BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       AB 925
          AUTHOR:        Lara
          AMENDED:       April 26, 2011
          FISCAL COMM:   Yes            HEARING DATE:  June 29, 2011
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Charter schools:  Employees.
          
           SUMMARY   

          This bill requires charter schools to comply with specified 
          statutes governing school employees.  

           BACKGROUND  

          Existing law, the Charter Schools Act of 1992, provides for 
          the establishment of charter schools in California for the 
          purpose, among other things, of improving student learning 
          and expanding learning experiences for pupils who are 
          identified as academically low achieving.  Existing law 
          declares that charter schools are part of the public school 
          system as defined in Article IX of the California 
          Constitution and are "under the exclusive control of the 
          officers of the public schools."  
          (Education Code � 47601 et. seq.)  

          Existing law requires charter schools to comply with the 
          provisions of its charter and provisions of the Education 
          Code that apply to charter schools.  Charter schools are 
          exempt from most laws governing school districts except where 
          specifically noted, including 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.  (EC � 
          47610)

          Existing law provides a comprehensive framework of rights and 
          benefits for classified school employees.  (EC � 45100 et 
          seq.)

          Existing law requires charter schools to comply with the 




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          Educational Employment Relations Act (EERA) commencing with 
          Section 3540 of the Government Code.  Current law requires a 
          charter school to declare in its charter whether the school 
          will be its own employer, or whether the public school 
          district where the charter is located will be the employer 
          for purposes of EERA.  Current law specifies that if the 
          charter 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 (PERB) 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 PERB.  (EC � 47611.5)

           ANALYSIS 

           This bill  :

          1)   Specifies that all charter school employees:  

               a)        Have the right to inspect, review, and comment 
                    on personnel records.  
               (EC � 44031)

               b)        Must be granted a leave of absence for jury 
                    duty.  (EC � 44037)

          2)   Requires a charter school to comply with all of the 
               following statutes that govern classified employees in 
               school districts that:  

               a)        Define terms that apply to classified 
                    employees. (EC � 45190)

               b)        Deem classified employees to be employed for 
                    12 months during the year, regardless of the number 
                    of months of paid service; and requires classified 
                    employees to be paid additional wages for any 
                    additional work assignments.  (EC � 45102)

               c)        Require permanent status for employees within 




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                    one year of employment; specifies that a permanent 
                    employee is subject to disciplinary action only for 
                    cause and has all applicable due process rights for 
                    disciplinary action, as specified.  (EC � 45113)

               d)        Require notice procedures for disciplinary 
                    actions; require classified employees to receive 
                    written layoff notices on or before April 29, when 
                    a specially funded program ends; and requires 
                    written layoff notices not less than 45 days prior 
                    to layoff as a result of a bona fide reduction of 
                    service.  (EC � 45116 and EC � 45117)

               e)        Specify certain pay exceptions for classified 
                    employees who are on sick leave for longer periods 
                    of time and requires an employee to be restored to 
                    a position within the class to which he or she was 
                    assigned with all the rights and benefits of a 
                    permanent employee.  Specify permissible salary 
                    deductions during sick leave.
                    (EC � 45195 and EC � 45196)

               f)        Authorize classified employees to be granted 
                    leaves of absence, vacations, and pregnancy leave, 
                    with or without pay, as specified.  (EC � 45190 and 
                    EC � 45193)  

               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 
                    employee begins working for another government 
                    entity. 
                    (EC � 45192 and EC � 45194)

               h)        Authorize a deduction in wages for disability 
                    insurance.
                     (EC � 45196.5)

          3)   Requires a charter school employee employed in a 
               position that would be a classified position in a school 
               district to earn sick leave and vacation time based on 
               time served.  Requires charter schools to establish 
               policies for paid sick leave and vacation time.  

          4)   Requires a charter school employee employed in a 




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               position that would be a classified position in a school 
               district to annually receive 11 paid holidays comparable 
               to the paid holidays provided to the classified 
               employees of school districts.  

