BILL NUMBER: AB 104	CHAPTERED
	BILL TEXT

	CHAPTER  13
	FILED WITH SECRETARY OF STATE  JUNE 24, 2015
	APPROVED BY GOVERNOR  JUNE 24, 2015
	PASSED THE SENATE  JUNE 19, 2015
	PASSED THE ASSEMBLY  JUNE 19, 2015
	AMENDED IN SENATE  JUNE 16, 2015

INTRODUCED BY   Committee on Budget (Weber (Chair), Bloom, Bonta,
Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin,
Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams)

                        JANUARY 9, 2015

   An act to amend Sections 2574, 2575, 8238, 8239, 8263.1, 8265,
8265.5, 8335, 8335.1, 8335.2, 8335.4, 8357, 8447, 10554, 17070.75,
41202, 41203.1, 41207.3, 41976, 42238, 42238.02, 42238.03, 44235,
47614.5, 48000, 49430.5, 51745.6, 52052, 52064.5, 52501.5, 52616,
53011, and 84830 of, to add Sections 41207.41, 60212, and 84920 to,
to add Chapter 16.5 (commencing with Section 53070) to Part 28 of
Division 4 of Title 2 of, to add Article 9 (commencing with Section
84900) to Chapter 5 of Part 50 of Division 7 of Title 3 of, and to
repeal Sections 8335.5, 8335.7, and 84908 of, the Education Code, to
amend Sections 17581.6 and 17581.8 of, and to add Section 17581.9 to,
the Government Code, to amend Sections 33607.5 and 33607.7 of the
Health and Safety Code, and to amend Section 11 of Chapter 325 of the
Statutes of 2012, relating to education finance, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 104, Committee on Budget. Education finance: education omnibus
trailer bill.
   (1) Existing law provides supplemental funding to qualifying
California state preschool classrooms, and requires a part-day
preschool program to provide parenting education and to provide staff
development for teachers in participating classrooms as a condition
of receiving funds.
   This bill would include within the meaning of parenting education
for these purposes improving parental knowledge of local resources
for the identification of and services for developmental
disabilities, and would include as part of staff development the
development of improved behavioral strategies and the provision of
interventions for young children to improve kindergarten readiness.
   (2) Existing law provides for income eligibility standards for
families to receive child care and development services. Existing law
provides that "income eligible," for purposes of the Child Care and
Development Services Act, means that a family's adjusted monthly
income is at or below 70% of the state median income, adjusted for
family size, and adjusted annually. Notwithstanding this provision,
existing law sets the income eligibility limits for the 2014-15
fiscal year at 70% of the state median income that was in use for the
2007-08 fiscal year, adjusted for family size.
   This bill would set the income eligibility limits for the 2015-16
fiscal year at 70% of the state median income that was in use for the
2007-08 fiscal year, adjusted for family size.
   (3) Existing law requires the Superintendent of Public Instruction
to implement a plan that establishes reasonable child care standards
and assigned reimbursement rates, and sets the standard
reimbursement rate at $9,024.75 per unit of average daily enrollment
for a 250-day year. Commencing with the 2015-16 fiscal year, existing
law requires that rate to be increased by the cost-of-living
adjustment granted by the Legislature annually.
   This bill would set the standard reimbursement rate at $9,572.50,
and the full-day state preschool reimbursement rate at $9,632.50, per
unit of average daily enrollment for a 250-day year and, commencing
with the 2016-17 fiscal year, would require that rate to be increased
by the cost-of-living adjustment granted by the Legislature
annually.
   (4) Existing law applies various adjustment factors to specified
programs, including programs for infants and toddlers, for which
reimbursement rates are at or below the standard reimbursement rate,
as provided.
   This bill would provide that these adjustment factors shall apply
to those full-day state preschool programs for which assigned
reimbursement rates are above the full-day state preschool
reimbursement rate.
   (5) Existing law, the Child Care and Development Services Act,
administered by the State Department of Education, requires the
Superintendent of Public Instruction to administer child care and
development programs that offer a full range of services for eligible
children from infancy to 13 years of age. Existing law authorizes
the City and County of San Francisco, until July 1, 2016, and as a
pilot project, to develop and implement an individualized county
child care subsidy plan, requires the city and county, on or before
December 31, 2014, to submit a final report to the Legislature and
other specified entities that summarizes the impact of the plan,
requires the city and county to phase out the plan and implement the
state's requirements for child care subsidies as of July 1, 2018, and
provides for the repeal of those provisions on January 1, 2019.
   This bill would authorize the City and County of San Francisco to
implement the individualized county child care subsidy plan
indefinitely and would make conforming changes. The bill would make
legislative findings and declarations regarding the need for special
legislation for the City and County of San Francisco.
   (6) Existing law provides that the cost of child care services
provided for CalWORKs recipients is governed by regional market
rates, and establishes regional market rate ceilings for each region
at the greater of either the 85th percentile of the 2009 regional
market rate survey for that region, reduced by 10.11%, or the 85th
percentile of the 2005 regional market rate survey for that region.
   This bill would, commencing October 1, 2015, increase the regional
market rate ceilings established for each region by 4.5%. The bill
would provide that, effective October 1, 2015, reimbursement to
license-exempt child care providers shall not exceed 65% of the
established regional market rate. The bill would require, commencing
October 1, 2015, the regional market rate ceilings for all counties
to be increased by 4.5%.
   (7) Existing law establishes the Educational Telecommunication
Fund, moneys in which are available for expenditure upon
appropriation for specified purposes relating to establishing
telecommunication standards for state, county, and local educational
agencies. Existing law provides for the deposit in the fund of the
amount of any offset made to certain apportionments upon a specified
finding, and limits the maximum amount that may be annually deposited
in the fund from the offset to $15,000,000.
   This bill would repeal the provisions relating to the deposit of
moneys into the fund.
   (8) Existing law, the Leroy F. Greene School Facilities Act of
1998, requires the State Allocation Board to allocate to applicant
school districts prescribed per-unhoused-pupil state funding for
construction and modernization of school facilities, including
hardship funding, and supplemental funding for site development and
acquisition. The act requires the board to require applicant school
districts that receive funding under the act to establish a
restricted account within the general fund of the school district for
the exclusive purpose of providing moneys for ongoing and major
maintenance of school buildings, and to agree to deposit into that
account in each fiscal year for 20 years after receipt of funds under
the act a minimum amount equal to or greater than 3% of the total
general fund expenditures of the applicant school district for that
fiscal year.
   This bill would require the board to require applicant school
districts to instead deposit into the account, for the 2015-16 and
2016-17 fiscal years, a minimum amount that is the lesser of 3% of
the total general fund expenditures for that fiscal year or the
amount that the school district deposited into the account in the
2014-15 fiscal year. For the 2017-18 to 2019-20 fiscal years,
inclusive, the bill would require the board to require applicant
school districts to instead deposit into the account a minimum amount
that is the greater of (1) the lesser of 3% of the total general
fund expenditures for that fiscal year or the amount that the school
district deposited into the account in the 2014-15 fiscal year or (2)
2% of the total general fund expenditures of the applicant school
district for that fiscal year. The bill would make the existing
minimum deposit requirement applicable to school districts that
received an amount equal to or greater than 10% of state school
facilities funds in specified prior years only under certain
circumstances. The bill would specify that funds in the account may
be used for drought mitigation purposes related to the implementation
of a certain executive order of the Governor. The bill would also
delete obsolete provisions.
   (9) Section 8 of Article XVI of the California Constitution sets
forth a formula for computing the minimum amount of revenues that the
state is required to appropriate for the support of school districts
and community college districts for each fiscal year. Existing law
provides that "General Fund revenues appropriated for school
districts and community college districts, respectively" and "moneys
to be applied by the state for the support of school districts and
community college districts," for purposes of that computation,
include funds appropriated for part-day California state preschool
programs and the After School Education and Safety Program.
   This bill would provide that those funds appropriated to local
educational agencies to create a full day of care for children
participating in the California state preschool program are also
"General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts" for purposes of that computation.
   (10) Existing law requires, for the 1990-91 fiscal year and each
fiscal year thereafter, that moneys to be applied by the state for
the support of school districts, community college districts, and
direct elementary and secondary level instructional services provided
by the state be distributed in accordance with certain calculations
governing the proration of those moneys among the 3 segments of
public education. Existing law makes that provision inapplicable to
the 1992-93 to 2014-15 fiscal years, inclusive.
   This bill would also make that provision inapplicable to the
2015-16 fiscal year.
   (11) Existing law declares the minimum state education funding
obligation for school districts and community college districts for
the 2006-07 fiscal year is $55,251,266,000, with an outstanding
balance of $211,533,000. Existing law, commencing with the 2015-16
fiscal year, requires the Legislature to appropriate the outstanding
balance, as specified.
   This bill would appropriate $256,000,000 from the General Fund to
the Controller for allocation to school districts and community
college districts for the purpose of offsetting the entire 2006-07
outstanding balance referenced above, and offsetting the 2009-10
outstanding balance of the minimum funding obligation to school
districts and community college districts, as specified.
   (12) Existing law authorizes the governing board of a school
district maintaining secondary schools to establish and maintain
classes for adults, as specified. Existing law authorizes specified
classes and courses to be offered by school districts and county
superintendents of schools for apportionment purposes from the adult
education fund, including, among other subject matters, classes and
courses for adult education programs for apprentices.
   This bill would instead authorize for purposes of apportionments
from the adult education fund programs offering pre-apprenticeship
training activities conducted in coordination with one or more
apprenticeship programs approved by the Division of Apprenticeship
Standards for the occupation and geographic area.
   (13) Existing law requires funding pursuant to the local control
funding formula to include, in addition to a base grant, supplemental
and concentration grant add-ons that are based on the total
percentage of English language learners, pupils eligible for free or
reduced-price meals, and foster youth served by county
superintendents of schools, school districts, and charter schools.
Existing law requires the Superintendent of Public Instruction to
subtract certain amounts, including amounts from certain
redevelopment revenues that are paid to these local educational
agencies, from their base grants.
   Existing law provides, in calculating each community college
district's revenue level for each fiscal year, that the Board of
Governors of the California Community Colleges shall subtract, from
the total revenues otherwise owed to the community college districts,
certain amounts, including certain redevelopment-related revenues
that are allocated to community college districts and, for purposes
of community college district revenue levels, that are considered
property tax revenues.
   This bill would revise the provisions of the local control funding
formula for county offices of education, school districts, and
charter schools, and the provisions for a community college district'
s revenue levels, that address the treatment of these redevelopment
funds, as specified, including authorizing the expenditure of a
portion of those funds for land acquisition, facility construction,
reconstruction, remodeling, maintenance, or deferred maintenance.
   (14) Existing law establishes a public school financing system
that requires state funding for county superintendents of schools,
school districts, and charter schools to be calculated pursuant to a
local control funding formula, and requires funds received for
specified pupil transportation programs to be included as part of the
formula.
   This bill would revise specified calculations for home-to-school
transportation joint powers agencies that received certain
apportionments in the 2012-13 fiscal year by authorizing the joint
powers agencies to identify and transfer the entitlement to that
funding, commencing with the 2015-16 fiscal year, to member local
educational agencies, and would require the Superintendent of Public
Instruction to add those amounts to the member local educational
agencies' local control funding formula allocations, as specified.
   (15) This bill would require the Superintendent of Public
Instruction to reduce any home-to-school transportation funding of
the county local control funding formula allocated to the Los Angeles
County Superintendent of Schools by $2,785,448, and would require
the Superintendent of Public Instruction to increase the
home-to-school transportation funding of the school district local
control funding formula for specified school districts in specified
amounts.
   (16) Existing law provides for the levying of fees by the
Commission on Teacher Credentialing for the issuance and renewal of
teaching and service credentials, not to exceed $70.
   This bill would increase the maximum amount of the fee from $70 to
$100.
   (17) Existing law requires the California School Finance Authority
to administer the Charter School Facility Grant Program, and
provides that the grant program is intended to provide assistance
with facilities rent and lease costs for pupils in charter schools.
Existing law provides that a charter schoolsite is eligible for
funding under this provision if the charter schoolsite is located in
the attendance area of a public elementary school in which 70% or
more of the pupil enrollment is eligible for free or reduced-price
meals, or if 70% of the pupil enrollment at the charter schoolsite is
eligible for free or reduced-price meals, as measured using prior
year data. Existing law further specifies that the grant program is
to be expanded by reducing the 70% threshold if funds remain after
eligible charter schools meeting the 70% requirement are funded.
   This bill would reduce the eligibility threshold to participate in
the grant program from 70% to 55%. The bill would provide that a new
charter school that was not operational in the prior year shall be
eligible in the current year if it meets the free or reduced-price
meal eligibility requirements based on current year data. The bill
would delete the provisions providing for the expansion of the
program specified above.
   (18) Existing law authorizes a school district or charter school
to maintain a transitional kindergarten program, and, as a condition
of receipt of apportionments for pupils in a transitional
kindergarten program, requires the school district or charter school
to comply with specified minimum age requirements for pupils
participating in the transitional kindergarten program, including,
for the 2014-15 school year and each school year thereafter, that the
school district or charter school admit a child who will have his or
her 5th birthday between September 2 and December 2. Existing law
also specifies that a transitional kindergarten program shall not be
construed as a new program or higher level of service.
   Existing law requires funding pursuant to the local control
funding formula to include, in addition to a base grant, supplemental
and concentration grant add-ons that are based on the percentage of
certain categories of pupils, known as unduplicated pupils, served by
the county superintendent of schools, school district, or charter
school. Existing law includes among unduplicated pupils, a pupil who
is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth, as defined, and requires
county superintendents of schools, school districts, and charter
schools to submit and report data relating to these pupils.
   This bill would, for the 2015-16 school year and each school year
thereafter, authorize a school district or charter school, at any
time during the school year, to admit a child to a transitional
kindergarten program who will have his or her 5th birthday after
December 2 but during that same school year if certain conditions are
met. The bill would prohibit a pupil admitted to a transitional
kindergarten program pursuant to that provision from generating
average daily attendance, or being included in the enrollment or
unduplicated pupil count pursuant to the local control funding
formula, until the pupil has attained his or her 5th birthday.
   (19) Existing law sets the reimbursement a school receives for
free and reduced-price meals sold or served to pupils in elementary,
middle, or high schools at $0.2248 per meal, and for meals served in
child care centers and homes, at $0.1674 per meal.
   This bill would increase the reimbursement rate for elementary,
middle, and high schools to $0.2271 per meal, and, for meals served
in child care centers and homes, would increase the reimbursement
rate to $0.1691 per meal.
   (20) Existing law requires the ratio of average daily attendance
for independent study pupils 18 years of age or less to full-time
equivalent certificated employees responsible for independent study,
for the applicable grade span, as specified, not to exceed a
specified ratio.
   This bill would eliminate grade spans as factors in the
computation of the ratios.
   (21) Existing law requires the Superintendent of Public
Instruction, with the approval of the State Board of Education, to
develop an Academic Performance Index, as specified, to measure the
performance of schools and school districts. Existing law requires
schools and school districts to demonstrate comparable improvement in
academic achievement as measured by the Academic Performance Index
by all numerically significant pupil subgroups at the school or
school district, including ethnic subgroups, socioeconomically
disadvantaged pupils, English learners, pupils with disabilities, and
foster youth.
   This bill would add homeless youth to the list of  pupils
subgroups for which, if numerically significant, comparable
improvement must be demonstrated,  and would specify that, for a
subgroup of pupils who are homeless youth, a numerically significant
pupil subgroup is one that consists of at least 15 pupils. To the
extent that this bill would impose new duties on schools and school
districts, it would constitute a state-mandated local program.
   (22) Existing law requires the State Board of Education, on or
before October 1, 2015, to adopt evaluation rubrics to, among other
things, assist a school district, county office of education, or
charter school in evaluating its strengths, weaknesses, and areas
that require improvement.
   This bill would instead require the state board to adopt
evaluation rubrics on or before October 1, 2016.
   (23) Existing law prohibits the expenditure of revenue derived
from the average daily attendance of adult education programs for
other than adult education purposes.
   This bill would authorize the expenditure of revenue derived from
average daily attendance pursuant to the local control funding
formula for adult education programs.
   (24) Existing law requires the State Department of Education to
administer the California Career Pathways Trust as a competitive
grant program for kindergarten and grades 1 to 14, inclusive.
   This bill would specify that funds appropriated in Item
6110-280-0001 of the Budget Act of 2014 for the Career Technical
Education Pathways Grant Program shall be available for expenditure
in the 2014-15 fiscal year to the 2016-17 fiscal year, inclusive.
   (25) Existing law authorizes secondary schools and postsecondary
educational institutions to offer instruction in career technical
education.
   This bill would establish the California Career Technical
Education Incentive Grant Program, under the administration of the
State Department of Education, as a state education and economic and
workforce development initiative with the goal of providing pupils in
kindergarten and grades 1 to 12, inclusive, with the knowledge and
skills necessary to transition to employment and postsecondary
education. The bill would establish criteria for the award of grants
to school districts, county offices of education, charter schools, or
regional occupational centers or programs operated by joint powers
authorities under these provisions. The bill would appropriate
specified amounts from the General Fund in the 2015-16, 2016-17, and
2017-18 fiscal years to the department for the award of grants.
   (26) Existing law establishes a process for the adoption of
instructional materials, including instructional materials related to
history-social science, for use in public elementary and secondary
schools.
   This bill would, for purposes of adopting basic instructional
materials for history-social science, require the State Department of
Education to provide notice of the imposition of a fee, as
specified, to all publishers and manufacturers known to produce basic
instructional materials in history-social science. The bill would
require that each publisher or manufacturer choosing to participate
in the textbook adoption process be assessed a fee based on the
number of programs the publisher or manufacturer indicates will be
submitted for review and the number of grade levels proposed to be
covered by each program.
   (27) Existing law requires the Chancellor of the California
Community Colleges and the State Department of Education, pursuant to
funding made available in the annual Budget Act, to jointly provide
2-year planning and implementation grants to regional consortia of
community college districts and school districts for developing
regional plans to better serve the educational needs of adults.
Existing law requires the grant funds provided under this program to
be used by each regional consortium to create and implement a plan to
better provide adults in its region with certain skills, classes,
courses, and programs, including, among other things, programs for
apprentices.
   This bill would instead require the plan to better provide adults
in the region with programs offering pre-apprenticeship training
activities, as specified. To the extent that this bill would impose
new duties on school districts and community college districts that
participate in these regional consortia, it would constitute a
state-mandated local program.
   (28) Existing law provides that adult schools and evening high
schools shall consist of classes for adults. Existing law authorizes
minors to be admitted into those classes pursuant to policies adopted
by the governing board of the school district if those minors meet
certain eligibility requirements.
   This bill would establish the Adult Education Block Grant Program
under the administration of the Chancellor of the California
Community Colleges and the Superintendent of Public Instruction. The
bill would require the chancellor and the Superintendent, with the
advice of the Executive Director of the State Board of Education, to
divide the state into adult education regions and approve one adult
education consortium in each adult education region, as specified.
   The bill would require the chancellor and the Superintendent, with
the advice of the executive director, to approve, for each
consortium, rules and procedures that adhere to prescribed
conditions. The bill would require that, as a condition for the
receipt of an apportionment of funds from this program for a
particular fiscal year, members of a consortium to have approved an
adult education plan, as specified.
   The bill, for the 2015-16 fiscal year, would require the
chancellor and the Superintendent, with the concurrence of the
executive director, to approve a schedule of allocations, and to
apportion funds, to each consortium in accordance with prescribed
calculations. The bill, for the 2016-17 fiscal year and each fiscal
year thereafter, would require the chancellor and the Superintendent,
with the advice of the executive director, to approve, within 15
days of the annual Budget Act and in accordance with prescribed
criteria, a final schedule of allocations to each consortium under
the program.
   The bill would require the chancellor and the Superintendent to
submit to the Director of Finance, the State Board of Education, and
the Legislature, no later than January 31, 2016, a plan approved by
the chancellor and the Superintendent to distribute funds from
specified federal programs to the consortia for purposes of the
program proposed in this bill. The bill would also require the
chancellor and the Superintendent to submit an annual report
including specified data about the use of funds for the program and
the outcomes for adults statewide and in each adult education region.

