BILL NUMBER: AB 1463	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 12, 2014

INTRODUCED BY   Committee on Budget (Skinner (Chair), Bloom, Campos,
Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin,
Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

                        JANUARY 9, 2014

    An act relating to the Budget Act of 2014.  
An act to amend Sections 8206.1, 8236, 8239, 8261, 8263.1, 8265,
8273.1, 8278.3, 8447, 8450, 8499.5, 14041.5, 14041.6, 17080, 24214,
41203.1, 41207.3, 42127, 44374.5, 47644, 48000, 49430.5, 51745.6,
51747, 51747.5, 52055.770, 56836.06, 56836.07, 56836.08, 56836.095,
56836.11, 56836.15, and 60640 of, to amend the heading of Article 4
(commencing with Section 60640) of Chapter 5 of Part 33 of Division 4
of Title 2 of, to amend, repeal, and add Section 47612.1 of, to add
Sections 8203.1, 44235.2, 51749.5, and 57149.6 to, to add Chapter 16
(commencing with Section 53010) to Part 28 of Division 4 of Title 2
of, to add and repeal Sections 8363.1, 42127.01, and 41841.9 of, to
repeal Sections 14035 and 60640.2 of, and   to repeal and
add Section 8273.2 of, the Education Code, to amend Section 17581.6
of, and to add Section 17581.8 to, the Government Code, and to amend
Item 6110-106-0001 of Section 2.00 of the Budget Act of 2013,
relating to education finance, and making an appropriation therefor,
to take effect immediately, bill related to the budget. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1463, as amended, Committee on Budget.  Budget Act of
2014.   Education finance: education omnibus trailer
bill.  
   (1) Existing law, the Child Care and Development Services Act,
requires the State Department of Education to develop an expenditure
plan, known as the Child Care and Development Fund (CCDF) Plan, that
sets forth the final priorities for child care, as required by
federal law. The act requires the department, before the May budget
revision, to provide the revised CCDF Plan to the chairs of the
committees of each house of the Legislature that consider
appropriations, and to provide a report on the plan to the committees
in each house of the Legislature that consider the annual Budget Act
appropriation.  
   The bill would instead require, by April 1 of the year that the
CCDF Plan is due, the department to provide the revised plan and a
description of any changes to the earlier draft to the Director of
Finance and the chairs of the fiscal committees of the Legislature.
The bill would require the department, after the CCDF Plan is
federally approved, to provide a copy of the final plan to the
Department of Finance and the fiscal committees of the Legislature
and a description of any changes made since submission for review.
The bill would also require the department, if the annual Budget Act
requires changes to the approved CCDF Plan, to submit an amended plan
to the United States Department of Education.  
   (2) The Child Care and Development Services Act requires the
Superintendent of Public Instruction to develop standards for the
implementation of quality programs and requires indicators of quality
to include, among other things, a physical environment that is safe
and appropriate to the ages of the children and that meets applicable
licensing standards.  
   This bill would require the Superintendent to administer an early
learning quality rating and improvement system (QRIS) block grant
that would be allocated to local consortia, as defined, for support
of local early learning quality rating and improvement systems that
increase the number of low-income children in high-quality preschool
programs that prepare those children for success in school and life.
The bill would require the QRIS block grant to build on preexisting
local consortia and other QRIS work. The bill would require local
consortia to take certain actions in order to be eligible for a QRIS
block grant, and would require the Superintendent, in consultation
with the executive director of the State Board of Education, to
allocate to local consortia who satisfy these eligibility
requirements QRIS block grant funds based on the number of California
state preschool program slots within the county or region. The bill
would require local consortia receiving QRIS block grant funds to
allocate those funds to contracting agencies of the California state
preschool program, including certain family child care home education
networks, as specified.  
   (3) Existing law, in the award of new funding for the expansion of
the California state preschool program that is appropriated for that
purpose in any fiscal year, requires an application for those
expansion funds to include an estimate of the number of 4-year-old
and 3-year-old children that the applicant plans to serve in the
following fiscal year with those expansion funds. Existing law
requires the Superintendent of Public Instruction, in awarding the
contracts for expansion, to take into account certain criteria and to
give priority to applicant agencies that, in expending the expansion
funds, will be serving the highest percentage of 4-year-old
children.  
   This bill, commencing June 15, 2015, would require the
Superintendent to consider different criteria and data in awarding
expansion funds and would require the Superintendent to give priority
to applicant agencies that would provide the greatest progress
toward achieving access to full-day, full-year services for all
income eligible four-year-olds. The bill would specify that a family
child care home education network is eligible to apply for expansion
funding.  
   (4) Existing law requires the Superintendent of Public Instruction
to adopt rules and regulations pursuant to the Child Care and
Development Services Act that include provisions that, among other
things, set forth standards for State Department of Education site
visits to contracting agencies, as specified.  
   This bill would require the Superintendent to adopt rules and
regulations that authorize the department to develop a process that
requires every contracting agency to recompete for continued funding
no less frequently than every 5 years.  
   (5) 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 2013-14
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 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.  
   (6) Existing law requires the Superintendent of Public Instruction
to implement a plan that establishes reasonable standards and
assigned reimbursement rates, and requires the standard reimbursement
rate to be $3,523 per unit of average daily enrollment for a 250-day
year, increased by the cost-of-living adjustment granted by the
Legislature beginning July 1, 1980. Existing law requires the
Department of Finance and the Department of General Services to
approve or disapprove annual state subsidized child care and
development program contract funding terms and conditions, including
both family fee schedules and regional market rate schedules that are
required to be adhered to by contract. Existing law requires the
State Department of Education to implement the regional market rate
schedules based upon the county aggregates, as determined by the
Regional Market survey conducted in 2005.  
   This bill would require the standard reimbursement rate to be
$9,024.75 per unit of average daily enrollment for a 250-day year,
and, commencing with the 2015-16 fiscal year, would require that rate
to be increased by the cost-of-living adjustment granted by the
Legislature annually. The bill, commencing January 1, 2015, would
require the State Department of Education to implement the regional
market rate schedule based upon the county aggregates, as determined
by the Regional Market survey conducted in 2009 and would require the
regional market rate schedule to be reduced by 13%, except as
specified.  
   (7) Existing law requires the Superintendent of Public Instruction
to establish a fee schedule for families using preschool and child
care and development services, requires family fees to be assessed at
initial enrollment and reassessed at update of certification or
recertification, and authorizes certain families to be exempt from
the family fees. Existing law requires the family fee schedule that
was in effect in the 2012-13 fiscal year to remain in effect for the
2013-14 fiscal year until the first day of a month that is at least
60 days after the new family fee schedule has been approved by the
Department of Finance and adopted.  
   This bill would prohibit fees from being assessed on
income-eligible families for their children to attend a part-day
California state preschool program. The bill, commencing with the
2014-15 fiscal year, would require the adopted family fee schedule
that was in effect on July 1, 2014, to remain in effect.  
   (8) Existing law establishes the Child Care Facilities Revolving
Fund to provide funding for the renovation, repair, or improvement of
an existing building to make the building suitable for licensure for
child care and development services, and for the purchase of new
relocatable child care facilities for lease to school districts and
contracting agencies that provide child care and development
services, pursuant to the Child Care and Development Services Act.
 
   This bill would make funding from the Child Care Facilities
Revolving Fund available to local educational agencies and
contracting agencies that provide child care and development
services, pursuant to the Child Care and Development Services Act.
The bill would require any augmentations to the Child Care Facilities
Revolving Fund made by the Budget Act of 2014 to be used for
renovation or repair of existing local educational agency facilities
or new relocatable child care facilities for lease to local
educational agencies that provide California state preschool program
services, as specified.  
   (9) Existing law requires the Commission on Teacher Credentialing
to establish the requirements for the issuance and renewal of permits
authorizing (A) service in the care, development, and instruction of
children in child care and development programs, and (B) supervision
of a child care and development program.  
   This bill, on or before July 1, 2016, would require the Commission
on Teacher Credentialing to review, and update if appropriate, the
conditions for issuance or renewal of the permits described above.
 
   (10) Existing law authorizes a child development contractor to
retain a reserve fund balance equal to 5% of the sum of the maximum
reimbursable amount of all contracts to which the contractor is a
party, or $2,000, whichever is greater.  
   This bill would authorize a California state preschool program
contracting agency to retain in the reserve fund an additional 10% of
the sum of the maximum reimbursable amount of all preschool
contracts to which the contracting agency is a party for purposes of
professional development for California state preschool program
staff.  
   (11) Existing law establishes the county school service fund
contingency account in the General Fund, which is credited with
$100,000 each fiscal year to reimburse county superintendents of
schools for certain expenses, as specified.  
   This bill would repeal that provision.  
   (12) Existing law establishes the public elementary and secondary
schools and the system of public community colleges in this state,
and provides for a system for their funding. Provisions of the
California Constitution require that a minimum amount of aggregate
funding, calculated as specified, be allocated to school districts
and community college districts unless this requirement is suspended,
as provided. Pursuant to existing statutes, school districts,
community college districts, and other local educational agencies
receive a portion of their funding through apportionments of state
funds made in accordance with payment schedules. Existing law
requires the Controller to draw warrants on the State Treasury in
each month of each year in specified amounts for purposes of funding
school districts, county superintendents of schools, and community
college districts. Existing law defers the drawing of those warrants,
as specified.  
   This bill would delete authorizations for deferrals for school
districts and county offices of education beyond the 2014-15 fiscal
year, and would, for purposes of calculations required by the
California Constitution, provide that specified amounts of warrants
drawn in July 2014 shall be included in the total allocations to
school districts and community college districts for the 2012-13 and
2013-14 fiscal years, as specified. For the 2014-15 fiscal year, the
bill would provide that warrants for the principal apportionments for
the month of June in the amount $897,184,000 instead shall be drawn
in July of the same calendar, but would authorize those deferrals, as
well as specified deferrals for apportionments to the California
Community Colleges, to not be made if the Director of Finance, on or
before May 14, 2015, determines that the total allocations required
by the California Constitution for the 2013-14 and 2014-15 fiscal
years, as estimated by the Director of Finance on May 13, 2015,
exceed the estimate of the required allocations as determined at the
time of, and as set forth in, the 2014 Budget Act.  
   (13) Existing law requires, whenever moneys transferred to the
General Fund each year from moneys deposited into the Public School
Building Loan Fund and the State School Building Aid Fund exceed the
amounts required to reimburse the General Fund on account of
principal and interest due and payable for that fiscal year on all
school building aid bonds outstanding against the state, an amount
equal to such excess to be appropriated from the General Fund for
purposes of the Leroy F. Greene State School Building Lease-Purchase
Law of 1976. Existing law establishes the State School Deferred
Maintenance Fund which is continuously appropriated for the purposes
for which it is established.  
   This bill would instead require the excess amount to be
appropriated from the General Fund for purposes of the School
Facilities Emergency Repair Account. The bill would also eliminate
the State School Deferred Maintenance Fund.  
   (14) Existing law, the Teachers' Retirement Law, establishes the
Defined Benefit Program of the State Teachers' Retirement Plan, which
provides a defined benefit to members of the program. Existing law
limits the amount of postretirement compensation that may be earned
in specific types of employment by a retired member of the Defined
Benefit Program in any one school year without a reduction in
retirement allowance. Existing law exempts from the limit
compensation paid to a retired member who has returned to work after
the date of retirement as an appointed trustee, fiscal advisor,
fiscal expert, receiver, or special trustee, as specified. Existing
law, as of July 1, 2014, revises these provisions by, among other
things, deleting the exemption.  
   This bill would delay the revisions until July 1, 2017.  

   (15) 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 2013-14 fiscal years, inclusive.  
   This bill would also make that provision inapplicable to the
2014-15 fiscal year.  
   (16) Existing law declares that the minimum state educational
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 2014-15 fiscal year, requires the Legislature to appropriate the
outstanding balance, as specified.  
   This bill would delay that requirement until the 2015-16 fiscal
year.  
   (17) Existing law authorizes a school district or county
superintendent of schools to claim average daily attendance for
purposes of apportionments from the adult education fund for schools
or classes maintained for adults in correctional facilities if those
classes meet specified requirements.  
   This bill would, for the 2014-15 fiscal year only, apply these
provisions to a charter school whose charter was granted by its
chartering authority after July 1, 2014.  
   (18) Existing law authorizes a school district or charter school
to maintain a transitional kindergarten program and defines
transitional kindergarten as the first year of a 2-year kindergarten
program that uses a modified kindergarten curriculum that is age and
developmentally appropriate.  
   This bill would state the intent of the Legislature that the
transitional kindergarten curriculum be aligned to the California
Preschool Learning Foundations developed by the State Department of
Education. The bill, as a condition of receipt of apportionment for
pupils in a transitional kindergarten program, would require a school
district or charter school to ensure that teachers assigned to a
transitional kindergarten class after July 1, 2015, be credentialed
and, by August 1, 2020, have a minimum number of units in early
childhood education or childhood development, comparable experience
in a preschool setting, or a child development permit issued by the
Commission on Teacher Credentialing.  
   (19) Existing law requires the Superintendent of Public
Instruction, the Controller, and the Director of Finance to develop
standards and criteria, including, among others, methods of
projection of reserves and fund balance, to be reviewed and adopted
by the State Board of Education, and to be used by local educational
agencies in the development of annual budgets and the management of
subsequent expenditures from that budget. Existing law, on or before
July 1 of each year, requires the governing board of each school
district to hold a public hearing on, and adopt, a budget for the
subsequent fiscal year, and to file the adopted budget with the
county superintendent of schools, as specified. Existing law requires
the county superintendent of schools to examine the adopted budget,
as specified, to make certain determinations related to the adopted
budget, and to approve, conditionally approve, or disapprove the
adopted budget for each school district. Existing law, on or before
September 8, and after a public hearing regarding the proposed
revisions to the budget, as specified, requires the governing board
of the school district to revise the adopted budget to reflect
certain fiscal changes, as provided, and to file the revised budget
with the county superintendent of schools.  
   This bill would, commencing with budgets adopted by a school
district for the 2015-16 fiscal year, require a school district that
proposes to adopt or revise a budget that includes a combined
assigned or unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties, as
established by the state board, to provide at a public hearing, among
other things, a statement of reasons that substantiates the need for
the balance, and would require the county superintendent of schools,
when making the required determinations, to also determine whether a
school district's adopted or revised budget includes a such a
balance. By imposing additional duties on local educational agencies,
the bill would impose a state-mandated local program.  
   This bill would, in a fiscal year immediately after which a
transfer is made into the Public School System Stabilization Account,
which would be created by an Assembly Constitutional Amendment,
prohibit a school district's adopted or revised budget from
containing a combined assigned or unassigned ending fund balance that
is in excess of either two or three times the minimum recommended
reserve for economic uncertainties, as established by the state
board, depending on units of average daily attendance for the school
district. The bill would authorize the county superintendent of
schools to waive the prohibition, pursuant to specified conditions,
for up to two consecutive fiscal years within a three-year period if
the school district provides documentation indicating that
extraordinary fiscal circumstances substantiates the need for the
balance. The bill would make these provisions operative contingent on
the voter approval of a specified Assembly Constitutional Amendment
at the November 4, 2014, statewide general election.  
   (20) Existing law establishes the Teacher Credentials Fund,
requires all fees levied and collected by the Commission on Teacher
Credentialing to be deposited in the fund, and prohibits them from
being transferred to any other fund. Existing law also establishes
the Test Development and Administration Account in the Teacher
Credentials Fund, and requires all fees collected by the commission
for tests, examinations, or assessments to be deposited in the
account.  
   This bill would, if, in any month there are insufficient moneys in
the Teacher Credentials Fund to satisfy monthly payroll obligations
and scheduled claims and there are moneys in the Test Development and
Administration Account not required to meet a demand that has
accrued or may accrue against it, require the Controller to transfer
moneys from the account to the fund to the extent necessary to meet
the immediate obligations of the fund. The bill would provide for the
repayment of the transfer, as specified.  
   (21) Existing law establishes the Commission on Teacher
Credentialing for, among other purposes, the establishment of
professional standards, assessments, and examinations for entry and
advancement in the teaching profession. Existing law authorizes the
commission to charge a fee to applicable local educational agencies
and institutions of higher education to recover the standard costs of
reviewing new educator preparation programs and specified
accreditation activities, as provided.  
   This bill would instead authorize the commission to charge fees to
sponsors of educator preparation programs to cover the cost of
reviewing new and existing educator preparation programs and
specified accreditation activities, as provided.  
   (22) The Charter Schools Act of 1992 requires that a pupil over 19
years of age be continuously enrolled in public school and make
satisfactory progress towards award of a high school diploma in order
to remain eligible for generating charter school apportionments. The
act exempts charter school programs that provide instruction
exclusively in partnership with any of several specified career
preparation programs from those requirements.  
   This bill would, for the 2014-15 fiscal year, make that exemption
applicable to a charter school whose charter was granted by its
chartering authority before July 1, 2014, and that provides
instruction exclusively in partnership with any of the specified
career preparation programs.  
   (23) 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 $0.2229 per meal, and, for meals served in
child care centers and homes, at $0.1660 per meal.  
   This bill would set the reimbursement amount for schools at
$0.2248 per meal, and, for meals served in child care centers and
homes, at $0.1674 per meal.  
   (24) Existing law authorizes the governing board of a school
district or a county office of education to offer independent study
to meet the educational needs of pupils in accordance with prescribed
criteria. Existing law requires a written agreement for each
independent study pupil, not to exceed one semester or 1/2 year for a
school on a year-round calendar, to be signed by prescribed
individuals, to be maintained on file.  
   This bill would instead require that the signed written agreement
not exceed one school year, and would allow the signed written
agreement to be maintained on file
                         electronically. The bill would,
notwithstanding any other law, and commencing with the 2015-16 school
year, authorize a school district, county office of education, or
charter school to offer independent study courses to pupils enrolled
in kindergarten and grades 1 to 12, inclusive, in accordance with
prescribed conditions, including, among others, that the courses be
taught under the general supervision of certificated employees who
hold the appropriate subject matter credential, that courses are
annually certified, by school district, charter school, or county
office of education governing board or body resolution, to be of the
same rigor and educational quality as equivalent classroom-based
courses, and that certificated employees and each pupil shall
communicate in-person, by telephone, or by any other live visual or
audio connection no less than twice per calendar month to assess
whether each pupil is making satisfactory educational progress. The
bill would also require that a signed learning agreement, as
specified, be completed and on file. The bill would prohibit pupils
from being required to enroll in the independent study courses. 

   (25) 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
to not exceed a specified ratio. Existing law authorizes school
districts and county offices of education to claim apportionment
credit for independent study only to the extent of the time value of
pupil work product, as personally judged in each instance by a
certificated teacher.  
   This bill would specify the computation of average daily
attendance for the independent study courses described above. The
bill would prohibit school districts, charter schools, and county
offices of education from having to sign and date pupil work products
when assessing their time value of pupil work products for
apportionment purposes. The bill would also revise the
pupil-to-teacher ratios by grade span, as specified.  
   (26) Existing law, the Quality Education Investment Act of 2006,
among other things, effectuates the intent of the Legislature to
implement the terms of the proposed settlement agreement of a
specified legal action. The act appropriates specified funds for
these purposes.  
   This bill would specify previously undetermined appropriations
made pursuant to these provisions.  
   (27) Existing law provides for the allocation of funds
appropriated by the Budget Act of 2013 for the establishment of the
California Career Pathways Trust, and requires these funds to be
apportioned to school districts, county superintendents of schools,
charter schools, and community colleges for career pathways programs
that accomplish specified objectives.  
   This bill would establish the California Career Pathways Trust,
and would require the State Department of Education, contingent upon
appropriation in the annual Budget Act, to administer the California
Career Pathways Trust as a competitive grant program for kindergarten
to grade 14, inclusive. The bill would require grant recipients to
fulfill specified requirements and conditions, and would impose
restrictions on the use of funds, including prohibiting the use of
funds to supplant other funds from state, federal, or other sources,
as specified. The bill would require the Superintendent of Public
Instruction to consider specified priorities when approving an
application for funds.  
   (28) Existing law establishes the Measurement of Academic
Performance and Progress (MAPP), commencing with the 2013-14 school
year, for the assessment of certain elementary and secondary pupils,
as provided. As part of MAPP, existing law requires the State
Department of Education to make available to local educational
agencies a primary language assessment aligned to the English
language arts standards adopted by the State Board of Education for
assessing pupils who are enrolled in a dual language immersion
program and who are either nonlimited English proficient or
redesignated English proficient, as provided. Existing law also
authorizes the governing board of a school district to administer a
primary language assessment aligned to the English language arts
standards adopted by the state board for assessing pupils identified
as limited English proficient who are enrolled in any of grades 2 to
11, inclusive, and who either receives instruction in his or her
primary language or has been enrolled in a school in the United
States for 12 months, as provided. Existing law allocates the costs
associated with administration of the assessments, as specified.
 
