BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 925
                                                                  Page  1

          Date of Hearing:   March 30, 2011

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL 
                                      SECURITY
                              Warren T. Furutani, Chair
             AB 925 (Lara and Alejo) - As Introduced:  February 18, 2011
           
          SUBJECT  :   Charter schools.

           SUMMARY  :   Requires a charter school to comply with additional 
          specified laws governing school employees, including classified 
          school employees.   Specifically,  this bill  :  

          1)Requires a charter school to comply with laws allowing all 
            school employees the right to inspect personnel records, as 
            specified, and those governing leaves for jury duty.

          2)Requires a charter school to comply with laws outlining 
            specified rights and benefits for classified employees.

          3)Requires a charter school to comply with laws that permit the 
            use of personal services contracting for all services 
            currently or customarily performed by classified school 
            employees, for the purpose of achieving cost savings, only if 
            specified conditions are met.

           EXISTING LAW  

          1)Establishes the Charter Schools Act of 1992 which authorizes a 
            school district, a county office of education or the State 
            Board of Education to approve or deny a petition for a charter 
            school to operate independently from the existing school 
            district structure as a method of accomplishing, among other 
            things, improved pupil learning.

          2)Exempts charter schools from laws governing school districts 
            except for those specifically included in the Charter Schools 
            Act, those establishing minimum age for public school 
            attendance, specified building code regulations, availability 
            of coverage in a public retirement system, and the Charter 
            School Revolving Loan Fund.

          3)Provides a comprehensive framework of rights and benefits for 
            classified school employees.  These provisions include 
            standards for the use of personal services contracts in school 








                                                                  AB 925
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            districts. 

           FISCAL EFFECT  :   Unknown.

           COMMENTS :   According to the author, "The Charter Schools Act of 
          1992 allows a petitioning charter school to choose to be either 
          1) a 'dependent' charter school, where the school district 
          remains the employer of the classified employees; or 2) an 
          'independent' charter school, where the charter school is the 
          employer."

          Supporters contend that because charter schools are currently 
          exempted from most of the laws governing school districts, 
          "?independent charter school employees have no guarantee of sick 
          leave, vacation leave, and holiday leave.  They have no right to 
          a job classification with defined duties and no seniority 
          rights, layoff rights or bumping rights.  They have no right to 
          be disciplined for cause only, and no right to a disciplinary 
          hearing?.In addition, there are no protections against the 
          outsourcing of classified work, as applies to school districts 
          under Education Code section 45103.1.  An independent charter 
          school could outsource all of the services, regardless of cost 
          or quality, which are usually performed by classified employees 
          in a traditional public school."

          Supporters conclude, "AB 925 will provide equity to classified 
          school employees working in independent charter schools by 
          requiring such charter schools to comply with specified laws 
          governing school employees working for public school districts 
          and district charter schools."

          Opponents state, "First, employees at a charter school typically 
          are not public employees (although as the author rightly 
          indicates, when they are public employees, these laws would 
          apply).  Most independent charter schools are run by nonprofit 
          corporations that receive the bulk of their funding from the 
          state.  Their employees are private employees of the nonprofit 
          charter operator.

          "There are many similarly situated nonprofits that act as agents 
          of the state and similarly receive the bulk of their funding 
          from the state.  For example, nonprofit hospitals, 
          rehabilitation programs serving persons with developmental 
          disabilities and mental health clinics derive hundreds of 
          millions of dollars in state general funds and pass-through 








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          federal funds.  Their employees are not public employees any 
          more than are charter school employees.

          "AB 925 would set a precedent that would have far-reaching 
          consequences.  To the California Charter Schools Association's 
          knowledge, AB 925 would require, for the first time, that a 
          private employee be governed by public employee law.  Charter 
          schools are obligated to abide by the same employee laws that 
          govern all private employers in the State of California."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California School Employees Association (Sponsor)
          California Federation of Teachers
          Service Employees International Union California

           Opposition 
           
          California Charter Schools Association
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957