BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 739 (Pavley) - Charter schools: sited outside boundaries: report: prohibition ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 6, 2015 |Policy Vote: ED. 7 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 4, 2015 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: This bill prohibits a school district from authorizing a new charter school to locate outside of its jurisdiction if it is assigned a negative certification. Additionally, this bill authorizes the Superintendent of Public Instruction (Superintendent) to perform a study and make recommendations on the number of charter schools that are sited outside the boundaries of their chartering school districts. Fiscal Impact: The California Department of Education (CDE) indicates that this bill creates one-time costs of about $276,000 General Fund for two positions to conduct the study authorized by this bill. In addition, there may be additional cost pressures to implement any recommendations proposed by CDE. The prohibition of a school district assigned a negative SB 739 (Pavley) Page 1 of ? certification to authorize new charter schools outside of the school district's jurisdiction, is not expected to result in a significant increase in state costs. Background: Under existing law, the Charter Schools Act of 1992 provides for the establishment of charter schools in California for the purpose, among other things, to improve student learning and expand learning experiences for pupils who are identified as academically low achieving. Charter schools are public schools that provide instruction in any combination of grades kindergarten through grade 12. Except where specifically noted otherwise, California law exempts charter schools from many of the statutes and regulations that apply to schools and school districts. A charter school may be authorized by a school district, a county board of education, or the State Board of Education, as specified. A chartering authority may charge for the actual costs of supervisorial oversight of a charter school, not to exceed a certain amount, known as an "oversight fee." These fees support functions such as assessing the fiscal condition of the charter school. Current law provides that charter schools unable to locate within the jurisdiction of the authorizing school district, may establish one site outside the boundaries of the school district, but within the same county, if: (1) the charter school has attempted to locate a single site to house the entire program but it is unavailable in the area the charter school chooses to locate and (2) the site is needed for temporary use during a construction project. In addition, the school district in which the charter school proposes to operate must be notified in advance of the charter petition approval and the county superintendent of schools and the Superintendent must be notified of the location of the charter school before it begins operations. Local education agencies (LEAs) are required to file two reports during the fiscal year (interim reports) on the status of the LEA's fiscal health. The interim reports must include a certification of whether or not the LEA is able to meet its financial obligations. A negative certification is assigned when a district will be unable to meet its financial obligations for SB 739 (Pavley) Page 2 of ? the remainder of the current year or for the subsequent fiscal year. According to the author's office, this bill is intended to remove potential incentives for a school district under financial distress to authorize charter schools as a means to generate revenue through oversight fees. Proposed Law: This bill would prohibit a school district from authorizing new charter schools to locate outside of its jurisdiction if it is assigned a negative certification. This bill would also authorize the Superintendent to study the number of charter schools located outside the boundaries of the chartering school district and report to the Legislature on its findings by December 31, 2016. This bill authorizes the Superintendent to make findings on the frequency and location of charters located outside of the boundaries of the chartering school district; the reason for the charter schools' locations; and whether the school district where the charter school is located was notified in advance of the charter petition approval. Finally, the bill allows the Superintendent to make recommendations on the authority of state or local entities to enforce charter law. Related Legislation:1. SB 1263 (Pavley, 2014) would have, among other things, authorized a charter school to locate outside the jurisdiction of the chartering school district with written approval from the host school district where it intends to locate. This bill was eventually vetoed by the Governor citing concerns that it could force existing charter schools to relocate. The Governor also indicated in the veto message that he has assembled a team to examine the issues that the bill was trying to address and the team will come back with solutions that minimize disruption to students and parents. Proposed Author Amendments: The author has proposed an amendment to delete Section 1 of the bill to reduce potential costs. SB 739 (Pavley) Page 3 of ?