BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 261
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          Date of Hearing:   March 31, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                  AB 261 (Salas) - As Introduced:  February 11, 2009
           
          SUBJECT  :   Pupil Records: Privacy Rights

           KEY ISSUE  :  Should state educational law relating to access to  
          student records be amended in order to bring it into conformity  
          with federal law, and thereby ensure that the state continues to  
          obtain its share of federal special education funds? 

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal. 

                                      SYNOPSIS 

          An identical version of this bill, AB 2630, was approved by the  
          Committee last year by a vote of 10-0.  This bill, which is  
          sponsored by the State Superintendent of Public Instruction,  
          amends the California Education Code provisions relating to  
          access to  student records so as to conform to the federal  
          Family Education Rights and Privacy Act (FERPA).  As a condition  
          for receipt of federal funding, federal law generally prohibits  
          access to pupil records without parental consent or a judicial  
          order, subject to certain exemptions.  Beginning in 2003, and  
          every year thereafter, the United States Department of Education  
          (USDOE) has warned the California Department of Education that  
          the California statute has not been amended to conform to  
          changes in federal law.  Specifically, USDOE warned that failure  
          to amend the existing statute would jeopardize continued funding  
          for special education, which currently amounts to more than one  
          billion dollars annually.  The bill is identical to last year's  
          AB 2630 which was negotiated by several interested parties to  
          ensure both conformity to federal law and protection of privacy  
          interest, especially as to qualified exemptions related to  
          truancy mediation and juvenile adjudication.  AB 2630 passed out  
          of this Committee last year on consent.  The final version of AB  
          2630 passed off the Senate floor by an overwhelmingly  
          bi-partisan 37 to 1 vote, and the Assembly concurred without a  
          single dissenting vote.  The Governor vetoed the bill on the  
          grounds that it would create a reimbursable state mandate, even  
          though Legislative Counsel had keyed the bill non-fiscal and  
          found that it did  not  create a state-mandated local program.   








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          Moreover, even if the bill does create a state-mandated local  
          program - which according to Legislative Counsel it does not - a  
          mandate that is enacted to comply with federal law is not  
          reimbursable.  Legislative Counsel has again concluded that AB  
          261, like last year's AB 2630, does not create a state-mandated  
          local program.  Although the Department of Finance disputes the  
          Legislative Counsel designation, it has not taken a formal  
          position on the bill. This bill passed out of the Education  
          Committee last week on a bipartisan, unanimous 10-0 vote. 

           SUMMARY  :  Amends California Education Code relating to access to  
          pupil records in order to conform to the federal Family  
          Education Rights and Privacy Act (FERPA).  Specifically,  this  
          bill  :  

          1)Provides, generally, that a school district is not authorized  
            to permit access to pupil records to a person without written  
            parental consent or under judicial order, except under  
            specified conditions, and to specified officials, as is  
            permitted by Part 99 of the Title 34 of the Code of Federal  
            Regulations.

          2)Clarifies that a district attorney's office that is  
            participating in a truancy mediation program, as defined, may  
            have access to pupil records under specified conditions and so  
            long as the disclosure of records is permitted pursuant to,  
            and consistent with, Section 99.38 of Title 34 of the Code of  
            Federal Regulations as that section exists on January 1, 2009.  


          3)Clarifies that a probation officer or district attorney's  
            office may have access to pupil records for purposes of  
            conducting an investigation for juvenile adjudication,  
            declaring a person a ward of the court, or investigating a  
            condition of probation, so long as the records are relevant to  
            the legitimate educational interests of the pupil and the  
            disclosure of those records is permitted pursuant to, and  
            consistent with, Section 99.38 of Title 34 of the Code of  
            Federal Regulations as that section exists on January 1, 2009.  


          4)Clarifies that the judge or probation officer, for the  
            purposes of conducting a truancy mediation or presenting  
            evidence in a truancy petition, as defined, may have access to  
            pupil records, so long as the disclosure of those records is  








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            permitted pursuant to, and consistent with, Section 99.38 of  
            Title 34 of the Code of Federal Regulations as that section  
            exists on January 1, 2009. 

          5)Amends the existing exemption that gives county election  
            officials access to information contained in student records  
            for the limited purpose of identifying students eligible to  
            register to vote, so as to give the pupil's parent, or the  
            pupil if 18 years or age or older, the opportunity to opt out  
            of this voter registration activity.

          6)Amends existing exemptions that allow limited data sharing  
            between schools, for purposes of transfer, or between schools,  
            a county office of education, or the school superintendent,  
            for purposes of maintaining a data information system, so long  
            as the record and data sharing is for a legitimate educational  
            purpose and conforms to disclosure requirements in state and  
            federal law. 

           EXISTING LAW  prohibits a school district from permitting access  
          to pupil records to any person without written parental consent  
          or a judicial order, subject to certain exemptions.  (California  
          Education Code Sections 49076 and 49076.5.) 

