BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 7, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                     AB 1741 (Coto) - As Amended:  March 10, 2010
           
          SUBJECT  :   Public schools: persistently lowest-achieving schools

           SUMMARY  :   Requires a local educational agency (LEA) that  
          identifies a persistently lowest-achieving school (PLAS) and  
          chooses to implement a restart model, as described in federal  
          regulations, by converting the school or closing and reopening  
          the school under a charter school operator or a charter  
          management organization (CMO), to select a charter school  
          operator or CMO that demonstrates specified requirements  
          relative to meeting the needs of English learners (ELs).   
          Specifically,  this bill  :  

          1)Makes findings and declarations relative to enacted  
            legislation relative to school interventions for schools  
            identified as PLAS for purposes of implementing the federal  
            Race to the Top (RTTT) program and the deficiency of data  
            maintained about the success of ELs in charter schools.  

          2)Requires a LEA that identifies a PLAS and chooses to implement  
            a restart model, as described, by converting the school or  
            closing and reopening the school under a charter school  
            operator or a CMO, to select a charter school operator or CMO  
            that demonstrates all of the following: 

             a)   In its program design, the charter school has programs  
               and core courses in place to meet the language and cultural  
               needs of ELs;
             b)   The charter school has administrators and staff  
               qualified to teach ELs;
             c)   The charter school has a relevant outreach program that  
               reaches parents and assists them in being involved in the  
               school and in understanding how the charter school process  
               works; and,
             d)   Programs and staffing are designed to enable  
               non-English-speaking parents to participate fully as  
               partners in their children's education.

           EXISTING LAW  :









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          1)Requires the Superintendent of Public Instruction (SPI), with  
            the approval of the State Board of Education (SBE), to develop  
            and implement the Academic Performance Index (API) to measure  
            the performance of schools, and to include a variety of  
            indicators, including achievement test results, attendance  
            rates, and graduation rates in that measure.

          2)Provides that schools that failed to meet their API growth  
            targets in the previous school year relative to all other  
            public elementary, middle, or high schools, are invited by the  
            SPI to participate in the II/USP and the High Priority School  
            Grants Program.  If a participating school has not met its  
            growth targets each year and has failed to show significant  
            growth as determined by the SBE, it is deemed a  
            state-monitored school. The SPI, in consultation with the SBE,  
            is authorized to take specified action with respect to the  
            operation of a state-monitored school, including but not  
            limited to, requiring the school district to enter into a  
            contract with a school assistance and intervention team or a  
            district assistance and intervention team, reassigning  
            principals, allowing pupils to attend other schools in the  
            district, allowing parents to apply for charter status,  
            reassigning certificated staff, and closing a school.

          3)Defines, for purposes of the RTTT, a low-achieving school as a  
            school in Program Improvement (PI) under Title I of the  
            federal No Child Left Behind Act of 2001 (NCLB).

          4)Defines PLAS as the following:

             a)   The lowest 5% of the low-achieving schools (schools in  
               PI);
             b)   The lowest 5% of secondary schools, as measured by the  
               Academic Performance Index (API), that are eligible for,  
               but do not receive Title I funds;
             c)   Any high school with a graduation rate less than 60% in  
               each of the last three years; and,
             d)   Excludes, to the extent allowable under federal law,  
               specified special needs or alternative schools and those  
               schools that have experienced academic growth of at least  
               50 points on the API, unless the SPI and the SBE jointly  
               overrule that exclusion.  Also authorizes the SPI and SBE  
               to jointly exclude a community day school from this  
               definition.  









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          5)Requires the SPI to notify the governing board of a school  
            district, county superintendent of schools, or the governing  
            body of a charter school or its equivalent that one or more of  
            the schools in its jurisdiction have been identified as a  
            PLAS.

