BILL NUMBER: SB 547	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 9, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN ASSEMBLY  AUGUST 31, 2011
	AMENDED IN ASSEMBLY  AUGUST 26, 2011
	AMENDED IN ASSEMBLY  AUGUST 15, 2011
	AMENDED IN ASSEMBLY  JULY 13, 2011
	AMENDED IN ASSEMBLY  JUNE 13, 2011
	AMENDED IN SENATE  MAY 4, 2011
	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY   Senator Steinberg
   (Coauthor: Senator Price)
   (Coauthors: Assembly Members Furutani and Solorio)

                        FEBRUARY 17, 2011

   An act to amend Section 52052.5 of, to amend and repeal Sections
52052 and 52052.1 of, and to add Sections 52052.8, 52052.81,
52052.82, 52052.83, and 52052.84 to, the Education Code, relating to
school accountability.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 547, Steinberg. Public school performance accountability.
   (1) Existing law requires the Superintendent of Public
Instruction, with the approval of the State Board of Education, to
develop an Academic Performance Index (API), consisting of specified
indicators, to measure the performance of schools and pupils.
   This bill would make these provisions inoperative on July 1, 2014,
and repeal them as of January 1, 2015. The bill would require the
Superintendent, in consultation with a specified advisory committee,
to develop an Education Quality Index (EQI), which would replace the
API and consist of a State Assessment Index, a Graduation Rate Index,
a College Preparedness Index, and a Career Readiness Index. The bill
would require that these indices consist of specified criteria. In
developing the EQI, the Superintendent and this advisory committee
would be required to consult with the University of California, the
California State University, the California Community Colleges, the
Employment Development Department, and other appropriate entities.
The bill would require the state board to provide opportunities for
public input, make changes as necessary, and adopt the EQI no later
than August 1, 2014. Commencing with the 2014-15 school year, the
bill would require that all schools and school districts be evaluated
using an EQI value. The bill would require the Superintendent to
report to the Governor and the appropriate policy and fiscal
committees of the Legislature by July 1, 2013, and annually
thereafter, specified information relating to the creation of
additional indices. The bill also would require the Superintendent,
in consultation with a specified advisory committee, and subject to
an appropriation in the annual Budget Act or another statute for this
purpose, to contract for an independent evaluation of the
effectiveness and reliability of the EQI and any statutory changes
recommended for improvement, and to submit the evaluation and
recommendations in a report to the Governor and the appropriate
policy and fiscal committees of the Legislature by July 1, 2018. To
the extent that this bill would impose new duties on school districts
in connection with the establishment of the EQI, including, but not
limited to, new reporting duties, it would impose a state-mandated
local program.
   This bill would also make conforming and clarifying changes
relating to the duties of a specified advisory committee. The bill
would require this advisory committee, for purposes of work relating
to the EQI, to seek input through the establishment of subcommittees
or other methods from persons with expertise in various areas, and,
commencing January 1, 2012, through July 1, 2016, to hold a public
meeting at least once each quarter per year.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) Too many pupils in California face educational challenges that
could impede their ability to be productive participants in the
state and national economies.
   (2) Nearly 100,000 California pupils are dropping out of middle
and high school annually, a number equivalent in size to the
population of the City of San Mateo or the City of Compton. Gainful
employment prospects for dropouts are shrinking given the changing
nature of the California economy.
   (3) Many of those who do graduate from high school find themselves
underprepared for the demands of college and the workplace. Nearly
half of all freshmen in the California Community Colleges and the
California State University system require remediation in either
reading or mathematics.
   (4) A stronger and more integrated approach to learning that
combines rigorous academics with career education can engage and
motivate pupils who are at risk of dropping out and can create more
options for them after high school, whether they choose postsecondary
education or a career. Such an approach can better prepare pupils
for entry directly into the workforce after high school, without
compromising academic goals and preparation for postsecondary
education.
   (5) A large majority of California high school pupils surveyed say
they would be more motivated to work hard and do well if they
attended schools where they could take courses needed for college and
at the same time have the chance to acquire skills and knowledge
relevant to future careers.
   (6) The Public Policy Institute of California projects that by
2025, two of every five jobs (41 percent) will require a college
degree. Without an increased commitment to college readiness and
access, Californians with college degrees will amount to just 35
percent of the 2025 workforce, well short of the need. Absent
improvements to college and career pathways for pupils, the growth of
our emerging economy will be hindered by a lack of highly educated
and skilled workers.
