BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 802
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          Date of Hearing:   March 30, 2011

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
               AB 802 (Blumenfield) - As Introduced:  February 17, 2011
           
          SUBJECT  :   Online education: school attendance

           SUMMARY  :   Relaxes the requirements placed on school districts, 
          county offices of education and charter schools for calculating 
          and funding average daily attendance (ADA) for pupils enrolled 
          in online classes.  Specifically,  this bill  :  

          1)Authorizes a school district, county office of education or 
            charter school, commencing in fiscal year (FY) 2013-14, to 
            claim one day of attendance toward average daily attendance on 
            the basis of a pupil's attendance in an online course or 
            courses on that day if the pupil is enrolled in grade 9, 10, 
            11, or 12; is enrolled in classes in a classroom-based 
            setting, offered through an online program, or both; meets 
            minimum instructional time requirements; and, where each 
            online course in which the pupil is enrolled is a 
            "high-quality" online course.

          2)Defines a "high-quality" online course as meeting all of the 
            following requirements:

             a)   The online course is approved by the governing board of 
               the school district or county office of education, or by 
               the governing body of the charter school, such that the 
               online course is certified, through formal resolution, to 
               meet these requirements, to be as rigorous as a 
               classroom-based course, and to meeting or exceeding all 
               relevant state content standards.

             b)   The teacher of the online course is online at the same 
               time as each pupil in a synchronous online setting, or may 
               be online at different times as each pupil in an 
               asynchronous online setting, where attendance in the 
               asynchronous course is verified using periodic proctored 
               examinations, direct teacher-pupil meetings no less than 
               twice per month, or a visual connection.

             c)   The ratio of full-time equivalent certificated teachers 
               teaching through online instruction to pupils engaging in 








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               that instruction is greater than or equal to the ratio of 
               teachers to pupils in traditional in-classroom study of the 
               same subject matter in the school, school district, or the 
               unified school district with the largest prior-year ADA in 
               that county, or if the course is new or unique, then that 
               ratio cannot exceed 30 to 1.

             d)   The teacher of the online course holds the appropriate 
               subject matter credential, and is "highly qualified" as 
               defined under the federal No Child Left Behind Act of 
               2001(NCLB); additionally requires, if the course is new or 
               unique, that the teacher hold the appropriate subject 
               matter credential and be "highly qualified" under NCLB.

             e)   The subject matter content for the online course is the 
               same as for the traditional classroom-based course of the 
               same course title in the local educational agency (LEA).

             f)   All statewide testing results for pupils enrolled in the 
               online course are reported to the school, school district, 
               and county in which the pupil is regularly enrolled.

             g)   The course is offered by a high school, continuation 
               school, county office of education, or charter school.

             h)   No pupil is assigned to the online course pursuant to 
               this section unless the pupil voluntarily elects to 
               participate in the online course and the parent or guardian 
               of the pupil provides written consent before the pupil 
               participates in an online course.

             i)   No pupil electing to participate in the online course is 
               denied access because the pupil lacks the computer hardware 
               or software necessary to participate in the online course, 
               or is charged for participation in the online course.

             j)   Pupils enrolled in the online course take examinations 
               by proctor or using other reliable methods are used to 
               ensure test integrity, and there is a clear contemporaneous 
               record of pupil work, using the same documentation methods 
               used in classroom-based courses in the same subject.

             aa)  The school, school district or county office of 
               education maintains contemporaneous records to verify the 
               time that a pupil spends online and in related activities 








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               in which a pupil is involved, and maintains records 
               verifying the time that the instructor is online.

          3)Authorizes a school district, county office of education or 
            charter school offering an online course to contract with a 
            LEA, as defined, to provide an online course. Also requires 
            those courses provided under contract to be "high quality", 
            the contract terms to be determined by mutual agreement of the 
            school districts, and that such contracts only be an agreement 
            directly with the school district, county office or charter 
            school offering the online course, and not with the pupils of 
            the offering school district.

          4)Clarifies that nothing in these provisions be interpreted to 
            mean that a charter school provides classroom-based or 
            nonclassroom-based instruction for the purposes of a State 
            Board of Education determination of that distinction.

          5)Requires that pupil attendance accounted for under this 
            authorization be subject to audit as part of the LEA's annual 
            financial audit.

          6)Prohibits a pupil from being credited with more than five days 
            of attendance in a calendar week, or for more days in a fiscal 
            year than the number of days on which regular classes are 
            maintained.