          6)Requires, for purposes of implementing the federal RTTT  
            program, the governing board of a school district, county  
            superintendent of schools or the governing body of a charter  
            school or its equivalent to implement, for any school  
            identified by the SPI as persistently lowest-achieving, unless  
            the SPI and the SBE determines, to the extent allowable under  
            federal law, that the school has implemented a reform within  
            the last two years that conforms to the RTTT required  
            interventions, one of the following four interventions for  
            turning around PLAS, as described in Appendix C of the Notice  
            of Final Priorities, Requirements, Definitions, Selection  
            Criteria for the RTTT program published in Volume 74 of Number  
            221 of the Federal Register on November 18, 2009:

             a)   The turnaround model;
             b)   The restart model; 
             c)   School closure; or,
             d)   The transformation model.

          7)Requires a governing board, superintendent of schools, or the  
            governing body of a charter school or its equivalent with one  
            or more PLAS to, prior to selecting one of the four  
            interventions, hold two public hearings to seek input from  
            staff, parents, and the community regarding the option or  
            options most suitable for the applicable school or schools in  
            its jurisdiction; at least one of those hearings is required  
            to be a regularly scheduled meeting, and at least one is  
            required to be held on the site of a school deemed to be  
            persistently lowest-achieving.

          8)Authorizes a school district, a county office of education or  
            the SBE to approve or deny a petition for a charter school.   
            Authorizes a charter to be granted for not more than five  
            years, and to be granted one or more renewals for five years.   
            Requires the renewals and material revisions of the charter to  
            be based upon the same standards as the original charter  
            petition.
           FISCAL EFFECT  :  Unknown 









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           COMMENTS  :  Earlier this year the Legislature passed and the  
          Governor signed into law SB 1 X5 (Steinberg), Chapter 2,  
          Statutes of 2009-10, Fifth Extraordinary Session, for purposes  
          of meeting part of the selection criteria of the federal RTTT  
          grant program.  The Legislation addressed the four reform areas  
          called for under the RTTT guidelines: standards and assessments,  
          data systems to support instruction, great teachers and leader  
          and turning around low performing schools.  

          Turning around PLAS is one of the four major components of the  
          RTTT, which requires states to have legal, statutory or  
          regulatory authority to intervene in schools, identify PLAS, and  
          show how the state will support LEAs identified as persistently  
          lowest-achieving in implementing one of the following four  
          intervention models: 

          1)Turnaround model:  Replace the principal and 50% of the  
            existing staff; implement strategies to recruit, place and  
            retain staff with the skills necessary to meet the needs of  
            students; use data to improve instructional program; provide  
            high-quality professional development that is aligned with the  
            school's instructional program; among others.
          2)Restart model:  Convert a school to a charter school, or close  
            and reopen a school under a charter school operator, a CMO, or  
            an education management organization (EMO).
          3)School closure:  Close a school and enroll the students in  
            other higher achieving schools in the LEA.
          4)Transformation model:  Similar to the Turnaround model,  
            replace the principal and develop strategies focusing on  
            principal and teacher effectiveness, instructional reform,  
            increasing learning time and creating community-oriented  
            schools, and providing operational flexibility and support.

          The RTTT criteria defines a CMO as a non-profit organization  
          that operates or manages charter schools by centralizing or  
          sharing certain functions and resources among schools, and an  
          EMO as a for-profit or non-profit organization that provides  
          "whole-school operation" services to an LEA.  Additionally the  
          criteria specify that a restart model must enroll, within the  
          grades it serves, any former student who wishes to attend the  
          school.

          The recently enacted RTTT legislation requires, for purposes of  
          implementing the federal RTTT that the bottom 5% of the State's  
          PLAS enter into one of four intervention models.  It is up to  








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          the governing board of the affected LEA to decide which  
          intervention model it will implement for any PLAS identified  
          within the LEA.  SB 1 X5 (Steinberg), Chapter 2, Statutes of  
          2009-10, Fifth Extraordinary Session, requires that two public  
          hearings be held regarding the intervention model that will be  
          implemented for the school.  Additionally, pursuant to SB 4 X5  
          (Romero), Chapter 3, Statutes of 2009-10, Fifth Extraordinary  
          Session, an additional 75 schools, not identified as PLAS, will  
          be allowed to implement one of the four RTTT intervention models  
          or the Alternative Governance reform described in the federal  
          NCLB if 50% of the parents at that school submit a petition  
          indicating they would like to use one of the intervention  
          models.  This bill does not apply to the latter set of schools.   
          It only affects the schools that would be identified to be in  
          the 5% PLAS.  

