Bill Text: CA SB971 | 2013-2014 | Regular Session | Chaptered


Bill Title: School finance: categorical programs.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2014-09-30 - Chaptered by Secretary of State. Chapter 923, Statutes of 2014. [SB971 Detail]

Download: California-2013-SB971-Chaptered.html
BILL NUMBER: SB 971	CHAPTERED
	BILL TEXT

	CHAPTER  923
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2014
	PASSED THE SENATE  AUGUST 19, 2014
	PASSED THE ASSEMBLY  AUGUST 18, 2014
	AMENDED IN ASSEMBLY  AUGUST 14, 2014
	AMENDED IN ASSEMBLY  JUNE 19, 2014
	AMENDED IN SENATE  APRIL 9, 2014
	AMENDED IN SENATE  MARCH 27, 2014

INTRODUCED BY   Senator Huff

                        FEBRUARY 10, 2014

   An act to amend Sections 17199.4, 17592.74, 32282, 35292.5,
41003.3, 47650, 47651, 48660, and 60851 of, to repeal Sections 315.5,
316.5, 317, 1982.3, 1982.5, 1983.5, 17584.3, 17586, 17588, 17592,
32285, 46306, 47613.2, 47634.1, 48660.2, 48664, and 60510.1 of, to
amend and renumber the heading of Article 2 (commencing with Section
60510) and Article 4 (commencing with Section 60530) of Chapter 4 of
Part 33 of Division 4 of Title 2 of, to repeal Article 11 (commencing
with Section 1830) of Chapter 6 of Part 2 of Division 1 of Title 1
of, to repeal Article 1 (commencing with Section 41500), Article 2
(commencing with Section 41505), Article 3 (commencing with Section
41510), Article 4 (commencing with Section 41520), Article 5
(commencing with Section 41530), and Article 7 (commencing with
Section 41570) of Chapter 3.2 of Part 24 of Division 3 of Title 2 of,
to repeal Article 13 (commencing with Section 41920) of Chapter 5 of
Part 24 of Division 3 of Title 2 of, to repeal Article 5 (commencing
with Section 44520), Article 6 (commencing with Section 44560),
Article 8 (commencing with Section 44580), Article 10 (commencing
with Section 44630), and Article 10.6 (commencing with Section 44650)
of Chapter 3 of Part 25 of Division 3 of Title 2 of, to repeal
Article 4.5 (commencing with Section 52378) and Article 8 (commencing
with Section 52480) of Chapter 9 of Part 28 of Division 4 of Title 2
of, to repeal Article 4 (commencing with Section 52750) of Chapter
11 of Part 28 of Division 4 of Title 2 of, to repeal Article 1
(commencing with Section 52800) of Chapter 12 of Part 28 of Division
4 of Title 2 of, to repeal Article 7 (commencing with Section 60350)
of Chapter 2 of Part 33 of Division 4 of Title 2 of, to repeal
Article 1 (commencing with Section 60500) and Article 3 (commencing
with Section 60520) of Chapter 4 of Part 33 of Division 4 of Title 2
of, to repeal Chapter 13 (commencing with Section 11200) of Part 7 of
Division 1 of Title 1 of, to repeal Chapter 2.5 (commencing with
Section 37300) of Part 22 of Division 3 of Title 2 of, to repeal
Chapter 3.3 (commencing with Section 44700), Chapter 3.33 (commencing
with Section 44720), Chapter 3.36 (commencing with Section 44735),
and Chapter 3.45 (commencing with Section 44755) of Part 25 of
Division 3 of Title 2 of, to repeal Chapter 6.8 (commencing with
Section 52080), Chapter 6.9 (commencing with Section 52100), Chapter
6.10 (commencing with Section 52120), Chapter 8 (commencing with
Section 52200), Chapter 8.5 (commencing with Section 52250), and
Chapter 8.6 (commencing with Section 52270) of Part 28 of Division 4
of Title 2 of, to repeal Chapter 2 (commencing with Section 54100) of
Part 29 of Division 4 of Title 2 of, and to repeal Chapter 5
(commencing with Section 58700) of Part 31 of Division 4 of Title 2
of, the Education Code, relating to school finance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 971, Huff. School finance: categorical programs.
   (1) Existing law establishes the public school system in this
state, and, among other things, provides for the establishment of
county superintendents of schools, school districts, and charter
schools throughout the state and for the provision of instruction at
the public elementary and secondary schools these local educational
agencies maintain. 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 establishes various education programs under which
funding is provided for specific educational purposes, which are
commonly known as categorical programs, including, among many others,
programs for community-based English tutoring, teacher training, and
class size reduction. Existing law further authorizes local
educational agencies to expend, for any local educational purpose,
the funds previously required to be spent on specified categorical
education programs.
   This bill would repeal many provisions requiring, authorizing, or
prescribing the elements of certain categorical education programs.
The bill would make conforming changes, correct cross-references, and
make other nonsubstantive changes.
   (2) This bill would incorporate additional changes to Section
17199.4 of the Education Code proposed by AB 1979 that would become
operative if this bill and AB 1979 are both enacted on or before
January 1, 2015, and this bill is enacted last.


