BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 401 (Ammiano)
          As Amended  April 26, 2011
          Majority vote 

           EDUCATION           6-3                                         
           
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          |Ayes:|Brownley, Ammiano,        |     |                          |
          |     |Buchanan, Bonilla,        |     |                          |
          |     |Carter, Eng               |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Norby, Hagman, Halderman  |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Establishes a statewide cap of 1,450 on the number of 
          charter schools that can operate until January 1, 2017; requires 
          the Legislative Analyst's Office to report to the Legislature on 
          the effectiveness of charter schools, and, prohibits charter 
          school personnel with hiring authority from employing relatives. 
           Specifically,  this bill  :  

          1)Requires the Legislative Analyst's Office to report to the 
            Legislature on the effectiveness of charter schools by July 1, 
            2015.

          2)Prohibits charter school personnel, that work for a charter 
            school operated by a private entity, to advocate for, appoint, 
            employ, promote, or advance any individual who is a relative 
            to a position in the charter school or for a contract with the 
            charter school over which that person exercises jurisdiction 
            or control; and, specifies that the approval of budgets does 
            not constitute jurisdiction or control.

          3)Requires a petition for a charter school to include full 
            disclosure of the identity of all individuals who are 
            employed, plan to be employed by the charter school, or have a 
            contract with the charter school, who are related to the 
            charter school owner, president, chairperson of the governing 
            body, superintendent, governing body member, principal, 
            assistant principal, or any other person employed by the 
            charter school who has equivalent decision-making authority. 









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          4)Defines charter school personnel as a charter school owner, 
            president, chairperson of the governing body, superintendent, 
            governing body member, principal, assistance principal or any 
            other person employed by the charter school who has equivalent 
            decision-making authority to appoint, employ, promote or 
            advance individuals.

          5)Defines relative as a parent, child, sibling, uncle, aunt, 
            first cousin, nephew, niece, spouse, father-in-law, 
            mother-in-law, son-in-law, daughter-in-law, brother-in-law, 
            sister-in-law, stepparent, stepsibling, stepchild, half 
            brother or half sister.

           FISCAL EFFECT  :  This bill is keyed non-fiscal.

           COMMENTS  :  According to the California Department of Education 
          (CDE), the 2009-10 count of operating charter schools is 815 
          with student enrollment of more than 323,000 in the state.  This 
          includes three statewide benefit charters and 20 state board of 
          education approved charters.  

          This bill will establish a statewide cap of 1,450 on the number 
          of charter schools that can operate in California.  This bill 
          also establishes anti-nepotism hiring standards for charter 
          schools operated by private entities.  According to the author, 
          current law only provides an increasing cap on the number of 
          charter schools and little or no accountability.  Many reports, 
          including the Stanford Center for Research on Education Outcomes 
          (CREDO) Report, demonstrate that charter schools are not the 
          panacea for closing the achievement gap; however, they are 
          provided wide sweeping power and no true accountability.  While 
          the current cap is much higher than the actual number of charter 
          schools in the state, the growth in the number of charter 
          schools is accelerating.  One of the many concerns with current 
          law is the lack of employment guidelines for these publicly 
          funded schools.  In other states, like that of Florida, there 
          are guidelines for charter schools on hiring, promoting, and 
          assigning relatives.  This bill attempts to address nepotistic 
          hiring practices within these schools.

          Charter School Cap:  This bill will establish a statewide cap of 
          1,450 charter schools.  The 2010-11 statewide cap on charter 
          schools is 1,450 and there are 911 existing charter schools that 
          have been authorized.  Since this cap is well above the current 








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          number of charter schools statewide, the California Federation 
          of Teachers (CFT) argues that it will not inhibit the growth of 
          charter schools for many years.  The bill also requires the 
          Legislative Analyst's Office to report to the Legislature on the 
          effectiveness of charter schools in the year prior to the sunset 
          date.  
           
           In the last 10 years, on average, there were 86 charter schools 
          approved each year.  If this same rate of approval continues in 
          the future, one could estimate that the cap of 1,450 established 
          by this bill would be reached during the 2016-17 school year.  
          Because the sunset date for this bill is in 2017, the cap of 
          1,450 will likely be reached before the sunset date.  

          Hiring Practices:  This bill establishes anti-nepotism 
          employment standards for charter schools operated by private 
          entities.  The provisions in this bill model existing charter 
          school law in Florida regarding employment prohibitions and 
          disclosure.  Florida's charter school law requires an initial 
          petition for a charter school to include full disclosure of any 
          relatives that have been hired by the decision makers at the 
          school, and it prohibits decision makers at operational charter 
          schools from hiring relatives.  

          Arguments in Support:  According to CFT, for many, charter 
          schools have become a place to be the exception to the rules:  
          rules of accountability, public transparency, workers' rights 
          and most importantly students' rights.  They should not be 
          exempted from public employment practices.  They should be 
          financially responsible and transparent.  Until charter schools 
          actually follow the rules of student access, academic financial 
          accountability, and employment laws, they should not be allowed 
          to grow to numbers that rob the resources of our neighborhood 
          schools.

          Arguments in Opposition:  According to the California Charter 
          Schools Association, while the charter school movement is 
          growing in California, there is universal agreement that it is 
          not growing as fast as the current limits allow.  Moreover, 
          imposing a hard cap is a step backward, creating unnecessary 
          artificial and arbitrary limits on charter schools after years 
          of nurturing their responsible growth and embracing them as an 
          important resource in our public education system.









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           Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087 
                                                                FN: 0000322