BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          AB 343
          Assemblymember Salda?a
          As Amended June 1, 2009
          Hearing Date: July 14, 2009
          Education Code
          KB:jd
                    

                                        SUBJECT
                                           
                             Pupils:  Military Families

                                     DESCRIPTION  

          This bill would ratify the Interstate Compact on Educational  
          Opportunity for Military Children (the Compact) in order to  
          remove barriers to educational success imposed on children of  
          military families due to the frequent relocation and deployment  
          of their parents.  

                                      BACKGROUND  

          Military families move between postings on a regular basis due  
          to reassignments that are required and/or advantageous for  
          career personnel.  However, these moves often create educational  
          disadvantages for the children of military families.  The  
          average military student transitions more than twice during high  
          school, and most military children will attend six to nine  
          different school systems from kindergarten to 12th grade.  With  
          more than half of all military personnel supporting families,  
          the impacts of reassignment and long deployments are a key  
          consideration when making life and career choices.  While the  
          armed services has taken steps to ease the transition of  
          personnel, and their spouses and children, frequent moves  
          subject military children to divergent policies, rules, and  
          procedures at both the state and local level.  

          The Council of State Governments has worked with the U.S.  
          Department of Defense Office of Personnel and Readiness to draft  
          the Compact, addressing the educational transition issues of  
          children of military families.  A variety of federal, state, and  
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          local officials as well as national organizations representing  
          interested education groups and military families worked from  
          July 2006 through early 2008 to develop the Compact that the  
          Legislature is requested to adopt in this bill.  Legal experts,  
          specifically those with both extensive substantive knowledge and  
          experience in drafting interstate compacts, as well as experts  
          in primary and secondary education issues, worked together in  
          conjunction with the stakeholders mentioned to draft the  
          proposed compact language and legal analysis for the Compact  
          over the same period of time.  While the Compact is not  
          exhaustive in its coverage, it does address the key issues  
          encountered by military families: eligibility, enrollment,  
          placement, and graduation.  In addition, the Compact provides  
          for a detailed governance structure at both the state and  
          national levels with built-in enforcement and compliance  
          mechanisms.    

          In 2008, the Compact was submitted to the California Legislature  
          for ratification in AB 1809 (Salda?a, 2008).  However, during  
          the legislative deliberations, questions were raised about the  
          fiscal impact of the Compact's requirements, whether the Compact  
          was consistent with state education laws, and the legal  
          implications of adopting the Compact.  AB 1809 was eventually  
          held in the Assembly Appropriations Committee.  Thereafter, AB  
          2049 (Salda?a, Chapter 589, Statutes of 2008) was amended to  
          create a task force to analyze the Compact, explore the concerns  
          raised during legislative deliberations, and make  
          recommendations regarding how to address the concerns.  The task  
          force issued its final report in April 2009 recommending that  
          California join the Interstate Compact on Educational  
          Opportunity for Military Children if certain non-material  
          changes were made to the Compact that would address concerns  
          previously expressed during the legislative process.

          This bill was approved by the Senate Committee on Education on  
          July 1, 2009.

                                CHANGES TO EXISTING LAW
           
           Existing law  requires the State Department of Education to  
          establish a formal liaison with the United States Department of  
          Defense and school districts that enroll military dependents to  
          establish guidelines for school credit transfer and procedures  
          to help military dependents in meeting local graduation  
          requirements.  (Ed. Code Sec. 51250.) 
           
                                                                      



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          Existing law  authorizes a school district of choice, as defined,  
          to give priority of attendance to children of military  
          personnel, if the school district elected to accept transfer  
          pupils by a resolution adopted by the governing board prior to  
          April 1, 2005.  (Ed. Code Sec. 51251.)

           This bill  would state the intent and purpose of the Interstate  
          Compact on Educational Opportunity for Military Children, and  
          define terms specific to the Compact.

           This bill  would provide that the provisions of the Compact apply  
          only to the children of members of the uniformed services, as  
          specified.

           This bill  would require sending schools (the school in the state  
          from which an eligible pupil is sent or brought) to furnish  
          unofficial and official student records to parents and receiving  
          schools, respectively, as provided.

