BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       AB 174
          AUTHOR:        Carter
          INTRODUCED:    January 29, 2009
          FISCAL COMM:   Yes            HEARING DATE:  June 17, 2009
          URGENCY:       No             CONSULTANT:    James Wilson

           NOTE  :  The Rules Committee has requested that this bill be  
          returned if approved by the Committee on Education.   A "do  
          pass" motion should include referral to the Committee on  
          Rules.

           SUBJECT  :  School District Reorganization
          
           SUMMARY  

          This bill authorizes a County Committee on School District  
          Organization to approve petitions to create new school  
          districts without having to submit the proposal to the  
          State Board of Education when the governing boards of the  
          affected districts consent and the county superintendent(s)  
          with jurisdiction 
          over the affected districts approve, and where there is an  
          agreement to share the costs of complying with the  
          requirements of the California Environmental Quality Act  
          (CEQA).

           BACKGROUND  

          Current law provides for a county committee on school  
          district organization in each county (county committee) to  
          consider locally developed reorganization petitions to  
          transfer territory among districts; unify, merge or create  
          new districts or revise the boundaries of trustee areas.  
          Proposals for transfer of territory may be decided by the  
          county committee in a public hearing, although such  
          decisions to transfer more than 10% of a district's  
          territory must be ratified by a vote of the people in the  
          affected districts. The decisions of the county committee  
          may be appealed to the State Board of Education (SBE) for  
          specified reasons. 





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          When the reorganization proposal involves more than a  
          transfer of territory, the county committee holds a public  
          hearing and forwards the proposal, along with the  
          committee's recommendation, to the SBE.  Current law  
          provides that if the SBE approves a proposal for  
          reorganization then the proposal is returned to the County  
          for approval of a vote of the people in the territory being  
          reorganized. 

          Currently the California Environmental Quality Act (CEQA)  
          requires agencies with the principal responsibility for  
          carrying out or approving a project to prepare a negative  
          declaration, mitigated declaration, or environmental impact  
          report, unless the project is exempt from CEQA.  School  
          district reorganization petitions are subject to CEQA.

           ANALYSIS
           
           This bill:

           1)   Authorizes a county committee on school district  
               organization to approve or disapprove a petition to  
               form one or more school districts without further  
               review by the State Board of Education (SBE),   
               provided that:

               a)        Each county superintendent with jurisdiction  
               over an affected 
                    school district gives approval authority to his  
                    county committee and that county committee  
                    accepts the authority.  

               b)        The governing board of each affected school  
               district consents to 
                         the petition. 

               c)        The county committee designated as the lead  
               agency for CEQA 
                    enters into an agreement on behalf of the county  
                    committee for all affected school districts to  
                    share the costs of complying with CEQA. 

          2)   Provides that a petition to form one or more school  
               districts that is not approved by the county  
               committee, shall be transmitted to the SBE for their  
               review in accordance with current procedures.  For  




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               such proposals the SBE becomes the lead agency for  
               CEQA.  

          3)   Provides that a petition to form one or more school  
               districts that is approved by the county committee, or  
               by the SBE following review, shall not become  
               effective until approval by of a vote of the people in  
               the territory being reorganized.

          4)    Provides that the county committee shall be the lead  
               agency for CEQA for each petition it considers, unless  
               the SBE has assumed that duty as noted above.

          5)   Provides that when two or more counties are involved  
               in a reorganization proposal, the county  
               superintendents shall mutually agree as to which  
               county committee will be the lead agency for CEQA and  
               if no agreement is reached then the county committee  
               with the greatest number of pupils affected by the  
               proposal shall be the lead agency.

          6)   Provides that the 120 day period that is allowed for a  
               county committee to  approve or disapprove a transfer  
               of territory begins only after:

               a)        The environmental impact report is certified  
               or
               b)        A negative declaration is approved, or
               c)        It is determined that the proposal is exempt  
               from CEQA.




















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           STAFF COMMENTS  

           1)   Need for the bill.    This measure would reduce the  
               steps required for the creation of new school  
               districts by allowing such reorganization proposals to  
               be approved locally, as territory transfers are  
               currently, and not have to be reviewed by the State  
               Board except when there is disagreement or when the  
               proposal is turned down by the local county committee.

          According to the Department of Education, a total of 85  
               reorganization petitions were heard by the State Board  
               twelve years prior to 2008. This           included 21  
               petitions consolidating existing districts that would  
               qualify as an eligible petitions for county committee  
               approval under this proposal and all of these  
               petitions were approved by the State Board.  Nineteen  
               of the 21 were approved when put to a vote of the  
               affected electorate. 

           2)   Last year's bill.    AB 2243 of 2008 (Carter) was  
               similar to this bill and was vetoed with the following  
               message.

          The historic delay in passing the 2008-2009 State Budget  
               has forced me to prioritize the bills sent to my desk  
               at the end of the year's legislative session.  Given  
               the delay, I am only signing bills that are the  
               highest priority for California.  This bill does not  
               meet that standard and I cannot sign it at this time.
          
           3)   Previous legislation  .  AB 1642 (Salinas), Chapter 344  
               of 2005, revised to the school district reorganization  
               process, including authorizing a county committee to  
               abolish the 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 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 State  
               Board; it also required the approval of the State  
               Board in the event that the county decision on a  
               unification proposal was appealed.





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          AB 2841 (Salinas), vetoed in 2004, proposed streamlining  
               changes to the process similar to AB 1642.

           SUPPORT  

          Superintendent of Public Instruction (sponsor)
          California County Boards of Education 

           OPPOSITION

           Department of Finance