BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 680
                                                                  Page  1

          Date of Hearing:   June 17, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                 SB 680 (Romero and Huff) - As Amended:  May 28, 2009

           SENATE VOTE  :   37-0
           
          SUBJECT  :   School attendance: interdistrict transfers.

           SUMMARY  :  An urgency measure that eliminates the sunset and  
          repeal dates for the District of Choice (DOC) program; repeals  
          the prohibition on new districts electing to become a DOC; and,  
          repeals the requirement for the Superintendent of Public  
          Instruction (SPI) to report data on DOCs annually to the  
          Legislature, Governor and the public.  Specifically,  this bill  :   
           

          1)Requires, if the number of transfer applications exceeds the  
            number of transfers the governing board elects to accept,  
            approval for transfer to be determined by a random drawing  
            held in public. 

          2)Requires communications to parents or guardians by districts  
            electing to enroll pupils under the DOC program to be  
            factually accurate and not target individual parents or  
            guardians on the basis of their child's actual or perceived  
            academic or athletic performance.

          3)Authorizes DOCs to give priority for attendance to children of  
            military personnel.

          4)Repeals the authorization for districts to cap the maximum  
            number of students transferring out at 10% based on average  
            daily attendance (ADA) for the duration of the program.

          5)Repeals the requirement for the SPI to calculate the  
            apportionment for basic aid districts that elect to become  
            DOCs.

          6)Repeals the requirement for the State Allocation Board to  
            develop procedures to ensure that the ADA of pupils admitted  
            by a DOC be credited to that district for the purposes of any  
            determination under Article 2 of Chapter 12 of Part 10 that  
            utilizes an ADA calculation.








                                                                  SB 680
                                                                  Page  2


          7)Repeals an authorization and instead requires DOCs to keep an  
            accounting of the following and report the information to the  
            governing board of the school district:
             a)   The number of requests granted, denied, or withdrawn and  
               in the case of denied requests, the records may indicate  
               the reasons for the denials;
             b)   The number of pupils transferred out of the district;  
               and,
             c)   The number of pupils transferred into the district.

          8)Requires, no later than May 15 of each year, the school  
            district to report the data collected and its status as a DOC  
            to each school district to which it is geographically  
            adjacent, the local county office of education, and the SPI;  
            and, deletes the authorization for the SPI to designate a date  
            by which to report the data.

          9)Repeals the requirement for the SPI to make DOC data available  
            to the Governor, the Legislature, and the public on or before  
            April 1 of each year; and, repeals the requirement for the SPI  
            to complete a study by November 1, 2008.

           EXISTING LAW  :  

           1)Main Interdistrict Transfer Authorization.  The main  
            authorization provides for inter-district attendance when both  
            the district of residence and district of proposed attendance  
            agree.  This process allows the parent or guardian of a pupil  
            requesting inter-district attendance to appeal to the County  
            Board of Education in the event that either district refuses  
            the requested transfer.  (Education Code Section 46600)

           2)Districts of Choice  .  Under this authorization, established by  
            AB 19 (Quackenbush), Chapter 160, Statutes of 1993, a school  
            board may declare the district to be a DOC willing to accept a  
            specified number of inter-district transfers.  A DOC is not  
            required to admit pupils but it is required to select those  
            pupils that it does elect to admit through a random process  
            that does not choose pupils based upon academic or athletic  
            talent.  Either the district of residence or DOC may prevent a  
            transfer under this law if the transfer would exacerbate  
            racial segregation.  Each DOC is required to keep records of:  
            1) The number of requests granted, denied, or withdrawn as  
            well as the reasons for the denials; 2) The number of pupils  








                                                                  SB 680
                                                                  Page  3

            transferred out of the district; and, 3) The number of pupils  
            transferred into the district.  Districts are required to  
            report this information to the SPI annually, and the SPI is  
            required to make the information available to the Governor,  
            the Legislature, and the public annually before April 1.  This  
            section is scheduled to sunset July 1, 2009.  (Education Code  
            Section 48300)

           3)Residency Requirements for School Attendance  .  This is an  
            alternative attendance authorization, not necessarily an  
            interdistrict transfer because no interdistrict transfer  
            agreement is established.  Under this section, an elementary  
            pupil is authorized to attend school in a district where the  
            pupil's parent works, rather than where the pupil and parent  
            reside, however, the district is not required to admit the  
            pupil to its schools.  Either the sending district or  
            receiving district may prevent a transfer under this law if  
            the transfer would exacerbate racial segregation.  Once  
            established on the basis of parental employment, this  
            authorization allows a parent to maintain a pupil's enrollment  
            through the 12th grade. This section is scheduled to sunset on  
            July 1, 2012.  (Education Code Section 48204(b))

           FISCAL EFFECT  :  This bill is keyed non-fiscal, however, the  
          Assembly Appropriations Committee has requested this bill be  
          referred to them.  If this bill is passed by the Assembly  
          Education Committee it will be referred to the Committee on  
          Appropriations to consider the fiscal implications.  

