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AB-77 Education finance: education omnibus budget trailer bill.(2019-2020)

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Date Published: 06/23/2020 05:22 PM
AB77:v96#DOCUMENT

Amended  IN  Senate  June 23, 2020
Amended  IN  Senate  June 22, 2020
Amended  IN  Senate  June 11, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 77


Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bloom, Chiu, Cooper, Frazier, Cristina Garcia, Jones-Sawyer, Limón, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Mark Stone, Weber, Wicks, and Wood)

December 03, 2018


An act to amend Sections 313.3, 2572, 8209, 8227.7, 8280, 8280.1, 14002, 14041, 14041.5, 14041.6, 17375, 17524, 35710.5, 38000, 41203.1, 41327.1, 41341, 41370, 42127, 42127.6, 42127.8, 42131, 42238.02, 42238.025, 42238.03, 42238.15, 44955.5, 46200.5, 46201.5, 47604.1, 47605, 47607, 47607.2, 47607.5, 47612.5, 47612.7, 47632, 47635, 47644, 48000, 51461, 52064, 52074, 52202, 54444.2, 54444.3, 56122, 56195.1, 56345, 56477, 56836.06, 56836.07, 56836.08, 56836.10, 56836.11, 56836.159, 56836.165, 56836.21, 56836.22, 56836.24, and 56836.31 of, to amend and renumber Sections 56836.145 and 56836.15 of, to amend and repeal Section 56213 of, to add Sections 8227.8, 14041.8, 41020.9, 41204.2, 42238.021, 44225.4, 44235.4, 44266.5, 45227, 47653, 47654, 47655, and 56214 to, to add Article 2.2 (commencing with Section 56836.14) to Chapter 7.2 of Part 30 of Division 4 of Title 2 of, to add and repeal Sections 17463.7 and 42603.1 of, to add and repeal Part 24.5 (commencing with Section 43500) to Division 3 of Title 2 of, and to repeal Section 56836.045 of, the Education Code, to amend Section 17581.6 of the Government Code, to amend Sections 97.2 and 97.3 of the Revenue and Taxation Code, to add Chapter 5.4 (commencing with Section 13265) to Part 3 of Division 9 of, and to add Part 1.7 (commencing with Section 10200) to Division 9 of, the Welfare and Institutions Code, to amend the Budget Act of 2019 (Chapters 23 and 55 of the Statutes of 2019) by amending Items 6100-158-0001, 6100-194-0001, and 6100-196-0001 of Section 2.00 of that act, and to amend Sections 1, 4, and 9 of Chapter 3 of the Statutes of 2020, relating to education finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


