BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 15, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                   AB 837 (Torlakson) - As Amended:  March 31, 2009
           
          SUBJECT  : School attendance: online education

           SUMMARY  : Relaxes the requirements placed on school districts,  
          county offices of education (COE) and charter schools for  
          calculating and funding average daily attendance (ADA) for  
          pupils enrolled for the minimum day in classes that include both  
          a classroom based setting and at least one class offered online.  
           Specifically,  this bill  allows a school district, COE, or  
          charter school to claim a unit of ADA on the basis of a pupil's  
          attendance in the classroom-based setting.

           EXISTING LAW  :

          1)Allows any school district to offer high school online  
            classes, while claiming attendance credit, in a classroom  
            setting, through Independent Study (IS), in a charter school,  
            or to any pupil who is otherwise attending for the minimum  
            day.

          2)Allows any school district to offer online classes to any  
            pupil, if the district is not claiming attendance credit for  
            that class time.

          3)Establishes the minimum school day for a high school student  
            to be 240 instructional minutes in a classroom, in IS, or in a  
            combination of the two settings, and requires students taking  
            a combination to meet attendance standards for both the  
            classroom and IS courses in order for a district to claim a  
            pupil's attendance for funding purposes.

          4)Requires that pupils in grades 9 through 12 attend school for  
            at least 64,800 minutes per year in no less than 180 days,  
            which generally requires pupil attendance for an average of  
            360 minutes per day.

           FISCAL EFFECT  : Unknown, but potential increases in ongoing  
          General Fund Proposition 98 costs due to increased payments for  
          revenue limits and ADA-based categorical funding resulting from  
          the increase in reported ADA.








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           COMMENTS  : School districts are already allowed to implement and  
          offer online courses, and many do.  There are four situations  
          under which districts are currently able to offer online courses  
          for high school pupils and still receive ADA credit toward  
          funding for that pupil's time in the same way the district would  
          if the pupil were not engaged in online instruction.

          1)Pupils receiving online instruction in a classroom setting  
            with a certificated employee of the district supervising the  
            classroom.

          2)Pupils enrolled in IS; this enrollment can be full-time or  
            part-time, meaning that the pupil could be enrolled in regular  
            classroom courses and enrolled in IS only for the purpose of  
            taking the online course.

          3)Pupils who have met the minimum day requirement of 240 minutes  
            of classroom instruction; these pupils have already generated   
            a full day of ADA credit and could take the online course in  
            addition with no penalty or loss to the district's attendance   
            or funding calculations.  Note that pupils should be attending  
            school for an average of 360 minutes in order to meet the  
            yearly required minutes.

          4)Pupils enrolled in a charter school; less strict requirements  
            for funding and attendance accounting exist for charter  
            schools.

          The state has also experimented with opening other avenues for  
          districts to provide online coursework.  AB 885 (Daucher),  
          Chapter 801, Statutes of 2002, authorized participation by high  
          school students in the Online Classroom Pilot (OCP) program,  
          which allowed the use of an asynchronous, interactive (a teacher  
          and student interact online, but not necessarily at the same  
          time) curriculum as immediate supervision in order to count this  
          participation as instructional time for the purpose of  
          generating ADA and associated funding.  The pilot program was  
          authorized until January 1, 2007, and was designed to monitor  
          and evaluate pupil participation in these online instructional  
          programs conducted over the Internet. This pilot program  
          addressed the need to provide expanded educational opportunities  
          for pupils attending schools with limited educational offerings,  
          access to advanced placement courses where none were available,  
          and quality educational services in courses for hard-to-staff  








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          subject areas in schools where a shortage of teachers existed.   
          Forty high schools in eleven school districts, with no more than  
          five schools per district, initially selected through an  
          application process administered the California Department of  
          Education (CDE); by statute, no more than fifteen percent of the  
          total enrollment of any of the school sites were allowed to  
          participate in the program.

          AB 885 grew out of the author's concerns over a school district  
          that had enrolled students in online courses and reported ADA  
          for those students; that ADA was disallowed upon audit because  
          the students were not under the immediate supervision of a  
          teacher, were not in IS, and did not complete the minimum day.   
          These infractions occurred at Canyon High School in the Orange  
          Unified School District; Orange Unified School District is a  
          sponsor of this bill, according to the author.  This district  
          was also a participant in the OCP program.