           This bill  would require receiving schools (the school in the  
          state to which an eligible pupil is sent or brought) to perform  
          certain actions, as provided.  Among other things, receiving  
          schools would be required to: (1) allow transferring students to  
          continue their enrollment at their grade level in the sending  
          state, regardless of age; (2) allow a pupil who has completed a  
          grade level at the sending school to enroll in the next highest  
          grade level at the receiving school; (3) accept and honor  
          courses; and (4) accept exit or end-of-course examinations for  
          graduation from the sending state, but requires passage of  
          California's high school exit examination in order to receive a  
          diploma issued by a California high school.

           This bill  would require state and local education agencies to  
          facilitate the opportunity for transitioning military children's  
          inclusion in extracurricular activities, regardless of  
          application or tryout deadlines, to the extent they are  
          otherwise qualified and space is available as determined by the  
          school district.
           
          This bill  would require that the provisions of the Compact apply  
          to local education agencies (LEAs). 

           This bill  would prohibit an LEA from charging local tuition to a  
          transferring student in the care of a non-custodial parent or  
          other person acting as the parent who lives in a jurisdiction  
          other than that of the custodial parent.
                                                                      



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          This bill  would require LEA administrative officials to use best  
          efforts to waive courses required for graduation if a  
          transferring student has completed similar coursework, and if a  
          waiver is not granted, to use best efforts to provide an  
          alternative means of acquiring required coursework so that  
          graduation may occur on time.

           This bill  would allow LEA administrative officials to waive  
          pre-requisite courses or other pre-conditions for course  
          placement of eligible pupils. 

           This bill  would allow a student to receive a diploma from the  
          sending school should that student meet the requirements for  
          graduation at the sending school, but not at the receiving  
          school.

           This bill would require each member state to create a state  
          council to provide for the coordination among its agencies of  
          government, local education agencies, and military  
          installations.  This bill would require the state council to  
          appoint a military family education liaison to assist military  
          families and the state.  This bill would specify the membership  
          of and the appointing authority for members of the State Council  
          that is charged with coordinating efforts across all federal,  
          state, and local agencies involved in the state's participation  
          in the Compact.

           This bill  would provide that the Superintendent of Public  
          Instruction shall be the appointing authority for the state's  
          Compact Commissioner, who is responsible for the administration  
          and management of the state's participation in the compact.

           This bill  would state that the compact does not prevent the  
          enforcement of any other law of a member state.  However, all  
          other member states' laws that conflict with the compact are  
          superseded to the extent of the conflict.

           This bill  would require the executive, legislative, and judicial  
          branches of the member states to enforce the Compact and take  
          all necessary actions to carry out the rules promulgated as a  
          result of the Compact.

           This bill  would create the Interstate Commission on Educational  
          Opportunity for Military Children (the Commission), specifies  
          its duties, powers, membership, and requires that the Commission  
                                                                      



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          enforce the provisions and rules of the Compact.  This bill  
          would grant the Commission's executive director, employees, and  
          representatives immunity from suit and liability relating to the  
          performance of their Commission duties.  
           
          This bill  would require the Commission to promulgate rules to  
          bring about the goals of the Compact, and establishes that these  
          rules have the force of law over all member states unless  
          overturned by legislation approved individually by a majority of  
          member states.  

          This bill  would outline the process the Commission must follow  
          if it determines a member state has defaulted in the performance  
          of its obligations and responsibilities under the Compact,  
          including, but not limited to, the use of the judicial process.   


           This bill  would allow the Commission to levy and collect an  
          annual assessment from each member state to cover the cost of  
          the operations and activities of the Commission, but authorizes  
          the Superintendent of Public Instruction to accept nonstate  
          funding to offset these costs. 

           This bill  would prohibit the Commission from incurring  
          obligations of any kind prior to securing the funds adequate to  
          meet the same.  The Commission cannot pledge the credit of  
          member states without the member states' permission.

           This bill  would allow the Commission to propose amendments to  
          the compact for enactment by unanimous consent of the member  
          states.

           This bill  would allow member states to withdraw from the compact  
          by repealing the statute and specifies the withdrawal process.

           This bill  would contain a severability clause, requiring the  
          remaining provisions of the Compact to be enforceable, if any  
          other provision is deemed unenforceable.

           This bill  would provide that the Compact is dissolved when there  
          is only one member state.

           This bill  would direct the Superintendent of Public Instruction  
          to reconvene, with its original membership to the extent  
          possible, the task force that was convened pursuant to Section 2  
          of Chapter 589 of the Statutes of 2008 (AB 2049 (Salda?a).)  The  
                                                                      



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          task force would be required to:  (1) reconvene on or after July  
          1, 2012 and on or before September 1, 2012; and (2) review the  
          impact of the Compact on California, its school districts and  
          students, and issue a final report regarding these impacts,  
          including any recommendations for legislative action.

