BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                                 Carol Liu, Chair
                            2013-2014 Regular Session
                                         

          BILL NO:       SB 714
          AUTHOR:        Block
          AMENDED:       April 15, 2013
          FISCAL COMM:   Yes            HEARING DATE:  April 24, 2013
          URGENCY:       No             CONSULTANT:Daniel Alvarez

           SUBJECT  :  Schools: average daily attendance: online  
          instruction.
          
           SUMMARY  

          This bill beginning with the 2014-15 fiscal year, permits a  
          school district, county of office of education, or charter  
          school to claim state apportionment funding for three  
          consecutive years for asynchronous (defined as "where the  
          teacher and the pupil are online at different times and do  
          not interact simultaneously) attendance of pupils in "online  
          educational learning programs." Online educational learning  
          programs may include one online course, multiple online  
          courses, or a combination of online coursework and  
          classroom-based coursework. 

           BACKGROUND  

           Existing law
           
          1)   Requires the majority of the state's revenue limit  
               funding (general purpose) allocated to local educational  
               agencies (LEAs) be based on average daily attendance  
               (ADA).  ADA is the average amount of time a pupil  
               attends class under the immediate supervision of a  
               certificated employee. 
               (Education Code � 46300 et. seq.)  

               Within the current ADA requirements, LEAs are able to  
               provide online courses to pupils in the following ways: 

               a)        Pupils are receiving online instruction in a  
                    classroom setting under the immediate supervision  
                    of a certificated employee. 
                    (EC � 46300 (a))




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               b)        Pupils are enrolled in a part-time or  
                    full-time independent study (IS) program (i.e., the  
                    pupil may be taking regular classroom courses and  
                    one or two IS program courses online).   If a pupil  
                    is enrolled full-time in an IS program, he or she  
                    is required to produce a work product, which is  
                    assessed by a certificated employee of the  
                    district. 
                    (EC � 51745 et. seq.)

               c)        Pupils who have met the minimum instructional  
                    requirement and are taking an online course.  Under  
                    this scenario, the pupil is generating full ADA for  
                    meeting the minimum instructional requirement and  
                    the pupil is taking the online course in addition  
                    to meeting minimum requirements. 

               d)        Pupils are enrolled in a charter school, which  
                    has less traditional accounting and attendance  
                    requirements for its pupils; and typically must  
                    meet statutory requirements, where applicable, or  
                    regulatory guidelines adopted by the State Board of  
                    Education.

          1)   Establishes the minimum school day for a high school  
               student to be 240 instructional minutes in a classroom,  
               in IS, or in a combination of the two settings, and  
               requires students taking a combination to meet  
               attendance standards for both the classroom and IS  
               courses in order for a district to claim a pupil's  
               attendance for funding purposes. (EC � 46141)

          2)   Requires that pupils in grades 9 through 12 attend  
               school for at least 64,800 minutes per year in no less  
               than 180 days (or 175 days under budget flexibility  
               language through 2014-15). (EC � 46201) 

          3)   Existing law requires each school district maintaining  
               any of grades 7 to 12, inclusive, to offer courses of  
               study that (1) fulfill the requirements and  
               prerequisites for admission to California public  
               institutions of postsecondary education and (2) provide  
               an opportunity for pupils to attain entry-level  
               employment skills in business or industry.  School  
               districts may fulfill their responsibility pursuant to  




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               number (2) by adopting a required curriculum that meets  
               or exceeds the model standards the Career Technical  
               Education adopted by the State Board of Education.  
               (EC � 51228)

           ANALYSIS
           
          This bill beginning with the 2014-15 fiscal year, permits a  
          school district, county  office of education, or charter  
          school to claim state apportionment funding for three  
          consecutive years for asynchronous (defined as "where the  
          teacher and the pupil are online at different times and do  
          not interact simultaneously) attendance of pupils in "online  
          educational learning programs." Online educational learning  
          programs may include one online course, multiple online  
          courses, or a combination of online coursework and  
          classroom-based coursework.   More specifically this bill:

          1)   Permits a pupil in grades 9 through 12, to participate  
               in online educational learning programs, if all of the  
               following apply:

               a)        The pupil is a California resident and  
                    enrolled in classes that include courses in a  
                    classroom based setting, courses that are offered  
                    through an online program, or both.

               b)        The pupil meets state minimum instructional  
                    time requirements, as specified.

               c)        Each course the pupil is enrolled in is a high  
                    quality online course.

