BILL NUMBER: SB 436	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 8, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Committee on Education (Senators Liu (Chair), Block,
Hancock,  Huff,  Leyva, Mendoza,  Monning, 
Pan,  Runner,  and Vidak))

                        FEBRUARY 25, 2015

   An act to amend Sections  1042, 11800,  
5225, 5229, 11800, 16150, 16151, 16157, 16160,  16236, 17070.75,
17088.2, 17463, 17582, 17592.5,  49073.1, 52335.12,
  35709, 41360, 42623, 49073.1, 56155.5, 56325, 56366,
56366.3, 56441.5,  and 60900 of, and to repeal Sections 17591,
 32228.5, 35294.14,48200.7,   48200.7, 
48200.8, 52171.6, 52184, and 54006 of, the Education Code, relating
to education.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 436, as amended, Committee on Education. Education: omnibus
bill. 
   (1) Existing law, until July 1, 2017, authorizes a county board of
education, subject to the concurrence of the county superintendent
of schools, to loan moneys from the proceeds of revenue anticipation
notes to a charter school for which the county board of education or
the county superintendent of schools has a supervisory responsibility
or, regardless of whether the charter school is within or outside of
the county, with which a county board of education or county
superintendent of schools has a contractual relationship. Existing
law requires the county board of education, as a condition of making
a loan to a charter school, to report to the State Department of
Education by September 15 of each year specified information on loans
made to charter schools within the prior fiscal year, and requires
the department to compile that information into one report to be
submitted by December 1 of each year to the appropriate policy and
fiscal committees of the Legislature, the Department of Finance, and
the Legislative Analyst's Office.  
   This bill would instead require the California School Finance
Authority within the State Treasurer's Office to compile the
information referenced above into the one report to be submitted by
December 1 of each year to the appropriate policy and fiscal
committees of the Legislature, the Department of Finance, and the
Legislative Analyst's Office.  
   (2) 
    (   1)  Existing law establishes the K-12
High-Speed Network, as specified, for the purpose of enriching pupil
educational experiences and improving pupil academic performance by
providing high-speed, high-bandwidth Internet connectivity to the
public schools. Existing law requires the Superintendent of Public
Instruction to use a competitive grant process to select a local
educational agency to serve as the Lead Education Agency to
administer the network on behalf of the Superintendent. Existing law
requires the Superintendent to establish a K-12 HSN advisory board to
include the Superintendent, the county superintendent of schools of
the Lead Education Agency, the President of the State Board of
Education, and other officers of local educational agencies,
including 3 schoolsite representatives, as specified.
   This bill would specify that the schoolsite representatives
appointed to the advisory board under this provision would serve
renewable 2-year terms. 
   (3) 
    (   2)  Existing law authorizes the State
Allocation Board to allocate any amount of the funds designated for
purposes of school housing aid for school districts impacted by
seasonal agricultural employment that is in excess of the amounts
needed for administration to any of specified funds, including the
State School Deferred Maintenance Fund, as provided. Existing law
separately authorizes the board to transfer any funds within the
State School Building Aid Fund that are in excess of the amounts
needed by the board for the maintenance of portable buildings or for
the purchase of new portable buildings, for that fiscal year, to any
of specified funds, including the State School Deferred Maintenance
Fund, as provided.
   This bill would delete those allocation authorizations to the
State School Deferred Maintenance Fund. 
   (4) Existing law, the Leroy F. Greene School Facilities Act of
1998 (the Greene Act of 1998), requires the State Allocation Board to
allocate to applicant school districts and county offices of
education prescribed per-unhoused-pupil state funding for
construction and modernization of school facilities, including
hardship funding, and supplemental funding for site development and
acquisition. Existing law requires the board to require school
districts and county offices of education that receive funding under
the Greene Act of 1998 to establish a restricted account within the
school district's or county office of education's general fund and to
deposit, in each fiscal year for 20 years, a minimum amount equal to
or greater than 3% of the school district's or county office of
education's total general fund expenditures, including other
financing uses, for that fiscal year into the account for maintenance
of school facilities. Existing law authorizes annual deposits into
the account in excess of 21/2% of the school district's general fund
budget to count towards the amount that a school district is required
to contribute in order to receive an apportionment from the State
School Deferred Maintenance Fund.  
   This bill would delete that authorization.  
   (5) 
    (   3)  Existing law authorizes the governing
board of a school district to establish a restricted fund known as
the "district deferred maintenance fund" for certain school
facilities purposes, including, among others, any other items of
maintenance approved by the State Allocation Board.
   This bill would remove that purpose from the list of specifically
authorized purposes, but would no longer limit the use of the fund to
the list of specifically authorized purposes. 
   (6) Existing law, the Carl Washington School Safety and Violence
Prevention Act, among other things, effectuates the intent of the
Legislature that public schools serving pupils in any of grades 8 to
12, inclusive, have access to supplemental resources to establish
programs and strategies that promote school safety and emphasize
violence prevention among children and youth in public schools. A
provision of this act requires the Superintendent of Public
Instruction to annually report to the Legislature regarding the use
of funds pursuant to the act, and to base this report on information
provided to the Superintendent by local educational agencies.
 
   This bill would delete this provision.  
   (7) Existing law, the School Safety Violence Protection Act,
effectuates the intent of the Legislature that all public schools
with any combination of instructional settings from kindergarten to
grade 7, inclusive, have access to supplemental resources to
establish programs and strategies that promote school safety and
emphasize violence prevention among children and youth in the public
schools. A provision of this act requires the Superintendent of
Public Instruction and the Attorney General to cooperatively design
an evaluation process for the programs and activities established
pursuant to the act and report to the Legislature by January 1 of
each year, as specified.  
   This bill would delete this provision.  
   (8) 
    (   4)  Existing law requires the State
Department of Education, and authorizes the Compton Unified School
District, to identify low-performing schools in the school district,
as provided, for purposes of providing extended school year
instruction. Former law, repealed by its own provisions on January 1,
2003, authorized the Compton Unified School District to receive
funding for extended year classes at those low-performing schools in
the school district, as provided. Existing law requires the
department, in conjunction with the Legislative Analyst, to contract
for 2 independent evaluations, as provided, to determine the
effectiveness of the extended school year curriculum, instructional
program, and materials in improving pupil academic outcomes at those
low-performing schools in the Compton Unified School District.
Existing law requires the results of the evaluations to be reported
on or before January 1, 2002, and January 1, 2003, respectively, to
specified persons.
   This bill would delete those obsolete provisions. 
   (9) 
    (   5)  Existing law, the Chacon-Moscone
Bilingual-Bicultural Education Act of 1976, which ceased to be
operative on June 30, 1987, required, among other things, that the
Superintendent of Public Instruction report annually to the
Legislature on bilingual education programs, as specified. The act
also required the State Department of Education to prepare and submit
to the Legislature an annual report regarding the number of
participants in the State Bilingual Teacher Training Assistance
Program and other topics related to that program.
   This bill would delete those reporting requirements. 
   (10) 
    (   6)  Existing law establishes programs to
provide state aid to public schools where pupil performance is
affected by factors such as low family income, high pupil transiency
rates, and large numbers of homes where a primary language other than
English is spoken. Existing law requires the Superintendent of
Public Instruction to submit annually to the Governor and to each
house of the Legislature a report evaluating these programs and
containing information related to specified topics.
   This bill would delete the requirement for this annual report.

   (11) 
    (   7)  This bill would also update references,
delete other obsolete provisions, make conforming changes, and make
other nonsubstantive changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 5225 of the  
Education Code   is amended to read: 
   5225.  Notwithstanding  the provisions of 
Section 5033, when a unified school district is formed pursuant to
Chapter  2 (commencing with Section 4200) of Part 3 of this
division which   4 (commencing with Section 35700) of
Part 21 of Division 3 of Title 2, which  includes a city school
district having a city board of education as provided under Section
5224, the unified school district shall be governed by said city
board of education and the governing board members thereof shall
continue in office for the remainder of their terms as elected
pursuant to  the provisions of  Section 5224.
