BILL NUMBER: SB 1458	CHAPTERED
	BILL TEXT

	CHAPTER  577
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 26, 2012
	PASSED THE SENATE  AUGUST 31, 2012
	PASSED THE ASSEMBLY  AUGUST 30, 2012
	AMENDED IN ASSEMBLY  AUGUST 29, 2012
	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  JULY 5, 2012
	AMENDED IN ASSEMBLY  JUNE 14, 2012

INTRODUCED BY   Senator Steinberg
   (Principal coauthor: Assembly Member Bonilla)

                        FEBRUARY 24, 2012

   An act to amend Section 52052 of, and to add Section 52052.9 to,
the Education Code, relating to school accountability.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1458, Steinberg. School accountability: Academic Performance
Index: graduation rates.
   The Public Schools Accountability Act of 1999 requires the
Superintendent of Public Instruction, with the approval of the State
Board of Education, to develop an Academic Performance Index (API)
that measures the performance of schools and the academic performance
of pupils. Under existing law, the API consists of a variety of
indicators, including graduation rates for pupils in secondary
schools, and is used to measure the progress of specified schools and
to rank all public schools for the purpose of the High
Achieving/Improving Schools Program. Existing law requires the
Superintendent to determine the accuracy of high school graduation
rate data before including that data in the API, and to provide an
annual report to the Legislature on graduation and dropout rates, as
specified.
   This bill would authorize the Superintendent to develop and
implement a specified program of school quality review to complement
the API, if an appropriation for this purpose is made in the annual
Budget Act. The bill would require the Superintendent to annually
provide to local educational agencies and the public an explanation
of the individual components of the API and their relative values, as
specified, and would prohibit an additional element from being
incorporated into the API until at least one full school year after
the state board's decision to include the element into the API. The
bill would also require the Superintendent to annually determine the
accuracy of graduation rate data, and would delete the requirement
that the Superintendent report annually to the Legislature on
graduation and dropout rates. The bill would authorize the
Superintendent to incorporate into the API the rates at which pupils
successfully promote from one grade to the next in middle school and
high school and matriculate from middle school to high school, as
well as pupil preparedness for postsecondary education and career.
The bill would delete the requirement that the API be used to measure
the progress of specified schools and to rank all public schools for
the purpose of the High Achieving/Improving Schools Program. To the
extent this bill would require school districts to report additional
data for purposes of inclusion in the API or other school quality
review, the bill would impose a state-mandated local program.
   Existing law provides that pupil scores from certain
standards-based achievement tests and the high school exit
examination be incorporated into the API, as specified. Under
existing law, the results of these tests constitute at least 60% of
the value of the index.
   This bill would instead require that these test results constitute
no more than 60% of the value of the index for secondary schools,
commencing with the baseline API calculation in 2016, and for each
year thereafter.
   This bill would require the Superintendent, on or before October
1, 2013, to report to the Legislature a method for increasing
emphasis on pupil mastery of standards in science and social science
through the system of public school accountability or by other means
and an alternative method or methods, in place of decile rank, for
determining eligibility, preferences, or priorities for any statutory
program that uses decile rank as a determining factor.
   This bill would incorporate additional changes in Section 52052 of
the Education Code, proposed by AB 1668, to be operative only if AB
1668 and this bill are both chaptered and become effective January 1,
2013, and this bill is chaptered last.
   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.  The Legislature finds and declares all of the
following:
   (a) The state's primary accountability measure for public schools,
the Academic Performance Index (API), has performed an important
function and has served as a compass by which schools have directed
their efforts to improve.
   (b) The API has been limited, however, by an overreliance on the
Standardized Testing and Reporting Program as the chief indicator of
a school's performance. Statute requires dropout and graduation rates
to be included in a school's API score, but those rates have not yet
been incorporated. The API does not indicate the degree to which a
school has prepared its pupils for success in postsecondary education
and career.
   (c) The transition to new common core academic content standards
and the new assessments that will accompany those standards present
an opportunity for the state to reexamine its system of public school
accountability, the goals for its public schools, and the most
appropriate methods to measure progress towards those goals.
  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) (A) 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.
   (B) The Superintendent, with the approval of the state board, may
also incorporate into the API the 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.
   (C) 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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.
   (D) 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.
   (E) 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.
   (F) (i) Commencing with the baseline API calculation in 2016, and
for each year thereafter, results of the achievement test and other
tests specified in subdivision (b) shall constitute no more than 60
percent of the value of the index for secondary schools.
   (ii) In addition to the elements required by this paragraph, the
Superintendent, with approval of the state board, may incorporate
into the index for secondary schools valid, reliable, and stable
measures of pupil preparedness for postsecondary education and
