California Senate Bill SB148 Amended / Bill

 BILL NUMBER: SB 148AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 17, 2015 AMENDED IN SENATE JUNE 2, 2015 AMENDED IN SENATE APRIL 7, 2015 INTRODUCED BY  Senators   McGuire     and Leyva   Senator   McGuire   (   Principal coauthor:   Senator   Huff   )   (   Principal   coauthors:   Assembly Members   Burke     and Wood   )   (   Coauthors:   Senators   Allen,     Hall,    Mendoza,     and Vidak   )  (Coauthor: Assembly Member  Dodd   O'Donnell  ) JANUARY 29, 2015 An act to  add Article 8 (commencing with Section 52465) to Chapter 9 of Part 28 of Division 4 of Title 2 of   amend Sections 35510, 35514, 35515, and 35735 of, to add Sections 35735.2, 35735.3, 35735.5, 35735.6, 35735.7, 35735.8, 35735.9, and 35735.10 to, to repeal and add Sections 35735.1 and 35735.4 of, and to repeal Section 35516 of,  the Education Code, relating to  career technical education.   school districts.  LEGISLATIVE COUNSEL'S DIGEST SB 148, as amended, McGuire.  Career technical education: Career and Job Skills Education Act.   School districts: reorganization: local control funding formula.   Existing law establishes a system of public elementary and secondary education in this state. Under this system, school districts throughout the state operate and maintain schools at which they provide instruction. Existing law establishes procedures under which new school districts may be formed by dissolving 2 or more existing school districts of the same kind from the entire territory of the original school districts, by forming one or more new school districts of the same kind from all or parts of one or more existing school districts of the same kind, or by unifying or deunifying school districts as specified. Under existing law, new school districts may also be formed through an action to transfer territory, including an action to transfer all or part of an existing school district to another existing school district.   Existing law also establishes a system of funding public elementary and secondary education in this state. This funding system includes, among other elements, a local control funding formula through which funds are apportioned to school districts for educational purposes based on the total number of pupils attending the schools in those districts and the number of those pupils who fall into specified categories, including English learners, pupils eligible for free or reduced-price meals, and foster youth.   This bill would enact numerous provisions specifying computations to determine the funding, pursuant to the local control funding formula, of school districts that are, or proposed to be, affected by the various types of actions that may be undertaken to reorganize districts, as defined.   Existing law establishes the office of the Superintendent of Public Instruction, and specifies that the Superintendent is the ex officio Director of the State Department of Education. Under existing law, the State Department of Education administers numerous programs relating to elementary and secondary education.   Existing law authorizes, among other things, the governing board of any high school district to establish and maintain, in connection with any high school or regional occupational center or program under its jurisdiction, cooperative career technical education programs or community classrooms as part of a career technical education course, as specified.   This bill would establish the Career and Job Skills Education Act, which would authorize the governing board of one or more school districts, county offices of education, direct-funded charter schools, and regional occupational centers or programs operated by joint powers authorities with the written consent from each participating local educational agency, that operate any state-approved career technical education sequence of courses, to apply to the Superintendent for a grant for the development and enhancement of high-quality career technical education programs. The bill would require each grant recipient to, among other things, adopt certain policies and procedures and establish a career technical education program that satisfies specified criteria. The bill would establish the Career and Job Skills Education Fund in the State Treasury, and would also require the Superintendent to, among other things, administer the fund and distribute awards through an annual application process to applicants that meet certain requirements. The bill would further require the Superintendent and the State Board of Education to incorporate appropriate metrics into state-adopted accountability measures to determine career readiness of California's high school pupils.   The bill would, to the extent that funds are appropriated in the annual Budget Act of 2015, allocate funds to the Superintendent, for deposit in the Career and Job Skills Education Fund, for purposes of the Career and Job Skills Education Act, and would express the intent of the Legislature that funds be appropriated from the General Fund, as necessary, for those purposes in the 2017-18 and 2018-19 fiscal years.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 35510 of the   Education Code   is amended to read:  35510. Unless the context otherwise requires, the definitions set forth in this article govern the construction of this  chapter.   chapter and Chapter 4 (commencing with Section 35700).   SEC. 2.   Section 35514 of t   he   Education Code   is amended to read:  35514.  "Districts"   As used in this chapter and in Chapter 4 (commencing with Section 35700):   (a) "Affected district" means a district that has been, or is proposed to be, affected by an action to reorganize pursuant to Section 35511 or by an action to lapse a district pursuant to Section 35780.1. Affected districts include all of the following district types:   (1) "Original district" means a district as it existed before an action to reorganize pursuant to Section 35511 or before an action to lapse a district pursuant to Section 35780.1. The boundaries of an "original district" are those of the district as it existed immediately before the action to reorganize or lapse.   (2) "Former district" means a district that has been wholly included in another district, or has had all of its territory made part of two or more other districts, through any action taken pursuant to Section 35511 or through a lapsation pursuant to Section 35780.1. The boundaries of a former district are those of the district as it existed immediately before an action to reorganize or lapse.   (3) "New district" means a district that is formed from all or portions of one or more other districts by an action to reorganize taken pursuant to subdivision (a) of Section 35511. A new district does not exist before such an action.   (4) "Acquiring district" means a district that has all or portions of one or more other districts transferred into, or lapsed into, its boundaries pursuant to subdivision (b) of Section 35511 or Section 35780.1.   (5) "Divided district" means a district that has had a portion of its territory become part of a new district or transferred into one or more other districts by an action to reorganize taken pursuant to Section 35511.   (A) The "reorganized portion of a divided district" means the portion of the divided district's territory that becomes part of a new district or is transferred into one or more other districts.   (B) The "remaining portion of a divided district" means the portion of the divided district's territory that does not become part of a new district or that is not transferred into one or more other districts.   (6) "Reorganized district" means a district that is a "new district," an "acquiring district," or a "divided district."   (b)     "Districts"  means school districts of every kind or class.  SEC. 3.   Section 35515 of the   Education Code   is amended to read:  35515. "Component district" means an elementary school district  which   that  is included within a high school district.   district or an elementary school district that is excluded from an action to unify a high school district but that continues to feed into the high schools of the new unified school district pursuant to subdivision (b) of Section 35542.   SEC. 4.   Section 35516 of the   Education Code   is repealed.   35516. "Former district" means a district which has been wholly included in another district. The boundaries of a former district are those of the district as it existed immediately prior to being wholly included in another district.   SEC. 5.   Section 35735 of the   Education Code   is amended to read:  35735. (a) Each proposal for the reorganization of school districts shall include a computation of the  base revenue limit per unit of average daily attendance   local control funding formula entitlement determined pursuant to Section 42238.02, as implemented by Section 42238.03,  for the districts. That computation shall be an integral part of the  proposal   proposal,  and shall not be considered separately from the proposal. The  computation of the base revenue limit for the newly organized   funding computations for the reorganized  school districts shall be  made consistent with the calculations established in this article, and shall be  based on the current information available for each affected school district for the second principal apportionment period for the fiscal year two years  prior to   before  the fiscal year in which the reorganization is to become effective.  The computation of any adjustments for employee salaries and benefits shall be based on information from the fiscal year two years prior to the fiscal year in which the reorganization is to become effective. For the purposes of this article "affected school district" means a school district affected by a reorganization because all or a portion of its average daily attendance is to be included in the newly organized school districts.   (b) The county superintendent of schools shall compute the base revenue limit per unit of average daily attendance pursuant to Section 35735.1 for a school district involved in an action to reorganize and in an action to transfer territory.   (c) The State Department of Education shall use information provided pursuant to subdivision (a) by the county superintendent of schools in each county that has a school district affected by an action to unify or by an appeal of a transfer of territory to compute the base revenue limit per unit of average daily attendance for a newly organized school district pursuant to Section 35735.1.   (d) This section shall not apply to any reorganization proposal approved by the State Board of Education prior to January 1, 1995.   (b) The county superintendent of schools shall compute the local control funding formula entitlement pursuant to this article for a school district involved in an action to reorganize.   (c) (1) For a former school district that has been wholly included in more than one new or acquiring district, the county superintendent of schools with jurisdiction over the reorganized school district shall compute the local control funding formula entitlement pursuant to this article. As part of this computation, and except as otherwise provided in this article, the county superintendent of schools may determine both of the following:   (2) (A) The prior year funded average daily attendance as of the second principal apportionment from each affected school district that will be served by each reorganized school district.   (B) Consistent with paragraph (1), the division of all of the following types of funding attributed to a former district when all of the territory of that former district is made part of two or more new or acquiring districts:   (i) Categorical program funding provided pursuant to subdivisions (g) and (h) of Section 42238.02, paragraph (2) of subdivision (a) of Section 42238.03, and subdivision (e) of Section 42238.03.   (ii) Economic recovery target payments computed pursuant to paragraph (2) of subdivision (d) of Section 42238.025.   (iii) Necessary small school allowances provided for minimum state aid pursuant to subparagraph (D) of paragraph (1) of subdivision (e) of Section 42238.03, except that in no case shall the allowance attributed to a single necessary small elementary or necessary small high school be divided among more than one new or acquiring district.   (3) The funding calculated pursuant to this subdivision shall be incorporated by the Superintendent into the new or acquiring district' s calculations as if it were a former district that is wholly included in the new district, provided that the required information is submitted to the Superintendent within the timeframe established by the Superintendent. If the county superintendent of schools does not provide all of the information in paragraphs (1) and (2), the funding shall not be included in the new or acquiring district's calculations.   (d) For all actions to reorganize, except for those actions approved pursuant to subdivision (b) of Section 35710, or appealed pursuant to subdivision (c) of Section 35710, Section 35710.5, or Section 35711, the Superintendent shall compute the local control funding formula entitlement for a reorganized school district pursuant to Section 42238.02, as implemented by Section 42238.03.   (e) The Superintendent may make adjustments to the local control funding formula entitlements computed pursuant to subdivisions (b) and (c), if those adjustments are necessary to cause those entitlements to be consistent with this article.   (f) For purposes of this article, a lapsation pursuant to Section 35780.1 shall be considered an action to reorganize pursuant to subdivision (b) of Section 35511.   (e)   (g)  Any costs incurred by the county superintendent of schools in preparing reports pursuant to this section or  Section 35735.1 or 35735.2   Sections 35735.1 to 35735.9, inclusive,  may be billed to the affected school districts on a proportionate basis.  SEC. 6.  Section 35735.1 of the   Education Code   is repealed.   