   SEC.   2.    Section 5229 of the  
Education Code   is amended to read: 
   5229.   (a)     (1)    If a
unified  school  district governed by a board of education
of five members includes a chartered city, the charter of which
provides for a board of education, the members of which are to be
elected pursuant to this code and to hold office for the terms
provided by this code, and three members of  such 
 that  board of education were elected to hold office for a
term expiring during the school year commencing on the date the
district was formed for all purposes, the office of three members of
the board of education shall be filled at the first election of
governing board members following such   the
 date of formation for all purposes. 
    The 
    (   2)     The  term of
office of  such   the  three members 
elected pursuant to paragraph (1)  shall be determined by lot.
The term of one member shall expire on the first Friday in December
of the first succeeding odd-numbered year following his  or her
 election; and the terms of two members shall expire on the
first Friday in December of the second succeeding odd-numbered year
following their election. The persons elected to succeed 
such   the  three members shall hold office for
four years. 
    In 
    (b)     In  a unified school district
formed pursuant to Chapter  2 (commencing with Section 4200)
of Part 3 of this division which   4 (commencing with
Section 35700) of Part 21 of Division 3 of Title 2, which 
includes a chartered city, the governing board of the  school
 district shall be the board of education of such city or city
and  county; provided,   county, provided 
that all qualified electors residing within the unified school
district are eligible to vote at all elections held for the election
of members of the city board of education and any elector residing in
the district, or in a trustee area if the district is divided into
trustee areas, is eligible to serve as a member of  said
  that  board. 
    In 
    (c)     In  the event a unified
district includes a chartered  city  city, 
the governing board of the unified  school  district shall
consist of either five or seven  members  
members,  and shall be elected at large or by trustee areas, as
designated by the unification proposal, and any elector residing in
the district, or in a trustee area if the district is divided into
trustee areas, is eligible to serve as a member of the board. The
first governing board of any such unified school district shall be
elected in the manner prescribed by Section 35101, except where the
charter of the included chartered city expressly provides for the
election of the first governing board of a newly formed unified
school district, in which case  such   those
 provisions of the charter shall control the election of the
governing board. 
  SECTION 1.    Section 1042 of the Education Code,
as amended by Section 1 of Chapter 38 of the Statutes of 2012, is
amended to read:
   1042.  County boards of education may do all of the following:
   (a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
   (b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make revisions, reductions, or
additions in the annual itemized estimate it deems advisable and
proper. An annual itemized estimate shall not be filed by the county
superintendent of schools or be approved by the county board of
supervisors until it has first been so reviewed and approved by the
county board of education.
   (c) In the name by which the county board of education is
designated, acquire, lease, lease-purchase, hold, and convey real
property for the purpose of housing the offices and the services of
the county superintendent of schools, except that this subdivision
shall only apply to the county boards of education to which all or a
portion of the duties and functions of the county board of
supervisors specified in subdivision (b) of Section 1080 have been
transferred, with the exception of the recreational duties and
recreational functions specified in subdivisions (c) and (d) of
Section 1080.
   (d) Contract with and employ any persons for the furnishing to the
county board of education of special services and advice in
financial, economic, accounting, engineering, legal, or
administrative matters if these persons are specially trained and
experienced and competent to perform the special services required.
The county board of education may pay to these persons from any
available funds the compensation that it deems proper for the
services rendered.
   (e) (1) Notwithstanding Section 25304 of the Government Code, fill
by appointment any vacancy that occurs during the term of office of
the county superintendent of schools. In a county in which the county
superintendent of schools is elected, the appointee shall hold
office until the office is filled by election at the next
gubernatorial election.
   (2) The authority described in this subdivision shall be vested in
a county board of education only upon its adoption by the county
board of education at a public meeting held pursuant to Article 1
(commencing with Section 1000).
   (f) (1) Subject to the concurrence of the county superintendent of
schools pursuant to paragraph (3), use and expend moneys from the
proceeds of notes issued pursuant to the authority granted in Article
7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code, to make loans to a
charter school for which the county board of education or the county
superintendent of schools has a supervisory responsibility or,
regardless of whether the charter school is within or outside of the
county, with which the county board of education or the county
superintendent of schools has a contractual relationship pursuant to
subdivision (b) of Section 47603. Moneys borrowed by the county board
of education for the purpose of making a loan to a charter school
shall be payable solely from the funds of the charter school and
shall not constitute a debt or liability of the county board of
education or the county superintendent of schools, notwithstanding
Section 53857 of the Government Code, or any other law.
   (2) The State of California is not liable for any debt or
liability within the meaning of Section 1 of Article XVI of the
California Constitution, or otherwise, for loans made pursuant to
this subdivision.
   (3) Before the county board of education makes a loan pursuant to
this subdivision, the county superintendent of schools shall do all
of the following:
   (A) Advise the chartering authority of the charter school and the
county office of education in which the charter school is primarily
located that the charter school has requested the loan.
   (B) Allow the chartering authority and county office of education
to provide input regarding the advisability of making the loan.
   (C) Solicit a recommendation from a recognized authority on school
district financial management who is not an employee of the county
office of education about the advisability of making the loan. The
recommendation shall consider the financial condition of the charter
school, the level of risk assumed by the county office of education,
and the potential impact on the county office of education if the
charter school is unable to repay the loan.
   (D) Disclose the information received pursuant to subparagraphs
(B) and (C) at a regularly scheduled meeting of the county board of
education.
   (E) Determine whether to concur with the intent of the county
board of education to make the loan.
   (4) In any fiscal year, a charter school shall not receive more
than one loan that is made pursuant to this subdivision.
   (5) (A) As a condition of making a loan to a charter school
pursuant to this subdivision, a county board of education shall
report to the department by September 15 of each year the following
information on loans made to charter schools within the prior fiscal
year:
   (i) The name and address of each charter school that received a
loan, including the name of the county in which the charter school is
located.
   (ii) The amount of the loan, including the interest rate, that
each charter school received.
   (iii) The total amount of money loaned to charter schools by the
county board of education.
   (iv) The average duration of loans made to charter schools.
   (v) The current status of each loan, including whether or not the
charter school has repaid the loan.
   (B) No later than December 1 of each year, the California School
Finance Authority within the State Treasurer's Office shall compile
the information reported by the county boards of education pursuant
to subparagraph (A) into one report and submit this information to
the appropriate policy and fiscal committees of the Legislature, the
Department of Finance, and the Legislative Analyst's Office.
   (g) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 2.   SEC. 3.   Section 11800 of the
Education Code is amended to read:
   11800.  (a) (1) The K-12 High-Speed Network (K-12 HSN) is hereby
established for the purpose of enriching pupil educational
experiences and improving pupil academic performance by providing
high-speed, high-bandwidth Internet connectivity to the public school
system, as defined by Section 6 of Article IX of the California
Constitution.
   (2) The California Education Network is hereby established,
consisting of the California Research and Education Network (CalREN)
and the K-12 HSN.
   (b) The Superintendent shall measure the success of the K-12 HSN
and ensure that the benefits of the K-12 HSN are maximized to the
extent possible. The K-12 HSN shall provide critical services and
functions for public primary and secondary local educational
agencies, including, but not limited to, all of the following:
   (1) Reliable and cost-effective Internet service.
   (2) Reliable and secure interconnectivity among public school
entities offering kindergarten or any of grades 1 to 12, inclusive,
in California, connection to higher education institutions of
California, and connection to state and local agencies to facilitate
efficient interaction, including transmission of data.
   (3) Videoconferencing and related distance learning capabilities.
   (4) Statewide coordination of network uses to benefit teaching and
learning.
   (c) The Superintendent shall use a competitive grant process to
select a local educational agency to serve as the Lead Education
Agency to administer the K-12 HSN on behalf of the Superintendent.
   (d) The Superintendent shall establish a K-12 HSN advisory board
to be composed of all of the following members:
   (1) The Superintendent, or his or her designee.
   (2) The county superintendent of schools of the Lead Education
Agency.
   (3) A county superintendent of schools of a county with an average
daily attendance of more than 60,000 pupils, appointed by the
Superintendent. The member appointed pursuant to this paragraph shall
serve a renewable two-year term.
