition for
the operation of a charter school that operates at one or more sites
within the geographic boundaries of the county and that provides
instructional services that are not generally provided by a county
office of education. A county board of education may approve a
countywide charter only if it finds, in addition to the other
requirements of this section, that the educational services to be
provided by the charter school will offer services to a pupil
population that will benefit from those services and that cannot be
served as well by a charter school that operates in only one school
district in the county. A petition for the establishment of a
countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons seeking
to establish the charter school. The petition may be submitted to the
county board of education for review after either of the following
conditions is met:
(A) The petition is signed by a number of parents or guardians of
pupils residing within the county that is equivalent to at least
one-half of the number of pupils that the charter school estimates
will enroll in the school for its first year of operation and each of
the school districts where the charter school petitioner proposes to
operate a facility has received at least 30 days' notice of the
petitioner's intent to operate a school pursuant to this section.
(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation and each of the school districts where the
charter school petitioner proposes to operate a facility has received
at least 30 days' notice of the petitioner's intent to operate a
school pursuant to this section.
(2) An existing public school may not be converted to a charter
school in accordance with this section.
(3) After receiving approval of its petition, a charter school
that proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those additional
locations at an open, public meeting, held no sooner than 30 days
following notification of the school districts where the sites will
be located. If approved, the location of the approved sites shall be
a material revision of the school's approved charter.
(4) A petition shall include a prominent statement indicating that
a signature on the petition means that the parent or guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
(b) No later than 60 days after receiving a petition, in
accordance with subdivision (a), the county board of education shall
hold a public hearing on the provisions of the charter, at which time
the county board of education shall consider the level of support
for the petition by teachers, parents or guardians, and the school
districts where the charter school petitioner proposes to place
school facilities. Following review of the petition and the public
hearing, the county board of education shall either grant or deny the
charter within 90 days of receipt of the petition. However, this
date may be extended by an additional 30 days if both parties agree
to the extension. A county board of education may impose any
additional requirements beyond those required by this section that it
considers necessary for the sound operation of a countywide charter
school. A county board of education may grant a charter for the
operation of a school under this part only if the board is satisfied
that granting the charter is consistent with sound educational
practice and that the charter school has reasonable justification for
why it could not be established by petition to a school district
pursuant to Section 47605. The county board of education shall deny a
petition for the establishment of a charter school if the board
finds one or more of the following:
(1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
(3) The petition does not contain the number of signatures
required by subdivision (a).
(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
(A) (i) A description of the educational program of the school,
designed, among other things, to identify those pupils whom the
school is attempting to educate, what it means to be an "educated
person" in the 21st century, and how learning best occurs. The goals
identified in that program shall include the objective of enabling
pupils to become self-motivated, competent, and lifelong learners.
(ii) A description, for the charter school, of annual goals, for
all pupils and for each subgroup of pupils identified pursuant to
Section 52052, to be achieved in the state priorities, as described
in subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school,
and specific annual actions to achieve those goals. A charter
petition may identify additional school priorities, the goals for the
school priorities, and the specific annual actions to achieve those
goals.
(iii) If the proposed charter school will enroll high school
pupils, a description of the manner in which the charter school will
inform parents regarding the transferability of courses to other
public high schools. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges may be
considered to be transferable to other public high schools.
(iv) If the proposed charter school will enroll high school
pupils, information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses approved
by the University of California or the California State University as
satisfying their prerequisites for admission may be considered as
meeting college entrance requirements for purposes of this clause.
(B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and aptitudes specified as goals
in the school's educational program. Pupil outcomes shall include
outcomes that address increases in pupil academic achievement both
schoolwide and for all groups of pupils served by the charter school,
as that term is defined in subparagraph (B) of paragraph (3) of
subdivision (a) of Section 47607. The pupil outcomes shall align with
the state priorities, as described in subdivision (d) of Section
52060, that apply for the grade levels served, or the nature of the
program operated, by the charter school.
(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method for
measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.
(D) The location of each charter school facility that the
petitioner proposes to operate.
(E) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
(F) The qualifications to be met by individuals to be employed by
the school.
(G) The procedures that the school will follow to ensure the
health and safety of pupils and staff. These procedures shall include
the requirement that each employee of the school furnish the school
with a criminal record summary as described in Section 44237.
(H) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
(I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by the
state board, and the manner in which audit exceptions and
deficiencies shall be resolved.
(J) The procedures by which pupils can be suspended or expelled.
(K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
(L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.
(M) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for purposes of the Educational Employment Relations
Act (Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code).
(N) Admission requirements of the charter school, if applicable.
(O) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.
(P) A description of the rights of an employee of the county
office of education, upon leaving the employment of the county office
of education, to be employed by the charter school, and a
description of any rights of return to the county office of education
that an employee may have upon leaving the employ of the charter
school.
(Q) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
school to determine the disposition of all assets and liabilities of
the charter school, including plans for disposing of any net assets
and for the maintenance and transfer of public records.
(6) Any other basis that the county board of education finds
justifies the denial of the petition.
(c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school's operations to be
monitored by the third party and may prescribe appropriate
requirements regarding the reporting of information concerning the
operations of the charter school to the county board of education.
(d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605 and
any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.
(2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the school's educational programs.
(e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, gender
identity, gender expression, or disability. Except as provided in
paragraph (2), admission to a charter school shall not be determined
according to the place of residence of the pupil, or of his or her
parent or guardian, within this state.
(2) (A) A charter school shall admit all pupils who wish to attend
the school.
(B) If the number of pupils who wish to attend the charter school
exceeds the school's capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the county except as
provided for in Section 47614.5. Other preferences may be permitted
by the chartering authority on an individual school basis and only if
consistent with the law.
(C) In the event of a drawing, the county board of education shall
make reasonable efforts to accommodate the growth of the charter
school and in no event shall take any action to impede the charter
school from expanding enrollment to meet pupil demand.
(f) The county board of education shall not require any employee
of the county or a school district to be employed in a charter
school.
(g) The county board of education shall not require any pupil
enrolled in a county program to attend a charter school.
(h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the school, including, but not
limited to, the facilities to be used by the school, the manner in
which administrative services of the school are to be provided, and
potential civil liability effects, if any, upon the school, any
school district where the charter school may operate, and upon the
county board of education. The petitioner or petitioners shall also
be required to provide financial statements that include a proposed
first-year operational budget, including startup costs, and cashflow
and financial projections for the first three years of operation.
(i) In reviewing petitions for the establishment of charter
schools within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low achieving pursuant to
the standards established by the department under Section 54032, as
it read before July 19, 2006.
(j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent, and to the state
board.
(k) If a county board of education denies a petition, the
petitioner may not elect to submit the petition for the establishment
of the charter school to the state board.
(l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained on
file at the charter school and shall be subject to periodic
inspection by the chartering authority.
(m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to the county office of education, the Controller, and the department
by December 15 of each year. This subdivision shall not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.
SEC. 78. Section 47606.5 is added to the Education Code, to read:
47606.5. (a) On or before July 1, 2015, and each year thereafter,
a charter school shall update the goals and annual actions to
achieve those goals identified in the charter pursuant to
subparagraph (A) of paragraph (5) of subdivision (b) of Section 47605
or subparagraph (A) of paragraph (5) of subdivision (b) of Section
47605.6. The annual update shall be developed using the template
adopted pursuant to Section 52064 and shall include all of the
following:
(1) A review of the progress toward the goals included in the
charter, an assessment of the effectiveness of the specific actions
described in the charter toward achieving the goals, and a
description of changes to the specific actions the charter school
will make as a result of the review and assessment.
(2) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the charter as a
result of the reviews and assessment required by paragraph (1).
(b) The expenditures identified in subdivision (a) shall be
classified using the California School Accounting Manual pursuant to
Section 41010.
(c) For purposes of the review required by subdivision (a), a
governing body of a charter school may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) or
paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.
(d) To the extent practicable, data reported pursuant to this
section shall be reported in a manner consistent with how information
is reported on a school accountability report card.
(e) The charter school shall consult with teachers, principals,
administrators, other school personnel, parents, and pupils in
developing the annual update.
SEC. 79. Section 47607.3 is added to the Education Code, to read:
47607.3. (a) If a charter school fails to improve outcomes for
three or more pupil subgroups identified pursuant to Section 52052,
or, if the charter school has less than three pupil subgroups, all of
the charter school's pupil subgroups, in regard to one or more state
or school priority identified in the charter pursuant to
subparagraph (A) of paragraph (5) of subdivision (b) of Section 47605
or subparagraph (A) of paragraph (5) of subdivision (b) of Section
47605.6, in three out of four consecutive school years, all of the
following shall apply:
(1) Using an evaluation rubric adopted by the state board pursuant
to Section 52064.5, the chartering authority shall provide technical
assistance to the charter school.
(2) The Superintendent may assign, at the request of the
chartering authority and with the approval of the state board, the
California Collaborative for Educational Excellence to provide advice
and assistance to the charter school pursuant to Section 52074.
(b) A chartering authority shall consider for revocation any
charter school to which the California Collaborative for Educational
Excellence has provided advice and assistance pursuant to subdivision
(a) and about which it has made either of the following findings,
which shall be submitted to the chartering authority:
(1) That the charter school has failed, or is unable, to implement
the recommendations of the California Collaborative for Educational
Excellence.
(2) That the inadequate performance of the charter school, based
upon an evaluation rubric adopted pursuant to Section 52064.5, is
either so persistent or so acute as to require revocation of the
charter.
(c) The chartering authority shall consider increases in pupil
academic achievement for all pupil subgroups served by the charter
school as the most important factor in determining whether to revoke
the charter.
(d) A chartering authority shall comply with the hearing process
described in subdivision (e) of Section 47607 in revoking a charter.
A charter school may not appeal a revocation of a charter made
pursuant to this section.
SEC. 80. Section 47612.7 of the Education Code is repealed.
SEC. 81. Section 47613 of the Education Code is amended to read:
47613. (a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.
(b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering
authority.
(c) A local agency that is given the responsibility for
supervisorial oversight of a charter school, pursuant to paragraph
(1) of subdivision (k) of Section 47605, may charge for the actual
costs of supervisorial oversight, and administrative costs necessary
to secure charter school funding. A charter school that is charged
for costs under this subdivision may not be charged pursuant to
subdivision (a) or (b).
(d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.
(e) For purposes of this section, a chartering authority means a
school district, county board of education, or the state board, that
granted the charter to the charter school.
(f) For purposes of this section, "revenue of the charter school"
means the general purpose entitlement and categorical block grant, as
defined in subdivisions (a) and (b) of Section 47632.
(g) For purposes of this section, "costs of supervisorial
oversight" includes, but is not limited to, costs incurred pursuant
to Section 47607.3.
SEC. 82. Section 47631 of the Education Code is amended to read:
47631. (a) Article 3 (commencing with Section 47636) shall not
apply to a charter granted pursuant to Section 47605.5.
(b) A county-sponsored charter school shall receive the average
daily attendance rate calculated pursuant to paragraph (1) of
subdivision (c) of Section 2574 for enrolled pupils who are
identified as any of the following:
(1) Probation-referred pursuant to Section 300, 601, 602, or 654
of the Welfare and Institutions Code.
(2) On probation or parole and not attending a school.
(3) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
(c) A county-sponsored charter school shall be funded pursuant to
the local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, for all pupils except for pupils
funded pursuant to subdivision (b).
SEC. 83. Section 47632 of the Education Code is amended to read:
47632. For purposes of this chapter, the following terms shall be
defined as follows:
(a) "General-purpose entitlement" means an amount computed by the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03.
(b) "Economic impact aid-eligible pupils" means those pupils that
are included in the economic impact aid-eligible pupil count pursuant
to Section 54023. For purposes of applying Section 54023 to charter
schools, "economically disadvantaged pupils" means the pupils
described in paragraph (2) of subdivision (a) of Section 54026.
(c) "General-purpose funding" means those funds that consist of
state aid, local property taxes, and other revenues applied toward a
school district's local control funding formula, pursuant to Section
42238.02, as implemented by Section 42238.03.
(d) "Categorical aid" means aid that consists of state or
federally funded programs, or both, which are apportioned for
specific purposes set forth in statute or regulation.
(e) "Educationally disadvantaged pupils" means those pupils who
meet federal eligibility criteria for free and reduced-price meals as
specified in Section 49531, as that section read on January 1, 2013,
except in regard to meals in family day care homes.
(f) "Operational funding" means all funding except funding for
capital outlay.
(g) "School district of a similar type" means a school district
that is serving similar grade levels.
(h) "Similar pupil population" means similar numbers of pupils by
grade level, with a similar proportion of educationally disadvantaged
pupils.
(i) "Sponsoring local educational agency" means the following:
(1) If a charter school is granted by a school district, the
sponsoring local educational agency is the school district.
(2) If a charter is granted by a county office of education after
having been previously denied by a school district, the sponsoring
local educational agency means the school district that initially
denied the charter petition.
(3) If a charter is granted by the state board after having been
previously denied by a local educational agency, the sponsoring local
educational agency means the local educational agency designated by
the state board pursuant to paragraph (1) of subdivision (k) of
Section 47605 or if a local educational agency is not designated, the
local educational agency that initially denied the charter petition.
(4) For pupils attending county-sponsored charter schools who are
eligible to attend those schools solely as a result of parental
request pursuant to subdivision (b) of Section 1981, the sponsoring
local educational agency means the pupils' school district of
residence.
(5) For pupils attending countywide charter schools pursuant to
Section 47605.6 who reside in a basic aid school district, the
sponsoring local educational agency means the school district of
residence of the pupil. For purposes of this paragraph, "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.
SEC. 84. Section 47632.5 of the Education Code is repealed.
SEC. 85. 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 statewide average local control funding formula grant
funding computed pursuant to subdivision (d) of Section 42238.02, per
unit of average daily attendance received by school districts, as
determined by the department, multiplied by the charter school's
average daily attendance in each of the four corresponding grade
level ranges: kindergarten and grades 1, 2, and 3; grades 4, 5, and
6; grades 7 and 8; and grades 9 to 12, inclusive.
(3) Notwithstanding paragraph (2), until the Superintendent
determines that a charter school is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall apportion
funding per unit of average daily attendance pursuant to this
article. The base grant for purposes of paragraph (2) shall be the
sum of the entitlements for the charter school in the specified
fiscal year as computed pursuant to paragraphs (1) to (4), inclusive,
of subdivision (a) of Section 42238.03 and paragraph (3) of
subdivision (b) of Section 42238.03, multiplied by the ratio of local
control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.
(b) The sponsoring local educational agency shall transfer funding
in lieu of property taxes to the charter school in monthly
installments, by no later than the 15th of each month.
(1) For the months of August to February, inclusive, a charter
school's funding in lieu of property taxes shall be computed based on
the amount of property taxes received by the sponsoring local
educational agency during the preceding fiscal year, as reported to
the Superintendent for purposes of the second principal
apportionment. A sponsoring local educational agency shall transfer
to the charter school the charter school's estimated annual
entitlement to funding in lieu of property taxes as follows:
(A) Six percent in August.
(B) Twelve percent in September.
(C) Eight percent each month in October, November, December,
January, and February.
(2) For the months of March to June, inclusive, a charter school's
funding in lieu of property taxes shall be computed based on the
amount of property taxes estimated to be received by the sponsoring
local educational agency during the fiscal year, as reported to the
Superintendent for purposes of the first principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to one-sixth of the difference
between the school's estimated annual entitlement to funding in lieu
of property taxes and the amounts provided pursuant to paragraph (1).
An additional one-sixth of this difference shall be included in the
amount transferred in the month of March.
(3) For the month of July, a charter school's funding in lieu of
property taxes shall be computed based on the amount of property
taxes estimated to be received by the sponsoring local educational
agency during the prior fiscal year, as reported to the
Superintendent for purposes of the second principal apportionment. A
sponsoring local educational agency shall transfer to each of its
charter schools an amount equal to the remaining difference between
the school's estimated annual entitlement to funding in lieu of
property taxes and the amounts provided pursuant to paragraphs (1)
and (2).
(4) Final adjustments to the amount of funding in lieu of property
taxes allocated to a charter school shall be made in February, in
conjunction with the final reconciliation of annual apportionments to
schools.
