(a) A school district of residence with an average daily attendance greater than 50,000 may limit the number of pupils transferring to a school district of choice pursuant to this article each year to 1 percent of its average daily attendance, as reported as of the first principal apportionment for the prior fiscal year.
(b) (1) A school district of residence with an average daily attendance of 50,000 or less may limit the number of pupils transferring to a school district of choice pursuant to this article each year to 3 percent of its average daily attendance, as reported as of the first principal apportionment for the prior fiscal year, and may limit the maximum number of pupils transferring out for the duration of the program authorized by this article to 10 percent of the average daily attendance for that period.
(2) (A) Upon the request of a school district of residence, the county office of education shall determine the percentage of pupils transferring out of the school district of residence for the duration of the program pursuant to paragraph (1).
(B) The county office of education shall request data from the school district of choice regarding the number of pupils transferring into the school district of choice.
(C) Notwithstanding subdivision (a) of Section 48301, if the school district of choice does not provide the number of pupils transferring into the school district of choice to the county office of education within 30 days, the school district of choice is prohibited from accepting new pupil transfers pursuant to this article until the school district of choice complies with the county office of education data request.
(D) Within 60 days of receiving the determination from the county office of education that the 10-percent cap has been reached, a school district of residence shall issue a letter to the county office of education and the school district of choice notifying them that the 10-percent cap has been reached and that further pupil transfers are prohibited.
(c) (1) If, pursuant to the audit described in Section 48301, a school district of choice is identified as having accepted pupils from a school district of residence pursuant to this article after a school district of residence has provided a notice pursuant to subparagraph (D) of paragraph (2) of subdivision (b) of this section or subparagraph (A) of paragraph (2) of subdivision (c) of Section 48308 that it has reached a limit specified in subdivision (a) or (b), as applicable, of this section, all of the following shall occur:
(A) The auditor shall determine the average daily attendance generated by each pupil in excess of the applicable cap whose transfer originated from the school district of residence subsequent to the notice, disaggregated by local control funding formula grade span.
(B) The auditor shall calculate the portion of the school district of choice’s local control funding formula apportionment attributable to the average daily attendance determined pursuant to subparagraph (A) and report that amount to the Superintendent.
(C) Notwithstanding any other law, the Superintendent shall reduce the school district of choice’s local control funding formula apportionment each year by the amount calculated and reported by the auditor.
(2) Pupils admitted to a school district of choice pursuant to this article before any audit findings pursuant to paragraph (1) may continue to attend that school district pursuant to this article.
(d) A school district of residence that has a qualified or negative status on the most recent budget certification completed by the county superintendent of schools in any fiscal year may limit the number of pupils who transfer out of the district in that fiscal year.
(e) Notwithstanding any prior or existing certification of a school district of residence pursuant to Article 3 (commencing with Section 42130) of Chapter 6 of Part 24, if a county superintendent of schools determines that a school district of residence would not meet the standards and criteria for fiscal stability specified in Section 42131 for the subsequent fiscal year exclusively due to the impact of additional pupil transfers pursuant to this article in that year, the school district of residence may limit the number of additional pupils who transfer in the upcoming school year pursuant to this article up to the number that the county superintendent of schools identifies beyond which number of additional transfers would result in a qualified or negative certification in that year exclusively as a result of additional transfers pursuant to this article.
(f) A school district of residence, upon receiving notification of a pupil’s acceptance into the school district of choice, may prohibit the transfer of a pupil pursuant to this article or limit the number of pupils so transferred if the governing board of the school district of residence determines that the transfer would negatively impact any of the following:
(1) The court-ordered desegregation plan of the school district of residence.
(2) The voluntary desegregation plan of the school district of residence, consistent with the provisions of Proposition 209, an initiative measure adopted by the voters at the November 5, 1996, statewide general election.
(3) The racial and ethnic balance of the school district of residence, consistent with the provisions of Proposition 209, an initiative measure adopted by the voters at the November 5, 1996, statewide general election.
(g) Notwithstanding any other provision of this article, a school district of residence shall not prohibit the transfer of a pupil who is a child of an active military duty parent.
(h) A school district of residence shall not adopt policies that in any way block or discourage pupils from applying for transfer to a school district of choice.
(i) Notwithstanding any other provision of this article, a pupil attending a school district of choice, or a pupil who received a notice of acceptance into a school district of choice before the school district of residence restricted further transfers pursuant to subdivision (d) or (e), shall be permitted to attend the school district of choice.
(Amended by Stats. 2024, Ch. 865, Sec. 5. (SB 897) Effective January 1, 2025.)