1. (a) For the funding provided pursuant to Section 1860.3(a) School Districts must meet the following requirements for Project Savings and Unexpended Funds:

   1. (1) Project Savings -- With the exception of School Districts that receive Financial Hardship funding, a School District may expend or encumber the savings, and interest earned on State funds, on other high priority capital facility needs of the School District. Any savings not expended or encumbered after one year from the completion of the project, as specified in Section 1860.18, must be returned to the State.

   2. (2) Unexpended Funds -- For a project that receives a Financial Hardship grant, any funding not expended or encumbered on eligible project expenditures prior to completion of the project, as specified in Section 1860.18, must be returned to the State.

      1. (A) Any interest earned on State funds for a project that received Financial Hardship grant funding, that is not expended or encumbered on eligible project expenditures prior to completion of the project, as specified in Section 1860.18, must be returned to the State.
      2. (B) A School District is only required to return unexpended or unencumbered funds up to the amount of Financial Hardship grant funding provided by the Board.

2. (b) For the funding provided pursuant to Section 1860.3(b) and 1860.3(c) all School Districts may expend or encumber the savings, and interest earned on State funds, as follows:

   1. (1) Professional development to build capacity for the implementation of a California state preschool program, transitional kindergarten program or a full-day kindergarten program for the classrooms included in the project.
   2. (2) Instruction materials to build capacity for the implementation of a California state preschool program, transitional kindergarten program or a full-day kindergarten program for the classrooms included in the project.
   3. (3) Other high priority capital facility needs of the School District, that are allowable expenditures in accordance to the Grant Agreement.
   4. (4) Any savings, including interest, unexpended or unencumbered after one year from the completion of the project, as specified in Section 1860.18, must be returned to the State.

Note: Authority cited: Sections 17375(a) and 17375(h), Education Code. Reference: Sections 17375(a), 17375(b)(3), 17375(b)(4) and 17375(h), Education Code.

History

1. New section filed 12-14-2018 as an emergency; operative 12-14-2018 (Register 2018, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-12-2019 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 12-14-2018 order transmitted to OAL 6-11-2019 and filed 7-17-2019 (Register 2019, No. 29).

3. Repealer and new section and amendment of Note filed 2-18-2020 as an emergency; operative 2-18-2020 (Register 2020, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-17-2020 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-18-2020 order transmitted to OAL 8-14-2020 and filed 9-24-2020 (Register 2020, No. 39).

5. Amendment of subsections (b)(1)-(2) and amendment of Note filed 3-21-2022 as an emergency; operative 3-21-2022 (Register 2022, No. 12). A Certificate of Compliance must be transmitted to OAL by 9-19-2022 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 3-21-2022 order transmitted to OAL 9-16-2022 and filed 10-27-2022; amendments effective 10-27-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 43).

7. Amendment of subsection (b) filed 11-16-2022 as an emergency; operative 11-16-2022 (Register 2022, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-15-2023 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 11-16-2022 order transmitted to OAL 5-8-2023 and filed 6-20-2023 (Register 2023, No. 25).