Amended in Senate March 26, 2015

Senate Bill No. 329

Introduced by Senator Mendoza

February 23, 2015

An act to amend begin delete Section 41010 end delete begin insert Sections 47605 and 47605.6 end insert of the Education Code, begin insert and to amend Section 20110 of the Public Contract Code, end insert relating to begin delete school finance. end delete begin insert charter schools. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 329, as amended, Mendoza. begin delete School finance: accounting. end delete begin insert Charter schools: petition denials: competitive bidding. end insert

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(1) Existing law, the Charter Schools Act of 1992 (the Charter Schools Act), specifies the petition process for the establishment of a charter school within a school district. As part of that process, the Charter Schools Act requires, no later than 30 days after receiving a petition, the governing board of a school district to hold a public hearing on the provisions of the charter, at which time the governing board of the school district is required to consider the level of support for the petition by teachers employed by the school district, other employees of the school district, and parents.

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This bill would require the governing board of a school district to also consider a report assessing whether school district staff has the capacity to conduct oversight of the charter school described in the petition and a report of the anticipated financial and educational impact on the other schools that the governing board of the school district has oversight obligations for. By imposing additional duties on school district officials, the bill would impose a state-mandated local program.

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(2) The Charter Schools Act prohibits the governing board of a school district from denying a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, to support one or more specific findings, including, among others, that the petition lacks the requisite number of signatures or that the charter school presents an unsound educational program. If the governing board of the school district denies the petition, the Charter Schools Act authorizes the petitioners to elect to submit the petition to the county board of education, and if the county board of education denies the petition, to submit the petition to the State Board of Education, and requires the county board of education and the state board to review the petition pursuant to the provisions applicable to the governing board of a school district.

end insert begin insert

This bill would add having a negative fiscal impact on the school district to the list of specific findings sufficient to authorize the governing board of a school district to deny a petition, as provided.

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(3) The Charter Schools Act specifies a separate petition process for the establishment of a countywide charter school. As part of that separate process, the Charter Schools Act requires, no later than 60 days after receiving a petition, a county board of education to hold a public hearing on the provisions of the charter, at which time the county board of education is required to consider the level of support for the petition by teachers, parents or guardians, and the school districts where the charter school petitioner proposes to place school facilities.

end insert begin insert

This bill would require a county board of education to also consider a report assessing whether county office of education staff has the capacity to conduct oversight of the charter school described in the petition and a report of the anticipated financial and educational impact on the other schools that the governing board of a school district has oversight obligations for. By imposing additional duties on county boards of education, the bill would impose a state-mandated local program.

end insert begin insert

(4) The Charter Schools Act requires a county board of education to deny a petition for the establishment of a countywide charter school if it makes certain findings, including, among others, that the petition lacks the requisite number of signatures or that the charter school presents an unsound educational program. The Charter Schools Act also specifies a separate petition process for the establishment of a state charter school whereby the petition is submitted directly to the State Board of Education, and authorizes the state board to deny a petition for any of the reasons that require a county board of education to deny a petition.

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This bill would require a county board of education to, and would thus authorize the state board to, deny a petition if it finds that the charter school would have a negative financial impact on a school district, as provided. To the extent this bill would impose additional duties on a county board of education, the bill would impose a state-mandated local program.

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(5) Existing law, the Local Agency Public Construction Act (the act), sets forth the requirements for competitive bidding on various types of contracts awarded by state and local agencies, including a school district. The act requires, among other things, the governing board of a school district to let contracts for the purchase of equipment, materials, or supplies to be furnished, leased, or sold to the school district, services other than construction services, and certain repairs, involving an expenditure of more than $50,000, and to let contracts for public projects, as defined, involving an expenditure of $15,000 or more, to the lowest responsible bidder who gives security as the governing board of the school district requires.

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This bill would apply the provisions of the act applicable to school districts to charter schools. By imposing additional duties on charter school officials, the bill would impose a state-mandated local program.

end insert begin insert

(6) This bill also would update references and make other nonsubstantive changes.

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(7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert begin delete

Existing law requires the accounting system used to record the financial affairs of any school district to be in accordance with the definitions, instructions, and procedures published in the California School Accounting Manual as approved by the State Board of Education and furnished by the Superintendent of Public Instruction.

end delete begin delete

This bill would make nonsubstantive changes to these provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 47605 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

47605.  