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

  SECTION 1.  Section 315.5 of the Education Code is repealed.
  SEC. 2.  Section 316.5 of the Education Code is repealed.
  SEC. 3.  Section 317 of the Education Code is repealed.
  SEC. 4.  Article 11 (commencing with Section 1830) of Chapter 6 of
Part 2 of Division 1 of Title 1 of the Education Code is repealed.
  SEC. 5.  Section 1982.3 of the Education Code is repealed.
  SEC. 6.  Section 1982.5 of the Education Code is repealed.
  SEC. 7.  Section 1983.5 of the Education Code is repealed.
  SEC. 8.  Chapter 13 (commencing with Section 11200) of Part 7 of
Division 1 of Title 1 of the Education Code is repealed.
  SEC. 9.  Section 17199.4 of the Education Code is amended to read:
   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may elect to
guarantee or provide for payment of the bonds and related obligations
in accordance with the following conditions:
   (1) If a participating party adopts a resolution by a majority
vote of its board to participate under this section, it shall provide
notice to the Controller of that election. The notice shall include
a schedule for the repayment of principal and interest on the bonds,
and any other costs necessary or incidental to financing pursuant to
this chapter, and identify a trustee appointed by the participating
party or the authority for purposes of this section. If payment of
all or a portion of the principal and interest on the bond is secured
by a letter of credit or other instrument of direct payment, the
notice may provide for reimbursements to the provider of the
instrument in lieu of payment of that portion of the principal and
interest of the bonds. The notice shall be provided not later than
the date of issuance of the bonds or 60 days before the next payment,
whichever date is later. The participating party shall update the
notice at least annually if there is a change in the required payment
for any reason, including, but not limited to, providing for new or
increased costs necessary or incidental to the financing.
   (2) If, for any reason, the participating party will not make a
payment at the time the payment is required, the participating party
shall notify the trustee of that fact and of the amount of the
deficiency. If the trustee receives this notice from the
participating party, or does not receive any payment by the date that
payment becomes due, the trustee shall immediately communicate that
information to the Controller.
   (3) Upon receipt of the notice required by paragraph (2), the
Controller shall make an apportionment to the trustee on the date
shown in the schedule in the amount of the deficiency for the purpose
of making the required payment. The Controller shall make that
apportionment only from moneys designated for apportionment to a
participating party, provided that such moneys are from one or both
of the following:
   (A) Any funding apportioned for purposes of revenue limits or the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, to a school district or county
office of education without regard to the specific funding source of
the apportionment.
   (B) Any funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, to a charter school
without regard to the specific funding source of the apportionment.
   (4) As an alternative to the procedures set forth in paragraphs
(2) and (3), the participating party may provide a transfer schedule
in its notice to the Controller of its election to participate under
this section. The transfer schedule shall set forth amounts to be
transferred to the trustee and the date for the transfers. The
Controller, subject to the limitation in paragraph (3), shall make
apportionments to the trustee of those amounts on the specified date
for the purpose of making those transfers. The authority may require
a participating party to proceed under this subdivision.
   (b) (1) The amount apportioned for a participating party pursuant
to this section shall be deemed to be an allocation to the
participating party and shall be included in the computation of
allocation, limit, entitlement, or apportionment for the
participating party.
   (2) The participating party and its creditors do not have a claim
to funds apportioned or anticipated to be apportioned to the trustee
by the Controller pursuant to paragraph (3) and (4) of subdivision
(a), or to the funds apportioned to by the Controller to the trustee
under any other provision of this section.