   (b) The Legislature further finds and declares all of the
following:
   (1) The state's primary accountability measure for public schools,
the Academic Performance Index, has performed an important function
and has served as a compass by which schools have directed their
school improvement efforts.
   (2) The Academic Performance Index has been limited, however, by
an overreliance on the Standardized Testing and Reporting Program as
the chief indicator of school performance. Statute requires dropout
and graduation rates to be included, but those rates are not yet
incorporated.
   (3) California's ongoing transition to new common core academic
content standards presents an opportunity for the state to reexamine
its system of public school accountability, the goals the state sets
for its public schools, and the most appropriate methods for
measuring progress toward those goals. The new generation of pupil
assessments that will accompany the common core academic content
standards may provide better information about pupils' ability to
analyze and solve complex problems, communicate clearly, synthesize
information, and apply knowledge. These skills and capacities are
vital to their success in the global economy of the 21st century.
   (c) It is the intent of the Legislature that California's system
of public school accountability evolve to encompass other valuable
metrics in addition to pupil test scores, graduation rates, and
dropout rates. It is further the intent of the Legislature that a
more comprehensive set of expectations and aspirations for California'
s public schools be reflected in the accountability system, including
measures of pupil preparedness for college and career, and pupil
engagement in school.
  SEC. 2.  Section 52052 of the Education Code is amended to read:
   52052.  (a) (1) The Superintendent, with approval of the state
board, shall develop an Academic Performance Index (API), to measure
the performance of schools, especially the academic performance of
pupils.
   (2) A school shall demonstrate comparable improvement in academic
achievement as measured by the API by all numerically significant
pupil subgroups at the school, including:
   (A) Ethnic subgroups.
   (B) Socioeconomically disadvantaged pupils.
   (C) English learners.
   (D) Pupils with disabilities.
   (3) (A) For purposes of this section, a numerically significant
pupil subgroup is one that meets both of the following criteria:
   (i) The subgroup consists of at least 50 pupils each of whom has a
valid test score.
   (ii) The subgroup constitutes at least 15 percent of the total
population of pupils at a school who have valid test scores.
   (B) If a subgroup does not constitute 15 percent of the total
population of pupils at a school who have valid test scores, the
subgroup may constitute a numerically significant pupil subgroup if
it has at least 100 valid test scores.
   (C) For a school with an API score that is based on no fewer than
11 and no more than 99 pupils with valid test scores, numerically
significant pupil subgroups shall be defined by the Superintendent,
with approval by the state board.
   (4) The API shall consist of a variety of indicators currently
reported to the department, including, but not limited to, the
results of the achievement test administered pursuant to Section
60640, attendance rates for pupils in elementary schools, middle
schools, and secondary schools, and the graduation rates for pupils
in secondary schools.
   (A) Graduation rates for pupils in secondary schools shall be
calculated for the API as follows:
   (i) Four-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be three school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (ii).
   (ii) The number of pupils entering grade 9 for the first time in
the school year three school years prior to the current school year,
plus the number of pupils who transferred into the class graduating
at the end of the current school year between the school year that
was three school years prior to the current school year and the date
of graduation, less the number of pupils who transferred out of the
school between the school year that was three school years prior to
the current school year and the date of graduation who were members
of the class that is graduating at the end of the current school
year.
   (iii) Five-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be four school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (iv).
   (iv) The number of pupils entering grade 9 for the first time in
the school year four years prior to the current school year, plus the
number of pupils who transferred into the class graduating at the
end of the current school year between the school year that was four
school years prior to the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was four years prior to the
current school year and the date of graduation who were members of
the class that is graduating at the end of the current school year.
   (v) Six-year graduation rates shall be calculated by taking the
number of pupils who graduated on time for the current school year,
which is considered to be five school years after the pupils entered
grade 9 for the first time, and dividing that number by the total
calculated in clause (vi).
   (vi) The number of pupils entering grade 9 for the first time in
the school year five years prior to the current school year, plus the
number of pupils who transferred into the class graduating at the
end of the current school year between the school year that was five
school years prior to the current school year and the date of
graduation, less the number of pupils who transferred out of the
school between the school year that was five years prior to the
current school year and the date of graduation who were members of
the class that is graduating at the end of the current school year.
   (B) The inclusion of five- and six-year graduation rates for
pupils in secondary schools shall meet the following requirements:
   (i) Schools shall be granted one-half the credit in their API
scores for graduating pupils in five years that they are granted for
graduating pupils in four years.
