BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   June 25, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                    SB 1263 (Pavley) - As Amended:  June 17, 2014

           SENATE VOTE  :   21-12
           
          SUBJECT  :   Charter schools: location.

           SUMMARY  :   Deletes the authorization for a charter school to  
          locate outside the jurisdiction of the chartering school  
          district, due to site unavailability and instead authorizes a  
          charter school to temporarily locate outside the jurisdiction of  
          a chartering school district for purposes of construction, as  
          specified; authorizes existing charter schools that are located  
          outside the jurisdiction of the chartering school district to  
          continue operation if they are in operation with students  
          enrolled and attending before July 1, 2014; and, prohibits a  
          school district with a negative certification from authorizing  
          new charter schools located outside of their jurisdiction.   
          Specifically,  this bill  :   

          1)Deletes the authorization for a charter school to locate one  
            site outside the jurisdiction of the charter authorizer, but  
            within the county in which that authorizer is located, when a  
            facility is unavailable. 

          2)Authorizes a charter school that is unable to locate within  
            the jurisdiction of the chartering school district to  
            establish one site outside the boundaries of the authorizer,  
            but within the county in which that authorizer is located, if  
            the school district within the jurisdiction of which the  
            charter school proposes to operate is notified in advance of  
            the charter petition approval, the county superintendent of  
            schools and the Superintendent (SPI) are notified of the  
            location of the charter school before it commences operations,  
            and the site is needed for temporary use for up to one school  
            year during a construction or expansion project, unless the  
            school district in which the charter school intends to operate  
            consents to a longer period of time. 

          3)Requires a charter school locating outside the authorizing  
            school district during a construction project, to notify all  
            parents of enrolled students of the following information, at  








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            least 60 days before the beginning of the school year:
             a)   The name of the authorizing school district;
             b)   The location of the temporary site at which the charter  
               school will locate;
             c)   The reason for the temporary location;
             d)   The location of the site the charter school intends to  
               locate within the authorizing school district after the  
               temporary site; and,
             e)   The contact information, including but not limited to,  
               the name, phone number, and email address of a person  
               employed by the governing board of the charter school for  
               questions or additional information. 

          4)Allows a charter school that was authorized to locate, and  
            operate, a site outside the boundaries of the authorizing  
            school district at which pupils were enrolled and attending  
            before July 1, 2014, to continue to operate the site outside  
            the boundaries of the authorizing school district until the  
            charter school applies for renewal of its charter; and,  
            requires the chartering school district, at the time of the  
            charter school renewal, to make the following findings in  
            order for the charter school to continue operating outside the  
            boundaries of the authorizing school district:
             a)   That there is no site within the boundaries of the  
               authorizing school district for the charter school to  
               locate.
             b)   That only one site is located outside the boundaries of  
               the authorizing school district.
             c)   If the governing board of the authorizing school  
               district does not make the findings described above, the  
               charter school shall not operate a site outside the  
               boundaries of the authorizing school district after renewal  
               of its charter unless the school district in which the site  
               is located consents to the location of the charter school  
               site. 

          5)Prohibits a school district that is assigned negative  
            certification to authorize new charter schools that would  
            locate outside the authorizing school district.  

          6)Declares Legislative intent to close the statutory loopholes  
            authorizing a charter school to locate outside the geographic  
            boundaries of the chartering school district.

           EXISTING LAW  specifies that a charter school that is unable to  








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          locate within the jurisdiction of the chartering school district  
          may establish one site outside the boundaries of the authorizer,  
          but within the county in which that school district is located,  
          if the school district within the jurisdiction of which the  
          charter school proposes to operate is notified in advance of the  
          charter petition approval, the county superintendent of schools  
          and the Superintendent are notified of the location of the  
          charter school before it commences operations, and either of the  
          following circumstances exists:
          1)The school has attempted to locate a single site or facility  
            to house the entire program, but a site or facility is  
            unavailable in the area in which the school chooses to locate.
          2)The site is needed for temporary use during a construction or  
            expansion project. (Education Code 47605 and 47605.1)

           FISCAL EFFECT  :   This bill is keyed non-fiscal.

