BILL NUMBER: SB 477 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 22, 2011
AMENDED IN SENATE APRIL 26, 2011
AMENDED IN SENATE APRIL 13, 2011
INTRODUCED BY Senator Wright
FEBRUARY 17, 2011
An act to amend Section 48260.5 of the Education Code,
relating to pupils. An act relating to the Inglewood
Unified School District, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 477, as amended, Wright. Pupils: truancy.
Inglewood Unified School District: emergency loan.
(1) Existing law provides for emergency apportionments to school
districts subject to specified conditions including, in certain
circumstances, the repayment of an emergency loan over a period of no
more than 10 years and the appointment by the Superintendent of
Public Instruction of an administrator who would exercise the powers
and responsibilities of the governing board of the school district.
This bill would express the intent of the Legislature to provide
emergency apportionment assistance to the Inglewood Unified School
District, and require the Superintendent to assume all the rights,
duties, and powers of the governing board of the Inglewood Unified
School District and to appoint, in consultation with the Los Angeles
County Superintendent of Schools, a state administrator to act on
behalf of the Superintendent in exercising the Superintendent's
authority over the school district.
The bill would continue the authority of the Superintendent and
the state administrator over the school district until certain
enumerated conditions are met, including the completion of assessment
and improvement plans for the school district.
The bill would require the County Office Fiscal Crisis and
Management Assistance Team (FCMAT) to provide specified assistance
relating to the development of a multiyear financial recovery plan,
the preparation of budget reports, and the recommendation of
activities that could enhance revenue or achieve cost savings.
The bill would require the school district to bear 100% of the
costs associated with implementing the provisions of the bill
relating to the administration of the emergency apportionment
assistance and the activities of the FCMAT, thereby imposing a
state-mandated local program.
The bill would appropriate $12,900,000 from the General Fund to
the Superintendent for apportionment as an emergency loan to the
Inglewood Unified School District, and would specify procedures for
repayment of the loan. The bill would authorize the school district
to sell property owned by the school district from June 1, 2011, to
June 30, 2014, inclusive, and use the proceeds from the sale to
reduce or retire the emergency loan, and would prohibit the school
district from being eligible for financial hardship assistance under
the Leroy F. Greene School Facilities Act of 1998 from June 1, 2011,
to June 30, 2016, inclusive.
(2) This bill would make a legislative finding and declaration
that the unique circumstances of the Inglewood Unified School
District warrant the enactment of a special statute.
(3) 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 no reimbursement is required by this
act for a specified reason.
(1) Existing law provides that a pupil subject to compulsory
full-time education or to compulsory continuation education who is
absent from school without valid excuse 3 full days in one school
year, or tardy or absent for more than any 30-minute period during
the schoolday without a valid excuse on 3 occasions in one school
year, or any combination thereof, is a truant. Existing law requires,
upon a pupil's initial classification as a truant, a school district
to notify the pupil's parent or guardian using the most
cost-effective method possible, which may include electronic mail or
a telephone call, that the pupil is truant, and to communicate
additional information relating to truancy, as prescribed.
This bill would require each school district to establish a policy
specifying the time period for notifying the parent or guardian of a
pupil upon the pupil's initial classification as a truant. By
requiring school districts to perform a new duty, this bill would
impose a state-mandated local program.
(2) 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.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to
provide emergency appropriation assistance to the Inglewood Unified
School District, and invoke the provisions of Article 2 (commencing
with Section 41320) of, and Article 2.5 (commencing with Section
41325) of, Chapter 3 of Part 24 of Division 3 of Title 2 of the
Education Code, except as otherwise provided in this act, in order to
restore the school district to fiscal solvency.
