Senate Bill No. 1434

Introduced by Senator Glazer

(Principal coauthor: Assembly Member Olsen)

February 19, 2016

An act to amend Sections 47605, 47605.6, 47605.8, and 47613 of, and to add Sections 47604.6 and 47604.7 to, the Education Code, relating to charter schools.

LEGISLATIVE COUNSEL’S DIGEST

SB 1434, as introduced, Glazer. Charter schools.

(1) Existing law, The Charter Schools Act of 1992, permits teachers and parents to petition the governing board of a school district to approve a charter school to operate independently from the existing school district structure as a method of accomplishing, among other things, improved pupil learning.

This bill would authorize a school district, county office of education, or charter school to file a grievance with the State Board of Education alleging a violation of an obligation of a chartering authority, as provided. The bill would require the state board’s Advisory Commission on Charter Schools to hold a public hearing on the grievance and, if it finds the complaint meritorious, make a specific recommendation to the state board, which may include specific corrective action or suspension or revocation of the chartering authority’s authority to approve, oversee, renew, and revoke charters.

(2) Existing law requires a charting authority to meet certain charter school authorizing, supervisorial, and oversight responsibilities.

This bill would authorize the state board to approve a county office of education or a school district with demonstrated authorizing and oversight capacity to serve as an expanded authorizer of charter schools allowing that chartering entity to assume the charter school authorizing, supervisorial, and oversight responsibilities of another school district in certain situations, as specified.

(3) Existing law requires the governing board of a school district, after receiving a charter petition, to hold a public hearing on the provisions of the charter and prohibits the governing board of a school district from denying a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, setting forth specific facts to support certain findings.

This bill would require the governing board of the school district to base the specific facts on substantial evidence and provide the evidence to the petitioners and make it available to the public before the hearing.

Existing law authorizes a charter school petitioner, if the governing board of a school district denies a petition, to submit the petition for the establishment of a charter school to the county board of education. Existing law also authorizes a charter school petitioner, if the county board of education denies a petition, to submit the petition for the establishment of a charter school to the state board.

This bill would authorize a charter school petitioner to appeal to the county board of education if, after the petitioner submits a charter petition, the school district fails to act on the petition within required timelines or the governing board of a school district fails to adopt required findings to deny a petition. The bill would also permit a charter school petitioner to appeal to the state board if the county board of education fails to act on the petition within required timelines or the county board of education fails to adopt required findings to deny a petition.

Existing law requires a charter petition that either the county board of education or the state board fails to act upon within 120 days of receipt to be subject to judicial review.

This bill would, instead, require a charter petition that the state board fails to act upon within 120 days of receipt to be subject to judicial review.

Existing law authorizes the state board, by mutual agreement, to designate its supervisorial and oversight responsibilities for a charter school approved by the state board to any local educational agency in the county in which the charter school is located or to the governing board of the school district that first denied the petition.

This bill would also authorize the state board to designate its responsibilities to a county office of education.

Existing law requires a charter school that is granted its charter through an appeal to the state board and elects to seek renewal of its charter, before expiration of the charter, to submit its petition for renewal to the governing board of the school district that initially denied the charter.

This bill would, instead, authorize a charter school that is granted its charter through an appeal to the state board or a county board of education and elects to seek renewal of its charter, before expiration of the charter, to submit its petition for renewal to the governing board of the school district that initially denied the charter.

Existing law authorizes a charter school, if the governing board of the school district denies the charter school’s petition for renewal, to petition the state board for the renewal of its charter.

This bill would authorize a charter school, if the governing board of the school district denies the charter school’s petition for renewal, to petition the charter school’s current chartering authority for the renewal of its charter.

(4) Existing law authorizes a county board of education to approve a countywide charter only if it finds, in addition to other requirements, that the educational services to be provided by the charter school will offer services to a pupil population that will benefit from those services and that cannot be served as well by a charter school that operates in only one school district in the county.

This bill would, instead, authorize a county board of education to approve a countywide charter only if it finds, in addition to other requirements, that the educational services to be provided by the charter school will offer services to a pupil population that will benefit from those services.

Existing law authorizes a county board of education to grant a countywide charter only if it is satisfied that granting the charter is consistent with sound educational practice and that the charter school has reasonable justification for why it could not be established by petition to a school district.

This bill would, instead, authorize a county board of education to grant a countywide charter only if it is satisfied that granting the charter is consistent with sound educational practice and that the charter school petitioners have demonstrated that the charter school will provide a high-quality educational program. The bill would require the county board of education to also ensure that the charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance.

Existing law prohibits a charter school petitioner from submitting a petition for a countywide charter to the state board on appeal.