          2)   Defines a "high quality online course" as an online  
               course that meets all the following requirements: 

               a)        Requires that the online course is approved  
                    and certified as being as rigorous as a classroom  
                    based course and meeting or exceeding all relevant  
                    state content standards. 

               b)        Requires a teacher teaching an online  
                    course(s) to be accessible to each pupil to respond  
                    to pupil queries, assign tasks, and dispense  
                    information.





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               c)        Requires a teacher teaching an online  
                    course(s) to employ at least one of the following:

                    i)             Periodic proctored examinations
                    ii)            Direct teacher-pupil meetings, in  
                         person, no less than twice per calendar month.
                    iii)           A visual connection, including, but  
                         not limited to, an Internet Web camera.
                    iv)            Timely feedback on communications  
                         for pupils within 24 hours and timely feedback  
                         for assessing pupils' work within 72 hours for  
                         minor assignments and within one week for  
                         major assignments, including, but not limited  
                         to, midterm and final examinations, major  
                         projects, and compositions.

                  In addition, specifies that specific minimum  
                  standards for teacher-pupil contact may be determined  
                  through a collective bargaining agreement.

               d)        Requires the pupil-teacher ratio for online  
                    classes from exceeding the equivalent ratio for all  
                    other educational programs offered by the school  
                    district or county office of education, unless  
                    otherwise negotiated in a collective bargaining  
                    agreement. In addition, authorizes the  
                    Superintendent of Public Instruction (SPI) to adopt  
                    rules and regulations for purposes of implementing  
                    this paragraph. 

               e)        Requires the content of an online course to  
                    meet or exceed the content standards applied to the  
                    classroom-based course, when a classroom-based  
                    course of the same course title exists.

               f)        Requires the teacher of the online course(s)  
                    to hold the appropriate subject matter credential  
                    and meets requirement for a highly qualified  
                    teacher pursuant to federal law.

               g)        Requires all statewide testing results for  
                    pupils enrolled in the online course are reported  
                    to the school, school district and county office of  
                    education in which the pupil is enrolled for  
                    regular classroom courses.  Statewide testing  
                    results may be disaggregated for purposes of  




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                    comparing testing results of pupils enrolled on  
                    online course(s) to the testing results of those  
                    pupils enrolled in classroom based courses.

               h)        Prohibits a pupil from being assigned to the  
                    online course pursuant to this section unless the  
                    pupil voluntarily elects to participate in the  
                    online course and the parent or guardian of the  
                    pupil provides written consent before the pupil  
                    participates in an online course.

               i)        Prohibits a pupil electing to participate in  
                    the online course from being denied access because  
                    the pupil lacks the computer hardware or software  
                    necessary to participate in the online course.

               j)        Prohibits a pupil from being charged for their  
                    participation in the online course.

               aa)       Requires the pupils to take examinations by  
                    proctor, or other reliable methods used to ensure  
                    test integrity, and there is a clear record of  
                    pupil work, using the same method of documentation  
                    and assessment as used in a classroom-based course.

          1)   Deems each high quality online course to be 60 minutes  
               for the purposes of calculating instructional time. A  
               pupil can be credited with a day of attendance for each  
               school day the pupil is enrolled in the high quality  
               online course.  

               Requires that satisfactory pupil progress means a pupil  
               has earned at least 60 course credits in a school year.   


          2)   Requires the elements of # 3 above are subject to annual  
               audit reporting.

          3)   Requires the Superintendent of Public Instruction, on or  
               before June 30, 2014, to adopt emergency regulations  
               authorizing a school district, county office of  
               education (COE) or charter school to receive state  
               apportionments for pupils enrolled in an online  
               course(s) beginning in 2014-15. 

