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AB-760 Healthy Start Community Schools Act.(2011-2012)

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AB760:v98#DOCUMENT

Amended  IN  Assembly  April 04, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 760


Introduced  by  Assembly Member Gordon

February 17, 2011


An act to amend Sections 8800, 8801, 8802, 8803, 8804, 8804.5, 8805, 8806, and 8807 of, to amend the headings of Article 2 (commencing with Section 8803) and Article 3 (commencing with Section 8805) of Chapter 5 of, and to amend the heading of Chapter 5 (commencing with Section 8800) of, Part 6 of Division 1 of Title 1 of, the Education Code, relating to community schools.


LEGISLATIVE COUNSEL'S DIGEST


AB 760, as amended, Gordon. California Full-Service Healthy Start Community Schools Act.
Existing law, the Healthy Start Support Services for Children Act, requires the Superintendent of Public Instruction to award grants to local educational agencies or consortia to fund programs in qualifying schools that provide designated support services to eligible pupils and their families. The act authorizes the issuance of both planning grants and operational grants to local educational agencies or consortia that provide support services, as defined, to pupils and their families, and authorizes the issuance of county or regional planning and coordinating grants to a specified number of local educational agencies or consortia each year, for the purposes of increasing the local planning and coordinating efforts among school districts, county offices of education, county governments, community organizations, and nonprofit organizations, as specified.
This bill would rename the act as the California Full-Service Healthy Start Community Schools Act, recast several of the provisions of the act, and make technical and conforming changes. The bill would require proposals for grant support to include commitments to carry out the programs to be implemented by the grant from the governing boards of applicant local educational agencies, relevant memoranda of understanding with any local governmental agency partners, and plans for the phased expansion of any districtwide or countywide expansion of a program. The bill would also authorize the Superintendent to award supplemental funds for direct service to local educational agencies or consortia to address specific and serious service gaps, and remove provisions that prohibit more than 50% of each grant to be available for expenditure on direct services, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Chapter 5 (commencing with Section 8800) of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:
CHAPTER  5. California Full-Service HEALTHY START Community Schools Act

SEC. 2.

 Section 8800 of the Education Code is amended to read:

8800.
 This chapter shall be known and may be cited as the California Full-Service Healthy Start Community Schools Act.

SEC. 3.

 Section 8801 of the Education Code is amended to read:

8801.
 The Legislature finds and declares all of the following:
(a) A large and growing number of California’s children are not learning enough in school to prepare them for full economic, social, and civic participation in adult life, as evidenced by the following statistics:
(1) Each year, between 59,000 and 72,000 children are born exposed to drugs or alcohol.
(2) Currently 360,000 children are abused or neglected, according to the juvenile courts and county welfare departments.
(3) Each year, a substantial number of parents have their parental rights terminated by the courts.
(4) Seventy thousand children are presently placed with foster care because of parental abuse or neglect or delinquent behavior.
(5) Out of an average class of 30 high school sophomores, any eight pupils are on public assistance, any four speak no English, any eight are at least two years behind in reading and math, any three have grown up in public housing, any seven will not graduate, any three will be teen parents, and any seven will not be employable.
(6) Sixty-one thousand children receive mental health services annually.
(7) One million one hundred thousand children go to bed hungry every night.
(b) The quality of life for all Californians is affected by these conditions. These children, and often the children they have, impose heavy costs on taxpayers by requiring special services, income assistance, or incarceration or institutionalization. They are a burden on the capacity of the state’s economy to produce adequate revenues and an adequate tax base.
(c) The causes of the problems children face are complex and interdependent. Many families, especially those affected by poverty, fail to provide the physical, emotional, and intellectual support needed to ensure that their children are ready for school. Many neighborhoods and larger communities lack the resources or organization to support children. The schools’ support services either are not effective or have not effectively serviced a large enough percentage of at-risk children.
(d) Because children spend so much of their time at school, schools have been increasingly asked to provide a wide range of health and social services to children, and many have attempted to help parents as well. The capacity of schools to undertake these roles must be increased.
(e) However, this service capacity should not be increased through conventional, categorical approaches. Services to children and their families can be most effectively provided through consortia which include schools, other health and human service providers, parents, and community groups. Collaboration is necessary and more effective because the goals of school and community services are interdependent; fragmentation of existing state and local services otherwise inhibits their effectiveness; and community-based services offer resources and competence that schools do not have. Both the state and counties must develop policies and incentives to improve collaboration at the local level.
(f) Therefore, it is the intent of the Legislature that by implementing the California Full-Service Healthy Start Community Schools Act, children in need of assistance to overcome the barriers to healthy, productive lives be given assistance in all of the following ways:
(1) By creating a learning environment that is optimally responsive to the physical, emotional, and intellectual needs of each child.
(2) By fostering interagency collaboration and communication at the local level to more efficiently and effectively deliver human support services to children and their families.
(3) By encouraging the full use of existing agencies, professional personnel, and public and private funds to ensure that children are ready and able to learn, and to prevent duplication of services and unnecessary expenditures.
(4) By encouraging the development of a local interagency oversight mechanism that includes a records system to evaluate cost and effectiveness, and the development of a process of self-assessment of those records and the way in which they are used, to improve the effectiveness of services.