          5)   Provides for local educational agencies to be reimbursed 
               for costs associated with complying with the 
               requirements of this act if the Commission on State 
               Mandates determines that the act contains mandated 
               costs.  

           STAFF COMMENTS  

           1)   Need for the bill  :  According to the sponsor, the 
               California School Employees Association, the Education 
               Code provides classified employees in a school district 
               with a comprehensive set of employment rights and 
               benefits that are not afforded employees of independent 
               charter schools because charter schools are statutorily 
               exempt from most provisions of the code.  The sponsor 
               maintains that while employees who work at charters 
               where the school district is the employer have the same 
               employment rights and benefits as other classified 
               employees in the district, classified employees who work 
               at independent charter schools "have no guarantee of 
               sick leave, vacation leave, or holiday leave nor do they 
               have specified rights relating to their job including a 
               job classification with defined duties, seniority 
               rights, layoff rights, or bumping rights."  The author's 
               office also notes that these employees do not have 
               protections against the outsourcing of classified work, 
               which could enable the employer to outsource services 
               that are usually performed by classified employees in 
               traditional public schools.  

          Employees choose to become part of a charter school and may 
               make that choice based on a variety of reasons, 
               including an opportunity to be part of a new school, or 
               greater flexibility in the workplace.  By subjecting 
               charter schools to various statutes that govern their 
               employees, this bill could limit the ability of charter 
               schools to operate autonomously from school district 
               structures as the Legislature intended in enacting the 
               Charter Schools Act.  Could it also limit the ability of 
               a charter school to implement innovative staffing 
               designs for the learning community?  On the other hand, 




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               by having greater uniformity in personnel policies 
               between charter schools and school districts, this bill 
               could make it easier for charter schools to attract 
               experienced and effective classified staff and make it 
               easier for staff to return to district employment if 
               they later chose to do so.

           2)   Independent vs. dependent  .  According to the California 
               Department of Education (CDE), there are approximately 
               910 active charter schools.  Although the Charter 
               Schools Act does not recognize the terms "dependent" and 
               "independent" when referencing charter schools, these 
               terms are often used to describe the relationship of a 
               charter school to a district.  According to the 
               California School Boards Association, "dependent" 
               charters are considered charter schools that have been 
               created by the district board and are an integral part 
               of the district's portfolio of schools.  "Independent" 
               charter schools are typically those charters that are 
               formed by parents, teachers, community members or 
               charter management organizations.  The sponsor of this 
               bill describes a "dependent" charter school as one where 
                the school district is the employer of the classified 
               employees and describes an "independent" charter as one 
               in which the charter school is the employer, noting that 
               most of these charter schools are run by nonprofit 
               corporations.  

           3)   Equity  ?  The stated intent of this bill is to provide 
               equity for classified employees working in independent 
               charter schools.  Yet this bill establishes statutory 
               employee protections for classified employees only, 
               creating the possibility for different and potentially 
               inequitable rights and benefits between classified 
               employees and certificated staff at a charter school.  
               Is this fair?  

           4)   Fiscal effect  .  The California Charter Schools 
               Association has noted that while charter schools meet 
               some of the requirements of this bill, the remaining 
               requirements would have significant cost impacts that 
               could result in charter schools redirecting funds away 
               from the classroom.  According to the Assembly 
               Appropriations Committee analysis, this bill could 
               create General Fund/Proposition 98 cost pressure of at 
               least $16.5 million to charter schools to comply with 




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               specified requirements related to classified employees.  


          Although the Legislative Counsel's digest notes that this 
               bill contains mandated costs, staff notes that according 
               to a May 2006 decision by the Commission on State 
               Mandates, charter schools are not eligible to claim 
               mandate reimbursements because they are "voluntarily" 
               created.  Since Charter schools are not reimbursed for 
               mandated costs, the cost of implementing the 
               requirements of this bill could have a significant 
               impact on a charter school's budget.  Could this bill 
               result in fewer classified positions available in a 
               charter school?  

           5)   Related and prior legislation  .  

          SB 433 (Liu) would require charter schools to comply with 
               state statutes governing the suspension and expulsion of 
               pupils.  This measure was heard in this Committee on May 
               4, 2011 and was held at the request of the author.  