   (4) Three school district superintendents, appointed by the
Superintendent. Members appointed pursuant to this paragraph shall
represent school districts that are diverse as to geography and size,
and that serve socioeconomically and culturally diverse pupil
populations. Members appointed pursuant to this paragraph shall serve
renewable two-year terms.
   (5) Two county superintendents of schools appointed by the
majority of the votes of all of the county superintendents of
schools. Members appointed pursuant to this paragraph shall serve
renewable two-year terms.
   (6) Three schoolsite representatives, who shall include not less
than two classroom teachers or instructional specialists. Members
appointed pursuant to this paragraph shall serve renewable two-year
terms.
   (7) The president of the state board or his or her designee.
   (e) The advisory board shall meet quarterly and shall recommend
policy direction and broad operational guidance to the Superintendent
and the Lead Education Agency. The advisory board, in consultation
with the Lead Education Agency, shall develop recommendations for
measuring the success of the network, improving network oversight and
monitoring, strengthening accountability, and optimizing the use of
the K-12 HSN and its ability to improve education. The advisory board
shall report its recommendations to the Legislature, the Governor,
the Department of Finance, the president of the state board or his or
her designee, and the Legislative Analyst's Office by March 1, 2007.
It is the intent of the Legislature that the report identify and
recommend specific annual performance measures that should be
established to assess the effectiveness of the network.
   (f) The duties of the Lead Education Agency shall include all of
the following:
   (1) Entering into appropriate contracts for the provision of
high-speed, high-bandwidth Internet connectivity, provided such
contracts secure the necessary terms and conditions to adequately
protect the interests of the state. Terms and conditions shall
include, but are not limited to, all of the following:
   (A) Development of comprehensive service level agreements.
   (B) Protection of any ownership rights of intellectual property of
the state that result due to participation of the state in the K-12
HSN.
   (C) Appropriate protection of assets of the state acquired due to
its participation in the K-12 HSN.
   (D) Assurance that appropriate fee structures are in place.
   (E) Assurance that any interest earned on funds of the state for
this purpose are used solely to the benefit of the project.
   (2) Development of an annual budget request for the K-12 HSN for
submission to the department and the Department of Finance to be
included in the annual Budget Act.
   (3) Development, in consultation with the advisory board
established pursuant to subdivision (d), of specific goals and
objectives for the program with appropriate reporting of success
measures developed by the Superintendent pursuant to subdivision (b).

   (4) Ongoing fiscal oversight of the program, including mechanisms
to control statewide costs and exposure. To accomplish this
objective, the Lead Education Agency shall contract for an annual
independent audit of the program. The independent auditor shall
report the audit findings to the Superintendent, the Legislature, and
the Governor by December 15 of each year.
   (5) Ongoing technical oversight of the program, including external
evaluation and independent validation, where appropriate. To
accomplish this objective, the Lead Education Agency shall contract
for an independent evaluation to be completed and provided to the
Superintendent by March 1, 2009. The Superintendent shall report the
results of the evaluation, including a response and recommendations
to correct any adverse findings from the evaluation, to the Governor
and the Legislature by April 30, 2009.
   (6) (A) The Lead Education Agency shall administer grant programs
to promote the most cost-effective manner for the completion of
connectivity for all public schools of the state and cost-effective
applications that meet instructional needs to the extent that funds
are provided for these purposes in the annual Budget Act.
   (B) Before the appropriation of any state funds for the purposes
of this paragraph, the Lead Education Agency shall submit information
justifying the need for additional grant funds, including, but not
limited to, all of the following:
   (i) The number of schools and school districts that are already
connected.
   (ii) The means by which the costs associated with connectivity
were covered for schools and school districts that are already
connected.
   (iii) Obstacles to connection for those schools and school
districts that are not yet connected.
   (iv) Other local options and funding sources for purposes of
connectivity and applications.
   SEC.   4.    Section 16150 of the  
Education Code   is amended to read: 
   16150.  (a) As used in this article: 
   (1) "State-aided district" means a district to which a conditional
or final apportionment has been made under this chapter. 

   (2) 
    (   1)  "Acquiring district" means a district
in which all or a part  of,   of  a
state-aided district or an applicant district has been included.

   (3) 
    (   2)  "Original district" means a state-aided
or applicant district included in whole or in part in an acquiring
district. 
   (3) "State-aided district" means a district to which a conditional
or final apportionment has been made under this chapter. 
   (b) For  the  purposes of this article as it
applies to an acquiring district, the effective date of any change of
boundaries, annexation, formation of a new district, or other
reorganization shall be:
   (1) For granting conditional apportionments: the date the action
became effective for  the  purposes of Sections
 4062 and 4063.   35   532 and 35 
 533. 
   (2) For making conditional apportionments final: the date the
action became effective for  the  purposes of
Sections  4062 and 4063.   35   532 and
35   533. 
   (c) For  the  purposes of this article as it
applies to an original district, the effective date of any change of
boundaries, annexation, formation of a new district, or other
reorganization in which the original district is included in whole or
in part in an acquiring district shall be:
   (1) For granting conditional apportionments: the date the action
becomes effective for all purposes as specified in Section 
4064.   35  534. 
   (2) For making conditional apportionments final: the date the
action became effective for all purposes as specified in Section
 4064.   35   534. 
   (3) No conditional apportionment may be made to any original
district affected by any reorganization after the date  such
  that  action became effective for  the
 purposes of Sections  4062 and 4063  
35532 and 35533  except upon an application that has the
approval of the governing board of the acquiring district.
   SEC.   5.    Section 16151 of the  
Education Code   is amended to read: 
   16151.  On the date an acquiring district becomes effective for
all purposes, as specified in Section  4064,  
35534,  the authority to accept a state loan voted by an
original district pursuant to this chapter whose boundaries are
coterminous with the boundaries of the acquiring district shall
become authority of the acquiring district to accept a state loan.
However, when the proceeds of bonds authorized and sold by the
acquiring district are applied toward the reduction of apportionments
made to an original district  which   that
 is included in whole in the acquiring district pursuant to
Section 16058, the amount of bond proceeds shall be excluded in
determining the amount chargeable against any apportionment
authorized to be accepted by the electorate of the original or
acquiring district.
   SEC.   6.    Section 16157 of the  
Education Code   is amended to read: 
   16157.   Whenever,   If,  subsequent to
the date on which a conditional apportionment made to a district
becomes final, the state-aided district is included in whole in
another district, the acquiring district shall, on the effective date
of the inclusion, succeed to and be vested with all of the duties,
powers, purposes, jurisdiction, and responsibilities of the
state-aided district with respect to the apportionment and the
property acquired or to be acquired from funds provided thereby, and
all funds in the state school building fund of the state-aided
district shall be transferred to the state school building fund of
the acquiring district. All amounts  which  
that  would, after the effective date of the inclusion, have
been otherwise paid to the state-aided district under the terms of or
pursuant to the apportionment, shall be paid to the acquiring
district. In addition, the acquiring district shall, on the effective
date of the inclusion of the state-aided district in the acquiring
district as fixed by Section  4064,   35534,
 become liable for the annual repayments and other payments due
the state under Section 16075 and other provisions of this chapter
with respect to the apportionment or the property acquired or to be
acquired therewith.
   SEC.   7.    Section 16160 of the  
Education Code   is amended to read: 
   16160.  Notwithstanding  the provisions of 
Sections 16159 and 16161, in situations where an applicant district
at the elementary grade level under this chapter is divided into
three parts, each of which is included in a newly formed unified
school district, each part shall be excluded in determining the state
loan repayment liability for any apportionment made to the original
district subsequent to the date the unification is effective for
purposes of Section  4062 (Sec. 1, Ch. 873, Stats. 1972),
provided:   35   532,   provided that
all of the following occur: 
   (a) The assessed valuation of the part is less than 4 percent of
the original district in the fiscal year immediately preceding the
fiscal year the change is made effective for all purposes.
   (b) The average daily attendance in the part is excluded in
determining projected enrollment of the original district for
additional state aid during the period after the change is effective
for purposes of Section 4062 (Sec. 1, Ch. 873, Stats. 1972)
and prior to   35532 and before  the effective date
for all purposes.