SEC. 2. As provided in subdivision (b) of Section
41326 of the Education Code, the Superintendent of Public Instruction
shall assume all legal rights, duties, and powers of the governing
board of the Inglewood Unified School District, and shall appoint a
state administrator, in consultation with the county superintendent
of schools, to act on his or her behalf in carrying out the
requirements of Article 2 (commencing with Section 41320) of, and
Article 2.5 (commencing with Section 41325) of, Chapter 3 of Part 24
of Division 3 of Title 2 of the Education Code. Notwithstanding
subdivision (e) of Section 41326 of the Education Code, the authority
of the Superintendent of Public Instruction and the state
administrator shall continue until all of the following occur:
(a) (1) At any time after one complete fiscal year has elapsed
following the school district's acceptance of a loan as described in
subdivision (a) of Section 41326 of the Education Code, the state
administrator determines, and so notifies the Superintendent of
Public Instruction and the county superintendent of schools, that
future compliance by the school district with the recovery plans
approved pursuant to paragraph (2) is probable.
(2) The Superintendent of Public Instruction may return power to
the governing board of the school district for any area listed in
subdivision (a) of Section 41327.1 of the Education Code, if
performance under the recovery plan for that area has been
demonstrated to the satisfaction of the Superintendent of Public
Instruction.
(b) The Superintendent of Public Instruction has approved all of
the recovery plans referred to in subdivision (a) of Section 41327 of
the Education Code, and the County Office Fiscal Crisis and
Management Assistance Team completes the improvement plans specified
in Section 41327.1 of the Education Code and has completed a minimum
of two reports identifying the school district's progress in
implementing the improvement plans.
(c) The state administrator certifies that all necessary
collective bargaining agreements have been negotiated and ratified,
and that the agreements are consistent with the terms of the recovery
plans.
(d) The school district has completed all reports required by the
Superintendent of Public Instruction and the state administrator.
(e) The state administrator certifies that the members of the
school board and district personnel, as appropriate, have
successfully completed the training specified in subdivision (b) of
Section 6 of this act.
(f) The Superintendent of Public Instruction determines that
future compliance by the school district with the recovery plans
approved pursuant to subdivision (b) is probable.
SEC. 3. In addition to the implementation of
subdivision (b) of Section 41325 of the Education Code, it is the
intent of the Legislature that the Superintendent of Public
Instruction, operating through the appointed state administrator, do
all of the following:
(a) Work with the staff and governing board of the Inglewood
Unified School District to identify the procedures and programs that
the school district will implement during the 2010-11 school year and
future school years that do all of the following:
(1) Significantly raise pupil achievement.
(2) Improve pupil attendance.
(3) Lower pupil dropout rate.
(4) Increase parental involvement.
(5) Attract, retain, and train a quality teaching staff.
(6) Manage fiscal expenditures in a manner that is consistent with
the current and projected revenues of the school district.
(b) Analyze the identified procedures and programs and, where
applicable and appropriate, protect, maintain, and expand them as the
budget of the school district allows. The state administrator shall
report any findings applicable to this section to the Superintendent
of Public Instruction and the education committees of the
Legislature.
(c) To the extent allowed by school district finances, maintain,
under the revised program, core educational reforms that will lead to
districtwide improvement of academic achievement, including, but not
necessarily limited to, educational reforms targeting
underperforming and program improvement schools and other reforms
that have demonstrated measurable success.
SEC. 4. (a) The County Office Fiscal Crisis and
Management Assistance Team (FCMAT), with concurrence from the
Superintendent of Public Instruction, shall do all of the following:
(1) Provide assistance to the state administrator in the
development of the first annual multiyear financial recovery plan
required under paragraph (2) of subdivision (a) of Section 41327 of
the Education Code.
(2) Provide assistance to the state administrator in the
development of the adopted budget and interim reports.
(3) Recommend to the Superintendent of Public Instruction any
studies or activities that should be undertaken by the state
administrator to enhance revenue or achieve cost savings.
(4) Provide any other assistance as described in Section 42127.8
of the Education Code.
(b) The Inglewood Unified School District shall bear 100 percent
of all costs associated with implementing Article 2.5 (commencing
with Section 41325) of Chapter 3 of Part 24 of Division 3 of Title 2
of the Education Code, including the activities of the FCMAT. The
FCMAT's assistance under this section shall continue until the school
district is certified as positive pursuant to the definition in
paragraph (1) of subdivision (a) of Section 42131 of the Education
Code, or until all legal rights, duties, and powers are returned to
the governing board of the school district, whichever comes first.
