BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1290|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1290
          Author:   Alquist (D)
          Amended:  6/20/12
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  8-0, 4/25/12
          AYES:  Lowenthal, Alquist, Hancock, Huff, Liu, Price, 
            Simitian, Vargas
          NO VOTE RECORDED:  Runner, Blakeslee, Vacancy

          SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/24/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton

           ASSEMBLY FLOOR  :  52-27, 8/22/12 - See last page for vote


           SUBJECT  :    Charter schools:  establishment, renewal, and 
          revocation

           SOURCE  :     Superintendent of Public Instruction Tom 
          Torlakson


           DIGEST  :    This bill requires the authority that granted a 
          charter school to consider increases in pupil academic 
          achievement for all groups of pupils served by the charter 
          school as the most important factor in determining whether 
          to grant a charter renewal or whether to revoke a charter 
          school; and, requires a charter school to achieve its 
          Academic Performance Index (API) growth target for 
          schoolwide and numerically significant pupil subgroups for 
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          renewal, as specified.  

           Assembly Amendments  (1) change the revise criteria from "to 
          include only" to "relating" to the attainment of the 
          charter school's API growth target, (2) delete in the prior 
          year or in two of the last three years and insert prior 
          years and would add the measurable pupil outcomes 
          identified in the charter petition, as specified, and (3) 
          make various technical changes.

           ANALYSIS  :    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 authorizes anyone to develop, circulate, and 
          submit a petition to establish a charter school and 
          requires charter developers to collect certain signatures 
          in support of the petition, as specified.  Existing law 
          requires governing boards to grant a charter unless the 
          petition fails to meet one or more of the following:  

          1. The charter school presents an unsound educational 
             program.  

          2. The petitioners are demonstrably unlikely to 
             successfully implement the program described in the 
             petition.  

          3. The petition does not contain the number of required 
             signatures.  

          4. The petition does not contain an affirmation that it 
             will be nonsectarian in its programs and policies, shall 
             not charge tuition, shall not discriminate, and other 
             affirmations, as specified.  

          5. The petition does not contain reasonably comprehensive 
             descriptions of the educational program, including, 
             among other things, educational goals, students to be 
             served, measurable outcomes and methods by which the 
             school will determine that pupils have met educational 

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             goals.  

          Existing state law specifies that after a charter school 
          has been in operation for four years, it must meet one of 
          the following criteria in order to be renewed:  

          1. Attainment of the school's API growth target in two of 
             the last three years or in the aggregate last three 
             years; 

          2. A ranking in deciles 4 to 10, inclusive, on the API in 
             the prior year or in two of the last three years;  

          3. A ranking in deciles 4 to 10, inclusive, on the API for 
             a demographically comparable school in two of the last 
             three years; 

          4. Academic performance that is at least equal to the 
             academic performance of the public schools that the 
             charter school pupils would otherwise been required to 
             attend; or 

          5. Qualification for participation in the Alternative 
             School Accountability Model (ASAM).  

          Existing federal law establishes the Public Charter Schools 
          Grant Program (PCSGP) for the purpose of awarding grants to 
          plan and implement new charter schools.  Federal law 
          requires that states participating in the program provide 
          assurances that:  (1) each authorized charter school, among 
          other things, demonstrates improved student academic 
          achievement and (2) authorized public chartering agencies 
          use increases in student academic achievement for all 
          groups of students as the most important factor when 
          determining to renew or revoke a school's charter.  

          Existing law requires the Superintendent of Public 
          Instruction (SPI), with approval of the State Board of 
          Education (SBE), to develop an alternative school 
          accountability system for schools under the jurisdiction of 
          a county board of education or county superintendent of 
          schools, community day schools, nonpublic, nonsectarian 
          schools, and alternative schools serving high-risk pupils, 
          including continuation high schools and opportunity 

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          schools.  Schools in the ASAM are not included in API 
          rankings.  

          Existing law authorizes the SBE, upon the recommendation of 
          the SPI, to revoke a school's charter for substantial and 
          sustained departure from measurably successful practices 
          such that continued departure would jeopardize the 
          educational development of the students.  The SBE has 
          adopted regulations that instruct the SPI to recommend 
          revocation of charters for schools in the lowest 
          performance deciles that have not shown adequate increases 
          in academic achievement. 

