BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 401
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          Date of Hearing:   April 13, 2011

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 AB 401 (Ammiano) - As Introduced:  February 14, 2011
           
          SUBJECT  :   Charter schools.

           SUMMARY  :  Establishes a state-wide cap of 1450 on the number of 
          charter schools that can operate until December 31, 2022; 
          establishes a 10% cap on the number of charter schools in any 
          individual school district, and, prohibits charter school 
          personnel with hiring authority from employing relatives.  
          Specifically,  this bill  :  

          1)Specifies in the 2012-13 school year, and each successive 
            school year after until December 31, 2022, the maximum total 
            number of charter schools authorized to operate in the state 
            to be 1450.

          2)Specifies that no more than 10% of the schools in a school 
            district may be charter schools; specifies that after that 
            limit is reached, the governing board of the school district 
            shall not approve additional charter petitions; and, specifies 
            that if the number of charter schools in a school district 
            exceeds this limit on July 1, 2012, those charter schools may 
            continue to operate but the governing board of the school 
            district shall not approve any other charter petitions.

          3)Prohibits charter school personnel, that work for a charter 
            school operated by a private entity, to advocate for, appoint, 
            employ, promote, or advance any individual who is a relative 
            to a position in the charter school or for a contract with the 
            charter school over which that person exercises jurisdiction 
            or control; and, specifies that the approval of budgets does 
            not constitute jurisdiction or control.

          4)Requires a petition for a charter school to include full 
            disclosure of the identity of all individuals who are 
            employed, plan to be employed by the charter school, or have a 
            contract with the charter school, who are related to the 
            charter school owner, president, chairperson of the governing 
            body, superintendent, governing body member, principal, 
            assistant principal, or any other person employed by the 
            charter school who has equivalent decision-making authority. 








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          5)Defines charter school personnel as a charter school owner, 
            president, chairperson of the governing body, superintendent, 
            governing body member, principal, assistance principal or any 
            other person employed by the charter school who has equivalent 
            decision-making authority to appoint, employ, promote or 
            advance individuals.

          6)Defines relative as a parent, child, sibling, uncle, aunt, 
            first cousin, nephew, niece, spouse, father-in-law, 
            mother-in-law, son-in-law, daughter-in-law, brother-in-law, 
            sister-in-law, stepparent, stepsibling, stepchild, half 
            brother or half sister.

           FISCAL EFFECT  :  This bill is keyed non-fiscal.

           EXISTING LAW  : 

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

          2)Establishes a process for the submission of a petition for the 
            establishment of a charter school.  Authorizes a petition, 
            identifying a single charter school 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 school, 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 the SBE.  
            Authorizes a school that serves a countywide service to submit 
            the charter petition directly to the county office of 
            education.  Authorizes a school that serves a statewide 
            purpose to go directly to the SBE.

          3)Authorizes commencing in the 1998-99 school year, 250 charter 
            schools; and, in the 1999-2000 school year, and in each 
            successive school year thereafter, authorizes an additional 
            100 charter schools to operate.









                                                                  AB 401
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           COMMENTS  :   According to the California Department of Education 
          (CDE), the 2009-10 count of operating charter schools is 815 
          with student enrollment of more than 323,000 in the state.  This 
          includes three statewide benefit charters and 20 SBE-approved 
          charters.  Some charter schools are new, while others are 
          conversions from existing public schools.  Charter schools are 
          part of the state's public education system and are funded by 
          public dollars.  A charter school is usually created or 
          organized by a group of teachers, parents and community leaders, 
          a community-based organization, or an education management 
          organization.  Charter schools are authorized by school district 
          boards, county boards of education or the state board of 
          education.  A charter school is generally exempt from most laws 
          governing school districts, except where specifically noted in 
          the law.  


          This bill will establish a state-wide cap of 1450 on the number 
          of charter schools that can operate and establish a 10% cap on 
          the number of charter schools in a single school district.  This 
          bill also establishes anti-nepotism hiring standards for charter 
          schools operated by private entities.  According to the author, 
          current law only provides an increasing cap on the number of 
          charter schools and little or no accountability.  Many reports 
          including the Stanford Center for Research on Education Outcomes 
          (CREDO) report demonstrate that charter schools are not the 
          panacea for closing the achievement gap; however, they are 
          provided wide sweeping power and no true accountability.  While 
          the current cap is much higher than the actual number of charter 
          schools in the state, the growth in the number charters is 
          accelerating.  One of the many concerns with current law is the 
          lack of employment guidelines for these publicly funded schools. 
           In other states, like that of Florida, there are guidelines for 
          charter schools on hiring, promoting, and assigning relatives.  
          This bill attempts to address nepotistic hiring practices within 
          these schools.