   This bill would, to the extent that one-time funding is made
available in the Budget Act of 2015 for its purposes, require the
chancellor and the Superintendent to identify common measures for
determining the effectiveness of the members of each consortium in
meeting the educational needs of adults, as specified. The bill would
require the chancellor and the Superintendent to submit to the
Director of Finance, the State Board of Education, and the
appropriate fiscal and policy committees of the Legislature, no later
than November 1, 2015, a report of its progress in this regard.
   The bill would require that 85% of the funds appropriated for
purposes of these provisions be used for grants to consortia to
establish systems or obtain data for making this annual report, and
that 15% of the funds appropriated for purposes of these provisions
be used for grants for development of statewide policies and
procedures related to data collection or reporting or for technical
assistance to consortia, or both.
   (29) Existing law requires certain funds appropriated in the
annual Budget Act for reimbursement for the cost of a new program or
increased level of service of an existing program mandated by statute
or executive order to be available as a block grant to school
districts, charter schools, and county offices of education, to
support specified state-mandated local programs. Existing
                               law provides that a school district,
charter school, or county office of education that submits a letter
requesting funding to the Superintendent of Public Instruction and
receives this block grant funding is not eligible to submit a claim
for reimbursement for those specified mandated programs for the
fiscal year in which the block grant funding is received.
   This bill would revise the list of programs that are authorized
for block grant funding in lieu of program-specific reimbursement, as
specified.
   (30) This bill, for the 2014-15 fiscal year, would appropriate
$287,149,000 from the General Fund to the Superintendent of Public
Instruction for allocation to school districts, county offices of
education, and charter schools, and appropriate $49,500,000 from the
General Fund to the Chancellor of the California Community Colleges
for allocation to community college districts, for purposes of
satisfying state-mandated local program reimbursement claims.
    The bill also would appropriate $3,098,455,000 from the General
Fund to the Superintendent for allocation to school districts and
county superintendents of schools, and $604,043,000 from the General
Fund to the Chancellor of the California Community Colleges for
allocation to community college districts, as specified. The bill
would authorize the governing boards of school districts and
community college districts to expend these one-time funds for any
purpose, as determined by a governing board.
   (31) Existing law authorizes the Inglewood Unified School
District, until June 30, 2015, to sell property owned by the school
district and use the proceeds to reduce or retire a specified
emergency loan.
   This bill would extend the operation of those provisions to June
30, 2018. The bill would make legislative findings and declarations
as to the necessity of a special statute for the Inglewood Unified
School District.
   (32) Existing law establishes a public school financing system
that requires state funding for county superintendents of schools,
school districts, and charter schools to be calculated pursuant to a
local control funding formula, as specified. Existing law requires
funding pursuant to the local control funding formula to include, in
addition to a base grant, supplemental and concentration grant
add-ons that are based on the percentage of certain categories of
pupils, known as unduplicated pupils, served by the county
superintendent of schools, school district, or charter school.
Existing law requires the Superintendent of Public Instruction to
calculate, for each county superintendent of schools, school
district, and charter school, a base entitlement for the transition
to the local control funding formula, and requires the Superintendent
to determine the percentage of school districts that are apportioned
base entitlement funding that is less than the amount calculated
pursuant to the local control funding formula. If the percentage is
less than 10%, existing law requires the Superintendent to apportion
funding to school districts and charter schools equal to the amount
calculated pursuant to the local control funding formula in that
fiscal year and each fiscal year thereafter.
   This bill would declare the intent of the Legislature that when
the local control funding formula is fully implemented, local
educational agencies shall be required to report to the
Superintendent for compilation on the State Department of Education's
Internet Web site (1) the amount of funds received on the basis of
the number and concentration of unduplicated pupils in the current
year and, to the extent available, prior fiscal years and (2) the
amount of local control funding formula funds expended on services
for unduplicated pupils in the current year and, to the extent
available, prior fiscal years commencing with the 2013-14 fiscal
year. By requiring local educational agencies to report certain
information to the Superintendent, this bill would impose a
state-mandated local program.
   (33) This bill would require an amount to be determined by the
Director of Finance to be appropriated, on or before June 30, 2016,
from the General Fund to the Superintendent of Public Instruction in
the event that and up to the amount by which specified revenues
distributed to local educational agencies for special education
programs are less than the estimated amount reflected in the Budget
Act of 2015. The bill would also require the Director of Finance to
reduce the General Fund appropriation for these programs by the
amount that these revenues exceed the estimated amount.
   (34) This bill would require the State Department of Education to
convene, by September 1, 2015, a stakeholder group, composed as
specified, to provide recommendations to streamline data and other
reporting requirements for child care and early learning providers
that contract with the department to provide state preschool and
other state subsidized child care and early learning programs, as
specified.
   (35) This bill would require the State Department of Education to
convene, by September 1, 2015, a stakeholder group, composed as
specified, to examine CalWORKs Stage 2, CalWORKs Stage 3, and
alternative payment program child care contract requirements, program
and fiscal audits, and the process by which contractors are informed
of and implement new contract requirements, with the purpose of
identifying redundancies and efficiencies in program implementation
and reducing the workload in program administration, as specified.
   (36) This bill would appropriate the sum of $50,000 from the
General Fund to the State Department of Education for payment of
claims received in the 2013-14 and 2014-15 fiscal years pursuant to
the requirements for conducting hearings relating to suspension or
dismissal of certificated school employees.
   (37) This bill would appropriate the sum of $350,000 to the
Superintendent of Public Instruction for support and development of
evaluation rubrics for specified purposes relating to the
implementation of local control and accountability plans.
   (38) In the 2009-10 and 2010-11 fiscal years, for a pupil of a
charter school sponsored by a basic aid school district who resided
in a school district other than a basic aid school district, the
Superintendent of Public Instruction was required to apportion to the
sponsoring school district an amount equal to 70% of the revenue
limit funding per unit of average daily attendance that would have
been apportioned to the school district in which the pupil resided,
as specified. However, a basic aid school district that lost basic
aid status as a result of required property tax transfers to charter
schools was entitled to a pro rata share of that apportionment,
calculated based on the ratio between (1) the amount of property
taxes the school district would have received in excess of the
revenue limit guarantee before required property tax transfers to
charter schools and (2) the total amount of property taxes
transferred to the charter schools that the school district
sponsored.
   This bill would, for the 2009-10 and 2010-11 fiscal years, require
that certain allocations from the county Supplemental Educational
Revenue Augmentation Fund, created in 2009 and funded with specified
redevelopment agency revenues, be treated as property taxes for
purposes of calculating the ratio that determined the pro rata share
of the apportionment for a basic aid school district that lost its
basic aid status as a result of required property tax transfers to
charter schools.
   (39) This bill would appropriate an additional $2,000,000 to the
amount apportioned pursuant to the local control funding formula for
the Los Angeles County Office of Education for the purpose of
supporting professional development and leadership training for
education professionals related to antibias education and the
creation of inclusive and equitable schools.
   (40) This bill would specify that, of the amount allocated
pursuant to a specified item in the Budget Act of 2012, $16,549,000
shall be allocated to fund the 2010-11 fiscal year maintenance of
effort in the special education program, and $19,173,000 shall be
allocated to fund the 2011-12 maintenance of effort in the special
education program.
   (41) This bill would appropriate the sum of $10,000,000 from the
General Fund to the Superintendent of Public Instruction on a
one-time basis to apportion to a designated county office of
education or two designated county offices of education applying
jointly to provide technical assistance and to develop and
disseminate statewide resources that encourage and assist local
educational agencies and charter schools in establishing and aligning
schoolwide, data-driven systems of learning and behavioral supports
for the purpose of meeting the needs of California's diverse learners
in the most inclusive environments possible, as specified. The bill
would provide that the designated county office of education or
county offices of education shall, with the goal of maximizing their
availability, efficacy, and usage across the state, identify existing
evidence-based resources, professional development activities, and
other efforts currently available, and develop new evidence-based
resources and activities designed to help local educational agencies
and charter schools across the state complete specified activities.
The bill would require the designated county office of education or
county offices of education, by September 30 of each fiscal year
until the designated county office of education or county offices of
education have fully expended the allocated funds, to submit an
annual report to the Superintendent of Public Instruction summarizing
how the designated county office of education or county offices of
education used the allocated funds in the prior fiscal year.
   (42) This bill would appropriate the sum of $490,000,000 from the
General Fund to the Superintendent of Public Instruction to be
allocated to school districts, county offices of education, charter
schools, and the state special schools, as provided, for specified
teacher and administrator training and professional development. The
bill would appropriate the sum of $10,000,000 from the General Fund
to the Superintendent of Public Instruction to be provided to the
K-12 High-Speed Network for the purpose of providing professional
development and technical assistance to local educational agencies
related to network management.
   (43) This bill would make conforming changes, correct
cross-references, and make other nonsubstantive changes.
   (44) 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.
   (45) 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.
   (46) 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 2574 of the Education Code is amended to read:
   2574.  For the 2013-14 fiscal year and for each fiscal year
thereafter, the Superintendent annually shall calculate a county
local control funding formula for each county superintendent of
schools as follows:
   (a) Compute a county office of education operations grant equal to
the sum of each of the following amounts:
   (1) Six hundred fifty-five thousand nine hundred twenty dollars
($655,920).
   (2) One hundred nine thousand three hundred twenty dollars
($109,320) multiplied by the number of school districts for which the
county superintendent of schools has jurisdiction pursuant to
Section 1253.
   (3) (A) Seventy dollars ($70) multiplied by the number of units of
countywide average daily attendance, up to a maximum of 30,000
units.
   (B) Sixty dollars ($60) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 30,000 units, up to a maximum
of 60,000 units.
   (C) Fifty dollars ($50) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 60,000, up to a maximum of
140,000 units.
   (D) Forty dollars ($40) multiplied by the number of units of
countywide average daily attendance for the portion of countywide
average daily attendance, if any, above 140,000 units.
   (E) For purposes of this section, countywide average daily
attendance means the aggregate number of annual units of average
daily attendance within the county attributable to all school
districts for which the county superintendent of schools has
jurisdiction pursuant to Section 1253, charter schools authorized by
school districts for which the county superintendent of schools has
jurisdiction, and charter schools authorized by the county
superintendent of schools.
   (4) For the 2014-15 fiscal year and each fiscal year thereafter,
adjust each of the rates provided in the prior year pursuant to
paragraphs (1), (2), and (3) by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (b) Determine the enrollment percentage of unduplicated pupils
pursuant to the following:
   (1) (A) For the 2013-14 fiscal year, divide the enrollment of
unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 fiscal year by the total
enrollment in those schools in the 2013-14 fiscal year.
   (B) For the 2014-15 fiscal year, divide the sum of the enrollment
of unduplicated pupils in all schools operated by a county
superintendent of schools in the 2013-14 and 2014-15 fiscal years by
the sum of the total enrollment in those schools in the 2013-14 and
2014-15 fiscal years.
   (C) For the 2015-16 fiscal year and each fiscal year thereafter,
divide the sum of the enrollment of unduplicated pupils in all
schools operated by a county superintendent of schools in the current
fiscal year and the two prior fiscal years by the sum of the total
enrollment in those schools in the current fiscal year and the two
prior fiscal years.
   (D) (i) For purposes of the quotients determined pursuant to
subparagraphs (B) and (C), the Superintendent shall use a county
superintendent of schools' enrollment of unduplicated pupils and
total pupil enrollment in the 2014-15 fiscal year instead of the
enrollment of unduplicated pupils and total pupil enrollment in the
2013-14 fiscal year if doing so would yield an overall greater
percentage of unduplicated pupils.
   (ii) It is the intent of the Legislature to review each county
office of education's enrollment of unduplicated pupils for the
2013-14 and 2014-15 fiscal years and provide one-time funding, if
necessary, for a county office of education with higher enrollment of
unduplicated pupils in the 2014-15 fiscal year as compared to the
2013-14 fiscal year.
   (E) For purposes of determining the enrollment percentage of
unduplicated pupils pursuant to this subdivision, enrollment in
schools or classes established pursuant to Article 2.5 (commencing
with Section 48645) of Chapter 4 of Part 27 of Division 4 of Title 2
and the enrollment of pupils other than the pupils identified in
clauses (i) to (iii), inclusive, of subparagraph (A) of paragraph (4)
of subdivision (c), shall be excluded from the calculation of the
enrollment percentage of unduplicated pupils.
   (F) The data used to determine the percentage of unduplicated
pupils shall be final once that data is no longer used in the current
fiscal year calculation of the percentage of unduplicated pupils.
This subparagraph does not apply to a change that is the result of an
audit that has been appealed pursuant to Section 41344.
   (2) For purposes of this section, an "unduplicated pupil" is a
pupil who is classified as an English learner, eligible for a free or
reduced-price meal, or a foster youth. For purposes of this section,
the definitions in Section 42238.01 of an English learner, a pupil
eligible for a free or reduced-price meal, and foster youth shall
apply. A pupil shall be counted only once for purposes of this
section if any of the following apply:
   (A) The pupil is classified as an English learner and is eligible
for a free or reduced-price meal.
   (B) The pupil is classified as an English learner and is a foster
youth.
   (C) The pupil is eligible for a free or reduced-price meal and is
classified as a foster youth.
   (D) The pupil is classified as an English learner, is eligible for
a free or reduced-price meal, and is a foster youth.
   (3) (A) Under procedures and timeframes established by the
Superintendent, commencing with the 2013-14 fiscal year, a county
superintendent of schools annually shall report the enrollment of
unduplicated pupils, pupils classified as English learners, pupils
eligible for free and reduced-price meals, and foster youth in
schools operated by the county superintendent of schools to the
Superintendent using the California Longitudinal Pupil Achievement
Data System.
   (B) The Superintendent shall make the calculations pursuant to
this section using the data submitted through the California
Longitudinal Pupil Achievement Data System.
   (C) The Controller shall include instructions, as appropriate, in
the audit guide required by subdivision (a) of Section 14502.1, for
determining if the data reported by a county superintendent of
schools using the California Longitudinal Pupil Achievement Data
System is consistent with pupil data records maintained by the county
office of education.
   (c) Compute an alternative education grant equal to the sum of the
following:
   (1) (A) For the 2013-14 fiscal year, a base grant equal to the
2012-13 per pupil undeficited statewide average juvenile court school
base revenue limit calculated pursuant to Article 3 (commencing with
Section 2550) of Chapter 12, as that article read on January 1,
2013. For purposes of this subparagraph, the 2012-13 statewide
average juvenile court school base revenue limit shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) Commencing with the 2013-14 fiscal year, the per pupil base
grant shall be adjusted by the percentage change in the annual
average value of the Implicit Price Deflator for State and Local
Government Purchases of Goods and Services for the United States, as
published by the United States Department of Commerce for the
12-month period ending in the third quarter of the prior fiscal year.
This percentage change shall be determined using the latest data
available as of May 10 of the preceding fiscal year compared with the
annual average value of the same deflator for the 12-month period
ending in the third quarter of the second preceding fiscal year,
using the latest data available as of May 10 of the preceding fiscal
year, as reported by the Department of Finance.
   (2) A supplemental grant equal to 35 percent of the base grant
described in paragraph (1) multiplied by the enrollment percentage
calculated in subdivision (b). The supplemental grant shall be
expended in accordance with the regulations adopted pursuant to
Section 42238.07.
   (3) (A) A concentration grant equal to 35 percent of the base
grant described in paragraph (1) multiplied by the greater of either
of the following:
   (i) The enrollment percentage calculated in subdivision (b) less
50 percent.
   (ii) Zero.
   (B) The concentration grant shall be expended in accordance with
the regulations adopted pursuant to Section 42238.07.
   (4) (A) Multiply the sum of paragraphs (1), (2), and (3) by the
total number of units of average daily attendance for pupils
attending schools operated by a county office of education, excluding
units of average daily attendance for pupils attending schools or
classes established pursuant to Article 2.5 (commencing with Section
48645) of Chapter 4 of Part 27 of Division 4 of Title 2, who are
enrolled pursuant to any of the following:
   (i) Probation-referred pursuant to Sections 300, 601, 602, and 654
of the Welfare and Institutions Code.
   (ii) On probation or parole and not in attendance in a school.
   (iii) Expelled for any of the reasons specified in subdivision (a)
or (c) of Section 48915.
   (B) Multiply the number of units of average daily attendance for
pupils attending schools or classes established pursuant to Article
2.5 (commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2 by the sum of the base grant calculated
pursuant to paragraph (1), a supplemental grant equal to 35 percent
of the base grant calculated pursuant to paragraph (1), and a
concentration grant equal to 17.5 percent of the base grant
calculated pursuant to paragraph (1). Funds provided for the
supplemental and concentration grants pursuant to this calculation
shall be expended in accordance with the regulations adopted pursuant
to Section 42238.07.
   (C) Add the amounts calculated in subparagraphs (A) and (B).
   (d) Add the amount calculated in subdivision (a) to the amount
calculated in subparagraph (C) of paragraph (4) of subdivision (c).
   (e) Add all of the following to the amount calculated in
subdivision (d):
   (1) The amount of funding a county superintendent of schools
received for the 2012-13 fiscal year from funds allocated pursuant to
the Targeted Instructional Improvement Block Grant program, as set
forth in Article 6 (commencing with Section 41540) of Chapter 3.2 of
Part 24 of Division 3 of Title 2, as that article read on January 1,
2013.
   (2) (A) (i) 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 former Article 2 (commencing with Section 39820) of Chapter 1 of
Part 23.5 of Division 3 of Title 2, former Article 10 (commencing
with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in former Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013.
   (ii) If a home-to-school transportation joint powers agency,
established pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation, received an apportionment
directly from the Superintendent pursuant to Item 6110-111-0001 of
Section 2.00 of the Budget Act of 2012, as identified in clause (i)
of subparagraph (A) of paragraph (2) of subdivision (a) of Section
2575, the joint powers agency may identify the member local
educational agencies and transfer entitlement to that funding to any
of those member local educational agencies by reporting to the
Superintendent, on or before September 30, 2015, the reassignment of
a specified amount of the joint powers agency's 2012-13 fiscal year
entitlement to the member local educational agency. Commencing with
the 2015-16 fiscal year, the Superintendent shall add the reassigned
amounts to the amounts calculated pursuant to this paragraph.
   (B) On or before March 1, 2014, the Legislative Analyst's Office
shall submit recommendations to the fiscal committees of both houses
of the Legislature regarding revisions to the methods of funding
pupil transportation that address historical funding inequities
across county offices of education and school districts and improve
incentives for local educational agencies to provide efficient and
effective pupil transportation services.
   (3) The difference determined by subtracting the amount calculated
pursuant to paragraph (1) of subdivision (c) for pupils attending a
school that is eligible for funding pursuant to paragraph (2) of
subdivision (b) of Section 42285 from the amount of funding that is
provided to eligible schools pursuant to Section 42284, if the
difference is positive.
  SEC. 2.  Section 2575 of the Education Code is amended to read:
   2575.  (a) Commencing with the 2013-14 fiscal year and for each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the county local control funding
formula for each county superintendent of schools based on the sum of
the amounts computed pursuant to paragraphs (1) to (3), inclusive,
as adjusted pursuant to paragraph (4):
   (1) Revenue limits in the 2012-13 fiscal year pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that article read
on January 1, 2013, adjusted only for changes in average daily
attendance claimed by the county superintendent of schools for pupils
identified in clauses (i), (ii), and (iii) of subparagraph (A) of
paragraph (4) of subdivision (c) of Section 2574 and for pupils
attending juvenile court schools. For purposes of this paragraph, the
calculation of an amount per unit of average daily attendance for
pupils attending juvenile court schools shall be considered final for
purposes of this section as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections 41332
and 41339. All other average daily attendance claimed by the county
superintendent of schools and any other average daily attendance used
for purposes of calculating revenue limits pursuant to Article 3
(commencing with Section 2550) of Chapter 12, as that article read on
January 1, 2013, shall be considered final for purposes of this
section as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (2) The sum of all of the following:
   (A) (i) The amount of funding received from appropriations
contained in Section 2.00 of the Budget Act of 2012, as adjusted by
Section 12.42, in the following Items: 6110-104-0001, 6110-105-0001,
6110-107-0001, 6110-108-0001, 6110-111-0001, 6110-124-0001,
6110-128-0001, 6110-137-0001, 6110-144-0001, 6110-156-0001,
6110-181-0001, 6110-188-0001, 6110-189-0001, 6110-190-0001,
6110-193-0001, 6110-195-0001, 6110-198-0001, 6110-204-0001,
6110-208-0001, 6110-209-0001, 6110-211-0001, 6110-212-0001,
6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-240-0001,
6110-242-0001, 6110-243-0001, 6110-244-0001, 6110-245-0001,
6110-246-0001, 6110-247-0001, 6110-248-0001, 6110-260-0001,
6110-265-0001, 6110-266-0001, 6110-267-0001, 6110-268-0001, and
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to Chapter 6.10 (commencing with Section
52120) of Part 28 of Division 4 of Title 2, as that chapter read on
January 1, 2013, and 2012-13 fiscal year funding for pupils enrolled
in community day schools who are mandatorily expelled pursuant to
subdivision (d) of Section 48915. For purposes of this subparagraph,
the 2012-13 fiscal year appropriations described in this subparagraph
shall be considered final as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections 41332
and 41339.
   (ii) If a home-to-school transportation joint powers agency,
established pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation, received an apportionment
directly from the Superintendent pursuant to Item 6110-111-0001 of
Section 2.00 of the Budget Act of 2012, as identified in clause (i),
the joint powers agency may identify the member local educational
agencies and transfer entitlement to that funding to any of those
member local educational agencies by reporting to the Superintendent,
on or before September 30, 2015, the reassignment of a specified
amount of the joint powers agency's 2012-13 fiscal year entitlement
to the member local educational agency. Commencing with the 2015-16
fiscal year, the Superintendent shall add the reassigned amounts to
the amounts calculated pursuant to this paragraph. These funds shall
be subject to the requirements specified in paragraph (1) of
subdivision (k).
   (B) The amount of local revenues used to support a regional
occupational center or program established and maintained by a county
superintendent of schools pursuant to Section 52301.
   (3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the sum of the amounts apportioned to the county
superintendent of schools pursuant to subdivision (f) in all prior
years.
   (4) The revenue limit amount determined pursuant to paragraph (1)
shall be increased by the difference determined by subtracting the
amount provided per unit of average daily attendance in paragraph (1)
for pupils attending a school that is eligible for funding pursuant
to paragraph (2) of subdivision (b) of Section 42285 from the amount
of funding that was provided to eligible schools in the 2012-13
fiscal year pursuant to Sections 42284 and 42238.146, as those
sections read on January 1, 2013.
   (b) The Superintendent shall annually compute a county local
control funding formula transition adjustment for each county
superintendent of schools as follows:
   (1) Subtract the amount computed pursuant to subdivision (a) from
the amount computed pursuant to subdivision (e) of Section 2574. A
difference of less than zero shall be deemed to be zero.
   (2) Divide the difference for each county superintendent of
schools calculated pursuant to paragraph (1) by the total sum of the
differences for all county superintendents of schools calculated
pursuant to paragraph (1).
   (3) Multiply the proportion calculated for each county
superintendent of schools pursuant to paragraph (2) by the amount of
funding specifically appropriated for purposes of subdivision (f).
The amount calculated shall not exceed the difference for the county
superintendent of schools calculated pursuant to paragraph (1).
   (c) The Superintendent shall subtract from the amount calculated
pursuant to subdivision (a) the sum of each of the following:
   (1) Local property tax revenues received pursuant to Section 2573
in the then current fiscal year.
   (2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.
   (3) The amount received pursuant to subparagraph (C) of paragraph
(3) of subdivision (a) of Section 33607.5 of the Health and Safety
Code that is considered property taxes pursuant to that section.
   (4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (5) The amount, if any, received pursuant to subparagraph (B) of
paragraph (3) of subdivision (e) of Section 36 of Article XIII of the
California Constitution.
   (d) The Superintendent shall subtract from the amount computed
pursuant to subdivision (e) of Section 2574 the sum of the amounts
computed pursuant to paragraphs (1) to (5), inclusive, of subdivision
(c).
   (e) The Superintendent shall annually apportion to each county
superintendent of schools the amount calculated pursuant to
subdivision (c) unless the amount computed pursuant to subdivision
(c) is negative. If the amount computed is negative, except as
provided in subdivision (f), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during the fiscal
year. In the following fiscal year, that amount, excluding any
amount of funds used for purposes of subdivision (f), shall be
considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578. State aid shall not be apportioned
to the county superintendent of schools pursuant to this subdivision
if the amount computed pursuant to subdivision (c) is negative.
   (f) (1) The Superintendent shall apportion, from an appropriation
specifically made for this purpose, the amount computed pursuant to
subdivision (b), or, if the amount computed pursuant to subdivision
(c) is negative, the sum of the amounts computed pursuant to
subdivisions (b) and (c) if the sum if greater than zero.
   (2) The Superintendent shall apportion any portion of the
appropriation made for purposes of paragraph (1) that is not
apportioned pursuant to paragraph (1) pursuant to the following
calculation:
   (A) Add the amount calculated pursuant to subdivision (b) to the
amount computed pursuant to subdivision (a) for a county
superintendent of schools.
   (B) Subtract the amount computed pursuant to subparagraph (A) from
the amount computed pursuant to subdivision (e) of Section 2574 for
the county superintendent of schools.
   (C) Divide the difference for the county superintendent of schools
computed pursuant to subparagraph (B) by the sum of the differences
for all county superintendents of schools computed pursuant to
subparagraph (B).
   (D) Multiply the proportion computed pursuant to subparagraph (C)
by the unapportioned balance in the appropriation. That product shall
be the county superintendent of schools' proportion of total need.
   (E) Apportion to each county superintendent of schools the amount
calculated pursuant to subparagraph (D), or if subdivision (c) is
negative, apportion the sums of subdivisions (b) and (c) and
subparagraph (D) of this subdivision if the sum is greater than zero.