35735.1. (a) The local control funding formula allocation per unit of average daily attendance for newly organized school districts shall be equal to the total of the amount of the local control funding formula allocation pursuant to Section 42238.02, as implemented by Section 42238.03, per unit of average daily attendance of the affected school districts computed pursuant to the computations set forth below. The following computations shall be made to determine the local control funding formula allocation pursuant to Section 42238.02, as implemented by Section 42238.03, per unit of average daily attendance for the newly organized school districts: (1) Based on the current information available for each affected school district for the second principal apportionment period for the fiscal year before the fiscal year in which the reorganization is to become effective, multiply the local control funding formula allocation pursuant to Section 42238.02, as implemented by Section 42238.03, per unit of average daily attendance for that school district by the number of units of average daily attendance for that school district that the county superintendent of schools determines will be included in the proposed school district. (2) Add the amounts calculated pursuant to paragraph (1) and divide that sum by the number of units of average daily attendance in the newly organized school districts. (b) The amount determined pursuant to subdivision (a) shall be the local control funding formula allocation pursuant to Section 42238.02, as implemented by Section 42238.03, per unit of average daily attendance for the newly organized school districts. (c) The average daily attendance of a newly organized school district, for purposes of Sections 42238.02 and 42238.03, shall be the average daily attendance that is attributable to the area reorganized for the fiscal year before the fiscal year in which the new school district becomes effective for all purposes. (d) Notwithstanding this section, commencing with the 2013-14 fiscal year, a newly reorganized school district shall receive state-aid funding pursuant to paragraph (3) of subdivision (b) of Section 42238.03 or the total combined per pupil funding amount received by each school district pursuant to paragraphs (1) and (2) of subdivision (a) of Section 42238.03 for the fiscal year before the fiscal year in which the new school district becomes effective for all purposes, whichever is greater. (e) Notwithstanding any other law, this section shall not be subject to waiver by the state board pursuant to Section 33050 or by the Superintendent. (f) Upon a determination that all school districts or charter schools equal or exceed the local control funding formula target computed pursuant to Section 42238.02 as determined by the calculation of a zero difference pursuant to paragraph (1) of subdivision (b) of Section 42238.03, for all school districts and charter schools, this section shall not apply and the newly reorganized school district shall receive an allocation equal to the amount calculated under Section 42238.02 in that fiscal year and future fiscal years.   SEC. 7.   Section 35735.1 is added to the   Education Code   , to read:   35735.1. For purposes of paragraph (5) of subdivision (b) of Section 42238.02, reorganized districts shall have their percentages of unduplicated pupils calculated as follows: (a) (1) For a new district in the first fiscal year of operation, include only the current fiscal year unduplicated pupil and enrollment counts used to establish the current fiscal year percentage. (2) For a new district in the second fiscal year of operation, include only the current fiscal year and prior fiscal year unduplicated pupil and enrollment counts to establish the current fiscal year percentage. (3) For a new district in the third and subsequent fiscal years of operation, include the current fiscal year, prior fiscal year, and second prior fiscal year unduplicated pupil and enrollment counts to establish the current fiscal year percentage. (b) For an acquiring district in the first fiscal year of operation after the reorganization, retain the prior fiscal year and second prior fiscal year unduplicated pupil and enrollment counts from the fiscal years before the reorganization. For the current fiscal year and each subsequent fiscal year after reorganization, include the unduplicated pupil and enrollment counts for all pupils who are being served by the acquiring district. (c) For the remaining portion of a divided district, the percentage calculation shall include the prior and second prior fiscal year unduplicated pupil and enrollment counts from the fiscal years before the reorganization. For the current and each subsequent fiscal year after reorganization, include only the unduplicated pupil and enrollment counts for the pupils who are being served by the remaining portion of the divided district.   SEC. 8.   Section 35735.2 is added to the   Education Code   , to read:   35735.2. For purposes of subdivisions (g) and (h) of Section 42238.02, paragraph (2) of subdivision (a) of Section 42238.03, and subdivision (e) of Section 42238.03, reorganized districts shall have categorical program funding determined as follows: (a) (1) A new district shall retain the same amount of categorical funding received by each former district before the reorganization. A new district shall not retain any categorical funding received by divided districts before the reorganization. (2) If the new district is composed wholly of former districts, it shall receive a reduction pursuant to paragraph (2) of subdivision (a) of Section 42238.03 only to the extent that the new district would have received a reduction in the 2012-13 fiscal year. (3) If the new district is comprised of former districts and one or more divided districts, it shall receive a reduction pursuant to paragraph (2) of subdivision (a) of Section 42238.03 only to the extent that the former districts received a reduction in the 2012-13 fiscal year. (b) (1) An acquiring district shall retain the same amount of categorical funding it received before the reorganization, plus the amount of categorical funding received by each former district before the reorganization. An acquiring district shall not retain any categorical funding received by divided districts before the reorganization. (2) If the acquiring district is composed wholly of former districts, it shall receive a reduction pursuant to paragraph (2) of subdivision (a) of Section 42238.03 only to the extent that the acquiring district would have received a reduction in the 2012-13 fiscal year. (3) If the acquiring district comprises a former district and one or more divided districts, it shall receive a reduction pursuant to paragraph (2) of subdivision (a) of Section 42238.03 only to the extent that the former district received a reduction in the 2012-13 fiscal year. (c) (1) The remaining portion of a divided district shall retain the same amount of categorical funding it received before the reorganization. (2) If a divided district received a reduction pursuant to paragraph (2) of subdivision (a) of Section 42238.03, it shall continue to receive that reduction. (d) If the reorganization includes a former district that has been wholly included in more than one new or acquiring districts, the categorical funding shall be determined pursuant to subdivision (c) of Section 35735.   