BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   April 21, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    AB 2320 (Swanson) - As Amended:  April 8, 2010
           
          SUBJECT  :  Charter schools: accountability.

           SUMMARY  :  Adds requirements to the charter school petition  
          process and limits the ability of county offices of education  
          (CBE) and the state board of education (SBE) to approve charter  
          petitions and appeals.  Specifically, this bill  :  

          1)Requires charter school petitions to provide a reasonably  
            comprehensive description of:

             a)   The different and innovative teaching methods the school  
               will use;

             b)   How the implementation of the school's educational  
               program, notification to parents about course  
               transferability and the innovative teaching methods will  
               provide vigorous competition within the public school  
               system to stimulate continual improvement in all public  
               schools; 

             c)   How the governance structure of the school will create  
               new professional opportunities for teachers, including the  
               opportunity to be responsible for the learning program at  
               the school site; and,

             d)   The means by which the school will achieve a balance of  
               pupils who receive free and reduced-price lunches, are  
               English language learners, or are individuals with  
               exceptional needs.

          2)Specifies that a CBE may consider an appeal for a charter  
            school petition only if the appeal alleges that the school  
            district governing board committed a procedural violation in  
            the review process and specifies if a CBE finds, by  
            substantial evidence, that the school district governing board  
            committed a procedural violation in reviewing the petition,  
            the CBE may return the petition to the school district to  
            correct the violation.









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          3)Deletes the authorization for charter school petitioners to  
            submit a petition to the SBE if a CBE denies the petition.

          4)Deletes the authorization for a charter school to submit a  
            petition directly to a CBE.

          5)Limits the SBE approval of a state wide benefit charter school  
            to a charter school that will operate in partnership with any  
            of the following entities: the federal Workforce Investment  
            Act of 1998; federally affiliated Youth Build programs;  
            federal job corps training or instruction provided pursuant to  
            a memorandum of understanding with the federal provider; or,  
            the California Conservation Corps or local conservation corps.

          6)Deletes the authorization for a school district to convert all  
            of its schools to charter schools.

          7)Specifies that a CBE may consider an appeal for a charter  
            school revocation only if the appeal alleges that the school  
            district governing board committed a procedural violation in  
            the revocation process and specifies if a CBE finds, by  
            substantial evidence, that the school district governing board  
            committed a procedural violation in the revocation process,  
            the CBE may return the petition to the school district to  
            correct the violation.

          8)Deletes the authorization for charter school petitioners to  
            submit a revocation appeal to the SBE if a CBE denies the  
            appeal.

           EXISTING LAW  : 

          1)Establishes the Charter Schools Act of 1992 which authorizes a  
            school district, a CBE or the SBE to approve or deny a  
            petition for a charter school to operate independently from  
            the existing school district structure as a method of  
            accomplishing, among other things, improved student learning,  
            increased learning opportunities for all students, with  
            special emphasis on expanded learning experiences for students  
            who are identified as academically low achieving, the use of  
            different and innovative teaching methods, new professional  
            opportunities for teachers, including the opportunity to be  
            responsible for the learning program at the school site, and  
            vigorous competition within the public school system to  
            stimulate continual improvements in all public schools.








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

          3)Authorizes a school that serves a statewide purpose to go  
            directly to the SBE and specifies that the SBE shall not  
            approve a petition for the operation of a state charter school  
            unless the SBE makes a finding, based on substantial evidence,  
            that the proposed state charter school will provide  
            instructional services of statewide benefit that cannot be  
            provided by a charter school operating in only one school  
            district, or only in one county. 

