BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1432|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 1432
          Author:   Huff (R), et al.
          Amended:  5/31/16  
          Vote:     21 

           SENATE EDUCATION COMMITTEE:  9-0, 4/6/16
           AYES:  Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan,  
            Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SUBJECT:   School attendance:  pupil transfer options:  school  
                     districts of choice


          SOURCE:    Author

          DIGEST:   This bill (1) extends the sunset and repeal dates for  
          "school district of choice," program, (2) authorizes a 10% cap  
          for the total number students transferring out of school  
          districts of residence at a point in time, (3) requires the  
          Legislative Analyst's Office to evaluate the program and (4)  
          reassigns certain reporting requirements to the Superintendent  
          of Public Instruction (SPI).  


          ANALYSIS:  


          Existing law:










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           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.)


           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; 









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              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) Requires, further, school districts of choice to annually  
             report this information to neighboring school districts,  
             their county office of education, the 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  
             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.)


          This bill extends the sunset and repeal dates for "school  
          district of choice" program, authorizes a 10% cap for the total  
          number students transferring out of school districts of  
          residence at a point in time, requires the Legislative Analyst's  
          Office to evaluate the program and reassigns certain reporting  
          requirements to the Superintendent of Public Instruction (SPI).  
          Specifically, this bill:


           1) Extends the sunset of the district of choice program to July  
             1, 2022. 


           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. 


              b)    If an application is rejected, include the specific  







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                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,  
                as specified. 


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


           3) Amends the audit requirement, clarifying that the compliance  
             review be incorporated into the district's annual audit  
             already required by current law. 


           4) Requires school districts of choice to make public  
             announcements during the enrollment period regarding its,  
             schools, programs, policies and procedures during the  
             enrollment period.


           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:







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              a)    A court-ordered or voluntary desegregation plan.


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


           7) Amends the authorization for districts of residence with an  
             ADA of less than 50,000, to cap the maximum number of  
             students transferring out at 10 percent based on ADA at a  
             point in time, instead of for the duration of the program.   
             It requires districts of residence to authorize additional  
             students within the cap to participate in the program as  
             current program participants leave or graduate. 


           8) Modifies the authorization provided to school districts of  
             residence for implementing transfer caps related to the  
             district's fiscal condition by establishing new procedures  
             that require action by the governing board, as specified.


           9) Specifies that a student may continue to attend a school  
             district of choice, regardless of transfer restrictions 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)Requires the SPI to do all of the following:


              a)    Maintain a list of the school districts of choice in  
                the state. 


              b)    Collect certain information from each school district  
                of choice.


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







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                i)      A list of school districts of choice. 


                ii)     An accounting of all requests made for transfer,  
                  as specified. 


                iii)    A single list of all school choice programs.


              d)    Report to the Legislature, Governor and LAO a  
                description of the plan for collecting data by July 1,  
                2017. 


              e)    Annually make information regarding student transfers  
                under the district of choice program available to the  
                Governor and Legislature and LAO. 


           11)Authorizes the SPI to require the information collected by  
             school districts of choice to be provided through the  
             California Longitudinal Pupil Achievement Data System  
             (CALPADS) or another system administered by CDE.


           12)Requires LAO to conduct a comprehensive evaluation of the  
             program, as specified, and provide recommendations regarding  
             the extension of the program by January 31, 2020.


           13)Removes the requirement for the DOF to report specified  
             information to the LAO. 


           14)Recasts certain provisions and makes numerous  
             non-substantive changes.


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







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          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 of Choice program.   
            As a result, ending the program could cause a decline in  
            enrollment for several small school districts. This bill  
            extends the sunset for the District of Choice program and  
            seeks to incorporate recommendations made by 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. Existing law requires the evaluation to incorporate the  
            following information; the number and characteristics of  
            pupils who use the school 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 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  







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            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  
            many of which are related to provisions of this bill. Those  
            recommendations include:


             a)   Reauthorize program for a minimum of five years. The LAO  
               recommends reauthorizing the district of choice program as  
               it provides students with additional educational options  
               and motivates districts to improve their programs. The  
               report also provides that a five-year extension of the  
               program would allow for the collection of better data and  
               an assessment of other recommended changes. 


               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 short 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). 


               This bill extends the sunset of the district of choice  
               program to July 1, 2022 and requires LAO to conduct a  
               second comprehensive evaluation of the program and provide  
               recommendations regarding its extension by January 31,  
               2020.


             b)   Assign 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. Existing law  
               requires districts to report to DOF and SPI. This line of  
               reporting created confusion among districts and state  
               agencies. This bill streamlines reporting by clarifying  







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               that information collected by districts of choice must be  
               reported to the SPI annually. In turn the SPI is  
               responsible for ensuring information is reported and making  
               it available to the Legislature, Governor, LAO and on the  
               CDE Web site.  


               This bill also requires the SPI to create a plan for the  
               collection of data and make that plan available to the  
               appropriate fiscal and policy committees of the  
               Legislature, Governor and the LAO. 


             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 requirement by allowing the specified  
               compliance review to be a regular component of the  
               district's annual audit process. 


             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 requires school districts of choice to 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. This bill also requires school  
               districts of choice to make public announcements during the  
               enrollment period regarding its schools, programs, policies  
               and procedures during the enrollment period.


             e)   Repeal the 10% cumulative cap. 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 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  







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               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.  The Senate Education Committee staff notes that  
               a school district of residence would need to approach dire  
               financial conditions in order to impose such a cap. 


               This bill instead of repealing the cap modifies the  
               existing 10% cap to authorize a district of choice to  
               enroll additional students within the cap as current  
               program participants leave or graduate.


               In addition, this bill modifies the authorization provided  
               to school districts of residence for implementing other  
               transfer caps related to the district's fiscal condition by  
               establishing new procedures that require action by the  
               governing board, as specified.


          Prior Legislation


          SB 597 (Huff, Chapter 421, Statutes of 2015) extended, for one  
          year, the sunset and repeal dates of the 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 five years and required a census  
          report on DOC by CDE by November 2010.  The bill was held on the  
          Assembly Appropriations Committee suspense file.








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          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, 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 SPI.  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.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Senate Appropriation Committee, CDE estimates  
          costs of $132,000 for one position to gather and report  
          specified information required by this bill.  (General Fund)




          SUPPORT:   (Verified5/31/16)


          Alexander Valley Union School District
          Big Creek School District







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          College School District
          EdVoice
          Elk Hills School District
          Geyserville Unified School District
          Glendora Unified School District
          Gorman Joint School District
          Inyo County Superintendent of Schools
          Kenwood School District
          Maple School District
          McKittrick School District
          Mendocino Unified School District
          Monte Rio Union School District
          Oak Park Unified School District
          Pine Ridge Elementary School District
          Pond Union Elementary School District
          Round Valley Joint Elementary School District
          Round Valley Parent Teacher Organization
          Round Valley School Step Foundation
          Semitropic Elementary School District
          St. Helena Unified School District
          Vista Del Mar Union School District
          Walnut Valley Unified School District


          OPPOSITION:   (Verified5/31/16)


          None received 




          Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
          5/31/16 21:51:59


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