   (F) The Superintendent shall repeat the computation made pursuant
to this paragraph, accounting for any additional amounts apportioned
after each computation, until the appropriation made for purposes of
paragraph (1) is fully apportioned.
   (G) The total amount apportioned pursuant to this subdivision to a
county superintendent of schools shall not exceed the difference for
the county superintendent of schools calculated pursuant to
paragraph (1) of subdivision (b).
   (H) For purposes of this paragraph, the proportion of need that is
funded from any appropriation made specifically for purposes of this
subdivision in the then current fiscal year shall be considered
fixed as of the second principal apportionment for that fiscal year.
Adjustments to a county superintendent of schools' total need
computed pursuant to subparagraph (D) after the second principal
apportionment for the then current fiscal year shall be funded based
on the fixed proportion of need that is funded for that fiscal year
pursuant to this subdivision, and shall be continuously appropriated
pursuant to Section 14002.
   (g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is less than the amount computed pursuant to subdivision (d), in the
first fiscal year following the fiscal year in which the sum of the
apportionments computed pursuant to subdivisions (e) and (f) is equal
to, or greater than, the amount computed pursuant to subdivision (d)
of this section, the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d) in
that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).
   (2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision (c)
is greater than the amount computed pursuant to subdivision (d), in
the first fiscal year in which the amount computed pursuant to
subdivision (c) would be less than the amount computed pursuant to
subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d) in
that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).
   (3) In each fiscal year, the Superintendent shall determine the
percentage of county superintendents of schools that are apportioned
funding that is less than the amount computed pursuant to subdivision
(d), as of the second principal apportionment of the fiscal year. If
the percentage is less than 10 percent, the Superintendent shall
apportion to those county superintendents of schools funding equal to
the amount computed in subdivision (d) in that fiscal year and for
each fiscal year thereafter instead of the amounts calculated
pursuant to subdivisions (e) and (f).
   (4) Commencing with the first fiscal year after the apportionments
in paragraph (3) are made, the adjustments in paragraph (4) of
subdivision (a) of Section 2574 and subparagraph (B) of paragraph (1)
of subdivision (c) of Section 2574 shall be made only if an
appropriation for those purposes is included in the annual Budget
Act.
   (5) If the calculation pursuant to subdivision (d) is negative and
the Superintendent apportions to a county superintendent of schools
the amount computed pursuant to subdivision (d) pursuant to paragraph
(1), (2), or (3) of this
       subdivision, an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during that
fiscal year. In the following fiscal year the restricted amount shall
be considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578.
   (h) Commencing with the 2013-14 fiscal year, the Superintendent
shall apportion to a county superintendent of schools an amount of
state aid, including any amount apportioned pursuant to subdivisions
(f) and (g), that is no less than the amount calculated in
subparagraph (A) of paragraph (2) of subdivision (a).
   (i) (1) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
regional occupational center or program joint powers agency
established in accordance with Article 1 (commencing with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government Code
for purposes of providing instruction to pupils enrolled in grades 9
to 12, inclusive, shall not redirect that funding for another purpose
unless otherwise authorized by law or pursuant to an agreement
between the regional occupational center or program joint powers
agency and the contracting county superintendent of schools.
   (2) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing instruction to pupils enrolled in grades 9 to 12,
inclusive, received, in the 2012-13 fiscal year, an apportionment of
funds directly from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.
   (j) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from any
of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to, a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation shall not redirect that funding for
another purpose unless otherwise authorized by law or pursuant to an
agreement between the home-to-school transportation joint powers
agency and the contracting county superintendent of schools.
   (k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school transportation
programs, the county superintendent of schools shall expend, pursuant
to former Article 2 (commencing with Section 39820) of Chapter 1 of
Part 23.5 of Division 3 of Title 2, former Article 10 (commencing
with Section 41850) of Chapter 5 of Part 24 of Division 3 of Title 2,
and the Small School District Transportation program, as set forth
in former Article 4.5 (commencing with Section 42290) of Chapter 7 of
Part 24 of Division 3 of Title 2, as those articles read on January
1, 2013, no less for those programs than the amount of funds the
county superintendent of schools expended for home-to-school
transportation in the 2012-13 fiscal year.
   (2) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation received, in the 2012-13 fiscal year,
an apportionment of funds directly from the Superintendent from any
of the funding sources identified in subparagraph (A) of paragraph
(2) of subdivision (a), the Superintendent shall apportion that same
amount to the home-to-school transportation joint powers agency.
   (3) For the 2013-14 and 2014-15 fiscal years only, of the funds a
county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a county superintendent of
schools may include expenditures made by a school district within the
county for purposes of regional occupational centers or programs so
long as the total amount of expenditures made by the school districts
and the county superintendent of schools equals or exceeds the total
amount required to be expended for purposes of regional occupational
centers or programs pursuant to this paragraph and paragraph (7) of
subdivision (a) of Section 42238.03.
   (  l  ) The funds apportioned pursuant to this section
and Section 2574 shall be available to implement the activities
required pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.
  SEC. 3.  Section 8238 of the Education Code is amended to read:
   8238.  As a condition of receipt of funds pursuant to Section
8238.4, a participating part-day preschool program shall coordinate
the provision of all of the following:
   (a) Opportunities for parents and legal guardians to work with
their children on interactive literacy activities. For purposes of
this subdivision, "interactive literacy activities" means activities
in which parents or legal guardians actively participate in
facilitating the acquisition by their children of prereading skills
through guided activities such as shared reading, learning the
alphabet, and basic vocabulary development.
   (b) Parenting education for parents and legal guardians of
children in participating classrooms to support the development by
their children of literacy skills. Parenting education shall include,
but not be limited to, instruction in all of the following:
   (1) Providing support for the educational growth and success of
their children.
   (2) Improving parent-school communications and parental
understanding of school structures and expectations.
   (3) Becoming active partners with teachers in the education of
their children.
   (4) Improving parental knowledge of local resources for the
identification of and services for developmental disabilities,
including, but not limited to, contact information for school
district special education referral.
   (c) Referrals, as necessary, to providers of instruction in adult
education and English as a second language in order to improve the
academic skills of parents and legal guardians of children in
participating classrooms.
   (d) Staff development for teachers in participating classrooms
that includes, but is not limited to, all of the following:
   (1) Development of a pedagogical knowledge, including, but not
limited to, improved instructional and behavioral strategies.
   (2) Knowledge and application of developmentally appropriate
assessments of the prereading skills of children in participating
classrooms.
   (3) Information on working with families, including the use of
onsite coaching, for guided practice in interactive literacy
activities.
   (4) Providing targeted interventions for all young children to
improve kindergarten readiness upon program completion.
  SEC. 4.  Section 8239 of the Education Code is amended to read:
   8239.  (a) The Superintendent shall encourage state preschool
program applicants or contracting agencies to offer full-day services
through a combination of part-day preschool slots and wraparound
general child care and development programs. In order to facilitate a
full day of services, all of the following shall apply:
   (1) Part-day preschool programs provided pursuant to this section
shall operate between 175 and 180 days.
   (2) Wraparound general child care and development programs
provided pursuant to this section may operate a minimum of 246 days
per year unless the child development contract specified a lower
minimum days of operation. Part-day general child care and
development programs may operate a full day for the remainder of the
year after the completion of the preschool program.
   (3) Part-day preschool services combined with wraparound child
care services shall be reimbursed at a base rate determined pursuant
to Section 8265 and in the annual Budget Act, using adjustment
factors pursuant to Section 8265.5.
   (4) Three- and four-year-old children are eligible for wraparound
child care services to supplement the part-day California state
preschool program if the family meets at least one of the criteria
specified in paragraph (1) of subdivision (a) of Section 8263, and
the parents meet at least one of the criteria specified in paragraph
(2) of subdivision (a) of Section 8263.
   (b) For purposes of this section, "wraparound child care services"
and "wraparound general child care and development programs" mean
services provided for the remaining portion of the day or remainder
of the year following the completion of part-day preschool services
that are necessary to meet the child care needs of parents eligible
pursuant to subdivision (a) of Section 8263. These services shall be
provided consistent with the general child care and development
programs provided pursuant to Article 8 (commencing with Section
8240).
  SEC. 5.  Section 8263.1 of the Education Code is amended to read:
   8263.1.  (a) For purposes of this chapter, "income eligible" means
that a family's adjusted monthly income is at or below 70 percent of
the state median income, adjusted for family size, and adjusted
annually.
   (b) Notwithstanding any other law, for the 2011-12 fiscal year,
the income eligibility limits that were in effect for the 2007-08
fiscal year shall be reduced to 70 percent of the state median income
that was in use for the 2007-08 fiscal year, adjusted for family
size, effective July 1, 2011.
   (c) Notwithstanding any other law, for the 2012-13, 2013-14,
2014-15, and 2015-16 fiscal years, the income eligibility limits
shall be 70 percent of the state median income that was in use for
the 2007-08 fiscal year, adjusted for family size.
   (d) The income of a recipient of federal supplemental security
income benefits pursuant to Title XVI of the federal Social Security
Act (42 U.S.C. Sec. 1381 et seq.) and state supplemental program
benefits pursuant to Title XVI of the federal Social Security Act and
Chapter 3 (commencing with Section 12000) of Part 3 of Division 9 of
the Welfare and Institutions Code shall not be included as income
for purposes of determining eligibility for child care under this
chapter.
  SEC. 6.  Section 8265 of the Education Code is amended to read:
   8265.  (a) The Superintendent shall implement a plan that
establishes reasonable standards and assigned reimbursement rates,
which vary with the length of the program year and the hours of
service.
   (1) Parent fees shall be used to pay reasonable and necessary
costs for providing additional services.
   (2) When establishing standards and assigned reimbursement rates,
the Superintendent shall confer with applicant agencies.
   (3) The reimbursement system, including standards and rates, shall
be submitted to the Joint Legislative Budget Committee.
   (4) The Superintendent may establish any regulations he or she
deems advisable concerning conditions of service and hours of
enrollment for children in the programs.
   (b) The standard reimbursement rate shall be nine thousand five
hundred seventy-two dollars and fifty cents ($9,572.50) per unit of
average daily enrollment for a 250-day year and, commencing with the
2016-17 fiscal year, shall be increased by the cost-of-living
adjustment granted by the Legislature annually pursuant to Section
42238.15. The full-day state preschool reimbursement rate shall be
nine thousand six hundred thirty-two dollars and fifty cents
($9,632.50) per unit of average daily enrollment for a 250-day year
and, commencing with the 2016-17 fiscal year, shall be increased by
the cost-of-living adjustment granted by the Legislature annually
pursuant to Section 42238.15.
   (c) The plan shall require agencies having an assigned
reimbursement rate above the current year standard reimbursement rate
to reduce costs on an incremental basis to achieve the standard
reimbursement rate.
   (d) (1) The plan shall provide for adjusting reimbursement on a
case-by-case basis, in order to maintain service levels for agencies
currently at a rate less than the standard reimbursement rate.
Assigned reimbursement rates shall be increased only on the basis of
one or more of the following:
   (A) Loss of program resources from other sources.
   (B) Need of an agency to pay the same child care rates as those
prevailing in the local community.
   (C) Increased costs directly attributable to new or different
regulations.
   (D) Documented increased costs necessary to maintain the prior
year's level of service and ensure the continuation of threatened
programs.
   (2) Child care agencies funded at the lowest rates shall be given
first priority for increases.
   (e) The plan shall provide for expansion of child development
programs at no more than the standard reimbursement rate for that
fiscal year.
   (f) The Superintendent may reduce the percentage of reduction for
a public agency that satisfies any of the following:
   (1) Serves more than 400 children.
   (2) Has in effect a collective bargaining agreement.
   (3) Has other extenuating circumstances that apply, as determined
by the Superintendent.
  SEC. 7.  Section 8265.5 of the Education Code is amended to read:
   8265.5.  (a) In order to reflect the additional expense of serving
children who meet any of the criteria outlined in paragraphs (1) to
(7), inclusive, of subdivision (b) the provider agency's reported
child days of enrollment for these children shall be multiplied by
the adjustment factors listed below.
   (b) The adjustment factors shall apply to a full-day state
preschool program and those programs for which assigned reimbursement
rates are at or below the standard reimbursement rate. In addition,
the adjustment factors shall apply to those programs for which
assigned reimbursement rates are above the standard reimbursement
rate, but the reimbursement rate, as adjusted, shall not exceed the
adjusted standard reimbursement rate. The adjustment factors shall
apply to those full-day state preschool programs for which assigned
reimbursement rates are above the full-day state preschool
reimbursement rate, but the reimbursement rate, as adjusted, shall
not exceed the adjusted full-day state preschool reimbursement rate.
   (1) For infants who are 0 to 18 months of age and are served in a
child day care center, the adjustment factor shall be 1.7.
   (2) For toddlers who are 18 to 36 months of age and are served in
a child day care center, the adjustment factor shall be 1.4.
   (3) For infants and toddlers who are 0 to 36 months of age and are
served in a family child care home, the adjustment factor shall be
1.4.
   (4) For children with exceptional needs who are 0 to 21 years of
age, the adjustment factor shall be 1.2.
   (5) For severely disabled children who are 0 to 21 years of age,
the adjustment factor shall be 1.5.
   (6) For a child at risk of neglect, abuse, or exploitation who are
0 to 14 years of age, the adjustment factor shall be 1.1.
   (7) For limited-English-speaking and non-English-speaking children
who are 2 years of age through kindergarten age, the adjustment
factor shall be 1.1.
   (c) Use of the adjustment factors shall not increase the provider
agency's total annual allocation.
   (d) Days of enrollment for children having more than one of the
criteria outlined in paragraphs (1) to (7), inclusive, of subdivision
(b) shall not be reported under more than one of the above
categories.
   (e) The difference between the reimbursement resulting from the
use of the adjustment factors outlined in paragraphs (1) to (7),
inclusive, of subdivision (b) and the reimbursement that would
otherwise be received by a provider in the absence of the adjustment
factors shall be used for special and appropriate services for each
child for whom an adjustment factor is claimed.
  SEC. 8.  Section 8335 of the Education Code is amended to read:
   8335.  The City and County of San Francisco may develop and
implement an individualized county child care subsidy plan. The plan
shall ensure that child care subsidies received by the city and
county are used to address local needs, conditions, and priorities of
working families in the community.
  SEC. 9.  Section 8335.1 of the Education Code is amended to read:
   8335.1.  Before implementing the local subsidy plan, the City and
County of San Francisco, in consultation with the department, shall
develop an individualized county child care subsidy plan for the city
and county that includes the following four elements:
   (a) An assessment to identify the city and county's goal for its
subsidized child care system. The assessment shall examine whether
the current structure of subsidized child care funding adequately
supports working families in the city and county and whether the city
and county's child care goals coincide with the state's requirements
for funding, eligibility, priority, and reimbursement. The
assessment shall also identify barriers in the state's child care
subsidy system that inhibit the city and county from meeting its
child care goals. In conducting the assessment, the city and county
shall consider all of the following:
   (1) The general demographics of families who are in need of child
care, including employment, income, language, ethnic, and family
composition.
   (2) The current supply of available subsidized child care.
   (3) The level of need for various types of subsidized child care
services including, but not limited to, infant care, after-hours
care, and care for children with exceptional needs.
   (4) The city and county's self-sufficiency income level.
   (5) Income eligibility levels for subsidized child care.
   (6) Family fees.
   (7) The cost of providing child care.
   (8) The regional market rates, as established by the department,
for different types of child care.
   (9) The standard reimbursement rate or state per diem for centers
operating under contracts with the department.
   (10) Trends in the county's unemployment rate and housing
affordability index.
   (b) Development of a local policy to eliminate state-imposed
regulatory barriers to the city and county's achievement of its
desired outcomes for subsidized child care.
   (1) The local policy shall do all of the following:
   (A) Prioritize lowest income families first.
   (B) Follow the family fee schedule established pursuant to Section
8273 for those families that are income eligible, as defined by
Section 8263.1.
   (C) Meet local goals that are consistent with the state's child
care goals.
   (D) Identify existing policies that would be affected by the city
and county's child care subsidy plan.
   (E) (i) Authorize any agency that provides child care and
development services in the city and county through a contract with
the department to apply to the department to amend existing contracts
in order to benefit from the local policy once it is adopted.
   (ii) The department shall approve an application to amend an
existing contract if the child care subsidy plan is approved pursuant
to subdivision (b) of Section 8335.3, or modified pursuant to
subdivision (c) of Section 8335.3.
   (iii) The contract of a department contractor who does not elect
to request an amendment to its contract remains operative and
enforceable.
   (2) (A) The city and county shall, by the end of the first fiscal
year of operation under the approved child care subsidy plan,
demonstrate an increase in the aggregate child days of enrollment in
the county as compared to the enrollment in the final quarter of the
2004-05 fiscal year.
   (B) The amount of the increase shall be at least equal to the
aggregate child days of enrollment in the final quarter of the
2004-05 fiscal year for all contracts amended as provided in
subparagraph (E) of paragraph (1), under which the contractor
receives an increase in its reimbursement rate, times 2 percent.
   (C) The amount of the increase shall also be proportional to the
total contract maximum reimbursable amount to reflect the changes in
the budget allocation for each fiscal year of the plan.
   (3) The local policy may supersede state law concerning child care
subsidy programs with regard only to the following factors:
   (A) Eligibility criteria including, but not limited to, age,
family size, time limits, income level, inclusion of former and
current CalWORKs participants, and special needs considerations,
except that the local policy may not deny or reduce eligibility of a
family that qualifies for child care pursuant to Section 8353. Under
the local policy, a family that qualifies for child care pursuant to
Section 8354 shall be treated for purposes of eligibility and fees in
the same manner as a family that qualifies for subsidized child care
on another basis pursuant to the local policy.
   (B) Fees including, but not limited to, family fees, sliding scale
fees, and copayments for those families that are not income
eligible, as defined by Section 8263.1.
   (C) Reimbursement rates.
   (D) Methods of maximizing the efficient use of subsidy funds,
including, but not limited to, multiyear contracting with the
department for center-based child care, and interagency agreements
that allow for flexible and temporary transfer of funds among
agencies.
   (c) Recognition that all funding sources utilized by direct
service contractors that provide child care and development services
in the city and county are eligible to be included in the child care
subsidy plan of the city and county.
   (d) Establishment of measurable outcomes to evaluate the success
of the plan to achieve the city and county's child care goals and to
overcome any barriers identified in the state's child care subsidy
system. The State Department of Social Services shall have an
opportunity to review and comment on the proposed measurable outcomes
before they are submitted to the local child care planning council
for approval pursuant to Section 8335.3.
  SEC. 10.  Section 8335.2 of the Education Code is amended to read:
   8335.2.  To ensure that the annual report required pursuant to
Section 8335.4 provides useful comparative information, the
Legislative Analyst and the Senate Office of Research shall review
the evaluation design, the baseline data, and the data collection
proposed in the child care subsidy plan of the City and County of San
Francisco before the plan is submitted to the local planning council
as defined in subdivision (g) of Section 8499, for approval pursuant
to Section 8335.3.
  SEC. 11.  Section 8335.4 of the Education Code is amended to read:
   8335.4.  (a) Upon approval of the plan by the Child Development
Division of the department, the City and County of San Francisco
shall annually prepare and submit to the Legislature, the State
Department of Social Services, and the department a report that
summarizes the success of the plan and the city and county's ability
to maximize the use of funds and to improve and stabilize child care
in the city and county.
   (b) The City and County of San Francisco shall submit a report to
the Legislature, the State Department of Social Services, and the
department on or before December 31, 2014. The report shall summarize
the impact of the plan on the child care needs of working families
in the city and county, evaluate the pilot project's operation
between the 2011-12 and 2013-14 fiscal years, and provide a
recommendation as to whether the pilot project should continue as a
permanent program.
  SEC. 12.  Section 8335.5 of the Education Code is repealed.
  SEC. 13.  Section 8335.7 of the Education Code is repealed.
  SEC. 14.  Section 8357 of the Education Code is amended to read:
   8357.  (a) The cost of child care services provided under this
article shall be governed by regional market rates. Recipients of
child care services provided pursuant to this article shall be
allowed to choose the child care services of licensed child care
providers or child care providers who are, by law, not required to be
licensed, and the cost of that child care shall be reimbursed by
counties or agencies that contract with the department if the cost is
within the regional market rate. For purposes of this section,
"regional market rate" means care costing no more than 1.5 market
standard deviations above the mean cost of care for that region.
Until October 1, 2015, the regional market rate ceilings shall be
established at the greater of either the 85th percentile of the 2009
regional market rate survey for that region, reduced by 10.11
percent, or the 85th percentile of the 2005 regional market rate
survey for that region. Commencing October 1, 2015, the regional
market rate ceilings shall be established at 104.5 percent of the
greater of either of the following:
   (1) The 85th percentile of the 2009 regional market rate survey
for that region, reduced by 10.11 percent.
   (2) The 85th percentile of the 2005 regional market rate survey
for that region.
   (b) Until October 1, 2015, the reimbursement to license-exempt
child care providers shall not exceed 60 percent of the family child
care home rate established pursuant to subdivision (a), effective
July 1, 2011. Commencing October 1, 2015, reimbursement to
license-exempt child care providers shall not exceed 65 percent of
the family child care home rate established pursuant to subdivision
(a).
   (c) Reimbursement to child care providers shall not exceed the fee
charged to private clients for the same service.
   (d) Reimbursement shall not be made for child care services when
care is provided by parents, legal guardians, or members of the
assistance unit.
   (e) A child care provider located on an Indian reservation or
rancheria and exempted from state licensing requirements shall meet
applicable tribal standards.
   (f) For purposes of this section, "reimbursement" means a direct
payment to the provider of child care services, including
license-exempt providers. If care is provided in the home of the
recipient, payment may be made to the parent as the employer, and the
parent                                           shall be informed
of his or her concomitant legal and financial reporting requirements.
To allow time for the development of the administrative systems
necessary to issue direct payments to providers, for a period not to
exceed six months from the effective date of this article, a county
or an alternative payment agency contracting with the department may
reimburse the cost of child care services through a direct payment to
a recipient of aid rather than to the child care provider.
   (g) Counties and alternative payment programs shall not be bound
by the rate limits described in subdivision (a) when there are, in
the region, no more than two child care providers of the type needed
by the recipient of child care services provided under this article.
   (h) (1) Notwithstanding any other law, reimbursements to child
care providers based upon a daily rate may only be authorized under
either of the following circumstances:
   (A) A family has an unscheduled but documented need of six hours
or more per occurrence, such as the parent's need to work on a
regularly scheduled day off, that exceeds the certified need for
child care.
   (B) A family has a documented need of six hours or more per day
that exceeds no more than 14 days per month. In no event shall
reimbursements to a provider based on the daily rate over one month's
time exceed the provider's equivalent full-time monthly rate or
applicable monthly ceiling.
   (2) This subdivision shall not limit providers from being
reimbursed for services using a weekly or monthly rate, pursuant to
subdivision (c) of Section 8222.
  SEC. 15.  Section 8447 of the Education Code is amended to read:
   8447.  (a) The Legislature hereby finds and declares that greater
efficiencies may be achieved in the execution of state subsidized
child care and development program contracts with public and private
agencies by the timely approval of contract provisions by the
Department of Finance, the Department of General Services, and the
department and by authorizing the department to establish a multiyear
application, contract expenditure, and service review as may be
necessary to provide timely service while preserving audit and
oversight functions to protect the public welfare.
   (b) (1) The Department of Finance and the Department of General
Services shall approve or disapprove annual contract funding terms
and conditions, including both family fee schedules and regional
market rate schedules that are required to be adhered to by contract,
and contract face sheets submitted by the department not more than
30 working days from the date of submission, unless unresolved
conflicts remain between the Department of Finance, the department,
and the Department of General Services. The department shall resolve
conflicts within an additional 30 working day time period. Contracts
and funding terms and conditions shall be issued to child care
contractors no later than June 1. Applications for new child care
funding shall be issued not more than 45 working days after the
effective date of authorized new allocations of child care moneys.
   (2) Notwithstanding paragraph (1), until January 1, 2015, the
State Department of Education shall implement the regional market
rate schedules based upon the county aggregates, as determined by the
Regional Market survey conducted in 2005. Commencing January 1,
2015, the department shall implement the regional market rate
schedules based upon the 85th percentile of county aggregates, as
determined by the Regional Market survey conducted in 2009.
Commencing January 1, 2015, the regional market rate schedule
developed pursuant to this paragraph shall be reduced by 10.11
percent. If a ceiling for a county is less than the ceiling provided
for that county before January 1, 2015, the department shall use the
ceiling from the Regional Market survey conducted in 2005. Commencing
October 1, 2015, the regional market rate ceilings for all counties
shall be increased by 4.5 percent.
   (3) It is the intent of the Legislature to fully fund the third
stage of child care for former CalWORKs recipients.
   (c) With respect to subdivision (b), it is the intent of the
Legislature that the Department of Finance annually review contract
funding terms and conditions for the primary purpose of ensuring
consistency between child care contracts and the child care budget.
This review shall include evaluating any proposed changes to contract
language or other fiscal documents to which the contractor is
required to adhere, including those changes to terms or conditions
that authorize higher reimbursement rates, modify related adjustment
factors, modify administrative or other service allowances, or
diminish fee revenues otherwise available for services, to determine
if the change is necessary or has the potential effect of reducing
the number of full-time equivalent children that may be served.
   (d) Alternative payment child care systems, as set forth in
Article 3 (commencing with Section 8220), shall be subject to the
rates established in the Regional Market Rate Survey of California
Child Care Providers for provider payments. The department shall
contract to conduct and complete a Regional Market Rate Survey no
more frequently than once every two years, consistent with federal
regulations, with a goal of completion by March 1.
   (e) By March 1 of each year, the Department of Finance shall
provide to the department the state median income amount for a
four-person household in California based on the best available data.
The department shall adjust its fee schedule for child care
providers to reflect this updated state median income; however, no
changes based on revisions to the state median income amount shall be
implemented midyear.
   (f) Notwithstanding the June 1 date specified in subdivision (b),
changes to the regional market rate schedules and fee schedules may
be made at any other time to reflect the availability of accurate
data necessary for their completion, provided these documents receive
the approval of the Department of Finance. The Department of Finance
shall review the changes within 30 working days of submission and
the department shall resolve conflicts within an additional 30
working day period. Contractors shall be given adequate notice before
the effective date of the approved schedules. It is the intent of
the Legislature that contracts for services not be delayed by the
timing of the availability of accurate data needed to update these
schedules.
  SEC. 16.  Section 10554 of the Education Code is amended to read:
   10554.  (a) In order for the governing board to carry out its
responsibilities pursuant to this chapter, there is hereby
established the Educational Telecommunication Fund. The Controller
shall establish an account to receive and expend moneys in the fund.
   (b) Moneys in the fund established pursuant to subdivision (a)
shall only be available for expenditure upon appropriation by the
Legislature in the annual Budget Act.
   (c) Moneys in the fund established pursuant to subdivision (a) may
be expended by the governing board to carry out the purposes of this
chapter, including, but not limited to, for the following purposes:
   (1) To support the activities of the team established pursuant to
subdivision (c) of Section 10551.
   (2) To assist the school districts and county superintendents of
schools in purchasing both hardware and software to allow school
districts, county superintendents of schools, and the department to
be linked for school business and administrative purposes. The
governing board shall establish a matching share requirement that
applicant school districts and county superintendents of schools must
fulfill to receive those funds. It is the intent of the Legislature
to encourage the distribution of grants to school districts and
county superintendents of schools to the widest extent possible.
   (3) To provide technical assistance through county offices of
education to school districts in implementing the standards
established pursuant to subdivision (a) of Section 10552.
  SEC. 17.  Section 17070.75 of the Education Code is amended to
read:
   17070.75.  (a) The board shall require the school district to make
all necessary repairs, renewals, and replacements to ensure that a
project is at all times maintained in good repair, working order, and
condition. All costs incurred for this purpose shall be borne by the
school district.
   (b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following before the approval of a project:
   (1) Establish a restricted account within the general fund of the
school district for the exclusive purpose of providing moneys for
ongoing and major maintenance of school buildings, according the
highest priority to funding for the purposes set forth in subdivision
(a). Funds in the account may be used for drought mitigation
purposes related to the implementation of Executive Order B-29-15.
   (2) (A) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the total general fund expenditures of the applicant
school district, including other financing uses, for that fiscal
year.
   (B) Notwithstanding subparagraph (A), for the 2015-16 and 2016-17
fiscal years, the minimum amount required to be deposited into the
account established pursuant to paragraph (1) shall be the lesser of
the following amounts:
   (i) Three percent of the total general fund expenditures for that
fiscal year.
   (ii) The amount that the school district deposited into the
account in the 2014-15 fiscal year.
   (C) Notwithstanding subparagraph (A), for the 2017-18 to 2019-20
fiscal years, inclusive, the minimum amount required to be deposited
into the account established pursuant to paragraph (1) shall be the
greater of the following amounts:
   (i) The lesser of 3 percent of the general fund expenditures for
that fiscal year or the amount that the school district deposited
into the account in the 2014-15 fiscal year.
   (ii) Two percent of the total general fund expenditures of the
applicant school district for that fiscal year.
   (D) A school district contribution to the account may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section. A school district that serves as the
administrative unit for a special education local plan area may elect
to exclude from its total general fund expenditures, for purposes of
this paragraph, the distribution of revenues that are passed through
to participating members of the special education local plan area.
   (E) This paragraph applies only to the following school districts:

   (i) High school districts with an average daily attendance greater
than 300 pupils.
   (ii) Elementary school districts with an average daily attendance
greater than 900 pupils.
   (iii) Unified school districts with an average daily attendance
greater than 1,200 pupils.
   (F) It is the intent of the Legislature that a school district
shall be required to comply with the requirements of subparagraph (A)
in the year in which the local control funding formula is fully
implemented.
   (3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2). The plan may provide that
the school district need not expend all of its annual allocation for
ongoing and major maintenance in the year in which it is deposited if
the cost of major maintenance requires that the allocation be
carried over into another fiscal year. However, any state funds
carried over into a subsequent year may not be counted toward the
annual minimum contribution by the school district.
   (c) A school district to which paragraph (2) of subdivision (b)
does not apply shall certify to the board that it can reasonably
maintain its facilities with a lesser level of maintenance.
   (d) For purposes of calculating a county office of education
requirement pursuant to this section, the applicable maintenance
requirement specified in paragraph (2) of subdivision (b) shall be
based upon the county office of education general fund less any
restricted accounts.
   (e) (1) This subdivision shall only apply to a school district
that received funds pursuant to this chapter equal to or greater than
10 percent of the State School Facilities Funds of 1998, 2002, 2004,
and 2006.
   (2) Notwithstanding subparagraphs (B) and (C) of paragraph (2) of
subdivision (b), a school district shall comply with the requirements
of subparagraph (A) of paragraph (2) of subdivision (b) if the
amount available in any fiscal year for the public school system
pursuant to Section 8 of Article XVI of the California Constitution
is equal to or greater than the amount available in the prior fiscal
year, unless a school district has locally negotiated an alternative
minimum annual deposit percentage in a collective bargaining
agreement with the representatives of the school district's skilled
crafts employees.
   (3) Under no circumstances shall a school district deposit less
than the amounts required in subparagraphs (B) and (C) of paragraph
(2) of subdivision (b).
   (4) This subdivision shall be operative from July 1, 2015, until
June 30, 2020.
   (f) As a condition of participation in the school facilities
program or the receipt of funds pursuant to Section 17582, for a
fiscal year after the 2004-05 fiscal year, a school district shall
establish a facilities inspection system to ensure that each of its
schools is maintained in good repair.
   (g) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.
  SEC. 18.  Section 41202 of the Education Code is amended to read:
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college
districts shall not be considered to be "moneys to be applied by the
State."
   (b) "General Fund revenues which may be appropriated pursuant to
Article XIII B," as used in paragraph (1) of subdivision (b) of
Section 8 of Article XVI of the California Constitution, means
General Fund revenues that are the proceeds of taxes as defined by
subdivision (c) of Section 8 of Article XIII B of the California
Constitution, including, for the 1986-87 fiscal year only, any
revenues that are determined to be in excess of the appropriations
limit established pursuant to Article XIII B of the California
Constitution for the fiscal year in which they are received. General
Fund revenues for a fiscal year to which paragraph (1) of subdivision
(b) of Section 8 of Article XVI of the California Constitution is
being applied shall include, in that computation, only General Fund
revenues for that fiscal year that are the proceeds of taxes, as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, and shall not include prior fiscal year
revenues. Commencing with the 1995-96 fiscal year, and each fiscal
year thereafter, "General Fund revenues that are the proceeds of
taxes," as defined in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, includes any portion of the proceeds
of taxes received from the state sales tax that are transferred to
the counties pursuant to, and only if, legislation is enacted during
the 1995-96 fiscal year the purpose of which is to realign children's
programs. The amount of the proceeds of taxes shall be computed for
any fiscal year in a manner consistent with the manner in which the
amount of the proceeds of taxes was computed by the Department of
Finance for purposes of the Governor's Budget for the Budget Act of
1986 (Chapter 186 of the Statutes of 1986).
   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent, to the Controller, or to any
other fund or state agency for the purpose of allocation to school
districts. The full amount of any appropriation shall be included in
the calculation of the percentage required by paragraph (1) of
subdivision (b) of Article XVI of the California Constitution,
without regard to any unexpended balance of any appropriation. Any
reappropriation of funds appropriated in any prior year shall not be
included in the sum of appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI of the California Constitution, without regard to any
unexpended balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent, to the
Chancellor of the California Community Colleges, or to any other fund
or state agency for the purpose of allocation to school districts
and community college districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, without regard to any unexpended
balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for
part-day California state preschool programs under Article 7
(commencing with Section 8235) of Chapter 2 of Part 6 of Division 1
of Title 1, funds appropriated to local educational agencies, as
defined in subdivision (ak) of Section 8208, to create a full day of
care for children participating in the California state preschool
program, and funds appropriated for the After School Education and
Safety Program established pursuant to Article 22.5 (commencing with
Section 8482) of Chapter 2 of Part 6 of Division 1 of Title 1, and
shall not include any of the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district, regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for part-day California state preschool programs
under Article 7 (commencing with Section 8235) of Chapter 2 of Part
6 of Division 1 of Title 1, to create a full day of care for children
participating in the California state preschool program, or for the
After School Education and Safety Program established pursuant to
Article 22.5 (commencing with Section 8482) of Chapter 2 of Part 6 of
Division 1 of Title 1.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (4) With the exception of the programs identified in paragraph
(1), commencing with the 2011-12 fiscal year, any funds appropriated
for the Child Care and Development Services Act, pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision (j) of Section 42238.02, that are used
to offset state aid for school districts in calculations performed
pursuant to Sections 2558 and 42238 and Chapter 7.2 (commencing with
Section 56836) of Part 30.
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college districts. In no event shall the revenues or receipts derived
from student fees be considered "allocated local proceeds of taxes."

