BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 2027 (Blumenfield and Cook)
          As Amended  May 28, 2010
          Majority vote 

           EDUCATION           9-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Brownley, Nestande,       |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Ammiano, Arambula,        |     |Bradford, Charles         |
          |     |Carter, Eng, Miller,      |     |Calderon, Coto, Davis,    |
          |     |Norby, Torlakson          |     |Monning, Ruskin, Harkey,  |
          |     |                          |     |Miller, Nielsen, Norby,   |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Relaxes the requirements placed on school districts,  
          county offices of education and charter schools for calculating  
          and funding average daily attendance (ADA) for pupils enrolled  
          in online classes.  Specifically,  this bill :

          1)Authorizes a school district, county office of education or  
            charter school, commencing in fiscal year (FY) 2011-12, to  
            claim one day of attendance toward average daily attendance on  
            the basis of a pupil's attendance in an online class or  
            classes on that day if the pupil is enrolled in grade 9, 10,  
            11, or 12; is enrolled in classes in a classroom-based  
            setting, offered through an online program, or both; meets  
            minimum instructional time requirements; and, where each  
            online course in which the pupil is enrolled is a  
            "high-quality" online course.

          2)Defines a "high-quality" online course as meeting all of the  
            following requirements:

             a)   The online course is approved by the governing board of  
               the school district or county office of education, or by  
               the governing body of the charter school, such that the  
               online course is certified, through formal resolution, to  
               meet these requirements;

             b)   The teacher of the online course is online at the same  








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               time as each pupil in a synchronous online setting, or is  
               online at different times as each pupil in an asynchronous  
               online setting, where attendance in the asynchronous course  
               is verified using periodic proctored examinations,  
               biometric verification, or a line-of-sight visual  
               connection;

             c)   The ratio of full-time equivalent certificated teachers  
               teaching through online instruction to pupils engaging in  
               that instruction is greater than or equal to the ratio of  
               teachers to pupils in traditional in-classroom study of the  
               same subject matter in the school, school district, or the  
               unified school district with the largest ADA in that  
               county;

             d)   The teacher of the online course holds the appropriate  
               subject matter credential, and has taught the same course  
               to pupils in a traditional in-classroom setting or in an  
               online setting 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 in the  
               school, school district, or the unified school district  
               with the largest ADA in that county;

             f)   All statewide testing results for pupils enrolled in the  
               online course are reported to the school, school district,  
               and county in which the pupil is enrolled;

             g)   The course is offered by a high school, continuation  
               school or county office of education;

             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)   No pupil electing to participate in the online course is  
               denied access because the pupil lacks the computer hardware  
               or software necessary to participate in the online course,  
               or is charged for participation in the online course;









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             j)   Pupils enrolled in the online course take examinations  
               by proctor or that other reliable methods are used to  
               ensure test integrity, and there is a clear record of pupil  
               work, using the same documentation methods used in  
               classroom-based courses in the same subject; and,

             aa)  The school, school district or county office of  
               education maintains contemporaneous 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.

          3)Authorizes a school district, county office of education or  
            charter school offering an online course to contract with a  
            school district to provide the online course to pupils of the  
            offering school district. Also requires those courses provided  
            under contract to be "high quality", the contract terms to be  
            determined by mutual agreement of the school districts, and  
            that such contracts only be an agreement directly with the  
            school, school district or county office offering the online  
            course, and not with the pupils of the offering school  
            district.

          4)Clarifies that nothing in these provisions be interpreted to  
            mean that a charter school provides classroom-based or  
            nonclassroom-based instruction for the purposes of a State  
            Board of Education determination of that distinction.

          5)Requires that pupil attendance accounted for under this  
            authorization be subject to audit as part of the local  
            educational agency's annual financial audit.

          6)Prohibits the waiver of any provision of this authorization,  
            unless specifically authorized.

          7)Requires the Superintendent of Public Instruction (SPI), in  
            consultation with the Director of Finance, on or before  
            December 31, 2011, to make revisions, necessary to conform to  
            these provisions, to any attendance manual or guidance; make  
            revisions necessary to clarify attendance accounting  
            procedures for asynchronous online courses; and make  
            recommendations regarding statutory changes that would be  
            necessary to allow attendance in asynchronous online courses  
            to be included in the calculation of ADA.








