BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 1432             
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          |Author:    |Huff                                                 |
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          |Version:   |February 19, 2016                      Hearing Date: |
          |           |   April 6, 2016                                     |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Olgalilia Ramirez                                    |
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          Subject:  School attendance:  pupil transfer options:  school  
          districts of choice


            SUMMARY
          
          This bill deletes the sunset and repeal dates for "school  
          district of choice," program, repeals the cumulative 10% cap for  
          students transferring out of specified school districts of  
          residence, reassigns certain reporting requirements to the  
          Superintendent of Public Instruction (SPI), and expands various  
          oversight responsibilities to county superintendents, among  
          other things.  

            BACKGROUND
          
          Existing law:

             1)   Requires students to attend the public full-time day  
               school or continuation school or classes in which the  
               residency of either the parent or legal guardian is  
               located.  (Education Code § 48200)

             2)   Authorizes the governing board of a school board to  
               declare themselves a school district of choice willing to  
               accept a specified number of inter-district transfers. As a  
               condition of participating in the program, either the  
               district of residence or district of choice may prevent a  
               transfer if the transfer would exacerbate racial  
               segregation.  (EC § 48300, et seq.)







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             3)   Requires a school district of choice to select students  
               through a random and unbiased process that prohibits  
               enrollment based upon academic or athletic talent.  It is  
               incumbent upon the school district of choice to ensure that  
               the auditor who conducts its annual financial audit also  
               reviews compliance with the specified selection  
               requirements.  (EC § 48301)

             4)   Authorizes a school district of residence with an  
               average daily attendance (ADA) of less than 50,000 to cap  
               outbound transfers each year to 3% of its ADA for that year  
               and to cap the maximum number at 10% of its ADA for the  
               duration of the program. A school district of residence is  
               also authorized to limit transfers if it has a negative or  
               qualified status on the most recent budget certification or  
               if a determination is made by the county superintendent  
               determines that the school district will not meet standards  
               for fiscal stability due to the impact of additional  
               transfers, as specified.  (EC § 48307)


             5)   Requires each school district of choice 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, as specified; and 

                  c)        The number of pupils transferred into the  
                    district, as specified. 
                    (EC § 48301)

             6)   Further requires, school districts of choice to annually  
               report this information to neighboring school districts,  
               their county office of education, the Superintendent of  
               Public Instruction (SPI) and Department of Finance (DOF),  
               as specified.  The DOF is required to make the information  
               available to the Legislative Analyst. The Legislative  
               Analyst is required to conduct a comprehensive evaluation  
               of the district of choice program, as specified, and submit  
               the evaluation, along with recommendations, to the  








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               appropriate legislative education policy committees, and  
               the Governor, by January 31, 2016.  This section is  
               scheduled to sunset July 1, 2017.  (EC § 48300, et seq.)

            ANALYSIS
          
          This bill deletes the sunset and repeal dates for "school  
          district of choice," program; repeals the cumulative 10% cap for  
          students transferring out of specified school districts of  
          residence; reassigns certain reporting requirements to the SPI;  
          and expands various oversight responsibilities to county  
          superintendents. Specifically, it:

          1)   Deletes the July 1, 2017 repeal of the district of choice  
               program thereby extending the operation of the program  
               indefinitely. 

          2)   Requires, instead of authorizes, the governing board of the  
               school district of choice to:

                    a)             Notify parents in writing regarding the  
                    status of the application, no later than February 15  
                    of the school year preceding the request for transfer,  
                    instead of 90 days after the receipt of an  
                    application. 

                    b)             If an application is rejected, include  
                    the specific reason for the rejection of an  
                    application, as provided.

                    c)             Notify the district of residence if an  
                    application is accepted or provisionally accepted no  
                    later than March 1 of the school year proceeding the  
                    school year for which the student is requesting  
                    transfer. 

                    d)             Ensure, by resolution, that students  
                    accepted for transfer are selected through a random,  
                    unbiased process that prohibits an evaluation of  
                    whether or not a student should be enrolled based upon  
                    academic or athletic performance. 

                    e)             By resolution, determine and adopt the  
                    number of transfers it is willing to accept.








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          3)   Modifies provisions related to the audit by striking the  
               requirement for districts of choice to request a compliance  
               review of specified components of the district of choice  
               program and clarifies that this compliance review be  
               incorporated into the district's annual audit already  
               required by current law. 

