BILL ANALYSIS Ó
AB 787
Page 1
ASSEMBLY THIRD READING
AB
787 (Roger Hernández)
As Amended June 1, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+----------------------|
|Education |4-3 |O'Donnell, McCarty, |Chávez, Kim, Weber |
| | |Santiago, Thurmond | |
| | | | |
|----------------+------+--------------------+----------------------|
|Appropriations |11-0 |Gomez, Bonta, | |
| | |Calderon, Daly, | |
| | |Eggman, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, Wood | |
| | | | |
| | | | |
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SUMMARY: Prohibits a charter school from operating as, or being
operated by, a for-profit corporation.
AB 787
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EXISTING LAW authorizes charter schools to elect to operate as, or
be operated by, a nonprofit public benefit corporation, formed and
organized pursuant to the Nonprofit Public Benefit Corporation
Law. Specifies the governing board of a school district that
grants a charter for the establishment of a charter school shall
be entitled to a single representative on the board of directors
of the nonprofit public benefit corporation. Specifies 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 Education Code Sections 47604.32 and 47605(m).
(Education Code Section 47604)
FISCAL EFFECT: According to the Assembly Appropriations
Committee, unknown, likely minor costs.
COMMENTS: This bill prohibits charter schools from being operated
by a for-profit corporation. According to the California Charter
School Association, there are currently six for-profit charter
schools operating in California.
Current law authorizes charter schools to operate as a non-profit
corporation, but the Education Code is silent regarding whether
charter schools are permitted to operate as a for-profit
corporations. Due to the permissive nature of the Education Code,
it appears that charter schools are operating as for-profit
corporations. Is it appropriate for state tax payer dollars to be
appropriated directly to for-profit corporations to operate public
schools? If a public school is run as a for-profit corporation,
is there a perverse incentive to limit services to students in
order to increase corporate profits?
AB 787
Page 3
Analysis Prepared by:
Chelsea Kelley / ED. / (916) 319-2087 FN: 0000746