(a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school
may propose to operate at multiple sites within the school district,
as long as each location is identified in the charter school petition.
The petition may be submitted to the governing board of the school
district for review after either of the following conditions is met:

(A) The petition is signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in
the begin insert charter end insert school for its first year of operation.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the begin insert charter end insert school
during its first year of operation.

(2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant
to subdivision begin delete (b) end delete begin insert (c) end insert of Section 41365 may be circulated by one
or more persons seeking to establish the charter school. The petition
may be submitted to the governing board of the school district for
review after the petition is signed by not less than 50 percent of
the permanent status teachers currently employed at the public
school to be converted.

(3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(4) After receiving approval of its petition, a charter school that
proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify the
authority that granted its charter of those additional locations. The
authority that granted its charter shall consider whether to approve
those additional locations at an open, public meeting. If the
additional locations are approved, begin delete they end delete begin insert there end insert shall be a material
revision to the charter school’s charter.

(5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district within
the jurisdiction of which the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools and the Superintendent are notified of
the location of the charter school before it commences operations,
and either of the following circumstances exists:

(A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.

(B) The site is needed for temporary use during a construction
or expansion project.

(6) Commencing January 1, 2003, a petition to establish a charter
school begin delete may end delete begin insert shall end insert not be approved to serve pupils in a grade level
that is not served by the school district of the governing board
considering the petition, unless the petition proposes to serve pupils
in all of the grade levels served by that school district.

(b) No later than 30 days after receiving a petition, in accordance
with subdivision (a), the governing board of the school district
shall hold a public hearing on the provisions of the charter, at
which time the governing board of the school district shall begin delete consider end delete
begin insert consider: (A) end insert the level of support for the petition by teachers
employed by the begin insert school end insert district, other employees of the begin insert school end insert
district, and begin delete parents. end delete begin insert parents, (B) a report assessing whether school
district staff has the capacity to conduct oversight of the charter
school described in the petition, and (C) a report of the anticipated
financial and educational impact on the other schools that the
governing board of the school district has oversight obligations
for. end insert Following review of the petition begin insert and the reports end insert and begin insert after end insert the
public hearing, the governing board of the school district shall
either grant or deny the charter within 60 days of receipt of the
petition, provided, however, that the date may be extended by an
additional 30 days if both parties agree to the extension. In
reviewing petitions for the establishment of charter schools
pursuant to this section, the chartering authority shall be guided
by the intent of the Legislature that charter schools are and should
become an integral part of the California educational system and
that begin insert the end insert establishment of charter schools should be encouraged.
The governing board of the school district shall grant a charter for
the operation of a begin insert charter end insert school under this part if it is satisfied
that granting the charter is consistent with sound educational
practice. The governing board of the school district shall not deny
a petition for the establishment of a charter school unless it makes
written factual findings, specific to the particular petition, setting
forth specific facts to support one or more of the following
findings:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

begin insert

(5) The charter school would have a negative fiscal impact on
the school district. For purposes of this paragraph, the finding
that a charter school would have a negative fiscal impact on a
school district shall only be established, and shall be deemed to
be established, if any of the following conditions are met:

end insert begin insert

(A) The school district has received a negative financial
certification pursuant to Section 42131.

end insert begin insert

(B) The school district has received an emergency
apportionment or loan and is operating under the oversight of a
state-appointed administrator or trustee pursuant to Article 2
(commencing with Section 41320) of, or Article 2.5 (commencing
with Section 41325) of, Chapter 3 of Part 24 of Division 3.

end insert begin insert

(C) The school district, due to declining enrollment of pupils,
is in the process of closing a school that the charter petition has
identified as a proposed schoolsite for the charter school and the
school district has received a qualified financial certification
pursuant to Section 42131 or would receive a qualified financial
certification pursuant to Section 42131 if the charter petition is
approved.

end insert begin delete

(5)

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begin insert (6) end insert  The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) A description of the educational program of the begin insert charter end insert
school, designed, among other things, to identify those whom the
begin insert charter end insert school is attempting to educate, what it means to be an
“educated person” in the 21st century, and how learning best
occurs. The goals identified in that program shall include the
objective of enabling pupils to become self-motivated, competent,
and lifelong learners.

(ii) A description, for the charter school, of annual goals, for
all pupils and for each subgroup of pupils identified pursuant to
Section 52052, to be achieved in the state priorities, as described
in subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school,
and specific annual actions to achieve those goals. A charter
petition may identify additional school priorities, the goals for the
school priorities, and the specific annual actions to achieve those
goals.