          4)   Requires, instead of authorizes, all school districts to  
               make information regarding their schools, programs,  
               policies, and procedures available to any interested person  
               upon request and adds the requirement for school districts  
               to make public announcements during the enrollment period  
               with that information.
           
          5)   Requires a school district of choice to post application  
               information on its Internet Web site and include at a  
               minimum all of the following:

               a)        Any applicable form and timeline for transfer.

               b)        An explanation of the selection process.

          6)   Authorizes only a school district of residence, instead of  
               authorizing both districts of residence and districts of  
               choice, to prohibit or limit transfers when the governing  
               board determines that the transfer would negatively impact:

               a)         A court-ordered or voluntary desegregation plan.

               b)        The racial and ethnic balance of the school  
               district of residence.

          7)   Deletes the authorization for districts with an average  
               daily attendance (ADA) of less than 50,000 to cap the  
               maximum number of students transferring out at 10% based on  
               ADA for the duration of the program. 

          8)   Modifies the authorization provided to school districts of  
               residence for implementing existing transfer caps by  
               establishing new procedures that:

                    a)             Require districts of choice to notify  
                    districts of residence once a certain percentage of  








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                    transfers are accepted into that district of choice,  
                    as specified. 

               b)        Require action by the governing board, as  
               specified. 

          9)   Modifies the requirement, for which a student may continue  
               to attend a school district of choice, regardless of  
               transfer restrictions, to clarify that the student may  
               continue to attend if he or she is attending or has  
               received a notice of acceptance before action is taken by a  
               governing board to restrict further transfers.

          10)  Authorizes county superintendents to:

                    a)             Accept complaints from school districts  
                    and appeals from parents of students who are denied  
                    transfer. 

                    b)             Make determinations on those complaints  
                    and appeals based only on whether certain provisions  
                    of existing law related to the District of Choice  
                    program were applied accurately.  

          11)  Requires the Superintendent of Public Instruction (SPI) to  
               do all of the following:

                    a)             Maintain and update a list of the  
                    school districts of choice in the state, as specified.  


                    b)             Collect certain information from each  
                    school district of choice and ensure information is  
                    provided in a consistent format, as described.

                    c)             Post all of the following information  
                    on the California Department of Education's (CDE)  
                    Internet Web site:

                    i)             A list of school districts of choice. 

                    ii)            A plan for collecting information, as  
                  specified. 









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                           iii)    A single list of all school choice  
                         programs, including but not limited to, school  
                         district of choice. 

                    d)             Report by July 1, 2017, a plan for  
                    collecting data, to the education policy committees of  
                    the Legislature, the Department of Finance (DOF), and  
                    the Legislative Analyst's Office (LAO). 

                    e)             Annually make specified information  
                    regarding districts of choice transfers available to  
                    the Governor and appropriate fiscal and policy  
                    committees of the Legislature, instead of the LAO. 

          12)  Authorizes the SPI to collect specified information  
               reported by the district of choice through the California  
               Longitudinal Pupil Achievement Data System or another  
               manner that minimizes the administrative burden. 

          13)  Deletes the requirement for the LAO to conduct a  
               comprehensive evaluation of the district of choice program.  


          14)  Removes the requirement for the DOF to report specified  
               information to the LAO. 
           
          15)  Recast certain provisions and makes numerous  
               non-substantive changes.

          16)  Establishes if the Commission on State Mandates determines  
               that this act contains costs mandated by the state, the  
               state will reimburse applicable entities. 

          STAFF COMMENTS
          
          1)   Need for the bill.  Established in 1993, the District of  
               Choice program is scheduled to sunset on July 1, 2017.  
               There are approximately 10,000 students served by 47  
               districts of choice.  According to the author, allowing the  
               program to sunset would leave transfer students unprotected  
               and their ability to remain in their district of choice  
               could be jeopardized. The author asserts, many school  
               districts enroll a significant number of students from  
               outside of their district boundaries through the District  








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               of Choice program.  As a result, ending the program could  
               cause a decline in enrollment for several small school  
               districts. This bill makes the District of Choice program  
               permanent and seeks to incorporate recommendations made by  
               Legislative Analyst Office (LAO) in its evaluation of the  
               program.  
               