          7)Prohibits the waiver of any provision of this authorization, 
            unless specifically authorized.

          8)Requires the Superintendent of Public Instruction (SPI), in 
            consultation with the Director of the Department of Finance 
            (DOF), on or before December 31, 2011, to make revisions, 
            necessary to conform to these provisions, to any attendance 
            manual or guidance; make revisions necessary to clarify 
            attendance accounting procedures for asynchronous online 
            courses; and make recommendations regarding statutory changes 
            that would be necessary to allow attendance in asynchronous 
            online courses to be included in the calculation of ADA.

          9)Deems a pupil engaged in an online course meeting these 
            requirements to be under the immediate supervision and control 
            of a certificated employee of the district, county office or 
            charter school for the purposes of calculating ADA for 
            non-charter school pupils, or to be attending at the school 








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            site of the charter school for charter school pupils.

          10)Specifies that attendance an online course meeting these 
            requirements is not required to meet the requirements for the 
            Independent Study Program for the purposes of calculating ADA.

          11)Defines "asynchronous" and "synchronous" online course, and 
            "local educational agency."

          12)Requires the SPI, in consultation with the Department of 
            Finance, to adopt rules and regulations for the purpose of 
            clarifying or expanding the procedures required for verifying 
            the identification of pupils participating in asynchronous 
            online courses, and for including pupil attendance in 
            asynchronous online courses in the calculation of ADA.

          13)Prohibits pupil attendance in asynchronous online courses 
            from being included in the calculation of ADA until the SPI 
            has adopted the regulations specified in 11) above.

          14)Provides that these provisions become inoperative July 1, 
            2017 and are repealed on January 1, 2018 unless this sunset is 
            otherwise deleted or changed.

           EXISTING LAW  :

          1)Allows any school district to offer high school online 
            classes, while claiming attendance credit, in a classroom 
            setting, through Independent Study (IS), in a charter school, 
            or to any pupil who is otherwise attending for the minimum 
            day.

          2)Establishes the minimum school day for a high school student 
            to be 240 instructional minutes in a classroom, in IS, or in a 
            combination of the two settings, and requires students taking 
            a combination to meet attendance standards for both the 
            classroom and IS courses in order for a district to claim a 
            pupil's attendance for funding purposes.

          3)Requires that pupils in grades 9 through 12 attend school for 
            at least 64,800 minutes per year in no less than 180 days (or 
            175 days under budget flexibility language through 2012-13).

           FISCAL EFFECT  :   A Senate Appropriations Committee analysis in 
          2010 of a substantially similar bill by this author found costs 








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          in the million, including costs incurred by the Department of 
          Education to develop new guidelines and regulations, new 
          apportionment costs for additional pupils engaged in 
          asynchronous high school "dropout recovery" programs, lost 
          savings to the state as districts claim higher attendance for 
          existing pupils under an asynchronous online attendance system 
          than under the current system, and some cost pressure for LEAs 
          to purchase and maintain the hardware and software necessary to 
          implement the program. 

           COMMENTS  :   School districts are allowed to implement and offer 
          online courses, and many do.  There are four situations under 
          which districts are currently able to offer online courses for 
          high school pupils and still receive ADA credit toward funding 
          for pupil attendance: 1) pupils receiving online instruction in 
          a classroom setting with a certificated employee of the district 
          supervising the classroom; 2) pupils enrolled in IS; 3) pupils 
          who have met the minimum day requirement of 240 minutes of 
          classroom instruction and thus have already generated a full day 
          of ADA credit; and, 4) pupils enrolled in a charter school, 
          where there are less strict requirements for funding and 
          attendance accounting.

          The state has also experimented with opening other avenues for 
          districts to provide online coursework.  AB 885 (Daucher), 
          Chapter 801, Statutes of 2002, authorized participation by high 
          school students in the Online Classroom Pilot (OCP) program, 
          which allowed the use of an asynchronous, interactive (a teacher 
          and student interact online, but not necessarily at the same 
          time) curriculum as immediate supervision in order to count this 
          participation as instructional time for the purpose of 
          generating ADA and associated funding.  The pilot program was 
          authorized until January 1, 2007, and was designed to monitor 
          and evaluate pupil participation in these online instructional 
          programs conducted over the Internet.  This pilot program 
          addressed the need to provide expanded educational opportunities 
          for pupils attending schools with limited educational offerings, 
          access to advanced placement courses where none were available, 
          and quality educational services in courses for hard-to-staff 
          subject areas in schools where a shortage of teachers existed.  
          Forty high schools in eleven school districts, with no more than 
          five schools per district, were initially selected for the pilot 
          through an application process administered the California 
          Department of Education (CDE); by statute, no more than fifteen 
          percent of the total enrollment of any of the school sites were 








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          allowed to participate in the program.