(iii) If the proposed begin insert charter end insert school will serve high school pupils,
a description of the manner in which the charter school will inform
parents about the transferability of courses to other public high
schools and the eligibility of courses to meet college entrance
requirements. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges
may be considered transferable and courses approved by the
University of California or the California State University as
creditable under the “A” to “G” admissions criteria may be
considered to meet college entrance requirements.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the begin insert charter end insert school demonstrate
that they have attained the skills, knowledge, and attitudes specified
as goals in the begin insert charter end insert school’s educational program. Pupil
outcomes shall include outcomes that address increases in pupil
academic achievement both schoolwide and for all groups of pupils
served by the charter school, as that term is defined in subparagraph
(B) of paragraph (3) of subdivision (a) of Section 47607. The pupil
outcomes shall align with the state priorities, as described in
subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The governance structure of the begin insert charter end insert school, including,
but not limited to, the process to be followed by the begin insert charter end insert school
to ensure parental involvement.

(E) The qualifications to be met by individuals to be employed
by the begin insert charter end insert school.

(F) The procedures that the begin insert charter end insert school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the begin insert charter end insert school
furnish begin delete the school end delete begin insert it end insert with a criminal record summary as described
in Section 44237.

(G) The means by which the begin insert charter end insert school will achieve a racial
and ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.

(H) Admission requirements, if applicable.

(I) The manner in which annual, independent financial audits
shall be conducted, which shall employ generally accepted
accounting principles, and the manner in which audit exceptions
and deficiencies shall be resolved to the satisfaction of the
chartering authority.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter schools
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.

(M) A description of the rights of begin delete any end delete begin insert an end insert employee of the school
district upon leaving the employment of the school district to work
in a charter school, and of any rights of return to the school district
after employment at a charter school.

(N) The procedures to be followed by the charter school and
the entity granting the charter to resolve disputes relating to
provisions of the charter.

(O) A declaration begin insert of end insert whether or not the charter school shall be
deemed the exclusive public school employer of the employees of
the charter school for purposes of Chapter 10.7 (commencing with
Section 3540) of Division 4 of Title 1 of the Government Code.

(P) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
begin insert charter end insert school to determine the disposition of all assets and
liabilities of the charter school, including plans for disposing of
any net assets and for the maintenance and transfer of pupil records.

(c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605
and 60851 and any other statewide standards authorized in statute
or pupil assessments applicable to pupils in noncharter public
schools.

(2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the begin insert charter end insert school’s
educational programs.

(d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against begin delete any end delete begin insert a end insert
pupil on the basis of the characteristics listed in Section 220. Except
as provided in paragraph (2), admission to a charter school shall
not be determined according to the place of residence of the pupil,
or of his or her parent or legal guardian, within this state, except
that an existing public school converting partially or entirely to a
charter school under this part shall adopt and maintain a policy
giving admission preference to pupils who reside within the former
attendance area of that public school.

(2) (A) A charter school shall admit all pupils who wish to
attend the begin insert charter end insert school.

(B) If the number of pupils who wish to attend the charter school
exceeds the begin insert charter end insert school’s capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing. Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
begin insert school end insert district except as provided for in Section 47614.5. Other
preferences may be permitted by the chartering authority on an
individual school basis and only if consistent with the law.

(C) In the event of a drawing, the chartering authority shall
make reasonable efforts to accommodate the growth of the charter
school and in no event shall take any action to impede the charter
school from expanding enrollment to meet pupil demand.

(3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil’s last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record
of the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject
to compulsory full-time education pursuant to Section 48200.

(e) The governing board of a school district shall not require
begin delete any end delete begin insert an end insert employee of the school district to be employed in a charter
school.

(f) The governing board of a school district shall not require
begin delete any end delete begin insert a end insert pupil enrolled in the school district to attend a charter school.

(g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the begin insert charter end insert school,
including, but not limited to, the facilities to be used by the begin insert charter end insert
school, the manner in which administrative services of the begin insert charter end insert
school are to be provided, and potential civil liability effects, if
any, upon the begin insert charter end insert school and upon the school district. The
description of the facilities to be used by the charter school shall
specify where the begin insert charter end insert school intends to locate. The petitioner
or petitioners begin delete shall end delete also begin insert shall end insert be required to provide financial
statements that include a proposed first-year operational budget,
including startup costs, and cashflow and financial projections for
the first three years of operation.

(h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032, as it read before July 19, 2006.

(i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide written
notice of that approval, including a copy of the petition, to the
applicable county superintendent of schools, the department, and
the state board.