          4)   Permits a school district, COE, or charter school to  




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               receive state apportionments for pupils enrolled in a  
               high-quality online course(s) based on the number of  
               online courses taught in the 2013-14 school year, or for  
               up to 10 percent of that district's or COE total average  
               daily attendance, as specified.

          5)   Defines "online educational learning program" as a  
               program of study that may include any combination of  
               courses where the teacher and the pupil are online at  
               the same time or are online at different times and do  
               not interact simultaneously. 

          6)   Prohibits the waiver of any provision of this measure,  
               unless specifically authorized.

          7)   Permits state funding for online courses for an  
               additional three years if the pupils are achieving  
               satisfactory pupil progress, as specified.

          8)   Permits increasing the number of pupils participating in  
               the online educational learning program by up to 100  
               percent if the pupils participating achieve or exceed  
               satisfactory pupil progress. The State Department of  
               Education (SDE) shall make this determination.

          9)   Requires a school district, county office of education  
               (COE), or charter school to develop and adopt policies  
               that evaluate if a pupil is achieving satisfactory  
               progress and if a pupil should be allowed to continue to  
               participate in the online educational learning program.

          10)  Requires, if in any year of participation, the pupils  
               that participate in an online program are earning less  
               than 75 percent of the course credits earned by pupils  
               in classroom based courses, this information shall be  
               sent for review by the (SDE).

          11)  Requires SDE to develop a process authorizing school  
               districts, COE, or charter school to voluntarily reduce  
               state funding (apportionments) for the online program,  
               if (a) projected student enrollment is not achieved, or  
               (b) the pupils are not achieving satisfactory pupil  
               progress.

          12)  Specifies the SDE may reduce or eliminate the state  
               funding (apportionments) if the pupils have not achieved  




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               satisfactory progress for three consecutive years or the  
               requirements of semi-annual reporting has not been  
               complied with. However, the bill allows for an appeal  
               the decision of the SDE to the State Board of Education  
               of a reduction in apportionments.

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author's office,  
               California has the opportunity to implement a powerful  
               new tool for student learning.  Online educational  
               learning programs will serve as a platform to help a  
               diverse range of students learn the same high-quality  
               content in new ways.  This new option may appeal to  
               students for a variety of reasons; students who do not  
               do well in traditional classroom settings, students who  
               want to do a "blended" learning approach with some  
               classes online and others in the classroom; and students  
               who need the flexibility in their schedules. Research  
               supports the use on online learning beyond the  
               independent study options and has shown that online and  
               blended learning increases access, options and high  
               quality learning opportunities for students.

           2)   Unclear how this measure interacts with recent  
               legislation  .  Chapter 579, Statutes of 2012 (AB 644,  
               Blumenfield), authorizes a school district or county  
               office of education to claim attendance for pupils in  
               grades 9 to 12, taking online synchronous courses,  
               toward average daily attendance (ADA) for the purpose of  
               calculating revenue limit funding, as specified.  
               Synchronous online courses are those where teacher and  
               pupil(s) are online at the same time and able to  
               interact at the same time.
                
                Ostensibly, this measure also covers synchronous and  
               "blended" (online and classroom based) courses. How will  
               the differences between this measure and Chapter 579 be  
               reconciled?  It would seem the difference is in the  
               offering of asynchronous online courses and beginning  
               the process of accountability for "satisfactory pupil  
               progress." 

           3)   Funding pupil attendance, promoting educational  
               interaction, and the state's interest  .  The Legislature,  
               generally, has required instruction for funding  




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               purposes, to be when a pupil attends class under the  
               immediate supervision of a certificated employee, with  
               some exceptions (particularly in independent study and  
               in non-classroom based charter schools).  The  
               fundamental principal for allocation of funding under  
               California's school finance system is the value of  
               instructional time. The state measures this principal  
               through the average daily attendance (ADA) system,  
               including the ability of the pupil to be under the  
               direct supervision (via a line of sight) of a  
               certificated employee. 
                