   (i) For purposes of calculating the 4-percent entitlement pursuant
to subdivision (a) of Section 8.5 of Article XVI of the California
Constitution, "the total amount required pursuant to Section 8(b)"
shall mean the General Fund aid required for schools pursuant to
subdivision (b) of Section 8 of Article XVI of the California
Constitution, and shall not include allocated local proceeds of
taxes.
   (j) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes.
  SEC. 19.  Section 41203.1 of the Education Code is amended to read:

   41203.1.  (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for purposes of this
section, school districts, community college districts, and direct
elementary and secondary level instructional services provided by the
State of California shall be regarded as separate segments of public
education, and each of these three segments of public education
shall be entitled to receive respective shares of the amount
calculated pursuant to Section 41203 as though the calculation made
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution were to be applied separately to each segment
and the base year for purposes of this calculation under paragraph
(1) of subdivision (b) of Section 8 of Article XVI of the California
Constitution were based on the 1989-90 fiscal year. Calculations made
pursuant to this subdivision shall be made so that each segment of
public education is entitled to the greater of the amounts calculated
for that segment pursuant to paragraph (1) or (2) of subdivision (b)
of Section 8 of Article XVI of the California Constitution.
   (b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
   (c) Notwithstanding any other law, this section does not apply to
the 1992-93 to the 2015-16 fiscal years, inclusive.
  SEC. 20.  Section 41207.3 of the Education Code, as amended by
Section 24 of Chapter 32 of the Statutes of 2014, is amended to read:

   41207.3.  (a) Notwithstanding Section 41206, the minimum state
educational funding obligation for school districts and community
college districts pursuant to subdivision (b) of Section 8 of Article
XVI of the California Constitution is determined to be the
following:
   (1) Fifty-three billion three hundred forty-five million four
hundred twenty thousand dollars ($53,345,420,000) for the 2005-06
fiscal year, with an outstanding balance of one billion one hundred
ten million five hundred sixteen thousand dollars ($1,110,516,000).
The outstanding balance is appropriated and allocated pursuant to
Article 3.7 (commencing with Section 52055.700) of Chapter 6.1 of
Part 28 of Division 4.
   (2) Fifty-five billion two hundred fifty-one million two hundred
sixty-six thousand dollars ($55,251,266,000) for the 2006-07 fiscal
year, with an outstanding balance of two hundred eleven million five
hundred thirty-three thousand dollars ($211,533,000). The outstanding
balance is appropriated and allocated pursuant to Section 41207.41.
   (3) Fifty-six billion five hundred seventy-seven million four
hundred ninety-one thousand dollars ($56,577,491,000) for the 2007-08
fiscal year, with no outstanding balance.
   (b) (1) The amount determined pursuant to paragraph (1) of
subdivision (a) shall be deemed certified for purposes of Section
41206 when the conditions set forth in subdivision (c) of Section
41207.1 are met.

          (2) The amount determined pursuant to paragraph (2) of
subdivision (a) shall be deemed certified for purposes of Section
41206 upon appropriation of the full amount of the outstanding
balance determined for that year.
   (3) The amount determined pursuant to paragraph (3) of subdivision
(a) is deemed to be certified for purposes of Section 41206 upon
enactment of this section.
  SEC. 21.  Section 41207.41 is added to the Education Code, to read:

   41207.41.  (a) The sum of two hundred fifty-six million dollars
($256,000,000) is hereby appropriated from the General Fund to the
Controller for allocation to school districts and community college
districts for the purpose of offsetting the 2006-07 fiscal year and
2009-10 fiscal year outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to Section 8 of Article XVI of the California Constitution.
   (1) The amount appropriated pursuant to this subdivision shall be
allocated to school districts and community college districts, as
described in subdivision (a) of Section 41203.1, in accordance with
the following:
   (A) Eighty-two million four hundred sixty-seven thousand dollars
($82,467,000) for transfer by the Controller to Section A of the
State Schools Fund for allocation by the Superintendent pursuant to
this section.
   (B) Twenty-seven million nine hundred eighty-one thousand dollars
($27,981,000) for transfer by the Controller to Section B of the
State School Fund for allocation by the Chancellor of the California
Community Colleges to community colleges districts pursuant to this
section.
   (C) One hundred forty-five million five hundred fifty-two thousand
dollars ($145,552,000) for transfer by the Controller to the School
Facilities Emergency Repair Account pursuant to Section 17592.71.
   (2) The amount allocated to school districts pursuant to
subparagraph (A) of paragraph (1) shall be distributed on the basis
of an equal amount per unit of regular average daily attendance, as
those average daily attendance numbers are reported at the time of
the second principal apportionment for the 2014-15 fiscal year.
   (3) The amount allocated to community college districts pursuant
to this subdivision shall be distributed on the basis of an equal
amount per enrolled full-time equivalent student, as those numbers of
students are reported at the time of the second principal
apportionment for the 2014-15 fiscal year.
   (4) For purposes of this subdivision a school district includes a
county office of education and a charter school.
   (b) For purposes of Section 8 of Article XVI of the California
Constitution, the amounts appropriated and allocated pursuant to this
section shall be applied to the outstanding balance of the minimum
funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution, and shall be deemed to be appropriations made and
allocated in that fiscal year in which the deficiencies resulting in
the outstanding balance were incurred in accordance with the
following:
   (1) Two hundred eleven million five hundred thirty-three thousand
dollars ($211,533,000) in payment of the outstanding balance of the
minimum funding obligation for the 2006-07 fiscal year.
   (2) Forty-four million four hundred sixty-seven thousand dollars
($44,467,000) in payment of the outstanding balance of the minimum
funding obligation for the 2009-10 fiscal year.
   (c) Funding received by school districts and community college
districts pursuant to subparagraphs (A) and (B) of paragraph (1) of
subdivision (a) shall first be deemed to be paid in satisfaction of
any outstanding claims pursuant to Section 6 of Article XIII B of the
California Constitution for reimbursement of state-mandated local
costs for any fiscal year. Notwithstanding Section 12419.5 of the
Government Code and any amounts that are deemed, pursuant to this
subdivision, to be paid in satisfaction of outstanding claims for
reimbursement of state-mandated local costs, the Controller may audit
any claim as allowed by law and may recover any amount owed by
school districts and community college districts pursuant to an audit
only by reducing amounts owed for any other mandate claims. Under no
circumstances shall a school district or community college district
be required to remit funding back to the state to pay for disallowed
costs identified by a Controller audit of claimed reimbursable
state-mandated local program costs. The Controller shall not recover
any amount owed by a school district or community college district
pursuant to an audit of claimed reimbursable state-mandated local
program costs by reducing any amount owed a school district or
community college district for any purpose other than amounts owed
for any other mandate claims. The Controller shall apply amounts
received by each school district or community college district
against any balances of unpaid claims for reimbursement of
state-mandated local costs and interest in chronological order
beginning with the earliest claim. The Controller shall report to
each school district and community college district the amounts of
any claims and interest that are offset from funds provided pursuant
to this section and shall report a summary of the amounts offset for
each mandate for each fiscal year to the Department of Finance and
the fiscal committees of the Legislature.
   (d) (1) The governing board of a school district or community
college district may expend the one-time funds received pursuant to
subparagraphs (A) and (B) of paragraph (1) of subdivision (a) for any
purpose, as determined by the governing board.
   (2) It is the intent of the Legislature that school districts will
prioritize the use of these one-time funds for professional
development, induction for beginning teachers with a focus on
relevant mentoring, instructional materials, technology
infrastructure, and any other investments necessary to support
implementation of the common core standards in English language arts
and mathematics, the implementation of English language development
standards, and the implementation of the Next Generation Science
standards.
  SEC. 22.  Section 41976 of the Education Code is amended to read:
   41976.  (a) For purposes of this chapter, the following classes
and courses are authorized to be offered by school districts and
county superintendents of schools for apportionment purposes from the
adult education fund:
   (1) Adult programs in parenting, including parent cooperative
preschools, and classes in child growth and development, parent-child
relationships, and parenting.
   (2) Adult programs in elementary and secondary basic skills and
other courses and classes required for the high school diploma.
Apportionments for these courses and classes may only be generated by
students who do not possess a high school diploma, except for
remedial academic courses or classes in reading, mathematics, and
language arts.
   (3) Adult education programs in English as a second language.
   (4) Adult education programs for immigrants eligible for
educational services in citizenship, English as a second language,
and workforce preparation classes in the basic skills of speaking,
listening, reading, writing, mathematics, decisionmaking and problem
solving skills, and other classes required for preparation to
participate in job specific technical training.
   (5) Adult education programs for adults with disabilities.
   (6) Adult short-term career technical education programs with high
employment potential. Any reference to "vocational" education or
programs in adult education means "career technical" education or
programs in adult education.
   (7) Adult programs for older adults.
   (8) Programs offering pre-apprenticeship training activities
conducted in coordination with one or more apprenticeship programs
approved by the Division of Apprenticeship Standards for the
occupation and geographic area.
   (9) Adult programs in home economics.
   (10) Adult programs in health and safety education.
   (b) No state apportionment shall be made for any course or class
that is not set forth in subdivision (a).
  SEC. 23.  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 school 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, facility
reconstruction, facility remodeling, maintenance, or deferred
maintenance, and 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. 24.  Section 42238.02 of the Education Code is amended to
read:
   42238.02.  (a) The amount computed pursuant to this section shall
be known as the school district and charter school local control
funding formula.
   (b) (1) For purposes of this section "unduplicated pupil" means a
pupil enrolled in a school district or a charter school who is either
classified as an English learner, eligible for a free or
reduced-price meal, or is a foster youth. A pupil shall be counted
only once for purposes of this section if any of the following apply:

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

   (B) For purposes of this paragraph and subparagraph (A) of
paragraph (1) of subdivision (f) of Section 42238.03, a charter
school shall report its physical location to the department under
timeframes established by the department. For a charter school
authorized by a school district, the department shall include the
authorizing school district in the department's determination of
physical location. For a charter school authorized on appeal pursuant
to subdivision (j) of Section 47605, the department shall include
the sponsoring school district in the department's determination of
physical location. The reported physical location of the charter
school shall be considered final as of the second principal
apportionment for that fiscal year. For purposes of this paragraph,
the percentage of unduplicated pupils of the school district
associated with the charter school pursuant to subparagraph (A) shall
be considered final as of the second principal apportionment for
that fiscal year.
   (g) The Superintendent shall compute an add-on to the total sum of
a school district's or charter school's base, supplemental, and
concentration grants equal to the amount of funding a school district
or charter school received from funds allocated pursuant to the
Targeted Instructional Improvement Block Grant program, as set forth
in Article 6 (commencing with Section 41540) of Chapter 3.2, for the
2012-13 fiscal year, as that article read on January 1, 2013. A
school district or charter school shall not receive a total funding
amount from this add-on greater than the total amount of funding
received by the school district or charter school from that program
in the 2012-13 fiscal year. The amount computed pursuant to this
subdivision shall reflect the reduction specified in paragraph (2) of
subdivision (a) of Section 42238.03.
   (h) (1) 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), as those articles
read on January 1, 2013, for the 2012-13 fiscal year. A school
district or charter school shall not receive a total funding amount
from this add-on greater than the total amount received by the school
district or charter school for those programs in the 2012-13 fiscal
year. The amount computed pursuant to this subdivision shall reflect
the reduction specified in paragraph (2) of subdivision (a) of
Section 42238.03.
   (2) If a home-to-school transportation joint powers agency,
established pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation, received an apportionment
directly from the Superintendent from any of the funding sources
specified in paragraph (1) for the 2012-13 fiscal year, the joint
powers agency may identify the member local educational agencies and
transfer entitlement to that funding to any of those member local
educational agencies by reporting to the Superintendent, on or before
September 30, 2015, the reassignment of a specified amount of the
joint powers agency's 2012-13 fiscal year entitlement to the member
local educational agency. Commencing with the 2015-16 fiscal year,
the Superintendent shall compute an add-on to the total sum of a
school district's or charter school's base, supplemental, and
concentrations grants equal to the amount of the entitlement to
funding transferred by the joint powers agency to the member school
district or charter school.
   (i) (1) The sum of the local control funding formula rates
computed pursuant to subdivisions (c) to (f), inclusive, shall be
multiplied by:
   (A) For school districts, the average daily attendance of the
school district in the corresponding grade level ranges computed
pursuant to Section 42238.05, excluding the average daily attendance
computed pursuant to paragraph (2) of subdivision (a) of Section
42238.05 for purposes of the computation specified in subdivision
(d).
   (B) For charter schools, the total current year average daily
attendance in the corresponding grade level ranges.
   (2) The amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed pursuant to
paragraphs (1) to (4), inclusive, of subdivision (d), as multiplied
by subparagraph (A) or (B) of paragraph (1), as appropriate.
   (j) The Superintendent shall adjust the sum of each school
district's or charter school's amount determined in subdivisions (g)
to (i), inclusive, pursuant to the calculation specified in Section
42238.03, less the sum of the following:
   (1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
   (B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
   (7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
   (k) A school district shall annually transfer to each of its
charter schools funding in lieu of property taxes pursuant to Section
47635.
   (  l  ) (1) Nothing in this section shall be interpreted
to authorize a school district that receives funding on behalf of a
charter school pursuant to Section 47651 to redirect this funding for
another purpose unless otherwise authorized in law pursuant to
paragraph (2) or pursuant to an agreement between the charter school
and its chartering authority.
   (2) A school district that received funding on behalf of a locally
funded charter school in the 2012-13 fiscal year pursuant to
paragraph (2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on
January 1, 2013, or a school district that was required to pass
through funding to a conversion charter school in the 2012-13 fiscal
year pursuant to paragraph (2) of subdivision (b) of Section 42606,
as that section read on January 1, 2013, may annually redirect for
another purpose a percentage of the amount of the funding received on
behalf of that charter school. The percentage of funding that may be
redirected shall be determined pursuant to the following
computation:
   (A) (i) Determine the sum of the need fulfilled for that charter
school pursuant to paragraph (3) of subdivision (b) of Section
42238.03 in the then current fiscal year for the charter school.
   (ii) Determine the sum of the need fulfilled in every fiscal year
before the then current fiscal year pursuant to paragraph (3) of
subdivision (b) of Section 42238.03 adjusted for changes in average
daily attendance pursuant to paragraph (3) of subdivision (a) of
Section 42238.03 for the charter school.
   (iii) Subtract the amount computed pursuant to paragraphs (1) to
(3), inclusive, of subdivision (a) of Section 42238.03 from the
amount computed for that charter school under the local control
funding formula entitlement computed pursuant to subdivision (i) of
this section.
   (iv) Compute a percentage by dividing the sum of the amounts
computed to clauses (i) and (ii) by the amount computed pursuant to
clause (iii).
   (B) Multiply the percentage computed pursuant to subparagraph (A)
by the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013.
   (C) The maximum amount that may be redirected shall be the lesser
of the amount of funding the school district received on behalf of
the charter school in the 2012-13 fiscal year pursuant to paragraph
(2) of subdivision (b) of Section 42605, Section 42606, and
subdivision (b) of Section 47634.1, as those sections read on January
1, 2013, or the amount computed pursuant to subparagraph (B).
   (3) Commencing with the 2013-14 fiscal year, a school district
operating one or more affiliated charter schools shall provide each
affiliated charter school schoolsite with no less than the amount of
funding the schoolsite received pursuant to the charter school block
grant in the 2012-13 fiscal year.
   (m) Any calculations in law that are used for purposes of
determining if a local educational agency is an excess tax school
entity or basic aid school district, including, but not limited to,
this section and Sections 42238.03, 41544, 47632, 47660, 47663,
48310, and 48359.5, and Section 95 of the Revenue and Taxation Code,
shall be made exclusive of the revenue received pursuant to
subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of
Article XIII of the California Constitution.
   (n) The funds apportioned pursuant to this section and Section
42238.03 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of Chapter
6.1 of Part 28 of Division 4.
   (o) A school district that does not receive an apportionment of
state funds pursuant to this section, as implemented pursuant to
Section 42238.03, excluding funds apportioned pursuant to the
requirements of subparagraph (A) of paragraph (2) of subdivision (e)
of Section 42238.03, shall be considered a "basic aid school district"
or an "excess tax entity."
  SEC. 25.  Section 42238.03 of the Education Code is amended to
read:
   42238.03.  (a) Commencing with the 2013-14 fiscal year and each
fiscal year thereafter, the Superintendent shall calculate a base
entitlement for the transition to the local control funding formula
for each school district and charter school equal to the sum of the
amounts computed pursuant to paragraphs (1) to (4), inclusive. The
amounts computed pursuant to paragraphs (1) to (4), inclusive, shall
be continuously appropriated pursuant to Section 14002.
   (1) The current fiscal year base entitlement funding level shall
be the sum of all of the following:
   (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district's
2012-13 fiscal year revenue limit funding shall exclude amounts
computed pursuant to Article 4 (commencing with Section 42280). For
purposes of this subparagraph, 2012-13 fiscal year average daily
attendance and 2012-13 fiscal year revenue limits shall be considered
final as of the annual apportionment for the 2012-13 fiscal year, as
calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.
   (B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the amount of in-lieu property
tax provided to the charter school pursuant to Section 47635, as that
section read on June 30, 2013, divided by the 2012-13 average daily
attendance of the charter school computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the charter school computed pursuant
to Section 42238.05. For purposes of this subparagraph, 2012-13
fiscal year average daily attendance and 2012-13 fiscal year general
purpose funding, as computed pursuant to Article 2 (commencing with
Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, shall be considered final as of the
annual apportionment for the 2012-13 fiscal year, as calculated for
purposes of the certification required on or before February 20,
2014, pursuant to Sections 41332 and 41339.
   (ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
   (C) The amount computed pursuant to subparagraph (A) shall exclude
funds received pursuant to Section 47633, as that section read on
January 1, 2013.
   (D) For school districts, funding for qualifying necessary small
high school and necessary small elementary schools shall be adjusted
to reflect the funding levels that correspond to the 2012-13
necessary small high school and necessary small elementary school
allowances pursuant to Article 4 (commencing with Section 42280) and
former Section 42238.146, as those provisions read on January 1,
2013.
   (2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001, and
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to former Chapter 6.10 (commencing with
Section 52120) of Part 28 of Division 4, as it read on January 1,
2013, and 2012-13 fiscal year funding for pupils enrolled in
community day schools who are mandatorily expelled pursuant to
subdivision (d) of Section 48915. The entitlement for basic aid
school districts shall include the reduction of 8.92 percent as
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 89 of Chapter 38 of the Statutes of 2012. For purposes
of this subparagraph, 2012-13 fiscal year entitlements shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339.
   (B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health and
Safety Code, before the application of the 8.92-percent reduction
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 3 of Chapter 2 of the Statutes of 2012.
   (3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant to
Section 42238.05. That quotient shall be multiplied by the current
fiscal year average daily attendance of the charter school computed
pursuant to Section 42238.05.
   (4) The amount allocated to a school district or charter school
pursuant to paragraph (3) of subdivision (b) for the fiscal years
before the current fiscal year divided by the average daily
attendance of the school district or charter school for the fiscal
years before the current fiscal year computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the school district or charter
school computed pursuant to Section 42238.05. For purposes of this
paragraph, the amount allocated pursuant to paragraph (3) of
subdivision (b) for the fiscal years before the current fiscal year,
and the average daily attendance of the school district or charter
school for the fiscal years before the current fiscal year, as
computed pursuant to Section 42238.05, shall be considered final as
of the third recertification of the annual apportionment.
   (5) (A) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code for purposes of providing instruction to
secondary pupils shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the regional occupational center or program joint powers
agency and the contracting school district.
   (B) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing instruction to pupils enrolled in grades 9 to 12,
inclusive, received, in the 2012-13 fiscal year, an apportionment of
funds directly from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.
   (6) (A) (i) For the 2013-14 and 2014-15 fiscal years only, a
school district that, in the 2012-13 fiscal year, from any of the
funding sources identified in paragraph (1) or (2), received funds on
behalf of, or provided funds to, a home-to-school transportation
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code for purposes of providing pupil transportation
shall not redirect that funding for another purpose unless otherwise
authorized in law or pursuant to an agreement between the
home-to-school transportation joint powers agency and the contracting
school district.
   (ii) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of Chapter 5
of Division 7 of Title 1 of the Government Code for purposes of
providing pupil transportation received, in the 2012-13 fiscal year,
an apportionment of funds directly from the Superintendent from any
of the funding sources identified in subparagraph (A) of paragraph
(2) of subdivision (a), the Superintendent shall apportion that same
amount to the home-to-school transportation joint powers agency.
   (iii) If a home-to-school transportation joint powers agency,
established pursuant to Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation, received an apportionment
directly from the Superintendent from any of the funding sources
specified in subparagraph (A) of paragraph (2) of subdivision (a) for
the 2012-13 fiscal year, the joint powers agency may identify the
member local educational agencies and transfer entitlement to that
funding to any of those member local educational agencies by
reporting to the Superintendent, on or before September 30, 2015, the
reassignment of a specified amount of the joint powers agency's
2012-13 fiscal year entitlement to the member local educational
agency. Commencing with the 2015-16 fiscal year, the Superintendent
shall add the reassigned amounts to the amounts calculated pursuant
to subparagraph (A) of paragraph (2) of subdivision (a).
   (B) In addition to subparagraph (A), of the funds a school
district receives for home-to-school transportation programs the
school district shall expend, pursuant to 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) of Chapter 7 of Part 24
of Division 3 of Title 2, as those articles read on January 1, 2013,
no less for those programs than the amount of funds the school
district expended for home-to-school transportation in the 2012-13
fiscal year.
   (7) For the 2013-14 and 2014-15 fiscal years only, of the funds a
school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district expended
for purposes of regional occupational centers or programs, or adult
education, respectively, in the 2012-13 fiscal year. For purposes of
this paragraph, a school district may include expenditures made by
its county office of education within the school district for
purposes of regional occupational centers or programs so long as the
total amount of expenditures by the school district and the county
office of education equal or exceed the total amount required to be
expended for purposes of regional occupational centers or programs
pursuant to this paragraph and paragraph (3) of subdivision (k) of
Section 2575.
   (8) For the 2013-14 and 2014-15 fiscal years only, and for
purposes of ensuring the continuity of essential induction and
training services for beginning teachers, the Alameda County
Superintendent of Schools shall withhold five hundred eighty-one
thousand five hundred forty dollars ($581,540) from the local control
funding formula apportionments of the Newark Unified School
District, and from those withheld funds shall allocate the following
amounts to the following entities:
   (A) One hundred forty-seven thousand nine hundred twenty dollars
($147,920) to the Alameda Unified School District.
   (B) One hundred four thousand dollars ($104,000) to the San
Leandro Unified School District.
   (C) One hundred sixty-four thousand six hundred twenty dollars
($164,620) to the Berkeley Unified School District.