This bill would authorize a charter school petitioner to submit a petition for a countywide charter to the state board on appeal.

(5) Existing law authorizes the state board to approve a charter for the operation of a state charter school that may operate at multiple sites throughout the state.

This bill would authorize the state board to approve a charter for the operation of a state charter school that may operate at one or multiple sites throughout the state.

Existing law authorizes the state board to grant a petition for the operation of a state charter school only if it finds that the proposed state charter school would provide instructional services of statewide benefit that cannot be provided by a charter school operating in only one school district, or only in one county.

This bill would instead authorize the state board to grant a petition for the operation of a state charter school only if it is satisfied that the charter school petitioners have demonstrated that the proposed state charter school will provide a high-quality educational program and it finds that the proposed state charter school will provide instructional services of statewide benefit.

The bill would require the state board, as part of the determination of the statewide benefit, to ensure that the proposed charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance. The bill would authorize the state board to establish other criteria or conditions to determine or define a statewide benefit.

(6) Existing law authorizes a chartering authority that is given the responsibility for supervisorial oversight of a charter school approved by the state board to charge the charter school for the actual costs of supervisorial oversight.

This bill would require that chartering authority to submit annually a financial statement to each charter school it oversees that accounts for the use of any oversight fees collected from the charter school.

Existing law authorizes charter schools to separately purchase administrative or other services from the chartering authority.

This bill would require the charter school governing body and the governing board of the chartering authority to each approve any services agreements between the charter school and the chartering authority in a public meeting and make a finding that documents the validity of the fair market value of the agreement. The bill would authorize a county superintendent of schools to, based upon a written complaint or other information that justifies an investigation, conduct an investigation, as specified, to determine whether the school district has used supervisorial oversight fees properly or has charged service fees far in excess of fair market value. The bill also authorizes the Superintendent of Public Instruction to, based upon a written complaint or other information that justifies an investigation, conduct an investigation into a chartering county office of education’s compliance with these provisions.

Existing law defines “costs of supervisorial oversight” for the above purposes.

This bill would require a school district to include charter school oversight fees in it’s annual audit, as specified.

(7) This bill would also correct cross-references, make conforming changes, and make other nonsubstantive changes.

(8) To the extent the bill would impose additional duties on school districts and county offices of education, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 47604.6 is added to the Education Code,
to read:

47604.6.  

(a) A school district, county office of education, or
charter school may file a grievance with the state board alleging
a violation of an obligation of a chartering authority. The grievance
may be submitted based on evidence provided by a third party.
The grievance shall describe the specific violation prompting the
grievance, the provision of code or regulation that is being violated
or misapplied by the chartering authority, and any specific evidence
available to support the claim.

(b) The state board’s Advisory Commission on Charter Schools
shall hold a public hearing on the grievance and, if it finds the
complaint meritorious, make a specific recommendation to the
state board, which may include specific corrective action or
suspension or revocation of the chartering authority’s authority to
approve, oversee, renew, or revoke charters in accordance with
Sections 47605 and 47607.

(c) The procedure established by this section may be pursued
in addition to or instead of seeking a judicial remedy. Nothing in
this section shall limit or prevent any party from seeking a judicial
remedy for a complaint related to a chartering authority.

(d) The state board may adopt regulations to implement this
section.

SEC. 2.  

Section 47604.7 is added to the Education Code, to
read:

47604.7.  

(a) The state board may approve a county office of
education or a school district with demonstrated authorizing and
oversight capacity to serve as an expanded authorizer of charter
schools allowing that chartering entity to assume the charter school
authorizing, supervisorial, and oversight responsibilities of another
school district if any of the following occur:

(1)  The state board revokes and reassigns a school district’s
responsibilities following a hearing pursuant to Section 47604.6
or other determination by the state board in which the state board
finds the school district has substantially violated a provision of
this part and the effectiveness of corrective action seems unlikely
to ensure compliance with this part and good authorizing practices.

(2) A school district with fewer than 1,000 units of average
daily attendance requests the state board to suspend and reassign
the school district’s chartering responsibilities. A school district
may only request the responsibilities to be suspended and
reassigned after the governing board of the school district has
passed a resolution, in an open public meeting, requesting that the
state board reassign the school district’s responsibilities. The
reassignment shall only be effective after the approval of the
request by the expanded authorizer and the state board.

(3) A nonprofit public benefit corporation that operates more
than one charter school in the state requests a county office of
education or school district in which it operates a charter school
to consolidate all of its existing and future nonprofit charter schools
under the supervision and oversight of that chartering authority,
and that chartering authority requests the state board to become
an expanded authorizer for the nonprofit public benefit corporation.
In addition to the requirements of subdivision (d), the request to
the state board shall include a process for the expanded authorizer
to review the overall fiscal and operational health of the nonprofit
public benefit corporation as part of its supervision and oversight
responsibilities.

