BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1432  
          (Huff) - As Amended June 30, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:


          This bill revises and recasts provisions of the District of  
          Choice (DOC) program and extends the program through January 1,  
          2023.  Specifically, this bill: 


          1)Requires, on or before July 1, 2017, a school district that  
            chooses to be a DOC, to register this status with the  
            Superintendent of Public Instruction (SPI) through the  
            existing school data system (CALPADS) or another system  
            specified by the SPI. Prohibits a district from enrolling  
            students through the DOC program unless the district has  








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            registered with the SPI.


          2)Requires a DOC to post student transfer information online,  
            including any applicable forms or timelines and an explanation  
            of the DOC selection process for admittance. Requires  
            communications to be provided in all languages, consistent  
            with provisions of existing law regarding translations.  
            Requires the DOC to make public announcements about programs  
            and policies during the enrollment period. 


          3)Replaces the 10% hard cap on transfers from a district of  
            residence with an 8% rolling cap. A school district of  
            residence must authorize additional students to participate in  
            the DOC program when current program participants leave or  
            graduate, provided that the total number of pupils does not  
            exceed the school district's 8% cap. Grandfathers in students  
            enrolled prior to the 2018-19 school year without regard to  
            the 8% cap.


          4)Authorizes a school district of residence with a negative  
            fiscal status, by resolution at a public meeting, to limit the  
            number of students who may transfer out of the district in  
            that fiscal year and restrict any further pupils from  
            transferring for the upcoming school year.


          5)Provides for an appeal process through the county board of  
            education for students that are denied a transfer, similar to  
            the current interdistrict transfer appeals process and  
            authorizes a district of residence or a DOC to file complaints  
            of law violations with the county board.

          6)Requires the DOC to provide free transportation assistance to  
            students eligible for free and reduced price meals starting  
            July 1, 2019, if the parent requests the transportation and  
            the student lives at least two, but not more than 10 miles  








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            from the school district boundary.  Authorizes a DOC to pursue  
            a waiver of this requirement through the State Board of  
            Education, as specified.

          7)Requires the Superintendent of Public Instruction (SPI) to  
            maintain and post a list of all DOCs in the state; collect  
            specified transfer data from each DOC and post information on  
            the department website. Specifies Legislative intent that the  
            SPI collect data in the manner that minimizes the  
            administrative burden for school districts and the state.  
            Requires the SPI to report their plan for collecting data to  
            the Legislature, Governor, and Legislative Analyst's Office by  
            July 1, 2017.  

          8)Shifts annual reporting requirements, such as pupil  
            performance and the costs of providing transportation, from  
            the LAO to the SPI, but continues to require the LAO to  
            provide a comprehensive evaluation of the program. The LAO  
            report is due January 31, 2020.
          
          FISCAL EFFECT:


          1)Ongoing General Fund costs to the California Department of  
            Education of approximately $154,000 for one consultant to  
            maintain the list of DOCs; collect and report data; post  
            information online; respond to inquiries and provide technical  
            assistance to districts. The CDE indicates some of these  
            activities require more than one consultant but CDE can absorb  
            some of this workload.


          2)Unknown, potentially reimbursable, state mandated costs for  
            county boards of education to process appeals made by parents  
            regarding a denied transfer and to process complaints made by  
            school districts of choice and school districts of residence  
            purporting a violation of law.  










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          3)This bill will also result in cost pressures on DOCs to comply  
            with additional program requirements; however, since the DOC  
            program is optional, these requirements would not be eligible  
            for reimbursement under state mandate law.  


          COMMENTS:


          1)Background. Under current law, established by AB 19  
            (Quackenbush), Chapter 160, Statutes of 1993, a school board  
            may declare the district to be a DOC willing to accept a  
            specified number of transfers.  Unlike the main interdistrict  
            transfer law, the DOC law does not require agreement between  
            the district of residence and the DOC to admit transfers.  


            The district of residence has little say in the transfer  
            process, except, districts with 50,000 or less ADA may limit  
            the maximum number of transfers each year to 3% of their ADA  
            and may limit transfers for the duration of the program to 10%  
            of their ADA.  Districts with more than 50,000 pupils in  
            attendance may refuse to transfer more than 1% of their ADA.   
            A district of residence may also prevent a transfer under this  
            law if the transfer would have a negative impact on a  
            court-ordered or voluntary desegregation plan or the racial  
            and ethnic balance of the district.


          2)Purpose. This bill recasts and revises the DOC program and  
            extends the sunset on the program for an additional five  
            years. This bill also includes several LAO recommendations  
            from a 2015 report of the program. Specifically, the bill  
            repeals the hard cap on program participation and instead  
            provides for a rolling cap; assigns the CDE with more  
            administrative responsibilities, such as maintaining a list of  
            DOCs. This bill also includes a process to allow DOCs and  
            districts of residence to bring concerns of law violations to  
            the county board of education and an appeal process for  








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            parents whose children are denied a transfer. 

          3)Comments. Data from districts of residence that have lost  
            significant numbers of students to DOCs show racial and  
            socio-economic disparities among those who transfer. A recent  
            LAO review of the program confirmed that low income and  
            minority students are not utilizing the DOC program at the  
            same rates as wealthy students, potentially due to lack of  
            transportation or other program challenges. Recent amendments  
            to the bill attempt to address barriers to participation. For  
            example, the bill now requires DOCs to provide transportation  
            services to low income students who request the service. 


          4)Opposition. The Azusa Unified School District and Duarte  
            Unified School District are opposed to this bill. Both  
            districts note they have instituted the 10% hard cap to limit  
            students from transferring out of their districts. They are  
            opposed to the 8% rolling cap which will allow additional  
            transfers from their district to adjacent DOCs.  Both  
            districts are declining in enrollment and are concerned about  
            unpredictable and perpetual unlimited loss of ADA.  


          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081