BILL NUMBER: AB 1576	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012
	AMENDED IN ASSEMBLY  MARCH 13, 2012

INTRODUCED BY   Assembly Member Huber
   (  Coauthor:   Assembly Member 
 Beth Gaines   Coauthors:   Assembly
Members   Beth Gaines   and Williams  )
   (Coauthor: Senator Gaines)

                        FEBRUARY 2, 2012

   An act to amend Sections 1042 and 47603 of the Education Code,
relating to charter schools.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1576, as amended, Huber. Charter schools: loans.
   (1) Existing law authorizes a county superintendent of schools,
with the approval of the county board of education, to temporarily
transfer moneys to a school district under specified circumstances.
   The Charter Schools Act of 1992 authorizes any one or more persons
to submit a petition to the governing board of a school district to
establish a charter school that operates independently from the
existing school district structure as a method of accomplishing
specified goals.
   This bill would, subject to the concurrence of the county
superintendent of schools, authorize a county board of education to
loan moneys to a charter school for which the county board of
education or the county superintendent of schools has a supervisory
responsibility or, regardless of whether the charter school is within
or outside of the county, with which a county board of education or
county superintendent of schools has a contractual relationship. The
bill would require the county superintendent of schools, before the
county board of education makes the loan,  (A) to advise the
chartering authority of the charter school and the county office of
education in which the charter school is located that the charter
school is requesting the loan, (B) to allow for input from the
chartering authority and the county office of education regarding the
advisability of making the loan, (C) to solicit a recommendation
from bond counsel about the advisability of making the loan, (D) to
determine whether to concur with the intent of the county board of
education to make the loan, and (E) to notify the county board of
education of that determination   to take specified
actions regarding the advisability of the loan  . The bill would
provide that any loan of moneys pursuant to these provisions would
not constitute a debt or liability for the county superintendent of
schools, the county board of education, or the State of California.
   (2) Existing law states that  existing law governing charter
schools does not prohibit  a private person or organization
 is not prohibited  from providing funding or other
assistance to the establishment or operation of a charter school.
   This bill would authorize a charter school to contract with a
county superintendent of schools or a county board of education for
purposes of borrowing moneys, as described above. The bill would
require the borrowed moneys to be expended by a charter school solely
for purposes of meeting the short term, working capital operational
needs of the charter school and not for purposes of making capital
acquisitions.
   (3) This bill also would make nonsubstantive changes to these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1042 of the Education Code is amended to read:
   1042.  County boards of education may do all of the following:
   (a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
   (b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make revisions, reductions, or
additions in the annual itemized estimate it deems advisable and
proper. An annual itemized estimate shall not be filed by the county
superintendent of schools or be approved by the board of supervisors
until it has first been so reviewed and approved by the county board
of education.
   (c) In the name by which the county board of education is
designated, acquire, lease, lease-purchase, hold, and convey real
property for the purpose of housing the offices and the services of
the county superintendent of schools, except that this subdivision
shall only apply to the county boards of education to which all or a
portion of the duties and functions of the county board of
supervisors specified in subdivision (b) of Section 1080 have been
transferred, with the exception of the recreational duties and
recreational functions specified in subdivisions (c) and (d) of
Section 1080.
   (d) Contract with and employ any persons for the furnishing to the
county board of education of special services and advice in
financial, economic, accounting, engineering, legal, or
administrative matters if these persons are specially trained and
experienced and competent to perform the special services required.
The county board of education may pay to these persons from any
available funds the compensation that it deems proper for the
services rendered.
   (e) (1) Notwithstanding Section 25304 of the Government Code, fill
by appointment any vacancy that occurs during the term of office of
the county superintendent of schools. In a county in which the county
superintendent of schools is elected, the appointee shall hold
office until the office is filled by election at the next
gubernatorial election.
   (2) The authority described in this subdivision shall be vested in
a county board of education only upon its adoption by the county
board of education at a public meeting held pursuant to Article 1
(commencing with Section 1000).
   (f) (1) Subject to the concurrence of the county superintendent of
schools pursuant to paragraph (3), use and expend moneys to make
loans to a charter school for which the county board of education or
the county superintendent of schools has a supervisory responsibility
or, regardless of whether the charter school is within or outside of
the county, with which the county board of education or the county
superintendent of schools has a contractual relationship pursuant to
subdivision (b) of Section 47603. Moneys borrowed by the county board
of education for the purpose of making a loan to a charter school
shall be payable solely from the funds of the charter school and
shall not constitute a debt or liability of the county board of
education or the county superintendent of schools, notwithstanding
the provisions of Section 53857 of the Government Code, or any other
law.
   (2) The State of California is not liable for any debt or
liability within the meaning of Section 1 of Article XVI of the
California Constitution, or otherwise, for loans made pursuant to
this subdivision.
   (3) Before the county board of education makes a loan pursuant to
this subdivision, the county superintendent of schools shall do all
of the following:
   (A) Advise the chartering authority of the charter school and the
county office of education in which the charter school is primarily
located that the charter school has requested the loan.
   (B) Allow the chartering authority and county office of education
to provide input regarding the advisability of making the loan.
   (C) Solicit a recommendation from  bond counsel 
 a recognized authority on school district financial management
who is not an employee of the county office of education about
the advisability of making the loan.  The recommendation shall
consider the financial condition of the charter school, the level of
risk assumed by the county office of education, and the potential
impact on the county office of education if the charter school is
unable to repay the loan.  
   (D) Disclose the information received pursuant to subparagraphs
(B) and (C) at a regularly scheduled meeting of the county board of
education.  
   (D) 
    (E)  Determine whether to concur with the intent of the
county board of education to make the loan. 
   (E) Notify the county board of education of the determination made
pursuant to subparagraph (D). 
  SEC. 2.  Section 47603 of the Education Code is amended to read:
   47603.  (a) This part shall not be construed to prohibit any
private person or organization from providing funding or other
assistance to the establishment or operation of a charter school.
   (b) (1) A charter school may contract with a county superintendent
of schools or a county board of education for purposes of borrowing
moneys pursuant to subdivision (f) of Section 1042.
   (2) Moneys borrowed pursuant to subdivision (f) of Section 1042
shall be expended by a charter school solely for purposes of meeting
the short term, working capital operational needs of the charter
school  ,  and shall not be used for purposes of
making capital acquisitions.