BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 837
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 837 (Torlakson) - As Amended:  April 22, 2009 

          Policy Committee:                              Education  
          Vote:10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill, beginning with the 2010-11 fiscal year (FY),  
          establishes that a school district or county office of education  
          (COE) may claim average daily attendance (ADA) on the basis of a  
          pupil's attendance at a class or classes in the classroom-based  
          setting on that day, for the purpose of learning online, if the  
          following apply:  

          1)The pupil is enrolled in grades 9, 10, 11, or 12 and is  
            enrolled for at least the minimum school day in classes that  
            include both one or more courses in a classroom-based setting  
             and  one or more courses that are offered on an online program.  
             The bill also requires the online instruction to be offered  
            by a high school.   

          2)The online course is high-quality, as specified.  This  
            definition includes the approval of the course by the school  
            district governing board and a requirement that the teacher of  
            an online course be online and accessible to the pupil on a  
            daily basis, as specified.  

          3)The subject matter content is the same for the online course  
            as for the traditional classroom-based course and the teacher  
            holds the appropriate credential.  

          4)The pupil cannot be assigned an online course unless he or she  
            voluntarily elects to participate and his or her parent or  
            guardian provides written consent.  

          5)A school district that offers online classroom programs is  
            required to maintain records to verify the time a pupil spends  








                                                                  AB 837
                                                                  Page  2

            online and related activities, as specified.  This measure  
            also requires records to be kept verifying the amount of time  
            the instructor is online.  

           FISCAL EFFECT  

          Potential on-going GF/98 revenue limit costs, of $580,000, for  
          increased claims of ADA for providing online instruction to  
          pupils.  

           COMMENTS  

           1)Background  .  AB 885 (Daucher), Chapter 81, Statues of 2002,  
            established the Online Classroom Pilot (OCP) program until  
            2007. The purpose of this program was to monitor and evaluate  
            pupil participation in online interactive instructional  
            programs. The pilot program addressed the need to provide  
            expanded educational opportunities for pupils attending  
            schools with limited educational offerings; the need to  
            provide access to advanced placement courses where none are  
            available; and the need to provide quality educational  
            services in courses for hard-to-staff subject areas in schools  
            where a shortage of teachers exist. 

            In accordance with Chapter 81, 40 high schools (within 11  
            school districts) with no more than five schools per district  
            were selected through an application process administered by  
            the SDE. Statute also required that no more than 15% of the  
            total enrollment of the schoolsite may participate in the  
            program. 

            According to the report released by the SDE, "data and  
            feedback from the participating districts indicate the OCP  
            program has been successful in fulfilling the legislative  
            purpose of providing equity of access for students through  
            online course content. Over 1,700 students have enrolled in  
            online courses made available through this program." This bill  
            reestablishes 
            portions of the OCP program.  

           2)AB 294 (Daucher), Chapter 429, Statutes of 2003  , established  
            accountability provisions to ensure that schools participating  
            in this pilot program provide instructional services  
            equivalent to those in a traditional setting, including an  
            assessment of whether the pilot achieves its goals. It also  








                                                                  AB 837
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            required the Superintendent of Public Instruction to convene a  
            working group to assess the costs of offering online classroom  
            instruction. According to the SDE, the working group  
            determined there were benefits to offering classes online;  
            however, it could not resolve issues related to funding for  
            attendance and teacher/pupil relationships. 

            School districts are currently able to offer online classes  
            through independent study programs as long as they meet the  
            250 minute in-class instruction requirement. 

           3)Fiscal implications of the OCP program  . SDE's report  
            identifies several programmatic and fiscal barriers to  
            implementing this program. Including, a lack of start-up  
            funding and funding for required data and evaluation  
            components. 

            SDE's report also states "All districts maintain fiscal  
            records that will verify the cost of online program  
            implementation. Each district was asked to estimate whether  
            running an online class was more expensive, less expensive, or  
            about the same as that of a traditional class. In every case,  
            program contact replies indicated that running an online class  
            was either about the same or more expensive than running a  
            traditional class. An initial investment must be made for  
            necessary equipment, infrastructure, online content and  
            training to enable successful startup. Although the  
            development cost will decrease over time, there are recurring  
            costs associated with online delivery (as there are recurring  
            costs with traditional content delivery)." 

           4)Previous legislation  .  AB 2457 (Walters), which extended the  
            OCP program until 2012 was held on this committee's suspense  
            file in May 2008.  


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081