AB 77, as amended, Committee on Budget. Education finance: education omnibus budget trailer bill.
(1) Existing law requires the State Department of Education to develop, on or before June 30, 2020, a standardized English language teacher observation protocol for use by teachers in evaluating a pupil’s English language proficiency.
This bill would extend the date for completion of that protocol until December 31, 2021.
(2) The Child Care and Development Services Act, administered by the State Department of Education, requires the Superintendent of Public Instruction to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age. The act requires the department to contract with local contracting agencies to provide for alternative payment programs, and authorizes alternative payments to be made for childcare services, as provided. The act requires that families meet specified requirements to be eligible for federal- and state-subsidized childcare and development services.
This bill would require the Superintendent to reimburse contracting agencies for certain state-subsidized childcare programs from July 1, 2020, to June 30, 2021, inclusive, due to the ongoing impacts of childcare and development facility closures and low child attendance due to the COVID-19 pandemic and related public health directives, if the contracting agency meets one of 2 specified conditions. The bill would require a childcare program that receives that reimbursement and that is physically closed due to the COVID-19 pandemic, but funded to be operational, to submit a distance learning plan to the department pursuant to guidance from the Superintendent and to provide those distance learning services.
The bill would require the Controller, on July 1, 2020, to transfer $152,314,000 from the Federal Trust Fund, consistent with specified federal requirements, to the General Fund to offset the state costs of providing assistance to childcare providers during the COVID-19 pandemic from March 4, 2020, to August 28, 2020, as provided. The bill would appropriate $198,000,000 from the Federal Trust Fund, consistent with those same federal requirements, to the Superintendent for COVID-19 pandemic-related relief and assistance for childcare providers, the families those childcare providers serve, and essential workers, as provided. The bill would require that all children who meet specified childcare need and eligibility requirements who were enrolled pursuant to certain executive orders be first priority for enrollment in alternative payment programs with available capacity.
The bill would require the State Department of Education to prioritize federal funding for specified childcare and preschool programs in a certain order contingent on the receipt of federal funds authorized to be used for these purposes during the 2020–21 fiscal year.
The bill would require an alternative payment agency, as provided, to provide to the department, on a monthly basis, data about childcare caseload in the alternative payment program and migrant childcare and development programs.
(3) Existing law establishes the Early Learning and Care Infrastructure Grant Program under the administration of the Superintendent of Public Instruction to expand access to early learning and care opportunities for children up to 5 years of age by providing resources to build new facilities or retrofit, renovate, or expand existing facilities, as provided. Existing law appropriates $245,000,000 from the General Fund to the State Department of Education for these purposes, to be released on a prescribed schedule.
This bill instead would require all $245,000,000 appropriated for the Early Learning and Care Infrastructure Grant Program to be released in the 2019–20 fiscal year. The bill would require the amounts appropriated and transferred for purposes of the program to revert to the General Fund on June 30, 2020.
(4) Existing law establishes the Early Learning and Care Workforce Development Grants Program under the administration of the Superintendent to expand the number of qualified early learning and care professionals and increase the educational credentials of existing early learning and care professionals across the state, as provided. Existing law appropriates $150,000,000 from the General Fund to the department for these purposes, to be released on a prescribed schedule.
This bill instead would require all $150,000,000 appropriated for the Early Learning and Care Workforce Development Grants Program to be released in the 2019–20 fiscal year. The bill would require the amounts appropriated and transferred for purposes of the program to revert to the General Fund on June 30, 2020.
(5) Existing law continuously appropriates from the General Fund to Section A of the State School Fund for allocation by the Controller any amounts necessary to meet the requirements of specified programs during each fiscal year, including, among others, the local control funding formula, the basic aid school district block grant, and the Open Enrollment Act, upon certification by the Superintendent of those amounts.
This bill would require the amounts calculated for the those specified programs to be considered final as of the certification of the 2nd principal apportionment in the 5th succeeding fiscal year, inclusive, of the fiscal year for which the calculation is being made, and would require final submissions to be submitted pursuant to procedures and timeframes established by the Superintendent, except as provided. The bill would not apply these provisions to a change that is a result of an audit exception reported in certain audits or reviews that provided the local educational agency the opportunity to provide a written response.
(6) Existing law requires the Controller to draw warrants on the State Treasury throughout each year in specified amounts for purposes of apportioning funding to school districts, county offices of education, and charter schools.
This bill, commencing with the 2019–20 fiscal year, would require the warrants scheduled to be drawn in June to instead be drawn in July of the same calendar year. The bill, commencing with the 2020–21 fiscal year, would require specified amounts of warrants scheduled to be drawn in February to instead be drawn in November of the same calendar year, would require specified amounts of warrants scheduled to be drawn in March to instead be drawn in October of the same calendar year, would require specified amounts of warrants scheduled to be drawn in April to instead be drawn in September of the same calendar year, and would require specified amounts of warrants scheduled to be drawn in May to instead be drawn in August of the same calendar year, except as specified for certain amounts of warrants scheduled to be drawn in February to June, inclusive, for the 2020–21 fiscal year.
For the 2020–21 and 2021–22 fiscal years, if the state defers any payments owed to school districts, the bill would authorize the governing board of a school district to authorize, by resolution, that moneys held in any fund or account to be temporarily transferred to another fund or account of the school district for payment of obligations, as provided.
(7) The Full-Day Kindergarten Facilities Grant Program appropriates $300,000,000 for the 2019–20 fiscal year from the General Fund to the State Allocation Board to provide one-time grants to school districts to construct new school facilities or retrofit existing school facilities for the purpose of providing full-day kindergarten classrooms, as specified.
This bill, commencing with 2019–20 fiscal year, instead would make this program contingent upon appropriation by the Legislature.
(8) Existing law authorizes school district governing boards to sell, or lease for a term not exceeding 99 years, any real property belonging to the school district. Existing law establishes procedures for the conduct of these sales and leases, and specifies the purposes for which funds derived from these transactions may be used.
Until July 1, 2024, this bill would expand the purposes for which funds from those transactions may be used by authorizing a school district to deposit the proceeds from the sale or lease of surplus real property, together with any personal property located on the property, purchased entirely with local funds, into the general fund of the school district and to use the proceeds for any one-time general fund purpose, as provided.
(9) Existing law authorizes a school district to enter into leases and agreements relating to real property and buildings to be used jointly by the district and any private person, firm, local governmental agency, as defined, or corporation. Existing law prohibits the governing board of a school district from approving a proposal or entering into a lease or contract incorporating a proposal until the governing board submits the proposal to the State Board of Education, and the state board approves the proposal. Existing law requires the state board to notify the governing board of its approval or disapproval within 45 days of the date of submission.
This bill would repeal the above-described prohibition on the governing board of a school district and related requirements on the state board.
(10) Existing law prescribes the procedure to reorganize school districts, including the filing of a petition with the county superintendent of schools by specified persons. Existing law authorizes a county committee on school district organization for certain petitions to transfer territory to approve the petition, as provided. Existing law authorizes an action by the county committee on school district organization approving or disapproving a petition to transfer territory to be appealed to the State Board of Education by the chief petitioners or one or more affected school districts. The state board, upon receipt of the appeal, may elect either to review the appeal or to ratify the county committee’s decision by summarily denying review of the appeal.
This bill would no longer authorize appeals of an action by the county committee on school district organization disapproving a petition to transfer territory to the state board for an appeal filed after July 1, 2020.
(11) For the 1990–91 fiscal year and each fiscal year thereafter, existing law requires 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 2019–20 fiscal years, inclusive.
This bill would also make that provision inapplicable to the 2020–21 fiscal year.
(12) Existing law requires, not later than May 1 of each fiscal year, county superintendents of schools to provide for an audit of all funds under their jurisdiction. Existing law also requires the governing board of each local educational agency to either provide for an audit of the books and accounts of that agency or to make arrangements with the county superintendent of schools having jurisdiction over that agency to provide for that auditing, as specified. Existing law requires that a contract to perform the audit of a local educational agency with a disapproved budget, negative certification, or finding of a lack of going concern receive the approval of the county superintendent of schools and the governing board.
This bill, notwithstanding the provision referenced above, would, among other things, require a local educational agency to provide for the required audit for the 2019–20 fiscal year by July 15, 2020, or, if the local educational agency fails to provide for an audit by that date, for the county office of education having jurisdiction over that agency to provide for that audit by July 31, 2020, as specified.
(13) The Classroom Instructional Improvement and Accountability Act, an initiative approved by the voters as Proposition 98 at the November 8, 1988, statewide general election, amended the California Constitution to, among other things, set forth a formula for computing the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts based on one of 3 tests in any given fiscal year.
Commencing with the 2021–22 fiscal year, this bill would require an appropriation to be made from the General Fund in the annual Budget Act for the support of elementary and secondary public schools and community colleges to supplement funding appropriated pursuant to Proposition 98 annually in an amount equal to 1.5% of total General Fund revenues, as calculated pursuant to Proposition 98, until the sum of the supplemental appropriations equals $12,366,107,000.
(14) Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires certain components of funding to be adjusted for inflation in each fiscal year, as specified.
This bill, notwithstanding those specified inflation adjustments, would require those inflation adjustments for the 2020–21 fiscal year to instead be zero.
(15) Existing law requires the governing board of each school district, except as otherwise specifically provided by law, to use all money apportioned to the school district from the State School Fund during any fiscal year exclusively for the support of the school or schools of the school district for that year.
This bill would expand that requirement to charter schools and county offices of education, and would prohibit school districts, charter schools, and county offices of education from expending funds provided in satisfaction of the state’s minimum funding obligation to school districts and community college districts pursuant to the California Constitution for courses or instruction offered by private or public colleges or universities beyond that permitted in pursuit of a high school diploma, except for courses or instruction in which pupils are enrolled in before July 1, 2020. To the extent these provisions add additional duties on local educational agencies, the bill would impose a state-mandated local program.
(16) Existing law places various requirements on county superintendents of schools in reviewing and determining whether a school district’s 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.
The bill would revise certain requirements on county superintendents of schools regarding determinations of fiscal distress for school districts, and would require a county superintendent of schools to send a written notice of going concern determination under certain circumstances.
(17) Existing law provides for a specified annual funding increase for special education and childcare and development programs if an inflation or cost-of-living adjustment is not otherwise provided for those programs.
This bill would suspend that annual funding increase for childcare and development programs for the 2020–21 fiscal year.
(18) Existing law requires local educational agencies to meet specified minimum requirements for the number of instructional minutes offered during a schoolday, instructional minutes offered during a school year, and instructional days offered in a school year.
This bill, for the 2020–21 school year, would waive the minimum requirements for instructional minutes offered during the school year and would authorize a local educational agency to meet the minimum requirements for instructional minutes offered during a schoolday and for instructional days offered in the 2020–21 school year through in-person instruction or a combination of in-person instruction and distance learning, as provided.
The bill would require a local educational agency that offers distance learning during the 2020–21 school year to comply with specified requirements. The bill would require local educational agencies to document pupils’ participation on each schoolday for which distance learning is provided and to regularly communicate with parents and guardians regarding a pupil’s academic progress. The bill would require the Superintendent of Public Instruction to withhold a portion of a local educational agency’s funding apportionments for failing to offer the minimum number of instructional days in the 2020–21 school year. To the extent these provisions impose additional requirements on school districts, county offices of education, and charter schools, the bill would create a state-mandated local program.
(19) Existing law requires, on or before July 1, 2014, governing boards of school districts and county boards of education to adopt a local control and accountability plan, as provided. Existing law requires charter schools, on or before July 1, 2015, and each year thereafter, to adopt a local control and accountability plan to update the goals and annual actions to achieve those goals identified in the charter petition, as provided.
This bill would provide that school districts, county boards of education, and charter schools are not required to adopt a local control and accountability plan for the 2020–21 school year. The bill instead would require the governing board of a school district, a county board of education, and the governing body of a charter school to adopt a learning continuity and attendance plan by September 30, 2020. The bill would require the Superintendent, in consultation with the State Board of Education, to develop a template for the learning continuity and attendance plan on or before August 1, 2020, as provided. The bill would require the learning continuity and attendance plan to include specified information about the instruction the school district, county office of education, or charter school will provide to pupils in the 2020–21 school year. By requiring school districts, county offices of education, and charter schools to adopt a learning continuity and attendance plan, the bill would impose a state-mandated local program.
(20) Existing law establishes the Commission on Teacher Credentialing to, among other duties, establish standards for the issuance and renewal of credentials, certificates, and permits. A regulation issued by the commission requires that, for each examination score used to satisfy a requirement for the issuance of a credential, certificate, permit, or waiver, no more than 10 years may elapse between the date the score was earned and the issuance date of the credential, certificate, permit, or waiver for which the examination score was used.
This bill would extend the time of validity of examination scores used to satisfy a requirement for the issuance of a credential, certificate, permit, or waiver pursuant to the regulation referenced above to 11 years for any score used to satisfy a requirement from March 19, 2020, to June 30, 2021, inclusive.
(21) Existing law sets the minimum requirements for the services credential with a specialization in pupil personnel services as a baccalaureate or higher degree from an approved institution, a 5th year of study, and any specialized and professional preparation required by the Commission on Teacher Credentialing, including completion of a commission-approved program of supervised field experience. Specified regulations issued by the commission require this field experience to take place in at least 2 settings.
This bill would reduce the requirement for the field practice assignment for a pupil personnel services credential to take place in 2 or more school settings to one school setting from March 19, 2020, to June 30, 2021, inclusive.
(22) Existing law authorizes the governing board of a school district to terminate the services of any permanent or probationary certificated employees of the school district, including employees holding a position that requires an administrative or supervisory credential, during the time period between 5 days after the enactment of an annual Budget Act and August 15 of the fiscal year to which the Budget Act applies if the governing board of the school district determines that its total revenue limit per unit of average daily attendance for the fiscal year of that Budget Act has not increased by at least 2%, and if the governing board of the school district determines it is therefore necessary to decrease the number of permanent employees in the school district.
This bill would make that provision inoperative from July 1, 2020, to July 1, 2021, inclusive, except to authorize a certificated employee of a school district holding a position that requires an administrative or supervisory credential to be terminated pursuant to that provision.
(23) Existing law establishes a governing board to establish and administer a unit known as the County Office Fiscal Crisis and Management Assistance Team. Among other duties, this unit provides fiscal management assistance, at the request of any school district, charter school, county office of education, or community college district. Existing law requires the unit to request and review applications to establish regional teams of education finance experts throughout the state.
This bill would delete the requirements relating to establishing regional teams. The bill would require the unit to post certain rate information and training calendars on the unit’s internet website.
(24) Existing law requires the withholding of apportionments and the imposition of fiscal penalties for school districts and county offices of education that fail to comply with the requirements for at least a minimum number of days of instruction and instructional minutes in a school year.
This bill would apply those provisions to a county office of education that operates a special day class or special day classes, except if those classes operate in a county community school or a juvenile court school.
(25) Existing law expressly states that charter schools and entities managing charter schools are subject to, except as specified, (A) the Ralph M. Brown Act, unless the charter school is operated by an entity governed by the Bagley-Keene Open Meeting Act, in which case the charter school is subject to the Bagley-Keene Open Meeting Act, (B) the California Public Records Act, (C) certain provisions prohibiting certain public officials, including, but not limited to, state, county, or district officers or employees, from being financially interested in any contract made by them in their official capacity or by any body or board of which they are members, and (D) the Political Reform Act of 1974.
This bill would prohibit the State Board of Education from waiving the above-described requirements.
(26) The Charter Schools Act of 1992 authorizes the establishment and operation of charter schools. Existing law authorizes a charter school that established a schoolsite outside the boundaries of the chartering authority before January 1, 2020, or that established a resource center, meeting space, or other satellite facility outside the boundaries of the school district in which the charter school is located before January 1, 2020, to continue to operate that site if the charter school satisfies specified requirements, in which case existing law requires the State Department of Education to regard the charter school as a continuing charter school.
This bill would require a charter school, in order to be regarded as a continuing charter school, to notify the department by May 15 before the fiscal year in which the charter school is to be regarded as a continuing charter school, in a format to be established by the Superintendent. The bill would require a petition for the ongoing operation of a continuing charter school to be effective before the date instruction begins for the current fiscal year. The bill would require a continuing charter school to commence instruction within the first 3 months of the fiscal year beginning July 1 of the year the petition is effective. By imposing new duties on charter schools, the bill would create a state-mandated local program. The bill would make various changes to state funding calculations for purposes of continuing charter schools.
The bill would also make revisions to provisions of the act regarding (A) exemptions from geographic restrictions for certain charter schools located on a federally recognized California Indian reservation or rancheria or operated by a federally recognized California Indian tribe, (B) the denial of a charter petition because the school district is not positioned to absorb the fiscal impact of the proposed charter school, (C) the appeals process when the governing board of a school district denies a charter petition, and (D) material revisions during the petition review process. The bill would authorize a charter school that is scheduled to open, or pursuant to its petition will add grade levels, in the 2020–21 school year to delay opening or adding grade levels for one year without requesting a material revision to its charter petition, as provided.
(27) Existing law authorizes a school district or charter school to maintain a transitional kindergarten program. Existing law requires, as a condition of receipt of apportionment for pupils in a transitional kindergarten program pursuant to the statutory methods of calculating average daily attendance, that a school district or charter school ensure that credentialed teachers who are first assigned to a transitional kindergarten classroom on or after July 1, 2015, have, by August 1, 2020, met one of 3 designated criteria establishing qualification for the position.
This bill would delay until August 1, 2021, the deadline for a credentialed teacher first assigned to a transitional kindergarten classroom on or after July 1, 2015, to meet one of the designated criteria referenced above.
(28) Existing law requires the Superintendent of Public Instruction to award a State Seal of Biliteracy. Existing law provides that the State Seal of Biliteracy certifies attainment of a high level of proficiency by a graduating high school pupil in one or more languages, in addition to English, and certifies that the graduate meets specified criteria, including, among other criteria, that proficiency in a language other than English is demonstrated through one of several designated methods.
This bill would provide that, notwithstanding the designated requirements for the State Seal of Biliteracy referenced above, for those pupils on track to graduate in 2020 or 2021, who were unable to take the assessments identified in existing law, or who did not receive a letter grade in English language arts, the Superintendent may provide alternatives to demonstrating attainment of a high level of proficiency in one or more languages in addition to English.
(29) Existing law requires, on or before March 31, 2014, the State Board of Education to adopt templates for use by school districts, county superintendents of schools, and charter schools for purposes of the local control and accountability plans.
This bill would require the template adopted by the state board to require the inclusion of specified information relating to stakeholder engagement, as provided. The bill would require, on or before January 31, 2022, the instructions developed by the state board to require certain school districts, county offices of education, and charter schools to include a goal in their respective local control and accountability plan focused on improving the performance of pupil subgroups or focused on addressing the disparities in performance at certain schools within a school district or county office of education, as applicable. To the extent the bill would require school districts, county boards of education, and charter schools to include additional information in their local control and accountability plans, the bill would impose a state-mandated local program. The bill would exempt from the Administrative Procedure Act revisions to the template to implement these provisions and other legislation passed during the 2019–20 Regular Session.
(30) Existing law establishes the California Collaborative for Educational Excellence for purposes of advising and assisting school districts, county superintendents of schools, and charter schools in achieving the goals set forth in a local control and accountability plan. Existing law requires the State Department of Education, in consultation with the executive director of the State Board of Education and with the approval of the Department of Finance, to contract with a local educational agency, or consortium of local educational agencies, to serve as the administrative agent for the collaborative. Existing law requires the Superintendent of Public Instruction to apportion funds appropriated for the collaborative to the administrative agent.
This bill would remove that requirement on the Superintendent.
(31) Existing law establishes the Bilingual Teacher Professional Development Program, administered by the State Department of Education in consultation with the Commission on Teacher Credentialing, for teachers seeking to provide instruction in bilingual and multilingual settings. Existing law requires the department to issue a minimum of 5 grants to applicants through a competitive process and to allocate grant funding to eligible local educational agencies for purposes of providing professional development services to teachers or paraprofessionals. Existing law requires grant recipients to report specified information related to the program to the department by January 1, 2021.
This bill would instead require grant recipients to provide a final report containing specified information related to the program to the department by January 1, 2022. The bill would also provide that the project performance period for the grant would be January 1, 2018, to June 30, 2021, inclusive.
(32) Existing law requires the State Board of Education to adopt a state master plan for services to migrant children. Existing law also requires the Superintendent of Public Instruction to take the steps necessary to ensure effective parental involvement throughout the state migrant education program, which include establishing a statewide parent advisory council, as specified, to participate in the planning, operation, and evaluation of the state migrant education program. Existing law requires the Superintendent to sponsor a biennial State Parent Advisory Council Conference. Existing law also authorizes the Superintendent to sponsor regional conferences to take the place of the state conference if the Superintendent determines that regional conferences will increase parent participation. Existing law requires the statewide parent advisory council to prepare and submit a report to the Legislature, the state board, the Superintendent, and the Governor regarding the status of the migrant education program every 3 years.
This bill would suspend all requirements for 2020 nominations and elections to parent advisory councils until September 1, 2020. The bill would require parent advisory councils and the State Parent Advisory Council to meet at least 3 times in the 2020 calendar year. The bill would provide that the Superintendent is not required to sponsor a biennial State Parent Advisory Council Conference in the 2020 calendar year.
(33) Existing law requires each operating agency receiving federal Title I Migrant Education funding to conduct summer school programs for eligible migrant children in kindergarten and grades 1 to 12, inclusive. Existing law requires these summer school programs to be funded, to the extent that funds are available, by federal funds earmarked for migrant education programs, and to meet designated criteria, including minimum time requirements. Existing law also requires each school district, county office of education, and community college district, upon request, to make facilities available at cost for the operation of migrant summer school programs whenever they are available.
This bill would instead provide that school districts, county offices of education, and community college districts that have closed their facilities due to the COVID-19 pandemic are not required to make facilities available for migrant summer school programs in the 2020 calendar year. The bill would authorize summer school programs required by these provisions to be offered through distance learning for the 2020 calendar year. The bill would waive the minimum minute requirements for the 2020 calendar year, but would encourage local educational agencies to offer the minimum instructional minute requirements to the extent practicable for the 2020 calendar year.
(34) Existing law requires a school district to submit to the Superintendent of Public Instruction a local plan for the education of all individuals with exceptional needs either on its own, in conjunction with one or more school districts, or with the county office of education, as specified. Existing law requires, commencing July 1, 2021, each local plan to include an annual assurances support plan, as provided.
This bill would instead require each local plan to include an annual assurances support plan commencing July 1, 2023. The bill would prohibit, from July 1, 2020, to July 1, 2024, inclusive, a school district from submitting a local plan on its own. The bill would prohibit certain local plan requirements from being waived under existing law.
(35) Existing law requires local educational agencies to identify, locate, and assess individuals with exceptional needs and to provide those pupils with a free appropriate public education in the least restrictive environment, with special education and related services as reflected in an individualized education program.
This bill would require the individualized education program for a pupil with exceptional needs to include a description of the means by which the individualized education program will be provided under emergency conditions, as specified, in which instruction or services, or both, cannot be provided to the pupil either at the school or in person for more than 10 school days, as specified. By imposing additional requirements on local educational agencies, the bill would impose a state-mandated local program.
(36) Existing law requires the State Department of Education to jointly convene with the State Department of Developmental Services and the State Department of Health Care Services one or more workgroups that include specified representatives for specified purposes, including improving the transition of 3-year-old children with disabilities from regional centers to local educational agencies. Existing law requires, on or before October 1, 2020, the workgroups to provide the chairs of the relevant policy committees and budget subcommittees of the Legislature and the Department of Finance with specified recommendations.
This bill would extend the deadline by which those recommendations are required to be submitted from October 1, 2020, to October 1, 2021, inclusive, and would require the recommendations to be provided as part of a final report. The bill would require the workgroups, on or before October 1, 2020, to provide the chairs of the relevant policy committees and budget subcommittees of the Legislature and the Department of Finance with a progress report containing specified information.
(37) Existing law requires the Superintendent, commencing with the 2004–05 fiscal year and each fiscal year thereafter, to the extent there is an appropriation in the annual Budget Act for purposes of educationally related mental health services, to allocate funds per unit of average daily attendance to special education local plan areas.
This bill would require the Superintendent, commencing with the 2020–21 fiscal year and each fiscal year thereafter, to the extent there is an appropriation of federal funds or a General Fund appropriation in the annual Budget Act for purposes of educationally related mental health services or mental health-related services, respectively, to allocate funds to a special education local plan area per unit of average daily attendance reported for the special education local plan area for the 2019–20 fiscal year.
(38) Existing law provides for the calculation of apportionments to fund the provision of special education instruction and services for pupils who qualify for these programs. Existing law requires the Superintendent of Public Instruction to make specified calculations in each fiscal year to determine the amount of funding provided to each special education local plan area and to determine the statewide target amount of funding per unit of average daily attendance.
This bill would make those provisions inoperative on July 1, 2020. The bill would instead require the Superintendent, for the 2020–21 fiscal year, to calculate the amount of funding per unit of average daily attendance for each special education local plan area as either $625 per unit of average daily attendance or the amount of funding per unit of average daily attendance the special education local plan area received in the 2019–20 fiscal year, whichever is greater. The bill would require the Superintendent, for the 2021–22 fiscal year and each fiscal year thereafter, to calculate the amount of funding per unit of average daily attendance for each special education local plan area as either $625 per unit of average daily attendance, as adjusted annually by a specified inflation factor, or the amount of funding per unit of average daily attendance the special education local plan area received in the 2019–20 fiscal year, whichever is greater. The bill would revise various other special education funding calculations and would make related clarifying and conforming changes.
(39) Existing law requires the Superintendent, commencing with the 2004–05 fiscal year and each fiscal year thereafter, to make certain calculations for, and the State Department of Education to apportion certain amounts to, special education local plan areas, as provided, for children and youth residing in foster family homes, small family homes, foster family agencies, group homes, skilled nursing facilities, intermediate care facilities, and community care facilities. Existing law requires the department to calculate an out-of-home care funding amount for each special education local plan area, as provided, for each fiscal year. Existing law, for purposes of the out-of-home care funding amount for group homes, foster family homes, small family homes, and foster family agencies in the 2017–18, 2018–19, and 2019–20 fiscal years, requires the Superintendent to use the data received from the State Department of Social Services that was used for the funding for the 2016–17 fiscal year.
This bill would require the Superintendent to also use the data that was used for the funding for the 2016–17 fiscal year for purposes of the out-of-home care funding amounts for the 2020–21 and 2021–22 fiscal years.
(40) Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined. Existing property tax law also reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to, among other entities, special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 fiscal year, that the amounts of property tax revenue deemed allocated in the prior fiscal year to certain special districts be reduced by 35%, not to exceed 10% of a district’s total annual revenues for the 1989–90 fiscal year, as reported in a specified publication of the Controller. Existing law requires that the revenues that are not allocated to these special districts as a result of these reductions be transferred to the county Educational Revenue Augmentation Fund (ERAF) for allocation to school districts, community college districts, and the county office of education.
The bill would require the Controller to issue, on or before December 31, 2020, guidance to counties for implementation of allocating ERAF revenues, as provided. Commencing with the 2019–20 fiscal year, if a county auditor-controller fails to allocate ERAF revenues in accordance with the guidance provided by the Controller, the bill would authorize the Controller to request a writ of mandate to require the county auditor-controller to immediately perform this duty, as provided.
(41) Existing law provides for various programs, responsibilities, services, and systems relating to childcare and childhood development that are administered by the State Department of Education and the Superintendent of Public Instruction, including, among other programs, alternative payment programs, CalWORKs Stage 2 and Stage 3 childcare, general childcare and development programs, migrant childcare and development programs, childcare for children with severe disabilities, Head Start programs, and specified grant programs.
This bill, effective July 1, 2021, would transfer those programs, responsibilities, services, and systems from the State Department of Education and the Superintendent to the State Department of Social Services. The bill would vest the State Department of Social Services with all the powers, functions, duties, responsibilities, obligations, liabilities, and jurisdiction of those programs, responsibilities, services, and systems and would authorize the department to enter into memoranda of understanding or interagency agreements or contracts with the California Health and Human Services Agency, its other departments and offices, the State Department of Education, and any other state agency, department, or office, as necessary to implement the transfer of those programs, responsibilities, services, and systems. The bill would provide that any law governing those transferred programs, responsibilities, services, or systems that refer to the State Department of Education or to the Superintendent would be construed to be to the State Department of Social Services. The bill would require the Governor to, on or before July 1, 2021, establish the position of Deputy Director of Child Development within the State Department of Social Services, as an exempt position, to be appointed by the Governor, subject to confirmation by the Senate, and who holds office at the pleasure of the Governor.
(42) Existing law appropriates, for the 2017–18 fiscal year, $10,000,000 from the General Fund to the State Department of Social Services in order to provide additional services for refugee pupils and unaccompanied undocumented minors by allocating funding to school districts impacted by significant numbers of refugee pupils, other eligible populations served by the federal Office of Refugee Resettlement, and unaccompanied undocumented minors using a formula to be developed by the department based upon the refugee and unaccompanied undocumented minor arrivals in a school district during the preceding 60-month period for which the department has data.
This bill would, subject to an appropriation of funds for this purpose in the annual Budget Act, require the State Department of Social Services to administer the California Newcomer Education and Well-Being Program to similarly provide services for refugees, unaccompanied undocumented minors, and immigrant families, as those terms are defined, by allocating funding to school districts, as specified. The bill would also require the department to contract to conduct a formal evaluation of those provided services.
(43) The Budget Act of 2019 appropriates $15,746,000 to allocate to each school district maintaining a secondary school or county superintendent of schools that offers adult education classes for adults in correctional facilities, as provided.
This bill would reduce that appropriation by $9,765,000.
(44) The Budget Act of 2019 appropriates $913,446,000 for the support of local educational agencies participating in California state preschool programs, as provided.
This bill would reduce that appropriation by $110,388,000.
(45) The Budget Act of 2019 appropriates $517,572,000 for the support of non-local educational agencies participating in California state preschool programs, and specifies that $31,400,000 of that amount is available beginning April 1, 2021, to provide 10,000 additional full-day state preschool slots to non-local educational agencies.
This bill would reduce the appropriation to $486,172,000 and would remove the provision specifying that $31,400,000 is available beginning April 1, 2021, to provide 10,000 additional full-day state preschool slots to non-local educational agencies.
(46) Existing law requires the governing board of a school district to report to the Superintendent of Public Instruction during each fiscal year the average daily attendance of the school district for all full school months, and describes the period between July 1 and April 15, inclusive, as the “second period” report for the second principal apportionment. Existing law requires a county superintendent of schools to report the average daily attendance for the school and classes maintained by the county superintendent and the average daily attendance for the county school tuition fund.
For local educational agencies that comply with Executive Order No. N–26–20, existing law specifies that for purposes of attendance claimed for apportionment purposes pursuant to the provision described above, for the 2019–20 school year average daily attendance reported to the State Department of Education for the second period and the annual period for local educational agencies only includes all full school months from July 1, 2019, to February 29, 2020, inclusive.
This bill would extend the latter provision to local educational agencies that are not subject to closure due to COVID-19. The bill, notwithstanding those provisions, would authorize local educational agencies to claim apportionment for extended school year services for pupils with disabilities offered through distance learning for the summer of 2020, as defined, if certain conditions are met, as provided.
(47) Existing law authorizes the governing board of a school district or community college district to lay off or terminate classified employees for, among other reasons, lack of work or lack of funds.
This bill, from July 1, 2020, to June 30, 2021, inclusive, would prohibit the governing board of a school district, county office of education, community college district, or joint powers authority from terminating the services of laying off or releasing any permanent or probationary classified employees of the school district, county office of education, community college district, or joint powers authority because of a lack of funds or a lack of work, if the classified employees either who hold classifications in, or are assigned to positions in, nutrition, transportation, or custodial services.
(48) Existing law appropriates $100,000,000 from the General Fund to the Superintendent of Public Instruction to be apportioned to certain local educational agencies on the basis of average daily attendance for purposes of purchasing personal protective equipment, or paying for supplies and labor related to cleaning schoolsites, or both.
This bill would revise the calculation of average daily attendance for certain local educational agencies, revise the minimum amount a local educational agency is required to receive, and expand the purposes for which the moneys may be spent.
(49) The After School Education and Safety Program Act of 2002, an initiative statute approved by the voters as Proposition 49 at the November 5, 2002, statewide general election, establishes the After School Education and Safety (ASES) Program under which participating public schools receive grants to operate before and after school programs serving pupils in kindergarten or any of grades 1 to 9, inclusive. Under existing law, the ASES Program includes specified requirements relating to a program’s hours of operation and pupil-to-staff ratio. Existing law also specifies the funding rates for programs receiving grants and requires the State Department of Education to adjust the funding amount for a program based on its attendance, as provided.
Existing law establishes the 21st Century High School After School Safety and Enrichment for Teens (High School ASSETs) program to create incentives for establishing after school enrichment programs to provide academic support and safe, constructive alternatives for high school pupils in the hours after the regular schoolday and to support college and career readiness. Existing law requires the department to adjust the funding amount for a program based on its attendance, as provided.
This bill would authorize the department, during the 2020–21 school year, to waive the above-described provisions relating to an ASES program’s hours of operation and pupil-to-staff ratio, and to waive the required funding adjustments for the ASES and High School ASSETs programs. The bill would authorize the department, during the 2020–21 school year, to prorate the funding rates for programs receiving ASES grants operating for more than 3 hours per day, up to 6 hours per day.
(50) If the Superintendent of Public Instruction and the Director of Finance concur that repayment in the current fiscal year of $2,339,317 by the Guerneville Elementary School District for the 2018–19 fiscal year would constitute a severe financial hardship for that school district, the bill would authorize the Superintendent and the Director of Finance to establish a plan of equal annual payments over a period of up to 5 fiscal years, as provided.
(51) The Leroy F. Greene School Facilities Act of 1998 establishes a program in which the State Allocation Board is required to provide state per-pupil funding for new construction and modernization of school facilities. The act requires the board to require applicant school districts that receive funding under the act to establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings and to agree to deposit minimum amounts into the restricted account based on certain calculations. Existing law excludes certain moneys appropriated for the State Teachers’ Retirement System and the Public Employees’ Retirement System for the 2018–19 fiscal year from counting for purposes of those calculations.
This bill would expand that exclusion to include certain moneys appropriated for the State Teachers’ Retirement System and the Public Employees’ Retirement System regardless of fiscal year from counting for purposes of those calculations.
(52) Existing law requires each school district that has one or more pupils who are English learners, and, to the extent required by federal law, each county office of education and charter school, to assess the English language development of each pupil in order to determine the level of proficiency. Existing law requires the procedures developed by the State Department of Education to determine whether to reclassify a pupil as proficient in English to use multiple criteria, including assessment of language proficiency using an objective assessment instrument, as specified. Regulations issued by the department govern the timing of the administration of this assessment.
This bill, notwithstanding these provisions, would authorize local educational agencies to administer the summative English proficiency assessment for purposes of reclassification at the beginning of the 2020–21 school year. The bill would require the results of these assessments to be used only for the purpose of determining a pupil’s reclassification from English learner to English proficient, and would require that they be completed by October 30, 2020.
(53) Existing law requires the State Department of Education to develop and maintain the California School Dashboard for publicly reporting local educational agency performance data.
This bill would prohibit the department from publishing the California School Dashboard in 2020 and from identifying a local educational agency during the 2020–21 school year for the technical assistance or intervention process based on the performance criteria used for the California School Dashboard.
(54) Existing law appropriates specified moneys to the State Department of Education in the 2018–19 fiscal year for purposes of adult education classes for adults in correctional facilities and special education.
This bill would make those moneys available for encumbrance until November 30, 2021. By extending the period of time during which an existing appropriation may be encumbered, the bill would make an appropriation.
(55) This bill would appropriate $1,000,000 from the General Fund to the Superintendent of Public Instruction for allocation to the Southern California Regional Occupational Center for instructional and operating costs for the 2020–21 fiscal year, and would condition the receipt of this money on the Southern California Regional Occupational Center submitting an updated operational plan to the Department of Finance and the Legislative Analyst’s Office.
(56) This bill would appropriate $355,227,000 from the Federal Trust Fund, $4,439,844,000 from the Coronavirus Relief Fund, and $539,926,000 from the General Fund to the Superintendent of Public Instruction for allocation in the 2020–21 fiscal year to eligible local educational agencies, as defined, in accordance with prescribed methodologies to be used for activities that directly support pupil academic achievement and mitigate learning loss related to COVID-19 school closures, as provided.
(57) This bill would appropriate $50,000,000 from the General Fund to the State Department of Education on a one-time basis to administer the Early Literacy Support Block Grant. The bill would require the department to award grants to local educational agencies with the 75 schools that have the highest percentage of pupils in grade 3 scoring at the lowest achievement standard level on the state summative assessment in English language arts and also meet other specified conditions. The bill would require a local educational agency to conduct a root cause analysis and needs assessment, as provided, and to develop a literacy action plan to include, among other things, the local educational agency’s goals and actions to improve literacy instruction.
The bill would appropriate $3,000,000 from the General Fund to the department to establish an expert lead in literacy within the statewide system of support, as provided. The bill would require the expert lead in literacy to assist local educational agencies eligible for grants authorized by the Early Literacy Support Block Grant and to create professional learning networks to help build statewide capacity among local educational agencies in implementing effective literacy instruction and support programs.
(58) The Community Redevelopment Law authorized the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved redevelopment agencies as of February 1, 2012, and provides for the designation of successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law requires a successor agency to, among other things, continue to make payments due for enforceable obligations, remit unencumbered balances to the county auditor-controller for distribution, and dispose of assets, as directed.
This bill would, on or before June 30, 2021, appropriate an amount to be determined by the Director of Finance from the General Fund to the Superintendent of Public Instruction in augmentation of a certain item in the Budget Act of 2020. The bill would make these funds available only to the extent that revenues distributed to local educational agencies for special education programs from successor agencies are less than the estimated amount determined by the Director of Finance. The bill would require, on or before June 30, 2021, the Director of Finance to determine if the revenues distributed to local educational agencies for special education programs from successor agencies exceed the estimated amount reflected in the Budget Act of 2020 and, if so, would require the Director of Finance to reduce the specified appropriation in the Budget Act of 2020 by the amount of that excess.
(59) This bill would appropriate $450,000 from the General Fund to the State Department of Education for the 2020–21 fiscal year to support the alignment and integration of online platforms supporting the California School Dashboard, the local control and accountability plan electronic template system, and the school accountability report card, as provided.
(60) This bill would appropriate $45,000,000 from the Federal Trust Fund (Elementary and Secondary School Emergency Relief Fund) to the Superintendent of Public Instruction to establish and administer the California Community Schools Partnership Program to award grants on a competitive basis to selected school districts, county offices of education, and charter schools, excluding nonclassroom-based charter schools, to support and expand existing community schools, as specified.
(61) This bill would appropriate $112,231,000 in federal funding to the State Department of Education to reimburse local educational agencies for costs relating to the provision of school meals incurred as a result of the COVID-19 pandemic emergency in the 2019–20 and 2020–21 fiscal years. The bill would require the department, if other federal funding for child nutrition programs is made available for this purpose, to instead allocate the appropriated amount to local educational agencies for activities that directly support pupil academic achievement and mitigate learning loss related to COVID-19 school closures.
(62) This bill would require the department and the California Collaborative for Educational Excellence, with approval from the executive director of the State Board of Education, to designate by September 1, 2020, an applicant county office of education to administer the California Dyslexia Initiative, which the bill would establish. The bill would appropriate $4,000,000 from the General Fund to the Superintendent to allocate to the designated county office of education for the initiative.
(63) This bill would appropriate $4,248,000 from the General Fund to the department for the 2020–21 fiscal year for allocation to the Kern County superintendent of schools for the County Office Fiscal Crisis and Management Assistance Team for the Standardized Account Code Structure system replacement project.
(64) This bill would appropriate $750,000 to the department for allocation to the Sacramento County superintendent of schools to develop, under the direction of the executive director of the State Board of Education, draft distance learning curriculum and instructional guidance for mathematics, English language arts, and English language development, as provided. The bill would require the state board to adopt the distance learning curriculum and instructional guidance by May 31, 2021.
(65) This bill would appropriate $60,000,000 from the General Fund to the department for the 2020–21 fiscal year for the Classified School Employee Summer Assistance Program, and would make these funds available for encumbrance until June 30, 2025.
(66) This bill would appropriate $200,000 from the General Fund to the State Department of Education for the 2020–21 fiscal year to support the Young People’s Task Force. The bill would require the Superintendent of Public Instruction, in consultation with the President of the State Board of Education, or the president’s designee, to convene a Young People’s Task Force to develop guidance to promote culturally competent interactions between school resource officers and young people on school campuses, contingent on the later enactment of legislation during the 2019–20 Regular Session prescribing the duties of the task force.
(67) 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 the statutory provisions noted above, except that specified funding provided for school districts, county offices of education, and charter schools shall be used to directly offset certain of these mandated costs.
(68) Certain 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.
(69) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 313.3 of the Education Code is amended to read:

