California Legislature—2013–14 Regular Session

Assembly Bill No. 948

Introduced by Assembly Member Olsen

February 22, 2013

An act to amend Section 47614.5 of the Education Code, relating to charter schools.

LEGISLATIVE COUNSEL’S DIGEST

AB 948, as introduced, Olsen. Charter schools: school facilities: Charter School Facility Grant Program.

Existing law requires the State Department of Education to administer the Charter School Facility Grant Program, provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter schools, and states the intent of the Legislature that not less than $18,000,000 annually be appropriated for purposes of the grant program. Existing law requires, subject to the annual Budget Act, eligible schools to receive an amount up to $750 per unit of average daily attendance, as specified, to provide an amount of up to, but not more than, 75% of the annual facilities rent and lease costs for the charter school. Existing law requires the department, among other requirements, to inform charter schools of the grant program and to determine grant program eligibility based on specified factors, including, among other factors, a charter school’s preference in admissions, the geographic location of the charter schoolsite, and pupil eligibility for free and reduced-price meals, as specified. Existing law prohibits funds appropriated for purposes of the grant program from being apportioned for units of average daily attendance generated through nonclassroom-based instruction, as defined, requires that funds appropriated for purposes of the grant program be used for costs associated with facilities rents and leases, and requires an existing charter school that is relocating to give an admissions preference to pupils who reside in the elementary attendance area into which the charter school is relocating in specified circumstances.

This bill would instead provide that the grant program is intended to provide assistance with facilities costs for pupils in charter schools and would require, subject to the annual Budget Act, an eligible charter school to receive the lesser of the actual eligible annual facility costs, $750 for a classroom-based charter school, or $375 for a nonclassroom-based charter school. The bill would also require the department to provide a grant program application to charter schools by July 1 of each fiscal year and would repeal the requirement that grant program eligibility be determined based on, among other factors, a charter school’s preference in admissions. The bill would require eligibility for the grant program to be expanded, as specified, if funds remain after charter schools that meet the existing free and reduced-price meals threshold are funded, would require funds appropriated for purposes of the grant program to be used for costs associated with facilities rents, leases, purchases, and facility-related debt service, and would repeal the requirement that a charter school that is relocating give an admissions preference to pupils who reside in the elementary attendance area into which the charter school is relocating in specified circumstances. The bill would repeal the Legislature’s statement of intent that not less than $18,000,000 annually be appropriated for purposes of the grant program and would require the annual audit of a charter school to include specified information related to the grant program.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 47614.5 of the Education Code is
amended to read:

47614.5.  

(a) The Charter School Facility Grant Program is
hereby established and shall be administered by the department.
The grant program is intended to provide assistance with facilities
begin delete rent and lease end delete costs for pupils in charter schools.

(b)  begin insert (1) end insert begin insert   end insert Subject to the annual Budget Act, eligible begin insert charter end insert
schools shall receive begin delete an amount of up to, but not more than, seven
hundred fifty dollars ($750) per unit of average daily attendance,
as certified at the second principal apportionment, to provide an
amount of up to, but not more than, 75 percent of the annual
facilities rent and lease costs for the charter school.In end delete begin insert the lesser of
the following: end insert

begin insert

(A) The actual eligible annual facility costs.

end insert begin insert

(B) Seven hundred fifty dollars ($750) per unit of average daily
attendance for a classroom-based charter school as defined in
subdivision (e) of Section 47612.5.

end insert begin insert

(C) Three hundred seventy-five dollars ($375) per unit of
average daily attendance for a nonclassroom-based charter school
as defined in subdivision (e) of Section 47612.5.

end insert begin insert

(2) The initial payment shall be based upon prior year average
daily attendance, as certified at the second principal
apportionment, for a charter school that operated in the prior
year, and shall be based upon the average daily attendance
approved pursuant to Section 47652 for a charter school in its
first year of operation. The final payment shall be based upon
average daily attendance, as certified at the second principal
apportionment.

end insert

begin insert (3) end insert begin insert   end insert begin insert In end insert any fiscal year, if the funds appropriated for begin delete the end delete purposes
of this section by the annual Budget Act are insufficient to fund
the approved amounts fully, the Superintendent shall apportion
the available funds on a pro rata basis.

(c) For purposes of this section, the department shall do all of
the following:

(1) Inform charter schools of begin insert , and provide charter schools with
an application for, end insert the grant program begin insert by July 1 of each year end insert .