(5) Subdivision (a) and paragraphs (1) to (4), inclusive, do not
apply for pupils who reside in, and are otherwise eligible to attend
a school in, a basic aid school district, but who attend a charter
school in a nonbasic aid school district. With regard to these
pupils, the sponsoring basic aid school district shall transfer to
the charter school an amount of funds equivalent to the local control
funding formula grant pursuant to Section 42238.02, as implemented
by Section 42238.03, earned through average daily attendance by the
charter school for each pupil's attendance, not to exceed the average
property tax share per unit of average daily attendance for pupils
residing and attending in the basic aid school district. The transfer
of funds shall be made in not fewer than two installments at the
request of the charter school, the first occurring not later than
February 1 and the second not later than June 1 of each school year.
Payments shall reflect the average daily attendance certified for the
time periods of the first and second principal apportionments,
respectively. The Superintendent may not apportion any funds for the
attendance of pupils described in this subdivision unless the amount
transferred by the basic aid district is less than the local control
funding formula grant pursuant to Section 42238.02, as implemented by
Section 42238.03, earned by the charter school, in which event the
Superintendent shall apportion the difference to the charter school
from state funds.
SEC. 86. Section 47636 of the Education Code is amended to read:
47636. (a) This chapter shall not prevent a charter school from
negotiating with a local educational agency for a share of
operational funding from sources not otherwise set forth in this
chapter including, but not limited to, all of the following:
(1) Forest reserve revenues and other operational revenues
received due to harvesting or extraction of minerals or other natural
resources.
(2) Sales and use taxes, to the extent that the associated
revenues are available for noncapital expenses of public schools.
(3) Parcel taxes, to the extent that the associated revenues are
available for noncapital expenses of public schools.
(4) Ad valorem property taxes received by a school district which
exceed its local control funding formula entitlement pursuant to
Section 42238.02, as implemented by Section 42238.03.
(5) "Basic aid" received by a school district pursuant to Section
6 of Article IX of the California Constitution.
(b) This section shall become operative July 1, 2006.
SEC. 87. Section 47660 of the Education Code is amended to read:
47660. For purposes of computing eligibility for, and
entitlements to, general purpose funding and operational funding for
categorical programs, the enrollment and average daily attendance of
a sponsoring local educational agency shall exclude the enrollment
and attendance of pupils in its charter schools funded pursuant to
this chapter.
SEC. 88. Section 47663 of the Education Code is amended to read:
47663. (a) (1) For a pupil of a charter school sponsored by a
basic aid school district who resides in, and is otherwise eligible
to attend, a school district other than a basic aid school district,
the Superintendent shall apportion to the sponsoring school district
an amount equal to 70 percent of the local control funding formula
base grant computed pursuant to subdivision (d) of Section 42238.02,
per unit of average daily attendance that would have been apportioned
to the school district that the pupil resides in and would otherwise
have been eligible to attend.
(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district the pupil resides in, and would
otherwise have been eligible to attend, is funded pursuant to Section
42238.02 in the prior fiscal year, the Superintendent shall
apportion, for average daily attendance pursuant to this article, 70
percent of the sum of the entitlements for the school district that
the pupil resides in, and would otherwise have been eligible to
attend, for the specified fiscal year as computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (a) of Section
42238.03 and paragraph (3) of subdivision (b) of Section 42238.03,
divided by the average daily attendance for that fiscal year and then
multiplied by the ratio of local control funding formula base grant
funding computed pursuant to subdivision (d) of Section 42238.02 to
the local control funding formula amount for the fiscal year computed
pursuant to Section 42238.02.
(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 of 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 of in lieu of property taxes transferred
pursuant to Section 47635 to the charter school or schools that it
sponsors, except for transfers of 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 of 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
exception set forth in paragraph (5) of subdivision (b) 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. 89. Section 47664 of the Education Code is repealed.
SEC. 90. 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 other provisions of 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 district local control funding formula base grant computed
pursuant to subdivision (d) of Section 42238.02, as implemented by
Section 42238.03, that would have been apportioned to the school
district of residence.
(2) Notwithstanding paragraph (1), until the Superintendent
determines that the school district of residence is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this
article, 70 percent of
the sum of the entitlements for the school district of residence for
the specified fiscal year as computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) of Section 42238.03 and paragraph
(3) of subdivision (b) of Section 42238.03, divided by the average
daily attendance pursuant to this article for that fiscal year and
then multiplied by the ratio of local control funding formula base
grant funding computed pursuant to subdivision (d) of Section
42238.02 to the local control funding formula amount for the fiscal
year computed pursuant to Section 42238.02.
(3) 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. 91. 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 enrollment is funded pursuant
to Section 42238.02 in the prior fiscal year, the Superintendent
shall apportion, for average daily attendance pursuant to this
article, 70 percent of the sum of the entitlements for the school
district of enrollment for the specified fiscal year as computed
pursuant to paragraphs (1) to (4), inclusive, of subdivision (a) of
Section 42238.03 and paragraph (3) of subdivision (b) of Section
42238.03, divided by the average daily attendance pursuant to this
article for that fiscal year and then multiplied by the ratio of
local control funding formula base grant funding computed pursuant to
subdivision (d) of Section 42238.02 to the local control funding
formula amount for the fiscal year computed pursuant to Section
42238.02.
(c) 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. 92. Section 49085 of the Education Code is amended to read:
49085. (a) The department and the State Department of Social
Services shall develop and enter into a memorandum of understanding
that shall, at a minimum, require the State Department of Social
Services, at least once per week, to share with the department both
of the following:
(1) Disaggregated information on children and youth in foster care
sufficient for the department to identify pupils in foster care.
(2) Disaggregated data on children and youth in foster care that
is helpful to county offices of education and other local educational
agencies responsible for ensuring that pupils in foster care
received appropriate educational supports and services.
(b) To the extent allowable under federal law, the department
shall regularly identify pupils in foster care and designate those
pupils in the California Longitudinal Pupil Achievement Data System
or any future data system used by the department to collect
disaggregated pupil outcome data.
(c) To the extent allowable under federal law, the Superintendent,
on or before February 15 of each even-numbered year, shall report to
the Legislature and the Governor on the educational outcomes for
pupils in foster care at both the individual schoolsite level and
school district level. The report shall include, but is not limited
to, all of the following:
(1) Individual schoolsite level and school district level
educational outcome data for each local educational agency that
enrolls at least 15 pupils in foster care, each county in which at
least 15 pupils in foster care attend school, and for the entire
state.
(2) The number of pupils in foster care statewide and by each
local educational agency.
(3) The academic achievement of pupils in foster care.
(4) The incidence of suspension and expulsion for pupils in foster
care.
(5) Truancy rates, attendance rates, and dropout rates for pupils
in foster care.
(d) To the extent allowable under federal law, the department, at
least once per week, shall do all of the following:
(1) Inform school districts and charter schools of any pupils
enrolled in those school districts or charter schools who are in
foster care.
(2) Inform county offices of education of any pupils enrolled in
schools in the county who are in foster care.
(3) Provide schools districts, county office of education, and
charter schools disaggregated data helpful to ensuring pupils in
foster care receive appropriate educational supports and services.
(e) For purposes of this section "pupil in foster care" means a
pupil who is under the jurisdiction of the juvenile court pursuant to
Section 300, 601, or 602 of the Welfare and Institutions Code.
SEC. 93. Section 49536 of the Education Code is amended to read:
49536. (a) The department shall, before July 1 of each year,
prescribe an adjustment in the state meal contribution rates
established pursuant to this section for the forthcoming fiscal year.
The adjustments shall reflect the changes in the cost of operating a
school breakfast and lunch program and shall be made commencing on
July 1 of each year. The adjustment shall be the average of the
separate indices of the "Food Away From Home Index" for Los Angeles
and San Francisco as prepared by the United States Bureau of Labor
Statistics.
(b) In giving effect to the cost-of-living provisions of this
section, the department shall use the same month for computation of
the percentage change in the cost of living after July 1, 1975. The
same month shall be used annually thereafter. The product of a
percentage increase or decrease in the average index and the per meal
reimbursement disbursement rate shall be adjusted by the amount of a
cost-of-living change currently in effect pursuant to the provisions
of this section.
(c) For the 1990-91 fiscal year to the 2012-13 fiscal year,
inclusive, the cost-of-living adjustment shall be equal to the
percentage change determined pursuant to subdivision (b) of Section
42238.1, as that section read on January 1, 2013. Commencing with the
2013-14 fiscal year, the cost-of-living adjustment shall be equal to
the percentage determined pursuant to paragraph (2) of subdivision
(d) of Section 42238.02.
SEC. 94. Section 52051 of the Education Code is repealed.
SEC. 95. Section 52052 of the Education Code is amended to read:
52052. (a) (1) The Superintendent, with approval of the state
board, shall develop an Academic Performance Index (API), to measure
the performance of schools and school districts, especially the
academic performance of pupils.
(2) A school or school district shall demonstrate comparable
improvement in academic achievement as measured by the API by all
numerically significant pupil subgroups at the school or school
district, including:
(A) Ethnic subgroups.
(B) Socioeconomically disadvantaged pupils.
(C) English learners.
(D) Pupils with disabilities.
(E) Foster youth.
(3) (A) For purposes of this section, a numerically significant
pupil subgroup is one that consists of at least 30 pupils, each of
whom has a valid test score.
(B) Notwithstanding subparagraph (A), for a subgroup of pupils who
are foster youth, a numerically significant pupil subgroup is one
that consists of at least 15 pupils.
(C) For a school or school district with an API score that is
based on no fewer than 11 and no more than 99 pupils with valid test
scores, numerically significant pupil subgroups shall be defined by
the Superintendent, with approval by the state board.
(4) (A) The API shall consist of a variety of indicators currently
reported to the department, including, but not limited to, the
results of the achievement test administered pursuant to Section
60640, attendance rates for pupils in elementary schools, middle
schools, and secondary schools, and the graduation rates for pupils
in secondary schools.
(B) The Superintendent, with the approval of the state board, may
also incorporate into the API the rates at which pupils successfully
promote from one grade to the next in middle school and high school,
and successfully matriculate from middle school to high school.
(C) Graduation rates for pupils in secondary schools shall be
calculated for the API as follows:
(i) Four-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be three school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (ii).
(ii) The number of pupils entering grade 9 for the first time in
the school year three school years before the current school year,
plus the number of pupils who transferred into the class graduating
at the end of the current school year between the school year that
was three school years before the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was three school years before the
current school year and the date of graduation who were members of
the class that is graduating at the end of the current school year.
(iii) Five-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be four school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (iv).
(iv) The number of pupils entering grade 9 for the first time in
the school year four years before the current school year, plus the
number of pupils who transferred into the class graduating at the end
of the current school year between the school year that was four
school years before the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was four years before the current
school year and the date of graduation who were members of the class
that is graduating at the end of the current school year.
(v) Six-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be five school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (vi).
(vi) The number of pupils entering grade 9 for the first time in
the school year five years before the current school year, plus the
number of pupils who transferred into the class graduating at the end
of the current school year between the school year that was five
school years before the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was five years before the current
school year and the date of graduation who were members of the class
that is graduating at the end of the current school year.
(D) The inclusion of five- and six-year graduation rates for
pupils in secondary schools shall meet the following requirements:
(i) Schools shall be granted one-half the credit in their API
scores for graduating pupils in five years that they are granted for
graduating pupils in four years.
(ii) Schools and school districts shall be granted one-quarter the
credit in their API scores for graduating pupils in six years that
they are granted for graduating pupils in four years.
(iii) Notwithstanding clauses (i) and (ii), schools and school
districts shall be granted full credit in their API scores for
graduating in five or six years a pupil with disabilities who
graduates in accordance with his or her individualized education
program.
(E) The pupil data collected for the API that comes from the
achievement test administered pursuant to Section 60640 and the high
school exit examination administered pursuant to Section 60851, when
fully implemented, shall be disaggregated by special education
status, English learners, socioeconomic status, gender, and ethnic
group. Only the test scores of pupils who were counted as part of the
enrollment in the annual data collection of the California Basic
Educational Data System for the current fiscal year and who were
continuously enrolled during that year may be included in the test
result reports in the API score of the school.
(F) (i) Commencing with the baseline API calculation in 2016, and
for each year thereafter, results of the achievement test and other
tests specified in subdivision (b) shall constitute no more than 60
percent of the value of the index for secondary schools.
(ii) In addition to the elements required by this paragraph, the
Superintendent, with approval of the state board, may incorporate
into the index for secondary schools valid, reliable, and stable
measures of pupil preparedness for postsecondary education and
career.
(G) Results of the achievement test and other tests specified in
subdivision (b) shall constitute at least 60 percent of the value of
the index for primary schools and middle schools.
(H) It is the intent of the Legislature that the state's system of
public school accountability be more closely aligned with both the
public's expectations for public education and the workforce needs of
the state's economy. It is therefore necessary that the
accountability system evolve beyond its narrow focus on pupil test
scores to encompass other valuable information about school
performance, including, but not limited to, pupil preparedness for
college and career, as well as the high school graduation rates
already required by law.
(I) The Superintendent shall annually determine the accuracy of
the graduation rate data. Notwithstanding any other law, graduation
rates for pupils in dropout recovery high schools shall not be
included in the API. For purposes of this subparagraph, "dropout
recovery high school" means a high school in which 50 percent or more
of its pupils have been designated as dropouts pursuant to the
exit/withdrawal codes developed by the department or left a school
and were not otherwise enrolled in a school for a period of at least
180 days.
(J) To complement the API, the Superintendent, with the approval
of the state board, may develop and implement a program of school
quality review that features locally convened panels to visit
schools, observe teachers, interview pupils, and examine pupil work,
if an appropriation for this purpose is made in the annual Budget
Act.
(K) The Superintendent shall annually provide to local educational
agencies and the public a transparent and understandable explanation
of the individual components of the API and their relative values
within the API.
(L) An additional element chosen by the Superintendent and the
state board for inclusion in the API pursuant to this paragraph shall
not be incorporated into the API until at least one full school year
after the state board's decision to include the element into the
API.
(b) Pupil scores from the following tests, when available and when
found to be valid and reliable for this purpose, shall be
incorporated into the API:
(1) The standards-based achievement tests provided for in Section
60642.5.
(2) The high school exit examination.
(c) Based on the API, the Superintendent shall develop, and the
state board shall adopt, expected annual percentage growth targets
for all schools based on their API baseline score from the previous
year. Schools are expected to meet these growth targets through
effective allocation of available resources. For schools below the
statewide API performance target adopted by the state board pursuant
to subdivision (d), the minimum annual percentage growth target shall
be 5 percent of the difference between the actual API score of a
school and the statewide API performance target, or one API point,
whichever is greater. Schools at or above the statewide API
performance target shall have, as their growth target, maintenance of
their API score above the statewide API performance target. However,
the state board may set differential growth targets based on grade
level of instruction and may set higher growth targets for the lowest
performing schools because they have the greatest room for
improvement. To meet its growth target, a school shall demonstrate
that the annual growth in its API is equal to or more than its
schoolwide annual percentage growth target and that all numerically
significant pupil subgroups, as defined in subdivision (a), are
making comparable improvement.
(d) Upon adoption of state performance standards by the state
board, the Superintendent shall recommend, and the state board shall
adopt, a statewide API performance target that includes consideration
of performance standards and represents the proficiency level
required to meet the state performance target.
(e) (1) A school or school district with 11 to 99 pupils with
valid test scores shall receive an API score with an asterisk that
indicates less statistical certainty than API scores based on 100 or
more test scores.
(2) A school or school district annually shall receive an API
score, unless the Superintendent determines that an API score would
be an invalid measure of the performance of the school or school
district for one or more of the following reasons:
(A) Irregularities in testing procedures occurred.
(B) The data used to calculate the API score of the school or
school district are not representative of the pupil population at the
school or school district.
(C) Significant demographic changes in the pupil population render
year-to-year comparisons of pupil performance invalid.
(D) The department discovers or receives information indicating
that the integrity of the API score has been compromised.
(E) Insufficient pupil participation in the assessments included
in the API.
