BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 174
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 174 (Carter)
          As Amended  July 15, 2009
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(May 14, 2009)  |SENATE: |35-0 |(August 17,    |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:   ED.  

           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 an eligible  
            petition that creates 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.

          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; and, requires an  
            eligible petition that is disapproved by the county committee  
            to be transmitted to the State Board of Education (SBE) for  
            hearing.

          3)Designates 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)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  








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            environmental impact report, approval of a negative  
            declaration, or a determination that the project is exempt  
            from CEQA.

           The Senate amendments  :

          1)Delete the proposed requirement that a mutual agreement  
            determines the lead agency for purposes of CEQA in cases where  
            multiple counties are involved; and, designates the county  
            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.

          2)Clarify definitions of specific actions that may be taken to  
            reorganize school districts.

          3)Make technical changes in statutory construction and  
            numbering.

           
          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  








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            to a vote of the affected electorate; also subjects these  
            petitions to review under CEQA.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  : According to the Senate Appropriations Committee,  
          pursuant to Senate Rule 28.8, negligible state costs.  

           COMMENTS  : This bill simplifies the approval process for local  
          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 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 12 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 few of these cases, the Department  
          of Finance came forward in the SBE hearing to express the  
          state's interest and testify that the reorganization could, by  








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          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  
          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.

          AB 2243 (Carter), vetoed in 2008, was substantially similar to  
          this bill; no substantive reasons for the veto were provided.   


          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087 


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