                                        COMMENT
           
              1.   Stated need for the bill

           The author states:

            There are about 60,000 school-age military dependents between  
            the age of 5 and 18 years old in California.  Unfortunately,  
            military families encounter significant school challenges when  
            dealing with enrollment, eligibility, placement, and  
            graduation of their children.  Twenty-five percent of the  
            students lose their course credits due to multiple school  
            transfers from out-of-state and out-of-country Department of  
            Defense schools to California schools.  Because of the high  
            rotation of military personnel, school-age military dependents  
            attend as many as seven schools.  Students can be penalized  
            for missing state tests required to enter or exit various  
            levels of the educational system.  Tests are often specific to  
            the state and consequently, entrance/exit tests taken in  
            another state are not recognized.  In addition, children  
            enrolled in Kindergarten in one state may not qualify by age  
            when transferred during the year to another state, and those  
            who have completed Kindergarten in another state are sometimes  
            denied entry into first grade due to the age requirement.  

            In 2008, the Department of Defense and the Council of State  
            Governments developed an interstate compact to address this  
            issue.  However, California and each participating state must  
            adopt the Compact through legislation.

          2.   Nonmaterial changes would not affect the validity of the  
          Compact   

          Interstate compacts are contracts between two or more states  
          creating agreements on how to address particular policy issues,  
          setting standards, or establishing cooperation on regional or  
          national matters.  By their nature compacts deal with public  
          policy matters that extend beyond the boundaries of one state.   
          Most states are a party to a number of interstate compacts,  
          addressing issues such as offender supervision, treatment of  
                                                                      



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          juveniles, natural resource management, multi-state taxation,  
          transportation, and professional accreditation.

          Because compacts are considered contracts between states, their  
          construction is governed by the legal principles applicable to  
          contracts.  Under the rule of offer and acceptance, a state must  
          adopt the compact in precisely the terms it is being offered,  
          subject only to nonmaterial changes or alterations.  "A material  
          change or alteration of an instrument is one that causes it to  
          speak a language different in legal effect from that which it  
          originally spoke.  Any change made in a document after its  
          execution, which merely expresses what would otherwise be  
          supplied by intendment is immaterial, and the document is in  
          effect unaltered by it."  (Consolidated Loan Co. v. Harman,  
          (1957) 150 Cal.App.2d 488, 492.)  In other words, a material  
          change is one which changes the rights, interests, or  
          obligations to the contract.  Accordingly, California must adopt  
          the Compact in the terms it is being offered, subject to only  
          nonmaterial changes.  

          This bill would ratify the Compact with a number of amendments  
          which were recommended by the Task Force to provisions  
          pertaining to unofficial education records, transcripts, course  
          placement, program placement, extracurricular activities, waiver  
          of graduation requirements, exit exams, transfers, and  
          financing.  These amendments are meant to tailor certain  
          provisions in the Compact to current state law.  For example,  
          Article VII, Section A of the Compact requires local education  
          agency administrative officials to waive specific courses  
          required for graduation if similar course work has been  
          satisfactorily completed in another local education agency.  In  
          California, school districts do not have the authority to waive  
          state course requirements for graduation.  However, districts do  
          have discretion to analyze course content and determine if it  
          meets graduation requirements.  Accordingly, the Task Force  
          recommended an amendment that would require districts to "use  
          best efforts" to waive specific courses for graduation.  Because  
          the Task Force's recommended amendments are nonmaterial, they  
          would not affect the validity of the compact.  

          3.   Compact may not be unilaterally amended

           By entering the Compact, California will have "contractually  
          agreed to reallocate governing authority away from individual  
          states to a multilateral relationship defined by commonly  
          accepted principles."  (See Caroline A. Broun, et al., The  
                                                                      



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          Evolving Use and the Changing Role of Interstate Compacts, at  
          21-22 (American Bar Association 2006).)  Although individual  
          states are free to adopt or decline to adopt any compact, states  
          ratifying compacts are bound to observe the terms of the  
          agreement until the compact is formally renounced by the state.   
          Under Article XV of the Compact, the Interstate Commission may  
          propose amendments to the compact for enactment by the member  
          states.  No amendment may be effective and binding upon the  
          Commission and member states unless it is enacted into law by  
          the unanimous consent of the member states.  Thus, the  
          legislature cannot unilaterally amend or modify the Compact once  
          it is enacted into law in California.  