(3) If a school or school district has fewer than 100 pupils with
valid test scores, the calculation of the API or adequate yearly
progress pursuant to the federal No Child Left Behind Act of 2001 (20
U.S.C. Sec. 6301 et seq.) and federal regulations may be calculated
over more than one annual administration of the tests administered
pursuant to Section 60640 and the high school exit examination
administered pursuant to Section 60851, consistent with regulations
adopted by the state board.
(f) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
(g) The Superintendent, with the approval of the state board,
shall develop an alternative accountability system for schools under
the jurisdiction of a county board of education or a county
superintendent of schools, community day schools, nonpublic,
nonsectarian schools pursuant to Section 56366, and alternative
schools serving high-risk pupils, including continuation high schools
and opportunity schools. Schools in the alternative accountability
system may receive an API score, but shall not be included in the API
rankings.
(h) For purposes of this section, county offices of education
shall be considered school districts.
SEC. 96. Section 52052.1 of the Education Code is amended to read:
52052.1. (a) Beginning July 1, 2011, in addition to the test
scores specified in subparagraph (B) of paragraph (4) of subdivision
(a) of Section 52052, the Academic Performance Index (API) for a
school or school district shall do all of the following:
(1) Include the test scores and other accountability data of
enrolled pupils who were referred by the school or school district of
residence to an alternative education program, including community,
community day, and continuation high schools and independent study,
and be calculated by assigning all accountability data on pupils in
alternative education programs, including community, community day,
and continuation high schools and independent study, to the school
and school district of residence to ensure that placement decisions
are in the best interests of affected pupils. If a pupil is referred
to an alternative education program by a juvenile court judge or
other correctional or judicial official, or if the pupil is expelled
pursuant to subdivision (a) or (c) of Section 48915, the test scores
of that pupil shall remain with the alternative education program and
with the school district or county office of education serving that
pupil. This section does not prohibit the alternative education
program from counting the test scores of those pupils served in their
alternative education program. It is the intent of the Legislature
that these alternative education programs remain accountable to the
pupils they serve.
(2) Exclude the test scores or other data of those pupils exempt
pursuant to federal statute or federal regulation.
(3) Include school and school district dropout rates for pupils
who drop out of school while enrolled in grade 8 or 9. If reliable
data is not available by July 1, 2011, the Superintendent, on or
before that date, shall report to the Legislature the reasons for the
delay and date he or she anticipates the specified dropout rates
will be included in the API.
(b) The advisory committee established pursuant to Section 52052.5
shall recommend to the Superintendent and the state board all of the
following:
(1) The length of time for which the accountability data on pupils
in alternative education programs shall be assigned to the school
and school district of residence pursuant to paragraph (1) of
subdivision (a).
(2) Whether it is appropriate to assign accountability data to the
school or the school district, pursuant to paragraph (1) of
subdivision (a), if the pupil never attended the school of residence
or has been absent for more than one year from the school district of
residence due to placement in another school or school district or
out of state.
(c) Before January 30, 2014, the advisory committee established
pursuant to Section 52052.5 shall review, and recommend to the
Superintendent and the state board any changes proposed for, the
assignment of accountability data to the school district of residence
pursuant to paragraph (1) of subdivision (a) based on the addition
of Sections 2574, 2575, 42238.02, and 42238.03, and Article 4.5
(commencing with Section 52060) by the act adding this subdivision.
SEC. 97. Section 52052.2 of the Education Code is repealed.
SEC. 98. Section 52052.5 of the Education Code is amended to read:
52052.5. (a) The Superintendent shall establish a broadly
representative and diverse advisory committee to advise the
Superintendent and the state board on all appropriate matters
relative to the creation of the Academic Performance Index. Members
of the advisory committee shall serve without compensation for terms
not to exceed two years. The department shall provide staff to the
advisory panel.
(b) By July 1, 2005, the advisory committee established pursuant
to this section shall make recommendations to the Superintendent on
the appropriateness and feasibility of a methodology for generating a
measurement of academic performance by using unique pupil
identifiers for pupils in kindergarten and any of grades 1 to 12,
inclusive, and annual academic achievement growth to provide a more
accurate measure of a school's growth over time. If appropriate and
feasible, the Superintendent, with the approval of the state board,
shall thereafter implement this measurement of academic performance.
(c) By January 1, 2011, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on each of the following:
(1) Approaches to increasing the emphasis of science and
mathematics in the calculation of the Academic Performance Index or
any successor measure.
(2) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to attain entry-level employment in
business or industry, as set forth in subdivision (b) of Section
51228.
(3) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to succeed in postsecondary education.
(d) By July 1, 2013, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on the establishment of a methodology for generating a
measurement of group and individual academic performance growth by
utilizing individual pupil results from a longitudinally valid
achievement assessment system. These recommendations should also
address any interactions between the Academic Performance Index, or
any successor measure, and individual test scores from the state's
tests, as well as implications for the reauthorization of the state's
assessment system. This paragraph shall not be construed to
supersede the provisions of Chapter 273 of the Statutes of 2009.
SEC. 99. Article 3 (commencing with Section 52053) of Chapter 601
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
SEC. 100. Article 3.5 (commencing with Section 52055.600) of
Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education Code
is repealed.
SEC. 101. Section 52055.750 of the Education Code is amended to
read:
52055.750. (a) A school district or chartering authority that
receives funding pursuant to this article shall agree to do all of
the following for each funded school within its jurisdiction:
(1) Comply with the
program requirements of this article and require that each funded
schoolsite complete and meet the criteria of an academic review
process that includes the elements of the school assistance and
intervention team review process described in Section 52055.51, as
that section read on January 1, 2013.
(2) Ensure that funded schools meet the requirements of this
article.
(3) Ensure that each school administrator in a funded school is
confirmed to have exemplary qualifications and experience by the end
of the first full year of funding and in each year of funding
thereafter. Those qualifications shall include the ability to support
the success of all pupils by facilitating the development,
articulation, implementation, and stewardship of a vision of learning
that is shared and supported by the school community as well as the
ability to advocate, nurture, and sustain a school culture and
instructional program that is conducive to pupils learning and staff
professional growth. The school district or chartering authority
shall provide for high quality professional development for each
administrator through leadership training, coaching, and mentoring
and shall take all reasonable steps to maintain stable school
leadership in schools that receive funding pursuant to this article.
To the extent appropriate, the professional development shall be
similar in quality and rigor to that provided pursuant to the
Administrator Training Program under Article 4.6 (commencing with
Section 44510) of Chapter 3 of Part 25.
(4) Provide all fiscal and evaluation data requested by the
Superintendent for initial approval, annual reviews, and reports.
(5) Comply with subdivisions (a) to (c), inclusive, of Section
52055.630, as that section read on January 1, 2013, and in the same
manner consult with the exclusive representative of classified
employees.
(6) Assist eligible schools in developing and carrying out a plan
to implement the provisions of this article to ensure the school
district's plan supports the work of the school.
(7) Agree to focus on conditions that improve instruction and
achievement in funded schools.
(8) Express its full understanding that not meeting annual and
final program and academic achievement requirements under this
article will result in the termination of funding.
(9) Ensure that the funds received on behalf of funded schools are
expended on that school, except that during the first partial year
of funding school districts may use funding under this article for
facilities necessary to meet the class size reduction requirements of
this article, if all funds are spent on funded schools within the
school district.
(10) Use the uniform process recommended by the Superintendent
pursuant to subdivision (d) of Section 52055.730 to ensure that the
average teaching experience of the classroom teachers in funded
schools is equal to or greater than the average teaching experience
of classroom teachers in the school district as a whole.
(b) If not expressly prohibited by federal law, a school district
or chartering authority on behalf of a funded school is exempt from
requirements imposed on the use of state categorical or federal funds
in the consolidated application, except those funds related to
economic impact aid, if those funds are identified in the revised
plan of Section 52055.755. Funded schools are exempt from all program
requirements associated with funds in the consolidated application,
except requirements regarding parent advisory committees, schoolsite
councils, and special education. Funds provided under the economic
aid program shall not be used to implement this program.
(c) Each funded school shall ensure that each teacher in a
subject-specific classroom or teaching covered subjects participates
in professional development that is made available by the school
district or the schoolsite councils, is developed in a collaborative
process with interested parties, and is articulated in an improvement
plan. For purposes of this article, professional development
activities may include collaboration time for teachers to develop new
instructional lessons or analyze pupil data, mentoring projects for
new teachers, or extra support for teachers to improve practice. At a
minimum, appropriate professional development for the site shall be
part of a coherent plan that combines school activities within the
school, including, but not limited to, lesson study or coteaching,
and external learning opportunities that meet all of the following
criteria:
(1) Are related to the academic subjects taught.
(2) Provide time to meet and work with other teachers.
(3) Support instruction and pupil learning to improve instruction
in a manner that is consistent with academic content standards.
(4) Include an average of 40 hours per teacher per year.
(d) At a minimum, professional development in a self-contained
classroom shall include content regarding mathematics, science,
English language arts, reading, and English language development.
Professional development for teachers teaching subject specific
courses shall include the specific subject and English language
development. To the extent appropriate the professional development
shall be similar in quality and rigor to the training provided under
the Mathematics and Reading Professional Development Program in
Article 3 (commencing with Section 99230) of Chapter 5 of Part 65 of
Division 14 of Title 3.
(e) On or before the end of the first three years of full funding,
funded schools shall do the following:
(1) Increase actual pupil attendance, as compared with monthly
enrollment in the school.
(2) For secondary schools, increase graduation rates as described
in Section 52055.640.
SEC. 102. Article 4 (commencing with Section 52056) of Chapter 6.1
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
SEC. 103. Article 4.5 (commencing with Section 52060) is added to
Chapter 6.1 of Part 28 of Division 4 of Title 2 of the Education
Code, to read:
Article 4.5. Local Control and Accountability Plans
52060. (a) On or before July 1, 2014, the governing board of each
school district shall adopt a local control and accountability plan
using a template adopted by the state board.
(b) A local control and accountability plan adopted by a governing
board of a school district shall be effective for a period of three
years, and shall be updated on or before July 1 of each year.
(c) A local control and accountability plan adopted by a governing
board of a school district shall include, for the school district
and each school within the school district, a description of both of
the following:
(1) The annual goals, for all pupils and each subgroup of pupils
identified pursuant to Section 52052, to be achieved for each of the
state priorities identified in subdivision (d) and for any additional
local priorities identified by the governing board of the school
district. For purposes of this article, a subgroup of pupils
identified pursuant to Section 52052 shall be a numerically
significant pupil subgroup as specified in paragraphs (2) and (3) of
subdivision (a) of Section 52052.
(2) The specific actions the school district will take during each
year of the local control and accountability plan to achieve the
goals identified in paragraph (1), including the enumeration of any
specific actions necessary for that year to correct any deficiencies
in regard to the state priorities listed in paragraph (1) of
subdivision (d).
(d) All of the following are state priorities:
(1) The degree to which the teachers of the school district are
appropriately assigned in accordance with Section 44258.9, and fully
credentialed in the subject areas, and, for the pupils they are
teaching, every pupil in the school district has sufficient access to
the standards-aligned instructional materials as determined pursuant
to Section 60119, and school facilities are maintained in good
repair as specified in subdivision (d) of Section 17002.
(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs and
services will enable English learners to access the common core
academic content standards adopted pursuant to Section 60605.8 and
the English language development standards adopted pursuant to
Section 60811.3 for purposes of gaining academic content knowledge
and English language proficiency.
(3) Parental involvement, including efforts the school district
makes to seek parent input in making decisions for the school
district and each individual schoolsite, and including how the school
district will promote parental participation in programs for
unduplicated pupils and individuals with exceptional needs.
(4) Pupil achievement, as measured by all of the following, as
applicable:
(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.
(B) The Academic Performance Index, as described in Section 52052.
(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career
technical education sequences or clusters of courses that satisfy the
requirements of subdivision (a) of Section 52302, subdivision (a) of
Section 52372.5, or paragraph (2) of subdivision (e) of Section
54692, and align with state board-approved career technical education
standards and frameworks.
(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of English
proficiency, as certified by the state board.
(E) The English learner reclassification rate.
(F) The percentage of pupils who have passed an advanced placement
examination with a score of 3 or higher.
(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program, as
described in Chapter 6 (commencing with Section 99300) of Part 65 of
Division 14 of Title 3, or any subsequent assessment of college
preparedness.
(5) Pupil engagement, as measured by all of the following, as
applicable:
(A) School attendance rates.
(B) Chronic absenteeism rates.
(C) Middle school dropout rates, as described in paragraph (3) of
subdivision (a) of Section 52052.1.
(D) High school dropout rates.
(E) High school graduation rates.
(6) School climate, as measured by all of the following, as
applicable:
(A) Pupil suspension rates.
(B) Pupil expulsion rates.
(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.
(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive, of
Section 51220, as applicable, including the programs and services
developed and provided to unduplicated pupils and individuals with
exceptional needs, and the program and services that are provided to
benefit these pupils as a result of the funding received pursuant to
Section 42238.02, as implemented by Section 42238.03.
(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.
(e) For purposes of the descriptions required by subdivision (c),
a governing board of a school district may consider qualitative
information, including, but not limited to, findings that result from
school quality reviews conducted pursuant to subparagraph (J) or
paragraph (4) of subdivision (a) of Section 52052 or any other
reviews.
(f) To the extent practicable, data reported in a local control
and accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.
(g) A governing board of a school district shall consult with
teachers, principals, administrators, other school personnel,
parents, and pupils in developing a local control and accountability
plan.
(h) A school district may identify local priorities, goals in
regard to the local priorities, and the method for measuring the
school district's progress toward achieving those goals.
52061. (a) On or before July 1, 2015, and each year thereafter, a
school district shall update the local control and accountability
plan. The annual update shall be developed using a template developed
pursuant to Section 52064 and shall include all of the following:
(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52060.
(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of the
effectiveness of the specific actions described in the existing local
control and accountability plan toward achieving the goals, and a
description of changes to the specific actions the school district
will make as a result of the review and assessment.
(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan as a result of the reviews and assessment
required by paragraphs (1) and (2).
(4) A listing and description of expenditures for the fiscal year
that will serve the pupils to whom one or more of the definitions in
Section 42238.01 apply and pupils redesignated as fluent English
proficient.
(b) The expenditures identified in subdivision (a) shall be
classified using the California School Accounting Manual pursuant to
Section 41010.
52062. (a) Before the governing board of a school district
considers the adoption of a local control and accountability plan or
an annual update to the local control and accountability plan, all of
the following shall occur:
(1) The superintendent of the school district shall present the
local control and accountability plan or annual update to the local
control and accountability plan to the parent advisory committee
established pursuant to Section 52063 for review and comment. The
superintendent of the school district shall respond, in writing, to
comments received from the parent advisory committee.
(2) The superintendent of the school district shall present the
local control and accountability plan or annual update to the local
control and accountability plan to the English learner parent
advisory committee established pursuant to Section 52063, if
applicable, for review and comment. The superintendent of the school
district shall respond, in writing, to comments received from the
English learner parent advisory committee.
(3) The superintendent of the school district shall notify members
of the public of the opportunity to submit written comments
regarding the specific actions and expenditures proposed to be
included in the local control and accountability plan or annual
update to the local control and accountability plan, using the most
efficient method of notification possible. This paragraph shall not
require a school district to produce printed notices or to send
notices by mail.
(4) The superintendent of the school district shall review school
plans submitted pursuant to Section 64001 for schools within the
school district and ensure that the specific actions included in the
local control and accountability plan or annual update to the local
control and accountability plan are consistent with strategies
included in the school plans submitted pursuant to Section 64001.
(b) (1) A governing board of a school district shall hold at least
one public hearing to solicit the recommendations and comments of
members of the public regarding the specific actions and expenditures
proposed to be included in the local control and accountability plan
or annual update to the local control and accountability plan. The
agenda for the public hearing shall be posted at least 72 hours
before the public hearing and shall include the location where the
local control and accountability plan or annual update to the local
control and accountability plan will be available for public
inspection. The public hearing shall be held at the same meeting as
the public hearing required by paragraph (1) of subdivision (a) of
Section 42127.