   (c) (1)  Participating parties that elect to participate under
this section shall apply to the authority. The authority shall
consider each of the following priorities in making funds available:
   (A) First priority shall be given to school districts, charter
schools, or county offices of education that apply for funding for
instructional classroom space.
   (B) Second priority shall be given to school districts, charter
schools, or county offices of education that apply for funding of
modernization of instructional classroom space.
   (C) Third priority shall be given to all other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be subject
to the priorities set forth in paragraph (1).
   (d) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution or otherwise, except as
expressly provided in this section.
   (e) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
  SEC. 9.5.  Section 17199.4 of the Education Code is amended to
read:
   17199.4.  (a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may, in
accordance with this section, elect to provide for funding, in whole
or in part, one or more of the following:
   (1) Payments on authority bonds.
   (2) Payments under credit enhancement or liquidity support
agreements in connection with authority bonds.
   (3) Amounts pledged or assigned under one or more pledges or
assignments to pay authority bonds or obligations under these credit
enhancement or liquidity support agreements.
   (4) Payments to fund reserves available to pay any of the payments
described in paragraphs (1), (2), and (3), exclusively until paid.
   (5) Fees and charges contemplated by the instruments of the
authority, trustees, tender agents, remarketing agents, credit
enhancement and liquidity support providers, and service providers.
   (6) Any other costs necessary or incidental to any financing or
refinancing conducted under this chapter.
   (b) The payments made pursuant to subdivision (a) may be in
connection with a financing or refinancing benefiting the
participating party itself, one or more other participating parties,
or any combination thereof.
   (c) To participate under this section, the participating party
shall do all of the following:
   (1) Elect to participate by an action of its governing board taken
in compliance with the rules of that board.
   (2) Provide written notice to the Controller, no later than the
date of the issuance of the bonds or 60 days before the next payment,
whichever is later, of all of the following:
   (A) Its election to participate.
   (B) A schedule of the payments subject to that election.
   (C) The payee or payees of those payments, or the trustee or agent
on their behalf to receive those payments.
   (i) Payment delivery instructions, which may be by wire transfer
or other method approved by the Controller.
   (ii) If the method of payment delivery is wire transfer, the
participating party shall complete and submit the appropriate
authorization form as prescribed by the Controller.
    (d) The participating party may amend, supplement, or restate the
notice required pursuant to paragraph (2) of subdivision (c) for any
reason, including, but not necessarily limited to, providing for new
or increased payments. The participating party shall certify in the
notice and in any amendment, supplement, or restatement of the notice
that each and every payment reflected in the schedule is a payment
described in subdivision (a) and the amounts scheduled do not exceed
the actual or reasonably estimated payment obligations to be funded
pursuant to this section. The participating party shall also
represent in the notice that it is not submitting the notice for the
purpose of accelerating a participating party's receipt of its
apportionments. Nothing in this section prohibits transfer by the
recipient of an apportionment under this section to the participating
party submitting the notice of the excess apportionment above the
amount needed to fund actual payments where the excess resulted from
erroneous estimation of scheduled payments or otherwise.
   (e) Upon receipt of the notice required by paragraph (2) of
subdivision (c), the Controller shall make an apportionment to the
indicated recipient on the date, or during the period, shown in the
schedule in accordance with the following:
   (1) If the participating party requests transfers in full as
scheduled, in the amount of the scheduled transfer or such lesser
amount as is available from the sources indicated in subdivision (f).