        (D) One hundred sixty-five thousand dollars ($165,000) to the
San Lorenzo Unified School District.
   (b) Compute an annual local control funding formula transition
adjustment for each school district and charter school as follows:
   (1) Subtract the amount computed pursuant to paragraphs (1) to
(4), inclusive, of subdivision (a) from the amount computed for each
school district or charter school under the local control funding
formula entitlements computed pursuant to Section 42238.02. School
districts and charter schools with a negative difference shall be
deemed to have a zero difference.
   (2) Each school district's and charter school's total need, as
calculated pursuant to paragraph (1), shall be divided by the sum of
all school districts' and charter schools' total need to determine
the school district's or charter school's respective proportions of
total need.
   (3) (A) Each school district's and charter school's proportion of
total need shall be multiplied by any available appropriations
specifically made for purposes of this subdivision, and added to the
school district's or charter school's funding amounts as calculated
pursuant to subdivision (a).
   (B) For purposes of subparagraph (A), the proportion of total need
that is funded from any available appropriations specifically made
for purposes of this subdivision for a fiscal year shall be
considered fixed as of the second principal apportionment for that
fiscal year. Adjustments to a school district's or charter school's
total need, as computed pursuant to paragraph (1), subsequent to the
second principal apportionment for a fiscal year, shall be funded
based on the fixed proportion of total need that is funded for that
fiscal year pursuant to this subdivision and shall be continuously
appropriated pursuant to Section 14002.
   (4) If the total amount of funds appropriated for purposes of
paragraph (3) pursuant to this subdivision are sufficient to fully
fund any positive amounts computed pursuant to paragraph (1), the
local control funding formula grant computed pursuant to subdivision
(c) of Section 42238.02 shall be adjusted to ensure that any
available appropriation authority is expended for purposes of the
local control funding formula.
   (5) Commencing with the first fiscal year after either paragraph
(4) of this subdivision or paragraph (2) of subdivision (g) applies,
the adjustments in paragraph (2) of subdivision (d) of Section
42238.02 shall be made only if an appropriation for those adjustments
is included in the annual Budget Act.
   (c) The Superintendent shall subtract from the amounts computed
pursuant to subdivisions (a) and (b) the sum of the following:
   (1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.
   (B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), less any amount received pursuant
to Section 33401 or 33676 of the Health and Safety Code that is used
for land acquisition, facility construction, reconstruction, or
remodeling, or deferred maintenance and that is not an amount
received pursuant to Section 33492.15, or paragraph (4) of
subdivision (a) of Section 33607.5, or Section 33607.7 of the Health
and Safety Code that is allocated exclusively for educational
facilities.
   (7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety Code.
   (8) Revenue received pursuant to subparagraph (B) of paragraph (3)
of subdivision (e) of Section 36 of Article XIII of the California
Constitution.
   (d) A school district or charter school that has a zero difference
pursuant to paragraph (1) of subdivision (b) in the prior fiscal
year shall receive an entitlement equal to the amount calculated
pursuant to Section 42238.02 in the current fiscal year and future
fiscal years.
   (e) Notwithstanding paragraph (2) of subdivision (g), or the
computations pursuant to subdivisions (b) to (d), inclusive, and
Section 42238.02, commencing with the 2013-14 fiscal year, a school
district or charter school shall receive state-aid funding of no less
than the sum of the amounts computed pursuant to paragraphs (1) to
(3), inclusive.
   (1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied by
the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district's
2012-13 revenue limit funding shall exclude amounts computed pursuant
to Article 4 (commencing with Section 42280). For purposes of this
subparagraph, 2012-13 fiscal year average daily attendance and
2012-13 fiscal year revenue limits shall be considered final as of
the annual apportionment for the 2012-13 fiscal year, as calculated
for purposes of the certification required on or before February 20,
2014, pursuant to Sections 41332 and 41339.
   (B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2 (commencing
with Section 47633) of Chapter 6 of Part 26.8 of Division 4, as that
article read on January 1, 2013, and the amount of in-lieu property
tax provided to the charter school in the 2012-13 fiscal year
pursuant to Section 47635, as that section read on January 1, 2013,
divided by the 2012-13 average daily attendance of the charter school
computed pursuant to Section 42238.05. That quotient shall be
multiplied by the current fiscal year average daily attendance of the
charter school computed pursuant to Section 42238.05. For purposes
of this subparagraph, 2012-13 fiscal year average daily attendance
and 2012-13 fiscal year general purpose funding, as computed pursuant
to Article 2 (commencing with Section 47633) of Chapter 6 of Part
26.8 of Division 4, as that article read on January 1, 2013, shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339.
   (ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1, as
that section read on January 1, 2013.
   (C) The amount computed pursuant to subparagraph (A) shall exclude
funds received pursuant to Section 47633, as that section read on
January 1, 2013.
   (D) For school districts, the 2012-13 funding allowance provided
for qualifying necessary small high schools and necessary small
elementary schools pursuant to Article 4 (commencing with Section
42280) and Section 42238.146, as those provisions read on January 1,
2013.
   (E) The amount computed pursuant to subparagraphs (A) to (D),
inclusive, shall be reduced by the sum of the amount computed
pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).
   (2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-267-0001, 6110-268-0001, and
6360-101-0001, 2012-13 fiscal year funding for the Class Size
Reduction Program pursuant to former Chapter 6.10 (commencing with
Section 52120) of Part 28 of Division 4, as it read on January 1,
2013, and 2012-13 fiscal year funding for pupils enrolled in
community day schools who are mandatorily expelled pursuant to
subdivision (d) of Section 48915. The entitlement for basic aid
school districts shall include the reduction of 8.92 percent as
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 89 of Chapter 38 of the Statutes of 2012. For purposes
of this subparagraph, 2012-13 fiscal year entitlements shall be
considered final as of the annual apportionment for the 2012-13
fiscal year, as calculated for purposes of the certification required
on or before February 20, 2014, pursuant to Sections 41332 and
41339.
   (B) Commencing with the 2014-15 fiscal year, the entitlements
identified in subparagraph (A) shall be adjusted to reflect the
exclusion of one-time redevelopment agency liquid asset recovery
revenue, pursuant to Section 34179.5 and following, of the Health and
Safety Code, before the application of the 8.92-percent reduction
applied pursuant to subparagraph (A) of paragraph (1) of subdivision
(a) of Section 3 of Chapter 2 of the Statutes of 2012.
   (C) The Superintendent shall annually apportion any entitlement
provided to the state special schools from the items specified in
subparagraph (A) to the state special schools in the same amount as
the state special schools received from those items in the 2012-13
fiscal year.
   (D) Commencing with the 2015-16 fiscal year, any portion of
funding transferred to a school district or charter school by a joint
powers agency pursuant to clause (iii) of subparagraph (A) of
paragraph (6) of subdivision (a) shall be deemed to be included in
the entitlements specified in subparagraph (A) for the school
district or charter school.
   (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
funding amount per unit of average daily attendance equal to the
lesser of:
   (A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement,
calculated pursuant to subdivisions (a) and (b), received by that
school district in the prior year by prior year funded average daily
attendance of that school district. For purposes of this
subparagraph, a charter school that is physically located in more
than one school district shall use the calculated local control
funding entitlement per unit of average daily attendance of the
school district with the highest prior year funding amount per unit
of average daily attendance. For purposes of this subparagraph, the
prior year funding amount per unit of average daily attendance for
the school district in which the charter school is physically located
shall be considered final as of the second principal apportionment
of the prior fiscal year.
   (B) The charter school's local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.
   (2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school's local control funding formula target.
   (3) Upon a determination that all school districts and charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02, as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02 in
that fiscal year and future fiscal years.
   (4) For purposes of this subdivision, the determination of a
charter school's physical location shall be considered final as of
the second principal apportionment for the applicable fiscal year.
   (g) (1) In each fiscal year the Superintendent shall determine the
percentage of school districts that are apportioned funding pursuant
to this section that is less than the amount computed pursuant to
Section 42238.02 as of the second principal apportionments of the
fiscal year. If the percentage is less than 10 percent, the
Superintendent shall apportion funding to school districts and
charter schools equal to the amount computed pursuant to Section
42238.02 in that fiscal year.
   (2) For each fiscal year thereafter, the Superintendent shall
apportion funding to a school district and charter school equal to
the amount computed pursuant to Section 42238.02.
  SEC. 26.  Section 44235 of the Education Code is amended to read:
   44235.  (a) Fees shall be levied by the commission for the
issuance and renewal of teaching and service credentials. Commencing
January 1, 1987, the fee for the issuance and renewal of teaching and
service credentials shall be fifty dollars ($50). In subsequent
years, the commission may set a different fee, but in no case shall a
fee exceed one hundred dollars ($100) without express legislative
approval.
   (b) A single fee, not to exceed the charge for a single
supplemental credential, shall be charged for all supplemental
credentials applied for at the same time as a teaching or service
credential pursuant to subdivision (a).
   (c) Subject to funds being appropriated expressly for this purpose
in the annual Budget Act, fees authorized by this section shall be
waived by the commission for first-time teaching credential
applicants for the following credentials:
   (1) Single subject credential.
   (2) Multiple subject credential.
   (3) Special education credential.
   (4) Specialist instruction credential.
   (d) Annually, as part of the budget review process, the Department
of Finance shall recommend to the Legislature an appropriate
credential fee sufficient to generate revenues necessary to support
the operating budget of the commission plus a prudent reserve, as
determined by the Department of Finance pursuant to subdivision (b)
of Section 44234.
  SEC. 27.  Section 47614.5 of the Education Code is amended to read:

   47614.5.  (a) The Charter School Facility Grant Program is hereby
established, and shall be administered by the California School
Finance Authority. The grant program is intended to provide
assistance with facilities rent and lease costs for pupils in charter
schools.
   (b) Subject to the annual Budget Act, eligible charter schools
shall receive an amount of up to, but not more than, seven hundred
fifty dollars ($750) per unit of average daily attendance, as
certified at the second principal apportionment, to provide an amount
of up to, but not more than, 75 percent of the annual facilities
rent and lease costs for the charter school. In any fiscal year, if
the funds appropriated for purposes of this section by the annual
Budget Act are insufficient to fully fund the approved amounts, the
California School Finance Authority shall apportion the available
funds on a pro rata basis.
   (c) For purposes of this section, the California School Finance
Authority shall do all of the following:
   (1) Inform charter schools of the grant program.
   (2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced-price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility. A charter
schoolsite is eligible for funding pursuant to this section if the
charter schoolsite meets either of the following conditions:
   (A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 55 percent or more of
the pupil enrollment is eligible for free or reduced-price meals and
the charter schoolsite gives a preference in admissions to pupils who
are currently enrolled in that public elementary school and to
pupils who reside in the elementary school attendance area where the
charter schoolsite is located.
   (B) Fifty-five percent or more of the pupil enrollment at the
charter schoolsite is eligible for free or reduced-price meals.
   (3) Inform charter schools of their grant eligibility.
   (4) Make apportionments to a charter school for eligible
expenditures according to the following schedule:
   (A) An initial apportionment by August 31 of each fiscal year or
30 days after enactment of the annual Budget Act, whichever is later,
provided the charter school has submitted a timely application for
funding, as determined by the California School Finance Authority.
The initial apportionment shall be 50 percent of the charter school's
estimated annual entitlement as determined by this section.
   (B) A second apportionment by March 1 of each fiscal year. This
apportionment shall be 75 percent of the charter school's estimated
annual entitlement, as adjusted for any revisions in cost,
enrollment, and other data relevant to computing the charter school's
annual entitlement, less any funding already apportioned to the
charter school.
   (C) A third apportionment within 30 days of the end of each fiscal
year or 30 days after receiving the data and documentation needed to
compute the charter school's total annual entitlement, whichever is
later. This apportionment shall be the charter school's total annual
entitlement less any funding already apportioned to the charter
school.
   (D) Notwithstanding subparagraph (A), the initial apportionment in
the 2013-14 fiscal year shall be made by October 15, 2013, or 105
days after enactment of the Budget Act of 2013, whichever is later.
   (d) For purposes of this section:
   (1) The California School Finance Authority shall use prior year
data on pupil eligibility for free or reduced-price meals to
determine eligibility pursuant to paragraph (2) of subdivision (c). A
new charter school that was not operational in the prior year shall
be eligible in the current year if it meets the free or reduced-price
meal eligibility requirements specified in paragraph (2) of
subdivision (c) based on current year data. Prior year rent or lease
costs provided by charter schools shall be used to determine
eligibility for the grant program until actual rent or lease costs
become known or until June 30 of each fiscal year.
   (2) If prior year rent or lease costs are unavailable, and the
current year lease and rent costs are not immediately available, the
California School Finance Authority shall use rent or lease cost
estimates provided by the charter school.
   (3) The California School Finance Authority shall verify that the
grant amount awarded to each charter school is consistent with
eligibility requirements as specified in this section and in
regulations adopted by the authority. If it is determined by the
California School Finance Authority that a charter school did not
receive the proper grant award amount, either the charter school
shall transfer funds back to the authority as necessary within 60
days of being notified by the authority, or the authority shall
provide an additional apportionment as necessary to the charter
school within 60 days of notifying the charter school, subject to the
availability of funds.
   (e) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:
   (1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (e) of Section 47612.5 or that does not comply with
conditions or limitations set forth in regulations adopted by the
state board pursuant to this section.
   (2) Charter schools occupying existing school district or county
office of education facilities, except that charter schools shall be
eligible for the portions of their facilities that are not existing
school district or county office of education facilities.
   (3) Charter schools receiving reasonably equivalent facilities
from their chartering authorities pursuant to Section 47614, except
that charter schools shall be eligible for the portions of their
facilities that are not reasonably equivalent facilities received
from their chartering authorities.
   (f) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent
with the definitions used in the California School Accounting Manual
or regulations adopted by the California School Finance Authority.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred maintenance,
initially installing or extending service systems and other built-in
equipment, and improving sites.
   (g) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment is
eligible for free or reduced-price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.
   (h) The California School Finance Authority annually shall report
to the department and the Director of Finance, and post information
on its Internet Web site, regarding the use of funds that have been
made available during the fiscal year to each charter school pursuant
to the grant program.
   (i) The California School Finance Authority shall annually
allocate the facilities grants to eligible charter schools according
to the schedule in paragraph (4) of subdivision (c) for the current
school year rent and lease costs. However, the California School
Finance Authority shall first use the funding appropriated for this
program to reimburse eligible charter schools for unreimbursed rent
or lease costs for the prior school year.
   (j) It is the intent of the Legislature that the funding level for
the Charter School Facility Grant Program for the 2012-13 fiscal
year be considered the base level of funding for subsequent fiscal
years.
   (k) The Controller shall include instructions appropriate to the
enforcement of this section in the audit guide required by
subdivision (a) of Section 14502.1.
   (  l  ) The California School Finance Authority,
effective with the 2013-14 fiscal year, shall be considered the
senior creditor for purposes of satisfying audit findings pursuant to
the audit instructions to be developed pursuant to subdivision (k).
   (m) The California School Finance Authority may adopt regulations
to implement this section. Any regulations adopted pursuant to this
section may be adopted as emergency regulations in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of the Title 2 of the
Government Code). The adoption of these regulations shall be deemed
to be an emergency and necessary for the immediate preservation of
the public peace, health and safety, or general welfare.
   (n) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audit conducted pursuant to
Section 41020.
  SEC. 28.  Section 48000 of the Education Code is amended to read:
   48000.  (a) A child shall be admitted to a kindergarten maintained
by the school district at the beginning of a school year, or at a
later time in the same year, if the child will have his or her fifth
birthday on or before one of the following dates:
   (1) December 2 of the 2011-12 school year.
   (2) November 1 of the 2012-13 school year.
   (3) October 1 of the 2013-14 school year.
   (4) September 1 of the 2014-15 school year and each school year
thereafter.
   (b) The governing board of the school district of a school
district maintaining one or more kindergartens may, on a case-by-case
basis, admit to a kindergarten a child having attained the age of
five years at any time during the school year with the approval of
the parent or guardian, subject to the following conditions:
   (1) The governing board of the school district determines that the
admittance is in the best interests of the child.
   (2) The parent or guardian is given information regarding the
advantages and disadvantages and any other explanatory information
about the effect of this early admittance.
   (c) As a condition of receipt of apportionment for pupils in a
transitional kindergarten program pursuant to Section 46300, and
Chapter 3 (commencing with Section 47610) of Part 26.8, as
applicable, a school district or charter school shall ensure the
following:
   (1) In the 2012-13 school year, a child who will have his or her
fifth birthday between November 2 and December 2 shall be admitted to
a transitional kindergarten program maintained by the school
district or charter school.
   (2) In the 2013-14 school year, a child who will have his or her
fifth birthday between October 2 and December 2 shall be admitted to
a transitional kindergarten program maintained by the school district
or charter school.
   (3) (A) In the 2014-15 school year and each school year
thereafter, a child who will have his or her fifth birthday between
September 2 and December 2 shall be admitted to a transitional
kindergarten program maintained by the school district or charter
school.
   (B) (i) For the 2015-16 school year and each school year
thereafter, a school district or charter school may, at any time
during a school                                          year, admit
a child to a transitional kindergarten program who will have his or
her fifth birthday after December 2 but during that same school year,
with the approval of the parent or guardian, subject to the
following conditions:
   (I) The governing board of the school district or the governing
body of the charter school determines that the admittance is in the
best interests of the child.
   (II) The parent or guardian is given information regarding the
advantages and disadvantages and any other explanatory information
about the effect of this early admittance.
   (ii) Notwithstanding any other law, a pupil admitted to a
transitional kindergarten program pursuant to clause (i) shall not
generate average daily attendance for purposes of Section 46300, or
be included in the enrollment or unduplicated pupil count pursuant to
Section 42238.02, until the pupil has attained his or her fifth
birthday, regardless of when the pupil was admitted during the school
year.
   (d) For purposes of this section, "transitional kindergarten"
means the first year of a two-year kindergarten program that uses a
modified kindergarten curriculum that is age and developmentally
appropriate.
   (e) A transitional kindergarten shall not be construed as a new
program or higher level of service.
   (f) It is the intent of the Legislature that transitional
kindergarten curriculum be aligned to the California Preschool
Learning Foundations developed by the department.
   (g) As a condition of receipt of apportionment for pupils in a
transitional kindergarten program pursuant to Section 46300, a school
district or charter school shall ensure that credentialed teachers
who are first assigned to a transitional kindergarten classroom after
July 1, 2015, have, by August 1, 2020, one of the following:
   (1) At least 24 units in early childhood education, or childhood
development, or both.
   (2) As determined by the local educational agency employing the
teacher, professional experience in a classroom setting with
preschool age children that is comparable to the 24 units of
education described in paragraph (1).
   (3) A child development teacher permit issued by the Commission on
Teacher Credentialing.
  SEC. 29.  Section 49430.5 of the Education Code is amended to read:

   49430.5.  (a) The reimbursement a school receives for free and
reduced-price meals sold or served to pupils in elementary, middle,
or high schools included within a school district, charter school, or
county office of education shall be twenty-two and seventy-one
hundredths cents ($0.2271) per meal, and, for meals served in child
care centers and homes, the reimbursement shall be sixteen and
ninety-one hundredths cents ($0.1691) per meal.
   (b) To qualify for the reimbursement for free and reduced-price
meals provided to pupils in elementary, middle, or high schools, a
school shall follow the Enhanced Food Based Meal Pattern, Nutrient
Standard Meal Planning, or Traditional Meal Pattern developed by the
United States Department of Agriculture or the SHAPE Menu Patterns
developed by the state.
   (c) The reimbursement rates set forth in this section shall be
adjusted annually for increases in cost of living in the same manner
set forth in Section 42238.1.
  SEC. 30.  Section 51745.6 of the Education Code is amended to read:

   51745.6.  (a) (1) The ratio of average daily attendance for
independent study pupils 18 years of age or less to school district
full-time equivalent certificated employees responsible for
independent study, calculated as specified by the department, shall
not exceed the equivalent ratio of average daily attendance to
full-time equivalent certificated employees providing instruction in
other educational programs operated by the school district, unless a
new higher or lower average daily attendance ratio for all other
educational programs offered is negotiated in a collective bargaining
agreement or a memorandum of understanding is entered into that
indicates an existing collective bargaining agreement contains an
alternative average daily attendance ratio.
   (2) The ratio of average daily attendance for independent study
pupils 18 years of age or less to county office of education
full-time equivalent certificated employees responsible for
independent study, to be calculated in a manner prescribed by the
department, shall not exceed the equivalent prior year ratio of
average daily attendance to full-time equivalent certificated
employees for all other educational programs operated by the high
school or unified school district with the largest average daily
attendance of pupils in that county or the collectively bargained
alternative ratio used by that high school or unified school district
in the prior year, unless a new higher or lower average daily
attendance ratio for all other educational programs offered is
negotiated in a collective bargaining agreement or a memorandum of
understanding is entered into that indicates an existing collective
bargaining agreement contains an alternative average daily attendance
ratio. The computation of the ratios shall be performed annually by
the reporting agency at the time of, and in connection with, the
second principal apportionment report to the Superintendent.
   (b) Only those units of average daily attendance for independent
study that reflect a pupil-teacher ratio that does not exceed the
ratios described in subdivision (a) shall be eligible for
apportionment pursuant to Section 2575, for county offices of
education, and Section 42238.05, for school districts. Nothing in
this section shall prevent a school district or county office of
education from serving additional units of average daily attendance
greater than the ratios described in subdivision (a), except that
those additional units shall not be funded pursuant to Section 2575
or 42238.05, as applicable. If a school district, charter school, or
county office of education has a memorandum of understanding to
provide instruction in coordination with the school district, charter
school, or county office of education at which a pupil is enrolled,
the ratios that shall apply for purposes of this paragraph are the
ratios for the local educational agency providing the independent
study program to the pupil pursuant to Section 51749.5.
   (c) The calculations performed for purposes of this section shall
not include either of the following:
   (1) The average daily attendance generated by special education
pupils enrolled in special day classes on a full-time basis, or the
teachers of those classes.
   (2) The average daily attendance or teachers in necessary small
schools that are eligible to receive funding pursuant to Article 4
(commencing with Section 42280) of Chapter 7 of Part 24 of Division
3.
   (d) The applicable
average-daily-attendance-to-certificated-employee ratios described in
subdivision (a) may, in a charter school, be calculated by using a
fixed average-daily-attendance-to-certificated-employee ratio of 25
to 1, or by using a ratio of less than 25 pupils per certificated
employee. A new higher or lower ratio for all other educational
programs offered by a charter school may be negotiated in a
collective bargaining agreement, or a memorandum of understanding
indicating that an existing collective bargaining agreement contains
an alternative average daily attendance ratio may be entered into by
a charter school. All charter school pupils, regardless of age, shall
be included in the applicable
average-daily-attendance-to-certificate-employee ratio calculations.
  SEC. 31.  Section 52052 of the Education Code is amended to read:
   52052.  (a) (1) The Superintendent, with the 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.
   (F) Homeless 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 or homeless 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 and school districts 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 the 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.
   (F) A transition to new standards-based assessments compromises
comparability of results across schools or school districts. The
Superintendent may use the authority in this subparagraph in the
2013-14 and 2014-15 school years only, with the approval of the state
board.
   (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.
   (4) Any school or school district that does not receive an API
calculated pursuant to subparagraph (F) of paragraph (2) shall not
receive an API growth target pursuant to subdivision (c). Schools and
school districts that do not have an API calculated pursuant to
subparagraph (F) of paragraph (2) shall use one of the following:
   (A) The most recent API calculation.
   (B) An average of the three most recent annual API calculations.
   (C) Alternative measures that show increases in pupil academic
achievement for all groups of pupils schoolwide and among significant
subgroups.
   (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.
   (i) For purposes of this section, "homeless youth" has the same
meaning as in Section 11434a(2) of Title 42 of the United States
Code.
  SEC. 32.  Section 52064.5 of the Education Code is amended to read:

   52064.5.  (a) On or before October 1, 2016, 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 expectations for improvement in regard to each of the state
priorities described in subdivision (d) of Section 52060.
  SEC. 33.  Section 52501.5 of the Education Code is amended to read:

   52501.5.  (a) Except as provided in subdivision (b), revenue
derived from the average daily attendance of adult education programs
shall not be expended for other than adult education purposes.
   (b) When a district's adult revenue limit as allowed by Section
52616 is composed of average daily attendance from both a regional
occupational center or program and an adult education program, the
adult revenue limit income may be allocated to each program in a
proportion other than the amount of adult revenue limit per average
daily attendance otherwise allocable thereto.
  SEC. 34.  Section 52616 of the Education Code is amended to read:
   52616.  (a) Notwithstanding any other law, commencing July 1,
1993, the Superintendent shall determine an adult block entitlement,
to be paid from appropriations to Section A of the State School Fund
as part of the principal apportionment to school districts, for those
school districts that maintain education programs for adults by
multiplying the adult education revenue limit per unit of average
daily attendance determined pursuant to Section 52616.16 and the
adult education average daily attendance determined pursuant to
Section 52616.17.
   (b) The adult block entitlement shall be deposited in a separate
fund of the school district to be known as the "adult education fund."
Money in an adult education fund shall be expended only for adult
education purposes. Except for moneys received pursuant to the local
control funding formula, moneys received for programs other than
adult education shall not be expended for adult education.
  SEC. 35.  Section 53011 of the Education Code is amended to read:
   53011.  Contingent upon funding provided for this purpose in the
annual Budget Act, the department shall administer the California
Career Pathways Trust as a competitive grant program for kindergarten
and grades 1 to 14, inclusive. Funds appropriated in Item
6110-280-0001 of Section 2.00 of the Budget Act of 2014 shall be
available for expenditure in the 2014-15 fiscal year to the 2016-17
fiscal year, inclusive. Recipients shall do all of the following:
   (a) Prioritize work-based learning opportunities, as defined in
Section 51760.1, for pupils and students in partnership with regional
business and industry, state and local governmental entities, and
nonprofit and community-based organizations.
   (b) Define the labor market of the regional economy in a manner
that identifies high-skill, high-wage, high-growth jobs in the
current regional economy or in emerging economic sectors.
   (c) Establish or strengthen existing regional collaborative
relationships and partnerships among business entities, schools
serving pupils in kindergarten and grades 1 to 12, inclusive, and
postsecondary educational agencies, organizations that provide
apprenticeship opportunities, and nonprofit or government entities.
   (d) Develop and integrate standards-based academics with a
career-relevant, sequenced curriculum following industry-themed
pathways that are aligned to high-skill, high-wage, high-growth jobs
in the current regional economy, or in emerging regional economic
sectors.
   (e) Provide articulated pathways from high school to postsecondary
education and training that are aligned with the workforce
development needs of regional economies.
   (f) Ensure that career pathway programs are designed and
implemented in a manner that leads students to a postsecondary degree
or certification in a high-skill, high-wage, and high-growth or
emerging field.
   (g) Leverage and build on any of the following:
   (1) Existing structures, requirements, and resources of the Carl
D. Perkins Career and Technical Education Improvement Act of 2006,
California Partnership Academies, and Regional Occupational Centers
and Programs.
   (2) The California Community Colleges Economic and Workforce
Development Program.
   (3) Matching resources and in-kind contributions from public,
private, and philanthropic sources.
                                                   SEC. 36.  Chapter
16.5 (commencing with Section 53070) is added to Part 28 of Division
4 of Title 2 of the Education Code, to read:
      CHAPTER 16.5.  CALIFORNIA CAREER TECHNICAL EDUCATION INCENTIVE
GRANT PROGRAM