SEC. 9.   Section 35735.3 is added to the   Education Code   , to read:   35735.3.  (a)     A new or acquiring district shall receive an economic recovery target payment pursuant to paragraph (2) of subdivision (d) of Section 42238.025 that is equal to the sum of the amounts determined for each former district that was eligible to receive an economic recovery target payment pursuant to paragraph (1) of subdivision (d) of Section 42238.025 before the reorganization.   (b) The remaining portion of a divided district shall retain the same amount of economic recovery target funding pursuant to paragraph (2) of subdivision (d) of Section 42238.025 that it was eligible to receive before the reorganization.   (c) If the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the economic recovery target funding shall be determined pursuant to subdivision (c) of Section 35735.   SEC. 10.   Section 35735.4 of the   Education Code   is repealed.   35735.4. Notwithstanding paragraphs (2) and (3) of subdivision (a) of Section 35735.1, as it read on June 30, 1998, a school district that was reorganized in the 1998-99 fiscal year, had an enrollment of fewer than 2,000 pupils in the second fiscal year prior to the fiscal year of reorganization, was wholly located within a county of the 20th class, as defined pursuant to Section 28041 of the Government Code, and for which the criteria specified in paragraph (2) or (3), or both, of subdivision (a) of Section 35735.1, as it read on June 30, 1998, would have been met had pupils on interdistrict transfers in the second fiscal year prior to the fiscal year of reorganization attended their district of residence, may include the calculations set forth in paragraphs (2) and (3) of subdivision (a) of Section 35735.1, as it read on June 30, 1998, in the calculation of its base revenue limit per unit of average daily attendance.   SEC. 11.   Section 35735.4 is added to the  Education Code   , to read:   35735.4. For purposes of subdivision (d) of Section 42238.03, a reorganized district shall be deemed to have a zero difference in the prior fiscal year if one of the following conditions is met: (a) For a new district resulting from an action to reorganize pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511, each former district had a zero difference in the prior fiscal year. (b) For a new district resulting from an action to reorganize pursuant to paragraph (4) subdivision (a) of Section 35511, the original district had a zero difference in the prior fiscal year. (c) For an acquiring district affected by an action to reorganize taken pursuant to subdivision (b) of Section 35511, the acquiring district has a zero difference in the prior fiscal year.   SEC. 12.   Section 35735.5 is added to the   Education Code   , to read:   35735.5. (a) For a new or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 42238.03 shall be calculated, as follows: (1) If the reorganization took place before December 31, 2013, for each affected district: (A) Blend the revenue limit pursuant to Section 35735.1, as that section read on January 1, 2013. (B) Multiply the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective by the per unit of average daily attendance amount computed pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 42238.03. (C) Add the products determined in subparagraph (B) and divide by the sum of units of average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective for all affected districts. (2) If the reorganization took place after December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective by the per unit of average daily attendance amount computed pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 42238.03. (B) Add the products determined in subparagraph (A) and divide by the sum of units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective for all affected districts. (3) (A) For purposes of paragraphs (1) and (2), average daily attendance shall be the funded average daily attendance as of the second principal apportionment. (B) If the reorganization includes a divided district, the following shall apply: (i) For purposes of paragraph (1), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district. (ii) For purposes of paragraph (2), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the first fiscal year the reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first fiscal year of the reorganization, the divided district's funding shall not be included in the blending calculation made pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 42238.03. (C) For purposes of paragraph (1) or (2), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735. (b) For a new district formed as a result of deunification pursuant to paragraph (4) of subdivision (a) of Section 35511, the funding amount per unit of average daily attendance pursuant to subparagraph (A) of paragraph (1) of subdivision (a) of Section 42238.03 shall be equal to the amount calculated for the original district for the fiscal year before the fiscal year in which the reorganization is to become effective.   SEC. 13.   Section 35735.6 is added to the   Education Code   , to read:   35735.6. (a) For a new or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to subparagraph (A) of paragraph (1) of subdivision (e) of Section 42238.03, shall be calculated as follows: (1) If the reorganization took place before December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective by the per unit of average daily attendance amount computed pursuant to subparagraph (A) of paragraph (1) of subdivision (e) of Section 42238.03. (B) Add the products determined in subparagraph (A), and divide that sum by the sum of units of average daily attendance for the fiscal year two years immediately preceding the fiscal year in which the reorganization is to become effective for all affected districts. (C) No adjustment shall be made for paragraphs (2) and (3) of subdivision (a) of Section 35735.1, as that section read on January 1, 2013. (2) If the reorganization took place after December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective by the per unit of average daily attendance amount computed pursuant to subparagraph (A) of paragraph (1) of subdivision (e) of Section 42238.03. (B) Add the products determined in subparagraph (A), and divide by the sum of units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective for all affected school districts. (3) (A) For purposes of paragraphs (1) and (2), average daily attendance shall be the funded average daily attendance as of the second principal apportionment. (B) If the reorganization includes a divided district, the following shall apply: (i) For purposes of paragraph (1), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district. (ii) For purposes of paragraph (2), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the fiscal year the first reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first fiscal year of the reorganization, the divided district's funding shall not be included in the blending calculation made pursuant to subparagraph (A) of paragraph (1) of subdivision (e) of Section 42238.03. (C) For purposes of paragraph (1) or (2), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735. (b) For a new district formed as a result of deunification pursuant to paragraph (4) of subdivision (a) of Section 35511, the funding amount per unit of average daily attendance pursuant to subparagraph (A) of paragraph (1) of subdivision (e) of Section 42238.03 shall be equal to the amount calculated for the original district for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.   