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
          
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          |Version: April 6, 2015          |Policy Vote: ED. 7 - 1          |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 4, 2015       |Consultant: Jillian Kissee      |
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          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  







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            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  








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          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.








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