BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 714
          Author:   Block (D)
          Amended:  5/24/13
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  9-0, 4/24/13
          AYES:  Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,  
            Jackson, Monning

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    Online instruction:  average daily attendance

           SOURCE  :     Author


           DIGEST  :    This bill, beginning with the 2015-16 fiscal year,  
          permits a school district, county of office of education (COE),  
          or charter school providing classroom-based instruction to claim  
          funding up to 10% of the total average daily attendance (ADA) in  
          grades 9-12, 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" (OELPs).   
          OELPs may include one online course, multiple online courses, or  
          a combination of online coursework and classroom-based  
          coursework, as specified.  This bill requires a school district,  
          COE, or charter school that enrolls pupils in an online course  
          or courses to develop and adopt policies that evaluate if a  
          pupil is achieving satisfactory pupil progress and if a pupil  
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          should be allowed to continue to enroll in the OELP.
                         
           ANALYSIS  :    

          Existing law:

           1. Requires the majority of the state's revenue limit funding  
             (general purpose) allocated to local educational agencies  
             (LEAs) be based on ADA.  ADA is the average amount of time a  
             pupil attends class under the immediate supervision of a  
             certificated employee.  

           2. 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.  

              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/she is required to produce a work product,  
                which is assessed by a certificated employee of the  
                district.  

              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 (SBE).

           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  

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             the classroom and IS courses in order for a district to claim  
             a pupil's attendance for funding purposes.  

           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).   

           3. Requires each school district maintaining any of grades 7 to  
             12, inclusive, to offer courses of study that (a) fulfill the  
             requirements and prerequisites for admission to California  
             public institutions of postsecondary education and (b)  
             provide an opportunity for pupils to attain entry-level  
             employment skills in business or industry.  School districts  
             may fulfill their responsibility pursuant to number (b) by  
             adopting a required curriculum that meets or exceeds the  
             model standards the Career Technical Education adopted by the  
             SBE.  

          This bill, beginning with the 2014-15 fiscal year, permits LEAs  
          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."  Specifically, this bill:

           1. Permits a pupil in grades 9-12, to participate in OELPs, if:  
              (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; and, (c) each course the pupil is  
             enrolled in is a high quality online course.

           2. Defines a "high quality online course" as meeting specified  
             requirements, including:  

             A.    A teacher teaching an online course be accessible to  
                each pupil to respond to pupil queries, assign tasks, and  
                dispense information; and

             B.    That a teacher teaching an online course employ all of  
                the following: 
              

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                (1)      Periodic proctored examinations;

                (2)      Direct teacher-pupil meetings, in person, no less  
                   than twice per calendar month; 

                (3)      A visual connection; and
                 
                (4)      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, as specified.

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

           4. Requires all statewide testing results for pupils enrolled  
             in the online course be reported to the school, school  
             district and COE in which the pupil is enrolled for regular  
             classroom courses.  Statewide testing results may be  
             disaggregated for purposes of comparing testing results of  
             pupils enrolled on online course(s) to the testing results of  
             those pupils enrolled in classroom based courses.

           5. Prohibits a pupil from being assigned to the online course,  
             as specified, unless the pupil voluntarily elects to  
             participate in the online course and the parent or guardian  
             of the pupil provides written consent.

           6. 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, and prohibits a pupil from being charged for  
             their participation in the online course.

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

           8. 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.   

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

           9. Requires the Superintendent of Public Instruction (SPI), on  
             or before January 1, 2015, to adopt implementing regulations  
             authorizing LEAs to receive state apportionments for pupils  
             enrolled in online courses. 

           10.Permits an LEA to receive state apportionments for pupils  
             enrolled in a high-quality online course for up to 10% of  
             that district's or COE's total ADA, as specified.

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

           12.Requires a participating LEA 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 OELP.

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

           14.Requires CDE to develop a process authorizing participating  
             LEAs to voluntarily reduce state funding (apportionments) for  
             the online program if projected student enrollment is not  
             achieved, or if the pupils are not achieving satisfactory  
             pupil progress.

           15.Specifies the CDE may reduce or eliminate apportionments if  
             the pupils have not achieved satisfactory progress for three  
             consecutive years or the requirements of semi-annual  
             reporting has not been complied with.

           Comments
           
          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  

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          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 OELP could be diluted, eliminated, rendered obsolete or  
          discretionary at the local level.

           Prior Legislation
           
          AB 644 (Blumenfield, Chapter 579, Statutes of 2012) authorized a  
          school district or COE to claim attendance for pupils in grades  
          9-12, taking online synchronous courses, toward ADA for the  
          purpose of calculating revenue limit funding, as specified.

          AB 837 (Torlakson, 2009) would have established that a school  
          district or COE, beginning with 2010-11, may claim ADA 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.  The bill was held on the Assembly Appropriations  
          suspense file.

          AB 2457 (Walters, 2008) would have 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.  

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

          According to the Senate Appropriations Committee:

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            Apportionment:  Unlikely to result in significant additional  
             state costs.  This bill allows programs more flexibility to  
             claim ADA for nonclassroom based instruction; in the absence  
             of this flexibility, LEAs are likely to continue their  
             programs as they are and to continue to collect existing  
             apportionment levels. 

            CDE administration:  CDE would require a 0.5 Education  
             Programs Consultant to manage the regulation development  
             process and to review school district pupil data for claiming  
             ADA from online course enrollment.  This bill also creates  
             additional cost pressure to fund an existing departmental  
             budget request for $145,000. See staff comments.

           SUPPORT  :   (Verified  5/24/13)

          California Association of School Business Officers
          California Association of Suburban School Districts
          EdVoice
          Kern County Superintendent of Schools
          Riverside County Superintendent of Schools
          San Diego Unified School District

           OPPOSITION  :    (Verified  5/24/13)

          California Teachers Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          California has the opportunity to implement a powerful new tool  
          for student learning.  OELPs 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 IS options and  
          has shown that online and blended learning increases access,  
          options and high quality learning opportunities for students.

           ARGUMENTS IN OPPOSITION  :    Opponents argue asynchronous  
          instruction (when a student and teacher are not online at the  
          same time) is IS.  Removing asynchronous instruction from IS  

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          removes safeguards that have been built in over time.  Current  
          IS law has a method for trying to calculate how much time was  
          spent by the student to accomplish the coursework.  Students are  
          not held to the same standard in the system proposed by this  
          bill.  
           

          PQ:k  5/24/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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