BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1362
                                                                  Page  1

          Date of Hearing:   April 13, 2011

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                AB 1362 (Nestande) - As Introduced:  February 18, 2011
           
          SUBJECT  :   Pupil attendance: electronic attendance accounting 
          systems

           SUMMARY  :   Clarifies authorities and requirements related to the 
          use of electronic attendance accounting (EAA) systems.  
          Specifically,  this bill  :

          1)Clarifies that attendance records from more than one 
            attendance accounting system, including manual and electronic 
            systems, may be combined to satisfy the requirement that 
            absences and attendance for each pupil be kept in a state 
            school register or central file.

          2)Clarifies that local educational agencies are authorized to 
            use EAA systems approved by the California Department of 
            Education (CDE) to demonstrate that pupils have met minimum 
            instructional time requirements and to compute average daily 
            attendance (ADA) for funding purposes.

          3)Requires EAA systems, for purposes of these provisions, to 
            track the original date and time of each data entry and to 
            uniquely identify the data recorder.

           EXISTING LAW  :

          1)Requires pupil attendance in all schools and classes to be 
            recorded and kept according to statute and regulations.

          2)Requires a state school register to be kept by every public 
            elementary school teacher except where:

             a)   The state school register is kept on behalf of the 
               teacher by a central office employee of the district.
             b)   The teacher's school keeps a central file of pupil 
               enrollment, absence and attendance on forms prescribed by 
               the CDE and where periodic reports are provided to the 
               district central office.

          3)Requires the absence and attendance of each enrolled pupil to 








                                                                  AB 1362
                                                                  Page  2

            be kept in a state school register by the teacher or according 
            to the exceptions noted above.

          4)Requires high school and junior high school attendance to be 
            kept on forms approved by the CDE.

          5)Provides for the allocation of billions of dollars in 
            education funding on the basis of pupil attendance.

           FISCAL EFFECT :   Unknown

           COMMENTS  :   The immediate supervision of pupils by a 
          certificated employee of the school district (i.e., a teacher) 
          not only lies at the heart of the state's mechanism for 
          delivering educational services, but is also the foundation of 
          the state's current attendance accounting and revenue limit 
          funding system.  The bulk of funding for K-12 education in 
          California is provided on the basis of attendance, specifically 
          ADA.  As a student attends class (within specified daily 
          minimums and maximums) more frequently, the district receives 
          greater credit toward ADA, and the district is provided a higher 
          level of funding.  Attendance in class is implicitly equated to 
          'time on task', so that districts are funded on the basis of 
          students being in class and, thus, on task.  With the allocation 
          of more than $30 billion in public school funding depending on 
          attendance, the durability, accuracy and security of the systems 
          used to collect and report pupil attendance information is 
          clearly important.

          Historically, a teacher would log daily attendance of each 
          student in an attendance register or on forms which the CDE 
          approved; the teacher would then certify the information by 
          dating and signing the attendance register or form, providing 
          contemporaneous proof as to the accuracy and factual nature of 
          the attendance record.  This proof was and is important in that 
          attendance and the records of attendance that local educational 
          agencies (LEAs) keep are heavily audited as part of the annual 
          independent financial and compliance audit that school districts 
          and county offices of education are required to conduct.  For 
          those auditing purposes, the district must retain these signed 
          attendance forms for three years; any missing, misdated or 
          unsigned attendance form could be the basis of an audit finding 
          resulting in the reported attendance being disallowed.  
          Disallowed attendance means that the LEA was initially funded on 
          the basis of ADA that is now found to be over-reported, thus 








                                                                  AB 1362
                                                                  Page  3

          funding for the LEA is recalculated and the LEA may then be 
          required to repay funds to the state.  Each year a number of 
          audits yield findings whereby attendance disallowed upon audit; 
          some findings amount to millions of dollars in lost funding to 
          local educational agencies.

          More typically, current teachers record student attendance each 
          day electronically by computer, though many still record 
          attendance manually on a paper attendance roster.  At the end of 
          the week, the teacher prints the attendance forms, reviews them 
          for accuracy, and certifies the attendance records by signing 
          and dating the forms.  Thus an EAA system may still rely on a 
          manual signature or certification, thus creating a 
          contemporaneous paper record for audit purposes.  Warehouses 
          full of stored paper attendance records are testament to the 
          fact that the full potential of electronic attendance accounting 
          is not being tapped in this type of EAA system.

