CA AB2435

Requires the State Department of Education and other state agencies administering federal or state grants to school districts to allow indirect cost rates at least equal to the rate established by the department, unless federal or state law requires a lower rate.

Defines indirect costs as agency-wide general management costs for direction and control of operations, including accounting, budgeting, payroll, personnel services, purchasing, and data processing.

Defines direct costs as costs providing measurable direct benefits to particular programs, including teacher salaries, instructional supplies, textbooks, and student counseling, health, and transportation services.

Applies to school districts, county offices of education, and other educational agencies deemed eligible under state and federal law.

Sunsets on January 1, 2016, unless extended by subsequent legislation enacted before that date.