BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 342
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                  AB 342 (Blumenfield) - As Amended:  April 2, 2013

           SUMMARY :   Adds charter schools to the local education agencies  
          (LEAs) that can claim pupil attendance for funding purposes for  
          pupils in grades 9 to 12, inclusive, receiving technology-based,  
          synchronous instruction, and allows all LEAs to claim pupil  
          attendance for funding purposes for pupils receiving  
          technology-based, asynchronous instruction.  Specifically,  this  
          bill  :  

          1)Changes Education Code terminology from "synchronous, online  
            instruction" to "technology-based synchronous instruction."

          2)Allows charter schools to claim the average daily attendance  
            (ADA) of pupils for funding purposes (apportionment ADA) for  
            pupils who receive technology-based, synchronous instruction.

          3)Deletes the requirements that pupils receiving synchronous,  
            online instruction be under the immediate supervision and  
            control of a certificated employee of the school LEA in order  
            to generate apportionment ADA and instead requires that such  
            pupils be under the supervision and control of the employee  
            (i.e., strikes "immediate").

          4)Authorizes the disaggregation of pupil test results to allow  
            the comparison of the results of online instruction vs.  
            regular classroom instruction.

          5)Requires technology-based, synchronous instruction to:

             a)   Be approved by the governing board of the LEA;
             b)   Be as rigorous as a classroom-based course; and
             c)   Meet or exceed all relevant state standards.

          6)Allows LEAs (school districts, county offices of education,  
            and charter schools) to claim apportionment ADA for pupils in  
            grades 9 to 12, inclusive, who receive technology-based  
            asynchronous instruction, provided that all of the following  
            occur:

             a)   Periodic contact occurs between the certificated  








                                                                  AB 342
                                                                  Page  2

               employee providing the instruction and the pupil to assess  
               satisfactory educational progress;
             b)   The LEA maintains a paper or electronic copy of a  
               written agreement for each pupil receiving technology-based  
               asynchronous instruction;
             c)   The LEA retains written or electronic documentation that  
               demonstrates satisfactory educational progress for each  
               pupil receiving technology-based asynchronous instruction;
             d)   The technology-based asynchronous course has been  
               approved by the governing board, is as rigorous as a  
               classroom-based course, and meets or exceeds all relevant  
               content standards.

          7)Defines "technology-based asynchronous instruction" to mean a  
            course or class in which the pupil and the certificated  
            employee who is providing instruction may be online at  
            different times, allowing pupils and certificated employees to  
            participate according to their own schedules.

          8)Defines "satisfactory educational progress" to include  
            measures such as applicable statewide accountability measures  
            and assessments, the completion of assignments, required labs  
            or online workgroups, or other indicators that the pupil is  
            working on assignments and learning required concepts as  
            determined by the supervising certificated employee.

          9)Provides that, if no satisfactory progress has been made, an  
            evaluation shall be made to determine if it is in the best  
            interest of the pupil to remain in asynchronous instruction.

          10)Requires a written record of the evaluation to be made and  
            maintained for three years and forwarded with pupil records if  
            the pupil transfers to another public school.

          11)Prohibits a pupil from continuing in asynchronous instruction  
            without evidence of satisfactory educational progress unless  
            such instruction is determined by the school district or  
            county office of education superintendent or charter school  
            administrator to be in the best interests of the pupil.

          12)Requires the LEA to maintain a paper or electronic copy of a  
            written agreement for each pupil engaged in asynchronous  
            instruction and requires the agreement to include, but not be  
            limited to:









                                                                  AB 342
                                                                  Page  3

             a)   A statement of the LEA's policies that specify periodic  
               contact between pupils and certificated employees and  
               identifies the accountability measures and assessments that  
               will be used to determine satisfactory educational  
               progress;
             b)   The duration of the asynchronous instruction written  
               agreement;
             c)   A statement of the number of course credits to be earned  
               upon completion and the learning objectives required to  
               achieve satisfactory education progress;
             d)   A statement that synchronous instruction is an optional  
               educational alternative in which no pupil may be required  
               to participate.
             e)   A statement that asynchronous instruction may be  
               provided to an expelled or suspended pupil only if that  
               pupil is offered the alternative of classroom instruction.

          13)Requires the written statement to be signed by the pupil; the  
            pupil's parent, guardian, or caregiver; and, if the pupil is  
            less than 18 years of age, the certificated employee who is  
            responsible for the general supervision of independent study.

          14)Defines "electronic copy" to include a computer or electronic  
            stored image of an original document.

          15)Requires LEAs to retain written or electronic documentation  
            that demonstrates satisfactory educational progress for pupils  
            engaged in asynchronous instruction.

          16)Provides that a special needs pupil may receive asynchronous  
            instruction only if it is provided for in his or her  
            individualized education plan.

          17)Prohibits an LEA that offers asynchronous instruction from  
            denying such instruction to a pupil based solely on the  
            pupil's lack of access to the computer hardware or software  
            necessary to participate in the course, and requires the LEA  
            to provide such access to a pupil who chooses to enroll in a  
            technology-based asynchronous course.