           COMMENTS  :  Under the DOC law, the governing board of any school  
          district may declare the district to be a DOC willing to accept  
          a specified number of inter-district transfers.  A DOC is not  
          required to admit pupils but is required to select those pupils  
          that it does elect to admit through a random process and they  
          are prohibited from choosing pupils based upon academic or  
          athletic talent.  

           Differences between the DOC program and other interdistrict  
          transfer options  .  Unlike the main interdistrict transfer law,  
          the DOC law does not require agreement between the district of  
          residence and the receiving district in order for the receiving  
          district (DOC) to admit interdistrict transfers.  The district  
          of residence has little say in the transfer process, except,  
          districts with 50,000 or less ADA may limit the maximum number  
          of transfers each year to 3% of their ADA and may limit  








                                                                  SB 680
                                                                  Page  4

          transfers for the duration of the program to 10% of their ADA.   
          Districts with more than 50,000 pupils in attendance may refuse  
          to transfer more than 1% of their ADA.  A district of residence  
          may also prevent a transfer under this law if the transfer would  
          have a negative impact on a court-ordered or voluntary  
          desegregation plan or the racial and ethnic balance of the  
          district.  
           
          Other differences include:  A DOC that is also a basic aid  
          district is apportioned 70% of the amount the state revenue  
          limit for ADA that otherwise would have gone to the district of  
          residence (the remaining 30% is a savings in revenue for the  
          state).  Transfer priority is given to the siblings of transfer  
          students already attending school in the DOC.  Students with  
          special needs are admitted despite additional incurred costs  
          unless the transfer of those students would require the creation  
          of a new program.
                     
          DOC data is difficult to track  .  Under current law, districts  
          establish themselves as a DOC by adopting a local school board  
          resolution.  Data collection on DOCs and the numbers of  
          transfers they accept or deny began in 2008 and this data is  
          required to be reported to the Legislature by the SPI by April 1  
          each year. 

          SB 80 (Committee on Budget and Fiscal Review), Chapter 174,  
          Statutes of 2007, required the California Department of  
          Education (CDE) to report to the Legislature by November 30,  
          2008 on the effectiveness of the interdistrict transfer program  
          using data provided by school districts to the SPI on the  
          disposition of all interdistrict transfer requests.  CDE did not  
          provide the complete report due to lack of funding.  In lieu of  
          the report, CDE conducted a survey of 100 schools that receive  
          the most inter-district transfers in the state and found only 3  
          districts that have elected to declare themselves a DOC.  It is  
          important to note the survey was not a complete assessment of  
          all DOCs.  The CDE report recommends, however, "Given that only  
          3.9% of the responding districts indicated an active  
          participation in the DOC program, it seems to be a small program  
          with very limited impact.  The CDE sees no significant negative  
          consequences to the program's lapse as scheduled for July 1,  
          2009."

          Interestingly, in a report done by the CDE in 2003, the only  
          solid indicator of a district being a DOC was if the district  








                                                                  SB 680
                                                                  Page  5

          was a basic aid district that received state apportionment for  
          its transfer students.  CDE had to use district  
          self-identification and a survey done by the California  
          Association of School Business Officials to determine the total  
          number or DOCs.  As of 2002, CDE was able to identify 18 small,  
          mostly rural districts as DOCs.  One-half of these districts  
          were basic aid districts.  In 2007, it was reported that there  
          were 11 basic aid districts that were DOCs, according to CDE.

           Removing the Reporting Requirement  .  The bill deletes the  
          requirement for the SPI to report data on DOCs annually to the  
          Legislature, Governor and the public.  Without annual data  
          collection and reporting to the Legislature, how will the  
          effectiveness of the program ever be evaluated?  The committee  
          should consider whether it is appropriate to repeal this annual  
          reporting requirement.

           Repealing the Program's Sunset Date  .   The bill deletes the DOC  
          program sunset and repeal dates.  AB 1407 (Huffman) from 2009,  
          would have extended the sunset and repeal dates for 5 years to  
          allow for further evaluation before the program is extended.   
          The committee should consider whether it is appropriate to  
          delete the DOC program sunset and repeal dates, and extend the  
          program indefinitely, without first properly evaluating the  
          number of districts currently using the program and the  
          effectiveness of the program state-wide.  The committee should  
          further consider whether it is appropriate to repeal both the  
          sunset date and the reporting requirement at the same time. 

