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<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-17</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>414</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Ashby</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Ashby</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 14500, 14502.1, 14504, 14504.2, 14505, 14506, 14507, 14508, 41020, 41020.2, 41020.3, 41020.5, 41020.8, 42238.024, 43521, 44258.9, 45037, 45125.1, 46211, 47604.1, 47604.3, 47604.32, 47604.5, 47605, 47605.1, 47612.5, 47612.7, 47613, 47614.5, 47616.7, 47634.2, 51744, 51745.6, 51747, and 51747.5 of, to amend and repeal Section 47607.2 of, to add Sections 14500.5, 14502, 41020.4, 41020.6, 46149, 47600.1, 47604.6, 47605.05, and 47634.3 to, to add and repeal Section 33309.5 of, to add Article 7 (commencing with Section 47670) to Chapter 6 of Part 26.8 of Division 4 of Title 2 of, and to add Article 11 (commencing with Section 51820) and Article 11.5 (commencing with Section 51827) to Chapter 5 of Part 28 of Division 4 of Title 2 of, the Education Code, and to amend Section 17518 of the Government Code, relating to school accountability.</ns0:Title>
<ns0:RelatingClause>school accountability</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>School accountability: Office of the Education Inspector General: school financial and performance audits: charter school authorization, oversight, funding, operations, and networks: flex-based instruction: local educational agency contracting.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law requires county superintendents of schools to provide for an audit of all funds under their jurisdiction and control, and requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with county superintendents of schools to provide for that auditing. Existing law requires the governing board of each school district and each office of the county superintendent of schools to include specified provisions in their contracts for audits and requires financial and compliance audits to be performed in accordance with specified standards. If the governing board of a school district has entered into a contract for an independent audit of its financial statements and the audited financial statements have not been filed with the county superintendent of
schools on or before a specified due date, existing law authorizes the county superintendent of schools to, among other things, investigate the causes for the delay, as provided.
</html:p>
<html:p>This bill would expressly apply the above-described provisions to educational joint powers authorities and charter schools. The bill, among other things, would require those financial and compliance audits of local educational agencies to be conducted in accordance with specified filing deadlines and would revise requirements regarding which entity is responsible for providing an audit if a local educational agency has not provided for an audit of their respective books and accounts to include the Controller or a chartering authority, as provided. The bill would require, instead of authorize, a county superintendent of schools to investigate the causes for an above-described delay. The bill would require a local educational agency to post the local educational agency’s annual financial and
compliance audits on its internet website.</html:p>
<html:p>Existing law requires the Controller to, among other things, on an annual basis, review and monitor the audit reports performed by independent auditors, determine whether audit reports are in conformance with specified reporting provisions, and notify each local educational agency, the responsible county superintendent of schools, the Superintendent, the Department of Finance, and the auditor regarding each determination. Existing law authorizes the Controller to perform quality control reviews of audit working papers to determine whether audits are performed in conformity with those specified standards. Existing law requires the Controller to annually report to the State Department of Education to apprise the department of school districts and offices of county superintendents of schools that are not in compliance with applicable statutes and regulations related to audits and requires the Controller to make recommendations
as to what action should be taken by the department.</html:p>
<html:p>The bill would require the Controller to, if applicable, notify the responsible chartering authority of each determination made, as referenced above, and would require notification to applicable entities to be made within 6 months of the audit report due date or the audit report issue date, whichever is later. The bill would require the Controller to establish and publish as part of the audit guide a weighted risk-based criteria that considers auditor experience and quality factors in determining which audit engagements are required to undergo a quality control review, as provided. The bill would require the Controller to report and provide recommendations to the Superintendent, instead of the department, of entities not in compliance with applicable statutes and regulations and would include educational joint powers authorities and charter schools as reported entities.</html:p>
<html:p>The bill, commencing with the 2027–28 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, would require the Controller to include, among other things, instructions requiring specified supplemental information and schedules in audit report components for local educational agency audits and an appendix with the Controller’s desk review checklist that is used to determine whether audit reports are in conformance with specified reporting requirements, as provided.</html:p>
<html:p>Under existing law, once the Controller or county superintendent of schools makes a final determination that specified audits performed by a certified public accountant or public accountant were not performed in substantial conformity with provisions of an audit guide, or that the audit reports do not conform to the provisions of an audit guide, the certified public accountant or public accountant is ineligible to conduct
specified audits for 3 years. Existing law requires audits to be made by a certified public accountant or a public accountant, licensed by the California Board of Accountancy, and selected by a local educational agency, as applicable, from a directory of certified public accountants and public accountants deemed by the Controller as qualified to conduct audits of local educational agencies.</html:p>
<html:p>In order to be added to, or remain on, the Controller’s directory of certified public accountants and public accountants as described above, the bill would require, commencing with the 2027–28 fiscal year, and every 2 years thereafter, audit engagement partners and certified public accountants or public accountants responsible for local educational agency audits to, among other things, complete 16 hours of continuing education, demonstrate specified experience, and maintain compliance with the California Board of Accountancy requirements to keep applicable licenses in active
status and good standing, as provided. The bill would also apply the continuing education requirement to audit staff who perform audit procedures of local educational agencies.</html:p>
<html:p>The bill would extend the above-described rules related to the ineligibility of the certified public accountant or public accountant to audits of charter schools, as provided, and would additionally require the Controller to notify charter schools of those certified public accountants or public accountants determined to be ineligible to conduct audits, as provided. </html:p>
<html:p>To the extent the bill would impose additional duties on local educational agencies or local officials, the bill would impose a state-mandated local program.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The bill, until January 1, 2034, would establish the Office of the Education Inspector General. The bill would provide for the appointment of the Education
Inspector General by the Governor from a list of 3 qualified individuals nominated by the Joint Legislative Audit Committee, subject to confirmation by a majority of the Senate. The bill would require the Office of the Education Inspector General to, among other things, (A) conduct and supervise forensic audits and investigations relating to the programs and operations of the department, local educational agencies, and entities managing a charter school related to fraud, misappropriation of funds, and other illegal practices and (B) annually report to the appropriate policy committees of the Legislature on investigations and audits of the programs and operations of the department, local educational agencies, and entities managing a charter school.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law requires the Controller, in consultation with the Department of Finance and the State Department of Education, to develop a plan to review and report on financial and compliance
audits, and with representatives of other entities, to recommend the statements and other information to be included in the audit reports filed with the state by local educational agencies, and to propose the content of an audit guide. Existing law requires the audit guide to include specified content, as provided.
</html:p>
<html:p>This bill would require the Controller to consult with representatives of 2 additional specified entities and would require the audit guide to include a variety of additional content relating to audits of a local educational agency, as provided.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Existing law requires the Commission on Teacher Credentialing to establish standards for the issuance and renewal of credentials, certificates, and permits. Existing law requires the commission and the department to enter into a data sharing agreement for the department to provide the commission with educator assignment data necessary to annually
identify educator misassignments and vacant positions at local educational agencies, as provided, as part of the State Assignment Accountability System. Existing law requires the commission to annually use data it receives from the department to produce an initial data file of vacant positions and educator assignments that do not have a clear match of credential to assignment and requires the commission to notify local educational agencies and monitoring authorities of the opportunity to access and review the initial data file of potential misassignments, as defined, and vacant positions. Existing law grants the commission the authority to make a final determination for all potential misassignments. Existing law requires, commencing with the 2020–21 school year, the commission to make annual educator assignment, misassignment, and vacant position data publicly available on its internet website.
</html:p>
<html:p>This bill would require teachers employed by a local educational agency
and offering certain courses to hold the certificate, permit, or other document required by the commission for that assignment and be monitored. To the extent that this provision would create new duties for county superintendents of schools and local educational agencies, it would constitute a state-mandated local program.</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Existing law requires state funding to be calculated and withheld from a school district or county office of education for any fiscal year in which a person renders service as a teacher in kindergarten or any of grades 1 to 12, inclusive, who does not have a valid certification document, as provided.
</html:p>
<html:p>This bill would apply the above-described provisions relating to the penalties for a person rendering services as a teacher who does not have a valid certification document to charter schools, as provided.</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Existing
law requires any entity that has a contract with a school district, county office of education, or charter school to ensure that any employee who interacts with pupils, outside of the immediate supervision and control of the pupil’s parent or guardian or a school employee, has a valid criminal records summary, as specified.
</html:p>
<html:p>This bill would require an entity that has a contract with a local educational agency to instead ensure any employee who interacts with pupils has a valid criminal records summary without regard to whether the interaction takes place outside of the immediate supervision and control of the pupil’s parent or guardian or a school employee.</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The Charter Schools Act of 1992 requires each charter school to transmit a copy of its annual, independent financial audit report for the preceding fiscal year to the county office of education, the Controller, and the State Department of
Education by December 15 of each year.
</html:p>
<html:p>The act authorizes the establishment, operation, and governance of charter schools. Existing law authorizes a charter school that has an approved charter to receive funding for nonclassroom-based instruction only if a determination for funding is made by the State Board of Education, as specified. The act prohibits, from January 1, 2020, to January 1, 2026, inclusive, the approval of a petition for the establishment of a new charter school offering nonclassroom-based instruction, as specified.</html:p>
<html:p>This bill would extend that prohibition to instead continue through June 30, 2026.</html:p>
<html:p>This bill would require the governing body of a charter school, by January 31, 2026, and by January 31 of each year thereafter, to review, at a public meeting as an item on the agenda, the annual audit of the charter school for the prior fiscal year, any audit exceptions
identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. By imposing additional requirements on charter schools, the bill would impose a state-mandated local program.</html:p>
<html:p>The bill would replace the term “nonclassroom-based instruction” with “flex-based instruction” and define a “flex-based charter school” as a charter school that receives a determination for funding from the state board, as described above. The bill would also make numerous nonsubstantive and conforming changes.</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Existing law requires each chartering authority to, among other things, monitor the fiscal condition of each charter school under its authority. Existing law authorizes the state board to, based upon the recommendation of the Superintendent of Public Instruction, take appropriate
action when the state board finds, among other things, illegal or substantially improper use of charter school funds for the personal benefit of any officer, director, or fiduciary of the charter school, as provided.
</html:p>
<html:p>This bill would require that monitoring to also include a review of a sample of credit and debit card transactions of each charter school under its authority. The bill would require a chartering authority to provide the governing body of the charter school with feedback on any issues of concern identified in the review, as provided. If a chartering authority has reasonable suspicion that fraud, misappropriations of public funds, embezzlement, or other financial crimes, may be occurring, the bill would require the chartering authority to notify the State Department of Education and the county office of education. The bill would require the state board, or the state board’s designee, to promptly investigate allegations of false claims or misappropriation
of public funds by charter schools if there is probable cause to believe that those crimes have occurred. By imposing additional requirements on charter schools and local educational agencies acting as chartering authorities, the bill would impose a state-mandated local program. </html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Existing law, until January 1, 2026, sets out performance standards and procedures for the renewal of charter schools. Existing law sets out revised standards and procedures that are operative on and after January 1, 2026.
</html:p>
<html:p>This bill would extend, until July 1, 2028, the operation of the performance standards and procedures for the renewal of charter schools that would otherwise be inoperative on January 1, 2026, and would delay the operation of the revised standards and procedures until July 1, 2028.</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
Existing law provides for the apportionment of state
funding to a charter school based on the average daily attendance that is generated by pupils engaged in nonclassroom-based instruction, as defined, in accordance with prescribed criteria and procedures.
</html:p>
<html:p>This bill would revise and recast those provisions by, among other things, requiring the determination of funding to be on a percentage basis and require the Superintendent to implement the determination for funding by reducing the charter school’s reported average daily attendance by the percentage specified by the state board, as specified, and, commencing with the 2027–28 fiscal year, requiring the state board’s Advisory Commission on Charter Schools to recommend to the state board the approval of a funding determination request submitted by a charter school consistent with specified conditions.</html:p>
<html:p>Beginning with the 2027–28 school year, the bill would require the State Department of Education to annually develop a list
that identifies networks of flex-based charter schools, as defined, based on data from the prior school year.</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
Existing law authorizes a school district, county office of education, or charter school to offer independent study to meet the educational needs of pupils when certain requirements are met, including, among others, that the local educational agency has adopted written policies, and implemented those policies, in accordance with rules and regulations adopted by the Superintendent, as specified. Existing law authorizes a local educational agency to claim apportionment credit for independent study only to the extent of the time value of pupil work products.
</html:p>
<html:p>This bill would require a local educational agency to maintain one complete pupil work product in each of 4 specified subjects for a pupil enrolled in independent study for each of 3 specified attendance periods, except as provided.</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
The bill would establish the Charter Authorizer Mentor Grant Program to be administered by the California Collaborative for Educational Excellence for the purpose of providing competitive grants to qualified applicants to provide technical assistance to eligible chartering authorities of charter schools, as defined.
</html:p>
<html:p>The bill would establish the Charter School Authorizer Grant Program within the department to provide grants to chartering authorities for certain increased costs associated with the responsibilities imposed by this bill, as provided.</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The bill would require the governing board or body of a school district, educational joint powers authority, county office of education, or charter school, on or before July 1, 2027, to adopt a policy in order to evaluate and approve contractors. The bill would require the policy to
include specified provisions, including, among other things, that a local educational agency is prohibited from (A) expending public funds for a contract unless the materials, programs, and activities are nonsectarian, (B) offering financial payments or gifts as an incentive for pupil enrollment, referral, or retention, and (C) purchasing or contracting for season passes or membership to amusement or theme parks, zoos, or family entertainment activities, except as provided.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local agency, the state is required to provide a subvention of funds to reimburse the local agency, with specified exceptions. Existing law, for purposes of this reimbursement, defines “local agency” to include any city, county, special district, authority, or other political subdivision of the state.
</html:p>
<html:p>This bill, for purposes of the above-described state reimbursement, would explicitly add any charter school to the definition of local agency.</html:p>
<html:p>
(15)
<html:span class="EnSpace"/>
This bill would provide that the provisions of this bill are severable.
</html:p>
<html:p>
(16)
<html:span class="EnSpace"/>
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
</html:p>
<html:p>This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Election>NO</ns0:Election>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 14500 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Num>14500.</ns0:Num>
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<html:p>It is the intent of the Legislature in enacting this chapter to promote accountability over public educational funding by establishing a new program to review and report on financial and compliance audits of school districts, educational joint powers authorities, county superintendents of schools, and charter schools. It is further the intent of the Legislature that the Controller shall have the primary responsibility for implementing and overseeing the program.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 14500.5 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Num>14500.5.</ns0:Num>
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<html:p>For purposes of this chapter, “local educational agency” means a school district, educational joint powers authority, charter school, or county superintendent of schools.</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 14502 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_1AB53F6E-9040-4B82-9A06-637B07483D64">
<ns0:Num>14502.</ns0:Num>
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<html:p>The county superintendent of schools, the chartering authority, the Controller, or the Superintendent may refer an independent auditor of a local educational agency to the California Board of Accountancy for action described in paragraph (3) of subdivision (b) of Section 14504.2 if any of the following circumstances exist:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
An audit of a local educational agency was conducted in a manner that may constitute unprofessional conduct, as defined by Section 5100 of the Business and Professions Code, including, but not limited to, gross negligence resulting in a material misstatement in the audit.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Material deficiencies are discovered in the quality control review conducted pursuant to Section
14504.2.
</html:p>
<html:p>
(c)
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The continuing education requirements of Section 41020 are not met.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 14502.1 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Num>14502.1.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Controller, in consultation with the Department of Finance and the department, shall develop a plan to review and report on financial and compliance audits. The plan shall commence with the 2003–04 fiscal year for audits of school districts, other local educational agencies, and the offices of county superintendents of schools. The Controller, in consultation with the Department of Finance, the department, and representatives of the California School Boards Association, the California Association of School Business Officials, the California County Superintendents Educational Services Association, the California Teachers Association, the California School Employees Association, the California Society of Certified Public Accountants, the Charter Schools Development Center, the California Charter Schools Association, and
the County Office Fiscal Crisis and Management Assistance Team, shall recommend the statements and other information to be included in the audit reports filed with the state, and shall propose the content of an audit guide to carry out the purposes of this chapter. A supplement to the audit guide may be suggested in the audit year, following the above process, to address issues resulting from new legislation in that year that changes the conditions of apportionment. The proposed content of the audit guide and any supplement to the audit guide shall be submitted by the Controller to the Education Audit Appeals Panel for review and possible amendment.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The audit guide and any supplement shall be adopted by the Education Audit Appeals Panel pursuant to the rulemaking procedures of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. It is the
intent of the Legislature that, for the 2003–04 fiscal year, the audit guide be adopted by July 1 of the fiscal year to be audited. A supplemental audit guide may be adopted to address legislative changes to the conditions of apportionment. It is the intent of the Legislature that supplements be adopted before March 1 of the audit year. Commencing with the 2004–05 fiscal year, and each fiscal year thereafter, the audit guide shall be adopted by July 1 of the fiscal year to be audited. A supplemental audit guide may be adopted to address legislative changes to the conditions of apportionment. The supplements shall be adopted before March 1 of the audit year. To meet these goals and to ensure the accuracy of the audit guide, the process for adopting emergency regulations set forth in Section 11346.1 of the Government Code may be followed to adopt the audit guide and supplemental audit guide. It is the intent of the Legislature that once the audit guide has been adopted for a fiscal year, as well as any
supplement for that year, thereafter only suggested changes to the audit guide and any additional supplements need be adopted pursuant to the rulemaking procedures of the Administrative Procedure Act. The audit guide and any supplement shall be issued in booklet form and may be made available by any means deemed appropriate. The Controller and consultants in the development of the suggested audit guide and any supplement shall work cooperatively on a timeline that will allow the Education Audit Appeals Panel to meet the July 1 and March 1 issuance dates. Consistent with current practices for development of the audit guide before the 2003–04 fiscal year, the Controller shall provide for the adoption of procedures and timetables for the development of the suggested audit guide, any supplement, and the format for additions, deletions, and revisions.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For the audit of school districts or county offices of education electing to take formal action
pursuant to Sections 22714 and 44929, the audit guide content proposed by the Controller shall include, but not be limited to, the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The number and type of positions vacated.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The age and service credit of the retirees receiving the additional service credit provided by Sections 22714 and 44929.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A comparison of the salary and benefits of each retiree receiving the additional service credit with the salary and benefits of the replacement employee, if any.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The resulting retirement cost, including interest, if any, and postretirement health care benefits costs, incurred by the employer.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Controller shall annually prepare a cost analysis, based on the information
included in the audit reports for the prior fiscal year, to determine the net savings or costs resulting from formal actions taken by school districts and county offices of education pursuant to Sections 22714 and 44929, and shall report the results of the cost analysis to the Governor and the Legislature by April 1 of each year.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
All costs incurred by the Controller to implement subdivision (c) shall be absorbed by the Controller.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
On or before January 1, 2015, the Controller, in consultation with the State Allocation Board, the Department of Finance, and the department, shall submit content to the Education Audit Appeals Panel to be included in the audit guide, Standards and Procedures for Audits of California K-12 Local Educational Agencies beginning in the 2015–16 fiscal year, that is related to the financial and performance audits required for school facility projects,
as described in Section 15286.
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 14504 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_0FD65B03-57FC-42F1-8964-DECC2DEDA2EE">
<ns0:Num>14504.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
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(1)
<html:span class="EnSpace"/>
To determine the practicability and effectiveness of the audits and audit guide, the Controller shall, on an annual basis, review and monitor the audit reports performed by independent auditors.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The Controller shall determine whether audit reports are in conformance with the reporting provisions of subdivision (a) of Section 14503 and shall notify each local educational agency, the responsible chartering authority, if applicable, the responsible county superintendent of schools, the Superintendent, the Department of Finance, and the auditor within six months of the audit report due date or the audit report issue date, whichever is later, regarding each determination.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The local educational agency, the chartering authority, the county superintendent of schools, or the Superintendent contracting for the financial and compliance audit shall include a statement that will provide the Controller access to audit working papers.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year, the audit guide developed by the Controller and adopted by the Education Audit Appeals Panel pursuant to Section 14502.1 shall include an appendix with the Controller’s desk review checklist that is used to determine whether audit reports are in conformance with the reporting requirements of subdivision (a) of Section 14503. The Controller’s desk review checklist shall focus on elements of reporting that are material, whether qualitative or quantitative, and areas with a higher risk of error or misstatement.
</html:p>
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<ns0:BillSection id="id_E978603F-2833-4820-ABD2-C995CFF36428">
<ns0:Num>SEC. 6.</ns0:Num>
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Section 14504.2 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_9C2C4424-66BF-45EA-8B15-C72151398C20">
<ns0:Num>14504.2.</ns0:Num>
<ns0:LawSectionVersion id="id_EB1BFDCA-0B6E-496B-97E5-6BA3A5BE0F75">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Controller may perform quality control reviews of audit working papers to determine whether audits are performed in conformity with subdivision (a) of Section 14503. The Department of Finance or the Superintendent may refer an independent auditor of a local educational agency to the Controller for a review pursuant to this section if the Department of Finance or the Superintendent finds that an audit of a local educational agency was conducted in a manner that may constitute noncompliance with subdivision (a) of Section 14503. The Controller shall communicate the results of the Controller’s reviews to the entity that referred the independent auditor to the Controller, the independent auditor, and the local educational agency for which the audit was performed, and shall review the Controller’s findings with the
independent auditor.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Prior to the performance of any quality control reviews, the Controller shall develop and publish guidelines and standards for those reviews. Pursuant to the development of those guidelines and standards, the Controller shall provide opportunity for public comment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Controller shall establish and publish as part of the audit guide a weighted risk-based criteria that considers auditor experience and quality factors in determining which audit engagements shall undergo a quality control review. Criteria shall primarily include, but not be limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Audit reports that were found to have material nonconformance to the reporting provisions of subdivision (a) of Section 14503 through the Controller’s review.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Audits conducted by an engagement partner who has not performed audits of local educational agencies in the preceding three years.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Audits that are submitted after the due date established pursuant to subdivision (k) of Section 41020, or an approved extension date, whichever is later.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the quality control review of the Controller indicates that the audit was conducted in a manner that may constitute unprofessional conduct, as defined pursuant to Section 5100 of the Business and Professions Code, including, but not limited to, gross negligence resulting in a material misstatement in the audit, the Controller shall refer the case to the California Board of Accountancy. If the California Board of Accountancy finds that the independent auditor conducted an audit in an unprofessional manner, the independent
auditor is prohibited from performing any audit of a local educational agency for a period of three years, in addition to any other penalties that the California Board of Accountancy may impose.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In any matter that is referred to the California Board of Accountancy under paragraph (3) of subdivision (b), the Controller may suspend the independent auditor from performing any local educational agency audits pending final disposition of the matter by the California Board of Accountancy if the Controller gives the independent auditor notice and an opportunity to respond to that suspension. The independent auditor shall be given credit for any period of suspension if the California Board of Accountancy prohibits the independent auditor from performing audits of the local educational agency under paragraph (3) of subdivision (b). The Controller shall not suspend an independent auditor under this subdivision for a period of longer than three
years.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The county superintendent of schools, the school district, the charter school, the chartering authority, the Controller, or the Superintendent may refer an independent auditor of a local educational agency to the California Board of Accountancy for action described in paragraph (3) of subdivision (b) if either of the following circumstances exist:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An audit of a local educational agency was conducted in a manner that may constitute unprofessional conduct, as defined by Section 5100 of the Business and Professions Code, including, but not limited to, gross negligence resulting in a material misstatement in the audit.
</html:p>
<html:p>
(2)
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Material deficiencies are discovered in the quality control review conducted pursuant to this section.
</html:p>
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<ns0:BillSection id="id_08EB6F6D-514D-4225-B32A-5B503EF69DD6">
<ns0:Num>SEC. 7.</ns0:Num>
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Section 14505 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_4CC7BF36-2132-4D70-BEC4-2E2E86226C87">
<ns0:Num>14505.</ns0:Num>
<ns0:LawSectionVersion id="id_576CFA72-D89E-4BA4-ABD4-F5B382F5F504">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The governing board or body of a local educational agency shall include both of the following provisions in their contracts for audits:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A provision to withhold 10 percent of the audit fee until the Controller certifies that the audit report conforms to the reporting provisions of subdivision (a) of Section 14503.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A provision to withhold 50 percent of the audit fee for any subsequent year of a multiyear contract if the prior year’s audit report was not certified as conforming to the reporting provisions of subdivision (a) of Section 14503. This provision shall include a statement that a multiyear contract will be null and void if a firm or individual is declared
ineligible pursuant to subdivision (c) of Section 41020.5. The amount withheld is not payable unless payment is ordered by the California Board of Accountancy or the audit report for that subsequent year is certified by the Controller as conforming to the reporting provisions of subdivision (a) of Section 14503.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the Controller has not provided a written certification that the audit report has conformed to the reporting provisions of Section 14503 or a written rejection letter detailing the exceptions noted by the Controller’s review with instructions for corrections by the sixth month following the audit issue date, or the audit due date, whichever is later, the governing board or body of the local educational agency may release the amounts withheld in audit fees pursuant to paragraph (1).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Within 30 days from the date of receipt of written notification that the
Controller refuses to certify an audit report as conforming to the reporting provisions of subdivision (a) of Section 14503, an auditor or audit firm having a portion of an audit fee withheld pursuant to these provisions may file an appeal in writing with the California Board of Accountancy. The California Board of Accountancy shall complete an investigation of the appeal within 90 days of the filing date and, on the basis of the investigation, do either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Order the Controller to provide notification that the audit report conforms to the reporting provisions of subdivision (a) of Section 14503.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Schedule the appeal for a hearing, in which case the final action on the appeal shall be completed by the California Board of Accountancy within one year from the date of filing the appeal.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the
California Board of Accountancy orders the Controller to provide notification pursuant to paragraph (1) of subdivision (b), the Controller shall notify the contracting local educational agency which shall then release the portion of the audit fee being withheld in accordance with this section.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_D1CB47D1-274F-482A-93B2-CD6A36E80DAE">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 14506 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_1D825B8E-5A98-4BB0-AD85-54C210337752">
<ns0:Num>14506.</ns0:Num>
<ns0:LawSectionVersion id="id_7977DDBE-6180-4BB4-A2C7-21D839AB302E">
<ns0:Content>
<html:p>The Controller shall conduct any additional audits that are necessary to carry out the Controller’s duties and responsibilities pursuant to this code and the Government Code. This chapter does not authorize a local educational agency, or a subcontractor or subrecipient, to constrain, in any manner, the Controller from carrying out additional audits. To the extent that the required financial and compliance audits provide the Controller with the information necessary to carry out the Controller’s responsibilities, the Controller shall plan additional audits as appropriate to avoid unnecessary duplication of audit efforts. In performing additional audits, the Controller shall, to the extent deemed appropriate under the circumstances, build upon the work performed during the required financial and compliance audit. The Controller shall not bill the local
educational agency for the costs of these additional audits.</html:p>
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<ns0:BillSection id="id_48509FA1-1D04-4BC6-B9BF-A0AE07E18698">
<ns0:Num>SEC. 9.</ns0:Num>
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Section 14507 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_FABF4949-4139-4B8F-AFBF-BFC45C067AF3">
<ns0:Num>14507.</ns0:Num>
<ns0:LawSectionVersion id="id_F83A1551-3A02-4A0D-A6AA-58B2682911BD">
<ns0:Content>
<html:p>The Controller shall report to the Superintendent on or before June 30 of each year in order to apprise the Superintendent of those local educational agencies that are not in compliance with the applicable statutes and regulations. The Controller’s report shall categorize audit exception by types and shall identify the reasons for the exceptions. The reasons may be the legislative intent or language is unclear or the administrative requirement is not feasible. The Controller shall make recommendations as to what action should be taken by the Superintendent. Before issuing the report, the Controller shall allow each local educational agency that is specified in the report a reasonable period of time to review and comment on the section of the report affecting that local educational agency.</html:p>
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<ns0:BillSection id="id_578F69E8-EF29-464A-96AA-F473D0828BFF">
<ns0:Num>SEC. 10.</ns0:Num>
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Section 14508 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_D926B9BD-2A5D-43B6-8281-E577BAAB6687">
<ns0:Num>14508.</ns0:Num>
<ns0:LawSectionVersion id="id_F8F63CA8-865A-400C-9644-C8FB04DB4924">
<ns0:Content>
<html:p>Notwithstanding Section 10231.5 of the Government Code, the Controller shall submit a report, consistent with Section 9795 of the Government Code, to the Legislature on or before August 31 of each year regarding any recommendations made to the Superintendent pursuant to Section 14507.</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_02EDDFCC-24F7-4658-8DFA-453A38FF26CF">
<ns0:Num>SEC. 11.</ns0:Num>
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Section 33309.5 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_F47FC756-8C39-41F0-A82B-309F445CB62D">
<ns0:Num>33309.5.</ns0:Num>
<ns0:LawSectionVersion id="id_C2D7A2F6-9856-4AEE-9406-B8DE2AF57A07">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The Office of the Education Inspector General is hereby established. The Education Inspector General shall be appointed by the Governor to a four-year term from a list of three qualified individuals nominated by the Joint Legislative Audit Committee pursuant to subparagraph (B) and subject to confirmation by a majority of the membership of the Senate, without regard to political affiliation, and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. The Education Inspector General shall not be prevented from initiating, carrying out, or completing an audit or investigation, or from issuing a subpoena during the course of an audit or
investigation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The Joint Legislative Audit Committee shall provide at least 120 days’ notice that it is seeking applicants for nomination by providing notice in the Journals of the Senate and the Assembly and by advertising in appropriate newspapers and with nationally acknowledged professional journals and associations. Names for consideration by the Joint Legislative Audit Committee may be submitted by members of the Legislature, professional organizations, individuals, and other entities. The Legislature and the Governor may provide suggested qualifications to the Joint Legislative Audit Committee to consider when making its nominations.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Office of the Education Inspector General shall not be a subdivision of any other governmental entity.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Education Inspector General may not be removed from
office by the Governor during that term, except for good cause.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Subject to applicable law, the Education Inspector General shall select, appoint, and employ officers and employees necessary to carry out the functions of the office. In making these selections, the Education Inspector General shall ensure that those officers and employees have the requisite training and experience to enable the Education Inspector General to carry out their duties effectively.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For each fiscal year, the Education Inspector General shall provide the Department of Finance with the office’s proposed budget by September 1 of each year. If the amount of the Education Inspector General’s proposed budget differs from the amount included in the Governor’s Budget, the Department of Finance shall provide a notification to the chairs and vice chairs of the budget committees of
both houses of the Legislature and the Legislative Analyst’s Office identifying the differences and explaining the reasons for the differences. This notification shall be provided no later than January 10 of each year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The annual salary for the Education Inspector General shall be equal to that of the High-Speed Rail Authority Inspector General established pursuant to Section 187020 of the Public Utilities Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Office of the Education Inspector General shall be responsible for all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Conducting and supervising forensic audits and investigations for the purposes of identifying fraud, misappropriation of funds, or other illegal practices relating to the programs and operations of the department, local educational agencies, and entities managing a charter school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Coordinating audits of local educational agencies completed by the Education Inspector General pursuant to paragraph (1) with audits completed pursuant to Section 1241.5 and investigations by law enforcement.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The Education Inspector General is authorized to coordinate and communicate with law enforcement and auditors conducting audits pursuant to Section 1241.5.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Annually reporting to the appropriate policy committees of the Legislature on all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Investigations and audits of the programs and operations of the department, local educational agencies, and entities managing a charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The number of referrals made pursuant to
subparagraph (A) of paragraph (4) and the audit findings reported pursuant to subparagraph (B) of paragraph (4).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The necessity for, and progress of, corrective actions that the Education Inspector General deems to be appropriate.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Referring findings of fraud or other illegal activity to the local district attorney and the Attorney General.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Reporting audit findings with fiscal impact to the department and determining the associated cost and the average daily attendance disallowance.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
If a finding involves a charter school, reporting the finding to the governing body of the charter school and the chartering authority unless doing so would undermine or compromise further necessary
investigations.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If a finding involves a school district or county office of education, reporting the finding to the governing board of the school district or county office of education unless doing so would undermine or compromise further necessary investigations.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A resident of California may report a concern of suspected fraud, misappropriation of public funds, or illegal practices by the department, local educational agencies, or entities managing a charter school to the Office of the Education Inspector General.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A resident who reports a concern to the Office of the Education Inspector General shall have whistleblower protections against retaliation including protections provided pursuant to Article 5 (commencing with Section 44110) of Chapter 1 of
Part 25 and Section 1102.5 of the Labor Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A report made pursuant to paragraph (1) shall be provided in writing, including by electronic or online submission, and documented to the best ability of the person submitting the concern.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A report made pursuant to paragraph (1) shall not be subject to a Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) request until an investigation is concluded and made public.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Investigations by the Office of the Education Inspector General may only be furthered upon a finding that there is reasonable suspicion to believe that improprieties have occurred.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before December 15, 2032, the Legislative Analyst’s Office shall
submit a report, consistent with Section 9795 of the Government Code, to the appropriate policy committees of the Legislature on the activities of the Office of the Education Inspector General, recommendations for the continuance of the office, or improvements to the structure of the office. The report shall also include all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The number of reports made to the Education Inspector General, the number of investigations and audits disaggregated by type of local educational agency and the number of investigations and audits of the department and entities managing a charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The number of referrals to the department, local district attorneys, and the Attorney General pursuant to subparagraph (A) of paragraph (4) of subdivision (d).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The extent to which findings from the Education
Inspector General have resulted in the recovery of state funds due to fraud, misappropriation of funds, or other illegal practices.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Office of the Education Inspector General shall provide the Legislative Analyst’s Office with available information necessary to meet the requirements of paragraph (1).