   (ii) Schools shall be granted one-quarter the credit in their API
scores for graduating pupils in six years that they are granted for
graduating pupils in four years.
   (iii) Notwithstanding clauses (i) and (ii), schools shall be
granted full credit in their API scores for graduating in five or six
years a pupil with disabilities who graduates in accordance with his
or her individualized education program (IEP).
   (C) The pupil data collected for the API that comes from the
achievement test administered pursuant to Section 60640 and the high
school exit examination administered pursuant to Section 60851, when
fully implemented, shall be disaggregated by special education
status, English learners, socioeconomic status, gender, and ethnic
group. Only the test scores of pupils who were counted as part of the
enrollment in the annual data collection of the California Basic
Educational Data System for the current fiscal year and who were
continuously enrolled during that year may be included in the test
result reports in the API score of the school. Results of the
achievement test and other tests specified in subdivision (b) shall
constitute at least 60 percent of the value of the index.
   (D) Before including high school graduation rates and attendance
rates in the API, the Superintendent shall determine the extent to
which the data currently are reported to the state and the accuracy
of the data. Notwithstanding any other law, graduation rates for
pupils in dropout recovery high schools shall not be included in the
API. For purposes of this subparagraph, "dropout recovery high school"
means a high school in which 50 percent or more of its pupils have
been designated as dropouts pursuant to the exit/withdrawal codes
developed by the department.
   (E) The Superintendent shall provide an annual report to the
Legislature on the graduation and dropout rates in California and
shall make the same report available to the public. The report shall
be accompanied by the release of publicly accessible data for each
school district and school in a manner that provides for
disaggregation based upon socioeconomically disadvantaged pupils and
numerically significant pupil subgroups scoring below average on
statewide standards-aligned assessments. In addition, the data shall
be made available in a manner that provides for comparisons of a
minimum of three years of data.
   (b) Pupil scores from the following tests, when available and when
found to be valid and reliable for this purpose, shall be
incorporated into the API:
   (1) The standards-based achievement tests provided for in Section
60642.5.
   (2) The high school exit examination.
   (c) Based on the API, the Superintendent shall develop, and the
state board shall adopt, expected annual percentage growth targets
for all schools based on their API baseline score from the previous
year. Schools are expected to meet these growth targets through
effective allocation of available resources. For schools below the
statewide API performance target adopted by the state board pursuant
to subdivision (d), the minimum annual percentage growth target shall
be 5 percent of the difference between the actual API score of a
school and the statewide API performance target, or one API point,
whichever is greater. Schools at or above the statewide API
performance target shall have, as their growth target, maintenance of
their API score above the statewide API performance target. However,
the state board may set differential growth targets based on grade
level of instruction and may set higher growth targets for the lowest
performing schools because they have the greatest room for
improvement. To meet its growth target, a school shall demonstrate
that the annual growth in its API is equal to or more than its
schoolwide annual percentage growth target and that all numerically
significant pupil subgroups, as defined in subdivision (a), are
making comparable improvement.
   (d) Upon adoption of state performance standards by the state
board, the Superintendent shall recommend, and the state board shall
adopt, a statewide API performance target that includes consideration
of performance standards and represents the proficiency level
required to meet the state performance target. When the API is fully
developed, schools, at a minimum, shall meet their annual API growth
targets to be eligible for the Governor's Performance Award Program
as set forth in Section 52057. The state board may establish
additional criteria that schools must meet to be eligible for the
Governor's Performance Award Program.
   (e) The API shall be used for both of the following:
   (1) Measuring the progress of schools selected for participation
in the Immediate Intervention/Underperforming Schools Program
pursuant to Section 52053.
   (2) Ranking all public schools in the state for the purpose of the
High Achieving/Improving Schools Program pursuant to Section 52056.
   (f) (1) A school with 11 to 99 pupils with valid test scores shall
receive an API score with an asterisk that indicates less
statistical certainty than API scores based on 100 or more test
scores.
   (2) A school annually shall receive an API score, unless the
Superintendent determines that an API score would be an invalid
measure of the performance of the school for one or more of the
following reasons:
   (A) Irregularities in testing procedures occurred.
   (B) The data used to calculate the API score of the school are not
representative of the pupil population at the school.
   (C) Significant demographic changes in the pupil population render
year-to-year comparisons of pupil performance invalid.
   (D) The department discovers or receives information indicating
that the integrity of the API score has been compromised.
   (E) Insufficient pupil participation in the assessments included
in the API.
