BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 7, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                   AB 1909 (Nestande) - As Amended:  March 25, 2010
           
           [This bill has been double referred to the Assembly Higher  
          Education Committee and will be heard as it relates to the  
          issues under its jurisdiction.]
           
           SUBJECT:   Charter schools: community college governing boards.

           SUMMARY  :  Allows the governing board of a community college  
          district (CCD) to authorize a petition to establish a charter  
          school within the county in which the district maintains a  
          campus; specifies that a charter school petition shall be  
          eligible for consideration by a CCD if the petition encourages a  
          partnership between a charter school and the CCD; allows a  
          maximum of ten charter schools be authorized state-wide by the  
          California Community Colleges (CCC); requires these charter  
          schools to be funded directly; and, requires the California  
          Department of Education (CDE) to prepare an analysis of the  
          program by January 1, 2014.  Specifically,  this bill  :  

          1)Allows the governing board of a CCD to authorize a petition to  
            establish a charter school within the county in which the  
            district maintains a campus.

          2)Requires the governing board of a CCD that grants a charter  
            petition to assume all of the duties, responsibilities,  
            functions and obligations that the governing board of a school  
            district assumes when it grants a charter petition.

          3)Specifies that a charter school petition shall be eligible for  
            consideration if its intent is to provide an innovative  
            approach that maximizes the educational opportunities  
            available to secondary school students and encourages a  
            partnership between a charter school and the community college  
            district that advances scholastic, college-level and  
            career-technical coursework, prepares the student for the high  
            school exit examination, and as appropriate, provides English  
            as a second language, basic skills remediation and drop-out  
            prevention.  

          4)Requires the charter school petition to meet all of the  








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            following criteria:

             a)   The purpose of the charter school is to provide students  
               with at least one of the following opportunities:

              i)    A college readiness program that provides educational  
                enrichment in a collegiate atmosphere and allows the  
                student to receive college course credit that is  
                transferable to the California State University or the  
                University of California.

              ii)    A career or vocational education program that leads  
                to a degree or certificate in the subject area covered by  
                the curriculum.

             b)   The charter school creates a blend of classes that  
               provides the student with the opportunity to meet all high  
               school graduation requirements while benefiting from  
               community college level courses for credit that are  
               designated as part of the Intersegmental General Education  
               Transfer Curriculum or apply toward the general education  
               breadth requirements of the California State University.

             c)   The governing board of the community college district  
               adopts a resolution affirming that the district has the  
               capacity to provide this charter school opportunity without  
               detracting from its other services.

             d)   The charter school employs appropriately credentialed  
               teachers for all courses required for high school  
               graduation.

          5)Requires a charter school established pursuant to this section  
            to receive the state aid portion of the charter school's total  
            general-purpose entitlement, categorical block grant, other  
            state and federal categorical aid, and lottery funds directly;  
            specifies that the process for directly funding the charter  
            schools pursuant to this section shall follow the existing  
            process established in the Education code; specifies the  
            direct funding notification requirement shall be given by a  
            charter school established pursuant to this section to the  
            county superintendent of schools of the county in which the  
            charter school operates; and, specifies for the transfer of  
            funds in lieu of property taxes, the "sponsoring district"  
            shall be the school district in which the charter school is  








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            located. 

          6)Requires the governing board of a CCD that decides to commence  
            the petition approval process for a charter school to inform  
            the state board of education (SBE); specifies that once the  
            SBE receives notices from CCDs that the petition approval  
            process has commenced for no more than ten petitions, the  
            board shall inform the California Community Colleges that no  
            community college district may commence the petition approval  
            process for any additional petitions for a charter school;  
            requires a CCD to advise the SBE if the petition process  
            ceases before the petition is granted by a CCD and the CCD  
            does not intend to further pursue approval of the petition;  
            and, requires the SBE to allow an additional charter school to  
            be approved pursuant to this section.

