BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       AB 2027
          AUTHOR:        Blumenfield
          AMENDED:       May 28, 2010
          FISCAL COMM:   Yes            HEARING DATE:  June 30, 2010
          URGENCY:       No             CONSULTANT:Daniel Alvarez

           SUBJECT  :   Online Education

           KEY POLICY ISSUES   

          Should the state permit online courses to be counted for  
          purposes of claiming funding for pupil attendance?

          Does it matter that online courses are offered through a  
          synchronous or asynchronous approach? 


           SUMMARY   

          This bill authorizes, commencing with the 2012-13 fiscal  
          year, a school district, county office of education (COE), or  
          charter school to claim attendance toward average daily  
          attendance (ADA) for the purpose of calculating revenue limit  
          funding for online synchronous and asynchronous courses, as  
          specified.

           BACKGROUND  

           Existing law  

          1)   Requires the majority of the state's revenue limit  
               funding (general purpose) allocated to local educational  
               agencies (LEAs) be based on average daily attendance  
               (ADA).  ADA is the average amount of time a pupil  
               attends class under the immediate supervision of a  
               certificated employee. (Education Code  46300 et. seq.)  
                

               Within the current ADA requirements, LEAs are able to  
               provide online courses to pupils in the following ways: 







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               (a)       Pupils are receiving online instruction in a  
                    classroom setting under the immediate supervision  
                    of a certificated employee. (EC  46300 (a))

               (b)       Pupils are enrolled in a part-time or  
                    full-time independent study (IS) program (i.e., the  
                    pupil may be taking regular classroom courses and  
                    one or two IS program courses online).   If a pupil  
                    is enrolled full-time 

                    in an IS program, he or she is required to produce  
                    a work product, which is assessed by a certificated  
                    employee of the district.            (EC  51745  
                    et. seq.)

               (c)       Pupils who have met the minimum instructional  
                    requirement and are taking an online course.  Under  
                    this scenario, the pupil is generating full ADA for  
                    meeting the minimum instructional requirement and  
                    the pupil is taking the online course in addition  
                    to meeting minimum requirements. 

               (d)       Pupils are enrolled in a charter school, which  
                    has less traditional accounting and attendance  
                    requirements for its pupils; and typically must  
                    meet statutory requirements, where applicable, or  
                    regulatory guidelines adopted by the State Board of  
                    Education.

          1)   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. (EC  46141)

          2)   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). (EC  46201) 

          3)   Existing law requires each school district maintaining  
               any of grades 7 to 12, inclusive, to offer courses of  
               study that (1) fulfill the requirements and  
               prerequisites for admission to California public  






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               institutions of postsecondary education and (2) provide  
               an opportunity for pupils to attain entry-level  
               employment skills in business or industry.  School  
               districts may fulfill their responsibility pursuant to  
               number (2) by adopting a required curriculum that meets  
               or exceeds the model standards CTE adopted by the State  
               Board of Education.  (EC  51228)

           ANALYSIS  

           This bill  authorizes, commencing with the 2011-12 fiscal  
          year, a school district, county office of education (COE), or  
          charter school to claim attendance toward average daily  
          attendance (ADA) for the purpose of calculating revenue limit  
          funding for online classes, as specified.  More specifically,  
          this bill:

          1)   Requires the following conditions apply in order for a  
               school district, COE, or charter school to claim ADA for  
               online classes: (a) the pupil is enrolled in grades 9  
               through 12;  (b) the pupil is enrolled in classes that  
               include courses in a classroom-based setting, courses  
               that are offered through an online program, or both; (c)  
               the pupil meets minimum instructional time requirements,  
               as specified; and (d) 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 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 is either of the following:

                                  Online at the same time as each  
                         pupil, is accessible to each pupil attending a  
                         synchronous online course to respond to pupil  
                         queries, assign tasks, dispense information,  
                         and is able to make a line-of-sight visual  
                         connection with each pupil for the purposes of  
                         verifying attendance or providing immediate  
                         supervisor of the pupil.






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                                  Online at different times as each  
                         pupil, is accessible to each pupil attending  
                         an asynchronous online course to respond to  
                         pupil queries, assign tasks, dispense  
                         information, and for the purposes of verifying  
                         attendance is able to employ at least two of  
                         the following:

                         i)                  Periodic proctored  
                         examinations. 
                         ii)                 Biometric verification.
                         iii)                A line-of-sight visual  
                         connection, including, but not 
                              limited to, Internet webcam.