SEC. 4.

 Section 8802 of the Education Code is amended to read:

8802.
 For the purposes of this chapter, the following definitions apply:
(a) “Consortium” means two or more local educational agencies.
(b) “Cooperating agency” means any federal, state, or local public or private nonprofit agency that agrees to offer support services at a schoolsite through a program implemented under this chapter.
(c) “Council” means the California Full-Service Healthy Start Community Schools Program Council.
(d) “Lead agency” means the State Department of Education.
(e) “Local educational agency” means a school district or county office of education.
(f) “Private partner” means a private business or foundation that provides financial assistance or otherwise assists a support services program operated under this chapter.
(g) “Qualifying school” means a school that is any of the following:
(1) A school that maintains kindergarten or any of grades 1 to 6, inclusive, in which 50 percent or more of the enrolled pupils either (A) are from families that receive benefits from the Aid to Families with Dependent Children program or any successor program, have limited English proficiency, as identified pursuant to Section 52163, or both, or (B) are eligible to receive free or reduced-price meals under Section 49552.
(2) A school that maintains any of grades 7 to 12, inclusive, in which 35 percent or more of the enrolled pupils either (A) are from families that receive benefits from the Aid to Families with Dependent Children program or any successor program, have limited English proficiency, as identified pursuant to Section 52163, or both, or (B) are eligible to receive free or reduced-price meals under Section 49552.
(3) A school that does not satisfy the criteria in paragraph (1) or (2) but that demonstrates other factors that warrant its consideration, including, for example, exceptional need, potential to serve as a model program, or service to a particular target population. No more than 10 percent of the schools that participate in the program established by this chapter may be schools that qualify under this paragraph. A school that receives a grant under this paragraph shall ensure that the following pupils in that school are given priority to receive services provided with the grant money: (A) are from families that receive benefits from the Aid to Families with Dependent Children program or any successor program, have limited English proficiency, as identified pursuant to Section 52163, or both, or (B) are eligible to receive free or reduced-price meals under Section 49552.
(h) “Secretary” means the Secretary of Child Development and for Education.
(i) “Agency secretary” means the Secretary of the Health and Welfare Agency California Health and Human Services.
(j) “Superintendent” means the Superintendent of Public Instruction.
(k) “Support services” means services that will enhance the physical, social, emotional, and intellectual development of children and their families.

SEC. 5.

 The heading of Article 2 (commencing with Section 8803) of Chapter 5 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:
Article  2. California Full-Service Healthy Start Community Schools Program Council and Grant Program

SEC. 6.

 Section 8803 of the Education Code is amended to read:

8803.
 (a) In order to encourage the integration of children’s services, it is the intent of the Legislature to promote interagency coordination and collaboration among the state agencies responsible for the provision of support services to children and their families.
(b) The California Full-Service Healthy Start Community Schools Program Council is hereby established to replace the Healthy Start Support Services for Children Program Council. The California Full-Service Healthy Start Community Schools Program Council shall operate in accordance with all of the following:
(1) Members of the council shall include the Superintendent, the agency secretary, the secretary, and the directors of the State Department of Health Care Services, the State Department of Social Services, the State Department of Alcohol and Drug Programs, and the State Department of Mental Health, or designated representatives thereof.
(2) Duties of the council shall include all of the following:
(A) Developing, promoting, and implementing policy supporting the California Full-Service Healthy Start Community Schools Grant Program.
(B) Assisting the lead agency in reviewing grant applications submitted to the lead agency and providing the lead agency with recommendations for awarding grants pursuant to Section 8804.
(C) Soliciting input regarding program policy and direction from individuals and entities with experience in the integration of children’s services.
(D) Assisting the lead agency in fulfilling its responsibilities under this chapter.
(E) Providing recommendations to the Governor, the Legislature, and the lead agency regarding the California Full-Service Healthy Start Community Schools Grant Program.
(F) At the request of the Superintendent, assisting the local educational agency or consortium in planning and implementing this program, including assisting with local technical assistance, and developing agency collaboration.