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Entity managing a charter school” has the same meaning as defined in subdivision (a) of Section 47604.1.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Local educational agency” means a school district, county office of education, charter school, educational joint powers authority, or state special school.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
This section shall remain in
effect only until January 1, 2034, and as of that date is repealed.
</html:p>
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<ns0:BillSection id="id_D79CCB01-B23D-479D-A53F-E0D5A18E515B">
<ns0:Num>SEC. 12.</ns0:Num>
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Section 41020 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_980F1903-1D1F-4001-A0CC-719B39227F8C">
<ns0:Num>41020.</ns0:Num>
<ns0:LawSectionVersion id="id_25ED4A86-7090-4118-BF92-B4EDA984DF98">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
It is the intent of the Legislature to encourage sound fiscal management practices among local educational agencies for the most efficient and effective use of public funds for the education of children in California by strengthening fiscal accountability at the school district, county, and state levels.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A local educational agency shall post the local educational agency’s annual financial and compliance audits on its internet website.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On or before May 1 of each fiscal year, the governing board of each school district or educational joint powers authority shall either provide for an audit of all funds under the control of that school
district or educational joint powers authority, including an audit of income and expenditures by source of funds, or shall make arrangements with the county superintendent of schools having jurisdiction over the school district or educational joint powers authority to provide for that auditing.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A contract to perform the audit of a school district or educational joint powers authority that has a disapproved budget or has received a negative certification on any budget or interim financial report during the current fiscal year or either of the two preceding fiscal years, or for which the county superintendent of schools has otherwise determined that a lack of going concern exists, is not valid unless approved by the responsible county superintendent of schools and the governing board of the school district or educational joint powers authority.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On
or before May 1 of each fiscal year, the governing body of each charter school shall either provide for an audit of all funds under the control of the charter school, including an audit of income by source of funds, or shall make arrangements with the chartering authority to provide for that auditing. Except as provided in clause (ii) of subparagraph (B), an independent audit shall be separately conducted and reported for each charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
All charter schools shall be audited and subject to the applicable provisions of this section.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), financial data for charter schools that are included in the school district or county office of education audit shall be presented separately in one of the following manners:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
As a major fund, when applicable.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
As a Supplementary Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
As Supplementary Combining Statements for charter schools that are accounted for in the General Fund or when multiple charter schools are included in the charter school fund.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
On or before May 1 of each fiscal year, each county superintendent of schools shall either (A) provide for an audit of all funds under their jurisdiction and control, including an audit of income and expenditures by source of funds, or (B) make arrangements with the Controller to provide for that auditing.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the governing board of a school district or educational joint powers authority, the governing body of a charter school, or a county superintendent of schools
pursuant to paragraph (3) of subdivision (c) has not provided for an audit of the books and accounts of the local educational agency by April 1, one of the following shall apply, as applicable:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For a school district or an educational joint powers authority, the county superintendent of schools having jurisdiction over the school district or educational joint powers authority shall provide for the audit.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For a charter school, the chartering authority having jurisdiction over the charter school shall provide for the audit.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For a county superintendent of schools, the Controller shall provide for the audit.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An audit conducted pursuant to this section shall comply fully with the Government Auditing Standards issued by the Comptroller General
of the United States.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Each audit conducted in accordance with this section shall include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
All funds, books, and accounts of the local educational agency, including the student body and cafeteria funds and accounts and any other funds under the control or jurisdiction of the local educational agency.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An audit of pupil attendance procedures and other applicable compliance items as detailed in the audit guide adopted pursuant to Section 14502.1.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A determination of whether funds were expended pursuant to a local control and accountability plan or an approved annual update to a local control and accountability plan pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4 or, for a
charter school, Section 47606.5.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding any other law, to the extent the governing body of a charter school engages in activities that are unrelated to the charter school, the financial and compliance audit required by this section shall not apply with regard to those unrelated activities.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
All audit reports for each fiscal year shall be developed and reported using a format established by the Controller after consultation with the Superintendent and the Director of Finance.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The cost of an audit provided for by a county superintendent of schools for a school district or educational joint powers authority shall be paid from the county school service fund and the county superintendent of schools shall transfer the pro rata share of the cost chargeable to each school
district or educational joint powers authority from school district or educational joint powers authority funds.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The cost of an audit provided for by a chartering authority for a charter school shall be paid by the chartering authority and the chartering authority shall collect the pro rata share of the cost chargeable to each charter school from charter school funds.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The cost of an audit provided for by the Controller for a county superintendent of schools shall be paid by the Controller and the Controller shall collect the pro rata share of the cost chargeable to each county superintendent of schools from the respective county school service fund.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The cost of an audit provided for by a governing board or body of a local educational agency shall be paid from local educational agency funds. The audit of
the funds under the jurisdiction and control of a county superintendent of schools shall be paid from the county school service fund.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The audits shall be made by a certified public accountant or a public accountant, licensed by the California Board of Accountancy, and selected by the local educational agency, as applicable, from a directory of certified public accountants and public accountants deemed by the Controller as qualified to conduct audits of local educational agencies, which shall be published by the Controller on or before December 31 of each year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Commencing with the 2003–04 fiscal year and except as provided in subdivision (d) of Section 41320.1, it is unlawful for a public accounting firm to provide audit services to a local educational agency if the lead audit partner, or coordinating audit partner, having primary responsibility
for the audit, or the audit partner responsible for reviewing the audit, has performed audit services for that local educational agency in each of the six previous fiscal years. The Education Audit Appeals Panel may waive this requirement if the panel finds that no otherwise eligible auditor is available to perform the audit.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
It is the intent of the Legislature that, notwithstanding paragraph (2), the rotation within public accounting firms conform to provisions of the federal Sarbanes-Oxley Act of 2002 (15 U.S.C. Sec. 7201 et seq.), and upon release of the report required by the act of the Comptroller General of the United States addressing the mandatory rotation of registered public accounting firms, the Legislature intends to reconsider paragraph (2). In determining which certified public accountants and public accountants shall be included in the directory, the Controller shall use the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The certified public accountants or public accountants shall be in good standing as certified by the Board of Accountancy.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The certified public accountants or public accountants, as a result of a quality control review conducted by the Controller pursuant to Section 14504.2, shall not have been found to have conducted an audit in a manner constituting noncompliance with subdivision (a) of Section 14503.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year, and every two years thereafter, in order to be added to, or remain on, the Controller’s directory of certified public accountants and public accountants deemed qualified to conduct audits of local educational agencies, audit engagement partners and certified public accountants or public accountants responsible for
local educational agency audits and audit staff who perform audit procedures of local educational agencies shall complete 16 hours of continuing education that, at a minimum, covers both of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Training on the specific requirements included in the most current Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Training on compliance topics that include, but are not limited to, pupil attendance, independent study, charter schools, if applicable, flex-based instruction, school calendars, and instructional minutes.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Continuing education hours taken as part of the California Board of Accountancy license renewal requirements may be used to meet the requirements of clause (i) if the continuing education is specific to local educational agencies and includes the
training content described in subclauses (I) and (II) of clause (i).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year, in order to be added to, or remain on the Controller’s directory of certified public accountants and public accountants deemed qualified to conduct audits of local educational agencies, audit engagement partners, certified public accountant firms, and certified public accountants or public accountants responsible for local educational agency audits shall comply with both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
Have demonstrated experience conducting financial and compliance audits for local educational agencies.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Audit engagement partners, certified public accountant firms, and certified public accountants or public accountants may perform a financial and compliance audit for a local
educational agency during their first year of conducting those audits, provided the audit report receives a preissuance review, consistent with applicable professional standards on quality control, performed by an auditor that has demonstrated experience in conducting financial and compliance audits for local educational agencies.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Have maintained compliance with the California Board of Accountancy requirements to keep applicable licenses in active status and good standing.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The continuing education hours and prior experience required pursuant to this paragraph shall be evidenced by a certification to the Controller from the certified public accountant firms, the certified public accountant or public accountant, or the audit staff that the requirements have been met.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The requirements of this subdivision
shall apply to audits of local educational agencies regardless of whether the local educational agency is a governmental agency or a nonprofit organization.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A local educational agency and an auditor that is under contract with the local educational agency shall notify the chartering authority or the county superintendent of schools, as applicable, the Superintendent, and the Controller in the event that the auditor’s contract with the local educational agency is terminated or otherwise denied for renewal. The notification shall include the reason for the termination or denial for renewal and shall be made within 30 calendar days of the effective date of that termination or nonrenewal.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Before accepting a new engagement for a local educational agency, auditors shall request the local educational agency to provide
authorization for predecessor auditors to respond fully and without limitation to the successor auditor’s inquiries and request to examine work papers related to subparagraph (C).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If the local educational agency refuses to authorize predecessor auditors to respond, or limits the response, the auditor shall inquire about the reasons and consider the implications of that refusal or limitation in deciding whether to accept the engagement.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
If the local educational agency provides permission for predecessor auditors to respond fully, the successor auditor shall make the following inquiries of the predecessor auditors:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Their knowledge of information that might bear on the integrity of management of the local educational agency.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Whether
there were any disagreements with management of the local educational agency regarding matters of accounting principles, financial reporting, compliance, or audit scope.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
Whether there were any communications to management of the local educational agency regarding fraud, illegal acts, noncompliance, or internal control matters.
</html:p>
<html:p>
(IV)
<html:span class="EnSpace"/>
The predecessor auditor’s understanding of the reason for the change of auditors.
</html:p>
<html:p>
(V)
<html:span class="EnSpace"/>
Any information relevant to the successor auditor’s risk assessments for the period being audited.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The successor auditor may request to inspect work papers as needed to gain full context of any risks identified through inquiry or to perform necessary procedures on beginning balances.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The auditor’s report shall include each of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that the audit was conducted pursuant to standards and procedures developed in accordance with Chapter 3 (commencing with Section 14500) of Part 9 of Division 1 of Title 1.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A summary of audit exceptions and management improvement recommendations.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An evaluation by the auditor on whether there is substantial doubt about the ability of the local educational agency to continue as a going concern for a reasonable period of time. This evaluation shall be based on the Statement on Auditing Standards No. 59, as issued by the American Institute of Certified Public Accountants regarding disclosure requirements relating to the ability of the entity to continue
as a going concern.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To the extent possible, a description of correction or plan of correction shall be incorporated in the audit report, describing the specific actions that are planned to be taken, or that have been taken, to correct the problem identified by the auditor. The descriptions of specific actions to be taken or that have been taken shall not solely consist of general comments such as “will implement,” “accepted the recommendation,” or “will discuss at a later date.”
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before January 31, a report of each local educational agency audit for the preceding fiscal year shall be filed with specified entities, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
For school districts and educational joint powers authorities, with the county superintendent of schools of the county in which the local educational
agency is located, the Superintendent, and the Controller.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For charter schools, with its chartering authority, the Superintendent, the Controller, and the county superintendent of schools of the county in which the charter school is located, unless the county board of education of the county in which the charter school is located is the chartering authority.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For county superintendents of schools, with the Superintendent and the Controller.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Superintendent shall make any adjustments necessary in future apportionments of all state funds to correct any audit exceptions revealed by those audit reports pursuant to Section 41344.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Pursuant to this section and subdivision (d) of Section 41320.1, each county
superintendent of schools shall be responsible for reviewing the audit exceptions contained in an audit of a school district or educational joint powers authority under their jurisdiction related to attendance, inventory of equipment, internal control, teacher misassignments pursuant to Section 44258.9, audit exceptions related to instructional materials and information reported on the school accountability report card pursuant to Section 33126, and any miscellaneous items, and determining whether the exceptions have been either corrected or an acceptable plan of correction has been developed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon submission of the final audit report to the governing board of each school district or educational joint powers authority and subsequent receipt of the audit by the county superintendent of schools having jurisdiction over the school district or educational joint powers authority, the county superintendent of schools shall do all of the
following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Review audit exceptions related to attendance, inventory of equipment, internal control, teacher misassignments pursuant to Section 44258.9, audit exceptions related to instructional materials and information reported on the school accountability report card pursuant to Section 33126, and other miscellaneous exceptions. Attendance exceptions or issues shall include, but not be limited to, those related to local control funding formula allocations pursuant to Section 42238.02, as implemented by Section 42238.03, and independent study.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a description of the correction or plan of correction has not been provided as part of the audit required by this section, the county superintendent of schools shall notify the school district or educational joint powers authority and request the governing board of the school district or educational joint powers authority to
provide to the county superintendent of schools a description of the corrections or plan of correction before April 15.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Review the description of correction or plan of correction and determine its adequacy. If the description of the correction or plan of correction is not adequate, the county superintendent of schools shall require the school district or educational joint powers authority to resubmit that portion of its response that is inadequate.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Each county superintendent of schools shall certify to the Superintendent and the Controller, on or before June 15, that the county superintendent of schools’ staff has reviewed all audits of school districts or educational joint powers authorities under the county superintendent of schools’ jurisdiction for the prior fiscal year, that all exceptions that the county superintendent of schools was required to review were reviewed,
and that all of those exceptions, except as otherwise noted in the certification, have been corrected by the school district or educational joint powers authority or that an acceptable plan of correction has been submitted to the county superintendent of schools. In addition, the county superintendent of schools shall identify, by school district or educational joint powers authority, any attendance-related audit exception or exceptions involving state funds, and require the local educational agency to which the audit exceptions were directed to submit appropriate reporting forms for processing by the Superintendent.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
In the audit of a school district or educational joint powers authority for a subsequent year, the auditor shall review the correction or plan or plans of correction submitted by the school district or educational joint powers authority to determine if the exceptions have been resolved. If an exception has not been resolved,
the auditor shall restate the exception in the audit report. After receiving a finding in an audit report, the Superintendent shall either consult with the school district or educational joint powers authority to resolve the exception or require the county superintendent of schools to follow up with the school district or educational joint powers authority.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Each chartering authority shall be responsible for reviewing the audit exceptions contained in an audit of a charter school under its jurisdiction and determining whether the exceptions have been either corrected or an acceptable plan of correction has been developed.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a description of the corrections or plan of correction has not been provided as part of the audit required by this section, the chartering authority shall notify the charter school and request the
governing body of the charter school to provide to the chartering authority a description of the correction or plan of correction before April 15.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The chartering authority shall review the description of the correction or plan of correction and determine its adequacy. If the description of the correction or plan of correction is not adequate, the chartering authority shall require the charter school to resubmit that portion of its response that is inadequate.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Except as provided in subparagraph (B), each chartering authority shall certify to the county superintendent of schools of the county in which the charter school is located, on or before May 15, that the chartering authority has done all of the following for the prior fiscal year:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Reviewed all audits of charter schools under
its jurisdiction.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Reviewed all exceptions that the charter school was required to review were reviewed, and that all of those exceptions, except as otherwise noted in the certification, have been corrected by the charter school or that an acceptable plan of correction has been submitted to the chartering authority.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Ensure that chartering authorities have certified that the charter schools they authorize have corrected or developed a plan of correction for exceptions identified in the audit report.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Identified any attendance-related audit exception or exceptions involving state funds and required the charter school to submit appropriate reporting forms for processing by the Superintendent.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), if the
county board of education of the county in which the charter school is located is the chartering authority, the county board of education shall certify to the Superintendent, on or before June 15, that the county superintendent of schools has done all of the following for the prior fiscal year:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Reviewed all audits of charter schools under its jurisdiction.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Reviewed all exceptions that the charter school was required to review were reviewed, and that all of those exceptions, except as otherwise noted in the certification, have been corrected by the charter school or that an acceptable plan of correction has been submitted to the chartering authority.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Identified any attendance-related audit exception or exceptions involving state funds and required the charter school to submit appropriate reporting forms
for processing by the Superintendent.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
In the audit of a charter school for a subsequent year, the auditor shall review the correction or plan or plans of correction submitted by the charter school to determine if the exceptions have been resolved.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Except as provided in subparagraph (C), if the exceptions identified in subparagraph (A) have not been corrected, the auditor shall restate the exception in the audit report.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
After receiving a finding in an audit report pursuant to clause (i), the county superintendent of schools shall either consult with the charter school to resolve the exception or require the chartering authority to follow up with the charter school.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (B), if the exceptions identified in subparagraph (A) have not been corrected and the county board of education of the county in which the charter school is located is the chartering authority, the auditor shall restate the exception in the audit report.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
After receiving an audit report pursuant to clause (i), the Superintendent shall consult with the charter school to resolve the exception or shall require the county board of education as the chartering authority to follow up with the charter school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
In the audit of a county superintendent of schools for a subsequent year, the auditor shall review the correction or plan or plans of correction submitted by the county superintendent of schools to determine if the exceptions have been resolved.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the exceptions identified in subparagraph (A) have not been resolved, the auditor shall immediately notify the Superintendent and restate the exception in the audit report.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Superintendent shall review the audit exceptions contained in an audit of a county superintendent of schools and shall determine whether the exceptions have been corrected or an acceptable plan of correction has been developed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
After receiving a final audit report of a county superintendent of schools or the county board of education, the Superintendent shall do all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Review audit exceptions, including attendance exceptions or issues, that shall include, but not be limited to, those related to local control funding formula allocations pursuant to Chapter 12.5 (commencing
with Section 2574) of Part 2 of Division 1 of Title 1 and those related to independent study.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notify the county superintendent of schools and request the county superintendent of schools to provide to the Superintendent a description of the corrections or plan of correction no later than 60 calendar days after the Superintendent’s notification if a description of the correction or plan of correction has not been provided as part of the audit required by this section.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Review the description of correction or plan of correction and determine its adequacy. If the description of the correction or plan of correction is not adequate, require the county superintendent of schools to resubmit that portion of its response that is inadequate.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Superintendent is responsible for
ensuring that local educational agencies have either corrected or developed plans of correction for any one or more of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
All federal and state compliance audit exceptions identified in the audit.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Exceptions that the county superintendent of schools certifies as of June 15 have not been corrected.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Repeat audit exceptions that are not assigned to a county superintendent of schools to correct.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In addition, the Superintendent is responsible for ensuring that county superintendents of schools and each county board of education that serves as the governing board or body of a local educational agency either correct all audit exceptions identified in the audits of county superintendents of schools and of the local educational
agencies for which the county boards of education serve as the governing boards or develop acceptable plans of correction for those exceptions.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Superintendent shall report annually to the Controller on the Superintendent’s actions to ensure that school districts, county superintendents of schools, and each county board of education that serves as the governing board of a school district have either corrected or developed plans of correction for any of the exceptions noted pursuant to paragraph (1).
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
To facilitate correction of the exceptions identified by the audits issued pursuant to this section, the Controller shall require auditors to categorize audit exceptions in each audit report in a manner that will make it clear to chartering authorities, the county superintendent of schools, and the Superintendent which exceptions they are responsible for ensuring the
correction of by a local educational agency. In addition, the Controller annually shall select a sampling of chartering authorities and county superintendents of schools, perform a followup of the audit resolution process of those chartering authorities and county superintendents of schools, and report the results of that followup to the Superintendent, the chartering authorities, and the county superintendents of schools that were reviewed.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
County superintendents of schools shall adjust subsequent local property tax requirements to correct audit exceptions relating to local educational agency tax rates and tax revenues.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
If a governing board or body of a local educational agency, chartering authority, or county superintendent of schools fails or is unable to make satisfactory arrangements for the audit pursuant to this section, the Controller shall make arrangements for
the audit and the cost of the audit shall be paid from local educational agency funds or the county school service fund, as the case may be.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
Audits of regional occupational centers and programs are subject to this section.
</html:p>
<html:p>
(t)
<html:span class="EnSpace"/>
This section does not authorize examination of, or reports on, the curriculum used or provided for in any local educational agency.
</html:p>
<html:p>
(u)
<html:span class="EnSpace"/>
Notwithstanding any other law, a nonauditing, management, or other consulting service to be provided to a local educational agency by a certified public accounting firm while the certified public accounting firm is performing an audit of the agency pursuant to this section shall be in accordance with the generally accepted government auditing standards promulgated by the United States Government Accountability Office.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
For purposes of this section, “local educational agency” means a school district, educational joint powers authority, county superintendent of schools, or charter school.
</html:p>
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<ns0:BillSection id="id_06A8A859-1E84-4840-BFEC-14E873F9F7E4">
<ns0:Num>SEC. 13.</ns0:Num>
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Section 41020.2 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_30CD6587-FE50-4B7E-99C3-4E079D9F5FD2">
<ns0:Num>41020.2.</ns0:Num>
<ns0:LawSectionVersion id="id_5E92E321-99D8-4E7A-AF95-B995FC8B0D0A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the governing board of a school district or educational joint powers authority has entered into a contract for an independent audit of its financial statements in accordance with Section 41020 and the audited financial statements have not been filed with the county superintendent of schools on or before the due date established under Section 41020, the county superintendent of schools shall investigate the causes for the delay and initiate one of the actions described in subdivision (c) that will provide the required audited financial statements in the most effective manner.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
If the governing body of a charter school has entered into a contract for an independent audit of its financial statements in
accordance with Section 41020 and the audited financial statements have not been filed with the chartering authority on or before the due date established under Section 41020, the chartering authority shall investigate the causes for the delay and initiate one of the actions described in subdivision (c) that will provide the required audited financial statements in the most effective manner.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a charter school has an approved audit extension pursuant to subdivision (b), a failure to file an audit on or before the legal deadline shall not be a cause for or contributing justification for charter nonrenewal or revocation. Failure to file an audit with the chartering authority on or before the legal deadline due to the inability of a charter school to contract for an audit due to market conditions of available auditors shall not be a cause for or contributing justification for charter nonrenewal or revocation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the county superintendent of schools has entered into a contract for an independent audit of its financial statements in accordance with Section 41020 and the audited financial statements have not been filed with the Superintendent and the Controller on or before the due date established under Section 41020, the Superintendent shall investigate the causes for the delay and initiate one of the actions described in subdivision (c) that will provide the required audited financial statements in the most effective manner.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The county superintendent of schools or chartering authority may, after consultation with the governing board or body of the local educational agency and the auditors under contract to the local educational agency, and with the consent of the Controller’s office and the
Superintendent, grant an appropriate extension for the completion of the audit and the filing of the audited financial statements. An extension does not waive the legal deadline, but permits the filing of the report after the deadline.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If a charter school has an approved audit extension pursuant to this subdivision, a failure to file an audit on or before the legal deadline shall not be a cause for or contributing justification for charter nonrenewal or revocation. Failure to file an audit with the chartering authority on or before the legal deadline due to the inability of a charter school to contract for an audit due to market conditions of available auditors shall not be a cause for or contributing justification for charter nonrenewal or revocation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
As applicable pursuant to subdivision (a), the Controller may, after consultation with the county board of education and
the auditors under contract to the county board of education for the county office of education or for a charter school where the county board of education of the county in which the charter school is located is the chartering authority, and with the consent of the Superintendent, grant an appropriate extension for the completion of the audit and the filing of the audited financial statements. An extension does not waive the legal deadline, but permits the filing of the report after the deadline.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An extension granted pursuant to this subdivision shall be appropriate if the extension adheres to all of the following requirements:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The local educational agency and the auditor have certified that the audit cannot be completed on time due to unforeseen circumstances or complex situations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An extension shall be
the shortest amount of time reasonable given the extenuating circumstances justifying the extension.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Extensions shall be in increments of no longer than 30 calendar days.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Extensions shall not be granted past March 31.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
As applicable pursuant to subdivision (a), the county superintendent of schools or chartering authority may, after consultation with the governing board or body of a local educational agency, the auditors under contract to the local educational agency and the Controller’s office, contract with another qualified certified public accountant or public accountant to obtain the required audited financial statements and charge the cost of the audit to the funds of the local educational agency. The county superintendent of schools or chartering authority or the Controller shall, to the extent
feasible, assist the local educational agency in initiating action to avoid payment to the auditors under contract who did not complete the original audit.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
As applicable pursuant to subdivision (a), the county superintendent of schools, chartering authority, or Superintendent may request the Controller’s office to investigate the situation and initiate action as provided in subdivision (c).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the audited financial statements required by Section 41020 have not been filed by a local educational agency with the Controller’s office on or before the due date established under Section 41020, the Controller’s office shall determine the most advantageous method of obtaining the required audited financial statements. The Controller’s office may, after consultation with the governing board or body of the local educational agency and the auditor under
contract with the local educational agency, do any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Accept the action of the county superintendent of schools, the chartering authority, or the Superintendent permitted by subdivision (b).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Conduct the audit and prepare the auditor’s report, using the staff available within that office and charge the cost of the audit to the next regular apportionment from the State School Fund to the local educational agency.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Contract with any qualified certified public accountant or public accountant, using the appropriate contracting procedures, for the conduct of the audit and preparation of the audited financial statements and charge the cost of the audit to the next regular apportionment from the State School Fund to the local educational agency.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Consistent with the limits described in paragraph (2) of subdivision (b), grant a reasonable extension of the time for filing the report if, in the judgment of the Controller’s office, this will provide the required audited financial statements within the shortest time period. The extension of the time for filing does not waive the legal deadline, but permits the filing of the report after the deadline.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Controller’s office shall consult with the governing board or body of the local educational agency, the auditors under contract to the local educational agency, and the county superintendent of schools or the chartering authority, as applicable, before making the determination of the method to be used in obtaining the audited financial statements. The Controller’s office shall, to the extent feasible, assist the local educational agency in initiating action to avoid payment to the auditors under contract who did not
complete the original audit.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notwithstanding any extension granted under subdivision (b) or subparagraph (D) of paragraph (1) of subdivision (c), the Controller’s office may determine at any time after the due date for filing of audit reports established by Section 41020 that the audited financial statements not yet filed with that office are delinquent and that the audit will be performed under subparagraph (B) or (C) of paragraph (1) of subdivision (c).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
If an extension has not been requested or granted and the audited financial statements required by Section 41020 have not been filed by a local educational agency with the Controller’s office on or before the due date established under Section 41020, the local educational agency and the auditors under contract with the local educational agency shall notify the chartering authority, the county superintendent of schools,
the Superintendent, and the Controller that the audit filing is delayed, the reasons for the delay, and the estimated filing date. The notification shall be made no later than 15 calendar days from the due date established under Section 41020.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The Controller shall notify the appropriate policy committees of the Legislature and the Department of Finance if local educational agencies are unable to contract for an audit due to market conditions of available auditors.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
By September 30, 2028, and every three years thereafter, the Controller shall, in consultation with the entities listed in Section 14502.1, provide recommendations to the appropriate committees of the Legislature regarding outdated or ineffective audit requirements in statute.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
For purposes of this section, “local educational agency” means a
school district, educational joint powers authority, county superintendent of schools, or charter school.
