BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1907
                                                                  Page  1

          Date of Hearing:   March 24, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                     AB 1907 (Cook) - As Amended:  March 16, 2010
           
          SUBJECT  :   Charter schools: instruction.

           SUMMARY  :  Retroactively exempts nonclassroom based charter  
          schools offering real-time synchronized instruction from the  
          requirements in the Education Code and regulations pertaining to  
          independent study, commencing in the 2005-06 fiscal year. 

           EXISTING LAW  : 

          1)Requires the teacher-student ratio in an independent study  
            charter school to be 25 to one or less.  (Education Code  
            51745.6)

          2)Specifies that a charter school is not eligible to receive  
            apportionments for independent study by pupils, unless it has  
            adopted and implemented written policies, that include the  
            following, among others:
             a)   The maximum length of time that may elapse between the  
               time an independent study assignment is made and the date  
               by which the pupil must complete the assigned work.
             b)   The number of missed assignments that will be allowed  
               before an evaluation is conducted to determine whether it  
               is in the best interests of the pupil to remain in  
               independent study.
             c)   A requirement that a current written agreement for each  
               independent study pupil shall be maintained on file.  
               (Education Code 51747)

          3)Specifies that a charter school is not eligible to receive  
            apportionment for independent study attendance by any pupil  
            who is not otherwise identified in the written records of the  
            district or county board by grade level, program placement,  
            and the school in which he or she is enrolled. (Education Code  
            51748)

          4)Requires nonclassroom-based instruction in charter school to  
            comply with the requirements of independent study pursuant to  
            Article 5.5 of Chapter 5 of Part 28. (California Code of  
            Regulation, Title 5, Section 11963.1)








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           FISCAL EFFECT  :  This bill is keyed non-fiscal; however, the  
          Assembly Appropriations Committee has requested to hear this  
          bill and it will be referred if passed by this committee. 

           COMMENTS  :   This bill seeks to retroactively exempt the Choice  
          2000 Online Charter School (Choice 2000), which is a  
          nonclassroom based online charter school, from existing laws  
          requiring nonclassroom based charter schools to operate as  
          independent study programs in order to determine their average  
          daily attendance (ADA).  

           Background on Choice 2000 & Audit Findings  .  In the 2005-06  
          fiscal year (FY) audit of Choice 2000, an audit finding was  
          reported on the basis that the nonclassroom-based charter school  
          was not in compliance with independent study requirements.   
          Based on this audit finding, 100% of the school's reported ADA  
          apportionment of $1.1 million for that FY was disallowed.  In  
          response, the school filed an appeal with the Audit Appeals  
          Panel. That appeal was denied by the Audit Appeals Panel.  In  
          the final appeal, an administrative law judge found the school  
          was in substantial compliance and made a recommendation to the  
          Audit Appeals Panel to overturn the initial denial.  The Audit  
          Appeals Panel did not accept the judgment made by the  
          administrative law judge and denied the final appeal.  Since  
          that time, Choice 2000 has filed a superior court lawsuit  
          challenging the Audit Appeals Panel and the state's regulation  
          requiring nonclassroom based charter schools comply with  
          independent study requirements.  This lawsuit is ongoing.

          Despite the audit finding in the 2005-06 FY and subsequent  
          advice from the California Department of Education (CDE) that as  
          a nonclassroom-based charter school, Choice 2000 must comply  
          with independent study requirements, the school continued to  
          operate without establishing student independent study  
          contracts.  As a result, the same audit finding was reported  
          again in the 2006-07 FY, 2007-08 FY and in the 2008-09 FY; and,  
          100% of the school's ADA apportionment in each of those years  
          was disallowed.  Currently the 2006-07 FY and 2007-08 FY audit  
          findings are under final appeal with the Audit Appeals Panel and  
          a hearing with an administrative law judge is scheduled in May.   
          The 2008-09 FY audit is currently the process of being certified  
          by the Controller. 

          In January 2010, Choice 2000 applied for a State Board of  








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          Education waiver of the independent study requirements for  
          nonclassroom-based charter schools.  The waiver request was  
          denied by the State Board.

          Based on the history of audit findings dating back to the  
          2005-06 FY and notice from CDE that Choice 2000 must comply with  
          the independent study requirements since that time, the  
          committee should consider whether it is appropriate to  
          retroactively authorize Choice 2000 to operate as a nonclassroom  
          based charter school and exempt the school from independent  
          study requirements.  The committee should note that granting  
          Choice 2000 this type of authorization will also relieve the  
          school of all fiscal penalties dating back to the 2005-06 FY,  
          despite the fact that they knowingly failed to comply with  
          independent study requirements.

           Background on Online Instruction  :  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 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 or if someone else is sitting behind the computer.   
          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.   
          Currently, only in limited circumstances (for example  
          Independent Study) are schools funded for instruction that  
          occurs without a pupil being under the immediate supervision of  
          certificated staff; such circumstances are subject to rigorous  
          requirements and restrictions; those requirements and  
          restrictions generally ensure instructional quality in terms of  
          issues such as student-teacher ratios, 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  








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          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 and that the state's financial investment in a  
          pupil's education is served by online education.

           Independent Study Requirements for Charter Schools  .  Charter  
          school independent study programs are required to maintain a 25  
          to one teacher to student ratio.  They are also required to  
          implement both a school-wide and individual student independent  
          study plan that outlines the parameters of the program, how  
          student performance will be evaluated, and how students are  
          expected to perform in order to stay in the program.  Attendance  
          accounting for independent study programs is based on the value  
          of the work performed by the student rather than actual student  
          attendance, since independent study programs are not classroom  
          based.

          If this bill is passed by the committee, Choice 2000 would not  
          required to operate as an independent study program, would not  
          be required to maintain the 25 to one teacher to student ratio,  
          and would not be required to develop a school-wide and  
          individual student independent study plan outlined above.  The  
          committee should consider whether it is appropriate to have  
          teacher to student ratios higher than 25 to one and whether the  
          school-wide and individual student independent study plan  
          benefits student learning, in an online educational environment.

          If this bill is passed by the committee, the committee should  
          also consider by what method Choice 2000 should account for  
          their ADA.  As a nonclassroom based charter school they are  
          exempt from the requirement that classroom based charter high  
          schools must provide students at least 80% of the 64,800 minutes  
          required to receive full ADA apportionment.  If they are not  
          participating in the independent study program that counts each  
          student's work product in lieu of attendance accounting, and  
          they are not required to provide students the minimum minutes of  
          instruction, how will they count their ADA?

          Choice 2000, which uses a synchronous instruction model, is  
          seeking legislation to retroactively relieve them of these  








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          additional requirements.  The committee should consider whether  
          it is appropriate to consider nonclassroom-based instruction  
          anything other than independent study, since the teacher cannot  
          visually supervise who is completing the coursework.  The  
          committee should also consider whether it is appropriate to  
          retroactively change state statute to eliminate financial  
          penalties an individual school faces due to their lack of  
          adherence to the law.

           Previous legislation  :  AB 837 (Torlakson) from 2009, which was  
          held in the Assembly Appropriations Committee, would have  
          established, beginning with the 2010-11 fiscal year, that a  
          school district or county office of education may claim average  
          daily attendance on the basis of a pupil's attendance at classes  
          in the classroom-based setting on that day, for the purpose of  
          learning online under certain circumstances. 

          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 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  








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          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 
           
          None on file.

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