          In a required report issued by the CDE, it was reported that  
          nine of the school districts continued as active participants in  
          OCP, offering courses such as Economics, Health, Biology, and  
          World History. The CDE reported that benefits of OCP included  
          more flexible student schedules and access to a greater number  
          of courses, including AP and other courses that might not be  
          offered in their school.  On the negative side, the Department  
          listed the restrictions imposed by the authorizing legislation  
          and "lack of funding" even though the online courses were  
          generating full ADA and thus revenue limit support.   
          Participating districts reported that online courses were more  
          expensive to operate than traditional classroom-based courses.   
          The CDE has also historically expressed concerns over attendance  
          accounting and teacher supervision for students in online  
          courses.  Related concerns exist over the inability of teachers  
          to know who, if anyone, is actually "attending" (i.e., online  
          and engaged in the coursework) in an online setting where the  
          student is not in visual range of the teacher as in a classroom  
          setting.  This would be a particular concern in an asynchronous  
          application, as was allowed by OCP, where the teacher and the  
          pupil are not required to be online at the same time.

          It is unfortunate that this pilot program required neither a  
          formal evaluation nor any analysis of measurable outcomes from  
          the program.  The required reporting by the CDE, while meeting  
          the statutory mandate, did not provide the kind of evaluative  
          analysis upon which a decision to renew or expand a previously  








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          implemented program should be based.

          This bill makes a new proposal in two parts; this proposal  
          concerns pupils enrolled for the minimum day in a mix of  
          classroom-based and online courses, and where the student is not  
          enrolled in IS.  The first part of the proposal would authorize  
          school districts, COEs and charter schools to claim a day of  
          attendance counted toward ADA for a pupil who attends any part  
          of their classroom-based classes for that day.  Given the  
          situations in current law whereby a student in an online course  
          receives ADA credit toward funding, this proposal only deals  
          with one scenario - a non-IS student who is enrolled for at  
          least the minimum day when you sum the pupil's minutes for that  
          day in both classroom-based courses and online courses, but  
          would not be enrolled for the minimum day if the online course  
          minutes were not included in that day's total.  Even this  
          scenario could count toward funding, if the student were instead  
          enrolled in IS (even if only for the online course), in a  
          charter school, or if the online instruction were done in a  
          teacher-supervised classroom.  Under current law, in this  
          scenario the district or COE would lose all ADA for that pupil  
          for the day, effectively a one hundred percent "penalty,"  
          because the student did not meet the minimum day enrollment  
          standard; even if the student were completing the online course  
          under IS, the district would lose all ADA credit for the day  
          unless the student both attended a classroom course and  
          completed their daily work in the online course.  However, under  
          this proposal there is no penalty if the student does not  
          complete any online coursework as long as the student attends a  
          classroom-based course.  In other words, a full day of  
          attendance is credited as long as the student attends in the  
          classroom at some point in time during the day.  In total, this  
          proposal eliminates the need for a district to enroll a student  
          taking an online course in IS and the need for that student to  
          complete their daily online work, in order for the district to  
          receive full attendance credit for the student.  As the author  
          indicates this would provide an incentive for districts and COEs  
          to enroll students in (and get them to attend) online courses,  
          but this incentive would only exist for that subset of students  
          described in this scenario.

          According to the author, the problem that this bill is  
          addressing "mostly occurs in high schools, and most often with  
          seniors, who have completed much of the core curricular courses  
          and may schedule only the minimum day (typically 240 minutes) in  








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          order to work, attend a ROC/P or community college."  However,  
          online course work is also used extensively in dropout and  
          credit recovery programs for at-risk students.  Under current  
          attendance accounting statute and regulation, if this high  
          school student is enrolled only in classroom-based courses and  
          attends one period of their schedule, then the district is  
          entitled to one day of credit in calculating its ADA; if the  
          same student were enrolled only in online courses through IS and  
          completed a days worth of work output under there is agreement,  
          then the district is also entitled to one day of credit in  
          calculating its ADA.  However, if that student is enrolled in a  
          mix of classroom-based and online courses, then the student must  
          both attend for part of the classroom-based day and complete the  
          required work product for the IS course(s) in order for the  
          district to receive credit for one day of attendance; failure to  
          meet either the classroom-based or IS standard leads to no  
          attendance credit for the district.  This proposal would allow  
          one day of attendance credit as long as the classroom-based  
          standard was met.

          It should be noted that this bill proposes to address an issue  
          that prevents districts and COEs from claiming attendance credit  
          for funding purposes for students who are most likely enrolled  
          for an amount of time that is at or near the minimum day of 240  
          minutes.  This bill does not address the fact that a 240 minute  
          instructional day probably falls short from an educational  
          perspective in the first place.  In the typical high school, 240  
          minutes is comparable to a 4 period day.  A student enrolled for  
          a 4 period day through high school would not generally meet  
          local credit requirements for graduation, would likely be unable  
          to meet California's public university admission requirements,  
          and certainly would fall short of the state requirement that  
          pupils in grades 9 through 12 attend school for at least 64,800  
          minutes per year in no less than 180 days (which generally  
          requires attendance for an average of 360 minutes per day).   
          Thus this proposal creates issues concerning time that are  
          unrelated to attendance accounting, but are clearly germane to  
          broader educational goals and expectations.