          This bill requires an LEA that has a school identified in the 5%  
          PLAS and chooses to implement the restart model as part of RTTT,  
          to select a charter school operator or CMO that demonstrates in  
          its program design the charter school has programs and core  
          courses in place to meet the language and cultural needs of ELs,  
          has administrators and staff qualified to teach ELs, a relevant  
          outreach program for parents, and programs and staffing designed  
          to enable non-English-speaking parent participation.  

          A charter school is usually created or organized by a group of  
          teachers, parents and community leaders, a community-based  
          organization, or an education management organization and they  
          bring a petition to an authorizing body for approval.  Charter  
          schools are authorized by school district boards, county boards  
          of education or the SBE.  Specific goals and operating  
          procedures for the charter school are detailed in an agreement  
          (or "charter") between the sponsoring board and charter  
          organizers.  Current law requires the petition to include a  
          description of the educational program for the pupils to be  
          enrolled in the charter school.  This bill requires an LEA to  
          select a charter school operator or CMO that demonstrates the  
          charter school has specific components in place.  Because  
          charter schools do not operate unless they are authorized, it is  
          not possible to know that a charter school has some of these  
          components in place until the school is actually operating.  It  
          appears that this bill assumes that a process - other than what  
          is in current law for starting or converting into a charter  
          school- would be followed by the LEAs that choose to implement  
          the restart model as part of the RTTT interventions.  However,  








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          nothing in current law indicates that a different process will  
          be followed by LEAs that choose to convert a PLAS to a charter  
          school or to close and reopen as a charter school for purposes  
          of implementing the RTTT program.  The author may wish to  
          consider that these components be addressed within a charter  
          petition.   Staff recommends  the bill be amended to provide for  
          the inclusion of the proposed elements in an initial charter  
          petition.

          This bill requires LEAs that implement the restart model under  
          the RTTT criteria to select on an operator or CMO based on  
          specific criteria.  The LEA is essentially required to select  
          only charter school operators or CMOs that demonstrate specific  
          elements relative to ELs.  This raises the question as to  
          whether a charter operator or CMO could be selected for  
          demonstrating the proposed requirements under this bill even  
          though the operator or CMO may be deficient in other aspects of  
          the educational program or other areas.  According to the  
          author's staff and the sponsor of this bill, Californians  
          Together, the intent of the bill is to allow for the inclusion  
          of the specified elements in a charter petition for  
          consideration and not to require the approval of charter  
          petitions that only meet the criteria proposed by this bill.   
           Staff recommends  the bill be amended to clarify the author's  
          intent which is to allow for the inclusion of the proposed  
          elements in a petition and to require LEAs to consider them.   
          The author may additionally wish to consider amending the bill  
          to require a charter operator or a CMO to describe the track  
          record of other schools it has operated with regard to special  
          programs for EL students and that LEAs consider this  
          information.  This approach does not require selection of a  
          charter operator or CMO based on specific elements but would  
          instead provide that a charter operator or CMO demonstrates its  
          ability to serve ELs in its charter petition and requires the  
          LEA to consider this information during the approval process.  

