BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       AB 2543
          AUTHOR:        Bonnie Lowenthal
          AMENDED:       April 28, 2010
          FISCAL COMM:   No             HEARING DATE:  June 30, 2010
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Charter schools:  Charter renewal.
          
           SUMMARY   

          This bill establishes timelines for charter school renewals  
          and appeals.  

           BACKGROUND  

          Existing law, the Charter Schools Act of 1992, provides for  
          the establishment of Charter schools in California for the  
          purpose, among other things, of improving student learning  
          and expanding learning experiences for pupils who are  
          identified as academically low achieving.  (Education Code   
          47601 et. seq.)  

          Existing law authorizes a charter to be granted for not more  
          than five years and requires the renewal and any material  
          revision of the provisions of the charter to be made only  
          with the approval of the authority that granted the charter  
          and be based on the same standards as the original charter.   
          Existing law requires a charter school whose renewal petition  
          has been denied to abide by the same appeals process that  
          exists for an initial charter school petition:  If a school  
          district governing board denies a petition, a petitioner may  
          appeal to the county board of education (CBE).  If the county  
          board of education also denies the petition, the petitioner  
          is authorized to submit the petition to the State Board of  
          Education (SBE) for approval.  (EC  47607.5)

           ANALYSIS  

           This bill  :

          1)   Requires a charter school to submit a renewal petition  




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               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; specifies that a chartering  
               authority 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 chartering authority or  
               any other provision of this part shall not be affected  
               by these provisions.  

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

          3)   Requires a charter school that elects to appeal the  
               denial of its renewal application to submit is appeal  
               application to the CBE or the SBE, as applicable, within  
               30 days of the denial.  

           STAFF COMMENTS  

           1)   Need for the bill  :  According to the sponsor of this  
               bill, the Los Angeles County Office of Education  
               (LACOE), the lack of statutory timelines for the  
               submission and review of charter renewal petitions  
               hinders completion of the appeal process by the end of  
               the school year.  In some situations, local boards have  
               not denied a renewal petition until May or June of the  
               school year, requiring a CBE or the SBE to hear appeals  
               in July, August, or September.  Setting a deadline by  
               which districts and CBEs must make renewal decisions  
               would facilitate the completion of the appeal process  
               prior to the end of the school year, which would allow  
               students, families, and charter employees to make  
               informed decisions regarding enrollment and employment  
               options for the subsequent school year.  

           2)   Charter schools  .  Charter schools are public schools  
               that provide instruction in any of grades K-12.   
               Currently, charter schools serve approximately four  
               percent of the state's 6.3 million public school  
               students.  A charter school is usually created or  
               organized by a group of teachers, parents and community  
               leaders, or a community-based organization and may be  




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

          According to the California Department of Education (CDE), 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.  

           3)   Renewal process  .  A charter school must meet at least  
               one of the following performance standards in order to  
               be renewed: (1) attainment of the school's Academic  
               Performance Index (API) growth target in two of the last  
               three years or in the aggregate last three years; (2) an  
               API decile ranking of four or better in the prior year  
               or in two of the last three years; (3) a Similar Schools  
               API ranking of four or better in two of the last three  
               years; (4) academic performance that is at least equal  
               to the academic performance of the public schools that  
               the charter school pupils would otherwise been required  
               to attend; or (5) qualification for participation in the  
               Alternative School Accountability Model.  

          Currently, districts hear renewal petitions on a cyclical  
               basis throughout the year.  The existing timelines  
               require 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, which extends  
               the timeline to a total of 90 days.  Thus, the September  
               15 deadline is consistent with the existing decision  
               timeframes established in current law.  However, the  
               Charter Schools Association points out that the  
               September 15 deadline may make it difficult for charter  
               schools to address the required accountability measures  
               because test scores are often not available by that  
               date.  




