BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 165|
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                                 THIRD READING


          Bill No:  AB 165
          Author:   Lara (D), et al.
          Amended:  8/30/11 in Senate
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  6-1, 6/29/11
          AYES:  Lowenthal, Alquist, Hancock, Liu, Price, Simitian
          NOES:  Blakeslee
          NO VOTE RECORDED:  Runner, Huff, Vargas, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  5-4, 8/25/11
          AYES:  Kehoe, Alquist, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Lieu, Runner

           ASSEMBLY FLOOR  :  53-21, 6/2/11 - See last page for vote


           SUBJECT  :    Pupil fees

           SOURCE  :     Author


           DIGEST  :    This bill codifies in statute the constitutional 
          prohibition on the imposition of pupil fees; it defines 
          pupil fees and related terms and expressly prohibits pupil 
          fees declarative of existing law, and establishes new 
          notice requirements, as well as complaint and enforcement 
          procedures related to pupil fees. 

           ANALYSIS  :    The California Constitution requires the 
          Legislature to provide for a system of common schools by 
          which a free school shall be kept up and supported in each 
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          district at least six months in every year, after the first 
          year in which a school has been established. 

          Existing law establishes that state-supported educational 
          opportunities are a right to be enjoyed without regard to 
          economic status and prohibits school officials from 
          requiring any pupil, except for pupils in classes for 
          adults, to purchase any instructional material for the 
          pupils' use in the school.  

          Existing law specifies that a pupil enrolled in a school 
          shall not be required to pay any fee, deposit, or other 
          charge not specifically authorized by law.  

          Existing law, through the California Code of Regulation, 
          requires school districts to adopt Uniform Complaint 
          Procedures (UCP) that provide a process by which the public 
          can file written statements alleging discrimination or a 
          violation of a federal or state law and that delineate the 
          responsibilities of the complainant, the local educational 
          agency, and the California Department of Education (CDE).  
          Existing law, through statute, establishes a UCP for 
          complaints regarding instructional materials, emergency or 
          urgent facilities conditions that pose a threat to the 
          health and safety of pupils, and teacher vacancy or 
          misassignment.  AB 347 (Nava), Chapter 526, Statutes of 
          2007, requires local education agencies that receive 
          intensive instruction funds to post a notice in grades 
          10-12 classrooms and provide an area on complaint forms for 
          alleging a lack of opportunity to receive intensive 
          instruction and services for pupils who have not passed one 
          or both parts of the California High School Exit Exam.  

          This bill:

          1. Requires, commencing with the 2011-12 fiscal year, a 
             superintendent of a school district, county 
             superintendent of schools, or governing body of a 
             charter school to determine whether an unlawful pupil 
             fee has been or, is being charged, in the current fiscal 
             year.

          2. Requires a determination of unlawful fees to be 
             presented at a public hearing of the governing board or 

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             body before the end of the 8th week after the first day 
             of school, and requires the governing board or body to 
             take action to provide full reimbursements to all 
             affected pupils, parents, or guardians within 10 weeks 
             of the beginning of the school year in which the 
             determination is made.  For the 2011-12 fiscal year, 
             determinations must be made by March 1, 2012, and any 
             required reimbursements must be paid by March 15, 2012.  
             Additionally, the superintendent of a school district, 
             county superintendent of schools, or governing body of a 
             charter school will be required to present its 
             determination in a public meeting.

          3. Provides that reimbursement responsibility belongs to a 
             superintendent of a school district, county 
             superintendent of schools, or governing body of a 
             charter school, for any illegal fees charged by any 
             actor or entity under its jurisdiction; the LEA may not 
             have received the money collected, which makes a 
             "reimbursement" actually a new cost to the LEA.

          4. Adds a complaint procedure related to the imposition of 
             pupil fees for participation in educational activities 
             to the existing Williams Uniform Complaint Process 
             (WUCP), established under the  Williams v. State of 
             California  settlement agreement.

          5. Requires school districts and charter schools to use the 
             WUCP to identify and resolve any deficiencies related to 
             the imposition of pupil fees, as specified, and provides 
             for an appeals process

          6. Adds to the existing notice requirements of the WUCP 
             (which requires a notice to be posted in each classroom 
             in each school in the school district), to include 
             notice that pupils shall not be charged fees, including 
             security deposits, or be required to purchase materials 
             or equipment, to participate in a class or an 
             extracurricular activity, as specified.

          7. Makes pupil fees subject to the compliance audits 
             process, and specifies that an audit exception related 
             to the imposition of pupil fees shall not be deemed 
             corrected until full reimbursement has been made.

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          8. Requires that emergency regulations be adopted by the 
             CDE to implement new audit requirements. 