(4) Notwithstanding the geographic restriction of subdivision
(k) of Section 47605, and in addition to the authority provided in
subdivision (k) of Section 47605, the state board appoints one or
more expanded authorizers to supervise and oversee charter schools
that the state board approves pursuant to subdivision (j) of Section
47605.

(b) In approving an expanded authorizer, the state board shall
consider the capacity and quality of chartering practices of the
chartering authority and give priority to high-quality chartering
authorities within the county of a school district whose
responsibilities are being reassigned.

(c) The state board may impose geographic constraints on an
expanded authorizer’s authority to approve new charter schools,
but charter schools approved by an expanded authorizer are
otherwise exempt from Section 47605.1 and the geographic
restrictions of Section 47605. However, a resource center
established for nonclassroom-based, independent study pupils shall
operate in accordance with subdivision (c) of Section 47605.1.

(d) The state board shall adopt application criteria, a process,
and a timeline to approve expanded authorizers that allows for at
least one application cycle each year. A county board of education
or school district seeking to be approved as an expanded authorizer
shall submit an application to the state board for consideration and
action. At a minimum, the application shall include:

(1) A charter approval plan, including a description of how the
chartering authority would apply the criteria and timeline to
evaluate and approve charter petitions pursuant to subdivision (b)
of Section 47605.

(2) A local engagement plan to ensure that the governing board
of the school district and the community in which a charter school
would be located are notified of the proposed charter school and
provided with an opportunity to comment on each proposed charter
school. Engagement activities shall include, but not be limited to,
one public hearing in the community in which a charter school
would be located and a process for the chartering authority to
consider and resolve concerns about the charter school by the
community, including the governing board of the school district
in which the charter school would be located.

(3) A charter school oversight plan, including a description of
the chartering authority’s capacity and expertise in approving and
overseeing charter schools and how the chartering authority plans
to expand its capacity to accommodate additional charter schools.
The plan shall, at a minimum, ensure compliance with Section
47604.32 and outline the provisions of any memoranda of
understanding that may be necessary between a charter school and
the chartering authority.

(4) Assurance that the chartering authority will generally align
with nationally recognized principles and standards of charter
authorizing and oversight, as amended by the state board to
conform with California’s authorizing statute, to ensure chartering
authority quality and accountability.

(5) A plan for annual reporting to the state board and to the
governing boards of each school district in which charter schools
approved by the chartering authority would be located, describing
chartering activities, charter school academic performance, and
the fiscal viability of each charter school it would oversee pursuant
to this section.

(e) Nothing in this section shall be construed to limit or change
the authority of school districts, county boards of education, or the
state board to authorize charter schools pursuant to Section 47605,
47605.5, 47605.6, 47605.8, or 47606.

(f) An operating charter school that comes under the oversight
of an expanded authorizer shall continue to operate under the terms
and conditions of its approved charter petition and shall not be
deemed a new charter school. The charter school shall retain all
of its financial and operational practices and status as a continuing
charter school, including, but not limited to, funding eligibility,
demographic data, school codes, employment, enrollment
eligibility, and accountability status.

(g) An expanded authorizer shall comply with all laws and
requirements of chartering authorities imposed by this part,
including, but not limited to, all provisions related to charter school
approval, oversight, renewal, and revocation.

(h) A charter school approved by an expanded authorizer shall
comply with all provisions applicable to charter schools under this
part.

SEC. 3.  

Section 47605 of the Education Code is amended to
read:

47605.  

(a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school
may propose to operate at multiple sites within the school district
if each location is identified in the charter school petition. The
petition may be submitted to the governing board of the school
district for review after either of the following conditions is met:

(A) The petition is signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in
the school for its first year of operation.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.

(2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant
to subdivision (c) of Section 41365 may be circulated by one or
more persons seeking to establish the charter school. The petition
may be submitted to the governing board of the school district for
review after the petition is signed by not less than 50 percent of
the permanent status teachers currently employed at the public
school to be converted.

(3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(4) After receiving approval of its petition, a charter school that
proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify the
authority that granted its charter of those additional locations. The
authority that granted its charter shall consider whether to approve
those additional locations at an open, public meeting. If the
additional locations are approved, they shall be a material revision
to the charter school’s charter.

(5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district within
the jurisdiction of which the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools and the Superintendent are notified of
the location of the charter school before it commences operations,
and either of the following circumstances exists:

(A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.