          The second part of the proposal would allow this new attendance  
          accounting model to be applied to pupils enrolled in "high  
          quality online course offerings."  Rather than allowing  
          flexibility in the provision of online instruction in the  
          context of IS or a pilot such as the OCP program - both of which  
          were highly structured with requirements and restrictions that  








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          ensured that the quality of instruction online was at least on  
          par with instruction in the same course taught in a  
          classroom-based setting - this proposal is undefined in terms of  
          what constitutes "high quality online" instruction.  Previous  
          online instruction had the assurances of requirements on  
          student-teacher ratios and evaluation of work product (IS), or  
          requirements on teacher-student interactions and course content  
          (OCP) to work against low quality instruction, but this proposal  
          seems to have no requirements attached; as a worse-case example  
          under this proposal, an online course could be taught with no  
          content relationship to the state's content standards, with no  
          associated assessment or accountability, with no iterative  
          interaction with teachers, or, in fact, with no teacher working  
          with the student at all - as long as the district felt that the  
          online course was "high quality".

          The immediate supervision of a certificated teacher not only  
          lies at the heart of the delivery of education services, but is  
          also the foundation of the state's current attendance accounting  
          and revenue limit funding system.  Elimination of teachers  
          through implementation of online coursework that is not  
          conducted with either synchronous (teacher and student online  
          simultaneously) or asynchronous (teacher checking the students  
          work online at different times) supervision by a teacher  
          presents numerous risks to student learning, particularly for  
          students with special needs and students in need of remediation.  
           In addition, elimination of immediate teacher supervision means  
          that the state has no mechanism to ensure that a student is  
          actually engaged in the coursework.  From the perspective of the  
          state's interest, these are situations where the state would be  
          unable to ensure that its investment in education is spent  
          directly on instruction.  The Legislature's unease with  
          instructional circumstances without immediate supervision was  
          made clear with the passage of SB 740 (O'Connell), Chapter 892,  
          Statutes of 2001, which limited funding for charter schools that  
          are primarily non-classroom based.  The Legislature was  
          concerned that these schools were receiving funds in excess of  
          what was required to fund non-classroom based instruction, and  
          that it was not clear to what extent and intensity instruction  
          was being delivered to pupils.  Online instruction raises many  
          of the same questions, particularly as this bill fails to  
          provide standards for instruction, accountability, teacher  
          involvement, or teacher qualifications in the online courses.   
          Currently, only in limited circumstances (e.g., IS) are school  
          districts funded for instruction that occurs without a pupil  








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          being under the immediate supervision of certificated staff  
          (though in such circumstances the pupil is always under the  
          periodic supervision of a teacher); such circumstances are  
          subject to rigorous requirements and restrictions beyond what  
          would be required under this bill; those requirements and  
          restrictions generally ensure instructional quality in terms of  
          issues such as student-teacher ratios, teacher qualifications,  
          curriculum and content, and student assessment.

          The usefulness of online curriculum and instruction is becoming  
          more apparent as delivery systems mature and more electronic  
          instructional materials are developed, and the potential use of  
          online education in addressing issues regarding students with  
          low motivation, dropout and credit recovery, and remedial  
          instruction is heartening.  However, it is not yet clear how the  
          state should move forward to further authorize and fund online  
          K-12 educational services, since it is necessary at the same  
          time to guarantee that the quality of the educational services  
          provided to a student online is equivalent to that provided in  
          the classroom, that the state's financial investment in a  
          pupil's education is served by online education, and that there  
          are no unintended consequences (e.g., inequities in access to  
          online instruction, loss of the speaking skills required in the  
          language arts standards, or losses in personal and social  
          skills) that might result from increasing this means of  
          delivering education services.

          Committee amendments: In line with the Legislature's historical  
          willingness to move forward incrementally with online education  
          by creating a pilot and setting requirements and standards that  
          were required of these courses, Committee staff recommends the  
          following amendments, many of which are designed for the  
          protection of students participating in online education under  
          the provisions of this bill: 

          1)Delete charter schools from this bill.  Charter schools are  
            funded differently from school districts and COEs, and are not  
            subject to the same restrictions on course offerings,  
            attendance accounting, or instructional delivery.  The  
            concepts of ADA, IS, and minimum day, from a statutory  
            perspective, are irrelevant to charter schools.  Thus the  
            inclusion of charter schools in this bill only serves to  
            create statutory ambiguity.

