BILL NUMBER: SB 20 CHAPTERED 09/21/07 CHAPTER 215 FILED WITH SECRETARY OF STATE SEPTEMBER 21, 2007 APPROVED BY GOVERNOR SEPTEMBER 21, 2007 PASSED THE SENATE SEPTEMBER 6, 2007 PASSED THE ASSEMBLY SEPTEMBER 5, 2007 AMENDED IN ASSEMBLY AUGUST 31, 2007 AMENDED IN ASSEMBLY AUGUST 28, 2007 AMENDED IN ASSEMBLY JULY 17, 2007 AMENDED IN ASSEMBLY JULY 3, 2007 AMENDED IN SENATE JUNE 5, 2007 AMENDED IN SENATE JUNE 4, 2007 AMENDED IN SENATE MAY 1, 2007 AMENDED IN SENATE APRIL 18, 2007 AMENDED IN SENATE APRIL 10, 2007 AMENDED IN SENATE MARCH 21, 2007 INTRODUCED BY Senator Torlakson (Principal coauthors: Assembly Members Nunez and Laird) (Coauthors: Assembly Members Leno and Portantino) DECEMBER 4, 2006 An act to amend Sections 47605.8 and 47614.5 of the Education Code, relating to charter schools, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 20, Torlakson. Charter schools. (1) The Charter Schools Act of 1992, as amended, authorizes a petition for the operation of a state charter school to be submitted directly to the State Board of Education. The state board is authorized to approve a charter for the operation of a state charter school that may operate at multiple sites throughout the state. The act prohibits the state board from approving a petition to establish a state charter school unless it finds that the proposed state charter school will provide instructional services of statewide benefit that cannot be provided by a charter school operating in only one school district, or in only one county. This bill would require the state board to base the statewide benefit finding on substantial evidence. (2) The act requires the state board to adopt regulations that ensure a state charter school approved pursuant to the authority described in (1) above meets all requirements otherwise imposed on charter schools pursuant to the act, except for the geographic and site limitations otherwise imposed on charter schools. This bill, in addition, would require the charter to ensure that the governing board of each school district in which a state charter schoolsite is proposed to be located is notified 120 days prior to the commencement of instruction at each schoolsite, as applicable. (3) Existing law establishes the Charter School Facility Grant Program to be administered by the State Department of Education for the purposes of providing assistance with facilities rent and lease costs for pupils in state charter schools. The bill would appropriate $18,000,000 from the Proposition 98 Reversion Account to the State Department of Education, on a one-time basis, for the Charter School Facility Grant Program. A charter school receiving these funds would be eligible for up to 75% of the total annual facilities rent and lease costs it incurred in the 2006-07 fiscal year. The bill also would declare the intent of the Legislature that not less than $18,000,000 annually be appropriated for purposes of the grant program on the same basis as other elementary and secondary education categorical programs. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 47605.8 of the Education Code is amended to read: 47605.8. (a) A petition for the operation of a state charter school may be submitted directly to the state board, and the state board shall have the authority to approve a charter for the operation of a state charter school that may operate at multiple sites throughout the state. The State Board of Education shall adopt regulations, pursuant to the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code) for the implementation of this section. Regulations adopted pursuant to this section shall ensure that a charter school approved pursuant to this section meets all requirements otherwise imposed on charter schools pursuant to this part, except that a state charter school approved pursuant to this section shall not be subject to the geographic and site limitations otherwise imposed on charter schools. The petitioner shall submit a copy of the petition, for notification purposes, to the county superintendent of schools of each county in which the petitioner proposes to operate the state charter school. The petitioner also shall ensure that the governing board of each school district in which a site is proposed to be located is notified no later than 120 days prior to the commencement of instruction at each site, as applicable. (b) The state board shall not approve a petition for the operation of a state charter school pursuant to this section unless the state board makes a finding, based on substantial evidence, that the proposed state charter school will provide instructional services of statewide benefit that cannot be provided by a charter school operating in only one school district, or only in one county. The finding of the state board in this regard shall be made part of the public record of the proceedings of the state board and shall precede the approval of the charter. (c) The state board, as a condition of charter petition approval, may enter into an agreement with a third party, at the expense of the charter school, to oversee, monitor, and report on, the operations of the state charter school. The state board may prescribe the aspects of the operations of the state charter school to be monitored by the