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

               b)        The teacher of the online course (1) holds the  
                    appropriate subject matter credential, and (2) has  
                    taught the same course to pupils in a traditional  
                    classroom or an online setting at any time within  
                    the immediately preceding two-year period.

               c)        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 of pupils in that county.

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

               e)        The online course is offered by a high school,  
                    continuation school, or COE.

               f)        No pupil is assigned to the online course  






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                    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.

               g)        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.

               h)        No pupil is charged for their participation in  
                    the online course.

               i)        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 method of documentation and assessment as used  
                    in a classroom-based course. 

               j)        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.

          1)   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.

          2)   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.







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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.

          4)   Prohibits the waiver of any provision of this measure,  
               unless specifically authorized.

          5)   Requires the Superintendent of Public Instruction (SPI),  
               in consultation with the Director of Finance, on or  
               before December 31, 2011, to make:

                     Revisions to any attendance accounting manual or  
                 guidance provided to school districts, COEs, or  
                 charter schools that are necessary to conform to the  
                 provisions of this measure;

                     Revisions necessary to clarify attendance  
                 accounting procedures for asynchronous online courses;

                     Recommendations regarding statutory changes that  
                 would be necessary to allow attendance in asynchronous  
                 online courses to be included in the calculation of  
                 ADA.

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

          2)   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.

          3)   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.

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

          5)   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  






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               verifying the identification of pupils participating in  
               asynchronous online courses, and for including pupil  
               attendance in asynchronous online courses in the  
               calculation of ADA.

           STAFF COMMENTS 

           1)   Need for the bill  .  According to the author, 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.  This measure seeks to remove barriers  
               for students to access high-quality online courses by  
               simplifying attendance accounting for online courses.

           2)   Past legislative attempts.   In 2002, the Legislature  
               passed AB 885 (Daucher, Chapter 801) that 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. The pilot program addressed the need to  
               provide expanded educational opportunities for pupils  
               attending schools with limited educational offerings;  
               the need to provide access to advanced placement courses  
               where none are available; and the need to provide  
               quality educational access in course for hard-to-staff  
               subject areas.  
               The pilot program sunset in 2007 and only cursory  
               evaluative information was provided; not a thorough  
               analysis which would assist in decision making for  
               renewing or expanding the pilot.

          3)    Online courses the convergence of instructional  
               delivery, attendance accounting, and public  
               accountability  .  The Legislature, generally, has  
               required instruction for funding purposes, to be when a  
               pupil attends class under the immediate supervision of a  
               certificated employee, with some exceptions  
               (particularly in independent study and in non-classroom  
               based charter schools).  A critical aspect of education  
               is the "live" interaction between teacher and pupil, as  
               well as pupil-to-pupil, where instruction is enhanced by  
               ensuing dialogue in a timely question and answer  
               approach, the ability to work with others, and where a  






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               quality "live" social interactive learning experience  
               can enrich a pupil by assisting in acquiring knowledge  
               and skills they will need in adult life and can help  
               them develop into well-rounded individuals. 

               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 total  
               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 create problems; particularly those that  
               involve asynchronous online courses.

               This measure can never achieve the unique qualities that  
               a "live" education experience provides.  The measure,  
               however, begins the move toward providing an option and  
               a balance that allows for an online instructional  
               delivery approach of high quality courses, creating  
               attendance accountability, and insures accompanying  
               public fiduciary requirements and responsibilities.  

               This measure does provide criteria for online courses to  
               ensure their quality and attempts to insure that  
               appropriate rules and regulations are in place prior to  
               assigning ADA for asynchronous online courses. Two ways  
               in which this measure moves in this direction is (1)  
               where asynchronous online courses would be verified by  
               periodic exams, biometric verification, or line-of-sight  
               visual connection, and (2) the development by the  
               Superintendent of Public Instruction rules and  
               regulations. 

               Staff recommends an amendment to insure the State  
               Controller is consulted in development of requirements  
               under #7 in the analysis. This will assist in insuring  
               rules or regulations developed can meet requirements  
               basic to a required audit.  Under state law, the  
               Controller is responsible for the audit oversight of  
               school districts' audit reports.
           