   This bill would change the name of the MAPP to the California
Assessment of Student Performance and Progress (CAASPP). The bill
would instead authorize a local educational agency to administer, as
part of CAASPP, the primary language assessment to pupils identified
as limited English proficient and who are enrolled in any of grades 2
to 11, inclusive, until a subsequent primary language assessment
aligned to the common core standards in English language arts adopted
by the state board is developed, as provided. The bill would,
subject to the approval of the state board, authorize the department
to make available to local educational agencies a primary language
assessment that is aligned to the English language arts standards
adopted by the state board for assessing pupils who are enrolled in a
dual language immersion program and who are either nonlimited
English proficient or redesignated English proficient until as
provided. The bill would revise the allocation of costs associated
with the administration of the assessments, as specified.  
   (29) Under the California Constitution, whenever the Legislature
or a state agency mandates a new program or higher level of service
on any local government, including a school district, the state is
required to provide a subvention of funds to reimburse the local
government, with specified exceptions. Existing law requires certain
funds appropriated in the annual Budget Act for reimbursement of 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 of intent 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 for 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.
 
   (30) This bill 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 would appropriate $49,500,000 from the General Fund to the
Chancellor of the California Community Colleges for allocation to
community college districts. The bill would require any allocations
made to first satisfy any outstanding claims for reimbursement of
state-mandated local program costs, and would authorize the
Controller to audit any claims and reduce any amounts owed, as
provided. The bill would authorize any funds received to be expended
for any one-time purpose, but would state Legislature's intent that
school districts, county offices of education, and charter schools
use the 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.  
   (31) This bill would require that the funds appropriated pursuant
to a designated item of the Budget Act of 2013 to the State
Department of Education for support of the California Local Control
Accountability Support Network be available for encumbrance until
June 30, 2015.  
   (32) A certain item of the Budget Act of 2013 appropriated
$381,000,000 to the State Department of Education for allocation by
the Superintendent of Public Instruction to school districts, county
offices of education, state special schools, and charter schools for
specified purposes.  
   This bill would reappropriate the balance of those appropriations
to the department, for the same purposes, and would provide that
those funds would be available for encumbrance until June 30, 2018.
 
   (33) This bill would provide that, of the amount allocated in a
specified schedule of the Budget Acts of 2012 and 2013 for special
education instruction, $32,806,000 and $46,943,000, respectively,
would be provided to fund the 2010-11 fiscal year maintenance of
effort in the special education program.  
   (34) This bill would require an amount to be determined by the
Director of Finance to be appropriated, on or before June 30, 2015,
from the General Fund to the Superintendent of Public Instruction in
the event that specified revenues distributed to local educational
agencies for special education programs are less than the estimated
amount reflected in the Budget Act of 2014.  
   (35) This bill would make conforming changes, delete obsolete
provisions, correct cross-references, and make other nonsubstantive
changes.  
   (36) 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.  
   (37) 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.  
   (38) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   SECTION 1.    (a) The Legislature finds and declares
that quality early learning and care for children from infancy to
five years of age is a sound and strategic investment to narrow
achievement gaps that are present well before children enter
kindergarten.  
   (b) It is the intent of the state to ensure a fair start to all
low-income children by providing quality preschool opportunities for
all low-income children whose families wish to enroll their children.
It is further the intent of the state to provide all low-income
four-year-old children from working families with full-day, full-year
early education and care. 
   SEC. 2.    Section 8203.1 is added to the  
Education Code  , to read:  
   8203.1.  (a) The Superintendent shall administer a QRIS block
grant, pursuant to an appropriation made for that purpose in the
annual Budget Act, to be allocated to local consortia for support of
local early learning quality rating and improvement systems that
increase the number of low-income children in high-quality preschool
programs that prepare those children for success in school and life.
   (b) (1) For purposes of this section, "early learning quality
rating and improvement system" or "QRIS" is defined as a locally
determined system for continuous quality improvement based on a
tiered rating structure with progressively higher quality standards
for each tier that provides supports and incentives for programs,
teachers, and administrators to reach higher levels of quality,
monitors and evaluates the impacts on child outcomes, and
disseminates information to parents and the public about program
quality.
   (2) For purposes of this section, "local consortium" is defined as
a local or regional entity, administered by a lead agency, that
convenes a planning body that designs and implements a QRIS. A local
consortium shall include representatives from organizations
including, but not limited to, all of the following:
   (A) Local educational agencies.
   (B) First 5 county commissions.
   (C) Local postsecondary educational institutions.
   (D) Local child care planning councils.
   (E) Local resource and referral agencies.
   (F) Other local agencies, including nonprofit organizations, that
provide services to children from birth to five years of age,
inclusive.
   (3) For purposes of this section, "quality continuum framework"
means the tiered rating matrix created and adopted by a local
consortium for purposes of implementing a QRIS. The tiered rating
matrix shall include three common tiers shared by all participating
local consortia. Changes to the common tiers shall be approved and
adopted by all participating local consortia.
   (c) The QRIS block grant shall build on local consortia and other
local QRIS work in existence on or before the operative date of this
section.
   (d) For the 2014-15 fiscal year, if a county or region has an
established local consortium that has adopted a quality continuum
framework, the local consortium's lead administering agency shall be
provided the first opportunity to apply for a QRIS block grant.
   (e) Local consortia shall do all of the following to be eligible
for a QRIS block grant:
   (1) Implement a QRIS that incorporates evidence-based elements and
tools in the quality continuum framework that are tailored to the
local conditions and enhanced with local resources.
   (2) Set ambitious yet achievable targets for California state
preschool program contracting agencies' participation in the QRIS
with the goal of achieving the highest common tier, as the tier
existed on June 1, 2014, or a higher level of quality.
   (3) Develop an action plan that includes a continuous quality
improvement process that is tied to improving child outcomes.
   (4) Describe how QRIS block grant funds will be used to increase
the number of sites achieving the highest common local tier and to
directly support classrooms that have achieved the highest common
tier, as that tier existed on June 1, 2014, or a higher level of
quality.
   (f) The Superintendent, in consultation with the executive
director of the state board, shall allocate QRIS block grant funds to
local consortia that satisfy the requirements of subdivision (e)
based on the number of California state preschool program slots
within the county or region.
   (g) (1) Local consortia receiving QRIS block grant funds shall
allocate those funds to contracting agencies of the California state
preschool program, as established by Article 7 (commencing with
Section 8235), or local educational agencies, for activities that
support and improve quality, and assess quality and access. In
allocating the QRIS block grant funds, priority shall be given to
directly supporting the classrooms of the California state preschool
program sites that have achieved the highest common local tier of
quality.
   (2) No more than 20 percent of a local consortium's QRIS block
grant funds may be used for assessment and access projects.
   (h) A family child care home education network established
pursuant to Section 8245 that provides California state preschool
program services shall be eligible for an allocation from a local
consortium of QRIS block grant funds for activities that support,
improve, and assess quality. 
   SEC. 3.    Section 8206.1 of the   Education
Code   is amended to read: 
   8206.1.  (a) The Superintendent shall collaborate with the
Secretary of Health and Human Services, with the advice and
assistance of the Child Development Programs Advisory Committee, in
the development of the state plan required pursuant to the federal
Child Care and Development Fund, before submitting or reporting on
that plan to the federal Secretary of Health and Human Services.
   (b) (1) For purposes of this section, "Child Care and Development
Fund" has the same meaning as in Section 98.2 of Title 45 of the Code
of Federal Regulations.
   (2) For  the  purposes of this section,
"collaborate" means to cooperate with and to consult with.
   (c)  (1)    As required by federal law, the
department shall develop an expenditure plan that sets forth the
final priorities for child care. The department shall coordinate with
the State Department of Social Services, the California Children and
Families Commission, and other stakeholders, including the
Department of Finance, to develop the Child Care and Development Fund
(CCDF) Plan. On or before February 1 of the year that the CCDF Plan
is due to the federal government, the department shall release a
draft of the plan. The department shall then commence a 30-day
comment period that shall include at least one hearing and the
opportunity for written comments.  Before the May budget
revision,   By April 1 of the year that the CCDF Plan is
due,  the department shall provide the revised  CCDF
Plan   plan and a description of any changes to 
 the earlier draft  to the  Director of Finance and the
 chairs of the  fiscal  committees of  each
house of the  Legislature that consider
appropriations, and shall provide a report on the plan to the
committees in each house of the Legislature that consider the annual
Budget Act appropriation.   Legislature.  
   (2) After the CCDF Plan is approved by the United States
Department of Education, the department shall provide to the
Department of Finance and the fiscal committees of the Legislature a
copy of the final plan and a description of any changes made since
submitting the draft plan for review.  
   (3) If the annual Budget Act requires changes to the approved CCDF
Plan, the department shall submit an amended plan to the United
States Department of Education. 
   SEC. 4.    Section 8236 of the   Education
Code   is amended to read: 
   8236.  (a) (1) Each applicant or contracting agency funded
pursuant to Section 8235 shall give first priority to three- or
four-year-old neglected or abused children who are recipients of
child protective services, or who are at risk of being neglected,
abused, or exploited upon written referral from a legal, medical, or
social service agency. If an agency is unable to enroll a child in
this first priority category, the agency shall refer the child's
parent or guardian to local  resource  
resources  and referral services so that services for the child
can be located.
   (2) Notwithstanding Section 8263, after children in the first
priority category set forth in paragraph (1) are enrolled, each
agency funded pursuant to Section 8235 shall give priority to
eligible four-year-old children  who are not enrolled in a
state-funded transitional kindergarten program  before enrolling
eligible three-year-old children. Each agency shall certify to the
Superintendent that enrollment priority is being given to eligible
four-year-old children.
   (b) For California state preschool programs operating with funding
that was initially allocated in a prior fiscal year, at least
one-half of the children enrolled at a preschool site shall be
four-year-old children. Any exception to this requirement shall be
approved by the Superintendent. The Superintendent shall inform the
Department of Finance of any exceptions that have been granted and
the reasons for granting the exceptions. 
   (c) The following provisions apply to the award of new funding for
the expansion of the California state preschool program that is
appropriated by the Legislature for that purpose in any fiscal year:
 
   (1) In an application for those expansion funds,an agency shall
furnish the Superintendent with an estimate of the number of
four-year-old and three-year-old children that it plans to serve in
the following fiscal year with those expansion funds. The agency also
shall furnish documentation that indicates the basis of those
estimates.  
   (2) In awarding contracts for expansion pursuant to this
subdivision, the Superintendent, after taking into account the
geographic criteria established pursuant to Section 8279.3, and the
headquarters preferences and eligibility criteria relating to fiscal
or programmatic noncompliance established pursuant to Section 8261,
shall give priority to applicant agencies that, in expending the
expansion funds, will be serving the highest percentage of
four-year-old children.  
   (c) (1) (A) Commencing June 15, 2015, and notwithstanding any
other law, in awarding new funding for the expansion of a California
state preschool program that is appropriated by the Legislature for
that purpose in any fiscal year, the Superintendent, after taking
into account the geographic criteria established pursuant to Section
8279.3 and the data described in subparagraph (B), shall give
priority to applicant agencies that, in expending the expansion
funds, will provide the greatest progress toward achieving access to
full-day, full-year services for all income-eligible four year old
children.  
   (B) In awarding funding pursuant to subparagraph (A) and in order
to promote access for all income-eligible four-year-old children to
at least a part-day California state preschool program, the
department shall take into account the needs assessments submitted to
the department pursuant to Section 8499.5 and any other high-quality
data resources available to the department.  
   (2) Expansion funding awarded pursuant to paragraph (1) shall be
apportioned at the rate described in Section 8265 and as determined
in the annual Budget Act.  
   (3) A family child care home education network shall be eligible
to apply for expansion funding awarded pursuant to paragraph (1).