          In February 2008, the CDE notified all county and district 
          superintendents of the intent of the CDE to allow such local 
          educational agencies (LEAs) to replace manual teacher signatures 
          with digital signatures or other electronic certification 
          processes.  CDE's authority for making this change comes from 
          the statutory requirement that the CDE approve all forms used in 
          attendance accounting systems, and thus the requirements of the 
          systems themselves; this statutory authority has been 
          historically interpreted to mean that the CDE may approve 
          attendance accounting systems of any design, as long as those 
          systems keep attendance and absence information in a manner that 
          satisfies audit requirements and is consistent with statutory 
          requirements in other areas such as pupil privacy .  In an EAA 
          system with digital signatures or electronic certification, a 
          teacher uses a secure computerized system to enter a pupil's 
          attendance or absence, and then uses some form of secure 
          identification, such as a password, to certify the information 
          entered as correct.  This online certification, or digital 
          signature, creates the contemporaneous record of the pupil's 
          attendance.  In this type of system there is be no need to print 
          attendance forms or require a manual signature from the teacher 
          for auditing purposes.  Auditors can draw audit samples from the 
          electronically certified attendance data, and LEAs are not 
          required to fill warehouses with stored paper attendance forms.  
          This approach may also reduce the risk of misplaced or unsigned 
          attendance forms that would lead to audit findings and lost 
          funding.








                                                                  AB 1362
                                                                  Page  4


          In 2009 the CDE began approving EAA systems with digital 
          signatures and electronic certification; in order to implement 
          such a system, a local educational agency must seek approval 
          from the CDE and implement a system that minimally contains all 
          the following characteristics:

          1)A current system based on manual signatures had to have been 
            previously approved for the local educational agency by the 
            CDE.

          2)The EAA system has a procedure to track and verify that 
            initial attendance is entered on the same calendar day for 
            which the attendance is being recorded. Under certain 
            circumstances, such as wide-spread power outages or system 
            interruptions teachers may be allowed to electronically submit 
            and certify attendance on a subsequent day, but they must 
            retain the paper documentation on which attendance was 
            contemporaneously recorded.

          3)The EAA system includes a report that lists the dates on which 
            data was entered or modified, and the employee identification 
            of the person or persons recording the attendance information.
           
          4)The report in #3 above is readily accessible to teachers and 
            administrators for review.

          5)There are adequate safeguards to ensure that any passwords or 
            secure employee identifiers are accessible only to the 
            employee for whom the password or identifier is created.

          6)Submission of the EAA for CDE approval includes a letter from 
            the local educational agency's independent auditor, indicating 
            that the attendance accounting system has been reviewed by the 
            auditor and that the system's level of integrity is acceptable 
            to the auditor.

          Even with CDE approval of an EAA system with digital signatures 
          and electronic certification, the local educational agency 
          remains responsible for the integrity of the attendance 
          information for the purposes of audit.

          According to the author, this bill proposes to "Update 
          attendance accounting rules to allow for aggregate cumulative 
          minutes accounting using both manual "and" electronic reporting, 








                                                                  AB 1362
                                                                  Page  5

          if approved by the California Department of Education (CDE).  
          This change will help schools accelerate the move to already 
          authorized electronic attendance accounting and digital 
          signature reporting, which will help schools streamline 
          attendance accounting and achieve significant cost-savings."  
          Though this type of system, if proposed by a local educational 
          agency, would be within the authority of the CDE to approve, the 
          clarification that this bill provides is useful.

          Committee amendments:  Committee staff recommends the following 
          amendments:

          1)Clarify pursuant to Section 44809 and existing Title 5 
            regulations that the EAA systems referenced in this bill are 
            approved by the CDE.

          2)Clarify that a teacher or other employee uses the EEA system 
            to record attendance, rather than attendance being recorded by 
            a device.

          3)In order to reinforce the state and federal protections on 
            pupil privacy that are already in place, clarify that nothing 
            in this bill authorizes the use of any technology that either 
            implements or creates the potential for electronic tracking of 
            students, or the collection or dissemination of pupil data 
            beyond attendance and absences.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Charter Schools Association
          EdVoice

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087