SEC. 14.   Section 35735.7 is added to the   Education Code   , to read:   35735.7. For a new or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to paragraph (4) of subdivision (a) of Section 42238.03 shall be calculated as follows: (a) If the reorganization took place before December 31, 2013: (1) For each affected district, divide the amount of funding received in the immediately preceding fiscal year pursuant to paragraph (4) of subdivision (a) of Section 42238.03 as of the second principal apportionment by the units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective. (2) For each affected district, multiply the amount determined in paragraph (1) by the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective. (3) Add the products determined in paragraph (2), and divide that sum by the sum of the average daily attendance determined in paragraph (2) for all affected districts. (b) If the reorganization took place after December 31, 2013: (1) For each affected district, divide the amount of funding received in the immediately preceding fiscal year pursuant to paragraph (4) of subdivision (a) of Section 42238.03 as of the second principal apportionment by the units of average daily attendance for the fiscal year prior to the fiscal year in which the reorganization is to become effective. (2) For each affected district, multiply the amount determined in paragraph (1) by the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective. (3) Add the products determined in paragraph (2), and divide that sum by the sum of the average daily attendance determined in paragraph (2) for all affected districts. (c) (1) For purposes of subdivisions (a) and (b), average daily attendance shall be the funded average daily attendance as of the second principal apportionment. (2) If the reorganization includes a divided district, the following shall apply: (A) For purposes of subdivision (a), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district. (B) For purposes of subdivision (b), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the first fiscal year the reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first fiscal year of the reorganization, the divided district's funding shall not be included in the blending calculation pursuant to paragraph (4) of subdivision (a) of Section 42238.03. (3) For purposes of subdivisions (a) and (b), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735.   SEC. 15.   Section 35735.8 is added to the   Education Code   , to read:   35735.8. (a) For a new or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to Sections 42289 to 42289.5, inclusive, for purposes of determining funding pursuant to paragraph (2) of subdivision (i) of Section 42283.02, shall be calculated as follows: (1) If the reorganization took place before December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective by the amount computed pursuant to subdivision (b) of Section 42287 for the fiscal year two years before the fiscal year in which the reorganization is to become effective. (B) Add the products determined in subparagraph (A), and divide that sum by the sum of units of average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective for all affected districts. (C) Increase the amount determined in subparagraph (B) by the percentage calculated pursuant to paragraph (2) of subdivision (d) of Section 42238.02 for the fiscal year immediately preceding the fiscal year in which reorganization is to become effective. (2) If the reorganization took place after December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective by the amount computed pursuant to subdivision (b) of Section 42287 for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective. (B) Add the products determined in subparagraph (A), and divide that sum by the sum of units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective for all affected districts. (3) (A) For purposes of paragraphs (1) and (2), average daily attendance shall be the funded average daily attendance as of the second principal apportionment. (B) If the reorganization includes a divided district, both of the following shall apply: (i) For purposes of paragraph (1), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district. (ii) For purposes of paragraph (2), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the first year the reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first year of the reorganization, the divided district's funding shall not be included in the blending calculation pursuant to paragraph (2) of subdivision (i) of Section 42238.02. (C) For purposes of paragraph (1) or (2), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735. (b) For a new district formed as a result of deunification pursuant to paragraph (4) of subdivision (a) of Section 35511, the funding amount per unit of average daily attendance shall be equal to the amount calculated for the original district for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.   SEC. 16.   Section 35735.9 is added to the   Education Code   , to read:   35735.9. (a) For a new district or acquiring district that has reorganized pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 35511 or subdivision (b) of Section 35511, the funding amount per unit of average daily attendance pursuant to Sections 42289 to 42289.5, inclusive, for purposes of determining funding pursuant to subparagraph (D) of paragraph (1) of subdivision (a) of Section 42283.03, shall be calculated as follows: (1) If the reorganization took place before December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective by the amount per unit of average daily attendance that corresponds to the 2012-13 fiscal year funding amounts pursuant to Sections 42289 to 42289.5, inclusive, and Section 42238.146, as that section read on June 15, 2015. (B) Add the products determined in subparagraph (A), and divide that sum by the sum of units of average daily attendance for the fiscal year two years before the fiscal year in which the reorganization is to become effective for all affected districts. (2) If the reorganization took place after December 31, 2013, for each affected district: (A) Multiply the average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective by the amount per unit of average daily attendance that corresponds to the 2012-13 fiscal year funding amounts pursuant to Sections 42289 to 42289.5, inclusive, and Section 42238.146, as that section read on June 15, 2015. (B) Add the products determined