          4)Specifies that charter schools that operate in partnership  
            with the following entities are not required to meet the  
            jurisdictional and geographic limitations placed on other  
            charter schools:  the federal Workforce Investment Act of  
            1998; federally affiliated Youth Build programs; federal job  
            corps training or instruction provided pursuant to a  
            memorandum of understanding with the federal provider; or, the  
            California Conservation Corps or local conservation corps.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   According to the California Department of Education  
          (CDE), the 2008-09 count of operating charter schools is 746  
          with student enrollment of more than 285,000 in this state.   
          This includes four charter schools approved under the provisions  
          of the statewide benefit charter law and eight other  
          SBE-approved charters.  Some charter schools are new, while  
          others are conversions from existing public schools.  Charter  
          schools are part of the state's public education system and are  
          funded by public dollars.  A charter school is usually created  
          or organized by a group of teachers, parents and community  
          leaders, a community-based organization, or an education  
          management organization.  Charter schools are authorized by  








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          school district boards, county boards of education or the state  
          board of education.  A charter school is generally exempt from  
          most laws governing school districts, except where specifically  
          noted in the law.  Specific goals and operating procedures for  
          the charter school are detailed in an agreement (or "charter")  
          between the sponsoring board and charter organizers.

           
           Innovative Teaching Techniques & School Competition.  In  
          creating charter schools, the Legislature declared that the  
          intent of charter schools was to provide opportunities for  
          teachers, parents students and community members to establish  
          and maintain schools that operate independently from the  
          existing school district structure, as a method to, among other  
          things:
          1)Encourage the use of different and innovative teaching  
            methods.
          2)Create new professional opportunities for teachers, including  
            the opportunity to be responsible for the learning program at  
            the schoolsite.
          3)Provide vigorous competition within the public school system  
            to stimulate continual improvements in all public schools.



          Innovative teaching techniques can be a cornerstone for unique  
          educational settings like charter schools.  According to CTA,  
          one such example of innovative teaching is the Alameda Community  
          Learning Center (ACLC), which is a charter school located in  
          Alameda, California.  At ACLC teachers are referred to as  
          "facilitators" and students are referred to as "learners."  ACLC  
          is an educational laboratory that seeks to create a dynamic  
          learning community by embodying the best practices of teaching  
          and learning in a non-competitive manner that supports  
          individuals to actively discover their own potential, recognize  
          their own value and worth and practice responsibility to the  
          community.  To this end, the ACLC provides a safe, connected,  
          and flexible learning community.  One of the most unique aspects  
          of the ACLC Charter School is its method of governance that  
          substantially incorporates the learners and facilitators in a  
          broad array of organizational functions - legislative, judicial  
          and executive.  This approach is congruent with the ACLC  
          philosophy that the learning is experiential and incorporates  
          not only the content but the process of the learning  
          environment.  The committee should consider whether all charter  








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          schools should be required to include innovative teaching  
          techniques into their charter petition and whether they should  
          implement such teaching techniques in their school.



          The bill further requires a charter school petition to include a  
          description of how the school will provide vigorous competition  
          among the public school system, which is consistent with the  
          original Legislative intent in creating charter schools.  While  
          the Legislative intent is clear, the committee should consider  
          how a charter school will describe such a requirement in their  
          initial petition and whether it is appropriate to include this  
          type of description in the petition.

           Charter Schools Serving High Need Students  .  This bill would  
          require charter schools to specify in their initial petition the  
          way the school will achieve balance among its students who  
          receive free and reduced-priced lunches, are English learners,  
          are individuals with exceptional needs.  This requirement is  
          consistent with the original Legislative intent to establish  
          charter schools to, among other things, increase learning  
          opportunities for all students, with special emphasis on  
          expanded learning experiences for students who are identified as  
          academically low achieving.  

          The 2009 EdSource report on charter schools found that charter  
          high schools enroll 13% fewer students who are either English  
          learners or redesignated as fluent English proficient (RFEP)  
          students compared to noncharter schools; charter middle schools  
          enroll English learner and RFEP students at a 7% lower rate than  
          noncharter schools; and charter elementary schools enroll 11%  
          fewer English learner and RFEP students compared with noncharter  
          schools.  Similarly, the EdSource report found that charter  
          schools serve lower proportions of students with disabilities  
          compared to noncharter schools at all grade levels.  The study  
          also found that charter schools serve fewer students that  
          participate in the Free and Reduced-Price Meal Program in both  
          elementary and middle school compared to noncharter schools, but  
          slightly more students in high school compared to noncharter  
          schools.  