           Charter School Cap  .  This bill will establish a state-wide cap 
          of 1450 charter schools.  The 2010-11 state-wide cap on charter 
          schools is 1450 and there are 911 existing charter schools that 
          have been authorized.  Since this cap is well above the current 
          number of charter schools state-wide, the California Federation 
          of Teachers (CFT) argues that it will not inhibit the growth of 
          charter schools for many years.  The committee should consider 








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          whether a statewide cap of 1450 will inhibit charter school 
          growth.  Typically, bills that contain a sunset date also 
          contain a report.  The committee should consider whether it 
          would be appropriate to include a report to the Legislature on 
          the state-wide cap in the year prior to the sunset date.  


          (Source: California Department of Education)
           
           In the last 10 years, on average, there were 86 charter schools 
          approved each year.  If this same rate of approval continues in 
          the future, one could estimate that the cap of 1450 established 
          by this bill would be reached during the 2016-17 school year.  
          Because the sunset date for this bill is in 2022, the cap of 
          1450 will likely be reached before the sunset date.  The 
          committee should consider whether it is appropriate to limit the 
          number of charter schools state-wide.  

          The bill also adds a 10% cap on the number of charter schools 
          operating in an individual school district.  Currently, several 
          school districts already have more charter schools than would be 
          authorized with the 10% cap.  While the bill grandfathers in 
          existing charter schools above the cap, this bill would prohibit 
          any more charter schools from being approved by these school 
          districts.  CFT, the sponsor of the bill, argues that the 10% 
          district-wide cap does not impact the ability of county offices 
          of education or the SBE to approve charter schools in districts 
          that are currently above the 10% cap.  The committee should 
          consider whether prohibiting the growth of charter schools 
          (approved by the district governing board) in districts such as 
          Los Angeles Unified and San Diego Unified, among others, is 
          appropriate.  

           Hiring Practices  .  This bill establishes anti-nepotism 
          employment standards for charter schools operated by private 
          entities.  The provisions in this bill model existing charter 
          school law in Florida regarding employment prohibitions and 
          disclosure.  Florida's charter law requires an initial petition 
          for a charter school to include full disclosure of any relatives 
          that have been hired by the decision makers at the school, and 
          it prohibits decision makers at operational charter schools from 
          hiring relatives.  

           Arguments in Support  :  According to CFT, there are groups, 
          foundations, and charter management organizations that are using 








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          charter schools as a way to privatize public schools, accessing 
          tax payer money for the use and access of a few.  For many, 
          charter schools have become a place to be the exception to the 
          rules: rules of accountability, public transparency, workers' 
          rights and most importantly students' rights.  They should not 
          be exempted from public employment practices.  They should be 
          financially responsible and transparent.  Until charter schools 
          actually follow the rules of student access, academic financial 
          accountability, and employment laws, they should not be allowed 
          to grow to numbers that rob the resources of our neighborhood 
          schools.

           Arguments in Opposition  :  According to the California Charter 
          Schools Association, AB 401 would reinstate a firm cap (1450) on 
          charter schools through 2022.  This is an old issue that has 
          been resolved by the Legislature with the incremental cap 
          language currently in statute.  While the charter school 
          movement is growing in California, there is universal agreement 
          that it is not growing as fast as the current limits allow.  
          Moreover, imposing a hard cap is a step backward, creating 
          unnecessary artificial and arbitrary limits on charter schools 
          after years of nurturing their responsible growth and embracing 
          them as an important resource in our public education system.

           Committee Amendments  :  Staff recommends the bill be amended in 
          the following ways:
          1)Add a reporting requirement to the Legislature the year prior 
            to the sunset date.  
          2)Change the sunset date to December 31, 2016.
          3)Delete the 10% district-wide cap on charter schools.

           Previous legislation  :  AB 1982 (Ammiano) from 2010, which failed 
          passage in the Senate Education Committee, was similar to this 
          bill and established until December 31, 2016, a state-wide cap 
          of 1450 on the number of charter schools that can operate and 
          prohibits charter schools personnel with hiring authority from 
          employing relatives.

          AB 8 X5 (Brownley) from 2009, which was held in the Senate 
          Education Committee at the request of the author, proposed 
          comprehensive changes to the Education Code consistent with the 
          federal Race to the Top (RTTT) program; and, deleted the 
          statewide charter school cap; proposed enhanced charter school 
          fiscal and academic accountability standards.  









                                                                  AB 401
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          AB 3 X5 (Torlakson) from 2009 deleted the statewide charter 
          school cap and proposed changes to the measurable student 
          outcomes, renewal and revocation procedures for charter schools. 
           This bill was introduced but was not referred to a committee.

           REGISTERED SUPPORT / OPPOSITION  :   
           
          Support 
           
          California Federation of Teachers (Sponsor)
          California Labor Federation
          California School Employees Association
          California Teachers Association
          United Teachers Los Angeles


           Opposition 
           
          California Charter Schools Association
          K-12, Inc.
          Los Angeles Unified School District
          School for Integrated Academics and Technologies (SIATech)


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