   (c) The part contains no sites, plans, or school facilities, which
were acquired under this chapter or under Chapter 4 (commencing with
Section  15700) of this part.   15700). 
   SEC. 3.  SEC. 8.   Section 16236 of the
Education Code is amended to read:
   16236.  Notwithstanding any other law, the board may allocate any
amount of the funds designated for purposes of this article that is
in excess of the amounts needed for the administration of this
article to any of the following:
   (a) The Emergency School Classroom Fund for allocation by the
board for any purpose authorized pursuant to that fund.
   (b) The 1998 State School Facilities Fund for allocation by the
board for any purpose authorized to that fund.
   (c) The 2002 State School Facilities Fund for allocation by the
board for any purpose authorized to that fund.
   (d) The 2004 State School Facilities Fund for allocation by the
board for any purpose authorized to that fund.
   (e) If the voters approve the Kindergarten-University Public
Education Facilities Bond Act of 2006 at the November 7, 2006,
statewide general election, the 2006 State School Facilities Fund for
allocation by the board for any purpose authorized to that fund.

  SEC. 4.    Section 17070.75 of the Education Code
is amended to read:
   17070.75.  (a) The board shall require the school district to make
all necessary repairs, renewals, and replacements to ensure that a
project is at all times maintained in good repair, working order, and
condition. All costs incurred for this purpose shall be borne by the
school district.
   (b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following before the approval of a project:
   (1) 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, according the
highest priority to funding for the purposes set forth in subdivision
(a).
   (2) (A) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the total general fund expenditures of the applicant
school district, including other financing uses, for that fiscal
year.
   (B) A school district contribution to the account may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section. A school district that serves as the
administrative unit for a special education local plan
                             area may elect to exclude from its total
general fund expenditures, for purposes of this paragraph, the
distribution of revenues that are passed through to participating
members of the special education local plan area.
   (C) This paragraph applies only to the following school districts:

   (i) High school districts with an average daily attendance greater
than 300 pupils.
   (ii) Elementary school districts with an average daily attendance
greater than 900 pupils.
   (iii) Unified school districts with an average daily attendance
greater than 1,200 pupils.
   (3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2). The plan may provide that
the school district need not expend all of its annual allocation for
ongoing and major maintenance in the year in which it is deposited if
the cost of major maintenance requires that the allocation be
carried over into another fiscal year. However, any state funds
carried over into a subsequent year may not be counted toward the
annual minimum contribution by the school district.
   (c) A school district to which paragraph (2) of subdivision (b)
does not apply shall certify to the board that it can reasonably
maintain its facilities with a lesser level of maintenance.
   (d) For purposes of calculating a county office of education
requirement pursuant to this section, the 3-percent maintenance
requirement shall be based upon the county office of education
general fund less any restricted accounts.
   (e) As a condition of participation in the school facilities
program, a school district shall establish a facilities inspection
system to ensure that each of its schools is maintained in good
repair.
   (f) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002. 
   SEC. 9.    Section   17070.75 of the 
 Education Code   is amended to read: 
   17070.75.  (a) The board shall require the school district to make
all necessary repairs, renewals, and replacements to ensure that a
project is at all times maintained in good repair, working order, and
condition. All costs incurred for this purpose shall be borne by the
school district.
   (b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following before the approval of a project:
   (1) 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, according the
highest priority to funding for the purposes set forth in subdivision
(a). Funds in the account may be used for drought mitigation
purposes related to the implementation of Executive Order B-29-15.
   (2) (A) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the total general fund expenditures of the applicant
school district, including other financing uses, for that fiscal
year.
   (B) Notwithstanding subparagraph (A), for the 2015-16 and 2016-17
fiscal years, the minimum amount required to be deposited into the
account established pursuant to paragraph (1) shall be the lesser of
the following amounts:
   (i) Three percent of the total general fund expenditures for that
fiscal year.
   (ii) The amount that the school district deposited into the
account in the 2014-15 fiscal year.
   (C) Notwithstanding subparagraph (A), for the 2017-18 to 2019-20
fiscal years, inclusive, the minimum amount required to be deposited
into the account established pursuant to paragraph (1) shall be the
greater of the following amounts:
   (i) The lesser of 3 percent of the general fund expenditures for
that fiscal year or the amount that the school district deposited
into the account in the 2014-15 fiscal year.
   (ii) Two percent of the total general fund expenditures of the
applicant school district for that fiscal year.
   (D) A school district contribution to the account may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section. A school district that serves as the
administrative unit for a special education local plan area may elect
to exclude from its total general fund expenditures, for purposes of
this paragraph, the distribution of revenues that are passed through
to participating members of the special education local plan area.
   (E) This paragraph applies only to the following school districts:

   (i) High school districts with an average daily attendance greater
than 300 pupils.
   (ii) Elementary school districts with an average daily attendance
greater than 900 pupils.
   (iii) Unified school districts with an average daily attendance
greater than 1,200 pupils.
   (F) It is the intent of the Legislature that a school district
shall be required to comply with the requirements of subparagraph (A)
in the year in which the local control funding formula is fully
implemented.
   (3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2). The plan may provide that
the school district need not expend all of its annual allocation for
ongoing and major maintenance in the year in which it is deposited if
the cost of major maintenance requires that the allocation be
carried over into another fiscal year. However, any state funds
carried over into a subsequent year may not be counted toward the
annual minimum contribution by the school district.
   (c) A school district to which paragraph (2) of subdivision (b)
does not apply shall certify to the board that it can reasonably
maintain its facilities with a lesser level of maintenance.
   (d) For purposes of calculating a county office of education
requirement pursuant to this section, the applicable maintenance
requirement specified in paragraph (2) of subdivision (b) shall be
based upon the county office of education general fund less any
restricted accounts.
   (e) (1) This subdivision shall only apply to a school district
that received funds pursuant to this chapter equal to or greater than
10 percent of the State School Facilities Funds of 1998, 2002, 2004,
and 2006.
   (2) Notwithstanding subparagraphs (B) and (C) of paragraph (2) of
subdivision (b), a school district shall comply with the requirements
of subparagraph (A) of paragraph (2) of subdivision (b) if the
amount available in any fiscal year for the public school system
pursuant to Section 8 of Article XVI of the California Constitution
is equal to or greater than the amount available in the prior fiscal
year, unless a school district has locally negotiated an alternative
minimum annual deposit percentage in a collective bargaining
agreement with the representatives of the school district's skilled
crafts employees.
   (3) Under no circumstances shall a school district deposit less
than the amounts required in subparagraphs (B) and (C) of paragraph
(2) of subdivision (b).
   (4) This subdivision shall be operative from July 1, 2015, until
June 30, 2020.
   (f) As a condition of participation in the school facilities
 program or the receipt of funds pursuant to Section 17582,
  program,  for a fiscal year after the 2004-05
fiscal year, a school district shall establish a facilities
inspection system to ensure that each of its schools is maintained in
good repair.
   (g) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.
   SEC. 5.   SEC. 10.   Section 17088.2 of
the Education Code is amended to read:
   17088.2.  Notwithstanding any other law, the board may transfer
any funds within the State School Building Aid Fund that are in
excess of the amounts needed by the board for the maintenance of
portable buildings or for the purchase of new portable buildings, for
that fiscal year, to any of the following, as appropriate:
   (a) The 1998 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
   (b) The 2002 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
   (c) The 2004 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
   SEC. 6.   SEC. 11.   Section 17463 of
the Education Code is amended to read:
   17463.  Notwithstanding Section 17462, a school district having an
average daily attendance of less than 10,001 in any fiscal year may
deposit any and all interest earned on the funds derived from the
sale in that fiscal year of surplus property into the general fund of
the school district for any general fund purpose, subject to the
following conditions:
   (a) Before that deposit, the school district shall submit to the
State Allocation Board a capital outlay plan for the school district
for a period of five years following that sale, together with a
declaration of the finding by the governing board of the school
district that the school facilities needs of the school district can
be met over that five-year period without funding or other assistance
from any state school facilities funding program. No later than the
date upon which that initial five-year period concludes, the school
district shall submit to the State Allocation Board a capital outlay
plan for the school district for the subsequent five-year period.