(B) The site is needed for temporary use during a construction
or expansion project.

(6) Commencing January 1, 2003, a petition to establish a charter
school may not be approved to serve pupils in a grade level that
is not served by the school district of the governing board
considering the petition, unless the petition proposes to serve pupils
in all of the grade levels served by that school district.

(b) No later than 30 days after receiving a petition, in accordance
with subdivision (a), the governing board of the school district
shall hold a public hearing on the provisions of the charter, at
which time the governing board of the school district shall consider
the level of support for the petition by teachers employed by the
school district, other employees of the school district, and parents.
Following review of the petition and the public hearing, the
governing board of the school district shall either grant or deny
the charter within 60 days of receipt of the petition, provided,
however, that the date may be extended by an additional 30 days
if both parties agree to the extension. In reviewing petitions for
the establishment of charter schools pursuant to this section, the
chartering authority shall be guided by the intent of the Legislature
that charter schools are and should become an integral part of the
California educational system and that the establishment of charter
schools should be encouraged. The governing board of the school
district shall grant a charter for the operation of a school under this
part if it is satisfied that granting the charter is consistent with
sound educational practice. The governing board of the school
district shall not deny a petition for the establishment of a charter
school unless it makes written factual findings, specific to the
particular petition, setting forth specific facts begin insert based on substantial
evidence that is provided to the petitioners and made available to
the public before the meeting end insert to support one or more of the
following findings:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) The educational program of the charter school, designed,
among other things, to identify those whom the charter school is
attempting to educate, what it means to be an “educated person”
in the 21st century, and how learning best occurs. The goals
identified in that program shall include the objective of enabling
pupils to become self-motivated, competent, and lifelong learners.

(ii) The annual goals for the charter school for all pupils and
for each subgroup of pupils identified pursuant to Section 52052,
to be achieved in the state priorities, as described in subdivision
(d) of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school, and specific
annual actions to achieve those goals. A charter petition may
identify additional school priorities, the goals for the school
priorities, and the specific annual actions to achieve those goals.

(iii) If the proposed charter school will serve high school pupils,
the manner in which the charter school will inform parents about
the transferability of courses to other public high schools and the
eligibility of courses to meet college entrance requirements.
Courses offered by the charter school that are accredited by the
Western Association of Schools and Colleges may be considered
transferable and courses approved by the University of California
or the California State University as creditable under the “A” to
“G” admissions criteria may be considered to meet college entrance
requirements.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school’s educational program. Pupil outcomes shall include
outcomes that address increases in pupil academic achievement
both schoolwide and for all groups of pupils served by the charter
school, as that term is defined in subparagraph (B) of paragraph
(3) of subdivision (a) of Section 47607. The pupil outcomes shall
align with the state priorities, as described in subdivision (d) of
Section 52060, that apply for the grade levels served, or the nature
of the program operated, by the charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The governance structure of the charter school, including,
but not limited to, the process to be followed by the charter school
to ensure parental involvement.

(E) The qualifications to be met by individuals to be employed
by the charter school.

(F) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish it with a criminal record summary as described in Section
44237.

(G) The means by which the school will achieve a racial and
ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.

(H) Admission requirements, if applicable.

(I) The manner in which annual, independent financial audits
shall be conducted, which shall employ generally accepted
accounting principles, and the manner in which audit exceptions
and deficiencies shall be resolved to the satisfaction of the
chartering authority.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter schools
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.

(M) The rights of an employee of the school district upon
leaving the employment of the school district to work in a charter
school, and of any rights of return to the school district after
employment at a charter school.

(N) The procedures to be followed by the charter school and
the entity granting the charter to resolve disputes relating to
provisions of the charter.

(O) The procedures to be used if the charter school closes. The
procedures shall ensure a final audit of the charter school to
determine the disposition of all assets and liabilities of the charter
school, including plans for disposing of any net assets and for the
maintenance and transfer of pupil records.

(6) The petition does not contain a declaration of whether or
not the charter school shall be deemed the exclusive public
employer of the employees of the charter school for purposes of
Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code.

(c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605
and 60851 and any other statewide standards authorized in statute
or pupil assessments applicable to pupils in noncharter public
schools.

(2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the charter school’s
educational programs.

(d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against a pupil
on the basis of the characteristics listed in Section 220. Except as
provided in paragraph (2), admission to a charter school shall not
be determined according to the place of residence of the pupil, or
of his or her parent or legal guardian, within this state, except that
an existing public school converting partially or entirely to a charter
school under this part shall adopt and maintain a policy giving
admission preference to pupils who reside within the former
attendance area of that public school.

