BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 174
                                                                  Page  1

          Date of Hearing:   March 18, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                  AB 174 (Carter) - As Introduced:  January 29, 2009
           
           [This bill is double referred to the Assembly Natural Resources  
          Committee and will be heard as it relates to the issues under  
          its jurisdiction]
           
          SUBJECT  :   School district reorganization

           SUMMARY  :   Streamlines the process for specified school district  
          reorganizations.  Specifically,  this bill  :  

          1)Authorizes the county committee on school district  
            organization (county committee) to approve petitions to create  
            one or more new school districts, where the governing boards  
            of the affected school districts consent to the petition,  
            where the county superintendent of schools with jurisdiction  
            over the affected school districts grants approval to the  
            county committee and the county committee chooses to accept  
            that authority, and where the county committee enters into an  
            agreement to share the costs of complying with the  
            requirements of  the California Environmental Quality Act  
            (CEQA) on behalf of any or all affected school districts  
            (eligible petitions).

          2)Requires the county committee, for any eligible petition that  
            it approves, to notify the county superintendent of schools  
            who is required to call for an election at which the petition  
            is put to a vote of the affected electorate; requires an  
            eligible petition that is disapproved by the county committee  
            to be transmitted to the SBE for hearing.

          3)Designates the State Board of Education (SBE) as the lead  
            agency for purposes of CEQA for each eligible petition  
            disapproved by the county committee, including those petitions  
            where the project is determined to be exempt from CEQA, and  
            names the county committee as the lead agency for purposes of  
            CEQA for other eligible petitions.

          4)Requires that a mutual agreement between affected counties  
            determines the lead agency for purposes of CEQA in cases where  
            multiple counties are involved, and designates the county  








                                                                  AB 174
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            committee for the county with the greatest enrollment as the  
            lead agency if no mutual agreement can be reached within 30  
            days of the filing of a petition to reorganize one or more  
            school districts.

          5)Provides that the 120 day period within which a county  
            committee is required to make a recommendation on a  
            reorganization proposal commences after certification of an  
            environmental impact report, approval of a negative  
            declaration, or a determination that the project is exempt  
            from CEQA.

           EXISTING LAW  

          1)States the intent of the Legislature that local educational  
            needs and concerns serve as the basis for future  
            reorganizations of districts in each county.  

          2)Establishes a process whereby locally developed reorganization  
            petitions dealing with a transfer of territory are reviewed by  
            the county committee for approval or disapproval in a public  
            hearing, and allows for the county committee decision on a  
            petition dealing with a transfer of territory to be appealed  
            to the SBE for review and consideration.

          3)Establishes a process whereby locally developed reorganization  
            petitions dealing with all other district organizational  
            issues are reviewed by the county committee in public hearing  
            and submitted with a recommendation to the SBE, and requires  
            the SBE to hear such petitions in public hearing, receive a  
            recommendation from California Department of Education (CDE)  
            staff, and formally approve or disapprove those petitions.

          4)Requires the return of approved petitions to the local  
            jurisdiction, where the county superintendent of schools is  
            required to call for an election at which the petition is put  
            to a vote of the affected electorate.

          5)Subjects these petitions to review under CEQA.

           FISCAL EFFECT  :   A substantially similar bill in 2008 was found  
          to have minor state costs, with the possibility of some savings  
          at the state level.

           COMMENTS  :   This bill simplifies the approval process for local  








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          reorganization petitions to create one or more new school  
          districts if the affected school districts and county  
          superintendent of schools consent and if an agreement to share  
          costs related with CEQA exists.  The proposed simplification  
          occurs by eliminating approval or disapproval at the state level  
          by the SBE, and by clarifying responsibilities with respect to  
          CEQA.

          The author argues that this bill will result in cost savings to  
          local education agencies, and will reduce long delays in  
          approval that result, according to the author, from low staffing  
          levels and high workload in the CDE.  According to the sponsor,  
          the Superintendent of Public Instruction, county committees  
          review unification proposals carefully before making a  
          recommendation regarding the unification to the SBE.  These  
          reviews "include public hearings and analyses of the same  
          conditions that the SBE considers.  Although many unifications  
          are locally controversial (i.e., one or more affected districts  
          are opposed to the unification), a number of unifications are  
          supported by all affected districts as well as by the county  
          committee."  

          According to the CDE, a total of 85 reorganization petitions  
          were heard by the SBE over the twelve years prior to 2008.  This  
          included 21 petitions consolidating existing districts such that  
          it would qualify as an eligible petition for county committee  
          approval/disapproval under this proposal; all 21 of these  
          petitions were approved by the SBE, and 19 were approved when  
          put to a vote of the affected electorate.  Opposition was voiced  
          at the SBE hearing on a small number of these petitions,  
          primarily from teachers, parents, and other interested residents  
          of the affected school districts; these parties would have also  
          had the opportunity to testify as the county committee was  
          hearing the petition.  In a small number of these cases, the  
          Department of Finance (DOF) came forward in the SBE hearing to  
          express the state's interest and testify that the reorganization  
          could, by having an impact on resulting district(s) revenue  
          limits, increase costs to the state.

          Two concerns could be voiced with the simplification proposed in  
          this bill: 1) the loss of review at the state level may mean  
          that the state's interest in any eligible school district  
          reorganization is not represented; and, 2) although the author  
          represents eligible petitions as non-controversial  
          reorganization proposals, support from the governing boards of  








                                                                  AB 174
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          affected school districts and any affected county superintendent  
          is not a guarantee that no local controversy over a petition  
          exists.  Despite these concerns, there is clear benefit from  
          simplifying and expediting the existing process for local school  
          district reorganization, and from empowering the local county  
          committee to make local decisions on petitions that are eligible  
          under this proposal.

          The author carried a substantially similar bill in 2008.  The  
          Governor vetoed that bill, but provided no substantive reasons  
          for that action in his veto message.

          Related legislation:  AB 2243 (Carter), vetoed in 2008, was  
          substantially similar to this bill.  AB 1642 (Salinas), Chapter  
          344, Statutes of 2005, makes changes to the school district  
          reorganization process, including authorizing a county committee  
          on school district reorganization to abolish a common governing  
          board of an elementary district and a high school district upon  
          a vote of the electors of the respective districts.  AB 780  
          (Cogdill), Chapter 652, Statutes of 2004, authorized Fresno,  
          Humboldt and Ventura counties to locally approve school district  
          unifications through January 1, 2009 without receiving the  
          further approval of the SBE; it also required the approval of  
          the SBE in the event that the county decision on a unification  
          proposal was appealed.  AB 2841 (Salinas), vetoed in 2004,  
          proposed streamlining changes to the process similar to AB 1642.  
           SB 977 (Solis), Chapter 599, Statutes of 2000, prohibits an  
          action to reorganize the boundaries of a school district without  
          the consent of a majority of the members of the governing board  
          of the school district if the school district has obtained an  
          emergency loan from the state, and the school district has a  
          pupil population from low income households.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Superintendent of Public Instruction Jack O'Connell (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087