BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1407
                                                                  Page  1

          Date of Hearing:   April 15, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                AB 1407 (Huffman) - As Introduced:  February 27, 2009
           
          SUBJECT  :   Pupil attendance: interdistrict transfers.

           SUMMARY :   An urgency measure that extends the sunset and repeal  
          date for the School Districts of Choice program from July 1,  
          2009 to July 1, 2014 and January 1, 2010 to January 1, 2015,  
          respectively.  

           EXISTING LAW  :  

           1)Main interdistrict transfer authorization.  The main  
            authorization provides for inter-district attendance when both  
            the district of residence and district of proposed attendance  
            agree.  This process allows the parent or guardian of a pupil  
            requesting inter-district attendance to appeal to the County  
            Board of Education in the event that either district refuses  
            the requested transfer.  (Education Code Section 46600)

          2)"  School Districts of Choice.  " Under this authorization,  
            established by AB 19 (Quackenbush), Chapter 160, Statutes of  
            1993, a school board may declare the district to be a  
            "District of Choice" willing to accept a specified number of  
            inter-district transfers.  A "District of Choice" is not  
            required to admit pupils but it is required to select those  
            pupils that it does elect to admit through a random process  
            that does not choose pupils based upon academic or athletic  
            talent.  Either the district of residence or district of  
            choice may prevent a transfer under this law if the transfer  
            would exacerbate racial segregation.  Each district of choice  
            is required to keep records of: 1) The number of requests  
            granted, denied, or withdrawn as well as the reasons for the  
            denials; 2) The number of pupils transferred out of the  
            district; and, 3) The number of pupils transferred into the  
            district.  Districts are required to report this information  
            to the Superintendent of Public Instruction (SPI) annually,  
            and the SPI is required to make the information available to  
            the Governor, the Legislature, and the public annually before  
            April 1.  This section is scheduled to sunset July 1, 2009.   
            (Education Code Section 48300)









                                                                  AB 1407
                                                                  Page  2

           3)Residency requirements for school attendance  . This is an  
            alternative attendance authorization, not necessarily an  
            interdistrict transfer because no interdistrict transfer  
            agreement is established.  Under this section, an elementary  
            pupil is authorized to attend school in a district where the  
            pupil's parent works, rather than where the pupil and parent  
            reside, however, the district is not required to admit the  
            pupil to its schools.  Either the sending district or  
            receiving district may prevent a transfer under this law if  
            the transfer would exacerbate racial segregation.  Once  
            established on the basis of parental employment, this  
            authorization allows a parent to maintain a pupil's enrollment  
            through the 12th grade. This section is scheduled to sunset on  
            July 1, 2012.  (Education Code Section 48204(b))

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background on "District of Choice" law.  Under the  
          District of Choice law, the governing board of any school  
          district may declare the district to be a "District of Choice"  
          willing to accept a specified number of inter-district  
          transfers.  A "District of Choice" is not required to admit  
          pupils but is required to select those pupils that it does elect  
          to admit through a random process and they are prohibited from  
          choosing pupils based upon academic or athletic talent.  

           Differences between the District of Choice program and other  
          interdistrict transfer options  . Unlike the main interdistrict  
          transfer law, the District of Choice law does not require  
          agreement between the district of residence and the receiving  
          district in order for the receiving district (District of  
          Choice) to admit interdistrict transfers.  The district of  
          residence has little say in the transfer process except,  
          districts with 50,000 or less average daily attendance (ADA) may  
          limit the maximum number of transfers each year to 3% of their  
          ADA and may limit transfers for the duration of the program to  
          10% of their ADA.  Districts with more than 50,000 pupils in  
          attendance may refuse to transfer more than 1% of their ADA.  A  
          district of residence may also prevent a transfer under this law  
          if the transfer would have a negative impact on a court-ordered  
          or voluntary desegregation plan or the racial and ethnic balance  
          of the district.  
           
          Other differences:
          A District of Choice that is also a basic aid district is  








                                                                  AB 1407
                                                                  Page  3

          apportioned 70% of the amount the state revenue limit for ADA  
          that otherwise would have gone to the district of residence (the  
          remaining 30% is a savings in revenue for the state).