   (3) If a school has fewer than 100 pupils with valid test scores,
the calculation of the API or adequate yearly progress pursuant to
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.) and federal regulations may be calculated over more than one
annual administration of the tests administered pursuant to Section
60640 and the high school exit examination administered pursuant to
Section 60851, consistent with regulations adopted by the state
board.
   (g) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
   (h) The Superintendent, with the approval of the state board,
shall develop an alternative accountability system for schools under
the jurisdiction of a county board of education or a county
superintendent of schools, community day schools, nonpublic,
nonsectarian schools pursuant to Section 56366, and alternative
schools serving high-risk pupils, including continuation high schools
and opportunity schools. Schools in the alternative accountability
system may receive an API score, but shall not be included in the API
rankings.
   (i) This section shall become inoperative on July 1, 2014, and, as
of January 1, 2015, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2015, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 3.  Section 52052.1 of the Education Code is amended to read:
   52052.1.  (a) Beginning July 1, 2011, in addition to the test
scores specified in subdivision (b) of Section 52052, the Academic
Performance Index (API) for a school or school district shall do all
of the following:
   (1) Include the test scores and other accountability data of
enrolled pupils who were referred by the school or school district of
residence to an alternative education program, including community,
community day, and continuation high schools and independent study,
and be calculated by assigning all accountability data on pupils in
alternative education programs, including community, community day,
and continuation high schools and independent study, to the school
and school district of residence to ensure that placement decisions
are in the best interests of affected pupils. If a pupil is referred
to an alternative education program by a juvenile court judge or
other correctional or judicial official, or if the pupil is expelled
pursuant to subdivision (a), (b), or (c) of Section 48915, the test
scores of that pupil shall remain with the alternative education
program and with the school district or county office of education
serving that pupil. This section does not prohibit the alternative
education program from counting the test scores of those pupils
served in their alternative education program. It is the intent of
the Legislature that these alternative education programs remain
accountable to the pupils they serve.
   (2) Exclude the test scores or other data of those pupils exempt
pursuant to federal statute or federal regulation.
   (3) Include school and school district dropout rates for pupils
who drop out of school while enrolled in grade 8 or 9. If reliable
data is not available by July 1, 2011, the Superintendent, on or
before that date, shall report to the Legislature the reasons for the
delay and date he or she anticipates the specified dropout rates
will be included in the API.
   (b) The advisory committee established pursuant to Section 52052.5
shall recommend to the Superintendent and the state board all of the
following:
   (1) The length of time for which the accountability data on pupils
in alternative education programs shall be assigned to the school
and school district of residence pursuant to paragraph (1) of
subdivision (a).
   (2) Whether it is appropriate to assign accountability data to the
school or the school district, pursuant to paragraph (1) of
subdivision (a), if the pupil never attended the school of residence
or has been absent for more than one year from the school district of
residence due to placement in another school or school district or
out of state.
   (c) This section shall become inoperative on July 1, 2014, and, as
of January 1, 2015, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2015, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 4.  Section 52052.5 of the Education Code is amended to read:
   52052.5.  (a) (1) The Superintendent shall establish a broadly
representative and diverse advisory committee to advise the
Superintendent and the state board on all appropriate matters
relative to the creation of accountability measures developed
pursuant to this article. Members of the advisory committee shall
serve without compensation for terms not to exceed two years. The
department shall provide staff to the advisory panel.
   (2) For purposes of its work related to the establishment of the
Education Quality Index described in Section 52052.8, the advisory
committee shall do both of the following:
   (A) Seek input through the establishment of subcommittees or other
methods from persons with expertise in the following areas:
   (i) Public school accountability.
   (ii) Assessment of English-proficient pupils and English learners.

   (iii) School teaching.
   (iv) School administration.
   (v) Education of English learners.
   (vi) High school reform and dropout prevention.
   (vii) Special education.
   (viii) Business and industry.
   (ix) College and career preparedness.
   (x) Equal educational opportunity.
   (xi) Pupil engagement.
   (xii) Areas of study for which academic content standards have
been adopted by the state board.
   (B) Commencing January 1, 2012, through July 1, 2016, meet at
least once each quarter per year, at the call of the chairperson, at
a time and location convenient to the public, as the chairperson
deems appropriate. All meetings shall be open to the public in
accordance with Article 9 (commencing with Section 11120) of Chapter
1 of Part 1 of Division 3 of Title 2 of the Government Code.
   (b) By January 1, 2011, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on each of the following:
   (1) Approaches to increasing the emphasis of science and
mathematics in the calculation of the Academic Performance Index or
any successor measure.