 ------------------------------------------------------------------ 
 ------------------------------------------------------------------ 
 ------------------------------------------------------------------           (Source: Charter Schools in California: 2009 Update on Issues  








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          and Performance, EdSource)

          A November 2009 report by The Civil Rights Project makes policy  
          recommendations with regard to segregation in charter schools.   
          They recommend that charter schools could "use many of the same  
          provisions that helped magnet schools use choice to increase  
          diversity.  These include providing full and extensive  
          information, outreach to all racial/ethnic, socioeconomic and  
          linguistic groups, no admissions/attendance/parent involvement  
          requirements, and free transportation."  They also recommend  
          that "tracking and publicly reporting basic information about  
          students should be a requirement for any school that receives  
          public funding.  Charter schools should be evaluated to ensure  
          that they are enrolling, retaining, and graduating proportional  
          shares of students by race/ethnicity, ELL status, socioeconomic  
          status, and students with disabilities as their surrounding  
          districts.  Schools could also be required to report the number  
          of students in different subgroups who apply to the charter  
          school compared to those who actually enroll, among schools that  
          are over-subscribed.  OCR could and should do this.  The federal  
          government should also reinstate its former practice of  
          providing annual reports on the state of charter schools."

          The committee should consider, with this data in mind, whether  
          charter schools should be required to describe in the initial  
          petition, the means by which they will achieve balance of  
          students who receive free and reduced-price lunches, are English  
          learners, or are individuals with exceptional needs that is  
          reflective of the general population residing in the local  
          school district.

           Statewide Benefit Charters  .  This bill will restrict the SBE's  
          ability to approve statewide benefit charter schools unless they  
          are operating in partnership with specified entities outlined in  
          Section 47612.1.  The sponsor of the bill, the California  
          Teachers Association (CTA) contends that the original intent of  
          the statewide benefit charter law was to allow charter schools  
          that provide instructional services of a statewide benefit like  
          those listed in Section 47612.1 to become statewide benefit  
          charter schools authorized by the SBE.  To date, the SBE has  
          authorized four charter schools under the provisions of the  
          statewide benefit charter school law.  The committee should  
          consider whether it is important to grandfather in existing  
          statewide benefit charter schools, and only apply the  
          requirements established by this bill on future statewide  








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          benefit charter school petitions.

          According to CTA, an example of the SBE's abuse in granting  
          state-wide benefit charter schools without regard to the current  
          parameters of the statute is currently the subject of litigation  
          in  CSBA & CTA  vs.  SBE; Aspire Charter Schools  , which is pending  
          in the Court of Appeal, First District.  The suit was filed when  
          the SBE approved Aspire's statewide benefit charter petition  
          despite the fact that the petition offered no evidence that the  
          school "will provide instructional services of statewide benefit  
          that cannot be provided by a charter school operating only in  
          one district, or in one county."  This directly violated  
          Education code 47605.8.  The suit also complained that the SBE  
          was not authorized to approve the Aspire Charter because the  
          petition did not indicate that the charter school would serve  
          students in the California Conservation Corps., Federal  
          Workforce Investment Act and other programs described in  
          47612.1.  The trial Court found current statute was not  
          sufficiently clear to require statewide charters to serve these  
          students, even though that was the original intent of the law.
           