(2) (A) A charter school shall admit all pupils who wish to
attend the school.

(B) If the number of pupils who wish to attend the charter school
exceeds the school’s capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the district except as
provided for in Section 47614.5. Other preferences may be
permitted by the chartering authority on an individual school basis
and only if consistent with the law.

(C) In the event of a drawing, the chartering authority shall
make reasonable efforts to accommodate the growth of the charter
school and shall not take any action to impede the charter school
from expanding enrollment to meet pupil demand.

(3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil’s last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record
of the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject
to compulsory full-time education pursuant to Section 48200.

(e) The governing board of a school district shall not require an
employee of the school district to be employed in a charter school.

(f) The governing board of a school district shall not require a
pupil enrolled in the school district to attend a charter school.

(g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the charter school,
including, but not limited to, the facilities to be used by the school,
the manner in which administrative services of the school are to
be provided, and potential civil liability effects, if any, upon the
school and upon the school district. The description of the facilities
to be used by the charter school shall specify where the school
intends to locate. The petitioner or petitioners shall also be required
to provide financial statements that include a proposed first-year
operational budget, including startup costs, and cashflow and
financial projections for the first three years of operation.

(h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032, as that section read before July 19, 2006.

(i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide written
notice of that approval, including a copy of the petition, to the
applicable county superintendent of schools, the department, and
the state board.

(j) (1) If the governing board of a school district denies a
petition, begin insert or, if after a charter petitioner submits a charter, fails to
act on the petition within the timelines required in subdivision (b),
or the governing board of a school district fails to adopt findings
to deny a petition as required in subsection (b), end insert the petitioner may
elect to submit the petition for the establishment of a charter school
to the county board of education. The county board of education
shall review begin insert and act on end insert the petition pursuant to subdivision (b). If
the petitioner elects to submit a petition for establishment of a
charter school to the county board of education and the county
board of education denies the petition, begin insert fails to adopt findings to
deny a petition as required in subsection (b), or fails to act on the
petition within the timelines required in subdivision (b), end insert the
petitioner may file a petition for establishment of a charter school
with the state board, and the state board may approve the petition,
in accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from
the state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be
subject if it received approval from the entity to which it originally
submitted its petition. A charter petition that is submitted to either
a county board of education or to the state board shall meet all
otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.

(2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision (b), and shall define “reasonably
comprehensive” as used in paragraph (5) of subdivision (b) in a
way that is consistent with the intent of this part. Upon satisfactory
completion of the criteria, the state board shall adopt the criteria
on or before June 30, 2001.

(3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.

(4) If begin delete either the county board of education or end delete the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny a petition shall
be subject to judicial review.

(5) The state board shall adopt regulations implementing this
subdivision.

(6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the department
and the state board.

(k) (1) The state board may, by mutual agreement, designate
its supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is begin delete located or end delete begin insert located, end insert to the
governing board of the school district that first denied the begin delete petition. end delete
begin insert petition, or to a county office of education. end insert

(2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with
the state board.

(3) A charter school that is granted its charter through an appeal
to the state board begin insert or a county board of education end insert and elects to seek
renewal of its charter begin delete shall, end delete begin insert may, end insert before expiration of the charter,
submit its petition for renewal to the governing board of the school
district that initially denied the charter. If the governing board of
the school district denies the charter school’s petition for renewal,
the school may petition begin delete the state board end delete begin insert its current chartering
authority end insert for renewal of its charter.

(l) Teachers in charter schools shall hold a Commission on
Teacher Credentialing certificate, permit, or other document
equivalent to that which a teacher in other public schools would
be required to hold. These documents shall be maintained on file
at the charter school and are subject to periodic inspection by the
chartering authority. It is the intent of the Legislature that charter
schools be given flexibility with regard to noncore, noncollege
preparatory courses.

(m) A charter school shall transmit a copy of its annual,
independent financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to its chartering entity, the Controller, the county superintendent
of schools of the county in which the charter school is sited, unless
the county board of education of the county in which the charter
school is sited is the chartering entity, and the department by
December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.

SEC. 4.  

Section 47605.6 of the Education Code is amended to
read:

47605.6.  