          2)   Program evaluation.  Existing law requires the LAO to  
               submit a comprehensive report and make recommendations  
               regarding the extension of the District of Choice program,  
               by January 31, 2016. The report, "Evaluation of the School  
               District of Choice Program," was released on January 27,  
               2016, and highlighted several points: transfer students  
               have varied by demographic backgrounds (i.e. race/ethnic  
               and income); the program provides transfer students with  
               additional educational options; almost all students  
               transfer to districts with higher test scores and;  
               districts of residence often respond by improving  
               instructional offerings. 

          However, the report also highlights: program oversight has been  
          limited by a lack of data and flaws in the audit procedure and;  
          participation in the program is relatively low (5% of all school  
          districts and 0.2% of students statewide).

          3)   LAO recommendations.  This report made several  
               recommendations all of which are related to provisions of  
               this bill. Those recommendations include: 

               a)        Reauthorize program for a minimum of five years.  
                    The District of Choice program has a long legislative  
                    history as it has been reauthorized five times since  
                    1993. In 2015, SB 527 (Huff Chapter 421, Statutes of  
                    2015) extended the life of the District of Choice  
                    program for one year. This extension was needed as  
                    delays in the data collection process stalled the  
                    District of Choice program evaluation, along with  
                    recommendations for its extension, required by SB 680  
                    (Romero and Huff, Chapter 198, Statute of 2009). 

                    In addition to the records mentioned in the background  
                    of this analysis, existing law required the evaluation  
                    to incorporate the following information; the number  
                    and characteristics of pupils who use the school  








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                    district of choice option, the enrollment of school  
                    districts of residence and school districts of choice  
                    and the fiscal health of school districts of residence  
                    and school districts of choice, as specified. The 2009  
                    statute required the evaluation to be completed and  
                    submitted by November 1, 2014. However, although a  
                    one-year extension was provided, minimal information  
                    was collected from the letter disseminated from the  
                    California Department of Education (CDE) to all school  
                    districts that requesting districts of choice to  
                    self-identify and provide data required by existing  
                    law.

                    This bill makes the district of choice program  
                    permanent. The ability to provide additional  
                    educational options for students and improve district  
                    programs are two reasons for the recommendation of  
                    reauthorization. However, the report also provides  
                    that a five-year extension would allow for the  
                    collection of better data and the assessment of the  
                    effects of the other recommendations. For this reason,  
                    staff recommends the bill be amended to extend the  
                    program sunset and repeal dates by five years.

                    Staff further recommends the bill be amended to  
                    reinstate provisions related to the comprehensive  
                    evaluation of the district of choice program pursuant  
                    to section 48316 of the education code and extend  
                    completion and submission date by five years.

               b)        Assign the California Department of Education  
                    (CDE) specific administrative responsibilities,  
                    including to maintain a list of districts of choice,  
                    ensuring all districts submit annual reports and other  
                    efforts that would help the legislature monitor the  
                    program and assist families learn about the program.  
                    This bill clarifies that information collected by  
                    districts of choice must be reported only to the  
                    Superintendent of Public Instruction (SPI) annually.  
                    In turn the SPI is responsible for ensuring  
                    information is reported to them and make certain  
                    information available to the legislature, Governor and  
                    on its website.  Existing law requires districts to  
                    report to the Department of Finance (DOF) and SPI  








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                    which created confusion among districts and state  
                    agencies.

                    This bill also requires the SPI to create a plan for  
                    the collection of data and make that plan available to  
                    the DOF, the appropriate fiscal and policy committees  
                    of the legislature and the Legislative Analyst's  
                    Office.  For consistency purposes and to streamline  
                    the reporting process staff recommends the bill be  
                    amended to require both the plan pursuant to  
                    subsection 48313(d)(2) and specified information  
                    pursuant to subsection 48313(e) be reported to the  
                    same entities (i.e. appropriate fiscal and policy  
                    committees of the Legislature, Governor and the  
                    Legislative Analyst's Office). 

               c)        Implement a new oversight mechanism that replaces  
                    the existing audit requirement with a new system of  
                    oversight administration by county offices of  
                    education.  This bill modifies the audit by allowing  
                    the specified compliance review to be a regular  
                    component of the district's annual audit process. This  
                    bill adds language to authorize parents and districts  
                    to submit complaints to the specified county  
                    superintendent.  After a complaint is received the  
                    superintendent may make a determination based only on  
                    provisions in existing law related to the district of  
                    choice program. This bill is silent with regard to any  
                    repercussion should a violation occur. 

