BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                        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








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           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,  








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            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  








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          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  








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          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  








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               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


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