          This bill:

          1. Specifies, for both school district authorized and 
             county board of education authorized charter schools, 
             that the measurable pupil outcomes identified in a 
             charter school petition shall include outcomes that 
             address increases in pupil academic achievement both 
             schoolwide and for all groups of pupils served by the 
             charter school.

          2. Requires the authority that granted the charter school 
             to consider increases in pupil academic achievement for 
             all groups of pupils served by the charter school as the 
             most important factor in determining whether to grant a 
             charter renewal.

          3. Defines "all groups of pupils served by the charter 
             school" as a numerically significant pupil subgroup 
             served by the charter school.

          4. Changes one of the existing academic achievement 
             requirements for renewal by specifying that a charter 
             school must attain its API growth target in the prior 
             year or in two of the last three years both schoolwide 
             and for all groups of pupils served by the charter 
             school. 

          5. Requires the authority that granted a charter school to 
             consider increases in pupil academic achievement for all 
             groups of pupils served by the charter school as the 
             most important factor in determining whether to revoke a 

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             charter.

           Comments
           
          According to the Senate Education Committee analysis:

           Need for this bill  .  In August 2010, the California 
          Department of Education (CDE) was awarded $290 million to 
          administer the PCSGP in California for the 2010-15 grant 
          cycle.  Later that year, the CDE was notified by the United 
          States Department of Education (DOE) that the state was not 
          in compliance with grant requirements that charter 
          agreements demonstrate improved student academic 
          achievement (Assurance 3A on the PCSGP application) and 
          that chartering authorities use increases in student 
          achievement as the most important factor in determining to 
          renew or revoke a school's charter (Assurance 3B).  

          Attempts to resolve the matter informally were unproductive 
          and in August 2011, the CDE received formal notice from DOE 
          that the state was out of compliance with the required 
          assurances because there is no explicit statutory or 
          regulatory requirement that (1) each and every charter 
          school demonstrate improved student academic achievement or 
          (2) increases in academic achievement be the primary factor 
          in renewal decisions or revocations.  The August 2011 
          notification also included special terms and conditions 
          that required the CDE to submit a written plan of action 
          that addresses compliance.  

          The CDE has determined that the needed changes cannot be 
          accomplished by SBE action or regulation changes alone and 
          will require statutory changes to the Charter Schools Act.  
          According to the author's office, this bill is necessary to 
          move the California into compliance with current federal 
          rules for the PCSGP and avoid the risk of losing some or 
          all of the $290 million grant award.  However, the 
          California Charter School Association Advocates argue that 
          the current version of this bill goes farther than is 
          absolutely necessary to meet the federal assurances and to 
          protect grant funds.  

           Broader accountability issues  .  A basic goal of charter 
          schools is to improve student learning and expand learning 

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          experiences for academically low-achieving students.  A 
          number of studies indicate that not all charter schools are 
          living up to this promise.  A 2009 EdSource report found 
          that California charter high schools serve 13% fewer 
          students who are either English learners or redesignated as 
          fluent English proficient compared to noncharter schools, 
          and found that charter schools serve lower proportions of 
          students with disabilities compared to noncharter schools 
          at all grade levels.  The EdSource study also found that 
          charter schools serve fewer students that participate in 
          the federal Free and Reduced-Price Meal Program in both 
          elementary and middle school compared to noncharter 
          schools.  Notwithstanding the need to comply with federal 
          direction for the PCSGP, could the requirement for 
          increases in student achievement to be "the most important 
          factor" in renewing a charter create a disincentive for 
          charter schools to serve low-achieving students or reduce 
          the ability of authorizers to ensure charter schools meet 
          local priorities such as increased graduation rates?  

           API  .  API is a single number on a scale of 200 to 1,000 
          that is an annual measure of test score performance in 
          schools.  The API is used to summarize the performance of 
          students and a school, and is based on results of the 
          Standardized Testing and Reporting program and the 
          California High School Exit Examination.  The system is 
          based on a two-year cycle that gives a "base" score for the 
          first year and a "growth" score in the second year.  The 
          Base API is released in the spring and is derived from the 
          previous spring's test scores.  The Growth API, which is 
          released in the fall, comes from the previous spring's test 
          scores.  The SBE has established a statewide target of 800 
          for the API.  Schools with API scores below 800 are 
          expected to improve and are given a "growth target" that is 
          5% of the difference between their API score and 800, with 
          a minimum target of five points.  (Schools with an API 
          above the statewide target are expected to stay above 800.) 
           A school's Base API score plus its growth target becomes 
          that school's goal for its next Growth API.  For example, a 
          school with a Base API of 320 would be expected to improve 
          its performance by 24 points in the next cycle, or attain 
          an API of 344.  