(j) (1) If the governing board of a school district denies a
petition, the petitioner may elect to submit the petition for the
establishment of a charter school to the county board of education.
The county board of education shall review the petition pursuant
to subdivision (b). If the petitioner elects to submit a petition for
establishment of a charter school to the county board of education
and the county board of education denies the petition, the petitioner
may file a petition for establishment of a charter school with the
state board, and the state board may approve the petition, in
accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from
the state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be
subject if it received approval from the entity to which it originally
submitted its petition. A charter petition that is submitted to either
a county board of education or to the state board shall meet all
otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.

(2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision begin delete (b) end delete begin insert (b), end insert and shall define “reasonably
begin delete comprehensive” end delete begin insert comprehensive,” end insert as used in paragraph (5) of
subdivision begin delete (b) end delete begin insert (b), end insert in a way that is consistent with the intent of
this part. Upon satisfactory completion of the criteria, the state
board shall adopt the criteria on or before June 30, 2001.

(3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.

(4) If either the county board of education or the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny begin delete a end delete begin insert the end insert petition
begin delete shall, thereafter, end delete begin insert shall end insert be subject to judicial review.

(5) The state board shall adopt regulations implementing this
subdivision.

(6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the begin delete petition end delete begin insert petition, end insert to the
department and the state board.

(k) (1) The state board may, by mutual agreement, designate
its supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is located or to the governing
board of the school district that first denied the petition.

(2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with
the state board.

(3) A charter school that is granted its charter through an appeal
to the state board and elects to seek renewal of its charter shall,
before expiration of the charter, submit its petition for renewal to
the governing board of the school district that initially denied the
charter. If the governing board of the school district denies the
begin insert charter end insert school’s petition for renewal, the begin insert charter end insert school may
petition the state board for renewal of its charter.

(l) Teachers in charter schools shall hold a Commission on
Teacher Credentialing certificate, permit, or other document
equivalent to that which a teacher in other public schools would
be required to hold. These documents shall be maintained on file
at the charter school and are subject to periodic inspection by the
chartering authority. It is the intent of the Legislature that charter
schools be given flexibility with regard to noncore, noncollege
preparatory courses.

(m) A charter school shall transmit a copy of its annual,
independent financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to its chartering entity, the Controller, the county superintendent
of schools of the county in which the charter school is sited, unless
the county board of education of the county in which the charter
school is sited is the chartering entity, and the department by
December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 47605.6 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

47605.6.  

(a) (1) In addition to the authority provided by
Section 47605.5, a county board of education may also approve a
petition for the operation of a charter school that operates at one
or more sites within the geographic boundaries of the county and
that provides instructional services that are not generally provided
by a county office of education. A county board of education may
approve a countywide charter only if it finds, in addition to the
other requirements of this section, that the educational services to
be provided by the charter school will offer services to a pupil
population that will benefit from those services and that cannot be
served as well by a charter school that operates in only one school
district in the county. A petition for the establishment of a
countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons
seeking to establish the charter school. The petition may be
submitted to the county board of education for review after either
of the following conditions is met:

(A) The petition is signed by a number of parents or guardians
of pupils residing within the county that is equivalent to at least
one-half of the number of pupils that the charter school estimates
will enroll in the begin insert charter end insert school for its first year of operation and
each of the school districts where the charter school petitioner
proposes to operate a facility has received at least 30 days’ notice
of the petitioner’s intent to operate a begin insert charter end insert school pursuant to
this section.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the begin insert charter end insert school
during its first year of operation and each of the school districts
where the charter school petitioner proposes to operate a facility
has received at least 30 days’ notice of the petitioner’s intent to
operate a begin insert charter end insert school pursuant to this section.

(2) An existing public school may not be converted to a charter
school in accordance with this section.

(3) After receiving approval of its petition, a charter school that
proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those
additional locations at an open, public meeting, held no sooner
than 30 days following notification of the school districts where
the sites will be located. If approved, the location of the approved
sites shall be a material revision of the begin insert charter end insert school’s approved
charter.