           Repealing the 10% Maximum Cap  .  The bill repeals the  
          authorization for districts with less than 50,000 ADA to cap the  
          maximum number of students transferring out at 10% for the  
          duration of the program.  Without a maximum cap for the duration  
          of the program, districts will be unable to cap the total number  
          of students transferring out of their district over time.   
          Instead, districts would only be authorized to cap the annual  
          number of students transferring out at 3%, but there would no  
          longer be a maximum cap over time.  The committee should  
          consider the negative impacts on districts this change will  
          bring to districts that have already reached the 10% maximum  
          cap, and who would be forced to allow more students to transfer  
          out of their district in the future.

           Racial Inequities  .  Rowland Unified School District borders  
          Walnut Valley Unified School District, which is a DOC.  Since  








                                                                  SB 680
                                                                  Page  6

          the inception of the DOC law, 1,649 students have transferred  
          out of Rowland Unified and transferred into Walnut Valley  
          Unified under the DOC law.  According to CDE data, the overall  
          demographic characteristics of Rowland Unified in 2008-09  
          included 60.9% Hispanic students and 20.9% Asian students.   
          Rowland Unified School District has calculated, based on 727  
          students of the 1,649 total students who have transferred out of  
          the district under the DOC law, that Walnut Valley has enrolled  
          52% Asian students and only 20% Hispanic students from Rowland  
          Unified.  One could argue that the percentages of students, by  
          ethnic background, who transferred out of Rowland Unified do not  
          appear to be random since they do not reflect the demographic  
          characteristics of the district overall.  In fact, the  
          percentage of Asian students who transferred out of Rowland  
          Unified is more than twice the total percentage of Asian  
          students in the entire district.  Conversely, the percentage of  
          Hispanic students who transferred out of Rowland Unified is 1/3  
          of the total percentage of Hispanic students in the entire  
          district.  In 2006-07, Rowland Unified reached the maximum cap  
          of 10%, and the district utilized the authority granted in  
          statute to stop any future students from transferring out of  
          their district under the DOC law, due to concerns that Walnut  
          Valley's DOC program had negatively impacted the demographic  
          profile of Rowland Unified.

           Arguments in Support  :  EdVoice, the sponsor of the bill, argues  
          the law is critical to improving the quality of education, as it  
          focuses on the needs of a student and acknowledges the right of  
          a parent to secure the best education possible for his or her  
          child.  It is simply unjust for poor and minority children to be  
          held hostage to a zip code or attendance zone assignment of a  
          persistently low performing school without any other unfettered  
          public school choice.  Nearly 5,000 families across the state  
          are currently benefiting from parent-initiated choices to enroll  
          in the traditional public school that bests meets their child's  
          needs.  If this program is allowed to sunset, these students  
          would immediately be forced to leave their schools, sending them  
          back to their zip code assigned schools that are unfamiliar and  
          not serving their needs.  

           Arguments in Opposition  :  Public Advocates opposes the bill  
          unless amended due to the bill's failure to ensure equal  
          educational opportunities for the most disadvantaged students,  
          and its glaring lack of any accountability system.  We are  
          concerned that the DOC Program, which does not require the  








                                                                  SB 680
                                                                  Page  7

          "home" district to approve a student's transfer, has the effect  
          of "creaming" high-performing students without equally serving  
          the needs of low-income students, students or color, and English  
          Learners.  While in theory the DOC option is open to all  
          students and slots in the DOC are awarded through a lottery,  
          anecdotal assertions suggest that, at least in some districts,  
          participation in the DOC program does not represent the  
          demographics of the district as a whole-as would be expected  
          were the program operating as contemplated by statute.  Public  
          Advocates is also concerned that SB 680 extends and expands the  
          DOC program without providing for an evaluation of the program's  
          impact-in particular whether the program has a discriminatory  
          impact on low-income students, students of color, and English  
          Learners.  CDE's evaluation of the DOC Program, published in  
          November 2008, was not adequately funded and thus fell far short  
          of the rigorous evaluation mandated by SB 80.  The study made no  
          findings or conclusions about the effectiveness of the program,  
          and focused solely on the number of districts that use it.   
          Thus, to date there has been no study of the effectiveness of  
          the DOC program.  This makes the elimination of a sunset date  
          even more concerning and, quite simply, bad public policy.