           Hoover Commission findings and recommendations  .  In 

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          November 2010, the Little Hoover Commission (Commission) 
          released a report "Smarter Choices, Better Education:  
          Improving California Charter Schools" that contained 
          findings and recommendations regarding the charter school 
          authorization, renewal, and appeal process.  The Commission 
          found that there was broad agreement that the current 
          renewal criteria for charter schools must be improved.  The 
          Commission noted it was told repeatedly that the state's 
          renewal criteria are vague and the bar is set too low, 
          making it difficult for authorizers to close down poor 
          performing schools.  Under existing law, a school can be 
          renewed if the school's performance is comparable to that 
          of district schools its students would otherwise attend.  
          If all schools within a neighborhood are performing poorly 
          but the charter school provides a safe haven for students, 
          parents and students may pressure the local school board to 
          keep the school open even if it is not meeting its academic 
          goals.  Since achievement test scores may not provide a 
          complete picture of student learning, the Commission 
          recommended that the state expand the renewal criteria to 
          include other factors, such as graduation rates, employment 
          readiness, as well as college attendance and completion 
          rates.  

           Prior Legislation  
           
          SB 645 (Simitian, 2011) would have established new academic 
          criteria for charter school renewal.  The bill was passed 
          as amended by the Senate Education Committee (7-1) on May 
          4, 2011.  The bill was later amended to conform to the 
          renewal criteria and process to the requirements in AB 440 
          (Brownley).  

          AB 440 (Brownley, 2011) would have established various 
          academic and fiscal accountability requirements relating to 
          charter schools, including accountability requirements for 
          charter school renewals.  The bill was passed by the Senate 
          Education Committee (7-3) and was subsequently moved to the 
          Senate Inactive File at the request of the author.  

          AB 1950 (Brownley, 2010) would have established new 
          academic and fiscal accountability standards for charter 
          schools.  The bill was pulled from the Senate Education 
          Committee's agenda at the request of the author.  

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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Assembly Appropriations Committee, 
          increased General Fund/Proposition 98 state reimbursable 
          mandated costs, likely in excess of $175,000, to a 
          chartering authority to ensure a charter school complies 
          with the pupil achievement modifications for the renewal 
          process required in this bill.

           SUPPORT  :   (Verified  8/23/12)

          Superintendent of Public Instruction Tom Torlakson (source)
          California Charter Schools Association Advocates
          San Francisco Unified School District

           OPPOSITION  :    (Verified  8/23/12)

          Charter School Capitol
          Charter Schools Development Center
          K-12, Inc.

           ARGUMENTS IN SUPPORT  :    Superintendent of Public 
          Instruction Tom Torlakson, the sponsor of this bill, 
          states, "This bill would bring the California Education 
          Code (EC) into compliance with the federal Public Charter 
          Schools Grant Program (PCSGP).  Specifically, this bill 
          would amend EC sections 47605, 47605.6, and 47607 to make 
          increases in academic achievement for pupils in all 
          numerically significant subgroups the most important factor 
          when considering approval, renewal or revocation of a 
          public charter school petition."

           ARGUMENTS IN OPPOSITION  :    K-12, Inc. and Charter School 
          Capital oppose this bill and state, "We believe that the 
          changes necessary to conform to the United States 
          Department of Education are best attained through the State 
          Board of Education going through the process of drafting 
          regulations, which they are currently doing, and not by 
          rushing a bill through the Legislature.  This bill does not 
          allow charter schools any chance to have input into the 
          discussion and places unrealistic expectation on every 
          charter school in the state.  Additionally, there are no 

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          guarantees that this measure will put California in 
          conformity with the department's regulations because they 
          have not weighed in on their effect yet." 
           

           ASSEMBLY FLOOR  :  52-27, 8/22/12
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Hill, 
            Huber, Hueso, Huffman, Jones, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Garrick, Gorell, Grove, Hagman, 
            Halderman, Harkey, Jeffries, Knight, Logue, Mansoor, 
            Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Silva, 
            Smyth, Valadao, Wagner
          NO VOTE RECORDED:  Roger Hern�ndez


          PQ:k  8/23/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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