BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 709 (Gipson) - Charter schools.
          
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          |Version: June 1, 2015           |Policy Vote: ED. 5 - 2, JUD. 5  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  This bill requires charter schools to be subject to  
          open meeting requirements, the California Public Records Act,  
          the state's primary conflict-of-interest provisions, and the  
          Political Reform Act of 1974.


          Fiscal  
          Impact:  
           Mandate: Unknown, potentially significant reimbursable state  
            mandate costs for school districts and county offices of  
            education due to increased oversight responsibilities.  If  
            determined to be a mandate, this would create pressure to  
            increase the K-12 Mandate Block Grant.  See staff comments.   
            (Proposition 98)

           Costs to charter schools: Unknown, potentially significant  
            local costs to the extent charter schools do not already  
            comply with the four areas of law.  Charter schools have been  







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            determined to be ineligible to submit claims for mandate  
            reimbursements. 


          Background:  According to the California Department of Education's website,  
          a charter school is a public school usually created by a group  
          of teachers, parents and community leaders or a community-based  
          organization, and it is usually sponsored by an existing local  
          public school board or county board of education.  The school's  
          specific goals and operating procedures are detailed in a  
          charter, or agreement, between the sponsoring board and charter  
          organizers.  Unless specifically noted in law, a charter school  
          is generally exempt from most laws governing school districts.
          Existing law requires state and local agencies to conduct  
          business in meetings that are open to the public: 1) The Brown  
          Act requires meetings of a local agency's board of directors to  
          be open to the public. (Government Code § 54950 et seq.) 2) The  
          Bagley-Keene Open Meeting Act requires meetings of state bodies  
          to be open to the public. (GC § 11120) 


          The California Public Records Act declares that the public has a  
          right to access information that concerns the people's business  
          and provides that public records shall be available for  
          inspection, except as provided by an express provision of law.  
          (GC § 6250 and § 6253)


          Existing law prohibits members of the Legislature, state,  
          county, district, judicial district, and city officers or  
          employees from being financially interested in any contract made  
          by them in their official capacity, or by anybody or board of  
          which they are members. (Government Code § 1090 et seq.)  The  
          Political Reform Act of 1974 requires public officials to carry  
          out their duties in an unbiased manner, free from influence by  
          outside interests, and to follow regulations during elections,  
          as defined. 


          The Political Reform Act also requires government agencies to  
          adopt a conflict-of-interest code that requires designated  
          employees of the agency to file an annual statement of economic  
          interest disclosing any investments, business positions,  
          interests in real property, or sources of income that may be  








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          affected materially by a decision made, or participated in, by  
          the designated employee by virtue of his or her position. (GC §  
          81000 et seq.)




          Proposed Law:  
            This bill requires charter schools to be subject to all of the  
          following:
                 The Ralph M. Brown Act, except for charter schools  
               operated by an entity governed by the Bagley-Keene Open  
               Meeting Act which are subject to this act instead.
                 The California Public Records Act.

                 The state's primary conflict-of-interest provisions.

                 The Political Reform Act of 1974.

          This bill provides that an employee of a charter school is not  
          disqualified because he or she also serves as a member of the  
          governing body of the charter school.  It requires that such  
          member must abstain from voting on, or influencing or attempting  
          to influence another member of the governing body concerning  
          matters affecting his or her employment. 


          Related  
          Legislation:  SB 1317 (Huff, 2014) proposed to require that  
          charter schools be subject to a variety of the same open  
          meeting, conflict-of-interest and disclosure laws as school  
          districts, including the Ralph M. Brown Act (Brown Act), the  
          California Public Records Act, and the Political Reform Act of  
          1974.  SB 1317 failed passage in the Senate Appropriations  
          Committee.
          AB 913 (Chau, 2014) was substantially similar to this bill and  
          proposed to subject charter schools to a variety of the same  
          open meetings, conflict-of-interest, and disclosure laws. AB 913  
          was vetoed by the Governor.


          AB 360 (Brownley, 2011), similar to this bill, required charter  
          schools to comply with the same conflict-of-interest  
          requirements as school district governing board members. AB 360  








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          died on the Assembly inactive file on concurrence. 



          AB 572 (Brownley, 2010), also similar to this bill, would have  
          required charter schools to comply with the Brown Act, the  
          California Public Records Act, and the Political Reform Act.  AB  
          572 was vetoed by Governor Schwarzenegger.


          Staff  
          Comments:  Unlike local government entities, charter schools are  
          ineligible for state mandate reimbursements through the  
          traditional claiming process (they do receive funding through  
          the K-12 mandate block grant).  Thus, workload and costs related  
          to compliance with this bill's requirements are not considered  
          direct state costs (though charter schools primarily receive  
          state funding for their operations).  Staff notes that through  
          approval of Proposition 30, the Open Meetings mandate was  
          eliminated.  Also, a recent ruling by the Commission on State  
          Mandates eliminated the California Public Records mandate due to  
          passage of Proposition 42.  Therefore, school districts will no  
          longer receive reimbursement for these activities.

          This bill will likely increase workload for charter authorizers  
          to train staff in the relevant laws; increases the scope of  
          oversight authorizers must provide, and could increase costs  
          related to responding to disputes, revocations, and renewals of  
          petitions in conflict with these laws.
          These additional oversight activities will add unknown, but  
          potentially significant, costs if they are found to be a  
          reimbursable state mandate and create cost pressures to increase  
          funding provided through the mandates block grant to reflect the  
          new mandate. The existing Charter Schools I-III mandates  
          reimburse authorizers for reviewing proposed charters, holding  
          associated public hearings, and monitoring charter schools after  
          approval.  The Charter Schools IV mandate includes additional  
          oversight activities, including authorizing county offices of  
          education that review proposed countywide charter schools to  
          claim reimbursement for the activities associated with this  
          review. 


          Likewise, this bill expands the scope of oversight required by  








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          charter authorizers and may be found to be a reimbursable state  
          mandate. Costs attributed to these activities would depend on a  
          number of factors, such as how many schools are within the  
          authorizer's jurisdiction and how much staff time is invested in  
          these assessments.  Assuming an additional 5 hours annually of  
          monitoring for a school administrator to ensure compliance with  
          the four areas of law required by this bill for each charter  
          school, costs could run in the hundreds of thousands statewide.




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