(2) A governing board of a school district shall adopt a local
control and accountability plan or annual update to the local control
and accountability plan in a public meeting. This meeting shall be
held after, but not on the same day as, the public hearing held
pursuant to paragraph (1). This meeting shall be the same meeting as
that during which the governing board of the school district adopts a
budget pursuant to paragraph (2) of subdivision (a) of Section
42127.
(c) A governing board of a school district may adopt revisions to
a local control and accountability plan during the period the local
control and accountability plan is in effect. A governing board of a
school district may only adopt a revision to a local control and
accountability plan if it follows the process to adopt a local
control and accountability plan pursuant to this section and the
revisions are adopted in a public meeting.
52063. (a) (1) The governing board of a school district shall
establish a parent advisory committee to provide advice to the
governing board of the school district and the superintendent of the
school district regarding the requirements of this article.
(2) A parent advisory committee shall include parents or legal
guardians of pupils to whom one or more of the definitions in Section
42238.01 apply.
(3) This subdivision shall not require the governing board of the
school district to establish a new parent advisory committee if the
governing board of the school district already has established a
parent advisory committee that meets the requirements of this
subdivision, including any committee established to meet the
requirements of the federal No Child Left Behind Act of 2001 (Public
Law 107-110) pursuant to Section 1112 of Subpart 1 of Part A of Title
I of that act.
(b) (1) The governing board of a school district shall establish
an English learner parent advisory committee if the enrollment of the
school district includes at least 15 percent English learners and
the school district enrolls at least 50 pupils who are English
learners.
(2) This subdivision shall not require the governing board of the
school district to establish a new English learner parent advisory
committee if the governing board of the school district already has
established a committee that meets the requirements of this
subdivision.
52064. (a) On or before March 31, 2014, the state board shall
adopt templates for the following purposes:
(1) For use by school districts to meet the requirements of
Sections 52060 to 52063, inclusive.
(2) For use by county superintendents of schools to meet the
requirements of Sections 52066 to 52069, inclusive.
(3) For use by charter schools to meet the requirements of Section
47606.5.
(b) The templates developed by the state board shall allow a
school district, county superintendent of schools, or charter school
to complete a single local control and accountability plan to meet
the requirements of this article and the requirements of the federal
No Child Left Behind Act of 2001 related to local educational agency
plans pursuant to Section 1112 of Subpart 1 of Part A of Title I of
Public Law 107-110. The state board shall also take steps to minimize
duplication of effort at the local level to the greatest extent
possible.
(c) If possible, the templates identified in paragraph (2) of
subdivision (a) for use by county superintendents of schools shall
allow a county superintendent of schools to develop a single local
control and accountability plan that would also satisfy the
requirements of Section 48926.
(d) The state board shall adopt the template pursuant to the
requirements of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code). The state board may adopt emergency
regulations for purposes of implementing this section.
(e) Revisions to a template or evaluation rubric shall be approved
by the state board by January 31 before the fiscal year during which
the template or evaluation rubric is to be used by a school
district, county superintendent of schools, or charter school.
(f) The adoption of a template or evaluation rubric by the state
board shall not create a requirement for a governing board of a
school district, a county board of education, or a governing body of
a charter school to submit a local control and accountability plan to
the state board, unless otherwise required by federal law. The
Superintendent shall not require a local control and accountability
plan to be submitted by a governing board of a school district or the
governing body of a charter school to the state board. The state
board may adopt a template or evaluation rubric that would authorize
a school district or a charter school to submit to the state board
only the sections of the local control and accountability plan
required by federal law.
52064.5. (a) On or before October 1, 2015, the state board shall
adopt evaluation rubrics for all of the following purposes:
(1) To assist a school district, county office of education, or
charter school in evaluating its strengths, weaknesses, and areas
that require improvement.
(2) To assist a county superintendent of schools in identifying
school districts and charter schools in need of technical assistance
pursuant to Section 52071 or 47607.3, as applicable, and the specific
priorities upon which the technical assistance should be focused.
(3) To assist the Superintendent in identifying school districts
for which intervention pursuant to Section 52072 is warranted.
(b) The evaluation rubrics shall reflect a holistic,
multidimensional assessment of school district and individual
schoolsite performance and shall include all of the state priorities
described in subdivision (d) of Section 52060.
(c) As part of the evaluation rubrics, the state board shall adopt
standards for school district and individual schoolsite performance
and expectation for improvement in regard to each of the state
priorities described in subdivision (d) of Section 52060.
52065. (a) The superintendent of a school district shall post on
the Internet Web site of the school district any local control and
accountability plan approved by the governing board of the school
district, and any updates or revisions to a local control and
accountability plan approved by the governing board of the school
district.
(b) A county superintendent of schools shall do all of the
following:
(1) Post on the Internet Web site of the county office of
education any local control and accountability plan approved by the
county board of education, and any updates or revisions to a local
control and accountability plan approved by the county board of
education.
(2) Post all local control and accountability plans submitted by
school districts, or links to those plans, on the Internet Web site
of the county office of education.
(3) Transmit or otherwise make available to the Superintendent all
local control and accountability plans submitted to the county
superintendent of schools by school districts and the local control
and accountability plan approved by the county board of education.
(c) The Superintendent shall post links to all local control and
accountability plans approved by the governing boards of school
districts and county boards of education on the Internet Web site of
the department.
52066. (a) On or before July 1, 2014, each county superintendent
of schools shall develop, and present to the county board of
education for adoption, a local control and accountability plan using
a template adopted by the state board.
(b) A local control and accountability plan adopted by a county
board of education shall be effective for a period of three years,
and shall be updated on or before July 1 of each year.
(c) A local control and accountability plan adopted by a county
board of education shall include, for each school or program operated
by the county superintendent of schools, a description of both of
the following:
(1) The annual goals, for all pupils and each subgroup of pupils
identified pursuant to Section 52052, to be achieved for each of the
state priorities identified in subdivision (d), as applicable to the
pupils served, and for any additional local priorities identified by
the county board of education.
(2) The specific actions the county superintendent of schools will
take during each year of the local control and accountability plan
to achieve the goals identified in paragraph (1), including the
enumeration of any specific actions necessary for that year to
correct any deficiencies in regard to the state priorities listed in
paragraph (1) of subdivision (d).
(d) All of the following are state priorities:
(1) The degree to which the teachers in the schools or programs
operated by the county superintendent of schools are appropriately
assigned in accordance with Section 44258.9 and fully credentialed in
the subject areas, and, for the pupils they are teaching, every
pupil in the schools or programs operated by the county
superintendent of schools has sufficient access to the
standards-aligned instructional materials as determined pursuant to
Section 60119, and school facilities are maintained in good repair as
specified in subdivision (d) of Section 17002.
(2) Implementation of the academic content and performance
standards adopted by the state board, including how the programs and
services will enable English learners to access the common core
academic content standards adopted pursuant to Section 60605.8 and
the English language development standards adopted pursuant to
Section 60811.3 for purposes of gaining academic content knowledge
and English language proficiency.
(3) Parental involvement, including efforts the county
superintendent of schools makes to seek parent input in making
decisions for each individual schoolsite and program operated by a
county superintendent of schools, and including how the county
superintendent of schools will promote parental participation in
programs for unduplicated pupils and individuals with exceptional
needs.
(4) Pupil achievement, as measured by all of the
following, as applicable:
(A) Statewide assessments administered pursuant to Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 or any
subsequent assessment, as certified by the state board.
(B) The Academic Performance Index, as described in Section 52052.
(C) The percentage of pupils who have successfully completed
courses that satisfy the requirements for entrance to the University
of California and the California State University, or career
technical education sequences or clusters of courses that satisfy the
requirements of subdivision (a) of Section 52302, subdivision (a) of
Section 52372.5, or paragraph (2) of subdivision (e) of Section
54692, and align with state board-approved career technical education
standards and frameworks.
(D) The percentage of English learner pupils who make progress
toward English proficiency as measured by the California English
Language Development Test or any subsequent assessment of English
proficiency, as certified by the state board.
(E) The English learner reclassification rate.
(F) The percentage of pupils who have passed an advanced placement
examination with a score of 3 or higher.
(G) The percentage of pupils who participate in, and demonstrate
college preparedness pursuant to, the Early Assessment Program, as
described in Chapter 6 (commencing with Section 99300) of Part 65 of
Division 14 of Title 3, or any subsequent assessment of college
preparedness.
(5) Pupil engagement, as measured by all of the following, as
applicable:
(A) School attendance rates.
(B) Chronic absenteeism rates.
(C) Middle school dropout rates, as described in paragraph (3) of
subdivision (a) of Section 52052.1.
(D) High school dropout rates.
(E) High school graduation rates.
(6) School climate, as measured by all of the following, as
applicable:
(A) Pupil suspension rates.
(B) Pupil expulsion rates.
(C) Other local measures, including surveys of pupils, parents,
and teachers on the sense of safety and school connectedness.
(7) The extent to which pupils have access to, and are enrolled
in, a broad course of study that includes all of the subject areas
described in Section 51210 and subdivisions (a) to (i), inclusive, of
Section 51220, as applicable, including the programs and services
developed and provided to unduplicated pupils and individuals with
exceptional needs, and the program and services that are provided to
benefit these pupils as a result of the funding received pursuant to
Section 42238.02, as implemented by Section 42238.03.
(8) Pupil outcomes, if available, in the subject areas described
in Section 51210 and subdivisions (a) to (i), inclusive, of Section
51220, as applicable.
(9) How the county superintendent of schools will coordinate
instruction of expelled pupils pursuant to Section 48926.
(10) How the county superintendent of schools will coordinate
services for foster children, including, but not limited to, all of
the following:
(A) Working with the county child welfare agency to minimize
changes in school placement.
(B) Providing education-related information to the county child
welfare agency to assist the county child welfare agency in the
delivery of services to foster children, including, but not limited
to, educational status and progress information that is required to
be included in court reports.
(C) Responding to requests from the juvenile court for information
and working with the juvenile court to ensure the delivery and
coordination of necessary educational services.
(D) Establishing a mechanism for the efficient expeditious
transfer of health and education records and the health and education
passport.
(e) For purposes of the descriptions required by subdivision (c),
a county board of education may consider qualitative information,
including, but not limited to, findings that result from school
quality reviews conducted pursuant to subparagraph (J) or paragraph
(4) of subdivision (a) of Section 52052 or any other reviews.
(f) To the extent practicable, data reported in a local control
and accountability plan shall be reported in a manner consistent with
how information is reported on a school accountability report card.
(g) The county superintendent of schools shall consult with
teachers, principals, administrators, other school personnel,
parents, and pupils in developing a local control and accountability
plan.
(h) A county board of education may identify local priorities,
goals in regard to the local priorities, and the method for measuring
the county office of education's progress toward achieving those
goals.
52067. (a) On or before July 1, 2015, and each year thereafter, a
county board of education shall update the local control and
accountability plan. The annual update shall be developed using a
template developed pursuant to Section 52064 and shall include all of
the following:
(1) A review of any changes in the applicability of the goals
described in paragraph (1) of subdivision (c) of Section 52066.
(2) A review of the progress toward the goals included in the
existing local control and accountability plan, an assessment of the
effectiveness of the specific actions described in the existing local
control and accountability plan toward achieving the goals, and a
description of changes to the specific actions the county office of
education will make as a result of the review and assessment.
(3) A listing and description of the expenditures for the fiscal
year implementing the specific actions included in the local control
and accountability plan as a result of the reviews and assessment
required by paragraphs (1) and (2).
(4) A listing and description of expenditures for the fiscal year
that will serve the pupils to whom one or more of the definitions in
Section 42238.01 apply and pupils redesignated as fluent English
proficient.
(b) The expenditures identified in subdivision (a) shall be
classified using the California School Accounting Manual pursuant to
Section 41010.
52068. (a) Before the county board of education considers the
adoption of a local control and accountability plan or an annual
update to the local control and accountability plan, all of the
following shall occur:
(1) The county superintendent of schools shall present the local
control and accountability plan or annual update to the local control
and accountability plan to a parent advisory committee established
pursuant to Section 52069 for review and comment. The county
superintendent of schools shall respond, in writing, to comments
received from the parent advisory committee.
(2) The county superintendent of schools shall present the local
control and accountability plan or annual update to the local control
and accountability plan to the English learner parent advisory
committee established pursuant to Section 52069, if applicable, for
review and comment. The county superintendent of schools shall
respond, in writing, to comments received from the English learner
parent advisory committee.
(3) The county superintendent of schools shall notify members of
the public of the opportunity to submit written comments regarding
the specific actions and expenditures proposed to be included in the
local control and accountability plan or annual update to the local
control and accountability plan, using the most efficient method of
notification possible. This paragraph shall not require a county
superintendent of schools to produce printed notices or to send
notices by mail.
(4) The county superintendent of schools shall review school plans
submitted pursuant to Section 64001 for schools operated by the
county superintendent of schools and ensure that the specific actions
included in the local control and accountability plan or annual
update to the local control and accountability plan are consistent
with strategies included in the school plans submitted pursuant to
Section 64001.
(b) (1) The county board of education shall hold at least one
public hearing to solicit the recommendations and comments of members
of the public regarding the specific actions and expenditures
proposed to be included in the local control and accountability plan
or annual update to the local control and accountability plan. The
agenda for the public hearing shall be posted at least 72 hours
before the public hearing and shall include the location where the
local control and accountability plan or annual update to the local
control and accountability plan, and any comments received pursuant
to paragraphs (1) to (3), inclusive, of subdivision (a), will be
available for public inspection. The public hearing shall be held at
the same meeting as the public hearing required by Section 1620.
(2) The county board of education shall adopt a local control and
accountability plan or annual update to the local control and
accountability plan in a public meeting. This meeting shall be held
after, but not on the same day as, the public hearing held pursuant
to paragraph (1). This meeting shall be the same meeting as that
during which the county board of education adopts a budget pursuant
to Section 1622.
(c) A county superintendent of schools may develop and present to
a county board of education for adoption revisions to a local control
and accountability plan during the period the local control and
accountability plan is in effect. The county board of education may
only adopt a revision to a local control and accountability plan if
it follows the process to adopt a local control and accountability
plan pursuant to this section and the revisions are adopted in a
public meeting.
52069. (a) (1) A county superintendent of schools shall establish
a parent advisory committee to provide advice to the county board of
education and the county superintendent of schools regarding the
requirements of this article.
(2) A parent advisory committee shall include parents or legal
guardians of pupils to whom one or more of the definitions in Section
42238.01 apply.
(3) This subdivision shall not require the county superintendent
of schools to establish a new parent advisory committee if the county
superintendent of schools already has established a parent advisory
committee that meets the requirements of this subdivision, including
any committee established to meet the requirements of the federal No
Child Left Behind Act of 2001 (Public Law 107-110) pursuant to
Section 1112 of Subpart 1 of Part A of Title I of that act.
(b) (1) A county superintendent of schools shall establish an
English learner parent advisory committee if the enrollment of the
pupils in the schools and programs operated by the county
superintendent of schools includes at least 15 percent English
learners and the schools and programs operated by the county
superintendent of schools enroll at least 50 pupils who are English
learners.
(2) This subdivision shall not require the county superintendent
of schools to establish a new English learner parent advisory
committee if the county superintendent of schools already has
established a committee that meets the requirements of this
subdivision.
52070. (a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the governing board of a school district
shall file the local control and accountability plan or annual update
to the local control and accountability plan with the county
superintendent of schools.
(b) On or before August 15 of each year, the county superintendent
of schools may seek clarification, in writing, from the governing
board of a school district about the contents of the local control
and accountability plan or annual update to the local control and
accountability plan. Within 15 days the governing board of a school
district shall respond, in writing, to requests for clarification.
(c) Within 15 days of receiving the response from the governing
board of the school district, the county superintendent of schools
may submit recommendations, in writing, for amendments to the local
control and accountability plan or annual update to the local control
and accountability plan. The governing board of a school district
shall consider the recommendations submitted by the county
superintendent of schools in a public meeting within 15 days of
receiving the recommendations.
(d) The county superintendent of schools shall approve a local
control and accountability plan or annual update to a local control
and accountability plan on or before October 8, if he or she
determines both of the following:
(1) The local control and accountability plan or annual update to
the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.