          Under Article XVI of the Compact, a member state of the Compact  
          may withdraw from the Compact by repealing the statute which  
          enacted the Compact into law.  However, the effective date of  
          the repeal would not take effect until one year after the  
          effective date of the statute repealing the Compact.  Written  
          notice must also be provided by the withdrawing state to the  
          Governor of each other member state.  The state would be  
          responsible for all assessments, obligations, and liabilities  
          incurred through the effective date of withdrawal.

              4.   Delegation of rulemaking authority to the Interstate  
               Commission
           
          The California Constitution separates the powers of the state  
          government into legislative, executive, and judicial powers, and  
          provides that persons charged with the exercise of one power may  
          not exercise either of the others except as permitted by the  
          Constitution.  (Cal. Const., art. III, Sec. 3.)  California  
          courts have long recognized that under the Constitution the  
          Legislature may by statute delegate quasi-legislative powers to  
          a state agency in the executive branch, so long as adequate  
          standards are provided to guide the agency. (See Carmel Valley  
          Fire Prot. Dist. v. Cal., (2001) 25 Cal.4th 287, 289.)  The  
          adequacy of such a delegation is virtually never an issue in a  
          rulemaking because all state agencies, including Office of  
          Administrative Law, must presume that any California statute,  
          including one delegating rulemaking authority, is constitutional  
          unless an appellate court has made a determination to the  
          contrary. (Cal. Const., art. III, Sec. 3.5.)  Thus, every  
          rulemaking action must be based upon a statutory delegation of  
          rulemaking authority from the Legislature to a state agency.  

          The Administrative Procedure Act (APA) establishes rulemaking  
                                                                      



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          procedures and standards for state agencies in California.   
          (Cal. Gov. Code Sec. 11340 et seq.)  The requirements set forth  
          in the APA are designed to provide the public with a meaningful  
          opportunity to participate in the adoption of state regulations  
          and to ensure that regulations are clear, necessary, and legally  
          valid.  

          Articles X and XII of the Compact would provide that the  
          Interstate Commission would have the power to promulgate rules  
          and take all necessary actions to effect the goals, purposes,  
          and obligations in the Compact specifically pertaining to  
          educational record and enrollment, placement and attendance,  
          eligibility, and graduation.  Thus, the Legislature would be  
          delegating to the Interstate Commission the authority to adopt  
          binding and enforceable rules.  However, should the Interstate  
          Commission exercise its rulemaking authority in a manner that is  
          beyond the scope of the specific matters listed above, then such  
          actions shall be invalid and have no force or effect.  Rules  
          promulgated by the Interstate Commission would be required to be  
          made pursuant to a rulemaking process that substantially  
          conforms to the "Model State Administrative Procedure Act," of  
          1981.  The Model APA Act provides for publication of a proposed  
          rule, notice to interested persons, and issuance of a concise  
          explanatory statement and publication of the rule at least 30  
          days before it becomes effective.  Thus, it is similar in  
          purpose and effect to California's APA Act.    

          The rules promulgated by the Compact would have the force and  
          effect of statutory law and be binding in the compact states.   
          Thus, school districts would be required to comply with the  
          various requirements and policies articulated in the Compact,  
          which have been analyzed and discussed in both the Assembly and  
          Senate Committees on Education.  
          Article XIII of the Compact further requires that the three  
          branches of government in each member state enforce the Compact,  
          and "take all actions necessary and appropriate to effectuate  
          the compact's purpose and intent."  The Commission would be  
          authorized to compel enforcement of the Compact, by a majority  
          vote of the members, through the filing of a lawsuit in the  
          United States District Court for the District of Columbia or, in  
          the federal district where the Commission has its principal  
          offices.  The prevailing party in such an action would be  
          awarded all costs of litigation including reasonable attorney's  
          fees.  