          7)Requires, by January 1, 2014, the CDE to prepare an analysis  
            of the efficacy of CCDs authorizing petitions for charter  
            schools and provide the analysis to the SBE, the Governor, the  
            Chancellor of the California Community Colleges and the Senate  
            and Assembly Education Committees.

           EXISTING LAW  : 

          1)Establishes the Charter Schools Act of 1992 which authorizes a  
            school district, a county board of education or the SBE to  
            approve or deny a petition for a charter school to operate  
            independently from the existing school district structure as a  
            method of accomplishing, among other things, improved student  
            learning.  

          2)Establishes a process for the submission of a petition for the  
            establishment of a charter school.  Authorizes a petition,  
            identifying a single charter school to operate within the  
            geographical boundaries of the school district, to be  
            submitted to the school district.  Authorizes, if the  
            governing board of a school district denies a petition for the  
            establishment of a charter school, the petitioner to elect to  
            submit the petition to the county board of education.   
            Authorizes, if the county board of education denies the  
            charter, the petitioner to submit the petition to the SBE.   
            Authorizes a school that serves a countywide service to submit  
            the charter petition directly to the county office of  
            education.  Authorizes a school that serves a statewide  
            purpose to go directly to the SBE.








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          3)Authorizes a charter to be granted for not more than five  
            years.  Authorizes a charter granted by a school district,  
            county board of education or SBE to be granted one or more  
            renewals by that entity for five years.  Requires the renewals  
            and material revisions of the charter to be based on the same  
            standards for the original charter petition.

           FISCAL EFFECT :  Unknown 

           COMMENTS  :  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 4 statewide benefit charters and 8 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 usually created or  
          organized by a group of teachers, parents and community leaders,  
          a community-based organization, or an education management  
          organization.  Charter schools are authorized by school district  
          boards, county boards of education or the SBE.  A charter school  
          is generally exempt from most laws governing school districts,  
          except where specifically noted in the law.  Specific goals and  
          operating procedures for the charter school are detailed in an  
          agreement (or "charter") between the sponsoring board and  
          charter organizers.

           Current involvement of postsecondary education institutions in  
          charter schools  .  California's current system allows for  
          university involvement.  Several universities are already  
          involved in the operation of charter schools.  California State  
          University (CSU) Northridge operates closely with the Vaughn  
          Learning Center; CSU Dominguez Hills has a relationship with New  
          Millennium Charter School of Carson; CSU Fresno has the  
          University High School Charter located on their campus;  CSU  
          Sacramento has relationships with three charter schools in the  
          Sacramento Unified School District; CSU Santa Jose has a  
          relationship with Pacific Collegiate School in Santa Cruz; CSU  
          Los Angeles has partnered with and plays an active role in the  
          operation of at least two charter schools; UC San Diego has the  
          Preuss Charter School located on their campus; and, the  
          University of Southern California (USC) works with various  
          magnet schools and provides teacher and technical assistance to  
          several nearby inner-city charter schools.  The examples above  








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          demonstrate the ability of universities and colleges to have  
          close involvement and even partner with local school districts  
          to operate charter schools on their campuses, under the existing  
          charter authorizing laws.  With such extensive involvement in  
          charter schools already, why do community colleges need to be  
          charter authorizers to be involved with charter schools?   
           
           Higher education authorizers in other states  .  Currently there  
          are 15 states that allow multiple entities to authorize charter  
          schools.  A smaller number of states currently incorporate  
          higher education institutions into their charter authorizing  
          system.  The key difference is that universities and colleges  
          are often the primary authorizers of charter schools in most of  
          these states which include: Indiana, Michigan, Missouri, New  
          York, Ohio and Wisconsin.  In New York, charters are primarily  
          authorized by the State University of New York (SUNY) which may  
          authorize up to 100 schools.  In Michigan, the state's colleges  
          and universities monitor the majority of the charter schools.   
          In Missouri, charter schools are limited to St. Louis and Kansas  
          City, but public universities in both cities are allowed to  
          authorize charter schools.  
                             