(2) The budget for the applicable fiscal year adopted by the
governing board of the school district includes expenditures
sufficient to implement the specific actions and strategies included
in the local control and accountability plan adopted by the governing
board of the school district, based on the projections of the costs
included in the plan.
(e) If a county superintendent of schools has jurisdiction over a
single school district, the Superintendent shall designate a county
superintendent of schools of an adjoining county to perform the
duties specified in this section.
52070.5. (a) Not later than five days after adoption of a local
control and accountability plan or annual update to a local control
and accountability plan, the county board of education shall file the
local control and accountability plan or annual update to the local
control and accountability plan with the Superintendent.
(b) On or before August 15 of each year, the Superintendent may
seek clarification, in writing, from the county board of education
about the contents of the local control and accountability plan or
annual update to the local control and accountability plan. Within 15
days the county board of education shall respond, in writing, to
requests for clarification.
(c) Within 15 days of receiving the response from the county board
of education, the Superintendent may submit recommendations, in
writing, for amendments to the local control and accountability plan
or annual update to the local control and accountability plan. The
county board of education shall consider the recommendations
submitted by the Superintendent in a public meeting within 15 days of
receiving the recommendations.
(d) The Superintendent shall approve a local control and
accountability plan or annual update to a local control and
accountability plan on or before October 8, if he or she determines
both of the following:
(1) The local control and accountability plan or annual update to
the local control and accountability plan adheres to the template
adopted by the state board pursuant to Section 52064.
(2) The budget for the applicable fiscal year adopted by the
county board of education includes expenditures sufficient to
implement the specific actions and strategies included in the local
control and accountability plan adopted by the county board of
education, based on the projections of the costs included in the
plan.
52071. (a) If a county superintendent of schools does not approve
a local control and accountability plan or annual update to the
local control and accountability plan approved by a governing board
of a school district, or if the governing board of a school district
requests technical assistance, the county superintendent of schools
shall provide technical assistance, including, among other things,
any of the following:
(1) Identification of the school district's strengths and
weaknesses in regard to the state priorities described in subdivision
(d) of Section 52060, communicated in writing to the school
district. This identification shall include a review of effective,
evidence-based programs that apply to the school district's goals.
(2) Assignment of an academic expert or team of academic experts
to assist the school district in identifying and implementing
effective programs that are designed to improve the outcomes for all
pupil subgroups identified pursuant to Section 52052. The county
superintendent of schools may also solicit another school district
within the county to act as a partner to the school district in need
of technical assistance.
(3) Request that the Superintendent assign the California
Collaborative for Educational Excellence to provide advice and
assistance to the school district.
(b) Using an evaluation rubric adopted by the state board pursuant
to Section 52064.5, the county superintendent of schools shall
provide the technical assistance described in subdivision (a) to any
school district that fails to improve pupil achievement across more
than one state priority described in subdivision (d) of Section 52060
for one or more pupil subgroup identified pursuant to Section 52052.
(c) Technical assistance provided pursuant to this section at the
request of a school district shall be paid for by the school district
requesting the assistance.
52071.5. (a) If the Superintendent does not approve a local
control and accountability plan or annual update to the local control
and accountability plan approved by a county board of education, or
if the county board of education requests technical assistance, the
Superintendent shall provide technical assistance, including, among
other things, any of the following:
(1) Identification of the county board of education's strengths
and weaknesses in regard to the state priorities described in
subdivision (d) of Section 52066, communicated in writing to the
county board of education. This identification shall include a review
of effective, evidence-based programs that apply to the board's
goals.
(2) Assignment of an academic expert or team of academic experts,
or the California Collaborative for Educational Excellence
established pursuant to Section 52074, to assist the county board of
education in identifying and implementing effective programs that are
designed to improve the outcomes for all pupil subgroups identified
pursuant to Section 52052. The Superintendent may also solicit
another county office of education to act as a partner to the county
office of education in need of technical assistance.
(b) Using an evaluation rubric adopted by the state board pursuant
to Section 52064.5, the Superintendent shall provide the technical
assistance described in subdivision (a) to any county office of
education that fails to improve pupil achievement in regard to more
than one state priority described in subdivision (d) of Section 52066
for one or more pupil subgroups identified pursuant to Section
52052.
(c) Technical assistance provided pursuant to this section at the
request of a county board of education shall be paid for by the
county board of education receiving assistance.
52072. (a) The Superintendent may, with the approval of the state
board, identify school districts in need of intervention.
(b) The Superintendent shall only intervene in a school district
that meets both of the following criteria:
(1) The school district did not improve the outcomes for three or
more pupil subgroups identified pursuant to Section 52052 or, if the
school district has less than three pupil subgroups, all of the
school district's pupil subgroups, in regard to more than one state
or local priority in three out of four consecutive school years.
(2) The California Collaborative for Educational Excellence has
provided advice and assistance to the school district pursuant to
Section 52071 and submits either of the following findings to the
Superintendent:
(A) That the school district has failed, or is unable, to
implement the recommendations of the California Collaborative for
Educational Excellence.
(B) That the inadequate performance of the school district, based
upon an evaluation rubric adopted pursuant to Section 52064.5, is
either so persistent or acute as to require intervention by the
Superintendent.
(c) For school districts identified pursuant to subdivision (a),
the Superintendent may, with the approval of the state board, do one
or more of the following:
(1) Make changes to a local control and accountability plan
adopted by the governing board of the school district.
(2) Develop and impose a budget revision, in conjunction with
revisions to the local control and accountability plan, that the
Superintendent determines would allow the school district to improve
the outcomes for all pupil subgroups identified pursuant to Section
52052 in regard to state and local priorities.
(3) Stay or rescind an action, if that action is not required by a
local collective bargaining agreement, that would prevent the school
district from improving outcomes for all pupil subgroups identified
pursuant to Section 52052 in regard to state or local priorities.
(4) Appoint an academic trustee to exercise the powers and
authority specified in this section on his or her behalf.
(d) The Superintendent shall notify the county superintendent of
schools, the county board of education, the superintendent of the
school district, and the governing board of the school district of
any action by the state board to direct him or her to exercise any of
the powers and authorities specified in this section.
52072.5. (a) The Superintendent may, with the approval of the
state board, identify county offices of education in need of
intervention.
(b) The Superintendent shall only intervene in a county office of
education that meets both of the following criteria:
(1) The county office of education did not improve the outcomes
for three or more pupil subgroups identified pursuant to Section
52052 or, if the county office of education has less than three pupil
subgroups, all of the county office of education's pupil subgroups,
in regard to more than one state or local priority in three out of
four consecutive school years.
(2) The California Collaborative for Educational Excellence has
provided advice and assistance to the county office of education
pursuant to Section 52071.5 and submits either of the following
findings to the Superintendent:
(A) That the county office of education has failed, or is unable,
to implement the recommendations of the California Collaborative for
Educational Excellence.
(B) That the inadequate performance of the county office of
education, based upon an evaluation rubric adopted pursuant to
Section 52064.5, is either so persistent or acute as to require
intervention by the Superintendent.
(c) For county offices of education identified pursuant to
subdivision (a), the Superintendent may, with the approval of the
state board, do one or more of the following:
(1) Make changes to a local control and accountability plan
adopted by the county board of education.
(2) Develop and impose a budget revision, in conjunction with
revisions to the local control and accountability plan, that the
Superintendent determines would allow the county office of education
to improve the outcomes for all pupil subgroups identified pursuant
to Section 52052 in regard to state and local priorities.
(3) Stay or rescind an action, if that action is not required by a
local collective bargaining agreement, that would prevent the county
office of education from improving outcomes for all pupil subgroups
identified pursuant to Section 52052 in regard to state or local
priorities.
(4) Appoint an academic trustee to exercise the powers and
authority specified in this section on his or her behalf.
(d) The Superintendent shall notify the county board of education
and the county superintendent of schools, in writing, of any action
by the state board to direct him or her to exercise any of the powers
and authorities specified in this section.
52074. (a) The California Collaborative for Educational
Excellence is hereby established.
(b) The purpose of the California Collaborative for Educational
Excellence is to advise and assist school districts, county
superintendents of schools, and charter schools in achieving the
goals set forth in a local control and accountability plan adopted
pursuant to this article.
(c) The Superintendent shall, with the approval of the state
board, contract with individuals, local educational agencies, or
organizations with the expertise, experience, and a record of success
to carry out the purposes of this article. The areas of expertise,
experience, and record of success shall include, but are not limited
to, all of the following:
(1) State priorities as described in subdivision (d) of Section
52060.
(2) Improving the quality of teaching.
(3) Improving the quality of school district and schoolsite
leadership.
(4) Successfully addressing the needs of special pupil
populations, including, but not limited to, English learners, pupils
eligible to receive a free or reduced-price meal, pupils in foster
care, and individuals with exceptional needs.
(d) The Superintendent may direct the California Collaborative for
Educational Excellence to advise and assist a school district,
county superintendent of schools, or charter school in any of the
following circumstances:
(1) If the governing board of a school district, county board of
education, or governing body or a charter school requests the advice
and assistance of the California Collaborative for Educational
Excellence.
(2) If the county superintendent of schools of the county in which
the school district or charter school is located determines,
following the provision of technical assistance pursuant to Section
52071 or 47607.3 as applicable, that the advice and assistance of the
California Collaborative for Educational Excellence is necessary to
help the school district or charter school accomplish the goals
described in the local control and accountability plan adopted
pursuant to this article.
(3) If the Superintendent determines that the advice and
assistance of the California Collaborative for Educational Excellence
is necessary to help the school district, county superintendent of
schools, or charter school accomplish the goals set forth in the
local control and accountability plan adopted pursuant to this
article.
52075. (a) A complaint that a school district, county
superintendent of schools, or charter school has not complied with
the requirements of this article or Sections 47606.5 and 47607.3, as
applicable, may be filed with a school district, county
superintendent of schools, or charter school pursuant to the Uniform
Complaint Procedures set forth in Chapter 5.1 (commencing with
Section 4600) of Division 1
of Title 5 of the California Code of Regulations.
(b) A complaint may be filed anonymously if the complaint provides
evidence or information leading to evidence to support an allegation
of noncompliance with the requirements of this article.
(c) A complainant not satisfied with the decision of a school
district, county superintendent of schools, or charter school may
appeal the decision to the Superintendent and shall receive a written
appeal decision within 60 days of the Superintendent's receipt of
the appeal.
(d) If a school district, county superintendent of schools, or
charter school finds merit in a complaint, or the Superintendent
finds merit in an appeal, the school district, county superintendent
of schools, or charter school shall provide a remedy to all affected
pupils, parents, and guardians.
(e) Information regarding the requirements of this article shall
be included in the annual notification distributed to pupils, parents
and guardians, employees, and other interested parties pursuant to
Section 4622 of Title 5 of the California Code of Regulations or any
successor regulation.
(f) School districts, county superintendents of schools, and
charter schools shall establish local policies and procedures to
implement the provisions of this section on or before June 30, 2014.
52076. Notwithstanding any other law, this article shall not be
subject to waiver by the state board pursuant to Section 33050 or by
the Superintendent.
52077. If any activities authorized pursuant to this article and
implementing regulations 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. 104. Section 56365 of the Education Code is amended to read:
56365. (a) Services provided by nonpublic, nonsectarian schools,
as defined pursuant to Section 56034, and nonpublic, nonsectarian
agencies, as defined pursuant to Section 56035, shall be made
available. These services shall be provided pursuant to Section
56366, and in accordance with Section 300.146 of Title 34 of the Code
of Federal Regulations, under contract with the local educational
agency to provide the appropriate special educational facilities,
special education, or designated instruction and services required by
the individual with exceptional needs if no appropriate public
education program is available.
(b) Pupils enrolled in nonpublic, nonsectarian schools and
agencies under this section shall be deemed to be enrolled in public
schools for all purposes of Chapter 4 (commencing with Section 41600)
of Part 24 of Division 3 and Section 42238.02. The local educational
agency shall be eligible to receive allowances under Articles 3
(commencing with Section 56836.165) and 4 (commencing with Section
56836.20) of Chapter 7.2 for services that are provided to
individuals with exceptional needs pursuant to the contract.
(c) If the state participates in the federal program of assistance
for state-operated or state-supported programs for individuals with
exceptional needs (Public Law 89-313, Sec. 6), pupils enrolled in
nonpublic, nonsectarian schools shall be deemed to be enrolled in
state-supported institutions for all purposes of that program and
shall be eligible to receive allowances under Chapter 7.2 (commencing
with Section 56836) for supplemental services provided to
individuals with exceptional needs pursuant to a contract with a
local educational agency. In order to participate in the federal
program, the state shall find that participation will not result in
any additional expenditures from the General Fund.
(d) The local educational agency shall pay to the nonpublic,
nonsectarian school or agency the full amount of the tuition for
individuals with exceptional needs that are enrolled in programs
provided by the nonpublic, nonsectarian school pursuant to the
contract.
(e) Before contracting with a nonpublic, nonsectarian school or
agency outside of this state, the local educational agency shall
document its efforts to utilize public schools or to locate an
appropriate nonpublic, nonsectarian school or agency program, or
both, within the state.
(f) If a local educational agency places a pupil with a nonpublic,
nonsectarian school or agency outside of this state, the pupil's
individualized education program team shall submit a report to the
Superintendent within 15 days of the placement decision. The report
shall include information about the special education and related
services provided by the out-of-state program placement and the costs
of the special education and related services provided, and shall
indicate the efforts of the local educational agency to locate an
appropriate public school or nonpublic, nonsectarian school or
agency, or a combination thereof, within the state. The
Superintendent shall submit a report to the board on all placements
made outside of this state.
(g) If a local educational agency decides to place a pupil with a
nonpublic, nonsectarian school or agency outside of this state, that
local educational agency shall indicate the anticipated date for the
return of the pupil to a public or nonpublic, nonsectarian school or
agency placement, or a combination thereof, located in the state and
shall document efforts during the previous placement year to return
the pupil.
(h) In addition to meeting the requirements of Section 56366.1, a
nonpublic, nonsectarian school or agency that operates a program
outside of this state shall be certified or licensed by that state to
provide, respectively, special education and related services and
designated instruction and related services to pupils under the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.).
(i) A nonpublic, nonsectarian school or agency that is located
outside of this state is eligible for certification pursuant to
Section 56366.1 only if a pupil is enrolled in a program operated by
that school or agency pursuant to the recommendation of an
individualized education program team in California, and if that
pupil's parents or guardians reside in California.
(j) In accordance with Section 300.147(b) and (c) of Title 34 of
the Code of Federal Regulations, the department shall disseminate
copies of applicable standards to each nonpublic, nonsectarian school
and nonpublic, nonsectarian agency to which a local educational
agency has referred or placed an individual with exceptional needs
and shall provide an opportunity for those nonpublic, nonsectarian
schools and nonpublic, nonsectarian agencies to participate in the
development and revision of state standards that apply to those
entities.
SEC. 105. Section 56366.1 of the Education Code is amended to
read:
56366.1. (a) A nonpublic, nonsectarian school or agency that
seeks certification shall file an application with the Superintendent
on forms provided by the department and include the following
information on the application:
(1) A description of the special education and designated
instruction and services provided to individuals with exceptional
needs if the application is for nonpublic, nonsectarian school
certification.
(2) A description of the designated instruction and services
provided to individuals with exceptional needs if the application is
for nonpublic, nonsectarian agency certification.
(3) A list of appropriately qualified staff, a description of the
credential, license, or registration that qualifies each staff member
rendering special education or designated instruction and services
to do so, and copies of their credentials, licenses, or certificates
of registration with the appropriate state or national organization
that has established standards for the service rendered.
(4) An annual operating budget.
(5) Affidavits and assurances necessary to comply with all
applicable federal, state, and local laws and regulations that
include criminal record summaries required of all nonpublic,
nonsectarian school or agency personnel having contact with minor
children under Section 44237.
