BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1263
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          SENATE THIRD READING
          SB 1263 (Pavley)
          As Amended  August 22, 2014
          Majority vote

           SENATE VOTE  :21-12

           EDUCATION           5-2                                         
           
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          |Ayes:|Buchanan, Gonzalez,       |     |                          |
          |     |Nazarian, Weber, Williams |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Olsen, Ch�vez             |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Authorizes a charter school to locate outside the  
          jurisdiction of the chartering school district with written  
          approval from the school district within the jurisdiction of  
          which the charter school chooses to operate and 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 were approved  
          prior to April 1, 2013, and are in operation with students  
          enrolled and attending before September 15, 2014; and, prohibits  
          a school district with a negative certification from authorizing  
          new charter schools located outside of their jurisdiction.   
          Specifically,  this bill  :   

          1)Authorizes a charter school that is unable to locate within  
            the jurisdiction of the chartering school district to  
            establish one facility outside the boundaries of the  
            authorizer, but within the county in which that authorizer is  
            located, if either of the following exist:

             a)   The school district within the jurisdiction of which the  
               charter school proposes to operate provides written  
               approval to the chartering school district before the  
               charter petition is approved for that facility and before  
               each charter petition renewal.

             b)   The facility is needed for temporary use during the  
               period of construction for a construction or expansion  
               project, for up to 18 months, unless the school district in  








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               which the charter school proposes to operate approves of a  
               longer period of time. The charter school shall provide  
               written notice before the charter petition is approved to  
               the school district within the jurisdiction of which the  
               charter school proposes to temporarily operate, the county  
               superintendent of schools, and the Superintendent of Public  
               Instruction.

          2)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  
            least 60 days before the beginning of the school year:

             a)   The name of the chartering school district;

             b)   The physical address of the temporary site at which the  
               charter school will locate;

             c)   The reason for the temporary location;

             d)   The physical address 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. 

          3)Authorizes a charter school to continue to operate a facility  
            outside the boundaries of the chartering school district if  
            both of the following apply:

             a)   The charter school was authorized before April 1, 2013,  
               to locate at that facility.

             b)   The charter school operated that facility with pupils  
               enrolled and attending before September 15, 2014.

          4)Specifies that an existing charter school that does not meet  
            the requirements above may continue to operate the facility  
            outside the boundaries of the chartering school district if  
            the school district within the jurisdiction of which the  
            charter school operates provides written approval to the  
            chartering school district.








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          5)Specifies a charter school may operate a facility outside the  
            boundaries of the chartering school district if either of the  
            following apply:

             a)   The charter school is an American Indian charter school,  
               where pupils identified as American Indian or Alaska Native  
               comprise more than 50% of the charter school's enrollment.

             b)   The charter school meets the eligibility criteria for  
               the Alternative Schools Accountability model adopted by the  
               state board.

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

          7)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  
          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 of Public Instruction 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 Sections 47605 and  
            47605.1)
           FISCAL EFFECT  :  None  

           COMMENTS  :  This bill authorizes a charter school to locate  
          outside the jurisdiction of the chartering school district with  
          written approval from the school district within the  
          jurisdiction of which the charter school chooses to operate.   








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          This 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 18 months unless authorization from the  
          neighboring school district has been given.  This bill  
          grandfathers in existing charter schools that were approved  
          prior to April 1, 2013, and will be in operation with students  
          enrolled prior to September 15, 2014.  Lastly, this 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  
          located, there is no way to resolve or address concerns and  
          issues.  Since 2011, the five 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 Los Angeles 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, this bill requires charter schools to obtain  
          approval from the school district where it chooses to operate if  








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          they choose to locate outside of their authorizing district.   
          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 18 months  
          during a construction project.  This bill authorizes a longer  
          stay if the neighboring school district approves.  School  
          construction typically lasts a minimum of two to five years. 

          Grandfathering Existing Schools:  This bill authorizes existing  
          charter schools that are located outside the jurisdiction of  
          their authorizer to continue to operate, if the charter was  
          approved prior to April 1, 2013, and is in operation with  
          students enrolled prior to September 15, 2014.
          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  








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          authorizing a new charter school to be located outside their  
          jurisdiction.  

          Arguments in Support:  The Castaic Union School District  
          supports this 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 this  
          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."


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


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