</html:p>
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<ns0:BillSection id="id_7AC733C1-F626-44AB-9120-BA5B21984F93">
<ns0:Num>SEC. 14.</ns0:Num>
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Section 41020.3 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_F4FC0404-DB2E-4732-AE86-5BABF3496FED">
<ns0:Num>41020.3.</ns0:Num>
<ns0:LawSectionVersion id="id_08B99E63-3C56-449D-B9E0-49421A7AAF17">
<ns0:Content>
<html:p>By March 31 of each year, or 45 days after the issuance of an audit report, whichever is later, the governing board or body of each local educational agency shall review, at a public meeting, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. This review shall be placed on the agenda of the meeting pursuant to Section 35145 or 47604.1, as applicable.</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_1A630B00-3A8E-473F-A7E5-F266DD90FA4A">
<ns0:Num>SEC. 15.</ns0:Num>
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Section 41020.4 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_D080AB6C-CD08-4F92-9A1F-21E9BEBD6161">
<ns0:Num>41020.4.</ns0:Num>
<ns0:LawSectionVersion id="id_386C8C82-F3B1-4C72-A448-B2BB71BF3769">
<ns0:Content>
<html:p>By January 31, 2026, and by January 31 each year thereafter, the governing body of a charter school shall review, at a public meeting, the annual audit of the charter school for the prior fiscal year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of corrections for, or plans to correct, any exceptions or management letter issue. The review shall be placed on the agenda of the meeting pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code). </html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_7D039D20-1BA3-4283-9933-4886CCBD598B">
<ns0:Num>SEC. 16.</ns0:Num>
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Section 41020.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5D7C2DAF-2757-42F0-B43F-111C94E28E97">
<ns0:Num>41020.5.</ns0:Num>
<ns0:LawSectionVersion id="id_F7012889-2510-4A9E-AE3A-86E8C1EAD612">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the Controller determines by two consecutive quality control reviews pursuant to Section 14504.2, or if the Superintendent, chartering authority, or a county superintendent of schools determines, that audits performed by a certified public accountant or public accountant under Section 41020 were not performed in substantial conformity with provisions of the audit guide, or that the audit reports, including amended reports, submitted by February 15 following the close of the fiscal year audited, for two consecutive years do not conform to provisions of the audit guide as required by Section 14504, the Controller, the Superintendent, the chartering authority, or the county superintendent of schools, as appropriate, shall notify in writing the certified
public accountant or public accountant and the California Board of Accountancy.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the certified public accountant or public accountant does not file an appeal in writing with the California Board of Accountancy within 30 calendar days after receipt of the notification from the Controller, Superintendent, chartering authority, or county superintendent of schools, the determination of the Controller, Superintendent, chartering authority, or county superintendent of schools pursuant to this section shall be final.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If an appeal is filed with the California Board of Accountancy, the board shall complete an investigation of the appeal within 90 days of the filing date. On the basis of the investigation, the board may do either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Find that the determination of the Controller, Superintendent,
chartering authority, or county superintendent of schools should not be upheld and has no effect.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Schedule the appeal for a hearing, in which case, the final action on the appeal shall be completed by the board within one year from the date of filing the appeal.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the determination of the Controller, Superintendent, chartering authority, or county superintendent of schools under subdivision (a) becomes final, the certified public accountant or public accountant shall be ineligible to conduct audits under Section 41020 for a period of three years, or, in the event of an appeal, for any period, and subject to the conditions, that may be ordered by the California Board of Accountancy. Not later than the first day of March of each year, the Controller shall notify each school district, charter school, and county office of education of those certified public accountants or
public accountants determined to be ineligible under this section. School districts, charter schools, and county offices of education shall not use the audit services of a certified public accountant or public accountant ineligible under this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “certified public accountant or public accountant” includes any person or firm entering into a contract to conduct an audit under Section 41020.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section does not preclude the California Board of Accountancy from taking any disciplinary action it deems appropriate under other laws.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C1B3388D-FEEC-4E8A-A2AC-C6986FF5BD8B">
<ns0:Num>SEC. 17.</ns0:Num>
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Section 41020.6 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_5D0FFA2C-633F-4A04-91E6-457B2B862AB5">
<ns0:Num>41020.6.</ns0:Num>
<ns0:LawSectionVersion id="id_0A8586B0-8AB9-4BA3-BAF4-1B0CB1A6B1E3">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall include instructions necessary to require all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For local educational agencies, as part of supplementary information, or other information as deemed applicable under generally accepted auditing standards, schedules of all of the following, as applicable:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Pupil enrollment and attendance, including total pupil enrollment and attendance by track for each school month, and, if the local educational agency operates a multitrack year-round calendar, perform an analytical procedure and identify and disclose
unusual increases or decreases in enrollment by month that are material and provide an opportunity for the local educational agency to provide an explanation in the note.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The largest 25 aggregate payments or transfers.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For school districts and county offices of education, pupil-to-teacher ratios for independent study programs.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Loans with related entities or employees.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
For charter schools, board or body members and related entities.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The five highest paid employees.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For flex-based charter schools, as part of supplementary information, or other information as deemed applicable under generally accepted
auditing standards, additional instructions to require schedules of the components of funding determinations pursuant to Section 47634.2:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The components used to determine the pupil-to-teacher ratio and the resulting ratio.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The components used to determine the percentage of revenue expended on certificated staff salaries and benefits, and the resulting percentage.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The components used to determine the percentage of revenue expended on instruction and related services, and the resulting percentage.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For flex-based charter schools that are part of a network, as defined in Section 47634.3, additional instructions to require documents needed to verify the data in paragraph (2) to be provided to the auditor and the
department contemporaneously and include the unique teacher identifier, full-time equivalency, and salary and benefit amounts on an electronic template developed by the department.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
As an alternative to having the department perform the analysis for a network pursuant to paragraph (2) of subdivision (d) of Section 47634.2, flex-based charter schools that are part of a network, as defined in Section 47634.3, may instead elect one of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A consolidated audit that includes the entire network.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
A combined audit that includes the entire network.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
A performance audit completed under the Government Auditing Standards for the funding determination components that includes the entire network.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The auditor shall perform additional procedures to determine whether any of the components of paragraph (2) are inappropriately double counted in multiple charter schools across the network that adversely impact any of the components of paragraph (2). If such noncompliance is identified, the auditor shall report it as an audit finding.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall include, but is not necessarily limited to, instructions necessary to require, at a minimum, that all of the following compliance procedures are performed in an audit of a local educational agency, except as otherwise limited:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Compliance: compliance with professional accounting and auditing standards
with an emphasis in the audit guide that audits of local educational agencies shall be conducted in compliance with Governmental Accounting Standards Board (GASB) or Financial Accounting Standards Board (FASB) statements and standards, as applicable, and generally accepted auditing standards (GAAS).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Sample selection: where representative samples of pupils, pupil work product, financial transactions, or other sampling are required to be performed and selected, the auditor shall independently identify the sample and make that selection in a manner that cannot be predicted, in accordance with professional standards.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Auditor transaction sampling shall include a sample size appropriate for the type of local educational agency pursuant to the test of compliance sample table in the Guide for Annual Audits of K–12 Local Education Agencies and State
Compliance Reporting.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Sampling of pupil enrollment, attendance, and instructional minutes shall be representative of and inclusive of all the local education agencies’ tracks and grade spans as applicable and in consideration of materiality levels established in the Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
For an audit of a locally funded charter school that is governed by a school district or county office of education and that is included in the school district’s or county office of education’s audit, the auditor shall ensure that all samples completed are representative of each of the local educational agencies included in the audit.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Charter schools that are locally funded and governed by a school district or county office of education shall report
charter school financial data separately from the general fund of the school district or county office of education. If the school district or county office of education audit includes more than one charter school, or if the charter school fund is not a major fund, the auditor shall also present financial data separately for each individual charter school in the supplemental section or footnotes of the audit report.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Using appropriate sampling techniques, verify pupil enrollment for independent study programs at local educational agencies and verify that a pupil’s residence meets applicable residency requirements based on documentation provided by the parent or guardian of the pupil, emancipated pupil, or other custodian of pupil, or, in the case of a pupil over 18 years of age, by the pupil.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Chartering authority input: require auditors to consult
with and inquire of the chartering authority during planning stages of the audit of a charter school authorized by the chartering authority to assist the auditor in identifying potential audit risks, including, but not limited to, fiscal and compliance areas that the charter school may not meet expectations, potential fraud risks, irregularities in observations and reporting, and other background information pertinent to the audit.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
County Office of Education input: require auditors to consult with and inquire of the county office of education during planning stages of the audit of a school district or educational joint powers authority to assist the auditor in identifying potential audit risks, including, but not limited to, fiscal and compliance areas that the school district or educational joint powers authority may not meet expectations, potential fraud risks, irregularities in observations and reporting, and other background information
pertinent to the audit.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Superintendent input: require auditors to consult with and inquire of the Superintendent during planning stages of the audit of a county office of education to assist the auditor in identifying potential audit risks, including, but not limited to, fiscal and compliance areas that the county office of education may not meet expectations, potential fraud risks, irregularities in observations and reporting, and other background information pertinent to the audit.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Related entity: determining if a related entity, such as a charter management organization, education management organization, or similar third party with financial, economic, or controlling membership interest, exists with the charter school, as defined by generally accepted accounting principles. A charter school that files a federal tax return shall include all
related entities identified on the federal tax return.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a relationship is determined to exist pursuant to subparagraph (A), evaluate the level of the relationship to determine if it is material. For purposes of materiality, determine if the related party has a material financial, economic, or controlling interest in the charter school or can exercise material control, such as common management or board, majority voting interest, or sole corporate or statutory member or other arrangement.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Verification: For a charter school, verify if more than 20 percent of the charter school’s total average daily attendance was generated through independent study, pursuant to Section 47634.2.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Verify the pupil-to-teacher ratio calculation. For independent study programs at school districts,
county offices of education, and charter schools, verify the pupil-to-teacher ratios and calculations required pursuant to Section 51745.6.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
For flex-based charter schools, do all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Determine whether the charter school is in a network of flex-based charter schools, as defined in Section 47634.3.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a determination is made pursuant to subparagraph (A) that the flex-based charter school is in a network of flex-based charter schools, do all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Identify whether the charter school employs teachers who are required to provide instruction to pupils enrolled in flex-based charter schools other than the charter school holding the teacher’s employment contract.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Identify whether the charter school has teachers who are required to provide instruction to pupils who attend another flex-based charter school.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Identify the other flex-based charter schools within the network of flex-based charter schools and report these results to the chartering authority of the charter school and the department, in a reporting method determined by the department.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Funding determination thresholds: for flex-based charter schools, determine all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Whether the charter school submitted a determination of funding request to the state board.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The most recent approved funding determination made by the state board.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Whether
the charter school has met the pupil-to-teacher ratio pursuant to Section 51745.6 and both the percentage of revenue expended on certificated staff salaries and benefits, and the percentage of revenue expended on instruction and related services, included in the state board-approved determination of funding, in accordance with subdivision (c) of Section 47634.2. Verify the percentage of revenue expended on instruction and related services with detailed information and financial records necessary to determine the qualifying expenditures consistent with the definition of instruction and related services in Section 47634.2.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
Payments: select a sample of all payments and verify that those payments are legal and have proper authorization. The sampling shall include, but not be limited to, payments obtained through credit card statements, debit card statements, other electronic payment methods, and bank statements.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
Identify any transfers of funds or assets to other individuals or organizations that exceed one million dollars ($1,000,000) or 10 percent of the local educational agency’s total revenue and other sources, whichever is less, together with a written explanation from the local educational agency regarding the local educational agency’s purpose for each of those expenditures.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
Charter School Oversight: Ensure the chartering authority has documentation of completing the oversight tasks in subdivisions (a), (c), and (d) of Section 47604.32 and teacher assignment monitoring pursuant to Section 44258.9.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For schools that offer grades 10, 11, or 12, inclusive, at local educational agencies, perform an analytical procedure and identify unusual enrollment patterns between consecutive grade
levels and pupils that change grade levels during the school year for that school and report as a note.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Identify if a pupil advanced to grade 12 without completing a California Assessment of Student Performance and Progress assessment in English language arts/literacy and mathematics using pupil cohort data and assessment data and report as a note. Report the total number of pupils disenrolled from the school after census day, in a note. A local educational agency shall provide the auditor necessary assessment data from the Test Operations Management System or subsequent successor system.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
Verify documentation of pupil work products, pursuant to clause (iii) of subparagraph (A) of paragraph (2) of subdivision (b) of Section 51747.5.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year Guide for Annual Audits of K–12
Local Education Agencies and State Compliance Reporting, the Controller shall include a library of sample letters and schedules applicable to the Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting requirements for both school districts and charter schools as a means of guidance to auditors.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “local educational agency” means a school district, county office of education, charter school, or educational joint powers authority.
</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_53EB56E3-34B8-4CA9-B80D-B6A3476F27B3">
<ns0:Num>SEC. 18.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'24.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'41020.8.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 41020.8 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_C5900B82-8199-4B71-B41E-CE673D41CB67">
<ns0:Num>41020.8.</ns0:Num>
<ns0:LawSectionVersion id="id_3ABC4F3E-2E7D-41C0-9070-C01CA7EC3CAD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, the auditor conducting an annual audit pursuant to Section 41020 shall, upon request, provide pertinent financial and compliance information related to the circumstances listed in subdivision (b) to specified entities as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
To the county superintendent of schools for a school district or educational joint powers authority within the county superintendent of schools’ jurisdiction.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To the chartering authority or county superintendent of schools for a charter school if the county superintendent of schools is not the chartering authority.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
To the Superintendent and the Controller for any
local educational agency.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The circumstances described in subdivision (a) include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The local educational agency has a financial audit finding, an audit finding for a material weakness or significant deficiency in internal controls, or a material noncompliance finding.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The audit of a local educational agency contains an audit opinion other than unmodified.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The audit has included a statement that there is substantial doubt about the local educational agency’s ability to continue as a going concern for a reasonable period of time.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A determination has been made that a school district may not be able to meet its obligations of the current or subsequent
fiscal year pursuant to Section 42127.6.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
There is evidence that the school district is showing fiscal distress under the standards and criteria adopted in Section 33127 pursuant to paragraph (1) of subdivision (a) of Section 42127.6.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A school district has a negative unrestricted fund balance or negative cash balance pursuant to Section 42127.5.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A school district has received an emergency apportionment pursuant to Article 2 (commencing with Section 41320) or Article 2.5 (commencing with Section 41325) of Chapter 3 of Part 24 of Division 3 of Title 2.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The budget of the school district, educational joint powers authority, or county superintendent of schools is disapproved or the school district or county superintendent of schools has
received a negative certification on any budget or interim financial report, as defined in Sections 1240, 1622, 42127, and 42131, during the current or preceding fiscal year.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
A quality control review by the Controller is triggered pursuant to Section 14504.2.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Information provided by an auditor to the chartering authority, a county superintendent of schools, the Controller, or the Superintendent pursuant to this section shall be submitted simultaneously to the named school district, charter school, or county superintendent of schools, as applicable, and shall not constitute a violation of auditor-client confidentiality.
</html:p>
</ns0:Content>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_DC0AB097-42BD-4D7F-83EF-B6AD893EB9A1">
<ns0:Num>SEC. 19.</ns0:Num>
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Section 42238.024 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_ECED9970-D772-405B-93C1-ECA4C416DC50">
<ns0:Num>42238.024.</ns0:Num>
<ns0:LawSectionVersion id="id_711864C8-AF67-448E-9005-66A86D5258CC">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Commencing with the 2023–24 fiscal year, the sum of three hundred million dollars ($300,000,000) is hereby appropriated each fiscal year from the General Fund to the Superintendent for allocation for the Local Control Funding Formula Equity Multiplier apportionment in the manner and for the purposes set forth in this section. Commencing with the 2024–25 fiscal year, the amount appropriated pursuant to this subdivision shall be adjusted each fiscal year by the percentage change applied pursuant to paragraph (2) of subdivision (d) of Section 42238.02 for that fiscal year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Funds appropriated pursuant to subdivision (a) shall be made available by the Superintendent to eligible local educational agencies for allocation to schoolsites
eligible pursuant to paragraph (2) for evidence-based services and supports for pupils, with a demonstration of how the resulting services and supports are increased or improved in comparison to services and supports that would have been provided at the schoolsites if the funding were not provided. Funds appropriated pursuant to subdivision (a) shall supplement, not supplant, funding provided for these schoolsites for purposes of the local control funding formula pursuant to Section 2574, 2575, or 42238.02, the Expanded Learning Opportunities Program pursuant to Section 46120, the Literacy Coaches and Reading Specialists Grant Program established pursuant to Section 137 of Chapter 52 of the Statutes of 2022, and the California Community Schools Partnership Act (Chapter 6 (commencing with Section 8900) of Part 6 of Division 1 of Title 1).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For schoolsites with prior year nonstability rates greater than 25 percent and prior year
socioeconomically disadvantaged pupil rates of greater than 70 percent, funding shall be allocated on a per-unit basis of the schoolsite’s total prior year adjusted cumulative enrollment. The per-unit funding amount is based on total statewide eligible enrollment and the amount of funds available, as reported in the stability rate data file.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An eligible schoolsite shall not receive funding pursuant to paragraph (2) of less than fifty thousand dollars ($50,000), adjusted each fiscal year by percentage change applied pursuant to paragraph (2) of subdivision (d) of Section 42238.02 for that fiscal year.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A schoolsite deemed eligible pursuant to paragraph (2) shall instead be deemed ineligible if it meets either of the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The schoolsite has closed in the year in which the funds are to be
allocated, as reported pursuant to paragraph (2) of subdivision (f) of Section 60900.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Commencing with the 2024–25 fiscal year, the local educational agency generated funding for a schoolsite pursuant to paragraph (2) due to a pupil being enrolled in the school district office.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Unspent funds from any fiscal year provided to a local educational agency with a schoolsite that has closed, as reported pursuant to paragraph (2) of subdivision (f) of Section 60900, shall be returned to the department. Local educational agencies shall report the total amount of unspent funds in accordance with instructions and forms prescribed and furnished by the Superintendent.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Eligible local
educational agency” means a school district, county office of education, or charter school that generates a local control funding formula entitlement pursuant to Sections 2574, 2575, or 42238.02, excluding a charter school classified as a flex-based charter school as of the prior fiscal year’s second principal apportionment certification pursuant to Section 47612.5.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Nonstability rate” means the percentage of pupils who are either enrolled for less than 245 continuous days between July 1 and June 30 of the prior school year, or exited from a school between July 1 and June 30 of the prior school year due to either truancy, expulsion, or for unknown reasons and without stable subsequent enrollment at another school as identified in the stability rate data file.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Prior year adjusted cumulative enrollment” means any enrollment with a start date in the school year in
transitional kindergarten, kindergarten, and grades 1 to 12, inclusive, as identified in the stability rate data file.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Schoolsite” means an individual school in an eligible local educational agency, excluding the school district office.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Socioeconomically disadvantaged pupil rate” means the percentage of pupils that meet any of the following criteria for the prior school year:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Neither of the pupil’s parents has a high school diploma.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The pupil is eligible for free or reduced-price meals under the federal National School Lunch Program, including by direct certification.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The pupil is a migratory child for purposes of Part C (commencing with Section 6391) of Subchapter I
of Chapter 70 of Title 20 of the United States Code.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The pupil is a homeless child or youth.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The pupil is a foster youth.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The pupil is enrolled in a county juvenile court school.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Stability rate data file” means the initial publication of the annual file published by the department for the prior school year that will be used to determine a schoolsite’s prior year adjusted cumulative enrollment, nonstability rate, and socioeconomically disadvantaged rate for the purposes of calculating funding pursuant to this section for an eligible local educational agency.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notwithstanding Section 10231.5 of the Government Code, by February 1, 2025, and each February 1 thereafter, the
department, using existing resources, shall submit an annual report to the relevant policy and fiscal committees of the Legislature, the state board, and the Department of Finance that includes the following information on pupil outcomes at schoolsites that receive funding pursuant to this section and statewide pupil outcomes:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Pupil subgroup data captured in the stability rate data file, based on enrollment at the eligible schoolsite.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Number of truant pupils captured in the stability rate data file and enrolled at the eligible schoolsite.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Number of expelled pupils captured in the stability rate data file and enrolled at the eligible schoolsite.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Number of pupils whose reasons for exit from the schoolsite are unknown, as captured in the
stability rate data file, and enrolled at the eligible schoolsite.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Performance of the eligible schoolsites on California School Dashboard state indicators, disaggregated by pupil subgroup.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriations made by subdivision (a) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the fiscal year for which the appropriation is made, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII
<html:span class="ThinSpace"/>
B,” as defined in subdivision (e) of Section 41202, for the fiscal year for which the appropriation is made.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_AFE57470-F09F-41D0-9673-6B15A3D98D96">
<ns0:Num>SEC. 20.</ns0:Num>
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Section 43521 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_3CB6B776-D27C-47A7-AD68-621E135B9620">
<ns0:Num>43521.</ns0:Num>
<ns0:LawSectionVersion id="id_CDB3E21D-45AB-4F54-8471-A50A8159B89A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The sum of four billion five hundred forty-one million one hundred thirteen thousand dollars ($4,541,113,000) from the General Fund, and the sum of two billion sixteen million three hundred thirty thousand dollars ($2,016,330,000) from the Federal Trust Fund, are hereby appropriated to the Superintendent for apportionment in the 2020–21 fiscal year pursuant to this chapter. Funds apportioned to eligible local educational agencies from the Federal Trust Fund pursuant to this subdivision shall be used for costs dating back to March 13, 2020, and shall be consistent with the terms, tracking and reporting requirements, and period of fund availability in accordance with federal law for all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Six hundred seventy million nine hundred sixty-three
thousand dollars ($670,963,000) from the Elementary and Secondary School Emergency Relief Fund pursuant to the federal Coronavirus Response and Relief Supplemental Appropriations Act, 2021, (Public Law 116-260) available for obligation through September 30, 2023, unless otherwise provided in federal law.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
One hundred fifty-three million nine hundred ninety-two thousand dollars ($153,992,000) from the Governor’s Emergency Education Relief Fund pursuant to the federal Coronavirus Response and Relief Supplemental Appropriations Act, 2021, (Public Law 116-260) available for obligation through September 30, 2023, unless otherwise provided in federal law.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Four hundred thirty-seven million three hundred ninety thousand dollars ($437,390,000) from the Elementary and Secondary School Emergency Relief Fund pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2)
available for obligation through September 30, 2024, unless otherwise provided in federal law. For the purposes of Section 2001(f)(4) of the federal American Rescue Plan Act of 2021 (Public Law 117-2), this constitutes the state’s reserve of funds for emergency needs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Seven hundred fifty-three million nine hundred eighty-five thousand dollars ($753,985,000) from the Elementary and Secondary School Emergency Relief Fund state level reservation to address learning loss, pursuant to the federal American Rescue Plan Act of 2021 (Public Law 117-2) available for obligation through September 30, 2024, unless otherwise provided in federal law. For the purposes of Section 2001(f)(1) of the federal American Rescue Plan Act of 2021 (Public Law 117-2), this constitutes the state’s reserve of funds to carry out activities to address learning loss.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Of the amount appropriated pursuant to
subdivision (a), four billion five hundred fifty-seven million four hundred forty-three thousand dollars ($4,557,443,000) shall be apportioned to local educational agencies and state special schools in the following manner:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A local educational agency shall receive one thousand dollars ($1,000) per homeless pupil enrolled in the 2020–21 fiscal year as reported in the California Longitudinal Pupil Achievement Data System as of the 2020–21 Fall 1 Submission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A state special school shall receive seven hundred twenty-five dollars ($725) for each unit of average daily attendance as of the 2020–21 second principal apportionment certification. The average daily attendance for each state special school shall be deemed to be 97 percent of the enrollment as reported in the California Longitudinal Pupil Achievement Data System as of the 2020–21 Fall 1 Submission.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The funds remaining after the apportionments in paragraphs (1) and (2) shall be apportioned proportionally on the basis of a local educational agency’s local control funding formula entitlement determined as of the 2020–21 second principal apportionment certification, pursuant to Sections 42238.02 and 42238.025, or subdivision (e) of Section 2574 or subdivision (a) of Section 2575, as applicable. For purposes of this paragraph, entitlements shall include apportionments allocated pursuant to Section 41544 and Article 7 (commencing with Section 48300) of Chapter 2 of Part 27.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Consistent with Section 2576, a county office of education’s local control funding formula entitlement for purposes of subparagraph (A) shall include funding that the Superintendent transferred to the county where a pupil is enrolled, equal to the amount calculated for the school
district of residence pursuant to Section 42238.02 for each unit of average daily attendance credited to the school district of residence as of the 2020–21 second principal apportionment certification.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Of the amount appropriated from the General Fund pursuant to subdivision (a), two billion dollars ($2,000,000,000) shall be apportioned to local educational agencies, excluding a charter school classified as a nonclassroom-based charter school as of the 2019–20 second principal apportionment certification pursuant to Section 47612.5, as that section read on that date, based on the apportionment methodology described in paragraph (3) of subdivision (b).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A local educational agency’s apportionment of funds pursuant to paragraph (1) shall be reduced pursuant to subparagraph (B) if the local educational agency does not provide
in-person instruction pursuant to paragraph (3).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
From April 1, 2021, to May 15, 2021, inclusive, a local educational agency’s apportionment of funds pursuant to paragraph (1) shall be reduced by 1 percent for each day of instruction provided for in the school calendar that the local educational agency does not provide in-person instruction pursuant to paragraph (3), as identified in the school calendar adopted for the 2020–21 school year that is in effect on March 1, 2021.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
If a local educational agency does not provide in-person instruction pursuant to paragraph (3) on or before May 15, 2021, it shall forfeit all funds apportioned pursuant to paragraph (1).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
If a local educational agency does not offer continuous in-person instruction for pupils pursuant to subparagraphs (A) to
(C), inclusive, of paragraph (3) from when it commences offering in-person instruction through the end of the scheduled 2020–21 school year, unless otherwise ordered by a state or local health officer, it shall forfeit all funds apportioned pursuant to paragraph (1). The scheduled school year is the adopted school calendar for the 2020–21 school year that is in effect on March 1, 2021.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of this subdivision, a local educational agency shall be considered to be offering in-person instruction if it does at least all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
For a local educational agency in a county in the purple tier pursuant to the State Department of Public Health’s Blueprint for a Safer Economy that is neither open nor eligible to open as defined in the COVID-19 industry sector guidance for schools and school-based programs, the local educational agency offers optional in-person
instruction pursuant to the State Department of Public Health’s Guidance Related to Cohorts to all pupils who are individuals with exceptional needs, if consistent with each pupil’s individualized education program, and to all prioritized pupil groups described in paragraph (4), unless the number of pupils in the prioritized pupil groups seeking in-person instruction exceeds the practical capacity of a local educational agency to maintain health and safety pursuant to its COVID-19 safety plan, in which case the local educational agency may limit the number of pupils within the prioritized pupil groups that receive in-person instruction to its maximum practical capacity.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For elementary schools, for kindergarten and grades 1 to 6, inclusive, as applicable, the following applies:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For a local educational agency in a county in the purple tier pursuant to the State Department of
Public Health’s Blueprint for a Safer Economy, when eligible pursuant to COVID-19 industry sector guidance for schools and school-based programs, the local educational agency offers optional in-person instruction to all pupils required to be offered in-person instruction pursuant to subparagraph (A), and to all pupils in kindergarten and grades 1 and 2.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
When eligible pursuant to COVID-19 industry sector guidance for schools and school-based programs to provide in-person instruction for kindergarten and grades 1 to 12, inclusive, the local educational agency offers optional in-person instruction to all pupils required to be offered in-person instruction pursuant to clause (i), and to all pupils in grade 3 through the highest elementary school grade, up to grade 6, inclusive.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For middle schools and high schools, for grades 6 to 12, inclusive, as applicable, when eligible
pursuant to COVID-19 industry sector guidance for schools and school-based programs to provide in-person instruction for kindergarten and grades 1 to 12, inclusive, the local educational agency offers optional in-person instruction to all pupils required to be offered in-person instruction pursuant to subparagraph (A), and to all pupils in at least one full grade level.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Except as provided in clause (ii), for a local educational agency in a county in the purple tier pursuant to the State Department of Public Health’s Blueprint for a Safer Economy, the local educational agency conducts asymptomatic testing for staff and pupils participating in in-person instruction consistent with the state-supported cadences set forth in the COVID-19 industry sector guidance for schools and school-based programs.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The requirement in clause (i) does not apply if, on
or before March 31, 2021, the local educational agency is providing in-person instruction or the governing board or body of the local educational agency has adopted a plan to provide in-person instruction and has publicly posted its COVID-19 safety plan on its internet website. A local educational agency in a county that moves from the purple tier into the red, orange, or yellow tier pursuant to the State Department of Public Health’s Blueprint for a Safer Economy, is not required to maintain asymptomatic testing for staff and pupils participating in in-person instruction consistent with the state-supported cadences set forth in the COVID-19 industry sector guidance for schools and school-based programs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For the purposes of this subdivision, “prioritized pupil groups” shall include all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Pupils at risk for abuse, neglect, or exploitation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Homeless pupils.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Foster youth.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
English learners.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Pupils without access to a computing device, software, and high-speed internet necessary to participate in online instruction, as determined by the local educational agency.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Disengaged pupils.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
On or before June 1, 2021, a local educational agency shall certify its compliance with paragraph (3) using a form the State Department of Education shall provide for this purpose. The State Department of Education shall make this form available publicly on its internet website on or before May 1, 2021.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The State Department of Education’s calculation of a local educational agency’s apportionment of remaining state funds pursuant to subdivision (f) shall include a reduction equal to the amount of funds reduced pursuant to clause (i) of subparagraph (B) of paragraph (2) or forfeited pursuant to clause (ii) of subparagraph (B) of paragraph (2).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Any funds reduced pursuant to clause (i) of subparagraph (B) of paragraph (2) or forfeited pursuant to clause (ii) of subparagraph (B) of paragraph (2) shall be redistributed in the calculations made pursuant to paragraph (1).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A local educational agency receiving funds pursuant to this section shall comply with the requirements of Section 43503 for all pupils participating in distance learning, instructional time requirements pursuant to Section 43501 for the 2020–21 school year, and
applicable instructional day requirements pursuant to Chapter 2 (commencing with Section 46100) of Part 26 of Division 4 for the 2021–22 school year.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Within 15 days of March 5, 2021, the State Department of Education shall notify each local educational agency and state special school of its estimated apportionments under subdivisions (b) and (c), as applicable.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
State funds apportioned to a local educational agency or state special school pursuant to this section shall be provided by the Controller to the local educational agency or state special school as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In May 2021, an amount equal to 50 percent of the amount determined under subdivision (e) for the local educational agency or state special school using 2020–21 first principal apportionment certification data and
2020–21 preliminary California Longitudinal Pupil Achievement Data System Fall 1 data.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
On or before December 31, 2021, the remaining amount of state funds owed under this section, after reductions pursuant to paragraph (6) of subdivision (c), to the local educational agency or state special school using 2020–21 second principal apportionment data and 2020–21 final California Longitudinal Pupil Achievement Data System Fall 1 data. If based on the final data, the amount paid by the Controller in May 2021 exceeds the amount of state funding owed to a local educational agency, the State Department of Education may offset the local educational agency’s monthly principal apportionment payment to recover the overpayment of state funds.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
State funds apportioned to a local educational agency or state special school pursuant to this section shall be available for expenditure through
September 30, 2024. Federal funds apportioned to a local educational agency or state special school pursuant to this section shall be available for expenditure pursuant to the period of fund availability specified in paragraphs (1) to (4), inclusive, of subdivision (a).