(a) (1) In addition to the authority provided by
Section 47605.5, a county board of education may also approve a
petition for the operation of a charter school that operates at one
or more sites within the geographic boundaries of the county and
that provides instructional services that are not generally provided
by a county office of education. A county board of education may
approve a countywide charter only if it finds, in addition to the
other requirements of this section, that the educational services to
be provided by the charter school will offer services to a pupil
population that will benefit from those begin delete services and that cannot be
served as well by a charter school that operates in only one school
district in the county. end delete begin insert services. end insert A petition for the establishment of
a countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons
seeking to establish the charter school. The petition may be
submitted to the county board of education for review after either
of the following conditions is met:

(A) The petition is signed by a number of parents or guardians
of pupils residing within the county that is equivalent to at least
one-half of the number of pupils that the charter school estimates
will enroll in the school for its first year of operation and each of
the school districts where the charter school petitioner proposes
to operate a facility has received at least 30 days’ notice of the
petitioner’s intent to operate a school pursuant to this section.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation and each of the school districts where the
charter school petitioner proposes to operate a facility has received
at least 30 days’ notice of the petitioner’s intent to operate a school
pursuant to this section.

(2) An existing public school shall not be converted to a charter
school in accordance with this section.

(3) After receiving approval of its petition, a charter school that
proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those
additional locations at an open, public meeting, held no sooner
than 30 days following notification of the school districts where
the sites will be located. If approved, the location of the approved
sites shall be a material revision of the school’s approved charter.

(4) A petition shall include a prominent statement indicating
that a signature on the petition means that the parent or guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(b) No later than 60 days after receiving a petition, in accordance
with subdivision (a), the county board of education shall hold a
public hearing on the provisions of the charter, at which time the
county board of education shall consider the level of support for
the petition by teachers, parents or guardians, and the school
districts where the charter school petitioner proposes to place
school facilities. Following review of the petition and the public
hearing, the county board of education shall either grant or deny
the charter within 90 days of receipt of the petition. However, this
date may be extended by an additional 30 days if both parties agree
to the extension. A county board of education may impose any
additional requirements beyond those required by this section that
it considers necessary for the sound operation of a countywide
charter school. A county board of education may grant a charter
for the operation of a school under this part only if it is satisfied
that granting the charter is consistent with sound educational
practice and that the charter school begin delete has reasonable justification for
why it could not be established by petition to a school district
pursuant to Section 47605. end delete begin insert petitioners have demonstrated that the
charter school will provide a high-quality educational program.
The county board of education shall also ensure that the charter
school has described in the petition the manner in which the
charter school will seek to share best and promising practices of
the charter school with other traditional public schools and charter
schools that have low academic performance. end insert The county board
of education shall deny a petition for the establishment of a charter
school if it finds one or more of the following:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) The educational program of the charter school, designed,
among other things, to identify those pupils whom the charter
school is attempting to educate, what it means to be an “educated
person” in the 21st century, and how learning best occurs. The
goals identified in that program shall include the objective of
enabling pupils to become self-motivated, competent, and lifelong
learners.

(ii) The annual goals for the charter school for all pupils and
for each subgroup of pupils identified pursuant to Section 52052,
to be achieved in the state priorities, as described in subdivision
(d) of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school, and specific
annual actions to achieve those goals. A charter petition may
identify additional school priorities, the goals for the school
priorities, and the specific annual actions to achieve those goals.

(iii) If the proposed charter school will enroll high school pupils,
the manner in which the charter school will inform parents
regarding the transferability of courses to other public high schools.
Courses offered by the charter school that are accredited by the
Western Association of Schools and Colleges may be considered
to be transferable to other public high schools.

(iv) If the proposed charter school will enroll high school pupils,
information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses
approved by the University of California or the California State
University as satisfying their prerequisites for admission may be
considered as meeting college entrance requirements for purposes
of this clause.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and aptitudes specified as
goals in the school’s educational program. Pupil outcomes shall
include outcomes that address increases in pupil academic
achievement both schoolwide and for all groups of pupils served
by the charter school, as that term is defined in subparagraph (B)
of paragraph (3) of subdivision (a) of Section 47607. The pupil
outcomes shall align with the state priorities, as described in
subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The location of each charter school facility that the petitioner
proposes to operate.

(E) The governance structure of the charter school, including,
but not limited to, the process to be followed by the charter school
to ensure parental involvement.

(F) The qualifications to be met by individuals to be employed
by the charter school.

(G) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish it with a criminal record summary as described in Section
44237.

(H) The means by which the charter school will achieve a racial
and ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.

(I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by
the state board, and the manner in which audit exceptions and
deficiencies shall be resolved.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter school
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.

(M) Admission requirements of the charter school, if applicable.

(N) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.

(O) The rights of an employee of the county office of education,
upon leaving the employment of the county office of education,
to be employed by the charter school, and any rights of return to
the county office of education that an employee may have upon
leaving the employ of the charter school.

(P) The procedures to be used if the charter school closes. The
procedures shall ensure a final audit of the school to determine the
disposition of all assets and liabilities of the charter school,
including plans for disposing of any net assets and for the
maintenance and transfer of public records.