   (2) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to attain entry-level employment in
business or industry, as set forth in subdivision (b) of Section
51228.
   (3) Methods to incorporate into the Academic Performance Index, or
into other aspects of the state's accountability system, a measure
of the degree to which pupils graduate from high school with the
skills and knowledge necessary to succeed in postsecondary education.

   (c) By July 1, 2013, the Superintendent and the state board, in
consultation with the advisory committee established pursuant to
subdivision (a), shall make recommendations to the Legislature and
the Governor on the establishment of a methodology for generating a
measurement of group and individual academic performance growth by
utilizing individual pupil results from a longitudinally valid
achievement assessment system. These recommendations should also
address any interactions between the Academic Performance Index, or
any successor measure, and individual test scores from the state's
tests, as well as implications for the reauthorization of the state's
assessment system. This subdivision shall not be construed to
supersede the provisions of Chapter 273 of the Statutes of 2009.
  SEC. 5.  Section 52052.8 is added to the Education Code, to read:
   52052.8.  (a) (1) The Superintendent, in consultation with the
advisory committee established pursuant to Section 52052.5, shall
develop an Education Quality Index (EQI) for schools and school
districts, to be comprised of multiple valid and reliable indicators,
to reflect the overall performance of California's public schools,
school districts, and pupils, for adoption by the state board. The
state board shall adopt the EQI no later than August 1, 2014. Before
adopting the EQI, the state board shall provide opportunities for
public input and make changes as necessary.
   (2) Commencing with the 2014-15 school year and each school year
thereafter, all schools and school districts shall be evaluated using
an EQI value.
   (b) It is the intent of the Legislature that the EQI provide a
comprehensive and transparent measurement of pupil performance and
school quality to better inform parents, pupils, teachers, school
administrators, policymakers, and the public about public school
performance using multiple indicators of pupil, school, and school
district quality and performance.
   (c) An EQI shall be developed for each school type and school
district as follows:
   (1) For schools and school districts maintaining any of grades 9
to 12, inclusive, the EQI shall include, but not necessarily be
limited to, the following component indices:
   (A) The State Assessment Index (SAI), as described in Section
52052.81.
   (B) The Graduation Rate Index (GRI), as described in Section
52052.82.
   (C) The College Preparedness Index (CPI), as described in Section
52052.83.
   (D) The Career Readiness Index (CRI), as described in Section
52052.84.
   (2) (A) For schools and school districts maintaining grade 8, the
EQI shall include, but shall not necessarily be limited to, the SAI,
as described in Section 52052.81, and the GRI, as described in
Section 52052.82.
   (B) The Superintendent, in consultation with the advisory
committee established pursuant to Section 52052.5, shall consider for
inclusion in the EQI for schools and school districts maintaining
grade 8 a valid and reliable measure or measures of pupil access to
and performance in college and career preparatory and exploratory
experiences.
   (3) (A) For schools and school districts maintaining kindergarten
or any of grades 1 to 7, inclusive, the EQI shall include, but shall
not necessarily be limited to, the SAI, as described in Section
52052.81.
   (B) It is the intent of the Legislature that the EQI for schools
and school districts maintaining kindergarten or any of grades 1 to
7, inclusive, not be limited to the SAI, as described in Section
52052.81.
   (d) The Superintendent, in consultation with the advisory
committee established pursuant to Section 52052.5, shall develop and
recommend to the state board for adoption all of the following:
    (1) An alternative accountability system for schools under the
jurisdiction of a county board of education or a county
superintendent of schools, community day schools, nonpublic,
nonsectarian schools operating pursuant to Section 56366, and
alternative schools serving high-risk pupils, including continuation
high schools, opportunity schools, and dropout recovery high schools.

   (A) Schools in the alternative accountability system may receive
an EQI or any of its component indices, but shall not be included in
any rankings or comparisons to other schools based on these indices.
   (B) For purposes of this section, "dropout recovery high school"
means a high school in which 50 percent or more of its pupils are
designated as dropouts pursuant to the exit/withdrawal codes
developed by the department.
   (2) The relative weights of the component indices that comprise a
school and school district EQI and a total value for a school and
school district EQI.
   (i) For schools and school districts maintaining kindergarten and
any of grades 1 to 8, inclusive, the SAI shall comprise no less than
40 percent of the value of the EQI.
   (ii) For schools and school districts maintaining any of grades 9
to 12, inclusive, the SAI shall comprise no more than 40 percent of
the value of the EQI.