   (d) This section does not preclude a local educational agency from
subcontracting with an appropriate public or private agency to
operate a California state preschool program and to apply for funds
made available for  the  purposes of this section.
If a school district chooses not to operate or subcontract for a
California state preschool program, the Superintendent shall work
with the county office of education and other eligible agencies to
explore possible opportunities in contracting or alternative
subcontracting to provide a California state preschool program.
   (e)  This section does not prevent eligible children who are
 currently  receiving services from continuing to
receive those services in future years pursuant to this chapter.
   SEC. 5.    Section 8239 of the   Education
Code   is amended to read: 
   8239.  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:
   (a) Part-day preschool programs provided pursuant to this section
shall operate between 175 and 180 days.
   (b) 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.
   (c) Part-day preschool services combined with wraparound child
care services shall be reimbursed at no more than the full-day
standard reimbursement rate for general child care programs with
adjustment factors, pursuant to Section 8265 and as determined in the
annual Budget Act.
   (d) 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. 
   (e) Fees shall be assessed and collected for families with
children in part-day preschool programs, or families receiving
wraparound child care services, or both, pursuant to Article 11.5
(commencing with Section 8273).  
   (f) The Superintendent shall annually report to the Department of
Finance, on or before October 1 of each year, the fees collected from
families who have children enrolled in the California state
preschool program. The report shall distinguish between family fees
collected for part-day preschool programs and fees collected for
wraparound child care services.  
   (g) 
    (e)  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. 6.    Section 8261 of the   Education
Code   is amended to read: 
   8261.  (a) The Superintendent  of Public Instruction
 shall adopt rules and regulations pursuant to this chapter.
The rules and regulations shall include, but not be limited to,
provisions which do all of the following:
   (1) Provide clear guidelines for the selection of agencies when
child development contracts are let, including, but not limited to,
specification that any agency headquartered in the proposed service
area on January 1, 1985, will be given priority for a new contract in
that area, unless the  State Department of Education
  department  makes a written determination that
(A) the agency is not able to deliver the level of services specified
in the request for proposal, or (B) the department has notified the
agency that it is not in compliance with the terms of its contract.
   (2) Provide for a contract monitoring system to ensure that
agencies expend funds received pursuant to this chapter in accordance
with the provisions of their contracts.
   (3) Specify adequate standards of agency performance.
   (4) Establish reporting requirements for service reports,
including provisions for varying the frequency with which these
reports are to be submitted on the basis of agency performance.
   (5) Specify standards for withholding payments to agencies that
fail to submit required fiscal reports.
   (6) Set forth standards for department site visits to contracting
agencies, including, but not limited to, specification as to the
purpose of the visits, the personnel that will perform these visits,
and the frequency of these visits which shall be as frequently as
staff and budget resources permit. By September 1 of each year, the
department shall report to the Senate Education, Senate Health and
Human Services, Assembly Education, and Assembly Human Services
Committees on the number of visits conducted during the previous
fiscal year pursuant to this paragraph. 
   (7) Authorize the department to develop a process that requires
every contracting agency to recompete for continued funding no less
frequently than every five years. 
   (b) The  superintendent   Superintendent
 shall consult with the State Department of Social Services with
respect to rules and regulations adopted relative to the disbursal
of federal funds under Title XX of the federal Social Security Act.
   (c) For purposes of expediting the implementation of state or
federal legislation to expand child care services, the 
superintendent   Superintendent  may waive (1) the
regulations regarding the point qualifications for, and the process
and scoring of, interviews of contract applicants pursuant to Section
18002 of Title 5 of the California Code of Regulations, or (2) the
time limitations for scheduling and notification of appeal hearings
and their results pursuant to Section 18003 of Title 5 of the
California Code of Regulations. The  superintendent 
 Superintendent  shall ensure that the appeal hearings
provided for in Section 18003 of Title 5 of the California Code of
Regulations are conducted in a timely manner.
   (d) (1) Child care and development programs operated under
contract from funds made available pursuant to the federal Child Care
and Development Fund, shall be administered according to Division 19
(commencing with Section 17906) of Chapter 1 of Title 5 of the
California Code of Regulations, unless provisions of these
regulations conflict with federal regulations. If state and federal
regulations conflict, the federal regulations shall apply unless a
waiver of federal regulations is authorized.
   (2) For purposes of this section, "Child Care and Development Fund"
has the same meaning as in Section 98.2 of Title 45 of the Code of
Federal Regulations.
   SEC. 7.    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 fiscal year,
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) Notwithstanding any other law, for the 2013-14 fiscal year,
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. 
   (e) Notwithstanding any other law, for the 2014-15 fiscal year,
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.  
   (e) 
    (f)  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. 8.    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  three
thousand five hundred twenty-three dollars ($3,523)  
nine thousand twenty-four dollars and seventy-five cents ($9,024.75)
 per unit of average daily enrollment for a 250-day year, 
and commencing with the 2015-16 fiscal year, shall be  increased
by the cost-of-living adjustment granted by the Legislature 
beginning July 1, 1980.  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) 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:
   (1) Loss of program resources from other sources.
   (2) Need of an agency to pay the same child care rates as those
prevailing in the local community.
   (3) Increased costs directly attributable to new or different
regulations.
   (4) Documented increased costs necessary to maintain the prior
year's level of service and ensure the continuation of threatened
programs.
   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. 9.    Section 8273.1 of the   Education
Code   is amended to read: 
   8273.1.  (a) Families receiving services pursuant to subparagraph
(B) of paragraph (1) of subdivision (b) of Section 8263 may be exempt
from family fees for up to three months.
   (b) Families receiving services pursuant to subparagraph (C) of
paragraph (1) of subdivision (b) of Section 8263 may be exempt from
family fees for up to 12 months.
   (c) The cumulative period time of exemption from family fees for
families receiving services pursuant to paragraph (1) of subdivision
(b) of Section 8263 shall not exceed 12 months.
   (d) Notwithstanding any other law, a family receiving CalWORKs
cash aid shall not be charged a family fee. 
   (e) Notwithstanding any other law, commencing with the 2014-15
fiscal year, family fees shall not be assessed for the part-day
California preschool program to income eligible families whose
children are enrolled in that program pursuant to Article 7
(commencing with Section 8235). 
   SEC. 10.    Section 8273.2 of the  
Education Code   is repealed.  
   8273.2.  (a) Notwithstanding paragraph (1) of subdivision (b) of
Section 8447, for the 2006-07 fiscal year, the department shall
update the family fee schedules by family size, based on the 2005
state median income survey data for a family of four. The family fee
schedule used during the 2005-06 fiscal year shall remain in effect.
However, the department shall adjust the family fee schedule for
families that are newly eligible to receive or will continue to
receive services under the new income eligibility limits. The family
fees shall not exceed 10 percent of the family's monthly income.
   (b) Notwithstanding any other law, the family fee schedule that
was in effect for the 2007-08, 2008-09, 2009-10, and 2010-11 fiscal
years shall be adjusted to reflect the income eligibility limits
specified in subdivision (b) of Section 8263.1 for the 2011-12 fiscal
year, and shall retain a flat fee per family. The revised family
                                       fee schedule shall begin at
income levels at which families currently begin paying fees. The
revised family fees shall not exceed 10 percent of the family's
monthly income. The department shall first submit the adjusted family
fee schedule to the Department of Finance for approval in order for
the adjusted family fee schedule to be implemented by July 1, 2011.
   (c) Notwithstanding any other law, the family fee schedule that
was in effect for the 2011-12 fiscal year pursuant to subdivision (b)
shall remain in effect for the 2012-13 fiscal year, and shall retain
a flat fee per family.
   (d) Notwithstanding any other law, the family fee schedule that
was in effect for the 2012-13 fiscal year pursuant to subdivision (c)
shall remain in effect for the 2013-14 fiscal year until the first
day of a month that is at least 60 days after the new family fee
schedule developed pursuant to Section 8273 has been approved by the
Department of Finance and adopted. 
   SEC. 11.    Section 8273.2 is added to the  
Education Code   , to read:  
   8273.2.  Commencing with the 2014-15 fiscal year, the adopted
family fee schedule that was in effect on July 1, 2014, shall remain
in effect. 
   SEC. 12.    Section 8278.3 of the  
Education Code   is amended to read: 
   8278.3.  (a) (1) The Child Care Facilities Revolving Fund is
hereby established in the State Treasury to provide funding for the
renovation, repair, or improvement of an existing building to make
the building suitable for licensure for child care and development
services and for the purchase of new relocatable child care
facilities for lease to  school districts  
local educational agencies  and contracting agencies that
provide child care and development services, pursuant to this
chapter. The Superintendent may transfer state funds appropriated for
child care facilities into this fund for allocation to 
school districts   local ed   ucational
agencies  and contracting agencies, as specified, for the
purchase, transportation, and installation of facilities for
replacement and expansion of capacity.  School districts
  Local educational agencies  and contracting
agencies using facilities made available by the use of these funds
shall be charged a leasing fee, either at a fair market value for
those facilities or at an amount sufficient to amortize the cost of
purchase and relocation, whichever amount is lower, over a 10-year
period. Upon full repayment of the purchase and relocation costs,
title shall transfer from the State of California to the 
school district   local educational agency  or
contracting agency. The Superintendent shall deposit all revenue
derived from the lease payments into the Child Care Facilities
Revolving Fund.
   (2) Notwithstanding Section 13340 of the Government Code, all
moneys in the fund, including moneys deposited from lease payments,
are continuously appropriated, without regard to fiscal years, to the
Superintendent for expenditure pursuant to this article. 
   (3) Augmentations to the Child Care Facilities Revolving Fund made
in the Budget Act of 2014 shall be used for renovation or repair of
existing local educational agency facilities or new relocatable child
care facilities for lease to local educational agencies that provide
California state preschool program services pursuant to this
chapter. 
   (b) On or before August 1 of each fiscal year, the Superintendent
shall submit to the Department of Finance and the Legislative Analyst'
s Office a report detailing the number of funding requests received
and their purpose, the types of agencies that received funding from
the Child Care Facilities Revolving Fund, the increased capacity that
these facilities generated, a description of the manner in which the
facilities are being used, and a projection of the lease payments
collected and the funds available for future use.
   (c) A  school district or county office of education
  local educational agency  that provides child
care pursuant to the California School Age Families Education Program
(Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29
of Division 4 of Title 2) is eligible to apply for and receive
funding pursuant to this section.
   SEC. 13.    Section 8363.1 is added to the  
Education Code   , to read:  
   8363.1.  (a) On or before, July 1, 2016, the Commission on Teacher
Credentialing shall review, and update if appropriate, the
requirements for the issuance and renewal of permits authorizing
service in the care, development, and instruction of children in
child care and development programs and permits authorizing
supervision of a child care and development program.
   (b) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date. 
   SEC. 14.    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
State Department of Education and by authorizing the State Department
of Education 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 State Department of
Education not more than 30 working days from the date of submission,
unless unresolved conflicts remain between the Department of Finance,
the State Department of Education, and the Department of General
Services. The State Department of Education 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 State Department of Education 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 13 percent. If a ceiling for a county is less than the ceiling
provided for that county before January 1, 2015, the State Department
of Education shall use the ceiling from the Regional Market survey
conducted in 2005. 
   (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, that modify related
adjustment factors, that modify administrative or other service
allowances, or that 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 State Department of
Education 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 State Department of Education the state median income
amount for a four-person household in California based on the best
available data. The State Department of Education 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 State Department of Education 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. 15.    Section 8450 of the   Education
Code   is amended to read: 
   8450.  (a) All child development contractors are encouraged to
develop and maintain a reserve within the child development fund,
derived from earned but unexpended funds. Child development
contractors may retain all earned funds. For  the purpose
  purposes  of this section, "earned funds" are
those for which the required number of eligible service units have
been provided.
   (b) (1) Earned funds shall not be expended for any activities
proscribed by Section 8406.7. Earned but unexpended funds shall
remain in the contractor's reserve account within the child
development fund and shall be expended only by direct service child
development programs that are funded under contract with the
department.
   (2)  (A)    Commencing July 1, 2011, a
contractor may retain a reserve fund balance, separate from the
reserve fund retained pursuant to subdivision (c) or (d), equal to 5
percent of the sum of the maximum reimbursable amounts of all
contracts to which the contractor is a party, or two thousand dollars
($2,000), whichever is greater. This paragraph applies to direct
service child development programs that are funded under contract
with the department. 
   (B) A California state preschool program contracting agency may
retain in the reserve fund an additional 10 percent of the sum of the
maximum reimbursable amounts of all preschool contracts to which the
contracting agency is a party for purposes of professional
development for California state preschool program instructional
staff. 
   (c) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for a resource and referral program,
separate from the balance retained pursuant to subdivision (b) or
(d), not to exceed 3 percent of the contract amount. Funds from this
reserve account may be expended only by resource and referral
programs that are funded under contract with the department.
   (d) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for alternative payment model and
certificate child care contracts, separate from the reserve fund
retained pursuant to subdivisions (b) and (c). Funds from this
reserve account may be expended only by alternative payment model and
certificate child care programs that are funded under contract with
the department. The reserve amount allowed by this section may not
exceed either of the following, whichever is greater:
   (1) Two percent of the sum of the parts of each contract to which
that contractor is a party that is allowed for administration
pursuant to Section 8276.7 and that is allowed for supportive
services pursuant to the provisions of the contract.
   (2) One thousand dollars ($1,000).
   (e) Each contractor's audit shall identify any funds earned by the
contractor for each contract through the provision of contracted
services in excess of funds expended.
   (f) Any interest earned on reserve funds shall be included in the
fund balance of the reserve. This reserve fund shall be maintained in
an interest-bearing account.
   (g) Moneys in a contractor's reserve fund may be used only for
expenses that are reasonable and necessary costs as defined in
subdivision (n) of Section 8208.
   (h) Any reserve fund balance in excess of the amount authorized
pursuant to subdivisions (b), (c), and (d) shall be returned to the
department pursuant to procedures established by the department.
   (i) Upon termination of all child development contracts between a
contractor and the department, all moneys in a contractor's reserve
fund shall be returned to the department pursuant to procedures
established by the department.
   (j) Expenditures from, additions to, and balances in, the reserve
fund shall be included in the agency's annual financial statements
and audit.
   SEC. 16.    Section 8499.5 of the  
Education Code   is amended to read: 
   8499.5.  (a) The department shall allocate child care funding
pursuant to Chapter 2 (commencing with Section 8200) based on the
amount of state and federal funding that is available.
   (b) By May 30 of each year, upon approval by the county board of
supervisors and the county superintendent of schools, a local
planning council shall submit to the department the local priorities
it has identified that reflect all child care needs in the county. To
accomplish this, a local planning council shall do all of the
following:
   (1) Conduct an assessment of child care needs in the county no
less  frequently  than once every five years. The department
shall define and prescribe data elements to be included in the needs
assessment and shall specify the format for the data reporting. The
needs assessment shall also include all factors deemed appropriate by
the local planning council in order to obtain an accurate picture of
the comprehensive child care needs in the county. The factors
include, but are not limited to, all of the following:
   (A) The needs of families eligible for subsidized child care.
   (B) The needs of families not eligible for subsidized child care.
   (C) The waiting lists for programs funded by the department and
the State Department of Social Services.
   (D) The need for child care for children determined by the child
protective services agency to be neglected, abused, or exploited, or
at risk of being neglected, abused, or exploited.
   (E) The number of children in families receiving public
assistance, including CalFresh benefits, housing support, and
Medi-Cal, and assistance from the Healthy Families Program and the
Temporary Assistance for Needy Families (TANF) program.
   (F) Family income among families with preschool or schoolage
children.
   (G) The number of children in migrant agricultural families who
move from place to place for work or who are currently dependent for
their income on agricultural employment in accordance with
subdivision (a) of, and paragraphs (1) and (2) of subdivision (b) of,
Section 8231.
   (H) The number of children who have been determined by a regional
center to require services pursuant to an individualized family
service plan, or by a local educational agency to require services
pursuant to an individualized education program or an individualized
family service plan.
   (I) The number of children in the county by primary language
spoken pursuant to the department's language survey.
   (J) Special needs based on geographic considerations, including
rural areas.
   (K) The number of children needing child care services by age
cohort.
   (2) Document information gathered during the needs assessment
which shall include, but need not be limited to, data on supply,
demand, cost, and market rates for each category of child care in the
county.
   (3) Encourage public input in the development of the priorities.
Opportunities for public input shall include at least one public
hearing during which members of the public can comment on the
proposed priorities.
   (4) Prepare a comprehensive countywide child care plan designed to
mobilize public and private resources to address identified needs.
   (5) Conduct a periodic review of child care programs funded by the
department and the State Department of Social Services to determine
if identified priorities are being met.
   (6) Collaborate with subsidized and nonsubsidized child care
providers, county welfare departments, human service agencies,
regional centers, job training programs, employers, integrated child
and family service councils, local and state children and families
commissions, parent organizations, early start family resource
centers, family empowerment centers on disability, local child care
resource and referral programs, and other interested parties to
foster partnerships designed to meet local child care needs.
   (7) Design a system to consolidate local child care waiting lists,
if a centralized eligibility list is not already in existence.
   (8) Coordinate part-day programs, including state preschool and
Head Start, with other child care and development services to provide
full-day child care.
   (9) Submit the results of the needs assessment and the local
priorities identified by the local planning council to the board of
supervisors and the county superintendent of schools for approval
before submitting them to the department.
   (10) Identify at least one, but not more than two, members to
serve as part of the department team that reviews and scores
proposals for the provision of services funded through contracts with
the department. Local planning council representatives may not
review and score proposals from the geographic area covered by their
own local planning council. The department shall notify each local
planning council whenever this opportunity is available.
   (c) The department shall, in conjunction with the State Department
of Social Services and all appropriate statewide agencies and
associations, develop guidelines for use by local planning councils
to assist them in conducting needs assessments that are reliable and
accurate. The guidelines shall include acceptable sources of
demographic and child care data, and methodologies for assessing
child care supply and demand.
   (d)  The   Except   as otherwise
required by subdivision (c) of Section 8236, the  department
shall allocate funding within each county in accordance with the
priorities identified by the local planning council of that county
and submitted to the department pursuant to this section, unless the
priorities do not meet the requirements of state or federal law.
   SEC. 17.    Section 14035 of the   Education
Code   is repealed.  
   14035.  (a) The county school service fund contingency account is
hereby established in the General Fund. In each fiscal year the
amount credited to the account shall be one hundred thousand dollars
($100,000). Notwithstanding any provision of Section 14002 to the
contrary, the amount to be credited to the county school service fund
contingency account each fiscal year shall not be transferred from
the General Fund as required or authorized to be transferred by
Section 14002, but the amounts required or authorized to be
transferred by Section 14002 shall be reduced by the amount to be
credited to the contingency account and shall remain in the General
Fund to the credit of the contingency account.
   (b) The moneys in the General Fund to the credit of the
contingency account shall be transferred by the Controller to the
State School Fund in amounts as are certified from time to time by
the Superintendent of Public Instruction to be necessary to meet
actual costs to reimburse county superintendents of schools for
expenses incurred in providing emergency education to pupils and
making financial grants to school districts pursuant to Section 1602,
to reimburse county superintendents of schools for the actual and
necessary travel expenses incurred in connection with cooperative
county publication projects by the county superintendent of schools
or members of his or her staff, and to reimburse county
superintendents of schools for expenses incurred in making emergency
financial grants to school districts.
   (c) The amount credited, pursuant to this section, in each fiscal
year to the county school service fund contingency account in the
General Fund shall be reduced by the amount of the balance remaining
to the account on June 30 of the preceding fiscal year and an equal
reduction shall be made in the amount of the reduction in the amounts
required or authorized to be transferred under Section 14002 in
accordance with this section. 
   SEC. 18.    Section 14041.5 of the  
Education Code   is amended to read: 
   14041.5.  (a) Notwithstanding subdivision (a) of Section 14041,
 commencing with   for  the 2002-03 fiscal
 year,   year to the 2013-14 fiscal  
year, inclusive,  warrants for the principal apportionments for
the month of June instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41335.
   (b) Except as provided in subdivisions (c) and (d), for purposes
of making the computations required by Section 8 of Article XVI of
the California Constitution, the warrants drawn pursuant to
subdivision (a) shall be deemed to be "General Fund revenues
appropriated to school districts," as defined in subdivision (c) of
Section 41202 for the fiscal year in which the warrants are drawn 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, for the fiscal year in which the warrants are
drawn.
   (c) For the 2003-04 school year, the amount of apportionments for
revenue limits computed pursuant to Section 42238 from any of the
apportionments made pursuant to Section 14041 that are deemed
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 for the following 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, for the 2004-05 fiscal year shall be seven
hundred twenty-six million two hundred seventy thousand dollars
($726,270,000). Any amount in excess of seven hundred twenty-six
million two hundred seventy thousand dollars ($726,270,000) that is
apportioned in July of 2004 is deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the 2003-04 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,
for the 2003-04 fiscal year.
   (d) For the 2004-05 school year to the 2007-08 school year,
inclusive, the amount of apportionments for revenue limits computed
pursuant to Section 42238 from any of the apportionments made
pursuant to Section 14041 that are deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the following 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,
for the following fiscal year shall be seven hundred fifteen million
one hundred eighteen thousand dollars ($715,118,000). Any amount in
excess of seven hundred fifteen million one hundred eighteen thousand
dollars ($715,118,000) that is apportioned in July of any year is
deemed "General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 for the prior 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, for the prior fiscal year.
   (e) For the 2008-09 school  year, and each school year
thereafter,   year to the 2013-14 school year,
inclusive,  the amount of apportionments for revenue limits
computed pursuant to Section 42238 from any of the apportionments
made pursuant to Section 14041 that are deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the following 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,
for the following fiscal year shall be one billion one hundred one
million six hundred fifty-five thousand dollars ($1,101,655,000). Any
amount in excess of one billion one hundred one million six hundred
fifty-five thousand dollars ($1,101,655,000) that is
                         apportioned in July of any year is deemed
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 for the prior 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, for the prior fiscal year.
   SEC. 19.    Section 14041.6 of the  
Education Code   is amended to read: 
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, for the 2008-09 fiscal  year  
year,  warrants for the principal apportionments for the month
of February in the amount of two billion dollars ($2,000,000,000)
instead shall be drawn in July of the same calendar year pursuant to
the certification made pursuant to Section 41339.
   (b) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2009-10 fiscal  year   year, 
warrants for the principal apportionments for the month of February
in the amount of two billion dollars ($2,000,000,000) instead shall
be drawn in July of the same calendar year and warrants for the month
of April in the amount of six hundred seventy-eight million six
hundred eleven thousand dollars ($678,611,000) and for the month of
May in the amount of one billion dollars ($1,000,000,000) instead
shall be drawn in August pursuant to the certification made pursuant
to Section 41339.
   (c) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2010-11 fiscal  year   year, 
warrants for the principal apportionments for the month of February
in the amount of two billion dollars ($2,000,000,000), for the month
of April in the amount of four hundred nineteen million twenty
thousand dollars ($419,020,000), for the month of May in the amount
of eight hundred million dollars ($800,000,000), and for the month of
June in the amount of five hundred million dollars ($500,000,000)
instead shall be drawn in July of the same calendar year and warrants
for the month of April in the amount of six hundred seventy-eight
million six hundred eleven thousand dollars ($678,611,000) and for
the month of May in the amount of one billion dollars
($1,000,000,000) instead shall be drawn in August pursuant to the
certification made pursuant to Section 41339.
   (d) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2011-12 fiscal  year  year, 
warrants for the principal apportionments for the month of February
in the amount of two billion dollars ($2,000,000,000), for the month
of April in the amount of four hundred nineteen million twenty
thousand dollars ($419,020,000), for the month of May in the amount
of eight hundred million dollars ($800,000,000), and for the month of
June in the amount of five hundred million dollars ($500,000,000)
instead shall be drawn in July of the same calendar year and warrants
for the month of March in the amount of one billion three hundred
million dollars ($1,300,000,000) and for the month of April in the
amount of one billion four hundred forty-two million four hundred
five thousand dollars ($1,442,405,000) and for the month of May in
the amount of one billion dollars ($1,000,000,000) instead shall be
drawn in August pursuant to the certification made pursuant to
Section 41339.
   (e) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2012-13 fiscal  year   year, 
warrants for the principal apportionments for the month of February
in the amount of five hundred thirty-one million seven hundred twenty
thousand dollars ($531,720,000), for the month of April in the
amount of five hundred ninety-four million seven hundred forty-eight
thousand dollars ($594,748,000), for the month of May in the amount
of one billion nine hundred seventy-six million seven hundred one
thousand dollars ($1,976,701,000), and for the month of June in the
amount of five hundred million dollars ($500,000,000) instead shall
be drawn in July of the same calendar year and warrants for the month
of March in the amount of one billion twenty-nine million four
hundred ninety-three thousand dollars ($1,029,493,000) and for the
month of April in the amount of seven hundred sixty-three million
seven hundred ninety-four thousand dollars ($763,794,000) instead
shall be drawn in August pursuant to the certification made pursuant
to Section 41339.
   (f) Notwithstanding subdivision (a) of Section 14041, or any other
 law, commencing with   law, for  the
2013-14 fiscal year, warrants for the principal apportionments for
the month of April in the amount of nine hundred seventeen million
five hundred forty-two thousand dollars ($917,542,000), for the month
of May in the amount of two billion one hundred fifty-two million
four hundred thirty thousand dollars ($2,152,430,000), and for the
month of June in the amount of five hundred million dollars
($500,000,000) instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41339.
   (g) Notwithstanding subdivision (a) of Section  14041
  14041,  or any other law,  commencing
with   for  the 2013-14 fiscal year, warrants for
the principal apportionments for the month of May in the amount of
two hundred million dollars ($200,000,000) and for the month of June
in the amount of six hundred ninety-nine million four hundred
seventy-three thousand dollars ($699,473,000) instead shall be drawn
in July of the same calendar year pursuant to the certification made
pursuant to Section 41339. The Superintendent shall allocate this
deferred amount and repayment to local educational agencies based on
their proportionate share of funding appropriated to local
educational agencies pursuant to Section 92 of Chapter 38 of the
Statutes of 2012. 
   (h) Notwithstanding subdivision (a) of Section 14041, or any other
law, for the 2014-15 fiscal year, warrants for the principal
apportionments for the month of June in the amount of eight hundred
ninety-seven million one hundred eighty-four thousand dollars
($897,184,000) instead shall be drawn in July of the same calendar
year pursuant to the certification made pursuant to Section 41339.
 