(6) A declaration of whether or not the charter school shall be
deemed the exclusive public school employer of the employees of
the charter school for purposes of the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).

(7) Any other basis that the county board of education finds
justifies the denial of the petition.

(c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school’s operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.

(d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605
and any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.

(2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the charter school’s educational
programs.

(e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, gender
identity, gender expression, or disability. Except as provided in
paragraph (2), admission to a charter school shall not be determined
according to the place of residence of the pupil, or of his or her
parent or guardian, within this state.

(2) (A) A charter school shall admit all pupils who wish to
attend the charter school.

(B) If the number of pupils who wish to attend the charter school
exceeds the school’s capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the county except as
provided for in Section 47614.5. Other preferences may be
permitted by the chartering authority on an individual school basis
and only if consistent with the law.

(C) In the event of a drawing, the county board of education
shall make reasonable efforts to accommodate the growth of the
charter school and in no event shall take any action to impede the
charter school from expanding enrollment to meet pupil demand.

(f) The county board of education shall not require an employee
of the county or a school district to be employed in a charter school.

(g) The county board of education shall not require a pupil
enrolled in a county program to attend a charter school.

(h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the charter school, including, but
not limited to, the facilities to be used by the charter school, the
manner in which administrative services of the charter school are
to be provided, and potential civil liability effects, if any, upon the
charter school, any school district where the charter school may
operate, and upon the county board of education. The petitioner
or petitioners shall also be required to provide financial statements
that include a proposed first-year operational budget, including
startup costs, and cashflow and financial projections for the first
three years of operation.

(i) In reviewing petitions for the establishment of charter schools
within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low achieving pursuant
to the standards established by the department under Section 54032,
as that section read before July 19, 2006.

(j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent, and to the state
board.

(k) If a county board of education denies a petition, the petitioner
may begin delete not elect to end delete submit the petition for the establishment of the
charter school to the state begin delete board. end delete begin insert board in accordance with
subdivision (j) of Section 47605. If a county board of education
does not renew, or revokes a petition approved in accordance with
this section, the petitioner may submit the petition for appeal to
the state board in accordance with Sections 47607 and 47607.5. end insert

(l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained
on file at the charter school and shall be subject to periodic
inspection by the chartering authority. begin insert It is the intent of the
Legislature that charter schools be given flexibility with regard
to noncore, noncollege preparatory courses. end insert

(m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year,
as described in subparagraph (I) of paragraph (5) of subdivision
(b), to the county office of education, the Controller, and the
department by December 15 of each year. This subdivision does
not apply if the audit of the charter school is encompassed in the
audit of the chartering entity pursuant to Section 41020.

SEC. 5.  

Section 47605.8 of the Education Code is amended to
read:

47605.8.  

(a) A petition for the operation of a state charter
school may be submitted directly to the state board, and the state
board shall have the authority to approve a charter for the operation
of a state charter school that may operate at begin insert one or end insert multiple sites
throughout the state. The begin delete State Board of Education end delete begin insert state board end insert
shall adopt regulations, pursuant to the Administrative Procedure
Act (Chapter begin delete 5 end delete begin insert 3.5 end insert (commencing with Section begin delete 11500) end delete begin insert 113 end insert begin insert 40) end insert of
Part 1 of Division 3 of Title 2 of the Government Code) for the
implementation of this section. Regulations adopted pursuant to
this section shall ensure that a charter school approved pursuant
to this section meets all requirements otherwise imposed on charter
schools pursuant to this part, except that a state charter school
approved pursuant to this section shall not be subject to the
geographic and site limitations otherwise imposed on charter
schools. The petitioner shall submit a copy of the petition, for
notification purposes, to the county superintendent of schools of
each county in which the petitioner proposes to operate the state
charter school. The petitioner also shall ensure that the governing
board of each school district in which a site is proposed to be
located is notified no later than 120 days begin delete prior to end delete begin insert before end insert the
commencement of instruction at each site, as applicable.

(b) The state board shall not approve a petition for the operation
of a state charter school pursuant to this section unless the
begin insert petitioners have demonstrated that the proposed state charter
school will provide a high-quality educational program and the end insert
state board makes a begin delete finding, based on substantial evidence, end delete begin insert finding end insert
that the proposed state charter school will provide instructional
services of statewide begin delete benefit that cannot be provided by a charter
school operating in only one school district, or only in one county. end delete
begin insert benefit. As part of the determination of the statewide benefit, the
state board shall ensure that the proposed state charter school
has described in the petition the manner in which the charter
school will seek to share best and promising practices of the
charter school with other traditional public schools and charter
schools that have low academic performance. The state board may
establish other criteria or conditions to determine or define a
statewide benefit. end insert The finding of the state board in this regard shall
be made part of the public record of the proceedings of the state
board and shall precede the approval of the charter.