          AB 885 grew out of its author's concerns over a school district 
          that had enrolled students in online courses and reported ADA 
          for those students; that ADA was disallowed upon audit because 
          the students were not under the immediate supervision of a 
          certificated teacher, were not in IS, and did not complete the 
          minimum day.  These infractions occurred at Canyon High School 
          in the Orange Unified School District; the district was also a 
          participant in the OCP program.

          In a report on the pilot program issued by the CDE, it was 
          reported that nine of the school districts continued as active 
          participants in OCP, offering courses such as Economics, Health, 
          Biology, and World History. The CDE reported that benefits of 
          OCP included more flexible student schedules and access to a 
          greater number of courses, including AP and other courses that 
          might not be offered in their school.  On the negative side, the 
          CDE listed the restrictions imposed by the authorizing 
          legislation and "lack of funding," even though the online 
          courses were generating full ADA and revenue limit support.  
          Participating districts reported that online courses were more 
          expensive to operate than traditional classroom-based courses.  
          The CDE and the DOF have also historically expressed concerns 
          over attendance accounting and teacher supervision for students 
          in online courses.  Related concerns exist over the inability of 
          teachers to know who, if anyone, is actually "attending" (i.e., 
          online and engaged in the coursework) in an online setting where 
          the student is not in visual range of the teacher as in a 
          classroom setting.  This would be a particular concern in an 
          asynchronous application, as was allowed by the OCP program, 
          where the teacher and the pupil are not required to be online at 
          the same time.

          It is unfortunate that this pilot program required neither a 
          formal evaluation nor any analysis of measurable outcomes from 
          the program.  The required reporting by the CDE, while meeting 
          the statutory mandate, did not provide the kind of evaluative 
          analysis upon which a decision to renew or expand a previously 
          implemented program should be based.  OCP was not reauthorized.

          The immediate supervision of a certificated employee of the 
          school district (i.e., a teacher) not only lies at the heart of 
          the state's mechanism for delivering educational services, but 
          is also the foundation of the state's current attendance 








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          accounting and revenue limit funding system.  The bulk of 
          funding for K-12 education in California is provided on the 
          basis of attendance, specifically average daily attendance 
          (ADA).  As a student attends class (within specified daily 
          minimums and maximums) more frequently, the district receives 
          greater credit toward ADA, and the district is provided a higher 
          level of funding.  Attendance in class is implicitly equated to 
          'time on task', so that districts are funded on the basis of 
          students being in class and, thus, on task.  The elimination of 
          immediate teacher supervision, as may occur in an online 
          educational setting, means that the state may have no mechanism 
          1) to ensure that the student is engaged in the coursework 
          (i.e., that the student is "attending" the class and that it is 
          the student that is "attending") and 2) to place a time value on 
          the student's 'time on task'.  From the perspective of 
          protecting the state's interest and ensuring that the state's 
          investment in education is spent directly on providing 
          educational services to students who are on task in terms of 
          learning, online delivery of instruction may not be able to 
          provide sufficient guarantees; certainly in the context of the 
          historical dependence on the immediate supervision of a teacher 
          to guarantee the state's interest, many online delivery 
          approaches create problems.  

          The Legislature's unease with instructional circumstances 
          without immediate supervision was made clear by its decision to 
          not extend the OCP pilot program and with the passage of SB 740 
          (O'Connell), Chapter 892, Statutes of 2001, which limited 
          funding for charter schools that are primarily non-classroom 
          based.  The Legislature has consistently expressed a concern 
          over schools receiving funds in excess of what is required to 
          fund non-classroom based instruction, and over the extent and 
          intensity to which instruction is being delivered to pupils in 
          non-classroom based settings.  Currently, only in limited 
          circumstances (e.g., IS) are school districts funded for 
          instruction that occurs without a pupil being under the 
          immediate supervision of certificated staff, though in such 
          circumstances the pupil is always under the periodic supervision 
          of a teacher and there is a mechanism for calculating the 
          time-value of work completed by the student (in an IS setting, 
          that mechanism is detailed in the IS contract).  Such 
          circumstances are subject to rigorous requirements and 
          restrictions (e.g., requirements on student-teacher ratios, 
          teacher qualifications, curriculum and content, and student 
          assessment) beyond what is required in a classroom setting, and 








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          have mechanisms to ensure the student's "attendance" and "time 
          on task".

