BILL NUMBER: AB 787	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 8, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2015
	AMENDED IN SENATE  AUGUST 18, 2015
	AMENDED IN ASSEMBLY  JUNE 1, 2015
	AMENDED IN ASSEMBLY  APRIL 20, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthor: Assembly Member Gonzalez)

                        FEBRUARY 25, 2015

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 787, Roger Hernández. Charter schools: operation: nonprofit
public benefit corporations: for-profit corporation prohibition.
   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 would, commencing January 1, 2017, prohibit a charter
school from operating as, or being operated by, a for-profit
corporation.


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.
   (c) 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.
   (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2017, and as of that date is repealed, unless a later enacted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.
  SEC. 2.  Section 47604 is added to the Education Code, 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.
   (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.