Amended in Senate August 19, 2014

Amended in Assembly May 24, 2013

Amended in Assembly May 7, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 948

Introduced by Assembly Member Olsen

begin insert

(Principal coauthor: Senator Galgiani)

end insert

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 begin delete State Department of Education end delete begin insert California School Finance Authority end insert to administer the Charter School Facility Grant begin delete Program, end delete begin insert Program and end insert provides that the grant program is intended to provide assistance with facilities rent and lease costs for pupils in charter begin delete 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. end delete begin insert schools. end insert Existing law requires the begin delete department, end delete begin insert authority, end insert 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. begin delete 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. end delete

This 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. begin delete 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. end delete The bill would provide that, with respect to this begin insert grant end insert program, charter schools would be subject to the provision that generally imposes the requirement of an annual audit on local educational agencies.

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 delete and, commencing with the 2013-14 fiscal year, end delete
begin insert and end insert shall be administered by the California School Finance
Authority. 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 begin insert charter end insert 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 begin delete the end delete 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
begin insert amounts, end insert the California School Finance Authority shall apportion
the available funds on a pro rata basis.

(c) For purposes of this section, the California School Finance
Authority 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. begin delete Charter schoolsite
are end delete begin insert A charter schoolsite is end insert 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-price meals and
the begin insert charter end insert 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 California
School Finance Authority shall expand eligibility to additional
charter 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 60 percent.

end insert

(3) Inform charter schools of their grant eligibility.

(4)  begin delete Commencing with the 2013-14 fiscal year, make end delete begin insert Make end insert
apportionments to a charter school for eligible expenditures
according to the following schedule:

(A) An initial apportionment by August 31 of each fiscal year
or 30 days after enactment of the annual Budget Act, whichever
is later, provided the charter school has submitted a timely
application for funding, as determined by the California School
Finance Authority. The initial apportionment shall be 50 percent
of the begin insert charter end insert school’s estimated annual entitlement as determined
by this section.

(B) A second apportionment by March 1 of each fiscal year.
This apportionment shall be 75 percent of the charter school’s
estimated annual entitlement, as adjusted for any revisions in cost,
enrollment, and other data relevant to computing the charter
school’s annual entitlement, less any funding already apportioned
to the charter school.

(C) A third apportionment within 30 days of the end of each
fiscal year or 30 days after receiving the data and documentation
needed to compute the charter school’s total annual entitlement,
whichever is later. This apportionment shall be the charter school’s
total annual entitlement less any funding already apportioned to
the charter school.

(D) Notwithstanding subparagraph (A), the initial apportionment
in the 2013-14 fiscal year shall be made by October 15, 2013, or
105 days after enactment of the Budget Act of 2013, whichever is
later.

(d) For begin delete the end delete purposes of this section:

(1) The California School Finance Authority shall use prior year
data on pupil eligibility for free or reduced-price meals for the
charter schoolsite and prior year rent or lease costs provided by
charter schools to determine eligibility for the grant program until
current year data and actual rent or lease costs become known or
until June 30 of each fiscal year.

(2) If prior year rent or lease costs are unavailable, and the
current year lease and rent costs are not immediately available,
the California School Finance Authority shall use rent or lease
cost estimates provided by the charter school.

(3) The California School Finance Authority shall verify that
the grant amount awarded to each charter school is consistent with
eligibility requirements as specified in this section and in
regulations adopted by the authority. If it is determined by the
California School Finance Authority that a charter school did not
receive the proper grant award amount, either the charter school
shall transfer funds back to the authority as necessary within 60
days of being notified by the authority, or the authority shall
provide an additional apportionment as necessary to the charter
school within 60 days of notifying the charter school, subject to
the availability of funds.

(e) 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 begin delete (d) end delete begin insert (e) end insert 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, except that charter schools shall be
eligible for the portions of their facilities that are not existing
school district or county office of education facilities.

(3) Charter schools receiving reasonably equivalent facilities
from their chartering authorities pursuant to Section 47614, except
that charter schools shall be eligible for the portions of their
facilities that are not reasonably equivalent facilities received from
their chartering authorities.

(f) 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
or regulations adopted by the California School Finance Authority.
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.

(g) 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.

(h) The California School Finance Authority annually shall
report to the department and the Director of Finance, and post
information on its Internet Web site, regarding the use of funds
that have been made available during the fiscal year to each charter
school pursuant to the grant program.

(i) The California School Finance begin delete Authority, commencing with
the 2013-14 fiscal year, end delete begin insert Authority end insert shall annually allocate the
facilities grants to eligible charter schools according to the schedule
in paragraph (4) of subdivision (c) for the current school year rent
and lease costs. However, the California School Finance Authority
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.

(j) It is the intent of the Legislature that the funding level for
the Charter School Facility Grant Program for the 2012-13 fiscal
year be considered the base level of funding for subsequent fiscal
years.

(k) The Controller shall include instructions appropriate to the
enforcement of this section in the audit guide required by
subdivision (a) of Section 14502.1.

(l) The California School Finance Authority, effective with the
2013-14 fiscal year, shall be considered the senior creditor for
purposes of satisfying audit findings pursuant to the audit
instructions to be developed pursuant to subdivision (k).

(m) The California School Finance Authority may adopt
regulations to implement this section. Any regulations adopted
pursuant to this section may be adopted as emergency regulations
in accordance with the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of the
Title 2 of the Government Code). The adoption of these regulations
shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.

begin insert

(n) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audit 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
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 fully fund the approved amounts, 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.

(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 60
percent.

(3) Inform charter schools of their grant eligibility.

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

(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.

(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.

(g) 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.

(h) 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.

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

end delete