   (2) If the participating party does not request transfers in full
as scheduled, in the amount of the anticipated deficiency for the
purpose of making the required payment indicated in a written request
of the participating party to the Controller and in the amount of
the actual shortfall in payment indicated in a written request of the
recipient or the participating party to the Controller or the lesser
amount that is available from the sources indicated in subdivision
(f).
   (3) To the extent funds available for an apportionment are
insufficient to pay the amount set forth in a schedule in any period,
the Controller shall, if and as requested in the notice, reschedule
the payment of all or a portion of the deficiency to a subsequent
period.
   (4) In making apportionments under this section, the Controller
may rely conclusively and without liability on any notice or request
delivered under this section, including any delivered prior to
enactment of the act that adds this paragraph. The Controller may
make, but is not obligated to make, apportionments not reflected on a
notice or on an amended, supplemented, or restated notice delivered
under this section that the Controller receives less than 20 days
prior to when the apportionment would otherwise be required.
   (f) The Controller shall make an apportionment under this section
only from moneys designated for apportionment to the participating
party delivering the notice, and only from one or both of the
following:
    (1) Any funding apportioned for purposes of revenue limits or the
local control funding formula pursuant to Section 42238.02, as
implemented by Section 42238.03, to a school district or county
office of education without regard to the specific funding source of
the apportionment.
   (2) Any funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, to a charter school
without regard to the specific funding source of the apportionment.
   (g) (1) The amount apportioned for a participating party pursuant
to this section shall be deemed to be an allocation to the
participating party, and shall be included in the computation of
allocation, limit, entitlement, or apportionment for the
participating party.
   (2) The participating party and its creditors do not have a claim
to funds apportioned or anticipated to be apportioned by the
Controller pursuant to this section.
   (h) (1) The authority may require participation under this section
under the terms of any financing or refinancing under this chapter
to provide for one or more of the payments described in paragraphs
(1), (2), (3), and (4) of subdivision (a). The authority may impose
limits on new participation under this section. The authority may
require participating parties to apply to the authority for
participation. If the authority limits participation under this
section, the authority shall consider each of the following
priorities in making participation available:
   (A) First priority shall be given to participating parties that
apply for funding for instructional classroom space under this
chapter.
   (B) Second priority shall be given to participating parties that
apply for funding of modernization of instructional classroom space
under this chapter.
   (C) Third priority shall be given to participating parties that
apply for funding under this chapter for any other eligible costs, as
defined in Section 17173.
   (2) The authority shall prioritize applications at appropriate
intervals.
   (3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be subject
to the priorities set forth in paragraph (1).
   (i) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section 1 of
Article XVI of the California Constitution.
   (j) A school district that has a qualified or negative
certification pursuant to Section 42131, or a county office of
education that has a qualified or negative certification pursuant to
Section 1240, may not participate under this section.
   (k) This section does not obligate the State of California to make
available the sources of apportionment under subdivision (f) in any
amount or at any time or, except as provided in this section, to fund
any payment described in this section. The addition of this
subdivision is intended solely to clarify existing law.
  SEC. 10.  Section 17584.3 of the Education Code is repealed.
  SEC. 11.  Section 17586 of the Education Code is repealed.
  SEC. 12.  Section 17588 of the Education Code is repealed.
  SEC. 13.  Section 17592 of the Education Code is repealed.
  SEC. 14.  Section 17592.74 of the Education Code is amended to
read:
   17592.74.  Notwithstanding any other law, the funds provided to
school districts from the School Facilities Emergency Repair Account
pursuant to this article for the purpose of emergency repair grants
shall not be deposited into a school district deferred maintenance
fund for purposes established pursuant to Section 17582.
  SEC. 15.  Section 32282 of the Education Code is amended to read:
   32282.  (a) The comprehensive school safety plan shall include,
but not be limited to, both of the following:
   (1) Assessing the current status of school crime committed on
school campuses and at school-related functions.
   (2) Identifying appropriate strategies and programs that will
provide or maintain a high level of school safety and address the
school's procedures for complying with existing laws related to
school safety, which shall include the development of all of the
