BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2027
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          Date of Hearing:   April 7, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
              AB 2027 (Blumenfield) - As Introduced:  February 17, 2010
           
          SUBJECT  :   Online education: school attendance

           SUMMARY  :   Relaxes the requirements placed on school districts  
          and county offices of education (COE) for calculating and  
          funding average daily attendance (ADA) for pupils enrolled for  
          at least the minimum day in classes that include both  
          in-classroom and online classes.    Specifically,  this bill  :

          1)Authorizes a school district or county office of education,  
            commencing in the 2011-12 fiscal year, to claim one day of  
            attendance toward average daily attendance on the basis of a  
            pupil's attendance at a class or classes in the  
            classroom-based setting on that day, if the pupil is enrolled  
            in grade 9, 10, 11, or 12, and is enrolled for at least the  
            minimum school day in classes that include both one or more  
            courses in a classroom-based setting and one or more courses  
            that are offered through an online program by a high school,  
            where each online course in which the pupil is enrolled is a  
            "high-quality" online course.

          2)Defines "high-quality" online course to mean an online course  
            that meets all of the following requirements:

             a)   The online course is approved by the governing board of  
               the school district, such that the online course is  
               certified, through board resolution, by the governing board  
               of the school district to meet these requirements.

             b)   The teacher of an online course is online and accessible  
               to the pupil on a daily basis to respond to pupil queries,  
               assign tasks, and dispense information, though the  
               teacher's interaction with the pupil may be asynchronous or  
               synchronous in nature.

             c)   The ratio of full-time equivalent certificated teachers  
               teaching through online instruction to pupils engaging in  
               that instruction is substantially equivalent to the ratio  
               of teachers to pupils in traditional in-classroom study of  
               the same subject matter.








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             d)   The teacher of the online course holds the appropriate  
               subject matter credential, and concurrently teaches the  
               same course to pupils in a traditional in-classroom setting  
               in the providing school district or did so at any time  
               within the immediately preceding two-year period.

             e)   The subject matter content for the online course is the  
               same as for the traditional classroom-based course.

             f)   The online course may be offered by a school district  
               contracting with another school district to provide the  
               online course to pupils of the offering school district.  
               Also requires contract terms to be determined by mutual  
               agreement of the school districts, and that school  
               districts that provide online courses pursuant to a  
               contract, only enter into an agreement directly with the  
               school district of the school site offering the online  
               course, and not with the pupils of the offering school  
               district.

             g)   All statewide testing results for pupils enrolled in the  
               online course are reported to the school district in which  
               the pupil is enrolled for regular in-classroom courses.

             h)   No pupil is assigned to the online course pursuant to  
               this section unless the pupil voluntarily elects to  
               participate in the online course and the parent or guardian  
               of the pupil provides written consent before the pupil  
               participates in an online course.

             i)   The school district of a school site that offers the  
               online course verifies that online pupils take examinations  
               by proctor or that other reliable methods are used to  
               ensure test integrity and that there is a clear record of  
               pupil work, using the same method of documentation and  
               assessment as in a classroom-based course of the same  
               subject matter.

             j)   The school district of a school site that offers the  
               online course maintains records to verify the time that a  
               pupil spends online and in related activities in which a  
               pupil is involved, and maintains records verifying the time  
               that the instructor is online.









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          3)Requires that pupil attendance accounted for under this  
            authorization be subject to audit as part of the local  
            educational agency's annual financial audit conducted pursuant  
            to Education Code Section 41020.

          4)Prohibits the waiver of any provision of this authorization,  
            unless the waiver is specifically authorized in statute.

          5)Requires the State Board of Education to submit, to the  
            Legislature and the Governor on or before July 1, 2012, a  
            report relating to online education, that includes, but is not  
            limited to, recommendations relating to:

             a)   Standards for online education.

             b)   The inclusion of online education in curriculum  
               frameworks to ensure that pupils have the opportunity to  
               experience online education.

             c)   Changes in the Education Code necessary to facilitate  
               online education opportunities.

           EXISTING LAW  :

          1)Allows any school district to offer high school online  
            classes, while claiming attendance credit, in a classroom  
            setting, through Independent Study (IS), in a charter school,  
            or to any pupil who is otherwise attending for the minimum  
            day.

          2)Allows any school district to offer online classes to any  
            pupil, if the district is not claiming attendance credit for  
            that class time.

          3)Establishes the minimum school day for a high school student  
            to be 240 instructional minutes in a classroom, in IS, or in a  
            combination of the two settings, and requires students taking  
            a combination to meet attendance standards for both the  
            classroom and IS courses in order for a district to claim a  
            pupil's attendance for funding purposes.

