BILL ANALYSIS                                                                                                                                                                                                    






                          SENATE COMMITTEE ON EDUCATION
                               Gloria Romero, Chair
                            2009-2010 Regular Session
                                         

          BILL NO:       AB 1982
          AUTHOR:        Ammiano
          AMENDED:       May 20, 2010
          FISCAL COMM:   No             HEARING DATE:  June 30, 2010
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Charter schools
          
           SUMMARY   

          This bill establishes until December 31, 2016, a state-wide  
          cap of 1450 on the number of charter schools that can operate  
          and prohibits charter schools personnel with hiring authority  
          from employing relatives.

           BACKGROUND  

          Existing law, the Charter Schools Act of 1992, provides for  
          the establishment of Charter schools in California for the  
          purpose, among other things, of improving student learning  
          and expanding learning experiences for pupils who are  
          identified as academically low achieving.  Charter schools  
          may be authorized by a school district governing board,  
          county board of education, or the State Board of Education.   
          Existing law allows up to 100 start up or conversion charter  
          schools to be authorized each year.  (Education Code  47601  
          et. seq.)  

          Existing law authorizes anyone to develop, circulate, and  
          submit a petition to establish a charter school, and requires  
          charter developers to collect certain signatures in support  
          of the petition, as specified.  Current law requires  
          governing boards to grant a charter if it is satisfied that  
          the charter is consistent with sound educational practice.  A  
          governing board is precluded from denying a petition unless  
          it makes written factual findings that the petition fails to  
          meet one or more of the following:  (Education Code  47605)   








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          1)   The charter school presents an unsound educational  
               program.  

          2)   The petitioners are demonstrably unlikely to  
               successfully implement the program described in the  
               petition.  

          3)   The petition does not contain the number of required  
               signatures.  

          4)   The petition does not contain an affirmation it will be  
               nonsectarian, nondiscriminatory, shall not charge  
               tuition, and other affirmations, as specified.  

          5)   The petition does not contain reasonably comprehensive  
               descriptions of the 16 required elements of a charter  
               petition, including descriptions of the qualifications  
               to be met by individuals to be employed at the school.  

           ANALYSIS  

           This bill  :

          1)   Specifies that in the 2010-11 school year, and in each  
               successive school year thereafter, the maximum total  
               number of charter schools authorized to operate in  
               California is 1450.  Specifies that the cap is to remain  
               in effect until December 31, 2016, and repeals the cap  
               as of that date.  

          2)   Prohibits specified personnel that work for a charter  
               school operated by a private entity, from appointing,  
               employing, promoting, advancing, or advocating for the  
               appointment, employment, promotion, or advancement in or  
               to a position in the charter school over which the  
               charter school personnel exercise jurisdiction or  
               control, any individual who is a relative.  

          3)   Specifies that an individual shall not be appointed,  
               employed, promoted, or advanced in or to a position in a  
               charter school if the appointment, employment,  
               promotion, or advancement was advocated by charter  
               school personnel who serve in or exercise jurisdiction  
               or control over the charter school and who is a relative  
               of the individual, or if the appointment, employment,  




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               promotion, or advancement is made by the governing body  
               of which a relative of the individual is a member.  

          4)   Requires a petition for a charter school to include full  
               disclosure of the identity of each individual who is or  
               plans to be employed by the charter school and who is a  
               relative of charter school personnel as defined.  

          5)   Specifies that a "position in a charter school" includes  
               contracts for services for the benefit of a charter  
               school.

          6)   Defines "charter school personnel" to include the  
               charter school owner, president, chairperson of the  
               governing body, superintendent, governing body member,  
               principal, assistant principal, or any other person  
               employed by the charter school who has equivalent  
               decision making authority.  

          7)   Defines "relative" as a parent, child, sibling, uncle,  
               aunt, first cousin, nephew, niece, spouse,  
               father-in-law, mother-in-law, son-in-law,  
               daughter-in-law, brother-in-law, sister-in-law,  
               stepparent, stepsibling, stepchild, half brother or half  
               sister.  

