BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1594
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 1594 (Eng) - As Amended:  April 10, 2012 

          Policy Committee:                              Education 
          Vote:6-3

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill requires a charter school to provide each needy pupil 
          with one nutritionally adequate free or reduced-price meal 
          during each schoolday.  Further exempts online and non-classroom 
          based charter schools from this requirement.  

           FISCAL EFFECT  

          Increased GF/98 costs, of at least $500,000, to provide charter 
          schools with the state meal reimbursement funds.  The State 
          Auditor identified 213 charter schools that were participating 
          in the school meal program in 2010.  According to the State 
          Department of Education, approximately 812 million meals are 
          projected to be served in the 2011-12 school year.  The per meal 
          reimbursement rates for the 2011-12 fiscal year are as follows:  



                  ----------------------------------------------- 
                 |                      |   Free    |Reduced-Pric|
                 |                      |           |e           |
                 |----------------------+-----------+------------|
                 |Breakfast             |           |            |
                 |----------------------+-----------+------------|
                 | Federal              |   $1.48   |   $1.18    |
                 |----------------------+-----------+------------|
                 | State                |   $0.22   |   $.022    |
                 |----------------------+-----------+------------|
                 |Lunch                 |           |            |
                 |----------------------+-----------+------------|
                 | Federal              |           |            |








                                                                  AB 1594
                                                                  Page  2

                 |----------------------+-----------+------------|
                 | Schools that serve   |   $2.77   |   $2.37    |
                 | less than 60%        |           |            |
                 | free-reduced price   |           |            |
                 | meals                |           |            |
                 |----------------------+-----------+------------|
                 | Schools that serve   |   $2.79   |   $2.39    |
                 | 60% or more          |           |            |
                 | free-reduced price   |           |            |
                 | meals                |           |            |
                 |----------------------+-----------+------------|
                 | State                |   $0.22   |$0.22       |
                  ----------------------------------------------- 

           COMMENTS  

           1)Background  .  Existing law requires each school district or 
            county office of education maintaining any of grades K-12 to 
            provide one nutritionally adequate free or reduced-price meal 
            to a needy pupil during each schoolday.  Statute further 
            defines "nutritionally adequate meal" as a breakfast or lunch 
            that qualifies for reimbursement under the federal child 
            nutrition program.  

            A charter school is a public school that may provide 
            instruction in any of grades K-12. It is usually created or 
            organized by a group of teachers, parents and community 
            leaders or a community-based organization. A charter school 
            may be authorized by an existing local public school board, 
            county board of education, or the State Board of Education. 
            Specific goals and operating procedures for the charter school 
            are detailed in an agreement (charter) between the sponsoring 
            board and charter organizers. A charter school is generally 
            exempt from most laws governing school districts, except where 
            specifically noted in the law.  As such, charter schools are 
            not required to provide pupils with a nutritionally adequate 
            free or reduced-price meal.  

            According to the State Department of Education (SDE), there 
            were 919 charter schools with an enrollment of 375,358 pupils 
            in 2010-11.  

           2)Purpose  .  An October 2010 State Auditor report regarding 
            nutritional services provided at the state's charter schools 
            identified 815 charter schools active in California as of 








                                                                  AB 1594
                                                                  Page  3

            April 2010.  The auditor concluded, "�Of this number], 451 
            were participating in the breakfast or lunch program and an 
            additional 151 were providing instruction to their students 
            outside the classroom, either online or independently, and 
            thus do not provide meals."  

            According to the author, "56.7 percent of the state's students 
            in traditional public schools were eligible for free and 
            reduced-price meals during the 2009-10 school year. In 
            comparison, 55.8 percent of the state's students in charter 
            schools were eligible for free or reduced-price meals during 
            the same year. Repeatedly, research has shown that school 
            meals matter. School meals help ensure that students receive 
            adequate nutrition, which is essential to the academic 
            achievement and overall well-being of all students. No 
            low-income student, whether attending a traditional public 
            school or charter school, should be without access to these 
            benefits."  

            This bill requires a charter school to provide each needy 
            pupil with one nutritionally adequate free or reduced-price 
            meal during each schoolday.

           3)Some charter schools do not participate in the state meal 
            program  .  The State Auditor surveyed the remaining 213 schools 
            (of the 815 charter schools) to identify the reasons they do 
            not participate in the school breakfast or lunch program.  
            According to the report, "Of the 133 responses we received, 46 
            charter schools stated that they offer their students an 
            alternative meal program, 39 stated that they do not provide 
            meals to their students, 41 stated that they were in fact 
            participating in the programs, and four stated that they 
            provide instruction based outside the classroom. In addition, 
            three charter schools stated that they do not provide meals to 
            students or participate in the breakfast and lunch programs 
            because their students are age 18 or older and are not 
            eligible to participate in the programs."

            The report further revealed "The 46 charter schools responding 
            to the survey that provide an alternative meal program have 
            varying methods of providing meals, ranges of meal costs, and 
            reasons for offering an alternative meal program. Most of 
            these schools either have their staff prepare and deliver the 
            meals or hire contractors to do so. The students at these 
            charter schools paid between 50 cents and $5 for their meals. 








                                                                  AB 1594
                                                                  Page  4

            In addition, the primary reason cited by 15, or 33%, of these 
            schools for having an alternative meal program is to allow 
            them to provide what they described as fresher, healthier food 
            choices to their students than the breakfast or lunch program 
            provides. Some of these charter schools stated that they 
            provide meals that meet or exceed the USDA's nutritional 
            standards. Generally, these charter schools believe that the 
            nutritional needs of their students, including low-income 
            students, are being met."

           4)Are charter schools eligible for mandate reimbursement  ?  
            According to a May 2006 decision by the 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.  
            Furthermore, the CSM agrees with the following comments of the 
            Department of Finance: "Unlike school districts, charter 
            schools upon seeking to be chartered and upon having their 
            charter reauthorized every five years, operate optional 
            programs and thus choose to accept the State's requirements 
            for such operation. . . . The charter school is simply an 
            alternative to traditional public schools and are voluntarily 
            created and reauthorized."   


            The CSM further cites existing statute that does not define a 
            charter school as a school district.  Specifically, it stated: 
            "Charter schools are not mentioned in the mandate statutes 
            (Government Code section 17500 et seq.), nor are they 
            considered "school districts" for purposes of mandate 
            reimbursements in the charter school statutes (Education Code 
            (EC) 47600 et seq.).  Charter schools were established in 
            1992, long after the Commission's statutory scheme in 1984. 
            Although both statutory schemes have been amended in recent 
            years, the Legislature has not amended either scheme to make 
            charter schools eligible claimants."  

           5)Previous related legislation  .  AB 2954 (Liu) allowed charter 
            school authorizers to require charter schools to provide free 
            and reduced priced meals to students as a condition for 
            approval, as specified. The bill was vetoed by Governor 
            Schwarzenegger in September 2006 with the following message:

            "Allowing school districts to require, as a condition of 
            approval, that the petition describe how the charter school 








                                                                  AB 1594
                                                                  Page  5

            will provide free and reduced-priced meals to eligible pupils 
            would simply provide districts with another pretext on which 
            to deny a charter. Charter schools are generally exempt from 
            most laws and regulations governing school districts and they 
            should continue to be exempt from this one. In sum, this bill 
            runs counter to the intent of charter schools, which is to 
            provide parents and students with other options within the 
            public school system and to stimulate competition that 
            improves the quality not only of charter schools, but of 
            non-charter schools as well." 



           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081