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          The California School Boards Association (CSBA) encourages  
               school district and county governing boards to establish  
               timelines and procedures that consider the needs of the  
               district as well as the students, parents/guardians, and  
               staff of the charter school.  In its manual for charter  
               school governance teams, CSBA notes that such procedures  
               should "provide sufficient time for the board to review  
               the renewal petition, notify the charter school of its  
               decision, allow for the possible appeal of the board's  
               decision for the CBE or the SBE, and enable students to  
               be otherwise accommodated before the start of the school  
               year if the charter renewal is denied."  

          By establishing uniform deadlines for the renewal process,  
               this measure could help ensure that school districts  
               receive renewal applications in a timely manner and may  
               assure that county boards and the SBE do not get  
               "jammed" with renewal appeals that create pressure to  
               make quick decisions before the next school year begins.  
                However, by requiring charter renewals to be completed  
               by December 15, school districts will be analyzing  
               renewal petitions over a condensed timeframe.  Further,  
               these deadline may not reasonably accommodate situations  
               in which the authorizer has required a petitioner to  
               submit new information, which may "restart" some of the  
               review timelines.  Although there could be some  
               efficiency through this process, it could create  
               workload issues for authorizers with large numbers of  
               charter schools, such as the Los Angeles Unified School  
               District (LAUSD), which has 160 authorized charters.   
               Further, since the ending date for charters may not be  
               standardized, is it feasible to establish a standardized  
               timeframe for renewal?  Could the dates specified in  
               this bill reduce the flexibility local governing boards  
               now have to adopt deadlines and procedures that best  
               suit local circumstances?  

          Should the Committee wish to pass this bill, Staff recommends  
               amendments to allow greater deadline flexibility in case  
               schools do not have their test data by September 15.  

           4)   Other considerations  .  An argument could be made that  
               this bill is unnecessary as authorizing boards have the  
               authority under current law to establish deadlines and  
               procedures for charter renewals.  However, as the number  




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               of charter schools increases and governing boards devote  
               larger portions of their agendas to the establishment or  
               renewal of charter schools, the workload associated with  
               untimely submissions and appeals could also 
               increase.  Although it is not clear that dates specified  
               in this bill will work for 
               everyone, the establishment of deadlines may enable  
               greater efficiency in the renewal process.  

           5)   Policy arguments  .  

          Proponents contend that this bill improves the renewal  
               process by establishing clear deadlines by which school  
               districts and county boards must make renewal decisions  
               and will facilitate the completion of the appeal process  
               prior to the end of the fiscal year.  

          Opponents argue that while the September 15 deadline could be  
               adjusted by mutual agreement between the charter school  
               and the authorizer, the school would be at a  
               disadvantage if the authorizer does not agree to  
               extending the timeline.  

           6)   Related and prior legislation  .  

          AB 1950 (Brownley), which is scheduled to be heard by this  
               Committee on June 30, 2010, establishes academic and  
               fiscal accountability standards relating to charter  
               schools.  

          AB1982 (Ammiano), limits until January 1, 2017, the total  
               number of charter schools authorized to operate at 1450  
               and prohibits charter schools operated by a private  
               entity from employing relatives, as specified.  

          AB 1741 (Coto), requires charter schools that expect 15% of  
               their pupil population to be English learners to meet  
               additional petition requirements relating to the  
               education of those students.  The Committee passed this  
               bill as amended on a 5-0 vote on June 23, 2010.

          AB 2363 (Mendoza), requires charter school petitioners to  
               obtain the signatures of permanent classified employees,  
               as specified.  The Committee was held in Committee on  
               June 16, 2010 and is scheduled for "vote only" on June  
               30, 2010.  




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          AB 572 (Brownley, 2009) makes a charter school board subject  
               to the Brown Act open meeting law, the California Public  
               Records Act, and the Political Reform Act.  This bill  
               was passed by this Committee on a 6-1 vote is in the  
               Senate inactive file.  



           SUPPORT
           
          Los Angeles County Office of Education
          Los Angeles Unified School District
          Riverside County Superintendent of Schools

           OPPOSITION
           
          California Charter Schools Association