   (h) 
    (i)  Except as provided in subdivisions (c) and (e) of
Section 41202, for purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the warrants
drawn pursuant to subdivisions (a) to  (g),  
(h),  inclusive, shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202, for the fiscal year in which the warrants are drawn
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, for the fiscal year in which the warrants are
drawn. 
   (i) 
    (j)  Notwithstanding subdivision  (h), 
 (i),  for purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, one billion
five hundred ninety million four hundred forty-nine thousand dollars
($1,590,449,000) of the warrants drawn in August of 2013 pursuant to
subdivision (e) shall be deemed to be "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202, for the 2012-13 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,
for the 2012-13 fiscal year. 
   (k) Notwithstanding subdivision (i) of this section and
subdivision (e) of Section 14041.5, for purposes of making the
computations required by Section 8 of Article XVI of the California
Constitution, one billion two hundred ninety-four million seven
hundred twenty thousand dollars ($1,294,720,000) of the warrants
drawn in July 2014 pursuant to subdivisions (f) and (g) of this
section and subdivision (e) of Section 14041.5 shall be deemed to be
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202, for the 2012-13 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, for the 2012-13 fiscal year.  
   (l  ) Notwithstanding subdivision (i) of this section and
subdivision (e) of Section 14041.5, for purposes of making the
computations required by Section 8 of Article XVI of the California
Constitution, two billion seven hundred eighty million five hundred
twenty-six thousand dollars ($2,780,526,000) of the warrants drawn in
July 2014 pursuant to subdivisions (f) and (g) of this section and
subdivision (e) of Section 14041.5 shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202, 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, for the 2013-14 fiscal year.
   SEC. 20.    Section 17080 of the   Education
Code   is amended to read: 
   17080.   (a)    Notwithstanding
any other  provision of  law, whenever moneys
transferred to the General Fund each year from (1) moneys deposited
in the Public School Building Loan Fund pursuant to Section 15735,
and (2) moneys deposited in the State School Building Aid Fund
pursuant to Section 16080, are in excess of the amounts required to
reimburse the General Fund on account of principal and interest due
and payable for that fiscal year on all school building aid bonds
outstanding against the state, an amount equal to such excess is
appropriated from the General Fund for purposes of the  Leroy
F. Greene State School Building Lease-Purchase Law of 1976 (Chapter
12 (commencing with Section 17000)) and Section 17584. The Controller
shall transfer, as directed by the State Allocation Board, such
appropriated amount to the State School Building Lease-Purchase Fund
and to the State School Deferred Maintenance Fund, which is hereby
established.   School Facilities Emergency Repair
Account established pursuant to Section 17592.71. The Controller
shall transfer the appropriated amount to the School Facilities
Emergency Repair Account.  
   (b) In addition to the amount transferred pursuant to subdivision
(a), the Controller shall transfer annually from the General Fund to
the State School Deferred Maintenance Fund an amount equal to any
amount transferred to or deposited in the General Fund as a result of
repayment of any loan made by the board pursuant to Section
17005.15.  
   (c) Notwithstanding Section 13340 of the Government Code, the
State School Deferred Maintenance Fund is continuously appropriated
for the purposes for which it is established. 
   SEC. 21.    Section 24214 of the   Education
Code   , as amended by Section   28 of Chapter 559
of the Statutes of 2013, is amended to read: 
   24214.  (a) A member retired for service under this part may
perform retired member activities, but the member shall not make
contributions to the retirement fund or accrue service credit based
on compensation earned from that service. The employer shall maintain
accurate records of the earnings of the retired member and report
those earnings monthly to the system and retired member as described
in Section 22461.
   (b) If a member is retired for service under this part, the
annualized rate of pay for retired member activities, performed by
that member shall not be less than the minimum, nor exceed the
maximum, paid by the employer to other employees performing
comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing retired member activities.
   (d) A member retired for service under this part may earn
compensation for performing retired member activities in any one
school year up to the limitation specified in subdivision (f) without
a reduction in his or her retirement allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of retired member activities that are not wholly or
in part supported by state, local, or federal funds.
   (f) (1) The limitation that shall apply to the compensation paid
in cash to the retired member for performance of retired member
activities, excluding reimbursements paid by an employer for expenses
incurred by the member in which payment of the expenses by the
member is substantiated, shall, in any one school year, be an amount
calculated by the system each July 1 equal to one-half of the median
final compensation of all members who retired for service during the
fiscal year ending in the previous calendar year.
   (2) For written agreements pertaining to the performance of
retired member activities entered into, extended, renewed, or amended
on or after January 1, 2014, the limitation in paragraph (1) shall
also apply to payments, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
for contributions to a plan that meets the requirements of Section
125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the
United States Code when the cost is covered by an employer.
   (g) If a member retired for service under this part earns
compensation for performing retired member activities, in excess of
the limitation specified in subdivision (f), and if that compensation
is not exempt from that limitation under subdivision (e) or (h) or
any other law, the member's retirement allowance shall be reduced by
the amount of the excess compensation. The amount of the reduction
may be equal to the monthly allowance payable but shall not exceed
the amount of the annual allowance payable under this part for the
fiscal year in which the excess compensation was earned after any
reduction made in accordance with subdivision (h) of Section 24214.5.

   (h) The limitation specified in this section is not applicable to
compensation paid to a member retired for service under this part who
has returned to work after the date of retirement:
   (1) As a trustee appointed by the Superintendent  of
Public Instruction  pursuant to Section 41320.1.
   (2) As a fiscal adviser or fiscal expert appointed by a county
superintendent of schools pursuant to Article 2 (commencing with
Section 42122) of Chapter 6 of Part 24 of Division 3 of Title 2.
   (3) As a receiver or trustee appointed by the  State Board
of Education   state board  pursuant to Article
3.1 (commencing with Section 52055.57) of Chapter 6.1 of Part 28 of
Division 4 of Title 2.
   (4) As a special trustee appointed by the Board of Governors of
the California Community Colleges pursuant to Section 84040.
   (i) The  Superintendent of Public Instruction, 
 Superintendent,  the Executive Director of the State Board
of Education, the Chancellor of the California Community Colleges, or
the county superintendent of schools exercising the exemption
pursuant to subdivision (h) shall submit all documentation required
by the system to substantiate the eligibility of the retired member
for the exemption, including compliance with subdivisions (j) and
(k). The documentation shall be received by the system prior to the
retired member's performance of retired member activities.
   (j) Subdivision (h) shall not apply to a retired member who has
not attained normal retirement age at the time the compensation is
earned by the member, received additional service credit pursuant to
Section 22714 or 22715, or received from any public employer any
financial inducement to retire in the previous six months. For
purposes of this section and Section 24214.5, "financial inducement
to retire" includes, but is not limited to, any form of compensation
or other payment that is paid directly or indirectly by a public
employer to the member, even if not in cash, either before or after
retirement, if the member retires for service on or before a specific
date or specific range of dates established by the public employer
on or before the date the inducement is offered. The system shall
liberally interpret this subdivision to further the Legislature's
intent to make subdivision (h) inapplicable to members if the member
received a financial incentive from any public employer to retire or
otherwise terminate employment with the public employer.
   (k) The documentation required for subdivision (i) shall include
certification of the following:
   (1) The position was first advertised for appointment to current
active or inactive members of the program with the necessary
qualifications to perform the requirements of the position and no
qualified current active or inactive member was available to be
appointed.
   (2) The appointing authority made a good faith effort to hire a
retired member who reinstated to active membership for the position
at the same salary that was offered as first advertised pursuant to
paragraph (1).
   (3) The appointing authority, having tried and failed to hire a
current active or inactive member or a reinstated retired member,
hired a retired member and the salary offered to the retired member
subject to this paragraph does not exceed the salary that was offered
as first advertised pursuant to paragraph (1).
   (4) The salary paid shall be no greater than the salary offered to
current active members for the appointed position.
   (  l  ) The amendments to this section enacted during the
1995-96 Regular Session shall be deemed to have become operative on
July 1, 1996.
   (m) The amendments to this section enacted during the second year
of the 2011-12 Regular Session shall apply to compensation paid
during the 2012-13 and 2013-14 fiscal years.
   (n) The amendments to this section enacted during the first year
of the 2013-14 Regular Session shall apply to compensation paid on or
after January 1, 2014.
   (o) This section shall become inoperative on July 1, 
2014,   2017,  and, as of January 1,  2015,
  2018,  is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 
2015,   2018,  deletes or extends the dates on
which it becomes inoperative and is repealed.
   SEC. 22.    Section 24214 of the   Education
Code   , as amended by Section   29 of Chapter 559
of the Statutes of 2013, is amended to read: 
   24214.  (a) A member retired for service under this part may
perform retired member activities, but the member shall not make
contributions to the retirement fund or accrue service credit based
on compensation earned from that service. The employer shall maintain
accurate records of the earnings of the retired member and report
those earnings monthly to the system and retired member as described
in Section 22461.
   (b) If a member is retired for service under this part, the
annualized rate of pay for retired member activities performed by
that member shall not be less than the minimum, nor exceed the
maximum, paid by the employer to other employees performing
comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing retired member activities.
   (d) A member retired for service under this part may earn
compensation for performing retired member activities in any one
school year up to the limitation specified in subdivision (f) without
a reduction in his or her retirement allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of retired member activities that are not wholly or
in part supported by state, local, or federal funds.
   (f) (1) The limitation that shall apply to the compensation paid
in cash to the retired member for performance of retired member
activities, excluding reimbursements paid by an employer for expenses
incurred by the member in which payment of the expenses by the
member is substantiated, shall, in any one school year, be an amount
calculated by the system each July 1 equal to one-half of the median
final compensation of all members who retired for service during the
fiscal year ending in the previous calendar year.
   (2) For written agreements pertaining to the performance of
retired member activities entered into, extended, renewed, or amended
on or after January 1, 2014, the limitation in paragraph (1) shall
also apply to payments, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an annuity
contract, tax-deferred retirement plan, or insurance program; and
for contributions to a plan that meets the requirements of Section
125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the
United States Code when the cost is covered by an employer.
   (g) If a member retired for service under this part earns
compensation for performing retired member activities, in excess of
the limitation specified in subdivision (f), the member's retirement
allowance shall be reduced by the amount of the excess compensation.
The amount of the reduction may be equal to the monthly allowance
payable but may not exceed the amount of the annual allowance payable
under this part for the fiscal year in which the excess compensation
was earned after any reduction made in accordance with subdivision
(h) of Section 24214.5.
   (h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
   (i) This section shall become operative on July 1,  2014.
  2017. 
   SEC. 23.    Section 4120   3.1 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  2013-14   2014-15  fiscal
years, inclusive.
   SEC. 24.    Section 41207.3 of the  
Education Code   , as added by Section 4 of Chapter 3 of the
4th   Extraordinary Session of the Statutes of 2009, 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.
   (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). Commencing with
the  2014-15   2015-16  fiscal year, the
Legislature shall appropriate the outstanding balance and specify in
the annual Budget Act or other statute making  such 
 those  appropriations that the funds shall be used for any
one-time purpose so long as those appropriations are made for
allocation to school districts or community college districts.
   (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)  of this section  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)  of this section  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)  of this section  is deemed to be certified for
purposes of Section 41206 upon enactment of this section.
   SEC. 25.    Section 41841.9 is added to the 
 Education Code   , to read:  
   41841.9.  (a) For the 2014-15 fiscal year, this article shall
apply to a charter school whose charter was granted by its chartering
authority                                               after July
1, 2014.
   (b) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 26.    Section 42127 of the   Education
Code   is amended to read: 
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing on the budget to be adopted for the
subsequent fiscal year. The budget to be adopted shall be prepared in
accordance with Section 42126. The agenda for that hearing shall be
posted at least 72 hours before the public hearing and shall include
the location where the budget will be available for public
inspection.
   (A) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (B) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (2)  (A)    Adopt a budget. Not later than five
days after that adoption or by July 1, whichever occurs first, the
governing board of the school district shall file that budget with
the county superintendent of schools. The budget and supporting data
shall be maintained and made available for public review. If the
governing board of the school district does not want all or a portion
of the property tax requirement levied for the purpose of making
payments for the interest and redemption charges on indebtedness as
described in paragraph (1) or (2) of subdivision (b) of Section 1 of
Article XIII A of the California Constitution, the budget shall
include a statement of the amount or portion for which a levy shall
not be made. For the 2014-15 fiscal year and each fiscal year
thereafter, the governing board of the school district shall not
adopt a budget before the governing board of the school district
adopts a local control and accountability plan, if an existing local
control and accountability plan or annual update to a local control
and accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective during the
subsequent fiscal year. 
   (B) Commencing with budgets adopted for the 2015-16 fiscal year,
the governing board of a school district that proposes to adopt a
budget, or revise a budget pursuant to subdivision (e), that includes
a combined assigned and unassigned ending fund balance in excess of
the minimum recommended reserve for economic uncertainties adopted by
the state board pursuant to subdivision (a) of Section 33128, shall,
at the public hearing held pursuant to paragraph (1), provide all of
the following for public review and discussion:  
   (i) The minimum recommended reserve for economic uncertainties for
each fiscal year identified in the budget.  
   (ii) The combined assigned and unassigned ending fund balances
that are in excess of the minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget. 

   (iii) A statement of reasons that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties for each
fiscal year that the school district identifies an assigned and
unassigned ending fund balance that is in excess of the minimum
recommended reserve for economic uncertainties, as identified
pursuant to clause (ii).  
   (C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission each time it files an adopted or revised budget with the
county superintendent of schools. The information required pursuant
to subparagraph (B) shall be maintained and made available for public
review. 
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
   (2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than 3 of the 15
most common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet its
current and future obligations and resolve any problems identified
in studies, reports, evaluations, or audits described in this
paragraph.
   (3) Determine whether the adopted budget includes the expenditures
necessary to implement the local control and accountability plan or
annual update to the local control and accountability plan approved
by the county superintendent of schools. 
   (4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the minimum
recommended reserve for economic uncertainties. If the adopted budget
includes a combined assigned and unassigned ending fund balance that
exceeds the minimum recommended reserve for economic uncertainties,
the county superintendent of schools shall verify that the school
district complied with the requirements of subparagraphs (B) and (C)
of paragraph (2) of subdivision (a). 
   (d) (1) On or before August 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal year
and each fiscal year thereafter, the county superintendent of schools
shall disapprove a budget if the county superintendent of schools
determines that the budget does not include the expenditures
necessary to implement a local control and accountability plan or an
annual update to the local control and accountability plan approved
by the county superintendent of schools. If a school district does
not submit a budget to the county superintendent of schools, the
county superintendent of schools shall develop, at school district
expense, a budget for that school district by September 15 and
transmit that budget to the governing board of the school district.
The budget prepared by the county superintendent of schools shall be
deemed adopted, unless the county superintendent of schools approves
any modifications made by the governing board of the school district.
 The budget prepared by the county superintendent of schools
shall also comply with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a).  The approved budget shall be
used as a guide for the school district's priorities. The
Superintendent shall review and certify the budget approved by the
county. If, pursuant to the review conducted pursuant to subdivision
(c), the county superintendent of schools determines that the adopted
budget for a school district does not satisfy paragraph (1), (2),
 or (3)   (3), or (4)  of that subdivision,
he or she shall conditionally approve or disapprove the budget and,
not later than August 15, transmit to the governing board of the
school district, in writing, his or her recommendations regarding
revision of the budget and the reasons for those recommendations,
including, but not limited to, the amounts of any budget adjustments
needed before he or she can approve that budget. The county
superintendent of schools may assign a fiscal adviser to assist the
school district to develop a budget in compliance with those
revisions. In addition, the county superintendent of schools may
appoint a committee to examine and comment on the superintendent's
review and recommendations, subject to the requirement that the
committee report its findings to the county superintendent of schools
no later than August 20. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent of
schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the school district to demonstrate
that it is able to meet its financial obligations for the two
subsequent fiscal years.
   (2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget shall
not be adopted or approved by the county superintendent of schools
before a local control and accountability plan or update to an
existing local control and accountability plan for the budget year is
approved.
   (e) On or before September 8, the governing board of the school
district shall revise the adopted budget to reflect changes in
projected income or expenditures subsequent to July 1, and to include
any response to the recommendations of the county superintendent of
schools, shall adopt the revised budget, and shall file the revised
budget with the county superintendent of schools. Before revising the
budget, the governing board of the school district shall hold a
public hearing regarding the proposed revisions, to be conducted in
accordance with Section 42103. In addition, if the adopted budget is
disapproved pursuant to subdivision (d), the governing board of the
school district and the county superintendent of schools shall review
the disapproval and the recommendations of the county superintendent
of schools regarding revision of the budget at the public hearing.
The revised budget and supporting data shall be maintained and made
available for public review.
   (1) For the 2011-12 fiscal year, notwithstanding any of the
standards and criteria adopted by the state board pursuant to Section
33127, each school district budget shall project the same level of
revenue per unit of average daily attendance as it received in the
2010-11 fiscal year and shall maintain staffing and program levels
commensurate with that level.
   (2) For the 2011-12 fiscal year, the school district shall not be
required to demonstrate that it is able to meet its financial
obligations for the two subsequent fiscal years.
   (f) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.
   (g) (1) The county superintendent of schools shall examine the
revised budget to determine whether it  (1)  
(A)  complies with the standards and criteria adopted by the
state board pursuant to Section 33127 for application to final local
educational agency budgets,  (2)   (B) 
allows the school district to meet its financial obligations during
the fiscal year,  (3)   (C)  satisfies all
conditions established by the county superintendent of schools in the
case of a conditionally approved budget,  and (4) 
 (D)  is consistent with a financial plan that will enable
the school district to satisfy its multiyear financial commitments,
and, not later than October 8, shall approve or disapprove the
revised  budget.   budget, and (E) whether the
revised budget complies with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a).  If the county superintendent
of schools disapproves the budget, he or she shall call for the
formation of a budget review committee pursuant to Section 42127.1,
unless the governing board of the school district and the county
superintendent of schools agree to waive the requirement that a
budget review committee be formed and the department approves the
waiver after determining that a budget review committee is not
necessary. Upon the grant of a waiver, the county superintendent of
schools immediately has the authority and responsibility provided in
Section 42127.3. Upon approving a waiver of the budget review
committee, the department shall ensure that a balanced budget is
adopted for the school district by November 30. If no budget is
adopted by November 30, the Superintendent may adopt a budget for the
school district. The Superintendent shall report to the Legislature
and the Director of Finance by December 10 if any school district,
including a school district that has received a waiver of the budget
review committee process, does not have an adopted budget by November
30. This report shall include the reasons why a budget has not been
adopted by the deadline, the steps being taken to finalize budget
adoption, the date the adopted budget is anticipated, and whether the
Superintendent has or will exercise his or her authority to adopt a
budget for the school district. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent of
schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the school district to demonstrate
that it is able to meet its financial obligations for the two
subsequent fiscal years.
   (2) Notwithstanding any other law, for the 2014-15 fiscal year and
each fiscal year thereafter, if the county superintendent of schools
disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the school district pursuant to Section
52061, the county superintendent of schools shall not call for the
formation of a budget review committee pursuant to Section 42127.1.
   (h) Not later than October 8, the county superintendent of schools
shall submit a report to the Superintendent identifying all school
districts for which budgets have been disapproved or budget review
committees waived. The report shall include a copy of the written
response transmitted to each of those school districts pursuant to
paragraph (1) of subdivision (d).
   (i) Notwithstanding any other provision of this section, the
budget review for a school district shall be governed by paragraphs
(1), (2), and (3), rather than by subdivisions (e) and (g), if the
governing board of the school district so elects and notifies the
county superintendent of schools in writing of that decision, not
later than October 31 of the immediately preceding calendar year. On
or before July 1, the governing board of a school district for which
the budget review is governed by this subdivision, rather than by
subdivisions (e) and (g), shall conduct a public hearing regarding
its proposed budget in accordance with Section 42103.
   (1) If the adopted budget of a school district is disapproved
pursuant to subdivision (d), on or before September 8, the governing
board of the school district, in conjunction with the county
superintendent of schools, shall review the superintendent's
recommendations at a regular meeting of the governing board of the
school district and respond to those recommendations. The response
shall include any revisions to the adopted budget and other proposed
actions to be taken, if any, as a result of those recommendations.
   (2) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which a budget may be tentatively disapproved.
   (3) Not later than October 8, after receiving the response
required under paragraph (1), the county superintendent of schools
shall review that response and either approve or disapprove the
budget. Except as provided in paragraph (2) of subdivision (g), if
the county superintendent of schools disapproves the budget, he or
she shall call for the formation of a budget review committee
pursuant to Section 42127.1, unless the governing board of the school
district and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed and the
department approves the waiver after determining that a budget review
committee is not necessary. Upon the grant of a waiver, the county
superintendent has the authority and responsibility provided to a
budget review committee in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by November 30.
The Superintendent shall report to the Legislature and the Director
of Finance by December 10 if any school district, including a school
district that has received a waiver of the budget review committee
process, does not have an adopted budget by November 30. This report
shall include the reasons why a budget has not been adopted by the
deadline, the steps being taken to finalize budget adoption, and the
date the adopted budget is anticipated. For the 2011-12 fiscal year,
notwithstanding any of the standards and criteria adopted by the
state board pursuant to Section 33127, the county superintendent of
schools, as a condition on approval of a school district budget,
shall not require a school district to project a lower level of
revenue per unit of average daily attendance than it received in the
2010-11 fiscal year nor require the school district to demonstrate
that it is able to meet its financial obligations for the two
subsequent fiscal years.
   (4) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (j) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
   SEC. 27.    Section 42127.01 is added to the 
 Education Code   , to read:  
   42127.01.  (a) In a fiscal year immediately after a fiscal year in
which a transfer is made into the Public School System Stabilization
Account, a school district budget that is adopted or revised
pursuant to Section 42127 shall not contain a combined assigned or
unassigned ending fund balance that is in excess of the following:
   (1) For school districts with fewer than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
two.
   (2) For school districts with more than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
three.
   (b) A county superintendent of schools may grant a school district
under its jurisdiction an exemption from the requirements of
subdivision (a) for up to two consecutive fiscal years within a
three-year period if the school district provides documentation
indicating that extraordinary fiscal circumstances, including, but
not limited to, multiyear infrastructure or technology projects,
substantiate the need for a combined assigned or unassigned ending
fund balance that is in excess of the minimum recommended reserve for
economic uncertainties. As a condition of receiving an exception, a
school district shall do all of the following:
   (1) Provide a statement that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties.
   (2) Identify the funding amounts in the budget adopted by the
school district that are associated with the extraordinary fiscal
circumstances.
   (3) Provide documentation that no other fiscal resources are
available to fund the extraordinary fiscal circumstances.
   (c) This section shall become operative on December 15, 2014, only
if Assembly Constitutional Amendment No. 1 of the 2013-14 Second
Extraordinary Session is approved by the voters at the November 4,
2014, statewide general election. If Assembly Constitutional
Amendment No. 1 of the 2013-14 Second Extraordinary Session is not
approved by the voters at the November 4, 2014, statewide general
election, this section shall not become operative and is repealed on
January 1, 2015. 
   SEC. 28.    Section 44235.2 is added to the 
 Education Code   , to read:  
   44235.2.  (a) If in any month there are insufficient moneys in the
Teacher Credentials Fund to satisfy monthly payroll obligations and
scheduled claims, and there are moneys in the Test Development and
Administration Account not required to meet any demand that has
accrued or may accrue against it, the Controller shall transfer
moneys from the Test Development and Administration Account to the
Teacher Credentials Fund to the extent necessary to meet the
immediate obligations of the Teacher Credentials Fund.
   (b) Moneys transferred pursuant to subdivision (a) shall be
returned to the Test Development and Administration Account as soon
as there are sufficient moneys in the Teacher Credentials Fund to do
so, but by no later than 60 days after the transfer was made.
   (c) If sufficient moneys do not accumulate in the Teacher
Credentials Fund within 60 days after the transfer was made, whatever
portion of the amount received from the Test Development and
Administration Account that is in the Teacher Credentials Fund at
that time shall be returned to the Test Development and
Administration Account. The remaining balance of the outstanding
transfer, if any, shall be returned thereafter in monthly
installments as moneys accumulate in the Teacher Credentials Fund. If
the Teacher Credentials Fund fails to return the full amount of any
transfer by the end of the fiscal year, the Teacher Credentials Fund
shall be ineligible to receive further transfers until it has
returned the full amount previously transferred from the Test
Development and Administration Account. 
   SEC. 29.    Section 44374.5 of the  
Education Code   is amended to re   ad: 
   44374.5.  (a) The commission may charge  a fee 
 fees  to  recover   cover  the
standard costs of reviewing new  and existing  educator
preparation programs.  Applicable local educational agencies
and institutions of higher education   Sponsors of
educator preparation programs  shall submit the established fee
to the commission when submitting a proposal for a new 
program.   program, and, as determined by the
commission, for the review of an existing program. The commission
shall not waive the fee for the review of existing programs for
in-kind contributions from sponsors of educator preparation programs.
 The commission may review the established  fee
  fees  on a periodic basis and adjust the 
fee   fees  as necessary. The commission shall
notify the chairpersons of the committees and subcommittees in each
house of the Legislature that consider the State Budget and the
Department of Finance at least 30 days before implementing the
 fee   fees  and at least 30 days before
making any subsequent fee adjustments.
                        (b) The commission may charge
commission-approved entities a fee to recover the costs of
accreditation activities in excess of the regularly scheduled data
reports, program assessments, and accreditation site visits. This
includes, but is not necessarily limited to, accreditation revisits,
addressing stipulations, or program assessment reviews beyond those
supported within the standard costs of review.  Institutions
of higher education   Sponsors of educator preparation
programs  shall submit the established fee to the commission in
the year that the extraordinary activities are performed. The
commission may review the established fee on a periodic basis, and
adjust the fee as necessary. The commission shall notify the
chairpersons of the committees and subcommittees in each house of the
Legislature that consider the State Budget and the Department of
Finance at least 30 days before implementing the fee and at least 30
days before making any subsequent fee adjustments.
   SEC. 30.    Section 47612.1 of the 
Education Code   is amended to read: 
   47612.1.   (a)    Except for the requirement
that a pupil be a California resident, subdivision (b) of Section
47612 shall not apply to a charter school  program that
  whose charter was granted by its chartering authority
before July 1, 2014, and that  provides instruction exclusively
in partnership with any of the following: 
   (a) 
    (1)  The federal Workforce Investment Act of 1998
 (Pub. L.   (Public Law  No. 105-220; 29
U.S.C. Sec.  2801,   2801  et seq.).

