BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 597


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          Date of Hearing:   July 1, 2015


                           ASSEMBLY COMMITTEE ON EDUCATION


                              Patrick O'Donnell, Chair


          SB  
          597 (Huff) - As Amended May 26, 2015


          SENATE VOTE:  36-0


          SUBJECT:  Pupil attendance: interdistrict transfers.


          SUMMARY:  Provides a one year extension of the sunset date for  
          the District of Choice (DOC) Program and requires the  
          Legislative Analyst Office (LAO) to complete their evaluation of  
          the program by January 31, 2016.  


          EXISTING LAW:   


          1)Under the DOC authorization, established by AB 19  
            (Quackenbush), Chapter 160, Statutes of 1993, a school board  
            may declare the district to be a DOC willing to accept a  
            specified number of inter-district transfers.  A DOC is not  
            required to admit pupils but it is required to select those  
            pupils that it does elect to admit through a random process  
            that does not choose pupils based upon academic or athletic  
            talent.  Either the district of residence or DOC may prevent a  
            transfer under this law if the transfer would exacerbate  
            racial segregation.  Each DOC is required to keep records of:  
            1) The number of requests granted, denied, or withdrawn as  








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            well as the reasons for the denials; 2) The number of pupils  
            transferred out of the district;  3) The number of pupils  
            transferred into the district; 4) The race, ethnicity, gender,  
            socioeconomic status and the district of residence for each  
            student in #2 and #3 above; and, 5) The number of pupils in #2  
            and #3 above who are English Learners or individuals with  
            exceptional needs. The Legislative Analyst is required to make  
            specified information available to the Governor and the  
            Legislature annually and to complete an evaluation by November  
            1, 2014.  The DOC program becomes inoperative on July 1, 2016  
            and repealed on January 1, 2017.  (Education Code Section  
            48300-48316)

          2)Requires a DOC to give priority for attendance to siblings of  
            children already in attendance in that district, and  
            authorizes a DOC to give priority for attendance to children  
            of military personnel.  (Education Code 48306)

          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  Under the DOC law, the governing board of any school  
          district may declare the district to be a DOC willing to accept  
          a specified number of inter-district transfers.  A DOC is not  
          required to admit pupils but is required to select those pupils  
          that it does elect to admit through a random process and they  
          are prohibited from choosing pupils based upon academic or  
          athletic talent.  


          DOC data is difficult to track.  Under current law, districts  
          establish themselves as a DOC by adopting a local school board  
          resolution.  Required data collection on DOCs and the numbers of  
          transfers they accept or deny began in 2008 and this data is  
          required to be reported to the Superintendent of Public  
          Instruction (SPI), the county board of education and the  
          Department of Finance annually. 









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          SB 80 (Committee on Budget and Fiscal Review), Chapter 174,  
          Statutes of 2007, required the California Department of  
          Education (CDE) to report to the Legislature by November 30,  
          2008 on the effectiveness of the interdistrict transfer program  
          using data provided by school districts to the SPI on the  
          disposition of all interdistrict transfer requests.  CDE did not  
          provide the complete report due to lack of funding.  In lieu of  
          the report, CDE conducted a survey of 100 schools that receive  
          the most inter-district transfers in the state and found only  
          three districts that have elected to declare themselves a DOC.   
          It is important to note the survey was not a complete assessment  
          of all DOCs.  The CDE report recommends, however, "Given that  
          only 3.9% of the responding districts indicated an active  
          participation in the DOC program, it seems to be a small program  
          with very limited impact.  The CDE sees no significant negative  
          consequences to the program's lapse as scheduled for July 1,  
          2009."

          Interestingly, in a report by the CDE in 2003, the only solid  
          indicator of a district being a DOC was if the district was a  
          basic aid district that received state apportionment for its  
          transfer students.  CDE had to use district self-identification  
          and a survey done by the California Association of School  
          Business Officials to determine the total number or DOCs.  As of  
          2002, CDE was able to identify 18 small, mostly rural districts  
          as DOCs.  One-half of these districts were basic aid districts.   
          In 2007, it was reported that there were 11 basic aid districts  
          that were DOCs, according to CDE.

          An evaluation was due to the Legislature by the Legislative  
          Analyst's Office (LAO) on November 1, 2014. Due to lack of data  
          sharing between various agencies, the evaluation did not get  
          completed.  The intent of this bill is to extend the sunset date  
          of the DOC program by one year, so that the LAO's evaluation can  
          be completed by January 31, 2016 and the Legislature will have  
          one more year to gather information before the program's sunset  
          date. 