           COMMENTS  :  The federal Family Education Rights and Privacy Act  
          (FERPA) protects the privacy of student records by prohibiting a  
          person from having access to pupil records without written  
          parental consent or under a court order, subject to narrow  
          exemptions.  FERPA applies to all schools that receive funds  
          from the United States Department of Education (USDOE).   
          Pursuant to this general requirement, the 1997 Individuals with  
          Disabilities Education Act (IDEA) required all states that  
          received IDEA grants to submit copies of state laws, policies,  
          and procedures in order to prove compliance with federal  
          requirements, including requirements that protected student  
          records.  After reviewing this material, the federal Family  
          Policy Compliance Office determined that California statutes had  
          not been amended to bring the state law into compliance with  
          subsequent changes in federal law.  USDOE has repeatedly warned  
          the California Department of Education that IDEA grants may not  
          be continued if California statutes are not amended to conform  
          to federal law.  This bill is sponsored by the State  
          Superintendent of Public Instruction, Jack O'Connell, who  
          contends that California is in danger of losing at least $1.13  
          billion in IDEA grants that provide critical funding to special  








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          education in California. 

          In addition, the recently enacted American Recovery and  
          Reinvestment Act (ARRA) could provide an additional $1.3 billion  
          dollars to California local education agencies. The USDOE is  
          currently in the process of developing ARRA guidelines.  It is  
          not yet clear how, or if, ARRA funds will also be tied to FERPA  
          compliance; however, it is certainly possible, as noted in the  
          March 18 analysis of the Assembly Education Committee, that the  
          same sanction that USDOE applies to IDEA grants will also be  
          applied to ARRA funds once the guidelines are completed. 

           Governor's Veto of AB 2630/ State-Mandated Cost Issue  .  As noted  
          above, this bill is identical to the author's AB 2630 of last  
          year.  AB 2630 was negotiated by several interested parties to  
          ensure both conformity to federal law and protection of student  
          and family privacy interests.  AB 2630 recognized, as does both  
          existing state and federal law, that there are certain  
          circumstances, and certain officials, who may need access to  
          pupil records, or portions thereof, without first obtaining  
          parental consent or a court order.  For example, schools within  
          a district must sometimes exchange records in the event of a  
          student transfer.  Probation officers, district attorney's  
          offices, and judges involved in truancy mediation programs or  
          juvenile justice investigations may need to document student  
          attendance records. This bill clarifies that these already  
          existing exemptions must be narrowly tailored to the specific  
          purposes that justify the exemptions and, most importantly, that  
          any disclosure of records under these exemptions must still  
          conform to federal law. 

          Legislative Counsel keyed AB 2630 non-fiscal and expressly  
          stated that it did not impose a state mandate on local  
          government.  Moreover, the California Constitution only requires  
          the state to reimburse local agencies and school districts for  
          certain costs mandated by the state.  It does not require  
          reimbursement if the state law is enacted to comply with a  
          federal requirement.  (California Constitution, Section 6 of  
          Article 13 B.  See also  County of L.A. v. Commission on State  
          Mandates  (1995) 32 Cal. App. 4th 805, concluding, on the basis  
          of ample prior case law, that a state mandate provision does not  
          apply to state legislation enacted pursuant to a federal  
          requirement.)  Nonetheless, the Governor vetoed AB 2630 on the  
          grounds that would create a reimbursable state mandate.  
          Specifically, the Governor's terse veto message stated:








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               While the stated intent of this bill is purported to  
               conform state special education law to changes to the  
               federal Individuals with Disabilities Education Act,  
               its provisions appear to expand beyond federal  
               requirement, and therefore could expose the State to  
               significant reimbursable state mandate costs.

           Department of Finance Analysis of AB 2630  .  Although the  
          Governor's veto message does not identify which provisions  
          expand federal requirements or how they would expose the state  
          to "significant reimbursable state mandate costs," the  
          Department of Finance (DOF) analysis of AB 2630 claims that two  
          provisions exceed the requirements of federal law and could cost  
          local education agencies "millions of dollars" that the state  
          would need to reimburse, since the requirements allegedly go  
          beyond federal requirements.  In particular, the DOF analysis  
          claims that: 

               Section 2 of this bill amends Education Code Section  
               49076.5 to require designated peace officers to show  
               prior written consent from one parent, or show that  
               they have obtained a lawfully issued subpoena or a  
               court order in order to obtain a student's  
               information. Conversely, federal law is not explicitly  
               this prescriptive. [Emphasis added.] 

          There are two objections that can be made to the DOF analysis.   
          First, DOF apparently fails to recognize that while no specific  
          provision in the federal regulations exactly tracks the existing  
          state law provision relating to "designated peace officers" -  
          the Code of Federal Regulations does not use that term - the new  
          language in Section 2 is effectively mandated by sections 99.30  
          and 99.31 of Title 34 of the Code of Federal Regulations.   
          Section 99.30 sets out the general rule that no information  
          shall be disclosed without written parental consent, while  
          Section 99.31 sets out the conditions under which prior consent  
          is not required, so long as other specified steps are taken.  AB  
          261 mirrors the exact language of the federal regulations where  
          federal regulations speak directly to a specific exemption, as  
          in the case of records obtained for purposes of truancy  
          mediation or juvenile justice adjudication.  Where the federal  
          regulations do not spell out a specific exemption, however,  
          Section 99.31 (9)(i) mandates that parental consent can only be  
          bypassed in order to "comply with a judicial order or a lawfully  








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          issued subpoena."  