313.3.
 (a) On or before December 31, 2021, the department shall develop a standardized English language teacher observation protocol for use by teachers in evaluating a pupil’s English language proficiency, as required by paragraph (2) of subdivision (f) of Section 313.
(b) (1) The protocol shall be designed to be used by teachers to evaluate a pupil’s use of English while engaging in academic content learning, including interactive language use with peers.
(2) The protocol shall be designed to allow teachers to assess language practices across a range of proficiency levels in order to help teachers identify pupils’ performance along the continuum of progress toward proficiency in English.
(3) The protocol shall be designed to be used for all English learner pupils, including those who have individualized education programs.
(4) The protocol shall be designed for use by content area teachers at all grade levels, English language development teachers, bilingual teachers, and special education teachers, and shall be designed for ease of use by educators.
(5) The protocol shall be aligned to the English language development standards and the performance levels for the English language development test described in Chapter 7 (commencing with Section 60810) of Part 33 of Division 4 of Title 2.
(c) It is the intent of the Legislature that the protocol additionally be useful to all of the following:
(1) Teachers, as a formative assessment tool for purposes of supporting pupils’ progress toward proficiency in English during the school year.
(2) Teachers’ discussions with parents regarding pupils’ progress toward English language proficiency.
(3) Institutions of higher education in the preparation of new teachers.
(d) (1) In developing this protocol, the department shall consult, at a minimum, with current content area teachers at different grade levels, English language development teachers, bilingual teachers, and special education teachers, and with experts with demonstrated experience in observing and documenting pupil academic language practices and in developing and administering assessments for English learners. The department shall ensure that the majority of individuals with whom it consults are currently teaching, credentialed teachers who regularly instruct English learner pupils.
(2) In developing the protocol, the department shall pilot the protocol with educators and pupils, and refine instruments and guidelines as needed.
(3) The department shall also conduct a validation process to ensure the protocol appropriately assesses the intended target language constructs, demonstrates a meaningful relationship to the performance levels for the English language development test and assessed classroom language use, and reflects pupil progress toward attaining targeted constructs.
(e) The department shall provide guidance to school districts, county offices of education, and charter schools on the use of the protocol.
(f) The department shall develop and make available to school districts, county offices of education, and charter schools professional development tools to train teachers on the use of the protocol. These tools may include, but are not limited to, audio and video samples of English learner pupils’ language use for the purpose of assisting educators using the protocol in calibrating judgments about observed language use.

SEC. 2.