following:
   (A) Child abuse reporting procedures consistent with Article 2.5
(commencing with Section 11164) of Chapter 2 of Title 1 of Part 4 of
the Penal Code.
   (B) Disaster procedures, routine and emergency, including
adaptations for pupils with disabilities in accordance with the
federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101
et seq.). The disaster procedures shall also include, but not be
limited to, both of the following:
   (i) Establishing an earthquake emergency procedure system in every
public school building having an occupant capacity of 50 or more
pupils or more than one classroom. A school district or county office
of education may work with the Office of Emergency Services and the
Seismic Safety Commission to develop and establish the earthquake
emergency procedure system. The system shall include, but not be
limited to, all of the following:
   (I) A school building disaster plan, ready for implementation at
any time, for maintaining the safety and care of pupils and staff.
   (II) A drop procedure whereby each pupil and staff member takes
cover under a table or desk, dropping to his or her knees, with the
head protected by the arms, and the back to the windows. A drop
procedure practice shall be held at least once each school quarter in
elementary schools and at least once a semester in secondary
schools.
   (III) Protective measures to be taken before, during, and
following an earthquake.
   (IV) A program to ensure that pupils and both the certificated and
classified staff are aware of, and properly trained in, the
earthquake emergency procedure system.
   (ii) Establishing a procedure to allow a public agency, including
the American Red Cross, to use school buildings, grounds, and
equipment for mass care and welfare shelters during disasters or
other emergencies affecting the public health and welfare. The school
district or county office of education shall cooperate with the
public agency in furnishing and maintaining the services as the
school district or county office of education may deem necessary to
meet the needs of the community.
   (C) Policies pursuant to subdivision (d) of Section 48915 for
pupils who committed an act listed in subdivision (c) of Section
48915 and other school-designated serious acts which would lead to
suspension, expulsion, or mandatory expulsion recommendations
pursuant to Article 1 (commencing with Section 48900) of Chapter 6 of
Part 27 of Division 4 of Title 2.
   (D) Procedures to notify teachers of dangerous pupils pursuant to
Section 49079.
   (E) A discrimination and harassment policy consistent with the
prohibition against discrimination contained in Chapter 2 (commencing
with Section 200) of Part 1.
   (F) The provisions of any schoolwide dress code, pursuant to
Section 35183, that prohibits pupils from wearing "gang-related
apparel," if the school has adopted that type of a dress code. For
those purposes, the comprehensive school safety plan shall define
"gang-related apparel." The definition shall be limited to apparel
that, if worn or displayed on a school campus, reasonably could be
determined to threaten the health and safety of the school
environment. Any schoolwide dress code established pursuant to this
section and Section 35183 shall be enforced on the school campus and
at any school-sponsored activity by the principal of the school or
the person designated by the principal. For purposes of this
paragraph, "gang-related apparel" shall not be considered a protected
form of speech pursuant to Section 48950.
   (G) Procedures for safe ingress and egress of pupils, parents, and
school employees to and from school.
   (H) A safe and orderly environment conducive to learning at the
school.
   (I) The rules and procedures on school discipline adopted pursuant
to Sections 35291 and 35291.5.
   (b) It is the intent of the Legislature that schools develop
comprehensive school safety plans using existing resources, including
the materials and services of the partnership, pursuant to this
chapter. It is also the intent of the Legislature that schools use
the handbook developed and distributed by the School/Law Enforcement
Partnership Program entitled "Safe Schools: A Planning Guide for
Action" in conjunction with developing their plan for school safety.
   (c) Each schoolsite council or school safety planning committee in
developing and updating a comprehensive school safety plan shall,
where practical, consult, cooperate, and coordinate with other
schoolsite councils or school safety planning committees.
   (d) The comprehensive school safety plan may be evaluated and
amended, as needed, by the school safety planning committee, but
shall be evaluated at least once a year, to ensure that the
comprehensive school safety plan is properly implemented. An updated
file of all safety-related plans and materials shall be readily
available for inspection by the public.
   (e) As comprehensive school safety plans are reviewed and updated,
the Legislature encourages all plans, to the extent that resources
are available, to include policies and procedures aimed at the
prevention of bullying.
   (f) The comprehensive school safety plan, as written and updated
by the schoolsite council or school safety planning committee, shall
be submitted for approval under subdivision (a) of Section 32288.
  SEC. 16.  Section 32285 of the Education Code is repealed.
  SEC. 17.  Section 35292.5 of the Education Code is amended to read:

   35292.5.  (a) Every public and private school maintaining any
combination of classes from kindergarten to grade 12, inclusive,
shall comply with all of the following:
   (1) Every restroom shall at all times be maintained and cleaned
regularly, fully operational and stocked at all times with toilet
paper, soap, and paper towels or functional hand dryers.
   (2) The school shall keep all restrooms open during school hours
when pupils are not in classes, and shall keep a sufficient number of
restrooms open during school hours when pupils are in classes.
   (b) Notwithstanding subdivision (a), a school may temporarily
close a restroom as necessary for pupil safety or as necessary to
repair the facility.
  SEC. 18.  Chapter 2.5 (commencing with Section 37300) of Part 22 of
Division 3 of Title 2 of the Education Code is repealed.
  SEC. 19.  Section 41003.3 of the Education Code is amended to read:

   41003.3.  (a) Consistent with the provisions of Article 4
(commencing with Section 17455) of Chapter 4 of Part 10.5 of Division
1 of Title 1, from July 1, 2008, to June 30, 2010, inclusive, the
Dixon Unified School District may sell surplus real property
previously used as the school farm on Sievers Road, located five
miles outside of the city and which is not feasible for future school
construction, together with any personal property located thereon,
purchased entirely with local funds. The proceeds of the sale shall
be deposited into the general fund of the school district in order to
reestablish a 3-percent reserve. The remainder of the proceeds from
the sale of the property that are not used to reestablish the
3-percent reserve shall be deposited into the capital outlay fund of
the school district.
   (b) In order to expend funds pursuant to subdivision (a), the
school district shall meet all of the following conditions:
   (1) The school district shall not be eligible for new construction
funding for 10 years from the date that funds are deposited into the
general fund of the school district pursuant to subdivision (a),
except that the school district may apply for new construction funds
if both of the following conditions are met:
   (A) At least five years have elapsed since the date upon which the
sale was executed pursuant to subdivision (a).
   (B) The State Allocation Board determines that the school district
has demonstrated enrollment growth or a need for additional sites or
building construction that the school district could not have easily
anticipated at the time the sale was executed pursuant to
subdivision (a).
   (2) The governing board of the school district shall complete a
governance training program focusing on fiscal management provided by
the County Office Fiscal Crisis and Management Assistance Team.
   (3) Any remaining funds from the sale of the property shall be
exhausted for capital outlay purposes before a request for
modernization funding.
   (4) Notwithstanding any other law, the Dixon Unified School
District, from July 1, 2008, to June 30, 2010, inclusive, shall not
be eligible to receive 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.
   (5) The governing board of the school district shall certify all
of the following to the State Allocation Board:
   (A) The school district has no major deferred maintenance
requirements that cannot be completed with existing capital outlay
resources.
   (B) The sale of the real property pursuant to this section does
not violate any provisions of a local general obligation bond act.
   (C) The real property sold pursuant to this section is not
suitable to meet any projected school construction need for the next
10 years.
   (6) Before exercising the authority granted by this section, the
governing board of the school district, at a regularly scheduled
meeting, shall present a plan for expending one-time resources
pursuant to this section. The plan shall identify the source and use
of the funds, and describe how the proposed use of funds, in
combination with budget reductions, will address the school district'
s deficit spending and restore the ongoing fiscal solvency of the
school district.
   (7) No later than 10 years after the date of the sale of surplus
property pursuant to subdivision (a), the school district shall
deposit into its capital outlay fund an amount equal to the amount of
the proceeds from the sale of the property that is deposited into
the school district's general fund as needed to establish the
3-percent reserve in accordance with subdivision (a).
   (c) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
  SEC. 20.  Article 1 (commencing with Section 41500) of Chapter 3.2
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 21.  Article 2 (commencing with Section 41505) of Chapter 3.2
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 22.  Article 3 (commencing with Section 41510) of Chapter 3.2
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 23.  Article 4 (commencing with Section 41520) of Chapter 3.2
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 24.  Article 5 (commencing with Section 41530) of Chapter 3.2
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.