SEC. 7.

 Section 8804 of the Education Code is amended to read:

8804.
 The Superintendent shall award grants to a local educational agency or consortium to pay the costs of planning and coordination activities, on behalf of one or more qualifying schools within the local educational agency or consortium, relating to programs that provide support services to pupils and their families at or near the school, as follows:
(a) Grants shall be awarded by the Superintendent based upon the recommendations of the council and pursuant to this section.
(b) Three types of grants may be awarded to applicant local educational agencies or consortia, depending upon the level of readiness of that applicant to implement a program pursuant to this chapter. The Superintendent shall issue requests for applications for awarding the grants, which shall specify maximum dollar amounts for which each type of grant may be awarded. The requests for applications also shall specify other criteria, as required by this article. A grant request shall include a commitment to carry out the program to be implemented by the grant from the governing board of any applicant local educational agency, as well as relevant memoranda of understanding with any local governmental agency partners. The Superintendent shall award those grants as follows:
(1) Planning grants may be awarded to local educational agencies or consortia that have demonstrated a need to implement a program, but that are not ready to begin the operation of the program, or that are in need of additional planning to expand existing support services programs. If applicable, proposals included in the application shall outline plans for the phased expansion of any program districtwide or countywide. Planning grants shall be no more than fifty thousand dollars ($50,000), and shall be awarded for a period not to exceed two years. Upon completion of the planning phase, the local educational agency or consortium shall be eligible to apply for and may receive an operational grant.
(2) Operational grants may be awarded to local educational agencies or consortia that have demonstrated readiness to begin operation of a program or to expand existing support services programs. Operational grants shall supplement, not supplant, existing services and funds, and shall be awarded for a period not to exceed five years. The use of these funds shall be limited to coordination activities either at the site or at the community or district level.
(3) Supplemental funds may be awarded to for direct service to a local educational agency or consortium to address a specific and serious service gap. A request for supplemental funds shall include a plan for evaluating the impact of providing the new service and for paying for the service once the grant has ended.
(A) Operational grants shall be awarded for no more than three hundred thousand dollars ($300,000). No more than 50 percent of each grant shall be available for expenditure on direct services, as long as the grant application contains a three-year plan to significantly reduce or to eliminate agency reliance on funding provided under this article for direct services. Direct services do not include salaries for staff who are developing or implementing the program.
(B) Recipients of operational grants may also receive one-time startup grants, which may be used, among other things, for purchasing equipment, hiring staff, designing a program evaluation, or hiring a consultant. Startup grants shall be awarded for not more than one hundred thousand dollars ($100,000).
(4) If a local educational agency or consortium submits an application for an operational grant on behalf of a school that does not meet the criteria specified in subdivision (g), (h), (i), or (j), the Superintendent may offer the applicant a planning grant, provided that the local educational agency or consortium has not received previously a planning grant on behalf of that school.
(c) All grants awarded under this article shall be matched by the participating local educational agency or consortium and its cooperating agencies with one dollar ($1) for each four dollars ($4) awarded. The match shall be contributed in cash or as services or resources of comparable value. It is the intent of the Legislature that participants seek and utilize private funds or resources for this purpose. The Superintendent may waive the match requirement upon verifying that the local educational agency or consortium made a substantial effort to secure a match but was unable to secure the required match.
(d) The Superintendent shall award grants pursuant to this article to local educational agencies or consortia in northern, central, and southern California, in urban, suburban, and rural areas. To the extent possible, the grants shall be awarded for programs representative of the ethnic and linguistic diversity of schoolage pupils and their families. Further, to the extent possible, 50 percent of the grants shall be awarded to schools serving elementary school pupils and 50 percent to schools serving junior and senior high school pupils.
(e) Of the schools that receive grants each year, not more than 10 percent may be selected based on the criteria identified in paragraph (3) of subdivision (g) of Section 8802.
(f) A local educational agency or consortium is eligible for a grant under this article, on behalf of one or more schools operated by the agency or consortium, if it demonstrates in its program plan that it:
(1) Will give priority for services provided under this chapter to pupils from low-income families.
(2) Will assist families in responding to support services needs of pupils.
(3) Has established the local agency collaboration process described in Article 4 (commencing with Section 8806), including a mechanism for sharing governance with cooperating agencies and entities, and for integrating or redirecting existing resources and other school support services.
(4) Has submitted or is submitting an application to the State Department of Public Health for certification as a Medi-Cal provider, pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.
(5) Involves parents or guardians and teachers in the process of identifying pupils’ service needs and in the planning for and provision of support services.
(g) For purposes of this chapter, support services shall include case-managed health, mental health, social, and academic support services benefiting children and their families, and may include, but are not limited to:
(1) Health care, including:
(A) Immunizations.
(B) Vision and hearing testing and services.
(C) Dental services.
(D) Physical examinations, diagnostic, and referral services.
(E) Prenatal care.
(2) Mental health services, including primary prevention, crisis intervention, assessments, and referrals, and training for teachers in the detection of mental health problems.
(3) Substance abuse prevention and treatment services.
(4) Family support and parenting education, including child abuse prevention and schoolage parenting programs.
(5) Academic support services, including tutoring, mentoring, employment, and community service internships, and inservice training for teachers and administrators. However, grants for these purposes shall supplement, not supplant, existing resources in these areas.
(6) Counseling, including family counseling and suicide prevention.
(7) Services and counseling for children who experience violence in their communities.
(8) Nutrition services.
(9) Youth development services, including tutoring, mentoring, recreation, career development, and job placement.
(10) Case management services.
(11) Provision of onsite Medi-Cal eligibility workers.
(h) A local educational agency or consortium may contract with other entities, including county agencies and private nonprofit organizations or private partners, to provide services to pupils and their families.
(i) (1) Each local educational agency or consortium seeking a grant under this article shall submit an application to the Superintendent at a time and manner, and with any appropriate information, as the Superintendent may reasonably require.
(2) Each grant application submitted shall include all of the following:
(A) A description of the proposed programs, including four or more support services expected to be provided at the schoolsite or at a site near, or adjacent to, the school.
(B) A description of how the proposed programs will relate to, or will be integrated into, the school system governance structure structure, such as schoolsite councils or school improvement plans.
(C) Documentation of need for participation in the California Full-Service Healthy Start Community Schools Grant Program.
(D) Documentation of need for planning assistance, program operation support, or both.
(E) As to any operational grant application, a description of the objectives of the program, the amount and sources of required funding, the existing resources to be used or redirected, the priorities for development and timing of the program, the agencies responsible for the implementation of the program, and the procedures for the evaluation of the program.
(F) A description of how the proposed programs will be integrated into existing health and human services initiatives, such as differential response efforts, Mental Health Services Act planning, local First 5 California initiatives, or existing family resource centers.
(3) The program plan submitted with an operational grant application shall include all of the following:
(A) Provisions for data collection and recordkeeping, including records of the population served, the components of the service, the results of the service, and costs, including startup, direct, and indirect costs, including those to other agencies, and cost savings.
(B) A service evaluation component, including input, process, and outcome indicators, quality assessment, and the process by which these measures will be taken. In addition, the plan shall include specific targets and outcome measures.
(C) A specific governing mechanism by which the plan will be implemented, including local decisionmaking responsibilities, organizational needs, anticipated problems and procedures to solve them, and incentives for collaboration and participation incentives to personnel.
(D) A specific system for the provision of case management services, including procedures for implementation, identification of the target population, anticipated outcomes, and a list of existing services, resources, and programs that will be used as components of the program.
(E) A specific explanation of how any Medi-Cal administrative activities (MAA) reimbursements might be reinvested into the program.
(4) In the case of a consortium, a list of its members.
(5) The grant application also shall document any procedures that have been, or will be, taken to designate the local educational agency as a Medi-Cal provider pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.
(6) A description of technical assistance, professional growth, and development needs, if any.
(7) A description of the proposed plan for family involvement in the program.
(8) A description of the population anticipated to be served.
(9) As to any planning grant application, a plan describing how the proposed program will be implemented after the grant has expired.
(j) Grants awarded pursuant to this article may be used for salaries of staff responsible for developing or implementing the program plan and administrative support staff, equipment and supplies, training, and insurance, pursuant to subdivision (b).
(k) (1) No more than 10 percent of the amount appropriated in a fiscal year for the purposes of this chapter may be used by the Superintendent for state-level administration of this chapter, including evaluation and technical assistance. Technical assistance includes, but is not limited to, establishing interagency collaboration, providing information dissemination and referrals, including information about appropriate program models, information about appropriate public funding models, conducting site visits, and convening workshops to assist in the implementation of a program developed pursuant to this chapter.
(2) Of the amount provided in the annual Budget Act for state-level administration, up to 75 percent may be used for the purpose of outreach and technical assistance to local educational agencies. The remainder shall be used for state-level program administration.
(3) The Superintendent shall ensure that adequate resources are available to conduct an evaluation pursuant to Section 8805.
(l) In any fiscal year in which funding is available, grants shall be awarded according to the following schedule:
(1) The Superintendent shall issue requests for applications on or before November 1.
(2) Grant applications shall be submitted to the Superintendent on or before March 1.
(3) The Superintendent shall award grants on or before May 15.