   (iii) Within the EQI, the weights assigned to the CPI and CRI
shall be equal.
            (3) No less than one additional component index for
schools maintaining kindergarten or any of grades 1 to 7, inclusive.
   (4) Annual school and school district scores or other evaluation
system for the EQI.
   (5) An annual improvement or growth target for the SAI as
described in Section 52052.81 and the GRI as described in Section
52052.82, including targets for numerically significant pupil
subgroups, as defined in subdivision (l).
   (6) Whether an improvement or growth target should be established
for each additional component index, including targets for
numerically significant pupil subgroups, as defined in subdivision
(l).
   (7) A method or methods for providing recognition, additional
weight, or other measures in any of the EQI's component indices for
schools and school districts that can demonstrate that English
learners are making progress toward English language acquisition,
graduation, and preparedness for college and career.
   (8) Whether an annual measurement of the narrowing of the
achievement gap should be included for each component index,
including measurements for numerically significant pupil subgroups,
as defined in subdivision (l).
   (9) The relevant indices and indicators necessary to meet and
comply with federal law, including, but not limited to, the federal
No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).
   (e) In developing the EQI, the Superintendent and the advisory
committee established pursuant to Section 52052.5 shall consult with
the University of California, the California State University, the
California Community Colleges, the Employment Development Department,
and other appropriate entities.
   (f) The Superintendent annually shall release the indices
described in this section, including all of the following:
   (1) A composite EQI score, made up of any required component
indices.
   (2) An EQI score, and a score for each component index, at the
school and school district level, for each numerically significant
pupil subgroup as defined pursuant to subdivision (l).
   (3) A transparent and understandable explanation of the score and
relative weights for each individual index.
   (4) The relative weights of each individual indicator included in
each index.
   (g) (1) When additional valid and reliable pupil outcome data
become available, the Superintendent, in consultation with the
advisory committee established pursuant to Section 52052.5, shall
develop and recommend to the state board for adoption additional
indices to reflect other important elements of school quality,
including, but not limited to, the following:
   (A) Creativity and innovation.
   (B) Pupil engagement in school.
   (C) Group or individual pupil growth in academic performance.
   (2) In the development of any additional indices, the
Superintendent shall take into account the appropriateness of
particular indices and indicators to grade spans and school types, to
ensure that the EQI and all component indices and indicators
accurately reflect the state performance expectations under which the
school or school district operate.
   (3) Any additional component index of the EQI adopted by the state
board for inclusion in the EQI shall not be incorporated into the
EQI until at least one full school year after adoption.
   (h) No later than July 1, 2013, and annually thereafter, the
Superintendent shall report to the Governor and the appropriate
policy and fiscal committees of the Legislature on all of the
following:
   (1) The status of valid and reliable data to develop and include
in each index developed pursuant to this section, including
additional indices developed pursuant to subdivision (f).
   (2) The data elements planned for inclusion in each additional
index.
   (3) The timeline for the development and implementation of
additional indices.
   (4) Potential impacts of each additional index on the EQI and on
schools and school districts.
   (5) Potential correlations or interaction between indices,
including additional indices.
   (i) (1) No later than July 1, 2013, the Superintendent shall
report to the Governor and the appropriate policy and fiscal
committees of the Legislature any additional data required to be
reported by local educational agencies for the purposes of the EQI.
   (2) The requirement for submitting a report imposed under
paragraph (1) is inoperative on July 1, 2017, pursuant to Section
10231.5 of the Government Code.
   (j) (1) The Superintendent, in consultation with the advisory
committee established pursuant to Section 52052.5, shall, subject to
an appropriation in the annual Budget Act or another statute for this
purpose, contract for an independent evaluation of the effectiveness
and reliability of the EQI and any statutory changes recommended for
improvement, and shall submit the evaluation and recommendations in
a report to the Governor and the appropriate policy and fiscal
committees of the Legislature no later than July 1, 2018.
   (2) The requirement for submitting a report imposed under
paragraph (1) is inoperative on July 1, 2022, pursuant to Section
10231.5 of the Government Code.
   (k) The Superintendent may develop and recommend to the state
board for adoption any regulations necessary to implement this
section.
   (l) (1) For purposes of this chapter, a numerically significant
pupil subgroup is one that meets both of the following criteria:
   (A) The subgroup consists of at least 50 pupils each of whom has a
valid test score.
   (B) The subgroup constitutes at least 15 percent of the total
population of pupils at a school who have valid test scores.
