BILL NUMBER: AB 200	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 3, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Hagman

                        JANUARY 29, 2013

   An act to amend Sections 42605 and 42606 of the Education Code,
relating to education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 200, as amended, Hagman. Education finance: categorical
programs.
   (1) Existing law establishes various categorical education
programs  ,  and appropriates the funding for those programs
in the annual Budget Act. Existing law requires the Superintendent
of Public Instruction, for the 2008-09 to 2014-15 fiscal years,
inclusive, to apportion from the amounts provided in the annual
Budget Act for specified categorical education programs an amount
based on the relative proportion that the local educational agency
received in the 2008-09 fiscal year for those programs and authorizes
local educational agencies, for those fiscal years, to use these
funds, with specified exceptions, for any educational purpose, to the
extent permitted by federal law. Existing law requires a school
district that receives funding on behalf of a charter school pursuant
to certain provisions, for the 2008-09 to 2014-15 fiscal years,
inclusive, to continue to distribute the funds to those charter
schools based on the same relative proportion that the school
district distributed in the 2007-08 fiscal year, as adjusted by the
school district to reflect changes in charter school attendance in
the school district. Existing law requires a local educational agency
to report expenditures of these funds to the State Department of
Education. Existing law also requires the Superintendent, for the
2010-11 to 2014-15 fiscal years, inclusive, to allocate a
supplemental categorical block grant to a charter school that began
operation on or after the 2008-09 fiscal year, as specified.
   This bill would delete the 2014-15 fiscal year termination dates
and would require, commencing with the 2014-15 fiscal year, the
apportionments from the categorical education programs, as described
above, to be apportioned to recipients by multiplying the recipient's
per-pupil rate, calculated as specified, by the recipient's current
fiscal year average daily attendance. The bill would also require the
department to adopt uniform definitions for reporting the
expenditure of the funds and would require a local educational
agency, as a condition of receiving the funds, to (A) report the
expenditure of those funds  at each schoolsite  to the
department, and (B) post information on the expenditure of the funds
 at each schoolsite  on the Internet Web site of the local
educational agency. By requiring school districts to continue to
distribute funds to charter schools, as discussed above, beyond the
2014-15 fiscal year, the bill would impose a state-mandated local
program.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 42605 of the Education Code is amended to read:

   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), commencing with the 2008-09
fiscal year, recipients of funds from the items listed in paragraph
(2) may use funding received, pursuant to subdivision (b), from any
of these items listed in paragraph (2) that are contained in Section
2.00 of the annual Budget Act, for any educational purpose.
   (2) Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-122-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001 of Section 2.00.
   (b) (1) (A) For the 2009-10 fiscal year to the 2013-14 fiscal
year, inclusive, the Superintendent or other administering state
agency, as appropriate, shall apportion from the amounts provided in
the annual Budget Act for the items enumerated in paragraph (2) of
subdivision (a) an amount to recipients based on the same relative
proportion that the recipient received in the 2008-09 fiscal year for
the programs funded through the items enumerated in paragraph (2) of
subdivision (a).
   (B) (i) Commencing with the 2014-15 fiscal year, the
Superintendent or other administering state agency, as appropriate,
shall, for the items enumerated in paragraph (2) of subdivision (a),
apportion an amount to a recipient by multiplying the per-pupil rate,
as determined in clause (ii), by the  recipients 
 recipient's  current fiscal year average daily attendance.
   (ii) For purposes of this subparagraph, the per-pupil rate shall
be determined by dividing the amount a recipient received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a) by the recipient's
2008-09 fiscal year average daily attendance.
   (2) This section and Section 42 of Chapter 12 of the Third
Extraordinary Session of the Statutes of 2009 do not authorize a
school district that receives funding on behalf of a charter school
pursuant to Sections 47634.1 and 47651 to redirect this funding for
another purpose unless otherwise authorized in law or pursuant to an
agreement between a charter school and its chartering authority.
