BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1432| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 1432 Page 2 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; SB 1432 Page 3 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 SB 1432 Page 4 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: SB 1432 Page 5 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: SB 1432 Page 6 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. SB 1432 Page 7 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 SB 1432 Page 8 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 SB 1432 Page 9 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 SB 1432 Page 10 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. SB 1432 Page 11 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 SB 1432 Page 12 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 **** END **** SB 1432 Page 13