BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2320
                                                                  Page  1

          Date of Hearing:   May 19, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2320 (Swanson) - As Amended:  April 28, 2010 

          Policy Committee:                              Education  
          Vote:5-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill amends the charter school petition process and limits  
          the ability of county boards of education (CBE) and the State  
          Board of Education (SBE) to approve charter petitions on appeal.  
           Specifically, this bill:   

          1)Requires the charter school petition to include the following:  


             a)   A detailed description of the different and innovative  
               teaching methods the school will use.  

             b)   How the implementation of the educational program will  
               provide rigorous competition within the public school  
               system to stimulate continual improvements in all public  
               schools.  

             c)   How the governance structure will create new  
               professional opportunities for teachers, including being  
               responsible for the learning program at the schoolsite.  

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

          2)Authorizes a CBE to consider an appeal from a charter school  
            petitioner (once denied by the governing board of a school  
            district) only if the appeal alleges that the governing board  
            committed a procedural violation in reviewing the petition.   
            This bill also requires the CBE to remand the petition to the  
            school district governing board to correct the procedural  








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            violation, if it determines the governing board committed a  
            violation.  

          3)Deletes authority for a charter school to submit a petition to  
            the SBE, if a CBE denies the petition.  This measure also  
            deletes authority for a charter school to submit a petition  
            directly to the CBE. 

           FISCAL EFFECT  

          1)GF/98 state reimbursable mandated costs, likely less than  
            $50,000, to school districts to review petition information  
            required under this bill.  

          2)This bill limits the charter school petition appeal process to  
            the CBE and eliminates the appeal process at the SBE level.   
            These provisions will likely lead to GF/98 state reimbursable  
            mandated cost savings and GF administrative cost savings,  
            likely less than $100,000, statewide.  Due to the limited  
            appeals process proposed in this measure, however, there is a  
            potential for increased litigation costs to school districts  
            and CBEs in the event a proposed charter school sues over  
            decisions made by these two entities.      

          3)There is a current GF/98 state reimbursable mandate of $2.3  
            million annually paid to local education agencies (LEA) to  
            review charter school petitions and renewals, notify charter  
            schools of reasons for revocation, and administer facility  
            rentals.  The cost associated with this measure will be added  
            to the existing mandate.  According to a May 2006 decision by  
            the Commission on State Mandates (CSM), charter schools are  
            not eligible to claim mandate reimbursements.  In denying  
            charter schools' mandate claims, the CSM repeatedly cites the  
            fact that charter schools are "voluntarily" created.  

           COMMENTS  

           1)Purpose  .  According to the California Teacher's Association,  
            sponsor of this bill, "The promise of charter schools has been  
            the freedom to innovate and experiment in exchange for  
            accountability and results.  Unfortunately, this promise is  
            yet to be met.  Recent reports of charter school performance,  
            enrollment trends, as well as audits and investigations of  
            charter schools by the Fiscal Crisis Management Assistance  
            Team and other entities have raised serious concerns about  








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            whether California is meeting the goals of the Charter Schools  
            Act of 1992.  In recent years, too, would-be charter school  
            operators have found ways to secure approval of their charters  
            by bypassing locally elected school boards."   

            This bill requires specified information be included in  
            charter school petitions related to the educational program,  
            governance, and pupil populations.  It also limits the appeal  
            process for charter school petitions denied by school district  
            governing boards. 

           2)Existing law  requires a potential charter school to submit a  
            petition to an LEA for approval to establish the school.  The  
            petition is required to include a description of the  
            educational program of the school.  In addition, the initial  
            petition is required to describe how the proposed charter  
            school will achieve racial and ethnic balance similar to the  
            neighboring school district.  

            This bill requires a charter school petition to detail how the  
            proposed educational program for the school will provide  
            rigorous competition within the public school system to  
            stimulate continual improvements in all public schools.  It  
            also requires the petition to describe how the governance  
            structure will create new professional opportunities for  
            teachers and the means by which the school will achieve a  
            balance of pupils who receive free and reduced price meals,  
            are English learners, or are pupils with exceptional needs.  

            Statute also establishes an appeals process for a charter  
            school petition denied by a school district governing board.   
            Existing law authorizes the charter school to submit the  
            petition to the CBE for approval (regardless of the reason for  
            denial).  If the CBE denies the petition, the charter school  
            may submit the petition to the SBE for approval.  Likewise,  
            statute details requirements for the CBE and SBE, if it  
            approves a charter petition, as specified.  

            This measure authorizes the charter school to submit its  
            petition to the CBE, if it is denied by the school district  
            governing board only based on procedural issues.  Also, this  
            bill deletes authority for a charter school to submit a  
            petition to SBE, if a CBE denies the petition, and removes  
            authority for a charter school to submit a petition directly  
            to the CBE. 








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           3)Number of charter schools  .  As of March 2010, there are 870  
            active and pending charter schools.  Fifty-one of these  
            schools have a status of "pending" because they have been  
            locally approved and numbered by the SBE, but the state has  
            been advised that funding will not be claimed for these  
            schools until the 2010-11 school year.  Of the 870 charter  
            schools, 25 currently operate based on SBE approval.    

           4)Related legislation  .  

             a)   AB 1950 (Brownley), pending in this committee, makes  
               several statutory changes to charter school accountability  
               and financial compliance.  

             b)   AB 2543 (Lowenthal), pending in this committee, requires  
               a charter school to submit a petition to the chartering  
               authority no later than September 15 prior to the  
               expiration of the charter or by a later date, if mutually  
               agreed upon by the chartering authority and the charter  
               school.  


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081