 Section 2572 of the Education Code is amended to read:

2572.
 The product computed pursuant to subdivision (c) of Section 2571 is the amount of property tax revenues to be allocated to special education programs. This amount shall be subtracted pursuant to Section 56836.15.

SEC. 3.

 Section 8209 of the Education Code is amended to read:

8209.
 (a) If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to childcare and development programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in childcare and development programs.
(b) If a state of emergency is declared by the Governor, the Superintendent may waive any requirements of this code or regulations adopted pursuant to this code relating to child nutrition programs in childcare and development programs operated pursuant to this chapter only to the extent that enforcement of the regulations or requirements would directly impede disaster relief and recovery efforts or would disrupt the current level of service in childcare and development programs.
(c) A waiver granted pursuant to subdivision (a) or (b) shall not exceed 45 calendar days.
(d) For purposes of this section, “state of emergency” includes fire, flood, earthquake, or a period of civil unrest.
(e) If a request for a waiver pursuant to subdivision (a) or (b) is for a childcare and development program or child nutrition program that receives federal funds and the waiver may be inconsistent with the state plan or any federal law or regulations governing the program, the Superintendent shall seek and obtain approval of the waiver from the appropriate federal agency before granting the waiver.
(f) (1) From July 1, 2020, to June 30, 2021, inclusive, due to the ongoing impacts of childcare and development facility closures and low child attendance due to the COVID-19 pandemic and related public health directives, the Superintendent shall reimburse a contracting agency for a California state preschool program pursuant to Article 7 (commencing with Section 8235), a general childcare and development program pursuant to Article 8 (commencing with Section 8240), a family childcare home education network pursuant to Article 8.5 (commencing with Section 8245), a migrant childcare and development program pursuant to Article 6 (commencing with Section 8230), or childcare and development services for children with special needs pursuant to Article 9 (commencing with Section 8250) that meets either of the following requirements:
(A) The program operated by the contracting agency opens by September 8, 2020, or within 21 calendar days from the start date of the contracting agency’s 2020–21 program calendar approved by the department, whichever is sooner, and remains open and offering services through the 2020–21 program year.
(B) The program operated by the contracting agency is closed by a local or state public health order due to the COVID-19 pandemic.
(2) Reimbursement pursuant to paragraph (1) shall be 100 percent of the contract maximum reimbursable amount or net reimbursable program costs, whichever is less, pursuant to guidance released by the Superintendent.
(3) A childcare program specified in paragraph (1) that is physically closed pursuant to subparagraph (B) of paragraph (1) due to the COVID-19 pandemic, but funded to be operational, shall provide distance learning services as specified by the Superintendent. A contractor specified in paragraph (1) shall submit a distance learning plan to the department pursuant to guidance from the Superintendent.

SEC. 4.

 Section 8227.7 of the Education Code is amended to read:

8227.7.
 (a) Commencing July 1, 2020, alternative payment programs shall provide notice to a childcare provider of a change in reimbursement amounts for childcare services, a change in the hours of care, rates, or schedules, an increase or decrease in parent fees, or a termination of services, including, but not limited to, a family’s change in provider. For purposes of this section, the notice shall occur either electronically, if requested by the childcare provider, or via the United States Postal Service. The alternative payment program shall provide the notice, as well as the effective date of any change described above, on the same day a notice of action is issued to a family.
(b) The notification shall not be deemed a violation of the parent’s confidentiality but as a method to ensure the proper administration of subsidy funds.

SEC. 5.

 Section 8227.8 is added to the Education Code, to read:

8227.8.
 An alternative payment agency, including, but not limited to, an alternative payment agency for migrant childcare and development programs pursuant to Article 6 (commencing with Section 8230), shall provide to the department, on a monthly basis, data about childcare caseload in the alternative payment program pursuant to Article 3 (commencing with Section 8220) and migrant childcare and development programs pursuant to Article 6 (commencing with Section 8230). This data shall include county-by-county caseload, expenditures, unit costs, family fees, and other key variables requested by the department to determine any additional state allocations to these programs and for purposes of emergency response.

SEC. 6.

 Section 8280 of the Education Code is amended to read:

8280.
 (a) The Superintendent shall administer the Early Learning and Care Infrastructure Grant Program to expand access to early learning and care opportunities for children up to five years of age by providing resources to build new facilities or retrofit, renovate, or expand existing facilities pursuant to this section.
(b) Notwithstanding any other law, the Child Care Facilities Revolving Fund shall remain operative for the sole purpose of collecting deposits derived from the Child Care Facilities Revolving Fund program pursuant to Section 8278.3.
(1) The Superintendent shall deposit all revenue derived from the lease payments or renovation or repair loan payments into the Child Care Facilities Revolving Fund until December 31, 2029.
(2) Local educational agencies and contracting agencies using facilities purchased with funds pursuant to Section 8278.3 before December 31, 2019, shall be charged a leasing fee, either at 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 local educational agency or contracting agency. Loans for renovation or repair shall be repaid within a period that does not exceed 10 years.
(3) As of December 31, 2019, the remaining balance of the Child Care Facilities Revolving Fund shall be allocated as follows:
(A) The sum of ten million dollars ($10,000,000) shall be transferred to the Inclusive Early Education Expansion Program, pursuant to Section 8492.
(B) Following the transfer pursuant to subparagraph (A), the remaining balance shall be allocated for the purposes described in this section.
(C) Any balance derived from the ongoing deposits of the lease payments or renovation or repair loan payments after December 31, 2019, shall be allocated through the annual Budget Act process.
(c) The Superintendent shall award infrastructure grants on a competitive basis to early learning and care providers that are not local educational agencies, and operate as a licensed childcare center, preschool, or licensed family childcare home for the following purposes:
(1) Construction of new early learning and care facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster.
(2) Renovation, repair, modernization, or retrofitting of existing early learning and care facilities to increase capacity or recover lost capacity as a result of a state or federally declared disaster, or make existing early learning and care facilities more resilient for future natural disasters.
(3) Renovation, repair, modernization, or retrofitting of existing facilities for use as early learning and care facilities.
(4) Renovation, repair, modernization, or retrofitting of existing early learning and care facilities to address health and safety or other licensure needs to the extent the applicant can demonstrate a financial hardship, and that failure to correct the issues would result in an inability to provide care. Funds awarded in this category shall be limited to high-need providers based on criteria established by the Superintendent.
(d) The Superintendent shall require all of the following from applicants for the infrastructure grants:
(1) A proposal to increase capacity and local access to subsidized early learning and care programs for children up to five years of age, including children with exceptional needs. The proposal shall quantify the number of additional children who will be provided with access to subsidized early learning and care programs.
(2) A plan to fiscally sustain the increase in subsidized spaces or programs created through the use of these funds. Subsidies may be funded with private, local, state, or federal funds, but shall be able to demonstrate reasonable expectations of sustainability.
(3) Specific activities and materials for which grant funding will be used.
(4) A description of how the applicant will measure outcomes associated with the proposal submitted pursuant to paragraph (1), as specified by the Superintendent.
(5) An outline of any potential challenges or barriers the applicant will experience or expect to experience in building capacity, including the need for any technical assistance to address the identified challenges or barriers.
(e) The Superintendent shall give priority for grant funding based on the following:
(1) Applicants with a demonstrated need for expanded access to subsidized early learning and care programs as measured by the ratio of children in subsidized early learning and care programs to eligible children in the applicant’s service area.
(2) Applicants in low-income communities, as measured by the proportion of children that qualify for state or federal subsidies for early learning and care programs.
(3) Applicants who plan to use grant funding to serve children that qualify for state or federal subsidies for early learning and care programs.
(4) Applicants serving children from birth to five years of age, inclusive, with exceptional needs in inclusive environments.
(5) Applicants wishing to recover lost capacity as a result of a state or federally declared disaster.
(f) Infrastructure grants may be used for one-time infrastructure costs only, including, but not limited to, universal design facility renovations, retrofitting to meet licensing requirements, the cost of design, engineering, testing, inspections, plan checking, construction management, site acquisition and development, evaluation and response action costs relating to hazardous substances at a new or existing site, demolition, construction, landscaping, or other related costs as determined by the Superintendent.
(g) The Superintendent shall determine the appropriate grant amount for each grantee, based upon factors that include, but are not limited to, the scope of the project, regional costs, the use of universal design to provide inclusive environments, the need to meet licensing requirements or health and safety standards, and the proportion of subsidized children to be served.
(h) The Superintendent shall establish the terms and conditions associated with accepting the infrastructure grant funds awarded pursuant to this section and determine a mechanism for recouping any grant moneys from grantees that do not adhere to those terms and conditions.
(i) The Superintendent shall establish a separate application and grant process for providing grant funds related to paragraph (4) of subdivision (c) that limits grantees to low-income providers who serve a minimum percentage of subsidized children. In establishing this process, the Superintendent shall consult with the State Department of Social Services to ensure grant funds are accessible to the highest need providers and shall consider the timeframe during which health and safety violations are cited and must be resolved.
(j) The grant program shall offer technical assistance to potential applicants before being awarded a grant that includes, but is not limited to, project development support and financial expertise, including assistance with coordinating financing from multiple sources.
(k) Infrastructure grant recipients shall commit to providing program data to the department, as specified by the Superintendent, and participate in overall program evaluation.
(l) (1) There is hereby appropriated two hundred forty-five million dollars ($245,000,000) to the department from the General Fund for the infrastructure grant program established pursuant to this section to be released in the 2019–20 fiscal year.
(2) The Director of Finance may change the release of funds scheduled in paragraph (1), if deemed necessary. The director shall notify the Chairperson of the Joint Legislative Budget Committee, or the chairperson’s designee, of the director’s intent to notify the Controller of the necessity to change the release of funds scheduled in paragraph (1). The total amount released shall not be greater or lesser than the amount appropriated in paragraph (1). The Controller shall make the funds available to the department not sooner than five days after receipt of this notification.
(3) The program established pursuant to this section shall be funded from funds appropriated in this section, funds transferred from the Child Care Facilities Revolving Fund pursuant to Section 8278.3, and federal funds appropriated for this purpose in the Budget Act of 2019. Notwithstanding Section 16304 of the Government Code, of the amount appropriated for this program, the Superintendent shall allocate the funds available for the grants through the 2023–24 fiscal year, in approximately equal amounts each fiscal year as follows:
(A) In the 2019–20 fiscal year, for licensed early learning and care centers that are not local educational agencies, pursuant to this section.
(B) In each fiscal year thereafter, for all licensed early learning and care providers, including licensed family childcare home providers, to the extent the process described in subdivision (n) is complete.
(C) In each fiscal year, up to 5 percent of the amount provided for this program shall be used for the renovation, repair, modernization, or retrofitting of existing early learning and care facilities to address health and safety or other licensure needs pursuant to the process established pursuant to subdivision (i).
(m) Notwithstanding any other provision of this section, the Superintendent, with the concurrence of the executive director of the state board, shall recommend to the Department of Finance and the budget committees of the Legislature by January 1, 2021, any changes to the funding methodology in this section related to the recommendations and priorities provided pursuant to Section 8207.
(n) Before March 1, 2020, the Superintendent, with the concurrence of the Department of Finance, shall establish an appropriate method, process, and structure for grant management, fiscal accountability, and technical assistance and supports for grantees that ensures transparency and accountability in the use of state funds. The Superintendent may set aside up to 5 percent of the total amount appropriated for the program to contract with one or more community development financial intermediaries, state financial entities, or other community-based organizations for these purposes. Beginning in the 2020–21 fiscal year, the Legislature may reassess the total amount set aside for purposes of this subdivision. The Superintendent shall notify the Joint Legislative Budget Committee when this process is established.
(o) For purposes of this section, “state or federally declared disaster” means counties where early learning and care providers are operating subject to a Presidential declaration of an emergency or major disaster, pursuant to the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. Sec. 5121 et seq.), or a Governor’s Proclamation, on behalf of the impacted local government, as authorized by the powers authorized by the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code).
(p) The Superintendent shall provide annual reports, until December 31, 2025, to the Governor and the appropriate policy and fiscal committees of the Legislature on any recommendations for consideration in future budgets, the impact of the grant program in achieving the goals described in this section, recommendations as to whether the program should receive additional appropriations, and any changes that should be considered.
(q) On June 30, 2020, the amounts appropriated and transferred for purposes of this section, with the exception of the funds identified in subparagraph (A) of paragraph (3) of subdivision (b), shall revert to the General Fund.

SEC. 7.

 Section 8280.1 of the Education Code is amended to read:

8280.1.
 (a) The Superintendent shall administer the Early Learning and Care Workforce Development Grants Program to expand the number of qualified early learning and care professionals and increase the educational credentials of existing early learning and care professionals across the state, pursuant to this section.
(b) (1) There is hereby appropriated one hundred fifty million dollars ($150,000,000) to the department from the General Fund for the competitive workforce development grants program established pursuant to this section to be released in the 2019–20 fiscal year.
(2) The Director of Finance may change the release of funds scheduled in paragraph (1), if deemed necessary. The director shall notify the Chairperson of the Joint Legislative Budget Committee, or the chairperson’s designee, of the director’s intent to notify the Controller of the necessity to change the release of funds scheduled in paragraph (1). The total amount released shall not be greater or lesser than the amount appropriated in paragraph (1). The Controller shall make the funds available to the department not sooner than five days after receipt of this notification.
(3) Notwithstanding Section 16304 of the Government Code, of the amount appropriated for this program in this subdivision, the Superintendent shall allocate the funds available for the grants through the 2023–24 fiscal year, in approximately equal amounts each fiscal year.
(c) The Superintendent shall award and administer the workforce development grants to local, regional, or local and regional quality improvement partnerships, as defined by the Superintendent, consistent with the Quality Rating and Improvement System local consortia, as defined in Section 8203.1, representing all counties of the state. A local, regional, or local and regional quality improvement partnership may form a consortia with one or more regional partners. All local, regional, or local and regional quality improvement partnerships shall submit a plan to the department that describes how they will allocate funds and increase the number, qualifications, and competencies of early learning and care professionals in their county or region. The plan shall also describe how local partnerships will engage in collaborative partnerships with their members, local governmental agencies, businesses, nonprofit organizations, or other interested partners to improve the educational attainment of early learning and care professionals in their county or region, including those working in centers, family childcare homes, and license-exempt settings that serve a majority of children who receive subsidized early learning and care services or are eligible to received subsidized early learning and care services, pursuant to this chapter.
(d) Workforce development grant award amounts shall be determined based on the following criteria:
(1) Demonstrated need for early learning and care professionals in each county or region.
(2) The cost of living in each county or region.
(3) The number of children under 13 years of age in each county or region who are in a family whose income is up to 85 percent of the state median income.
(e) Workforce development grants may be used for costs associated with the educational expenses of current and future early learning and care professionals that move those professionals along the early learning and care career lattice and support their attainment of increased education or English language proficiency, as well as professional development in early childhood instruction or child development, including developing competencies in serving children with exceptional needs and dual language learners. Allowable uses of funds include:
(1) Tuition, supplies, and other related educational expenses.
(2) Transportation and childcare costs incurred as a result of attending classes.
(3) Substitute teacher pay for early learning and care professionals that are currently working in a subsidized early learning and care setting.
(4) Stipends and professional development expenses, aligned to the Quality Counts California professional development system in that area, as determined by the Superintendent.
(5) Career, course, and professional development coaching, counseling, and navigation services.
(6) Other educational expenses as determined by the Superintendent.
(f) Local, regional, or local and regional quality improvement partnerships awarded funding pursuant to this section may partner with local or online accredited higher education institutions, local agencies that provide high-quality, credit-bearing trainings, or apprenticeship programs that integrate and embed higher education coursework with on-the-job training of professionals.
(g) The Superintendent may set aside no more than 1 percent of the total funding appropriated for the Early Learning and Care Workforce Development Grants Program to provide technical assistance and support for grantees and potential grantees on developing proposals for and implementing workforce development grants.
(h) Local, regional, or local and regional quality improvement partnerships receiving grants shall commit to providing program data to the department, as specified by the Superintendent, including, but not limited to, recipient information, educational progress, and employment status, and participate in overall program evaluation.
(i) The Superintendent shall provide a report to the Governor as well as the appropriate policy and fiscal committees of the Legislature by October 1, 2020, and annually thereafter through the 2023–24 fiscal year, on the expenditure of funds as well as relevant outcome data in order to evaluate the impact of the program.
(j) The competitive workforce development grants program established pursuant to this section shall be funded from funds appropriated in this section.
(k) Notwithstanding any other provision of this section, the Superintendent, with the concurrence of the executive director of the state board, shall recommend to the Department of Finance and the budget committees of the Legislature by January 1, 2021, any changes to the funding methodology in this section related to the recommendations and priorities provided pursuant to Section 8207.
(l) On June 30, 2020, the amounts appropriated for purposes of this section shall revert to the General Fund.