   (2) If a subgroup does not constitute 15 percent of the total
population of pupils at a school who have valid test scores, the
subgroup may constitute a numerically significant pupil subgroup if
it has at least 100 valid test scores.
   (3) For a school with no fewer than 11 and no more than 99 pupils
with valid test scores, numerically significant pupil subgroups shall
be defined by the Superintendent, with approval by the state board.
   (4) Numerically significant pupil subgroups shall include, but not
be limited to, ethnic subgroups, socioeconomically disadvantaged
pupils, English learners, and pupils with disabilities.
  SEC. 6.  Section 52052.81 is added to the Education Code, to read:
   52052.81.  (a) The State Assessment Index (SAI) shall be comprised
of pupil scores from the standards-based achievement tests provided
for in Section 60642.5, or any valid and reliable successor
assessments adopted by the state board, and the high school exit
examination. The pupil data collected for the SAI that comes from the
achievement test administered pursuant to Section 60640 and the high
school exit examination administered pursuant to Section 60851, when
fully implemented, shall be disaggregated by special education
status, English learners, socioeconomic status, gender, and ethnic
group. The SAI for a school or school district also shall do all of
the following:
   (1) Include the test scores of enrolled pupils who were referred
by the school or school district of residence to an alternative
education program, including community, community day, and
continuation high schools and independent study, and be calculated by
assigning all data collected for purposes of the SAI on pupils in
alternative education programs, including community, community day,
and continuation high schools and independent study, to the school
and school district of residence to ensure that placement decisions
are in the best interests of affected pupils. If a pupil is referred
to an alternative education program by a juvenile court judge or
other correctional or judicial official, or if the pupil is expelled
pursuant to subdivision (a), (b), or (c) of Section 48915, the test
scores of that pupil shall remain with the alternative education
program and with the school district or county office of education
serving that pupil. This section does not prohibit the alternative
education program from counting the test scores of those pupils
served in their alternative education program. It is the intent of
the Legislature that these alternative education programs remain
accountable to the pupils they serve.
   (2) Exclude the test scores or other data of those pupils exempt
pursuant to federal statute or federal regulation.
   (b) The advisory committee established pursuant to Section 52052.5
shall recommend to the Superintendent and the state board all of the
following:
   (1) The length of time for which the data collected for purposes
of the SAI on pupils in alternative education programs shall be
assigned to the school and school district of residence pursuant to
paragraph (1) of subdivision (a).
   (2) Whether it is appropriate to assign data collected for
purposes of the SAI to the school or the school district, pursuant to
paragraph (1) of subdivision (a), if the pupil never attended a
school in the school district of residence or is absent for more than
one year from the school district of residence due to placement in
another school or school district or out of state.
   (c) All schools or school districts with at least 11 pupils with
valid test scores shall receive an annual SAI score, unless the
Superintendent determines that an SAI score would be an invalid
measure of the performance of a school or school district for one or
more of the following reasons:
   (1) Irregularities in testing procedures occurred.
   (2) The data used to calculate the SAI score of the school or
school district are not representative of the pupil population at the
school or school district.
   (3) Significant demographic changes in the pupil population render
year-to-year comparisons of pupil performance invalid.
   (4) The department discovers or receives information indicating
that the integrity of the SAI score has been compromised.
   (5) There is insufficient pupil participation in the assessments
included in the SAI.
   (d) The SAI for a school district shall not include test scores
from any school within that school district that had its SAI
invalidated for any of the reasons specified in paragraph (1) to (5),
inclusive, of subdivision (c).
   (e) A school or school district with 10 or fewer pupils shall not
receive an SAI score.
   (f) If a school has fewer than 100 pupils with valid test scores,
the calculation of the SAI or adequate yearly progress pursuant to
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.) and federal regulations may be calculated over more than one
annual administration of the tests administered pursuant to Section
60640 and the high school exit examination administered pursuant to
Section 60851, consistent with regulations adopted by the state
board.
  SEC. 7.  Section 52052.82 is added to the Education Code, to read:
   52052.82.  (a) The Graduation Rate Index (GRI) shall include one
or both of the following, as appropriate to the grade configuration
of the school or school district:
   (1) Four-year, five-year, and six-year graduation rates as defined
in Section 200.19(b) of Title 34 of the Code of Federal Regulations.

   (2) Rates at which pupils successfully promote from one grade to
the next in middle school and high school and successfully
matriculate from middle school to high school.