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Neither the funding conditions or other requirements established in this chapter or Article 8 (commencing with Section 32090) of Chapter 1 of Part 19 of Division 1 of Title 1, nor the issuance of any nonmandatory guidance by the State Department of Public Health shall be construed as creating or establishing an affirmative obligation for a local educational agency to revise its completed COVID-19 safety plan that is publicly posted on its internet website on or before March 31, 2021.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Notwithstanding subdivisions (b) and (c), a charter school that has ceased operation on or before March 5, 2021, shall not be
allocated funding pursuant to this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of apportionments made pursuant to this section from federal funds described in paragraphs (1) to (4), inclusive, of subdivision (a), funding for a locally funded charter school shall be included in the apportionment of the chartering authority.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, of the amount appropriated from the General Fund in subdivision (a), one billion three hundred sixty-four million nine hundred thirty-one thousand dollars ($1,364,931,000) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2019–20 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII
<html:span class="ThinSpace"/>
B,” as defined in subdivision (e) of Section 41202, for the 2019–20 fiscal year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, of the amount appropriated from the General Fund in subdivision (a), three billion one hundred seventy-six million one hundred eighty-two thousand dollars ($3,176,182,000) shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the 2020–21 fiscal year, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII
<html:span class="ThinSpace"/>
B,” as defined in subdivision (e) of Section 41202, for the 2020–21 fiscal year.
</html:p>
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<ns0:BillSection id="id_065C618E-04E3-4BC8-9946-655ACFC34091">
<ns0:Num>SEC. 21.</ns0:Num>
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Section 44258.9 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_E6037FAD-3940-447B-B30A-EBDFA79EEE75">
<ns0:Num>44258.9.</ns0:Num>
<ns0:LawSectionVersion id="id_B4ACF104-18DF-40E9-BC46-C71E4D590F98">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Legislature finds and declares both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
That continued monitoring of educator assignments by the commission and the county superintendents of schools and continued reporting of educator assignments by the department will help ensure that local educational agencies meet state and federal reporting requirements, including the requirements of the federal Every Student Succeeds Act (Public Law 114-95), or any other federal law that effectively replaces that act, and will ensure that the rate of educator misassignments remains low.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
That local educational agencies, state officials, pupils, and guardians have a vested interest in knowing and
understanding the capacity of local educational agencies to fill all available and funded teaching assignments with educators who are fully credentialed for the subjects and pupils they are teaching, and a vested interest in understanding the scope of the teacher shortage across the TK/K–12 educational system, including, but not limited to, those instances where vacancies cannot be filled, resulting in the use of substitutes, increases in class size, or cancellation of courses or classes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To support pupil access to credentialed and appropriately assigned educators, the commission and the department shall collaborate to publish annual data on educator credentialing and assignment, at the school, local educational agency, and state levels. To the extent possible, and with the funds provided for that purpose, each county office of education shall perform its duties as a monitoring authority, as specified in subdivision (e).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The commission and the department shall collaborate to perform the duties specified in this section, with the commission executing the assignment monitoring process and the department facilitating the annual teaching assignment monitoring data production and publication.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The teaching assignment monitoring outcome data reporting shall be executed in a manner consistent with the statewide system of support and the school accountability system established pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4, county office of education monitoring established pursuant to Article 2 (commencing with Section 1240) of Chapter 2 of Part 2 of Division 1 of Title 1, and the state plan approved by the state board that is required for compliance with the federal Every Student Succeeds Act, or any other federal law that effectively replaces that
act.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions and identifications apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“An instance of a teacher shortage” means an identification by the commission that a course or class assignment is not any of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Permanently filled as of Census Day.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Filled by a fully credentialed teacher.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Filled by a teacher who is appropriately assigned.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A “fully credentialed teacher” means an individual who has completed a teacher preparation program, as defined in subdivision (e) of Section 44225.7, and who holds a valid preliminary or clear credential issued based upon
the completion of that teacher preparation program.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An assignment is “permanently filled as of Census Day” if the educator serving as a teacher has been contracted as of Census Day to provide instruction for either the entire school year or for a one-semester course for the entire semester.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A teacher is “appropriately assigned” if the teacher holds a credential, permit, or waiver issued by the commission that contains an authorization to legally teach in the setting, in the subject area, and the pupil population associated with the assignment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“An unfilled position” shall be identified in each instance where a local educational agency has attempted to fill or is actively trying to fill an open and funded position, but is unable to do so.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“A vacant position” shall be identified in each instance where, as of Census Day, a course or class assignment has not been permanently filled by a single-designated certificated employee serving for either the entire school year or for a one-semester course for the entire semester. For purposes of identifying an instance of a teacher shortage pursuant to paragraph (3) of subdivision (h), a “vacant position” shall be limited to an employee serving as a teacher.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Assignment” means the placement of an individual in a teaching or services position. An “assignment” can be filled legally by an individual with a credential, permit, waiver, or any other document issued by the commission authorizing the assignment, or the individual may be otherwise authorized by statute.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Local educational agency” means a school district, county office of education, charter
school, or state special school.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Misassignment” has the same meaning as defined in Section 33126. For purposes of this section, “employee,” as used in the definition of “misassignment” in Section 33126, includes an individual hired on a contract. For purposes of this section, in a charter school, “misassignment” shall apply only to employees in teaching positions.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Monitoring authority” means:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The county office of education for school districts in the county and programs operated by the county office of education.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The commission for a school district or county office of education that operates within a city or county in which there is a single school district, including the Counties of Alpine, Amador, Del Norte, Mariposa, Plumas, and
Sierra, and the City and County of San Francisco, and the state special schools.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The chartering authority for a charter school.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Notwithstanding clause (i), in cases where a charter school operates under the authority of a school district in which the charter school is the sole schoolsite in the school district, the commission shall serve as the monitoring authority.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“System,” unless the context requires otherwise, means the California Statewide Assignment Accountability System, which is an electronic data system administered by the commission for monitoring educator assignments and vacant positions and uses department data collected pursuant to Sections 10600 and 60900 for its functioning.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission and
the department shall enter into a data sharing agreement for the department to provide the commission with educator assignment data necessary to annually identify educator assignments, including assignments filled by individuals on preliminary or clear credentials, intern credentials, permits or waivers, misassignments, and vacant positions at local educational agencies. The data sharing agreement shall also require the commission to make credential, permit, waiver, misassignment, vacant positions, and other relevant data available to the department to support reporting consistent with the state plan approved by the state board that is required for compliance with the federal Every Student Succeeds Act (Public Law 114–95), or any other federal law that effectively replaces that act, and applicable state reporting requirements, including for the statewide system of support established pursuant to Article 4.5 (commencing with Section 52059.5) of Chapter 6.1 of Part 28 of Division 4.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The commission and the department may engage in a variety of activities designed to inform school administrators, teachers, and personnel within the county offices of education of the regulations and statutes affecting the assignment of educators and how data on educator assignments is published and used. These activities may include, but shall not necessarily be limited to, the preparation of instructive brochures and the holding of regional workshops.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall annually use the data provided by the department pursuant to subdivision (c) to produce an initial data file of vacant positions and educator assignments that do not have a clear match of credential to assignment. The commission shall notify local educational agencies and monitoring authorities of the opportunity to access the system and review the initial data file of potential
misassignments and vacant positions.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A local educational agency may do any of the following within 60 days of the commission’s notification pursuant to paragraph (1):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Access and review the initial data file in the system to determine if each educator included in the initial data file is otherwise legally authorized for the assignment.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Submit documentation or additional assignment information to the commission and monitoring authority showing that the educator is otherwise legally authorized for the assignment. This information may include the use of local assignment options outlined in any statute or regulation.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Submit documentation to the commission and monitoring authority showing that a position identified in the initial data file as
vacant was miscoded and that a legally authorized educator was assigned to the position.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Information submitted to the commission and monitoring authority pursuant to paragraph (2) shall be submitted electronically through the system.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A monitoring authority shall access the system to review the initial data file and any documentation or additional information submitted by a local educational agency for which it is a monitoring authority and make a determination of potential misassignments and vacant positions within 90 days of the commission’s notification pursuant to paragraph (1).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The commission shall have the authority to make a final determination for all potential assignments and misassignments.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
After the 90-day review period
pursuant to paragraph (4), the commission shall share all educator assignment data, including all preliminary and clear credentials, intern credentials, permits, waivers, misassignments, and vacant positions for that year, with the department for the department’s teaching assignment monitoring outcomes report and other state and federal reporting requirements.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Once published, the commission shall post a link to the department’s teaching assignment monitoring outcomes reporting on its internet website, with resources for local educational agencies seeking to maintain a fully credentialed and appropriately assigned educator workforce.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Notwithstanding any other law, the commission, when identifying misassignments using the system, shall identify an educator in a teaching or services position, including an educator at a charter school, as correctly assigned only when the
educator holds the certificate or credential required by the commission for that assignment in a noncharter public school, taking into account local assignment options.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Commencing in the 2020–21 school year, a chartering authority, as provided in this section, may request technical assistance to assist in its determination of potential misassignments and vacant positions from the county office of education in the county in which the chartering authority is located.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
For a school district, the county superintendent of schools shall notify, through the office of the school district superintendent, a certificated school administrator responsible for the assignment of a certificated person to a position for which the person has no legal authorization of the misassignment, and shall advise the school administrator to correct the assignment within 30 calendar days. For a charter
school, the monitoring authority shall notify the charter school administrator responsible for the assignment of a certificated person to a position for which the person has no legal authorization of the misassignment and shall advise the charter school administrator to correct the assignment within 30 calendar days.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The system and the data reported from the system shall not be used by a local educational agency for purposes of evaluating certificated employees, certificated employee performance determinations, or employment decisions.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If an employee, including an employee who is employed by a charter school, is required by a local educational agency to accept an assignment in a teaching or services position for which the employee has no legal authorization, all of the following shall occur:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
After exhausting existing local remedies, an employee of a school district shall notify the superintendent of the school district, and an employee of a charter school shall notify the administrator of the charter school, in writing, of the illegal assignment.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If no action is taken after the notice required pursuant to subparagraph (A), an employee of a school district shall notify the county superintendent of schools, and an employee of a charter school shall notify the chartering authority, in writing, of the illegal assignment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In the case of an assignment by a school district for which the employee has filed a notice that the employee has no legal authorization, the school district or county superintendent of schools shall advise the employee about the legality of the assignment within 15 working days. In the case of an assignment by a charter school
for which the employee has filed a notice that the employee has no legal authorization, the administrator of the charter school or the chartering authority shall advise the employee about the legality of the assignment within 15 working days.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A local educational agency shall not take adverse action against an employee who files a notice of misassignment pursuant to paragraph (1).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding any other law, for purposes of a charter school authorized by the state board, the employee shall file the written notices regarding misassignment described in paragraph (1) with the commission.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
During the period of a misassignment, the certificated employee who files a written notice pursuant to subparagraph (B) of paragraph (1) shall be exempt from Section 45034.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If it is determined that a misassignment has occurred, a performance evaluation pursuant to Article 11 (commencing with Section 44660) of Chapter 3 of the certificated employee in the misassignment shall be nullified.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A certificated employee who has not attained permanent status is subject to the protections described in this subdivision and subdivision (f) even if the certificated employee does not provide notice pursuant to paragraph (1).
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
For the 2019–20 school year, the final data file generated by the system to identify misassignments and vacant positions shall be nonconsequential and shall be provided to the department, local educational agencies, and monitoring authorities by the commission for informational purposes only.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Commencing
with the 2020–21 school year, and each school year thereafter, following the 90-day review period provided for monitoring authorities pursuant to subdivision (e), the commission shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Ensure local educational agencies have access to the results of the system’s process of assignment monitoring to support local continuous improvement efforts.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Publish annual certificated educator assignment data that reflects the level of preparation and licensure of educators serving California pupils. This data shall include comprehensive information on all educator assignments, including those filled by individuals on permits or waivers, intern credentials, and preliminary or clear credentials, and those appropriately assigned and misassigned, at the schoolsite, local educational agency, county, and state levels. The commission may also publish data on educators
serving on administrative and pupil services credentials, educator preparation pathways, and educator retention, and whether certificated staff are employed in K–12 education.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Identify instances of a teacher shortage in each instance where, as of Census Day, a course or class assignment is permanently filled by an employee who is not fully credentialed or who is not appropriately assigned, as identified in clauses (i) to (vii), inclusive, below:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Individuals who are fully credentialed teachers and are serving outside their credential area based on holding a valid commission-issued permit authorizing the subject, setting, or pupil population being taught.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Individuals who are fully credentialed teachers and are serving outside of their credential area pursuant to a statute or Title
5 of the California Code Regulations that allows a local educational agency to otherwise legally assign the individual at the local level.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Individuals serving on a valid district or university intern credential that authorizes the subject, setting, or pupil population being taught.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Individuals who are fully credentialed teachers but are teaching a subject, setting, or pupil population not authorized by their credential area, excluding assignments authorized by subdivision (b) of Section 80005 of Title 5 of the California Code of Regulations.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Individuals serving on the basis of a valid permit issued by the commission that authorizes the subject, setting, or pupil population being taught.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
Individuals serving on a short-term or
variable-term waiver document issued by the commission that authorizes the subject, setting, or pupil population being taught.
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
Individuals who are identified as misassigned by the commission, other than those educators described in clause (iv).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Identify instances of a teacher shortage in each instance where, as of Census Day, a local educational agency identifies a vacant position or an unfilled position.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Support the department to do all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Make annual educator assignment, misassignment, and vacant position data generated by the system publicly available in a searchable format on the department’s internet website. Data shall be updated annually and provide comprehensive information on teaching assignment outcomes
inclusive of all educator classifications at the schoolsite, school district, and county levels.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Ensure that data for charter schools is distinguishable from data for noncharter public schools when made publicly available in a searchable format.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Maintain each year’s data for no less than five years.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Ensure that the publicly available misassignment data reported from the system shall not include any personally identifiable information, including names, social security numbers, home addresses, telephone numbers, or email addresses of individual educators.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The commission may promulgate regulations that define standards for a local educational agency, including a charter school, that consistently misassigns educators and what sanctions, if
any, to impose on that local educational agency.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before December 1, 2022, the commission shall report to the appropriate policy and fiscal committees of the Legislature on the development of the system, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The development and current status of the system.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The ability of the system to efficiently produce accurate annual data on teacher misassignments.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Statewide information regarding misassignments, delineated by credential type, assignment, and type of school.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Use of local assignment options, delineated by local assignment option and type of school.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Any recommendations to improve the system and the local assignment monitoring process required by this section.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Identification of any need for further technical assistance for local educational agencies, including chartering authorities, to improve assignment monitoring and reduce the overall rate of misassignment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Pursuant to Section 10231.5 of the Government Code, the reporting requirement described in paragraph (1) shall be inoperative on December 1, 2026.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
This section shall not relieve a local educational agency from compliance with state and federal law regarding teachers of English learners or be construed to alter the definition of “misassignment” for purposes of Section 33126 or the definition of “vacancy” for purposes of Section
35186.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
This section does not change existing rights or obligations, including, but not limited to, those specified in Sections 33126 and 33315.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A teacher employed by a local educational agency and offering a course in which pupils receive course credit or that counts towards instructional minutes, or both, shall hold the certificate, permit, or other document required by the commission for that assignment and shall be monitored.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Paragraph (1) does not authorize a local educational agency to assign a teacher of record that is not an employee of the local educational agency.
</html:p>
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<ns0:BillSection id="id_7C07E1C0-5D32-4B02-9CFB-0BFE111BA6BC">
<ns0:Num>SEC. 22.</ns0:Num>
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Section 45037 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_B3496EC2-DDBF-4077-AA1A-F5D24E62EA4D">
<ns0:Num>45037.</ns0:Num>
<ns0:LawSectionVersion id="id_DA0D7F09-EE92-4CB2-8A9D-C6BA600BF4D0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided in Section 45036, for the fiscal year in which a person renders service as a teacher in kindergarten or any of grades 1 to 12, inclusive, who does not have a valid certification document, as defined in Section 44007, the school district, county office of education, or charter school that the person is employed by shall be assessed a penalty that shall be calculated as provided in subdivision (b) and withheld from state funding otherwise due to the school district, county office of education, or charter school.
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Notwithstanding Section 46300, the attendance of the noncertificated person’s pupils during the period of service shall be included in the computation of average daily attendance.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The noncertificated person’s period of service shall not be excluded from the determination of eligibility for instruction time pursuant to Article 8 (commencing with Section 46200) of Chapter 2 of Part 26.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For each person who rendered service in the employment of the school district, county office of education, or charter school as a teacher in kindergarten or any of grades 1 to 12, inclusive, during the fiscal year, add the total number of schooldays on which the person rendered any amount of the service.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For each person who rendered service in the employment of the school district, county office of education, or charter school as a teacher in kindergarten or any of grades 1 to 12, inclusive, during the fiscal year, for a period of service during which the person did not have a valid certification document, add the number of
schooldays on which the person rendered any amount of the service without a valid certification document.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Divide the number determined in paragraph (2) by the number determined in paragraph (1) and carry the result to four decimal places.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Multiply a school district’s or charter school’s local control funding formula grant apportionment for the fiscal year, calculated pursuant to Section 42238.02, as implemented by Section 42238.03, or a county office of education’s local control funding formula alternative education grant computed pursuant to Section 2574, as apportioned pursuant to Section 2575, for the fiscal year, for the program in which the noncertificated person rendered service by the number determined in paragraph (3).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If a county office of education releases a warrant in favor of a person for
whom a period of school district service is included in the calculation set forth in paragraph (2) of subdivision (b), and the warrant is either compensation for employment as a teacher or for employment in some other capacity if the county office of education has direct knowledge or is in possession of information giving rise to a reasonable inference that the person is rendering service as a teacher, the county office of education shall be assessed a penalty. The penalty assessed to a county office of education for any fiscal year in which one or more school district teachers did not have a valid certification document shall be equal to the lesser of three amounts as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Fifty percent of all penalties assessed for that fiscal year to all school districts in the county office of education’s jurisdiction pursuant to subdivision (b).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
One-half percent of the total
expenditures for that fiscal year from unrestricted resources, as defined in the California School Accounting Manual, in the county office of education’s county school service fund, when two or fewer school districts in the county office of education’s jurisdiction are subject to penalties pursuant to subdivision (b).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
One percent of the total expenditures for that fiscal year from unrestricted resources, as defined in the California School Accounting Manual, in the county office of education’s county school service fund, when three or more school districts in the county office of education’s jurisdiction are subject to penalties pursuant to subdivision (b).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Except as provided in Section 41344.1, nothing in this section may be waived in whole or in part.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_1A0F3F03-B415-4F42-B446-1CE0106613F0">
<ns0:Num>SEC. 23.</ns0:Num>
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Section 45125.1 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_E9C73909-441F-48B9-ACAD-CDD037908CC7">
<ns0:Num>45125.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Any entity that has a contract with a local educational agency shall ensure that any employee who interacts with pupils has a valid criminal records summary as described in Section 44237. When the contracting entity performs the criminal background check, it shall immediately provide any subsequent arrest and conviction information it receives to any local educational agency that it is contracting with pursuant to the subsequent arrest service.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section does not apply to an entity providing services to a local educational agency, as described in subdivision (a), in an emergency or exceptional situation, such as when pupil health or safety is endangered or when repairs are needed to make school facilities safe and
habitable.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), an employee of any entity that has a contract with a local educational agency, and that offers work experience opportunities for pupils, including, but not limited to, opportunities pursuant to Section 51760, 52336, 52372, 52410, or 52460, Article 1 (commencing with Section 52300), Article 5 (commencing with Section 52381), or Article 7 (commencing with Section 52450) of Chapter 9 of Part 28 of Division 4, Chapter 16.5 (commencing with Section 53070) of Part 28 of Division 4, Article 5 (commencing with Section 54690) of Chapter 9 of Part 29 of Division 4, or Part 54.5 (commencing with Section 88820) of Division 7 of Title 3, or workplace placements as part of a pupil’s individualized education program, including, but not limited to, the services described in Article 3 (commencing with Section 56470) of Chapter 4.5 of Part 30 of Division 4, is not required to have a valid criminal records summary
pursuant to subdivision (a) if all of the following requirements are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
At least one adult employee in the workplace during the pupil’s work hours, who has direct contact with the pupil and has been designated by the employer as the employee of record who is responsible for the safety of the pupil, has a valid criminal records summary as described in Section 44237.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A staff representative of the local educational agency makes visitations as specified in a pupil’s individualized education program, or, if unspecified, at least once every three weeks to consult with the pupil’s workplace liaison, observe the pupil at the workplace, and check in with the pupil to ensure the pupil’s health, safety, and welfare, including by addressing any concerns the pupil has raised.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The parent or guardian of the pupil has
signed a consent form regarding the pupil’s work placement, attesting that the parent or guardian understands the duties assigned to the pupil and the nature of the workplace environment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If a pupil participates in services provided by a contractor as part of an independent study program and the pupil is under the immediate supervision and control of the pupil’s parent or guardian during the provision of those services, the local educational agency shall do either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Verify completion of a valid criminal records summary for all employees of the contractor who interact with the pupil.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Ensure that the parent or guardian of the pupil has signed a consent form before the pupil’s interaction with a person employed by the contractor, attesting that the parent or guardian understands that the
person employed by the contractor has not completed a valid criminal records summary as described in Section 44237.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
On a case-by-case basis, a local educational agency may require an entity with whom it has a contract to comply with the requirements of this section for employees in addition to those described in subdivision (a). The entity shall prepare and submit those employee’s fingerprints to the Department of Justice, as described in subdivision (a).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Department of Justice shall ascertain whether the individual whose fingerprints were submitted to it pursuant to subdivision (a), (c), or (h) has been arrested or convicted of any crime insofar as that fact can be ascertained from information available to the Department of Justice. Upon implementation of an electronic fingerprinting system with terminals located statewide and managed by the
Department of Justice, the Department of Justice shall ascertain the information required pursuant to this section within three working days. When the Department of Justice ascertains that an individual whose fingerprints were submitted to it pursuant to subdivision (a), (c), or (h) has a pending criminal proceeding for a felony as defined in Section 45122.1 or has been convicted of a felony as defined in Section 45122.1, the Department of Justice shall notify the employer designated by the individual of that fact. The notification shall be delivered by telephone or email to the employer.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Department of Justice, at its discretion, may notify the local educational agencies in instances when the employee is defined as having a pending criminal proceeding described in Section 45122.1 or has been convicted of a felony as defined in Section 45122.1.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Department of Justice
shall forward one copy of the fingerprints to the Federal Bureau of Investigation to verify any record of previous arrests or convictions of the applicant. The Department of Justice shall review the criminal record summary it obtains from the Federal Bureau of Investigation and shall notify the employer only as to whether or not an applicant has any convictions or arrests pending adjudication for offenses that, if committed in California, would have been punishable as a violent or serious felony. The Department of Justice shall not provide any specific offense information received from the Federal Bureau of Investigation. The Department of Justice shall provide written notification to the contract employer only concerning whether an applicant for employment has any conviction or arrest pending final adjudication for any of those crimes, as specified in Section 45122.1, but shall not provide any information identifying any offense for which an existing employee was convicted or has an arrest pending final
adjudication.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An entity having a contract as described in subdivision (a) or that is required to comply with this section for other employees pursuant to subdivision (c) shall not permit an employee to interact with pupils until the Department of Justice has ascertained that the employee has not been convicted of a felony as defined in Section 45122.1.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The prohibition in paragraph (1) does not apply to an employee solely on the basis that the employee has been convicted of a felony if the employee has obtained a certificate of rehabilitation and pardon pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The prohibition in paragraph (1) does not apply to an employee solely on the basis that the employee has been convicted of a serious
felony that is not also a violent felony if that employee can prove to the sentencing court of the offense in question, by clear and convincing evidence, that the employee has been rehabilitated for the purposes of schoolsite employment for at least one year. If the offense in question occurred outside this state, then the person may seek a finding of rehabilitation from the court in the local educational agency in which the employee is a resident.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
An entity having a contract as described in subdivision (a) or that is required to comply with this section for other employees pursuant to subdivision (c) shall certify in writing to the local educational agency that neither the employer nor any of its employees who are required by this section to submit or have their fingerprints submitted to the Department of Justice and who may interact with pupils have been convicted of a felony as defined in Section 45122.1.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Where reasonable access to the statewide electronic fingerprinting network is available, the Department of Justice may mandate electronic submission of the fingerprint cards and other information required by this section.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, an individual operating as a sole proprietor of an entity that has a contract with a local educational agency, as described in subdivision (a), shall be considered an employee of that entity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To protect the safety of any pupil that may interact with an employee of an entity that is a sole proprietorship and has a contract as described in subdivision (a) or that is required to comply with this section for other employees pursuant to subdivision (c), a local educational agency shall prepare and submit the employee’s fingerprints to the
Department of Justice, as described in subdivision (a).