   (b) Before the decision to place that interest money into the
school district's general fund, the governing board of the school
district shall consider the extent to which it is necessary or
appropriate to expend that money to meet the school district's needs
relative to capital outlay, facilities, modernization, and deferred
maintenance. In addition, as to any interest money deposited into the
school district's general fund pursuant to this section, the
governing board of the school district shall consider the extent to
which it is necessary or appropriate to expend the money to meet the
school district's needs relative to ongoing maintenance before
expending that money for any other purpose.
   (c) A school district that deposits interest into its general fund
pursuant to the authority set forth in this section shall not be
eligible during the 10-year period described in subdivision (a) for
funding or other assistance under Chapter 12 (commencing with Section
17000) or Chapter 14 (commencing with Section 17085) of Part 10, or
any other state school facilities funding program.
   (d) If a school district seeks state funding pursuant to Chapter
12 (commencing with Section 17000) of Part 10, Chapter 14 (commencing
with Section 17085) of Part 10, or any other state school facilities
funding program, on or after the expiration of the 10-year period
specified in subdivision (c), any state funding received by the
school district from the program shall be reduced by any remaining
funds derived from the sale of that surplus property by the school
district and any unencumbered interest earned on those funds.
   SEC. 7.   SEC. 12.   Section 17582 of
the Education Code is amended to read:
   17582.  (a) The governing board of a school district may establish
a restricted fund to be known as the "district deferred maintenance
fund" for purposes including, but not limited to, major repair or
replacement of plumbing, heating, air conditioning, electrical,
roofing, and floor systems; the exterior and interior painting of
school buildings; the inspection, sampling, and analysis of building
materials to determine the presence of asbestos-containing materials;
the encapsulation or removal of asbestos-containing materials; the
inspection, identification, sampling, and analysis of building
materials to determine the presence of lead-containing materials; and
the control, management, and removal of lead-containing materials.
Funds deposited in the district deferred maintenance fund may be
received from any source and shall be accounted for separately from
all other funds and accounts and retained in the district deferred
maintenance fund for purposes of this section. The term "school
building" as used in this article includes a facility that a county
office of education is authorized to use pursuant to Article 3
(commencing with Section 17280) of Chapter 3.
   (b) Funds deposited in the district deferred maintenance fund
shall only be expended for maintenance purposes as provided pursuant
to subdivision (a).
   (c) The governing board of each school district shall have
complete control over the funds and earnings of funds once deposited
in the district deferred maintenance fund.
   SEC. 8.   SEC. 13.   Section 17591 of
the Education Code is repealed.
   SEC. 9.   SEC. 14.   Section 17592.5 of
the Education Code is amended to read:
   17592.5.  The Southern California Regional Occupational Center and
the Metropolitan Education District, each of which is a joint powers
authority, shall be deemed to be school districts for purposes of
Sections 17582, 17589, and 17590. 
  SEC. 10.    Section 32228.5 of the Education Code
is repealed.  
  SEC. 11.    Section 35294.14 of the Education Code
is repealed. 
   SEC. 15.    Section 35709 of the   Education
Code   is amended to read: 
   35709.  If the following conditions are met, the county committee
may approve the petition and order that the petition be granted, and
shall so notify the county board of supervisors:
   (a) The county committee finds that the conditions enumerated in
paragraphs (1) to (10), inclusive, of subdivision (a) of Section
35753 are substantially met, and:
   (b) Either:
   (1) The petition is to transfer uninhabited territory from one
district to another and the owner of the territory, or a majority of
the owners of the territory, and the governing boards of all school
districts involved in the transfer consent to the transfer; or
   (2) The petition is to transfer inhabited territory of less than
10 percent of the assessed valuation of the district from which the
territory is being transferred, and  all of the governing
boards have consented   the governing board of each
school district involved in the transfer consent  to the
transfer.
   SEC. 16.    Section 41360 of the   Education
Code   is amended to read: 
   41360.   (a)    Loans may be made from moneys in
the Public School District Organization Revolving Fund to newly
organized elementary, high school, or unified school districts upon
application of the governing board of any such  school 
district, certified by the county superintendent of schools and
approved by the Superintendent  of Public Instruction
 for use by the  school  district during the period
from the date the action to form the  school  district was
completed and the date the  school  district becomes
effective for all purposes. Money loaned to a  school 
district pursuant to this section shall be used only to meet 
(a) the   one or more of the following: 
    (1)     The  expenses of office
rental, office supplies, postage, telephone, and 
telegraphing; (b) the   telegraphing. 
    (2)     The  expenses of necessary
elections required by law or authorized by Section  4062; and
(c) the   35   532. 
    (3)     The  expenses of employing,
the salary of, and necessary travel expenses of officers and
necessary clerical help for the governing board. 
 board of the school district.  
    During 
    (b)     During  each of the two
successive fiscal years commencing with the first fiscal year of the
existence of the school district for all purposes, the State
Controller shall deduct from apportionments made to  such
  that  school district an amount equal to one-half
of the amount loaned to  such   that 
school district under this section and pay the same amount into the
Public School District Organization Revolving Fund in the State
Treasury.
   SEC. 17.    Section 42623 of the   Education
Code   is amended to read: 
   42623.   (a)    Upon the request of the county
board of education on behalf of a newly organized school district,
and upon the order of the county board of supervisors of the county
or city and county, the auditor and treasurer of the county or city
and county shall make a temporary transfer from any funds of the
county or city and county not immediately needed to pay claims
against them to the general fund of the newly organized school
district for the purpose of meeting the current expense of the 
school  district until  such time as  the 
school  district receives its first state apportionments or 
school  district tax funds. Upon the making of the transfer,
the auditor shall immediately notify the superintendent of schools of
the county or the city and county of the amount transferred.

    The 
    (b)     The  funds transferred under
this section to the general fund of a newly organized school district
shall be retransferred by the auditor and the treasurer to the fund
from which they were taken from the first moneys accruing to the
school district after it becomes effective for all purposes pursuant
to Section 4000   35534  and before any
other obligation of the school district is paid from the money
accruing.
   SEC. 12.   SEC. 18.   Section 48200.7 of
the Education Code is repealed.
   SEC. 13.   SEC. 19.   Section 48200.8 of
the Education Code is repealed.
   SEC. 14.   SEC. 20.   Section 49073.1 of
the Education Code is amended to read:
   49073.1.  (a) A local educational agency may, pursuant to a policy
adopted by its governing board or, in the case of a charter school,
its governing body, enter into a contract with a third party for
either or both of the following purposes:
   (1) To provide services, including cloud-based services, for the
digital storage, management, and retrieval of pupil records.
   (2) To provide digital educational software that authorizes a
third-party provider of digital educational software to access,
store, and use pupil records in accordance with the contractual
provisions listed in subdivision (b).
   (b) A local educational agency that enters into a contract with a
third party for purposes of subdivision (a) shall ensure the contract
contains all of the following:
   (1) A statement that pupil records continue to be the property of
and under the control of the local educational agency.
   (2) Notwithstanding paragraph (1), a description of the means by
which pupils may retain possession and control of their own
pupil-generated content, if applicable, including options by which a
pupil may transfer pupil-generated content to a personal account.
   (3) A prohibition against the third party using any information in
the pupil record for any purpose other than those required or
specifically permitted by the contract.
   (4) A description of the procedures by which a parent, legal
guardian, or eligible pupil may review personally identifiable
information in the pupil's records and correct erroneous information.

   (5) A description of the actions the third party will take,
including the designation and training of responsible individuals, to
ensure the security and confidentiality of pupil records. Compliance
with this requirement shall not, in itself, absolve the third party
of liability in the event of an unauthorized disclosure of pupil
records.
   (6) A description of the procedures for notifying the affected
parent, legal guardian, or eligible pupil in the event of an
unauthorized disclosure of the pupil's records.
   (7) (A) A certification that a pupil's records shall not be
retained or available to the third party upon completion of the terms
of the contract and a description of how that certification will be
enforced.