          Under the existing California statute, a school must disclose  
          records to a "designated peace officer," upon his or her  
          request, "when a proper police purpose exists for the use of  
          that information" (Education Code Section 49076.5 (a)).  It must  
          be stressed that this requirement is in existing law: schools  
          must already disclose records to a peace officer if it is for a  
          "proper police purpose," as defined (Section 49076.5 (b)(1)).   
          However, this existing requirement is not sufficient to comply  
          with federal law.  Except for purposes expressly provided for  
          (as in truancy mediation), the minimum federal requirement for  
          disclosing student records without parental consent is, as  
          noted, to "comply with a judicial order or a lawfully issued  
          subpoena."  (34 CFR Section 99.31 (9)(i).)  Section 2 of AB 261  
          merely provides that records cannot be disclosed to a designated  
          peace officer unless he or she has met one of the federal  
          requirements: that is, obtain prior written consent of a parent  
          (the default requirement in CFR Section 99.30);  OR  provide  
          information indicating that there is an emergency in which the  
          information is necessary to protect the health or safety of the  
          pupil (as required by CFR Section 99.31 (10));  OR  that the peace  
          officer has obtained a lawfully issued court order or subpoena  
          (as required by CFR Section 99.31(9)).   

          In short, the DOF analysis, not finding any provision in the  
          Code of Federal Regulations that matches the express language in  
          Section 2 of this bill, apparently concludes that the bill  
          differs from, and therefore goes beyond, the federal  
          requirements.  But when CFR Sections 99.30 and 99.31 are read in  
          their entirety, it appears that the additional language added to  
          existing Education Code Section 49076.5 is designed to expressly  
          respond to the various ways in which federal law permits records  
          to be disclosed without parental consent. 

          Second, the DOF analysis claims that the added language in  
          Section 2 will impose new costs on local school districts.   
          However, existing law already requires a school to disclose  
          records to a designated peace officer.  The only thing that the  
          new language in Section 2 does is require that the peace  
          officer, in order to comply with express federal requirements of  
          Section 99.30 and 99.31, obtain parental consent, OR demonstrate  
          a public health or safety concern, OR obtain a court order or  
          subpoena.  This does not impose any new requirement on the  
          school district.  It does impose a new requirement on designated  








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          peace officers, but this is because the existing state law  
          requirement falls short of federal requirements.  Thus, whatever  
          minimal costs these may impose on the peace officers - not on  
          the school - it is clearly required by federal law and is  
          therefore not a reimbursable state mandate. 

          The DOF analysis also asserts that amendments to Section 49076  
          relating to the release of information to county election  
          officials (page 4 lines 30-36 of the bill in print) may impose a  
          requirement that goes beyond federal law.  Existing law permits  
          a school district to disclose information from a student record  
          to county elections officials if it is for the purpose of  
          identifying pupils eligible to register to vote and for  
          conducting programs to offer pupils an opportunity to vote.   
          Again, it is important to stress that this is existing law and  
          not a new mandate.  However, AB 261 adds a requirement that  
          would allow parents, or the pupil if he or she is 18 years of  
          age or older, to opt out of participation in this voter  
          registration activity.  The DOF analysis points out, quite  
          correctly, that the federal law says nothing about voter  
          registration activity.  But the fact that federal law says  
          nothing about this is precisely the point!  Because federal law  
          says nothing about county election officials or voter  
          registration programs, then county elections officials, like  
          anyone else, can only obtain pupil records by obtaining prior  
          parental consent.  This federally required consent is  
          effectively achieved by giving the parent, or an adult student,  
          the opportunity to opt out. 

           In sum  , while the DOF analysis usefully elaborates on the  
          Governor's terse veto message, the arguments do not appear  
          persuasive enough to overturn the sound judgment of the  
          Legislative Counsel.  It is not clear that AB 261 imposes any  
          new mandates on local school districts, as the DOF analysis  
          claims.  Any new costs imposed on other entities appear to be  
          required by federal law, and are therefore not reimbursable.   
          Finally, even if one were to accept the DOF's undocumented  
          assertion that this bill would impose costs of "millions of  
          dollars" on local school agencies, those unspecified "millions"  
          are still less than the $1.13 billion the state could lose in  
          IDEA grants and as much as $1.3 billion that the state could  
          lose if the USDOE applies the same logic to ARRA funds. 

           REGISTERED SUPPORT / OPPOSITION  :   









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           Support 
           
          Jack O'Connell, State Superintendent of Public Instruction  
          (sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334