          It should also be noted that the elimination of personal, 
          face-to-face contact between a teacher and student may also 
          present numerous risks to student learning, particularly for 
          students with special needs and students in need of remediation. 
           As was noted by Members of the Assembly Education Committee 
          during debate about online education in a 2010 hearing, the 
          teacher-student relationship often provides more than a simple 
          mechanism for instructional delivery; an online relationship may 
          not allow the personal mentoring that may mean more and have 
          more impact on a student's life than the subject matter that was 
          taught and learned during that course.

          Rather than allowing flexibility in the provision of online 
          instruction in the context of IS or a pilot such as the OCP 
          program, this bill allows attendance credit for pupils enrolled 
          in "high quality" online course offerings; the bill also defines 
          a "high quality" online course as one that meets some of the 
          same requirements on student-teacher ratios, teacher quality, 
          teacher-student interactions and course content that are evident 
          in IS or were required under the OCP program.  This bill allows 
          those online course offerings to be of a synchronous nature, 
          where the teacher and the student are online simultaneously, or 
          asynchronous nature, where the teacher checks the student's work 
          but is online at a different time.  The bill, however, allows 
          attendance credit towards ADA to begin in 2013-14 for 
          synchronous online courses, but prohibits attendance credit from 
          asynchronous online courses until the SPI adopts regulations for 
          the purpose of doing so.  The bill also broadens the scope of 
          these provisions, as compared to the author's substantially 
          similar bill heard last year, by allowing non-high schools to 
          claim attendance credit for online courses, allowing broader 
          contracting out for the provision of online courses, and by 
          deleting the prohibition against the waiver of any provision or 
          requirement of this bill.

          In a synchronous online course, an argument can be made that 
          there could be or are mechanisms to guarantee attendance of the 
          student and to place a time value on that attendance.  In a 
          classroom setting, immediate supervision (and the line-of-sight 
          connection between the teacher and student during that class 
          period) provides the mechanism to guarantee that the student is 
          attending and to validate the identity of that student.  In 








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          addition, the implicit assumption in a classroom setting, that 
          is supervised by the teacher, is that the student is on-task 
          during the class period, provides a mechanism for valuing the 
          time that can be credited toward ADA - in a 50 minute class 
          period, a pupil generates 50 minutes of attendance credit toward 
          ADA.  If a line-of-sight connection was established between 
          teacher and student in a synchronous environment, then it could 
          be argued that the immediate supervision standard is met in that 
          the teacher could verify the attendance of the student, could 
          validate the identity of the student, and could ensure (as well 
          as in a classroom setting) that the student was on-task during 
          the class period.  Effectively a synchronous online course, with 
          line-of-sight capability that allows the teacher to see the 
          student, would provide that teacher with the same abilities with 
          respect to the requirements of attendance accounting that are 
          provided to a teacher in a classroom setting.

          In an asynchronous online course, mechanisms that could 
          guarantee that a pupil is attending, that the pupil has spent 
          time on task, or that there is some time value to the pupil's 
          work product are not so easily defined.  For example, in a 
          substantially similar bill in 2010, the author proposed the use 
          of biometric technologies to ensure that a pupil was "attending" 
          an asynchronous online course; however, that mechanism was 
          deleted from the bill in response to issues raised by the Senate 
          Education Committee over potential privacy concerns that had not 
          been fully examined.  This bill proposes mechanisms to provide 
          these guarantees that include: 1) periodic proctored 
          examinations, 2) direct teacher-pupil meetings no less than 
          twice per calendar month, and 3) a visual connection including, 
          but not limited to, Internet Webcam.  The bill also provides for 
          a sunsetting of these provisions after four years of operation; 
          this provision will allow the state to revisit these authorities 
          to determine whether historical problems associated with 
          attendance accounting in online courses persist (particularly in 
          asynchronous applications), or whether the mechanisms proposed 
          by this bill are sufficient to guarantee the state's interest by 
          ensuring that the public investment in education is spent 
          directly on providing educational services to students who are 
          attending and on task.

