BILL NUMBER: SB 887AMENDED BILL TEXT AMENDED IN SENATE APRIL 25, 2011 AMENDED IN SENATE MARCH 24, 2011 INTRODUCED BY Senator Emmerson FEBRUARY 18, 2011 An act to add and repeal Article 1.5 (commencing with Section 42608) of Chapter 9 of Part 24 of Division 3 of Title 2 of the Education Code, relating to education finance, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST F SB 887, as amended, Emmerson. Education finance: Streamlined Temporary Mandate Process Act of 2011. (1) Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on a local government, including school districts and other local educational agencies, the state is required to provide a subvention of funds to reimburse the local government for the costs of the program or increased level of service, with specified exceptions. This bill would enact the Streamlined Temporary Mandate Process Act of 2011 to be a voluntary, temporary, streamlined alternative mandate reimbursement process for local educational agencies, as defined, to be in operation from the 2011-12 fiscal year to the 2014-15 fiscal year, inclusive. If a governing board of a local educational agency chooses not to participate in this process, this bill would require the governing board to explain the reasons for its decision at a duly noticed public meeting, thereby imposing a state-mandated local program. The bill would list 38 mandates currently applicable to local educational agencies that would be suspended for the 2011-12 fiscal year to the 2014-15 fiscal year, inclusive. The bill would further provide that a local educational agency choosing to participate in the streamlined temporary mandate process would annually self-certify that it has complied with the underlying intentions of all statutes and regulations underlying governing the operation of the mandates to which the bill applies, except for any requirements regarding compliance and claiming issues. The bill would require that a participating local educational agency be found by an auditor to be in material compliance with the requirements of the bill , as specified . The bill would require that funding for the streamlined temporary mandate process be based upon an equal amount per unit of prior-year enrollment for each of the participating local educational agencies, with the funding level to be determined by an appropriation made in the annual Budget Act. The bill would require that there be an appropriation, of no less than an unspecified amount, in each annual Budget Act during the term of this bill that would be adequate to encourage participation by eligible local educational agencies in the Fstreamlined temporary mandate process. The bill would require the Superintendent of Public Instruction to establish and convene a task force, including specified membership, charged with developing a permanent state process for mandate reimbursement that is cost effective for local educational agencies and responsive to state policy goals. These provisions would become inoperative on July 1, 2015, and would be repealed on January 1, 2016. F (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (2) (3) This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no yes . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: F SECTION 1. (a) This act shall be known, and may be cited, as the Streamlined Temporary Mandate Process Act of 2011. (b) The Legislature hereby finds and declares all of the following: (1) Local educational agencies and state agencies in California are facing unprecedented fiscal constraints, and therefore all administrative and fiscal capabilities need to be focused during this Ffiscal crisis upon only the most crucial priorities. (2) The cost of complying with the state's current complex mandate process diverts administrative and fiscal resources from more important priorities, such as the direct support of pupil learning. (c) It is the intent of the Legislature in enacting the Streamlined Temporary Mandate Process Act of 2011 to establish a voluntary, temporary, streamlined alternative mandate reimbursement process for local educational agencies eligible for mandate reimbursement as of June 30, 2011, and to provide for the self-certification, with independent oversight, of participant local educational agencies in order to meet compliance standards. SEC. 2. Article 1.5 (commencing with Section 42608) is added to Chapter 9 of Part 24 of Division 3 of Title 2 of the Education Code, to read: Article 1.5. Streamlined Temporary Mandate Process Act of 2011 F F 42608. (a) Notwithstanding any other provision of law, commencing on July 1, 2011, and continuing until June 30, 2015, all statutory and regulatory requirements for the following mandates shall be suspended, which mandates are also listed and described as State Mandated Cost Programs for school districts on the Controller's Internet Web site: (1) Agency