                Further, a critical aspect of education is the  
               spontaneous interaction between teacher and pupil(s), as  
               well as pupil-to-pupil, where instruction is enhanced by  
               ensuing dialogue in a timely question and answer  
               approach, the ability to work with others, and where a  
               spontaneous social interactive learning experience can  
               enrich a pupil's education by supplementing the  
               acquisition of knowledge and learning, but also assist  
               in the growth of interpersonal skills pupils will need  
               in adult life, promoting the development of well-rounded  
               individuals.   

               From the perspective of protecting the state's interest  
               and ensuring that the state's investment in education is  
               spent directly on providing educational services to  
               students who are on task in terms of learning, online  
               delivery of instruction may not be able to provide total  
               guarantees; certainly in the context of the historical  
               dependence on the immediate supervision of a teacher to  
               guarantee the state's interest, many online delivery  
               approaches create problems; particularly those that  
               involve asynchronous online courses.

           4)   In an asynchronous online course  , a course where the  
               teacher and pupil may be online at different times and  
               do not interact simultaneously, mechanisms that could  
               guarantee that a pupil is attending or participating,  
               that the pupil has spent time on task, or that there is  
               some time value to the pupil's work product are not so  
               easily defined.  

               In addition, elimination of simultaneous teacher-pupil  
               interaction, as would be the case in an asynchronous  
               course (teacher checking the students work online at  




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               different times) lack of supervision by a teacher  
               presents numerous risks to student learning,  
               particularly for students with special needs and  
               students in need of remediation.  In addition,  
               elimination of immediate teacher supervision means that  
               the state has no mechanism to ensure that a student is  
               actually engaged in the coursework.  From the  
               perspective of the state's interest, these are  
               situations where the state would be unable to ensure  
               that its investment in education is spent directly on  
               instruction.  

               This bill proposes mechanisms to provide some safeguards  
               that include: (a) periodic proctored examinations, (b)  
               direct teacher-pupil meetings of no less than twice per  
               calendar month, and (c) a visual connection including,  
               but not limited to, Internet Webcam.  

               There are fiscal questions related to claiming average  
               daily attendance (ADA) for an asynchronous online  
               course. For example, how does the state, for accounting  
               and audit purposes, ensure that the pupil actually meets  
               the minimum instructional time and day requirements?  
               This includes basic issues as how attendance is taken in  
               these courses. Are there unintended consequences (e.g.,  
               inequities in access to online instruction, loss of the  
               speaking skills required in the language arts standards,  
               or losses in personal and social skills) that might  
               result from increasing this means of delivering  
               education services? 

               This bill begins to answer some of the questions raised  
               by requiring pupils who enroll in an asynchronous online  
               class to be "deemed" as meeting 60 minutes of  
               instructional time for the purposes of meeting minimum  
               instructional day and minute requirements, in order to  
               generate ADA, which is the basis for calculating revenue  
               limit funding, as long as satisfactory pupil progress  
               has been accomplished, and by providing for minimal  
               requirements on course quality. However, this is still a  
               fairly new and less prescriptive way of connecting  
               funding, pupil academic outcomes, and to a lesser degree  
               meaningful accountability. 

               However, since the approach presented in this measure is  
               a fairly new undertaking for the State in terms of both  




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               educational approach and funding, staff recommends a  
               number of amendments:

               a)        Delay implementation until the 2015-16 fiscal  
                    year.  This will allow information from the  
                    implementation of Chapter 579 to inform the state  
                    moving forward.

               b)        Require that both sections of this bill are  
                    subject to the audit conducted pursuant to  
                    Education Code section 41020.  This would provide  
                    enough time for updates to the state audit guide  
                    and ensure fiscal integrity of such a new endeavor.  


               c)        Minimum standards for teacher-pupil contact  
                    shall be determined through a collective bargaining  
                    agreement (rather than leaving it permissive and  
                    this language should be given a new paragraph).

               d)        On page 4, line 31, a teacher teaching an  
                    online course shall employ  all  of the following?(as  
                    specified on page 4, lines 33 through 37, and in  
                    concert with the recommended amendment below)

               e)        Require timely feedback to pupils as a basic  
                    tenet of a teacher teaching an online course.  On  
                    pages 4 and 5, strike out line 38, and move to page  
                    4 line 31 after the period.

