BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 1426             
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          |Author:    |Levine                                               |
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          |Version:   |June 24, 2015                              Hearing   |
          |           |Date:     July 1, 2015                               |
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          |Urgency:   |No                     |Fiscal:     |Yes             |
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          |Consultant:|Lenin Del Castillo                                   |
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          Subject:  Charter schools:  classroom-based and  
          nonclassroom-based instruction:  blended learning charter  
          schools

            SUMMARY
          
          This bill establishes a funding determination process for  
          blended learning charter schools that offer classroom-based  
          instruction between 60 percent and 80 percent of the  
          instructional time.  

           BACKGROUND
          
          Under existing law, the Charter Schools Act of 1992 provides for  
          the establishment of charter schools in California for the  
          purpose, among other things, to improve student learning and  
          expand learning experiences for pupils who are identified as  
          academically low achieving.  A charter school may be authorized  
          by a school district, a county board of education, or the State  
          Board of Education, as specified.  Some charter schools are new  
          while others are conversions from existing schools.  Except  
          where specifically noted otherwise, California law exempts  
          charter schools from many of the statutes and regulations that  
          apply to schools and school districts.  The legislative intent  
          of the Charter Schools Act was to provide opportunities for  
          teachers, parents, pupils, and community members to establish  
          and maintain schools that operate independently from a school  
          district structure that would afford parents and pupils with  
          expanded educational choices, offer new professional  
          opportunities for teachers to be responsible for the learning  







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          program at the school site, and create competition within the  
          public school system to stimulate continual improvements in all  
          public schools.  

          Existing law requires that charter schools:  1) are nonsectarian  
          in their programs, admission policies, employment practices, and  
          all other operations; 2) not charge tuition; and 3) not  
          discriminate against any pupil on the basis of the  
          characteristics, as specified.  Admission to a charter school  
          may not be determined according to the place of residence of the  
          pupil, or of his or her parent or legal guardian, within the  
          state, except that an existing public school converting to a  
          charter school must adopt and maintain a policy giving  
          admissions preference to pupils who reside within the former  
          attendance area of that public school.  (Education Code § 47605,  
          et seq.)  

          According to the California Department of Education, there were  
          over 1,100 charter schools with an enrollment of approximately  
          514,000 pupils operating in the state in 2013-14.




          Existing law:

          1)Requires charter schools to offer, at a minimum, the following  
            number of minutes of instruction each fiscal year:


             a)   36,000 minutes in kindergarten;


             b)   50,400 minutes in grades 1 to 3, inclusive;


             c)   54,000 minutes in grades 4 to 8, inclusive; and


             d)   64,800 minutes in grades 9 to 12, inclusive.


          2)Provides that "classroom-based instruction" in a charter  
            school occurs only when charter school pupils are engaged in  








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            educational activities required of those pupils and are under  
            the immediate supervision and control of an employee of the  
            charter school who possesses a valid teaching certification.


          3)Authorizes a charter school to receive a full classroom-based  
            instruction apportionment if it offers at least 80 percent of  
            the minimum instructional time and requires the attendance for  
            all pupils for whom a classroom-based apportionment is claimed  
            at the school site for at least 80 percent of the minimum  
            instruction time required.


          4)Authorizes charter schools to offer nonclassroom-based  
            instruction, which includes, but is not limited to,  
            independent study, home schooling, and distance and  
            computer-based education.


          5)Regulates the provision of funding to charter schools that  
            provide instruction in nonclassroom-based settings through a  
            funding determination process by the State Board of Education  
            (SBE) and provides that nonclassroom-based instruction shall  
            be funded at no more than 70 percent of the rate for  
            classroom-based instruction unless the SBE determines that a  
            greater or lesser amount is appropriate.  (Education Code §  
            47634.2)


            ANALYSIS
          
          This bill:

          1)Defines "blended learning charter school" as a charter school  
            that offers a formal education program in which a pupil learns  
            at least in part through online delivery of content and  
            instruction with some element of pupil control over time,  
            place, and pace and at least in part at a supervised location  
            away from home, operates a single school site within the  
            geographic jurisdiction of the authority that granted its  
            charter, and has no more than one satellite facility, as  
            specified.










