BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 284
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          Date of Hearing:   January 11, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                   AB 284 (Garrick) - As Amended:  January 4, 2010
           
          SUBJECT  :   Charter schools: petitions.

           SUMMARY  :   Allows the governing board of a California Community  
          College District (CCCD) to authorize a petition to establish a  
          charter school (charter) within the county in which the CCCD  
          maintains a campus.   Specifically,  this bill  :  

          1)Allows a petition to establish a charter to be submitted for  
            approval to a CCCD governing board, if the petition proposes  
            to establish a charter within the county in which the CCCD  
            maintains a campus.  Authorizes the CCCD governing board to  
            grant approval of the petition.

          2)Requires the CCCD governing board that grants a charter  
            petition to assume all of the duties, responsibilities,  
            functions and obligations that the governing board of a school  
            district assumes when it grants a charter petition.

          3)Requires a charter established pursuant to this legislation to  
            receive the state aid portion of the charter's total  
            general-purpose entitlement, categorical block grant, other  
            state and federal categorical aid, and lottery funds directly  
            and specifies that the process for directly funding the  
            charter pursuant to this section shall follow the existing  
            process established in the Education code.

          4)Requires the CCCD governing board that decides to accept  
            petitions for charters to inform the State Board of Education  
            (SBE) and provides that once SBE receives notices from CCCD  
            that they have decided to accept ten petitions for charters,  
            SBE shall inform the California Community Colleges (CCC) that  
            no CCCD may agree to accept any additional petitions for a  
            charter.

          5)Requires the California Department of Education to prepare an  
            analysis of the efficacy of CCCDs approving petitions for  
            charters and requires the analysis to be provided to SBE, the  
            governor, the CCC Chancellor, and the Senate and Assembly  
            Education Committees by January 1, 2013.








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           EXISTING LAW  

          1)Establishes CCC with the primary mission to offer academic and  
            vocational instruction at the lower division level of  
            postsecondary education for students, including those persons  
            returning to school, and not beyond the second year of  
            college.

          2)Establishes the Charter Schools Act of 1992, authorizing a  
            school district, a county office of education or SBE to  
            approve or deny a petition for a charter to operate  
            independently from the existing school district structure as a  
            method of accomplishing, among other things, improved student  
            learning.

          3)Establishes a process for submitting a petition for the  
            establishment of a charter.  Authorizes a petition,  
            identifying a single charter to operate within the  
            geographical boundaries of the school district, to be  
            submitted to the school district.  Authorizes, if the  
            governing board of a school district denies a petition for the  
            establishment of a charter, the petitioner to elect to submit  
            the petition to the county board of education.  Authorizes, if  
            the county board of education denies the charter, the  
            petitioner to submit the petition to SBE.  Authorizes a school  
            that serves a countywide service to submit the charter  
            petition directly to the county office of education.   
            Authorizes a charter that serves a statewide purpose to submit  
            the petition directly to SBE.

          4)Authorizes a charter to be granted for not more than five  
            years.  Authorizes a charter granted by a school district,  
            county board of education or SBE to be granted one or more  
            renewals by that entity for five years.  Requires the renewals  
            and material revisions of the charter to be based on the same  
            standards for the original charter petition.  
           
          FISCAL EFFECT  :   Unknown

           COMMENTS  :    Double referral  :  This bill is double referred to  
          the Assembly Education Committee.  Thus, this analysis will  
          focus only on the role of CCC included in this bill and will not  
          discuss the broader issues related to K-12.  









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           COMMENTS  :   Background  :  According to information provided by the  
          Assembly Education Committee, the 2008-09 count of operating  
          charters is 746 with student enrollment of more than 285,000 in  
          this state.  Charters are part of the state's public education  
          system and are funded by public dollars.

           Purpose of this bill  :  According to the author, existing law  
          fosters a conflict of interest in most cases.  School districts  
          have their own schools to run, often placing charters on a much  
          lower priority; often don't have the resources or capacity to  
          oversee charters effectively; and, for some school districts  
          that are having difficulty meeting the educational needs of its  
          students, it is incongruous to be judging the ability of a  
          charter to educate its students.  The author argues that  
          colleges provide an often more solid foundation for the creation  
          and oversight of a charter.  They are often incubators for  
          innovative and creative programs and in many ways are better  
          positioned to provide guidance and oversight for charters that  
          school districts cannot.

           Colleges and universities are authorizers in other states  :   
          Currently there are 15 states that allow multiple entities to  
          authorize charters.  A smaller number of states currently  
          incorporate higher education institutions into their charter  
          authorizing system.  The key difference is that universities and  
          colleges are often the primary authorizers of charters in most  
          of these states, which include Indiana, Michigan, Missouri, New  
          York, Ohio and Wisconsin.  In New York, charters are primarily  
          authorized by the State University of New York (SUNY), which may  
          authorize up to 100 charters.  In Michigan, the state's colleges  
          and universities monitor the majority of the charters.  In  
          Missouri, charters are limited to St. Louis and Kansas City, but  
          public universities in both cities are allowed to authorize  
          charters.  