(b) (1) The applicant shall provide the special education local
plan area in which the applicant is located with the written
notification of its intent to seek certification or renewal of its
certification. The applicant shall submit on a form, developed by the
department, a signed verification by local educational agency
representatives that they have been notified of the intent to certify
or renew certification. The verification shall include a statement
that representatives of the local educational agency for the area in
which the applicant is located have had the opportunity to review the
application at least 60 calendar days prior to submission of an
initial application to the Superintendent, or at least 30 calendar
days prior to submission of a renewal application to the
Superintendent. The signed verification shall provide assurances that
local educational agency representatives have had the opportunity to
provide input on all required components of the application.
(2) If the applicant has not received a response from the local
educational agency 60 calendar days from the date of the return
receipt for initial applications or 30 calendar days from the date of
the return receipt for renewal applications, the applicant may file
the application with the Superintendent. A copy of the return receipt
shall be included with the application as verification of
notification efforts to the local educational agency.
(3) The department shall mail renewal application materials to
certified nonpublic, nonsectarian schools and agencies at least 120
days before the date their current certification expires.
(c) If the applicant operates a facility or program on more than
one site, each site shall be certified.
(d) If the applicant is part of a larger program or facility on
the same site, the Superintendent shall consider the effect of the
total program on the applicant. A copy of the policies and standards
for the nonpublic, nonsectarian school or agency and the larger
program shall be available to the Superintendent.
(e) Before certification, the Superintendent shall conduct an
onsite review of the facility and program for which the applicant
seeks certification. The Superintendent may be assisted by
representatives of the special education local plan area in which the
applicant is located and a nonpublic, nonsectarian school or agency
representative who does not have a conflict of interest with the
applicant. The Superintendent shall conduct an additional onsite
review of the facility and program within three years of the
effective date of the certification, unless the Superintendent
conditionally certifies the school or agency or unless the
Superintendent receives a formal complaint against the school or
agency. In the latter two cases, the Superintendent shall conduct an
onsite review at least annually.
(f) The Superintendent shall make a determination on an
application within 120 days of receipt of the application and shall
certify, conditionally certify, or deny certification to the
applicant. If the Superintendent fails to take one of these actions
within 120 days, the applicant is automatically granted conditional
certification for a period terminating on August 31 of the current
school year. If certification is denied, the Superintendent shall
provide reasons for the denial. The Superintendent may certify the
school or agency for a period of not longer than one year.
(g) Certification becomes effective on the date the nonpublic,
nonsectarian school or agency meets all the application requirements
and is approved by the Superintendent. Certification may be
retroactive if the school or agency met all the requirements of this
section on the date the retroactive certification is effective.
Certification expires on December 31 of the terminating year.
(h) The Superintendent annually shall review the certification of
each nonpublic, nonsectarian school and agency. For this purpose, a
certified school or agency annually shall update its application
between August 1 and October 31, unless the board grants a waiver
pursuant to Section 56101. The Superintendent may conduct an onsite
review as part of the annual review.
(i) (1) The Superintendent shall conduct an investigation of a
nonpublic, nonsectarian school or agency onsite at any time without
prior notice if there is substantial reason to believe that there is
an immediate danger to the health, safety, or welfare of a child. The
Superintendent shall document the concern and submit it to the
nonpublic, nonsectarian school or agency at the time of the onsite
investigation. The Superintendent shall require a written response to
any noncompliance or deficiency found.
(2) With respect to a nonpublic, nonsectarian school, the
Superintendent shall conduct an investigation, which may include an
unannounced onsite visit, if the Superintendent receives evidence of
a significant deficiency in the quality of educational services
provided, a violation of Section 56366.9, or noncompliance with the
policies expressed by subdivision (b) of Section 1501 of the Health
and Safety Code by the nonpublic, nonsectarian school. The
Superintendent shall document the complaint and the results of the
investigation and shall provide copies of the documentation to the
complainant, the nonpublic, nonsectarian school, and the contracting
local educational agency.
(3) Violations or noncompliance documented pursuant to paragraph
(1) or (2) shall be reflected in the status of the certification of
the school, at the discretion of the Superintendent, pending an
approved plan of correction by the nonpublic, nonsectarian school.
The department shall retain for a period of 10 years all violations
pertaining to certification of the nonpublic, nonsectarian school or
agency.
(j) The Superintendent shall monitor the facilities, the
educational environment, and the quality of the educational program,
including the teaching staff, the credentials authorizing service,
the standards-based core curriculum being employed, and the
standard-focused instructional materials used, of an existing
certified nonpublic, nonsectarian school or agency on a three-year
cycle, as follows:
(1) The nonpublic, nonsectarian school or agency shall complete a
self-review in year one.
(2) The Superintendent shall conduct an onsite review of the
nonpublic, nonsectarian school or agency in year two.
(3) The Superintendent shall conduct a followup visit to the
nonpublic, nonsectarian school or agency in year three.
(k) (1) Notwithstanding any other law, the Superintendent shall
not certify a nonpublic, nonsectarian school or agency that proposes
to initiate or expand services to pupils currently educated in the
immediate prior fiscal year in a juvenile court program, community
school pursuant to Section 56150, or other nonspecial education
program, including independent study or adult school, or both, unless
the nonpublic, nonsectarian school or agency notifies the county
superintendent of schools and the special education local plan area
in which the proposed new or expanded nonpublic, nonsectarian school
or agency is located of its intent to seek certification.
(2) The notification shall occur no later than the December 1
before the new fiscal year in which the proposed or expanding school
or agency intends to initiate services. The notice shall include the
following:
(A) The specific date upon which the proposed nonpublic,
nonsectarian school or agency is to be established.
(B) The location of the proposed program or facility.
(C) The number of pupils proposed for services, the number of
pupils currently served in the juvenile court, community school, or
other nonspecial education program, the current school services
including special education and related services provided for these
pupils, and the specific program of special education and related
services to be provided under the proposed program.
(D) The reason for the proposed change in services.
(E) The number of staff who will provide special education and
designated instruction and services and hold a current valid
California credential or license in the service rendered.
(3) In addition to the requirements in subdivisions (a) to (f),
inclusive, the Superintendent shall require and consider the
following in determining whether to certify a nonpublic, nonsectarian
school or agency as described in this subdivision:
(A) A complete statement of the information required as part of
the notice under paragraph (1).
(B) Documentation of the steps taken in preparation for the
conversion to a nonpublic, nonsectarian school or agency, including
information related to changes in the population to be served and the
services to be provided pursuant to each pupil's individualized
education program.
(4) Notwithstanding any other law, the certification becomes
effective no earlier than July 1 if the school or agency provided the
notification required pursuant to paragraph (1).
( l ) (1) Notwithstanding any other law, the
Superintendent shall not certify or renew the certification of a
nonpublic, nonsectarian school or agency, unless all of the following
conditions are met:
(A) The entity operating the nonpublic, nonsectarian school or
agency maintains separate financial records for each entity that it
operates, with each nonpublic, nonsectarian school or agency
identified separately from any licensed children's institution that
it operates.
(B) The entity submits an annual budget that identifies the
projected costs and revenues for each entity and demonstrates that
the rates to be charged are reasonable to support the operation of
the entity.
(C) The entity submits an entitywide annual audit that identifies
its costs and revenues, by entity, in accordance with generally
accepted accounting and auditing principles. The audit shall clearly
document the amount of moneys received and expended on the education
program provided by the nonpublic, nonsectarian school.
(D) The relationship between various entities operated by the same
entity are documented, defining the responsibilities of the
entities. The documentation shall clearly identify the services to be
provided as part of each program, for example, the residential or
medical program, the mental health program, or the educational
program. The entity shall not seek funding from a public agency for a
service, either separately or as part of a package of services, if
the service is funded by another public agency, either separately or
as part of a package of services.
(2) For purposes of this section, "licensed children's institution"
has the same meaning as it is defined by Section 56155.5.
(m) The school or agency shall be charged a reasonable fee for
certification. The Superintendent may adjust the fee annually
commensurate with the statewide average percentage inflation
adjustment computed for local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03, of
unified school districts with greater than 1,500 units of average
daily attendance if the percentage increase is reflected in the
school district local control funding formula allocation pursuant to
Section 42238.02, as implemented by Section 42238.03, for inflation
purposes. For purposes of this section, the base fee shall be the
following:
(1) 1-5 pupils ........................... $ 300
(2) 6-10 pupils .......................... 500
(3) 11-24 pupils ......................... 1,000
(4) 25-75 pupils ......................... 1,500
(5) 76 pupils and over ................... 2,000
The school or agency shall pay this fee when it applies for
certification and when it updates its application for annual renewal
by the Superintendent. The Superintendent shall use these fees to
conduct onsite reviews, which may include field experts. No fee shall
be refunded if the application is withdrawn or is denied by the
Superintendent.
(n) (1) Notwithstanding any other law, only those nonpublic,
nonsectarian schools and agencies that provide special education and
designated instruction and services utilizing staff who hold a
certificate, permit, or other document equivalent to that which staff
in a public school are required to hold in the service rendered are
eligible to receive certification. Only those nonpublic, nonsectarian
schools or agencies located outside of California that employ staff
who hold a current valid credential or license to render special
education and related services as required by that state shall be
eligible to be certified.
(2) The board shall develop regulations to implement this
subdivision.
(o) In addition to meeting the standards adopted by the board, a
nonpublic, nonsectarian school or agency shall provide written
assurances that it meets all applicable standards relating to fire,
health, sanitation, and building safety.
SEC. 106. Section 56836.21 of the Education Code is amended to
read:
56836.21. (a) The department shall administer an extraordinary
cost pool to protect special education local plan areas from the
extraordinary costs associated with single placements as described in
subdivision (d). Funds shall be appropriated for this purpose in the
annual Budget Act. Special education local plan areas shall be
eligible for reimbursement from this pool in accordance with this
section.
(b) The threshold amount for claims under this section shall be
the lesser of the following:
(1) One percent of the allocation calculated pursuant to Section
56836.08 for the special education local plan area for the current
fiscal year for any special education local plan area that meets the
criteria in Section 56212.
(2) The department shall calculate the average cost of a
nonpublic, nonsectarian school placement in the 1997-98 fiscal year.
This amount shall be multiplied by 2.5, then by one plus the
inflation factor computed pursuant to Section 42238.1, as that
section read on January 1, 2013, to obtain the alternative threshold
amount for claims in the 1998-99 fiscal year. In subsequent fiscal
years, the alternative threshold amount shall be the alternative
threshold amount for the prior fiscal year multiplied by one plus the
inflation factor computed pursuant to Section 42238.1, as that
section read on January 1, 2013, through the 2012-13 fiscal year and,
commencing with the 2013-14 fiscal year, paragraph (2) of
subdivision (d) of Section 42238.02.
(c) Special education local plan areas are eligible to submit
claims for costs exceeding the threshold amount on forms developed by
the department. All claims for a fiscal year shall be submitted by
November 30 following the close of the fiscal year. If the total
amount claimed by special education local plan areas exceeds the
amount appropriated, the claims shall be prorated.
(d) Special education local plan areas are eligible to submit
claims for the costs of nonpublic, nonsectarian school placements in
excess of those in existence in the 1997-98 fiscal year and of
special education and related services for pupils who reside in
licensed children's institutions.
SEC. 107. Section 56836.24 of the Education Code is amended to
read:
56836.24. Commencing with the 1998-99 fiscal year and each year
thereafter, the Superintendent shall make the following computations
to determine the amount of funding for the purposes specified in
Section 56836.23 to apportion to each special education local plan
area for the fiscal year in which the computation is made:
(a) For the 1998-99 fiscal year the superintendent shall make the
following computations:
(1) Multiply the total amount of state General Fund money
allocated to the special education local plan areas in the 1997-98
fiscal year, for the purposes of Article 9 (commencing with Section
56780) of Chapter 7, as that chapter existed on December 31, 1998, by
one plus the inflation factor computed pursuant to subdivision (b)
of Section 42238.1, as that section read on January 1, 2013, for the
1998-99 fiscal year.
(2) Divide the amount calculated in paragraph (1) by the units of
average daily attendance, exclusive of average daily attendance for
absences excused pursuant to subdivision (b) of Section 46010 as that
subdivision read on July 1, 1997, reported for the special education
local plan area for the 1997-98 fiscal year.
(3) To determine the amount to be allocated to each special
education local plan area in the 1998-99 fiscal year, the
superintendent shall multiply the amount computed in paragraph (2) by
the number of units of average daily attendance reported for the
special education local plan area for the 1998-99 fiscal year, except
that a special education local plan area designated as a necessary
small special education local plan area in accordance with Section
56212 and reporting fewer than 15,000 units of average daily
attendance for the 1998-99 fiscal year shall be deemed to have 15,000
units of average daily attendance, and no special education local
plan area shall receive less than it received in the 1997-98 fiscal
year.
(b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent shall make the following calculations:
(1) Multiply the amount determined in paragraph (2) of subdivision
(a) by one plus the inflation factor computed pursuant to
subdivision (b) of Section 42238.1, as that section read on January
1, 2013, and commencing with the 2013-14 fiscal year, paragraph (2)
of subdivision (d) of Section 42238.02 for the current fiscal year.
(2) Multiply the amount determined in paragraph (1) by the number
of units of average daily attendance reported for the special
education local plan area for the current fiscal year, except that a
special education local plan area designated as a necessary small
special education local plan area in accordance with Section 56212
and reporting fewer than 15,000 units of average daily attendance for
the current fiscal year shall be deemed to have 15,000 units of
average daily attendance.
SEC. 108. Section 7906 of the Government Code is amended to read:
7906. For school districts:
(a) "ADA" means a school district's second principal apportionment
units of average daily attendance as determined pursuant to Section
42238.5 of the Education Code, including average daily attendance in
summer school, regional occupational centers and programs, and
apprenticeship programs, and excluding average daily attendance in
adult education programs. All other units
of average daily attendance including, but not
limited to, special day classes for special education pupils, shall
be included.
(1) For purposes of this subdivision, the average daily attendance
of apprenticeship programs shall be determined pursuant to Section
79149.1 of the Education Code.
(2) For the 2008-09 fiscal year and each fiscal year thereafter,
the average daily attendance of public school districts, including
county superintendents of schools, serving kindergarten and grades 1
to 12, inclusive, or any part thereof, shall include the same amount
of average daily attendance for classes for supplemental instruction
and regional occupational centers and programs that was used for
purposes of this section for the 2007-08 fiscal year.
(b) "Foundation program level" means:
(1) For the 1978-79 fiscal year, one thousand two hundred
forty-one dollars ($1,241) for elementary school districts, one
thousand three hundred twenty-two dollars ($1,322) for unified school
districts, and one thousand four hundred twenty-seven dollars
($1,427) for high school districts.
(2) For the 1979-80 fiscal year to the 1986-87 fiscal year,
inclusive, the levels specified in paragraph (1) increased by the
lesser of the change in cost of living or California per capita
personal income for the preceding calendar year.
(3) For the 1986-87 fiscal year, the levels specified in paragraph
(2) increased by one hundred eighty dollars ($180) for elementary
school districts, one hundred ninety-one dollars ($191) for unified
school districts, and two hundred seven dollars ($207) for high
school districts.
(4) For the 1987-88 fiscal year, the levels specified in paragraph
(3) increased by the lesser of the change in cost of living or
California per capita personal income for the preceding calendar
year.
(5) For the 1988-89 fiscal year and each fiscal year thereafter,
the foundation program level shall be the appropriations limit of the
school district for the current fiscal year, plus amounts paid for
any nonreimbursed court or federal mandates imposed on or after
November 6, 1979, less the sum of the following:
(A) Interest earned on the proceeds of taxes during the current
fiscal year.
(B) The 50 percent of miscellaneous funds received during the
current fiscal year that are from the proceeds of taxes.
(C) Locally voted taxes received during the current fiscal year,
such as parcel taxes or square foot taxes, unless for voter-approved
bonded debt.
(D) Any other local proceeds of taxes received during the current
fiscal year, other than local taxes which count towards the revenue
limit, such as excess bond revenues transferred to a district's
general fund pursuant to Section 15234 of the Education Code.
(c) "Proceeds of taxes" shall be deemed to include subventions
received from the state only if those subventions are for one of the
following two purposes:
(1) Basic aid subventions of one hundred twenty dollars ($120) per
ADA.