in subparagraph (A), and divide that sum by the sum of units of average daily attendance for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective for all affected districts. (3) (A) For purposes of paragraphs (1) and (2), average daily attendance shall be the funded average daily attendance as of the second principal apportionment. (B) If the reorganization includes a divided district, the following shall apply: (i) For purposes of paragraph (1), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district. (ii) For purposes of paragraph (2), the average daily attendance shall be estimated by the county office of education and reported to the department based on the units of average daily attendance to be served by the reorganized district in the first fiscal year the reorganization becomes effective. If no average daily attendance of the divided district is estimated to be served in the first fiscal year of the reorganization, the divided district's funding shall not be included in the blending calculation pursuant to subparagraph (D) of paragraph (1) of subdivision (a) of Section 42238.03. (C) For purposes of paragraph (1) or (2), if the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the average daily attendance shall be the average daily attendance reported pursuant to subdivision (c) of Section 35735. (b) For a new district formed as a result of deunification pursuant to paragraph (4) of subdivision (a) of Section 35511, the funding amount per unit of average daily attendance shall be equal to the amount calculated for the original district for the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective.   SEC. 17.   Section 35735.10 is added to the   Education Code   , to read:   35735.10. For the purpose of determining funding pursuant to subparagraph (D) of paragraph (1) of subdivision (e) of Section 42238.03, the following shall apply to districts affected by reorganization pursuant to Section 35511 or lapsation pursuant to Section 35780.1: (a) A new district shall receive the same amount of the 2012-13 fiscal year funding allowance provided for qualifying necessary small elementary schools and necessary small high schools received by each former district in the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective if the former district has been wholly included in the new district. (b) An acquiring district shall retain the same amount as the 2012-13 fiscal year funding allowance provided for its qualifying necessary small elementary schools and necessary small high schools in the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective and any such allowance provided to a former district if the former district has been wholly included in the acquiring district. (c) A divided district shall retain the same amount of the 2012-13 fiscal year funding allowance provided for its qualifying necessary small elementary schools and necessary small high schools in the fiscal year immediately preceding the fiscal year in which the reorganization is to become effective. (d) If the reorganization includes a former district that has been wholly included in more than one new or acquiring district, the necessary small school allowance for minimum state aid shall be determined pursuant to subdivision (c) of Section 35735.   SECTION 1.   The Legislature finds and declares all of the following: (a) Section 51220 of the Education Code states that the adopted course of study for grades 7 to 12, inclusive, shall offer courses in the following areas of study: (1) Applied arts, including instruction in the areas of consumer and homemaking education, industrial arts, general business education, or general agriculture. (2) Career technical education designed and conducted for the purpose of preparing youth for gainful employment in the occupations and in the numbers that are appropriate to the personnel needs of the state and the community served and relevant to the career desires and needs of the pupils. (b) Section 51224 of the Education Code states, "The governing board of any school district maintaining a high school shall prescribe courses of study designed to provide the skills and knowledge required for adult life for pupils attending the schools within its school district. The governing board shall prescribe separate courses of study, including, but not limited to, a course of study designed to prepare prospective pupils for admission to state colleges and universities and a course of study for career technical training." (c) California has invested $500 million in Proposition 1D funding for purposes of modernizing and building new career technical education facilities for high school pupils. (d) California has invested $90 million in the purchase of new career technical education equipment for high school pupils. (e) California has invested $500 million in the California Career Pathways Trust for the development of robust career pathways aligned with regional economies. (f) California needs to satisfy maintenance of effort requirements to continue to receive funds pursuant to the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (20 U.S.C. Sec. 2301 et seq.), for the improvement of career technical education programs. (g) To help the state remain a competitive economy, California high schools need to provide resources that promote career readiness and 21st century career technical skills for pupils. (h) California needs to use limited resources more efficiently to do a better job of preparing pupils for an economy that demands workers to have strong academic and career knowledge and skills, to be adaptable to change, and prepared for college and careers. (i) The rapid growth of California's population and the labor force depends on attracting, supporting, and retaining businesses that pay sustainable wages to highly skilled and qualified workers. Therefore, improvement in the overall quality of California's workforce is a vital component to the state's continued economic development. (j) California needs to develop and sustain educational programs that can provide youth with career readiness, organizational help in their pursuit of career opportunities, leadership skills, networks of support, and the academic and technical skills necessary to serve as a foundation for successful careers. (k) The average high school graduation rate in the United States for pupils concentrating in career technical education programs is 90.18 percent, compared to an average national freshman graduation rate of 74.9 percent. (l) Eighty-one percent of high school dropouts in the United States say relevant, real-world learning opportunities would have kept them from dropping out of high school. (m) In the United States, more than 70 percent of secondary career technical education concentrators pursued postsecondary education shortly after graduating from high school. (n) According to the United States Census Bureau for the year 2010, 70 percent of pupils will not go on to receive a four-year postsecondary education degree. (o) California's future of providing high-quality education and training programs requires greater public-private