AB 787: Charter schools: operation: nonprofit public benefit corporations: for-profit corporation prohibition.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-09-11
Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified.
This bill would, commencing January 1, 2017, prohibit a charter school from operating as, or being operated by, a for-profit corporation.
Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified.
This bill would would, commencing January 1, 2017, prohibit a charter school from operating as, or being operated by, a for-profit corporation.
(1)Existing
Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified. The act requires the governing board of a school district that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation to be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
This bill instead would require that an authority that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. The bill also would require that the initial chartering authority appoint a majority of the members of the board of directors of the nonprofit public benefit corporation, as provided, for a charter school that elects to operate as, or be operated by, a nonprofit public benefit corporation and submits a charter petition, charter renewal, or material revision application on or after January 1, 2016. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program.
This bill also would prohibit a charter school from operating as, or being operated by, a for-profit corporation.
(2)The Charter Schools Act of 1992 prohibits the governing board of a school district from denying a petition for the establishment of a charter school unless the governing board of the school district finds that the petition does not contain specified information, including, among other information, a reasonably comprehensive description of the governance structure of the school.
This bill would require the petition for the establishment of a charter school that will operate as, or be operated by, a nonprofit public benefit corporation also to include the names and background information for all persons whom the petitioner nominates to serve on the board of directors of the nonprofit public benefit corporation.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(1)Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified. The act requires the governing board of a school district that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation to be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
This bill instead would require that an authority that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. The bill also would require that the initial chartering authority appoint a majority of the members of the board of directors of the nonprofit public benefit corporation, as provided, for a charter school that elects to operate as, or be operated by, a nonprofit public benefit corporation and submits a charter petition, charter renewal, or material revision application on or after January 1, 2016. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program.
This bill also would prohibit a charter school from operating as, or being operated by, a for-profit corporation.
(2)The Charter Schools Act of 1992 prohibits the governing board of a school district from denying a petition for the establishment of a charter school unless the governing board of the school district finds that the petition does not contain specified information, including, among other information, a reasonably comprehensive description of the governance structure of the school.
This bill would require the petition for the establishment of a charter school that will operate as, or be operated by, a nonprofit public benefit corporation also to include the names and background information for all persons whom the petitioner nominates to serve on the board of directors of the nonprofit public benefit corporation.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
(1)Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified. The act requires the governing board of a school district that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation to be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
This bill instead would require that an authority that grants a charter for the establishment of a charter school formed and organized as a nonprofit public benefit corporation be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. The bill also would require that the initial chartering authority appoint a majority of the members of the board of directors of the nonprofit public benefit corporation, as provided, for a charter school that elects to operate as, or be operated by, a nonprofit public benefit corporation and submits a charter petition, charter renewal, or material revision application on or after January 1, 2016. By imposing additional duties on local educational agencies, the bill would impose a state-mandated local program.
This bill also would prohibit a charter school from operating as, or being operated by, a for-profit corporation.
(2)The Charter Schools Act of 1992 prohibits the governing board of a school district from denying a petition for the establishment of a charter school unless the governing board of the school district finds that the petition does not contain specified information, including, among other information, a reasonably comprehensive description of the governance structure of the school.
This bill would require the petition for the establishment of a charter school that will operate as, or be operated by, a nonprofit public benefit corporation also to include the names and background information for all persons whom the petitioner nominates to serve on the board of directors of the nonprofit public benefit corporation.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The Charter Schools Act of 1992 specifies the procedures for the submission, review, and approval or denial of a petition to establish a charter school. Existing law provides that a charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law.
This bill would make nonsubstantive changes to the provision authorizing a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation.
The Charter Schools Act of 1992 specifies the procedures for the submission, review, and approval or denial of a petition to establish a charter school. Existing law provides that a charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law.
This bill would make nonsubstantive changes to the provision authorizing a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation.
(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
(d)This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.
SEC. 2.Section 47604 is added to the Education Code, to read:47604.(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)A charter school shall not operate as, or be operated by, a for-profit corporation.
(d)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
(e)This section shall become operative January 1, 2017.