Fee Mandates (Section 3546 of the Government Code). (2) AIDS Prevention I and II (Chapter 5.6 (commencing with Section F51930) of Part 28 of Division 4). (3) Annual Parent Notifications: (A) Interdistrict Transfer Requests: Parent's Employment (subdivision (h) of Section 48980). (B) Pupil Attendance Alternatives (subdivision (h) of Section 48980). (C) Specific Education Code Requirements (subdivision (a) of Section 48980). (D) Schoolsite Discipline Rules (Section 35291). (E) Alternative Schools (Section 58501). (F) Staff Development (subdivision (c) of Section 48980). (G) 1998-2000 Statutes (subdivisions (e), (j), and (k) of Section 48900 and subdivision (k) of Section 49063). (4) California State Teachers' Retirement System Service Credit (subdivision (b) of Section 22455.5, Section 22460, subdivision (a) of Section 22509, subparagraph (A) of paragraph (1) of subdivision (a) of Section 22718, Section 22724, and subdivision (e) of Section 22852). (5) Caregiver Affidavits (subdivision (d) of Section 48204, as operative on July 1, 2012, and Sections 6550 and 6552 of the Family Code). (6) Charter Schools I-III (subdivisions (a) and (b) of, former paragraphs (1) to (3), inclusive, of subdivision (j) as they existed on January 1, 1993, of, and paragraph (3) of subdivision (k) of, Section 47605, Section 47605.5, subdivisions (a) and (b) of Section 47607, and Sections 47614 and 47635). (7) Collective Bargaining (Chapter 10.7 (commencing with Section 3540) of Division 4 of the Government Code). (8) (7) Comprehensive School Safety Plans (Sections 32282 to 32288, inclusive). (9) (8) County Office of Education Fiscal Accountability Reporting (Section 1240). (10) (9) Criminal Background Checks I and II (Sections 44332.6, 44830.1, 44830.2, 45122.1, 45125, 45125.1, and 45125.2). (11) (10) Differential Pay and Reemployment (Sections 44977 and 44978.1). (12) (11) Expulsion Transcripts (Section 48921). (13) (12) Financial and Compliance Audits (Sections 1040, 14504, 14505, subdivisions (i), (j), (k), (l), (n), and (o) of Section 41020, and Sections 41020.2 and 41020.3, and the State Controller's Office Standards and Procedures for Audits of California FK-12 Local Educational Agencies). (14) (13) Graduation Requirements (Section 51225.3). (15) (14) Habitual Truants (Sections 48262 and 48264.5). (16) (15) High School Exit Exam (Sections 60850, 60851, 60853, and 60855 of this code, and Sections 1200 to 1225, inclusive, of Title 5 of the California Code of Regulations). (17) (16) Immunization Records (Chapter 1176 of the Statutes Fof 1977). (18) (17) Immunization Records-Hepatitis B (Section 48216 of this code, Sections 120325, 120335, 120340, and 120375 of the Health Fand Safety Code). (19) (18) Intradistrict Attendance (subdivision (b) of Section 35160.5). (20) (19) Juvenile Court Notices II (Section 827 of the Welfare and Institutions Code). (21) (20) Law Enforcement Agency Notifications (subdivision (c) of Section 48902). (22) (21) Missing Children (Sections 38139 and 49370). (23) (22) Notification to Teachers of Mandatory Expulsion (Sections 48900 (excluding subdivision (h)), 48900.2, 48900.3, 48900.4, 48900.7, and 49079). (24) (23) Notification of Truancy (Section 48260.5). (25) (24) Physical Education Reports (Section 51210.1). (26) (25) Physical Performance Tests (Section 60800). (27) (26) Pupil Health Screening (Sections 124100 and 124105 Fof the Health and Safety Code). (28) (27) Pupil Promotion and Retention (Sections 37252, 37252.2, 48070, and 48070.5). (29) (28) Pupil Residency Verification and Appeals (Sections 48204.5 and 48204.6)) 48204.6) . (30) (29) Pupil Safety Notices (Sections 32242, 32243, 32245, 46010.1, 48904, 48904.3, and 48987 of this code, and Section 18285 of the Welfare and Institutions Code). (31) (30) Pupil Suspensions, Expulsions, and Expulsion Appeals (subdivisions (b) and (e) of Section 48911, subdivisions (a) and (b) of Section 48915, and Sections 48915.1 48915.2, 48916, 48919, Fand 48921 to 48924, inclusive). (32) (31) Removal of Chemicals (Section 49411). (33) (32) School Accountability Report Cards (Sections 33126 Fand 33126.1). (34) (33) School District Fiscal Accountability Reporting (Sections 42100, 42127, 42127.5, 42127.6, 42128, and 42131 of this code, and Section 3540.2 of the Government Code). (35) (34) School District Reorganization (Sections 35704, 35705.5, and 35707). (36) (35) Scoliosis Screening (Section 49452.5). (37) (36) Stull Act (Article 11 (commencing with Section 44660) of Chapter 3 of Part 25). (38) (37) Teacher Incentive Program (Article 13 (commencing with Section 44395) of Chapter 2 of Part 25). (b) Apart from the streamlined temporary mandate process described in Section 42608.3, there shall be no appropriation in the annual Budget Act for the 2011-12 fiscal year to the 2014-15 fiscal year, inclusive, for the programs listed in subdivision (a). (c) For purposes of this article, a local educational agency is a school district or a county office of education. 