          Transfer priority is given to the siblings of transfer students  
          already attending school in the District of Choice.

          Students with special needs are admitted despite additional  
          incurred costs unless the transfer of those students would  
          require the creation of a new program.
                     
          Districts of Choice data is difficult to track  .  Under current  
          law, districts establish themselves as a District of Choice by  
          adopting a local school board resolution.  Data collection on  
          Districts of Choice and the numbers of transfers they accept or  
          deny began in 2008 and this data is required to be reported to  
          the Legislature by the SPI by April 1st each year. 

          SB 80 (Committee on Budget and Fiscal Review), Chapter 174,  
          Statutes of 2007, required the California Department of  
          Education (CDE) to report to the Legislature by November 30,  
          2008 on the effectiveness of the interdistrict transfer program  
          using data provided by school districts to the Superintendent of  
          Public Instruction on the disposition of all interdistrict  
          transfer requests.  CDE did not provide the complete report due  
          to lack of funding.  In lieu of the report, CDE conducted a  
          survey of 100 schools that receive the most inter-district  
          transfers in the state and found only 3 districts that have  
          elected to declare themselves a "District of Choice."  It's  
          important to note the survey was not a complete assessment of  
          all school Districts of Choice.  The CDE report recommends,  
          however, "Given that only 3.9 percent of the responding  
          districts indicated an active participation in the District of  
          Choice program, it seems to be a small program with very limited  
          impact.  The CDE sees no significant negative consequences to  
          the program's lapse as scheduled for July 1, 2009."

          Interestingly, in a report done by the CDE in 2003, the only  
          solid indicator of a district being a District of Choice was if  
          the district was a basic aid district that received state  
          apportionment for its transfer students.  CDE had to use  
          district self-identification and a survey done by the California  
          Association of School Business Officials to determine the total  
          number or Districts of Choice.  As of 2002, CDE was able to  
          identify 18 small, mostly rural districts as Districts of  








                                                                  AB 1407
                                                                  Page  4

          Choice.  One-half of these districts were basic aid districts.   
          In 2007, it was reported that there were 11 basic aid districts  
          that were Districts of Choice, according to CDE.

          According to the author, the bill extends, not repeals, the  
          sunset date to give the Legislature the opportunity to evaluate  
          the effectiveness of the program since the Department of  
          Education has yet to provide the data required under SB 80  
          (Committee on Budget and Fiscal Review) from 2008.

           Committee Amendment  :  Staff recommends the bill be amended to  
          revise the date by which a study is due to the Legislature by  
          CDE.  The study should include a census of school districts to  
          determine the number of districts that are currently electing to  
          be Districts of Choice and the number of students electing to  
          attend districts due to this provision of law. 

           Related legislation  .  SB 129 (Huff) from 2009 would eliminate  
          the sunset and repeal dates for the District of Choice program  
          and would eliminate the ban on new districts electing to become  
          Districts of Choice.   This bill is pending in the Senate  
          Education Committee.  

          Previous legislation  .  AB 270 (Huff) from 2007 extended the  
          authority for "School District of Choice" inter-district  
          transfers from July 1, 2007 to July 1, 2009, prohibited  
          additional districts from becoming "School Districts of Choice,"  
          and required school districts (electing to accept transfers) to  
          maintain records on the number of requests it receives and  
          annually report the number of requests it receives to the SPI.   
          The language in this bill was incorporated into SB 80 (Committee  
          on Budget and Fiscal Review), Chapter 174, Statutes of 2007.

          AB 97 (Nation), Chapter 21, Statutes of 2004, extended the  
          sunset date for one year for the school District of Choice  
          authorization and required the Superintendent of Public  
          Instruction to continue the calculation for the Special  
          Disabilities Adjustment using the current incidence multiplier  
          to allow special education local plan areas to continue to  
          receive funds provided through 2003-04 until a new multiplier is  
          calculated.

          AB 1993 (Quackenbush), Chapter 160, Statutes of 1993,  
          established school District of Choice and allowed the governing  
          board of any school district to declare the district to be a  








                                                                  AB 1407
                                                                  Page  5

          "District of Choice" willing to accept a specified number of  
          inter-district transfers.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles County Office of Education
          San Rafael High School District

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