(4) A petition shall include a prominent statement indicating
that a signature on the petition means that the parent or guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(b) No later than 60 days after receiving a petition, in accordance
with subdivision (a), the county board of education shall hold a
public hearing on the provisions of the charter, at which time the
county board of education shall begin delete consider end delete begin insert consider: (A) end insert the level
of support for the petition by teachers, parents or guardians, and
the school districts where the charter school petitioner proposes
to place school begin delete facilities. end delete begin insert facilities, (B) a report assessing whether
county office of education staff has the capacity to conduct
oversight of the charter school described in the petition, and (C)
a report of the anticipated financial and educational impact on
the other schools that the governing board of a school district has
oversight obligations for. end insert Following review of the petition begin insert and the
reports end insert and begin insert after end insert the public hearing, the county board of education
shall either grant or deny the charter within 90 days of receipt of
the petition. However, this date may be extended by an additional
30 days if both parties agree to the extension. A county board of
education may impose any additional requirements beyond those
required by this section that it considers necessary for the sound
operation of a countywide charter school. A county board of
education may grant a charter for the operation of a begin insert charter end insert school
under this part only if the begin insert county end insert board begin insert of education end insert is satisfied
that granting the charter is consistent with sound educational
practice and that the charter school has reasonable justification for
why it could not be established by petition to a school district
pursuant to Section 47605. The county board of education shall
deny a petition for the establishment of a charter school if the
begin insert county end insert board begin insert of education end insert finds one or more of the following:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

begin insert

(5) The charter school would have a negative fiscal impact on
a school district. For purposes of this paragraph, the finding that
a charter school would have a negative fiscal impact on a school
district shall only be established, and shall be deemed to be
established, if any of the following conditions are met:

end insert begin insert

(A) The school district has received a negative financial
certification pursuant to Section 42131.

end insert begin insert

(B) The school district has received an emergency
apportionment or loan and is operating under the oversight of a
state-appointed administrator or trustee pursuant to Article 2
(commencing with Section 41320) of, or Article 2.5 (commencing
with Section 41325) of, Chapter 3 of Part 24 of Division 3.

end insert begin insert

(C) The school district, due to declining enrollment of pupils,
is in the process of closing a school that the charter petition has
identified as a proposed schoolsite for the charter school and the
school district has received a qualified financial certification
pursuant to Section 42131 or would receive a qualified financial
certification pursuant to Section 42131 if the charter petition is
approved.

end insert begin delete

(5)

end delete

begin insert (6) end insert  The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) A description of the educational program of the begin insert charter end insert
school, designed, among other things, to identify those pupils
whom the begin insert charter end insert school is attempting to educate, what it means
to be an “educated person” in the 21st century, and how learning
best occurs. The goals identified in that program shall include the
objective of enabling pupils to become self-motivated, competent,
and lifelong learners.

(ii) A description, for the charter school, of annual goals, for
all pupils and for each subgroup of pupils identified pursuant to
Section 52052, to be achieved in the state priorities, as described
in subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school,
and specific annual actions to achieve those goals. A charter
petition may identify additional school priorities, the goals for the
school priorities, and the specific annual actions to achieve those
goals.

(iii) If the proposed charter school will enroll high school pupils,
a description of the manner in which the charter school will inform
parents regarding the transferability of courses to other public high
schools. Courses offered by the charter school that are accredited
by the Western Association of Schools and Colleges may be
considered to be transferable to other public high schools.

(iv) If the proposed charter school will enroll high school pupils,
information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses
approved by the University of California or the California State
University as satisfying their prerequisites for admission may be
considered as meeting college entrance requirements for purposes
of this clause.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the begin insert charter end insert school demonstrate
that they have attained the skills, knowledge, and aptitudes
specified as goals in the begin insert charter end insert school’s educational program.
Pupil outcomes shall include outcomes that address increases in
pupil academic achievement both schoolwide and for all groups
of pupils served by the charter school, as that term is defined in
subparagraph (B) of paragraph (3) of subdivision (a) of Section
47607. The pupil outcomes shall align with the state priorities, as
described in subdivision (d) of Section 52060, that apply for the
grade levels served, or the nature of the program operated, by the
charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The location of each charter school facility that the petitioner
proposes to operate.

(E) The governance structure of the begin insert charter end insert school, including,
but not limited to, the process to be followed by the begin insert charter end insert school
to ensure parental involvement.

(F) The qualifications to be met by individuals to be employed
by the begin insert charter end insert school.

(G) The procedures that the begin insert charter end insert school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the begin insert charter end insert school
furnish begin delete the school end delete begin insert it end insert with a criminal record summary as described
in Section 44237.

(H) The means by which the begin insert charter end insert school will achieve a racial
and ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the begin delete school
district end delete begin insert county board of education end insert to which the charter petition is
submitted.

(I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by
the state board, and the manner in which audit exceptions and
deficiencies shall be resolved.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter schools
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.