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, “local educational agency” means a school district, county office of education, or charter school.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_C88B659D-0BD6-4424-B70E-648B062340A6">
<ns0:Num>SEC. 24.</ns0:Num>
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Section 46149 is added to the
<ns0:DocName>Education Code</ns0:DocName>
,
<ns0:Positioning>immediately following Section 46148</ns0:Positioning>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_3410DD26-B1AA-4BEE-A93B-7D97DC237848">
<ns0:Num>46149.</ns0:Num>
<ns0:LawSectionVersion id="id_536C37A7-8DE4-4D2F-A1AF-C55124A56285">
<ns0:Content>
<html:p>Notwithstanding any other law, a school district, county office of education, or charter school that offers grades 10 and 12 shall also offer and enroll pupils in grade 11.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D2261C84-785D-4A4D-B75A-A2AFD1A0BB2C">
<ns0:Num>SEC. 25.</ns0:Num>
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Section 46211 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_79038469-AA2E-4F0D-BD07-5B84B1C35331">
<ns0:Num>46211.</ns0:Num>
<ns0:LawSectionVersion id="id_BFB56150-F0EB-4821-BD3D-75025068D1FF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Beginning July 1, 2025, to address the educational and fiscal impacts of pupil absences, a local educational agency may implement attendance recovery programs for pupils to make up lost instructional time and offset absences, including reducing chronic absenteeism.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An attendance recovery program implemented pursuant to this article may be operated before or after school, on weekends, or during intersessional periods. Local educational agencies that operate attendance recovery programs shall offer access to attendance recovery programs throughout the school year, including, at least once during each term, such as each trimester or quarter. Average daily attendance generated through an attendance recovery program shall be credited to
the school year in which the attendance recovery program is operated and the local educational agency in which the pupil is enrolled.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Instructional time included for the purposes of generating average daily attendance pursuant to this section shall not be included within the instructional time used to meet the annual day and minute requirements pursuant to Sections 46207, 46208, 47612, and 47612.5 of this code, and Section 11960 of Title 5 of the California Code of Regulations, as applicable.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Participation in an attendance recovery program shall not be compulsory or punitive for pupils. Pupils concurrently participating in both an attendance recovery program and an expanded learning opportunities program pursuant to Section 46120 shall retain their ability to participate in the entirety of an expanded learning opportunities program’s offerings pursuant to Section 46120 for
the duration of the school year.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For participation in an attendance recovery program, a pupil shall not be credited with more than the lesser of the equivalent of 10 days of attendance in a school year, or the number of absences the pupil accrued in that school year. For purposes of meeting all of the requirements of this section, an individual pupil shall not be credited with more than one day of attendance for any calendar day of participation in an attendance recovery program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A pupil shall not be credited with more than five days of attendance per school week for school districts or county offices of education, or more than one day of attendance in a calendar day when school is actually taught pursuant to Section 47612 of this code and Section 11960 of Title 5 of the California Code of Regulations for charter schools.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Attendance accrued through participation in an attendance recovery program shall be tracked and reported to the department by local educational agencies separately from average daily attendance generated during the schoolday in classroom-based programs.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
When reporting attendance accrued through participation in an attendance recovery program to the department pursuant to Sections 60900 and 60901, consistent with paragraph (3), the attendance shall be reported separately from those days of attendance not accrued through participation in an attendance recovery program. The department shall also separately report days accrued through attendance recovery programs on its internet website.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding Sections 46112, 46113, 46114, 46117, 46141, 46142, 46146, 46146.5, 46148, 46170,
46180, 48645.3, and 48663, pupils participating in an attendance recovery program operating pursuant to this section may generate average daily attendance. Average daily attendance generated through a pupil’s participation in an attendance recovery program may be accumulated in increments of one hour, as documented by the teacher of each attendance recovery classroom described in subdivision (g) and maintained by the local educational agency. A pupil shall only be credited with not less than a full day of attendance in an attendance recovery program, and only once the amount of time that a pupil participates in an attendance recovery program meets the applicable minimum daily minutes requirements pursuant to Article 2 (commencing with Section 46110) and Article 3 (commencing with Section 46140), including the minimum schoolday for a pupil with an individualized education program pursuant to Section 46307, up to the limits established in subdivision (d).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For the purposes of computing average daily attendance for purposes of this article, the minimum daily instructional minute requirements pursuant to Article 2 (commencing with Section 46110) and Article 3 (commencing with Section 46140) apply to all local educational agencies, including charter schools, except for county community schools operated pursuant to Chapter 6.5 (commencing with Section 1980) of Part 2 of Division 1 of Title 1, continuation high schools operated pursuant to Chapter 3 (commencing with Section 48400) of Part 27, juvenile court schools operated pursuant to Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27, and community day schools operated pursuant to Article 3 (commencing with Section 48660) of Chapter 4 of Part 27.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Charter schools shall comply with the minimum daily instructional minute requirements for the applicable grade span pursuant to Sections
46112, 46113, 46114, 46117, 46141, and 46142.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
<html:span class="EnSpace"/>
County community schools, continuation high schools, juvenile court schools, and community day schools shall comply with schoolday and instructional minute requirements for the applicable setting pursuant to Sections 1983, 46170, 48653.3, and 48663.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
As a condition of generating average daily attendance, an attendance recovery program shall be composed of pupils engaged in educational activities and content aligned to grade level standards that are substantially equivalent to the pupils’ regular instructional program, which may include one-on-one or small group tutoring, and shall be under the immediate supervision and control of a certificated teacher who is also an employee of the local educational agency and who possesses a valid certification document, registered as required by law, pursuant to
Sections 46300 and 47612.5. An attendance recovery program shall not exceed a pupil-to-certificated teacher ratio of 10 to 1 for transitional kindergarten and kindergarten or 20 to 1 for grades 1 to 12, inclusive. A local educational agency shall maintain documentation demonstrating how the attendance recovery program met the applicable ratios required pursuant to this subdivision.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An attendance recovery program shall be provided only as a limited-term option for a classroom-based, regular educational program for pupils in transitional kindergarten, kindergarten, and grades 1 to 12, inclusive. Pupils otherwise enrolled in a flex-based program, including pupils served by a flex-based charter school pursuant to Section 47612.5, shall not participate in an attendance recovery program and a local educational agency shall not generate apportionment through an attendance recovery program for pupils enrolled in a
flex-based program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For school districts, a pupil is enrolled in a flex-based program for purposes of this subdivision if the pupil meets the minimum day requirements for independent study and is continually enrolled in independent study for more than 15 schooldays in a school year.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For charter schools, a pupil is enrolled in a flex-based program for purposes of this subdivision if the pupil is continually enrolled in independent study for more than 15 schooldays on any of the days on which school is taught for the purpose of meeting the requirement to offer 175 instructional days, as described in Section 11960 of Title 5 of the California Code of Regulations.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school that serves pupils pursuant to Section 47612.1 shall not participate in an attendance recovery program
operated pursuant to this section.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
On or before June 30, 2025, the department shall develop and maintain on its internet website guidance to support local educational agencies in creating and implementing high-quality attendance recovery programs.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In consultation with the executive director of the state board, the department shall research local pupil information systems to identify opportunities for local educational agencies to collect and report to the state more nuanced data about the reasons for pupil absences.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
At a minimum, the department shall investigate opportunities to use and improve existing pupil information systems to more accurately track pupil absences and their reasons, including, but not limited to, those absences caused by each of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
School closures due to emergencies pursuant to Section 41422.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Schooldays of materially decreased attendance due to emergencies pursuant to Section 46392.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Pupil absences due to emergencies pursuant to Section 46392, or any other personal or large-scale emergencies.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department shall use the research collected pursuant to this subdivision to develop recommendations to amend existing laws, regulations, guidance, and processes to collect, aggregate, and disaggregate absenteeism data from local educational agencies to provide additional clarity on the causes of pupil absenteeism across the state, including by pupil subgroup. These recommendations shall include steps to calculate an adjusted chronic absenteeism rate that does not include
absences due to emergencies pursuant to Section 46392.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
On or before January 1, 2026, the department shall submit a report of its findings and recommendations to the chairs of the budget committees of both houses of the Legislature, the Superintendent, the executive director of the state board, and the Director of Finance.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Commencing with the 2025–26 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall incorporate verification of compliance with the requirements specified in subdivisions (d) to (g), inclusive, including loss of apportionment for an attendance recovery program pursuant to this article for local educational agencies found to be noncompliant.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
For purposes of this article, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Local educational agency” means a school district, county office of education, or charter school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“School year” has the same meaning as described in Section 37200.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_E6EC83F8-D177-40BE-8981-3659A1CB2ED9">
<ns0:Num>SEC. 26.</ns0:Num>
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Section 47600.1 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_EECCB905-6866-4CF3-887C-A8390FBA1016">
<ns0:Num>47600.1.</ns0:Num>
<ns0:LawSectionVersion id="id_0932CA57-0345-4543-96C8-725514840720">
<ns0:Content>
<html:p>For purposes of this part, “nonclassroom instruction” or “nonclassroom-based instruction” means the same as “flex-based instruction” as defined in paragraph (2) of subdivision (e) of Section 47612.5, as it read on July 1, 2025.</html:p>
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<ns0:BillSection id="id_F2F540CD-1D9A-451C-9239-8FBBE45A3478">
<ns0:Num>SEC. 27.</ns0:Num>
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Section 47604.1 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_10034D32-99F8-461C-B0D5-40DD86985CB9">
<ns0:Num>47604.1.</ns0:Num>
<ns0:LawSectionVersion id="id_92E6C087-53FC-42D2-9665-3FE26AE48872">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, an “entity managing a charter school” means a nonprofit public benefit corporation that operates a charter school consistent with Section 47604. An entity that is not authorized to operate a charter school pursuant to Section 47604 is not an “entity managing a charter school” solely because it contracts with a charter school to provide to that charter school goods or task-related services that are performed at the direction of the governing body of the charter school and for which the governing body retains ultimate decisionmaking authority.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A charter school and an entity managing a charter school shall be subject to all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Ralph M. Brown
Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), except that a charter school operated by an entity pursuant to Chapter 5 (commencing with Section 47620) shall be subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) regardless of the authorizing entity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The chartering authority of a charter school shall be the custodian of records with regard to any request for information submitted to the charter school if either of the following applies:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The charter school is located on a
federally recognized California Indian reservation or rancheria.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
The charter school is operated by a nonprofit public benefit corporation that was formed on or before May 31, 2002, and is currently operated by a federally recognized California Indian tribe.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
This subparagraph does not allow a chartering authority to delay or obstruct access to records otherwise required under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of Section 87300 of the Government Code, a charter school and an entity managing a charter school shall be considered an agency and is the most decentralized level for purposes of adopting a conflict-of-interest code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The governing body of one charter school shall meet within the physical boundaries of the county in which the charter school is located.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A two-way teleconference location shall be established at each schoolsite.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The governing body of one flex-based charter school that does not have a facility or operates one or more resource centers shall meet within the physical boundaries of the county in which the greatest number of pupils who are
enrolled in that charter school reside.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A two-way teleconference location shall be established at each resource center.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For a governing body of an entity managing one or more charter schools located within the same county, the governing body of the entity managing a charter school shall meet within the physical boundaries of the county in which that charter school or schools are located.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A two-way teleconference location shall be established at each schoolsite and each resource center.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For a governing body of an entity that manages two or more charter schools that are not located in the same county, the governing body of the entity managing the charter schools shall meet within the
physical boundaries of the county in which the greatest number of pupils enrolled in those charter schools managed by that entity reside.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A two-way teleconference location shall be established at each schoolsite and each resource center.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The governing body of the entity managing the charter schools shall audio record, video record, or both, all the governing board meetings and post the recordings on each charter school’s internet website.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
This subdivision does not limit the authority of the governing body of a charter school and an entity managing a charter school to meet outside the boundaries described in this subdivision if authorized by Section 54954 of the Government Code, and the meeting place complies with Section 54961 of the Government Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notwithstanding Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code, an employee of a charter school shall not be disqualified from serving as a member of the governing body of the charter school because of that employee’s employment status. A member of the governing body of a charter school who is also an employee of the charter school shall abstain from voting on, or influencing or attempting to influence another member of the governing body regarding, all matters uniquely affecting that member’s employment.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
To the extent a governing body of a charter school or an entity managing a charter school engages in activities that are unrelated to a charter school, Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code, the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the
Government Code), the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code) shall not apply with regard to those unrelated activities unless otherwise required by law.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A meeting of the governing body of a charter school to discuss items related to the operation of the charter school shall not include the discussion of any item regarding an activity of the governing body that is unrelated to the operation of the charter school.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The requirements of this section shall not be waived by the state board pursuant to Section 33050 or any other
law.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_0869624C-01CD-48B1-A38D-501DC7FB32BF">
<ns0:Num>SEC. 28.</ns0:Num>
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Section 47604.3 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_CDDE6095-649D-44B9-9B10-7FC40A9F8690">
<ns0:Num>47604.3.</ns0:Num>
<ns0:LawSectionVersion id="id_B8A30659-FF3A-46D8-AFC2-4BC6A8887B68">
<ns0:Content>
<html:p>A charter school and an entity managing a charter school shall promptly respond to all reasonable inquiries, including, but not limited to, inquiries regarding its respective financial records and contracts, from its chartering authority, the county office of education that has jurisdiction over the charter school’s chartering authority, or from the Superintendent and shall consult with the chartering authority, the county office of education, or the Superintendent regarding any inquiries.</html:p>
</ns0:Content>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_0463219B-1B71-44F4-9902-9BD678681888">
<ns0:Num>SEC. 29.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'26.8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'47604.32.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 47604.32 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_018EA8C1-7B1A-4246-BC5B-4E275B845E15">
<ns0:Num>47604.32.</ns0:Num>
<ns0:LawSectionVersion id="id_6DBE4AAC-B401-448A-AC7E-8B4DFA0177AC">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Each chartering authority, in addition to any other duties imposed by this part, shall do all of the following with respect to each charter school under its authority:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Identify at least one staff member as a contact person for the charter school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Visit each charter school at least annually.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Ensure that each charter school under its authority complies with all reports required of charter schools by law, including the local control and accountability plan and annual update to the local control and accountability plan required pursuant to Section 47606.5.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Monitor the fiscal condition, including enrollment and attendance data, and a review of a sample of credit and debit card transactions of each charter school under its authority. The chartering authority shall provide the governing body of the charter school with feedback on any issues of concern identified in the review and an opportunity to respond. If in the course of the review, the chartering authority has reasonable suspicion that fraud, misappropriations of public funds, embezzlement, or other financial crimes may be occurring, the chartering authority shall notify the department and the county office of education.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Provide timely notification to the department if any of the following circumstances occurs or will occur with regard to a charter school for which it is the chartering authority:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A renewal of the charter is granted or denied.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The charter is revoked.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The charter school will cease operation for any reason.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Provide notification to the charter school governing board within 60 days of any material concern arising out of the chartering authority’s ongoing oversight and monitoring activities.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The cost of performing the duties required by this section shall be funded with supervisorial oversight fees collected pursuant to Section 47613.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_E7FF58FA-BFCC-4073-8653-2D0BBAF4CD85">
<ns0:Num>SEC. 30.</ns0:Num>
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Section 47604.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_13559147-00BA-47A6-94A6-F5B832474B73">
<ns0:Num>47604.5.</ns0:Num>
<ns0:LawSectionVersion id="id_6E8B1E91-E726-420A-91D7-57B58677B47B">
<ns0:Content>
<html:p>The state board, or the state board’s designee, shall promptly investigate allegations of false claims or misappropriation of public funds by charter schools if there is probable cause to believe that those crimes have occurred. The state board may, based upon and in concurrence with the recommendation of the Superintendent, take appropriate action, including, but not limited to, revocation of the charter school’s charter, when the state board finds any of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Gross financial mismanagement that jeopardizes the financial stability of the charter school.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
False claims by the charter school or illegal or substantially improper use of charter school funds for the personal benefit of any officer, director, or
fiduciary of the charter school.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Substantial and sustained departure from measurably successful practices such that continued departure would jeopardize the educational development of the charter school’s pupils.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Failure to improve pupil outcomes across multiple state and school priorities identified in the charter pursuant to subparagraph (A) of paragraph (5) of subdivision (c) of Section 47605 or subparagraph (A) of paragraph (5) of subdivision (b) of Section 47605.6.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The requirements of this section shall not be waived by the state board pursuant to Section 33050 or any other law.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_A659025F-6174-48FF-A40C-A2A9FE5039AA">
<ns0:Num>SEC. 31.</ns0:Num>
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Section 47604.6 is added to the
<ns0:DocName>Education Code</ns0:DocName>
,
<ns0:Positioning>immediately following Section 47604.5</ns0:Positioning>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_A4628806-A117-4F2E-96A7-D2A576D7BFA2">
<ns0:Num>47604.6.</ns0:Num>
<ns0:LawSectionVersion id="id_86D6442C-5501-4189-81B2-FD8EB7ED29A3">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before March 1, 2026, the Legislative Analyst's Office shall provide the Legislature, consistent with Section 9795 of the Government Code, with an estimate of the one-time and ongoing costs for charter schools related to the new requirements established by Senate Bill 414 of the 2025–26 Regular Session, including, but not limited to, new audit requirements, the inclusion of the funding determination analysis in the annual audit, responding to new accounting and oversight requirements, approval requirements by the governing body of a charter school for contracts over one hundred thousand dollars ($100,000), and the increased costs to the independent audit contract for the auditor to meet the new requirements. Cost estimates shall be provided on a per-pupil or per-school basis as appropriate.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding Section 10231.5 of the Government Code, commencing with the 2027–28 fiscal year, and every third fiscal year thereafter, the Legislative Analyst’s Office shall identify new mandates imposed on local educational agencies, including charter schools, estimate the costs of compliance, and recommend any increase to the mandate block grants to the Legislature, consistent with Section 9795 of the Government Code.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_8CEB89EB-369B-454E-A11F-75B231CB41AE">
<ns0:Num>SEC. 32.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'26.8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'47605.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 47605 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_A663D784-149B-4892-A178-B436679B2AD4">
<ns0:Num>47605.</ns0:Num>
<ns0:LawSectionVersion id="id_0A42BF3C-790B-4DCA-B182-0C1978A22C6B">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as set forth in paragraph (2), a petition for the establishment of a charter school within a school district may be circulated by one or more persons seeking to establish the charter school. A petition for the establishment of a charter school shall identify a single charter school that will operate within the geographic boundaries of that school district. A charter school may propose to operate at multiple sites within the school district if each location is identified in the charter school petition. The petition may be submitted to the governing board of the school district for review after either of the following conditions is met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The petition is signed by a number of parents or legal guardians of pupils that is
equivalent to at least one-half of the number of pupils that the charter school estimates will enroll in the charter school for its first year of operation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The petition is signed by a number of teachers that is equivalent to at least one-half of the number of teachers that the charter school estimates will be employed at the charter school during its first year of operation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A petition that proposes to convert an existing public school to a charter school that would not be eligible for a loan pursuant to subdivision (c) of Section 41365 may be circulated by one or more persons seeking to establish the charter school. The petition may be submitted to the governing board of the school district for review after the petition is signed by not less than 50 percent of the permanent status teachers currently employed at the public school to be converted.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A petition shall include a prominent statement that a signature on the petition means that the parent or legal guardian is meaningfully interested in having their child or ward attend the charter school, or in the case of a teacher’s signature, means that the teacher is meaningfully interested in teaching at the charter school. The proposed charter shall be attached to the petition.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
After receiving approval of its petition, a charter school that proposes to expand operations to one or more additional sites or grade levels shall request a material revision to its charter and shall notify the chartering authority of those additional locations or grade levels. The chartering authority shall consider whether to approve those additional locations or grade levels at an open, public meeting. If the additional locations or grade levels are approved pursuant to the standards and
criteria described in subdivision (c), they shall be a material revision to the charter school’s charter.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A charter school that established one site outside the boundaries of the school district, but within the county in which that school district is located before January 1, 2020, may continue to operate that site until the charter school submits a request for the renewal of its charter petition. To continue operating the site, the charter school shall do either of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
First, before submitting the request for the renewal of the charter petition, obtain approval in writing from the school district where the site is operating.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Submit a request for the renewal of the charter petition pursuant to Section 47607 to the school district in which the charter school is
located.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a Presidential declaration of a major disaster or emergency is issued in accordance with the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. Sec. 5121 et seq.) for an area in which a charter schoolsite is located and operating, the charter school, for not more than five years, may relocate that site outside the area subject to the Presidential declaration if the charter school first obtains the written approval of the school district where the site is being relocated to.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), if a charter school was relocated from December 31, 2016, to December 31, 2019, inclusive, due to a Presidential declaration of a major disaster or emergency in accordance with the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. Sec. 5121 et seq.), that charter school shall be allowed to
return to its original campus location in perpetuity.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
A charter school in operation and providing educational services to pupils before October 1, 2019, located on a federally recognized California Indian reservation or rancheria or operated by a federally recognized California Indian tribe shall be exempt from the geographic restrictions of paragraph (1) and subparagraph (A) of this paragraph and the geographic restrictions of subdivision (a) of Section 47605.1.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The exemption to the geographic restrictions of subdivision (a) of Section 47605.1 in clause (i) does not apply to flex-based charter schools operating pursuant to Section 47612.5.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The department shall regard as a continuing charter school for all purposes a charter school that was granted approval of its petition, that
was providing educational services to pupils before October 1, 2019, and is authorized by a different chartering authority due to changes to this paragraph that took effect January 1, 2020. This paragraph shall be implemented only to the extent it does not conflict with federal law. In order to prevent any potential conflict with federal law, this paragraph does not apply to covered programs as identified in Section 8101(11) of the federal Elementary and Secondary Education Act of 1965 (20 U.S.C. Sec. 7801) to the extent the affected charter school is the restructured portion of a divided charter school pursuant to Section 47654.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Commencing January 1, 2003, a petition to establish a charter school shall not be approved to serve pupils in a grade level that is not served by the school district of the governing board considering the petition, unless the petition proposes to serve pupils in all of the grade levels served by that school
district.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
No later than 60 days after receiving a petition, in accordance with subdivision (a), the governing board of the school district shall hold a public hearing on the provisions of the charter, at which time the governing board of the school district shall consider the level of support for the petition by teachers employed by the school district, other employees of the school district, and parents. Following review of the petition and the public hearing, the governing board of the school district shall either grant or deny the charter within 90 days of receipt of the petition, provided, however, that the date may be extended by an additional 30 days if both parties agree to the extension. A petition is deemed received by the governing board of the school district for purposes of commencing the timelines described in this subdivision on the day the petitioner submits a petition to the district office, along with a signed certification
that the petitioner deems the petition to be complete. The governing board of the school district shall publish all staff recommendations, including the recommended findings and, if applicable, the certification from the county superintendent of schools prepared pursuant to paragraph (8) of subdivision (c), regarding the petition at least 15 days before the public hearing at which the governing board of the school district will either grant or deny the charter. At the public hearing at which the governing board of the school district will either grant or deny the charter, petitioners shall have equivalent time and procedures to present evidence and testimony to respond to the staff recommendations and findings.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In reviewing petitions for the establishment of charter schools pursuant to this section, the chartering authority shall be guided by the intent of the Legislature that charter schools are and should become an integral part of the
California educational system and that the establishment of charter schools should be encouraged. The governing board of the school district shall grant a charter for the operation of a school under this part if it is satisfied that granting the charter is consistent with sound educational practice and with the interests of the community in which the school is proposing to locate. The governing board of the school district shall consider the academic needs of the pupils the school proposes to serve. The governing board of the school district shall not deny a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, setting forth specific facts to support one or more of the following findings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The charter school presents an unsound educational program for the pupils to be enrolled in the charter school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The petition does not contain the number of signatures required by subdivision (a).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The petition does not contain an affirmation of each of the conditions described in subdivision (e).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The petition does not contain reasonably comprehensive descriptions of all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The educational program of the charter school, designed, among other things, to identify those whom the charter school is attempting to educate, what it means to be an “educated person” in the 21st century, and how learning best occurs. The goals identified in that program shall include the objective of enabling
pupils to become self-motivated, competent, and lifelong learners.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The annual goals for the charter school for all pupils and for each subgroup of pupils identified pursuant to Section 52052, to be achieved in the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, and specific annual actions to achieve those goals. A charter petition may identify additional school priorities, the goals for the school priorities, and the specific annual actions to achieve those goals.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
If the proposed charter school will serve high school pupils, the manner in which the charter school will inform parents about the transferability of courses to other public high schools and the eligibility of courses to meet college entrance requirements. Courses offered by the charter school that are accredited by the Western Association of Schools
and Colleges may be considered transferable and courses approved by the University of California or the California State University as creditable under the “A to G” admissions criteria may be considered to meet college entrance requirements.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The measurable pupil outcomes identified for use by the charter school. “Pupil outcomes,” for purposes of this part, means the extent to which all pupils of the charter school demonstrate that they have attained the skills, knowledge, and attitudes specified as goals in the charter school’s educational program. Pupil outcomes shall include outcomes that address increases in pupil academic achievement both schoolwide and for all pupil subgroups served by the charter school, as that term is defined in subdivision (a) of Section 52052. The pupil outcomes shall align with the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served by the charter school.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The method by which pupil progress in meeting those pupil outcomes is to be measured. To the extent practicable, the method for measuring pupil outcomes for state priorities shall be consistent with the way information is reported on a school accountability report card.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The governance structure of the charter school, including, but not limited to, the process to be followed by the charter school to ensure parental involvement.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The qualifications to be met by individuals to be employed by the charter school.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The procedures that the charter school will follow to ensure the health and safety of pupils and staff. These procedures shall require all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
That each
employee of the charter school furnish the charter school with a criminal record summary as described in Section 44237.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For all schools, the development of a school safety plan, which shall include the safety topics listed in subparagraphs (A) to (M), inclusive, of paragraph (2) of subdivision (a) of Section 32282. For schools serving pupils in any of grades 7 to 12, inclusive, the development of a school safety plan shall also include the safety topic listed in subparagraph (N) of paragraph (2) of subdivision (a) of Section 32282.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
That the school safety plan be reviewed and updated by March 1 of every year by the charter school.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
The means by which the charter school will achieve a balance of racial and ethnic pupils, special education pupils, and English learner pupils, including redesignated fluent
English proficient pupils, as defined by the evaluation rubrics in Section 52064.5, that is reflective of the general population residing within the territorial jurisdiction of the school district to which the charter petition is submitted. Upon renewal, for a charter school not deemed to be a local educational agency for purposes of special education pursuant to Section 47641, the chartering authority may consider the effect of school placements made by the chartering authority in providing a free and appropriate public education as required by the federal Individuals with Disabilities Education Act (Public Law 101-476), on the balance of pupils with disabilities at the charter school.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Admission policies and procedures, consistent with subdivision (e).
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The procedures by which pupils can be suspended or expelled from the charter school for disciplinary reasons or
otherwise involuntarily removed from the charter school for any reason. These procedures, at a minimum, shall include an explanation of how the charter school will comply with federal and state constitutional procedural and substantive due process requirements that are consistent with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For suspensions of fewer than 10 days, provide oral or written notice of the charges against the pupil and, if the pupil denies the charges, an explanation of the evidence that supports the charges and an opportunity for the pupil to present the pupil’s side of the story.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For suspensions of 10 days or more and all other expulsions for disciplinary reasons, both of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Provide timely, written notice of the charges against the pupil and an explanation of the pupil’s basic rights.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Provide a hearing adjudicated by a neutral officer within a reasonable number of days at which the pupil has a fair opportunity to present testimony, evidence, and witnesses and confront and cross-examine adverse witnesses, and at which the pupil has the right to bring legal counsel or an advocate.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Contain a clear statement that no pupil shall be involuntarily removed by the charter school for any reason unless the parent or guardian of the pupil has been provided written notice of intent to remove the pupil no less than five schooldays before the effective date of the action. The written notice shall be in the native language of the pupil or the pupil’s parent or guardian, or, if the pupil is a homeless child or youth, or a foster child or youth, in the native language of the homeless or foster child’s educational rights holder. In the case of a foster child or youth, the
written notice shall also be provided to the foster child’s attorney and county social worker. If the pupil is an Indian child, as defined in Section 224.1 of the Welfare and Institutions Code, the written notice shall also be provided to the Indian child’s tribal social worker and, if applicable, county social worker. The written notice shall inform the pupil, the pupil’s parent or guardian, the homeless child’s educational rights holder, the foster child’s educational rights holder, attorney, and county social worker, or the Indian child’s tribal social worker and, if applicable, county social worker of the right to initiate the procedures specified in clause (ii) before the effective date of the action. If the pupil’s parent or guardian, the homeless child’s educational rights holder, the foster child’s educational rights holder, attorney, or county social worker, or the Indian child’s tribal social worker or, if applicable, county social worker initiates the procedures specified in clause (ii), the pupil
shall remain enrolled and shall not be removed until the charter school issues a final decision. For purposes of this clause, “involuntarily removed” includes disenrolled, dismissed, transferred, or terminated, but does not include suspensions specified in clauses (i) and (ii).
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
A foster child’s educational rights holder, attorney, and county social worker and an Indian child’s tribal social worker and, if applicable, county social worker shall have the same rights a parent or guardian of a child has to receive a suspension notice, expulsion notice, manifestation determination notice, involuntary transfer notice, and other documents and related information.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
The manner by which staff members of the charter schools will be covered by the State Teachers’ Retirement System, the Public Employees’ Retirement System, or federal social security.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
The public school attendance alternatives for pupils residing within the school district who choose not to attend charter schools.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
The rights of an employee of the school district upon leaving the employment of the school district to work in a charter school, and of any rights of return to the school district after employment at a charter school.
</html:p>
<html:p>
(M)
<html:span class="EnSpace"/>
The procedures to be followed by the charter school and the chartering authority to resolve disputes relating to provisions of the charter.