           COMMENTS  :   This bill deletes the current authorization for a  
          charter school to locate outside the jurisdiction of the  
          chartering school district, when a site is unavailable within  
          the jurisdiction of the chartering school district.  However,  
          the bill authorizes existing charter schools that are located  
          outside the jurisdiction of the chartering school district to  
          continue operation, if they are in operation with students  
          enrolled and attending before July 1, 2014.  The bill continues  
          the existing authorization for a charter school to temporarily  
          locate outside the jurisdiction of a chartering school district  
          for purposes of construction, but limits the duration to one  
          year unless authorization from the neighboring school district  
          has been given.  Lastly, the bill prohibits a school district  
          with a negative certification from authorizing new charter  
          schools located outside their jurisdiction.

          According to the author, "SB 1263 closes a loophole in current  
          law which allows a charter school to operate outside of its  
          authorizing district on an indefinite basis.  Under state law, a  
          charter school may, in certain circumstances, be authorized by  
          one school district but locate in another.  This has created  
          problems in Santa Clarita, where a charter school organization  
          applied for a charters in one district, but located the schools  
          within surrounding districts which have denied them multiple  
          times.  The districts where the charter schools were located in  
          were then improperly notified and the facilities selected to  
          host the school were deemed inadequate.  Since the charter  
          school isn't authorized by the district in which they are  








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          located, there is no way to resolve or address concerns and  
          issues.  Since 2011, the 5 Santa Clarita Superintendents have  
          sent 16 letters to local, county, state, and Federal officials.   
          Yet the State Department of Education has told the Santa Clarita  
          districts that state law does not provide any remedies and that  
          any issues must be resolved by the authorizing district."  

          The author further states, "Ultimately, this is about funding -  
          since 2012, the school district (Acton-Agua Dulce Unified School  
          District) has approved 15 charters even though the district has  
          less than 2,500 students.  Additionally, the school district is  
          receiving 3.5% of the revenues from the 15 charters it has  
          authorized through "Oversight Fees" and "Administrative  
          Services."  This alone is illegal and has triggered an audit by  
          the LA County Office of Education.  It should also be noted that  
          the authorizing school district is listed as being in negative  
          certification, meaning the Department of Education believes that  
          the district will be unable to meet its financial obligations in  
          the current fiscal year.  In order to remedy this situation, SB  
          1263 deletes the ability for charter schools to locate outside  
          of their authorizing district.  This would, in effect, prevent a  
          charter school from being able to operate outside of its  
          authorizing district indefinitely and remove the business model  
          that the authorizing school district has implemented.  This is  
          consistent with the intent of California law, which was for the  
          charter school to be located within its authorizing district."

           Notice to Parents  : This bill requires charter schools located  
          outside the jurisdiction of their authorizer to send a notice to  
          parents with specific information about where the school is  
          located and who is the authorizer.  This is intended to help  
          clear up confusion that may be happening. According to the  
          author, parents in some areas are being told that a charter  
          school will be located near them in the future, but they are  
          currently located a distance away. 

           Construction  : This bill authorizes charter schools to locate  
          outside the jurisdiction of their authorizer for one year during  
          a construction project. The bill authorizes a longer stay if the  
          neighboring school district approves.  School construction  
          typically lasts a minimum of two to five years. The committee  
          should consider whether one year is long and enough and whether  
          the bill should allow charters to temporarily locate outside the  
          jurisdiction of the authorizer during the period of actual  
          construction. 








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           Grandfathering Existing Schools  : This bill authorizes existing  
          charter schools that are located outside the jurisdiction of  
          their authorizer to continue to operate, if the authorizing  
          school district makes a finding that the school is in compliance  
          with existing law. This means that the school has only one  
          location outside the jurisdiction of the authorizer due to a  
          lack of site availability within the authorizer's jurisdiction.   
          Existing charter schools are grandfathered in, if they were in  
          operation before July 1, 2014, which means they must have been  
          in operation for the 2013-14 school year.  According to the  
          California Charter School Association, there are approximately  
          22 schools state-wide that operate outside the jurisdiction of  
          their chartering authority.