   (b) 
    (2)  Federally affiliated Youth Build programs. 

   (c) 
    (3)  Federal job corps training or instruction provided
pursuant to a memorandum of understanding with the federal provider.

   (d) 
    (4)  The California Conservation Corps or local
conservation corps certified by the California Conservation Corps
pursuant to Sections 14406 or 14507.5 of the Public Resources Code.

   (b) This section shall become inoperative on July 1, 2015, and, as
of January 1, 2016, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 31.    Section 47612.1 is added to the 
 Education Code   , to read:  
   47612.1.  (a) Except for the requirement that a pupil be a
California resident, subdivision (b) of Section 47612 shall not apply
to a charter school program that provides instruction exclusively in
partnership with any of the following:
   (1) The federal Workforce Investment Act of 1998 (Public Law No.
105-220; 29 U.S.C. Sec. 2801 et seq.).
   (2) Federally affiliated Youth Build programs.
   (3) Federal job corps training or instruction provided pursuant to
a memorandum of understanding with the federal provider.
   (4) The California Conservation Corps or local conservation corps
certified by the California Conservation Corps pursuant to Sections
14406 or 14507.5 of the Public Resources Code.
   (b) This section shall become operative on July 1, 2015. 
   SEC. 32.    Section 47644 of the   Education
Code   is amend   ed to read: 
   47644.  For each charter school deemed a local educational agency
for the purposes of special education, an amount equal to the amount
computed pursuant to Section 56836.08 for the special education local
plan area in which the charter school is included shall be
apportioned by the Superintendent  of Public Instruction
 pursuant to the local allocation plan developed pursuant to
subdivision (i) of Section 56195.7 or Section 56836.05, or both. If
the charter school is a participant in a local plan that only
includes other charter schools pursuant to subdivision (f) of Section
56195.1, the amount computed pursuant to Section  56836.11,
as adjusted pursuant to the incidence multiplier set forth in Section
56836.155,   56836.11  shall be apportioned by the
 superintendent   Superintendent  for each
unit of average daily attendance reported pursuant to subdivision
(a) of Section 56836.06.
   SEC. 33.    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 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 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 subdivision (g) of
Section 46300, 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.
   (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.
   (3) 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.
   (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 subdivision (g) of
Section 46300, a school district or charter school shall ensure that
teachers assigned to a transitional kindergarten classroom after July
1, 2015, have been issued at least one credential by the Commission
on Teacher Credentialing, and shall, by August 1, 2020, have 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 permit issued by the Commission on Teacher
Credentialing. 
   SEC. 34.    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 
twenty-nine   forty-eight  hundredths cents
 ($0.2229)   ($0.2248)  per meal, and, for
meals served in child care centers and homes, the reimbursement shall
be sixteen and  six tenths   seventy-four
hundredths  cents  ($0.1660)   ($0.1674)
 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. 35.    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,  for the applicable grade
span,  calculated as specified by the  State Department
of Education,   department,  shall not exceed the
equivalent ratio of pupils to full-time certificated employees for
all other educational programs operated by the school 
district.   district for the applicable grade span,
unless a new higher or lower grade span ratio for all other
educational programs offered within the respective grade span 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 grade span ratio for the
applicable grade span.  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,  for the applicable grade span,  to
be calculated in a manner prescribed by the  State Department
of Education,   department,  shall not exceed the
equivalent ratio of pupils to full-time 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.   county for the applicable
grade span, unless a new higher or lower grade span ratio for all
other educational programs offered within the respective grade span
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 grade span
ratio for the applicable grade span.  The computation of
 those   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 of Public Instruction.   Superintendent.
 
   (2) For purposes of this section, the following grade spans shall
apply:  
   (A) Kindergarten and grades 1 to 3, inclusive.  
   (B) Grades 4 to 6, inclusive.  
   (C) Grades 7 to 8, inclusive.  
   (D) Grades 9 to 12, inclusive. 
   (b) Only those units of average daily attendance for independent
study that reflect a pupil-teacher ratio that does not exceed the
 ratio   applicable grade span ratios 
described in subdivision (a) shall be eligible for apportionment
pursuant to Section  42238.5, for school districts, and
Section 2558, for county offices of education.   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  ratio 
   applicable grade span ratios  described in
subdivision (a), except that those additional units shall not be
funded pursuant to Section  42238.5 or Section 2558.
  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, then the applicable grade
span 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. 
   (d) The pupil-teacher ratio described in subdivision (a) in a
unified school district participating in the class size reduction
program pursuant to Chapter 6.10 (commencing with Section 52120) may,
at the school district's option, be calculated separately for
kindergarten and grades 1 to 6, inclusive, and for grades 7 to 12,
inclusive.  
   (e) 
    (d)  The  pupils-to-certificated-employee ratio
  applicable pupils-to-certificated-employee grade span
ratios  described in subdivision (a) may, in a charter school,
be calculated by using a fixed pupils-to-certificated-employee ratio
of 25 to  one,   1,  or by being a ratio of
less than 25 pupils per certificated employee. All charter school
pupils, regardless of age, shall be included in 
pupil-to-certificated-employee   the applicable
pupil-to-certificated-employee grade span  ratio calculations.
   SEC. 36.    Section 51747 of the   Education
Code   is amended to read: 
   51747.  A school district or county office of education shall not
be eligible to receive apportionments for independent study by
pupils, regardless of age, unless it has adopted written policies,
and has implemented those policies, pursuant to rules and regulations
adopted by the  Superintendent of Public Instruction,
  Superintendent,  that include, but are not
limited to, all of the following:
   (a) The maximum length of time, by grade level and type of
program, that may elapse between the time an independent study
assignment is made and the date by which the pupil must complete the
assigned work.
   (b) The number of missed assignments that will be allowed before
an evaluation is conducted to determine whether it is in the best
interests of the pupil to remain in independent study, or whether he
or she should return to the regular school program. A written record
of the findings of any evaluation made pursuant to this subdivision
shall be treated as a mandatory interim pupil record. The record
shall be maintained for a period of three years from the date of the
evaluation and, if the pupil transfers to another California public
school, the record shall be forwarded to that school.
   (c) A requirement that a current written agreement for each
independent study pupil shall be maintained on  file
  file,  including, but not limited to, all of the
following:
   (1) The manner, time, frequency, and place for submitting a pupil'
s assignments and for reporting his or her progress.
   (2) The objectives and methods of study for the pupil's work, and
the methods utilized to evaluate that work.
   (3) The specific resources, including materials and personnel,
that will be made available to the pupil.
   (4) A statement of the policies adopted pursuant to subdivisions
(a) and (b) regarding the maximum length of time allowed between the
assignment and the completion of a pupil's assigned work, and the
number of missed assignments allowed  prior to  
before  an evaluation of whether or not the pupil should be
allowed to continue in independent study.
   (5) The duration of the independent study agreement, including the
beginning and ending dates for the pupil's participation in
independent study under the agreement. No independent study agreement
shall be valid for any period longer than one  semester, or
one-half year for a school on a year-round calendar.  
school year. 
   (6) A statement of the number of course credits or, for the
elementary grades, other measures of academic accomplishment
appropriate to the agreement, to be earned by the pupil upon
completion.
   (7) The inclusion of a statement in each independent study
agreement that independent study is an optional educational
alternative in which no pupil may be required to participate. In the
case of a pupil who is referred or assigned to any school, class, or
program pursuant to Section 48915 or 48917, the agreement also shall
include the statement that instruction may be provided to the pupil
through independent study only if the pupil is offered the
alternative of classroom instruction.
   (8)  (A)   Each written agreement shall be
signed,  prior to   before  the
commencement of independent study, by the pupil, the pupil's parent,
legal guardian, or caregiver, if the pupil is less than 18 years of
age, the certificated employee who has been designated as having
responsibility for the general supervision of independent study, and
all persons who have direct responsibility for providing assistance
to the pupil. For purposes of this paragraph "caregiver" means a
person who has met the requirements of Part 1.5 (commencing with
Section 6550) of the Family Code. 
   (B) A signed written agreement may be maintained on file
electronically. 
   SEC. 37.    Section 51747.5 of the  
Education Code   is amended to read: 
   51747.5.  (a) The independent study by each pupil  or
student  shall be coordinated, evaluated, and,
notwithstanding subdivision (a) of Section 46300, shall be under the
general supervision of an employee of the school  district
  district, charter school,  or county office of
education who possesses a valid certification document pursuant to
Section 44865 or an emergency credential pursuant to Section 44300,
registered as required by law.
   (b) School  districts and   districts,
charter schools, and  county offices of education may claim
apportionment credit for independent study only to the extent of the
time value of pupil  or student  work products, as
personally judged in each instance by a certificated teacher. 
   (c) For purposes of this section, school districts, charter
schools, and county offices of education shall not be required to
sign and date pupil work products when assessing the time value of
pupil work products for apportionment purposes. 
   SEC. 38.    Section 51749.5 is added to the 
 Education Code   , to read:  
   51749.5.  (a) Notwithstanding any other law, and commencing with
the 2015-16 school year, a school district, charter school, or county
office of education may, for pupils enrolled in kindergarten and
grades 1 to 12, inclusive, provide independent study courses pursuant
to the following conditions:
   (1) The governing board or body of a participating school
district, charter school, or county office of education adopts
policies, at a public meeting, that comply with the requirements of
this section and any applicable regulations adopted by the state
board.
   (2) A signed learning agreement is completed and on file pursuant
to Section 51749.6.
   (3) Courses are taught under the general supervision of
certificated employees who hold the appropriate subject matter
credential pursuant to Section 44300 or 44865, or subdivision (l) of
Section 47605, meet the requirements for highly qualified teachers
pursuant to the federal No Child Left Behind Act of 2001 (20 U.S.C.
Sec. 6301 et seq.), and are employed by the school district, charter
school, or county office of education at which the pupil is enrolled,
or by a school district, charter school, or county office of
education that has a memorandum of understanding to provide the
instruction in coordination with the school district, charter school,
or county office of education at which the pupil is enrolled.
   (4) (A) Courses are annually certified, by school district,
charter school, or county office of education governing board or body
resolution, to be of the same rigor and educational quality as
equivalent classroom-based courses, and shall be aligned to all
relevant local and state content standards.
   (B) This certification shall, at a minimum, include the duration,
number of equivalent daily instructional minutes for each schoolday
that a pupil is enrolled, number of equivalent total instructional
minutes, and number of course credits for each course. This
information shall be consistent with that of equivalent
classroom-based courses.
   (5) Pupils enrolled in courses authorized by this section shall
meet the applicable age requirements established pursuant to Sections
46300.1, 46300.4, 47612, and 47612.1.
   (6) Pupils enrolled in courses authorized by this section shall
meet the applicable residency and enrollment requirements established
pursuant to Sections 46300.2, 47612, 48204, and 51747.3.
   (7) (A) Certificated employees and each pupil shall communicate
in-person, by telephone, or by any other live visual or audio
connection no less than twice per calendar month to assess whether
each pupil is making satisfactory educational progress.
   (B) For purposes of this section, satisfactory educational
progress includes, but is not limited to, applicable statewide
accountability measures and the completion of assignments,
examinations, or other indicators that evidence that the pupil is
working on assignments, learning required concepts, and progressing
toward successful completion of the course, as determined by
certificated employees providing instruction.
   (C) If satisfactory educational progress is not being made,
certificated employees providing instruction shall notify the pupil
and, if the pupil is less than 18 years of age, the pupil's parent or
legal guardian, and conduct an evaluation to determine whether it is
in the best interest of the pupil to remain in the course or whether
he or she should be referred to an alternative program, which may
include, but is not limited to, a regular school program. A written
record of the findings of an evaluation made pursuant to this
subdivision shall be treated as a mandatory interim pupil record. The
record shall be maintained for a period of three years from the date
of the evaluation and, if the pupil transfers to another California
public school, the record shall be forwarded to that school.
   (D) Written or computer-based evidence of satisfactory educational
progress, as defined in subparagraph (B), shall be retained for each
course and pupil. At a minimum, this evidence shall include a grade
book or summary document that, for each course, lists all
assignments, examinations, and associated grades.
   (8) A proctor shall administer examinations.
   (9) (A) Statewide testing results for pupils enrolled in any
course authorized pursuant to this section shall be reported and
assigned to the school or charter school at which the pupil is
enrolled, and to any school district, charter school, or county
office of education within which that school's or charter school's
testing results are aggregated.
   (B) Statewide testing results for pupils enrolled in a course or
courses pursuant to this section shall be disaggregated for purposes
of comparing the testing results of those pupils to the testing
results of pupils enrolled in classroom-based courses.
   (10) A pupil shall not be required to enroll in courses authorized
by this section.
   (11) The pupil-to-certificated-employee ratio limitations
established pursuant to Section 51745.6 are applicable to courses
authorized by this section.
   (12) For each pupil, the combined equivalent daily instructional
minutes for enrolled courses authorized by this section and enrolled
courses authorized by all other laws and regulations shall meet the
minimum instructional day requirements applicable to the local
educational agency. Pupils enrolled in courses authorized by this
section shall be offered the minimum annual total equivalent
instructional minutes pursuant to Sections 46200 to 46208, inclusive,
and Section 47612.5.
   (13) Courses required for high school graduation or for admission
to the University of California or California State University shall
not be offered exclusively through independent study.
   (14) A pupil participating in independent study shall not be
assessed a fee prohibited by Section 49011.
   (15) A pupil shall not be prohibited from participating in
independent study solely on the basis that he or she does not have
the materials, equipment, or Internet access that are necessary to
participate in the independent study course.
   (b) For purposes of computing average daily attendance for each
pupil enrolled in one or more courses authorized by this section, the
following computations shall apply:
   (1) (A) For each schoolday, add the combined equivalent daily
instructional minutes, as certified in paragraph (4) of subdivision
(a), for courses authorized by this section in which the pupil is
enrolled.

  (B) For each schoolday, add the combined daily instructional
minutes of courses authorized by all other laws and regulations in
which the pupil is enrolled and for which the pupil meets applicable
attendance requirements.
   (C) For each schoolday, add the sum of subparagraphs (A) and (B).
   (2) If subparagraph (C) of paragraph (1) meets applicable minimum
schoolday requirements for each schoolday, and all other requirements
in this section have been met, credit each schoolday that the pupil
is demonstrating satisfactory educational progress pursuant to the
requirements of this section, with up to one school day of
attendance.
   (3) (A) Using credited schoolday attendance pursuant to paragraph
(2), calculate average daily attendance pursuant to Section 41601 or
47612, whichever is applicable, for each pupil.
   (B) The average daily attendance computed pursuant to this
subdivision shall not result in more than one unit of average daily
attendance per pupil.
   (4) Notwithstanding any other law, average daily attendance
computed for pupils enrolled in courses authorized by this section
shall not be credited with average daily attendance other than what
is specified in this section.
   (c) For purposes of this section, "equivalent total instructional
minutes" means the same number of minutes as required for an
equivalent classroom-based course.
   (d) (1) The Superintendent shall conduct an evaluation of
independent study courses offered pursuant to this section and report
findings to the Legislature and the Director of Finance no later
than September 1, 2019. The report shall, at a minimum, compare the
academic performance of pupils in independent study with
demographically similar pupils enrolled in equivalent classroom-based
courses.
   (2) The requirement for submitting a report imposed under
paragraph (1) is inoperative on September 1, 2023, pursuant to
Section 10231.5 of the Government Code.
   (3) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.