          9. Requires the SPI to withhold one percent of the 
             administrative costs of school districts, county offices 
             of education, or charter schools in the subsequent year 
             if the auditor finds the entities' violation of pupil 
             fee requirements has not been corrected, or an entity 
             has a new audit exception for this purpose, as 
             specified, until the entity has reimbursed all unlawful 
             pupil fees collected.

           Comments
           
           Need for the bill  .  The California Constitution entitles 
          public school pupils to a free and equal education and 
          current law specifies that state-supported educational 
          opportunities are a right to be enjoyed without regard to 
          economic status.  Additionally, the California Code of 
          Regulations prohibits schools from charging pupils fees, 
          deposits, or other charges not specifically authorized by 
          law.  In 1984, the California Supreme Court ruled in 
           Hartzell v. Connell  that public schools cannot charge 
          students or families' fees as a condition for participating 
          in educational programs, including extracurricular 
          activities.  The Court opined that because extracurricular 
          activities are an integral component of public education 
          and are therefore part of the educational program, they 
          must be free.  The opinion further stated that "imposition 
          of fees as a precondition for participation in 
          non-statutory educational programs offered by public high 
          school districts on a non-credit basis violates the free 
          school guarantee."

          A March 2011 report released by the University of 
          California Los Angeles Institute for Democracy, Education 
          and Access noted that 19 percent of school principals 
          surveyed indicated that their schools have begun requiring 
          students and families to pay for instructional materials.  
          In August 2010, the American Civil Liberties Union (ACLU) 
          released a report that detailed the results of an 
          investigation that found more than 50 public school 
          districts that charge pupil fees for participating in 

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          educational programs.  The types of fees ranged from 
          charges for text books, workbooks, science lab fees, 
          material fees for fine arts classes, and required purchases 
          of physical education uniforms.  The study found that 
          charges for participation in extracurricular activities 
          were often in the hundreds, and in some cases, thousands of 
          dollars.  

           Overview of pending litigation  .  In September 2010, the 
          ACLU filed a class action lawsuit against the state (  Jane 
          Doe, et al. v. State of California, et al. , Super.  Court, 
          Los Angeles County, 2010, BC445151) claiming that many of 
          the fees charged for school activities and supplies violate 
          the California Constitution and various provisions of the 
          Education Code.  

          In December 2010, former Governor Schwarzenegger and the 
          ACLU announced a tentative settlement in  Doe v. California . 
           The settlement included legislative proposals that would 
          have established a monitoring and enforcement system in 
          order to ensure that school districts do not unlawfully 
          charge fees to students for educational activities.  The 
          parties agreed to engage in good faith efforts to obtain 
          the enactment of legislation to implement the legislative 
          proposals.  The settlement was signed and 
          approved by the parties, although it was not finalized by 
          the court and did not become effective.  

          The complaint was amended in April 2011 to include the 
          newly elected SPI, Tom Torlakson, the CDE, and the SBE.  
          The complaint states:  "The State's failure has also 
          deprived students who are unable to pay mandatory fees of 
          their "fundamental right" to "basic educational equality" 
          under the California Constitution.  By allowing its public 
          school districts to condition access to educational 
          services and the quality of educational services offered to 
          students dependent upon payment of student fees, the State 
          has failed to perform its constitutional duty of ensuring 
          basic educational equity irrespective of economic status.  
          It thereby sanctions a dual school system which 
          deliberately favors students from families of means over 
          students from disadvantaged households.  Although the State 
          may currently be operating under difficult budgetary 
          constraints, 'financial hardship is no defense to a 

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          violation of the free schools guarantee.' (  Hartzell  , 35 Cal 
          3d at 912) The California Constitution's guarantee to a 
          free and equal public education is absolute and cannot be 
          qualified by the finances of either the State or the 
          students' families."  

          In May 2011, the ACLU met with the SPI and SBE and as a 
          result, submitted a joint Status Statement to the court 
          stating:  "Plaintiffs and the State Education Defendants 
          would agree to a temporary stay of all proceedings to allow 
          for movement of this bill through the legislative process.  
          If this bill passes through the Assembly and Senate and is 
          signed by the Governor, it may provide the full relief 
          sought in Plaintiff's First Amended Complaint, and 
          therefore this litigation would no longer be necessary."  
          The State of California did not agree to the stay and 
          suggested that the action be dismissed, pending movement of 
          this bill through the legislative process.  

          The primary impact of this bill is to provide statutory 
          reinforcement of the constitutional prohibition on the 
          imposition of pupil fees in California's public schools. In 
           Hartzell v. Connell  (1984; 35 Cal.3d 899, 201), the 
          California Supreme Court articulated how pupil fees on 
          educational activities, including those imposed for 
          extracurricular activities, violate the California 
          Constitution.  The Court basically stated that fees may be 
          charged for activities that are recreational, but not for 
          those that are educational; however, it went on to opine 
          that extracurricular activities are an integral 
          component of public education, that they are a part of the 
          educational program, and that they thus must be free.  The 
          opinion stated that, "Once the community has decided that a 
          particular educational program is important enough to be 
          offered by its public schools, a student's participation in 
          that program cannot be made to depend upon his or her 
          family's decision whether to pay a fee or buy a toaster, 
          imposition of fees as a precondition for participation in 
          non-statutory educational programs offered by public high 
          school districts on a non-credit basis violates the free 
          school guarantee." 