          4)Requires that pupils in grades 9 through 12 attend school for  
            at least 64,800 minutes per year in no less than 180 days,  
            which generally requires pupil attendance for an average of  
            360 minutes per day.








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           FISCAL EFFECT  :   According to an Assembly Appropriations  
          Committee analysis of a substantially similar bill in 2009,  
          potential on-going GF/98 revenue limit costs of $580,000, for  
          increased claims of ADA for providing online instruction to  
          pupils.  

           COMMENTS  :   School districts are already allowed to implement  
          and offer online courses, and many do.  There are four  
          situations under which districts are currently able to offer  
          online courses for high school pupils and still receive ADA  
          credit toward funding for that pupil's time in the same way the  
          district would if the pupil were not engaged in online  
          instruction.

          1)Pupils receiving online instruction in a classroom setting  
            with a certificated employee of the district supervising the  
            classroom.

          2)Pupils enrolled in IS; this enrollment can be full-time or  
            part-time, meaning that the pupil could be enrolled in regular  
            classroom courses and enrolled in IS only for the purpose of  
            taking the online course.

          3)Pupils who have met the minimum day requirement of 240 minutes  
            of classroom instruction; these pupils have already generated   
            a full day of ADA credit and could take the online course in  
            addition with no penalty or loss to the district's attendance   
            or funding calculations.  Note that pupils should be attending  
            school for an average of 360 minutes in order to meet the  
            yearly required minutes.

          4)Pupils enrolled in a charter school; less strict requirements  
            for funding and attendance accounting exist for charter  
            schools.

          The state has also experimented with opening other avenues for  
          districts to provide online coursework.  AB 885 (Daucher),  
          Chapter 801, Statutes of 2002, authorized participation by high  
          school students in the Online Classroom Pilot (OCP) program,  
          which allowed the use of an asynchronous, interactive (a teacher  
          and student interact online, but not necessarily at the same  
          time) curriculum as immediate supervision in order to count this  
          participation as instructional time for the purpose of  
          generating ADA and associated funding.  The pilot program was  








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          authorized until January 1, 2007, and was designed to monitor  
          and evaluate pupil participation in these online instructional  
          programs conducted over the Internet.  This pilot program  
          addressed the need to provide expanded educational opportunities  
          for pupils attending schools with limited educational offerings,  
          access to advanced placement courses where none were available,  
          and quality educational services in courses for hard-to-staff  
          subject areas in schools where a shortage of teachers existed.   
          Forty high schools in eleven school districts, with no more than  
          five schools per district, were initially selected for the pilot  
          through an application process administered the California  
          Department of Education (CDE); by statute, no more than fifteen  
          percent of the total enrollment of any of the school sites were  
          allowed to participate in the program.

          AB 885 grew out of the author's concerns over a school district  
          that had enrolled students in online courses and reported ADA  
          for those students; that ADA was disallowed upon audit because  
          the students were not under the immediate supervision of a  
          certificated teacher, were not in IS, and did not complete the  
          minimum day.  These infractions occurred at Canyon High School  
          in the Orange Unified School District; the district was also a  
          participant in the OCP program.

          In a report on the pilot program issued by the CDE, it was  
          reported that nine of the school districts continued as active  
          participants in OCP, offering courses such as Economics, Health,  
          Biology, and World History. The CDE reported that benefits of  
          OCP included more flexible student schedules and access to a  
          greater number of courses, including AP and other courses that  
          might not be offered in their school.  On the negative side, the  
          Department listed the restrictions imposed by the authorizing  
          legislation and "lack of funding," even though the online  
          courses were generating full ADA and revenue limit support.   
          Participating districts reported that online courses were more  
          expensive to operate than traditional classroom-based courses.   
          The CDE has also historically expressed concerns over attendance  
          accounting and teacher supervision for students in online  
          courses.  Related concerns exist over the inability of teachers  
          to know who, if anyone, is actually "attending" (i.e., online  
          and engaged in the coursework) in an online setting where the  
          student is not in visual range of the teacher as in a classroom  
          setting.  This would be a particular concern in an asynchronous  
          application, as was allowed by the OCP program, where the  
          teacher and the pupil are not required to be online at the same  








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          time.

          It is unfortunate that this pilot program required neither a  
          formal evaluation nor any analysis of measurable outcomes from  
          the program.  The required reporting by the CDE, while meeting  
          the statutory mandate, did not provide the kind of evaluative  
          analysis upon which a decision to renew or expand a previously  
          implemented program should be based.

          The author succinctly states the problem that the Legislature  
          has historically faced when considering legislation to expand  
          online education and the problem that this bill proposes to  
          address by stating that, "The current rules for attendance  
          accounting are complex and cumbersome for schools offering  
          students online instruction. The current methodologies for  
          attendance accounting create a disincentive for schools to offer  
          online courses."