   (B) The requirements provided in subparagraph (A) shall not apply
to pupil-generated content if the pupil chooses to establish or
maintain an account with the third party for the purpose of storing
that content pursuant to paragraph (2).
   (8) A description of how the local educational agency and the
third party will jointly ensure compliance with the federal Family
Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g).
   (9) A prohibition against the third party using personally
identifiable information in pupil records to engage in targeted
advertising.
   (c) In addition to any other penalties, a contract that fails to
comply with the requirements of this section shall be rendered void
if, upon notice and a reasonable opportunity to cure, the
noncompliant party fails to come into compliance and cure any defect.
Written notice of noncompliance may be provided by any party to the
contract. All parties subject to a contract voided under this
subdivision shall return all pupil records in their possession to the
local educational agency.
   (d) For purposes of this section, the following terms have the
following meanings:
   (1) "Deidentified information" means information that cannot be
used to identify an individual pupil.
   (2) "Eligible pupil" means a pupil who has reached 18 years of
age.
   (3) "Local educational agency" includes school districts, county
offices of education, and charter schools.
   (4) "Pupil-generated content" means materials created by a pupil,
including, but not limited to, essays, research reports, portfolios,
creative writing, music or other audio files, photographs, and
account information that enables ongoing ownership of pupil content.
"Pupil-generated content" does not include pupil responses to a
standardized assessment where pupil possession and control would
jeopardize the validity and reliability of that assessment.
   (5) (A) "Pupil records" means both of the following:
   (i) Any information directly related to a pupil that is maintained
by the local educational agency.
   (ii) Any information acquired directly from the pupil through the
use of instructional software or applications assigned to the pupil
by a teacher or other local educational agency employee.
   (B) "Pupil records" does not mean any of the following:
   (i) Deidentified information, including aggregated deidentified
information, used by the third party to improve educational products,
for adaptive learning purposes, and for customizing pupil learning.
   (ii) Deidentified information, including aggregated deidentified
information, used to demonstrate the effectiveness of the operator's
products in the marketing of those products.
   (iii) Deidentified information, including aggregated deidentified
information, used for the development and improvement of educational
sites, services, or applications.
   (6) "Third party" refers to a provider of digital educational
software or services, including cloud-based services, for the digital
storage, management, and retrieval of pupil records.
   (e) If the provisions of this section are in conflict with the
terms of a contract in effect before January 1, 2015, the provisions
of this section shall not apply to the local educational agency or
the third party subject to that agreement until the expiration,
amendment, or renewal of the agreement.
   (f) Nothing in this section shall be construed to impose liability
on a third party for content provided by any other third party.
   SEC. 15.   SEC. 21.   Section 52171.6 of
the Education Code is repealed.
   SEC. 16.   SEC. 22.   Section 52184 of
the Education Code is repealed. 
  SEC. 17.    Section 52335.12 of the Education Code
is amended to read:
   52335.12.  (a) As a condition of receiving additional funding
based on average daily attendance, the regional occupational center
or program shall report annually to the department the academic and
workforce preparation progress of the secondary pupils enrolled in
the center or program. Indicators to measure that progress shall
include, but are not limited to, the California Assessment of Student
Performance and Progress, pursuant to Article 4 (commencing with
Section 60640) of Chapter 5 of Part 33; the high school exit
examination, pursuant to Chapter 9 (commencing with 60850) of Part
33; and other indicators of academic and workforce preparation
success, such as reduced dropout rates, workforce preparation,
increased matriculation into postsecondary educational institutions,
and other measures as determined by the department.
   (b) This section shall become effective only when the longitudinal
data on pupils enrolled in regional occupational centers and
programs can be disaggregated from the California Longitudinal Pupil
Achievement Data System (CALPADs) database, established pursuant to
Chapter 10 (commencing with Section 60900) of Part 33.
   (c) On or before October 1, 2007, the department shall submit to
the Department of Finance a detailed proposal for the implementation
of the outcome reports required in subdivision (a). The proposal
shall identify the specific data elements to be collected and the
costs associated with the data collection and preparation of the
report. The department shall consult with the Department of Finance
and the office of the Legislative Analyst during the development of
this proposal. 
   SEC. 18.   SEC. 23.   Section 54006 of
the Education Code is repealed.
   SEC. 24.    Section 56155.5 of the  
Education Code   is amended to read: 
   56155.5.  (a) As used in this article, "licensed children's
institution" means a residential facility that is licensed by the
state, or other public agency having delegated authority by contract
with the state to license, to provide nonmedical care to children,
including, but not limited to, individuals with exceptional needs.
"Licensed children's institution" includes a group home as defined by
subdivision (g) of Section 80001 of Title 22 of the California Code
of Regulations. As used in this article and Article 3 (commencing
with Section  56836.16)   56836.165)  of
Chapter 7.2, a "licensed children's institution" does not include
                                        any of the following:
   (1) A juvenile court school, juvenile hall, juvenile home, day
center, juvenile ranch, or juvenile camp administered pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27.
   (2) A county community school program provided pursuant to Section
1981.
   (3) Any special education programs provided pursuant to Section
56150.
   (4) Any other public agency.
   (b) As used in this article, "foster family home" means a family
residence that is licensed by the state, or other public agency
having delegated authority by contract with the state to license, to
provide 24-hour nonmedical care and supervision for not more than six
foster children, including, but not  necessarily  limited
to, individuals with exceptional needs. "Foster family home" includes
a small family home as defined in paragraph (6) of subdivision (a)
of Section 1502 of the Health and Safety Code.
   SEC. 25.    Section 56325 of the   Education
Code   is amended to read: 
   56325.  (a) (1) As required by subclause (I) of clause (i) of
subparagraph (C) of paragraph (2) of subsection (d) of Section 1414
of Title 20 of the United States Code, the following shall apply to
special education programs for individuals with exceptional needs who
transfer from district to district within the state. In the case of
an individual with exceptional needs who has an individualized
education program and transfers into a district from a district not
operating programs under the same local plan in which he or she was
last enrolled in a special education program within the same academic
year, the local educational agency shall provide the pupil with a
free appropriate public education, including services comparable to
those described in the previously approved individualized education
program, in consultation with the parents, for a period not to exceed
30 days, by which time the local educational agency shall adopt the
previously approved individualized education program or shall
develop, adopt, and implement a new individualized education program
that is consistent with federal and state law.
   (2) In the case of an individual with exceptional needs who has an
individualized education program and transfers into a district from
a district operating programs under the same special education local
plan area of the district in which he or she was last enrolled in a
special education program within the same academic year, the new
district shall continue, without delay, to provide services
comparable to those described in the existing approved individualized
education program, unless the parent and the local educational
agency agree to develop, adopt, and implement a new individualized
education program that is consistent with federal and state law.
   (3) As required by subclause (II) of clause (i) of subparagraph
(C) of paragraph (2) of subsection (d) of Section 1414 of Title 20 of
the United States Code, the following shall apply to special
education programs for individuals with exceptional needs who
transfer from an educational agency located outside the State of
California to a district within California. In the case of an
individual with exceptional needs who transfers from district to
district within the same academic year, the local educational agency
shall provide the pupil with a free appropriate public education,
including services comparable to those described in the previously
approved individualized education program, in consultation with the
parents, until the local educational agency conducts an assessment
pursuant to paragraph (1) of subsection (a) of Section 1414 of Title
20 of the United States Code, if determined to be necessary by the
local educational agency, and develops a new individualized education
program, if appropriate, that is consistent with federal and state
law.
   (b) (1) To facilitate the transition for an individual with
exceptional needs described in subdivision (a), the new school in
which the individual with exceptional needs enrolls shall take
reasonable steps to promptly obtain the pupil's records, including
the individualized education program and supporting documents and any
other records relating to the provision of special education and
related services to the pupil, from the previous school in which the
pupil was enrolled, pursuant to paragraph (2) of subsection (a) of
Section 99.31 of Title 34 of the Code of Federal Regulations.
   (2) The previous school in which the individual with exceptional
needs was enrolled shall take reasonable steps to promptly respond to
the request from the new school.