          2)Place requirements on online courses used to qualify for ADA  








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            credit as proposed by this bill and make these requirements  
            subject to audit; in this way the author's intent that these  
            online courses be "high-quality" will be realized.  These  
            requirements should be consistent with those developed during  
            earlier legislation discussions related to the authorization  
            and proposed reauthorization of the OCP program, and clearly  
            would work to improve the courses, protect the student, and  
            make the student's online course experience as close as  
            possible to the classroom experience for a course with the  
            same content.  At the same time this would still support the  
            author's intent to relax the funding restrictions that may  
            hold back districts and COEs from offering online coursework.   
            The restrictions would include:

             a)   Limit this authorization to pupils in grades 9 - 12.

             b)   Require the teacher of an online course to be accessible  
               to the student online on a daily basis, but allow such  
               courses to be asynchronous or synchronous, meaning that the  
               teacher and pupil may not be, or may be, online at the same  
               time.

             c)   Require each school site to have the same ratio of  
               full-time equivalent certificated teachers to pupils in  
               online instruction as for in-classroom instruction of the  
               same subject matter, and restricts online course enrollment  
               at each school site to no more than 15 percent of the total  
               enrollment of that school site.

             d)   Require a teacher of an online course to be currently  
               teaching, or in the last two years to have taught, the same  
               course in an in-classroom setting and to hold the  
               appropriate subject matter credential, and requires the  
               course content for online instruction to be the same as for  
               in-classroom instruction for each course.

             e)   Allow a school district to contract with another school  
               district to provide the online course to pupils at the  
               approved school site, if both districts comply with all  
               standards and criteria of the program.

             f)   Permit only pupils who have volunteered, as proven by  
               the written consent of a parent or guardian, to be assigned  
               to an online course.









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             g)   Require that state testing results for pupils in online  
               courses be assigned to the school and district in which the  
               student is regularly enrolled.

             h)   Require that pupils in any online course are tested  
               using proctors or other means of ensuring the integrity of  
               the testing process, and that a clear record of pupil work  
               be maintained in the same manner as for the in-classroom  
               version of the course.

             i)   Require school districts to maintain records to verify  
               the time that a pupil and an instructor spend online and in  
               related activities, and to verify compliance with other  
               requirements.  As a condition of funding, the district must  
               make these records available to the districts independent  
               auditor.

             j)   Require the school district governing board of the  
               school site offering the course to approve the online  
               course, and to certify, through board resolution,  
               compliance with these requirements.

             aa)  Prohibit the waiver of any aspect of these requirements  
               unless specifically provided for.

          3)Clarify that this proposal applies to students enrolled for  
            'at least' the minimum day, rather than (exactly) for the  
            minimum day of 240 minutes.

          4)Make this change operational commencing with the 2010-11  
            fiscal year.  Since this bill would be enacted January 1,  
            2010, the first half of the 2009-10 school year would operate  
            under one set of attendance accounting rules and the second  
            half would operate under another; this amendment alleviates  
            this problem. 

          Previous legislation: AB 2457 (Walters), held in the Assembly  
          Appropriations Committee in 2008, would have re-established the  
          Online Classroom Pilot Program to monitor and evaluate pupil  
          participation in course-based, asynchronous, interactive  
          instruction conducted over the Internet.  SB 155 (Maldonado),  
          introduced in 2007, was substantially similar to AB 2457, except  
          that SB 155 also required the California Department of Education  
                                                                to give priority to applicants ranked in the Academic  
          Performance Index (API) deciles 1 through 5, when approving the  








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          competitive applications to operate an online course; SB 155 was  
          later amended into a different subject matter and signed into  
          law as Chapter 702, Statutes of 2008.  AB 885 (Daucher), Chapter  
          801, Statutes of 2002, authorized participation by high school  
          students in an online classroom program using an asynchronous,  
          interactive curriculum as immediate supervision in order to  
          count this participation as instructional time for the purpose  
          of generating average daily attendance (ADA) and associated  
          funding.  AB 885 authorized up to 40 participating school sites.  
           Early versions of AB 885 would have authorized ADA credit for  
          an online class operated by Canyon High School in the Orange  
          Unified School District; the district had previously been found  
          to be out of in compliance with the requirement that attendance  
          credit for funding may only be earned by pupils under the  
          "immediate supervision" of a properly credentialed instructor,  
          and was at risk of losing credit for ADA and thus funding.  The  
          bill was amended in Senate appropriations to reflect the more  
          general program.  AB 294 (Daucher), Chapter 429, Statutes of  
          2003, recast this program as a pilot, added specified fiscal,  
          record-keeping, and reporting requirements and implemented other  
          clean-up provisions as requested in the Governor's AB 885  
          signing message.  AB 1985 (Daucher), held in the Senate in 2006,  
          would have established the Online Classroom Program, replacing  
          the pilot program with an ongoing, non-pilot program allowing  
          school districts to receive funds for average daily attendance  
          (ADA) of pupils who are receiving instruction via the internet  
          and are located at remote locations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California League of Middle Schools
          California League of High Schools
          Los Angeles Unified School District
          Orange Unified School District (Sponsor)
          Santa Clara County Office of Education
          Small School Districts Association

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









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