collaboration and cooperation. (p) California's policies and methods that provide elementary and secondary education to prepare young people for lifelong learning, higher educational opportunities, and high-skilled careers leading to sustainable wages are major components to California's continued economic growth. (q) California's continued economic development and growth is critically linked to providing pupils with educational opportunities that prepare those pupils for lifelong learning, higher education, and high-skilled, high-wage careers. (r) Sustaining and developing a strong system for the delivery of career technical education should be a top priority of California's educational systems and must be addressed at the local, regional, and state levels to establish a seamless system from career technical education to employment. (s) California's career pathways system is a long-term investment in developing human capital by supplying the demand for a highly skilled and adaptable workforce. By successfully matching the skills of the emerging workforce with the needs of California's growth economies, high-quality career pathways will provide essential components to ensure the state's competitive edge in the growing global economy. (t) Career pathway programs are an educational approach that is designed to improve academic rigor through relevant, real-world experiences by integrating appropriate academic and essential career technical education knowledge and skills focused around a career pathway. (u) High-quality and coordinated career pathways provide a much needed nexus between those preparing the future workforce and those employing the future workforce. The collaboration of educators, business, and labor fosters the use of contextual and applied teaching strategies that provide opportunities for all pupils to gain exposure to career-related coursework, workplace experiences, internships, and jobsite mentoring. (v) A rigorous high-quality education curriculum encompasses a range of subjects and grade levels. Incorporating career technical education into that curriculum can strengthen pupils' understanding of career opportunities, provide pupils with direction for education beyond high school, and produce better informed citizens in the state.   SEC. 2.   Article 8 (commencing with Section 52465) is added to Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code, to read: Article 8. Career and Job Skills Education Act 52465. This article shall be known, and may be cited, as the Career and Job Skills Education Act. 52466. The Career and Job Skills Education Fund is hereby established in the State Treasury. The moneys in the fund shall be available to the Superintendent, upon appropriation by the Legislature pursuant to Section 52471, for the implementation and administration of this article. 52467. (a) The governing board of one or more school districts, county offices of education, direct-funded charter schools, including pursuant to subdivision (g) of Section 47605.1, or regional occupational centers or programs operated by joint powers authorities with the written consent from each participating local educational agency, that operate any state-approved career technical education sequence of courses may apply to the Superintendent for a grant for the development and enhancement of high-quality career technical education courses. (b) The Superintendent shall award grants to applicants that contribute an amount of funds equal to the amount of the grant for use in career technical education programs as defined by the California State Plan for Career Technical Education and that satisfy the requirements outlined in Section 52469. 52469. Each governing board of an applicant that receives a grant or accepts other funds made available for purposes of this article shall, in consultation with the county office of education, as applicable, local workforce investment boards, and community colleges serving the geographic area of the grant recipient, adopt a career technical education program that includes all of the following criteria: (a) The program shall provide a series of career technical education courses aligned with the California Career Technical Education Model Curriculum Standards adopted by the state board, and offer a coherent sequence of career technical education courses leading to specific competencies that will enable pupils to transition to postsecondary education on a career pathway or attain entry level employment in business or industry upon their graduation from high school. (b) The program shall include plans, developed and implemented by the grant recipient for articulation of career technical education courses with community colleges or apprenticeship programs in the geographic area of the grant recipient to continue the sequence of career technical education courses through grades 13 and 14 and for the acquisition of high-quality industry certifications, credentials, and licenses. (c) The program shall include assessments of local business and industry needs to ensure that the program provides pupils with the competency, knowledge, and skills necessary to pursue employment opportunities. (d) The program shall provide counseling and guidance services to pupils to help them satisfy all of the requirements for high school graduation and make informed career preparation choices. Counseling and guidance services provided for purposes of this subdivision may include counseling for pupils in grades 6 to 12, inclusive. (e) The program shall involve business and industry in cooperative projects with schools in the geographic area of the grant recipient to provide internships for pupils, externships for teachers, paid or nonpaid work experience, job shadowing or mentoring opportunities, instructors from business and industry, assistance with needs assessments and program evaluations, and access to business and industry employment placement services to help graduating pupils obtain employment. (f) The program shall include a system for data collection to be reported annually that shall comply with the requirements established by the Superintendent in terms of all of the following: (1) Number of pupils enrolled in career technical education courses. (2) Number of pupils completing high school. (3) Pupils earning industry recognized certifications, credentials, or licenses as determined by a list approved by the Superintendent, or who passed third-party career technical education pathway specific assessments. (4) Pupils securing employment, particularly in jobs related to the area of their career technical preparation in high school. (5) Pupils proceeding to advanced education or training at the postsecondary educational level. (6) Pupils proceeding to advanced education or training at the postsecondary educational level in the same career pathway as their career technical preparation in high school. (7) Number and types of career technical courses offered and the number of those courses that qualify as alternative means to complete the prescribed course of study requirements as described in subdivision (b) of Section 51225.3. 