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AB-1202 Schools: emergency apportionments.(1989-1990)

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AB1202:v94#DOCUMENT

Assembly Bill No. 1202
CHAPTER 171

An act to amend Section 41320 of the Education Code, and to repeal Section 2 of Chapter ____ of the Statutes of 1990, as added by Assembly Bill 1273 of the 1989–90 Regular Session, relating to education, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor  June 22, 1990. Filed with Secretary of State  June 22, 1990. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1202, Campbell. Schools: emergency apportionments.
(1)  Existing law appropriates $14,000,000 from the General Fund to Section A of the State School Fund for allocation by the Superintendent of Public Instruction to the Richmond Unified School District for the purpose of an emergency loan, subject to specified conditions.
This bill would repeal that appropriation, and would appropriate $14,000,000 from the Special Account for Capital Outlay to Section A of the State School Fund for that same purpose. The bill would also specify that any amounts appropriated pursuant to the appropriation authorized under AB 1273 shall be deemed to constitute an advance in the 1989–90 fiscal year for expenditures chargeable against the General Fund for the 1990–91 fiscal year.
The bill would require the Controller, as of January 1, 1990, to transfer from the General Fund to the Special Account for Capital Outlay an amount equal to the sum appropriated from that account under this bill.
(2)  Existing law provides for emergency apportionments to school districts and imposes certain requirements as conditions to an emergency apportionment. Existing law requires, as one of the conditions, that the Legislature shall have specifically appropriated sufficient funds to make the emergency apportionment and that the act making the appropriation contain a schedule of repayments with which the district is required to comply.
This bill would provide, in the event that AB 1273 is not enacted into law, that this requirement is deleted, and would add the requirement that the district develop a schedule to repay the emergency loan and submit it to the county superintendent of schools. The bill would require the county superintendent to review and comment on the repayment schedule and submit it to the Superintendent of Public Instruction for approval. The bill would require the Superintendent of Public Instruction, upon approving the repayment schedule and other prescribed conditions, to request the Controller to disburse the proceeds of the emergency loan to the district.
This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: yes.

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


SECTION 1.

 Section 41320 of the Education Code is amended to read:

41320.
 As a condition to any emergency apportionment to be made pursuant to Section 41310, the following requirements shall be met:
(a)  The district requesting the apportionment shall submit to the county superintendent of schools having jurisdiction over the district a report issued by an independent auditor approved by the county superintendent of schools on the financial conditions and budgetary controls of the district, a written management review conducted by a qualified management consultant approved by the county superintendent of schools, and a fiscal plan adopted by the governing board to resolve the financial problems of the district.
(b)  The county superintendent of schools shall review, and provide written comment on, the independent auditor’s report, the management review, and the district plan. That written comment shall include the county superintendent’s approval or disapproval of the district plan. In the event the county superintendent disapproves the plan, the governing board shall revise the district plan to respond to the concerns expressed by the county superintendent.
(c)  Upon his or her approval of the district plan, the county superintendent of schools shall submit copies of the report, review, plan, and written comments specified in subdivision (b) to the Superintendent of Public Instruction, the Auditor General, the Joint Legislative Budget Committee, the Director of Finance, and the Controller.
(d)  The Superintendent of Public Instruction shall review the reports and comments submitted to him or her by the county superintendent of schools and shall certify to the Director of Finance that the action taken to correct the financial problems of the district is realistic and will result in placing the district on a sound financial basis.
(e)   The district shall develop a schedule to repay the emergency loan and submit it to the county superintendent of schools. The county superintendent of schools shall review and comment on the repayment schedule and submit it to the Superintendent of Public Instruction for approval or disapproval. Upon the approval of the repayment schedule, and of the other reports, reviews, plans, and the appointment of the trustee required by this article, the Superintendent of Public Instruction shall request the Controller to disburse the proceeds of the emergency loan to the district.
(f)  The district requesting the apportionment shall reimburse the county superintendent of schools for the costs incurred by the superintendent pursuant to this section.

SEC. 2.

 Section 2 of Chapter ____ of the Statutes of 1990, as added by Assembly Bill 1273 of the 1989–90 Regular Session, is repealed.

SEC. 3.

 (a)  The sum of fourteen million dollars ($14,000,000) is hereby appropriated from the Special Account for Capital Outlay to Section A of the State School Fund without regard to fiscal year for apportionment by the Superintendent of Public Instruction to the Richmond Unified School District for the purpose of an emergency loan. In order to qualify for that loan, the district shall comply with Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of the Education Code and the other conditions stipulated in this act.
(b)  The Richmond Unified School District shall develop a schedule to repay the emergency loan consistent with subdivision (e) of Section 41320 of the Education Code. Notwithstanding Section 41323 of the Education Code, the repayment schedule shall not begin before July 1, 1991, and shall not extend beyond June 30, 1998. With the exception of funds that may be needed by the district to meet its cash obligations, as described later in this section, no funds shall be disbursed from the proceeds of the loan until the repayment schedule, and the reports, reviews, plans, and the appointment of the trustee required by Article 2 (commencing with Section 41320) of Chapter 3 of Part 24 of the Education Code have been approved by the Superintendent of Public Instruction.
(c)  Based on the needs of the district to meet its cash obligations, the Superintendent of Public Instruction may direct the Controller to disburse, on a monthly basis, specific amounts of the emergency loan prior to the approval of all the conditions established by this act. The emergency loan shall be repaid to the state with interest at a rate based on the most current investement rate of the Pooled Money Investment Account as of the date of the disbursement of funds to the district.

SEC. 4.

 Due to unique circumstances relating to fiscal emergency in the Richmond Unified School District, the Legislature finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution.

SEC. 5.

 (a)  The Controller shall transfer from the General Fund to the Special Account for Capital Outlay an amount equal to the sum appropriated to Section A of the State School Fund pursuant to Section 3 of this act.
(b)  This section shall become operative July 1, 1990.

SEC. 6.

 Notwithstanding any other provision of law, all amounts appropriated under subdivision (a) of Section 2 of Assembly Bill 1273 of the 1989–90 Regular Session shall be deemed to constitute an advance in the 1989–90 fiscal year for expenditures chargeable against the General Fund for the 1990–91 fiscal year.

SEC. 7.

 (a)  Section 1 of this act shall not become operative if Assembly Bill 1273 is enacted and becomes effective on or before January 1, 1991.
(b)  Section 2 of this act shall become operative only if Assembly Bill 1273 is enacted and becomes effective on or before January 1, 1991.

SEC. 8.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to make certain revisions in a timely manner to the accounting of a designated appropriation of General Fund moneys, it is necessary that this act take effect immediately.