           Committee Amendments  :  The bill clarifies that communications to  
          parents must not target students with actual or perceived  
          academic or athletic performance, committee staff recommends the  
          bill be amended to specify that students must also not be  
          targeted based on place of residence any other personal  
          characteristic.  To clarify that special education, bilingual or  
          other special needs pupils are not discriminated against in the  
          DOC program, staff recommends the bill be amended to clarify  
          that these populations of students cannot be denied transfer to  
          a DOC regardless of whether the DOC must create a new program to  
          serve that pupil.  The bill repeals the authorization for  
          districts to cap the maximum number of students transferring out  
          at 10% based on ADA for the duration of the program, committee  
          staff recommends the bill be amended to clarify that the 10% cap  
          remains in effect and to allow districts of residence to limit  
          the number of pupils transferring out when the district has a  
          negative or qualified budget certification.  The bill deletes  
          the requirement for the SPI to calculate the state  
          apportionments for basic aid districts and deletes the  
          requirement for the State Allocation Board to develop  
          procedures, committee staff recommends those changes be reversed  
          and existing law remain unchanged.  To ensure adequate data  
          collection on students who elect to transfer to DOCs, committee  








                                                                  SB 680
                                                                 Page  8

          staff recommends the bill be amended to require DOCs to collect  
          data related to pupil demographics, special education status,  
          English learner status and the district of residence for pupils  
          who transfer into their district.  The bill requires DOCs to  
          collect certain data on their transfers, but only authorizes  
          districts to report the reasons for petitions that are denied,  
          committee staff recommends the bill be amended to require  
          districts to report the reasons for transfer denials.  The bill  
          deletes the requirement for the SPI to report DOC data to the  
          Legislature, Governor and the public annually, committee staff  
          recommends those changes be reversed and existing law remain  
          unchanged.  The bill deletes the requirement for the SPI to  
          complete a report evaluating the DOC program by November 1,  
          2008, staff recommends that deletion be reversed and the bill be  
          amended to revise the date by which a census study is due to the  
          Legislature by CDE to November 1, 2010 and specify that the SPI  
          shall report the cutbacks districts of residence have made as a  
          result of the DOC program.  The bill deletes the prohibition on  
          new districts electing to become DOC, staff recommends that  
          deletion be reversed and existing law remain unchanged.  The  
          bill deletes the sunset and repeal dates for the DOC program,  
          staff recommends that deletion be reversed, and instead the  
          sunset and repeal dates be extended to July 1, 2014 and January  
          1, 2015, respectively.  To ensure fairness and transparency,  
          staff recommends the bill be amended to require that compliance  
          with the requirements of this article be subject to the annual  
          audit performed pursuant to Section 41020.

           Related legislation  :  AB 1407 (Huffman) from 2009, was held on  
          the Assembly Appropriations Committee Suspense file, would have  
          extended the sunset and repeal dates for the DOC program for 5  
          years and required a census report on DOC by CDE by November  
          2010.   
           
          Previous legislation  :  AB 270 (Huff) from 2007, extended the  
          authority for DOC inter-district transfers from July 1, 2007 to  
          July 1, 2009, prohibited additional districts from becoming  
          DOCs, and required school districts (electing to accept  
          transfers) to maintain records on the number of requests it  
          receives and annually report the number of requests it receives  
          to the SPI.  The language in this bill was incorporated into SB  
          80 (Committee on Budget and Fiscal Review), Chapter 174,  
          Statutes of 2007.

          AB 97 (Nation), Chapter 21, Statutes of 2004, extended the  








                                                                  SB 680
                                                                  Page  9

          sunset date for one year for the DOC authorization and required  
          the SPI to continue the calculation for the Special Disabilities  
          Adjustment using the current incidence multiplier to allow  
          special education local plan areas to continue to receive funds  
          provided through 2003-04 until a new multiplier is calculated.

          AB 1993 (Quackenbush), Chapter 160, Statutes of 1993,  
          established school DOC and allowed the governing board of any  
          school district to declare the district to be a DOC willing to  
          accept a specified number of inter-district transfers.
           
          REGISTERED SUPPORT / OPPOSITION  :
           
          Support 
           
          EdVoice (Sponsor)
          Cardiff School District
          College School District
          Oak Park Unified School District
          Santa Clara Elementary School District
          Numerous Individuals
           
            Opposition 
           
          Alhambra Unified School District
          Azusa Unified School District
          California School Boards Association
          California State PTA
          Charter Oak Unified School District
          Covina-Valley Unified School District
          Pasadena Unified School District
          Pomona Unified School District
          Public Advocates
          Rowland Unified School District
          Numerous Individuals


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