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          2)Requires a blended learning charter school that offers  
            classroom-based instruction no less than 60 percent and no  
            more than 80 percent of the instructional time offered by the  
            charter school to be subject to the determination of funding  
            requirement by the State Board of Education, as specified. 


          3)Requires a blended learning charter school that seeks a  
            funding determination to report its attendance as a  
            nonclassroom-based charter school.


          4)Provides that a blended learning charter school that seeks a  
            funding determination shall not lose eligibility for  
            facilities assistance funding, as specified, based solely on  
            its status as a nonclassroom-based school, provided that the  
            charter school is otherwise eligible.


          5)Requires the State Board of Education (SBE) to adopt  
            regulations setting forth criteria for the determination of  
            funding for a blended learning charter school and shall  
            include facility costs as instructional costs for any funding  
            evaluation that considers the total instructional costs of the  
            school.


          STAFF COMMENTS
          
          1)Need for the bill.  According to the author's office, "while  
            blended learning innovations are occurring throughout the  
            state, they are not well supported by the existing policy  
            environment.  Currently, our education policies support two  
            paths to instruction:  the traditional classroom model and the  
            virtual/independent study model.  Blended learning operates in  
            the middle of that spectrum.  Both traditional and charter  
            public schools are engaging in blended learning but charter  
            schools have a hurdle that traditional schools do not.  The  
            current 80 percent threshold that defines a nonclassroom-based  
            school creates unintentional challenges for a blended learning  
            charter school that remains mostly bricks and mortar."    


          2)Blended learning.  Blended learning is a method of instruction  








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            that combines traditional classroom-based instruction with  
            some form of independent study that utilizes online learning  
            outside of the classroom.  It currently is offered by both  
            charter schools and traditional public schools.  Charter  
            schools have the option of reducing classroom-based  
            instruction to 80 percent of the minutes otherwise required  
            and still receive full Average Daily Attendance (ADA) funding  
            for their students.    


            While existing law already authorizes a charter school to  
            offer nonclassroom-based instruction and go through a funding  
            determination process by the SBE in which it could receive  
            full ADA funding for its students, this bill creates new  
            statutory provisions for charter schools that provide between  
            60 percent and 80 percent of classroom-based instruction time  
            which is a lower threshold than what is currently authorized  
            for nonclassroom-based instruction.  Funding for blended  
            learning programs would also be subject to a funding  
            determination process by the SBE.  However, the SBE would be  
            required to include facility costs (as instructional costs) as  
            part of its consideration.  Currently, the Charter School  
            Facility Grant Program which was established by SB 740  
            (O'Connell, Chapter 892, Statutes of 2001) and provides  
            assistance to charter schools with facilities rent and lease  
            expenditures, explicitly prohibits the use of non-classroom  
            based ADA.  The author's office and supporters of the bill  
            argue that these charters will have facility needs, such as  
            providing some courses in a classroom setting or for teachers  
            to meet with students on a scheduled basis.   






          3)Effectiveness of online instruction?  Studies on the use of  
            online instruction, which has grown in recent years, as  
            compared to traditional face-to-face instruction, have been  
            inconclusive and some have even gone on to suggest that online  
            instruction is not as effective as regular classroom  
            instruction.  For example, a 2011 study of charter school  
            performance in Pennsylvania by the Center for Research on  
            Education Outcomes at Stanford University found that each of  








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            that state's eight online charter schools significantly  
            underperformed brick and mortar schools and regular  
            (non-virtual) charter schools in reading and math.  A 2011  
            report from the Ohio Department of Education only rated three  
            of the state's 27 virtual schools as effective or excellent.   
            Notwithstanding these studies, with recent advances in  
            technology combined with local workforce needs, blending  
            learning programs could allow for more innovative and  
            experimental paths to instruction that benefit student  
            outcomes.  Additionally, by requiring a blended learning  
            charter school to go through a funding determination process  
            through the State Board of Education (SBE), this could help  
            ensure adequate state fiscal oversight and prevent the  
            potential for these schools to reduce spending on  
            instruction-related activities.  


