Amended in Senate August 18, 2015

Amended in Assembly June 1, 2015

Amended in Assembly April 20, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 787

Introduced by Assembly Member Roger Hernández

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(Coauthor: Assembly Member Gonzalez)

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February 25, 2015

An act to begin delete amend end delete begin insert amend, repeal, and add end insert Section 47604 of the Education Code, relating to charter schools.

LEGISLATIVE COUNSEL’S DIGEST

AB 787, as amended, Roger Hernández. Charter schools: operation: nonprofit public benefit begin delete corporations. end delete begin insert corporations: for-profit corporation prohibition. end insert

Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified.

This bill begin delete would end delete begin insert would, commencing January 1, 2017, end insert prohibit a charter school from operating as, or being operated by, a for-profit corporation.

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

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

SECTION 1.  

Section 47604 of the Education Code is amended
to read:

47604.  

(a) A charter school may elect to operate as, or be
operated by, a nonprofit public benefit corporation, formed and
organized pursuant to the Nonprofit Public Benefit Corporation
Law (Part 2 (commencing with Section 5110) of Division 2 of
Title 1 of the Corporations Code).

(b) An authority that grants a charter for the establishment of a
charter school formed and organized pursuant to this section shall
be entitled to a single representative on the board of directors of
the nonprofit public benefit corporation.

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(c) A charter school shall not operate as, or be operated by, a
for-profit corporation.

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(d)

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begin insert (c) end insert  An authority that grants a charter to a charter school to be
operated by, or as, a nonprofit public benefit corporation is not
liable for the debts or obligations of the charter school, or for
claims arising from the performance of acts, errors, or omissions
by the charter school, if the authority has complied with all
oversight responsibilities required by law, including, but not limited
to, those required by Section 47604.32 and subdivision (m) of
Section 47605.

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(d) This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

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begin insert SEC. 2. end insert   

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begin insert Section 47604 is added to the end insert begin insert Education Code end insert begin insert , to read: end insert

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begin insert 47604. end insert   

(a) A charter school may elect to operate as, or be
operated by, a nonprofit public benefit corporation, formed and
organized pursuant to the Nonprofit Public Benefit Corporation
Law (Part 2 (commencing with Section 5110) of Division 2 of Title
1 of the Corporations Code).

(b) An authority that grants a charter for the establishment of
a charter school formed and organized pursuant to this section
shall be entitled to a single representative on the board of directors
of the nonprofit public benefit corporation.

(c) A charter school shall not operate as, or be operated by, a
for-profit corporation.

(d) An authority that grants a charter to a charter school to be
operated by, or as, a nonprofit public benefit corporation is not
liable for the debts or obligations of the charter school, or for
claims arising from the performance of acts, errors, or omissions
by the charter school, if the authority has complied with all
oversight responsibilities required by law, including, but not limited
to, those required by Section 47604.32 and subdivision (m) of
Section 47605.

(e) This section shall become operative January 1, 2017.

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