          ELs comprise approximately 25% of the student enrollment in the  
          State; nevertheless reports have shown that charter schools  
          enroll fewer ELs compared with noncharter schools.  A 2009  
          EdSource report on charter schools found that charter high  
          schools enroll 13% fewer students who are either ELs or  
          redesignated as fluent English proficient (RFEP) students  
          compared to noncharter schools; charter middle schools enroll EL  
          and RFEP students at a 7% lower rate than noncharter schools;  
          and charter elementary schools enroll 11% fewer English learner  








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          and RFEP students compared with noncharter schools.
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          A November 2009 report by The Civil Rights Project states,  
          "Without necessary safeguards against the segregating effects of  
          charter schools - already documented by the government in their  
          own charter school evaluations, in addition to research by other  
          scholars - families are left to comprehend and cope individually  
          with the complicated landscape of school choice. This is  
          challenging for families with limited resources, time, or  
          knowledge of the variety of educational options - even more so  
          for families "disadvantaged" by mainstream society, such as  
          having limited English proficiency or who dropped out of school  
          themselves."  This bill provides that one of the elements that  
          charter operators or CMOs would have to address in a petition to  
          operate one of the PLAS is demonstrating availability of a  
          parent outreach program and of programs and staffing that are  
          designed to enable non-English-speaking parents to participate  
          fully in their children's education.  

           Other suggested amendments  : The bill focuses on the language and  
          cultural needs of ELs but it does not specify that academic  
          achievement of ELs shall also be addressed by charter operators  
          or CMOs.   Staff recommends  an amendment to add academic  
          achievement of ELs to the elements that a charter school  
          operator or CMO shall include in the description of the initial  
          petition.  

          The bill requires an LEA that identifies a PLAS to take specific  
          actions, but the LEA does not identify PLAS.  The SPI is charged  
          with identifying these schools by following a specific  
          methodology.   Staff recommends  the bill be amended to clarify  
          this oversight.  

          The Civil Rights Project report also makes policy  
          recommendations with regard to segregation in charter schools.   
          They recommend that charter schools could "use many of the same  
          provisions that helped magnet schools use choice to increase  
          diversity.  These include providing full and extensive  
          information, outreach to all racial/ethnic, socioeconomic and  
          linguistic groups, no admissions/attendance/parent involvement  
          requirements, and free transportation."  They also recommend  
          that "tracking and publicly reporting basic information about  
          students should be a requirement for any school that receives  








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          public funding.  Charter schools should be evaluated to ensure  
          that they are enrolling, retaining, and graduating proportional  
          shares of students by race/ethnicity, EL status, socioeconomic  
          status, and students with disabilities as their surrounding  
          districts.  Schools could also be required to report the number  
          of students in different subgroups who apply to the charter  
          school compared to those who actually enroll, among schools that  
          are over-subscribed.  OCR [Office of Civil Rights] could and  
          should do this. The federal government should also reinstate its  
          former practice of providing annual reports on the state of  
          charter schools."  Additionally, staff notes that one of the  
          reviewers of California's RTTT application acknowledged that in  
          the RTTT application, "The State did not thoroughly address how  
          charters are encouraged to serve high-need students."

          Because this bill is seeking to ensure that charter schools are  
          able to serve ELs with appropriate programs to promote their  
          success, it may be appropriate to ensure that all charter  
          schools, and not just the PLAS that may potentially be converted  
          to charter schools, demonstrate that they will be able to serve  
          ELs.  As currently drafted, this bill creates different  
          standards for a subset of charter schools.  

          According to the California Department of Education (CDE), the  
          2008-09 count of operating charter schools is 746 with student  
          enrollment of more than 285,000 in this state.  This includes  
          four statewide benefit charters and eight SBE-approved charters.  
           Some charter schools are new, while others are conversions from  
          existing public schools.  Charter schools are part of the  
          state's public education system and are funded by public  
          dollars.  A charter school is generally exempt from most laws  
          governing school districts, except where specifically noted in  
          the law.  CDE data shows that statewide, 80% of charter schools  
          are start-up schools while 16% are conversions.