SEC. 8.

 Section 8804.5 of the Education Code is amended to read:

8804.5.
 (a) The Legislature finds and declares that, as the number of planning and operational grants awarded pursuant to this chapter increases, additional local planning and coordinating efforts will be necessary among school districts, county offices of education, county governments, community organizations, and nonprofit organizations for all of the following reasons:
(1) To avoid the duplication of efforts among agencies that administer the grants.
(2) To develop linkages between several school districts, individual county agencies, statewide organizations, or nonprofit organizations.
(3) To disseminate training and technical assistance materials developed by the department and other involved organizations.
(4) To plan for, and ensure, the continued ability of local educational agencies or consortia to provide support services with an operational grant, including planning and supporting the funding of those services beyond the three-year grant period through such means as Medi-Cal.
(5) To plan for, and ensure, the expansion of support services provided with an operational grant through creative refinancing options and the provision of comprehensive, integrated school-linked services to sites that do not receive planning or operational grants.
(b) From funds appropriated in the annual Budget Act for the California Full-Service Healthy Start Community Schools Act, the department may award county or regional planning and coordinating grants to no more than 11 local educational agencies or consortia each year, to be used for the purposes enumerated in subdivision (a). Each grant shall be for an amount not to exceed fifty thousand dollars ($50,000). The total amount of grants awarded annually pursuant to this section shall not exceed five hundred fifty thousand dollars ($550,000). The duration of each grant shall be mutually agreed upon by the grantee and the department.
(c) In awarding grants for the purposes of this section, the department shall give priority to local educational agencies or consortia that possess one or more of the following:
(1) An established capacity for leadership in the community and an ability to engage in local problem solving and to creatively approach the restructuring of service delivery methods.
(2) A demonstrated ability to work with and among service delivery agencies and systems, including county mental health, health, probation, and social service systems.
(3) The capacity to support county and regional planning and coordination efforts to be more responsive to the needs of children and their families in providing support services.
(4) Knowledge of the most effective strategies for refinancing grants and for integrating services between and among agencies.
(d) A local educational agency or consortia consortium shall collaborate with local service delivery agencies and existing collaborative councils in implementing a grant received pursuant to this section.

SEC. 9.

 The heading of Article 3 (commencing with Section 8805) of Chapter 5 of Part 6 of Division 1 of Title 1 of the Education Code is amended to read:
Article  3. California Full-Service Healthy Start Community Schools Grant Program Evaluations and Reports

SEC. 10.

 Section 8805 of the Education Code is amended to read:

8805.
 The Legislature finds that an evaluation of plan effectiveness is both desirable and necessary, and accordingly requires the following:
(a) No later than January 1 of the year following a full year of operation, each local educational agency or consortium that receives an operational grant under this chapter shall submit a report to the Superintendent that includes:
(1) An assessment of the effectiveness of that local educational agency or consortium in achieving stated goals in the planning and/or operational phase.
(2) Problems encountered in the design and operation of the California Full-Service Healthy Start Community Schools Grant Program plan, including identification of any federal, state, or local statute or regulation that will impede program implementation.
(3) Recommendations for ways to improve delivery of support services to pupils.
(4) The number of pupils who will receive support services who previously have not been served.
(5) The potential impact of the program on the local educational agency or the consortium, including any anticipated increase in school retention and achievement rates of pupils who receive support services.
(6) An accounting of anticipated local budget savings, if any, resulting from the implementation of the program.
(7) Client and practitioner satisfaction.
(8) The ability, or anticipated ability, to continue to provide services in the absence of future funding under this chapter, by allocating resources in ways that are different from existing methods.
(9) Increased access to services for pupils and their families.
(10) The degree of increased collaboration among participating agencies and private partners.
(11) If the local educational agency or consortium received certification as a Medi-Cal provider, the extent to which the certification improved access to needed services.
(12) Improvements in average daily attendance as well as individual attendance for pupils who have directly benefited from program services.
(b) Additional annual evaluations may be required as designated by the Superintendent.

SEC. 11.

 Section 8806 of the Education Code is amended to read:

8806.
 (a) Each local educational agency or consortium applying for a grant under this chapter shall establish procedures to ensure on-going consultation and collaboration with local agencies for the purposes set forth in subdivision (c). The consultation and collaboration process shall involve, at a minimum, parents or guardians and teachers of pupils of qualifying schools and representatives of each member agency or private partner who will provide, or is anticipated to provide, services pursuant to this chapter.
(b) If the local educational agency or consortium is located within a county that has established an interagency children’s services coordinating council pursuant to Chapter 12.8 (commencing with Section 18986) of Part 6 of Division 9 of the Welfare and Institutions Code, any California Full-Service Healthy Start Community Schools Grant Program proposal submitted under this chapter first shall be approved by that council. The implementation of any program developed pursuant to this chapter shall be subject to the regular review of the interagency children’s services coordinating council. The local educational agency or consortium may engage in those activities authorized pursuant to Article 3 (commencing with Section 18986.20) of Chapter 12.8 of Part 6 of Division 9 of the Welfare and Institutions Code, provided that the interagency children’s services coordinating council first approves those activities. The interagency children’s services coordinating council or its members may be designated to fulfill the responsibilities of the consultation and collaboration process required by this article.
(c) Responsibilities of individuals designated for consultation and collaboration by the local educational agency or consortium shall include, but not be limited to, the following:
(1) Participate in the development of the program during the planning stages.
(2) Participate with the local educational agency or consortium in the design and operation of the program.
(3) Facilitate communication between the local educational agency or consortium and state, local, and community-based organizations providing support services to children.
(4) Make recommendations to appropriate organizations regarding ways to improve delivery of support services to children, and in the most cost-effective manner.

SEC. 12.

 Section 8807 of the Education Code is amended to read:

8807.
 (a) The State Department of Education is required to implement this chapter only to the extent that funds are apportioned for that purpose under the annual Budget Act, or are made available to the department for the purposes of this chapter from federal sources. It is the intent of the Legislature that the Superintendent, in consultation with the secretary and the agency secretary, seek and utilize any federal funds that may be made available for the purposes of this chapter.
(b) All money appropriated by the Legislature to the Superintendent for purposes of the California Full-Service Healthy Start Community Schools Act, shall be allocated by the Superintendent to local educational agencies or consortia that have been selected to participate in the grant program. Any amount not allocated during a fiscal year may be carried over to the subsequent fiscal year. In order to ensure that those local educational agencies or consortia that receive planning grants will be eligible to receive operational grants, a portion of any funds appropriated during a fiscal year may be reserved for allocation as operational grants in future fiscal years.
(c) Any funds that are not expended by a local educational agency or consortium by the end of the three-year period of the grant shall be returned to the state, except under the following circumstances:
(1) A local educational agency or consortium that received an operational grant may retain up to twenty-five thousand dollars ($25,000) of any amount not expended within the three-year period of the grant.
(2) The expenditure of any funds retained pursuant to paragraph (1) shall be for a one-year period, and shall be used exclusively to continue the program operations consistent with the original grant. Retention of funds pursuant to paragraph (1) shall be contingent on approval by the department of an expenditure plan submitted by the local educational agency or consortium.
(d) To the extent permitted by federal law, any funding made available to a local educational agency or consortium shall be subject to all of the following conditions:
(1) The program is open to children without regard to any child’s religious beliefs or any other factor related to religion.
(2) No religious instruction is included in the program.
(3) The space in which the program is operated is not used in any manner to foster religion during the time used for operation of the program.