SEC. 25.  Article 7 (commencing with Section 41570) of Chapter 3.2 of
Part 24 of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 26.  Article 13 (commencing with Section 41920) of Chapter 5
of Part 24 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 27.  Article 5 (commencing with Section 44520) of Chapter 3 of
Part 25 of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 28.  Article 6 (commencing with Section 44560) of Chapter 3 of
Part 25 of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 29.  Article 8 (commencing with Section 44580) of Chapter 3 of
Part 25 of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 30.  Article 10 (commencing with Section 44630) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 31.  Article 10.6 (commencing with Section 44650) of Chapter 3
of Part 25 of Division 3 of Title 2 of the Education Code is
repealed.
  SEC. 32.  Chapter 3.3 (commencing with Section 44700) of Part 25 of
Division 3 of Title 2 of the Education Code is repealed.
  SEC. 33.  Chapter 3.33 (commencing with Section 44720) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 34.  Chapter 3.36 (commencing with Section 44735) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 35.  Chapter 3.45 (commencing with Section 44755) of Part 25
of Division 3 of Title 2 of the Education Code is repealed.
  SEC. 36.  Section 46306 of the Education Code is repealed.
  SEC. 37.  Section 47613.2 of the Education Code is repealed.
  SEC. 38.  Section 47634.1 of the Education Code, as added by
Section 24 of Chapter 2 of the Fourth Extraordinary Session of the
Statutes of 2009, is repealed.
  SEC. 39.  Section 47650 of the Education Code is amended to read:
   47650.  A charter school shall be deemed to be a school district
for purposes of determining the manner in which warrants are drawn on
the State School Fund pursuant to Section 14041. For purposes of
Section 14041, a charter school's "total amount certified" means the
state aid portion of the charter school's total local control funding
formula allocation pursuant to Section 42238.02, as implemented by
Section 42238.03.
  SEC. 40.  Section 47651 of the Education Code is amended to read:
   47651.  (a) A charter school may receive the state aid portion of
the charter school's total local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
directly or through the local educational agency that either grants
its charter or was designated by the state board.
   (1) In the case of a charter school that elects to receive its
funding directly, the warrant shall be drawn in favor of the county
superintendent of schools of the county in which the local
educational agency that granted the charter or was designated by the
state board as the oversight agency pursuant to paragraph (1) of
subdivision (k) of Section 47605 is located, for deposit to the
appropriate funds or accounts of the charter school in the county
treasury. The county superintendent of schools is authorized to
establish appropriate funds or accounts in the county treasury for
each charter school.
   (2) In the case of a charter school that does not elect to receive
its funding directly pursuant to this section, the warrant shall be
drawn in favor of the county superintendent of schools of the county
in which the local educational agency that granted the charter is
located or was designated the oversight agency by the state board
pursuant to paragraph (1) of subdivision (k) of Section 47605, for
deposit to the appropriate funds or accounts of the local educational
agency.
   (3) In the case of a charter school, the charter of which was
granted by the state board, but for which the state board has not
delegated oversight responsibilities pursuant to paragraph (1) of
subdivision (k) of Section 47605, the warrant shall be drawn in favor
of the county superintendent of schools in the county where the
local educational agency is located that initially denied the charter
that was later granted by the state board. The county superintendent
of schools is authorized to establish appropriate funds or accounts
in the county treasury for each charter school.
   (b) On or before June 1 of each year, a charter school electing to
receive its funding directly shall so notify the county
superintendent of schools of the county in which the local
educational agency that granted the charter is located or, in the
case of charters for which the state board has designated an
oversight agency pursuant to paragraph (1) of subdivision (k) of
Section 47605, the county superintendent of schools of the county in
which the designated oversight agency is located. An election to
receive funding directly shall apply to all funding that the charter
school is eligible to receive including, but not limited to, the
local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, other state and federal
categorical aid, and lottery funds.
  SEC. 41.  Section 48660 of the Education Code is amended to read:
   48660.  (a) The governing board of a school district may establish
one or more community day schools for pupils who meet one or more of
the conditions described in subdivision (b) of Section 48662. A
community day school may serve pupils in any of kindergarten and
grades 1 to 6, inclusive, or any of grades 7 to 12, inclusive, or the
same or lesser included range of grades as may be found in an
individual middle or junior high school operated by the school
district. If a school district is organized as a school district that
serves kindergarten and grades 1 to 8, inclusive, but no higher
grades, the governing board of the school district may establish a
community day school for any kindergarten and grades 1 to 8,
inclusive, upon a two-thirds vote of the governing board of the
school district. It is the intent of the Legislature, that to the
extent possible, the governing board of a school district operating a
community day school for any of kindergarten and grades 1 to 8,
inclusive, separate younger pupils from older pupils within that
community day school.
   (b) The average daily attendance of a community day school shall
be determined by dividing the total number of days of attendance in
all full school months, by a divisor of 70 in the first period of
each fiscal year, by a divisor of 135 in the second period of each
fiscal year, and by a divisor of 180 at the annual time of each
fiscal year.
  SEC. 42.  Section 48660.2 of the Education Code is repealed.
  SEC. 43.  Section 48664 of the Education Code is repealed.
  SEC. 44.  Chapter 6.8 (commencing with Section 52080) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 45.  Chapter 6.9 (commencing with Section 52100) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 46.  Chapter 6.10 (commencing with Section 52120) of Part 28
of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 47.  Chapter 8 (commencing with Section 52200) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 48.  Chapter 8.5 (commencing with Section 52250) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 49.  Chapter 8.6 (commencing with Section 52270) of Part 28 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 50.  Article 4.5 (commencing with Section 52378) of Chapter 9
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 51.  Article 8 (commencing with Section 52480) of Chapter 9 of
Part 28 of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 52.  Article 4 (commencing with Section 52750) of Chapter 11
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 53.  Article 1 (commencing with Section 52800) of Chapter 12
of Part 28 of Division 4 of Title 2 of the Education Code is
repealed.
  SEC. 54.  Chapter 2 (commencing with Section 54100) of Part 29 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 55.  Chapter 5 (commencing with Section 58700) of Part 31 of
Division 4 of Title 2 of the Education Code is repealed.
  SEC. 56.  Article 7 (commencing with Section 60350) of Chapter 2 of
Part 33 of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 57.  Article 1 (commencing with Section 60500) of Chapter 4 of
Part 33 of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 58.  The heading of Article 2 (commencing with Section 60510)
of Chapter 4 of Part 33 of Division 4 of Title 2 of the Education
Code is amended and renumbered to read:

      Article 1.  Donation or Sale


  SEC. 59.  Section 60510.1 of the Education Code is repealed.
  SEC. 60.  Article 3 (commencing with Section 60520) of Chapter 4 of
Part 33 of Division 4 of Title 2 of the Education Code is repealed.
  SEC. 61.  The heading of Article 4 (commencing with Section 60530)
of Chapter 4 of Part 33 of Division 4 of Title 2 of the Education
Code is amended and renumbered to read:

      Article 2.  Destruction


  SEC. 62.  Section 60851 of the Education Code is amended to read:
   60851.  (a) Commencing with the 2003-04 school year and each
school year thereafter, each pupil completing grade 12 shall
successfully pass the high school exit examination as a condition of
receiving a diploma of graduation or a condition of graduation from
high school. Funding for the administration of the high school exit
examination shall be provided for in the annual Budget Act. The
Superintendent shall apportion funds appropriated for this purpose to
enable school districts to meet the requirements of this subdivision
and subdivisions (b), (c), and (d). The state board shall establish
the amount of funding to be apportioned per test administered, based
on a review of the cost per test.
   (b) Each pupil shall take the high school exit examination in
grade 10 beginning in the 2001-02 school year and may take the
examination during each subsequent administration, until each section
of the examination has been passed.
   (c) (1)  At the parent or guardian's request, a school principal
shall submit a request for a waiver of the requirement to
successfully pass the high school exit examination to the governing
board of the school district for a pupil with a disability who has
taken the high school exit examination with modifications that alter
what the test measures and has received the equivalent of a passing
score on one or both subject matter parts of the high school exit
examination. A governing board of a school district may waive the
requirement to successfully pass one or both subject matter parts of
the high school exit examination for a pupil with a disability if the
principal certifies to the governing board of the school district
that the pupil has all of the following:
   (A)  An individualized education program adopted pursuant to the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1400 et seq.) or a plan adopted pursuant to Section 504 of the
federal Rehabilitation Act of 1973 (29 U.S.C. Sec. 794(a)) in place
that requires the accommodations or modifications to be provided to
the pupil when taking the high school exit examination.
   (B)  Sufficient high school level coursework either satisfactorily
completed or in progress in a high school level curriculum
sufficient to have attained the skills and knowledge otherwise needed
to pass the high school exit examination.
   (C)  An individual score report for the pupil showing that the
pupil has received the equivalent of a passing score on the high
school exit examination while using a modification that fundamentally
alters what the high school exit examination measures as determined
by the state board.
   (2) A school district shall report to the state board, in a manner
and by a date determined by the Superintendent, the number and
characteristics of waivers reviewed, granted, and denied under this
subdivision and any additional information determined to be in
furtherance of this subdivision.
   (d) The high school exit examination shall be offered in each
public school and state special school that provides instruction in
grades 10, 11, or 12, on the dates designated by the Superintendent.
A high school exit examination may not be administered on any date
other than those designated by the Superintendent as examination days
or makeup days.
   (e) The results of the high school exit examination shall be
provided to each pupil taking the examination within eight weeks of
the examination administration and in time for the pupil to take any
section of the examination not passed at the next administration. A
pupil shall take again only those parts of the high school exit
examination he or she has not previously passed and may not retake
any portion of the high school exit examination that he or she has
previously passed.
   (f) Supplemental instruction shall be provided to any pupil who
does not demonstrate sufficient progress toward passing the high
school exit examination. To the extent that school districts have
aligned their curriculum with the state academic content standards
adopted by the state board, the curriculum for supplemental
instruction shall reflect those standards and shall be designed to
assist the pupils to succeed on the high school exit examination.
This chapter does not require the provision of supplemental services
using resources that are not regularly available to a school or
school district, including summer school instruction. In no event
shall any action taken as a result of this subdivision cause or
require reimbursement by the Commission on State Mandates. Sufficient
progress shall be determined on the basis of either of the
following:
   (1) The results of the assessments administered pursuant to
Article 4 (commencing with Section 60640) of Chapter 5 and the
minimum levels of proficiency recommended by the state board pursuant
to Section 60648.
   (2) The grades of the pupil and other indicators of academic
achievement designated by the school district.
  SEC. 63.  Section 9.5 of this bill incorporates amendments to
Section 17199.4 of the Education Code proposed by both this bill and
Assembly Bill 1979. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2015, (2)
each bill amends Section 17199.4 of the Education Code, and (3) this
bill is enacted after Assembly Bill 1979, in which case Section 9 of
this bill shall not become operative.
              
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