   (c) If whenever a pupil described in subdivision (a) was placed
and residing in a residential nonpublic, nonsectarian school, prior
to transferring to a district in another special education local plan
area, and this placement is not eligible for funding pursuant to
Section  56836.16,   56836.165,  the
special education local plan area that contains the district that
made the residential nonpublic, nonsectarian school placement is
responsible for the funding of the placement, including related
services, for the remainder of the school year. An extended year
session is included in the school year in which the session ends.
   SEC. 26.    Section 56366 of the   Education
Code   is amended to read: 
   56366.  It is the intent of the Legislature that the role of a
nonpublic, nonsectarian school or agency shall be maintained and
continued as an alternative special education service available to a
local educational agency and parents.
   (a) The master contract for nonpublic, nonsectarian school or
agency services shall be developed in accordance with the following
provisions:
   (1) The master contract shall specify the general administrative
and financial agreements, including teacher-to-pupil ratios, between
the nonpublic, nonsectarian school or agency and the local
educational agency to provide the special education and designated
instruction and services, as well as transportation specified in each
pupil's individualized education program. The administrative
provisions of the contract also shall include procedures for
recordkeeping and documentation, and the maintenance of school
records by the contracting local educational agency to ensure that
appropriate high school graduation credit is received by each pupil.
The contract may allow for partial or full-time attendance at the
nonpublic, nonsectarian school.
   (2) (A) The master contract shall include an individual services
agreement for each pupil placed by a local educational agency that
will be negotiated for the length of time for which nonpublic,
nonsectarian school or agency special education and designated
instruction and services are specified in the pupil's individualized
education program.
   (B) The master contract shall include a description of the process
being utilized by the local educational agency to oversee and
evaluate placements in nonpublic, nonsectarian schools, as required
by federal law. This description shall include a method for
evaluating whether each pupil is making appropriate educational
progress. At least once every year, the local educational agency
shall do all of the following and, to the extent possible, the
following shall be conducted as part of the development and provision
of an individualized education program:
   (i) Evaluate the educational progress of each pupil placed in a
nonpublic, nonsectarian school, including all state assessment
results pursuant to the requirements of Section 52052.
   (ii) Consider whether or not the needs of the pupil continue to be
best met at the nonpublic, nonsectarian school and whether changes
to the individualized education program of the pupil are necessary,
including whether the pupil may be transitioned to a public school
setting. This consideration shall be made at the meeting required by
subdivision (d) of Section 56343.
   (C) In the case of a nonpublic, nonsectarian school that is owned,
operated by, or associated with a licensed children's institution,
the master contract shall include a method for evaluating whether the
nonpublic, nonsectarian school is in compliance with the mandate set
forth in Section 56366.9 of this code and subdivision (b) of Section
1501.1 of the Health and Safety Code.
   (3)  (A)    Changes in educational instruction,
services, or placement provided under contract may only be made on
the basis of revisions to a pupil's individualized education program.

    At 
    (B)     At  any time during the term
of the contract or individual services agreement, the parent, the
nonpublic, nonsectarian school or agency, or the local educational
agency may request a review of a pupil's individualized education
program by the individualized education program team. Changes in the
administrative or financial agreements of the master contract that do
not alter the individual services agreement that outlines each pupil'
s educational instruction, services, or placement may be made at any
time during the term of the contract as mutually agreed by the
nonpublic, nonsectarian school or agency and the local educational
agency.
   (4) The master contract or individual services agreement may be
terminated for cause. The cause shall not be the availability of a
public class initiated during the period of the contract unless the
parent agrees to the transfer of the pupil to a public school
program. To terminate the contract either party shall give 20 days'
notice.
   (5) The nonpublic, nonsectarian school or agency shall provide all
services specified in an individualized education program, unless
the nonpublic, nonsectarian school or agency and the local
educational agency agree otherwise in the contract or individual
services agreement.
   (6) Related services provided pursuant to a nonpublic,
nonsectarian agency master contract shall only be provided during the
period of a pupil's regular or extended school year program, or
both, unless otherwise specified by the pupil's individualized
education program.
   (7) The nonpublic, nonsectarian school or agency shall report
attendance of pupils receiving special education and designated
instruction and services, as defined by Section 46307, for purposes
of submitting a warrant for tuition to each contracting local
educational agency.
   (8) (A) A nonpublic, nonsectarian school is subject to the
alternative accountability system developed pursuant to Section 52052
in the same manner as public schools and each pupil placed in the
nonpublic, nonsectarian school by a local educational agency shall be
tested by qualified staff of the nonpublic, nonsectarian school in
accordance with that accountability program. The test results shall
be reported by the nonpublic, nonsectarian school to the department.
   (B) Beginning with the 2006-07 school year testing cycle, each
nonpublic, nonsectarian school shall determine its  STAR
testing   California Assessment of Student Performance
and Progress  period subject to subdivisions (b) and (c) of
Section 60640. The nonpublic, nonsectarian school shall determine
this period based on completion of 85 percent of the instructional
year at that nonpublic, nonsectarian school, plus and minus 10 days,
resulting in a 21-day period. Each nonpublic, nonsectarian school
shall notify the district of residence of a pupil enrolled in the
school of its testing period. Staff at the nonpublic, nonsectarian
school who administer the assessments shall attend the regular
testing training sessions provided by the district of residence. If
staff from a nonpublic, nonsectarian school have received training
from one local educational agency, that training  will
  shall  be sufficient for all local educational
agencies that send pupils to the nonpublic, nonsectarian school. The
district of residence shall order testing materials for its pupils
that have been placed in the nonpublic, nonsectarian school. The
board shall adopt regulations to facilitate the distribution of and
collection of testing materials.
   (9) With respect to a nonpublic, nonsectarian school, the school
shall prepare a school accountability report card in accordance with
Section 33126.
   (b)  (1)    The master contract or individual
services agreement shall not include special education transportation
provided through the use of services or equipment owned, leased, or
contracted by a local educational agency for pupils enrolled in the
nonpublic, nonsectarian school or agency unless provided directly or
subcontracted by that nonpublic, nonsectarian school or agency.

    The superintendent 
    (2)     The Superintendent  shall
withhold 20 percent of the amount apportioned to a local educational
agency for costs related to the provision of nonpublic, nonsectarian
school or agency placements if the  superintendent 
 Superintendent  finds that the local educational agency is
in noncompliance with this subdivision. This amount shall be withheld
from the apportionments in the fiscal year following the 
superintendent's   Superintendent's  finding of
noncompliance. The  superintendent  
Superintendent  shall take other appropriate actions to prevent
noncompliant practices from occurring and report to the Legislature
on those actions.
   (c) (1) If a pupil is enrolled in a nonpublic, nonsectarian school
or agency with the approval of the local educational agency prior to
agreement to a contract or individual services agreement, the local
educational agency shall issue a warrant, upon submission of an
attendance report and claim, for an amount equal to the number of
creditable days of attendance at the per diem tuition rate agreed
upon prior to the enrollment of the pupil. This provision shall be
allowed for 90 days during which time the contract shall be
consummated.
   (2) If after 60 days the master contract or individual services
agreement has not been finalized as prescribed in paragraph (1) of
subdivision (a), either party may appeal to the county superintendent
of schools, if the county superintendent  of schools  is
not participating in the local plan involved in the nonpublic,
nonsectarian school or agency contract, or the 
superintendent,   Superintendent,  if the county
superintendent  of schools  is participating in the local
plan involved in the contract, to negotiate the contract. Within 30
days of receipt of this appeal, the county superintendent  of
schools  or the  superintendent,  
Superintendent,  or his or her designee, shall mediate the
formulation of a contract, which shall be binding upon both parties.
   (d) A master contract for special education and related services
provided by a nonpublic, nonsectarian school or agency may not be
authorized under this part, unless the school or agency has been
certified as meeting those standards relating to the required special
education and specified related services and facilities for
individuals with exceptional needs. The certification shall result in
the  nonpublic, nonsectarian  school or agency receiving
approval to educate pupils under this part for a period no longer
than 18 months from the date of the initial approval.