</html:p>
<html:p>
(N)
<html:span class="EnSpace"/>
The procedures to be used if the charter school closes. The procedures shall ensure a final audit of the charter school to determine the disposition of all assets and liabilities of the charter school, including plans for disposing of any net assets and for the
maintenance and transfer of pupil records.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The petition does not contain a declaration of whether or not the charter school shall be deemed the exclusive public employer of the employees of the charter school for purposes of Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The charter school is demonstrably unlikely to serve the interests of the entire community in which the school is proposing to locate. Analysis of this finding shall include consideration of the fiscal impact of the proposed charter school. A written factual finding under this paragraph shall detail specific facts and circumstances that analyze and consider the following factors:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The extent to which the proposed charter school would substantially undermine existing services, academic
offerings, or programmatic offerings.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Whether the proposed charter school would duplicate a program currently offered within the school district and the existing program has sufficient capacity for the pupils proposed to be served within reasonable proximity to where the charter school intends to locate.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The school district is not positioned to absorb the fiscal impact of the proposed charter school. A school district satisfies this paragraph if it has a qualified interim certification pursuant to Section 42131 and the county superintendent of schools, in consultation with the County Office Fiscal Crisis and Management Assistance Team, certifies that approving the charter school would result in the school district having a negative interim certification pursuant to Section 42131, has a negative interim certification pursuant to Section 42131, or is under state
receivership. Charter schools proposed in a school district satisfying one of these conditions shall be subject to a rebuttable presumption of denial.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Charter schools shall meet all statewide standards and conduct the pupil assessments required pursuant to Section 60605 and any other statewide standards authorized in statute or pupil assessments applicable to pupils in noncharter public schools.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Charter schools shall, on a regular basis, consult with their parents, legal guardians, and teachers regarding the charter school’s educational programs.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In addition to any other requirement imposed under this part, a charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations, shall not charge tuition,
and shall not discriminate against a pupil on the basis of the characteristics listed in Section 220. Except as provided in paragraph (2), admission to a charter school shall not be determined according to the place of residence of the pupil, or of that pupil’s parent or legal guardian, within this state, except that an existing public school converting partially or entirely to a charter school under this part shall adopt and maintain a policy giving admission preference to pupils who reside within the former attendance area of that public school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A charter school shall admit all pupils who wish to attend the charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the number of pupils who wish to attend the charter school exceeds the charter school’s capacity, attendance, except for existing pupils of the charter school, shall be determined by a public random drawing. Preference
shall be extended to pupils currently attending the charter school and pupils who reside in the school district except as provided for in Section 47614.5. Preferences, including, but not limited to, siblings of pupils admitted or attending the charter school and children of the charter school’s teachers, staff, and founders identified in the initial charter, may also be permitted by the chartering authority on an individual charter school basis. Priority order for any preference shall be determined in the charter petition in accordance with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Each type of preference shall be approved by the chartering authority at a public hearing.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Preferences shall be consistent with federal law, the California Constitution, and Section 200.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Preferences shall not result in limiting enrollment
access for pupils with disabilities, academically low-achieving pupils, English learners, neglected or delinquent pupils, homeless pupils, or pupils who are economically disadvantaged, as determined by eligibility for any free or reduced-price meal program, foster youth, or pupils based on nationality, race, ethnicity, or sexual orientation.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
In accordance with Section 49011, preferences shall not require mandatory parental volunteer hours as a criterion for admission or continued enrollment.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
In the event of a drawing, the chartering authority shall make reasonable efforts to accommodate the growth of the charter school and shall not take any action to impede the charter school from expanding enrollment to meet pupil demand.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If a pupil is expelled or leaves the charter school without graduating or
completing the school year for any reason, the charter school shall notify the superintendent of the school district of the pupil’s last known address within 30 days, and shall, upon request, provide that school district with a copy of the cumulative record of the pupil, including report cards or a transcript of grades, and health information. If the pupil is subsequently expelled or leaves the school district without graduating or completing the school year for any reason, the school district shall provide this information to the charter school within 30 days if the charter school demonstrates that the pupil had been enrolled in the charter school. This paragraph applies only to pupils subject to compulsory full-time education pursuant to Section 48200.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A charter school shall not discourage a pupil from enrolling or seeking to enroll in the charter school for any reason, including, but not limited to, academic
performance of the pupil or because the pupil exhibits any of the characteristics described in clause (iii) of subparagraph (B) of paragraph (2).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A charter school shall not request a pupil’s records or require a parent, guardian, or pupil to submit the pupil’s records to the charter school before enrollment.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A charter school shall not encourage a pupil currently attending the charter school to disenroll from the charter school or transfer to another school for any reason, including, but not limited to, academic performance of the pupil or because the pupil exhibits any of the characteristics described in clause (iii) of subparagraph (B) of paragraph (2). This subparagraph shall not apply to actions taken by a charter school pursuant to the procedures described in subparagraph (I) of paragraph (5) of subdivision (c).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The department shall develop a notice of the requirements of this paragraph. This notice shall be posted on a charter school’s internet website. A charter school shall provide a parent or guardian, or a pupil if the pupil is 18 years of age or older, a copy of this notice at all of the following times:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
When a parent, guardian, or pupil inquires about enrollment.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Before conducting an enrollment lottery.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Before disenrollment of a pupil.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
A person who suspects that a charter school has violated this paragraph may file a complaint with the chartering authority.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The department shall
develop a template to be used for filing complaints pursuant to clause (i).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Notwithstanding any other law, a charter school in operation as of July 1, 2019, that operates in partnership with the California National Guard may dismiss a pupil from the charter school for failing to maintain the minimum standards of conduct required by the Military Department.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A charter school shall, at a governing body meeting, obtain the approval of the governing body of the charter school for any contract that would cause the charter school to compensate an individual contractor more than one hundred thousand dollars ($100,000) in a fiscal year.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The governing board of a school district shall not require an employee of the school district to be employed in a charter school.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The governing board of a school district shall not require a pupil enrolled in the school district to attend a charter school.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The governing board of a school district shall require that the petitioner or petitioners provide information regarding the proposed operation and potential effects of the charter school, including, but not limited to, the facilities to be used by the charter school, the manner in which administrative services of the charter school are to be provided, and potential civil liability effects, if any, upon the charter school and upon the school district. The description of the facilities to be used by the charter school shall specify where the charter school intends to locate. The petitioner or petitioners also shall be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cashflow and
financial projections for the first three years of operation. If the school is to be operated by, or as, a nonprofit public benefit corporation, the petitioner shall provide the names and relevant qualifications of all persons whom the petitioner nominates to serve on the governing body of the charter school.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
In reviewing petitions for the establishment of charter schools within the school district, the governing board of the school district shall give preference to petitions that demonstrate the capability to provide comprehensive learning experiences to pupils identified by the petitioner or petitioners as academically low achieving pursuant to the standards established by the department under Section 54032, as that section read before July 19, 2006.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Upon the approval of the petition by the governing board of the school district, the petitioner or petitioners shall
provide written notice of that approval, including a copy of the petition, to the applicable county superintendent of schools, the department, and the state board.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
If the governing board of a school district denies a petition, the petitioner may elect to submit the petition for the establishment of a charter school to the county board of education. The petitioner shall submit the petition to the county board of education within 30 days of a denial by the governing board of the school district. At the same time the petition is submitted to the county board of education, the petitioner shall also provide a copy of the petition to the school district. The county board of education shall review the petition pursuant to subdivisions (b) and (c). If the petition submitted on appeal contains new or different material terms, the county board of education shall immediately
remand the petition to the governing board of the school district for reconsideration, which shall grant or deny the petition within 30 days. If the governing board of the school district denies a petition after reconsideration, the petitioner may elect to resubmit the petition for the establishment of a charter school to the county board of education.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The county board of education shall review the appeal petition pursuant to subdivision (c). If the denial of the petition was made pursuant to paragraph (8) of subdivision (c), the county board of education shall also review the school district’s findings pursuant to paragraph (8) of subdivision (c).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
As used in this subdivision, “material terms” of the petition means the signatures, affirmations, disclosures, documents, and descriptions described in subdivisions (a), (b), (c), and (h), but shall not include minor
administrative updates to the petition or related documents due to changes in circumstances based on the passage of time related to fiscal affairs, facilities arrangements, or state law, or to reflect the county board of education as the chartering authority.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the governing board of a school district denies a petition and the county board of education has jurisdiction over a single school district, the petitioner may elect to submit the petition for the establishment of a charter school to the state board. The state board shall review a petition submitted pursuant to this subparagraph pursuant to subdivision (c). If the denial of a charter petition is reversed by the state board pursuant to this subparagraph, the state board shall designate the governing board of the school district in which the charter school is located as the chartering authority.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the county board
of education denies a petition, the petitioner may appeal that denial to the state board.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The petitioner shall submit the petition to the state board within 30 days of a denial by the county board of education. The petitioner shall include the findings and documentary record from the governing board of the school district and the county board of education and a written submission detailing, with specific citations to the documentary record, how the governing board of the school district and the county board of education abused their discretion. The governing board of the school district and county board of education shall prepare the documentary record, including transcripts of the public hearing at which the governing board of the school district and county board of education denied the charter, at the request of the petitioner. The documentary record shall be prepared by the governing board of the school district and county board of
education no later than 10 business days after the request of the petitioner is made. At the same time the petition and supporting documentation is submitted to the state board, the petitioner shall also provide a copy of the petition and supporting documentation to the school district and the county board of education.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the appeal contains new or different material terms, as defined in clause (iii) of subparagraph (A) of paragraph (1), the state board shall immediately remand the petition to the governing board of the school district to which the petition was submitted for reconsideration. The governing board of the school district shall grant or deny the petition within 30 days. If the governing board of the school district denies a petition after reconsideration, the petitioner may elect to resubmit the petition to the state board.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Within 30 days of receipt of the
appeal submitted to the state board, the governing board of the school district or county board of education may submit a written opposition to the state board detailing, with specific citations to the documentary record, how the governing board of the school district or the county board of education did not abuse its discretion in denying the petition. The governing board of the school district or the county board of education may submit supporting documentation or evidence from the documentary record that was considered by the governing board of the school district or the county board of education.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The state board’s Advisory Commission on Charter Schools shall hold a public hearing to review the appeal and documentary record. Based on its review, the Advisory Commission on Charter Schools shall submit a recommendation to the state board whether there is sufficient evidence to hear the appeal or to summarily deny review of the appeal based
on the documentary record. If the Advisory Commission on Charter Schools does not submit a recommendation to the state board, the state board shall consider the appeal, and shall either hear the appeal or summarily deny review of the appeal based on the documentary record at a regular public meeting of the state board.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The state board shall either hear the appeal or summarily deny review of the appeal based on the documentary record. If the state board hears the appeal, the state board may affirm the determination of the governing board of the school district or the county board of education, or both of those determinations, or may reverse only upon a determination that there was an abuse of discretion by both the governing board of the school district and the county board of education. Abuse of discretion is the most deferential standard of review, under which the state board must give deference to the decisions of the governing board of
the school district and the county board of education to deny the petition. If the denial of a charter petition is reversed by the state board, the state board shall designate, in consultation with the petitioner, either the governing board of the school district or the county board of education in which the charter school is located as the chartering authority.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school for which a charter is granted by either the county board of education or the state board based on an appeal pursuant to this subdivision shall qualify fully as a charter school for all funding and other purposes of this part.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A charter school that receives approval of its petition from a county board of education or from the state board on appeal shall be subject to the same requirements concerning geographic location to which it would otherwise be subject if it received approval from the
chartering authority to which it originally submitted its petition. A charter petition that is submitted to either a county board of education or to the state board shall meet all otherwise applicable petition requirements, including the identification of the proposed site or sites where the charter school will operate.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Upon the approval of the petition by the county board of education, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the governing board of the school district in which the charter school is located, the department, and the state board.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If either the county board of education or the state board fails to act on a petition within 180 days of receipt, the decision of the governing board of the school district to deny the petition shall be subject to judicial review.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Teachers in charter schools shall hold the Commission on Teacher Credentialing certificate, permit, or other document required for the teacher’s certificated assignment. These documents shall be maintained on file at the charter school and are subject to periodic inspection by the chartering authority. A governing body of a direct-funded charter school may use local assignment options authorized in statute and regulations for the purpose of legally assigning certificated teachers, in accordance with all of the requirements of the applicable statutes or regulations in the same manner as a governing board of a school district. A charter school shall have authority to request an emergency permit or a waiver from the Commission on Teacher Credentialing for individuals in the same manner as a school district.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
By July 1, 2020, all teachers in
charter schools shall obtain a certificate of clearance and satisfy the requirements for professional fitness pursuant to Sections 44339, 44340, and 44341.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Commission on Teacher Credentialing shall include in the bulletins it issues pursuant to subdivision (k) of Section 44237 to provide notification to local educational agencies of any adverse actions taken against the holders of any commission documents, notice of any adverse actions taken against teachers employed by charter schools, and shall make this bulletin available to all chartering authorities and charter schools in the same manner in which it is made available to local educational agencies.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
A charter school shall provide for an annual and independent financial and compliance audit in accordance with Section 41020.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
A charter school may
encourage parental involvement, but shall notify the parents and guardians of applicant pupils and currently enrolled pupils that parental involvement is not a requirement for acceptance to, or continued enrollment at, the charter school.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
The requirements of this section shall not be waived by the state board pursuant to Section 33050 or any other law.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_AF81AAAC-E753-47FD-9E3B-63F00A3001C1">
<ns0:Num>SEC. 33.</ns0:Num>
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Section 47605.05 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Num>47605.05.</ns0:Num>
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<ns0:Content>
<html:p>It is the intent of the Legislature to establish a statewide charter school oversight entity.</html:p>
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<ns0:BillSection id="id_C76C370E-0299-48B8-8326-4DEA4D85A8B3">
<ns0:Num>SEC. 34.</ns0:Num>
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Section 47605.1 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_7D0F1F8B-99FC-4F05-840B-00D2EE7419DD">
<ns0:Num>47605.1.</ns0:Num>
<ns0:LawSectionVersion id="id_83B833D9-2B0C-445A-BC61-A0A94C64CBCA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other law, a charter school that is granted a charter from the governing board of a school district or county office of education after July 1, 2002, and commences providing educational services to pupils on or after July 1, 2002, shall locate in accordance with the geographic and site limitations of this part.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding any other law, a charter school that is granted a charter by the state board after July 1, 2002, and commences providing educational services to pupils on or after July 1, 2002, based on the denial of a petition by the governing board of a school district or county board of education, as described in paragraphs (1) and (2) of subdivision (j) of Section 47605, may locate only within the
geographic boundaries of the chartering entity that initially denied the petition for the charter.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school that receives approval of its charter from a governing board of a school district, a county office of education, or the state board before July 1, 2002, but does not commence operations until after January 1, 2003, shall be subject to the geographic limitations of this part, in accordance with subdivision (d).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This section is not intended to affect the admission requirements contained in subdivision (d) of Section 47605.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A charter school may establish one resource center, meeting space, or other satellite facility within the jurisdiction of the school district where the charter school is physically located if the following conditions are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The facility is used exclusively for the educational support of pupils who are enrolled in flex-based instruction at the charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The charter school provides its primary educational services in, and a majority of the pupils it serves are residents of, the county in which the charter school is authorized.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Except as provided in paragraphs (5) to (9), inclusive, a charter school shall not establish a resource center, meeting space, or other satellite facility in any other location than the one authorized in paragraph (1).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school shall notify the charter school’s chartering authority of the name and physical location of any resource center, meeting space, or other satellite facility operated by that charter school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding Section 33050 or any other law, the state board shall not waive the restrictions listed in this subdivision.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A charter school that was operating a resource center, meeting space, or other satellite facility outside the jurisdiction of the school district where the charter school is physically located before January 1, 2020, may continue to operate the resource center, meeting space, or other satellite facility until the charter school submits a request for the renewal of its charter petition. To continue operating the resource center, meeting space, or other satellite facility, the charter school, before submitting the request to the charter school’s chartering authority for the renewal of the charter petition, shall first obtain approval in writing from the school district where the resource center, meeting space, or other satellite
facility is operating.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The department shall regard as a continuing charter school for all purposes a flex-based charter school that was granted approval of its petition, that was providing educational services to pupils before October 1, 2019, and is authorized by a different chartering authority due to changes to this subdivision by the addition of this paragraph that took effect January 1, 2020.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A countywide charter school approved by a county office of education that is operating a resource center, meeting space, or other satellite facility in a county other than the county in which the countywide charter school is authorized before January 1, 2020, may continue to operate that resource center, meeting space, or other satellite facility until the countywide charter school submits a request for the renewal of its charter petition. To continue operating the resource
center, meeting space, or other satellite facility, the countywide charter school, before submitting the request to the countywide charter school’s chartering authority for the renewal of the charter petition, shall obtain approval in writing from the county office of education where the resource center, meeting space, or other satellite facility is operating.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
If a Presidential declaration of a major disaster or emergency is issued in accordance with the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. Sec. 5121 et seq.) for an area in which a charter school is operating a resource center, meeting space, or other satellite facility, the charter school, for not more than five years, may relocate the resource center, meeting space, or other satellite facility outside the area subject to the Presidential declaration if the charter school first obtains the written approval of the school district where the
resource center, meeting space, or other satellite facility is being relocated to.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
A charter school may establish additional resource centers, meetings spaces, or other satellite facilities within the jurisdiction of the charter school’s chartering authority only if both of the following are met:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter school is physically located within the boundaries of the charter school’s chartering authority.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The charter school has obtained written approval from the charter school’s chartering authority for each additional resource center, meeting space, or other satellite facility.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Notwithstanding paragraph (5), a charter school that operates a resource center located in a school district outside of the boundaries of
the charter school’s authorizing school district may continue to operate the existing resource center if all of the following conditions are met:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The charter school operating the resource center is authorized by, and physically located in, a school district adjacent to a school district with an enrollment of at least 500,000 pupils.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The charter school operating the resource center was established before January 1, 2009.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The resource center is physically located in a school district with an enrollment of at least 500,000 pupils and was established before January 1, 2011.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The resource center serves a pupil population of which at least 50 percent of the pupils are currently or formerly on probation or were formerly incarcerated
individuals.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A charter school described in this paragraph shall not establish a new resource center outside of the boundaries of the charter school’s authorizing school district.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For a charter school that was granted approval of its charter before July 1, 2002, and provided educational services to pupils before July 1, 2002, this section only applies to new educational services or schoolsites established or acquired by the charter school on or after July 1, 2002.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For a charter school that was granted approval of its charter before July 1, 2002, but did not provide educational services to pupils before July 1, 2002, this section only applies upon the expiration of a charter that is in existence on January 1, 2003.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Notwithstanding other implementation timelines in this section, by June 30, 2005, or upon the expiration of a charter that is in existence on January 1, 2003, whichever is later, all charter schools shall be required to comply with this section for schoolsites at which educational services are provided to pupils before or after July 1, 2002, regardless of whether the charter school initially received approval of its charter school petition before July 1, 2002. To achieve compliance with this section, a charter school shall be required to receive approval of a charter petition in accordance with this section and Section 47605.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This section is not intended to affect the authority of a governmental entity to revoke a charter that is granted on or before the effective date of this section.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A charter school that submits its petition directly to a county board
of education, as authorized by Section 47605.5 or 47605.6, may establish charter school operations only within the geographical boundaries of the county in which that county board of education has jurisdiction.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Notwithstanding any other law, the jurisdictional limitations set forth in this section do not apply to a charter school that provides instruction exclusively in partnership with any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The federal Workforce Innovation and Opportunity Act (29 U.S.C. Sec. 3101 et seq.).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Federally affiliated Youth Build programs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Federal job corps training or instruction provided pursuant to a memorandum of understanding with the federal provider.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The California
Conservation Corps or local conservation corps certified by the California Conservation Corps pursuant to Section 14507.5 or 14406 of the Public Resources Code.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Instruction provided to juvenile court school pupils pursuant to subdivision (b) of Section 42238.18 or pursuant to Section 1981 for individuals who are placed in a residential facility.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_F0839530-0DE7-4D45-9B52-0C5977604480">
<ns0:Num>SEC. 35.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'26.8.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'47607.2.'%5D)" ns3:label="fractionType: LAW_SECTION||version: Amended (as amended by Stats. 2020, Ch. 24, Sec. 45) by Stats. 2021, Ch. 44, Sec. 57. [id_5e09448b-e4ae-11eb-ad04-a7886069fc3b]" ns3:type="locator">
Section 47607.2 of the
<ns0:DocName>Education Code</ns0:DocName>
, as amended by Section 57 of Chapter 44 of the Statutes of 2021, is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_F6EFA0A0-2330-4CA9-8FD0-FBDE8A346B8C">
<ns0:Num>47607.2.</ns0:Num>
<ns0:LawSectionVersion id="id_73D2CDC7-4D46-4FF5-9DB5-31227951725B">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The chartering authority shall not renew a charter if either of the following apply for two consecutive years immediately preceding the renewal decision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter school has received the two lowest performance levels schoolwide on all the state indicators included in the evaluation rubrics adopted pursuant to Section 52064.5 for which it receives performance levels.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For all measurements of academic performance, the charter school has received performance levels schoolwide that are the same or lower than the state average and, for a majority of subgroups performing statewide below the state average in each respective year, received performance levels that are
lower than the state average.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), if the two consecutive years immediately preceding the renewal decision include the 2019–20 or 2020–21 school year, the chartering authority shall not renew a charter if either of the following apply for two of the most recent years for which state data is available preceding the renewal decision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter school has received the two lowest performance levels schoolwide on all the state indicators included in the evaluation rubrics adopted pursuant to Section 52064.5 for which it receives performance levels.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For all measurements of academic performance, the charter school has received performance levels schoolwide that are the same or lower than the state average and, for a majority of subgroups performing statewide below the state average in
each respective year, received performance levels that are lower than the state average.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school that meets the criteria established by this subdivision and paragraph (2) of subdivision (c) of Section 47607 shall only qualify for treatment under this subdivision.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The chartering authority shall consider the following factors, and may renew a charter that meets the criteria in paragraph (1) or (2) only upon making both of the following written factual findings, specific to the particular petition, setting forth specific facts to support the findings:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter school is taking meaningful steps to address the underlying cause or causes of low performance, and those steps are reflected, or will be reflected, in a written plan adopted by the governing body of the charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
There is clear and convincing evidence showing either of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The school achieved measurable increases in academic achievement, as defined by at least one year’s progress for each year in school.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Strong postsecondary outcomes, as defined by college enrollment, persistence, and completion rates equal to similar peers.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Clauses (i) and (ii) of subparagraph (B) shall be demonstrated by verified data, as defined in subdivision (c).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Verified data, as defined in subdivision (c), shall be considered by the chartering authority until June 30, 2028, for a charter school pursuant to this subdivision, operating on or before June 30, 2020, only for the charter school’s next
two subsequent renewals.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
For a charter renewed pursuant to this subdivision, the chartering authority may grant a renewal for a period of two years.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For all charter schools for which paragraph (2) of subdivision (c) of Section 47607 and subdivision (a) of this section do not apply, the chartering authority shall consider the schoolwide performance and performance of all subgroups of pupils served by the charter school on the state indicators included in the evaluation rubrics adopted pursuant to Section 52064.5 and the performance of the charter school on the local indicators included in the evaluation rubrics adopted pursuant to Section 52064.5.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The chartering authority shall provide greater weight to performance on measurements of academic performance in determining whether to
grant a charter renewal.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In addition to the state and local indicators, the chartering authority shall consider clear and convincing evidence showing either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The school achieved measurable increases in academic achievement, as defined by at least one year’s progress for each year in school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Strong postsecondary outcomes, as defined by college enrollment, persistence, and completion rates equal to similar peers.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Subparagraphs (A) and (B) of paragraph (3) shall be demonstrated by verified data, as defined in subdivision (c).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Verified data, as defined in subdivision (c), shall be considered by the chartering authority for the next two subsequent renewals
until June 30, 2028, for a charter school pursuant to this paragraph.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The chartering authority may deny a charter renewal pursuant to this subdivision only upon making written findings, setting forth specific facts to support the findings, that the charter school has failed to meet or make sufficient progress toward meeting standards that provide a benefit to the pupils of the school, that closure of the charter school is in the best interest of pupils and, if applicable pursuant to paragraphs (2) and (3), that its decision provided greater weight to performance on measurements of academic performance.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
For a charter renewed pursuant to this subdivision, the chartering authority shall grant a renewal for a period of five years.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, “verified data” means
data derived from nationally recognized, valid, peer-reviewed, and reliable sources that are externally produced. Verified data shall include measures of postsecondary outcomes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
By January 1, 2021, the state board shall establish criteria to define verified data and identify an approved list of valid and reliable assessments that shall be used for this purpose.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
No data sources other than those adopted by the state board pursuant to paragraph (2) shall be used as verified data.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding paragraph (3), a charter school under consideration for renewal before the state board’s adoption pursuant to paragraph (2) may present data consistent with this subdivision.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Adoption of the criteria pursuant to this subdivision shall not be subject
to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The state board may adopt and make necessary revisions to the criteria in accordance with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Upon adoption of a pupil-level academic growth measure for English language arts and mathematics, the state board may reconsider criteria adopted pursuant to this subdivision.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.
</html:p>
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<ns0:BillSection id="id_54FD84DD-BE89-468F-84B8-A11EB717C0AE">
<ns0:Num>SEC. 36.</ns0:Num>
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Section 47607.2 of the
<ns0:DocName>Education Code</ns0:DocName>
, as added by Section 9 of Chapter 486 of the Statutes of 2019, is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_0963B462-85E5-436F-BACF-4AEA449357A8">
<ns0:Num>47607.2.</ns0:Num>
<ns0:LawSectionVersion id="id_ACE838FD-2FB8-4E3E-A05B-AB024D1CA90C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The chartering authority shall not renew a charter if either of the following apply for two consecutive years immediately preceding the renewal decision:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter school has received the two lowest performance levels schoolwide on all the state indicators included in the evaluation rubrics adopted pursuant to Section 52064.5 for which it receives performance levels.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For all measurements of academic performance, the charter school has received performance levels schoolwide that are the same or lower than the state average and, for a majority of subgroups performing statewide below the state average in each respective year, received performance levels that are
lower than the state average.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A charter school that meets the criteria established by this subdivision and paragraph (2) of subdivision (c) of Section 47607 shall only qualify for treatment under this subdivision.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The chartering authority shall consider the following factors, and may renew a charter that meets the criteria in paragraph (1) only upon making a written factual finding, specific to the particular petition, setting forth specific facts to support the finding that the charter school is taking meaningful steps to address the underlying cause or causes of low performance, and those steps are reflected, or will be reflected, in a written plan adopted by the governing body of the charter school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For a charter renewed pursuant to this subdivision, the chartering authority may grant a renewal for a
period of two years.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For all charter schools for which paragraph (2) of subdivision (c) of Section 47607 and subdivision (a) of this section do not apply, the chartering authority shall consider the schoolwide performance and performance of all subgroups of pupils served by the charter school on the state indicators included in the evaluation rubrics adopted pursuant to Section 52064.5 and the performance of the charter school on the local indicators included in the evaluation rubrics adopted pursuant to Section 52064.5.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The chartering authority shall provide greater weight to performance on measurements of academic performance in determining whether to grant a charter renewal.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The chartering authority may deny a charter renewal pursuant to this subdivision only upon making
written findings, setting forth specific facts to support the findings, that the charter school has failed to meet or make sufficient progress toward meeting standards that provide a benefit to the pupils of the school, that closure of the charter school is in the best interest of pupils and, if applicable pursuant to paragraph (2), that its decision provided greater weight to performance on measurements of academic performance.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For a charter renewed pursuant to this subdivision, the chartering authority shall grant a renewal for a period of five years.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall become operative on July 1, 2028.
</html:p>
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<ns0:BillSection id="id_7DC429D9-ACDE-4026-8794-34D569EED002">
<ns0:Num>SEC. 37.</ns0:Num>
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Section 47612.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5B8785E7-468C-4A15-8581-8886685274C6">
<ns0:Num>47612.5.</ns0:Num>
<ns0:LawSectionVersion id="id_9E2E0C8C-3058-4473-9D07-A054BBA4D316">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law and as a condition of apportionment, a charter school shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For each fiscal year, offer, at a minimum, the following number of minutes of instruction:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
To pupils in kindergarten, 36,000 minutes.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
To pupils in grades 1 to 3, inclusive, 50,400 minutes.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
To pupils in grades 4 to 8, inclusive, 54,000 minutes.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
To pupils in grades 9 to 12, inclusive, 64,800 minutes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Maintain written contemporaneous records that document all pupil attendance and make these records available for audit and inspection.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Certify that its pupils have participated in the state testing programs specified in Chapter 5 (commencing with Section 60600) of Part 33 in the same manner as other pupils attending public schools as a condition of apportionment of state funding.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding any other law and except to the extent inconsistent with this section and Section 47634.2, a charter school that provides independent study shall comply with Article 5.5 (commencing with Section 51745) of Chapter 5 of Part 28 and implementing regulations adopted thereunder. The state board shall adopt regulations that apply this article to charter schools. To the extent that these regulations concern the qualifications of instructional personnel, the state board
shall be guided by subdivision (
<html:i>l</html:i>
) of Section 47605.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A reduction in apportionment made pursuant to subdivision (a) shall be proportional to the magnitude of the exception that causes the reduction. For purposes of paragraph (1) of subdivision (a), for each charter school that fails to offer pupils the minimum number of minutes of instruction specified in that paragraph, the Superintendent shall withhold from the charter school’s apportionment for average daily attendance of the affected pupils, by grade level, the sum of that apportionment multiplied by the percentage of the minimum number of minutes of instruction at each grade level that the charter school failed to offer.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other law and except as provided in paragraph (1) of subdivision (e), a charter school that has an approved charter may receive funding for
flex-based instruction only if a determination for funding is made pursuant to Section 47634.2 by the state board. The determination for funding shall be subject to any conditions or limitations the state board may prescribe. The state board shall adopt regulations that define and establish general rules governing flex-based instruction that apply to all charter schools and to the process for determining funding of flex-based instruction by charter schools offering flex-based instruction other than the flex-based instruction authorized by paragraph (1) of subdivision (e). Flex-based instruction includes, but is not limited to, independent study, home study, work study, and distance and computer-based education. In prescribing any conditions or limitations relating to the qualifications of instructional personnel, the state board shall be guided by subdivision (l) of Section 47605.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A charter school that receives a determination pursuant to
Section 47634.2 is not required to reapply annually for a funding determination of its flex-based instruction program if an update of the information the state board reviewed when initially determining funding would not require material revision, as that term is defined in regulations adopted by the board. Notwithstanding any other law, the state board may require a charter school to provide updated information at any time it determines that a review of that information is necessary. The state board may terminate a determination for funding if updated or additional information requested by the board is not made available to the board by the charter school within a reasonable amount of time or if the information otherwise supports termination. A determination for funding pursuant to Section 47634.2 shall not exceed five years, except as otherwise allowed under Section 47634.2.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A charter school that offers flex-based instruction in excess of
the amount authorized by paragraph (1) of subdivision (e) is subject to the determination for funding requirement of Section 47634.2. A charter school that materially revises its charter to offer flex-based instruction in excess of the amount authorized by paragraph (1) of subdivision (e) is subject to the determination for funding requirement of Section 47634.2.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other law, and as a condition of apportionment, “classroom-based instruction” in a charter school, for purposes of this part, occurs only when charter school pupils are engaged in educational activities required of those pupils and are under the immediate supervision and control of an employee of the charter school who possesses a valid certification document registered as required by law. For purposes of calculating average daily attendance for classroom-based instruction apportionments, at least 80 percent of the instructional time
offered by the charter school shall be at the schoolsite, and the charter school shall require the attendance of all pupils for whom a classroom-based apportionment is claimed at the schoolsite for at least 80 percent of the minimum instructional time required to be offered pursuant to paragraph (1) of subdivision (a).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For the purposes of this part, “flex-based instruction” means instruction that does not meet the requirements specified in paragraph (1). The state board may adopt regulations pursuant to paragraph (1) of subdivision (d) specifying other conditions or limitations on what constitutes flex-based instruction, as it deems appropriate and consistent with this part.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of this part, “flex-based charter school” means a charter school that is subject to the determination for funding requirement of Section 47634.2.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For purposes of this part, “schoolsite” means a facility that is used principally for classroom instruction.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Notwithstanding any other law, neither the state board nor the Superintendent may waive the requirements of paragraph (1) of subdivision (a).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_DCAB193B-52DF-4D6A-8BF9-704442E2B2C8">
<ns0:Num>SEC. 38.</ns0:Num>
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Section 47612.7 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_DBA339EA-FD64-4918-825F-B97129A3F415">
<ns0:Num>47612.7.</ns0:Num>
<ns0:LawSectionVersion id="id_DDB2B026-D9B3-4E64-93BD-191A330009E6">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law and except as provided in subdivision (b), from January 1, 2020, to June 30, 2026, inclusive, the approval of a petition for the establishment of a new flex-based charter school, as defined in paragraph (3) of subdivision (e) of Section 47612.5, is prohibited.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Subdivision (a) shall not apply to a flex-based charter school that was granted approval of its petition and providing educational services to pupils before October 1, 2019, under either of the following circumstances:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If Assembly Bill 1507 of the 2019–20 Regular Session amends Section 47605.1 and becomes operative on January 1, 2020, and the flex-based charter school is required to submit a petition to
the governing board of a school district or county board of education in an adjacent county in which its existing resource center is located in order to comply with Section 47605.1, as amended by Assembly Bill 1507 of the 2019–20 Regular Session, or to retain current program offerings or enrollment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If a flex-based charter school is required to submit a petition to a school district or county board of education in which a resource center is located in order to comply with the court decision in Anderson Union High School District v. Shasta Secondary Home School (2016) 4 Cal.App.5th 262, or other relevant court ruling, and the petition is necessary to retain current program offerings or enrollment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A flex-based charter school authorized by a different chartering authority pursuant to paragraphs (1) and (2) shall be regarded by the department as a continuing charter school
for all purposes to the extent it does not conflict with federal law. In order to prevent any potential conflict with federal law, this paragraph does not apply to covered programs as identified in Section 8101(11) of the federal Elementary and Secondary Education Act of 1965 (20 U.S.C. Sec. 7801) to the extent the affected charter school is the restructured portion of a divided charter school pursuant to Section 47654.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notwithstanding Section 33050 or any other law, the state board shall not waive the restrictions described in this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_145F1A73-764A-4405-9EF0-F88C9F786573">
<ns0:Num>SEC. 39.</ns0:Num>
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Section 47613 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_50E0014D-A5FD-46A6-A44C-86C99F3039A8">
<ns0:Num>47613.</ns0:Num>
<ns0:LawSectionVersion id="id_2F957A93-595C-40D9-BB3E-3348F3360D2E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as set forth in subdivision (b), a chartering authority may charge for the actual costs of supervisorial oversight of a charter school not to exceed 1 percent of the revenue of the charter school.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A chartering authority may charge for the actual costs of supervisorial oversight of a charter school not to exceed 3 percent of the revenue of the charter school if the charter school is able to obtain substantially rent free facilities from the chartering authority.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A local educational agency that is given the responsibility for supervisorial oversight of a charter school, pursuant to paragraph (1) of subdivision (k) of Section 47605, may charge for the actual costs of supervisorial
oversight, and administrative costs necessary to secure charter school funding. A charter school that is charged for costs under this subdivision may not be charged pursuant to subdivision (a) or (b).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section does not prevent the charter school from separately purchasing administrative or other services from the chartering authority or any other source.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, “chartering authority” means a school district, county board of education, or the state board, that granted the charter to the charter school.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
For purposes of this section, “revenue of the charter school” means the amount received in the current fiscal year from the local control funding formula calculated pursuant to Section 42238.02, as implemented by Section 42238.03.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For purposes of this section, “costs of supervisorial oversight” include, but are not limited to, costs incurred pursuant to Sections 47604.32 and 47607.3.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_FB54AEDC-FA10-4516-887E-635897003159">
<ns0:Num>SEC. 40.</ns0:Num>
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Section 47614.5 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_45B9D201-D555-4EFA-A12F-A98EDB235D8E">
<ns0:Num>47614.5.</ns0:Num>
<ns0:LawSectionVersion id="id_896940B6-FA1B-461E-8A77-58B8FBAC74AF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Charter School Facility Grant Program is hereby established, and shall be administered by the California School Finance Authority. The grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Commencing with the 2017–18 fiscal year, and subject to available funding in the annual Budget Act, eligible charter schools shall receive an amount equivalent to one of the following, whichever is less:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Seventy-five percent of annual facilities rent and lease costs for the charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For the 2017–18 fiscal year, an amount equal to one
thousand one hundred seventeen dollars ($1,117) per unit of average daily attendance, as certified at the second principal apportionment. Commencing with the 2018–19 fiscal year, the amount of funding provided per unit of average daily attendance in the preceding fiscal year, as adjusted by the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States, as published by the United States Department of Commerce for the 12-month period ending in the third quarter of the prior fiscal year. This percentage change shall be determined using the latest data available as of May 10 of the preceding fiscal year compared with the annual average value of the same deflator for the 12-month period ending in the third quarter of the second preceding fiscal year, using the latest data available as of May 10 of the preceding fiscal year, as reported by the Department of Finance.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In any fiscal year, if the funds appropriated for purposes of this section by the annual Budget Act are insufficient to fully fund the approved amounts, the California School Finance Authority shall apportion the available funds on a pro rata basis.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
For purposes of this section, the California School Finance Authority shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Inform charter schools of the grant program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon application by a charter school, determine eligibility, based on the geographic location of the charter schoolsite, pupil eligibility for free or reduced-price meals, and a preference in admissions, as appropriate. Eligibility for funding shall not be limited to the grade level or levels served by the school whose attendance area is used to determine
eligibility. A charter schoolsite is eligible for funding pursuant to this section if the charter schoolsite meets either of the following conditions:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The charter schoolsite is physically located in the attendance area of a public elementary school in which 55 percent or more of the pupil enrollment is eligible for free or reduced-price meals and the charter schoolsite gives a preference in admissions to pupils who are currently enrolled in that public elementary school and to pupils who reside in the elementary school attendance area where the charter schoolsite is located.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Fifty-five percent or more of the pupil enrollment at the charter schoolsite is eligible for free or reduced-price meals.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Inform charter schools of their grant eligibility.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Make apportionments to a charter school for eligible expenditures according to the following schedule:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
An initial apportionment by October 31 of each fiscal year, provided the charter school has submitted a timely application for funding, as determined by the California School Finance Authority. The initial apportionment shall be 50 percent of the charter school’s estimated annual entitlement as determined by this section.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A second apportionment by March 1 of each fiscal year. This apportionment shall be 75 percent of the charter school’s estimated annual entitlement, as adjusted for any revisions in cost, enrollment, and other data relevant to computing the charter school’s annual entitlement, less any funding already apportioned to the charter school.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A third apportionment within 30
days of the end of each fiscal year or 30 days after receiving the data and documentation needed to compute the charter school’s total annual entitlement, whichever is later. This apportionment shall be the charter school’s total annual entitlement less any funding already apportioned to the charter school.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), the initial apportionment in the 2013–14 fiscal year shall be made by October 15, 2013, or 105 days after enactment of the Budget Act of 2013, whichever is later.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The California School Finance Authority shall use prior year data on pupil eligibility for free or reduced-price meals to determine eligibility pursuant to paragraph (2) of subdivision (c). A new charter school that was not operational in the prior year shall be eligible in the
current year if it meets the free or reduced-price meal eligibility requirements specified in paragraph (2) of subdivision (c) based on current year data. Prior year rent or lease costs provided by charter schools shall be used to determine eligibility for the grant program until actual rent or lease costs become known or until June 30 of each fiscal year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If prior year rent or lease costs are unavailable, and the current year lease and rent costs are not immediately available, the California School Finance Authority shall use rent or lease cost estimates provided by the charter school.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The California School Finance Authority shall verify costs associated with facility rents or leases, as evidenced by an executed rental or lease agreement.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The verified facility agreement shall be
subject to either of the following conditions:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Reimbursable facility rent or lease costs do not exceed the prior year’s costs on file with the authority as of the 2016–17 fiscal year, subject to a cost-of-living adjustment consistent with subparagraph (B) of paragraph (1) of subdivision (b).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The rent or lease costs of new facility agreements are at or below market rate based on an independent appraisal paid for by the charter school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The California School Finance Authority shall verify that the grant amount awarded to each charter school is consistent with eligibility requirements as specified in this section and in regulations adopted by the authority. If it is determined by the California School Finance Authority that a charter school did not receive the proper grant award amount, either the charter
school shall transfer funds back to the authority as necessary within 60 days of being notified by the authority, or the authority shall provide an additional apportionment as necessary to the charter school within 60 days of notifying the charter school, subject to the availability of funds.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Funds appropriated for purposes of this section shall not be apportioned for any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Units of average daily attendance generated through flex-based instruction as defined by paragraph (2) of subdivision (e) of Section 47612.5 or that does not comply with conditions or limitations set forth in regulations adopted by the state board pursuant to this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Charter schools occupying existing school district or county office of education facilities, except that charter schools shall be eligible for the
portions of their facilities that are not existing school district or county office of education facilities.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Charter schools receiving reasonably equivalent facilities from their chartering authorities pursuant to Section 47614, except that charter schools shall be eligible for the portions of their facilities that are not reasonably equivalent facilities received from their chartering authorities.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Funds appropriated for purposes of this section shall first be used for costs associated with facilities rents and leases, consistent with the definitions used in the California School Accounting Manual or regulations adopted by the California School Finance Authority. These funds also may be used for costs, including, but not limited to, costs associated with remodeling buildings, deferred maintenance, initially installing or extending service systems and other built-in
equipment, and improving sites.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If an existing charter school located in an elementary attendance area in which less than 50 percent of pupil enrollment is eligible for free or reduced-price meals relocates to an attendance area identified in paragraph (2) of subdivision (c), admissions preference shall be given to pupils who reside in the elementary school attendance area into which the charter school is relocating.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The California School Finance Authority annually shall report to the department and the Director of Finance, and post information on its internet website, regarding the use of funds that have been made available during the fiscal year to each charter school pursuant to the grant program.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The California School Finance Authority shall annually allocate the facilities grants to eligible charter
schools according to the schedule in paragraph (4) of subdivision (c) for the current school year rent and lease costs.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
It is the intent of the Legislature that the funding level for the Charter School Facility Grant Program for the 2012–13 fiscal year be considered the base level of funding for subsequent fiscal years.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The Controller shall include instructions appropriate to the enforcement of this section in the audit guide required by subdivision (a) of Section 14502.1.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
The California School Finance Authority, effective with the 2013–14 fiscal year, shall be considered the senior creditor for purposes of satisfying audit findings pursuant to the audit instructions to be developed pursuant to subdivision (k).