(2) Additional apportionments that, when added to the district's
local revenues as defined in Section 42238 of the Education Code, do
not exceed the foundation program level for that district. In no case
shall subventions received from the state for reimbursement of state
mandates in accordance with the provisions of Section 6 of Article
XIII B of the California Constitution or of Section 17561 or for
reimbursement of court or federal mandates imposed on or after
November 6, 1979, be considered "proceeds of taxes" for purposes of
this section.
(d) Proceeds of taxes for a fiscal year shall not include any
proceeds of taxes within the district's beginning balance or reserve,
unless those funds were not appropriated in a prior fiscal year.
Funds that were appropriated to a reserve or other fund referenced in
Section 5 of Article XIII B of the California Constitution shall be
deemed to be appropriated for the purpose of this paragraph.
(e) The remainder of the state apportionments, including special
purpose apportionments and categorical aid subventions shall not be
considered proceeds of taxes for a school district.
(f) Each school district shall report to the Superintendent of
Public Instruction and to the Director of Finance at least annually
its appropriations limit, its appropriations subject to limitation,
the amount of its state aid apportionments and subventions included
within the proceeds of taxes of the school district, and amounts
excluded from its appropriations limit, at a time and in a manner
prescribed by the Superintendent of Public Instruction and approved
by the Director of Finance.
(g) For the 1988-89 fiscal year and each fiscal year thereafter,
nothing in paragraph (2) of subdivision (c) shall be so construed as
to require that the amount determined pursuant to subdivision (b) be
multiplied by the amount determined pursuant to subdivision (a) for
purposes of determining the amount of state aid included in school
district "proceeds of taxes" for purposes of this section.
SEC. 109. Section 50286 of the Government Code is amended to read:
50286. (a) If a contract is canceled under Section 50284, the
owner shall pay a cancellation fee equal to 121/2 percent of the
current fair market value of the property, as determined by the
county assessor as though the property were free of the contractual
restriction.
(b) The cancellation fee shall be paid to the county auditor, at
the time and in the manner that the county auditor shall prescribe,
and shall be allocated by the county auditor to each jurisdiction in
the tax rate area in which the property is located in the same manner
as the auditor allocates the annual tax increment in that tax rate
area in that fiscal year.
(c) Notwithstanding any other law, revenue received by a school
district pursuant to this section shall be considered property tax
revenue for the purposes of Section 42238.02 of the Education Code,
as implemented pursuant to Section 42238.03 of the Education Code,
and revenue received by a county superintendent of schools pursuant
to this section shall be considered property tax revenue for purposes
of Article 4 (commencing with Section 2570) of Chapter 12 of Part 2
of Division 1 of Title 1 of the Education Code.
SEC. 110. Section 33492.78 of the Health and Safety Code is
amended to read:
33492.78. (a) Section 33607.5 shall not apply to an agency
created pursuant to this article. For purposes of Sections 42238.02,
84750.5, and 84751 of the Education Code, funds allocated pursuant to
this section shall be treated as if they were allocated pursuant to
Section 33607.5.
(1) This section shall apply to each redevelopment project area
created pursuant to a redevelopment plan that contains the provisions
required by Section 33670 and is created pursuant to this article.
All the amounts calculated pursuant to this section shall be
calculated after the amount required to be deposited in the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3,
and 33334.6, as modified by Section 33492.76, has been deducted from
the total amount of tax-increment funds received by the agency in the
applicable fiscal year.
(2) The payments made pursuant to this section shall be in
addition to any amounts the school district or districts and
community college district or districts receive pursuant to
subdivision (a) of Section 33670. The agency shall reduce its
payments pursuant to this section to an affected school or community
college district by any amount the agency has paid, directly or
indirectly, pursuant to Section 33445, 33445.5, or 33446, or any
provision of law other than this section for, or in connection with,
a public facility owned or leased by that affected school or
community college district.
(3) (A) Of the total amount paid each year pursuant to this
section to school districts, 43.9 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision (j)
of Section 42238.02 of the Education Code, and 56.1 percent shall not
be considered to be property taxes for the purposes of that section,
and shall be available to be used for educational facilities.
(B) Of the total amount paid each year pursuant to this section to
community college districts, 47.5 percent shall be considered to be
property taxes for the purposes of Section 84751 of the Education
Code, and 52.5 percent shall not be considered to be property taxes
for the purposes of that section, and shall be available to be used
for educational facilities.
(C) Of the total amount paid each year pursuant to this section to
county offices of education, 19 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision (c)
of Section 2575 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section, and
shall be available to be used for educational facilities.
(D) Of the total amount paid each year pursuant to this section to
special education, 19 percent shall be considered to be property
taxes for the purposes of paragraph (1) of subdivision (j) of Section
42238.02 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section, and
shall be available to be used for educational facilities.
(4) Local education agencies that use funds received pursuant to
this section for educational facilities shall spend these funds at
schools that are any one of the following:
(A) Within the project area.
(B) Attended by students from the project area.
(C) Attended by students generated by projects that are assisted
directly by the redevelopment agency.
(D) Determined by a local education agency to be of benefit to the
project area.
(b) Commencing with the first fiscal year in which the agency
receives tax increments, and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district an amount equal to the product of 25
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted.
(c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
created pursuant to this article shall pay to each affected school
and community college district, in addition to the amounts paid
pursuant to subdivision (b), an amount equal to the product of 21
percent times the percentage share of total property taxes collected
that are allocated to each affected school or community college
district, including any amount allocated to each district pursuant to
Sections 97.03 and 97.035 of the Revenue and Taxation Code times the
total of the first adjusted tax increments received by the agency
after the amount required to be deposited in the Low and Moderate
Income Housing Fund has been deducted. The first adjusted tax
increments received by the agency shall be calculated by applying the
tax rate against the amount of assessed value by which the current
year assessed value exceeds the first adjusted base year assessed
value. The first adjusted base year assessed value is the assessed
value of the project area in the 10th fiscal year in which the agency
receives tax increment.
(d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected school and community college districts, in
addition to the amounts paid pursuant to subdivisions (b) and (c), an
amount equal to 14 percent times the percentage share of total
property taxes collected that are allocated to each affected school
or community college district, including any amount allocated to each
district pursuant to Sections 97.03 and 97.035 of the Revenue and
Taxation Code times the total of the second adjusted tax increments
received by the agency after the amount required to be deposited in
the Low and Moderate Income Housing Fund has been deducted. The
second adjusted tax increments received by the agency shall be
calculated by applying the tax rate against the amount of assessed
value by which the current year assessed value exceeds the second
adjusted base year assessed value. The second adjusted base year
assessed value is the assessed value of the project area in the 30th
fiscal year in which the agency receives tax increments.
(e) (1) The Legislature finds and declares both of the following:
(A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
school and community college districts may incur as a result of the
adoption of a redevelopment plan, and payments made pursuant to this
section will benefit redevelopment project areas.
(B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected school and community college districts during the term of a
redevelopment plan.
(2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected school or community college
districts, or to pay for public facilities that will be owned or
leased to an affected school or community college district.
(f) As used in this section, a "local education agency" includes a
school district, a community college district, or a county office of
education.
SEC. 111. Section 33607.5 of the Health and Safety Code is amended
to read:
33607.5. (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan which contains
the provisions required by Section 33670, is either: (A) adopted on
or after January 1, 1994, including later amendments to these
redevelopment plans; or (B) adopted prior to January 1, 1994, but
amended, after January 1, 1994, to include new territory. For plans
amended after January 1, 1994, only the tax increments from territory
added by the amendment shall be subject to this section. All the
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received
by the agency in the applicable fiscal year.
(2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes each affected
taxing entity, including the community, receives during the fiscal
year the funds are allocated, which percentage share shall be
determined without regard to any amounts allocated to a city, a city
and county, or a county pursuant to Sections 97.68 and 97.70 of the
Revenue and Taxation Code, and without regard to any allocation
reductions to a city, a city and county, a county, a special
district, or a redevelopment agency pursuant to Sections 97.71,
97.72, and 97.73 of the Revenue and Taxation Code and Section
33681.12. The agency shall reduce its payments pursuant to this
section to an affected taxing entity by any amount the agency has
paid, directly or indirectly, pursuant to Section 33445, 33445.5,
33445.6, 33446, or any other provision of law other than this section
for, or in connection with, a public facility owned or leased by
that affected taxing agency, except: (A) any amounts the agency has
paid directly or indirectly pursuant to an agreement with a taxing
entity adopted prior to January 1, 1994; or (B) any amounts that are
unrelated to the specific project area or amendment governed by this
section. The reduction in a payment by an agency to a school
district, community college district, or county office of education,
or for special education, shall be subtracted only from the amount
that otherwise would be available for use by those entities for
educational facilities pursuant to paragraph (4). If the amount of
the reduction exceeds the amount that otherwise would have been
available for use for educational facilities in any one year, the
agency shall reduce its payment in more than one year.
(3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
(A) Determine the amount of the total payment that would have been
made without the reduction.
(B) Determine the amount of the total payment without the
reduction which: (i) would have been considered property taxes; and
(ii) would have been available to be used for educational facilities
pursuant to paragraph (4).
(C) Reduce the amount available to be used for educational
facilities.
(D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
(4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, as it read on January 1, 2013, and paragraph (1) of
subdivision (j) of Section 42238.02 of the Education Code, and 56.7
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, as it read on
January 1, 2013, and Section 2575 of the Education Code, and 81
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities, including, in
the case of amounts paid during the 2011-12 fiscal year through the
2015-16 fiscal year, inclusive, land acquisition, facility
construction, reconstruction, remodeling, maintenance, or deferred
maintenance.
(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
(5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
(b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph.
(c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of the portion of tax increments received by the agency,
which shall be calculated by applying the tax rate against the amount
of assessed value by which the current year assessed value exceeds
the first adjusted base year assessed value. The first adjusted base
year assessed value is the assessed value of the project area in the
10th fiscal year in which the agency receives tax increment revenues.
(d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivisions (b) and (c) and after deducting the amount
allocated to the Low and Moderate Income Housing Fund, an amount
equal to 14 percent of the portion of tax increments received by the
agency, which shall be calculated by applying the tax rate against
the amount of assessed value by which the current year assessed value
exceeds the second adjusted base year assessed value. The second
adjusted base year assessed value is the assessed value of the
project area in the 30th fiscal year in which the agency receives tax
increments.
(e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds, or other indebtedness the
amount required to be paid to an affected taxing entity by this
section, provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
(2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
(f) (1) The Legislature finds and declares both of the following:
(A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
(B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
(2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected taxing entities, or to pay for
public facilities that will be owned or leased to an affected taxing
entity.
(g) As used in this section, a "local education agency" is a
school district, a community college district, or a county office of
education.
SEC. 112. Section 33684 of the Health and Safety Code is amended
to read:
33684. (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan that contains the
provisions required by Section 33670, meets any of the following:
(A) Was adopted on or after January 1, 1994, including
later amendments to these redevelopment plans.
(B) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to include new territory. For plans amended after
January 1, 1994, only the tax increments from territory added by the
amendment shall be subject to this section.
(C) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to increase the limitation on the number of dollars
to be allocated to the agency or that increased, or eliminated,
pursuant to paragraph (1) of subdivision (e) of Section 33333.6, the
time limit on the establishing of loans, advances, and indebtedness
established pursuant to paragraphs (1) and (2) of subdivision (a) of
Section 33333.6, as those paragraphs read on December 31, 2001, or
that lengthened the period during which the redevelopment plan is
effective if the redevelopment plan being amended contains the
provisions required by subdivision (b) of Section 33670.
(2) This section shall apply to passthrough payments, as required
by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
inclusive, fiscal years. For purposes of this section, a passthrough
payment shall be considered the responsibility of an agency in the
fiscal year the agency receives the tax increment revenue for which
the passthrough payment is required.
(3) For purposes of this section, "local educational agency" is a
school district, a community college district, or a county office of
education.
(b) On or before October 1, 2008, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
(1) Gross tax increment received between July 1, 2003, and June
30, 2008, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7, and accumulated gross tax increments
through June 30, 2003.
(2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing agency under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
(3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2003, and June 30,
2008, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
(4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2003, and June 30, 2008, pursuant to
Sections 33607.5 and 33607.7.
(5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Section 33607.5
and Section 33607.7.
(6) Total outstanding payment obligations to each taxing entity as
of June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive difference.
(7) Total outstanding overpayments to each taxing entity as of
June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive difference.
(8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
(9) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
(c) On or before October 1, 2009, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
(1) Gross tax increment received between July 1, 2008, and June
30, 2009, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7.
(2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing entity under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
(3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2008, and June 30,
2009, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
(4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2008, and June 30, 2009, pursuant to
Sections 33607.5 and 33607.7.
(5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
(6) Total outstanding payment obligations to each taxing entity as
of June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive difference.
(7) Total outstanding overpayments to each taxing entity as of
June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive difference.
(8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
(d) If an agency reports pursuant to paragraph (6) of subdivision
(b) or paragraph (6) of subdivision (c) that it has an outstanding
passthrough payment obligation to any taxing entity, the agency shall
submit annual updates to the county auditor on October 1 of each
year until such time as the county auditor notifies the agency in
writing that the agency's outstanding payment obligations have been
fully satisfied. The report shall contain both of the following:
(1) A list of payments to each taxing agency and to the
Educational Revenue Augmentation Fund pursuant to subdivision (j)
that the agency disbursed after the agency's last update filed
pursuant to this subdivision or, if no update has been filed, after
the agency's submission of the reports required pursuant to
subdivisions (b) and (c). The list of payments shall include only
those payments that address obligations identified pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision
(c). The update shall specify the date on which each payment was
disbursed.
(2) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
(e) The county auditor shall review each agency's reports
submitted pursuant to subdivisions (b) and (c) and any other relevant
information to determine whether the county auditor concurs with the
information included in the reports.
(1) If the county auditor concurs with the information included in
a report, the county auditor shall issue a finding of concurrence
within 45 days.
(2) If the county auditor does not concur with the information
included in a report or considers the report to be incomplete, the
county auditor shall return the report to the agency within 45 days
with information identifying the elements of the report with which
the county auditor does not concur or considers to be incomplete. The
county auditor shall provide the agency at least 15 days to respond
to concerns raised by the county auditor regarding the information
contained in the report. An agency may revise a report that has not
received a finding of concurrence and resubmit it to the county
auditor.
(3) If an agency and county auditor do not agree regarding the
passthrough requirements of Sections 33607.5 and 33607.7, an agency
may submit a report pursuant to subdivisions (b) and (c) and a
statement of dispute identifying the issue needing resolution.
(4) An agency may amend a report for which the county auditor has
issued a finding of concurrence and resubmit the report pursuant to
paragraphs (1), (2), and (3) if any of the following apply:
(A) The county auditor and agency agree that an issue identified
in the agency's statement of dispute has been resolved and the agency
proposes to modify the sections of the report to conform with the
resolution of the statement of dispute.
(B) The county auditor and agency agree that the amount of gross
tax increment or the amount of a passthrough payment to a taxing
entity included in the report is not accurate.
(5) The Controller may revoke a finding of concurrence and direct
the agency to resubmit a report to the county auditor pursuant to
paragraphs (1), (2), and (3) if the Controller finds significant
errors in a report.
(f) On or before December 15, 2008, and annually thereafter
through 2014, the county auditor shall submit a report to the
Controller that includes all of the following:
(1) The name of each redevelopment project area in the county for
which an agency must submit a report pursuant to subdivision (b) or
(c) and information as to whether the county auditor has issued a
finding of concurrence regarding the report.
(2) A list of the agencies for which the county auditor has issued
a finding of concurrence for all project areas identified in
paragraph (1).
(3) A list of agencies for which the county auditor has not issued
a finding of concurrence for all project areas identified in
paragraph (1).
(4) Using information applicable to agencies listed in paragraph
(2), the county auditor shall report all of the following:
(A) The total sums reported by each redevelopment agency related
to each taxing entity pursuant to paragraphs (1) to (7), inclusive,
of subdivision (b) and, on or after December 15, 2009, pursuant to
paragraphs (1) to (7), inclusive, of subdivision (c).
(B) The names of agencies that have outstanding passthrough
payment obligations to a local educational agency that exceed the
amount of outstanding passthrough payments to the local educational
agency.