SEC. 8.

 Section 14002 of the Education Code is amended to read:

14002.
 (a) (1)  Notwithstanding any other law, upon certification of the Superintendent pursuant to Sections 41330, 41332, and 41335, any amount necessary to meet the requirements of programs specified in subdivision (b) during each fiscal year are hereby continuously appropriated from the General Fund to Section A of the State School Fund for allocation by the Controller.
(2) The amounts calculated for the programs specified in subdivision (b) are considered final as of the certification of the second principal apportionment in the fifth succeeding fiscal year, inclusive, of the fiscal year for which the calculation is being made. Final submissions shall be submitted pursuant to procedures and timeframes established by the Superintendent. This paragraph does not apply to a change that is the result of an audit exception, as described in paragraph (2) of subdivision (a) of Section 41341.
(b) Programs included for purposes of this section are all of the following:
(1) Chapter 12.5 (commencing with Section 2574) of Part 2.
(2) Section 41544.
(3) Article 2 (commencing with Section 42238) of Chapter 7 of Part 24 of Division 3 of Title 2.
(4) Section 47663.
(5) Article 7 (commencing with Section 48300) of Chapter 2 of Part 27 of Division 4 of Title 2.
(6) Article 10 (commencing with Section 48350) of Chapter 2 of Part 27 of Division 4 of Title 2.
(c) (1) Notwithstanding subdivision (a), commencing with the 2019–20 fiscal year, if, for an upcoming fiscal year, the total amount necessary to meet the requirements of the programs specified in subdivision (b) is projected to be in excess of 89 percent of the General Fund and Education Protection Account revenues and allocated proceeds of taxes that are necessary to meet the requirements of Section 8 of Article XVI of the California Constitution, excluding appropriations made to the Chancellor of the California Community Colleges for allocation to community college districts, then before the enactment of the annual Budget Act for that fiscal year, the Director of Finance may reduce the following to a percentage equal to or greater than the projected growth rate of the minimum amount necessary to meet the requirements of Section 8 of Article XVI of the California Constitution, but not less than zero:
(A) The adjustments required pursuant to paragraph (4) of subdivision (a) of Section 2574, subparagraph (B) of paragraph (1) of subdivision (c) of Section 2574, subdivision (b) of Section 2575.1, paragraph (2) of subdivision (d) of Section 42238.02, and Section 42287.
(B) The inflation or cost-of-living adjustment otherwise authorized or required for all of the following programs:
(i) Subdivision (b) of Section 8265.
(ii) Subdivision (c) of Section 49536.
(iii) Subdivision (b) of Section 56836.142.
(iv) Subdivision (d) of Section 17581.6 of the Government Code.
(2) The percentage reductions made pursuant to subparagraph (B) of paragraph (1) shall be no less than the percentage reductions made pursuant to subparagraph (A) of paragraph (1).
(3) This subdivision shall not be construed to change the adjustment identified in paragraph (2) of subdivision (d) of Section 42238.02 for a prior fiscal year.
(4) Notwithstanding Section 10231.5 of the Government Code, the Director of Finance shall report to the Legislature, consistent with Section 9795 of the Government Code, before the enactment of the annual Budget Act each fiscal year any amounts or percentages reduced from inflation or cost-of-living adjustments pursuant to paragraph (1) for the upcoming fiscal year.

SEC. 9.

 Section 14041 of the Education Code is amended to read:

14041.
 (a) The Controller shall draw warrants on the State Treasury in favor of the county treasurer of each county in each month of each year in the amounts and manner prescribed in this section so as to provide in each warrant a portion of the total amount certified by the Superintendent as apportioned for programs identified in paragraph (1) during the fiscal year from the State School Fund to the school districts and charter schools under the jurisdiction of the county superintendent of schools of that county, to the county school service fund of that county, and to the county school tuition fund of that county.
(1) Programs to be included in the apportionment include all of the following:
(A) Chapter 12.5 (commencing with Section 2574) of Part 2.
(B) Sections 41330 to 41343, inclusive.
(C) Section 41544.
(D) Chapter 4 (commencing with Section 41600) of Part 24 of Division 3 of Title 2.
(E) Chapter 5 (commencing with Section 41760.2) of Part 24 of Division 3 of Title 2.
(F) Section 41841.5.
(G) Article 2 (commencing with Section 42238) of Chapter 7 of Part 24 of Division 3 of Title 2.
(H) Section 47663.
(I) Article 7 (commencing with Section 48300) of Chapter 2 of Part 27 of Division 4 of Title 2.
(J) Article 10 (commencing with Section 48350) of Chapter 2 of Part 27 of Division 4 of Title 2.
(K) Sections 56428, 56432, 56836 to 56836.06, inclusive, 56836.08 to 56836.13, inclusive, and 56836.165 to 56836.31, inclusive.
(L) Article 2.2 (commencing with Section 56836.14) of Chapter 7.2 of Part 30 of Division 4 of Title 2.
(2) Warrants for amounts apportioned to school districts, county school service funds, and county school tuition funds shall be for amounts equal to 5 percent in July, 5 percent in August, and 9 percent in September, October, November, December, and January, of the amounts certified by the Superintendent as a part of the advance apportionment.
(3) Warrants in the months of February to May, inclusive, shall be for amounts equal to one-fifth of the difference between the amounts certified by the Superintendent for school districts, county school service funds, and county school tuition funds as the first principal apportionment and the amounts required by paragraph (2).
(4) Warrants for the month of June shall be for amounts equal to the difference between the amounts certified by the Superintendent for school districts, county school service funds, and county school tuition funds as the second principal apportionment and the amounts required by paragraphs (2) and (3).
(5) Warrants in June shall include the total amounts certified by the Superintendent as the final apportionment.
(6) Notwithstanding paragraph (2) to the contrary, for school districts that reported less than 5,000 units of average daily attendance in the 1979–80 fiscal year and that received 39 percent or more, but less than 75 percent, of their total revenue limits from local property taxes in that fiscal year, warrants for amounts apportioned to the school districts shall be for amounts equal to 15 percent in July, August, September, and October; zero percent in November and December; and 6 percent in January of the amounts certified by the Superintendent as a part of the advance apportionment. Warrants for amounts apportioned to the school districts for the months of February to May, inclusive, shall be in accordance with paragraph (3), and for the month of June, shall be in accordance with paragraph (4).
(7) Notwithstanding paragraph (2) or (6) to the contrary, for school districts that reported less than 5,000 units of average daily attendance in the 1979–80 fiscal year and that received 75 percent or more of their total revenue limits from local property taxes in that fiscal year, warrants for amounts apportioned to the school districts shall be for amounts equal to 15 percent in July; 30 percent in August and September; 15 percent in October; zero percent in November and December; 6 percent in January; and zero percent in February, March, April, and May, of the amounts certified by the Superintendent as a part of the advance apportionment. Warrants for the month of June shall be in accordance with paragraph (4).
(8) (A) Notwithstanding any other law, for the 2012–13 fiscal year only, for purposes of warrants drawn on the State Treasury pursuant to this section, the amount certified by the Superintendent as the advance apportionment and first principal apportionment shall include the following reduction:
(i) The Superintendent shall multiply six billion nine hundred twenty-one million five hundred twenty-two thousand dollars ($6,921,522,000) by the ratio of the revenue limit or charter school general purposes funding for each county office of education, school district, or charter school, to the statewide total of revenue limit and charter school general purpose funding.
(ii) For each county office of education, school district, or charter school, the Superintendent shall subtract the amount calculated in clause (i) from the apportionments calculated pursuant to Sections 2558, 42238, and 47633.
(B) Notwithstanding any other law, for the 2012–13 fiscal year, the Superintendent shall delay the second principal apportionment calculated pursuant to Section 41335 from July 2, 2013, to July 15, 2013, to account for all revenues remitted to school districts and county offices of education pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution. The Superintendent shall ensure that the second principal apportionment calculated pursuant to Section 41335 accounts for the difference between the amount distributed pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution and the offsets listed in subparagraph (A). Nothing in this section shall delay the payment of warrants to school districts and county offices of education 10 days before the close of the state’s fiscal year pursuant to subparagraph (B) of paragraph (3) of subdivision (e) of Section 36 of Article XIII of the California Constitution.
(9) Notwithstanding paragraph (1), (3), or (7), as those paragraphs and this section read on June 1, 2018, for the 2012–13 fiscal year only, the Superintendent shall reduce the June warrants for any amounts received pursuant to Sections 34179.5 and 34179.6 of the Health and Safety Code. This reduction shall constitute the entire amount distributed pursuant to Sections 34179.5 and 34179.6 of the Health and Safety Code and offset pursuant to subparagraph (B) of paragraph (6) of subdivision (h) of Section 42238, paragraph (6) of subdivision (c) of Section 2558, and Section 56836.08.
(b) The drawing of the warrants required to be drawn during any one of the months mentioned may be postponed by the Controller for not to exceed 30 days, but the total amounts due the several counties during any fiscal year shall be paid within the fiscal year. The warrants shall be paid by the Treasurer from the State School Fund and are not subject to Section 925.6 of the Government Code.

SEC. 10.

 Section 14041.5 of the Education Code is amended to read:

14041.5.
 (a) Notwithstanding subdivision (a) of Section 14041, for the 2002–03 fiscal year to the 2013–14 fiscal year, inclusive, and commencing with the 2019–20 fiscal year, 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 otherwise provided in this section, 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 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.
(f) (1) (A) For the 2019–20 fiscal year, the amount of 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 2020–21 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 2020–21 fiscal year shall be one billion eight hundred fifty million three hundred seventy-seven thousand dollars ($1,850,377,000). Any amount in excess of one billion eight hundred fifty million three hundred seventy-seven thousand dollars ($1,850,377,000) that is apportioned in July 2020 is deemed “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202 for the 2019–20 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 2019–20 fiscal year.
(B) Commencing with the 2020–21 fiscal year, the amount of 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 two billion three hundred seventy-five million three hundred eight thousand dollars ($2,375,308,000). Any amount in excess of two billion three hundred seventy-five million three hundred eight thousand dollars ($2,375,308,000) 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.
(2) For the 2019–20 fiscal year, the principal apportionment deferred from June to July pursuant to subdivision (a) shall be paid by the Controller no later than July 15, 2020.

SEC. 11.

 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, 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, 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, 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, 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, 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, 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, or any other law, 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.
(i) (1) (A) Notwithstanding subdivision (a) of Section 14041, or any other law, commencing with the 2020–21 fiscal year, warrants for the principal apportionments for the month of February in the amount of one billion five hundred forty million three hundred three thousand dollars ($1,540,303,000) shall instead be drawn in November of the same calendar year pursuant to the certification made pursuant to Section 41332.
(B) Notwithstanding subdivision (a) of Section 14041, or any other law, commencing with the 2020–21 fiscal year, warrants for the principal apportionments for the month of March in the amount of two billion three hundred seventy-five million three hundred eight thousand dollars ($2,375,308,000) shall instead be drawn in October of the same calendar year pursuant to the certification made pursuant to Section 41332.
(C) Notwithstanding subdivision (a) of Section 14041, or any other law, commencing with the 2020–21 fiscal year, warrants for the principal apportionments for the month of April in the amount of two billion three hundred seventy-five million three hundred eight thousand dollars ($2,375,308,000) shall instead be drawn in September of the same calendar year pursuant to the certification made pursuant to Section 41332.
(D) Notwithstanding subdivision (a) of Section 14041, or any other law, commencing with the 2020–21 fiscal year, warrants for the principal apportionments for the month of May in the amount of two billion three hundred seventy-five million three hundred eight thousand dollars ($2,375,308,000) shall instead be drawn in August of the same calendar year pursuant to the certification made pursuant to Section 41335.
(2) Pursuant to Section 8.28 of the Budget Act of 2020, if the Director of Finance determines that there are sufficient federal funds provided to the state for the 2020–21 fiscal year that may be used to offset the deferral of payments in the amount specified in Section 8.28 of the Budget Act of 2020, the Director of Finance shall reduce the amounts described in paragraph (1). In reducing these amounts, the Director of Finance shall first reduce the amounts deferred from any months occurring earliest in the 2020–21 fiscal year.
(j) 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 (i), 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.
(k) Notwithstanding subdivision (j), 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.
(l) Notwithstanding subdivision (j) 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.
(m) Notwithstanding subdivision (j) 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.
(n) (1) Notwithstanding subdivision (j) of this section and subdivision (f) of Section 14041.5, for purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriations made by subdivision (i) for the 2020–21 fiscal year shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2020–21 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 2020–21 fiscal year.
(2) Notwithstanding subdivision (j) of this section and subdivision (f) of Section 14041.5, for purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriations made by subdivision (i) for the 2021–22 fiscal year and each fiscal year thereafter 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.

SEC. 12.