   SEC. 39.    Section 51749.6 is added to the 
 Education Code   , to read:  
   51749.6.  (a) Before enrolling a pupil in a course authorized by
Section 51749.5, each school district, charter school, or county
office of education shall provide the pupil and, if the pupil is less
than 18 years of age, the pupil's parent or legal guardian, with a
written learning agreement that includes all of the following:
   (1) A summary of the policies and procedures adopted by the
governing board or body of the school district, charter school, or
county office of education pursuant to Section 51749.5, as
applicable.
   (2) The duration of the enrolled course or courses, the duration
of the learning agreement, and the number of course credits for each
enrolled course consistent with the certifications adopted by the
governing board or body of the school district, charter school, or
county office of education pursuant to Section 51749.5. The duration
of a learning agreement shall not exceed a school year or span
multiple school years.
   (3) The learning objectives and expectations for each course,
including, but not limited to, a description of how satisfactory
educational progress is measured and when a pupil evaluation is
required to determine whether the pupil should remain in the course
or be referred to an alternative program, which may include, but is
not limited to, a regular school program.
   (4) The specific resources, including materials and personnel,
that will be made available to the pupil.
   (5) A statement that the pupil is not required to enroll in
courses authorized pursuant to Section 51749.5.
   (b) (1) The learning agreement shall be signed by the pupil and,
if the pupil is less than 18 years of age, the pupil's parent or
legal guardian, and all certificated employees providing instruction
before instruction may commence.
   (2) The signed learning agreement constitutes permission from a
pupil's parent or legal guardian, if the pupil is less than 18 years
of age, for the pupil to receive instruction through independent
study.
   (3) A physical or electronic copy of the signed learning agreement
shall be retained by the school district, county office of
education, or charter school for at least three years and as
appropriate for auditing purposes.
   (4) For purposes of this section, an electronic copy includes a
computer or electronic stored image of an original document,
including, but not limited to, portable document format, JPEG, or
other digital image file type, that may be sent via fax machine,
email, or other electronic means. 
   SEC. 40.    Section 52055.770 of the  
Education Code   is amended to read: 
   52055.770.  (a) School districts and chartering authorities shall
receive funding at the following rate, on behalf of funded schools:
   (1) For kindergarten and grades 1 to 3, inclusive, five hundred
dollars ($500) per enrolled pupil in funded schools.
   (2) For grades 4 to 8, inclusive, nine hundred dollars ($900) per
enrolled pupil in funded schools.
   (3) For grades 9 to 12, inclusive, one thousand dollars ($1,000)
per enrolled pupil in funded schools.
   (b) For purposes of subdivision (a), enrollment of a pupil in a
funded school in the prior fiscal year shall be based on data from
the CBEDS. For the 2007-08 fiscal year, the funded rates shall be
reduced to reflect the percentage difference in the total amounts
appropriated for purposes of this section in that year compared to
the amounts appropriated for purposes of this section in the 2008-09
fiscal year.
   (c) The following amounts are hereby appropriated from the General
Fund for the purposes set forth in subdivision (g):
   (1) For the 2007-08 fiscal year, three hundred million dollars
($300,000,000), to be allocated as follows:
   (A) Thirty-two million dollars ($32,000,000) 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 for the purpose of providing funding to the community
colleges to improve and expand career technical education in public
secondary education and lower division public higher education
pursuant to Section 88532, including the hiring of additional faculty
to expand the number of career technical education programs and
course offerings.
   (B) Two hundred sixty-eight million dollars ($268,000,000) for
transfer by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (2) For each of the 2008-09 and 2011-12 fiscal years, four hundred
fifty million dollars ($450,000,000) per fiscal year, to be
allocated as follows:
   (A) Forty-eight million dollars ($48,000,000) 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 as required under subdivision (e) for the 2008-09 fiscal
year, and under subdivision (f) for the 2011-12 fiscal year.
   (B) Four hundred two million dollars ($402,000,000) for transfer
by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (3) For the 2009-10 fiscal year, thirty million dollars
($30,000,000), to be allocated 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 as
required under subdivision (e).
   (4) For the 2010-11 fiscal year, four hundred twenty million
dollars ($420,000,000), to be allocated as follows:
   (A) Eighteen million dollars ($18,000,000) 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 as required under subdivision (e).
   (B) Four hundred two million dollars ($402,000,000) for transfer
by the Controller to Section A of the State School Fund for
allocation by the Superintendent pursuant to this article.
   (5) For the 2014-15 fiscal year,  four hundred nine million
six hundred fourteen thousand dollars ($409,614,000), the amount
determined by the Director of Finance to be  the amount of the
difference between the sum of amounts appropriated under paragraphs
(1) to (4), inclusive, and Section 41207.6, and the total fiscal
settlement agreed to by the parties in California Teachers
Association, et al. v. Arnold Schwarzenegger (Super. Ct., Sacramento
County, 2006, No. 05CS01165), to be allocated pursuant to
subparagraphs (A)  and (B).   to (C), inclusive.
 The sum of all fiscal years of funding provided pursuant to
this section and Section 41207.6 shall not exceed the total funds
agreed to by those parties, in accordance with both of the following:

   (A)  Eleven percent   Forty-eight million
dollars ($48,000,000)  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 as required under
subdivision  (e).   (d) of Section 52055.780.

   (B)  Eighty-nine percent   (i)  
  Two hundred sixty-seven million dollars ($267,000,000)
 for transfer by the Controller to Section A of the State School
Fund for allocation by the Superintendent pursuant to this article.

   (ii) Notwithstanding any other law, funds appropriated for the
2014-15 fiscal year pursuant to clause (i) that are not allocated to
schools with kindergarten or grades 1 to 12, inclusive, due to
program termination or otherwise, shall be reallocated within the
fiscal year for purposes of this article. The amount reallocated
shall be distributed based on the proportionate share of funding each
school that was funded received pursuant to this paragraph for the
2014-15 fiscal year.  
   (C) Ninety-four million six hundred fourteen thousand dollars
($94,614,000) for transfer by the Controller to the School Facilities
Emergency Repair Account pursuant to Section 17592.71. 
   (6) Commencing with the 2010-11 fiscal year, payments made
pursuant to this subdivision shall be made only on or after October 8
of each fiscal year. 
   (d) The annual appropriation made under this section shall
continue to be made until the Director of Finance reports to the
Legislature, along with all proposed adjustments to the Governor's
Budget pursuant to Section 13308 of the Government Code, that the sum
of appropriations made and allocated pursuant to subdivision (c)
equals the total outstanding balance of the minimum state educational
funding obligation to school districts and community college
districts required by Section 8 of Article XVI of the California
Constitution and Chapter 213 of the Statutes of 2004 for the 2004-05
and 2005-06 fiscal years, as determined in subdivision (a) or (b) of
Section 41207.1.  
   (e) 
    (d)  The sum transferred under subparagraph (A) of
paragraph (2) of subdivision (c) for the 2008-09 fiscal year shall be
allocated by the Chancellor of the California Community Colleges as
follows:
   (1) Thirty-eight million dollars ($38,000,000) to the community
colleges for the purpose of providing funding to the community
colleges to improve and expand career technical education in public
secondary education and lower division public higher education
pursuant to Section 88532, including the hiring of additional faculty
to expand the number of career technical education programs and
course offerings.
   (2) Ten million dollars ($10,000,000) to the community colleges
for the purpose of providing one-time block grants to community
college districts to be used for one-time items of expenditure,
including, but not limited to, the following purposes:
   (A) Physical plant, scheduled maintenance, deferred maintenance,
and special repairs.
   (B) Instructional materials and support.
   (C) Instructional equipment, including equipment related to career
technical education, with priority for nursing program equipment.
   (D) Library materials.
   (E) Technology infrastructure.
   (F) Hazardous substances abatement, cleanup, and repair.
   (G) Architectural barrier removal.
   (H) State-mandated local programs.
   (3) The Chancellor of the California Community Colleges shall
allocate the amount allocated pursuant to paragraph (2) to community
college districts on an equal amount per actual full-time equivalent
student (FTES) reported for the prior fiscal year, except that each
community college district shall be allocated an amount not less than
fifty thousand dollars ($50,000), and the equal amount per unit of
FTES shall be computed accordingly.
   (4) Funds allocated under paragraph (2) shall supplement and not
supplant existing expenditures and may not be counted as the
community college district contribution for physical plant projects
and instructional material purchases funded in Item 6870-101-0001 of
Section 2.00 of the annual Budget Act. 
   (f) 
    (e)  For each of the 2011-12 and 2014-15 fiscal years,
the sum transferred pursuant to subparagraph (A) of paragraph (2) and
subparagraph (A) of paragraph (5) of subdivision (c) shall be
allocated by the Chancellor of the California Community Colleges to
the community colleges for the purpose of improving and expanding
career technical education in public secondary education and lower
division public higher education pursuant to Section 88532, including
the hiring of additional faculty to expand the number of career
technical education programs and course offerings. 
   (g) 
    (f)  The appropriations made under subdivision (c) and
the amount specified in Section 41207.6 are for the purpose of
discharging in full the minimum state educational funding obligation
to school districts and community college districts pursuant to
Section 8 of Article XVI of the California Constitution and Chapter
213 of the Statutes of 2004 for the 2004-05 fiscal year, and the
outstanding maintenance factor for the 2005-06 fiscal year resulting
from this additional payment of the Chapter 213 amount for the
2004-05 fiscal year. 
   (h) 
    (g)  For purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, including
computation of the state's minimum funding obligation to school
districts and community college districts in subsequent fiscal years,
the first one billion six hundred twenty million nine hundred
twenty-eight thousand dollars ($1,620,928,000) in appropriations made
pursuant to subdivision (c) and the amount specified in Section
41207.6 shall be deemed to be "General Fund revenues appropriated for
school districts," as defined in subdivision (c) of Section 41202
and "General Fund Revenues appropriated for community college
districts," as defined in subdivision (d) of Section 41202, for the
2004-05 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, for that fiscal year.
The remaining appropriations made pursuant to subdivision (c) and the
amount specified in Section 41207.6 shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202, and "General Fund revenues
appropriated for community college districts," as defined in
subdivision (d) of Section 41202, for the 2005-06 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, for that fiscal year. 
   (i) 
    (h)  From funds appropriated under subdivision (c), the
Superintendent shall provide both of the following:
   (1) Not more than two million dollars ($2,000,000) annually to
county superintendents of schools to carry out the requirements of
this article, allocated in a manner similar to that created to carry
out the new duties of those superintendents under the settlement
agreement in the case of Williams v. California (Super. Ct. San
Francisco, No. CGC-00-312236).
   (2) Five million dollars ($5,000,000) in the 2007-08 fiscal year
to support regional assistance under Section 52055.730. It is the
intent of the Legislature that the Superintendent and the president
of the state board or his or her designee, along with county offices
of education, seek foundational and other financial support to
sustain and expand these services. Funds provided under this
paragraph that are not expended in the 2007-08 fiscal year shall be
reappropriated for use in subsequent fiscal years for the same
purpose. 
   (j) 
    (i)  Notwithstanding any other law, funds appropriated
under subdivision (c) but not allocated to schools with kindergarten
or grades 1 to 12, inclusive, in a fiscal year, due to program
termination in any year or otherwise, shall be reappropriated in
furtherance of the purposes of this article. First priority for those
amounts shall be to provide cost-of-living increases and enrollment
growth adjustments to funded schools. 
   (k) 
    (j)  The sum of three hundred fifty thousand dollars
($350,000) is hereby appropriated from the General Fund to the
department to fund 3.0 positions to implement this article. Funding
provided under this subdivision is not part of funds provided
pursuant to subdivision (c).
   SEC. 41.    Chapter 16 (commencing with Section
53010) is added to Part 28 of Division 4 of Title 2 of the  
Education Code   , to read:  
      CHAPTER 16.  CALIFORNIA CAREER PATHWAYS TRUST


   53010.  The California Career Pathways Trust is hereby established
as a state education and economic and workforce development
initiative with the goal of preparing pupils in kindergarten and
grades 1 to 12, inclusive, to successfully transition to
postsecondary education and training and to employment in high-skill,
high-wage, and high-growth or emerging sectors of the state's
economy.
   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. 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.
   53012.  A grant recipient under this chapter may be a school
district, a county office of education, a direct-funded charter
school, or a community college district.
   53013.  The following are conditions of receipt of California
Career Pathways Trust funds:
   (a) A grant recipient shall not use the funds to supplant other
funding from state, federal, or any other public or private sources
that would otherwise be used in the absence of funding provided by a
California Career Pathways Trust grant.
   (b) A grant recipient shall identify and set aside funding within
its own budget and obtain funding commitments from program partners
sufficient to support the ongoing costs of the program for multiple
years following the expiration of grant funding pursuant to this
chapter.
   (c) A grant recipient subject to the requirements of Sections
52060 and 52061, Sections 52066 and 52067, or Section 47606.5 shall
ensure that the activities supported by the California Career
Pathways Trust funds are in alignment with the priorities and
activities of the grant recipient's local control and accountability
plan.
   (d) A grant recipient subject to the requirements of subdivision
(c) of Section 52302 shall ensure that the activities supported by
the California Career Pathways Trust funds are in alignment with the
elements of the plan identified in that section.
   (e) A grant recipient shall annually collect and submit data on
outcome measures to the department, which shall include, but are not
limited to, all of the following:
   (1) Pupil and student academic performance indicators.
   (2) The number and rate of school or program graduates.
   (3) Attainment of certificates, transfer readiness, and
postsecondary enrollment.
   (4) Transitions to appropriate employment, apprenticeships, or job
training.
   53014.  The Superintendent shall consult with 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.
   53015.  For purposes of administering the California Career
Pathways Trust, the Superintendent may do any of the following:
   (a) Establish a structure for awarding grants on a regional or
local basis as defined by the Superintendent.
   (b) Determine specific funding amount categories and the number of
grants to be awarded in each category.
   (c) Distribute funding on a multiyear schedule, and 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
award condition.
   (d) Require grant recipients to submit program reports pursuant to
a schedule determined by the Superintendent.
   (e) Set aside up to 1 percent of the total amount provided for in
the trust 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.
   53016.  For purposes of considering competitive priorities for the
California Career Pathways Trust, the Superintendent shall do all of
the following:
   (a) Consider how to prioritize grants to applicants in regions
with higher-than-state-average rates of high school dropouts as
measured by the California Longitudinal Pupil Achievement Data
System.
   (b) Provide special consideration to an applicant or applicants
seeking to establish or strengthen legal career pathways and promote
a better understanding of the role and operations of state and
federal courts and their relationship to the other branches of
government.
   (c) Provide special consideration to an applicant or applicants
seeking to establish or strengthen career pathways that include both
high school opportunities and at least one of the following
significant postsecondary pathways: a degree pursuant to Section
78041, if that section is added by Senate Bill 850 of the 2013-14
Regular Session of the Legislature, or an EdPrize apprenticeship
opportunity pursuant to Section 33135.5, if that section is added by
Senate Bill 923 of the 2013-14 Regular Session of the Legislature.

