BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 925
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          ASSEMBLY THIRD READING
          AB 925 (Lara and Alejo)
          As Amended April 26, 2011
          Majority vote 

           PUBLIC EMPLOYEES    4-2         EDUCATION           7-3         
           
           ----------------------------------------------------------------- 
          |Ayes:|Furutani, Allen, Ma,      |Ayes:|Brownley, Ammiano,        |
          |     |Wieckowski                |     |Buchanan, Butler, Carter, |
          |     |                          |     |Eng, Williams             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Mansoor, Harkey           |Nays:|Norby, Halderman, Wagner  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Blumenfield,     |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Gatto, Hall, Hill, Lara,  |     |                          |
          |     |Mitchell, Solorio         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |     |                          |
          |     |Nielsen, Norby, Wagner    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires a charter school to comply with additional 
          specified laws governing school employees, including classified 
          school employees.   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.








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          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 
               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; and, 

             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 








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            employees of public schools.

           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 
            districts. 

           FISCAL EFFECT  :   According to the Assembly Appropriations 
          Committee:

          1)General Fund/Proposition 98 cost pressure, of at least $16.5 
            million, to charter schools to comply with specified 
            requirements related to classified employees.

          2)According to a May 2006 decision by the Commission on State 
            Mandates (CSM), charter schools are not eligible to claim 
            mandate reimbursements.  In denying charter schools' mandate 
            claims, the CSM repeatedly cites the fact that charter schools 
            are "voluntarily" created.

           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.  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 








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          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.

          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.








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          "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 
          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."

           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957                                               FN: 
          0000915