   53070.  (a) The California Career Technical Education Incentive
Grant Program is hereby established as a state education, economic,
and workforce development initiative with the goal of providing
pupils in kindergarten and grades 1 to 12, inclusive, with the
knowledge and skills necessary to transition to employment and
postsecondary education. The purpose of this program is to encourage
and maintain the delivery of career technical education programs
during implementation of the school district and charter school local
control funding formula pursuant to Section 42238.02. There is
hereby appropriated to the department from the General Fund for the
program established pursuant to this chapter the following amounts:
   (1) For the 2015-16 fiscal year, four hundred million dollars
($400,000,000).
   (2) For the 2016-17 fiscal year, three hundred million dollars
($300,000,000).
   (3) For the 2017-18 fiscal year, two hundred million dollars
($200,000,000).
   (b) Of the amounts appropriated in paragraphs (1) through (3),
inclusive, of subdivision (a), 4 percent is designated for applicants
with average daily attendance of less than or equal to 140, 8
percent is designated for applicants with average daily attendance of
more than 140 and less than or equal to 550, and 88 percent is
designated for applicants with average daily attendance of more than
550. For purposes of this section, average daily attendance shall be
those figures that are reported at the time of the second principal
apportionment for the previous fiscal year for pupils in grades 7 to
12, inclusive. For any applicant consisting of more than one school
district, county office of education, charter school, or regional
occupational center or program operated by a joint powers authority,
or of any combination of those entities, the sum of the average daily
attendance for each of the constituent entities shall be used for
purposes of this subdivision.
   53071.  The department shall administer this program as a
competitive grant program. An applicant shall demonstrate all of the
following to be considered for a grant award:
   (a) (1) A proportional dollar-for-dollar match as follows for any
funding received from this program:
   (A) For the fiscal year beginning July 1, 2015, one dollar ($1)
for every one dollar ($1) received from this program.
   (B) For the fiscal year beginning July 1, 2016, one dollar and
fifty cents ($1.50) for every one dollar ($1) received from this
program.
   (C) For the fiscal year beginning July 1, 2017, two dollars ($2)
for every one dollar ($1) received from this program.
   (2) That local match may include funding from school district and
charter school local control funding formula apportionments pursuant
to Section 42238.02, the federal Carl D. Perkins Career and Technical
Education Improvement Act of 2006, the California Partnership
Academies, the Agricultural Career Technical Education Incentive
Grant, or any other source except as provided in paragraph (3).
   (3) That local match shall not include funding from the California
Career Pathways Trust established pursuant to Section 53010.
   (b) At least a three-year plan for continued support of career
technical education programs after grant funding expires. The plan,
at a minimum, shall include the identification of available funding
within an applicant's current or projected budget to continue to
support career technical education programs and a written commitment
to do so. If an applicant consisting of more than one school
district, county office of education, charter school, or regional
occupational center or program operated by a joint powers authority,
or any combination of these entities, is applying for grant funding
from this program, identification of available funding and a written
commitment must be demonstrated by each participating constituent
entity.
   (c) The applicant, or the applicant's career technical education
program, as applicable, meets all of the following minimum
eligibility standards:
   (1) Offers high quality curriculum and instruction aligned with
the California Career Technical Education Model Curriculum Standards,
including, but not limited to, providing a coherent sequence of
career technical education courses that enable pupils to transition
to postsecondary education programs that lead to a career pathway or
attain employment upon graduation from high school.
   (2) Provides pupils with quality career exploration and guidance.
   (3) Provides pupil support services, including counseling and
leadership development.
   (4) Provides for system alignment, coherence, and articulation,
including ongoing and structural regional or local partnerships with
postsecondary educational institutions, documented through formal
written agreements.
   (5) Forms ongoing and structural industry and labor partnerships,
documented through formal written agreements and through
participation on advisory committees.
   (6) Provides opportunities for pupils to participate in after
school, extended day, and out-of-school internships, competitions,
and other work-based learning opportunities.
   (7) Reflects regional or local labor market demands and focuses on
current or emerging high-skill, high-wage, or high-demand
occupations.
   (8) Leads to an industry-recognized credential or certificate, or
appropriate postsecondary training or employment.
   (9) Is staffed by skilled teachers or faculty and provides
professional development opportunities for those teachers or faculty
members.
   (10) (A) Reports data, as a program participation requirement, to
allow for an evaluation of the program.
   (B) Data reported pursuant to this paragraph shall include, but
not be limited to, metrics aligned with the core metrics required by
the federal Workforce Innovation and Opportunity Act and the quality
indicators described in the California State Plan for Career
Technical Education required by the federal Carl D. Perkins Career
and Technical Education Improvement Act of 2006, and the following
metrics:
   (i) The number of pupils completing high school.
   (ii) The number of pupils completing career technical education
coursework.
   (iii) The number of pupils obtaining an industry-recognized
credential, certificate, license, or other measure of technical skill
attainment.
   (iv) The number of former pupils employed and the types of
businesses in which they are employed.
   (v) The number of former pupils enrolled in a postsecondary
educational institution, a state apprenticeship program, or another
form of job training.
   53072.  A grant recipient under this chapter may consist of one or
more, or any combination, of the following:
   (a) School districts.
   (b) County offices of education.
   (c) Charter schools.
   (d) Regional occupational centers or programs operated by joint
powers authorities, provided that the application has the written
consent of each participating local educational agency.
   53073.  (a) An applicant receiving a grant from this program in
the 2015-16 fiscal year shall be eligible to receive a renewal grant
in the 2016-17 fiscal year and in the 2017-18 fiscal year. An
applicant that does not receive a grant in the 2015-16 fiscal year,
but receives a grant in the 2016-17 fiscal year, shall be eligible to
receive a renewal grant in the 2017-18 fiscal year. No applicant
shall be eligible for a renewal grant in the 2018-19 fiscal year.
   (b) (1) The department, in collaboration with the state board,
shall determine renewal grant eligibility using metrics identified
pursuant to paragraph (10) of subdivision (c) of Section 53071.
   (2) If an applicant for a renewal grant is subject to the
requirements of Sections 52060 and 52061, Sections 52066 and 52067,
or Section 47606.5, the inclusion of career technical education
programs in the applicant's local control and accountability plan
shall be required to be eligible for a renewal grant.
   53074.  The department shall consult with entities having career
technical education expertise, including, but not necessarily limited
to, the Chancellor of the California Community Colleges, state
workforce investment organizations, and organizations representing
business in the development of the request for grant applications and
in the consideration of grant applications under this chapter. The
department shall annually submit its list of recommended new and
renewal grant recipients to the state board for review and approval
before making annual grant awards.
   53075.  (a) When determining grant recipients, the department and
the state board shall do both of the following:
   (1) Give positive consideration to each of the following
characteristics in an applicant:
   (A) Did not operate a career technical education program during
the 2014-15 fiscal year.
   (B) Serving unduplicated pupils as defined in Section 42238.02.
   (C) Serving pupil subgroups that have higher than average dropout
rates as identified by the Superintendent.
   (D) Located in an area of the state with a high unemployment rate.

   (2) Give positive consideration to programs to the extent they do
any of the following:
   (A) Successfully leverage one or both of the following:
   (i) Existing structures, requirements, and resources of the
federal Carl D. Perkins Career and Technical Education Improvement
Act of 2006, California Partnership Academies, or Agricultural Career
Technical Education Incentive Grants.
   (ii) Contributions from industry, labor, and philanthropic
sources.
   (B) Engage in regional collaboration with postsecondary education
or other local educational agencies.
   (C) Make significant investment in career technical education
infrastructure and equipment.
   (D) Operate within rural school districts.
   (b) When determining grant recipients, the department and the
state board shall give greatest weight to the applicant
characteristics included in paragraph (1) of subdivision (a).
   53076.  For purposes of administering the program established by
this chapter, the Superintendent may do any of the following:
   (a) Determine, in collaboration with the executive director of the
state board, specific funding amounts and the number of grants to be
awarded.
   (b) Distribute funding on a multiyear schedule, establish a
process for monitoring the use of the funding, and, if necessary,
cease distribution of funding and recover previously distributed
funding in the case of a recipient's failure to comply with a grant
prerequisite or minimum standard.
   (c) Require grant recipients to submit program reports.
   (d) Set aside up to 1 percent of the total amount provided for the
program for one or both of the following purposes:
   (1) To provide planning grants.
   (2) To contract with a local educational agency for the provision
of technical assistance to applicants and grant recipients.
  SEC. 37.  Section 60212 is added to the Education Code, to read:
   60212.  For purposes of adopting basic instructional materials for
history-social science pursuant to Section 60200, all of the
following shall apply:
   (a) (1) The department shall provide notice, pursuant to paragraph
(2), to all publishers or manufacturers known to produce basic
instructional materials in that subject, post an appropriate notice
on the Internet Web site of the department, and take other reasonable
measures to ensure that appropriate notice is widely circulated to
potentially interested publishers and manufacturers.
   (2) The notice shall specify that each publisher or manufacturer
choosing to participate in the adoption process shall be assessed a
fee based on the number of programs the publisher or manufacturer
indicates will be submitted for review and the number of grade levels
proposed to be covered by each program.
   (b) The department, before incurring substantial costs for the
adoption process, shall require that a publisher or manufacturer that
wishes to participate in the adoption process first declare the
intent to submit one or more specific programs for adoption and
specify the specific grade levels to be covered by each program.
   (c) After a publisher or manufacturer has declared its intent to
submit one or more programs and the grade levels to be covered by
each program, the department shall assess a fee that shall be payable
by the publisher or manufacturer even if the publisher or
manufacturer subsequently chooses to withdraw a program or reduce the
number of grade levels covered.
   (d) The fee assessed pursuant to subdivision (c) shall be in an
amount that does not exceed the reasonable costs to the department in
conducting the adoption process. The department shall take
reasonable steps to limit costs of the adoption and to keep the fee
modest.
   (e) A submission by a publisher or manufacturer shall not be
reviewed for purposes of adoption until the fee assessed pursuant to
subdivision (c) has been paid in full.
   (f) (1) Upon the request of a small publisher or small
manufacturer, the state board may reduce the fee for participation in
the adoption.
   (2) For purposes of this section, "small publisher" and "small
manufacturer" mean an independently owned or operated publisher or
manufacturer that is not dominant in its field of operation and that,
together with its affiliates, has 100 or fewer employees, and has
average annual gross receipts of ten million dollars ($10,000,000) or
less over the previous three years.
   (g) If the department determines that there is little or no
interest in participating in an adoption by publishers and
manufacturers, the department shall recommend to the state board
whether or not the adoption shall be conducted, and the state board
may choose not to conduct the adoption.
   (h) Revenue derived from fees assessed pursuant to subdivision (c)
shall be budgeted as reimbursements and subject to review through
the annual budget process, and may be used to pay for costs
associated with any adoption and for any costs associated with the
review of instructional materials, including costs of substitutes for
teacher reviewers and stipends for content review experts.
  SEC. 38.  Section 84830 of the Education Code is amended to read:
   84830.  (a) The Chancellor of the California Community Colleges
and the State Department of Education shall, pursuant to funding made
available in the annual Budget Act, jointly provide two-year
planning and implementation grants to regional consortia of community
college districts and school districts for the purpose of developing
regional plans to better serve the educational needs of adults.
   (1) Eligibility shall be limited to consortia consisting of at
least one community college district and at least one school district
within the boundaries of the community college district, either of
which may serve as the consortium's fiscal agent, as determined by
the applicant consortium.
   (2) If a community college district chooses not to participate in
a consortium, a neighboring community college district may form a
consortium with school districts within the boundaries of the
nonparticipating community college district.
   (3) Consortia may include other entities providing adult education
courses, including, but not necessarily limited to, correctional
facilities, other local public entities, and community-based
organizations.
   (b) Grant funds provided pursuant to this section shall be used by
each regional consortium to create and implement a plan to better
provide adults in its region with all of the following:
   (1) Elementary and secondary basic skills, including classes
required for a high school diploma or high school equivalency
certificate.
   (2) Classes and courses for immigrants eligible for educational
services in citizenship and English as a second language, and
workforce preparation classes in basic skills.
   (3) Education programs for adults with disabilities.
   (4) Short-term career technical education programs with high
employment potential.
   (5) Programs offering pre-apprenticeship training activities
conducted in coordination with one or more apprenticeship programs
approved by the Division of Apprenticeship Standards for the
occupation and geographic area.
   (c) (1) The classes and courses described in paragraphs (1) and
(2) of subdivision (b) shall distribute basic information on American
government and civics that includes, but is not limited to,
instruction on all of the following:
   (A) Federal, state, and local government.
   (B) The three branches of government.
   (C) The importance of civic engagement.
   (D) Registering to vote.
   (2) It is the intent of the Legislature that, consistent with the
requirements of Sections 51225.3 and 52555, students enrolled in
classes and courses described in paragraphs (1) and (2) of
subdivision (b) in which instruction in American government and
civics is appropriate shall receive instruction in American
government and civics.
   (d) Each regional consortium's plan shall include, at a minimum:
   (1) An evaluation of current levels and types of adult education
programs within its region, including education for adults in
correctional facilities; credit, noncredit, and enhanced noncredit
adult education coursework; and programs funded through Title II of
the federal Workforce Investment Act of 1998, known as the Adult
Education and Family Literacy Act (Public Law 105-220).
   (2) An evaluation of current needs for adult education programs
within its region.
   (3) Plans for parties that make up the consortium to integrate
their existing programs and create seamless transitions into
postsecondary education or the workforce.
   (4) Plans to address the gaps identified pursuant to paragraphs
(1) and (2).
   (5) Plans to employ approaches proven to accelerate a student's
progress toward his or her academic or career goals, such as
contextualized basic skills and career technical education, and other
joint programming strategies between adult education and career
technical education.
   (6) Plans to collaborate in the provision of ongoing professional
development opportunities for faculty and other staff to help them
achieve greater program integration and improve student outcomes.
   (7) Plans to leverage existing regional structures, including, but
not necessarily limited to, local workforce investment areas.
   (e) The Chancellor of the California Community Colleges and the
State Department of Education may identify additional elements that
consortia must include in a plan.
   (f) (1) On or before March 1, 2014, the Chancellor of the
California Community Colleges and the State Department of Education
shall submit a joint report to the Legislature and the Governor. This
report shall include, but not necessarily be limited to, both of the
following:
   (A) The status of developing regional consortia across the state,
including identification of unserved geographic areas or emerging
gaps in regional program delivery.
   (B) The status and allocation of grant awards made to regional
consortia.
   (2) The report shall be submitted to the Legislature as provided
in Section 9795 of the Government Code.
   (g) (1) On or before March 1, 2015, the Chancellor of the
California Community Colleges and the State Department of Education
shall submit a joint report to the Legislature and the Governor. This
report shall include, but is not limited to, both of the following:
   (A) The plans developed by regional consortia across the state.
   (B) Recommendations for additional improvements in the delivery
system serving adult learners.
   (2) The report shall be submitted to the Legislature as provided
in Section 9795 of the Government Code.
   (h) It is the intent of the Legislature to work toward developing
common policies related to adult education affecting adult schools at
local educational agencies and community colleges, including
policies on fees and funding levels.
   (i) It is the intent of the Legislature to provide additional
funding in the 2015-16 fiscal year to regional consortia to expand
and improve the provision of adult education.
  SEC. 39.  Article 9 (commencing with Section 84900) is added to
Chapter 5 of Part 50 of Division 7 of Title 3 of the Education Code,
to read:

      Article 9.  Adult Education Block Grant Program


   84900.  The Adult Education Block Grant Program is hereby
established under the administration of the Chancellor of the
California Community Colleges and the Superintendent of Public
Instruction.
   84901.  For purposes of this article, the following definitions
shall apply, unless otherwise specified:
   (a) "Adult" means a person 18 years of age or older.
   (b) "Consortium" means an adult education consortium approved
pursuant to this article.
   (c) "Executive director" means the executive director of the State
Board of Education.
   (d) "Program" means the Adult Education Block Grant Program
established by Section 84900.
   84902.  (a) The chancellor and the Superintendent are the state
officials responsible for identifying and understanding the
educational needs of adults in the state.
   (b) The chancellor and the Superintendent shall use the powers
provided by this article to support the effective provision of
services that address the educational needs of adults in all regions
of the state.
   (c) In performing duties under this article, the chancellor and
the Superintendent shall seek advice from, and coordinate with, other
state officials responsible for programs for adults.
   84903.  (a) The chancellor and the Superintendent, with the advice
of the executive director, shall divide the state into adult
education regions and shall determine the physical boundaries of each
region.
   (b) When determining the boundaries of the adult education
regions, the chancellor and the Superintendent shall consider factors
that impact the provision of adult education, including all of the
following:
   (1) Economic and demographic factors, including the locations of
regional labor markets.
   (2) The boundaries of regions used to distribute funds for other
state programs.
   (3) The presence of adult education providers that have
demonstrated effectiveness in meeting the educational needs of
adults.
   (c) Until otherwise determined by the chancellor and the
Superintendent, the physical boundaries of the adult education
regions shall be the same as the physical boundaries of the regions
established for purposes of providing planning and implementation
grants pursuant to Section 84830.
   84904.  (a) The chancellor and the Superintendent, with the advice
of the executive director, shall approve one adult education
consortium in each adult education region.
   (b) Until otherwise determined by the chancellor and the
Superintendent, the consortia to which planning and implementation
grants were apportioned pursuant to Section 84830 shall be deemed
approved for purposes of this section.
   84905.  The chancellor and the Superintendent, with the advice of
the executive director, shall approve, for each consortium, rules and
procedures that adhere to all of the following conditions:
   (a) Any community college district, school district, or county
office of education, or any joint powers authority consisting of
community college districts, school districts, county offices of
education, or a combination of these, located within the boundaries
of the adult education region shall be permitted to join the
consortium as a member.
   (b) As a condition of joining a consortium, a member shall commit
to reporting any funds available to that member for the purposes of
education and workforce services for adults and the uses of those
funds.
   (c) A member of the consortium shall be represented only by an
official designated by the governing board of the member.
   (d) (1) Decisionmaking procedures are specified that ensure that
all of the following conditions are satisfied:
   (A) All members of the consortium shall participate in any
decision made by the consortium.
   (B) A proposed decision is considered at an open, properly noticed
public meeting of the consortium at which members of the public may
comment.
   (C) The consortium has provided the public with adequate notice of
a proposed decision and considered any comments submitted by members
of the public, and any comments submitted by members of the public
have been distributed publicly.
   (D) (i) The consortium has requested comments regarding a proposed
decision from other entities located in the adult education region
that provide education and workforce services for adults.
   (ii) The consortium has considered and responded to any comments
submitted by entities pursuant to clause (i).
   (iii) For purposes of this subparagraph, entities that provide
education and workforce services to adults include, but are not
necessarily limited to, local public agencies, departments, and
offices, particularly those with responsibility for local public
safety and social services; workforce investment boards; libraries;
and community-based organizations.
   (E) A decision is final.
   (2) For purposes of this subdivision, a decision includes approval
of an adult education plan pursuant to Section 84906 and approval of
a distribution schedule pursuant to Section 84913.
   (e) The members of the consortium may decide to designate a member
to serve as the fund administrator to receive and distribute funds
from the program.
   84906.  (a) As a condition of receipt of an apportionment of funds
from this program for a fiscal year, the members of a consortium
shall have approved an adult education plan that addresses that
fiscal year.
   (b) An adult education plan shall include all of the following:
   (1) An evaluation of the educational needs of adults in the
region.
   (2) A list of the following:
   (A) Entities that provide education and workforce services to
adults in the region.
   (B) Entities that are impacted by, or that have a fundamental
interest in, the provision of those services.
   (3) A description of the services provided by entities listed
pursuant to paragraph (2).
   (4) An evaluation of current levels and types of education and
workforce services for adults in the region.
   (5) An evaluation of the funds available to the members of the
consortium and the entities listed pursuant to paragraph (2),
including funds other than those apportioned pursuant to this
article.
   (6) Actions that the members of the consortium will take to
address the educational needs identified pursuant to paragraph (1).

(7) Actions that the members of the consortium will take to improve
the effectiveness of their services.
   (8) Actions that the members of the consortium, the entities
listed pursuant to paragraph (2), and other interested parties will
take to improve integration of services and to improve transitions
into postsecondary education and the workforce, including actions
related to all of the following:
   (A) Placement of adults seeking education and workforce services
into adult education programs.
   (B) Alignment of academic standards and curricula for programs
across entities that provide education and workforce services to
adults.
   (C) Qualifications of instructors, including common standards
across entities that provide education and workforce services to
adults.
   (D) Collection and availability of data.
   (9) A description of the alignment of adult education services
supported by this program with those described in other education and
workforce plans guiding services in the region, including plans
pertaining to the building of career pathways and the employment of
workforce sector strategies and those required pursuant to the
federal Workforce Innovation and Opportunity Act (Public Law
113-128).
   (10) A description of the ways in which each of the entities
identified in paragraph (2) contributed to the development of the
plan.
   (c) The members of a consortium shall approve an adult education
plan at least once every three years. The plan shall be updated at
least once each year based on available data.
   (d) For the 2015-16, 2016-17, and 2017-18 fiscal years, a regional
plan developed pursuant to Section 84830 shall satisfy the
requirements of this section.
   84907.  No later than July 31, 2015, the chancellor and the
Superintendent, with the advice of the executive director, shall
certify, for each school district and county office of education, the
amount of state funds required to be expended for adult education
pursuant to paragraph (7) of subdivision (a) of Section 42238.03, and
paragraph (3) of subdivision (k) of Section 2575, respectively.
   84908.  (a) If the total amount certified for all school districts
and county offices of education pursuant to Section 84907 is less
than three hundred seventy-five million dollars ($375,000,000), the
chancellor and the Superintendent shall do both of the following:
   (1) Apportion funds appropriated for the program in the Budget Act
of 2015, no later than August 30, 2015, to each school district or
county office of education in an amount equal to the amount certified
for that school district or county office of education pursuant to
Section 84907. As a condition of receipt of an apportionment, a
school district or county office of education is required to be a
member of a consortium.
   (2) (A) (i) With the concurrence of the executive director,
approve a schedule of allocations to each consortium, no later than
October 30, 2015, of any funds appropriated for the program in the
Budget Act of 2015 that remain after funds have been apportioned
pursuant to paragraph (1).
   (ii) The chancellor and the Superintendent shall determine the
amount to be allocated to each consortium pursuant to this paragraph
based on that adult education region's share of the statewide need
for adult education.
   (B) Using the schedule approved pursuant to subparagraph (A), the
chancellor and the Superintendent shall do one of the following for
each consortium:
   (i) Apportion funds to a fund administrator designated by the
members of a consortium beginning no more than 30 days after approval
of the schedule pursuant to subparagraph (A).
   (ii) Apportion funds to members of a consortium beginning no more
than 30 days after receipt of a final distribution schedule from that
consortium.
   (b) If the total amount certified for all school districts and
county offices of education pursuant to Section 84907 equals or
exceeds three hundred seventy-five million dollars ($375,000,000),
the chancellor and the Superintendent shall do both of the following:

   (1) Apportion funds appropriated for the program in the Budget Act
of 2015, no later than August 30, 2015, to each school district or
county office of education in an amount equal to the amount certified
for that school district or county office of education pursuant to
Section 84907 multiplied by three hundred seventy-five million
dollars ($375,000,000), divided by the total amount certified for all
school districts and county offices of education pursuant to Section
84907.
   (2) (A) (i) With the concurrence of the executive director,
approve a schedule of allocations to each consortium, no later than
October 30, 2015, of any funds appropriated for this program in the
Budget Act of 2015 that remain after funds have been apportioned
pursuant to paragraph (1).
   (ii) The chancellor and the Superintendent shall determine the
amount to be allocated to each consortium pursuant to this paragraph
based on that adult education region's share of the statewide need
for adult education.
   (B) Using the schedule approved pursuant to subparagraph (A), the
chancellor and the Superintendent shall do one of the following for
each consortium:
   (i) Apportion funds to a fund administrator designated by the
members of a consortium beginning no more than 30 days after approval
of the schedule pursuant to subparagraph (A).
   (ii) Apportion funds to members of a consortium beginning no more
than 30 days after receipt of a final distribution schedule from that
consortium.
   (c) This section shall become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
   84909.  (a) This section shall apply commencing with the 2016-17
fiscal year.
   (b) The chancellor and the Superintendent, with the advice of the
executive director, shall approve, no later than February 28 of the
prior fiscal year, a preliminary schedule of allocations to each
consortium of any funds proposed in the Governor's Budget for the
program.
   (c) The chancellor and the Superintendent, with the advice of the
executive director, shall approve, within 15 days of enactment of the
annual Budget Act, a final schedule of allocations to each
consortium of any funds appropriated by the Legislature for the
program.
   (d) The chancellor and the Superintendent shall determine the
amount to be allocated to each consortium based on the following:
   (1) The amount of funds apportioned to the members of that
consortium in the immediately preceding fiscal year.
   (2) That adult education region's share of the statewide need for
adult education.
   (3) That consortium's effectiveness in meeting the educational
needs of adults in the adult education region based on available
data.
   (e) Using the final schedule approved pursuant to subdivision (c),
the chancellor and the Superintendent shall do one of the following
for each consortium:
   (1) Apportion funds to a fund administrator designated by the
members of a consortium beginning no more than 30 days after approval
of the final schedule of allocations.
   (2) Apportion funds to members of a consortium beginning no more
than 30 days after receipt of a final distribution schedule from that
consortium.
   84910.  The chancellor and the Superintendent shall, when
approving a schedule of allocations for a fiscal year, also present
preliminary projections for the amounts that would be allocated in
the subsequent two fiscal years. This preliminary presentation shall
not constitute a binding commitment of funds.
   84911.  To determine the need for adult education, the chancellor
and the Superintendent shall consider, at a minimum, measures related
to adult population, employment, immigration, educational
attainment, and adult literacy.
   84912.  The chancellor and the Superintendent shall apportion
funds appropriated for the program in a given year in compliance with
all of the following:
   (a) No more than one-twelfth of the total amount appropriated
shall have been apportioned by the end of July.
   (b) No more than one-sixth of the total amount appropriated shall
have been apportioned by the end of August.
   (c) No more than one-quarter of the total amount appropriated
shall have been apportioned by the end of September.
   (d) No more than one-third of the total amount appropriated shall
have been apportioned by the end of October.
   (e) No more than five-twelfths of the total amount appropriated
shall have been apportioned by the end of November.
   (f) No more than one-half of the total amount appropriated shall
have been apportioned by the end of December.
   (g) No more than seven-twelfths of the total amount appropriated
shall have been apportioned by the end of January.
   (h) No more than two-thirds of the total amount appropriated shall
have been apportioned by the end of February.
   (i) No more than three-quarters of the total amount appropriated
shall have been apportioned by the end of March.
   (j) No more than five-sixths of the total amount appropriated
shall have been apportioned by the end of April.
   (k) No more than eleven-twelfths of the total amount appropriated
shall have been apportioned by the end of May.
   84913.  (a) Funds apportioned for the program shall be used only
for support of the following:
   (1) Programs in elementary and secondary basic skills, including
programs leading to a high school diploma or high school equivalency
certificate.
   (2) Programs for immigrants eligible for educational services in
citizenship, English as a second language, and workforce preparation.