           Would the California Community Colleges choose to authorize  
          charter schools  ?  It is not clear if CCCs will choose to become  
          charter school authorizers, especially since the measure  
          requires community colleges to assume all the responsibilities  
          of school districts when they authorize a charter school.  CCCs  
          are suffering budget reductions, and have been hit hard during  
          the current economic crisis.  Why would a CCC choose to  
          undertake a new and significant responsibility?  CCCs have  
          expertise in educating adults, the committee should consider  
          whether CCCs equally have the expertise and are adequately  
          prepared to educate children in grades K-12.

           College Ready versus Career Ready  .  This bill requires charter  
          schools seeking authorization by a CCD to either provide  
          students with a college readiness program  or  a career and  
          vocational education program,  or  to provide both types of  
          programs to students.  In recent years, an ongoing debate over  
          whether to encourage more college preparatory courses or more  
          career technical training has dominated the policy discourse  
          over high school graduation requirements, high school course  
          offerings and postsecondary education opportunities for pupils.   
          Recent research has highlighted the importance and benefits of  
          providing pupils sequenced and integrated coursework that  








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          combine core academics with technical courses related to a  
          specific field and thus end the debate on whether pupils should  
          be prepared for college  or  the workforce.  Students should be  
          prepared for both and not one or the other.  Preparing students  
          for the workforce and for college will ensure that students have  
          multiple options upon graduating from high school.  

          California is experiencing a renewed interest in providing  
          increased support for career technical education (CTE) in high  
          schools, and there is considerable interest in the issue of  
          reforming high schools and increasing CTE opportunities for  
          pupils.  Especially, since CTE has the potential of engaging  
          students who may be disengaged from school and at risk of  
          dropping out.  On the other hand there is also concern over the  
          continued under-representation of Latinos and African Americans  
          in institutions of higher education.  According to the  
          California Educational Opportunity Report, by the University of  
          California Los Angeles, Institute of Democracy, Education and  
          Access (UCLA/IDEA), "Over a million (1,049,414) California high  
          school students attend schools that do not offer enough A-G  
          courses for all students to take the college preparatory  
          curriculum. While over half of the high schools serving majority  
          white and Asian students lack sufficient A-G courses, more than  
          two-thirds of the high schools with a majority of  
          underrepresented students face this problem." 

          While proponents of CTE argue that not all students will go to  
          college upon high school graduation, the issue of providing  
          equal access to higher education opportunities is still an issue  
          of concern.  UCLA/IDEA and UC/ACCORD recently released a series  
          of research papers that examined the promise of providing high  
          school students "multiple pathways."  Multiple pathway programs  
          combine core academics with technical courses related to a  
          specific field.  The research suggests that the concept of  
          "multiple pathways" would end "the tired debate about whether  
          high school students need more rigorous academics or a more  
          relevant career-focused curriculum.  

          The committee should consider whether it is appropriate to allow  
          CCD authorized charter schools to choose to either provide  
          college readiness programs  or  provide career and vocational  
          education programs, or if they should be required to do both.

           Proposition 39 Obligations  .  Would this measure include  
          Proposition 39 obligations to provide appropriate facilities as  








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          well all oversight responsibilities?  Is it appropriate to give  
          charter authorizing power to community colleges if they are not  
          responsible for charter facility obligations?  This measure  
          would allow community colleges to authorize charter schools  
          within the boundaries of existing school districts, however, the  
          districts would not have any input into the charter  
          authorization process; and, would districts still be obligated  
          to provide furnished facilities for these new charters?  The  
          committee should consider if it is appropriate to grant  
          community colleges with the authorization to grant charter  
          schools without also taking on the facilities obligations of  
          those schools.
                     
          Charter Appeal Process  .  This bill does not specify an appeal  
          process for charter school petitions that CCDs deny.  According  
          Legislative Counsel, the existing appeal process for charter  
          petitions would not apply to CCD authorized charter schools,  
          because it is not specifically referenced in this bill.  This  
          makes sense, because it appears that the author's intent is to  
          only permit a total of 10 CCD authorized charter schools.  