   (e) By September 30, 1998, the procedures, methods, and
regulations for the purposes of contracting for nonpublic,
nonsectarian school and agency services pursuant to this section and
for reimbursement pursuant to Sections  56836.16 
 56836.165  and 56836.20 shall be developed by the 
superintendent   Superintendent  in consultation
with statewide organizations representing providers of special
education and designated instruction and services. The regulations
shall be established by rules and regulations issued by the board.
   SEC. 27.    Section 56366.3 of the 
Education Code   is amended to read: 
   56366.3.  (a) No contract for special education and related
services provided by a nonpublic, nonsectarian agency shall be
reimbursed by the state pursuant to Article 4 (commencing with
Section 56836.20) of Chapter 7.2 and Section  56836.16
  56836.165  if the contract covers special
education and related services, administration, or supervision by an
individual who is or was an employee of a contracting local
educational agency within the last 365 days. Former contracting
agency personnel may be employed by a nonpublic, nonsectarian agency
if the personnel were involuntarily terminated or laid off as part of
necessary staff reductions from the local educational agency.
   (b) This section does not apply to any person who is able to
provide designated instruction and services during the extended
school year because he or she is otherwise employed for up to 10
months of the school year by the local educational agency.
   SEC. 28.    Section 56441.5 of the  
Education Code   is amended to read: 
   56441.5.  Appropriate instructional adult-to-child ratios for
group services shall be dependent on the needs of the child. However,
because of the unique needs of individuals with exceptional needs
between the ages of three and five years, inclusive, who require
special education and related services, the number of children per
instructional adult shall be less than ratios set forth in 
subsection (b) of Section 18204 of Title 5 of the California Code of
Regulations, as it read on May 1, 1987,   subdivision
(c) of Section 8264.8  for young children in a regular preschool
program. Group services provided to individuals with exceptional
needs between the ages of three and five years, inclusive, identified
as severely disabled pursuant to Section 56030.5 shall not exceed an
instructional adult-to-child ratio of one to five.
   SEC. 19.   SEC. 29.   Section 60900 of
the Education Code is amended to read:
   60900.  (a) The department shall contract for the development of
proposals that will provide for the retention and analysis of
longitudinal pupil achievement data on the tests administered
pursuant to Chapter 5 (commencing with Section 60600), Chapter 7
(commencing with Section 60810), and Chapter 9 (commencing with
Section 60850). The longitudinal data shall be known as the
California Longitudinal Pupil Achievement Data System.
   (b) The proposals developed pursuant to subdivision (a) shall
evaluate and determine whether it would be most effective, from both
a fiscal and a technological perspective, for the state to own the
system. The proposals shall additionally evaluate and determine the
most effective means of housing the system.
   (c) The California Longitudinal Pupil Achievement Data System
shall be developed and implemented in accordance with all state rules
and regulations governing information technology projects.
   (d) The system or systems developed pursuant to this section shall
be used to accomplish all of the following goals:
   (1) To provide school districts and the department access to data
necessary to comply with federal reporting requirements delineated in
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.).
   (2) To provide a better means of evaluating educational progress
and investments over time.
   (3) To provide local educational agencies information that can be
used to improve pupil achievement.
   (4) To provide an efficient, flexible, and secure means of
maintaining longitudinal statewide pupil level data.
   (5) To facilitate the ability of the state to publicly report
data, as specified in Section 6401(e)(2)(D) of the federal America
COMPETES Act (20 U.S.C. Sec. 9871) and as required by the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5).
   (6) To ensure that any data access provided to researchers, as
required pursuant to the federal Race to the Top regulations and
guidelines is provided, only to the extent that the data access is in
compliance with the federal Family Educational Rights and Privacy
Act of 1974 (20 U.S.C. Sec. 1232g).
   (e) In order to comply with federal law as delineated in the
federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.), the local educational agency shall retain individual pupil
records for each test taker, including all of the following:
   (1) All demographic data collected from the California Assessment
of Student Performance and Progress (CAASPP), high school exit
examination, and English language development tests.
   (2) Pupil achievement data from assessments administered pursuant
to the CAASPP, high school exit examination, and English language
development testing programs. To the extent feasible, data should
include subscore data within each content area.
   (3) A unique pupil identification number to be identical to the
pupil identifier developed pursuant to the California School
Information Services, which shall be retained by each local
educational agency and used to ensure the accuracy of information on
the header sheets of the CAASPP tests, high school exit examination,
and the English language development test.
   (4) All data necessary to compile reports required by the federal
No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.),
including, but not limited to, dropout and graduation rates.
   (5) Other data elements deemed necessary by the Superintendent,
with the approval of the state board, to comply with the federal
reporting requirements delineated in the federal No Child Left Behind
Act of 2001 (20 U.S.C. Sec. 6301 et seq.), and the federal American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), after
review and comment by the advisory board convened pursuant to
subdivision (h). Before the implementation of this paragraph with
respect to adding data elements to the California Longitudinal Pupil
Achievement Data System for the purpose of complying with the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5),
the department and the appropriate postsecondary educational agencies
shall submit an expenditure plan to the Department of Finance
detailing any administrative costs to the department and costs to any
local educational agency, if applicable. The Department of Finance
shall provide to the Joint Legislative Budget Committee a copy of the
expenditure plan within 10 days of receipt of the expenditure plan
from the department.
   (6) To enable the department, the University of California, the
California State University, and the Chancellor of the California
Community Colleges to meet the requirements prescribed by the federal
American Recovery and Reinvestment Act of 2009 (Public Law 111-5),
these entities shall be authorized to obtain quarterly wage data,
commencing July 1, 2010, on students who have attended their
respective systems, to assess the impact of education on the
employment and earnings of those students, to conduct the annual
analysis of district-level and individual district or postsecondary
education system performance in achieving priority educational
outcomes, and to submit the required reports to the Legislature and
the Governor. The information shall be provided to the extent
permitted by federal statutes and regulations.
   (f) The California Longitudinal Pupil Achievement Data System
shall have all of the following characteristics:
   (1) The ability to sort by demographic element collected from the
CAASPP tests, high school exit examination, and English language
development test.
   (2) The capability to be expanded to include pupil achievement
data from multiple years.
   (3) The capability to monitor pupil achievement on the CAASPP
tests, high school exit examination, and English language development
test from year to year and school to school.
   (4) The capacity to provide data to the state and local
educational agencies upon their request.
   (g) Data elements and codes included in the system shall comply
with Sections 49061 to 49079, inclusive, and Sections 49602 and
56347, with Sections 430 to 438, inclusive, of Title 5 of the
California Code of Regulations, with the Information Practices Act of
1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part
4 of Division 3 of the Civil Code), and with the federal Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Sec. 1232g),
Section 1232h of Title 20 of the United States Code, and related
federal regulations.
   (h) The department shall convene an advisory board consisting of
representatives or designees from the state board, the Department of
Finance, the State Privacy Ombudsman, the Legislative Analyst's
Office, representatives of parent groups, school districts, and local
educational agencies, and education researchers to establish privacy
and access protocols, provide general guidance, and make
recommendations relative to data elements. The department is
encouraged to seek representation broadly reflective of the general
public of California.
   (i) Subject to funding being provided in the annual Budget Act,
the department shall contract with a consultant for independent
project oversight. The Director of Finance shall review the request
for proposals for the contract. The consultant hired to conduct the
independent project oversight shall twice annually submit a written
report to the Superintendent, the state board, the advisory board,
the Director of Finance, the Legislative Analyst, and the appropriate
policy and fiscal committees of the Legislature. The report shall
include an evaluation of the extent to which the California
Longitudinal Pupil Achievement Data System is meeting the goals
described in subdivision (d) and recommendations to improve the data
system in ensuring the privacy of individual pupil information and
providing the data needed by the state and school districts.
   (j) This section shall be implemented using federal funds received
pursuant to the federal No Child Left Behind Act of 2001 (20 U.S.C.
Sec. 6301 et seq.), which are appropriated for purposes of this
section in Item 6110-113-0890 of Section 2.00 of the Budget Act of
2002 (Chapter 379 of the Statutes of 2002). The release of these
funds is contingent on approval of an expenditure plan by the
Department of Finance.
   (k) For purposes of this chapter, a local educational agency shall
include a county office of education, a school district, and a
charter school.