          Charter School Petitions, Appeals & Charter Districts  .  If a  
          charter school petition is denied by a school district, this  
          bill will delete the CBE's ability to approve the charter  
          school.  This bill proposes, instead, to allow a CBE to consider  
          an appeal only if the appeal alleges that the school district  
          governing board committed a procedural violation and if the CBE  
          finds that the district board committed a procedural violation,  
          the CBE may return the petition to the school district to  
          correct the violation.  This bill also limits a charter school  
          appeal of a revocation decision in a similar manner and removes  
          the SBE from the appeal process for both petition appeals and  
          revocation appeals.  According to the sponsor of the bill, by  
          allowing the SBE or the CBE to authorize charter schools despite  
          having been thoroughly vetted through the locally elected  
          bodies, the ability for local communities to set local needs and  
          goals is undermined.  The committee should consider whether this  
          will unnecessarily limit the opportunity for charter petitioners  
          to seek approval.  

          The bill deletes the authorization for a charter school to bring  
          a petition directly to a CBE for approval.  According to the  
          sponsor of the bill, this bill limits the granting of charter  
          schools to school districts with locally elected school boards  
          for schools within the boundaries of the school district.   








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          Decisions to establish charter schools should be limited to the  
          locally elected school board, and should not be devolved to  
          appointed or elected boards, such as CBEs or the SBE, that are  
          not immediately connected to and accountable to the school  
          community.  The committee should consider whether limiting  
          charter approvals to school districts will unnecessarily limit  
          the charter approval process and limit the ability of charter  
          schools to seek approval.

          The bill also eliminates the authorization for a school district  
          to convert all of its schools to charter schools.  According to  
          the sponsor, this section was inadvertently deleted.  Staff  
          recommends the bill be amended to reinstate this section as it  
          currently reads.

           Arguments in Support  .  According to the sponsor of the bill, the  
          CTA, the promise of charters schools has been the freedom to  
          innovate and experiment in exchange for accountability and  
          results.  Unfortunately, this promise is yet to be met.  The  
          federal Race to the Top initiative, recent studies of charter  
          school performance, enrollment trends, as well as audits and  
          investigations of charter schools by FCMAT and other entities  
          have demonstrated the need to refocus attention on charter  
          schools in order to return to the original intent of the law.   
          We believe AB 2320 (Swanson) will benefit the refocused  
          attention of charter schools and will renew the engagement of  
          all impacted stakeholders as we seek to strengthen California's  
          educational system in a manner that will benefit all of  
          California's students and stakeholders.

           Arguments in Opposition  .  According to the California Charter  
          Schools Association, that opposes the bill, AB 2320 makes a  
          dramatic change in the ability of a charter school petitioner to  
          appeal an adverse decision by a local school district.  This  
          change, which cuts the state board of education from the  
          process, seriously undermines due process for the petitioner.   
          The value of due process in the case of charter school petitions  
          is that objective third parties are given authority to review a  
          decision made by a less objective party.  AB 2320 adds to the  
          charter school petition requirements. The petition is already a  
          very dense collection of documents that covers the gamut of  
          pedagogical, organizational, financial and governance issues.   
          The burden on petitioners should not be increased unless there  
          is a gap that must be filled.  Every time a requirement is  
          added, it forces the petitioners to provide additional  








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          information, even if the additional information is redundant.   
          Each new requirement also gives the authorizer one more basis on  
          which to reject a charter school petition.

           Committee Amendments  :  Staff recommends the bill be amended to  
          change the reference to free and reduced priced lunches in  
          Section 47605(b)(5)(G), to free and reduced priced meals.  To  
          maintain local control of school district governing boards,  
          staff recommends the bill be amended to reinstate the  
          authorization for school districts to convert all of there  
          schools to charter schools.  Staff further recommends the bill  
          be amended to delete the sections changing the charter school  
          appeal process and application process and instead reinstate the  
          existing charter approval process at CBEs, the appeal process  
          involving CBEs and the SBE, and the statewide benefit charter  
          process. 

           Related legislation  :  AB 1741 (Coto), pending in the Assembly  
          Appropriations Committee, requires a local educational agency  
          (LEA) that identifies a persistently lowest-achieving school  
          (PLAS) and chooses to implement a restart model, as described in  
          federal regulations, by converting the school or closing and  
          reopening the school under a charter school operator or a  
          charter management organization (CMO), to select a charter  
          school operator or CMO that demonstrates specified requirements  
          relative to meeting the needs of English learners (ELs).  