 Section 14041.8 is added to the Education Code, to read:

14041.8.
 (a) (1) For the 2020–21 fiscal year only, up to one hundred million dollars ($100,000,000) of the amount of the warrants for the principal apportionments for the month of February, that are instead to be drawn in November, pursuant to Section 14041.6, may be drawn in February, subject to the approval of the Director of Finance, for a charter school or school district as follows:
(A) In order for a charter school to receive a payment in February pursuant to this subdivision, the chartering authority, in consultation with the county superintendent of schools, shall certify to the Superintendent and the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the charter school being unable to meet its financial obligations for February or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the charter school to meet its financial obligations for February and any subsequent month until the deferral is repaid, as applicable.
(B) In order for a school district to receive a payment in February pursuant to this subdivision, the county superintendent of schools shall certify to the Superintendent and to the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the school district being unable to meet its financial obligations for February or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the school district to meet its financial obligations for February and any subsequent month until the deferral is repaid, as applicable.
(C) To make the certification specified in subparagraph (B), both of the following criteria shall be met:
(i) The school district must have exhausted all internal and external sources of borrowing including those pursuant to Sections 42603, 42620, 42621, and 42622 of this code, Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, and Section 6 of Article XVI of the California Constitution.
(ii) If not exempt from the February deferral the school district will require a state emergency loan pursuant to Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2.
(D) A charter school or school district may receive, pursuant to this subdivision, no more than the lesser of the monthly payment for the charter school or school district calculated pursuant to Section 14041 or the amount of additional funds necessary for the charter school or school district to meet its financial obligations, as reported to the Superintendent pursuant to subparagraph (A) or (B), as applicable.
(2) If the total amount requested by charter schools and school districts pursuant to subparagraph (D) of paragraph (1) exceeds one hundred million dollars ($100,000,000), the Controller, the Treasurer, and the Director of Finance may authorize additional payments to meet these requests, but total payments to charter schools and school districts pursuant to this subdivision shall not exceed three hundred million dollars ($300,000,000). On or before February 1, the Controller, the Treasurer, and the Director of Finance shall determine whether sufficient cash is available to make payments in excess of one hundred million dollars ($100,000,000). In making the determination that cash is sufficient to make additional payments, in whole or in part, the Controller, the Treasurer, and the Director of Finance shall consider costs for state government, the amount of any identified cash shortage, timing, achievability, legislative direction, and the impact and hardship imposed on potentially affected programs, entities, and related public services. The Department of Finance shall notify the Joint Legislative Budget Committee within 10 days of this determination and identify the total amount of requests that will be paid.
(3) If the total amount of cash made available pursuant to paragraph (2) is less than the amount requested pursuant to subparagraph (D) of paragraph (1), payments to charter schools and school districts shall be prioritized according to the date on which the certification described in paragraph (1) was provided to the Superintendent and the Director of Finance.
(4) Payments pursuant to this subdivision shall be made by the Controller on or before February 26, 2021.
(b) (1) For the 2020–21 fiscal year only, up to one hundred million dollars ($100,000,000) of the amount of the warrants for the principal apportionments for the month of March, that are instead to be drawn in October, pursuant to Section 14041.6, may be drawn in March, subject to the approval of the Director of Finance, for a charter school or school district as follows:
(A) In order for a charter school to receive a payment in March pursuant to this subdivision, the chartering authority, in consultation with the county superintendent of schools, shall certify to the Superintendent and the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the charter school being unable to meet its financial obligations for March or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the charter school to meet its financial obligations for March and any subsequent month until the deferral is repaid, as applicable.
(B) In order for a school district to receive a payment in March pursuant to this subdivision, the county superintendent of schools shall certify to the Superintendent and to the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the school district being unable to meet its financial obligations for March or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the school district to meet its financial obligations for March and any subsequent month until the deferral is repaid, as applicable.
(C) To make the certification specified in subparagraph (B), both of the following criteria shall be met:
(i) The school district must have exhausted all internal and external sources of borrowing including those pursuant to Sections 42603, 42620, 42621, and 42622 of this code, Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, and Section 6 of Article XVI of the California Constitution.
(ii) If not exempt from the March deferral the school district will require a state emergency loan pursuant to Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2.
(D) A charter school or school district may receive, pursuant to this subdivision, no more than the lesser of the monthly payment for the charter school or school district calculated pursuant to Section 14041 or the amount of additional funds necessary for the charter school or school district to meet its financial obligations, as reported to the Superintendent pursuant to subparagraph (A) or (B), as applicable.
(2) If the total amount requested by charter schools and school districts pursuant to subparagraph (D) of paragraph (1) exceeds one hundred million dollars ($100,000,000), the Controller, the Treasurer, and the Director of Finance may authorize additional payments to meet these requests, but total payments to charter schools and school districts pursuant to this subdivision shall not exceed three hundred million dollars ($300,000,000). On or before February 1, the Controller, the Treasurer, and the Director of Finance shall determine whether sufficient cash is available to make payments in excess of one hundred million dollars ($100,000,000). In making the determination that cash is sufficient to make additional payments, in whole or in part, the Controller, the Treasurer, and the Director of Finance shall consider costs for state government, the amount of any identified cash shortage, timing, achievability, legislative direction, and the impact and hardship imposed on potentially affected programs, entities, and related public services. The Department of Finance shall notify the Joint Legislative Budget Committee within 10 days of this determination and identify the total amount of requests that will be paid.
(3) If the total amount of cash made available pursuant to paragraph (2) is less than the amount requested pursuant to subparagraph (D) of paragraph (1), payments to charter schools and school districts shall be prioritized according to the date on which the certification described in paragraph (1) was provided to the Superintendent and the Director of Finance.
(4) Payments pursuant to this subdivision shall be made by the Controller on or before March 30, 2021.
(c) (1) For the 2020–21 fiscal year only, up to one hundred million dollars ($100,000,000) of the amount of the warrants for the principal apportionments for the month of April, that are instead to be drawn in September, pursuant to Section 14041.6, may be drawn in April, subject to the approval of the Director of Finance, for a charter school or school district as follows:
(A) In order for a charter school to receive a payment in April pursuant to this subdivision, the chartering authority, in consultation with the county superintendent of schools, shall certify to the Superintendent and the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the charter school being unable to meet its financial obligations for April or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the charter school to meet its financial obligations for April and any subsequent month until the deferral is repaid, as applicable.
(B) In order for a school district to receive a payment in April pursuant to this subdivision, the county superintendent of schools shall certify to the Superintendent and to the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the school district being unable to meet its financial obligations for April or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the school district to meet its financial obligations for April and any subsequent month until the deferral is repaid, as applicable.
(C) To make the certification specified in subparagraph (B), both of the following criteria shall be met:
(i) The school district must have exhausted all internal and external sources of borrowing including those pursuant to Sections 42603, 42620, 42621, and 42622 of this code, Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, and Section 6 of Article XVI of the California Constitution.
(ii) If not exempt from the April deferral the school district will require a state emergency loan pursuant to Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2.
(D) A charter school or school district may receive, pursuant to this subdivision, no more than the lesser of the monthly payment for the charter school or school district calculated pursuant to Section 14041 or the amount of additional funds necessary for the charter school or school district to meet its financial obligations, as reported to the Superintendent pursuant to subparagraph (A) or (B), as applicable.
(2) If the total amount requested by charter schools and school districts pursuant to subparagraph (D) of paragraph (1) exceeds one hundred million dollars ($100,000,000), the Controller, the Treasurer, and the Director of Finance may authorize additional payments to meet these requests, but total payments to charter schools and school districts pursuant to this subdivision shall not exceed three hundred million dollars ($300,000,000). On or before February 1, the Controller, the Treasurer, and the Director of Finance shall determine whether sufficient cash is available to make payments in excess of one hundred million dollars ($100,000,000). In making the determination that cash is sufficient to make additional payments, in whole or in part, the Controller, the Treasurer, and the Director of Finance shall consider costs for state government, the amount of any identified cash shortage, timing, achievability, legislative direction, and the impact and hardship imposed on potentially affected programs, entities, and related public services. The Department of Finance shall notify the Joint Legislative Budget Committee within 10 days of this determination and identify the total amount of requests that will be paid.
(3) If the total amount of cash made available pursuant to paragraph (2) is less than the amount requested pursuant to subparagraph (D) of paragraph (1), payments to charter schools and school districts shall be prioritized according to the date on which the certification described in paragraph (1) was provided to the Superintendent and the Director of Finance.
(4) Payments pursuant to this subdivision shall be made by the Controller on or before April 30, 2021.
(d) (1) For the 2020–21 fiscal year only, up to one hundred million dollars ($100,000,000) of the amount of the warrants for the principal apportionments for the month of May, that are instead to be drawn in August, pursuant to Section 14041.6, may be drawn in May, subject to the approval of the Director of Finance, for a charter school or school district as follows:
(A) In order for a charter school to receive a payment in May pursuant to this subdivision, the chartering authority, in consultation with the county superintendent of schools, shall certify to the Superintendent and the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the charter school being unable to meet its financial obligations for May or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the charter school to meet its financial obligations for May and any subsequent month until the deferral is repaid, as applicable.
(B) In order for a school district to receive a payment in May pursuant to this subdivision, the county superintendent of schools shall certify to the Superintendent and to the Director of Finance on or before January 5, 2021, that the deferral of warrants pursuant to Section 14041.6 will result in the school district being unable to meet its financial obligations for May or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the school district to meet its financial obligations for May and any subsequent month until the deferral is repaid, as applicable.
(C) To make the certification specified in subparagraph (B), both of the following criteria shall be met:
(i) The school district must have exhausted all internal and external sources of borrowing including those pursuant to Sections 42603, 42620, 42621, and 42622 of this code, Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, and Section 6 of Article XVI of the California Constitution.
(ii) If not exempt from the May deferral the school district will require a state emergency loan pursuant to Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2.
(D) A charter school or school district may receive, pursuant to this subdivision, no more than the lesser of the monthly payment for the charter school or school district calculated pursuant to Section 14041 or the amount of additional funds necessary for the charter school or school district to meet its financial obligations, as reported to the Superintendent pursuant to subparagraph (A) or (B), as applicable.
(2) If the total amount requested by charter schools and school districts pursuant to subparagraph (D) of paragraph (1) exceeds one hundred million dollars ($100,000,000), the Controller, the Treasurer, and the Director of Finance may authorize additional payments to meet these requests, but total payments to charter schools and school districts pursuant to this subdivision shall not exceed three hundred million dollars ($300,000,000). On or before February 1, the Controller, the Treasurer, and the Director of Finance shall determine whether sufficient cash is available to make payments in excess of one hundred million dollars ($100,000,000). In making the determination that cash is sufficient to make additional payments, in whole or in part, the Controller, the Treasurer, and the Director of Finance shall consider costs for state government, the amount of any identified cash shortage, timing, achievability, legislative direction, and the impact and hardship imposed on potentially affected programs, entities, and related public services. The Department of Finance shall notify the Joint Legislative Budget Committee within 10 days of this determination and identify the total amount of requests that will be paid.
(3) If the total amount of cash made available pursuant to paragraph (2) is less than the amount requested pursuant to subparagraph (D) of paragraph (1), payments to charter schools and school districts shall be prioritized according to the date on which the certification described in paragraph (1) was provided to the Superintendent and the Director of Finance.
(4) Payments pursuant to this subdivision shall be made by the Controller on or before May 28, 2021.
(e) (1) For the 2020–21 fiscal year only, up to one hundred million dollars ($100,000,000) of the amount of the warrants for the principal apportionments for the month of June, that are instead to be drawn in July pursuant to Section 14041.5, may be drawn in June, subject to the approval of the Director of Finance, for a charter school or school district as follows:
(A) In order for a charter school to receive a payment in June pursuant to this subdivision, the chartering authority, in consultation with the county superintendent of schools, shall certify to the Superintendent and the Director of Finance on or before April 1 that the deferral of warrants pursuant to Section 14041.5 will result in the charter school being unable to meet its financial obligations for June or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the charter school to meet its financial obligations for June and any subsequent month until the deferral is repaid, as applicable.
(B) In order for a school district to receive a payment in June pursuant to this subdivision, the county superintendent of schools shall certify to the Superintendent and to the Director of Finance on or before April 1 that the deferral of warrants pursuant to Section 14041.5 will result in the school district being unable to meet its financial obligations for June or any subsequent month until the deferral is repaid, and shall provide the Superintendent an estimate of the amount of additional funds necessary for the school district to meet its financial obligations for June and any subsequent month until the deferral is repaid, as applicable.
(C) To make the certification specified in subparagraph (B), both of the following criteria shall be met:
(i) The school district must have exhausted all internal and external sources of borrowing including those pursuant to Sections 42603, 42620, 42621, and 42622 of this code, Article 7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, and Section 6 of Article XVI of the California Constitution.
(ii) If not exempt from the June deferral the school district will require a state emergency loan pursuant to Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2.
(D) A charter school or school district may receive, pursuant to this subdivision, no more than the lesser of the monthly payment for the charter school or school district calculated pursuant to Section 14041 or the amount of additional funds necessary for the charter school or school district to meet its financial obligations, as reported to the Superintendent pursuant to subparagraph (A) or (B), as applicable.
(2) If the total amount requested by charter schools and school districts pursuant to subparagraph (D) of paragraph (1) exceeds one hundred million dollars ($100,000,000), the Controller, the Treasurer, and the Director of Finance may authorize additional payments to meet these requests, but total payments to charter schools and school districts pursuant to this subdivision shall not exceed three hundred million dollars ($300,000,000). On or before May 1, the Controller, the Treasurer, and the Director of Finance shall determine whether sufficient cash is available to make payments in excess of one hundred million dollars ($100,000,000). In making the determination that cash is sufficient to make additional payments, in whole or in part, the Controller, the Treasurer, and the Director of Finance shall consider costs for state government, the amount of any identified cash shortage, timing, achievability, legislative direction, and the impact and hardship imposed on potentially affected programs, entities, and related public services. The Department of Finance shall notify the Joint Legislative Budget Committee within 10 days of this determination and identify the total amount of requests that will be paid.
(3) If the total amount of cash made available pursuant to paragraph (2) is less than the amount requested pursuant to subparagraph (D) of paragraph (1), payments to charter schools and school districts shall be prioritized according to the date on which the certification described in paragraph (1) was provided to the Superintendent and the Director of Finance.
(4) Payments pursuant to this subdivision shall be made by the Controller on or before June 30, 2021.
(f) 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 paragraphs (1) and (2) of subdivisions (a) to (e), 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.

SEC. 13.

 Section 17375 of the Education Code is amended to read:

17375.
 (a) (1) The Full-Day Kindergarten Facilities Grant Program is hereby established, under the administration of the State Allocation Board pursuant to the requirements of this section, to provide one-time grants to school districts to construct new school facilities or retrofit existing school facilities for the purpose of providing full-day kindergarten classrooms pursuant to Section 8973.
(2) Moneys appropriated pursuant to this section shall be deposited in the Full-Day Kindergarten Facilities Account, hereby created in the State Treasury, administered by the State Allocation Board.
(3) For the 2018–19 fiscal year, the sum of one hundred million dollars ($100,000,000) is hereby appropriated from the General Fund to the State Allocation Board to provide one-time grants as specified in this section.
(4) (A) Commencing with the 2019–20 fiscal year, this program is contingent upon appropriation by the Legislature.
(B) (i) Of the moneys allocated to a school district from the appropriation made pursuant to this paragraph, savings and interest achieved upon full completion of an approved project, and as a result of a school district’s efficient and prudent expenditure of the moneys allocated, may be used for professional development or instructional materials to build capacity for the implementation of a full-day kindergarten program, or high priority capital outlay purposes identified by the school district and in accordance with subdivision (f), associated regulations, and any accompanying grant agreement.
(ii) Notwithstanding any other law, for purposes of the funds appropriated in support of this paragraph only, a school district may retain and use savings and interest pursuant to clause (i) even if it receives financial hardship assistance pursuant to Section 17075.10.
(iii) Savings and interest retained by a school district must be expended within one year of project completion or returned to the state as defined by associated regulations and any accompanying grant agreement.
(C) For the first two years after any funds have been appropriated in support of this paragraph, funds shall be limited to schoolsites that did not offer a full-day kindergarten program as of July 1, 2019, and will use the funding to convert a part-day kindergarten program to a full-day kindergarten program.
(5) New school facilities built pursuant to this section shall not be included in the eligibility determination used for purposes of the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with Section 17070.10) of Part 10).
(b) (1) The State Allocation Board shall award grants to school districts that lack the facilities to provide full-day kindergarten as required for eligibility pursuant to Sections 17071.25 and 17072.10 or that lack facilities that satisfy the design requirements required for new kindergarten classrooms as specified in paragraph (2) of subdivision (h) of Section 14030 of Title 5 of the California Code of Regulations.
(2) Priority for grants shall be given to school districts that meet either of the following criteria:
(A) The school district is financially unable to contribute a portion of, or all of, the local matching share required pursuant to paragraph (3), and meets the requirements for financial hardship pursuant to Section 17075.10.
(B) The school district is located in an underserved community with a high population of pupils who are eligible for free or reduced-price meals pursuant to subdivision (a) of Section 42238.01.
(3) Except for school districts that meet the requirements for financial hardship pursuant to Section 17075.10 and as specified in paragraph (4), a school district that applies for a grant pursuant to this section for new construction shall provide 50 percent of the cost of the project, and a school district that applies for a grant pursuant to this section for a retrofit project shall provide 40 percent of the cost of the project.
(4) Except for school districts that meet the requirements for financial hardship pursuant to Section 17075.10, a school district that will convert a part-day kindergarten program to a full-day kindergarten program shall provide 25 percent of the cost of the project whether the project is for new construction or retrofit. A school district that was awarded a grant from funds appropriated pursuant to paragraph (3) of subdivision (a) and met the requirements of this paragraph shall have its grant amount adjusted.
(5) A school district seeking a grant from moneys in the Full-Day Kindergarten Facilities Account shall provide the Office of Public School Construction with schoolsite enrollment data for the year in which its application is processed and the three immediately preceding years. The Office of Public School Construction shall use this data to verify the schoolsite’s overall need for funding pursuant to this section based on the schoolsite’s enrollment patterns. As part of this verification, the Office of Public School Construction, in consultation with the State Department of Education, shall determine if the schoolsite’s need for funding shall be limited to retrofit projects.
(c) The State Allocation Board shall disburse grant funds to school districts with approved applications for new construction or retrofit projects, to the extent funds are available for the state’s applicable matching share, if the school district has provided its applicable local matching share, unless the school district meets the requirements for financial hardship pursuant to Section 17075.10, and upon certification by the school district that the school district has entered into a binding contract for completion of the approved project.
(d) The State Allocation Board shall allocate funds to school districts using the same maximum grant eligibility amounts that are used for purposes of the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with Section 17070.10) of Part 10), as set forth in Sections 17072.10 and 17072.11 for new construction, and as set forth in Section 17074.10 for retrofit projects.
(e) As a condition of receiving grant funds pursuant to this section, and before the release of those funds, the school district shall execute and submit a grant agreement consistent with the applicable sections of the grant agreement specified in Section 1859.90.4 of Title 2 of the California Code of Regulations.
(f) (1) A school district may use grant funds awarded for new construction on costs necessary to adequately house kindergarten pupils in an approved project, which shall include only the following:
(A) The costs of design, engineering, testing, inspections, plan checking, construction management, site acquisition and development, evaluation and response action costs relating to hazardous substances at a new or existing schoolsite, demolition, construction, landscaping, necessary utility costs, utility connections and other related fees, equipment including telecommunication equipment to increase school security, furnishings, the upgrading of electrical systems, and the wiring or cabling of classrooms in order to accommodate educational technology.
(B) The costs of acquiring an existing government-owned or privately owned building, or a privately financed school building, and the necessary costs of converting the government-owned or privately owned building for public school use.
(2) (A) A school district may use grant funds awarded for a retrofit project to retrofit an existing school facility to adequately house kindergarten pupils, which shall only include the costs of design, engineering, testing, inspection, plan checking, construction management, demolition, construction, necessary utility costs, utility connection and other related fees, the purchase and installation of air-conditioning equipment and insulation materials and related costs, furniture and equipment, including telecommunication equipment to increase school security, fire safety improvements, playground safety improvements, the identification, assessment, or abatement of hazardous asbestos, seismic safety improvements, the upgrading of electrical systems, and the wiring or cabling of classrooms in order to accommodate educational technology.
(B) Grant funds awarded for a retrofit project shall not be used for costs associated with acquisition and development of real property or for routine maintenance and repair.
(g) The State Allocation Board may adopt regulations to implement this section. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of the Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.
(h) Notwithstanding any other law, a school district shall be subject, with regard to this section, to an audit conducted pursuant to Section 41024.
(i) The Office of Public School Construction shall report to the Director of Finance, and shall post on its internet website, information regarding the use of grant funds that have been made available to school districts during each fiscal year grant funds are disbursed pursuant to this section. A final report shall also be issued after projects have been audited pursuant to Section 41024 and any savings have been spent or returned to the state.
(j) The Department of General Services may charge its administrative costs against the Full-Day Kindergarten Facilities Account, which shall be subject to the approval of the Department of Finance and which shall not exceed 2.5 percent of the account.
(k) Funds made available to school districts pursuant to this article shall supplement, not supplant, existing funds available for school facilities construction.
(l) For purposes of this section, kindergarten includes transitional kindergarten, as defined in Section 48000.

SEC. 14.

 Section 17463.7 is added to the Education Code, to read:

17463.7.
 (a) Notwithstanding any other law, a school district may deposit the proceeds from the sale or lease of surplus real property, together with any personal property located on the property, purchased entirely with local funds, into the general fund of the school district and may use the proceeds for any one-time general fund purpose. If the purchase of the property was made using the proceeds of a local general obligation bond or revenue derived from developer fees, the amount of the proceeds of the transaction that may be deposited into the general fund of the school district may not exceed the percentage computed by the difference between the purchase price of the property and the proceeds from the transaction, divided by the amount of the proceeds of the transaction. For purposes of this section, proceeds of the transaction means either of the following, as appropriate:
(1) The amount realized from the sale of property after reasonable expenses related to the sale.
(2) For a transaction that does not result in a lump-sum payment of the proceeds of the transaction, the proceeds of the transaction shall be calculated as the net present value of the future cashflow generated by the transaction.
(b) The State Allocation Board shall reduce an apportionment of hardship assistance awarded to the particular school district pursuant to Article 8 (commencing with Section 17075.10) by an amount equal to the amount of the sale of surplus real property used for a one-time expenditure of the school district pursuant to this section.
(c) Before a school district exercises the authority granted pursuant to this section, the governing board of the school district shall first submit to the State Allocation Board documents certifying both of the following:
(1) The sale of real property pursuant to this section does not violate the provisions of a local bond act.
(2) The real property is not suitable to meet projected school construction needs for the next 10 years.
(d) Before the school district exercises the authority granted pursuant to this section, the governing board of the school district at a regularly scheduled meeting shall present a plan for expending one-time resources pursuant to this section. The plan shall identify the source and use of the funds and describe the reasons why the expenditure will not result in ongoing fiscal obligations for the school district.
(e) The Office of Public School Construction shall submit an interim and a final report to the State Allocation Board and the budget, education policy, and fiscal committees of the Legislature that identifies the school districts that have exercised the authority granted by this section, the amount of proceeds involved, and the purposes for which those proceeds were used. The interim report shall be submitted by June 1, 2022, and the final report shall be submitted by January 1, 2025.
(f) Subdivisions (a) to (d), inclusive, shall become inoperative on July 1, 2024, subdivision (e) shall become inoperative on January 15, 2025, and this section as of January 1, 2026, is repealed.

SEC. 15.

 Section 17524 of the Education Code is amended to read:

17524.
 (a) After considering all proposals submitted, the governing board of the school district may, subject to Section 17525, select the plan or proposal that best meets the needs of the school district and enter into a contract incorporating that plan or proposal either as submitted or as revised by the governing board of the school district.
(b) The governing board shall require any person, firm, local governmental agency, as defined in paragraph (3) of subdivision (f) of Section 4420 of the Government Code, or corporation with whom it enters into a lease or agreement pursuant to this article to file one of the following, as determined by the governing board:
(1) A bond for the performance of the lease or agreement.
(2) An irrevocable letter of credit issued by a state or national bank or a federal or state credit union for the performance of the lease or agreement.

SEC. 16.

 Section 35710.5 of the Education Code is amended to read:

35710.5.
 (a) (1) An action by the county committee approving a petition pursuant to Section 35709, 35710, or 35710.1 may be appealed to the state board by the chief petitioners or one or more affected school districts. Except as provided in paragraph (2), the appeal shall be limited to issues of noncompliance with Section 35705, 35706, or 35710, or subdivision (a) or (b) of Section 35709. If an appeal is made as to the issue of whether the proposed transfer will adversely affect the racial or ethnic integration of the schools of the districts affected, it shall be made pursuant to Section 35711.
(2) Notwithstanding paragraph (1), an appeal for which notice of the appeal, pursuant to subdivision (b), was filed before July 1, 2020, shall be considered pursuant to this section, as it read on December 31, 2019.
(b) Within five days after the final action of the county committee, the appellant shall file with the county committee a notice of appeal and shall provide a copy to the county superintendent of schools, except that if the appellant is one of the affected school districts it shall have 30 days to file the notice of appeal with the county committee and provide a copy to the county superintendent. Upon the filing of the notice of appeal, the action of the county committee shall be stayed, pending the outcome of the appeal. Within 15 days after the filing of the notice of appeal, the appellant shall file with the county committee a statement of reasons and factual evidence. The county committee shall then, within 15 days of receipt of the statement, send to the state board the statement and the complete administrative record of the county committee proceedings, including minutes of the oral proceedings.
(c) Upon receipt of the appeal, the state board may either review the appeal or ratify the county committee’s decision by summarily denying review of the appeal. The board may review the appeal either solely on the administrative record or in conjunction with a public hearing. Following the review, the board shall affirm or reverse the action of the county committee, and if the petition will be sent to election, shall determine the territory in which the election is to be held. The board may reverse or modify the action of the county committee in any manner consistent with law.
(d) The decision of the state board shall be sent to the county committee which shall notify the county board of supervisors or the county superintendent of schools pursuant to Section 35709, 35710, or 35710.1, as appropriate.

SEC. 17.

 Section 38000 of the Education Code is amended to read:

38000.
 (a) The governing board of a school district may establish a security department under the supervision of a chief of security as designated by, and under the direction of, the superintendent of the school district. In accordance with Chapter 5 (commencing with Section 45100) of Part 25, the governing board of a school district may employ personnel to ensure the safety of school district personnel and pupils and the security of the real and personal property of the school district. It is the intent of the Legislature in enacting this section that a school district security department is supplementary to city and county law enforcement agencies and is not vested with general police powers.
(b) The governing board of a school district may establish a school police department under the supervision of a school chief of police and, in accordance with Chapter 5 (commencing with Section 45100) of Part 25, may employ peace officers, as defined in subdivision (b) of Section 830.32 of the Penal Code, to ensure the safety of school district personnel and pupils, and the security of the real and personal property of the school district.
(c) The governing board of a school district that establishes a security department or a police department shall set minimum qualifications of employment for the chief of security or school chief of police, respectively, including, but not limited to, prior employment as a peace officer or completion of a peace officer training course approved by the Commission on Peace Officer Standards and Training. A chief of security or school chief of police shall comply with the prior employment or training requirement set forth in this subdivision as of January 1, 1993, or a date one year subsequent to the initial employment of the chief of security or school chief of police by the school district, whichever occurs later. This subdivision shall not be construed to require the employment by a school district of additional personnel.
(d) A school district may assign a school police reserve officer who is deputized pursuant to Section 35021.5 to a schoolsite to supplement the duties of school police officers pursuant to this section.
(e) It is the intent of the Legislature to evaluate the presence of peace officers and other law enforcement on school campuses and to identity and consider alternative options to ensure pupil safety based on the needs of the local school communities. It is the intent of the Legislature to consider encouraging local educational agencies to use school resources currently allocated to such personnel, including school police departments and contracts with local police or sheriff departments, for pupil support services, such as mental health services and professional development for school employees on cultural competency and restorative justice, as needed, if found to be a more appropriate use of resources based upon the needs of the pupils and campuses that serve them.

SEC. 18.

 Section 41020.9 is added to the Education Code, to read:

41020.9.
 (a) Notwithstanding Section 41020, for the 2019–20 fiscal year, a local educational agency shall provide for an audit by July 15, 2020, and if a local educational agency fails to provide for an audit by July 15, 2020, the county office of education having jurisdiction over the local educational agency shall provide for an audit of the local educational agency by July 31, 2020.
(b) Notwithstanding subdivision (h) of Section 41020 or subdivision (m) of Section 47605, for audit reports for the 2019–20 fiscal year, a local educational agency shall file an annual audit report with the county superintendent of schools of the county in which the local educational agency is located, the Superintendent, the Controller, and, if applicable, to its chartering authority, by March 31, 2021, and notwithstanding subdivision (k) of Section 41020, the county superintendent of schools shall submit the required certification to the Superintendent and the Controller by July 15, 2021.
(c) Notwithstanding subdivision (k) of Section 41020, for audit reports for the 2018–19 fiscal year, a county superintendent of schools shall submit the required certification to the Superintendent and the Controller by July 15, 2020.
(d) Notwithstanding subdivision (d) of Section 41344, for audits certified by the Controller between March 1, 2020, and July 15, 2020, inclusive, a local educational agency may appeal a finding contained in a final audit report within 120 days of the date on which the local educational agency receives the final audit report resulting from an audit or review, or within 30 days of receiving a determination of a summary review pursuant to subdivision (e).
(e) Notwithstanding subdivision (d) of Section 41344.1, for audits certified between March 1, 2020, and July 15, 2020, inclusive, a local educational agency may request a summary review within 90 days of the date on which the local educational agency receives the final audit report resulting from an audit or review.

SEC. 19.

 Section 41203.1 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 the 2020–21 fiscal years, inclusive.

SEC. 20.

 Section 41204.2 is added to the Education Code, to read:

41204.2.
 (a) Notwithstanding any other law, commencing with the 2021–22 fiscal year, an appropriation shall be made from the General Fund in the annual Budget Act for the support of public schools maintaining kindergarten or any of grades 1 to 12, inclusive, and the California Community Colleges to supplement funding appropriated pursuant to Section 8 of Article XVI of the California Constitution. In each fiscal year, the amount of the supplemental appropriation shall be equal to 1.5 percent of total General Fund revenues, as calculated pursuant to Section 8 of Article XVI of the California Constitution. The supplemental appropriation shall be made annually until the sum of all supplemental appropriations equals twelve billion three hundred sixty-six million one hundred seven thousand dollars ($12,366,107,000).
(b) Amounts appropriated pursuant to subdivision (a) shall be deemed supplementary payments in excess of the minimum amount required for a given fiscal year pursuant to Section 8 of Article XVI of the California Constitution.
(c) (1) For the 2022–23 fiscal year, and each fiscal year thereafter, “the percentage of General Fund revenues appropriated for school districts and community colleges districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution, shall be deemed to be the percentage of General Fund revenues that would have been appropriated for those entities if the share of the General Fund of the supplementary payment calculated pursuant to subdivision (a) in the prior fiscal year had been included in the percentage of General Fund revenues appropriated for school districts and community colleges districts, respectively, in fiscal year 1986–87.
(2) Paragraph (1) is operative until “the percentage of General Fund revenues appropriated for school districts and community colleges districts, respectively, in fiscal year 1986–87,” for purposes of paragraph (1) of subdivision (b) of Section 8 of Article XVI of the California Constitution equals 40 percent.

SEC. 21.