          If the existing appeals process were to apply to the CCD charter  
          approval process, then a charter school petitioner that has a  
          petition denied by a CCD could appeal the decision to the county  
          office of education and to the SBE.  This would mean that many  
          more charter school petitions could be approved on appeal,  
          beyond the 10 initially authorized by statute.  This could also  
          put CCD's in an awkward position if a charter school petition  
          specifically names them as a possible partner with the charter  
          school, but the petition is approved by either the county office  
          of education or the SBE.

           Charter Approval Process  .  The bill specifies that CCD's shall  
          approve charter schools using the same process that currently  
          exists for school districts.  The existing charter approval  
          process requires a school district to approve a charter petition  
          unless it makes written factual findings that the petition has  
          not provided enough description on specified topics.  This  
          process has created a presumption of approval for charter  
          schools.  The committee should consider whether it is  
          appropriate to continue the presumption of approval for charter  
          petitions brought to CCDs in the same way as school districts.   
          If a CCD is unwilling or unable to do proper oversight of  
          charter schools, is it appropriate to have a presumption of  
          approval for CCDs to authorize and oversee charter schools?








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           Charter Petition Requirements  .  The bill states that a charter  
          petition submitted to a CCD must include a CCD adoption of a  
          resolution affirming the CCD has the capacity to provide this  
          charter school opportunity without detracting from its other  
          services.  It is unclear why the petition itself would need to  
          include this.  Is it the author's intent that a CCD shall not  
          commence the petition review process and/or authorize a charter  
          school unless it has adopted such a resolution?  Or is the  
          intent that the charter school must express interest in having  
          the CCD pass such a resolution?  The placement of this  
          requirement seems out of place and the author's intent is not  
          clear.

           What about Proposition 98 funding issues  ?  The bill requires  
          charters to be "direct-funded," which retains all Proposition 98  
          funds with the charter school.  No funds are allocated to the  
          community colleges.  This assumes that charter schools  
          authorized by these intuitions would then be required to set up  
          contracts with these entities for all oversight payments  
          necessary under existing law.  This bill will set up a system  
          where the state appropriates Proposition 98 funds to charter  
          schools, but these funds will ultimately be transferred to the  
          community college for oversight.  The bill also requires funds  
          to be transferred to the charter school in lieu of property  
          taxes.  Would this be an inappropriate cross over of the split  
          in Proposition 98 funding between K-12 and community colleges,  
          since resources allocated to K-12 will be shifted to the  
          community colleges?  

           Lack of Sunset Date  .  The bill requires the CDE to complete an  
          analysis of the community college authorization program by  
          January 1, 2014, but the bill does not have a sunset date.   
          Generally, an evaluation of a program accompanies a sunset date  
          so the Legislature can review the results of the program  
          evaluation while they consider whether or not to extend the  
          program.  The committee should consider whether to include a  
          sunset date for the program.

           Minimum criteria and safeguards should be established prior to,  
          or in conjunction with, expanding the pool of authorizers  .  In  
          their January 2004 publication "Assessing California's Charter  
          Schools" the Legislative Analyst's Office (LAO) made  
          recommendations regarding multiple authorizers.  They  
          recommended the Legislature modify charter school law to (1)  








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          permit school districts to opt out of charter authorizing, (2)  
          allow for multiple authorizers, and (3) create safeguards  
          against potential misconduct.  
                     
          To promote stronger accountability, the LAO recommended the  
          Legislature direct the CDE to develop basic criteria that  
          organizations must meet to become charter authorizers.  The CDE  
          would then be directed to submit these criteria back to the  
          Legislature in the following legislative session for review and  
          codification.  (At a minimum, the criteria should include an  
          understanding of contracts and fiscal management as well as  
          school assessment and accountability.)  These codified criteria  
          would provide the state the means by which to remove authorizing  
          power from a particular entity without having to institute a  
          complex licensing or regulatory process for approving charter  
          authorizers.  Should the committee consider adopting these basic  
          criteria before expanding the pool of authorizing entities?