          The usefulness of online curriculum and instruction is becoming 
          more apparent as delivery systems mature and more electronic 
          instructional materials are developed; the potential use of 
           online education in addressing issues regarding students with 








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          low motivation, dropout and credit recovery, specialized 
          instruction including both advanced and remedial instruction, 
          and instruction in small school settings is also heartening.  It 
          appears that technology has brought us to a point where, in the 
          case of synchronous applications, the problems that arise 
          because of the interaction between online education and the 
          state's attendance accounting and funding systems can be 
          reconciled.  However, it is not yet clear how other online K-12 
          educational applications, particularly those that are 
          asynchronous, can provide the guarantees that the quality of the 
          educational services provided to a student online is equivalent 
          to that provided in the classroom, that the state's financial 
          investment in a pupil's education is served by online education, 
          and that there are no unintended consequences (e.g., inequities 
          in access to online instruction, loss of the speaking skills 
          required in the language arts standards, or losses in personal 
          and social skills) that might result from increasing this means 
          of delivering education services.

          Committee amendments: Committee staff recommends that this bill 
          be amended to do the following:

          1)Correct an error in the expression that requires the 
            teacher-to-pupil ratio to "not exceed 30 to 1." Instead this 
            requirement should be that the teacher to pupil ratio "shall 
            not be less than 1 to 30."

          2)Delete a redundant requirement regarding the credential and 
            qualifications of a teacher in a "high quality" online course.

          3)Consistent with the author's substantially similar bill last 
            year and with amendments taken on that bill by this Committee:
             a)   Require a "high quality" online course to be taught at 
               the high school level.
             b)   Allow a school district, county office of education or 
               charter school to contract with a school district to 
               provide the online course to pupils of the offering local 
               educational agency.
             c)   Prohibit waiver of these provisions unless specifically 
               authorized.

          4)Delete the definition of LEA proposed in this bill and 
            specifically clarify those educational entities to which 
            specified provisions of the bill apply.









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          Previous legislation:  AB 2027 (Blumenfield), held in the Senate 
          Appropriations committee in 2010, provided narrower authority 
          but was otherwise substantially similar to this bill.  AB 837 
          (Torlakson), held under submission in the Assembly 
          Appropriations Committee in 2009, would have relaxed the 
          requirements placed on school districts, county offices of 
          education (COE) and charter schools for calculating and funding 
          average daily attendance (ADA) for pupils enrolled for the 
          minimum day in classes that include both a classroom based 
          setting and at least one class offered online. AB 2457 
          (Walters), held in the Assembly Appropriations Committee in 
          2008, would have re-established the Online Classroom Pilot 
          Program to monitor and evaluate pupil participation in 
          course-based, asynchronous, interactive instruction conducted 
          over the Internet.  SB 155 (Maldonado), introduced in 2007, was 
          substantially similar to AB 2457, except that SB 155 also 
          required the California Department of Education to give priority 
          to applicants ranked in the Academic Performance Index (API) 
          deciles 1 through 5, when approving the competitive applications 
          to operate an online course; SB 155 was later amended into a 
          different subject matter and signed into law as Chapter 702, 
          Statutes of 2008.  AB 885 (Daucher), Chapter 801, Statutes of 
          2002, authorized participation by high school students in an 
          online classroom program using an asynchronous, interactive 
          curriculum as immediate supervision in order to count this 
          participation as instructional time for the purpose of 
          generating average daily attendance (ADA) and associated 
          funding.  AB 885 authorized up to 40 participating school sites. 
           Early versions of AB 885 would have authorized ADA credit for 
          an online class operated by Canyon High School in the Orange 
          Unified School District; the district had previously been found 
          to be out of in compliance with the requirement that attendance 
          credit for funding may only be earned by pupils under the 
          "immediate supervision" of a properly credentialed instructor, 
          and was at risk of losing credit for ADA and thus funding.  The 
          bill was amended in Senate appropriations to reflect the more 
          general program.  AB 294 (Daucher), Chapter 429, Statutes of 
          2003, recast this program as a pilot, added specified fiscal, 
          record-keeping, and reporting requirements and implemented other 
          clean-up provisions as requested in the Governor's AB 885 
          signing message.  AB 1985 (Daucher), held in the Senate in 2006, 
          would have established the Online Classroom Program, replacing 
          the pilot program with an ongoing, non-pilot program allowing 
          school districts to receive funds for average daily attendance 
          (ADA) of pupils who are receiving instruction via the internet 








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          and are located at remote locations.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          EdVoice
          Riverside County School Superintendents' Association
          San Diego County Office of Education
          San Diego Unified School District
          Santa Clara County Office of Education

           Opposition 
           
          None on file

           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087