               Staff recommends an amendment to delete of the use of  
               biometric verification for the purposes of asynchronous  
               attendance. The use of biometric technology may have  






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               underlying privacy considerations that should be fully  
               discussed in a policy committee with such expertise.   
               However, staff recommends that the remaining two  
               verification approaches must utilized for purposes of  
               asynchronous attendance - this will insure a record of a  
               pupil's work and create a verifiable attendance  
               standard.

               Staff recommends an amendment that clarifies that no  
               pupil shall be credited with more than five days of  
               course attendance per calendar week, or more than the  
               total number of calendar days that regular classes are  
               maintained by the district in any fiscal year.

          4)    Clarifying Teacher-to-Pupil Ratios  . The measure  
               specifies the ratio of full-time equivalent certificated  
               teachers teaching the online course to pupils enrolled  
               in that course is greater than or equal to the ratio of  
               teachers to pupils in traditional classroom study of the  
               same subject matter in the school.  The author's office  
               has noted that some existing online programs have  
               experienced audit exceptions for not being in  
               compliance, because the ratio may have changed during  
               the school term.  

               Staff recommends an amendment to utilize the "prior  
               year's" ratio as reported by the California Department  
               of Education for existing courses.

               But what happens if there is a new or unique online  
               course that is being offered that doesn't necessarily  
               exist in a school district? For example, in a small  
               school district a foreign language may not be offered at  
               all.  The language as currently drafted prohibits the  
               offering of this foreign language because there is no  
               existing teacher-to-pupil ratio.

               Staff recommends an amendment to provide for a  
               teacher-to-pupil that is no greater than 30:1, in  
               instances where a new or unique course is offered.

          5)    Teacher Quality Provisions  .  Generally in this measure,  
               a teacher of an online course must have taught the same  
               course in the previous two years. However, this standard  
               may not work in settings where a new online course is  
               being offered. 






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               Staff recommends an amendment that will insure any  
               teacher of an online course holds the appropriate  
               subject matter credential and meets requirements of the  
               Highly Qualified Teacher provisions of the federal No  
               Child Left Behind Act (NCLB), as prescribed by the  
               California Department of Education. 

          6)    Author wants to insure quality and consistency for new  
          and existing courses.  
               The bill requires the subject matter content for the  
               online course is the same as for the traditional  
               classroom-based course in the school or school district.  
               However, this may not necessarily work for new or unique  
               courses.  

               The author wants to require upfront that "the local  
               governing board certifies that any online course is  
               certified as rigorous as a classroom-based course and  
               meets or exceeds all relevant state content standards."

               Staff recommends adoption of the suggested author's  
               amendment.

          7)    Sunset of Measure's Provisions is Appropriate  . This  
               measure, as previously stated, moves toward a new and  
               responsible funding approach for online courses;  
               however, as with any new approach unintended  
               consequences or unanswered questions may arise.  
               Therefore, in order to provide an additional level of  
               accountability and review staff recommends that the  
               measure sunset the provisions. 

               Staff recommends adding a sunset to the provisions of  
          this measure.
           
           8)   Prior and related legislation  .  

                           AB 837 (Torlakson, 2009) established that a  
                    school district or COE, beginning with 2010-11, may  
                    claim ADA on the basis of a pupil's attendance at a  
                    class or classes in the classroom-based setting on  
                    that day, for the purpose of learning online.  This  
                    measure was held on the Assembly Appropriations  
                    suspense file.







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                           AB 2457 (Walters, 2008) extended the OCP  
                    program until 2012; the bill was held on the  
                    Assembly Appropriations suspense file.

                           AB 885 (Daucher, Chapter 801, Statutes of  
                    2002), established the Online Classroom Pilot.  
                                    
           SUPPORT
           
          Alameda County Board of Education
          Alameda County Superintendent of Schools
          California County Superintendents Educational Services  
          Association
          California Teachers Association
          Perris Union High School District
          Riverside County Schools Advocacy Association
          San Diego County Office of Education
          San Francisco Unified School District
          Santa Clara County Office of Education
           
          OPPOSITION
           
          None received.