   (3) Programs for adults, including, but not limited to, older
adults, that are primarily related to entry or reentry into the
workforce.
   (4) Programs for adults, including, but not limited to, older
adults, that are primarily designed to develop knowledge and skills
to assist elementary and secondary school children to succeed
academically in school.
   (5) Programs for adults with disabilities.
   (6) Programs in career technical education that are short term in
nature and have high employment potential.
   (7) Programs offering preapprenticeship training activities
conducted in coordination with one or more apprenticeship programs
approved by the Division of Apprenticeship Standards for the
occupation and geographic area.
   (b) A consortium may use no more than 5 percent of funds allocated
in a given fiscal year for the sum of the following:
   (1) The costs of administration of these programs.
   (2) The costs of the consortium.
   84914.  (a) As a condition of receipt of an apportionment from the
program, a consortium shall approve a distribution schedule that
includes both of the following:
   (1) The amount of funds to be distributed to each member of the
consortium for that fiscal year.
   (2) A narrative justifying how the planned allocations are
consistent with the adult education plan.
   (b) (1) For any fiscal year for which the chancellor and the
Superintendent allocate an amount of funds to the consortium greater
than the amount allocated in the prior fiscal year, the amount of
funds to be distributed to a member of that consortium shall be equal
to or greater than the amount distributed in the prior fiscal year,
unless the consortium makes at least one of the following findings
related to the member for which the distribution would be reduced:
   (A) The member no longer wishes to provide services consistent
with the adult education plan.
   (B) The member cannot provide services that address the needs
identified in the adult education plan.
   (C) The member has been consistently ineffective in providing
services that address the needs identified in the adult education
plan and reasonable interventions have not resulted in improvements.
   (2) For any year for which the chancellor and the Superintendent
allocate an amount of funds to the consortium less than the amount
allocated in the prior year, the amount of funds to be distributed to
a member of that consortium shall not be reduced by a percentage
greater than the percentage by which the total amount of funds
allocated to the consortium decreased, unless the consortium makes at
least one of the following findings related to the member for which
the distribution would be reduced further:
   (A) The member no longer wishes to provide services consistent
with the adult education plan.
   (B) The member cannot provide services that address the needs
identified in the adult education plan.
   (C) The member has been ineffective in providing services that
address the needs identified in the adult education plan and
reasonable interventions have not resulted in improvements.
   (c) A distribution schedule shall also include preliminary
projections of the amount of funds that would be distributed to each
member of the consortium in each of the subsequent two fiscal years.
The preliminary projections shall not constitute a binding commitment
of funds.
   84915.  (a) It is the intent of the Legislature to coordinate
programs that support education and workforce services for adults.
   (b) No later than January 31, 2016, the chancellor and the
Superintendent shall submit to the Director of Finance, to the State
Board of Education, and, in conformity with Section 9795 of the
Government Code, to the Legislature a plan approved by the chancellor
and the Superintendent to distribute funds from the following
programs to the consortia:
   (1) (A) The federal Adult Education and Family Literacy Act (Title
II of the federal Workforce Innovation and Opportunity Act).
   (B) The plan for allocating funds under this paragraph shall
comply with the criteria enumerated in subsection (e) of Section 3321
of Title 29 of the United States Code related to base disbursement
of these funds.
   (2) The federal Carl D. Perkins Career and Technical Education Act
(Public Law 109-270).
   84916.  In order to maximize the benefits derived from public
funds provided for the purpose of addressing the educational needs of
adults and to ensure the efficient and coordinated use of resources,
it is the intent and expectation of the Legislature that any
community college district, school district, or county office of
education, or any joint powers authority consisting of community
college districts, school districts, county offices of education, or
a combination of these, located within the boundaries of the adult
education region shall be a member of a consortium pursuant to this
article if it receives funds from any of the following programs or
allocations:
   (a) The Adults in Correctional Facilities program.
   (b) The federal Adult Education and Family Literacy Act (Title II
of the federal Workforce Innovation and Opportunity Act).
   (c) The federal Carl D. Perkins Career and Technical Education Act
(Public Law 109-270).
   (d) Local Control Funding Formula apportionments received for
students who are 19 years of age or older.
   (e) Community college apportionments received for providing
instruction in courses in the areas listed in subdivision (a) of
Section 84913.
   (f) State funds for remedial education and job training services
for participants in the CalWORKs program.
   84917.  (a) To inform actions taken by the Governor and the
Legislature related to adult education, the chancellor and the
Superintendent shall submit to the Director of Finance, to the State
Board of Education, and, in conformity with Section 9795 of the
Government Code, to the Legislature, by September 30 following any
fiscal year for which funds are appropriated for the program, a
report about the use of these funds and outcomes for adults statewide
and in each adult education region. The report shall include at
least all of the following:
   (1) A summary of the adult education plan operative for each
consortium.
   (2) The distribution schedule for each consortium.
   (3) The types and levels of services provided by each consortium.
   (4) The effectiveness of each consortium in meeting the
educational needs of adults in its respective region.
   (5) Any recommendations related to delivery of education and
workforce services for adults, including recommendations related to
improved alignment of state programs.
   (b) (1) The chancellor and the Superintendent may require a
consortium, as a condition of receipt of an apportionment, to submit
any reports or data necessary to produce the report described in
subdivision (a).
   (2) The chancellor and the Superintendent shall align the data
used to produce the report described in subdivision (a) with data
reported by local educational agencies for other purposes, such as
data used for purposes of the federal Workforce Opportunity and
Innovation Act (Public Law 113-128).
   (3) The Employment Development Department and the California
Workforce Investment Board shall provide any assistance needed to
align delivery of services across state and regional workforce,
education, and job service programs.
  SEC. 40.  Section 84920 is added to the Education Code, to read:
   84920.  (a) To the extent that one-time funding is made available
in the Budget Act of 2015, consistent with the provisions of Section
84917, the chancellor and the Superintendent shall identify common
measures for determining the effectiveness of members of each
consortium in meeting the educational needs of adults. At a minimum,
the chancellor and the Superintendent shall accomplish both of the
following:
   (1) Define the specific data each consortium shall collect.
   (2) Establish a menu of common assessments and policies regarding
placement of adults seeking education and workforce services into
adult education programs to be used by each consortium to measure
educational needs of adults and the effectiveness of providers in
addressing those needs.
   (b) It is the intent of the Legislature that both of the following
occur:
   (1) That the educational needs of adults in the state be better
identified and understood through better sharing of data across state
agencies.
   (2) That, at a minimum, the chancellor and the Superintendent
shall enter into agreements to share data related to effectiveness of
the consortia between their agencies and with other state agencies,
including, but not necessarily limited to, the Employment Development
Department and the California Workforce Investment Board.
   (c) The chancellor and the Superintendent shall identify, no later
than January 1, 2016, the measures for assessing the effectiveness
of consortia that will be used in the report that, pursuant to
Section 84917, is to be submitted by September 30, 2016. These
measures shall include, but not necessarily be limited to, all of the
following:
   (1) How many adults are served by members of the consortium.
   (2) How many adults served by members of the consortium have
demonstrated the following:
   (A) Improved literacy skills.
   (B) Completion of high school diplomas or their recognized
equivalents.
   (C) Completion of postsecondary certificates, degrees, or training
programs.
   (D) Placement into jobs.
   (E) Improved wages.
   (d) No later than November 1, 2015, the chancellor and the
Superintendent shall submit to the Director of Finance, the state
board, and the appropriate policy and fiscal committees in the
Legislature a report of its progress in meeting the requirements of
subdivisions (a) and (b).
   (e) The chancellor and the Superintendent shall apportion the
funds appropriated for purposes of this section in the Budget Act of
2015 in accordance with both of the following:
   (1) Eighty-five percent of these funds shall be used for grants to
consortia to establish systems or obtain data necessary to submit
any reports or data required pursuant to subdivision (b) of Section
84917.
   (2) Fifteen percent of these funds shall be used for grants for
development of statewide policies and procedures related to data
collection or reporting or for technical assistance to consortia, or
both.
   (f) The chancellor and the Superintendent shall provide any
guidance to the consortia necessary to support the sharing of data
included in systems established by consortia pursuant to this section
across consortia.
  SEC. 41.  Section 17581.6 of the Government Code is amended to
read:
   17581.6.  (a) Funding apportioned pursuant to this section shall
constitute reimbursement pursuant to Section 6 of Article XIII B of
the California Constitution for the performance of any state mandates
included in the statutes and executive orders identified in
subdivision (e).
   (b) Any school district, county office of education, or charter
school may elect to receive block grant funding pursuant to this
section.
   (c) (1) A school district, county office of education, or charter
school that elects to receive block grant funding pursuant to this
section in a given fiscal year shall submit a letter requesting
funding to the Superintendent of Public Instruction on or before
August 30 of that fiscal year.
   (2) The Superintendent of Public Instruction shall, in the month
of November of each year, apportion block grant funding appropriated
pursuant to Item 6100-296-0001 of Section 2.00 of the annual Budget
Act to all school districts, county offices of education, and charter
schools that submitted letters requesting funding in that fiscal
year according to the provisions of that item.
   (3) A school district or county office of education that receives
block grant funding pursuant to this section shall not be eligible to
submit claims to the Controller for reimbursement pursuant to
Section 17560 for any costs of any state mandates included in the
statutes and executive orders identified in subdivision (e) incurred
in the same fiscal year during which the school district or county
office of education received funding pursuant to this section.
   (d) Block grant funding apportioned pursuant to this section is
subject to annual financial and compliance audits required by Section
41020 of the Education Code.
   (e) Block grant funding apportioned pursuant to this section is
specifically intended to fund the costs of the following programs and
activities:
   (1) Academic Performance Index (01-TC-22; Chapter 3 of the
Statutes of 1999, First Extraordinary Session; and Chapter 695 of the
Statutes of 2000).
   (2) Agency Fee Arrangements (00-TC-17 and 01-TC-14; Chapter 893 of
the Statutes of 2000 and Chapter 805 of the Statutes of 2001).
   (3) AIDS Instruction and AIDS Prevention Instruction (CSM 4422,
99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of 1991; and
Chapter 403 of the Statutes of 1998).
   (4) California State Teachers' Retirement System (CalSTRS) Service
Credit (02-TC-19; Chapter 603 of the Statutes of 1994; Chapters 383,
634, and 680 of the Statutes of 1996; Chapter 838 of the Statutes of
1997; Chapter 965 of the Statutes of 1998; Chapter 939 of the
Statutes of 1999; and Chapter 1021 of the Statutes of 2000).
   (5) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes of
1994).
   (6) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
99-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and 673 of
the Statutes of 1998; Chapter 34 of the Statutes of 1998; and
Chapter 78 of the Statutes of 1999).
   (7) Charter Schools IV (03-TC-03; Chapter 1058 of the Statutes of
2002).
   (8) Child Abuse and Neglect Reporting (01-TC-21; Chapters 640 and
1459 of the Statutes of 1987; Chapter 132 of the Statutes of 1991;
Chapter 459 of the Statutes of 1992; Chapter 311 of the Statutes of
1998; Chapter 916 of the Statutes of 2000; and Chapters 133 and 754
of the Statutes of 2001).
   (9) Collective Bargaining (CSM 4425; Chapter 961 of the Statutes
of 1975).
   (10) Comprehensive School Safety Plans (98-TC-01 and 99-TC-10;
Chapter 736 of the Statutes of 1997; Chapter 996 of the Statutes of
1999; and Chapter 828 of the Statutes of 2003).
   (11) Consolidation of Annual Parent Notification/Schoolsite
Discipline Rules/Alternative Schools (CSM 4488, CSM 4461, 99-TC-09,
00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM 4462; Chapter 448 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 975 of
the Statutes of 1980; Chapter 469 of the Statutes of 1981; Chapter
459 of the Statutes of 1985; Chapters 87 and 97 of the Statutes of
1986; Chapter 1452 of the Statutes of 1987; Chapters 65 and 1284 of
the Statutes of 1988; Chapter 213 of the Statutes of 1989; Chapters
10 and 403 of the Statutes of 1990; Chapter 906 of the Statutes of
1992; Chapter 1296 of the Statutes of 1993; Chapter 929 of the
Statutes of 1997; Chapters 846 and 1031 of the Statutes of 1998;
Chapter 1 of the Statutes of 1999, First Extraordinary Session;
Chapter 73 of the Statutes of 2000; Chapter 650 of the Statutes of
2003; Chapter 895 of the Statutes of 2004; and Chapter 677 of the
Statutes of 2005).
   (12) Consolidation of Law Enforcement Agency Notification and
Missing Children Reports (CSM 4505; Chapter 1117 of the Statutes of
1989 and 01-TC-09; Chapter 249 of the Statutes of 1986; and Chapter
832 of the Statutes of 1999).
   (13) Consolidation of Notification to Teachers: Pupils Subject to
Suspension or Expulsion I and II, and Pupil Discipline Records
(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).
   (14) Consolidated Suspensions, Expulsions, and Expulsion Appeals
(96-358-03, 03A, 98-TC-22, 01-TC-18, 98-TC-23, 97-TC-09; Chapters 972
and 974 of the Statutes of 1995; Chapters 915, 937, and 1052 of the
Statutes of 1996; Chapter 637 of the Statutes of 1997; Chapter 489 of
the Statutes of 1998; Chapter 332 of the Statutes of 1999; Chapter
147 of the Statutes of 2000; and Chapter 116 of the Statutes of 2001)
(CSM 4455; Chapter 1253 of the Statutes of 1975; Chapter 965 of the
Statutes of 1977; Chapter 668 of the Statutes of 1978; Chapter 318 of
the Statutes of 1982; Chapter 498 of the Statutes of 1983; Chapter
622 of the Statutes of 1984; Chapter 942 of the Statutes of 1987;
Chapter 1231 of the Statutes of 1990; Chapter 152 of the Statutes of
1992; Chapters 1255, 1256, and 1257 of the Statutes of 1993; and
Chapter 146 of the Statutes of 1994) (CSM 4456; Chapter 965 of the
Statutes of 1977; Chapter 668 of the Statutes of 1978; Chapter 73 of
the Statutes of 1980; Chapter 498 of the Statutes of 1983; Chapter
856 of the Statutes of 1985; and Chapter 134 of the Statutes of 1987)
(CSM 4463; Chapter 1253 of the Statutes of 1975; Chapter 965 of the
Statutes of 1977; Chapter 668 of the Statutes of 1978; and Chapter
498 of the Statutes of 1983).
   (15) County Office of Education Fiscal Accountability Reporting
(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987; Chapters
1461 and 1462 of the Statutes
    of 1988; Chapter 1372 of the Statutes of 1990; Chapter 1213 of
the Statutes of 1991; Chapter 323 of the Statutes of 1992; Chapters
923 and 924 of the Statutes of 1993; Chapters 650 and 1002 of the
Statutes of 1994; and Chapter 525 of the Statutes of 1995).
   (16) Criminal Background Checks (97-TC-16; Chapters 588 and 589 of
the Statutes of 1997).
   (17) Criminal Background Checks II (00-TC-05; Chapters 594 and 840
of the Statutes of 1998; and Chapter 78 of the Statutes of 1999).
   (18) Developer Fees (02-TC-42; Chapter 955 of the Statutes of
1977; Chapter 282 of the Statutes of 1979; Chapter 1354 of the
Statutes of 1980; Chapter 201 of the Statutes of 1981; Chapter 923 of
the Statutes of 1982; Chapter 1254 of the Statutes of 1983; Chapter
1062 of the Statutes of 1984; Chapter 1498 of the Statutes of 1985;
Chapters 136 and 887 of the Statutes of 1986; and Chapter 1228 of the
Statutes of 1994).
   (19) Differential Pay and Reemployment (99-TC-02; Chapter 30 of
the Statutes of 1998).
   (20) Expulsion of Pupil: Transcript Cost for Appeals (SMAS;
Chapter 1253 of the Statutes of 1975).
   (21) Financial and Compliance Audits (CSM 4498 and CSM 4498-A;
Chapter 36 of the Statutes of 1977).
   (22) Graduation Requirements (CSM 4181; Chapter 498 of the
Statutes of 1983).
   (23) Habitual Truants (CSM 4487 and CSM 4487-A; Chapter 1184 of
the Statutes of 1975).
   (24) High School Exit Examination (00-TC-06; Chapter 1 of the
Statutes of 1999, First Extraordinary Session; and Chapter 135 of the
Statutes of 1999).
   (25) Immunization Records (SB 90-120; Chapter 1176 of the Statutes
of 1977).
   (26) Immunization Records--Hepatitis B (98-TC-05; Chapter 325 of
the Statutes of 1978; Chapter 435 of the Statutes of 1979; Chapter
472 of the Statutes of 1982; Chapter 984 of the Statutes of 1991;
Chapter 1300 of the Statutes of 1992; Chapter 1172 of the Statutes of
1994; Chapters 291 and 415 of the Statutes of 1995; Chapter 1023 of
the Statutes of 1996; and Chapters 855 and 882 of the Statutes of
1997).
   (27) Immunization Records--Pertussis (11-TC-02; Chapter 434 of the
Statutes of 2010).
   (28) Interdistrict Attendance Permits (CSM 4442; Chapters 172 and
742 of the Statutes of 1986; Chapter 853 of the Statutes of 1989;
Chapter 10 of the Statutes of 1990; and Chapter 120 of the Statutes
of 1992).
   (29) Intradistrict Attendance (CSM 4454; Chapters 161 and 915 of
the Statutes of 1993).
   (30) Juvenile Court Notices II (CSM 4475; Chapters 1011 and 1423
of the Statutes of 1984; Chapter 1019 of the Statutes of 1994; and
Chapter 71 of the Statutes of 1995).
   (31) Notification of Truancy (CSM 4133; Chapter 498 of the
Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
19 of the Statutes of 1995).
   (32) Parental Involvement Programs (03-TC-16; Chapter 1400 of the
Statutes of 1990; Chapters 864 and 1031 of the Statutes of 1998; and
Chapter 1037 of the Statutes of 2002).
   (33) Physical Performance Tests (96-365-01; Chapter 975 of the
Statutes of 1995).
   (34) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the Statutes
of 1978).
   (35) Public Contracts (02-TC-35; Chapter 1073 of the Statutes of
1985; Chapter 1408 of the Statutes of 1988; Chapter 330 of the
Statutes of 1989; Chapter 1414 of the Statutes of 1990; Chapter 321
of the Statutes of 1990; Chapter 799 of the Statutes of 1992; and
Chapter 726 of the Statutes of 1994).
   (36) Pupil Health Screenings (CSM 4440; Chapter 1208 of the
Statutes of 1976; Chapter 373 of the Statutes of 1991; and Chapter
750 of the Statutes of 1992).
   (37) Pupil Promotion and Retention (98-TC-19; Chapter 100 of the
Statutes of 1981; Chapter 1388 of the Statutes of 1982; Chapter 498
of the Statutes of 1983; Chapter 1263 of the Statutes of 1990; and
Chapters 742 and 743 of the Statutes of 1998).
   (38) Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332 of
the Statutes of 1986; Chapter 445 of the Statutes of 1992; Chapter
1317 of the Statutes of 1992; Chapter 589 of the Statutes of 1993;
Chapter 1172 of the Statutes of 1994; Chapter 1023 of the Statutes of
1996; and Chapter 492 of the Statutes of 2000).
   (39) Race to the Top (10-TC06; Chapters 2 and 3 of the Statutes of
2009).
   (40) School Accountability Report Cards (97-TC-21, 00-TC-09,
00-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997; Chapter
912 of the Statutes of 1997; Chapter 824 of the Statutes of 1994;
Chapter 1031 of the Statutes of 1993; Chapter 759 of the Statutes of
1992; and Chapter 1463 of the Statutes of 1989).
   (41) School District Fiscal Accountability Reporting (97-TC-19;
Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes of
1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and 1452 of
the Statutes of 1987; Chapters 1461 and 1462 of the Statutes of 1988;
Chapter 525 of the Statutes of 1990; Chapter 1213 of the Statutes of
1991; Chapter 323 of the Statutes of 1992; Chapters 923 and 924 of
the Statutes of 1993; Chapters 650 and 1002 of the Statutes of 1994;
and Chapter 525 of the Statutes of 1995).
   (42) School District Reorganization (98-TC-24; Chapter 1192 of the
Statutes of 1980; and Chapter 1186 of the Statutes of 1994).
   (43) Student Records (02-TC-34; Chapter 593 of the Statutes of
1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the
Statutes of 1998; and Chapter 67 of the Statutes of 2000).
   (44) The Stull Act (98-TC-25; Chapter 498 of the Statutes of 1983;
and Chapter 4 of the Statutes of 1999).
   (45) Threats Against Peace Officers (CSM 96-365-02; Chapter 1249
of the Statutes of 1992; and Chapter 666 of the Statutes of 1995).
   (46) Uniform Complaint Procedures (03-TC-02; Chapter 1117 of the
Statutes of 1982; Chapter 1514 of the Statutes 1988; and Chapter 914
of the Statutes of 1998).
   (47) Williams Case Implementation I, II, and III (05-TC-04,
07-TC-06, and 08-TC-01; Chapters 900, 902, and 903 of the Statutes of
2004; Chapter 118 of the Statutes of 2005; Chapter 704 of the
Statutes of 2006; and Chapter 526 of the Statutes of 2007).
   (f) Notwithstanding Section 10231.5, on or before November 1 of
each fiscal year, the Superintendent of Public Instruction shall
produce a report that indicates the total amount of block grant
funding each school district, county office of education, and charter
school received in that fiscal year pursuant to this section. The
Superintendent of Public Instruction shall provide this report to the
appropriate fiscal and policy committees of the Legislature, the
Controller, the Department of Finance, and the Legislative Analyst's
Office.
  SEC. 42.  Section 17581.8 of the Government Code is amended to
read:
   17581.8.  (a) (1) For the 2014-15 fiscal year, the sum of two
hundred eighty-seven million one hundred forty-nine thousand dollars
($287,149,000) is hereby appropriated from the General Fund to the
Superintendent of Public Instruction for allocation to school
districts in the manner, and for the purposes, set forth in this
section.
   (2) For the 2014-15 fiscal year, the sum of forty-nine million
five hundred thousand dollars ($49,500,000) is hereby appropriated
from the General Fund to the Chancellor of the California Community
Colleges for allocation to community college districts in the manner,
and for the purposes, set forth in this section.
   (3) For purposes of this section, a school district includes a
county office of education and a charter school.
   (b) (1) The Superintendent of Public Instruction shall allocate
the funds appropriated pursuant to paragraph (1) of subdivision (a),
and the funds appropriated for purposes of this section pursuant to
Item 6110-488 of Section 2.00 of the Budget Act of 2014, to school
districts on the basis of an equal amount per unit of regular average
daily attendance, as those average daily attendance numbers are
reported at the time of the second principal apportionment for the
2013-14 fiscal year.
   (2) The Chancellor shall allocate the funds appropriated pursuant
to paragraph (2) of subdivision (a) to community college districts on
the basis of an equal amount per enrolled full-time equivalent
student, as those numbers of students are reported at the time of the
second principal apportionment for the 2013-14 fiscal year.
   (c) Allocations made pursuant to this section shall first satisfy
any outstanding claims pursuant to Section 6 of Article XIII B of the
California Constitution for reimbursement of state-mandated local
program costs for any fiscal year. Notwithstanding Section 12419.5
and any amounts that are paid in satisfaction of outstanding claims
for reimbursement of state-mandated local program costs, the
Controller may audit any claim as allowed by law, and may recover any
amount owed by school districts or community college districts
pursuant to an audit only by reducing amounts owed by the state to
school districts or community college districts for any other mandate
claims. Under no circumstances shall a school district or community
college district be required to remit funding back to the state to
pay for disallowed costs identified by a Controller audit of claimed
reimbursable state-mandated local program costs. The Controller shall
not recover any amount owed by a school district or community
college district pursuant to an audit of claimed reimbursable
state-mandated local program costs by reducing any amount owed a
school district or community college district for any purpose other
than amounts owed for any other mandate claims. The Controller shall
apply amounts received by each school district or community college
district against any balances of unpaid claims for reimbursement of
state-mandated local program costs and interest in chronological
order beginning with the earliest claim. The Controller shall report
to each school district and community college district the amounts of
any claims and interest that are offset from funds provided pursuant
to this section, and shall report a summary of the amounts offset
for each mandate for each fiscal year to the Department of Finance
and the fiscal committees of the Legislature.
   (d) (1) The governing board of a school district or community
college district may expend funds received pursuant to this section
for any one-time purpose, as determined by the governing board.
   (2) It is the intent of the Legislature that school districts will
prioritize the use of these one-time funds for professional
development, instructional materials, technology infrastructure, and
any other investments necessary to support implementation of the
common core standards in English language arts and mathematics, the
implementation of English language development standards, and the
implementation of the Next Generation Science standards.
  SEC. 43.  Section 17581.9 is added to the Government Code, to read:

   17581.9.  (a) (1) The sum of three billion ninety-eight million
four hundred fifty-five thousand dollars ($3,098,455,000) is hereby
appropriated from the General Fund to the Superintendent of Public
Instruction for allocation to school districts and county
superintendents of schools in the manner, and for the purposes, set
forth in this section.
   (2) The sum of six hundred four million forty-three thousand
dollars ($604,043,000) is hereby appropriated from the General Fund
to the Chancellor of the California Community Colleges for allocation
to community college districts in the manner, and for the purposes,
set forth in this section.
   (3) For purposes of this section, a school district includes a
county office of education and a charter school.
   (b) (1) (A) The Superintendent of Public Instruction shall
allocate forty million dollars ($40,000,000) of the funds
appropriated pursuant to paragraph (1) of subdivision (a) to county
superintendents of schools, as follows:
   (i) Each county superintendent of schools shall be allocated the
greater of: (i) thirty thousand dollars ($30,000), multiplied by the
number of school districts for which the county superintendent of
schools has jurisdiction pursuant to Section 1253 of the Education
Code; or (ii) eighty thousand dollars ($80,000).
   (ii) After the allocations pursuant to subparagraph (A), the
balance shall be allocated in an equal amount per unit of regular
average daily attendance, as those average daily attendance numbers
are reported at the time of the second principal apportionment for
the 2014-15 fiscal year.
   (B) For purposes of allocating funding pursuant to this paragraph
only, "regular average daily attendance" means the aggregate number
of 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 of the Education
Code, charter schools within the county, and the schools operated by
the county superintendent of schools.
   (2) It is the intent of the Legislature that county offices of
education will prioritize the use of funds allocated pursuant to
paragraph (1) for investments necessary to support new
responsibilities required under the evolving accountability structure
of the local control funding formula and develop greater capacity
and consistency within and between county offices of education. A
county office of education may encumber funds apportioned pursuant to
this section at any time during the 2015-16 or 2016-17 fiscal year.
   (3) The Superintendent shall allocate three billion fifty-eight
million four hundred fifty-five thousand dollars ($3,058,455,000) of
the funds appropriated pursuant to paragraph (1) of subdivision (a)
to school districts on the basis of an equal amount per unit of
regular average daily attendance, as those average daily attendance
numbers are reported at the time of the second principal
apportionment for the 2014-15 fiscal year.
   (c) The Chancellor of the California Community Colleges shall
allocate the funds appropriated pursuant to paragraph (2) of
subdivision (a) to community college districts on the basis of an
equal amount per enrolled full-time equivalent student, as those
numbers of students are reported at the time of the second principal
apportionment for the 2014-15 fiscal year.
   (d) Allocations made pursuant to this section shall first satisfy
any outstanding claims pursuant to Section 6 of Article XIII B of the
California Constitution for reimbursement of state-mandated local
program costs for any fiscal year. Notwithstanding Section 12419.5
and any amounts that are paid in satisfaction of outstanding claims
for reimbursement of state-mandated local program costs, the
Controller may audit any claim as allowed by law, and may recover any
amount owed by school districts or community college districts
pursuant to an audit only by reducing amounts owed by the state to
school districts or community college districts for any other mandate
claims. Under no circumstances shall a school district or community
college district be required to remit funding back to the state to
pay for disallowed costs identified by a Controller audit of claimed
reimbursable state-mandated local program costs. The Controller shall
not recover any amount owed by a school district or community
college district pursuant to an audit of claimed reimbursable
state-mandated local program costs by reducing any amount owed a
school district or community college district for any purpose other
than amounts owed for any other mandate claims. The Controller shall
apply amounts received by each school district or community college
district against any balances of unpaid claims for reimbursement of
state-mandated local program costs and interest in chronological
order beginning with the earliest claim. The Controller shall report
to each school district and community college district the amounts of
any claims and interest that are offset from funds provided pursuant
to this section, and shall report a summary of the amounts offset
for each mandate for each fiscal year to the Department of Finance
and the fiscal committees of the Legislature.
   (e) (1) The governing board of a school district or community
college district may expend the one-time funds received pursuant to
this section for any purpose, as determined by the governing board.
   (2) It is the intent of the Legislature that school districts
shall prioritize the use of these one-time funds for professional
development, induction for beginning teachers with a focus on
relevant mentoring, instructional materials, technology
infrastructure, and any other investments necessary to support
implementation of the common core standards in English language arts
and mathematics, the implementation of English language development
standards, and the implementation of the Next Generation Science
standards.
   (f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, three hundred nineteen
million two hundred thirty-one thousand dollars ($319,231,000) of
the appropriations made by subdivision (a) shall be deemed to be
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 of the Education Code, for the
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.
   (g) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, ninety-three million
five hundred twenty-nine thousand dollars ($93,529,000) of the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) 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.
   (h) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, two billion seven
hundred forty-eight million three hundred forty-nine thousand dollars
($2,748,349,000) of the appropriations made by subdivision (a) shall
be deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 of the
Education Code, for the 2014-15 fiscal year, and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2014-15 fiscal year.
   (i) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, three hundred
ninety-three million two hundred twenty thousand dollars
($393,220,000) of the appropriations made by subdivision (a) shall be
deemed to be "General Fund revenues appropriated for community
college districts," as defined in subdivision (d) of Section 41202 of
the Education Code, for the 2014-15 fiscal year, and included within
the "total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2014-15 fiscal year.
   (j) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, one hundred seventeen
million two hundred ninety-four thousand dollars ($117,294,000) of
the appropriations made by subdivision (a) shall be deemed to be
"General Fund revenues appropriated for community college districts,"
as defined in subdivision (d) of Section 41202 of the Education
Code, for the 2015-16 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2015-16 fiscal year.
   (k) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, thirty million eight
hundred seventy-five thousand dollars ($30,875,000) of the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2015-16 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2015-16 fiscal year.
  SEC. 44.  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 purposes of
paragraph (1) of subdivision (h) of Section 42238 of the Education
Code 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 purposes of that section and shall be available to
be used for educational facilities, including, 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
purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for purposes of that
section and shall be available to be used for educational facilities,
including, 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
purposes of Sections 2558 and 2575 of the Education Code, and 81
percent shall not be considered to be property taxes for purposes of
those sections and shall be available to be used for educational
facilities, including, 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 purposes of Sections 2558 and
2575 of the Education Code, or for purposes of paragraph (1) of
subdivision (h) of Section 42238 of the Education Code and paragraph
(1) of subdivision (j) of Section 42238.02 of the Education Code, as
applicable, and 81 percent shall not be considered to be property
taxes for purposes of those sections and shall be available to be
used for education facilities, including, 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 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. 45.  Section 33607.7 of the Health and Safety Code is amended
to read:
   33607.7.  (a) This section shall apply to a redevelopment plan
amendment for any redevelopment plans adopted prior to January 1,
1994, that increases the limitation on the number of dollars to be
allocated to the redevelopment agency or that increases, or
eliminates 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 lengthens 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. However, this section shall not apply to those
redevelopment plans that add new territory.
   (b) If a redevelopment agency adopts an amendment that is governed
by the provisions of this section, it shall pay to each affected
taxing entity either of the following:
   (1) If an agreement exists that requires payments to the taxing
entity, the amount required to be paid by an agreement between the
agency and an affected taxing entity entered into prior to January 1,
1994.
   (2) If an agreement does not exist, the amounts required pursuant
to subdivisions (b), (c), (d), and (e) of Section 33607.5, until
termination of the redevelopment plan, calculated against the amount
of assessed value by which the current year assessed value exceeds an
adjusted base year assessed value. The amounts shall be allocated
between property taxes and educational facilities, including, in the
case of amounts paid commencing with the 2011-12 fiscal year, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance, according to the appropriate
formula in paragraph (3) of subdivision (a) of Section 33607.5. In
determining the applicable amount under Section 33607.5, the first
fiscal year shall be the first fiscal year following the fiscal year
in which the adjusted base year value is determined.
   (c) The adjusted base year assessed value shall be the assessed
value of the project area in the year in which the limitation being
amended would have taken effect without the amendment or, if more
than one limitation is being amended, the first year in which one or
more of the limitations would have taken effect without the
amendment. The agency shall commence making these payments pursuant
to the terms of the agreement, if applicable, or, if an agreement
does not exist, in the first fiscal year following the fiscal year in
which the adjusted base year value is determined.
  SEC. 46.  Section 11 of Chapter 325 of the Statutes of 2012 is
amended to read:
  Sec. 11.  (a) Notwithstanding Sections 17456, 17457, 17462, and
17463 of the Education Code, or any other law, from September 1,
2012, to June 30, 2018, inclusive, the Inglewood Unified School
District may sell property owned by the school district and use the
proceeds from the sale to reduce or retire the emergency loan
provided in Section 8 of this act. The sale only of property pursuant
to this subdivision is not subject to Section 17459 or 17464 of the
Education Code.
   (b) Notwithstanding any other law, from June 1, 2012, to June 30,
2018, inclusive, the Inglewood Unified School District is not
eligible for financial hardship assistance pursuant to Article 8
(commencing with Section 17075.10) of Chapter 12.5 of Part 10 of
Division 1 of Title 1 of the Education Code.
  SEC. 47.  It is the intent of the Legislature that when the local
control funding formula is fully implemented pursuant to subdivision
(g) of Section 42238.03 of the Education Code, local educational
agencies shall be required to report to the Superintendent of Public
Instruction for compilation on the State Department of Education's
Internet Web site both of the following:
   (a) The amount of funds received on the basis of the number and
concentration of unduplicated pupils in the current year and, to the
extent available, prior fiscal years.
   (b) The amount of local control funding formula funds expended on
services for unduplicated pupils in the current year and, to the
extent available, prior fiscal years commencing with the 2013-14
fiscal year.
  SEC. 48.  (a) On or before June 30, 2016, an amount to be
determined by the Director of Finance, not to exceed the amount of
the shortfall specified in subdivision (b), shall be appropriated
from the General Fund to the Superintendent of Public Instruction in
augmentation of Schedule (1) of Item 6110-161-0001 of Section 2.00 of
the Budget Act of 2015.
   (b) The funds appropriated in subdivision (a) shall not exceed the
amount by which revenues distributed to local educational agencies
for special education programs pursuant to Sections 34177, 34179.5,
34179.6, and 34188 of the Health and Safety Code are less than the
estimated amount reflected in the Budget Act of 2015, as determined
by the Director of Finance.
   (c) On or before June 30, 2016, the Director of Finance shall
determine if the revenues distributed to local educational agencies
for special education programs pursuant to Sections 34177, 34179.5,
34179.6, and 34188 of the Health and Safety Code exceed the estimated
amount reflected in the Budget Act of 2015 and shall reduce Schedule
(1) of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2015
by the amount of that excess.
   (d) In making the determinations pursuant to subdivisions (b) and
(c), the Director of Finance shall consider any other local property
tax revenues collected in excess or in deficit of the estimated
amounts reflected in the Budget Act of 2015.
   (e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, of his or
her intent to notify the Controller of the necessity to release
funds appropriated in subdivision (a) or to make the reduction
pursuant to subdivision (c), and the amount needed to address the
property tax shortfall determined pursuant to subdivision (b) or the
amount of the reduction made pursuant to subdivision (c). The
Controller shall make the funds available pursuant to subdivision (a)
not sooner than five days after this notification, and the State
Department of Education shall work with the Controller to allocate
these funds to local educational agencies as soon as practicable.
   (f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2015-16 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2015-16 fiscal
year.
  SEC. 49.  (a) The State Department of Education shall convene, by
September 1, 2015, a stakeholder group to provide recommendations to
streamline data and other reporting requirements for child care and
early learning providers that contract with the State Department of
Education to provide state preschool and other state subsidized child
care and early learning programs under Title 5 of the California
Code of Regulations. The recommendations shall address the challenges
and redundancies in reporting faced by contractors and providers
that deliver services to children through multiple contracts from
different sources, including federal Head Start and Early Head Start,
state preschool, and other Title 5 programs, programs administered
by the California Children and Families Commission, and other
federal, state, and local programs.
   (b) The stakeholder group shall identify current reporting
requirements for the programs identified in subdivision (a) in
statute, regulations, and other administering documents, including
funding terms and conditions and management bulletins, and shall find
redundancies that can be eliminated, similar requirements that can
be aligned, and other changes that could result in efficiencies for
providers and contractors. The recommendations made by the
stakeholder group shall reduce the administrative workload for
contractors and providers that deliver services under multiple
contracts without increasing administrative workload for contractors
and providers that deliver services under a single state contract.
   (c) The stakeholder group shall consist of no more than seven
members, including one designee of the State Department of Education,
one designee of the California Children and Families Commission, one
designee of the State Department of Social Services, one state
preschool contractor, one Title 5 contractor, one federal Head Start
contractor, and one entity receiving funding through a program
administered by the California Children and Families Commission.
Contractors and providers shall represent, to the extent practicable,
the regional and care environment diversity of state child care and
early learning programs, including family child care home networks
and local educational agencies.
   (d) The stakeholder group shall provide its recommendations to the
Legislature, the Department of Finance, and the State Board of
Education no later than April 1, 2016. At least one month before
presenting its recommendations, the group shall make a draft of its
findings available to the Department of Finance and the Governor's
State Advisory Council for Early Learning and Care for review and
comment.
  SEC. 50.  (a) The State Department of Education shall convene, by
September 1, 2015, a stakeholder group to examine CalWORKs Stage 2,
CalWORKs Stage 3, and alternative payment program child care contract
requirements, program and fiscal audits, and the process by which
contractors are informed of and implement new contract requirements,
with the purpose of identifying redundancies and efficiencies in
program implementation and reducing the workload in program
administration.
   (b) The stakeholder group shall identify existing requirements for
the administration of the programs identified in subdivision (a), as
described in program contracts and funding terms and conditions. The
group shall examine the current requirements, as well as the
existing protocols in place for ensuring contract compliance through
program and fiscal audits, and identify recommended actions the state
could take to reduce redundant workload for contractors and allow
for efficiencies in program administration, especially by utilizing
technology. The group shall also examine recent management bulletins
and other documents that alert contractors to changes in program
administration requirements, and recommend ways that future changes
could be implemented to reduce program disruption and allow
contractors more implementation flexibility.
   (c) The stakeholder group shall consist of no more than seven
members, including one designee of the State Department of Education,
one designee of the California Children and Families Commission, one
designee of the State Department of Social Services, and four
representatives of alternative payment program agencies that contract
with the state to provide child care vouchers. Contractors shall
represent, to the extent practicable, the regional and size diversity
of alternative payment programs.
   (d) The stakeholder group shall provide its recommendations to the
Legislature, the Department of Finance, and the State Board of
Education no later than April 1, 2016. At least one month before
presenting its recommendations, the group shall make a draft of its
findings available to the Department of Finance and the Governor's
State Advisory Council for Early Learning and Care for review and
comment.
  SEC. 51.  (a) The sum of fifty thousand dollars ($50,000) is hereby
appropriated from the General Fund to the State Department of
Education for transfer to Section A of the State School Fund and
allocation by the Controller for payment of claims for costs incurred
in the 2013-14 and 2014-15 fiscal years pursuant to paragraph (1) of
subdivision (f) of Section 44944 of the Education Code.
Notwithstanding any other law, the Controller shall encumber the
funds appropriated in this section by June 30, 2016.
   (b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriations
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2014-15 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2014-15 fiscal
year.
  SEC. 52.  (a) For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, one hundred
fifty million dollars ($150,000,000) of the appropriation made by
paragraph (1) of subdivision (a) of Section 53070 of the Education
Code shall be deemed to be "General Fund revenues appropriated for
school districts," as defined in subdivision (c) of Section 41202 of
the Education Code, for the 2014-15 fiscal year, and included within
the "total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2014-15 fiscal year.
   (b) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, two hundred fifty
million dollars ($250,000,000) of the appropriation made by paragraph
(1) of subdivision (a) of Section 53070 of the Education Code shall
be deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 of the
Education Code, for the 2015-16 fiscal year, and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2015-16 fiscal year.
   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, three hundred million
dollars ($300,000,000) of the appropriation made by paragraph (2) of
subdivision (a) of Section 53070 of the Education Code 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 2016-17 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 2016-17 fiscal year.
   (d) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, two hundred million
dollars ($200,000,000) of the appropriation made by paragraph (3) of
subdivision (a) of Section 53070 of the Education Code 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 2017-18 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 2017-18 fiscal year.
  SEC. 53.  (a) The sum of three hundred fifty thousand dollars
($350,000) is hereby appropriated to the Superintendent of Public
Instruction for support and development of the evaluation rubrics
adopted pursuant to Section 52064.5 of the Education Code.
   (b) For the purposes outlined in subdivision (a), the State
Department of Education, in collaboration with and subject to the
approval of the executive director of the State Board of Education,
shall enter into a contract with the San Joaquin County Office of
Education to perform activities that ensure alignment of the
evaluation rubrics with California's accountability system,
accommodate state and local data availability, and reflect
consistency with implementation of the local control funding formula.

   (c) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation made
by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2014-15 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2014-15 fiscal
year.
  SEC. 54.  For purposes of apportionments calculated pursuant to
Section 47663 of the Education Code for the 2009-10 and 2010-11
fiscal years, the Superintendent of Public Instruction shall include
in the amount of property taxes as referenced in paragraph (1) of
subdivision (b) of Section 47663 of the Education Code, as that
section read at that time, and property taxes transferred to a
charter school or schools as referenced in paragraph (2) of
subdivision (b) of Section 47663 of the Education Code, as that
section read at that time, allocations from the Supplemental
Educational Revenue Augmentation Fund pursuant to subdivision (j) of
Section 33690 of the Health and Safety Code.
  SEC. 55.  Commencing with the 2015-16 fiscal year, the
Superintendent of Public Instruction shall add two million dollars
($2,000,000) to the amount to be apportioned pursuant to Sections
2574 and 2575 of the Education Code for the Los Angeles County Office
of Education for the purpose of supporting professional development
and leadership training for education professionals related to
antibias education and the creation of inclusive and equitable
schools.
  SEC. 56.  Of the amount allocated in Schedule (1) of Item
6110-161-0001 of Section 2.00 of the Budget Act of 2012, sixteen
million five hundred forty-nine thousand dollars ($16,549,000) shall
be allocated to fund the 2010-11 fiscal year maintenance of effort in
the special education program, and nineteen million one hundred
seventy-three thousand dollars ($19,173,000) shall be allocated to
fund the 2011-12 maintenance of effort in the special education
program.
  SEC. 57.  (a) The sum of ten million dollars ($10,000,000) is
hereby appropriated from the General Fund to the Superintendent of
Public Instruction on a one-time basis to apportion to a designated
county office of education or two designated county offices of
education applying jointly to provide technical assistance and to
develop and disseminate statewide resources that encourage and assist
local educational agencies and charter schools in establishing and
aligning schoolwide, data-driven systems of learning and behavioral
supports for the purpose of meeting the needs of California's diverse
learners in the most inclusive environments possible. The designated
county office of education or county offices of education shall be
selected by the State Department of Education and the executive
director of the State Board of Education from among applicants that
submit a detailed proposal for how they will effectively meet the
criteria described in subdivisions (b), (c), and (e). These proposals
shall include a detailed description of how the designated county
office of education or county offices of education would use the
funds, including how much funding it proposes to allocate to local
educational agencies and charter schools for start-up and
demonstration grants pursuant to paragraphs (8) and (9) of
subdivision (c). If two county offices of education apply jointly,
their application shall describe how their collaboration will not
result in a duplication of effort. The designated county office of
education or county offices of education shall encumber or expend the
funds provided through this section by June 30, 2018.

(b) The designated county office of education or county offices of
education shall identify existing evidence-based resources,
professional development activities, and other efforts currently
available at the state, federal, and local levels, as well as develop
new evidence-based resources and activities, designed to help local
educational agencies and charter schools across the state do all the
following:
   (1) Implement integrated multi-tiered systems of standards-based
instruction, interventions, mental health, and academic and
behavioral supports aligned with accessible instruction and
curriculum using the principles of universal design, such as
universal design for learning, established in the state curriculum
frameworks and local control and accountability plans.
   (2) Provide services that can reduce the need for a pupil's
referral to special education or placement in more restrictive,
isolated settings.
   (3) Leverage and coordinate multiple school and community
resources, including collaborations with local mental health agencies
to provide school-based mental health services.
   (4) Implement multi-tiered, evidence-based, data-driven school
districtwide and schoolwide systems of support in both academic and
behavioral areas including, but not limited to, positive behavior
interventions and support, restorative justice, bullying prevention,
social and emotional learning, trauma-informed practice, and cultural
competency.
   (5) Incorporate the types of practices, services, and efforts
described in this subdivision into the local control and
accountability plans of local educational agencies and charter
schools.
   (c) The designated county office of education or county offices of
education shall identify and develop the resources and activities
pursuant to subdivision (b) with the goal of maximizing their
availability, efficacy, and usage across the state. To achieve this
goal, the designated county office of education or county offices of
education shall employ strategies that may include the following:
   (1) Collect and disseminate evidence-based best practices.
   (2) Develop train-the-trainer models and online training modules.
   (3) Offer regional conferences and workshops.
   (4) Provide technical assistance to local educational agencies and
charter schools.
   (5) Develop a network of educators who can provide coaching and
training to other local educational agencies and charter schools.
   (6) Provide stipends for school personnel to attend training
sessions.
   (7) Develop evaluation tools to measure the effectiveness of
evidence-based strategies.
   (8) Provide competitive startup grants to help local educational
agencies and charter schools implement the practices described in
subdivision (b).
   (9) Provide demonstration grants to local educational agencies and
charter schools for the purpose of identifying, evaluating, learning
about, or testing the feasibility of effective approaches, for the
purposes of informing the other activities and resources developed
pursuant to this subdivision.
   (d) A local educational agency or charter school that receives a
grant from the designated county office of education or county
offices of education, as described in paragraphs (8) and (9) of
subdivision (c), shall, as a condition of receiving the grant,
provide to the designated county office of education or county
offices of education any available outcome data resulting from the
new practices implemented. Such outcome data may include, but is not
limited to, changes in rates of suspension or expulsion, discipline
referrals, referrals to special education, pupil attendance,
incidents of bullying or harassment, graduation rates, dropout rates,
and measures of pupil academic achievement.
   (e) By September 30 of each fiscal year until the designated
county office of education or county offices of education have fully
expended the funds allocated pursuant to subdivision (a), the
designated county office of education or county offices of education
shall submit an annual report to the Superintendent of Public
Instruction summarizing how the designated county office of education
or county offices of education used the funds in the prior fiscal
year. The Superintendent of Public Instruction shall provide copies
of these reports to the appropriate fiscal and policy committees of
the Legislature, the Department of Finance, the State Board of
Education, and the Legislative Analyst's Office. Each annual report
shall include all of the following:
   (1) A summary of the activities conducted and resources developed.

   (2) The number of local educational agencies and charter schools,
educators, and pupils served by the activities and resources.
   (3) A description of effective evidence-based strategies
identified for implementing the practices described in subdivision
(b).
   (4) A summary of any data that is available on outcomes resulting
from the activities conducted, including any data reported by local
educational agencies or charter schools pursuant to subdivision (d).
Such outcome data may include, but is not limited to, changes in
rates of suspension or expulsion, discipline referrals, referrals to
special education, pupil attendance, incidents of bullying or
harassment, graduation rates, dropout rates, and measures of pupil
academic achievement.
   (5) Recommendations for improving state-level activities or
policies.
   (f) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation made
by subdivision (a) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 2014-15 fiscal year, and
included within the "total allocation to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2014-15 fiscal
year.
  SEC. 58.  (a) The sum of five hundred million dollars
($500,000,000) is hereby appropriated from the General Fund to the
Superintendent of Public Instruction for transfer to Section A of the
State School Fund for the purposes set forth in subdivisions (b) and
(c).
   (b) Of the funds appropriated pursuant to this section, four
hundred ninety million dollars ($490,000,000) shall be apportioned to
school districts, county offices of education, charter schools, and
the state special schools in an equal amount per certificated staff
in the 2014-15 fiscal year.
   (1) A school district, county office of education, charter school,
or state special school shall expend funds allocated pursuant to
this subdivision for any of the following purposes:
   (A) Beginning teacher and administrator support and mentoring,
including, but not limited to, programs that support new teacher and
administrator ability to teach or lead effectively and to meet
induction requirements adopted by the Commission on Teacher
Credentialing and pursuant to Section 44259 of the Education Code.
   (B) Professional development, coaching, and support services for
teachers who have been identified as needing improvement or
additional support by local educational agencies.
   (C) Professional development for teachers and administrators that
is aligned to the state content standards adopted pursuant to
Sections 51226, 60605, 60605.1, 60605.2, 60605.3, 60605.8, 60605.11,
60605.85, as that section read on June 30, 2014, and 60811.3, as that
section read on June 30, 2013, of the Education Code.
   (D) To promote educator quality and effectiveness, including, but
not limited to, training on mentoring and coaching certificated staff
and training certificated staff to support effective teaching and
learning.
   (2) As a condition of receiving funds allocated pursuant to this
subdivision, a school district, county office of education, charter
school, or state special school shall do both of the following:
   (A) Develop and adopt a plan delineating how funds allocated
pursuant to this section shall be spent. The plan shall be explained
in a public meeting of the governing board of the school district,
county board of education, or governing body of the charter school,
before its adoption in a subsequent public meeting.
   (B) On or before July 1, 2018, report detailed expenditure
information to the State Department of Education, including, but not
limited to, specific purchases made and the number of teachers,
administrators, or paraprofessional educators that received
professional development. The State Department of Education shall
determine the format for this report.
   (3) A school district, county office of education, charter school,
or state special school may expend the funds received pursuant to
this subdivision over the 2015-16 fiscal year, 2016-17 fiscal year,
and the 2017-18 fiscal year. It is the intent of the Legislature that
school districts, county offices of education, charter schools, and
state special schools coordinate the use of any federal funds
received under Title II of the federal No Child Left Behind Act of
2001 (Public Law 107-110) to support teachers and administrators with
the provisions of this subdivision.
   (4) The State Department of Education shall summarize the
information reported pursuant to paragraph (2) and shall submit the
summary to the appropriate budget subcommittees and policy committees
of the Legislature and to the Department of Finance on or before
January 1, 2019.
   (c) Of the funds appropriated pursuant to this section, ten
million dollars ($10,000,000) shall be provided to the K-12
High-Speed Network for the purpose of providing professional
development and technical assistance to local educational agencies
related to network management.
   (1) Professional development and technical assistance shall
include training of local educational agency staff, and development
and distribution of best practices, guidance, and other elements of
technical support to implement network infrastructure within schools
and to provide school districts with utilization information for
optimal decisions.
   (2) The K-12 High-Speed Network may partner with county offices of
education or other local educational agencies to provide statewide
access to training and resources.
   (d) Funding apportioned pursuant to this section is subject to the
annual audits required by Section 41020 of the Education Code.
   (e) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the funds appropriated
pursuant to this section shall be deemed to be "General Fund
revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2014-15 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2014-15 fiscal year.
  SEC. 59.  Commencing with the 2015-16 fiscal year, and for every
fiscal year thereafter, the Superintendent of Public Instruction
shall reduce any home-to-school transportation funding of the county
local control funding formula calculated pursuant to Sections 2574
and 2575 of the Education Code allocated to the Los Angeles County
Superintendent of Schools by two million seven hundred eighty-five
thousand four hundred forty-eight dollars ($2,785,448), and shall
increase the home-to-school transportation funding of the school
district local control funding formula calculated pursuant to
Sections 42238.02 and 42238.03 of the Education Code in the following
amounts for the following school districts:
   (a) Two hundred ninety-two thousand three hundred ninety-three
dollars ($292,393) for the Azusa Unified School District.
   (b) Five hundred thirty-two thousand three hundred eighty-eight
dollars ($532,388) for the Baldwin Park Unified School District.
   (c) One hundred thirty-two thousand six hundred twenty-nine
dollars ($132,629) for the Bassett Unified School District.
   (d) Two hundred forty-three thousand five hundred four dollars
($243,504) for the Bonita Unified School District.
   (e) One hundred fifty-two thousand seven hundred forty-six dollars
($152,746) for the Charter Oak Unified School District.
   (f) One hundred ninety-four thousand three hundred eighty-three
dollars ($194,383) for the Claremont Unified School District.
   (g) Three hundred eighty-six thousand eight hundred ninety-four
dollars ($386,894) for Covina-Valley Unified School District.
   (h) Two hundred forty-four thousand nine hundred eight dollars
($244,908) for the Glendora Unified School District.
   (i) Two hundred eighty thousand four hundred sixty-three dollars
($280,463) for the Walnut Valley Unified School District.
   (j) Three hundred twenty-five thousand one hundred forty dollars
($325,140) for the West Covina Unified School District.
  SEC. 60.  The Legislature finds and declares that a special law, as
set forth in Sections 8 to 13, inclusive, of this act, is necessary
and that a general law cannot be made applicable within the meaning
of Section 16 of Article IV of the California Constitution because of
the unique circumstances concerning the City and County of San
Francisco.
  SEC. 61.  The Legislature finds and declares that a special law, as
set forth in Section 46 of this act, is necessary and that a general
law cannot be made applicable within the meaning of Section 16 of
Article IV of the California Constitution because of the unique
circumstances relating to the fiscal emergency in the Inglewood
Unified School District.
  SEC. 62.  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. 63.  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.