52470. The Superintendent shall do all of the following: (a) Develop a system of accountability, data collecting, and reporting to ensure the goals of career technical education programs are satisfied. (b) Develop data metrics that are aligned with the core metrics required by the federal Workforce Innovation and Opportunity Act, common metrics adopted by the Office of the Chancellor of the California Community Colleges, any career-ready standards adopted pursuant to the federal Elementary and Secondary Education Act (20 U.S.C. Sec. 6301 et seq.), and the 11 quality indicators described in the California State Plan for Career Technical Education. (c) Adopt and provide grant recipients with a list of approved high-quality industry certifications and licenses and approved third-party career technical education pathway assessments in each career technical education pathway for use in program development. (d) Provide technical and professional assistance to all grant award recipients. 52471. (a) To the extent that funds are appropriated in the Budget Act of 2015, those funds shall be allocated to the Superintendent, for deposit in the Career and Job Skills Education Fund, for purposes of this article. (b) The department shall retain up to 2 percent of the total funds apportioned to the grant recipient pursuant to this article, to provide all of the following to that grant recipient for the purposes of this article: (1) Technical assistance. (2) Professional development. (3) Accountability services and local monitoring. (c) An amount equal to 2 percent of the total funds appropriated pursuant to this article shall be set aside and distributed separately to applicants of rural school districts, as defined by the state board, and regions with higher than average rates of high school dropouts, as defined by the California Longitudinal Pupil Achievement Data System. (d) Funds may be used by each grant recipient for purposes of this article for any or all of the following purposes: (1) Matching pupils with work-based learning opportunities. (2) Using intermediaries as liaisons between educators, businesses, parents, and community partners. (3) Providing technical assistance to help employers and educators design comprehensive career technical education course sequences and programs. (4) Providing technical assistance to help teachers integrate academic, career technical education, and work-based learning activities. (5) Encouraging active business involvement in a grant recipient's work-based learning activities and providing teacher externships. (6) Assisting pupils in finding appropriate work, continuing education or training, and linking pupils to other community services. (7) Evaluating postcareer technical education program outcomes for pupils to assess the success of those programs, particularly with reference to special populations, as that term is defined in the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (20 U.S.C. Sec. 2301 et seq.). (8) Linking youth development activities with employer and industry strategies to upgrade worker skills. (9) Funding career technical education pupil organizations and activities. (10) Funding costs incurred through career technical education program-related planning, development, validation, and accountability. (11) Funding career technical education curriculum development and alignment with postsecondary educational institutions. (12) Funding career technical education professional development, including industry externships for teachers. (13) Funding career technical education instructional equipment and material purchases. (14) Providing support in career technical education programs to pupils of special populations, as that term is defined in the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (20 U.S.C. Sec. 2301 et seq.). (15) Funding costs incurred through the expansion of career technical education programs in effect as of January 1, 2016, or the establishment of new career technical education programs or pathways, including the cost of salaries for additional career technical education staff. Salary expenditures for career technical education staff shall be capped at 50 percent of the annual amount apportioned to the grant recipient. 52472. (a) Notwithstanding any other law, funds allocated pursuant to this article may be expended only to ensure the development, enhancement, and improvement of high-quality career technical education courses and programs pursuant to the quality indicators described in the California State Plan for Career Technical Education. (b) As a condition of receiving funds pursuant to this article, each grant recipient shall do all of the following: (1) Develop a plan for establishing aligned course sequences for its career technical education programs. (2) Certify to the department that each career technical education pathway has been developed with input from an industry-based career pathway advisory committee and includes a logical sequence of career technical education courses pursuant to the California State Plan for Career Technical Education. (3) Submit new or revised career technical education programs or pathways to the department for approval no later than September 1 of the fiscal year in which those changes are implemented pursuant to requirements developed by the department, for purposes of determining the annual funding award to the grant recipient. (4) Certify to the department that each course within a sequence of career technical education courses is aligned with the California Career Technical Education Model Curriculum Standards, adopted by the state board, for grades 7 to 12, inclusive. (5) Certify to the department that each course, where appropriate, is aligned with the Common Core State Standards. (6) Certify to the department that each of its career technical education teachers has the appropriate credential authorizing him or her to teach his or her assigned career technical education course. (7) Except as provided in paragraph (15) of subdivision (f) of Section 52471, certify to the department that no grant funds awarded to the grant recipient pursuant to this article are used for staff salaries, benefits, or both. (8) Collect and report data as required by the department and the applicable local control and accountability plan. 52473. The Superintendent and the state board shall incorporate appropriate metrics into state-adopted accountability measures to determine career readiness of California's high school pupils. These metrics shall be aligned with the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006 (20 U.S.C. Sec. 2301 et seq.), California's Standards for Career Ready Practice, and the quality indicators described in the California State Plan for Career Technical Education.   SEC. 3.   It is the intent of the Legislature that funds be appropriated from the General Fund, as necessary, to the Superintendent, for deposit in the Career and Job Skills Education Fund, for purposes of Article 8 (commencing with Section 52465) of Chapter 9 of Part 28 of Division 4 of Title 2 of the Education Code, in the 2017-18 and 2018-19 fiscal years.