BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 29, 2015


                           ASSEMBLY COMMITTEE ON EDUCATION


                              Patrick O'Donnell, Chair


          AB 803  
          (Hadley) - As Amended April 22, 2015


          SUBJECT:  School districts:  reorganization:  formation of new  
          school districts


          SUMMARY:  Establishes procedures for an action to form a new  
          district within the boundaries of a single school district  
          within a single county.  Specifically, this bill:  


          1)Specifies that the following provisions apply to an action to  
            form a new district within the boundaries of a single school  
            district within a single county:


             a)   The action may be initiated by either of the following:


               i)     A petition signed by at least 10 percent of the  
                 number of qualified electors who voted in the last  
                 gubernatorial election and who reside within the  
                 boundaries of the proposed district. The petition shall  
                 identify persons who will represent the proposed district  
                 in public hearings.


               ii)    A resolution of a local agency approved by a  








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                 majority of its members. The local agency shall also  
                 appoint persons to represent the proposed school district  
                 in public hearings by a resolution.


             b)   Upon receipt of the petition, the county board of  
               education shall hold a public hearing on the petition at a  
               regular or special meeting. Following the hearing, the  
               county board of education shall grant or deny the petition.


             c)   Upon receipt of the resolution, the county board of  
               education and the local agency that initiated the transfer  
               proposal shall jointly hold a public hearing on the  
               transfer proposal at a regular or special meeting.  
               Following the hearing, the county board of education and  
               the local agency that initiated the transfer proposal shall  
               jointly grant or deny the transfer proposal by a majority  
               vote of all members.


             d)   If a petition or proposal is granted, the county  
               superintendent of schools shall call an election of  
               registered voters within the boundaries of the proposed  
               school district to be conducted at the next election.


          2)Defines "local agency" to mean a city council, county board of  
            supervisors, governing body of a special district, or local  
            agency formation commission that has jurisdiction over all or  
            a portion of the proposed school district.


          3)Provides that, if the new district includes within its  
            boundaries a chartered city, the county committee on school  
            district reorganization may stipulate that the governing board  
            of the school district may be governed by the charter of the  
            city and not exclusively by general law.









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          4)Requires the county committee on school district  
            reorganization, at least 10 days prior to the public hearing,  
            to make the following information available to the public:


             a)   The rights of the employees in the affected district to  
               continued employment;


             b)   Whether the districts involved will be governed, in  
               part, by provision of a city charter and, if so, in what  
               way;


             c)   Whether the governing boards of any proposed new  
               district will have five or seven members;


             d)   A description of the territory or districts in which the  
               election will be held;


             e)   Whether the governing board of any new district will  
               have trustee areas and, if so, whether the trustees will be  
               elected by only the voters of that trustee area or by the  
               voters of the entire district;


             f)   A description of how the property, obligations, and  
               bonded indebtedness of existing districts will be divided;  
               and


             g)   A description of when the first governing board of any  
               new district will be elected and how the terms of office  
               for each new trustee will be determined.










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          EXISTING LAW:  Prescribes procedures for school district  
          reorganization, depending on the type of reorganization  
          (transfer of territory, unification, etc.) and the method by  
          which the proposal to reorganize was initiated (petition, school  
          board resolution, etc.).


          FISCAL EFFECT:  Unknown


          COMMENTS:  Background.  In 1983, an unincorporated area of Los  
          Angeles known as Eastview was annexed into the city of Rancho  
          Palos Verdes.  Prior to annexation, the territory of Eastview  
          and its two schools-Dodson Middle School and Crestwood  
          Elementary School-were  part of the Los Angeles Unified School  
          District (LAUSD).  They remained part of LAUSD after annexation.


          In 1991, the governing board of the Rancho Palos Verdes School  
          District (RPVSD) passed a resolution to initiate a process to  
          transfer the Eastview territory from LAUSD to RPVSD.  The  
          initiative was approved by the voters of the RPVSD, but was  
          overturned by the courts, because the vote did not include  
          voters in the LAUSD, as required by the law.


          In 1998, the Legislature enacted legislation, SB 1681  
          (Karnette), Chapter 868, Statutes of 1998, which designated the  
          area of Eastview as optional attendance area.  Accordingly,  
          residents of Eastview may choose to send their children to  
          either the LAUSD or the RPVUSD.


          Purpose of this bill.  Eastview would qualify for the  
          reorganization process established by this bill, because its  
          territory is within a single unified school district within a  
          single county.  Under this new process, Eastview could become  
          its own school district and then, at a later point in time,  
          unify with RPVUSD.  








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          The new process established by this bill differs in several ways  
          from existing law: 


                 The process to initiate a petition.  In the case of  
               inhabited territory, existing law requires a petition to be  
               signed by 25% of the registered voters of the territory.   
               This bill requires 10% of the registered voters who voted  
               in the last gubernatorial election-a much smaller number.   
               Alternatively, existing law permits an action to reorganize  
               a district to be initiated by a majority vote of the  
               members of all affected school districts.  This bill  
               permits an action to be initiated by a vote of a local  
               agency, as defined.  


                 The role of the State Board of Education (SBE).   
               Existing law requires the SBE to approve proposals for  
               district reorganization, except in limited circumstances.   
               In making its determination, the SBE must consider 10  
               statutory requirements, such as the equitable division or  
               property and facilities, the impact on the racial/ethnic  
               balance of the districts, the impact on educational  
               programs, and the fiscal impact. The process created by  
               this bill does not require SBE consideration or approval.   
               However, the author's office indicates it is their intent  
               to require approval by the SBE before a vote is held.


                 Final determination.  Once a petition has been approved  
               by the SBE, there are two procedures for getting final  
               approval.  First, if the territory proposal to be  
               reorganized accounts for  less than 10% of the assessed  
               value of the whole district, then it can be approved by a  
               majority vote of all governing boards.  Otherwise, it must  
               be approved by a majority vote of the voters of all  
               affected districts.  This bill provides for a vote by only  








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               the Eastview voters of the LAUSD, and not all of the voters  
               of LAUSD.


          Effects of school district reorganization.  School district  
          reorganization has many effects on a wide range of concerns,  
          including the following:


                 The status, seniority, salaries and benefits of  
               employees in the affected territory;


                 Contractual obligations regarding the schools in the  
               affected territory;


                 Ownership (or transfer of ownership) of property and  
               facilities;


                 The allocation of the proceeds of the sale of bonds;


                 The allocation of bonded indebtedness and debt service;   
               and


                 The disposition of student body property, funds, and  
               obligations.


          Some of these concerns, especially the allocation of debt  
          service on existing bonded indebtedness, affect all of the  
          residents of the district involved, not just those that would be  
          permitted to vote on the question under this bill.  Because this  
          bill establishes a process that may be used statewide, the  
          committee may wish to consider the precedent that would be set  
          by allowing only a subset of voters who are affected by an issue  








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          to vote on that issue.


          Correction needed.  Should the committee vote to pass this bill,  
          staff recommends it be amended to reference the county committee  
          on school district reorganization instead of the county board of  
          education.


          Arguments in opposition.  Opponents express concerns about the  
          "extremely low threshold" to initiate a petition that this bill  
          establishes, and argue that it ignores the community affected  
          and denies the existing school district a voice in the matter.   
          They also argue that this is a local matter that should be  
          resolved locally.


          REGISTERED SUPPORT / OPPOSITION:   




          Support


          None received




          Opposition


          Los Angeles Unified School District




          Analysis Prepared by:Rick Pratt / ED. / (916) 319-2087








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