SEC. 5. For the purposes of Article 2 (commencing
with Section 41320) of, and Article 2.5 (commencing with Section
41325) of, Chapter 3 of Part 24 of Division 3 of Title 2 of the
Education Code, the administrator is a public school employer within
the meaning of the Educational Employment Relations Act (Chapter 10.7
(commencing with Section 3540) of Division 4 of Title 1 of the
Government Code).
SEC. 6. (a) The Superintendent of Public
Instruction may consider the comprehensive assessment conducted by
the County Office Fiscal Crisis and Management Assistance Team
(FCMAT) pursuant to Section 41327.1 of the Education Code to meet the
requirements for the financial management review and recovery plan
identified in paragraph (1) of subdivision (a) of Section 41327.1 of
the Education Code.
(b) The improvement plan for personnel management specified in
paragraph (3) of subdivision (a) of Section 41327.1 of the Education
Code shall include, but not necessarily be limited to, the following
training:
(1) Training for members of the governing board of the Inglewood
Unified School District in the subjects about which members of the
governing board need to have knowledge to effectively discharge their
duties as school board members, with specific training in the
fiduciary responsibilities of a governing board member and in the
financial management practices necessary for governing board members
to effectively discharge their duty to oversee and monitor the
budget, accounting practices, revenues, and expenditures of the
school district. At a minimum, each school board member shall
participate in the Masters In Governance training provided by the
California School Boards Association. The cost for this training
shall be borne by the school district.
(2) Training for all personnel with management, policymaking, and
advisory responsibilities who report or would report directly to the
state administrator, to ensure they have the knowledge and skills to
effectively administer their areas of responsibility consistent with
sound fiscal practices and the budgetary requirements of the school
district.
(c) Notwithstanding the timelines in subdivision (d) of Section
41327.1 of the Education Code, after the first written status report,
FCMAT shall file subsequent reports annually thereafter as
determined by the Superintendent of Public Instruction.
SEC. 7. (a) The sum of twelve million nine hundred
thousand dollars ($12,900,000) is hereby appropriated from the
General Fund to the Superintendent of Public Instruction for
apportionment to the Inglewood Unified School District for the
purpose of an emergency loan. In order to qualify for the loan, the
school district shall comply with Article 2 (commencing with Section
41320) of, and Article 2.5 (commencing with Section 41325) of,
Chapter 3 of Part 24 of Division 3 of Title 2 of the Education Code
to the extent those provisions are consistent with the conditions
specified in this act.
(b) Funds may be disbursed from the proceeds of the loan only if
the state administrator and the County Office Fiscal Crisis and
Management Assistance Team jointly determine that the disbursement is
necessary to support the immediate cashflow needs of the school
district.
(c) Based on the needs of the school district to meet its
obligations, the Superintendent of Public Instruction may direct the
Controller to disburse, on a monthly basis, specific amounts of the
emergency loan before the approval of all of the conditions
established by this act.
(d) For the fiscal year in which the apportionments are disbursed
and each year thereafter, the Controller, or his or her designee,
shall cause an audit in lieu of the audit required by Section 41020
of the Education Code to be conducted of the books and accounts of
the school district. At the discretion of the Controller, the audit
may be conducted by the Controller, his or her designee, or an
auditor selected by the school district and approved by the
Controller. The costs of these audits shall be borne by the school
district. The audits shall be required until the Controller
determines, in consultation with the Superintendent of Public
Instruction, that the school district is financially solvent but in
no event earlier than one year following the implementation of the
plan or later than the time the apportionment made is repaid,
including interest.
SEC. 8. (a) The Inglewood Unified School District
shall repay the emergency loan incurred pursuant to Section 7 of this
act as a straight line loan amortized over a 20-year term. This
amount shall be repaid by the school district, plus interest
calculated at a rate equal to the rate earned by the Pooled Money
Investment Account on the date this act becomes effective, for a
period not to exceed 20 years.
