BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 739| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- VETO Bill No: SB 739 Author: Pavley (D) Amended: 8/25/16 Vote: 21 SENATE EDUCATION COMMITTEE: 7-1, 4/15/15 AYES: Liu, Huff, Block, Hancock, Leyva, Mendoza, Pan NOES: Vidak SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/4/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Bates, Nielsen SENATE FLOOR: 23-11, 5/11/15 AYES: Allen, Beall, Block, Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski, Wolk NOES: Bates, Berryhill, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, Vidak NO VOTE RECORDED: Anderson, Cannella, De León, Fuller, Liu SENATE FLOOR: 25-13, 8/31/16 AYES: Allen, Beall, Block, De León, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski, Wolk NOES: Anderson, Bates, Berryhill, Cannella, Fuller, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Stone, Vidak NO VOTE RECORDED: Galgiani ASSEMBLY FLOOR: 51-26, 8/29/16 - See last page for vote SUBJECT: Charter schools: sited outside boundaries: prohibition SB 739 Page 2 SOURCE: Castaic Union School District Newhall School District Saugus Union School District Sulphur Springs School District William S. Hart Union High School District DIGEST: This bill prohibits a school district from authorizing a new charter school to locate outside of its jurisdiction if it is assigned a negative budget certification. ANALYSIS: Existing law: 1)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, by a school district, a county board of education, or the State Board of Education. 2)Exempts charter schools from many of the statutes and regulations that apply to schools and school districts, except where specifically noted otherwise. 3)Requires that charter schools: a) Are nonsectarian in their programs, admission policies, employment practices, and all other operations; b) Not charge tuition; and c) Not discriminate against any pupil on the basis of the characteristics, as specified. 4)Provides that admission to a charter school may not be determined according to the place of residence of the pupil, SB 739 Page 3 or of his or her parent or legal guardian, within the state, except that an existing public school converting to a charter school must adopt and maintain a policy giving admissions preference to pupils who reside within the former attendance area of that public school. 5)Authorizes a charter school that is unable to locate within the jurisdiction of the authorizing school district to establish one site outside the boundaries of the school district, but within the same county, if the following conditions are satisfied: a) The school district in which the charter school proposes to operate is notified in advance of the charter petition approval; b) The county superintendent of schools and the Superintendent of Public Instruction are notified of the location of the charter school before it commences operations; and either of the following circumstances exists: i) The charter school has attempted to locate a single site or facility to house the entire program, but a site or facility is unavailable in the area in which the charter school chooses to locate. ii) The site is needed for temporary use during a construction or expansion project. This bill prohibits the governing board of a school district from authorizing a new charter school to locate outside the boundaries of the school district if the school district is assigned a negative certification, as specified. Background According to the California Department of Education, there were over 1,100 charter schools with an enrollment of approximately 514,000 pupils operating in the state in 2013-14. Parents, teachers, or community members may initiate a charter petition, which is typically presented to and approved by a local school district governing board. The law also allows, under certain SB 739 Page 4 circumstances, for county boards of education and the State Board of Education to authorize charter schools. The specific goals for a charter school are detailed in the agreement between the authorizing entity and the charter developer. The charter petition is also required to include a description of the educational program of the school and several other policies and procedures relating to employees, pupils, and finances. Current law establishes procedures for the renewal of charter schools, not to exceed five years. Charter schools are exempt from most laws governing school districts and schools in order to allow the charter school the flexibility to innovate and be responsive to the educational needs of the student population served. Charter schools are required however, to have credentialed teachers in core and college preparatory courses, meet statewide standards, and consult with parents, guardians, and teachers regarding the school's programs. Comments Need for the bill. Existing law allows a charter school to locate a facility in a school district other than the one it is authorized by under a very limited number of circumstances. However, according to the author's office, when this occurs, school districts and charter schools often have differing interpretations of state law, difficulty in ensuring accountability, and lacking clear lines of communication. The author's office indicates there have been some high-profile cases in which cash-strapped school districts have authorized charter schools outside of the district in order to generate revenue through "oversight fees." While these situations have brought more attention to this issue, there is limited information regarding the number of charter schools located outside the boundaries of their authorizing district. This bill seeks to shed some light on the consequences, whether intended or unintended, of charter schools locating outside the boundaries of their authorizing school districts. FISCAL EFFECT: Appropriation: No Fiscal SB 739 Page 5 Com.:YesLocal: No According to the Assembly Appropriations Committee, there would likely be minor, if any, state costs associated prohibiting school districts from authorizing a charter school outside district boundaries. There are currently two school districts with a negative budget certification for the 2015-16 fiscal year that could potentially be impacted by this bill. The districts affected by this bill will change annually depending on individual district financial health. SUPPORT: (Verified10/12/16) Castaic Union School District (co-source) Newhall School District (co-source) Saugus Union School District (co-source) Sulphur Springs School District (co-source) William S. Hart Union High School District (co-source) American Federation of State, County and Municipal Employees, AFL-CIO Association of California School Administrators California School Employees Association, AFL-CIO California Teachers Association San Diego Unified School District OPPOSITION: (Verified10/12/16) California Charter Schools Association Charter Schools Development Center GOVERNOR'S VETO MESSAGE: I am returning Senate Bill 739 without my signature. This bill would prohibit a school district that has a SB 739 Page 6 negative budget certification from authorizing a charter school to operate outside of their attendance boundaries. This bill attempts to address an issue, currently being reviewed by the State Auditor, whereby school districts authorize multiple charter schools outside of district boundaries to collect oversite fees. Let's review the audit when it's released next spring to better determine the scope of the issue and what, if any, policy changes are necessary. ASSEMBLY FLOOR: 51-26, 8/29/16 AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lopez, Low, Maienschein, McCarty, Medina, Mullin, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon NOES: Achadjian, Travis Allen, Baker, Bigelow, Chang, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey, Levine, Linder, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk NO VOTE RECORDED: Brough, Daly, Nazarian Prepared by:Lenin DelCastillo / ED. / (916) 651-4105 10/17/16 13:53:44 **** END ****