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
The California
School Finance Authority may adopt regulations to implement this section. Any regulations adopted pursuant to this section may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
Notwithstanding any other law, a charter school shall be subject, with regard to this section, to audit conducted pursuant to Section 41020.
</html:p>
</ns0:Content>
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</ns0:LawSection>
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<ns0:BillSection id="id_AF745159-2BE9-4354-8FA9-D6D70C88A57E">
<ns0:Num>SEC. 41.</ns0:Num>
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Section 47616.7 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_3D080279-1094-4E1C-8142-CA26C49A2388">
<ns0:Num>47616.7.</ns0:Num>
<ns0:LawSectionVersion id="id_532BAF4E-2685-4553-B8A8-CFD4A32C67F4">
<ns0:Content>
<html:p>The evaluation provided for in Section 47616.5 shall include an analysis of the funding system for charter schools that offer flex-based instruction. The evaluation shall also examine the effectiveness of the state board’s process, as provided for in Sections 47612.5 and 47634.2, for approving funding for charter schools offering flex-based instruction.</html:p>
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</ns0:LawSection>
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<ns0:BillSection id="id_63F8AF43-9315-449E-837E-CAB530B6E048">
<ns0:Num>SEC. 42.</ns0:Num>
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Section 47634.2 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_7B44BE2C-33A5-403E-87F4-074A19B53AC8">
<ns0:Num>47634.2.</ns0:Num>
<ns0:LawSectionVersion id="id_FEE33F57-BF0D-4722-A11E-C356011EE011">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other law, the amount of funding to be allocated to a charter school on the basis of average daily attendance that is generated by pupils engaged in flex-based instruction, as defined in paragraph (2) of subdivision (e) of Section 47612.5, including funding provided on the basis of average daily attendance pursuant to Sections 47613.1, 47633, and 47664, may be adjusted by the state board. The state board shall revise regulations setting forth criteria for the determination of funding for flex-based instruction, and, at a minimum, the regulation shall specify that the flex-based instruction is conducted for the instructional benefit of the pupil and substantially dedicated to that function. In developing these criteria and
determining the amount of funding to be allocated to a charter school pursuant to this section, the state board shall consider, among other factors it deems appropriate, the amount of the charter school’s total budget expended on certificated employee salaries and benefits, the amount of the charter school’s total expenditures on instruction and related services, including the expenditures on facilities pursuant to paragraph (2) of subdivision (e), and the teacher-to-pupil ratio in the school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The determination for funding shall be on a percentage basis and the Superintendent shall implement the determination for funding by reducing the charter school’s reported average daily attendance by the determination for funding percentage specified by the state board in accordance with this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the state board denies request for a determination for funding or provides a
reduction as authorized by subdivision (a), the board shall, in writing, give the reasons for its denial or reduction and, if appropriate, may describe how any deficiencies or problems may be addressed.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Prior to a recommendation by the Advisory Commission on Charter Schools that a determination of funding request be denied or approved at a percentage lower than that requested is forwarded to the state board, the affected charter school shall be given 60 calendar days to amend its determination of funding request or to provide additional information in support of the request. Based upon consideration of the amended request or any additional information that may be provided, the Advisory Commission on Charter Schools may modify its recommendation to the state board.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The state board shall appoint an advisory commission to recommend criteria to the state board in accordance
with this section if it has not done so by January 1, 2002. The advisory commission shall include, but is not limited to, representatives from school district superintendents, charter schools, teachers, parents, members of the governing boards of school districts, county superintendents of schools, and the Superintendent.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Commencing with 2027–28 fiscal year, the state board’s Advisory Commission on Charter Schools shall recommend to the state board the approval of a funding determination request submitted by a charter school consistent with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Approval of the request at 70 percent, if both of the following criteria are met, unless there is a reasonable basis to recommend otherwise:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The percentage calculated for certificated employee salaries and benefits equals
at least 35 percent but less than 40 percent of total public revenue.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The percentage calculated for total expenditures on instruction and related services equals at least 60 percent but less than 70 percent of total revenue.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the recommended percentage made pursuant to this paragraph is lower than the requested percentage, the recommendation shall include the reasons justifying the reduction, and, if appropriate, a description of how any deficiencies or problems can be addressed by the charter school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Approval of the request at 85 percent, unless there is a reasonable basis to recommend otherwise, if both of the following criteria are met:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The percentage calculated for certificated employee salaries and
benefits equals at least 40 percent of total public revenue.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The percentage calculated for total expenditures on instruction and related services equals at least 70 percent but less than 80 percent of total revenue.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A recommendation made pursuant to this paragraph shall include the reasons justifying a percentage that is greater than 70 percent or if the recommended percentage is lower than the requested percentage, the reasons justifying the reduction, and, if appropriate, a description of how any deficiencies or problems can be addressed by the charter school.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Approval of a percentage of reduction proportional to the variance from 80 percent of instructional costs unless there is a reasonable basis to recommend otherwise, if both of the following criteria are met:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The percentage calculated for certificated employee salaries and benefits equals at least 40 percent of total public revenue.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The percentage calculated for total expenditures on instruction and related services equals at least 77 percent but less than 80 percent of total revenue.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the recommended percentage made pursuant to this paragraph is lower than the requested percentage, the recommendation shall include the reasons justifying the reduction, and, if appropriate, a description of how any deficiencies or problems can be addressed by the charter school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Approval of the request at 100 percent, unless there is a reasonable basis to recommend less, if all of the following criteria are met:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The percentage calculated for certificated employee salaries and benefits equals at least 40 percent of total public revenue.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The percentage calculated for total expenditures on instruction and related services equals at least 80 percent of total revenue.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The ratio of average daily attendance for independent study pupils to full-time certificated employees responsible for independent study does not exceed the ratio specified in section 51745.6.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the recommended percentage made pursuant to this paragraph is lower than the requested percentage, the recommendation shall include the reasons justifying the reduction, and, if appropriate, a description of how any deficiencies or problems can be addressed by the charter school.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Due to the flex-based instruction not being substantially dedicated to the instructional benefit of the pupils, a denial of the request shall be made if one of the following criteria are met, unless there is a reasonable basis to recommend otherwise:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The percentage calculated for certificated employee salaries and benefits is less than 35 percent of total public revenue.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The percentage calculated for total expenditures on instruction and related service is less than 60 percent of total revenue.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A recommendation made pursuant to subparagraph (A) shall include the reasons justifying the denial and, if appropriate, a description of how any deficiencies or problems can be addressed by the charter school.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year, all of the following shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An approved determination of funding for a new charter school in its first year of operation shall be submitted by December 1 and shall be for two fiscal years. Within 90 days after the end of its first fiscal year of operation, a charter school shall submit unaudited actual expense reports and a funding determination form based on the charter school’s actual second-year budget. If the Advisory Commission on Charter Schools determines that the actual expenditures of the charter school or the second-year funding determination form do not support the funding determination for the second year, the Advisory Commission on Charter Schools shall recommend that the state board revise the funding determination. The Advisory Commission on Charter Schools and the board shall give charter schools that are in their
first year of operation serious consideration of full funding.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Charter schools that are part of a network of flex-based charter schools shall apply for a funding determination within the same fiscal year in a year determined by the department, and the state board shall consider the funding determination for each of the schools within a network at the same hearing. The department shall determine the year based on the furthest funding determination date within the network, but no later than five years after the network is identified. If a charter school already has a multiyear funding determination prior to being identified as part of a network, that determination shall be deemed invalid and the network shall submit documentation for a new funding determination. During the review of a funding determination for a charter school that is part of a network of flex-based charter schools that do not utilize the audit process pursuant to
subparagraph (B) of paragraph (3) of subdivision (a) of Section 41020.6, the department shall additionally review and compare the annual uniform electronic data template with unique teacher identifier information, full-time equivalent status, and salary and benefit information across the network of charter schools in order to determine whether any of the components described in paragraph (2) of subdivision (a) of Section 41020.6 are inappropriately double counted in multiple schools across the network that adversely impact any of the components described in paragraph (2) of subdivision (a) of Section 41020.6. By January 1, 2027, the department shall develop an electronic template document to collect only the unique teacher identifier, full-time equivalency status, and salary and benefit amounts.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Advisory Commission on Charter Schools shall recommend to the state board funding determinations for each flex-based charter school that is
part of a network as defined in Section 47634.3 that do not utilize the audit process pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 41020.6 based on a review of aggregate expenditure and revenue information from all years since the prior funding determination was made for that school and shall recommend modifying the funding accordingly.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Any funding determination approved by the state board may be modified by the state board, including the terms of the multiyear approval and the funding authorized. The state board may terminate a determination of funding if updated or additional information requested by the department or the advisory committee pursuant to this section is not made available by a charter school within a reasonable amount of time or if credible information from any source supports termination or reduction. If credible information from a source supports termination or reduction, the charter school
shall have a reasonable amount of time prior to the termination or reduction of funding to provide additional information to support the charter school’s determination of funding.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A charter school that is eligible for a funding determination based on the criteria pursuant to subdivision (c) may be eligible for an increase in the funding determination only if the state board finds a reasonable basis to recommend an increase in accordance with the mitigating circumstances described in paragraph (7).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A charter school granted an increase in the funding determination based on mitigating circumstances shall receive a funding determination not to exceed two years.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A reasonable basis for the Advisory Commission on Charter Schools to make, or the state board to approve, a recommendation higher than one that
results from the criteria described in subdivision (c) includes, but is not limited to, documented data regarding the circumstances of the charter school. When considering requests for mitigation, the Advisory Commission on Charter Schools and the state board shall grant serious consideration to the budgeting and staffing decisions of the charter school, provided those decisions are otherwise legal and compliant with applicable law.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The Advisory Commission on Charter Schools shall give charter schools with less than a total of 100 units of prior year second period average daily attendance or that are in their first year of operation serious consideration of full funding. A flex-based charter school that had a funding determination in the prior year and is seeking a new determination is required to submit a funding determination request by February 15 of the fiscal year prior to the year the funding determination will be effective.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Commencing with the 2027–28 fiscal year, charter schools that submit a funding determination request shall adhere to all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Exclude unspent one-time local, state, or federal revenues that are permitted to be spent over multiple fiscal years from the calculations of the percentage of school total revenues spent on instruction-related services and total public revenue for certificated staff salaries and benefits if the charter school recognizes these revenues and expenditures in the year the funds are actually spent.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
May include in the total expenditures for instruction and related services any funds spent on resource centers, meeting spaces, satellite facilities, or site-based instructional facilities purchased, operated, or leased by the charter school, used primarily for purposes of in-person
instruction and pupil support services, including, but not limited to, tutoring, counseling, special education services, libraries, testing, and visual and performing arts facilities. A charter school shall provide the department with supporting documentation related to these costs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Report the amount and classification of its reserves on funding determination forms consistent with state accounting categories of assigned, unassigned, restricted, committed, and nonspendable.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Exclude from the total revenue and total public revenue the portion of a net increase to the governing body designated reserve for economic uncertainties that is a component part of unrestricted net assets or unassigned fund balance excluding any transfers between the components of the fund balance, where applicable, that is sufficient to increase the reserve for economic uncertainties to 10 percent of
the charter school’s annual expenditures if the charter school has a governing body designated reserve for economic uncertainties that is a component part of unrestricted net assets or unassigned fund balance excluding any transfers between the components of the fund balance, where applicable, that represents less than 10 percent of their annual expenditures. This excluded amount shall not exceed 5 percent of a charter school’s total revenue in any one year. Nothing in this paragraph is intended to be a cap on reserves for economic uncertainties.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
If applicable, explain on the funding determination form the purposes for which the governing body designated reserve for economic uncertainties that is a component part of unrestricted net assets or unassigned fund balance, where applicable, are being maintained at a level that is 10 percent or more of the charter school’s annual expenditures.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A charter school may exclude restricted grants and funds that are not spent for instruction and related services, appropriated to the charter school for the first time after July 1, 2025, from the calculation of the percentage of total revenue spent on instruction and related services. The result of the exclusion of a restricted grant and fund shall not have an adverse impact on instruction and related services compared to that expended in the prior year.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A charter school may exclude restricted grants and funds that are not spent for certificated staff salaries and benefits, appropriated to the charter school for the first time after July 1, 2025, from the calculation of the percentage of total public revenue spent on certificated staff salaries and benefits. The result of the exclusion of a restricted grant and fund shall not have an adverse impact on certificated staff salaries and benefits
compared to that expended in the prior year.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Exclude from the total revenue, or total public revenue, proceeds from loans for facilities and state apportionment deferrals.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section does not authorize the state board to adjust the amount of funding a charter school receives on the basis of average daily attendance generated through classroom-based instruction, as defined for purposes of calculating average daily attendance for classroom-based instruction apportionments by paragraph (1) of subdivision (d) of Section 47612.5.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Each charter school offering flex-based instruction shall, in each report provided to the Superintendent for apportionment purposes, identify the portion of its average daily attendance that is generated through flex-based instruction.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Notwithstanding any other law, charter schools shall be subject, with regard to subdivisions (c) and (d) of Section 47612.5 and this section, to audits conducted pursuant to Section 41020.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of submitting a determination of funding request, the department shall issue a form or set of forms to collect the information necessary to implement this section. The form or forms shall be developed by the department in consultation with the Advisory Commission on Charter Schools. The form or forms shall require the approval of the state board and comply with applicable provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
A charter school may submit a request for funding determination up to one year prior to the
fiscal year in which the request will initially be effective. The funding determination for a charter school that is part of a network of flex-based charter schools shall not exceed five years, except as allowed in accordance with subdivision (n) or as required in accordance with paragraph (6) of subdivision (d).
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Not more than 120 days following the receipt of a complete determination of funding request, the department shall present the request and the recommendation of the Advisory Commission on Charter Schools to the state board.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
If, during the effective period of a determination of funding, a charter school wishes to seek a higher or lower determination of funding, it shall do so by the filing of a new determination of funding request. During the effective period of a charter school’s determination of funding, no more than one additional determination of funding
request, which would replace the determination of funding then in effect, may be submitted by the charter school in the same fiscal year.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In any year that the annual charter school financial and compliance audit confirms that a flex-based charter school that is not part of a network, or a flex-based charter school that is part of a network and audited pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 41020.6, has met the criteria and thresholds established to receive 100 percent funding in paragraph (3) of subdivision (c), and the charter school, is currently funded at 100 percent pursuant to the most recent funding determination, the school shall not be required to submit a funding determination form as otherwise required in this section and the school shall receive 100 percent funding for the following year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In any year
that the annual charter school financial and compliance audit confirms that a charter school has met the criteria and thresholds established to receive 85 percent funding pursuant to paragraph (2) of subdivision (c), and the charter school, is currently funded at 85 percent, the school shall not be required to submit a funding determination form as otherwise required in this section and the school shall receive 85 percent funding for the following year.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In any year that the annual charter school financial and compliance audit confirms that a charter school has met the criteria and thresholds established to receive 70 percent funding pursuant to paragraph (1) of subdivision (c), and the charter school, is currently funded at 70 percent, the school shall not be required to submit a funding determination form as otherwise required in this section and the school shall receive 70 percent funding for the following year.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding paragraphs (1), (2), and (3), if the state board finds that the audit makes a finding that the charter school is not meeting the thresholds for the funding determination approved by the state board, or other information received by the department, or that the program offered by the charter school is not conducted for the instructional benefit of the pupil and substantially dedicated to that function, the state board shall notify the school that it is required to submit a funding determination form in accordance with this section. If the state board finds that the audit makes a finding that any charter school in a network of flex-based charter schools is not meeting the thresholds for the funding determination approved by the state board the state board shall notify all the schools in the network that they are required to submit a funding determination form in accordance with this section. A school shall submit a funding
determination in accordance with this section within 120 days of receiving a notice under this paragraph.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
Any determination of funding request approved by the state board shall be effective commencing in the fiscal year following the state board’s determination.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Certificated staff salaries and benefits” means the total expenditures for salaries and benefits for all employees who possess a valid teaching certificate, permit, or other document equivalent to that which a teacher in other public schools would be required to hold issued by the Commission on Teacher Credentialing and who work in the charter school in a position required to provide direct instruction or direct instructional support to pupils. Certificated salaries and benefits shall
also include the costs of contracted services for certificated personnel for direct instruction or direct instructional support provided the contract identifies these costs.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Flex-based instruction” has the same meaning as defined in paragraph (2) of subdivision (e) of Section 47612.5.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Instruction and related services” means all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Activities dealing with the interaction between teaching staff and pupils, without regard to the instructional location or medium.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Services that provide administrative, technical, and logistical support to facilitate and enhance instruction.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Services in direct support of pupils.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
School-sponsored extracurricular or cocurricular activities designed to provide motivation and enjoyment and improvement of skills.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Instructional materials, supplies, and equipment.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Instructional facilities as described in paragraph (2) of subdivision (e).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Network of flex-based charter schools” has the same meaning as defined in subdivision (b) of Section 47634.3.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Pupil-teacher ratio” has the same meaning as described in Section 51745.6.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Total public revenue” means total federal and state funds, local in-lieu property taxes, except as excluded in subdivision (e), and Public Charter School Grant Program
start-up, implementation, and dissemination grant funds.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Total revenue” means total federal, state, and local funds, and local in-lieu property taxes, except as excluded in subdivision (e).
</html:p>
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<ns0:BillSection id="id_FCDEBB9D-719D-45CB-83B3-473A3624591B">
<ns0:Num>SEC. 43.</ns0:Num>
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Section 47634.3 is added to the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_AD9D8569-D06F-4D23-952E-96B25EFA7757">
<ns0:Num>47634.3.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Beginning with the 2027–28 school year, the department shall annually develop a list that identifies networks of flex-based charter schools, as described in this section, based on data from the prior school year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, a “network of flex-based charter schools” means two or more flex-based charter schools, as defined pursuant to paragraph (2) of subdivision (e) of Section 47612.5, that meet one or more of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Have a shared governance or management structure, including having supervisors and managers who typically function on a multi school level and oversee, evaluate, control teaching assignments, control class rosters, or discipline
teachers across multiple schools.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Are under the control of the same corporate or legal entity, or are controlled by legal entities wherein one or more of the corporate directors are appointed or elected by another common entity.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Have two or more flex-based charter schools that have been determined by the Public Employment Relations Board to constitute either a single employer or joint employer as of July 1, 2025.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_027B1DC3-AA78-4B1F-B364-2B1227CEEF36">
<ns0:Num>SEC. 44.</ns0:Num>
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Article 7 (commencing with Section 47670) is added to Chapter 6 of Part 26.8 of Division 4 of Title 2 of the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_59F5BAD8-E11B-4858-897E-64E6BE439BEF" type="ARTICLE">
<ns0:Num>7.</ns0:Num>
<ns0:LawHeadingVersion id="id_CE947342-5E85-442A-9421-F0A7DA81074F">
<ns0:LawHeadingText>Chartering Authority Grant Programs</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_F102366D-AF2E-47F3-8685-30001672E36B">
<ns0:Num>47670.</ns0:Num>
<ns0:LawSectionVersion id="id_8C920A5A-D586-47FD-AFCD-1BF16EF0DE10">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The Charter Authorizer Mentor Grant Program is hereby established.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The California Collaborative for Educational Excellence shall administer the program to provide competitive grants to up to five qualified applicants to enable applicants to provide support and technical assistance to eligible chartering authorities.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The California Collaborative for Educational Excellence shall establish criteria and a process to select qualified applicants, including, but not limited to, local educational agencies and nonprofit organizations. The criteria shall include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Evidence of organizational capacity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Authorizing experience either as a chartering authority or in support of a chartering authority.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Evidence in one or more areas of authorizing activities, including, but not limited to, new petition review, renewal, appeals of petition or renewal denials site visits, material revisions, teacher misassignment monitoring, notices of violation, and budget review.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Experience with a diverse authorizing portfolio across numerous metrics, including oversight of diverse charters such as both classroom-based and flex-based charter schools, schools in different geographic areas, such as rural and urban, schools with varying enrollments, dependent and independent charter schools, charter-only special education local plan area membership, and dependent and
independent operated charter schools that are not operated by, and that are operated by, an entity managing a charter school.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Evidence of providing high-quality technical assistance to charter schools and chartering authorities, including a clear description of at least three years of experience with delivering professional development to chartering authorities and charter schools, including the frequency, format, topics, target audience, and number of participants, and if appropriate, testimonials from current or prior clients. Such evidence shall include documentation of how the organization has emphasized a vigorous transition from a rule-based, to a performance-based accountability system and in support of innovation in school design and operations.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A clear description of how the applicant plans to deliver technical assistance to eligible chartering authorities
throughout the state, including the frequency, format, topics, target audience, and number of participants, and shall include sample documents such as annual schedules and presentation agendas and samples of the technical assistance category, including:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
State and federal statutory and regulatory requirements, oversight practices, and expectations.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Compliance with applicable law, charter authorizing and oversight. Topics may include, but are not limited to, transformation from rule-based to performance-based accountability systems, minimizing excessive or unnecessarily burdensome authorizing and oversight practices, oversight of charter schools providing high school or career technical education programs, fiscal integrity and fraud prevention, and schools serving English Learners, pupils with disabilities, and socioeconomically disadvantaged pupils.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Evidence of personnel resources that will be sufficient to implement the conditions of the grant.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The California Collaborative for Educational Excellence may award up to five grants for expenditure over a three-year period and may consider the unique strengths of each applicant in order to ensure the pool of selected applicants reflect a broad range of expertise in oversight and a range of charter educational models, governance, structures, size, and locations, and a broad range of approaches to authorizing.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The California Collaborative for Educational Excellence shall assign applicants who are awarded a grant with a balanced caseload of eligible chartering authorities to provide technical assistance to.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Eligible
chartering authorities shall be chartering authorities who have had two consecutive years of two or more findings related to charter oversight. Eligible chartering authorities shall be required to receive two years of technical assistance, at no cost, pursuant to this section, from an applicant who has received a grant pursuant to this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A school district superintendent for a chartering authority that is a school district or a county superintendent of schools for a chartering authority that is a county office of education shall annually notify the California Collaborative for Educational Excellence of chartering authorities under its jurisdiction that have met the eligibility conditions for assistance.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An eligible chartering authority who has met the conditions for assistance shall not be required to pay for the assistance.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
An eligible chartering authority who has met the conditions for assistance may choose between the top two selected applicants that the California Collaborative for Educational Excellence has selected to provide technical assistance to the eligible chartering authority.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An eligible chartering authority shall not authorize new flex-based charter schools during the two years of required technical assistance, except as provided in paragraph (2). An eligible chartering authority may continue to authorize classroom-based charter schools during the two years of required technical assistance.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If a flex-based charter school receives an audit after the first year of technical assistance with no findings, it shall continue to receive its second year of technical assistance but may authorize new
flex-based charter schools for the duration of its technical assistance period.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Notwithstanding any other law, a petitioner for a flex-based charter school seeking to establish a new flex-based charter school in the geographic boundaries of an eligible chartering authority that is prevented from authorizing a new flex-based charter school because the chartering authority is receiving required technical assistance may file its charter petition to establish a new charter school with another school district within the county or with the county board of education. If the petitioner is unsuccessful at getting a charter approved by another school district or the county board of education in the same county pursuant to this subdivision or if there is only one school district in the county, the petitioner may submit the charter petition to a school district or county board of education in an adjacent county.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Notwithstanding any other law, any new charter school approved pursuant to Chapter 2 (commencing with Section 47605) shall be allowed to establish facilities in both the geographic boundaries of its chartering authority as well as in the geographic boundaries of the eligible chartering authority undergoing technical assistance. The new charter school shall have the option to remain with the chartering authority that approved its petition under subdivision (h) and shall not be forced to discontinue use of any of its approved facilities.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Notwithstanding any other law, a flex-based charter school operating within the geographic boundaries of an eligible chartering authority that is required to receive technical assistance under this section shall be allowed to continue to hold and utilize facilities in the geographic boundaries of the eligible chartering authority receiving
technical assistance, add additional facilities in the geographic boundaries of the eligible chartering authority through a material revision, and move their facilities within those geographic boundaries.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Subject to capacity as determined by the California Collaborative for Educational Excellence, a chartering authority not meeting the eligibility conditions of subdivision (e) may request assistance, subject to reasonable fees determined by the California Collaborative for Educational Excellence. If selected to receive assistance, the California Collaborative for Educational Excellence shall select a mentor among the qualified applicants to provide the technical assistance.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_9AE1F6BA-2B12-4DBF-9BD8-834D2B8C9AEA">
<ns0:Num>47671.</ns0:Num>
<ns0:LawSectionVersion id="id_3AA55AE6-BD1B-4E98-A01E-0660278FBC51">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Charter School Authorizer Grant Program is hereby established within the department.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Pursuant to the Charter School Authorizer Grant Program, the department shall provide grants to chartering authorities with charter schools in operation as of January 1, 2026, for purposes of assisting with costs associated with the increased oversight responsibilities required pursuant to subdivisions (c) and (d) of Section 47604.32, as amended by Senate Bill 414 of the 2025–26 Regular Session.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Of the funds made available for purposes of this program, one-half shall be used for the program described in subdivision (d) and one-half for the program described in subdivision (e).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Within the program established by subdivision (a), the Charter School Authorizer Formula Grant Program shall be established for purposes of providing grants to chartering authorities with charter schools in operation as of January 1, 2025. The grants shall be calculated on a per-pupil basis of the charter school pupils approved by the chartering authority, as determined by the 2025–26 second principal apportionment average daily attendance of charter schools.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Grants provided to chartering authorities pursuant to paragraph (1) that are not expended as of June 30, 2029, shall be returned to the department. The department shall apply the returned unexpended funds of the Charter School Authorizer Formula Grant Program to the Charter School Authorizer Excess Costs Grant Program described in subdivision (e), and the department shall distribute those funds
on a prorated basis to chartering authorities that did not have their full requests funded by February 1, 2029.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Grants provided to chartering authorities pursuant to paragraph (1) shall only be used for expenditures related to the increased oversight responsibilities required of chartering authorities established in subdivisions (c) and (d) of Section 47604.32, as amended by Senate Bill 414 of the 2025–26 Regular Session.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Within the program established by subdivision (a), the Charter School Authorizer Excess Costs Grant Program is established to provide grants to chartering authorities that incur excess costs due to the increased oversight responsibilities required of the chartering authority established in subdivisions (c) and (d) of Section 47604.32, as amended by Senate Bill 414 of the 2025–26 Regular Session, that incur costs beyond the amount
of the formula grant provided pursuant to subdivision (d), and costs beyond the 1 percent oversight fee pursuant to Section 47613.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall notify chartering authorities of the Charter School Authorizer Excess Costs Grant Program by October 1, 2028. In order for eligible chartering authorities to participate in the grant program, the chartering authority shall notify the department by November 30, 2028, of its intention to seek a grant for this purpose. This notification shall be in a format prescribed by the Superintendent, and shall include an itemized list of excess costs incurred between January 1, 2026, and November 30, 2028. For a chartering authority that is a school district, the notification shall be certified by the county superintendent of schools. For a chartering authority that is a county office of education, the notification shall be certified by the department. The department shall apportion Charter School
Authorizer Excess Costs Grant Program grants to eligible chartering authorities no later than February 1, 2029. All grant funds which are not reserved by a chartering authority by June 30, 2031, shall be reverted to the Proposition 98 Reversion Account within the General Fund, upon notification by the Superintendent to the Controller's office. Any funds returned from the Charter School Authorizer Formula Grant Program shall be used to increase reimbursement of Charter School Authorizer Excess Costs Grant Program.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the total excess costs from all applicants exceeds the amount available for the grants under this subdivision, the department shall prorate the grants to chartering authorities.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_EE432738-9616-45CA-B13C-1F47DD647F44">
<ns0:Num>SEC. 45.</ns0:Num>
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Section 51744 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_E991D0E5-5CFB-4F48-959C-DE3C7586FF5C">
<ns0:Num>51744.</ns0:Num>
<ns0:LawSectionVersion id="id_6B3F886D-0D5F-4B7C-90D2-96F18DB7A566">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares that by offering a range of quality educational options, including classroom-based, nonclassroom-based, hybrid, and flex-based programs, local educational agencies can better tailor instruction to pupils, thereby improving academic outcomes while maximizing enrollment.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is the intent of the Legislature that local educational agencies offer educational programs that best serve the needs of their pupils.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
It is also the intent of the Legislature to encourage local educational agencies, when adopting a written policy pursuant to Section 51747 or 51749.5, to consider offering more than one independent study model for short- and long-term placements in
accordance with Sections 51747, 51747.5, and 51749.6.