               d)        Improve local communication by requiring  
                    districts of choice to provide nearby districts of  
                    residence with timely notification of the students  
                    accepted through the program. This bill establishes  
                    new notification procedures for school districts  
                    regarding its schools' programs and policies and  
                    requires certain information to be available upon  
                    request and on its website.

               e)        Repeal the 10% cumulative cap. Repeal the 10%  
                    cumulative cap. As described in the background of this  
                    analysis, current law authorizes a school district of  
                    residence with an ADA of less than 50,000 to cap the  
                    maximum number of outbound transfers at 3 % of ADA per  








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                    year and/or 10% of its ADA for the duration of the  
                    program.  This "cumulative" cap results from a 2011  
                    appellate court ruling that the cap is equal to 10  
                    percent of a district's average ADA over the life of  
                    the program, i.e every student who has participated in  
                    the program counts toward the cap, even if that  
                    student has graduated or left the program. The LAO  
                    report notes that absent the repeal of this cap, the  
                    program becomes unavailable to certain districts and  
                    that districts of residence could still prohibit  
                    transfers that have a negative impact on desegregation  
                    efforts or if it is in severe fiscal distress.  Staff  
                    notes that a school district of residence would need  
                    to approach dire financial conditions in order to  
                    impose such a cap.  For this reason staff recommends  
                    that the bill be amended to, reinstate the 10% cap,  
                    but authorize a district of choice to enroll  
                    additional students within the cap as current program  
                    participants leave or graduate.

          4)   Related and prior legislation. 

               SB 597 (Huff, Chapter 421, Statutes of 2015) extended, for  
               one year, the sunset and repeal dates of statute that  
               allows the governing board of a school district to permit  
               the enrollment of pupils who reside in another district by  
               declaring to be a District of Choice (DOC).

               SB 680 (Romero and Huff, Chapter 198, Statute of 2009)  
               extended the inoperative and repeal dates for which school  
               districts are permitted to enroll pupils who reside in  
               another school district by declaring to be a "school  
               district of choice," and repealed the prohibition on new  
               districts electing to become a DOC. 

               AB 1407 (Huff, 2009) would have extended the sunset and  
               repeal dates for the DOC programs for 5 years and required  
               a census report on DOC by California Department of  
               Education by November 2010.  The bill was held on the  
               Assembly Appropriations Committee suspense file.

               AB 270 (Huff, 2007) would have extended the authority for  
               DOC inter-district transfers from July 1, 2007 to July 1,  
               2009, prohibited additional districts from becoming DOCs,  








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               and required school districts (electing to accept  
               transfers) to maintain records on the number of requests it  
               receives and annually report the number of requests it  
                                                                      receives to the Superintendent of Public Instruction.  The  
               language of this bill was incorporated into SB 80 (Budget  
               Bill, 2007).

               AB 97 (Nation, Chapter 21, Statutes of 2004) extended the  
               sunset date for one year for the DOC authorization and  
               required the Superintendent of Public Instruction to  
               continue the calculation for the Special Disabilities  
               Adjustment using the current incidence multiplier to allow  
               special education local plan areas to continue to receive  
               funds provided through 2003-04 until a new multiplier is  
               calculated.

               AB 19 (Quackenbush, Chapter 160, Statutes of 1993)  
               established school DOC and allowed the governing board of  
               any school district to declare the district to be a DOC  
               willing to accept a specified number of inter-district  
               transfers.

            SUPPORT
          
          Alexander Valley Union School District
          Big Creek School District 
          California Catholic Conference
          California State PTA 
          College School District
          Ed Voice 
          Elk Hills School District 
          Encinitas Union School District 
          Glendora Unified School District 
          Gorman Joint School District
          Inyo County Superintendent of Schools 
          Kenwood School District
          Monte Rio Union School District
          Oak Park Unified School District
          Pine Ridge Elementary School District 
          Riverside Unified School District 
          Riverside Unified School District
          Round Valley Joint Elementary School District 
          Round Valley Parent Teacher Organization 
          Round Valley School Step Foundation 








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          San Rafael City Schools
          Semitropic Elementary School District 
          Small School Districts' Association
          St. Helena Unified School District
          Vista del Mar Union School District

            OPPOSITION
           
           Rowland Unified School District

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