BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1116 (Huff)
          
          Hearing Date:  05/10/2010           Amended: 05/04/2010
          Consultant:  Dan Troy           Policy Vote: ED 7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 1116, an urgency measure, would establish and  
          define "heritage schools" in the Education Code as entities that  
          are not full-time day schools that offer foreign language  
          education or training and/or education on the culture,  
          traditions, or history of a country other than the United  
          States.  The bill would require heritage schools to file an  
          affidavit with the Department of Education detailing information  
          concerning personnel and the course of study and would also  
          require employees to be fingerprinted and undergo background  
          checks, as specified.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Heritage school affidavits          Startup costs ranging from  
          $100 to $150,    Special*
                                                            ongoing costs  
          of $50, depending
                                            on the number of affidavits  
          filed, costs to be 
                                            mitigated or offset by fees

          Department of Justice                $1,800 in initial costs and  
          $370 ongoing     Special**
                                   to be fully offset by fees

          *New Account created by the bill
          **Fingerprint Fees Account                                  
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.
          
          Current law establishes certain health and safety licensing  
          standards for the operation of child care centers.  These  










          licensing standards are enforced by the Department of Social  
          Services (DSS), typically through a site review conducted once  
          every five years.  
          Current law requires private schools to file an affidavit with  
          the Superintendent of Public Instruction detailing specific  
          information relative to school personnel and the courses of  
          study, and requires employees to be fingerprinted.  The  
          Department of Education maintains a database with the  
          information from the affidavits and publishes a list of schools  
          with specified information.  

          This bill would define "heritage schools" as schools that serve  
          children who are school aged and who attend public or private  
          full-time day schools; specify hours of operation; offer  
          education or tutoring in a language other than English; offer  
          education on the culture, traditions or history of country other  
          than the United States; offer culturally enriching activities;  
          maintain membership in a state or national cultural or language  
          association; comply with applicable local government  
          regulations; and do not operate out of a residence.
          Page 2
          SB 1116 (Huff)

          Essentially, these are schools or centers that offer activities  
          and education intended to maintain the heritage of a particular  
          culture, such as instruction in language, dance, and other  
          traditions.  

          This bill would require every person, firm, association,  
          partnership or corporation offering or conducting heritage  
          school instruction to file, between the first and 15th day of  
          October of each year with the Superintendent of Public  
          Instruction an affidavit, under penalty of perjury, by the owner  
          or other head setting forth the following information for the  
          current year:

                 All names of the person, firm, association, partnership,  
               or corporation under which it has done and is doing  
               business.
                 The address of every place of doing business of the  
               person, firm, association, partnership, or corporation  
               within the State of California.
                 The address of the location of the records of the  
               person, firm, association, partnership or corporation, and  
               the name and address of the custodian of the records.
                 The names and addresses of the directors and principal  










               officers of the person, firm, association, partnership, or  
               corporation.
                 The school enrollment, by grades, number of teachers,  
               co-educational or enrollment limited to boys or girls, and  
               boarding facilities.
                 That specified records are kept at the address stated,  
               and are true and accurate.
                 Criminal records summary information has been obtained  
               pursuant to current law affecting private school employees.
          
          A $100 fee would be assessed for first time filers with a $55  
          annual fee required in subsequent years for deposit into the  
          Heritage Enrichment Resource Fund, for the purposes of  
          mitigating the Department of Education's operational costs.  

          The bill would further require employees to be fingerprinted, as  
          specified, and the Department of Justice would be required to  
          ascertain whether the individual has been arrested or convicted  
          of a crime insofar as that fact can be ascertained from  
          available information.  

          This bill would establish heritage schools in the Education Code  
          similar to the process by which private K-12 schools are  
          recognized.  Earlier legislative efforts have treated heritage  
          schools as child care providers, and have sought to exempt them  
          from child care facility licensing requirements - and the  
          associated applications, fees, and inspections - provided that  
          the school met other specified standards.  

          The Department of Social Services (DSS) is responsible for the  
          monitoring and licensing of child care providers. This bill  
          would require that notice be provided to the parent or guardian  
          of an enrollee that the school does have a child care license.  
          The bill provides no mechanism or obligation for the Department  
          of Education or the Department of Social Services to monitor the  
          schools to ensure that specified requirements are being met.  
          Page 3
          SB 1116 (Huff)

          In lieu of monitoring, the bill requires the heritage to meet  
          specified requirements.  In addition to those mentioned earlier,  
          the bill would require the director of the heritage school to  
          meet certain health and safety obligations including training in  
          pediatric first aid, CPR, and preventive health practices.   
          Also, employees would need to undergo a screening for  
          tuberculosis, pupils would be required to have access sinks,  










          toilets, and drinking water, and pupils would not be allowed to  
          have access to cleaning supplies or medication, except as  
          otherwise provided by law.

          If the workload is similar for what is done for private schools,  
          the Department of Education estimates costs could be as high as  
          $235,000 in the first year and $212,000 ongoing.  Staff notes,  
          however, that Department is not required to do much other than  
          to collect the affidavits.  It is reasonable to assume that the  
          Department would incur startup costs related to the development  
          of the affidavit and of a database, and for technical assistance  
          and outreach to heritage schools, but these costs are likely to  
          be less than they are for private school work as there may be  
          fewer heritage schools and the Department is not required to  
          monitor compliance.  Staff assumes a first year cost in the  
          range of $100,000 to $150,000, and ongoing work of $50,000.  To  
          the extent the required fees mitigate these costs, the pressure  
          on the general fund would be reduced.  

          The Department of Justice (DOJ) estimates one-time costs of $1.8  
          million for work related to the fingerprinting and criminal  
          background checks, and ongoing costs of $370,000.  These costs  
          would be entirely covered by fees as DOJ is authorized to assess  
          sufficient fees to cover the expense.  The figures could be  
          higher or lower depending on the number of heritage schools that  
          file an affidavit.  DOJ assumes there are 3,000 schools for this  
          estimate, though it is unknown exactly how many of these schools  
          are currently in operation.  Presumably, these costs would be  
          lower if there are fewer schools.  

          This bill's key unknown cost factor is the number of heritage  
          schools, as there is no reliable estimate of this figure.  If  
          the Department's startup costs are $150,000, there would need to  
          be 1,500 heritage schools to submit an affidavit and fee to  
          offset the costs.  If there are fewer than that number (or fewer  
          willing to file the affidavit), this bill would represent a cost  
          to the General Fund.  Staff notes that this cost uncertainty  
          could be removed if the bill were amended to allow the  
          Department to assess and collect fees that were sufficient to  
          cover the costs.  
          
          SB 379 (Huff, 2009), which would have defined heritage schools  
          in the Health and Safety Code and established requirements for  
          them in lieu of standard child care licensing requirements, was  
          held on this committee's suspense file. 











          AB 1888 (Huff, 2008), legislation similar to SB 379, was held  
          under submission by the Assembly Appropriations Committee.