          AB 1982 (Ammiano) from 2010, pending in the Assembly Education  
          Committee, establishes a state-wide cap of 1450, on the number  
          of charter schools that can operate; requires the Legislative  
          Analyst's Office (LAO) to make recommendations regarding the cap  
          by July 1, 2015; prohibits charter school personnel with hiring  
          authority from employing relatives; and, authorizes school  
          districts to approve a charter school only if the petition meets  
          specific criteria.  

          AB 1950 (Brownley) from 2010, pending in the Assembly Education  
          Committee, requires the Audit Appeal Panel to adopt a charter  
          school supplement to the audit guide; prohibits a charter school  
          from being operated by a for-profit corporation; allows a  
          charter authorizer to consider the track record of a charter  
          petitioner; requires a charter authorizer to consider the degree  
          to which a charter school serves similar student populations;  
          requires a charter school to meet academic growth targets for  
          each student subgroup prior to renewal; requires a charter  








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          school in program improvement (PI) not be renewed for more than  
                                             3 years; requires a charter school in PI year 5 not be renewed  
          if the school has not exited PI and did not meet adequate yearly  
          progress (AYP) in the year prior to renewal.  

          AB 1991 (Arambula) from 2010, pending referral in the Assembly  
          Education Committee, requires charter school petitions to be  
          granted for 5 years; authorizes charter school renewals to be  
          granted for 5 to 10 years; establishes an alternative renewal  
          process for charter schools identified as persistently lowest  
          achieving and schools that do not meet specified academic  
          criteria; authorizes the Superintendent of Public Instruction  
          (SPI) to establish alternative academic accountability standards  
          for charter schools; and, combines the renewal appeals process  
          with the revocation appeals process.  

          AB 2363 (Mendoza), pending on the Assembly Floor, requires, in  
          addition to the existing signature requirements for charter  
          school petitions, a charter school petition to include  
          signatures from at least 50% of the number of classified  
          employees the petitioner estimates that will be employed by the  
          charter school in the first year of operation; requires a  
          conversion charter school petition to include 50% of the  
          permanent classified employees currently employed at the school  
          that is to be converted to a charter school; and, requires the  
          signature petition to prominently display a statement that the  
          classified employee has a meaningful interest in working at the  
          charter school.  

          AB 2543 (Lowenthal), pending in the Assembly Education  
          Committee, requires the governing board of a school district or  
          a CBE to approve or deny a charter school renewal petition no  
          later than December 1 of the renewal year; and, authorizes a  
          charter school to appeal a district board's denial of a renewal  
          petition to the CBE, or a CBE's denial of a renewal petition to  
          the state board, within 30 days of the date of the denial.    

           Previous legislation  : AB 8 X5 (Brownley) from 2009 proposed  
          comprehensive changes to the Education Code consistent with the  
          federal Race to the Top (RTTT) program; this bill addressed the  
          four RTTT policy reform areas of standards and assessments, data  
          systems to support instruction, great teachers and leaders and  
          turning around the lowest-achieving schools.  Deleted the  
          statewide charter school cap; proposed enhanced charter school  
          fiscal and academic accountability standards.  This bill was  








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          held in the Senate Education Committee at the request of the  
          author. 

          AB 3 X5 (Torlakson) from 2009 deleted the statewide charter  
          school cap and proposed changes to the measurable student  
          outcomes, renewal and revocation procedures for charter schools.  
           This bill was introduced but was not referred to a committee.
           

          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Teachers Association (Sponsor)
          California Federation of Teachers
          California Labor Federation
          California School Employees Association

           Opposition 
           
          California Charter Schools Association
          School for Integrated Academics and Technologies (SIATech)
           
          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087