   SEC. 42.    Section 56836.06 of the  
Education Code   is amended to read: 
   56836.06.  For  the  purposes of this article,
the following terms or phrases  shall  have the
following meanings, unless the context clearly requires otherwise:
                                                                  (a)
"Average daily attendance reported for the special education local
plan area" means the total of the following:
   (1) The total number of units of average daily attendance reported
for the second principal apportionment pursuant to Section 41601 for
all pupils enrolled in the district or districts that are a part of
the special education local plan area.
   (2) The total number of units of average daily attendance reported
pursuant to subdivisions (a) and (b) of Section 41601 for all pupils
enrolled in schools operated by the county office or offices that
compose the special education local plan area, or for those county
offices that are a part of more than one special education local plan
area, that portion of the average daily attendance of pupils
enrolled in the schools operated by the county office that are under
the jurisdiction of the special education local plan area.
   (b) For  the  purposes of computing
apportionments pursuant to this chapter for the special education
local plan area identified as the Los Angeles County Juvenile Court
and Community School/Division of Alternative Education Special
Education Local Plan Area, the term "average daily attendance"
 shall mean   means  the total number of
units of average daily attendance reported for the second principal
apportionment pursuant to subdivisions (a) and (b) of Section 41601
for all pupils enrolled in districts within Los Angeles County and
all schools operated by the Los Angeles County Office of Education
and the districts within Los Angeles County.
   (c) "Special education local plan area" includes the school
district or districts and county office or offices of education
composing the special education local plan area.
   (d) "The fiscal year in which equalization among special education
local plan areas has been achieved" means the first fiscal year in
which each special education local plan area is funded at or above
the statewide target amount per unit of average daily attendance, as
computed pursuant to Section 56836.11.
   (e) For a charter school deemed a local educational agency for
 the  purposes of special education, an amount equal
to the amount computed pursuant to Section 56836.08 for the special
education local plan area in which the charter school is included
shall be apportioned by the  State Department of Education
  department  pursuant to the local allocation plan
developed pursuant to subdivision (i) of Section 56195.7 or
56836.05, or both. If the charter school is a participant in a local
plan  which   that  only includes other
charter schools pursuant to subdivision (f) of Section 56195.1, the
amount computed pursuant to Section  56836.11, as adjusted
for any amount for which the special education local plan area is
eligible pursuant to the incidence multiplier set forth in Section
56836.155,   56836.11  shall be apportioned by the
department pursuant for each unit of average daily attendance
reported pursuant to subdivision (a).
   SEC. 43.    Section 56836.07 of the  
Education Code   is amended to read: 
   56836.07.  For the  2004-05   2004-05 
fiscal year and each fiscal year  thereafter for which
  thereafter, to the extent  there is an
appropriation in the annual Budget Act for  this purpose,
  purposes of educationally related mental health
services,  the Superintendent shall allocate funds per unit of
average daily attendance, as defined in Section 56836.06, reported
for the special education local plan  area to a special
education local plan area for the purposes of Section 56331.
  area.  For the  2004-05  
2004-05  fiscal year and each fiscal year thereafter for which
there is an appropriation in the annual Budget Act for this purpose,
the Superintendent shall determine a proportionate share, consistent
with existing law, to the Los Angeles County Juvenile Court and
Community School/Division of Alternative Education Special Education
Local Plan Area based on the ratio of the amount per unit of average
daily attendance determined pursuant to Section 56836.10 to the
amount of the statewide target per unit of average daily attendance
determined pursuant to Section 56836.11.
   SEC. 44.    Section 56836.08 of the  
Education Code   is amended to read: 
   56836.08.  (a) For the 1998-99 fiscal year, the Superintendent
shall make the following computations to determine the amount of
funding for each special education local plan area:
   (1) Add the amount of funding per unit of average daily attendance
computed for the special education local plan area pursuant to
paragraph (1) of subdivision (a) of Section 56836.10 to the inflation
adjustment computed pursuant to subdivision (d) for the 1998-99
fiscal year.
   (2) Multiply the amount computed in paragraph (1) by the units of
average daily attendance reported for the special education local
plan area for the 1997-98 fiscal year, exclusive of average daily
attendance for absences excused pursuant to subdivision (b) of
Section 46010, as that subdivision read on July 1, 1996.
   (3) Add the actual amount of the equalization adjustment, if any,
computed for the 1998-99 fiscal year pursuant to Section 56836.14 to
the amount computed in paragraph (2).
   (4) Add or subtract, as appropriate, the adjustment for growth
computed pursuant to Section 56836.15 from the amount computed in
paragraph (3).
   (b) For the 1999-2000 fiscal year and each fiscal year thereafter,
the Superintendent shall make the following computations to
determine the amount of funding for each special education local plan
area for the fiscal year in which the computation is made:
   (1) Add the amount of funding per unit of average daily attendance
computed for the special education local plan area for the prior
fiscal year pursuant to Section 56836.10 to the inflation adjustment
computed pursuant to subdivision (d) through the 2012-13 fiscal year,
and for the 2013-14 fiscal year and each fiscal year thereafter, the
inflation adjustment computed pursuant to subdivision (g), for the
fiscal year in which the computation is made.
   (2) Multiply the amount computed in paragraph (1) by the units of
average daily attendance reported for the special education local
plan area for the prior fiscal year.
   (3) Add or subtract, as appropriate, the adjustment for growth or
decline in enrollment, if any, computed for the special education
local plan area for the fiscal year in which the computation is made
pursuant to Section 56836.15 from the amount computed in paragraph
(2).
   (c) For the 1998-99 fiscal year to the 2012-13 fiscal year,
inclusive, the Superintendent shall make the following computations
to determine the amount of General Fund moneys that the special
education local plan area may claim:
   (1) Add the total of the amount of property taxes for the special
education local plan area pursuant to Section 2572 for the fiscal
year in which the computation is made to the amount of federal funds
allocated for the purposes of paragraph (1) of subdivision (a) of
Section 56836.09 for the fiscal year in which the computation is
made.
   (2) Add the amount of funding computed for the special education
local plan area pursuant to subdivision (a) for the 1998-99 fiscal
year, and commencing with the 1999-2000 fiscal year to the 2012-13
fiscal year, inclusive, the amount computed for the fiscal year in
which the computations were made pursuant to subdivision (b) to the
amount of funding computed for the special education local plan area
pursuant to Article 3 (commencing with Section 56836.16).
   (3) Subtract the sum computed in paragraph (1) from the sum
computed in paragraph (2).
   (d) For the 1998-99 fiscal year to the 2012-13 fiscal year,
inclusive, the Superintendent shall make the following computations
to determine the inflation adjustment for the fiscal year in which
the computation is made:
   (1) For the 1998-99 fiscal year, multiply the sum of the statewide
target amount per unit of average daily attendance for special
education local plan areas for the 1997-98 fiscal year computed
pursuant to paragraph (3) of subdivision (a) of Section 56836.11
 and the amount determined pursuant to paragraph (e) of
Section 56836.155 for the 1997-98 fiscal year that corresponds to the
amount determined pursuant to paragraph (1) of subdivision (d) of
Section 56836.155  by the inflation adjustment computed
pursuant to Section 42238.1 for the 1998-99 fiscal year.
   (2) For the 1999-2000 fiscal year to the 2012-13 fiscal year,
inclusive, multiply the sum of the statewide target amount per unit
of average daily attendance for special education local plan areas
for the prior fiscal year computed pursuant to Section 56836.11
 and the amount determined pursuant to paragraph (1) of
subdivision (d) of Section 56836.155  for the prior fiscal
year by the inflation adjustment computed pursuant to Section 42238.1
for the fiscal year in which the computation is made.
   (3) For purposes of computing the inflation adjustment for the
special education local plan area identified as the Los Angeles
County Juvenile Court and Community School/Division of Alternative
Education Special Education Local Plan Area for the 1998-99 fiscal
year to the 2012-13 fiscal year, inclusive, the Superintendent shall
multiply the amount of funding per unit of average daily attendance
computed for that special education local plan area for the prior
fiscal year pursuant to Section 56836.10 by the inflation adjustment
computed pursuant to Section 42238.1 for the fiscal year in which the
computation is being made. 
   (e) For the 1998-99 fiscal year and each fiscal year thereafter to
and including the 2002-03 fiscal year, the Superintendent shall
perform the calculation set forth in Section 56836.155 to determine
the adjusted entitlement for the incidence of disabilities for each
special education local plan area, but this amount shall not be used
in the next fiscal year to determine the base amount of funding for
each special education local plan area for the current fiscal year,
except as specified in this article.  
   (f) 
    (e)  Notwithstanding any other law, for the 2013-14
fiscal year and each fiscal year thereafter, the Superintendent shall
make the following computations to determine the amount of General
Fund moneys that the special education local plan area may claim:
   (1) Determine the total amount of property taxes for the special
education local plan area pursuant to Section 2572 for the fiscal
year in which the computation is made.
   (2) Calculate the amount of funding computed for the special
education local plan area pursuant to subdivision (b) for the fiscal
year in which the computation is made.
   (3) Subtract the amount computed in paragraph (1) from the amount
computed in paragraph (2). 
   (g) 
    (f)  For the 2013-14 fiscal year and each fiscal year
thereafter, the Superintendent shall make the following computations
to determine the inflation adjustment for the fiscal year in which
the computation is made:
   (1) Multiply the statewide target amount per unit of average daily
attendance for special education local plan areas for the prior
fiscal year computed pursuant to Section 56836.11 by the inflation
factor computed pursuant to Section 42238.1, as that section read on
January 1, 2013, or any successor section of law enacted by the
Legislature that specifies the inflation factor contained in Section
42238.1, as that section read on January 1, 2013, for application to
the 2013-14 fiscal year and each fiscal year thereafter.
   (2) For purposes of computing the inflation adjustment for the
special education local plan area identified as the Los Angeles
County Juvenile Court and Community School/Division of Alternative
Education Special Education Local Plan Area, the Superintendent shall
multiply the amount of funding per unit of average daily attendance
computed for that special education local plan area for the prior
fiscal year pursuant to Section 56836.10 by the inflation factor
computed pursuant to Section 42238.1, as that section read on January
1, 2013, or any successor section of law enacted by the Legislature
that specifies the inflation factor contained in Section 42238.1, as
that section read on January 1, 2013, for application to the 2013-14
fiscal year and each fiscal year thereafter.
   SEC. 45.    Section 56836.095 of the 
Education Code   is amended to read: 
   56836.095.  For the 2001-02 fiscal year, the 
superintendent   Superintendent  shall make the
following computations in the following order: 
   (a) Calculate and carry out the equalization adjustments
authorized pursuant to Sections 56836.12 and 56836.14. 

   (b) 
    (a)  Complete the calculations required to adjust the
statewide total average daily attendance pursuant to Section
56836.156, and adjust the statewide target per unit of average daily
attendance for the 2001-02 fiscal year in accordance with this
calculation. 
   (c) Determine and provide the amount of funding required for the
special disabilities adjustment pursuant to Section 56836.155.
 
   (d) 
    (b)  Compute and distribute the amount of funding
appropriated for increasing the statewide target amount per unit of
average daily attendance pursuant to Section 56836.158. 
   (e) 
    (c)  Compute and provide a permanent adjustment for each
special education local plan area pursuant to Section 56836.159.
   SEC. 46.    Section 56836.11 of the  
Education Code   is amended to read: 
   56836.11.  (a) For the purpose of computing the equalization
adjustment for special education local plan areas for the 1998-99
fiscal year, the Superintendent shall make the following computations
to determine the statewide target amount per unit of average daily
attendance for special education local plan areas:
   (1) Total the amount of funding computed for each special
education local plan area exclusive of the amount of funding computed
for the special education local plan area identified as the Los
Angeles County Juvenile Court and Community School/Division of
Alternative Education Special Education Local Plan Area, pursuant to
Section 56836.09 for the 1997-98 fiscal year.
   (2) Total the number of units of average daily attendance reported
for each special education local plan area for the 1997-98 fiscal
year, exclusive of average daily attendance for absences excused
pursuant to subdivision (b) of Section 46010 as that section read on
July 1, 1996, and exclusive of the units of average daily attendance
computed for the special education local plan area identified as the
Los Angeles County Juvenile Court and Community School/Division of
Alternative Education Special Education Local Plan Area.
   (3) Divide the sum computed in paragraph (1) by the sum computed
in paragraph (2) to determine the statewide target amount for the
1997-98 fiscal year.
   (4) Add the amount computed in paragraph (3) to the inflation
adjustment computed pursuant to subdivision (d) of Section 56836.08
for the 1998-99 fiscal year to determine the statewide target amount
for the 1998-99 fiscal year.
   (b) Commencing with the 1999-2000 fiscal year to the 2004-05
fiscal year, inclusive, to determine the statewide target amount per
unit of average daily attendance for special education local plan
areas, the Superintendent shall multiply the statewide target amount
per unit of average daily attendance computed for the prior fiscal
year pursuant to this section by one plus the inflation factor
computed pursuant to subdivision (b) of Section 42238.1 for the
fiscal year in which the computation is made. 
   (c) Commencing with the 2005-06 fiscal year and ending with the
2010-11 fiscal year, to determine the statewide target amount per
unit of average daily attendance for special education local plan
areas for the purpose of computing the incidence multiplier pursuant
to former Section 56836.155, the Superintendent shall add the
statewide target amount per unit of average daily attendance computed
for the prior fiscal year for this purpose to the amount computed in
paragraph (2) of subdivision (d) or paragraph (2) of subdivision
(e), as appropriate.  
   (d) 
    (c)  For the 2005-06 fiscal year, the Superintendent
shall make the following computation to determine the statewide
target amount per unit of average daily attendance to determine the
inflation adjustment pursuant to paragraph (2) of subdivision (d) of
Section 56836.08 and growth pursuant to subdivision (c) of Section
56836.15, as follows:
   (1) The 2004-05 fiscal year statewide target amount per unit of
average daily attendance less the sum of the 2004-05 fiscal year
total amount of federal funds apportioned pursuant to Schedule (1) in
Item 6110-161-0890 of Section 2.00 of the Budget Act of 2004 for
purposes of special education for individuals with exceptional needs
enrolled in kindergarten and grades 1 to 12, inclusive, divided by
the total average daily attendance computed for the 2004-05 fiscal
year.
   (2) Multiply the amount computed in paragraph (1) by the inflation
factor computed pursuant to subdivision (b) of Section 42238.1 for
the fiscal year in which the computation is made.
   (3) Add the amounts computed in paragraphs (1) and (2). 
   (e) 
    (d)  Commencing with the 2006-07 fiscal year and
continuing through the 2012-13 fiscal year, inclusive, the
Superintendent shall make the following computation to determine the
statewide target amount per unit of average daily attendance for
special education local plan areas for the purpose of computing the
inflation adjustment pursuant to paragraph (2) of subdivision (d) of
Section 56836.08 and growth pursuant to subdivision (c) of Section
56836.15:
   (1) The statewide target amount per unit of average daily
attendance computed for the prior fiscal year pursuant to this
section.
   (2) Multiply the amount computed in paragraph (1) by the inflation
factor computed pursuant to subdivision (b) of Section 42238.1 for
the fiscal year in which the computation is made.
   (3) Add the amounts computed in paragraphs (1) and (2). 
   (f) 
    (e)  For the 2013-14 fiscal year, the Superintendent
shall make the following computations to determine the statewide
target amount per unit of average daily attendance to determine the
inflation adjustment pursuant to subdivision  (g) 
 (f)  of Section 56836.08 and growth pursuant to subdivision
(c) of Section 56836.15, as follows:
   (1) Total the amount of funding computed for each special
education local plan area pursuant to the amount computed in
subdivision (b) of Section 56836.08, including the amount of funds
appropriated pursuant to Provision 22 of Item 6110-161-0001 of
Section 2.00 of the Budget Act of 2013, and excluding the amount of
funding computed for the special education local plan area identified
as the Los Angeles County Juvenile Court and Community
School/Division of Alternative Education Special Education Local Plan
Area, for the 2013-14 fiscal year.
   (2) Total the number of units of average daily attendance reported
for each special education local plan area for the 2012-13 fiscal
year, exclusive of the units of average daily attendance computed for
the special education local plan area identified as the Los Angeles
County Juvenile Court and Community School/Division of Alternative
Education Special Education Local Plan Area.
   (3) Divide the sum computed in paragraph (1) by the sum computed
in paragraph (2). 
   (g) 
    (f)  Commencing with the 2014-15 fiscal year and
continuing each fiscal year thereafter, the Superintendent shall make
the following computations to determine the statewide target amount
per unit of average daily attendance for special education local plan
areas for the purpose of computing the inflation adjustment pursuant
to subdivision  (g)   (f)  of Section
56836.08 and growth pursuant to subdivision (c) of Section 56836.15:
   (1) The statewide target amount per unit of average daily
attendance computed for the prior fiscal year pursuant to this
section.
   (2) Multiply the amount computed in paragraph (1) by the inflation
factor computed pursuant to Section 42238.1, as that section read on
January 1, 2013, or any successor section of law enacted by the
Legislature that specifies the inflation factor contained in Section
42238.1, as that section read on January 1, 2013, for application to
the 2014-15 fiscal year and each fiscal year thereafter.
   (3) Add the amounts computed in paragraphs (1) and (2).
   SEC. 47.    Section 56836.15 of the  
Education Code   is amended to read: 
   56836.15.  (a) In order to mitigate the effects of any declining
enrollment, commencing in the 1998-99 fiscal year, and each fiscal
year thereafter, the Superintendent shall calculate allocations to
special education local plan areas based on the average daily
attendance reported for the special education local plan area for the
fiscal year in which the computation is made or the prior fiscal
year, whichever is greater. However, the prior fiscal year average
daily attendance reported for the special education local plan area
shall be adjusted for any loss or gain of average daily attendance
reported for the special education local plan area due to a
reorganization or transfer of territory in the special education
local plan area.
   (b) For the 1998-99 fiscal year only, the prior year average daily
attendance used in this section shall be the 1997-98 average daily
attendance reported for the special education local plan area,
exclusive of average daily attendance for absences excused pursuant
to subdivision (b) of Section 46010, as that section read on July 1,
1996.
   (c) If in the fiscal year for which the computation is made, the
number of units of average daily attendance upon which allocations to
the special education local plan area are based is greater than the
number of units of average daily attendance upon which allocations to
the special education local plan area were based in the prior fiscal
year, the special education local plan area shall be allocated a
growth adjustment equal to the product determined by multiplying the
amounts determined under paragraphs (1) and (2).
   (1) The statewide target amount per unit of average daily
attendance for special education local plan areas determined pursuant
to Section  56836.11, added to the amount determined in
paragraph (1) of subdivision (d) of Section 56836.155.  
56836.11. 
   (2) The difference between the number of units of average daily
attendance upon which allocations to the special education local plan
area are based for the fiscal year in which the computation is made
and the number of units of average daily attendance upon which
allocations to the special education local plan area were based for
the prior fiscal year.
   (d) If in the fiscal year for which the computation is made, the
number of units of average daily attendance upon which allocations to
the special education local plan area are based is less than the
number of units of average daily attendance upon which allocations to
the special education local plan area were based in the prior fiscal
year, the special education local plan area shall receive a funding
reduction equal to the product determined by multiplying the amounts
determined under paragraphs (1) and (2):
   (1) The amount of funding per unit of average daily attendance
computed for the special education local plan area for the prior
fiscal year. For the 2013-14 fiscal year only, the amount of funding
per unit of average daily attendance computed for the special
education local plan area for the 2013-14 fiscal year shall be used
for this purpose.
   (2) The difference between the number of units of average daily
attendance upon which allocations to the special education local plan
area are based for the fiscal year in which the computation is made
and the number of units of average daily attendance upon which
allocations to the special education local plan area were based for
the prior fiscal year.
   (e) If, in the fiscal year for which the computation is made, the
number of units of average daily attendance upon which the
allocations to the special education local plan area identified as
the Los Angeles County Juvenile Court and Community School/Division
of Alternative Education Special Education Local Plan Area are based
is greater than the number of units of average daily attendance upon
which the allocations to that special education local plan area were
based in the prior fiscal year, that special education local plan
area shall be allocated a growth adjustment equal to the product
determined by multiplying the amounts determined under paragraphs (1)
and (2).
   (1) The amount of funding per unit of average daily attendance
computed for the special education local plan area for the prior
fiscal year pursuant to Section 56836.10 multiplied by one plus the
inflation factor computed pursuant to Section 42238.1, as that
section read on January 1, 2013, or any successor section of law
enacted by the Legislature that specifies the inflation factor
contained in Section 42238.1, as that section read on January 1,
2013. For the 2013-14 fiscal year only, the amount of funding per
unit of average daily attendance computed for the special education
local plan area for the 2013-14 fiscal year shall be used, and
multiplied by one plus the inflation factor computed pursuant to
Section 42238.1, as that section read on January 1, 2013, or any
successor section of law enacted by the Legislature that specifies
the inflation factor contained in Section 42238.1, as that section
read on January 1, 2013, for application to the 2013-14 fiscal year
and each fiscal year thereafter.
   (2) The difference between the number of units of average daily
attendance upon which allocations to the special education local plan
area are based for the fiscal year in which the computation is made
and the number of units of average daily attendance upon which
allocations to the special education local plan area were based for
the prior fiscal year.
   SEC. 48.    The heading of Article 4 (commencing with
Section 60640) of Chapter 5 of Part 33 of Division 4 of Title 2 of
the   Education Code   is amended to read: 

      Article 4.   Measurement of Academic Performance and
Progress   California Assessment of Student Performance
and Progress 


   SEC. 49.    Section 60640 of the   Education
Code   is amended to read: 
   60640.  (a) There is hereby established the  Measurement
of Academic Performance and Progress,   California
Assessment of Student Performance and Progress,  to be known as
the  MAPP.   CAASPP. 
   (b) Commencing with the 2013-14 school year, the  MAPP
  CAASPP  shall be composed of all of the
following:
   (1) (A) A consortium summative assessment in English language arts
and mathematics for grades 3 to 8, inclusive, and grade 11 that
measures content standards adopted by the state board.
   (B) In the 2013-14 school year, the consortium summative
assessment in English language arts and mathematics shall be a field
test only, to enable the consortium to gauge the validity and
reliability of these assessments and to conduct all necessary
psychometric procedures and studies, including, but not necessarily
limited to, achievement standard setting, and to allow the department
to conduct studies regarding full implementation of the assessment
system. These field tests and results shall not be used for any other
purpose, including the calculation of any accountability measure.
   (2) (A) Science grade level assessments in grades 5, 8, and 10
that measure content standards  adopted  pursuant to Section
60605, until a successor assessment is implemented pursuant to
subparagraph (B).
   (B) For science assessments, the Superintendent shall make a
recommendation to the state board as soon as is feasible after the
adoption of science content standards pursuant to Section 60605.85
regarding the assessment of the newly adopted standards. Before
making recommendations, the Superintendent shall consult with
stakeholders, including, but not necessarily limited to, California
science teachers, individuals with expertise in assessing English
learners and pupils with disabilities, parents, and measurement
experts, regarding the grade level and type of assessment. The
recommendations shall include cost estimates and a plan for
implementation of at least one assessment in each of the following
grade spans:
   (i) Grades 3 to 5, inclusive.
   (ii) Grades 6 to 9, inclusive.
   (iii) Grades 10 to 12, inclusive.
   (3) The California Alternate Performance Assessment in grades 2 to
11, inclusive, in English language arts and mathematics and science
in grades 5, 8, and 10, which measures content standards adopted
pursuant to Section 60605 until a successor assessment is
implemented. The successor assessment shall be limited to the grades
and subject areas assessed pursuant to paragraph (1) and subparagraph
(B) of paragraph (2).
   (4) The Early Assessment Program established by Chapter 6
(commencing with Section 99300) of Part 65 of Division 14 of Title 3.