</html:p>
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<ns0:BillSection id="id_21799898-648F-41F8-A6CE-2B33674F2365">
<ns0:Num>SEC. 46.</ns0:Num>
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Section 51745.6 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_8C370E1D-AA48-47DE-92C6-C3DC65BFE6B5">
<ns0:Num>51745.6.</ns0:Num>
<ns0:LawSectionVersion id="id_D2AE18F1-23F2-4EAD-84CC-2DF0BBD0C181">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as provided in paragraph (2), the ratio of average daily attendance for independent study pupils 18 years of age or less for a school district or county office of education, and for independent study pupils regardless of age for a charter school, to full-time equivalent certificated employees responsible for independent study, calculated as specified by the department, shall comply with one of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
It shall not exceed the equivalent ratio of average daily attendance to full-time equivalent certificated employees providing instruction in other educational programs operated by the school district, county office of education, or charter school.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
It shall not exceed the equivalent prior year ratio of average daily attendance to full-time equivalent certificated employees for all other educational programs operated by the high school or unified school district with the largest average daily attendance of pupils in the county or the collectively bargained alternative ratio used by that high school or unified school district in the prior year. In the case of a charter school serving pupils in more than one county, the ratio shall not exceed the ratio of the high school or unified school district with the average daily attendance of pupils in the county in which the chartering authority is located. The computation of the ratios shall be performed annually by the reporting agency at the time of, and in connection with, the second principal apportionment report to the Superintendent. A high school or unified school district shall annually report the attendance ratios to the county office of
education by a date established by the county office of education. The county office of education shall annually report the attendance ratios on their internet website.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
It shall not exceed a fixed average-daily-attendance-to-certificated-employee ratio of 25 to 1, or a fixed ratio of less than 25 pupils per certificated employee.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), a new higher or lower ratio for all other educational programs offered by a school district, county office of education, or charter school may be negotiated in a collective bargaining agreement, or a memorandum of understanding is entered into that indicates an existing collective bargaining agreement contains an alternative average daily attendance ratio.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Only those units of average daily attendance for independent study that reflect a
pupil-teacher ratio that does not exceed the ratios described in subdivision (a) shall be eligible for apportionment pursuant to Section 2575 for county offices of education and Section 42238.05 for school districts. This section does not prevent a school district or county office of education from serving additional units of average daily attendance greater than the ratios described in subdivision (a), except that those additional units shall not be funded pursuant to Section 2575 or 42238.05, as applicable. If a school district, charter school, or county office of education has a memorandum of understanding to provide instruction in coordination with the school district, charter school, or county office of education at which a pupil is enrolled, the ratios that shall apply for purposes of this paragraph are the ratios for the local educational agency providing the independent study program to the pupil pursuant to Section 51749.5.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The
calculations performed for purposes of this section shall not include either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The average daily attendance generated by special education pupils enrolled in special day classes on a full-time basis, or the teachers of those classes.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The average daily attendance or teachers in necessary small schools that are eligible to receive funding pursuant to Article 4 (commencing with Section 42280) of Chapter 7 of Part 24 of Division 3.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Commencing with the 2021–22 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall incorporate verification of the ratios included in this section, including fiscal penalties for noncompliance as described in this section.
</html:p>
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<ns0:BillSection id="id_918A8425-8391-4BBA-B8D7-0E61B5733A29">
<ns0:Num>SEC. 47.</ns0:Num>
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Section 51747 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_D2315E38-9E47-48E8-B51E-E638EC431F95">
<ns0:Num>51747.</ns0:Num>
<ns0:LawSectionVersion id="id_50D3E4A5-0F12-42C1-AF98-81741890B477">
<ns0:Content>
<html:p>A local educational agency shall not be eligible to receive apportionments for independent study by pupils, regardless of age, unless it has adopted written policies, and has implemented those policies, pursuant to rules and regulations adopted by the Superintendent, that include, but are not limited to, all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The maximum length of time, by grade level and type of program, that may elapse between the time an independent study assignment is made and the date by which the pupil must complete the assigned work.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The level of satisfactory educational progress and the number of missed assignments that will be allowed before an evaluation is conducted to determine whether it is in
the best interests of the pupil to remain in independent study, or whether the pupil should return to the regular school program. A written record of the findings of any evaluation made pursuant to this subdivision shall be treated as a mandatory interim pupil record. The record shall be maintained for a period of three years from the date of the evaluation and, if the pupil transfers to another California public school, the record shall be forwarded to that school.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Satisfactory educational progress shall be determined based on all of the following indicators:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The pupil’s achievement and engagement in the independent study program, as indicated by the pupil’s performance on applicable pupil-level measures of pupil achievement and pupil engagement set forth in paragraphs (4) and (5) of subdivision (d) of Section 52060.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The completion of assignments, assessments, or other indicators that evidence that the pupil is working on assignments.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Learning required concepts, as determined by the supervising teacher.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Progressing toward successful completion of the course of study or individual course, as determined by the supervising teacher.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The provision of content aligned to grade level standards that is substantially equivalent to in-person instruction. For high schools, this shall include access to all courses offered by the local educational agency for graduation and approved by the University of California or the California State University as creditable under the A-G admissions criteria.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Procedures for tiered reengagement strategies for
all pupils who are not generating attendance for more than 10 percent of required minimum instructional time over four continuous weeks of a local educational agency’s approved instructional calendar, pupils found not participatory in synchronous instructional offerings pursuant to Section 51747.5 for more than 50 percent of the scheduled times of synchronous instruction in a school month as applicable by grade span, or pupils who are in violation of the written agreement pursuant to subdivision (g). These procedures shall include local programs intended to address chronic absenteeism, as applicable, with at least all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Verification of current contact information for each enrolled pupil.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notification to parents or guardians of lack of participation within one schoolday of the recording of a nonattendance day or lack of participation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A plan for outreach from the school to determine pupil needs, including connection with health and social services as necessary.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A clear standard for requiring a pupil-parent-educator conference to review a pupil’s written agreement, and reconsider the independent study program’s impact on the pupil’s achievement and well-being, consistent with the policies adopted pursuant to paragraph (4) of subdivision (g).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For pupils in transitional kindergarten and grades 1 to 3, inclusive, a plan to provide opportunities for daily synchronous instruction for all pupils throughout the school year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For pupils in grades 4 to 8, inclusive, a plan to provide opportunities for both daily live interaction and at least weekly
synchronous instruction for all pupils throughout the school year.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For pupils in grades 9 to 12, inclusive, a plan to provide opportunities for at least weekly synchronous instruction for all pupils throughout the school year.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
A plan to transition pupils whose families wish to return to in-person instruction from independent study expeditiously, and, in no case, later than five instructional days.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A requirement that a current written agreement for each independent study pupil shall be maintained on file, including, but not limited to, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The manner, time, frequency, and place for submitting a pupil’s assignments, for reporting the pupil’s academic progress, and for communicating with a pupil’s parent or guardian
regarding a pupil’s academic progress.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The objectives and methods of study for the pupil’s work, and the methods used to evaluate that work.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The specific resources, including materials and personnel, that will be made available to the pupil. These resources shall include confirming or providing access to all pupils to the connectivity and devices adequate to participate in the educational program and complete assigned work.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A statement of the policies adopted pursuant to subdivisions (a) and (b) regarding the maximum length of time allowed between the assignment and the completion of a pupil’s assigned work, the level of satisfactory educational progress, and the number of missed assignments allowed before an evaluation of whether or not the pupil should be allowed to continue in independent study.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The duration of the independent study agreement, including the beginning and ending dates for the pupil’s participation in independent study under the agreement. No independent study agreement shall be valid for any period longer than one school year.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A statement of the number of course credits or, for the elementary grades, other measures of academic accomplishment appropriate to the agreement, to be earned by the pupil upon completion.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
A statement detailing the academic and other supports that will be provided to address the needs of pupils who are not performing at grade level, or need support in other areas, such as English learners, individuals with exceptional needs in order to be consistent with the pupil’s individualized education program or plan pursuant to Section 504 of the federal Rehabilitation
Act of 1973 (29 U.S.C. Sec. 794), pupils in foster care or experiencing homelessness, and pupils requiring mental health supports.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The inclusion of a statement in each independent study agreement that independent study is an optional educational alternative in which no pupil may be required to participate. In the case of a pupil who is referred or assigned to any school, class, or program pursuant to Section 48915 or 48917, the agreement also shall include the statement that instruction may be provided to the pupil through independent study only if the pupil is offered the alternative of classroom instruction.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For a pupil participating in an independent study program that is scheduled for more than 15 schooldays, each written agreement shall be signed, before the commencement of independent study, by the pupil, the
pupil’s parent, legal guardian, or caregiver, if the pupil is less than 18 years of age, the certificated employee who has been designated as having responsibility for the general supervision of independent study, and the certificated employee designated as having responsibility for the special education programming of the pupil, as applicable.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For a pupil participating in an independent study program that is scheduled for 15 schooldays or fewer, each written agreement shall be signed, during the school year in which the independent study program takes place, by the pupil, the pupil’s parent, legal guardian, or caregiver, if the pupil is less than 18 years of age, the certificated employee who has been designated as having responsibility for the general supervision of independent study, and the certificated employee designated as having responsibility for the special education programming of the pupil, as applicable. The written agreement
may be signed at any time during the school year, but it is the intent of the Legislature that parents or guardians of pupils be provided the agreement at or before the beginning of the school year.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For purposes of this paragraph, “caregiver” means a person who has met the requirements of Part 1.5 (commencing with Section 6550) of Division 11 of the Family Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Signed written agreements, supplemental agreements, assignment records, work samples, and attendance records assessing time value of work or evidence that an instructional activity occurred may be maintained as an electronic file.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For purposes of this section, an electronic file includes a computer or electronic stored image of an original document, including, but not limited to, portable document format (PDF), JPEG, or other digital image file
type, that may be sent via fax machine, email, or other electronic means.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Either an original document or an electronic file of the original document is allowable documentation for auditing purposes.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Written agreements may be signed using an electronic signature that complies with state and federal standards, as determined by the department, that may be a marking that is either computer generated or produced by electronic means and is intended by the signatory to have the same effect as a handwritten signature. The use of an electronic signature shall have the same force and effect as the use of a manual signature if the requirements for digital signatures and their acceptable technology, as provided in Section 16.5 of the Government Code and in Chapter 10 (commencing with Section 22000) of Division 7 of Title 2 of the California Code of Regulations, are satisfied.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), for the 2021–22 school year only, a local educational agency shall obtain a signed written agreement for an independent study program of any length of time from the pupil, or the pupil’s parent or legal guardian if the pupil is less than 18 years of age, the certificated employee who has been designated as having responsibility for the general supervision of independent study, and the certificated employee designated as having responsibility for the special education programming of the pupil, as applicable, no later than 30 days after the first day of instruction in an independent study program or October 15, whichever date comes later. This subparagraph does not relieve a local educational agency from the obligation to comply with the requirements of this article, as amended by the act adding this subparagraph, upon commencement of instruction for a participating pupil in the 2021–22 school year.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For the 2021–22 school year only, school districts and county offices of education shall notify the parents and guardians of all enrolled pupils of their options to enroll their child in in-person instruction or independent study during the 2021–22 school year. This notice shall include written information on the local educational agency’s internet website, including, but not limited to, the right to request a pupil-parent-educator conference meeting before enrollment pursuant to this section, pupil rights regarding procedures for enrolling, disenrolling, and reenrolling in independent study, and the synchronous and asynchronous instructional time that a pupil will have access to as part of independent study. If 15 percent or more of the pupils enrolled in a local educational agency that provides instruction in transitional kindergarten, kindergarten, or any of grades 1 to 12, inclusive, speak a single primary
language other than English, as determined from the census data submitted to the department pursuant to Section 52164 in the preceding year, the written information shall, in addition to being written in English, be written in the primary language.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Before signing a written agreement pursuant to this section, the parent or guardian of a pupil may request that the local educational agency conduct a telephone, videoconference, or in-person pupil-parent-educator conference or other school meeting during which the pupil, parent or guardian, and, if requested by the pupil or parent, an education advocate, may ask questions about the educational options, including which curriculum offerings and nonacademic supports will be available to the pupil in independent study, before making the decision about enrollment or disenrollment in the various options for learning.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Subdivisions
(d), (e), and (f) shall not apply to pupils that participate in an independent study program for fewer than 16 schooldays in a school year and pupils enrolled in a comprehensive school for classroom-based instruction who, under the care of appropriately licensed professionals, participate in independent study due to necessary medical treatments or inpatient treatment for mental health care or substance abuse. Local educational agencies shall obtain evidence from appropriately licensed professionals of the need for pupils to participate in independent study pursuant to this subdivision.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding paragraph (8) of subdivision (g) of this section, paragraph (1) of subdivision (e) of Section 46300, and subdivision (d) of Section 51745, for the 2021–22 school year only, a local educational agency shall be eligible to receive apportionments for independent study for pupils that are subject to quarantine for
exposure to, or infection with, COVID-19 pursuant to local or state health guidance, and the pupil cannot participate in classroom-based instruction due to the quarantine, and for school closures due to COVID-19 pursuant to subdivision (c) of Section 41422. Local educational agencies shall receive apportionment for these pupils for all schooldays that they participate in and meet all other apportionment requirements of independent study while in quarantine or during a school closure.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding Section 47612.5, for the 2021–22 fiscal year, a classroom-based charter school that provides an independent study program pursuant to this article for pupils that are subject to quarantine for exposure to, or infection with, COVID-19 pursuant to local or state health guidance, and the pupil cannot participate in classroom-based instruction due to the quarantine, shall not attribute quarantine-based independent study average daily attendance
required pursuant to law for a flex-based charter school pursuant to Section 47612.5, as that section read on December 31, 2025, and shall not be required to submit a request for a funding determination as a result of providing independent study to quarantined pupils.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This subdivision shall apply only to pupils participating in independent study due to quarantine who do not have the option of in-person instruction, and only for the period of quarantine mandated pursuant to state or local health guidance or order. This subdivision shall not apply to classroom-based charter schools offering independent study to pupils whose parents or guardians have requested independent study pursuant to subdivision (a) of Section 51745.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Commencing with the 2021–22 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall
incorporate verification of the adoption of the policies required pursuant to this section, including loss of apportionment for independent study for local educational agencies found to be noncompliant, unless compliance verification for those policies is already included in the audit guide.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
The provisions of this section are not subject to waiver by the state board, by the Superintendent, or under any provision of Part 26.8 (commencing with Section 47600).
</html:p>
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<ns0:Num>SEC. 48.</ns0:Num>
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Section 51747.5 of the
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is amended to read:
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<ns0:Num>51747.5.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The independent study by each pupil shall be coordinated, evaluated, and, notwithstanding subdivision (a) of Section 46300, shall be under the general supervision of an employee of the local educational agency who possesses a valid certification document pursuant to Section 44865 or an emergency credential pursuant to Section 44300, registered as required by law.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
A local educational agency may claim apportionment credit for independent study only to the extent of the time value of pupil work products, as personally judged in each instance by a certificated teacher employed by the local educational agency, or the combined time value of pupil work product and pupil participation in synchronous instruction pursuant to paragraph (2).
It is the intent of the Legislature that teachers be given access to digital assignment tracking systems to reduce workload associated with evaluating and accounting for pupil work and synchronous instruction participation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of computing average daily attendance for each pupil enrolled in independent study pursuant to Section 51747, the following computations shall apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For each schoolday, add the combined equivalent daily time value of pupil work products, as personally judged by a certificated employee of the local educational agency.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For purposes of this section, pupil work products may include the daily time value spent by a pupil engaged in asynchronous instruction, including work completed on an online or computer-based instructional activity, regardless of
whether pupil work products are produced, if the computer program documents pupil participation. The local educational agency shall maintain documentation of hours or fraction of an hour of both pupil work products and the time that the pupil engaged in asynchronous instruction.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
Except as provided in subclause (II), a local educational agency shall maintain one completed pupil work product in each of the subjects of English language arts, mathematics, history-social science, and science for a pupil enrolled in independent study for each of three attendance periods as follows:
</html:p>
<html:p>
(ia)
<html:span class="EnSpace"/>
The beginning of the school year through the first attendance period.
</html:p>
<html:p>
(ib)
<html:span class="EnSpace"/>
The day following the end of the first attendance period to the end of the school’s second attendance period.
</html:p>
<html:p>
(ic)
<html:span class="EnSpace"/>
The day following the end of the school’s second attendance period to the end of the school year.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Notwithstanding subclause (I), if a pupil is not enrolled in one or more of the subjects identified in subclause (I) during an attendance period, the local educational agency shall maintain four completed pupil work products per attendance period that are representative of the pupil’s course schedule.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For each schoolday, add the combined daily instructional minutes a pupil participated in synchronous instruction, as defined by subdivision (d) of Section 51745.5 and offered pursuant to subdivision (e) of Section 51747, for which evidence of pupil participation is furnished and maintained. Evidence of pupil participation may include, but is not limited to, pupil work produced or
performed, or documentation that the pupil participated in an instructional period either visually or verbally, as verified by a certificated employee and maintained by the local educational agency for each hour or fraction thereof of the synchronous instructional offering.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Pursuant to paragraph (1), a local educational agency may claim apportionment credit in this paragraph insofar as a pupil’s participation in a synchronous instructional offering augments the time value of pupil work product.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For each schoolday, add the sum of subparagraphs (A) and (B). If the sum of subparagraphs (A) and (B) meets the applicable minimum schoolday requirements for each schoolday, and all other requirements in this section have been met, each schoolday shall be credited as up to one schoolday of attendance.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The average
daily attendance computed pursuant to this subdivision shall not result in more than one unit of average daily attendance per pupil.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Notwithstanding any other law, average daily attendance computed for pupils enrolled in independent study shall not be credited with average daily attendance other than what is specified in this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A local educational agency shall document each pupil’s participation in live interaction and synchronous instruction pursuant to Section 51747 on each schoolday, as applicable, in whole or in part, for which live interaction or synchronous instruction is provided as part of the independent study program. A pupil who does not participate in scheduled live interaction or synchronous instruction shall be documented as nonparticipatory for that schoolday for purposes of pupil participation reporting and tiered reengagement pursuant to Section
51747.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A local educational agency shall maintain written or computer-based evidence of pupil engagement that includes, but is not limited to, a grade book or summary document that, for each class, lists all assignments, assessments, and associated grades.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, a local educational agency shall not be required to sign and date pupil work products when assessing the time value of pupil work products for apportionment purposes.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Commencing with the 2021–22 fiscal year Guide for Annual Audits of K–12 Local Education Agencies and State Compliance Reporting, the Controller shall incorporate compliance reviews for subdivisions (a) to (d), inclusive, unless compliance verification for those subdivisions is already included in the audit guide. Findings of noncompliance shall result in the
loss of apportionment equal to the average daily attendance impacted by the noncompliance.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The provisions of this section are not subject to waiver by the state board, by the Superintendent, or under any provision of Part 26.8 (commencing with Section 47600).
</html:p>
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<ns0:Num>SEC. 49.</ns0:Num>
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Article 11 (commencing with Section 51820) is added to Chapter 5 of Part 28 of Division 4 of Title 2 of the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Num>11.</ns0:Num>
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<ns0:LawHeadingText>Audit Provisions</ns0:LawHeadingText>
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<ns0:Num>51820.</ns0:Num>
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<ns0:Content>
<html:p>The Controller shall include the instructions necessary in the audit guide required by Section 14502.1 to include average daily attendance materiality levels for compliance testing in accordance with Generally Accepted Auditing Standards.</html:p>
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<ns0:Num>51821.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Controller shall include in the audit guide required by Section 14502.1 the instructions necessary to do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Include a procedure to determine if the local educational agency has a relationship with a related entity with financial, economic, or controlling membership interests. If the local educational agency is determined to have a relationship with a related party, require the auditor to evaluate the level of the relationship to determine if it is material. For material relationships, require the audit guide to ensure compliance of the related party to disclosure rules of the Financial Accounting Standards Board Accounting Standards Codification and other generally accepted accounting principles.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ensure the local educational agency complies with constraints regarding when financial statement consolidation is required, permitted, and prohibited.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Procedures created pursuant to this section shall be no more burdensome than what is provided for in Generally Accepted Auditing Standards.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_ACE3F176-DCFE-42BE-9B37-DE16719A58AD">
<ns0:Num>51822.</ns0:Num>
<ns0:LawSectionVersion id="id_4FC0FC58-E46D-46EE-9FB1-EE984594496D">
<ns0:Content>
<html:p>Notwithstanding any other law, beginning in the 2027–28 fiscal year, for one or more charter schools consolidated within a school district or a county office of education, the chartering authority’s accounts and annual audit shall separately track and report financial data for each charter school.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_3A803BD3-19FA-4A56-9555-40A81E0F1F4F">
<ns0:Num>51823.</ns0:Num>
<ns0:LawSectionVersion id="id_7A9CC770-7F7B-4819-B481-8157FF4D1458">
<ns0:Content>
<html:p>The Controller shall include the instructions necessary in the audit guide required by Section 14502.1 to require a schedule of pupil enrollment and attendance that includes pupil enrollment and attendance by month and track, if applicable.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
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<ns0:BillSection id="id_08BD38B5-66AE-4E76-AC9B-2C8DFC89CDD7">
<ns0:Num>SEC. 50.</ns0:Num>
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Article 11.5 (commencing with Section 51827) is added to Chapter 5 of Part 28 of Division 4 of Title 2 of the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
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<ns0:Num>11.5.</ns0:Num>
<ns0:LawHeadingVersion id="id_19B893AD-0700-4581-BB77-D7E4A70FF06C">
<ns0:LawHeadingText>Local Educational Agency Contracting</ns0:LawHeadingText>
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<ns0:Num>51827.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
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On or before July 1, 2027, the governing board or body of a local educational agency shall adopt a policy for the local educational agency to comply with in order to evaluate and approve contractors. The policy shall include all of the following provisions:
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<html:p>
(1)
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A local educational agency shall not expend public funds for a contract unless the materials, programs, and activities are nonsectarian and comply with nondiscrimination provisions of state and federal law.
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<html:p>
(2)
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A local educational agency shall not expend public funds for a contract that pays for tuition or fees for a pupil at a private school that has filed an affidavit pursuant to Section 33190, except if required
pursuant to a pupil’s individualized education program.
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<html:p>
(3)
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(A)
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Financial payments or gifts shall not be offered by a local educational agency to a pupil, prospective pupil, or a pupil’s parent, guardian, or relative as an incentive for enrollment, referral, or retention.
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<html:p>
(B)
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A local educational agency shall not offer any financial incentives to employees to manipulate or falsify pupil attendance records and reports. Nothing in this subparagraph is intended to prohibit a local educational agency from offering financial incentives to employees for activities to encourage pupil engagement and re-engagement of chronically absent pupils, including, but not limited to, home visits.
</html:p>
<html:p>
(4)
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For a flex-based charter school, contracts shall itemize costs attributed to credentialed staff, administrative
staff, and instruction and related services with sufficient detail to determine a qualifying expense for purposes of a funding determination.
</html:p>
<html:p>
(5)
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A local educational agency shall ensure contracts reflect a reasonable market value.
</html:p>
<html:p>
(6)
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A local educational agency shall not purchase or contract for annual and season passes or membership to amusement or theme parks, zoos, or family entertainment activities, except that a local educational agency may purchase or contract for single-use admission, meals, and transportation that is aligned with educational opportunities and assignments by teachers, or for graduation, school celebrations, or co-curricular activities.
</html:p>
<html:p>
(7)
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A local educational agency shall only contract with an entity that has a business license or business certificate, where applicable, and has appropriate
insurance for the service being offered. Government agencies are not required to have a business license.
</html:p>
<html:p>
(8)
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A local educational agency shall not contract with a pupil or a pupil’s parent, guardian, or relative for services provided exclusively to that pupil, except for any of the following persons who are compensated by the local educational agency to provide school-related transportation for a pupil:
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<html:p>
(A)
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A parent or legal guardian.
</html:p>
<html:p>
(B)
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A relative, as defined in paragraph (2) of subdivision (c) of Section 361.3 of the Welfare and Institutions Code, or a nonrelative extended family member, as defined in Section 362.7 of the Welfare and Institutions Code.
</html:p>
<html:p>
(C)
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A court-appointed educational rights holder.
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<html:p>
(D)
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A court-appointed special advocate.
</html:p>
<html:p>
(9)
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A local educational agency shall not reimburse parents or guardians for any activities or services. This paragraph does not prohibit a local educational agency from reimbursing parents or guardians for activities or services for pupils with disabilities pursuant to an individualized education program and required by a legal settlement or agreement.
</html:p>
<html:p>
(10)
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A contractor who interacts with pupils outside the immediate supervision and control of a school employee shall have policies and procedures related to pupil and site safety, including in virtual settings, emergency response, and accident reporting that are reasonable for the instruction or activity.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
Contractor personnel interacting with pupils shall have a
valid criminal records summary as described in Section 45125.1.
</html:p>
<html:p>
(12)
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As part of a contract with a local educational agency, contractors shall provide evidence of qualification and expertise for the activities to be provided, in accordance with policies of the governing board or body of the local educational agency.
</html:p>
<html:p>
(13)
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As part of a contract with a local educational agency, contractors shall not charge fees to pupils or the pupil’s parent or legal guardian.
</html:p>
<html:p>
(b)
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Auditing of the approval of, and compliance with, policies enacted in accordance with subdivision (a) shall be included in the audit guide, Standards and Procedures for Audits of California K-12 Local Educational Agencies, described in Section 14502.1.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section does not supersede or
invalidate a contract that is in effect on or before July 1, 2027. If a contract is in effect on or before July 1, 2027, the contract shall remain in effect until the expiration of the contract or the parties to the agreement negotiate a successor agreement that will be operative after July 1, 2027, that complies with this section. A local educational agency shall not enter into a contract or make an amendment or other ancillary agreement to an existing contract on or after January 1, 2026, that would be operative after July 1, 2027, unless it would comply with this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “local educational agency” means a school district, educational joint powers authority, county office of education, or charter school.
</html:p>
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<ns0:BillSection id="id_291D9DA1-A6BE-45E2-96A2-3430EA33E0D8">
<ns0:Num>SEC. 51.</ns0:Num>
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Section 17518 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_84031FCC-4A3E-4109-96F5-E44351048BEE">
<ns0:Num>17518.</ns0:Num>
<ns0:LawSectionVersion id="id_AF496B12-0E3B-4F7E-AA29-CD64A39D3B90">
<ns0:Content>
<html:p>“Local agency” means any city, county, special district, authority, charter school, or other political subdivision of the state.</html:p>
</ns0:Content>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_4359D200-E244-4B7F-9504-B5CD9BC54E16">
<ns0:Num>SEC. 52.</ns0:Num>
<ns0:Content>
<html:p>The provisions of this bill are severable. If any provision of this bill or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_5F0F9E29-1BFE-48F2-AF96-53D1685A582D">
<ns0:Num>SEC. 53.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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