          The author states, "In California, charter school enrollment has  
          increased from 112,065 in 2001 to 238,226 in 2008.  Of these,  
          only 17% are English Learners, compared to 25% of the total  
          school population.  Little to no data are kept to reflect the  
          success of English Learners in charter schools.  EL's [sic] a  
          critical part of California's achievement gap.  The prospect  
          exists of using charter conversion to help a low achieving  
          school improve, and making matters worse in the process."  

           Arguments in support  :  Californians Together writes, "More than  








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          likely, English learners will be a significant percentage of  
          students enrolled in the 'persistently lowest achieving  
          schools.'  It is critical therefore that the public schools  
          choosing to convert to charter schools are prepared and equipped  
          to provide the programs and core courses designed for these  
          students.  AB 1741 (Coto) is a proactive approach ensuring  
          academic success for English learners."

          The Association of California School Administrators has a  
          "support if amended" position on this bill and writes, "The  
          Association of California School Administrators (ACSA) support  
          AB 1741  if amended  to include serving students with  
          disabilities."

           Related legislation  :  AB 1950 (Brownley) requires enhanced  
          charter school fiscal and academic accountability standards.  AB  
          1950 is pending in the Assembly Education Committee. 

          AB 2320 (Swanson) requires charter school petitions to describe  
          the different and innovative teaching methods the school will  
          use, how the school will provide vigorous competition and  
          stimulate continual improvements within the public school  
          system, and the means by which the school will achieve a balance  
          of pupils who live in poverty, are English learners or are  
          individuals with exceptional needs; deletes the authorization  
          for the state board of education (SBE) to approve charter school  
          petitions on appeal; and, limits state wide benefit charter  
          schools to those that partner with specific entities.  AB 2320  
          is pending in the Assembly Education Committee

          AB 2363 (Mendoza) requires, in addition to the existing  
          signature requirements for charter school petitions, a charter  
          school petition to include signatures from at least 50% of the  
          number of classified employees the petitioner estimates that  
          will be employed by the charter school in the first year of  
          operation; requires a conversion charter school petition to  
          include 50% of the permanent classified employees currently  
          employed at the school that is to be converted to a charter  
          school; and, requires the signature petition to prominently  
          display a statement that the classified employee has a  
          meaningful interest in working at the charter school.  AB 2363  
          is pending in the Assembly Education Committee

           Previous legislation  : SB 1 X5 (Steinberg), Chapter 2, Statutes  
                                                                     of 2009-10, Fifth Extraordinary Session, proposes comprehensive  








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          changes to the Education Code (EC) consistent with the federal  
          Race to the Top (RTTT) program; this bill addresses the four  
          RTTT policy reform areas of standards and assessments, data  
          systems to support instruction, great teachers and leaders and  
          turning around the lowest-achieving schools.

          SB 4 X5 (Romero), Chapter 3, Statutes of 2009-10, Fifth  
          Extraordinary Session, establishes an Open Enrollment Program,  
          which authorizes a pupil enrolled in a low achieving school, as  
          defined, to attend any higher achieving school in the state; and  
          establishes a Parent Empowerment Program that authorizes parents  
          of specified schools to sign a petition requiring a local  
          educational agency (LEA) to implement a school intervention  
          model, as specified.

          AB 8 X5 (Brownley) from 2009 proposed comprehensive changes to  
          the Education Code consistent with the federal Race to the Top  
          (RTTT) program; this bill addressed the four RTTT policy reform  
          areas of standards and assessments, data systems to support  
          instruction, great teachers and leaders and turning around the  
          lowest-achieving schools. Deleted the statewide charter school  
          cap; proposed enhanced charter school fiscal and academic  
          accountability standards.  This bill was held in the Senate  
          Education Committee at the request of the author. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Californians Together (Sponsor)
          Association of California School Administrators (If amended)
          California Association for Bilingual Education
          California Federation of Teachers
          California Teachers Association 
          Public Advocates 
          United Teachers of Los Angeles
          Several individuals 

           Opposition 
           
          California Charter Schools Association 
          
          Analysis Prepared by  :    Marisol Avi?a / ED. / (916) 319-2087 










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