BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 925
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          Date of Hearing:   May 4, 2011

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                AB 925 (Lara and Alejo) - As Amended:  April 26, 2011
           
           �Note: This bill was double referred from the Assembly Public 
          Employees, Retirement & Social Security Committee (PERSS) and 
          was heard as it relates to issues under its jurisdiction.]
           
          SUBJECT  :   Charter schools.

           SUMMARY  :   Requires a charter school to comply with existing 
          statute governing school district employees, as specified.  
          Specifically,  this bill  :  

          1)Specifies that all school employees at a charter school:

             a)   Have the right to inspect, review and comment on 
               personnel records; 

             b)   Shall be granted a leave of absence for jury duty; and,

             c)   May use accumulated sick leave for bereavement leave, an 
               accident involving personal property, an appearance in 
               court, or other reasons prescribed by the governing body.

          2)Requires a charter school to comply with the following 
            existing statutes governing classified employees in school 
            districts that:

             a)   Define terms that apply to classified employees.

             b)   Deem classified employees to be employed for 12 months 
               during the year regardless of the number of months of paid 
               service; and, require classified employees to be paid an 
               additional wage for any additional work assignments.

             c)   Require permanent status for employees within one year 
               of employment and all applicable due process rights for 
               disciplinary action including the requirements for items 
               included in the notice of disciplinary notice.

             d)   Require classified employees to receive written layoff 
               notices on or before April 29, when a specially funded 








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               program expires; and, require written layoff notices not 
               less than 45 days prior to layoff as a result of a bona 
               fide reduction of service.

             e)   Specify certain pay exceptions for employees who are on 
               sick leave for longer periods of time.

             f)   Authorize classified employees to be granted leaves of 
               absence, vacations and pregnancy, with or without pay, as 
               specified.

             g)   Require classified employees to be entitled to specified 
               leaves of absence for industrial accidents, bereavement 
               leave, and, require certain leave balances to be 
               transferred when a classified employees begins working for 
               another government entity.

             h)   Authorize a deduction in wages for disability insurance.

          3)Requires a charter school to establish policies for paid sick 
            leave and vacation time; requires charter school employees 
            that would be classified employees in a school district to 
            earn sick leave and vacation time based on time served; and, 
            requires classified employees to receive 11 paid holidays, 
            comparable to the paid holidays provided to classified 
            employees of public schools.

           EXISTING LAW  : 

          1)Establishes the Charter Schools Act of 1992 which authorizes a 
            school district, a county board of education or the State 
            Board of Education (SBE) 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 student 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)Specifies that charter schools shall comply with collective 
            bargaining requirements in the Government code; requires a 








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            charter school charter to contain a declaration regarding 
            whether or not the charter school shall be deemed the 
            exclusive public school employer of the employees at the 
            charter school; specifies that if the charter school is not so 
            deemed a public school employer, the school district where the 
            charter is located shall be deemed the public school employer; 
            specifies that if the charter of a charter school does not 
            specify that it shall comply with those statutes and 
            regulations governing public school employers that establish 
            and regulate tenure or a merit or civil service system, the 
            scope of representation for that charter school shall also 
            include discipline and dismissal of charter school employees; 
            specifies that the Public Employment Relations Board shall 
            take into account the Charter Schools Act of 1992 when 
            deciding cases brought before it related to charter schools; 
            and, specifies that the approval or a denial of a charter 
            petition by a granting agency shall not be controlled by 
            collective bargaining agreements nor subject to review or 
            regulation by the Public Employment Relations Board.

          4)Provides a comprehensive framework of rights and benefits for 
            classified school employees in school districts.

           FISCAL EFFECT  :   Unknown

           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 SBE-approved 
          charters.  Some charter schools are new, while others are 
          conversions from existing public schools.  Charter schools are 
          part of the state's public education system and are funded by 
          public dollars.  A charter school is usually created or 
          organized by a group of teachers, parents and community leaders, 
          a community-based organization, or an education management 
          organization.  Charter schools are authorized by school district 
          boards, county boards of education or the state board of 
          education.  A charter school is generally exempt from most laws 
          governing school districts, except where specifically noted in 
          the law.  Specific goals and operating procedures for the 
          charter school are detailed in an agreement (or "charter") 
          between the sponsoring board and charter organizers.

          This bill requires charter schools to comply with several 
          provisions of statute that currently govern classified employees 








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          in school districts.  According to the author, the Education 
          code provides a comprehensive statutory system that provides 
          classified employees with a minimum "floor" of rights and 
          benefits.  In dependent charter schools, where the school 
          district is the employer, these statutes remain in effect.  
          Unfortunately, the Education code exempts independent charter 
          schools from providing these rights and benefits.  Therefore, 
          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.  Unlike other classified school employees throughout 
          California, independent charter school employees are basically 
          "at will" employees with no floor of minimum rights and benefits 
          to rely upon.  

           Classified Employees vs. Certificated Employees  :  This bill 
          establishes statutory employee protections for classified 
          employees that do not currently exist for certificated employees 
          at charter schools.  This means that certain protections will be 
          extended to a portion, but not all charter school employees, and 
          this will establish a built in inequality among employee groups. 
           The committee should consider whether it is appropriate to 
          grant classified employees these specified rights that currently 
          do not exist for certificated employees at charter schools.  

           Arguments in Support  :  According to the California School 
          Employees Association, AB 925 will provide equity to classified 
          school employees working in independent charter schools by 
          subjecting independent charter schools to Education code 
          provisions that provide basic rights and benefits to classified 
          employees.  This bill would protect the rights and benefits of 
          classified employees by adding language to the California 
          Education code to provide a floor of minimum rights and benefits 
          for classified employees working in independent charter schools.

           Arguments in Opposition  :  According to the California Charter 
          Schools Association in a letter to the PERSS Committee, 
          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 








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          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 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.  

          According to the California Charter Schools Association in a 
          letter to this committee, AB 925 jeopardizes quality instruction 
          by imposing a substantial new cost on charter schools at a time 
          when school funding has been cut and is at risk of being cut 
          further; the timing could not be worse.  Charter schools are 
          funded at a lower rate than traditional public schools, are not 
          reimbursed for any mandated costs and have been more harmed by 
          recent budget deferrals than traditional public schools because 
          they do not have options for alternative resources.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California School Employees Association (Sponsor)
          American Federation of State, County and Municipal Employees
          California Federation of Teachers
          California Teachers Association
          California Teamsters Public Affairs Council
          Service Employees International Union

           Opposition 
           
          California Charter Schools Association

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











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