 Section 41327.1 of the Education Code is amended to read:

41327.1.
 (a) The state board shall adopt and may periodically update by regulation a comprehensive list of professional and legal standards that all school districts are encouraged to use as a guide to conduct a good educational program and fiscal and management practices that shall be used as the basis of evaluating the improvement of qualifying school districts pursuant to this article. These standards shall, at a minimum, address all of the following areas:
(1) Financial management.
(2) Pupil achievement.
(3) Personnel management.
(4) Facilities management.
(5) Community relations.
(b) If an administrator is appointed pursuant to Section 41326, the County Office Fiscal Crisis and Management Assistance Team established pursuant to Section 42127.8 shall conduct comprehensive assessments in the five areas specified in subdivision (a).
(c) After the assessments specified in subdivision (b) are completed, the county superintendent of schools, in consultation with the County Office Fiscal Crisis and Management Assistance Team, the Superintendent, and the president of the state board or the president’s designee, shall determine, based upon the school district’s particular needs and circumstances, the level of improvement needed in the standards adopted pursuant to subdivision (a) before local authority will be returned pursuant to subdivision (g) of Section 41326. Based upon this determination, the County Office Fiscal Crisis and Management Assistance Team shall complete improvement plans in the five areas specified in subdivision (a) that focus on the agreed upon standards, and that are consistent with the financial improvement plan.
(d) Beginning six months after an emergency loan is approved, and annually thereafter until local authority is returned pursuant to subdivision (g) of Section 41326, the County Office Fiscal Crisis and Management Assistance Team shall file a written status report with the appropriate fiscal and policy committees of the Legislature, the Members of the Legislature that represent the qualifying school district, any advisory council of the school district, the Superintendent, the county superintendent of schools, and the Director of Finance. The reports shall indicate the progress that the school district is making in meeting the recommendations of the improvement plans developed pursuant to this section.
(e) If the County Office Fiscal Crisis and Management Assistance Team indicates in writing that it has insufficient resources to complete the comprehensive assessments, improvement plans, and progress reports required pursuant to this section, the county superintendent of schools shall request proposals to complete these tasks, and subject to the approval of the Department of Finance, select an entity to complete the tasks assigned to the County Office Fiscal Crisis and Management Assistance Team pursuant to this section.

SEC. 22.

 Section 41341 of the Education Code is amended to read:

41341.
 (a) (1) If, during any fiscal year, the amount apportioned to a school district or to any fund from Section A of the State School Fund differs either positively or negatively from the amount to which the school district or fund was entitled by an amount equal to the local control funding formula allocation pursuant to Section 42238.02, as implemented pursuant to Section 42238.03, for one unit of average daily attendance, the Superintendent, in accordance with regulations that the Superintendent is hereby authorized to adopt, not later than the first succeeding fiscal year from the fiscal year in which the computational error was made, shall withhold from, or add to, the apportionment made during that fiscal year, the amount of the excess or deficiency, as the case may be. Notwithstanding any other provision of this code to the contrary, excesses withheld or deficiencies added by the Superintendent pursuant this subdivision shall be added to or allowed from any portion of the State School Fund.
(2) Notwithstanding paragraph (1), excesses may be withheld or deficiencies added to apportionments on account of audit exceptions reported in an audit or review, as described in subdivision (e) of Section 41344, or audit or review conducted by a certified public accountant or public accounting firm designated by a governmental agency that provided the local educational agency the opportunity to provide a written response.
(b) If, during any fiscal year, the amount apportioned to a community college district or to any fund from Section B of the State School Fund differs either positively or negatively from the amount to which the community college district or fund was entitled, by an amount equal to the funding of one full-time equivalent student, the Chancellor of the California Community Colleges, in accordance with regulations that the chancellor is hereby authorized to adopt, not later than the first succeeding fiscal year from the fiscal year in which the computational error was made, shall withhold from, or add to, the apportionment made during that fiscal year, the amount of the excess or deficiency, as the case may be. Notwithstanding any other provision of this code to the contrary, excesses withheld or deficiencies added by the Chancellor of the California Community Colleges under this subdivision shall be added to or allowed from any portion of the State School Fund.

SEC. 23.

 Section 41370 of the Education Code is amended to read:

41370.
 (a) The governing board of a school district, the governing body of a charter school, and a county board of education shall, except as may otherwise be specifically provided by law, use all money apportioned to the school district, charter school, or county office of education from the State School Fund during any fiscal year exclusively for the support of the school or schools of the school district, charter school, or county office of education for that year.
(b) School districts, charter schools, and county offices of education shall not expend funds provided in satisfaction of the state’s minimum funding obligation to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution for courses or instruction offered by private or public colleges or universities beyond that permitted in pursuit of a high school diploma, except for courses or instruction in which pupils are enrolled in before July 1, 2020.

SEC. 24.

 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 conducted in accordance with Section 42103 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.
(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 for the budget 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 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 the county superintendent of schools’ 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 the school district is at moderate or high risk of intervention based on the most common indicators of a school district needing intervention, as determined by the County Office Fiscal Crisis and Management Assistance Team. 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 September 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 the governing board of 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 that subdivision, the county superintendent of schools shall conditionally approve or disapprove the budget and, not later than September 15, transmit to the governing board of the school district, in writing, the county superintendent of schools’ 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 the county superintendent of schools 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 county superintendent’s review and recommendations, subject to the requirement that the committee report its findings to the county superintendent of schools no later than September 20.
(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.
(3) If the adopted budget of a school district is conditionally approved or disapproved pursuant to paragraph (1), on or before October 8, the governing board of the school district, in conjunction with the county superintendent of schools, shall review and respond to the recommendations of the county superintendent of schools at a regular meeting of the governing board of the school district. 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.
(e) On or before October 22, the county superintendent of schools shall provide a list to the Superintendent identifying all school districts for which budgets may be disapproved.
(f) (1) The county superintendent of schools shall examine the revised budget as provided in paragraph (3) of subdivision (d) to determine whether it (A) complies with the standards and criteria adopted by the state board pursuant to Section 33127 for application to final local educational agency budgets, (B) allows the school district to meet its financial obligations during the fiscal year, (C) satisfies all conditions established by the county superintendent of schools in the case of a conditionally approved budget, (D) is consistent with a financial plan that will enable the school district to satisfy its multiyear financial commitments, and, not later than November 8, shall approve or disapprove the revised 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, the county superintendent of schools 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 December 31. If no budget is adopted by December 31, the Superintendent may adopt a budget for the school district. The Superintendent shall report to the Legislature and the Director of Finance by January 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 December 31. 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 the Superintendent’s authority to adopt a budget for the school district.
(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 governing board of the school district pursuant to Section 52070, the county superintendent of schools shall not call for the formation of a budget review committee pursuant to Section 42127.1.
(g) Not later than November 8, the county superintendent of schools shall submit a report to the Superintendent identifying all school districts for which budgets have been disapproved, and whether a budget review committee will be formed or 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).
(h) 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.
(i) 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. 25.

 Section 42127.6 of the Education Code is amended to read:

42127.6.
 (a) (1) A school district shall provide the county superintendent of schools with a copy of a study, report, evaluation, or audit that was commissioned by the school district, the county superintendent, the Superintendent, and state control agencies and that contains evidence that the school district is showing fiscal distress under the standards and criteria adopted in Section 33127, or a report on the school district by the County Office Fiscal Crisis and Management Assistance Team. The county superintendent shall review and consider studies, reports, evaluations, or audits of the school district that contain evidence that the school district is demonstrating fiscal distress under the standards and criteria adopted in Section 33127 or that contain a finding by an external reviewer that the school district is at moderate or high risk of intervention based on the most common indicators of a school district needing intervention, as determined by the County Office Fiscal Crisis and Management Assistance Team. If these findings are made, the county superintendent of schools shall investigate the financial condition of the school district and determine if the school district may be unable to meet its financial obligations for the current or two subsequent fiscal years, or should receive a qualified or negative interim financial certification pursuant to Section 42131. If at any time during the fiscal year the county superintendent of schools determines that a school district may be unable to meet its financial obligations for the current or two subsequent fiscal years or if a school district has a qualified or negative certification pursuant to Section 42131, the county superintendent of schools shall provide a written notice of going concern determination to the governing board of the school district and the Superintendent and the basis for the determination. The notification shall include the assumptions used in making the determination and shall be available to the public. The county superintendent of schools shall report to the Superintendent on the financial condition of the school district and the county superintendent’s proposed remedial actions and shall do at least one of the following and all actions that are necessary to ensure that the school district meets its financial obligations:
(A) Assign a fiscal expert, paid for by the county superintendent of schools, to advise the school district on its financial problems.
(B) Conduct a study of the financial and budgetary conditions of the school district that includes, but is not limited to, a review of internal controls. If, in the course of this review, the county superintendent of schools determines that the county superintendent’s office requires analytical assistance or expertise that is not available through the school district, the county superintendent of schools may employ, on a short-term basis, with the approval of the Superintendent, staff, including certified public accountants, to provide the assistance and expertise. The school district shall pay 75 percent and the county office of education shall pay 25 percent of these staff costs.
(C) Direct the school district to submit a financial projection of all fund and cash balances of the district as of June 30 of the current year and subsequent fiscal years as the county superintendent of schools requires.
(D) Require the district to encumber all contracts and other obligations, to prepare appropriate cashflow analyses and monthly or quarterly budget revisions, and to appropriately record all receivables and payables.
(E) Direct the school district to submit a proposal for addressing the fiscal conditions that resulted in the determination that the school district may not be able to meet its financial obligations.
(F) Withhold compensation of the members of the governing board of the school district and the school district superintendent for failure to provide requested financial information. This action may be appealed to the Superintendent pursuant to subdivision (b).
(G) Assign the County Office Fiscal Crisis and Management Assistance Team to review teacher hiring practices, teacher retention rate, percentage of provision of highly qualified teachers, and the extent of teacher misassignment in the school district, to provide the school district with recommendations to streamline and improve the teacher hiring process, teacher retention rate, extent of teacher misassignment, and provision of highly qualified teachers, and to perform any or all of the duties prescribed in subparagraphs (A) to (C), inclusive, or to further review the causes that led to a finding of moderate or high risk of intervention pursuant to subdivision (a) and recommend corrective action. If a review team is assigned to a school district, the school district shall follow the recommendations of the team, unless the school district shows good cause for failure to do so. The County Office Fiscal Crisis and Management Assistance Team may not recommend an action that would abrogate a contract that governs employment.
(2) Any contract entered into by a county superintendent of schools for the purposes of this subdivision is subject to the approval of the Superintendent.
(3) An employee of a school district who provides information regarding improper governmental activity, as defined in Section 44112, is entitled to the protection provided pursuant to Article 5 (commencing with Section 44110) of Chapter 1 of Part 25.
(b) Within five days of the county superintendent of schools making the determination specified in subdivision (a), a school district may appeal the basis of the determination and any of the proposed actions that the county superintendent of schools has indicated that the county superintendent of schools will take to further examine the financial condition of the school district. The Superintendent shall sustain or deny any or all parts of the appeal within 10 days.
(c) If, after taking the actions identified in subdivision (a), the county superintendent of schools determines that a school district will be unable to meet its financial obligations for the current or subsequent fiscal year, the county superintendent of schools shall notify the governing board of the school district, the superintendent of the school district, each recognized employee organization of the school district, each recognized parent organization of the school district, the Superintendent of Public Instruction, and the president of the state board or the president’s designee in writing of that determination and the basis for that determination. The notification shall include the assumptions used in making the determination.
(d) Within five days of the county superintendent of schools making the determination specified in subdivision (c), a school district may appeal that determination to the Superintendent. The Superintendent shall sustain or deny the appeal within 10 days. If the governing board of the school district appeals the determination, the county superintendent of schools may stay any action of the governing board of the school district that the county superintendent of schools determines is inconsistent with the ability of the school district to meet its financial obligations for the current or subsequent fiscal year until resolution of the appeal by the Superintendent.
(e) If the appeal described in subdivision (d) is denied or not filed, or if the school district has a negative certification pursuant to Section 42131, the county superintendent of schools, in consultation with the Superintendent, shall take at least one of the actions described in paragraphs (1) to (5), inclusive, and all actions that are necessary to ensure that the school district meets its financial obligations and shall make a report to the Superintendent and the president of the state board or the president’s designee about the financial condition of the school district and remedial actions proposed by the county superintendent of schools.
(1) Develop and impose, in consultation with the Superintendent and the governing board of the school district, a budget revision that will enable the school district to meet its financial obligations in the current fiscal year.
(2) Stay or rescind any action that is determined to be inconsistent with the ability of the school district to meet its obligations for the current or subsequent fiscal year. This includes any actions up to the point that the subsequent year’s budget is approved by the county superintendent of schools. The county superintendent of schools shall inform the governing board of the school district in writing of the county superintendent’s justification for any exercise of authority under this paragraph.
(3) Assist in developing, in consultation with the governing board of the school district, a multiyear financial recovery plan that will enable the school district to meet its future obligations.
(4) Assist in developing, in consultation with the governing board of the school district, a budget for the subsequent fiscal year. If necessary, the county superintendent of schools shall continue to work with the governing board of the school district until the budget for the subsequent year is adopted by the governing board of the school district and approved by the county superintendent of schools.
(5) As necessary, appoint a fiscal adviser to perform any or all of the duties prescribed by this section on behalf of the county superintendent of schools.
(f) Any action taken by the county superintendent of schools pursuant to paragraph (1) or (2) of subdivision (e) shall be accompanied by a notification that shall include the actions to be taken, the reasons for the actions, and the assumptions used to support the necessity for these actions.
(g) This section does not authorize the county superintendent of schools to abrogate any provision of a collective bargaining agreement that was entered into by a school district before the date that the county superintendent of schools assumed authority pursuant to subdivision (e).
(h) The school district shall pay 75 percent and the county office of education shall pay 25 percent of the administrative expenses incurred pursuant to subdivision (e) or costs associated with improving the school district’s financial management practices. The Superintendent shall develop and distribute to affected school districts and county offices of education advisory guidelines regarding the appropriate amount of administrative expenses charged pursuant to this subdivision.
(i) Notwithstanding Section 42647 or 42650 or any other law, a county treasurer shall not honor any warrant if, pursuant to Sections 42127 to 42127.5, inclusive, or pursuant to this section, the county superintendent of schools or the Superintendent, as appropriate, has disapproved that warrant or the order on school district funds for which a warrant was prepared.
(j) Effective upon the certification of the election results for a newly organized school district pursuant to Section 35763, the county superintendent of schools may exercise any of the powers and duties of this section regarding the reorganized school district and the other affected school districts until the reorganized school district becomes effective for all purposes in accordance with Article 4 (commencing with Section 35530) of Chapter 3 of Part 21.
(k) The Superintendent shall monitor the efforts of a county office of education in exercising its authority under this section and may exercise any of that authority if the Superintendent finds that the actions of the county superintendent of schools are not effective in resolving the financial problems of the school district. Upon a decision to exercise the powers of the county superintendent of schools, the county superintendent of schools is relieved of those powers assumed by the Superintendent, and shall provide support and assistance to the Superintendent in the exercise of those powers. The Superintendent shall also request that the County Office Fiscal Crisis and Management Assistance Team identify the circumstances that led to the ineffectiveness of the county superintendent of schools in resolving the financial problems of the school district, and shall require the county office of education to demonstrate, in a manner determined by the Superintendent, remediation of those deficiencies. In addition to the actions taken by the county superintendent of schools, the Superintendent shall take further actions to ensure the long-term fiscal stability of the school district. The county office of education shall reimburse the Superintendent for all of the Superintendent’s costs in exercising the Superintendent’s authority under this subdivision. The Superintendent shall promptly notify the county superintendent of schools, the county board of education, the superintendent of the school district, the governing board of the school district, the appropriate policy and fiscal committees of each house of the Legislature, and the Department of Finance of the Superintendent’s decision to exercise the authority of the county superintendent of schools.

SEC. 26.

 Section 42127.8 of the Education Code is amended to read:

42127.8.
 (a) The governing board provided for in subdivision (b) shall establish a unit to be known as the County Office Fiscal Crisis and Management Assistance Team. The team shall consist of persons having extensive experience in schoo