           EXISTING LAW 

          1)Defines "synchronous online instruction" as a class or course  
            in which the pupil and the certificated employee who is  
            providing instruction are online at the same time and use  








                                                                  AB 342
                                                                  Page  4

            real-time, Internet-based collaborative software that combines  
            audio, video, file sharing, and other forms of interaction.

          2)Authorizes, commencing with the 2014-15 fiscal year, a school  
            district or county office of education (COE) to claim  
            attendance for pupils in grades 9 to 12, inclusive, who are  
            engaged in synchronous online instruction toward apportionment  
            ADA, provided all of the following conditions are met:

             a)   The certificated employee providing instruction confirms  
               pupil attendance through visual recognition or periodic  
               voice responses during the class period;

             b)   The class has a regularly scheduled starting and ending  
               time, and the pupil is scheduled to attend the entire class  
               period;

             c)   An individual with exceptional needs, as specified, may  
               participate in synchronous online instruction only if his  
               or her individualized education program, as specified,  
               provides for that participation;

             d)   A school district or COE offering synchronous online  
               instruction shall not deny enrollment to a pupil based  
               solely on the pupil's lack of access to the computer  
               hardware or software necessary to participate in the  
               course; and if a pupil does not have access to the  
               necessary equipment, the school district or COE shall  
               provide such access; and

             e)   The ratio of teachers to pupils shall not exceed the  
               equivalent ratio for all other educational programs by the  
               school district or COE, as specified, unless a higher or  
               lower ratio is negotiated in a collective bargaining  
               agreement.

          3)Requires the Superintendent of Public Instruction (SPI) to  
            establish rules and regulation that, at a minimum, address all  
            of the following:

             a)   How school districts and COEs include pupil attendance  
               in online courses in the calculation of ADA;

             b)   How to ensure a pupil meets minimum instructional time  
               requirements;








                                                                  AB 342
                                                                  Page  5


             c)   Require statewide testing results for online pupils to  
               be reported and assigned to the school in which the pupils  
               is enrolled for regular classroom courses and to any school  
               district or COE within which the school's testing results  
               are aggregated; and

             d)   Require online instruction attendance accounting to be  
               subject to annual audits.

          4)Authorizes school districts and COEs to offer independent  
            study and to generate apportionment ADA for pupils engaged in  
            independent study, subject to the following:

             a)   Not more than 10 percent of pupils in an opportunity  
               school or program or a continuation high school may be  
               eligible for apportionment credit for independent study;

             b)   Special needs pupils may participate in independent  
               study only if it is specifically provided for in their  
               individualized education plans;

             c)   Instruction provided to a temporarily disabled pupil  
               shall not be provided through independent study; 

             d)   Courses required for high school graduation shall not be  
               offered exclusively through independent study;

             e)   Pupils enrolled in independent study shall have access  
               to all existing services and resources of the school in  
               which he or she is enrolled and that are available to all  
               other pupils in the school; and

             f)   The governing board of the school district has adopted  
               and implemented written policies, as specified, that govern  
               independent study and the written agreement that is  
               required for each independent study pupil.

          5)Prohibits LEAs from providing independent study pupils with  
            funds or any other thing of value that it does not provide to  
            pupils who attend regular classes.

          6)Provides that school districts and COEs can claim  
            apportionment credit for independent study only to the extent  
            of the time value of pupil work products as personally judged  








                                                                  AB 342
                                                                  Page  6

            in each instance by a certificated teacher.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    This bill  provides that students would generate  
          apportionment ADA for the time they spend out of school engaged  
          in online learning, even if at the same time the teacher is not  
          actively providing instruction.  Under existing law, students  
          also generate apportionment ADA for independent study.  However,  
          existing law imposes limitations and requirements on independent  
          study that this bill does not impose on online learning.  First,  
          a student can generate apportionment ADA for independent study  
          only to the extent of the time value of the student's work  
          products as personally judged by a certificated teacher.   
          Second, the ratio of ADA for independent study students 18 years  
          of age or less to school district full-time equivalent  
          certificated employees responsible for independent study cannot  
          exceed the equivalent ratio of students to full-time  
          certificated employees for all other education programs operated  
          by the school district.  This prevents independent study from  
          becoming a "profit center" for the school district.  Third,  
          existing law expresses the intent of the Legislature that  
          independent study students have access to all existing services  
          and resources that are available to other students in the school  
          as well as existing resources such as a designated learning or  
          study center staffed by appropriately trained personnel.  Taken  
          together, these three provision help ensure that independent  
          study students have access to the same range of services as  
          provided all other students.
          According to the author's office, the independent study model is  
          a "band-aid approach" that "is not easily scalable to the nature  
          of online courses, [which] more closely resemble traditional  
          classes and are designed to serve many students at once."   
          Accordingly, the purpose of this bill is to allow schools to  
          claim apportionment ADA for entire classes that are offered  
          online.  Potentially, courses could be offered exclusively  
          online.