           Arguments in Support  .  According to the sponsor of the bill, the  
          California Charter Schools Association, "Community Colleges  
          provide an often more solid foundation for the creation and  
          oversight of a charter school.  They are often incubators for  
          innovative and creative programs and in many ways are better  
          positioned to provide guidance and oversight for charter schools  
          that school districts cannot.  Community Colleges provide  
          linkages that can foster the development of model charter  
          schools.  Community colleges already provide overlap services  
          for young people who are enrolled in both high school and  
          community college."  

           Arguments in Opposition  .  The California Federation of Teachers  
          opposes the bill and argues, "First, California already provides  
          a plethora of opportunities for approval of charter schools  
          which includes local boards, county offices of education, and  
          the State Board of Education.  Second, the bill is not necessary  
          in order to further the idea of partnerships between higher  
          education and local schools, current law already provides great  
          opportunities.  Additionally, community colleges are not set up  
          to add to their charge K-12 education nor for the academic and  
          fiscal responsibility.  Finally, there is no evidence that shows  
          that charter schools as a group are any better at obtaining  
                                                      increased achievement as measured by state tests than  
          traditional public schools."  

          The California School Boards Association opposes the bill and  








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          argues, locally elected school board members play an important  
          role in the evaluation of charter school petitions.  School  
          board members are members of the community and understand the  
          needs of the student population.  Existing law focuses on these  
          assets - local accountability, experience, and expertise - on  
          the review of charter school petitions in the best interests of  
          students. Finally, the Center for Public Education recently  
          issued "Charter Schools: Finding Out the Facts."  Among the key  
          findings, this report notes that states with multiple  
          authorizers of charter petitions had the weakest student  
          achievement data for charter students when compared with  
          students at traditional public schools.  When petitioners are  
          able to go "shopping" for the authorizer most likely to approve  
          their petition, their programs may not be sufficiently rigorous.

           Previous legislation  :  AB 284 (Garrick) from 2010, which was  
          held in the Assembly Higher Education Committee at the request  
          of the author, would have allowed the governing board of a CCD  
          to authorize a petition to establish a charter school within the  
          county in which the district maintains a campus; authorized a  
          maximum of ten charter schools be accepted state-wide by the  
          CCC; required these charter schools to be funded directly; and,  
          required the CDE to prepare an analysis of the program by  
          January 1, 2013.

          AB 39 (Walters) from 2005, which was referred to the Assembly  
          Education Committee, was substantially similar to AB 2764  
          (Bates) from 2004.

          AB 2764 (Bates) from 2004, which was held on the Assembly  
          Appropriations Suspense File, would have authorized a pilot  
          project for the chancellor of a campus of the UC, the president  
          of a campus of the CSU, or the governing board of a community  
          college district to approve a petition submitted to establish a  
          charter school within the county in which that entity is located  
          or maintains a campus.  The pilot would have permitted each  
          segment of higher education to administer 1 charter school per  
          campus, not to exceed 10 charter schools per segment.  

          AB 1464 (Bates) from 2003, which was held in the Assembly  
          Education Committee at the request of the author, would have  
          authorized non-profit charitable organizations, the governing  
          body of a private university or college that offers a specified  
          teacher training program, the chancellor of a campus of the UC,  
          the president of a campus of the CSU, or the governing board of  








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          a community college district to approve a petition submitted to  
          establish a charter school within the county in which that  
          entity is located or maintains a campus.  The bill would have  
          also authorized the mayor of a city having a population of  
          250,000, or more, to approve a petition submitted to establish a  
          charter school within that city.  
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Charter Schools Association (Sponsor)

           Opposition 
           
          Association of California School Administrators
          Board of Governors of the California Community Colleges
          California Federation of Teachers
          California School Boards Association
          California School Employees Association
          Faculty Association of California Community Colleges

           
          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087