               f)        Add on page 5, after lines 12 and 21, the  
                    computation of the teacher-pupil ratio be performed  
                    annually and reported with the second principal  
                    apportionment report to the Superintendent of  
                    Public Instruction.

               g)        In no case shall provisions of this measure be  
                    implemented prior to the adoption of rules and  
                    regulations by the SPI for implementing the two  
                    sections of this measure (rather than just for  
                    apportionments and the prescribing of determining  
                    appropriate teacher-pupil ratios). 
                                                   
               h)        Limit the amount of average daily attendance  
                    (ADA) that can be generated via online educational  
                    learning programs to no more than 10 percent of a  




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                    school district, county office of education, or  
                    charter school's total ADA.  And strike out on page  
                    8, lines 26 through 33.

               i)        Add a sunset of the provisions of this measure  
                    as of June 30, 2019.

           5)   Governor's Local Control Funding Formula  :  As part of  
               the 2013-14 Governor's Budget, the administration  
               proposes to restructure the existing K-12 finance system  
               and eliminate over 40 existing programs while also  
               repealing, what the administration determines are  
               countless "discretionary" provisions of statute, while  
               implementing a new formula known as the Local Control  
               Funding Formula (LCFF).  The LCFF would consolidate the  
               vast majority of state categorical programs and revenue  
               limit apportionments into a single source of funding (12  
               categorical programs, including Special Education, Child  
               Nutrition, Preschool, and After School programs, would  
               be excluded).  The LCFF proposal would also eliminate  
               the statutory and programmatic requirements for almost  
               all existing categorical programs - the programs would  
               be deemed "discretionary" and programs in any of these  
               areas would be dependent on local district discretion.   
               To the extent that the LCFF or a modified version of it  
               is adopted as part of the budget, the majority of  
               currently required categorical or state optional  
               activities would be left to local districts' discretion.  
                Therefore, the changes proposed by this bill for the  
                online educational learning program  could be diluted,  
               eliminated, rendered obsolete or discretionary at the  
               local level. 

           6)   Prior legislation  .  Chapter 579, Statutes of 2012 (AB  
               644, Blumenfield), authorizes a school district or  
               county office of education to claim attendance for  
               pupils in grades 9 to 12, taking online synchronous  
               courses, toward average daily attendance (ADA) for the  
               purpose of calculating revenue limit funding, as  
               specified.

           7)   Past legislative attempts.   In 2002, the Legislature  
               passed AB 885 (Daucher, Chapter 801) that authorized  
               participation by high school students in the Online  
               Classroom Pilot program, which allowed the use of an  
               asynchronous, interactive (a teacher and student  




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               interact online, but not necessarily at the same time)  
               curriculum. The pilot program addressed the need to  
               provide expanded educational opportunities for pupils  
               attending schools with limited educational offerings;  
               the need to provide access to advanced placement courses  
               where none are available; and the need to provide  
               quality educational access in courses for hard-to-staff  
               subject areas.  

               The pilot program sunset in 2007 and only cursory  
               evaluative information was provided; not a thorough  
               analysis which would assist in decision making for  
               renewing or expanding the pilot.

          8)   Prior and related legislation.  

                AB 2027 (Blumenfield), substantially similar to this  
               measure, passed this Committee on an 8-0 vote, but was  
               ultimately held in the Senate Appropriations Committee.

               AB 837 (Torlakson, 2009) established that a school  
               district or county office of education, beginning with  
               2010-11, may claim average daily attendance on the basis  
               of a pupil's attendance at a class or classes in the  
               classroom-based setting on that day, for the purpose of  
               learning online.  This measure was held on the Assembly  
               Appropriations suspense file.

               AB 2457 (Walters, 2008) extended the Online Classroom  
               Pilot program until 2012; the bill was held on the  
               Assembly Appropriations suspense file.

               AB 885 (Daucher, Chapter 801, Statutes of 2002),  
               established the Online Classroom Pilot.  

           SUPPORT  

          California Association of School Business Officers
          California Association of Suburban School Districts
          EdVoice
          Kern County Superintendent of Schools
          Riverside County Superintendent of Schools


           OPPOSITION





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           None on file.