42608.3. (a) The streamlined temporary mandate process established by this article shall serve participating local educational agencies as a temporary and voluntary replacement for the standard mandate reimbursement system in place on June 30, 2011. A local educational agency that is eligible for the reimbursement of any of the mandates listed in subdivision (a) of Section 42608 as of June 30, 2011, may choose to participate in this program process , and if it chooses to do so, it shall comply with this section. The governing board of a local educational agency that chooses not to participate in this process shall, at a duly noticed public meeting, explain the reasons for this decision and the rejection of the revenue provided by this process. (b) A local educational agency that participates in the streamlined temporary mandate process under this article shall comply with the underlying intentions of all statutes and regulations underlying governing the operation of the existing mandate programs listed in subdivision (a) of Section 42608, as these statutes and regulations existed on June 30, 2011, with the exception of any requirements regarding compliance and claiming issues, which shall be Fsuperseded by this article. (c) Participating local educational agencies shall annually self-certify that they have met the requirements of this section at a Fduly noticed meeting of the governing board. (d) (1) As part of its annual audit, a participating local educational agency shall request a compliance report from an auditor specifying that the agency has either materially complied or materially not complied with this article. A (2) For the purposes of this article, a finding of material noncompliance shall require evidence that the local educational agency neglected to make a good faith effort in appropriate performance of the activities listed in subdivision (a) of Section 42608, to the extent that the underlying statutory goals of those activities were compromised. (3) A local educational agency that is found to be materially noncompliant by its auditor twice during the term of the streamlined temporary mandate process established by this article, upon the occurrence of the second finding of noncompliance, shall be excluded from further participation under this article, including funding. (4) If a local educational agency is excluded pursuant to paragraph (3), the agency may appeal to the Education Audit Appeals Panel, which may overturn the finding of material noncompliance. Auditors shall report findings of material noncompliance to the Department of Finance, the department, and the Legislative Analyst's Office. (e) Funding for each participating local educational agency in each fiscal year from 2011-12 to 2014-15, inclusive, shall be based upon an equal amount per unit of prior-year California Basic Educational Data System (CBEDS) enrollment for each of the participating local educational agencies, with the funding level to be determined by the appropriation made in the annual Budget Act as specified in subdivision (f). A local educational agency without a prior-year CBEDS enrollment count shall utilize current-year CBEDS enrollment for funding purposes under this article. (f) There shall be an appropriation in each annual Budget Act during the term of this article that will be adequate to encourage participation by all eligible local educational agencies in the program established by this article. In no case shall the appropriation for this purpose be less than ____ dollars ($____). If the appropriation for purposes of this article in the annual Budget Act is deferred, it is the intent of the Legislature that the funding of this deferred amount from any amount available for Proposition 98 Fexpenditures shall have first priority in any given fiscal year. (g) The Superintendent shall establish and convene a task force charged with developing a permanent state process for mandate reimbursement that is cost effective for local educational agencies and responsive to state policy goals. The task force shall include representatives of the Department of Finance, the Legislative Analyst' s Office, and stakeholders in the public education community. 42608.5. This article shall become inoperative on July 1, 2015, and, as of January 1, 2016, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2016, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 3. 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. SEC. 3. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to establish a streamlined temporary mandate reimbursement process that will relieve the fiscal distress of seriously impacted local educational agencies commencing with the 2011-12 fiscal year, it is necessary that this act take effect immediately.