BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2543
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2543 (Bonnie Lowenthal)
          As Amended  April 28, 2010
          Majority vote 

           EDUCATION           9-0         APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Brownley, Nestande,       |Ayes:|Fuentes, Conway, Hill,    |
          |     |Ammiano, Arambula,        |     |Bradford, Charles         |
          |     |Carter, Eng, Miller,      |     |Calderon, Coto, Davis,    |
          |     |Norby, Torlakson          |     |Hall, Harkey, Miller,     |
          |     |                          |     |Nielsen, Norby, Skinner,  |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes timelines for charter school renewals and  
          appeals.  Specifically  this bill  :

          1)Requires a charter school to submit a renewal petition to the  
            chartering authority (CA) no later than September 15 prior to  
            the expiration of the charter, or by a later date if mutually  
            agreed upon by the CA and the charter school; specifies that a  
            CA is not precluded from establishing a charter renewal  
            deadline prior to September 15; and, specifies that existing  
            timelines for the consideration of a charter renewal petition  
            by a CA shall not be affected by these provisions.

          2)Requires the governing board of a school district or a county  
            board of education (CBE) to approve or deny a charter school  
            renewal petition no later than December 15 prior to the  
            expiration of the charter.

          3)Authorizes a charter school to appeal a district board's  
            denial of a renewal petition to the CBE, or a CBEs denial of a  
            renewal petition to the State Board of Education (SBE), within  
            30 days of the date of the denial.    

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, minor, absorbable General Fund/Proposition 98 (GF/98)  
          costs to CBEs and minor, absorbable GF administrative costs to  
          SBE to comply with the timelines in this measure.  








                                                                  AB 2543
                                                                  Page  2



          There is a current GF/98 state reimbursable mandate of $2.3  
          million annually paid to local education agencies 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  :   According to the California Department of Education,  
          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 school district  
          boards, CBEs or the SBE.  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.

          Renewal timeline for districts:  This bill would require renewal  
          petitions for all school district and CBE-authorized charter  
          schools to be submitted to the authorizer by September 15 and to  
          be decided by the authorizer no later than December 15 before  
          the expiration of the charter.  According to the author,  
          existing law currently lacks a timeline by which local districts  
          and CBE must decide on charter school renewal petitions which  
          hinders completion of the appeal process when charter schools  
          are not renewed by the authorizer.  Setting a deadline by which  
          districts and CBEs must make renewal decisions would facilitate  
          completion of the appeal process prior to the end of the fiscal  
          year.  This would allow students, families, and charter  








                                                                  AB 2543
                                                                  Page  3


          employees to make informed decisions regarding enrollment and  
          employment in a timely manner.   

          Currently districts hear renewal petitions on a cyclical basis  
          throughout the year.  By requiring charter renewals to be  
          completed by December 15, school districts will be analyzing  
          renewal petitions over a condensed timeframe.  This could create  
          some economies of scale, but could also create workload issues  
          for authorizers with large numbers of charter schools.

          The existing renewal timeline requires authorizers to make a  
          final decision on a renewal petition within 60 days of receiving  
          the petition.  A 30 day extension can be granted if both the  
          authorizer and the charter school agree, thus making the  
          timeline a total of 90 days.  The September 15 submission  
          deadline will ensure that this 90 timeframe is protected.  With  
          this application deadline, the authorizer would be required to  
          renew or deny the petition by November 15th, or after mutual  
          agreement, by December 15.   This would not preclude an  
          authorizer from setting an earlier date if the authorizer wishes  
          to stagger the renewals over a few months prior to September,  
          and it will not affect the existing 60 or 90 day renewal  
          decision timeline already in statute. 

          Consistency with charter revocation:  This bill requires charter  
          school renewal appeals to be filed within 30 days to the CBE or  
          the SBE, which is consistent with existing law for charter  
          school revocation appeals.  Existing law authorizes charter  
          schools to file a renewal appeal up to 180 days after the  
          denial.  This can lengthen the appeal process up to 20 months  
          overall, if all the extensions are exhausted throughout the  
          process.  This bill would condense the appeal process to 12  
          months if all extensions are exhausted.  

           
          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087 

                                                                FN: 0004519