(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)A charter school shall not operate as, or be operated by, a for-profit corporation.
(d)
(c)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
(d)This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.
SEC. 2.Section 47604 is added to the Education Code, to read:47604.(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)A charter school shall not operate as, or be operated by, a for-profit corporation.
(d)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
(e)This section shall become operative January 1, 2017.
(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)For a charter school that elects to operate pursuant to this section, and that submits a charter petition, charter renewal, or material revision application on or after January 1, 2016, all of the following shall apply:
(1)The initial chartering authority shall appoint a majority of the members of the board of directors of the nonprofit public benefit corporation from persons publicly nominated in the charter petition, charter renewal, or material revision application. The number of persons nominated shall be twice the total number of members that comprise the board of directors. The majority calculation required by this subdivision shall not include the representative appointed pursuant to subdivision (b).
(2)The initial chartering authority, during the term of the charter, shall ensure that a majority of the members of the board of directors of the nonprofit public benefit corporation are members appointed pursuant to paragraph (1). In the event that a member appointed pursuant to paragraph (1) no longer serves on the board of directors, for reasons including, but not limited to, death, disability, removal, or resignation, the initial chartering authority shall appoint a new member from persons nominated by the nonprofit public benefit corporation at the time the vacancy occurs, consistent with paragraph (1) and by submitting a material revision application.
(3)Nothing in this subdivision limits or supersedes the ability of a charter school operated pursuant to this section to either use an election process or other community involvement process to select nominees for the board of directors of the nonprofit public benefit corporation for consideration by the initial chartering authority or to nominate persons for positions on the board of directors of the nonprofit public benefit corporation by using specified eligibility criteria. It shall be the policy of the state to encourage and to promote parental, educator, and community participation in, and geographic and ethnic diversity in, the governance of a charter school.
(4)A member of the board of directors of the nonprofit public benefit corporation is subject to removal from his or her board position pursuant to Article 3 (commencing with Section 3060) of Chapter 7 of Division 4 of Title 1 of the Government Code and as otherwise provided by law.
(d)
(c)A charter school shall not operate as, or be operated by, a for-profit corporation.
(e)
(d)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
SEC. 2.Section 47605 of the Education Code is amended to read:47605.(a)(1)Except as set forth in paragraph (2), a petition for the establishment of a charter school within a school district may be circulated by one or more persons seeking to establish the charter school. A petition for the establishment of a charter school shall identify a single charter school that will operate within the geographic boundaries of that school district. A charter school may propose to operate at multiple sites within the school district, as long as each location is identified in the charter school petition. The petition may be submitted to the governing board of the school district for review after either of the following conditions is met:
(A)The petition is signed by a number of parents or legal guardians of pupils that is equivalent to at least one-half of the number of pupils that the charter school estimates will enroll in the charter school for its first year of operation.
(B)The petition is signed by a number of teachers that is equivalent to at least one-half of the number of teachers that the charter school estimates will be employed at the charter school during its first year of operation.
(2)A petition that proposes to convert an existing public school to a charter school that would not be eligible for a loan pursuant to subdivision (c) of Section 41365 may be circulated by one or more persons seeking to establish the charter school. The petition may be submitted to the governing board of the school district for review after the petition is signed by not less than 50 percent of the permanent status teachers currently employed at the public school to be converted.
(3)A petition shall include a prominent statement that a signature on the petition means that the parent or legal guardian is meaningfully interested in having his or her child or ward attend the charter school, or in the case of a teachers signature, means that the teacher is meaningfully interested in teaching at the charter school. The proposed charter shall be attached to the petition.
(4)After receiving approval of its petition, a charter school that proposes to establish operations at one or more additional sites shall request a material revision to its charter and shall notify the authority that granted its charter of those additional locations. The authority that granted its charter shall consider whether to approve those additional locations at an open, public meeting. If the additional locations are approved, they shall be a material revision to the charter schools charter.
(5)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 school district, 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:
(A)The charter 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 charter school chooses to locate.
(B)The site is needed for temporary use during a construction or expansion project.
