BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 597  


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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


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


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill 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.  








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          FISCAL EFFECT:


          1)No significant state costs associated with the extension of  
            the DOC program.  Local fiscal impact will vary depending on  
            the type of district, the number of students that transfer,  
            and whether or not the student qualifies for supplemental or  
            concentration grant funding under the Local Control Funding  
            Formula (LCFF).  

          2)Unknown, likely minor costs for the Legislative Analyst's  
            Office to complete reporting requirements.  

          COMMENTS:


          1)Background. The DOC law authorizes 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.  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.  



            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 DOC to admit  
            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 may also prevent a  
            transfer under this law if the transfer would have a negative  








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            impact on a court-ordered or voluntary desegregation plan or  
            the racial and ethnic balance of the district.

            The law also provides DOC basic aid districts 70% of the base  
            funding that the pupil would otherwise generate in 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.

          2)Purpose. Under current law, districts establish themselves as  
            a DOC by adopting a local school board resolution.  The DOC  
            program has faced heavy opposition in the past from districts  
            in declining enrollment that have seen a loss of students to a  
            neighboring DOC district, resulting in a loss of revenue and  
            shifting student demographics.
            


            In response to concerns over the program, in 2008 the state  
            began to require DOCs to report the numbers of transfers they  
            accept or deny.  Despite this requirement, data has been  
            inconsistently reported.  Additionally, a report due from the  
            California Department of Education on the effectiveness of the  
            interdistrict transfer program was not completed due to lack  
            of funding.  





            Another 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  








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            Legislature will have one more year to gather information  
            before the program's sunset date. 





          3)Previous legislation: 

             a)   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.  

             b)   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.   
           
              c)   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.

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








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               continue to receive funds provided through 2003-04 until a  
               new multiplier is calculated.

             e)   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.
          


          Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081