          4)Pilot program.  Absent a comprehensive analysis on the  
            effectiveness of blended learning, it appears to be premature  
            at this point to expand these programs as prescribed by this  
            measure.  Staff recommends the following amendments:


             a)   Provide that the bill's provisions be implemented as a  
               pilot program administered by the California Department of  
               Education (CDE) for a three-year period, commencing with  
               the 2016-17 school year.  


             b)   Require the CDE to establish an application process with  
               up to 10 charter schools selected for participation.


             c)   Require that the application be based on, at minimum, a  
               written proposal describing the blended learning program  
               and population to be served, evidence of the applicant's  
               track record of success in operating a blended learning  
               program, and a written plan for documenting and reporting  
               its practices and pupil outcomes for the duration of the  
               pilot program, including specific educational goals and  
               outcomes that are aligned with the applicant's local  
               control and accountability plan.         










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            Staff also recommends that the bill be amended to require the  
            CDE to contract for an independent evaluation of the pilot  
            program that assesses the effectiveness of charter school  
            blended learning programs on student performance and includes  
            recommendations on whether this model of instruction should be  
            implemented on a statewide basis.  The evaluation shall  
            include recommendations on funding instructional and facility  
            costs and the effectiveness of the funding determination  
            process.  This could help inform future discussions on the  
            possibility of permanently authorizing blended learning at the  
            reduced threshold of classroom time that this measure  
            proposes.   


          5)Funding for facilities.  This bill provides that a blending  
            learning charter school that seeks a funding determination  
            shall not lose eligibility for facilities assistance under  
            Proposition 39, the Charter School Facility Grant Program, and  
            the State School Facilities Program, provided the school is  
            otherwise eligible for the facilities funding pursuant to  
            those programs.  As previously mentioned in Comment No. 2,  
            current law explicitly prohibits eligibility for Charter  
            School Facility Grant Program funds for nonclassroom-based  
            instruction.  Because the bill would require the SBE's funding  
            determination to include facility costs as part of its  
            consideration and also to be consistent with the existing  
            Charter School Facility Program, staff recommends that the  
            provision allowing a blended learning charter school to retain  
            its eligibility for facilities assistance pursuant to the  
            Charter School Facility Grant Program be deleted.    


          6)Arguments in support.  Supporters of this bill, the California  
            Charter Schools Association, state blended learning programs  
            are not well supported by the existing policy environment.   
            They state the current SBE funding determination process has  
            forced blended learning charter schools to "severely curtail  
            their blended learning innovation."  They further state the  
            current process is "arbitrary and artificially constraining  
            when applied to blended learning charter schools."


          7)Arguments in opposition.  The California Teachers Association,  
            (CTA), which is opposed to this bill, states there is no  








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            research highlighting the importance of the zone between 60  
            percent to 80 percent of students instructional time that  
            necessitate special consideration.  A high quality charter  
            school using a blended model of instruction has the potential  
            to be a valuable alternative for certain targeted students for  
            whom the traditional classroom model is not feasible.   
            However, too often this approach is neither targeted nor high  
            quality.  They note charter schools that move into the online  
            learning environment interact more with for-profit companies  
            who have a responsibility to their shareholders, taking the  
            focus away from students.  CTA believes charter schools that  
            seek to provide more online instruction out of class should  
            utilize the existing process for non-classroom based  
            instruction apportionments. 


          8)Related and prior legislation.  AB 2178 (Levine, 2014)  
            proposed to establish the Blended Learning Pilot Program,  
            administered by the State Board of Education for the purpose  
            of exploring best practices in blended learning.  This bill  
            failed passage in the Assembly Appropriations Committee.


            SUPPORT
          
          California Charter Schools Association
          EdVoice
          StudentsFirst

            OPPOSITION
           
           California Federation of Teachers
          California School Employees Association
          California Teachers Association


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