(6)Commencing January 1, 2003, a petition to establish a charter school shall not be approved to serve pupils in a grade level that is not served by the school district of the governing board considering the petition, unless the petition proposes to serve pupils in all of the grade levels served by that school district.
(b)No later than 30 days after receiving a petition, in accordance with subdivision (a), the governing board of the school district shall hold a public hearing on the provisions of the charter, at which time the governing board of the school district shall consider the level of support for the petition by teachers employed by the school district, other employees of the school district, and parents. Following review of the petition and the public hearing, the governing board of the school district shall either grant or deny the charter within 60 days of receipt of the petition, provided, however, that the date may be extended by an additional 30 days if both parties agree to the extension. In reviewing petitions for the establishment of charter schools pursuant to this section, the chartering authority shall be guided by the intent of the Legislature that charter schools are and should become an integral part of the California educational system and that the establishment of charter schools should be encouraged. The governing board of the school district shall grant a charter for the operation of a charter school under this part if it is satisfied that granting the charter is consistent with sound educational practice. The governing board of the school district shall not deny a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, setting forth specific facts to support one or more of the following findings:
(1)The charter school presents an unsound educational program for the pupils to be enrolled in the charter school.
(2)The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition.
(3)The petition does not contain the number of signatures required by subdivision (a).
(4)The petition does not contain an affirmation of each of the conditions described in subdivision (d).
(5)The petition does not contain reasonably comprehensive descriptions of all of the following:
(A)(i)A description of the educational program of the charter school, designed, among other things, to identify those whom the charter school is attempting to educate, what it means to be an educated person in the 21st century, and how learning best occurs. The goals identified in that program shall include the objective of enabling pupils to become self-motivated, competent, and lifelong learners.
(ii)A description, for the charter school, of annual goals, for all pupils and for each subgroup of pupils identified pursuant to Section 52052, to be achieved in the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school, and specific annual actions to achieve those goals. A charter petition may identify additional charter school priorities, the goals for the charter school priorities, and the specific annual actions to achieve those goals.
(iii)If the proposed charter school will serve high school pupils, a description of the manner in which the charter school will inform parents about the transferability of courses to other public high schools and the eligibility of courses to meet college entrance requirements. Courses offered by the charter school that are accredited by the Western Association of Schools and Colleges may be considered transferable and courses approved by the University of California or the California State University as creditable under the A to G admissions criteria may be considered to meet college entrance requirements.
(B)The measurable pupil outcomes identified for use by the charter school. Pupil outcomes, for purposes of this part, means the extent to which all pupils of the charter school demonstrate that they have attained the skills, knowledge, and attitudes specified as goals in the charter schools educational program. Pupil outcomes shall include outcomes that address increases in pupil academic achievement both schoolwide and for all groups of pupils served by the charter school, as that term is defined in subparagraph (B) of paragraph (3) of subdivision (a) of Section 47607. The pupil outcomes shall align with the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school.
(C)The method by which pupil progress in meeting those pupil outcomes is to be measured. To the extent practicable, the method for measuring pupil outcomes for state priorities shall be consistent with the way information is reported on a school accountability report card.
(D)(i)The governance structure of the charter school, including, but not limited to, the process to be followed by the charter school to ensure parental involvement.
(ii)If the charter school elects to operate as, or be operated by, a nonprofit public benefit corporation pursuant to Section 47604, the names and background information for all persons whom the petitioner nominates to serve on the board of directors of that nonprofit public benefit corporation pursuant to subdivision (c) of Section 47604.
(E)The qualifications to be met by individuals to be employed by the charter school.
(F)The procedures that the charter school will follow to ensure the health and safety of pupils and staff. These procedures shall include the requirement that each employee of the charter school furnish the charter school with a criminal record summary as described in Section 44237.
(G)The means by which the charter school will achieve a racial and ethnic balance among its pupils that is reflective of the general population residing within the territorial jurisdiction of the school district to which the charter petition is submitted.
(H)Admission requirements, if applicable.
(I)The manner in which annual, independent financial audits shall be conducted, which shall employ generally accepted accounting principles, and the manner in which audit exceptions and deficiencies shall be resolved to the satisfaction of the chartering authority.
