Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2242


Introduced by Assembly Member Lopez

February 18, 2016


An act to amend Sectionbegin delete 33004end deletebegin insert 47604end insert of the Education Code, relating tobegin delete elementary and secondary education.end deletebegin insert charter schools.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2242, as amended, Lopez. begin deleteSuperintendent of Public Instruction: duties. end deletebegin insertCharter schools: operation: nonprofit public benefit corporations: for-profit corporations.end insert

begin insert

The Charter Schools Act of 1992 specifies the procedures for the submission, review, and approval or denial of a petition to establish a charter school. The act authorizes a charter school 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.

end insert
begin insert

This bill would, notwithstanding any other law, prohibit a nonprofit public benefit corporation that operates, or operates as, a charter school from (1) operating or organizing in any manner inconsistent with the accountability requirements that all charter schools owe the public, (2) having members, (3) being a subsidiary of any other corporation, or (4) being affiliated with another corporation or equivalent legal entity that has the power to control, or otherwise exert control over, either directly or indirectly, the decision making or governance of the charter school. The bill would also prohibit a charter school from operating as, or being operated by, a for-profit corporation.

end insert
begin delete

Existing law establishes the State Board of Education in the state government. Existing law provides that the Superintendent of Public Instruction shall be secretary and shall act as executive officer of the board.

end delete
begin delete

This bill would make a nonsubstantive change to these provisions.

end delete

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

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 47604 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert

3

47604.  

(a) begin deleteCharter schools end deletebegin insert(1)end insertbegin insertend insertbegin insertA charter school end insertmay elect to
4operate as, or be operated by, a nonprofit public benefit corporation,
5formed and organized pursuant to the Nonprofit Public Benefit
6Corporation Law (Part 2 (commencing with Section 5110) of
7Division 2 of Titlebegin delete 1)end deletebegin insert 1end insert of the Corporations Code).

begin insert

8(2) Notwithstanding any other law, a nonprofit public benefit
9corporation that operates as, or operates, a charter school, shall
10not do any of the following:

end insert
begin insert

11(A) Operate or organize in any manner inconsistent with the
12accountability requirements that all charter schools, including
13those operating as, or that are operated by, a nonprofit public
14benefit corporation, owe to the public.

end insert
begin insert

15(B) Have members, as defined in Section 5056 of the
16Corporations Code.

end insert
begin insert

17(C) Be a subsidiary of any other corporation.

end insert
begin insert

18(D) Be affiliated with another corporation or equivalent legal
19entity that has the power to control, or otherwise exert control
20over, either directly or indirectly, the decision making or
21governance of the charter school, including, but not limited to,
22fiscal, operational, and educational decisions.

end insert

23(b) begin deleteThe governing board of a school district end deletebegin insertAn authority end insertthat
24grants a charter for the establishment of a charter school formed
25and organized pursuant to this section shall be entitled to a single
26 representative on the board of directors of the nonprofit public
27benefit corporation.

28(c) An authority that grants a charter to a charter school to be
29operated by, or as, a nonprofit public benefit corporation is not
30liable for the debts or obligations of the charter school, or for
P3    1claims arising from the performance of acts, errors, or omissions
2by the charter school, if the authority has complied with all
3oversight responsibilities required by law, including, but not limited
4to, those required by Section 47604.32 and subdivision (m) of
5Section 47605.

begin insert

6(d) A charter school shall not be operated as, or be operated
7by, a for-profit corporation.

end insert
begin delete8

SECTION 1.  

Section 33004 of the Education Code is amended
9to read:

10

33004.  

The Superintendent of Public Instruction shall be
11secretary and shall act as executive officer of the board. He or she
12shall have charge of all its correspondence and shall keep a record
13of its proceedings.

end delete


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