Education Code section 52065.1
(a)
(1)If a local educational agency is identified pursuant to the audit described in Section 41020 as not having adopted a local control and accountability plan by July 1, as required pursuant to Section 47606.5, 52060, or 52066, as applicable, or as not having adopted an annual update to a local control and accountability plan by July 1, as required pursuant to Section 47606.5, 52060, or 52066, as applicable, the local educational agency shall be assessed a financial penalty equal to 20 percent of the local educational agency’s second principal apportionment local control funding formula entitlement pursuant to Section 2574, 2575, or 42238.02, as applicable.(2)
For each additional business day that the local educational agency does not adopt a local control and accountability plan or an annual update to a local control and accountability, the penalty described in paragraph (1) shall be increased by 1 percent of the local educational agency’s second principal apportionment local control funding formula entitlement pursuant to Section 2574, 2575, or 42238.02, as applicable, but shall not exceed a total of 80 percent of the second principal apportionment.(b)
A financial penalty applied pursuant to subdivision (a) shall (1) be a reduction to the principal apportionment made to the local educational agency for the applicable fiscal year pursuant to Section 41330, 41332, or 41335, as applicable, (2) not reduce the final apportionment below the amount necessary to meet the requirements of Section 6 of Article IX of the California Constitution, as specified in Section 41975, and Section 36 of Article XIII of the California Constitution, and (3) be modified, as applicable, if the delay is due to any of the events described in subdivision (a) of Section 46392.(c)
For purposes of this section, “local educational agency” means a school district, county office of education, or charter school.
Source:
Section 52065.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=EDC§ionNum=52065.1. (updated Jun. 27, 2025; accessed Jul. 14, 2025).
