BILL ANALYSIS Ó SB 1432 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1432 (Huff) - As Amended June 30, 2016 ----------------------------------------------------------------- |Policy |Education |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 SB 1432 Page 2 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 SB 1432 Page 3 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. SB 1432 Page 4 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 SB 1432 Page 5 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