(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or begin delete reduced price end delete begin insert reduced-price end insert meals begin delete , and a
preference in admissions, as appropriate end delete . Eligibility for funding
shall not be limited to the grade level or levels served by the school
whose attendance area is used to determine eligibility. begin delete Charter
schoolsites are end delete begin insert A charter schoolsite is end insert eligible for funding pursuant
to this section if the charter schoolsite meets begin delete either end delete begin insert any end insert of the
following conditions:

(A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or begin delete reduced priced end delete
begin insert reduced-price end insert meals and the schoolsite gives a preference in
admissions to pupils who are currently enrolled in that public
elementary school and to pupils who reside in the elementary
school attendance area where the charter schoolsite is located.

(B) Seventy percent or more of the pupil enrollment at the
charter schoolsite is eligible for free or begin delete reduced price end delete begin insert reduced-price end insert
meals.

begin insert

(C) In any year in which additional funds remain after funds
have been allocated to eligible applicants that meet the eligibility
criteria in subparagraph (A) or (B), the department shall expand
eligibility to additional charter schools by reducing the free and
reduced-price meals threshold in subparagraphs (A) and (B) one
percentage point at a time, until all available funds are allocated.

end insert

(3) Inform charter schools of their grant eligibility.

(4)  begin delete Allocate end delete begin insert Apportion end insert funding to charter schools for eligible
expenditures in a timely manner begin insert in accordance with subdivision
(g) end insert .

begin delete

(5) No later than June 30, 2005, report to the Legislature on the
number of charter schools that have participated in the grant
program pursuant to the expanded eligibility prescribed in
paragraph (2). In addition, the report shall provide
recommendations and suggestions on improving the grant program.

end delete

(d) Funds appropriated for purposes of this section shall not be
apportioned for begin delete any end delete begin insert either end insert of the following:

begin delete

(1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (d) of Section 47612.5 or that does not comply with
conditions or limitations set forth in regulations adopted by the
state board pursuant to this section.

end delete begin delete

(2) Charter schools occupying

end delete

begin insert (1) end insert begin insert   end insert begin insert Facilities costs associated with occupying end insert existing school
district or county office of education facilities begin insert if the school district
or county office of education is otherwise required to provide the
charter school with facilities in accordance with Section 47614 end insert .

begin delete

(3) Charter schools receiving reasonably

end delete

begin insert (2) end insert begin insert   end insert begin insert Facilities costs associated with a charter school occupying end insert
reasonably equivalent facilities from begin delete their chartering authority end delete begin insert a
school district end insert pursuant to Section 47614.

(e) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents begin delete and end delete begin insert , end insert leases, begin insert purchases,
and debt service related to facilities, end insert consistent with the definitions
used in the California School Accounting Manual. begin delete These end delete begin insert The end insert funds
begin insert appropriated for purposes of this section end insert also may be used for
costs, including, but not limited to, costs associated with
remodeling buildings, deferred maintenance, initially installing or
extending service systems and other built-in equipment, and
improving sites.

begin delete

(f) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment
is eligible for free or reduced price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.

end delete begin delete

(g)

end delete

begin insert (f) end insert  The Superintendent annually shall report to the state board
regarding the use of funds that have been made available during
the fiscal year to each charter school pursuant to the grant program.

begin delete

(h) It is the intent of the Legislature that not less than eighteen
million dollars ($18,000,000) annually be appropriated for purposes
of the grant program on the same basis as other elementary and
secondary education categorical programs.

end delete begin delete

(i)

end delete

begin insert (g) end insert  The Superintendent shall annually begin delete allocate end delete begin insert apportion an
initial payment for end insert the facilities grants to eligible charter schools
no later than October 1 of each fiscal year or 90 days after
enactment of the annual Budget Act, whichever is later begin delete , for the
current school year rent and lease costs end delete . begin insert The initial payment shall
be at least 75 percent of the eligible facilities costs estimated
pursuant to subdivision (b). The final payment shall be apportioned
on or before August 1 of the year following the fiscal year in which
the costs were incurred and shall equal the difference between the
actual total eligible facilities costs, as determined pursuant to
subdivision (b), and the initial payment. end insert However, the department
shall first use the funding appropriated for this program to
reimburse eligible charter schools for unreimbursed rent or lease
costs for the prior school year.

begin insert

(h) Eligibility for grant program funds, and the amount of grant
program funds received by a charter school pursuant to this section
shall be included in the scope of the annual, independent financial
audit of the charter school, in accordance with subparagraph (I)
of paragraph (5) of subdivision (b) of Section 47605.

end insert