(J)The procedures by which pupils can be suspended or expelled.
(K)The manner by which staff members of the charter schools will be covered by the State Teachers Retirement System, the Public Employees Retirement System, or federal social security.
(L)The public school attendance alternatives for pupils residing within the school district who choose not to attend charter schools.
(M)A description of the rights of an employee of the school district upon leaving the employment of the school district to work in a charter school, and of any rights of return to the school district after employment at a charter school.
(N)The procedures to be followed by the charter school and the entity granting the charter to resolve disputes relating to provisions of the charter.
(O)A declaration of whether or not the charter school shall be deemed the exclusive public school employer of the employees of the charter school for purposes of Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code.
(P)A description of the procedures to be used if the charter school closes. The procedures shall ensure a final audit of the charter school to determine the disposition of all assets and liabilities of the charter school, including plans for disposing of any net assets and for the maintenance and transfer of pupil records.
(c)(1)Charter schools shall meet all statewide standards and conduct the pupil assessments required pursuant to Sections 60605 and 60851 and any other statewide standards authorized in statute or pupil assessments applicable to pupils in noncharter public schools.
(2)Charter schools shall, on a regular basis, consult with their parents, legal guardians, and teachers regarding the charter schools educational programs.
(d)(1)In addition to any other requirement imposed under this part, a charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations, shall not charge tuition, and shall not discriminate against a pupil on the basis of the characteristics listed in Section 220. Except as provided in paragraph (2), admission to a charter school shall not be determined according to the place of residence of the pupil, or of his or her parent or legal guardian, within this state, except that an existing public school converting partially or entirely to a charter school under this part shall adopt and maintain a policy giving admission preference to pupils who reside within the former attendance area of that public school.
(2)(A)A charter school shall admit all pupils who wish to attend the charter school.
(B)If the number of pupils who wish to attend the charter school exceeds the charter schools capacity, attendance, except for existing pupils of the charter school, shall be determined by a public random drawing. Preference shall be extended to pupils currently attending the charter school and pupils who reside in the school district except as provided for in Section 47614.5. Other preferences may be permitted by the chartering authority on an individual school basis and only if consistent with the law.
(C)In the event of a drawing, the chartering authority shall make reasonable efforts to accommodate the growth of the charter school and in no event shall take any action to impede the charter school from expanding enrollment to meet pupil demand.
(3)If a pupil is expelled or leaves the charter school without graduating or completing the school year for any reason, the charter school shall notify the superintendent of the school district of the pupils last known address within 30 days, and shall, upon request, provide that school district with a copy of the cumulative record of the pupil, including a transcript of grades or report card, and health information. This paragraph applies only to pupils subject to compulsory full-time education pursuant to Section 48200.
(e)The governing board of a school district shall not require an employee of the school district to be employed in a charter school.
(f)The governing board of a school district shall not require a pupil enrolled in the school district to attend a charter school.
(g)The governing board of a school district shall require that the petitioner or petitioners provide information regarding the proposed operation and potential effects of the charter school, including, but not limited to, the facilities to be used by the charter school, the manner in which administrative services of the charter school are to be provided, and potential civil liability effects, if any, upon the charter school and upon the school district. The description of the facilities to be used by the charter school shall specify where the charter school intends to locate. The petitioner or petitioners also shall be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cashflow and financial projections for the first three years of operation.
(h)In reviewing petitions for the establishment of charter schools within the school district, the governing board of the school district shall give preference to petitions that demonstrate the capability to provide comprehensive learning experiences to pupils identified by the petitioner or petitioners as academically low achieving pursuant to the standards established by the department under Section 54032, as it read before July 19, 2006.
(i)Upon the approval of the petition by the governing board of the school district, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the applicable county superintendent of schools, the department, and the state board.