career.
   (G) Results of the achievement test and other tests specified in
subdivision (b) shall constitute at least 60 percent of the value of
the index for primary schools and middle schools.
   (H) It is the intent of the Legislature that the state's system of
public school accountability be more closely aligned with both the
public's expectations for public education and the workforce needs of
the state's economy. It is therefore necessary that the
accountability system evolve beyond its narrow focus on pupil test
scores to encompass other valuable information about school
performance, including, but not limited to, pupil preparedness for
college and career, as well as the high school graduation rates
already required by law.
   (I) The Superintendent shall annually determine the accuracy of
graduation rate 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.
   (J) To complement the API, the Superintendent, with the approval
of the state board, may develop and implement a program of school
quality review that features locally convened panels to visit
schools, observe teachers, interview pupils, and examine pupil work,
if an appropriation for this purpose is made in the annual Budget
Act.
   (K) The Superintendent shall annually provide to local educational
agencies and the public a transparent and understandable explanation
of the individual components of the API and their relative values
within the API.
   (L) An additional element chosen by the Superintendent and the
state board for inclusion in the API pursuant to this paragraph shall
not be incorporated into the API until at least one full school year
after the state board's decision to include the element into the
API.
   (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) (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.
   (f) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
   (g) 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.
  SEC. 2.5.  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) (A) 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.
   (B) The Superintendent, with the approval of the state board, may
also incorporate into the API the 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.
   (C) 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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 before 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.
   (D) 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.
   (E) 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.
   (F) (i) Commencing with the baseline API calculation in 2016, and
for each year thereafter, results of the achievement test and other
tests specified in subdivision (b) shall constitute no more than 60
percent of the value of the index for secondary schools.
   (ii)  In addition to the elements required by this paragraph, the
Superintendent, with approval of the state board, may incorporate
into the index for secondary schools valid, reliable, and stable
measures of pupil preparedness for postsecondary education and
career.
   (G) Results of the achievement test and other tests specified in
subdivision (b) shall constitute at least 60 percent of the value of
the index for primary schools and middle schools.
   (H) It is the intent of the Legislature that the state's system of
public school accountability be more closely aligned with both the
public's expectations for public education and the workforce needs of
the state's economy. It is therefore necessary that the
accountability system evolve beyond its narrow focus on pupil test
scores to encompass other valuable information about school
performance, including, but not limited to, pupil preparedness for
college and career, as well as the high school graduation rates
already required by law.
   (I) The Superintendent shall annually determine the accuracy of
the graduation rate 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 or left a school
and were not otherwise enrolled in a school for a period of at least
180 days.
   (J) To complement the API, the Superintendent, with the approval
of the state board, may develop and implement a program of school
quality review that features locally convened panels to visit
schools, observe teachers, interview pupils, and examine pupil work,
if an appropriation for this purpose is made in the annual Budget
Act.
   (K) The Superintendent shall annually provide to local educational
agencies and the public a transparent and understandable explanation
of the individual components of the API and their relative values
within the API.
   (L) An additional element chosen by the Superintendent and the
state board for inclusion in the API pursuant to this paragraph shall
not be incorporated into the API until at least one full school year
after the state board's decision to include the element into the
API.
   (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) (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.
   (f) Only schools with 100 or more test scores contributing to the
API may be included in the API rankings.
   (g) 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.
  SEC. 3.  Section 52052.9 is added to the Education Code, to read:
   52052.9.  (a) On or before October 1, 2013, the Superintendent
shall report to the Legislature and recommend to the state board for
adoption a method or methods for increasing the emphasis on pupil
mastery of standards in science and social science through the system
of public school accountability or by other means.
   (b) On or before October 1, 2013, the Superintendent, in
consultation with the advisory committee established pursuant to
Section 52052.5, shall report to the Legislature an alternative
method or methods, in place of decile rank, for determining
eligibility, preferences, or priorities for any statutory program
that currently uses decile rank as a determining factor.
  SEC. 4.  Section 2.5 of this bill incorporates amendments to
Section 52052 of the Education Code proposed by both this bill and
Assembly Bill 1668. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2013, (2)
each bill amends Section 52052 of the Education Code, and (3) this
bill is enacted after Assembly Bill 1668, in which case Section 2 of
this bill shall not become operative.
  SEC. 5.  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.