Amended in Assembly May 7, 2013

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 amended, 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 begin delete 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 end delete 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 begin delete , 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 end delete . begin insert The bill would specify the conditions under which funds appropriated for purposes of the grant could be used for the purchase of a facility and its related debt service. end insert 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 begin delete and would require the annual audit of a charter school to include specified information related to the grant program end delete begin insert . The bill would provide that, with respect to this program, charter schools would be subject to the provision that generally imposes the requirement of an annual audit on local educational agencies end insert .

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 47614.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47614.5.  

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

(b) Subject to the annual Budget Act, eligible schools shall
receive 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 any fiscal year, if the funds
appropriated for the purposes of this section by the annual Budget
Act are insufficient to begin insert fully end insert fund the approved amounts begin delete fully end delete , 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 the grant program.

(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced price meals, and a preference in
admissions, as appropriate. 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. Charter schoolsites
are eligible for funding pursuant to this section if the charter
schoolsite meets either 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 reduced priced 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 reduced price meals.

begin insert

(C) In any year in which additional funds remain after state
and federal funds have been allocated to applicants that meet the
eligibility criteria in subparagraph (A) or (B), the department shall
expand eligibility to additional schools that are eligible pursuant
to subparagraph (B) by reducing the free and reduced-price meals
threshold one percentage point at a time, but in no case below 50
percent.

end insert

(3) Inform charter schools of their grant eligibility.

(4) Allocate funding to charter schools for eligible expenditures
in a timely manner.

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 any of the following:

(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.

(2) Charter schools occupying existing school district or county
office of education facilities.

(3) Charter schools receiving reasonably equivalent facilities
from their chartering authority pursuant to Section 47614.

(e) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent with
the definitions used in the California School Accounting Manual.
These funds 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 insert

(f) Funds appropriated for purposes of this section may also be
used for the purchase of a facility and its related debt service under
the following conditions:

end insert begin insert

(1) The facility purchased shall be used by the charter school
exclusively to provide direct classroom instruction.

end insert begin insert

(2) The facility shall meet the standards established pursuant
to Article 3 (commencing with Section 17280) of Chapter 3 of Part
10.5 of Division 1 of Title 1.

end insert begin insert

(3) If the charter school occupying a facility funded pursuant
to this section ceases to utilize the facility for the purposes for
which funds were provided, the charter school shall dispose of the
facility in the manner specified for disposing of charter school
facilities pursuant to Section 17078.62, except that references in
that section to the State Allocation Board shall mean the
department with respect to this subdivision.

end insert begin delete

(f)

end delete

begin insert (g) end insert  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.

begin delete

(g)

end delete

begin insert (h) 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

(i) The Superintendent shall annually allocate 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, for the current school year rent and lease costs.
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

(j) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audits conducted pursuant
to Section 41020.

end insert

begin delete

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
costs for pupils in charter schools.

(b) (1) Subject to the annual Budget Act, eligible charter schools
shall receive the lesser of the following:

(A) The actual eligible annual facility costs.

(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.

(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.

(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.

(3) In any fiscal year, if the funds appropriated for 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, and provide charter schools with
an application for, the grant program by July 1 of each year.

(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced-price meals. 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. A charter
schoolsite is eligible for funding pursuant to this section if the
charter schoolsite meets any 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 reduced-price 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 reduced-price meals.

(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.

(3) Inform charter schools of their grant eligibility.

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

(d) Funds appropriated for purposes of this section shall not be
apportioned for either of the following:

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

(2) Facilities costs associated with a charter school occupying
reasonably equivalent facilities from a school district pursuant to
Section 47614.

(e) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents, leases, purchases, and
debt service related to facilities, consistent with the definitions
used in the California School Accounting Manual. The funds
appropriated for purposes of this section 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.

(f) 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.

(g) The Superintendent shall annually apportion an initial
payment for 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. 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. 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.

(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 delete