(C) Summary information regarding agencies' stated plans to pay
the outstanding amounts identified in paragraph (6) of subdivision
(b) and paragraph (6) of subdivision (c) and the actual amounts that
have been deposited into the county Educational Revenue Augmentation
Fund pursuant to subdivision (j).
(D) All unresolved statements of dispute filed by agencies
pursuant to paragraph (3) of subdivision (e) and the county auditor's
analyses supporting the county auditor's conclusions regarding the
issues under dispute.
(g) (1) On or before February 1, 2009, and annually thereafter
through 2015, the Controller shall submit a report to the Legislative
Analyst's Office and the Department of Finance and provide a copy to
the Board of Governors of the California Community Colleges. The
report shall provide information as follows:
(A) Identify agencies for which the county auditor has issued a
finding of concurrence for all reports required under subdivisions
(b) and (c).
(B) Identify agencies for which the county auditor has not issued
a finding of concurrence for all reports required pursuant to
subdivision (b) and all reports required pursuant to subdivision (c)
or for which a finding of concurrence has been withdrawn by the
Controller.
(C) Summarize the information reported in paragraph (4) of
subdivision (f). This summary shall identify, by local educational
agency and by year, the total amount of passthrough payments that
each local educational agency received, was entitled to receive,
subordinated, or that has not yet been paid, and the portion of these
amounts that are considered to be property taxes for purposes of
Sections 2558 and 42238 of the Education Code, as those sections read
on January 1, 2013, and, after June 30, 2013, Sections 2575 and
42238.02, and Section 84751 of the Education Code. The report shall
identify, by agency, the amounts that have been deposited to the
county Educational Revenue Augmentation Fund pursuant to subdivision
(j).
(D) Summarize the statements of dispute. The Controller shall
specify the status of these disputes, including whether the
Controller or other state entity has provided instructions as to how
these disputes should be resolved.
(E) Identify agencies that have outstanding passthrough payment
liabilities to a local educational agency that exceed the amount of
outstanding passthrough overpayments to the local educational agency.
(2) On or before February 1, 2009, and annually thereafter through
2015, the Controller shall submit a report to the State Department
of Education and the Board of Governors of the California Community
Colleges. The report shall identify, by local educational agency and
by year of receipt, the total amount of passthrough payments that the
local educational agency received from redevelopment agencies listed
in subparagraph (A) of paragraph (1).
(h) (1) On or before April 1, 2009, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
(A) Calculate for each school district for the 2003-04 to 2007-08,
inclusive, fiscal years the difference between 43.3 percent of the
amount reported pursuant to paragraph (2) of subdivision (g) and the
amount subtracted from each school district's apportionment pursuant
to paragraph (6) of subdivision (h) of Section 42238 of the Education
Code, as it read on January 1, 2013.
(B) Calculate for each county superintendent of schools for the
2003-04 to 2007-08, inclusive, fiscal years the difference between 19
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount received pursuant to Sections 33607.5
and 33607.7 and subtracted from each county superintendent of schools
apportionment pursuant to subdivision (c) of Section 2558 of the
Education Code, as it read on January 1, 2013.
(C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
apportionments. After April 1, 2009, however, the department shall
not notify a school district or county superintendent of schools if
the amount calculated in subparagraph (A) or (B) is the same amount
as the department calculated in the preceding year.
(2) On or before April 1, 2010, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
(A) Calculate for each school district for the 2008-09 fiscal year
the difference between 43.3 percent of the amount reported pursuant
to paragraph (2) of subdivision (g) and the amount subtracted from
each school district's apportionment pursuant to paragraph (6) of
subdivision (h) of Section 42238 of the Education Code, as it read on
January 1, 2013.
(B) Calculate for each county superintendent of schools for the
2008-09 fiscal year the difference between 19 percent of the amount
reported pursuant to paragraph (2) of subdivision (g) and the amount
received pursuant to Sections 33607.5 and 33607.7 and subtracted from
each county superintendent of schools apportionment pursuant to
subdivision (c) of Section 2558 of the Education Code, as it read on
January 1, 2013.
(C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
revenue limit apportionments. After April 1, 2010, however, the
department shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) or (B) is the same amount as the department calculated in the
preceding year.
(3) For the purposes of Article 3 (commencing with Section 41330)
of Chapter 3 of Part 24 of Division 3 of Title 2 of the Education
Code, the amounts reported to each school district and county
superintendent of schools in the notification required pursuant to
subparagraph (C) of paragraph (1) and subparagraph (C) of paragraph
(2) shall be deemed to be apportionment significant audit exceptions
and the date of receipt of that notification shall be deemed to be
the date of receipt of the final audit report that includes those
audit exceptions.
(4) On or before March 1, 2009, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
(A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
(B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on apportionments. After March 1, 2009,
however, the board shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) is the same amount as the board calculated in the preceding year.
(5) On or before March 1, 2010, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
(A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
(B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on revenue apportionments. After March 1,
2010, however, the board shall not notify a community college
district if the amount calculated in subparagraph (A) is the same
amount as the board calculated in the preceding year.
(6) A community college district may submit documentation to the
Board of Governors of the California Community Colleges showing that
all or part of the amount reported to the district pursuant to
subparagraph (B) of paragraph (4) and subparagraph (B) of paragraph
(5) was previously reported to the California Community Colleges for
the purpose of the revenue level calculations made pursuant to
Section 84751 of the Education Code. Upon acceptance of the
documentation, the board shall adjust the amounts calculated in
paragraphs (4) and (5) accordingly.
(7) The Board of Governors of the California Community Colleges
shall make corrections in any amounts allocated in any fiscal year to
each community college district for which any amount calculated in
paragraphs (4) and (5) is nonzero so as to account for the changes
reported pursuant to paragraph (4) of subdivision (b) and paragraph
(4) of subdivision (c). The board may make the corrections over a
period of time, not to exceed five years.
(i) (1) After February 1, 2009, for an agency listed on the most
recent Controller's report pursuant to subparagraph (B) or (E) of
paragraph (1) of subdivision (g), all of the following shall apply:
(A) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
(B) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640).
(C) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
(i) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in subparagraph (B) whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460).
(ii) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
(iii) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
(iv) Obligations incurred pursuant to Section 33445.
(v) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
(vi) Obligations incurred pursuant to Section 33401.
(vii) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency was first listed on the
Controller's report pursuant to subparagraph (B) or (E) of paragraph
(1) of subdivision (g).
(2) After February 1, 2009, an agency identified in subparagraph
(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
charges on any passthrough payment that is made to a local
educational agency more than 60 days after the close of the fiscal
year in which the passthrough payment was required. Interest shall be
charged at a rate equal to 150 percent of the current Pooled Money
Investment Account earnings annual yield rate and shall be charged
for the period beginning 60 days after the close of the fiscal year
in which the passthrough payment was due through the date that the
payment is made.
(3) The Controller, with the concurrence of the Director of
Finance, may waive the provisions of paragraphs (1) and (2) for a
period of up to 12 months if the Controller determines all of the
following:
(A) The county auditor has identified the agency in its most
recent report issued pursuant to paragraph (2) of subdivision (f) as
an agency for which the auditor has issued a finding of concurrence
for all reports required pursuant to subdivisions (b) and (c).
(B) The agency has filed a statement of dispute on an issue or
issues that, in the opinion of the Controller, are likely to be
resolved in a manner consistent with the agency's position.
(C) The agency has made passthrough payments to local educational
agencies and the county Educational Revenue Augmentation Fund, or has
had funds previously withheld by the auditor, in amounts that would
satisfy the agency's passthrough payment requirements to local
educational agencies if the issue or issues addressed in the
statement of dispute were resolved in a manner consistent with the
agency's position.
(D) The agency would sustain a fiscal hardship if it made
passthrough payments to local educational agencies and the county
Educational Revenue Augmentation Fund in the amounts estimated by the
county auditor.
(j) Notwithstanding any other provision of law, if an agency
report submitted pursuant to subdivision (b) or (c) indicates
outstanding payment obligations to a local educational agency, the
agency shall make these outstanding payments as follows:
(1) Of the outstanding payments owed to school districts,
including any interest payments pursuant to paragraph (2) of
subdivision (i), 43.3 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the school district or districts.
(2) Of the outstanding payments owed to community college
districts, including any interest payments pursuant to paragraph (2)
of subdivision (i), 47.5 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the community college district or districts.
(3) Of the outstanding payments owed to county offices of
education, including any interest payments pursuant to paragraph (2)
of subdivision (i), 19 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the county office of education.
(k) (1) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
(2) Notwithstanding any other provision of law, no funds deposited
in the county Educational Revenue Augmentation Fund pursuant to
subdivision (j) shall be distributed to a community college district.
(l) A county may require an agency to reimburse the county for any
expenses incurred by the county in performing the services required
by this section.
SEC. 113. Section 95 of the Revenue and Taxation Code is amended
to read:
95. For purposes of this chapter:
(a) "Local agency" means a city, county, and special district.
(b) "Jurisdiction" means a local agency, school district,
community college district, or county superintendent of schools. A
jurisdiction as defined in this subdivision is a "district" for
purposes of Section 1 of Article XIII A of the California
Constitution.
For jurisdictions located in more than one county, the county
auditor of each county in which that jurisdiction is located shall,
for the purposes of computing the amount for that jurisdiction
pursuant to this chapter, treat the portion of the jurisdiction
located within that county as a separate jurisdiction.
(c) "Property tax revenue" includes the amount of state
reimbursement for the homeowners' exemption. "Property tax revenue"
does not include the amount of property tax levied for the purpose of
making payments for the interest and principal on either of the
following:
(1) General obligation bonds or other indebtedness approved by the
voters prior to July 1, 1978, including tax rates levied pursuant to
Part 10 (commencing with Section 15000) of Division 1 of, and
Sections 39308 and 39311 and former Sections 81338 and 81341 of the
Education Code, and Section 26912.7 of the Government Code.
(2) Bonded indebtedness
for the acquisition or improvement of real property approved by
two-thirds of the voters on or after June 4, 1986.
(d) "Taxable assessed value" means total assessed value minus all
exemptions other than the homeowners' and business inventory
exemptions.
(e) "Jurisdictional change" includes any change of organization,
as defined in Section 56021 of the Government Code and a
reorganization, as defined in Section 56073 of the Government Code.
"Jurisdictional change" also includes any change in the boundary of
those special districts that are not under the jurisdiction of a
local agency formation commission.
"Jurisdictional change" also includes a functional consolidation
where two or more local agencies, except two or more counties,
exchange or otherwise reassign functions and any change in the
boundaries of a school district or community college district or
county superintendent of schools.
(f) "School entities" means school districts, community college
districts, the Educational Revenue Augmentation Fund, and county
superintendents of schools.
(g) Except as otherwise provided in this subdivision, "tax rate
area" means a specific geographic area all of which is within the
jurisdiction of the same combination of local agencies and school
entities for the current fiscal year.
In the case of a jurisdictional change pursuant to Section 99, the
area subject to the change shall constitute a new tax rate area,
except that if the area subject to change is within the same
combinations of local agencies and school entities as an existing tax
rate area, the two tax rate areas may be combined into one tax rate
area.
Existing tax rate areas having the same combinations of local
agencies and school entities may be combined into one tax rate area.
For the combination of existing tax rate areas, the factors used to
allocate the annual tax increment pursuant to Section 98 shall be
determined by calculating a weighted average of the annual tax
increment factors used in the tax rate areas being combined.
(h) "State assistance payments" means:
(1) For counties, amounts determined pursuant to subdivision (b)
of Section 16260 of the Government Code, increased by the amount
specified for each county pursuant to Section 94 of Chapter 282 of
the Statutes of 1979, with the resultant sum reduced by an amount
derived by the calculation made pursuant to Section 16713 of the
Welfare and Institutions Code.
(2) For cities, 82.91 percent of the amounts determined pursuant
to subdivisions (b) and (i) of Section 16250 of the Government Code,
plus for any city an additional amount equal to one-half of the
amount of any outstanding debt as of June 30, 1978, for "museums" as
shown in the Controller's "Annual Report of Financial Transactions of
Cities for Fiscal Year 1977-78."
(3) For special districts, 95.24 percent of the amounts received
pursuant to Chapter 3 (commencing with Section 16270) of Part 1.5 of
Division 4 of Title 2 of the Government Code, Section 35.5 of Chapter
332 of the Statutes of 1978, and Chapter 12 of the Statutes of 1979.
(i) "City clerk" means the clerk of the governing body of a city
or city and county.
(j) "Executive officer" means the executive officer of a local
agency formation commission.
(k) "City" means any city whether general law or charter, except a
city and county.
(l) "County" means any chartered or general law county. "County"
includes a city and county.
(m) "Special district" means any agency of the state for the local
performance of governmental or proprietary functions within limited
boundaries. "Special district" includes a county service area, a
maintenance district or area, an improvement district or improvement
zone, or any other zone or area, formed for the purpose of
designating an area within which a property tax rate will be levied
to pay for a service or improvement benefiting that area. "Special
district" includes the Bay Area Air Quality Management District.
"Special district" does not include a city, a county, a school
district, or a community college district. "Special district" does
not include any agency that is not authorized by statute to levy a
property tax rate. However, any special district authorized to levy a
property tax by the statute under which the district was formed
shall be considered a special district. Additionally, a county free
library established pursuant to Article 1 (commencing with Section
19100) of Chapter 6 of Part 11 of Division 1 of Title 1 of the
Education Code, and for which a property tax was levied in the
1977-78 fiscal year, shall be considered a special district.
(n) "Excess tax school entity" means an educational agency for
which the amount of the state funding entitlement determined under
subdivision (e), (f), or (g) of Section 2575, or Section 84750.5 or
84751 of the Education Code, as appropriate, is zero, and as
described in subdivision (o) of Section 42238.02 of the Education
Code, as implemented by Section 42238.03 of the Education Code.
SEC. 114. Section 196.4 of the Revenue and Taxation Code is
amended to read:
196.4. (a) In the 1991-92 fiscal year, the county auditor of an
eligible county, proclaimed by the Governor to be in a state of
disaster as a result of the Oakland/Berkeley Fire that occurred in
October 1991, shall certify to the Director of Finance an estimate of
the total amount of the reduction in property tax revenues on both
the regular secured roll and the supplemental roll for that fiscal
year resulting from the reassessment of eligible properties by the
county assessor pursuant to Section 170, except that the amount
certified shall not include any estimated property tax revenue
reductions to school districts (other than basic state aid school
districts), county offices of education, and community college
districts.
(b) In the 1991-92 fiscal year, the county auditor of an eligible
county, proclaimed by the Governor to be in a state of disaster as a
result of the Painted Cave Fire that occurred in June 1990, shall
certify to the Director of Finance an estimate of the total amount of
the reduction in property tax revenues on both the regular secured
roll and the supplemental roll for the 1990-91 fiscal year resulting
from the reassessment of eligible properties by the county assessor
pursuant to Section 170, except that the amount certified shall not
include any estimated property tax revenue reductions to school
districts (other than basic aid school districts), county offices of
education, and community college districts.
(c) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, as it read on January 1, 2013, but receives from the
state only a basic apportionment pursuant to Section 6 of Article IX
of the California Constitution.
SEC. 115. (a) The sum of two billion ninety-nine million one
hundred sixty-one thousand dollars ($2,099,161,000) is hereby
appropriated from the General Fund for the purposes of this act as
follows:
(1) Two million dollars ($2,000,000) shall be appropriated to the
Governor's Office of Planning and Research for purposes of
implementing Sections 42238.07, 52064, and 52064.5 of the Education
Code.
(2) Two billion sixty-seven million one hundred forty thousand
dollars ($2,067,140,000) shall be appropriated to the Superintendent
of Public Instruction and shall be allocated pursuant to the
calculation in subdivision (b) of Section 42238.03 of the Education
Code.
(3) Thirty-two million twenty-one thousand dollars ($32,021,000)
shall be appropriated to the Superintendent of Public Instruction and
shall be allocated pursuant to the calculation in subdivision (f) of
Section 2575 of the Education Code.
(b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation made
by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2013-14 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 2013-14 fiscal
year.
SEC. 116. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 117. 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.
