BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 360
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 360 (Brownley)
        As Amended  July 12, 2011
        Majority vote
         
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        |ASSEMBLY:  |50-27|(May 19, 2011)  |SENATE: |25-11|(July 14,      |
        |           |     |                |        |     |2011)          |
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         Original Committee Reference:    ED.  

         SUMMARY  :  Requires charter schools to comply with the same conflict 
        of interest requirements as school districts, commencing July 1, 
        2012.  

         The Senate amendments  :

        1)Specify that a person who provides a loan to a charter school due 
          to a school fiscal emergency, or who leases, or signs a guarantor 
          agreement relative to the lease of, real property to be occupied 
          by a charter school, is not disqualified because of that loan, 
          lease, or guarantor agreement from also serving as a member of the 
          governing body of the charter school or being an employee of the 
          charter school; declare these instances as remote interests for 
          purposes of the Government Code; and, specify that a member of the 
          governing body of a charter school who is a lessor or guarantor 
          shall abstain from voting on, or influencing or attempting to 
          influence another member of the governing body regarding, all 
          matters affecting the real property lease agreement or loan.

        2)Specify a member of the governing body of a charter school shall 
          abstain from voting on, or influencing or attempting to influence 
          another member of the governing body regarding all matters 
          uniquely affecting his or her own employment and personnel matters 
          that uniquely affect a member's relative.

        3)Delete the provision specifying for purposes of the Political 
          Reform  Act (PRA), the jurisdiction of a charter school shall be 
          the county or counties in which the school's facility or 
          facilities are located; the jurisdiction for a nonclassroom based 
          charter school that does not have a facility shall be the physical 
          boundaries of the county or counties where at least 10% of the 
          pupils who are enrolled in the school reside or, if at least 10% 
          of the pupils do not reside in a single county, the county in 








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          which the greatest number of pupils who are enrolled in the school 
          reside.

         AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to 
        the version passed by the Senate.   

        FISCAL EFFECT  :  This bill is keyed non-fiscal by the Legislative 
        Counsel.
         
        COMMENTS  :  This bill requires charter school governing board members 
        to comply with substantially similar conflict of interest policies 
        by which school district governing board members currently abide.  
        Recent news reports of charter school board members engaging in 
        inappropriate financial mismanagement have highlighted the need for 
        charter school conflict of interest laws to be clarified.  
        Currently, these investigations can take many months to resolve 
        partly due to the fact that charter school governing board members 
        and designated employees do not consistently file an annual 
        statement of economic interest, which makes public any potential 
        conflicts of interest that individual may have in their official 
        capacity.  While charter schools are given more autonomy than public 
        schools, their governing boards have authority over public funds to 
        be used for the educational benefit of their students.  Charter 
        school governing boards should be held to the same conflict of 
        interest standards as school district governing boards.  

        This bill requires charter school boards to file statements of 
        economic interest according to the Political Reform Act; specifies 
        that charter school board members may not be financially interested 
        in any decision made by the board; requires charter schools to 
        comply with the California Public Records Act; and, requires charter 
        school boards to abide by the Brown Act or the Bagley-Keene Open 
        Meetings Act.  The bill also expressly authorizes charter school 
        employees to serve on a charter school governing board.

        The Brown Act:  The Brown Act governs meetings conducted by local 
        legislative bodies, such as boards of supervisors, city councils, 
        and school boards.  The Brown Act represents the Legislature's 
        determination of how the balance should be struck between public 
        access to meetings of multi-member public bodies and the need for 
        confidential candor, debate, and information gathering.  

        California Public Records Act (CPRA):  The CPRA was enacted in 1968 
        and according to the Attorney General, in enacting the CPRA, the 
        Legislature stated that access to information concerning the conduct 








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        of the public's business is a fundamental and necessary right for 
        every person in the state.  Cases interpreting the CPRA also have 
        emphasized that its primary purpose is to give the public an 
        opportunity to monitor the functioning of their government.  

        Government Code Section 1090:  Government Code Section 1090 states 
        that Members of the Legislature, state, county, district, judicial 
        district, and city officers or employees shall not be financially 
        interested in any contract made by them in their official capacity, 
        or by any body or board of which they are members.  In a 1983 
        opinion the Attorney General stated, "Section 1090 of the Government 
        Code codifies the common law prohibition and the general policy of 
        this state against public officials having a personal interest in 
        contracts they make in their official capacities.  Mindful of the 
        ancient adage, that 'no man can serve two masters,' the section was 
        enacted to ensure that public officials 'making' official contracts 
        not be distracted by personal financial gain from exercising 
        absolute loyalty and undivided allegiance to the best interest of 
        the entity which they serve."

        Political Reform Act:  The Fair Political Practices Commission 
        (FPPC) was created by the Political Reform Act of 1974, a ballot 
        initiative passed by California voters as Proposition 9.  The FPPC 
        provides written and oral advice to public agencies and officials; 
        conducts seminars and training sessions; develops forms, manuals and 
        instructions; and, receives and files statements of economic 
        interests from many state and local officials.  The FPPC 
        investigates alleged violations of the Political Reform Act, imposes 
        penalties when appropriate, and assists state and local agencies in 
        developing and enforcing conflict-of-interest codes.  School board 
        members are required to comply with the PRA, and in so, must file a 
        statement of economic interest, annually.

        Previous legislation:  AB 572 (Brownley) of 2010 was substantially 
        similar to this bill and was vetoed by the Governor.
         

        Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087       
                                                          

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