(c) The state board, as a condition of charter petition approval,
may enter into an agreement with a third party, at the expense of
the charter school, to oversee, monitor, and report on, the
operations of the state charter school. The state board may prescribe
the aspects of the operations of the state charter school to be
monitored by the third party and may prescribe appropriate
requirements regarding the reporting of information concerning
the operations of the state charter school to the state board.

(d) The state board shall not be required to approve a petition
for the operation of a state charter school, and may deny approval
based on any of the reasons set forth in subdivision (b) of Section
47605.6.

SEC. 6.  

Section 47613 of the Education Code is amended to
read:

47613.  

(a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.

(b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering authority.

(c) A local educational agency that is given the responsibility
for supervisorial oversight of a charter school, pursuant to
paragraph (1) of subdivision (k) of Section 47605, may charge for
the actual costs of supervisorial oversight, and administrative costs
necessary to secure charter school funding. A charter school that
is charged for costs under this subdivision may not be charged
pursuant to subdivision (a) or (b). begin insert The chartering authority shall
submit annually a financial statement to each charter school that
it oversees that accounts for the use of any oversight fees collected
from the charter school. end insert

(d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other begin delete source. end delete begin insert source at fair market
value. The charter school governing body and the governing board
of the chartering authority shall each approve any services
agreements between the charter school and the chartering authority
in a public meeting and shall make a finding that documents the
validity of the fair market value of the agreement. However, the
chartering authority shall not condition the approval of a charter
petition on an agreement by the charter school to purchase
administrative or other services from the chartering authority. end insert

begin insert

(e) (1) A county superintendent of schools may, based upon a
written complaint or other information that justifies an
investigation, conduct an investigation into a school district’s
compliance with subdivisions (a) to (d), inclusive, for any school
district located within the county. The investigation shall determine
whether the school district has used supervisorial oversight fees
collected pursuant to this section for the purpose of funding the
oversight responsibilities pursuant to Section 47604.32, or charged
service fees far in excess of fair market value. The county
superintendent of schools shall report the findings of the
investigation to the county board of education.

end insert begin insert

(2) If the county board of education finds that the school district
violated this section, both of the following shall occur:

end insert begin insert

(A) The school district shall reimburse the charter school all
of the fees collected from the charter school for oversight purposes
that were not used for oversight purposes or service fees deemed
to be in excess of fair market value. The amount to be reimbursed
shall be determined by the county board of education as part of
their action to accept the finding of the investigation. The county
board of education may impose a reasonable interest rate on the
illegal fees collected.

end insert begin insert

(B) The school district shall submit an annual report to the
county superintendent of schools documenting compliance with
the oversight responsibilities in Section 47604.32 and the
associated costs and fees until the end of the term of the charter
that was subject to excess fees.

end insert begin insert

(3) (A) If a complainant is not satisfied with the response of
the county board of education, the complainant may submit a
written grievance pursuant to Section 47604.6.

end insert begin insert

(B) If the state board finds that the school district violated this
section, the school district shall comply with subparagraphs (A)
and (B) of paragraph (2), except that annual reports shall be
submitted to the Superintendent.

end insert begin insert

(4) If the county superintendent of schools concludes that the
school district has violated any of subdivisions (a) to (d), inclusive,
the school district may appeal that decision to the Superintendent.

end insert begin insert

(5) The Superintendent may, based upon a written complaint
or other information that justifies an investigation, conduct an
investigation into a chartering county office of education’s
compliance with subdivisions (a) to (d), inclusive. The
Superintendent and the chartering county office of education shall
be subject to the provisions of subparagraphs (A) and (B) of
paragraph (2).

end insert begin delete

(e)

end delete

begin insert (f) end insert  For purposes of this section, “chartering authority” means a
school district, county board of education, or the state board, that
granted the charter to the charter school.

begin delete

(f)

end delete

begin insert (g) end insert  For purposes of this section, “revenue of the charter school”
means the amount received in the current fiscal year from the local
control funding formula calculated pursuant to Section 42238.02,
as implemented by Section 42238.03.

begin delete

(g)

end delete

begin insert (h) end insert  For purposes of this section, “costs of supervisorial
oversight” include, but are not limited to, costs incurred pursuant
to Section 47607.3. begin insert The use of charter school oversight fees shall
be included in the school district’s annual audit conducted
pursuant to Section 41020. end insert

SEC. 7.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.