           STAFF COMMENTS  

           1)   Need for the bill  :  According to the author's office,  
               "many reports, including a recent report by the Center  
               for Research and Education Outcomes (CREDO) demonstrate  
               that charter schools are not the panacea for closing the  
               achievement gap."  The CREDO study based on longitudinal  
               student achievement data in 15 states and the District  
               of Columbia, including California also found that only  
               17 percent of charter schools performed better than  
               their traditional counterparts.  According to the  
               sponsor of this bill, the California Federation of  
               Teachers (CFT), the bill "primarily puts a cap on the  
               number of charter schools and ends the unlimited growth  
               that charter schools currently enjoy with a lack of true  
               accountability."

           2)   Charter Schools  .  Charter schools are public schools  
               that provide instruction in any combination of grades,  
               kindergarten through grade 12.  According to the  




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               California Department of Education (CDE), there are 870  
               active and pending charter schools (fifty-one of these  
               schools are "pending" because they will not claim  
               funding until the 2010-11 school year).  Of the 870  
               charter schools, 25 currently operate based on SBE  
               approval.

          Parents, teachers, or community members may initiate a  
               charter petition, which is typically presented to and  
               approved by a local school district governing board.   
               The law also allows, under certain circumstances, for  
               county boards of education and the State board of  
               Education to authorize charter schools.  The specific  
               goals and operating procedures for a charter school are  
               detailed in the agreement (charter) between the  
               authorizing entity and the charter developer.  Current  
               law establishes 16 different operational and educational  
               quality indicators that need to be included in a charter  
               school petition.  A governing board may deny a charter  
               school proposal that does not comprehensively address  
               each of those 16 elements.  

          Except where specifically noted, charter schools are exempt  
               from laws governing school districts and schools in  
               order to allow the charter school the flexibility to  
               innovate and be responsive to the educational needs of  
               the student population served.  Charter schools are  
               required however, to have credentialed teachers in core  
               and college preparatory courses, meet statewide  
               standards, participate in state testing programs  
               required for the Academic Performance Index (API), and  
               consult with parents, guardians, and teachers regarding  
               the school's programs.  

           3)   Charter school cap  .  The Charter School Act of 1992  
               provided for the establishment of 100 charter schools in  
               California.  Subsequent legislation, AB 544 (Lempert,  
               Chapter 34, Statutes of 1998) increased the total  
               charter school cap from 100 to 250 in the 1998-99 school  
               year and an additional 100 added each year thereafter.   
               According to the California Department of Education  
               (CDE), there are approximately 870 active and pending  
               charter schools (fifty-one of these schools are  
               considered "pending" because they will not claim funding  
               until the 2010-11 school year), well under the statutory  
               limit of 1350 for the 2009-10 school year.  This bill  




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               would provide that the maximum number of charter schools  
               for the 2010-11 through 2015-16 school years would be  
               1450.  Absent this bill, the law would allow up to 1950  
               charter schools by the end of the 2015-16 school year.  

          In the last 10 years, on average, there were 86 charter  
               schools approved each year.  If this same rate of  
               approval continues in the future, one could estimate  
               that the cap of 1450 established by this bill would be  
               reached on the natural during the 2016-17 school year.   
               The sunset date for the charter school cap that is  
               included in this bill would likely coincide with the  
               time that the cap is reached.  

          In recent years, state and federal policies have supported  
               the expansion of charter schools.  The federal Race to  
               the Top incentive grant program (RTTP), for which  
               California submitted a second application on June 1,  
               2010, awards points to states that ensure successful  
               conditions for high-performing charter schools,  
               specifically, the extent to which the state's charter  
               school laws do not prohibit or effectively inhibit  
               increasing the number of high-performing charter  
               schools.  Although proponents of this measure argue that  
               1450 is well above the number of charter schools that  
               the U.S. Department of Education claims is the number  
               needed for educational reform, could the establishment  
               of a total cap "send the wrong message" to grant readers  
               and make it more difficult for California to be  
               successful in the second RTTP grant round or subsequent  
               federal incentive programs?  

