BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 597


                                                                    Page  1





          SENATE THIRD READING


          SB  
          597 (Huff)


          As Amended  May 26, 2015


          Majority vote


          SENATE VOTE:  36-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Education       |6-0  |O'Donnell, Chávez,    |                    |
          |                |     |Kim, McCarty,         |                    |
          |                |     |Santiago, Thurmond    |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonta,         |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Daly, Eggman,         |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Holden, Jones, Quirk, |                    |
          |                |     |Rendon, Wagner,       |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |








                                                                     SB 597


                                                                    Page  2





          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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:   
            a) the number of requests granted, denied, or withdrawn as  
            well as the reasons for the denials; b) the number of pupils  
            transferred out of the district;  c) the number of pupils  
            transferred into the district; d) the race, ethnicity, gender,  
            socioeconomic status and the district of residence for each  
            student in b) and c) above; and, e) the number of pupils in b)  
            and c) above, who are English Learners or individuals with  
            exceptional needs.  The LAO 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 Sections 48300  
            to 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  








                                                                     SB 597


                                                                    Page  3





            of military personnel.  (Education Code Section 48306)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, 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).  Unknown, likely minor costs for  
          the LAO to complete reporting requirements.  


          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. 


          SB 80 (Budget and Fiscal Review Committee), 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  








                                                                     SB 597


                                                                    Page  4





          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 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:   
          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  








                                                                     SB 597


                                                                    Page  5





          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  
          one-third 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  
          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.  









                                                                     SB 597


                                                                    Page  6






           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.           




           Analysis Prepared by:                                             
                          Chelsea Kelley / ED. / (916) 319-2087  FN:  
          0001463