   (5) (A)  The department shall make available to 
 A  local educational agencies   agency
may administer  a primary language assessment aligned to the
English language arts standards adopted pursuant to Section 60605, as
it read on January 1, 2013,  for assessing   to
 pupils who are  enrolled in a dual language immersion
program that includes the primary language of the assessment and who
are either nonlimited English proficient or redesignated fluent
English proficient. The cost for the assessment shall be the same for
all local educational agencies, and shall not exceed the marginal
cost of the assessment, including any cost the department incurs to
implement this section.   identified as limited English
proficient and enrolled in any of grades 2 to 11, inclusive, until a
subsequent primary language assessment aligned to the common core
standards in English language arts adopted pursuant to Section
60605.8 is developed pursuant to subparagraph (E). 
   (B)  A local educational agency may administer a primary
language assessment aligned to the English language arts standards
adopted pursuant to Section 60605, as it read on January 1, 2013, at
its own expense, and shall enter into an agreement for that purpose
with the testing contractor.  If  the  
a  local educational agency chooses to administer a primary
language assessment  to pupils identified as limited English
proficient and enrolled in any of grades 2 to 11, inclusive, 
pursuant to  this paragraph,   subparagraph (A),
it shall notify  the department  in a manner to be
determined by the department and the costs shall be paid b  
y the state and included as part of the testing contract, and the
department  shall  reimburse   provide
 the local educational agency  for its costs, including
 a per pupil apportionment  to administer 
 for administering  the assessment pursuant to subdivision
(l).  The department shall determine the procedures for
reimbursement. 
   (C) The Superintendent shall consult with stakeholders, including
assessment and English learner experts, to determine the content and
purpose of a stand-alone language arts summative assessment in
primary languages other than English that aligns with the 
English-language   English language  arts content
standards. The Superintendent shall consider the appropriate purpose
for this assessment, including, but not necessarily limited to,
support for the State Seal of Biliteracy and accountability. It is
the intent of the Legislature that an assessment developed pursuant
to this section be included in the state accountability system.
   (D) The Superintendent shall report and make recommendations to
the state board at a regularly scheduled public meeting no sooner
than one year after the first full administration of the consortium
computer-adaptive assessments in English language arts and
mathematics summative assessments in grades 3 to 8, inclusive, and
grade 11, regarding an implementation timeline and estimated costs of
a stand-alone language arts summative assessment in primary
languages other than English.
   (E) The Superintendent shall develop, and the state board shall
adopt, a primary language assessment. The Superintendent shall
administer this assessment no later than the 2016-17 school year.
   (F) This paragraph shall be operative only to the extent that
funding is provided in the annual Budget Act or another statute for
the purpose of this section.
   (c) No later than March 1, 2016, the Superintendent shall submit
to the state board recommendations on expanding the  MAPP
  CAASPP  to include additional assessments, for
consideration at a regularly scheduled public meeting. The
Superintendent shall also submit these recommendations to the
appropriate policy and fiscal committees of the Legislature and to
the Director of Finance in accordance with all of the following:
   (1) In consultation with stakeholders, including, but not
necessarily limited to, California teachers, individuals with
expertise in assessing English learners and pupils with disabilities,
parents, and measurement experts, the Superintendent shall make
recommendations regarding assessments including the grade level,
content, and type of assessment. These recommendations shall take
into consideration the assessments already administered or planned
pursuant to subdivision (b). The Superintendent shall consider the
use of consortium-developed assessments, various item types,
computer-based testing, and a timeline for implementation.
   (2) The recommendations shall consider assessments in subjects,
including, but not necessarily limited to, history-social science,
technology, visual and performing arts, and other subjects as
appropriate, as well as English language arts, mathematics, and
science assessments to augment the assessments required under
subdivision (b), and the use of various assessment options,
including, but not necessarily limited to, computer-based tests,
locally scored performance tasks, and portfolios.
   (3) The recommendations shall include the use of an assessment
calendar that would schedule the assessments identified pursuant to
paragraph (2) over several years, the use of matrix sampling, if
appropriate, and the use of population sampling.
   (4) The recommendations shall include a timeline for test
development, and shall include cost estimates for subject areas, as
appropriate.
   (5) Upon approval by the state board and the appropriation of
funding for this purpose, the Superintendent shall develop and
administer approved assessments. The state board shall approve test
blueprints, achievement level descriptors, testing periods,
performance standards, and a reporting plan for each approved
assessment.
   (d) For the 2013-14 and 2014-15 school years, the department shall
make available to local educational agencies Standardized Testing
and Reporting Program test forms no longer required by the 
MAPP.   CAASPP.  The cost of implementing this
subdivision, including, but not necessarily limited to, shipping,
printing, scoring, and reporting per pupil shall be the same for all
local educational agencies, and shall not exceed the marginal cost of
the assessment, including any cost the department incurs to
implement this section. A local educational agency that chooses to
administer an assessment pursuant to this  section 
 subdivision  shall do so at its own expense, and shall
enter into an agreement for that purpose with a contractor, subject
to the approval of the department.
   (e) The Superintendent shall make available a paper and pencil
version of any computer-based  MAPP   CAASPP
 assessment for use by pupils who are unable to access the
computer-based version of the assessment for a maximum of three years
after a new operational test is first administered.
   (f) (1) From the funds available for that purpose, each local
educational agency shall administer assessments to each of its pupils
pursuant to subdivision (b). As allowable by federal statute,
recently arrived English learner pupils are exempted from taking the
assessment in English language arts. The state board shall establish
a testing period to provide that all schools administer these tests
to pupils at approximately the same time during the instructional
year. The testing period established by the state board shall take
into consideration the need of local educational agencies to provide
makeup days for pupils who were absent during testing, as well as the
need to schedule testing on electronic computing devices.
   (2) For the 2013-14 school year, each local educational agency
shall administer the field tests in a manner described by the
department in consultation with the president or executive director
of the state board. Additional participants in the field test beyond
the representative sample may be approved by the department, and the
department shall use existing contract savings to fund 
district   local educational agency  participation
in one or more tests per participant. Funds for this purpose shall be
 utilized   used  to allow for maximum
participation in the field  test   tests 
across the state. To the extent savings in the current contract are
not available to fully fund this participation, the department shall
prorate available funds by test. Local educational agencies shall
bear any additional costs to administer these assessments that are in
excess of the contracted amount. With approval of the state board
and the Director of Finance, the department shall amend the existing
assessment contract to accommodate field testing beyond the
representative sample, and to allow for special studies using
information collected from the field tests.
   (g) From the funds available for that purpose, each local
educational agency shall administer assessments as determined by the
state board pursuant to paragraph (5) of subdivision (c).
   (h) As feasible, the  MAPP   CAASPP 
field tests shall be conducted in a manner that will minimize the
testing burden on individual schools. The  MAPP 
 CAASPP  field tests shall not produce individual pupil
scores unless it is determined that these scores are valid and
reliable.
   (i) The governing board of a school district may administer
achievement tests in grades other than those required by this section
as it deems appropriate. 
   (j) The governing board of a school district may administer a
primary language assessment aligned to the English language arts
standards adopted pursuant to Section 60605 to a pupil identified as
limited English proficient enrolled in any of grades 2 to 11,
inclusive, who either receives instruction in his or her primary
language or has been enrolled in a school in the United States for
less than 12 months 
    (j)     Subject to the approval of the
state board, the department may make available to local educational
agencies a primary language assessment aligned to the English
language arts standards adopted pursuant to Section 60605, as it read
on January 1, 2013, for assessing pupils who are enrolled in a dual
language immersion program that includes the primary language of the
assessment and who are either nonlimited English proficient or
redesignated fluent English proficient  until a subsequent
primary language assessment aligned to the common core standards in
English language arts adopted pursuant to Section 60605.8 is
developed pursuant to paragraph (5) of subdivision (b).  If
the governing board of a school district chooses to administer this
assessment, it shall notify the department in a manner determined by
the department.  The cost for the assessment shall be
the same for all local educational agencies and shall not exceed the
marginal cost of the assessment, including any cost the department
incurs to implement this section. A local educational agency that
elects to administer a primary language assessment pursuant to this
subdivision shall do so at its own expense and shall enter into an
agreement for that purpose with the state testing contractor, subject
to the approval of the department. 
   (k) Pursuant to Section 1412(a)(16) of Title 20 of the United
States Code, individuals with exceptional needs, as defined in
Section 56026, shall be included in the testing requirement of
subdivision (b) with appropriate accommodations in administration,
where necessary, and  those   the 
individuals with exceptional needs who are unable to participate in
the testing, even with accommodations, shall be given an alternate
assessment.
   (l) (1) The Superintendent shall apportion funds appropriated for
these purposes to local educational agencies to enable them to meet
the requirements of subdivisions (b) and (c).
   (A) For the  MAPP   CAASPP  field tests
administered in the 2013-14 school year or later school years, the
Superintendent shall apportion funds to local educational agencies if
funds are specifically provided for this purpose in the annual
Budget Act.
   (B) The Superintendent shall apportion funds to local educational
agencies to enable them to administer assessments used to satisfy the
voluntary Early Assessment Program in the 2013-14 school year
pursuant to paragraph (4) of subdivision (b).
   (2) The state board annually shall establish the amount of funding
to be apportioned to local educational agencies for each test
administered and annually shall establish the amount that each
contractor shall be paid for each test administered under the
contracts required pursuant to Section 60643. The amounts to be paid
to the contractors shall be determined by considering the cost
estimates submitted by each contractor each September and the amount
included in the annual Budget Act, and by making allowance for the
estimated costs to  school districts   local
educational agencies  for compliance with the requirements of
subdivisions (b) and (c). The state board shall take into account
changes to local educational agency test administration activities
under the  MAPP,   CAASPP,  including, but
not limited to, the  number,   number and 
type of tests  administered,   administered
 and changes in computerized test registration and
administration procedures, when establishing the amount of funding to
be apportioned to local educational agencies for each test
administered.
   (3) An adjustment to the amount of funding to be apportioned per
test shall not be valid without the approval of the Director of
Finance. A request for approval of an adjustment to the amount of
funding to be apportioned per test shall be submitted in writing to
the Director of Finance and the chairpersons of the fiscal committees
of both houses of the Legislature with accompanying material
justifying the proposed adjustment. The Director of Finance is
authorized to approve only those adjustments related to activities
required by statute. The Director of Finance shall approve or
disapprove the amount within 30 days of receipt of the request and
shall notify the chairpersons of the fiscal committees of both houses
of the Legislature of the decision.
   (m) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the appropriation for
the apportionments made pursuant to paragraph (1) of subdivision (l),
and the payments made to the contractors under the contracts
required pursuant to Section 60643 or subparagraph (C) of paragraph
(1) of subdivision (a) of Section 60605 between the department and
the contractor, are "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202, for the
applicable 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, for that fiscal year.
   (n) As a condition to receiving an apportionment pursuant to
subdivision (l), a local educational agency shall report to the
Superintendent all of the following:
   (1) The pupils enrolled in the local educational agency in the
grades in which assessments were administered pursuant to
subdivisions (b) and (c).
   (2) The pupils to whom an achievement test was administered
pursuant to subdivisions (b) and (c) in the local educational agency.

   (3) The pupils in paragraph (1) who were exempted from the test
pursuant to this section.
   (o) The Superintendent and the state board are authorized and
encouraged to assist postsecondary educational institutions to use
the assessment results of the  MAPP,   CAASPP,
 including, but not necessarily limited to, the grade 11
consortium summative assessments in English language arts and
mathematics, for academic credit, placement, or admissions processes.

   (p) Subject to the availability of funds in the annual Budget Act
for this purpose, and exclusive of the consortium assessments, the
Superintendent, with the approval of the state board, annually shall
release to the public test items from the achievement tests pursuant
to Section 60642.5 administered in previous years. Where feasible and
practicable, the minimum number of test items released per year
shall be equal to 25 percent of the total number of test items on the
test administered in the previous year.
   (q) On or before July 1, 2014, Sections 850 to 868, inclusive, of
Title 5 of the California Code of Regulations shall be revised by the
state board to conform to the changes made to this section in the
first year of the 2013-14 Regular Session. The state board shall
adopt initial regulations as emergency regulations to immediately
implement the  MAPP   CAASPP  assessments,
including, but not necessarily limited to, the administration,
scoring, and reporting of the tests, as the adoption of emergency
regulations is necessary for the immediate preservation of the public
peace, health, safety, or general welfare within the meaning of
Section 11346.1 of the Government Code. The emergency regulations
shall be followed by the adoption of permanent regulations, in
accordance with the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code).
   SEC. 50.    Section 60640.2 of the  
Education Code   is repealed.  
   60640.2.  (a) Subject to the approval of the state board, the
department may make available to school districts and charter schools
a primary language assessment developed pursuant to subparagraph (A)
of paragraph (3) of subdivision (f) of Section 60640 for assessing
pupils who are enrolled in a dual language immersion program that
includes the primary language of the assessment and who are either
nonlimited English proficient or redesignated fluent English
proficient. The cost for the assessment shall be the same for all
school districts and charter schools, and shall not exceed the
marginal cost of the assessment, including any cost the department
incurs to implement this section.
   (b) A school district or charter school that chooses to administer
a primary language assessment pursuant to this section shall do so
at its own expense, and shall enter into an agreement for that
purpose with the state testing contractor, as described in
subparagraph (C) of paragraph (3) of subdivision (f) of Section
60640, subject to the approval of the department. 
   SEC. 51.    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 6110-296-0001 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).  
   (7) 
    (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). 
   (8) 
    (9)  Collective Bargaining (CSM 4425; Chapter 961 of the
Statutes of 1975). 
   (9) 
    (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). 
   (10) 
    (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). 
   (11) 
    (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). 

         (12) 
    (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).

   (13) 
    (14)  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). 
   (14) 
    (15)  Criminal Background Checks (97-TC-16; Chapters 588
and 589 of the Statutes of 1997). 
   (15) 
    (16)  Criminal Background Checks II (00-TC-05; Chapters
594 and 840 of the Statutes of 1998; and Chapter 78 of the Statutes
of 1999). 
   (17) 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).  
   (16) 
    (18)  Differential Pay and Reemployment (99-TC-02;
Chapter 30 of the Statutes of 1998). 
   (17)
    (19)  Expulsion of Pupil: Transcript Cost for Appeals
(SMAS; Chapter 1253 of the Statutes of 1975). 
   (18) 
    (20)  Financial and Compliance Audits (CSM 4498 and CSM
4498-A; Chapter 36 of the Statutes of 1977). 
   (19) 
    (21)  Graduation Requirements (CSM 4181; Chapter 498 of
the Statutes of 1983). 
   (20) 
    (22)  Habitual Truants (CSM 4487 and CSM 4487-A; Chapter
1184 of the Statutes of 1975). 
   (21) 
    (23)  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). 
   (22) 
    (24)  Immunization Records (SB 90-120; Chapter 1176 of
the Statutes of 1977). 
   (23) 
    (25)  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). 
   (24) 
    (26)  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). 
   (25) 
    (27)  Intradistrict Attendance (CSM 4454; Chapters 161
and 915 of the Statutes of 1993). 
   (26) 
    (28)  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). 
   (27) 
    (29)  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). 
   (30) Parental Involvement Programs (03-TC-16; Chapter 1400 of the
Statutes of 1990; Chapters 864 and 1031 of the Statutes of 1998;
Chapter 1037 of the Statutes of 2002).  
   (28) 
    (31)  Physical Performance Tests (96-365-01; Chapter 975
of the Statutes of 1995). 
   (29) 
    (32)  Prevailing Wage Rate (01-TC-28; Chapter 1249 of
the Statutes of 1978). 
   (33) Public Contracts (02-TC-35; Chapter 1073 of the Statutes of
1985; Chapter 1408 of the Statutes 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).  
   (30) 
    (34)  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). 
   (31) 
    (35)  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). 
   (32) 
    (36)  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). 
   (33) 
    (37)  Pupil Expulsions (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). 
   (34) 
    (38)  Pupil Expulsion Appeals (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). 
   (35) 
    (39)  Pupil Suspensions (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). 
   (36) 
    (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).

   (37) 
    (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).

   (38) 
    (42)  School District Reorganization (98-TC-24; Chapter
1192 of the Statutes of 1980; and Chapter 1186 of the Statutes of
1994). 
   (39) 
    (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).

   (40) 
    (44)  The Stull Act (98-TC-25; Chapter 498 of the
Statutes of 1983; and Chapter 4 of the Statutes of 1999). 
   (41) 
    (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). 

   (42) 
    (48)  Pupil Expulsions II, Pupil Suspensions II, and
Educational Services Plan for Expelled Pupils (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 498 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).
   (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. 52.    Section 17581.8 is added to the 
 Government Code   , to read:  
   17581.8.  (a) (1) 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) 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 the Budget Act of 2014, to school districts on the
basis of an equal amount per unit of regular average daily
attendance, as those 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 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 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 reduce any amount owed by school
districts or community college districts pursuant to an audit by
reducing amounts owed by the state to school districts or community
college districts 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. 53.    Item 6110-106-0001 of Section 2.00 of the
  Budget Act of 2013   is amended to read: 
6110-106-0001--For local assistance,
Department of Education (Proposition 98),
for transfer to Section A of the State
School Fund, for support of the California    10,000,00
Local Control Accountability Support Network.         0
      Provisions:
      1.      Funds appropriated in this item
              shall be used to support the
              California Local Control
              Accountability Support Network,
              composed of regional Mentor
              Teams to assist in the
              improvement       of Local
              Control and Accountability
              Plans (LCAP) established in
              Article 3.8 (commencing with
              Section 52060) of Chapter 6.1
              of Part 28 of Division 4 of
              Title 2 of the Education Code.
              Up to $300,000 of this amount
              may be used to support a
              statewide evaluation to measure
              the effectiveness of the
              support network in responding
              to the needs of local education
              agencies.
       2.      Funds appropriated in this item 
               shall be available for 
               encumbrance until June 30, 2015. 


   SEC. 54.    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. 55.    The balance of the appropriations
provided by Item 6110-139-8080 of Section 2.00 of the Budget Act of
2013, as added by Chapters 20 and 354 of the Statutes of 2013, are
hereby reappropriated to the State Department of Education for the
purposes of, and subject to, that item, and, notwithstanding any
other law, shall be available for encumbrance until June 30, 2018.

   SEC. 56.    (a) Of the amount allocated in Schedule
(1) of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2012,
thirty-two million eight hundred six thousand dollars ($32,806,000)
is provided to fund the 2010-11 fiscal year maintenance of effort in
the special education program.  
   (b) Of the amount allocated in Schedule (1) of Item 6110-161-0001
of Section 2.00 of the Budget Act of 2013, forty-six million nine
hundred forty-three thousand dollars ($46,943,000) is provided to
fund the 2010-11 fiscal year maintenance of effort in the special
education program. 
   SEC. 57.    (a) Notwithstanding any other law, the
Director of Finance shall determine, on or before May 14, 2015,
whether the total allocations required by subdivision (b) of Section
8 of Article XVI of the California Constitution for the 2013-14 and
2014-15 fiscal years, as estimated by the Director of Finance on May
13, 2015, exceed the total allocations required by subdivision (b) of
Section 8 of Article XVI of the California Constitution for the
2013-14 and 2014-15 fiscal years as determined at the time of, and as
set forth in, the 2014 Budget Act.  
   (b) (1) Any excess amount determined pursuant to subdivision (a)
shall be appropriated to school districts and community college
districts in satisfaction of the minimum funding obligation for
school districts and community college districts required by Section
8 of Article XVI of the California Constitution for the 2013-14 and
2014-15 fiscal years, and are appropriations made and allocated in
those respective fiscal years based on any positive amounts
attributable to each of those fiscal years, as determined pursuant to
the calculations made in subdivision (a).  
   (2) The amount of funding appropriated to school districts and
community college districts pursuant to paragraph (1) shall be
distributed to school districts and community college districts based
on their respective proportion of the sum of warrants that would
otherwise be drawn in July pursuant to subdivision (h) of Section
14041.6 of the Education Code and paragraph (6) of subdivision (a) of
Section 84321.6 of the Education Code.  
   (c) Notwithstanding any other law, up to eight hundred
ninety-seven million one hundred eighty-four thousand dollars
($897,184,000) of the warrants that would otherwise be drawn in July
2015 pursuant subdivision (h) of Section 14041.6 of the Education
Code may instead be drawn in June 2015, based on the amount of
available funding attributable to school districts pursuant to
paragraph (2) of subdivision (b).  
   (d) Notwithstanding any other law, up to ninety-four million four
hundred sixty-five thousand dollars ($94,465,000) of the warrants
that would otherwise be drawn in July 2015 pursuant to paragraph (6)
of subdivision (a) of Section 84321.6 of the Education Code may
instead be drawn in June 2015, based on the amount of available
funding attributable to community college districts pursuant to
paragraph (2) of subdivision (b).  
   (e) The Director of Finance shall notify the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, on or
before June 30, 2015, of his or her intent to notify the Controller
of the necessity to release funds appropriated in subdivision (b).
The Controller shall make the funds available no earlier than five
days after the notification, and the Superintendent of Public
Instruction and Chancellor of the California Community Colleges shall
work with the Controller to allocate the funds to school districts
and community college districts as soon as practicable. 
   SEC. 58.    (a) On or before June 30, 2015, an amount
to be determined by the Director of Finance 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 2014.  
   (b) The funds appropriated in subdivision (a) shall only be
available to the extent that 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 2014, as determined by the Director of Finance.  
   (c) On or before June 30, 2015, 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 2014 and shall reduce Schedule
(1) of Item 6110-161-0001 of Section 2.00 of the Budget Act of 2014
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 2014.  
   (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 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 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.   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.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.