(a) On or before January 31, 2014, the state board shall adopt regulations that govern the expenditure of funds apportioned on the basis of the number and concentration of unduplicated pupils pursuant to Sections 2574, 2575, 42238.02, and 42238.03. The regulations shall include, but are not limited to, provisions that do all of the following:

(1) Require a school district, county office of education, or charter school to increase or improve services for unduplicated pupils in proportion to the increase in funds apportioned on the basis of the number and concentration of unduplicated pupils in the school district, county office of education, or charter school.

(2) Authorize a school district, county office of education, or charter school to use funds apportioned on the basis of the number of unduplicated pupils for schoolwide purposes, or, for school districts, districtwide purposes, for county offices of education, countywide purposes, or for charter schools, charterwide purposes, in a manner that is no more restrictive than the restrictions provided for in Title I of the federal No Child Left Behind Act of 2001 (20 U.S.C. § 6301, et seq.).

(b) The state board may adopt emergency regulations for purposes of this section.

(c) Commencing with the local control and accountability plan and the annual update to the local control and accountability adopted on or before July 1, 2022, each school district, county office of education, and charter school shall do both of the following:

(1) Annually calculate the total difference between the total budgeted expenditures on planned actions reported in the local control and accountability plan pursuant to paragraph (4) of subdivision (b) of Section 52064 and the total estimated actual expenditures for those actions reported in the local control and accountability plan pursuant to paragraph (7) of subdivision (b) of Section 52064.

(2) If the total budgeted expenditures on planned actions reported in the local control and accountability plan pursuant to paragraph (4) of subdivision (b) of Section 52064 is less than the estimate described in paragraph (5) of subdivision (b) of Section 52064, annually determine the total percentage point difference, if any, between the total planned quality improvements based on the planned specific actions reported in the local control and accountability plan pursuant to subparagraph (B) of paragraph (4) of subdivision (b) of Section 52064 and the total actual quality improvements for those actions reported in the local control and accountability plan pursuant to paragraph (7) of subdivision (b) of Section 52064.

(d) If the total estimated actual expenditures and the total actual quality improvements described in paragraphs (1) and (2) of subdivision (c) are less than the total budgeted expenditures and the total planned quality improvements described in paragraphs (1) and (2) of subdivision (c), and together these efforts are less than the total increase or improvement in services required by paragraph (1) of subdivision (a), all of the following requirements shall apply:

(1) The difference shall be expressed as an unused portion of the increase in funds apportioned on the basis of the number and concentration of unduplicated pupils in the school district, county office of education, or charter school set forth in paragraph (1) of subdivision (a).

(2) The funds herein shall be expended only to implement specific actions that satisfy the requirements for specific actions to be considered as contributing toward meeting the increased or improved services requirement pursuant to the regulations adopted by the state board pursuant to subdivision (a).

(3) The local educational agency shall report the planned uses of the funds in its local control and accountability plan pursuant to Section 52064.

(e) The requirements in subdivision (d) are independent and additional to the requirement to increase or improve services for the ensuing fiscal year established in regulations adopted by the state board pursuant to subdivision (a).

(Amended by Stats. 2021, Ch. 44, Sec. 29. (AB 130) Effective July 9, 2021.)