          Historical Context of Racial Inequities in the DOC program:   








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          Rowland Unified School District borders Walnut Valley Unified  
          School District, which is a DOC.  As of 2009, 1,649 students had  
          transferred out of Rowland Unified and transferred into Walnut  
          Valley Unified under the DOC law.  According to CDE data, the  
          overall demographic characteristics of Rowland Unified in  
          2008-09 included 60.9% Hispanic students and 20.9% Asian  
          students.  Rowland Unified School District calculated, based on  
          727 students of the 1,649 total students who had transferred out  
          of the district under the DOC law in 2009, that Walnut Valley  
          had enrolled 52% Asian students and only 20% Hispanic students  
          from Rowland Unified.  One could argue that the percentages of  
          students, by ethnic background, who transferred out of Rowland  
          Unified do not appear to be random since they do not reflect the  
          demographic characteristics of the district overall.  In fact,  
          the percentage of Asian students who transferred out of Rowland  
          Unified was more than twice the total percentage of Asian  
          students in the entire district.  Conversely, the percentage of  
          Hispanic students who transferred out of Rowland Unified was 1/3  
          of the total percentage of Hispanic students in the entire  
          district.  In 2006-07, Rowland Unified reached the maximum cap  
          of 10%, and the district utilized the authority granted in  
          statute to stop any future students from transferring out of  
          their district under the DOC law, due to concerns that Walnut  
          Valley's DOC program had negatively impacted the demographic  
          profile of Rowland Unified.  This type of example demonstrates  
          the importance of quality evaluation data about the DOC program.  


          Differences between the DOC program and other interdistrict  
          transfer options.  Unlike the main interdistrict transfer law,  
          the DOC law does not require agreement between the district of  
          residence and the receiving district in order for the receiving  
          district (DOC) to admit interdistrict transfers.  The district  
          of residence has little say in the transfer process, except,  
          districts with 50,000 or less ADA may limit the maximum number  
          of transfers each year to 3% of their ADA and may limit  
          transfers for the duration of the program to 10% of their ADA.   
          Districts with more than 50,000 pupils in attendance may refuse  
          to transfer more than 1% of their ADA.  A district of residence  








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          may also prevent a transfer under this law if the transfer would  
          have a negative impact on a court-ordered or voluntary  
          desegregation plan or the racial and ethnic balance of the  
          district.  
           
          Other differences include:  A DOC that is also a basic aid  
          district is apportioned 70% of the amount the state revenue  
          limit for ADA that otherwise would have gone to the district of  
          residence (the remaining 30% is a savings in revenue for the  
          state).  Transfer priority is given to the siblings of transfer  
          students already attending school in the DOC.  Students with  
          special needs are admitted despite additional incurred costs  
          unless the transfer of those students would require the creation  
          of a new program.

          Previous legislation:  SB 680 (Romero & Huff), Chapter 198,  
          Statutes of 2009, extended the sunset and repeal date for the  
          School District of Choice (DOC) program from July 1, 2009 to  
          July 1, 2016 and January 1, 2010 to January 1, 2017,  
          respectively; repealed the prohibition on new districts electing  
          to become DOCs; and, required the Legislative Analyst (LAO) to  
          complete an evaluation of the DOC program and report to the  
          Legislature by November 1, 2014.  

          AB 1407 (Huffman) from 2009, was held on the Assembly  
          Appropriations Committee Suspense file, would have extended the  
          sunset and repeal dates for the DOC program for 5 years and  
          required a census report on DOC by CDE by November 2010.   
           
           AB 270 (Huff) from 2007, extended the authority for DOC  
          inter-district transfers from July 1, 2007 to July 1, 2009,  
          prohibited additional districts from becoming DOCs, and required  
          school districts (electing to accept transfers) to maintain  
          records on the number of requests it receives and annually  
          report the number of requests it receives to the SPI.  The  
          language in this bill was incorporated into SB 80 (Committee on  
          Budget and Fiscal Review), Chapter 174, Statutes of 2007.

          AB 97 (Nation), Chapter 21, Statutes of 2004, extended the  








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          sunset date for one year for the DOC authorization and required  
          the SPI to continue the calculation for the Special Disabilities  
          Adjustment using the current incidence multiplier to allow  
          special education local plan areas to continue to receive funds  
          provided through 2003-04 until a new multiplier is calculated.

          AB 1993 (Quackenbush), Chapter 160, Statutes of 1993,  
          established school DOC and allowed the governing board of any  
          school district to declare the district to be a DOC willing to  
          accept a specified number of inter-district transfers.
                     
           REGISTERED SUPPORT / OPPOSITION:




          Support


          Alexander Valley Union School District


          College School District


          Columbine School District


          EdVoice


          Elk Hills School District


          Glendora Unified School District


          Inyo County Superintendent of Schools









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          Pine Ridge Elementary School District


          Riverside Unified School District


          Round Valley School STEP Foundation


          Small School Districts' Association




          Opposition


          None on file.




          Analysis Prepared by:Chelsea Kelley / ED. / (916)  
          319-2087