Notwithstanding paragraph (1), commencing with the 2008-09 fiscal
year, a school district that receives funding on behalf of a charter
school pursuant to Sections 47634.1 and 47651 shall continue to
distribute the funds to those charter schools based on the relative
proportion that the school district distributed in the 2007-08 fiscal
year, and shall adjust those amounts to reflect changes in charter
school attendance in the school district. The amounts allocated shall
be adjusted for any greater or lesser amount appropriated for the
items enumerated in paragraph (2) of subdivision (a). For a charter
school that began operation in the 2008-09 fiscal year, if a school
district received funding on behalf of that charter school pursuant
to Sections 47634.1 and 47651, the school district shall continue to
distribute the funds to that charter school based on the relative
proportion that the school district distributed in the 2008-09 fiscal
year and shall adjust the amount of those funds to reflect changes
in charter school attendance in the school district. The amounts
allocated shall be adjusted for any greater or lesser amount
appropriated for the items enumerated in paragraph (2) of subdivision
(a).
   (3) Notwithstanding paragraph (1), commencing with the 2008-09
fiscal year, the Superintendent shall apportion from the amounts
appropriated by Item 6110-211-0001 of Section 2.00 of the annual
Budget Act an amount to a charter school in accordance with the
per-pupil methodology prescribed in subdivision (c) of Section
47634.1.
   (4) Notwithstanding paragraph (1), commencing with the 2008-09
fiscal year, the Superintendent shall apportion from the amounts
provided in the annual Budget Act an amount to a school district,
charter school, and county office of education based on the same
relative proportion that the local educational agency received in the
2007-08 fiscal year for the programs funded through the following
items contained in Section 2.00 of the annual Budget Act:
6110-104-0001, 6110-105-0001, 6110-156-0001, 6110-190-0001, Schedule
(3) of 6110-193-0001, 6110-198-0001, 6110-232-0001, and Schedule (2)
of 6110-240-0001.
   (5) For purposes of paragraph (4), if a direct-funded charter
school began operation in the 2008-09 fiscal year, the amount that
the charter school was entitled to receive from the items enumerated
in paragraph (4) for the 2008-09 fiscal year, as certified by the
Superintendent in March 2009, is deemed to have been received in the
2007-08 fiscal year.
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) (A) As a condition of receipt of funds, the governing board of
the school district or governing board of the county office of
education, as appropriate, at a regularly scheduled open public
hearing shall take testimony from the public, discuss, approve or
disapprove the proposed use of funding, and make explicit for each of
the budget items in paragraph (2) of subdivision (a) the purposes
for which the funds will be used.
   (B) The regularly scheduled open public hearing held pursuant to
subparagraph (A) shall be held before and independent of a meeting
where the governing board of the school district or governing board
of the county office of education adopts a budget. If the governing
board intends to close a program funded by the items listed in
paragraph (2) of subdivision (a), the governing board shall identify,
in the notice of the agenda of the public hearing or at another
public hearing, the program or programs proposed to be closed.
   (3) (A) As a condition of receipt of funds, using the Standardized
Account Code Structure reporting process, a local educational agency
shall report to the department expenditures of funds  at each
schoolsite  pursuant to the authority of this section by using
the appropriate function codes to indicate the activities for which
these funds are expended. The department shall collect and provide
this information to the Department of Finance and the appropriate
policy and budget committees of the Legislature by April 15, 2010,
and annually thereafter on April 15.
   (B) The department shall adopt uniform definitions for the
Standardized Account Code Structure reporting process.
   (4) As a condition of receipt of funds, a local educational agency
shall post information on the expenditures of funds  at each
schoolsite  pursuant to the authority of this section on its
Internet Web site.