(b) If a required payment is not made within 60 days after a
scheduled date, the Controller shall pay the defaulted loan payment
of principal and interest by withholding that amount from the next
available payment that would otherwise be made to the county
treasurer on behalf of the school district pursuant to Section 14041
of the Education Code. However, subject to the approval of the
Department of Finance, the amount withheld may be in monthly amounts
as determined by an agreement between the Inglewood Unified School
District and the Controller during the period beginning with the next
available apportionment through the month preceding the next
scheduled payment.
(c) The school district shall enter into a lease financing with
the California Infrastructure and Economic Development Bank for the
purpose of financing the emergency apportionment, including a
repayment to the General Fund of the amount advanced pursuant to
Section 7 of this act. In addition to the emergency apportionment,
the lease financing may include funds necessary for reserves,
capitalized interest, credit enhancements, and costs of issuance. The
bank shall issue bonds for that purpose pursuant to the powers
granted pursuant to the Bergeson-Peace Infrastructure and Economic
Development Bank Act as set forth in Division 1 (commencing with
Section 63000) of Title 6.7 of the Government Code. The term of the
lease shall not exceed 20 years, except that if at the end of the
lease term any rent payable is not fully paid, or if the rent payable
has been abated, the term of the lease shall be extended for a
period not to exceed 10 years.
(d) The Director of Finance may amend the payment schedule set
forth in subdivision (a) if the director concludes that the amendment
is warranted and is in the best interests of both the state and the
Inglewood Unified School District education program. Upon that
determination, the director shall notify the Joint Legislative Budget
Committee that the payment schedule will be changed on the date that
is 90 days from the date of notification if the Legislature is in
session. If the 90-day period ends during a recess of the Legislature
or while the Legislature is not in session, the 90-day period shall
be extended until the Legislature reconvenes. Amendments to the
payment schedule shall defer the unpaid portion of a repayment of the
earliest fiscal year in which no other repayment is scheduled.
Interest shall accrue on the unpaid portion of a repayment from the
scheduled due date until the time the payment is actually made. The
interest charge shall be the rate equal to the daily investment rate
of the Pooled Money Investment Account on the date the pay schedule
is changed.
(e) The school district may repay its loan obligation without
incurring any prepayment penalties.
SEC. 9. (a) Notwithstanding Sections 17456, 17457,
17462, and 17463 of the Education Code, or any other law, from June
1, 2011, to June 30, 2014, 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 7 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, 2011, to June 30,
2016, 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. 10. The Los Angeles County Superintendent of
Schools maintains the responsibility to superintend school districts
under his or her jurisdiction. This act does not remove any statutory
or regulatory rights, duties, or obligations from the county
superintendent of schools.
SEC. 11. The Legislature finds and declares that,
due to unique circumstances relating to the fiscal emergency in the
Inglewood Unified School District, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution.
SEC. 12. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district are the result of a program for which
legislative authority was requested by that local agency or school
district, within the meaning of Section 17556 of the Government Code
and Section 6 of Article XIII B of the California Constitution.
SECTION 1. Section 48260.5 of the Education
Code is amended to read:
48260.5. (a) Upon a pupil's initial classification as a truant,
the school district shall notify the pupil's parent or guardian using
the most cost-effective method possible, which may include
electronic mail or a telephone call:
(1) That the pupil is truant.
(2) That the parent or guardian is obligated to compel the
attendance of the pupil at school.
(3) That parents or guardians who fail to meet this obligation may
be guilty of an infraction and subject to prosecution pursuant to
Article 6 (commencing with Section 48290) of Chapter 2 of Part 27.
(4) That alternative educational programs are available in the
district.
(5) That the parent or guardian has the right to meet with
appropriate school personnel to discuss solutions to the pupil's
truancy.
(6) That the pupil may be subject to prosecution under Section
48264.
(7) That the pupil may be subject to suspension, restriction, or
delay of the pupil's driving privilege pursuant to Section 13202.7 of
the Vehicle Code.
(8) That it is recommended that the parent or guardian accompany
the pupil to school and attend classes with the pupil for one day.
(b) A school district shall establish a policy specifying the time
period for notifying the parent or guardian of a pupil upon the
pupil's initial classification as a truant pursuant to subdivision
(a).
SEC. 2. 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.