              5.   Immunities from liability
                                                                      



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           Article XI of the Compact would provide that the Interstate  
          Commission's executive director and its employees shall be  
          immune from suit and liability, either personally or in their  
          official capacity, for civil claims arising out of or relating  
          to acts, errors, or omissions that occurred within the scope of  
          Interstate Commission employment, duties, or responsibilities.   
          However, persons would not be immune from liability for damages,  
          loss, or injuries caused by intentional or willful and wanton  
          misconduct.  In other words, Interstate Commission employees  
          would be immune from civil liability for negligent acts  
          occurring within the scope of the Commission's employment.  The  
          Compact would also provide that the liability of the Interstate  
          Commission's executive director and employees acting within the  
          scope of their employment or duties, may not exceed the limits  
          of liability set forth under the Constitution and laws of the  
          member state for state officials, employees, and agents.  Thus,  
                                            the liability of Interstate Commission employees would not  
          exceed the liability established under the California Tort  
          Claims Act (Gov. Code Sec. 810 et seq.) for public employees and  
          officials.
           
             6.   Compact would facilitate interstate transfer of military  
               pupils
           
          The intent of the Compact is to ensure that the children of  
          military families are afforded the same opportunities for  
          educational success as other children, and are not penalized or  
          delayed in achieving their educational goals by sometimes  
          inflexible administrative and bureaucratic practices as they  
          move from one school jurisdiction to another, between states or  
          within a state.

          The Task Force report states:  

            While "state sovereignty" concerns are sometimes raised as an  
            objection to an interstate compact, in reality a compact  
            usually serves to promote state sovereignty in that interstate  
            compacts, unlike pre-emptive congressional legislation or  
            regulations, allow states to continue to exercise authority  
            over interstate issues without the need for federal  
            intervention or pre-emption.  When examined from that  
            perspective, by enacting an interstate compact the State is  
            only giving up the right to act "unilaterally" with regard to  
            an interstate problem which cannot be resolved without a  
            uniform solution agreed to by all the states involved.  In  
                                                                      



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            this case with this compact, neither California nor any other  
            state can assure that the educational needs of children of  
            military members will be met by another state to which they  
            are transferred without an enforceable, uniform standard which  
            under our federal Constitution can only be established through  
            either Congressional action (See U.S. Constitution, Article I,  
            Section 8, Article I, Section 10, Clause 3).

            To date, the Compact has been enacted by 14 states, including  
            Arizona, Colorado, Connecticut, Delaware, Florida, Iowa,  
            Kansas, Kentucky, Michigan, Mississippi, Missouri, North  
            Carolina, Oklahoma, and Virginia.  The Compact became  
            operable, and thus obligated those adopting states, once its  
            language was adopted by 10 states.  Bills proposing that the  
            state enact the Compact are currently pending in 16 additional  
            states.  In all, 34 states are engaged at some point in the  
            process of enacting or considering enactment of the Compact.   
            In 2009, the U.S. Department of Defense expects bills for  
            Compact adoption to be introduced in 26 or 27 states. 


           Support  : State Superintendent of Public Instruction, Jack O'  
          Connell; California Association of Federally Impacted Schools;  
          American Legion, Department of California; Vietnam Veterans of  
          America, California State Council; AMVETS, Department of  
          California; California State Commanders Veterans Council;  
          Lincoln Military Housing; San Diego Military Advisory Council;  
          California Teachers Association; San Diego Unified School  
          District; Central Union High School District; Military Child  
          Education Coalition; Balfour Beatty Communities; San Diego  
          Regional Chamber of Commerce; California School Boards  
          Association; Michael B. Donley, Secretary of the Air Force;  
          Donald C. Winter, Secretary of the Navy; Pete Geren, Secretary  
          of the Army; five individuals

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          AB 2049 (Saldana), Chapter 589, Statutes of 2008, created an  
                                                                      



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          urgency statute that required the Superintendent of Public  
          Instruction to convene and support a task force to review and  
          make recommendations regarding the Interstate Compact on  
          Educational Opportunity for Military Children.  

          AB 1809 (Saldana), held in the Assembly Appropriations Committee  
          in 2008, was substantially similar to this bill.  

          AB 2102 (Saldana), Chapter 608, Statutes of 2006, established  
          procedures, including requiring the California Department of  
          Education to establish a formal liaison with the United States  
          Department of Defense and school districts that enroll military  
          dependents, to facilitate and smooth the transfer of school-age  
          military dependents and their school records.

           Prior Vote  :

          Assembly Education Committee (Ayes 10, Noes 0)
          Assembly Judiciary Committee (Ayes 10, Noes 0)
          Assembly Appropriations Committee (Ayes 17, Noes 0)
          Assembly Floor (Ayes 77, Noes 0)
          Senate Education Committee (Ayes 8, Noes 0)

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