           Negative Certification  : Local education agencies (LEAs) are  
          required to file two reports during the fiscal year (interim  
          reports) on the status of the LEA's fiscal health. The first  
          report is due December 15 and the second report is due March 17.  
          The interim reports must include a certification of whether or  
          not the LEA is able to meet its financial obligations. The  
          certifications are classified as positive, qualified, or  
          negative. A positive certification is assigned when the district  
          will meet its financial obligations for the current and two  
          subsequent fiscal years. A qualified certification is assigned  
          when the district may not meet its financial obligations for the  
          current or two subsequent fiscal years. A negative certification  
          is assigned when a district will be unable to meet its financial  
          obligations for the remainder of the current year or for the  
          subsequent fiscal year.  This bill prohibits a school district  
          with a negative certification from authorizing a new charter  
          school to be located outside their jurisdiction.  The bill  
          specifies that school districts with a negative certification  
          are prohibited from authorizing new charter schools outside  
          their jurisdiction, but what about county offices of education  
          that have a negative certification?  The committee should  
          consider whether county offices of education with a negative  
          certification should be allowed to authorize new charter  
          schools.

           Committee Amendments  : The committee should consider the  
          following amendments:
          1)Specify that charter schools can locate outside the  
            jurisdiction of their authorizer for construction, during the  
            actual construction period, not to exceed 18 months.   








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            Authorize a longer stay if approved by the host district.
          2)Authorize a charter school to locate outside the jurisdiction  
            of the authorizer, with written approval from the host  
            district as part of the charter petition and at each renewal  
            period. 
          3)Delete the grandfathering language from the bill and instead  
            authorize existing charter schools that are located outside  
            the jurisdiction of their authorizer to continue operation if  
            the site was authorized before April 1, 2013 and had pupils  
            attending before September 1, 2014. Authorize existing charter  
            schools to continue operation if they don't meet the  
            authorization date and operation date above, if they obtain  
            written approval from the host district.

           Arguments in Support  :  The Castaic Union School District  
          supports the bill and states, "This measure addresses the  
          loopholes in charter law that permit charter schools to locate  
          outside of the authorizing school district?.Once the charter  
          school has set up operations in a neighboring district, it often  
          stays.  No government entity except the authorizing district has  
          the practical ability to require the charter school to comply  
          with current law.  Furthermore, the chartering school district  
          has a financial incentive to keep the charter school operating  
          outside of its geographical boundaries.  The law is broken and  
          charter schools in various parts of the state have abused this  
          lack of enforcement authority."

           Arguments in Opposition  :  The Classical Academies opposes the  
          bill and states, "SB 1263 would remove the current allowance  
          available to charter schools to place one school site outside of  
          its authorizing district under extenuating circumstances.  While  
          I understand that Senator Pavley is attempting to address a  
          situation in her district dealing with the actions of a single  
          school district, this bill offers the wrong solution to a local  
          problem.  Eliminating this option for charter schools aggravates  
          the challenges that some charter schools have in finding  
          educationally appropriate school facilities.  Charter schools  
          have limited funding and authority to acquire or build school  
          facilities and are often forced to be innovative in securing a  
          desirable location for their students.  We have had to look  
          outside our community for facility options for programming and  
          this legislation would greatly impact our operations and ability  
          to meet the needs of students at The Classical Academies."

           REGISTERED SUPPORT / OPPOSITION  :








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          Support 
           
          Castaic Union Elementary School District
          Los Angeles County Office of Education
          Newhall Elementary School District
          San Diego Unified School District
          Saugus Union Elementary School District
          Sulphur Springs Union Elementary School District
          William S. Hart High School District
          Wiseburn School District
           
            Opposition 
           
          Albert Einstein Academies for Letters, Arts and Sciences
          California Charter Schools Association Advocates
          Environmental Charter Middle School
          Kid Street Learning Center
          Pacific Charter Institute
          Rocklin Academy
          The Classical Academies
          Twin Hills School District
          Numerous individuals


           Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087