   (d) Commencing with the 2008-09 fiscal year local educational
agencies that use the flexibility provision of this section shall be
deemed to be in compliance with the program and funding requirements
contained in statutory, regulatory, and provisional language,
associated with the items enumerated in subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Item 6110-105-0001 of Section 2.00 of the annual Budget
Act, the amount authorized for flexibility shall exclude the funding
provided to fund remedial educational services pursuant to Provision
4. For Item 6110-156-0001 of Section 2.00 of the annual Budget Act,
the amount authorized for flexibility shall exclude the funding
provided for instruction of CalWORKs-eligible pupils pursuant to
Schedules (2) and (3) and Provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local
educational agency for kindergarten and grades 1 to 8, inclusive, and
for grades 9 to 12, inclusive, shall be aligned with the state
standards adopted pursuant to Section 60605 or 60605.8, and shall
also meet the reporting and sufficiency requirements contained in
Section 60119.
   (B) For purposes of this section, "sufficiency requirements" are
the requirements that each pupil has sufficient textbooks and
instructional materials in the four core areas as defined by Section
60119 and that all pupils within the local educational agency who are
enrolled in the same course shall have identical textbooks and
instructional materials, as specified in Section 1240.3.
   (3) For Item 6110-195-0001 of Section 2.00 of the annual Budget
Act, the item shall exclude moneys that are required to fund awards
for teachers that have previously met the requirements necessary to
obtain these awards, until the award is paid in full.
   (4) For Item 6110-266-0001 of Section 2.00 of the annual Budget
Act, a county office of education shall conduct at least one site
visit to each of the required schoolsites pursuant to Section 1240
and shall fulfill all of the duties set forth in Sections 1240 and
44258.9.
   (5) For Item 6110-198-0001 of Section 2.00 of the annual Budget
Act, a school district or county office of education that operates
the child care component of the Cal-SAFE program shall comply with
paragraphs (5) and (6) of subdivision (c) of Section 54746.
   (f) This section does not invalidate any state law pertaining to
teacher credentialing requirements or the functions that require
credentials.
  SEC. 2.  Section 42606 of the Education Code is amended to read:
   42606.  (a) To the extent funds are provided, commencing with the
2010-11 fiscal year, the Superintendent shall allocate a supplemental
categorical block grant to a charter school that began operation
during or after the 2008-09 fiscal year. These supplemental
categorical block grant funds may be used for any educational
purpose. Commencing in the 2011-12 fiscal year, a locally or direct
funded charter school that converted from a preexisting school on or
after the 2008-09 fiscal year, is not eligible for funding specified
in this section. A charter school that receives funding pursuant to
this subdivision shall not receive additional funding for programs
specified in paragraph (2) of subdivision (a) of Section 42605, with
the exception of the program funded pursuant to Item 6110-211-0001 of
Section 2.00 of the annual Budget Act.
   (b) (1) For the 2010-11 fiscal year, the supplemental categorical
block grant shall equal one hundred twenty-seven dollars ($127) per
unit of charter school average daily attendance as determined at the
2010-11 second principal apportionment for charter schools commencing
operations during or after the 2008-09 fiscal year. A locally funded
charter school that converted from a preexisting school during or
after the 2008-09 fiscal year is not eligible for funding specified
in this section.
   (2) Commencing with the 2011-12 fiscal year, the supplemental
categorical block grant shall equal one hundred twenty-seven dollars
($127) per unit of charter school average daily attendance as
determined at the current year second principal apportionment for
charter schools commencing operations during or after the 2008-09
fiscal year. In lieu of this supplemental grant, a school district
shall provide new conversion charter schools that commenced
operations within the  school  district during or after the
2008-09 fiscal year, one hundred twenty-seven dollars ($127) per unit
of charter school average daily attendance as determined at the
current year second principal apportionment. This paragraph does not
preclude a school district and a new conversion charter school from
negotiating an alternative funding rate. Absent agreement from both
parties on an alternative rate, the school district shall be
obligated to provide funding at the one hundred twenty-seven dollars
($127) per average daily attendance rate.
  SEC. 3.  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.