          SB 645 (Simitian) establishes new academic criteria for 
               charter school renewal.  This measure was passed as 
               amended by this Committee on May 4, 2011, on a 7-1 vote. 
                

          AB 86 (Mendoza) expands signature requirements for charter 
               school petitions to include classified employees.  This 
               measure was passed by this Committee on a 6-2 vote on 
               June 15, 2011.  

          AB 360 (Brownley) makes charter schools subject to the Ralph 
               M. Brown Act or Bagley-Keene Open Meeting Act, depending 
               on the entity operating the school.  Also subjects 
               charters to the California Public Records Act and the 
               Political Reform Act.  This measure was passed by this 
               Committee on a 7-2 vote.

          AB 401 (Ammiano) limits, until January 1, 2017, the total 
               number of charter schools authorized to operate is at 
               1450 and prohibits charter schools operated by a private 
               entity from employing relatives, as specified.  This 
               measure is pending before this Committee.  

          AB 440 (Brownley) establishes various academic and fiscal 




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               accountability standards related to charter schools.  
               This measure is pending before this Committee.  

          AB 1034 (Gatto) modifies existing law regarding charter 
               school admissions.  This measure was passed by this 
               Committee on a 7-2 vote. 

          AB 1741 (Coto, 2010), would have required charter schools 
               that expect 15% of their pupil population to be English 
               learners to meet additional petition requirements 
               relating to the education of those students.  This bill 
               was heard and passed as amended by the Senate Education 
               Committee and was subsequently held in the Senate Rules 
               Committee.  

          AB 1982 (Ammiano, 2010), which would have limited until 
               January 1, 2017, the total number of charter schools 
               authorized to operate at 1450 and prohibits charter 
               schools operated by a private entity from employing 
               relatives, as specified.  This bill was heard by the 
               Senate Education Committee and failed passage on a 3-4 
               vote.

          AB 1991 (Arambula, 2010) would have authorized charter school 
               renewals to be granted for five to ten years.  This bill 
               failed passage in the Assembly Education Committee.  

          AB 2363 (Mendoza, 2010) would have required charter school 
               petitioners to obtain the signatures of half of the 
               number of teachers and half of the number of classified 
               employees, as specified.  This bill was heard by the 
               Senate Education Committee and failed passage on a 2-6 
               vote.  

          AB 2320 (Swanson, 2010) would have added new requirements to 
               the charter school petition process, deletes the 
               authority of a charter school petitioner to submit a 
               petition to a County Board of Education to serve pupils 
               that would otherwise be served by the County Office of 
               Education, and eliminates the ability of the State Board 
               of Education to approve charter school petition appeals. 
                This bill was heard by the Senate Education Committee 
               and failed passage on a 2-3 vote.  

          AB 572 (Brownley, 2009) would have required charter schools 
               to comply with the Brown Act open meeting law, the 




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               California Public Records Act, and the Political Reform 
               Act.  This bill was passed by the Senate Education 
               Committee and subsequently vetoed by Governor 
               Schwarzenegger.  

          ABX5 8 (Brownley, Fifth extraordinary session of 2009) would 
               have deleted the cap on charter schools and would have 
               made other changes to provisions governing audit and 
               fiscal standards, and the authorization, renewal and 
               revocation of charter schools.  The Senate Education 
               Committee hearing for this bill was canceled at the 
               request of the author and the bill was subsequently held 
               by the Committee.  

           SUPPORT
           
          California School Employees Association
          California Federation of Teachers
          California Labor Federation
          California Teachers Association
          California Teamsters Public Affairs Council

           OPPOSITION
           
          ACE Charter Schools
          California Charter Schools Association
          Celerity Troika Charter School
          Charter Schools Development Center
          Coastal Grove Charter School
          Gompers Preparatory Academy
          King-Chavez Neighborhood of Schools
          Lewis Center for Educational Research
          Monarch Learning Center
          Monterey Bay Charter School
          Nevada City School of the Arts
          Rocklin Academy
          Santa Rosa Charter School