           California colleges are currently involved with charter schools  :  
           Several universities are already involved in the operation of  
          charters.  CSU Northridge operates closely with the Vaughn  
          Learning Center; CSU Dominguez Hills has a relationship with New  
          Millennium Charter School of Carson; CSU Fresno has the  
          University High School Charter located on their campus;  CSU  
          Sacramento has relationships with three charters in the  
          Sacramento Unified School District; CSU San Jose has a  
          relationship with Pacific Collegiate School in Santa Cruz; CSU  
          Los Angeles has partnered with and plays an active role in the  








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          operation of at least two charters; UC San Diego has the Preuss  
          Charter School located on their campus; and the University of  
          Southern California (USC) works with various magnet schools and  
          provides teacher and technical assistance to several nearby  
          inner-city charter schools.  These examples demonstrate the  
          ability of universities and colleges to have close involvement  
          with charters under the existing charter authorizing laws.  With  
          such extensive involvement in charters already, the committee  
          should consider if CCCDs need to be authorizers in order to be  
          meaningfully involved with charters.
                   
           Are CCCDs appropriate charter authorizers  ?  A CCCD governing  
          board is elected to oversee and develop policies that deal with  
          community college issues.  Under this bill, a CCCD that  
          authorizes a charter school would assume significant fiscal and  
          legal responsibilities associated with monitoring the charter's  
          performance.  The committee may wish to consider whether CCCD  
          governing boards are prepared or have the staffing capacity to  
          take on this new responsibility.  Additionally, it is not clear  
          as to whether any CCCD would choose to become a charter school  
          authorizer.  The CCC system is suffering budget reductions and  
          has been hit hard during the current economic crisis.  The  
          Committee may wish to consider whether it is appropriate for  
          CCCDs to undertake new and significant responsibilities in the  
          current budget climate when the CCC system is being forced to  
          issue staff layoffs and eliminate large numbers of course  
          sections.
           
          There is potential for inconsistencies in charter approval and  
          denial processes  :  This bill does not specify a process for CCCs  
          to use in considering charter applications for approval or  
          denial.  This means that each CCCD could be at liberty to create  
          its own unique charter approval process.  Additionally, this  
          could mean that the charter approval process at a CCC could be  
          vastly different than the current system set up for school  
          districts to authorize charters.  This raises questions as to  
          whether charter petitions would be held to the same standards in  
          terms of the assurances they are required to meet under existing  
          law with regard to student outcomes, racial and ethnic balance,  
          admission requirements, and school governance.  The Committee  
          may wish to consider the process by which CCCDs could approve or  
          deny charter petitions, and how a different system might affect  
          student outcomes in these charters.  

           Role of the CCC Chancellor's Office  :  This bill does not specify  








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          a role for the CCC Chancellor's Office but raises questions  
          about how the Chancellor's Office would oversee various  
          activities associated with this proposal.  For example, the bill  
          requires that CCCDs notify SBE whenever there is a new charter  
          school petition approved by a CCCD.  It is unclear if the  
          Chancellor's Office would be expected to perform this duty on  
          behalf of CCCDs, which is typically how state reporting is  
          handled.  This bill also raises question about whether  
          Proposition 39 facilities funds are made available to  
          CCC-approved charter schools and how to disperse Proposition 98  
          education funds.  Each of these issues would have to be analyzed  
          and overseen by the Chancellor's Office.  The Committee may wish  
          to consider whether it is appropriate to add a significant new  
          responsibility to the Chancellor's Office, which has been hard  
          hit by budget cuts in recent years.

           Previous efforts  :  AB 39 (Walters) of 2005, would have  
          authorized a pilot project for the chancellor of a campus of the  
          UC, the president of a campus of the CSU, or the governing board  
          of a CCCD to approve a petition submitted to establish a charter  
          school within the county in which that entity is located or  
          maintains a campus.  The pilot would have permitted each segment  
          of higher education to administer one charter school per campus,  
          not to exceed 10 charter schools per segment.  The bill was  
          referred to but never heard by the Assembly Education or Higher  
          Education Committees.

          AB 2764 (Bates) of 2004, would have authorized a pilot project  
          for the chancellor of a campus of the UC, the president of a  
          campus of the CSU, or the governing board of a community college  
          district to approve a petition submitted to establish a charter  
          school within the county in which that entity is located or  
          maintains a campus.  The pilot would have permitted each segment  
          of higher education to administer 1 charter school per campus,  
          not to exceed 10 charter schools per segment.  AB 2764 was held  
          on the Assembly Appropriations Suspense File.     

          AB 1464 (Bates) from 2003 would have authorized non-profit  
          charitable organizations, the governing body of a private  
          university or college that offers a specified teacher training  
          program, the chancellor of a campus of the UC, the president of  
          a campus of the CSU, or the governing board of a CCCD to approve  
          a petition submitted to establish a charter school within the  
          county in which that entity is located or maintains a campus.   
          That bill would have also authorized the mayor of a city having  








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          a population of 250,000 or more to approve a petition submitted  
          to establish a charter school within that city.  AB 1464 was  
          held in the Assembly Education Committee at the request of the  
          author.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Charter Schools Association (Sponsor)

           Opposition 
           
          California Community Colleges Chancellor's Office
          California County Boards of Education
          California Federation of Teachers
          California School Boards Association
          Faculty Association of California Community Colleges


           Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960