(M) A declaration begin insert of end insert whether or not the charter school shall be
deemed the exclusive public school employer of the employees of
the charter school for purposes of the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).

(N) Admission requirements of the charter school, if applicable.

(O) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.

(P) A description of the rights of an employee of the county
office of education, upon leaving the employment of the county
office of education, to be employed by the charter school, and a
description of any rights of return to the county office of education
that an employee may have upon leaving the employ of the charter
school.

(Q) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
begin insert charter end insert school to determine the disposition of all assets and
liabilities of the charter school, including plans for disposing of
any net assets and for the maintenance and transfer of public
records.

begin delete

(6)

end delete

begin insert (7) end insert  Any other basis that the county board of education finds
justifies the denial of the petition.

(c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school’s operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.

(d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605
and any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.

(2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the school’s educational programs.

(e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against begin delete any end delete begin insert a end insert
pupil on the basis of ethnicity, national origin, gender, gender
identity, gender expression, or disability. Except as provided in
paragraph (2), admission to a charter school shall not be determined
according to the place of residence of the pupil, or of his or her
parent or guardian, within this state.

(2) (A) A charter school shall admit all pupils who wish to
attend the begin insert charter end insert school.

(B) If the number of pupils who wish to attend the charter school
exceeds the begin insert charter end insert school’s capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing. Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
county except as provided for in Section 47614.5. Other preferences
may be permitted by the chartering authority on an individual
school basis and only if consistent with the law.

(C) In the event of a drawing, the county board of education
shall make reasonable efforts to accommodate the growth of the
charter school and in no event shall take any action to impede the
charter school from expanding enrollment to meet pupil demand.

(f) The county board of education shall not require begin delete any end delete begin insert an end insert
employee of the county or a school district to be employed in a
charter school.

(g) The county board of education shall not require begin delete any end delete begin insert a end insert pupil
enrolled in a county program to attend a charter school.

(h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the begin insert charter end insert school, including,
but not limited to, the facilities to be used by the begin insert charter end insert school,
the manner in which administrative services of the begin insert charter end insert school
are to be provided, and potential civil liability effects, if any, upon
the begin insert charter end insert school, any school district where the charter school
may operate, and upon the county board of education. The
petitioner or petitioners begin delete shall end delete also begin insert shall end insert be required to provide
financial statements that include a proposed first-year operational
budget, including startup costs, and cashflow and financial
projections for the first three years of operation.

(i) In reviewing petitions for the establishment of charter schools
within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low achieving pursuant
to the standards established by the department under Section 54032,
as it read before July 19, 2006.

(j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent, and begin delete to end delete the state
board.

(k) If a county board of education denies a petition, the petitioner
may not elect to submit the petition for the establishment of the
charter school to the state board.

(l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained
on file at the charter school and shall be subject to periodic
inspection by the chartering authority.

(m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year,
as described in subparagraph (I) of paragraph (5) of subdivision
(b), to the county office of education, the Controller, and the
department by December 15 of each year. This subdivision shall
not apply if the audit of the charter school is encompassed in the
audit of the chartering entity pursuant to Section 41020.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 20110 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

20110.  

begin insert (a) end insert begin insert   end insert The provisions of this part shall apply to contracts
awarded by school districts subject to Part 21 (commencing with
Section 35000) of Division 3 of Title 2 of the Education Code.

begin insert

(b) The provisions of this part shall also apply to contracts
awarded by a charter school established pursuant to Part 26.8
(commencing with Section 47600) of Division 4 of Title 2 of the
Education Code.

end insert begin insert

(c) (1) For purposes of this part, a charter school shall be
deemed a school district and the governing body of a charter
school shall be deemed the governing board of a school district.

end insert begin insert

(2) For purposes of this part, a reference to a school district or
the governing board of a school district shall be deemed to also
reference a charter school or the governing body of a charter
school, as applicable.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin delete

SECTION 1.  

Section 41010 of the Education Code is amended
to read:

41010.  

The accounting system used to record the financial
affairs of a school district shall be in accordance with the
definitions, instructions, and procedures published in the California
School Accounting Manual as approved by the state board and
furnished by the Superintendent. No accounting manual approved
shall expressly or by implication affect the content of any
educational program or objective, except as otherwise specifically
provided for by this code. The Legislature hereby finds that such
content shall be best determined by those involved in the
administration of educational programs, including governing boards
of school districts, local administrators, teachers, pupils, and
parents.

end delete