third party and may prescribe appropriate requirements regarding the reporting of information concerning the operations of the state charter school to the state board. (d) The state board shall not be required to approve a petition for the operation of a state charter school, and may deny approval based on any of the reasons set forth in subdivision (b) of Section 47605.6. SEC. 2. Section 47614.5 of the Education Code is amended to read: 47614.5. (a) The Charter School Facility Grant Program is hereby established and shall be administered by the department. The grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools. (b) Subject to the annual Budget Act, eligible schools shall receive an amount of up to, but not more than, seven hundred fifty dollars ($750) per unit of average daily attendance, as certified at the second principal apportionment, to reimburse an amount of up to, but not more than, 75 percent of the annual facilities rent and lease costs for the charter school. In any fiscal year, if the funds appropriated for the purposes of this section by the annual Budget Act are insufficient to fund the approved amounts fully, the Superintendent shall apportion the available funds on a pro rata basis. (c) For purposes of this section, the department shall do all of the following: (1) Inform charter schools of the grant program. (2) Upon application by a charter school, determine eligibility, based on the geographic location of the charter schoolsite, pupil eligibility for free or reduced price meals, and a preference in admissions, as appropriate. Eligibility for funding shall not be limited to the grade level or levels served by the school whose attendance area is used to determine eligibility. Charter schoolsites are eligible for funding pursuant to this section if the charter schoolsite meets either of the following conditions: (A) The charter schoolsite is physically located in the attendance area of a public elementary school in which 70 percent or more of the pupil enrollment is eligible for free or reduced priced meals and the schoolsite gives a preference in admissions to pupils who are currently enrolled in that public elementary school and to pupils who reside in the elementary school attendance area where the charter schoolsite is located. (B) Seventy percent or more of the pupil enrollment at the charter schoolsite is eligible for free or reduced price meals. (3) Inform charter schools of their grant eligibility. (4) Reimburse charter schools for eligible expenditures in a timely manner. (5) No later than June 30, 2005, report to the Legislature on the number of charter schools that have participated in the grant program pursuant to the expanded eligibility prescribed in paragraph (2). In addition, the report shall provide recommendations and suggestions on improving the grant program. (d) Funds appropriated for purposes of this section shall not be apportioned for any of the following: (1) Units of average daily attendance generated through nonclassroom-based instruction as defined by paragraph (2) of subdivision (d) of Section 47612.5 or that does not comply with conditions or limitations set forth in regulations adopted by the state board pursuant to this section. (2) Charter schools occupying existing school district or county office of education facilities. (3) Charter schools receiving reasonably equivalent facilities from their chartering authority pursuant to Section 47614. (e) Funds appropriated for purposes of this section shall be used for costs associated with facilities rents and leases, consistent with the definitions used in the California School Accounting Manual. These funds also may be used for costs, including, but not limited to, costs associated with remodeling buildings, deferred maintenance, initially installing or extending service systems and other built-in equipment, and improving sites. (f) If an existing charter school located in an elementary attendance area in which less than 50 percent of pupil enrollment is eligible for free or reduced price meals relocates to an attendance area identified in paragraph (2) of subdivision (c), admissions preference shall be given to pupils who reside in the elementary school attendance area into which the charter school is relocating. (g) The Superintendent annually shall report to the state board regarding the use of funds that have been made available during the fiscal year to each charter school pursuant to the grant program. (h) It is the intent of the Legislature that not less than eighteen million dollars ($18,000,000) annually be appropriated for purposes of the grant program on the same basis as other elementary and secondary education categorical programs. SEC. 3. The sum of eighteen million dollars ($18,000,000) is hereby appropriated from the Proposition 98 Reversion Account to the State Department of Education, on a one-time basis, for the Charter School Facility Grant Program, as set forth in Section 47614.5 of the Education Code. Each charter school that is eligible pursuant to Section 47614.5 of the Education Code and is receiving funds appropriated in this section shall be eligible for up to 75 percent of the total annual facilities rent and lease costs it incurred in the 2006-07 fiscal year.