          Background on attendance accounting:
          The immediate supervision of a certificated employee of the  
          school district (i.e., a teacher) not only lies at the heart of  
          the state's mechanism for delivering educational services, but  
          is also the foundation of the state's current attendance  
          accounting and revenue limit funding system.  The bulk of  
          funding for K-12 education in California is provided on the  
          basis of attendance, specifically average daily attendance  
          (ADA).  The more that a student attends class (within specified  
          daily minimums and maximums), the more credit toward ADA the  
          district receives, and the greater the level of funding provided  
          to that district.  Attendance in class is implicitly equated to  
          'time on task', so that districts are funded on the basis of  
          students being in class and, thus, on task.  The elimination of  
          immediate teacher supervision, as may occur in an online  
          educational setting, means that the state may have no mechanism  
          1) to ensure that the student is engaged in the coursework  
          (i.e., that the student is "attending" the class and that it is  
          the student that is "attending") and 2) to place a time value on  
          the student's 'time on task'.  From the perspective of  
          protecting the state's interest and ensuring that the state's  
          investment in education is spent directly on providing  
          educational services to students who are on task in terms of  
          learning, online delivery of instruction may not be able to  
          provide sufficient guarantees; certainly in the context of the  
          historical dependence on the immediate supervision of a teacher  
          to guarantee the state's interest, many online delivery  








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          approaches create problems.  

          The Legislature's unease with instructional circumstances  
          without immediate supervision was made clear by its decision to  
          not extend the OCP pilot program and with the passage of SB 740  
          (O'Connell), Chapter 892, Statutes of 2001, which limited  
          funding for charter schools that are primarily non-classroom  
          based.  The Legislature has consistently expressed a concern  
          over schools receiving funds in excess of what is required to  
          fund non-classroom based instruction, and over the extent and  
          intensity to which instruction is being delivered to pupils in  
          non-classroom based settings.  Currently, only in limited  
          circumstances (e.g., IS) are school districts funded for  
          instruction that occurs without a pupil being under the  
          immediate supervision of certificated staff, though in such  
          circumstances the pupil is always under the periodic supervision  
          of a teacher and there is a mechanism for calculating the  
          time-value of work completed by the student (in an IS setting,  
          that mechanism is detailed in the IS contract).  Such  
          circumstances are subject to rigorous requirements and  
          restrictions (e.g., requirements on student-teacher ratios,  
          teacher qualifications, curriculum and content, and student  
          assessment) beyond what is required in a classroom setting, and  
          have mechanisms to ensure the student's "attendance" and "time  
          on task".

          It should also be noted that the elimination of personal,  
          face-to-face contact between a teacher and student may also  
          present numerous risks to student learning, particularly for  
          students with special needs and students in need of remediation.  
           As was noted by Members of the Assembly Education Committee  
          during debate about online education at an earlier hearing this  
          year, the teacher-student relationship often provides more than  
          a simple mechanism for instructional delivery; an online  
          relationship may not allow the personal mentoring that may mean  
          more and have more impact on a student's life than the subject  
          matter that was taught and learned during that course.

          Rather than allowing flexibility in the provision of online  
          instruction in the context of IS or a pilot such as the OCP  
          program, this bill allows attendance credit for pupils enrolled  
          in a hybrid course schedule that includes one or more "high  
          quality" online course offerings and one or more courses taught  
          in a classroom setting; the bill also defines a "high quality"  
          online course as one that meets many of the same requirements on  








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          student-teacher ratios, teacher quality, evaluation of work  
          product, teacher-student interactions and course content that  
          are evident in IS or were required under the OCP program.  This  
          bill allows those online course offerings to be of a synchronous  
          nature, where the teacher and the student are online  
          simultaneously, or asynchronous nature, where the teacher checks  
          the student's work but is online at a different time.  In terms  
          of protecting the state's interests and investment in education,  
          asynchronous online courses clearly fail to meet any standard  
          that is close to what is satisfied by the "immediate  
          supervision" of a teacher.  In an asynchronous online course,  
          absent additional requirements that go well beyond the present  
          scope of this bill, there is no mechanism to 1) guarantee that  
          the enrolled student is "attending" any class period of the  
          course, or 2) place a time value on the work or attendance of  
          the student. This means that asynchronous online courses would  
          fail to meet the strict rules of attendance accounting that are  
          designed to protect against the misuse or misallocation of  
          public funds and that districts must adhere to in a manner that  
          passes scrutiny under rigorous audit.

