(a) (1) The sum of two hundred eighteen million dollars ($218,000,000) is hereby appropriated in the 2016-17 fiscal year from the General Fund for allocation to school districts and community college districts for the purpose of offsetting the 2009-10 fiscal year outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to § 8 of Article XVI of the California Constitution.

(2) The amount appropriated pursuant to paragraph (1) shall be allocated to school districts and community college districts, as described in subdivision (a) of Section 41203.1, in accordance with the following:

(A) One hundred ninety-four million one hundred seventy-three thousand dollars ($194,173,000) for transfer by the Controller to Section A of the State School Fund for allocation by the Superintendent pursuant to this section.

(B) Twenty-three million eight hundred twenty-seven thousand dollars ($23,827,000) for transfer by the Controller to Section B of the State School Fund for allocation by the Chancellor of the California Community Colleges to community colleges districts for deferred maintenance, instructional materials, and other activities, as specified in Provision 20 of Item 6870-101-0001 of the Budget Act of 2016.

(3) The amount allocated to school districts pursuant to subparagraph (A) of paragraph (2) shall be distributed on the basis of an equal amount per unit of regular average daily attendance, as those average daily attendance numbers are reported at the time of the second principal apportionment for the 2015-16 fiscal year.

(4) The amount allocated to community college districts pursuant to subparagraph (B) of paragraph (2) shall be distributed on the basis of an equal amount per enrolled full-time equivalent student, as those numbers of students are reported at the time of the second principal apportionment for the 2015-16 fiscal year.

(5) For purposes of this section, a school district includes a county office of education and a charter school.

(b) For purposes of § 8 of Article XVI of the California Constitution, the amounts appropriated and allocated pursuant to this section shall be applied to the outstanding balance of the minimum funding obligation to school districts and community college districts pursuant to § 8 of Article XVI of the California Constitution for the 2009-10 fiscal year and shall be deemed to be appropriations made and allocated in that fiscal year in which the deficiencies resulting in the outstanding balance were incurred.

(c) Funding received by school districts pursuant to subparagraph (A) of paragraph (2) of subdivision (a) shall first be deemed to be paid in satisfaction of any outstanding claims pursuant to Section 6 of XIII B of the California Constitution, for reimbursement of state-mandated local program costs for any fiscal year. Notwithstanding § 12419.5 of the Government Code and any amounts that are deemed pursuant to this subdivision to be paid in satisfaction of outstanding claims for reimbursement of state-mandated local program costs, the Controller may audit any claim as allowed by law and may recover any amount owed by school districts pursuant to an audit only by reducing amounts owed for any other mandate claims. Under no circumstances shall a school district be required to remit funding back to the state to pay for disallowed costs identified by a Controller audit of claimed reimbursable state-mandated local program costs. The Controller shall not recover any amount owed by a school district pursuant to an audit of claimed reimbursable state-mandated local program costs by reducing any amount owed a school district for any purpose other than amounts owed for any other mandate claims. The Controller shall apply amounts received by each school district against any balances of unpaid claims for reimbursement of state-mandated local program costs and interest in chronological order, beginning with the earliest claim. The Controller shall report to each school district the amounts of any claims and interest that are offset from funds provided pursuant to this section and shall report a summary of the amounts offset for each mandate for each fiscal year to the Department of Finance and the fiscal committees of the Legislature.

(d) (1) The governing board of a school district may expend the one-time funds received pursuant to subparagraph (A) of paragraph (2) of subdivision (a) for any purpose, as determined by the governing board of the school district.

(2) It is the intent of the Legislature that school districts prioritize the use of these one-time funds for deferred maintenance, professional development for educators, induction for beginning teachers with a focus on relevant mentoring, instructional materials, technology infrastructure, and any other investments necessary to support implementation of California’s academic standards.

(Added by Stats. 2016, Ch. 29, Sec. 8. (SB 828) Effective June 27, 2016.)