           The ADA-based system of school finance may not be appropriate  
          for online courses  .  Schools are funded on the basis of average  
          daily attendance (ADA).  This is sometimes referred to as  
          "paying for student seat time," but this is a  
          mischaracterization.  In fact, schools are funded largely for  
          the time teachers and other school employees need to provide  
          instruction, instructional support, and other service..  ADA is  








                                                                  AB 342
                                                                  Page  7

          a proxy for this, because the time that students spend in  
          attendance is the time they are receiving services.  

          By contrast, "attendance" at an online class, or the amount of  
          time a student spends online, bears no relationship to the time  
          teachers and other school employees spend to provide the online  
          instruction.  Online instruction offers many economies of scale  
          that are not available to classroom instruction.   For example,  
          the Florida Virtual School, which is the largest state-funded  
          online K-12 school in the nation, has a budget of $166.3  
          million, enrolls 130,000 students, and has nearly 1,500  
          employees, according to the Tampa Bay Times.  Accordingly, the  
          staffing ratio is about 86 students per employee, and funding is  
          nearly $111,000 per employee and $1,280 per student.  The  
          committee may wish to consider whether schools should receive  
          the full ADA level of funding for pupils enrolled in online  
          courses. 

           Online instruction has not been shown to be effective  .  The use  
          of online instruction has grown in recent years, but there have  
          been few well-controlled studies of its effectiveness with K-12  
          students.  This is the main finding from a review of the  
          research reported by the U. S. Department of Education (USDOE)  
          in September 2010 ("Evaluation of Evidence-Based Practices in  
          Online Learning:  A Meta-Analysis and Review of Online Learning  
          Studies").  The USDOE report contains the findings of a  
          meta-analysis of research on online learning, which concludes  
          that "on average, students in online learning conditions  
          performed modestly better than those receiving face-to-face  
          instruction."  However, the report cautions against generalizing  
          this finding to the K-12 population, because only five of the 45  
          studies in the analysis involved K-12 instruction.  (The others  
          involved medical training, higher education, and other non-K-12  
          instruction.)  All of the five K-12 studies involved blended  
          instruction, in which online learning is combined with  
          face-to-face instruction.  Because blended instruction often  
          includes additional instructional time, the positive effects  
          observed with this approach may be the result of the additional  
          time on task, and cannot be attributed to the media, per se,  
          according to the USDOE report.  

          More recent studies indicate online instruction alone is not as  
          effective as regular classroom instruction:

                 A 2011 study of charter school performance in  








                                                                  AB 342
                                                                  Page  8

               Pennsylvania by the Center for Research on Education  
               Outcomes (CREDO) at Stanford University found that each of  
               that state's 8 online charter schools ("cyber schools")  
               significantly underperformed brick and mortar schools and  
               regular (non-virtual) charter schools in reading and math.

                 A review of virtual schools in Wisconsin by the Gannett  
               Wisconsin Media Investigative Team found that students  
               receiving online instruction "often struggle to complete  
               their degrees and repeat grades four times as often as  
               their brick-and-mortar counterparts," and they "trail  
               traditional students in every subject but reading."

                 A 2011 report from the Office of the Legislative Auditor  
               in Minnesota reported that full-time online students were  
               more likely to completely drop out of school and made less  
               progress on state standardized math tests than students in  
               traditional schools.

                 A 2011 report from the Ohio Department of Education  
               rated only three of Ohio's 27 virtual schools as  
               "effective" or "excellent."

                 A 2006 performance audit by the Colorado Department of  
               Education of that state's virtual schools found that, "in  
               the aggregate, online students performed poorly on the CSAP  
               (Colorado State Assessment Program) exams and had higher  
               repeater, attrition, and dropout rates."

                 The Florida Virtual Academy, a statewide virtual school,  
               reports that 81% of its students who complete their courses  
               receive a passing grade.  However, the Tampa Bay Times  
               reports that the Virtual Academy's records show that  
               two-thirds of students who enroll in a course don't finish  
               it.  When dropouts are included, the actual pass rate is  
               28%.  The Times was unable to get Virtual School Florida  
               Comprehensive Assessment Test scores from either the  
               Virtual School or the Florida Department of Education.

          Given these findings, the committee may wish to consider whether  
          further research would be prudent before allowing districts to  
          claim apportionment ADA for an unlimited amount of online  
          instruction.

           Related legislation  .  Prior legislation allowing districts to  








                                                                  AB 342
                                                                  Page  9

          claim apportionment ADA for asynchronous, online instruction  
          includes AB 2027 (Blumenfield) in 2010, which died in the Senate  
          Appropriations Committee; and AB 802 (Blumenfield) in 2011,  
          which died in the Assembly Appropriations Committee.  AB 644  
          (Blumenfield, Chapter 579, Statutes of 2012) was amended to  
          allow ADA funding only for synchronous instruction, subject to  
          specified conditions.

          AB 377 (Grove), which permits the establishment of statewide  
          virtual charter schools, is pending in the Assembly Education  
          Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          San Diego County Office of Education
          Small School Districts' Association

           Opposition 
           
          None received
           
          Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087