          In a synchronous online course, an argument can be made that  
          there could be or are mechanisms to guarantee attendance of the  
          student and to place a time value on that attendance.  In a  
          classroom setting, immediate supervision (and the line-of-sight  
          connection between the teacher and student during that class  
          period) provides the mechanism to guarantee that the student is  
          attending and to validate the identity of that student.  In  
          addition, the implicit assumption in a classroom setting, that  
          is supervised by the teacher, is that the student is on-task  
          during the class period, provides a mechanism for valuing the  
          time that can be credited toward ADA - in a 50 minute class  
          period, a pupil generates 50 minutes of attendance credit toward  
          ADA.  If a line-of-sight connection was established between  
          teacher and student in a synchronous environment, then it could  
          be argued that the immediate supervision standard is met in that  
          the teacher could verify the attendance of the student, could  
          validate the identity of the student, and could ensure (as well  
          as in a classroom setting) that the student was on-task during  
          the class period.  Effectively a synchronous online course, with  
          line-of-sight capability that allows the teacher to see the  
          student, would provide that teacher with the same abilities with  
          respect to the requirements of attendance accounting that are  
          provided to a teacher in a classroom setting.









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          The usefulness of online curriculum and instruction is becoming  
          more apparent as delivery systems mature and more electronic  
          instructional materials are developed; the potential use of  
          online education in addressing issues regarding students with  
          low motivation, dropout and credit recovery, specialized  
          instruction including both advanced and remedial instruction,  
          and instruction in small school settings is also heartening.  It  
          appears that technology has brought us to a point where, in the  
          case of synchronous applications, the problems that arise  
          because of the interaction between online education and the  
          state's attendance accounting and funding systems can be  
          reconciled.  However, it is not yet clear how the state should  
          move forward to further authorize and fund other online K-12  
          educational applications, particularly those that are  
          asynchronous, 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, that the state's financial investment in a pupil's  
          education is served by online education, and that there are no  
          unintended consequences (e.g., inequities in access to online  
          instruction, loss of the speaking skills required in the  
          language arts standards, or losses in personal and social  
          skills) that might result from increasing this means of  
          delivering education services.

          Committee amendments:  In order to move the state forward in its  
          ability to provide online courses and online instruction,  
          Committee staff recommends that this bill be amended to do the  
          following:

          1)Broaden the scope of the bill to include charter schools.

          2)Broaden the scope of the bill to provide ADA credit for  
            student attendance in synchronous online courses, whether or  
            not the pupil is enrolled in one of more courses provided in a  
            classroom setting, as long as those courses:

             a)   Meet the conditions specified in the bill's definition  
               of a "high quality" online course.

             b)   Allow for a "line-of-sight" connection between the  
               teacher and the student that would allow the teacher to  
               take attendance in a manner substantially equivalent to  
               taking attendance in a classroom setting, and that would  
               allow for the teacher to immediately supervise the  








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               student's work and verify that the student was on-task at  
               any point in time.

          3)Clarify that attendance in "high quality" synchronous courses  
            counts toward a student's minimum day and minimum minutes  
            requirements.
          4)Delete any authorization for ADA credit for attendance in  
            asynchronous online courses.

          5)Clarify that this authorization for the purposes of  
                                                                                          calculating ADA is not to be interpreted as constituting  
            "classroom-based instruction" for the purposes of the charter  
            school funding determination made pursuant to the provisions  
            enacted by SB 740 (O'Connell), Chapter 892, Statutes of 2001.

          6)Require the SPI, in consultation with the Director of DOF, to  
            make revisions in the state's attendance accounting manual to  
            include attendance accounting procedures for high quality  
            asynchronous online courses and to make recommendations to the  
            Legislature regarding any statutory change that would be  
            necessary to authorize ADA credit for pupil attendance in  
            asynchronous courses.

          7)Make changes to the definition of a "high quality" online  
            course to account for small school issues, and to clarify  
            specific elements of the definition.

          8)Make technical changes to clarify and restructure parts of the  
            bill.

          9)Delete the requirement for the State Board of Education to  
            submit a report to the Legislature and Governor.

          Previous legislation: AB 837 (Torlakson), held under submission  
          in the Assembly Appropriations Committee in 2009, would have  
          relaxed the requirements placed on school districts, county  
          offices of education (COE) and charter schools for calculating  
          and funding average daily attendance (ADA) for pupils enrolled  
          for the minimum day in classes that include both a classroom  
          based setting and at least one class offered online. 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  








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          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 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 
           
          California Teachers Association
          Los Angeles Unified School District
          Riverside County Schools Advocacy Association
          San Diego County Office of Education (Sponsor)
          Santa Clara County Office of Education
          TechAmerica (Sponsor)
          TechNet (Sponsor)

           Opposition 








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          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087