           4)   Nepotism  .  According to the CFT, "there are groups,  
               foundations, and charter management organizations that  
               are using charter schools as a way to privatize public  
               schools, accessing tax payer money for the use and  
               access of a few.  For many, charter schools have become  
               a place to be the exception to the rules:  rules of  
               accountability, public transparency, workers' rights and  
               most importantly students' rights.  They should not be  
               exempted from public employment practices.  They should  
               be financially responsible and transparent." 

          This bill establishes anti-nepotism employment standards for  
               charter schools.  The provisions in this bill model  
               existing charter school law in Florida regarding  




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               employment prohibitions and disclosure.  Florida's  
               charter law requires an initial petition for a charter  
               school to include full disclosure of any relatives that  
               have been hired by the decision makers at the school,  
               and it prohibits decision makers at operational charter  
               schools from hiring relatives.  While an argument can be  
               made that as recipients of public funds, charter school  
               operators and personnel who are in decision-making  
               positions should abide by the same conflict-of-interest  
               rules as other school officials, they raise a number of  
               questions the Committee may wish to consider:  


                        Are these standards too restrictive?  

                        Could a charter school end up spending more  
                    money than it needs to on a contract for services  
                    if the lowest bidder happens to be related to  
                    someone on the governing body?  What happens if the  
                    contractor is the only one in the area who can  
                    provide the needed service?

                        Would the employment restrictions apply to  
                    non-classroom based charter schools?

                        How would these restrictions affect existing  
                    charters that may already have contracts in place  
                    or employees that could be disqualified under the  
                    provisions of this bill?  

                        Do the disclosures required for the petition  
                    create a barrier for the approval of a charter  
                    school?  

           1)   Related and prior legislation  .  

          AB 1950 (Brownley), which is scheduled to be heard by this  
               Committee on June 30, 2010, establishes academic and  
               fiscal accountability standards relating to charter  
               schools.  

          AB 1741 (Coto), requires charter schools that expect 15% of  
               their pupil population to be English learners to meet  
               additional petition requirements relating to the  
               education of those students.  The Committee passed this  
               bill as amended on a 5-0 vote on June 23, 2010.




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          AB 2363 (Mendoza), requires charter school petitioners to  
               obtain the signatures of permanent classified employees,  
               as specified.  The Committee was held in Committee on  
               June 16, 2010 and is scheduled for "vote only" on June  
               30, 2010.  

          AB 572 (Brownley, 2009) makes a charter school board subject  
               to the Brown Act open meeting law, the California Public  
               Records Act, and the Political Reform Act.  This bill  
               was passed by this Committee on a 6-1 vote is in the  
               Senate inactive file.  

          ABX5 8 (Brownley, Fifth extraordinary session of 2009) would  
               have deleted the cap on charter schools and would have  
               made other changes to provisions governing audit and  
               fiscal standards, authorization, renewal and revocation  
               of charter schools.  This bill was held in Committee. 

          AB 1772 (Garcia, 2008) would have established a conflict of  
               interest standard based on the Corporations Code for  
               school boards.  




               AB 2115 (Mullin, 2008) would have established a conflict  
               of interest standard and would have prohibited employees  
               from serving on governing boards of charter schools.   
               This measure was passed by this Committee on a 6-2 vote  
               and subsequently vetoed by the Governor with the  
               following statement:  

                    "Not only would this bill create state mandated  
                    costs for charter schools to comply with its  
                    provisions, the measure runs counter to the intent  
                    of charter schools, which were created to be free  
                    from many of the laws governing school districts."   


           2)   Policy arguments  .  

          Proponents of this measure maintain that AB 1982 establishes  
               a reasonable cap on charter schools while making changes  
               to charter school laws that take the first step in  
               making them accountable to students, parents and the  




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               public.  

          Opponents of this measure argue that the bill reinstates a  
               firm cap on charter schools that serves no practical  
               purpose and is unnecessarily restrictive in prohibiting  
               private entities that operate a charter from employing  
               relatives of charter school personnel.  

           SUPPORT
           
          California Federation of Teachers
          California Labor Federation
          California School Boards Association
          California School Employees Association
          California State PTA
          California Teachers Association
          San Francisco Unified School District

           OPPOSITION
           
          California Charter Schools Association