          The Court further stated that, "The constitutional defect 
          in such fees can neither be corrected by providing waivers 

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          to indigent students nor justified by pleading financial 
          hardship."  The Court decided that a school district may 
          not charge a fee or require students to purchase necessary 
          materials, even if the district maintains a special fund to 
          assist students with financial need or waives the fee for 
          students with financial need; a fee waiver policy for needy 
          students does not make the fee allowable.  The opinion 
          stated, "Nor may a student's participation be conditioned 
          upon application for a special waiver.  The stigma that 
          results from recording some students as needy were 
          recognized early in the struggle for free schools."  
          Additional lawsuits alleging  Hartzell  violations have been 
          filed against school districts over the last 25 years; in 
          nearly all of the cases, the issue has either been settled 
          out of court or the plaintiff has prevailed. 

          On August 10, 2010, the ACLU released a report that 
          detailed the results of an investigation which uncovered 
          more than 50 public school districts in which students must 
          pay fees in order to participate in educational programs.  
          The types of fees being charged included charges for text 
          books, workbooks, science lab fees, material fees for fine 
          arts classes, and required purchases of physical education 
          uniforms, as well as charges in the hundreds, and in some 
          cases thousands, of dollars for participation in 
          extracurricular activities.  In September 2010, the ACLU 
          filed a class action lawsuit against the state, claiming 
          that many fees charged to students for school activities 
          and supplies violated the California Constitution and 
          various provisions of the Education Code �  Jane Doe, et al. 
          v. State of California, et al.  , (Super. Ct. Los Angeles 
          County, 2010, BC445151)]. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2011-12     2012-13    
           2013-14  Fund

           District self-check                                    

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          Potentially substantial reimbursable                   
          General
                              mandate

          Complaint process                                 
          Potentially substantial reimbursable              General
                              mandate

          Notice requirements                          Potentially 
          significant reimbursable                     General
                              mandate

          CDE administration/      $200      $400      $400General
            audits

           SUPPORT  :   (Per Senate Committee on Education analysis f 
          6/20/11) (unable to reverify at time of writing)

          American Civil Liberties Union
          Association of American Publishers
          California Catholic Conference, Inc. 
          California Federation of Teachers
          California State PTA

           OPPOSITION  :    ((Per Senate Committee on Education analysis 
          f 6/20/11) (unable to reverify at time of writing)

          California Association of School Business Officials
          Metropolitan Education District
          Riverside County School Superintendent Association
          San Bernardino County District Advocates for Better Schools

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          there are no accountability systems in place to identify 
          and address such fees.  This bill reinforces existing 
          prohibitions against public schools charging pupil fees and 
          establishes an accountability system to identify and 
          correct unlawful fees.  According to the author's office, 
          the purpose of this bill is to explicitly codify the 
          prohibition of school fees, empower students and parents to 
          challenge unlawful fees and receive reimbursements through 
          existing administrative procedures that provide local 
          resolution in a timely manner.  


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           ARGUMENTS IN OPPOSITION  :    Opponents object to a public 
          hearing to determine if illegal fees were charged during 
          the year.  According to the San Bernardino County District 
          Advocates for Better Schools, "While it is appropriate to 
          require fees to be repaid with interest, districts should 
          not have to annually affirm that they have not violated 
          student rights.  Under no other forum is a district 
          required to admit that it has violated the law and provide 
          a remedy even if no complaint has been filed."  
           

           ASSEMBLY FLOOR  : 
          AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Conway, Davis, Dickinson, Eng, Feuer, Fong, 
            Fuentes, Furutani, Galgiani, Gatto, Gordon, Hayashi, 
            Roger Hern�ndez, Hill, Huber, Hueso, Huffman, Lara, 
            Bonnie Lowenthal, Ma, Mendoza, Miller, Mitchell, Monning, 
            Pan, Perea, V. Manuel P�rez, Portantino, Skinner, 
            Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NOES: Achadjian, Cook, Donnelly, Fletcher, Garrick, Grove, 
            Hagman, Harkey, Jeffries, Jones, Knight, Logue, Mansoor, 
            Morrell, Nestande, Nielsen, Norby, Silva, Smyth, Valadao, 
            Wagner
          NO VOTE RECORDED: Bill Berryhill, Beth Gaines, Gorell, 
            Halderman, Hall, Olsen


          CPM:do  8/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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