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          8)Deems a pupil engaged in an online course meeting these  
            requirements to be under the immediate supervision and control  
            of a certificated employee of the district, county office or  
            charter school for the purposes of calculating ADA.

          9)Specifies that attendance an online course meeting these  
            requirements is not required to meet the requirements for the  
            Independent Study Program for the purposes of calculating ADA.

          10)Defines "asynchronous" and "synchronous" online course, and  
            "biometric."

          11)Requires the SPI, in consultation with the Department of  
            Finance, to adopt rules and regulations for the purpose of  
            clarifying or expanding the procedures required for verifying  
            the identification of pupils participating in asynchronous  
            online courses, and for including pupil attendance in  
            asynchronous online courses in the calculation of ADA.

          12)Prohibits pupil attendance in asynchronous online courses  
            from being included in the calculation of ADA until the SPI  
            has adopted the regulations specified in 11) above.

           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)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.

          3)Requires that pupils in grades 9 through 12 attend school for  
            at least 64,800 minutes per year in no less than 180 days (or  
            175 days under budget flexibility language through 2012-13).

           FISCAL EFFECT  :   According to the Assembly Appropriations  








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          Committee:
           
          1)Beginning FY 2012-13, potential on-going General Fund  
            (GF)/Proposition 98 revenue limit cost pressure, likely  
            between $590,000 and $1.8 million, for increased claims of ADA  
            resulting from online instruction.

          2)One-time GF administrative costs to the SPI, likely less than  
            $125,000, to develop regulations pursuant to this measure.  

           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 pupil attendance: 1) pupils receiving  
          online instruction in a classroom setting with a certificated  
          employee of the district supervising the classroom; 2) pupils  
          enrolled in IS; 3) pupils who have met the minimum day  
          requirement of 240 minutes of classroom instruction and thus  
          have already generated a full day of ADA credit; and, 4) pupils  
          enrolled in a charter school, where there are less strict  
          requirements for funding and attendance accounting.

          The state has also experimented with opening other avenues for  
          districts to provide online coursework.  AB 885 (Daucher),  
          Chapter 801, Statutes of 2002, authorizes participation, through  
          2006, by high school students in the Online Classroom Pilot  
          (OCP) program, which allowed an asynchronous, interactive  
          curriculum to count as instructional time for the purpose of  
          generating ADA.  AB 885 grew out of the legislature's concerns  
          over a school district that had illegally 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, the CDE reported that the  
          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, but  
          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  








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          accounting and teacher supervision for students in online  
          courses in terms of:  1) ensuring 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) placing  
          a time value on the student's 'time on task'.  The immediate  
          supervision of a certificated employee of the school district  
          (i.e., a teacher) eliminates these concerns, and 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 funding system.  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  
          approaches pose problems.  

          The Legislature's unease with instruction 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 also 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 be noted that the elimination of personal,  
          face-to-face contact between a teacher and student may also  








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          present numerous risks to student learning, particularly for  
          students with special needs and students in need of remediation.  
           As was noted by the Assembly Education Committee during debate  
          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 "high quality" online course offerings; the bill also defines  
          a "high quality" online course as one that meets many of the  
          same requirements on 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, and that meets additional requirements.  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.  The bill,  
          however, allows attendance credit towards ADA to begin in  
          2011-12 for synchronous online courses, but prohibits attendance  
          credit from asynchronous online courses until the SPI adopts  
          regulations for the purpose of doing so.

          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.  Where a  
          line-of-sight connection is established between teacher and  
          student in a synchronous environment, as is required by this  
          bill, then it can 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.  

          In terms of protecting the state's interests and investment in  








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          education, it is more difficult for asynchronous online courses  
          to meet a 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 either to  
          guarantee that the enrolled student is "attending", or to place  
          a time value on the work or attendance of the student. This  
          means that, without additional restrictions or regulations,  
          asynchronous online courses may fail to meet the spirit of the  
          attendance accounting system that is 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.

          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 the quality of the educational services provided to a  
          student online and the state's financial investment in a pupil's  
          education.  This bill moves the State forward significantly in  
          the provision of synchronous online education, while also  
          allowing for more clarification, in the form of regulations,  
          regarding the provision of asynchronous online education in the  
          context of the State's attendance accounting system.


           Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087 


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