   (b) All schools and school districts shall be granted full value
in their GRI for graduating in five or more years a pupil with
disabilities who graduates in accordance with his or her
individualized education program (IEP).
   (c) The Superintendent, in consultation with the advisory
committee established pursuant to Section 52052.5, shall develop and
recommend to the state board for adoption all of the following:
   (1) The length of time for which the following shall be assigned
to the school and school district of residence, pursuant to
subdivision (a):
   (A) The rates at which pupils successfully promote from one grade
to the next in middle school and high school.
   (B) The rates at which pupils successfully matriculate from middle
school to high school.
   (C) Graduation rates of pupils in alternative education programs.
   (2) Whether it is appropriate to assign the rates at which pupils
successfully promote from one grade to the next in middle school and
high school, successfully matriculate from middle school to high
school, and graduation rates, to the school or the school district,
pursuant to subdivision (a), if the pupil never attended a school in
the school district of residence or is absent for more than one year
from the school district of residence due to placement in another
school or school district or out of state.
   (3) The value graduation rates will have in the GRI for pupils who
graduate in four, five, or six years. The recommendation may place
less value on five- and six-year graduation rates than on four-year
graduation rates.
   (4) Whether a California public high school that initially enrolls
a pupil who is at risk of not graduating on time may be granted full
value in their GRI for graduating that pupil in five or six years.
   (d) The GRI for a school or school district also shall do all of
the following:
   (1) Include the rates at which pupils successfully promote from
one grade to the next in middle school and high school, successfully
matriculate from middle school to high school, and graduation rates,
pursuant to subdivision (a), for enrolled pupils who were referred by
the school or school district of residence to an alternative
education program, including community, community day, and
continuation high schools and independent study, and be calculated by
assigning all data collected for purposes of the GRI on pupils in
alternative education programs, including community, community day,
and continuation high schools and independent study, to the school
and school district of residence to ensure that placement decisions
are in the best interests of affected pupils. If a pupil is referred
to an alternative education program by a juvenile court judge or
other correctional or judicial official, or if the pupil is expelled
pursuant to subdivision (a), (b), or (c) of Section 48915, the test
scores of that pupil shall remain with the alternative education
program and with the school district or county office of education
serving that pupil. This section does not prohibit the alternative
education program from counting the dropout and graduation rates of
those pupils served in their alternative education program. It is the
intent of the Legislature that these alternative education programs
remain accountable to the pupils they serve.
   (2) Exclude the rates at which pupils successfully promote from
one grade to the next in middle school and high school, successfully
matriculate from middle school to high school, and graduation rates
of those pupils exempt pursuant to federal statute or federal
regulation.
   (e) Growth targets and a statewide performance target established
for the GRI shall be consistent with those established pursuant to
the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301 et
seq.) or any successor measure adopted pursuant to the federal
Elementary and Secondary Education Act.
  SEC. 8.  Section 52052.83 is added to the Education Code, to read:
   52052.83.  (a) The College Preparedness Index (CPI) shall consist
of multiple valid, reliable, and stable measures of pupil
preparedness for postsecondary education.
   (b) In developing the CPI, the Superintendent, in consultation
with the advisory committee established pursuant to Section 52052.5,
may consider, but is not necessarily limited to, for pupils in any of
grades 9 to 12, inclusive, local and state assessments, course
enrollment and completion, academic and extracurricular programs, and
advanced or additional learning opportunities, as indicators for
inclusion in the CPI.
   (c) In developing the CPI, the Superintendent, in consultation
with the advisory committee established pursuant to Section 52052.5,
shall recommend to the state board for adoption a method for
providing additional weight in the index for schools and school
districts that demonstrate that pupil subgroups, including
economically disadvantaged pupils, pupils with disabilities, and
English learners, are proportionately represented among pupils who
are prepared and eligible for enrollment in four-year colleges and
universities.
  SEC. 9.  Section 52052.84 is added to the Education Code, to read:
   52052.84.  The Career Readiness Index (CRI) shall consist of
multiple valid, reliable, and stable measures of pupil readiness for
career. In the development of the CRI, the Superintendent, in
consultation with the advisory committee established pursuant to
Section 52052.5, may consider, but is not necessarily limited to, for
pupils in any of grades 9 to 12, inclusive, course enrollment and
completion of career pathway and standards-aligned career technical
education programs, industry-validated courses and certifications,
intersegmental articulation with institutions of higher education,
local and state assessments, and portfolio assessments, as indicators
for inclusion in the CRI.
  SEC. 10.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.