BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 121 (Liu) Hearing Date: 05/23/2011 Amended: 05/17/2011 Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 9-0 _________________________________________________________________ ____ BILL SUMMARY: SB 121 specifies the process that must be followed before a foster youth may be placed in a non-public school, and places new requirements on those institutions, the Superintendent of Public Instruction (SPI), and education rights holders. Specifically, this bill: 1) Specifies that foster youth shall not be referred to, or placed in, a nonpublic, nonsectarian school unless their individualized education programs (IEPs) specify that the placement is appropriate; 2) Requires that if the person holding the right to make educational decisions for the pupil decides to place the pupil in a nonpublic, nonsectarian (NPNS) school without the required IEP, that person shall provide a written statement to that effect to the local educational agency (LEA) and the juvenile court, as specified; 3) Prohibits a licensed children's institution (LCI) or NPNS school from requiring as a condition of placement that educational authority for a child be designated to that institution, school, or agency; and prohibits an employee of an LCI or NPNS school from serving as a surrogate parent or from representing the interests of a child residing in an LCI, as specified. 4) Prohibits an LCI from referring or placing a pupil in an NPNS school, and from soliciting or in any way requesting that a parent or person holding the right to make educational decisions for a pupil residing there, transfer or delegate that authority to an employee or person associated with it. SB 121 (Liu) Page 1 5) Adds to the violations of law that the SPI is required to investigate if he or she receives evidence of a significant deficiency in the quality of educational services provided, a violation of law, or noncompliance with policies, as specified. 6) Requires the SPI to monitor the certified NPNS school's or agency's compliance with all provisions of the master contract, as specified, and would add to the reasons that the SPI may revoke or suspend the certification of an NPNS school; _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Notifications: LEA, court Potentially significant reimbursable mandate General SPI investigations Likely minor, possibly significant additional workload General _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. This bill makes numerous changes and clarifications to processes and restrictions for placing a foster youth in an NPNS school. The fiscal implications of many of these changes, such as the prohibiting a licensed children's institution or NPNS school from requiring as a condition of placement that educational authority for a child be designated to that entity, will depend upon what the alternatives are, and what decisions the alternative educational rights holders make for foster youth. The restrictions in this bill are intended to reduce conflicts of interest in placing foster youth in specific educational settings, and to reduce placements in NPNS schools. In many cases, these measures will reduce state costs because they will likely reduce NPNS school placements, which typically cost much more than public school placements. SB 121 (Liu) Page 2 This bill requires that if a parent, guardian, or person holding the right to make educational decisions for a pupil decides to remove the pupil from public school and to place the pupil in an NPNS school without the required IEP that person shall provide a written statement that he or she has made that determination to the LEA and the juvenile court. This bill specifically requires that the statement include a declaration that, prior to making the decision, the LEA informed the holder of the right to make educational decisions for the pupil, in writing, of all of the following: a) The pupil has a right to attend a regular public school in the least restrictive environment; b) the alternate education program is a special education program, if applicable; c) the decision to unilaterally remove the pupil from the regular public school and to place the pupil in an alternate education program may not be financed by the LEA; and d) any attempt to seek reimbursement for the alternate program will be at the expense of the holder of the right to make educational decisions for the pupil. Requiring the LEA and juvenile court, as specified, to receive these newly required written notifications likely constitutes a new reimbursable state mandate. Because of the level of specificity of the notification, and its likely future use to defend and LEA against having to reimburse NPNS school services, LEAs would have to verify that all of the required information is included, and follow up with the writer if the notice is incomplete. Additionally, LEAs would likely need to retain the notification, in case it is needed in the future. This mandate is likely minor, but its costs depend on the number of notifications, and any training or processes that LEAs undertake to implement the new law. Existing law requires the SPI to monitor the facilities, the educational environment, and the quality of the educational program of NPNS schools. The State Department of Education's Non-Public Schools Office oversees 400 certified NPNS facilities, and conducts site visits. Under existing law, the SB 121 (Liu) Page 3 office will conduct an investigation of an NPNS school if it receives evidence of a significant deficiency in the quality of educational services, a violation of law, or noncompliance with policies. Depending on the investigation results, the SPI may revoke or suspend the certification of an NPNS school for specified reasons. This bill adds to the violations of law that the SPI is required to investigate, requires the SPI to monitor master contract compliance more extensively, and adds to the reasons that the SPI may revoke or suspend the certification of an NPNS school. This bill will likely increase workload to monitor and investigate facilities.