(j)(1)If the governing board of a school district denies a petition, the petitioner may elect to submit the petition for the establishment of a charter school to the county board of education. The county board of education shall review the petition pursuant to subdivision (b). If the petitioner elects to submit a petition for establishment of a charter school to the county board of education and the county board of education denies the petition, the petitioner may file a petition for establishment of a charter school with the state board, and the state board may approve the petition, in accordance with subdivision (b). A charter school that receives approval of its petition from a county board of education or from the state board on appeal shall be subject to the same requirements concerning geographic location to which it would otherwise be subject if it received approval from the entity to which it originally submitted its petition. A charter petition that is submitted to either a county board of education or to the state board shall meet all otherwise applicable petition requirements, including the identification of the proposed site or sites where the charter school will operate.
(2)In assuming its role as a chartering agency, the state board shall develop criteria to be used for the review and approval of charter school petitions presented to the state board. The criteria shall address all elements required for charter approval, as identified in subdivision (b), and shall define reasonably comprehensive, as used in paragraph (5) of subdivision (b), in a way that is consistent with the intent of this part. Upon satisfactory completion of the criteria, the state board shall adopt the criteria on or before June 30, 2001.
(3)A charter school for which a charter is granted by either the county board of education or the state board based on an appeal pursuant to this subdivision shall qualify fully as a charter school for all funding and other purposes of this part.
(4)If either the county board of education or the state board fails to act on a petition within 120 days of receipt, the decision of the governing board of the school district to deny the petition shall be subject to judicial review.
(5)The state board shall adopt regulations implementing this subdivision.
(6)Upon the approval of the petition by the county board of education, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the department and the state board.
(k)(1)The state board may, by mutual agreement, designate its supervisorial and oversight responsibilities for a charter school approved by the state board to any local educational agency in the county in which the charter school is located or to the governing board of the school district that first denied the petition.
(2)The designated local educational agency shall have all monitoring and supervising authority of a chartering agency, including, but not limited to, powers and duties set forth in Section 47607, except the power of revocation, which shall remain with the state board.
(3)A charter school that is granted its charter through an appeal to the state board and elects to seek renewal of its charter shall, before expiration of the charter, submit its petition for renewal to the governing board of the school district that initially denied the charter. If the governing board of the school district denies the charter schools petition for renewal, the charter school may petition the state board for renewal of its charter.
(l)Teachers in charter schools shall hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a teacher in other public schools would be required to hold. These documents shall be maintained on file at the charter school and are subject to periodic inspection by the chartering authority. It is the intent of the Legislature that charter schools be given flexibility with regard to noncore, noncollege preparatory courses.
(m)A charter school shall transmit a copy of its annual, independent financial audit report for the preceding fiscal year, as described in subparagraph (I) of paragraph (5) of subdivision (b), to its chartering entity, the Controller, the county superintendent of schools of the county in which the charter school is sited, unless the county board of education of the county in which the charter school is sited is the chartering entity, and the department by December 15 of each year. This subdivision does not apply if the audit of the charter school is encompassed in the audit of the chartering entity pursuant to Section 41020.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)For a charter school that elects to operate pursuant to this section, and that submits a charter petition, charter renewal, or material revision application on or after January 1, 2016, all of the following shall apply:
(1)The initial chartering authority shall appoint a majority of the members of the board of directors of the nonprofit public benefit corporation from persons publicly nominated in the charter petition, charter renewal, or material revision application. The number of persons nominated shall be twice the total number of members that comprise the board of directors. The majority calculation required by this subdivision shall not include the representative appointed pursuant to subdivision (b).
(2)The initial chartering authority, during the term of the charter, shall ensure that a majority of the members of the board of directors of the nonprofit public benefit corporation are members appointed pursuant to paragraph (1). In the event that a member appointed pursuant to paragraph (1) no longer serves on the board of directors, for reasons including, but not limited to, death, disability, removal, or resignation, the initial chartering authority shall appoint a new member from persons nominated by the nonprofit public benefit corporation at the time the vacancy occurs, consistent with paragraph (1) and by submitting a material revision application.
(3)Nothing in this subdivision limits or supersedes the ability of a charter school operated pursuant to this section to either use an election process or other community involvement process to select nominees for the board of directors of the nonprofit public benefit corporation for consideration by the initial chartering authority or to nominate persons for positions on the board of directors of the nonprofit public benefit corporation by using specified eligibility criteria. It shall be the policy of the state to encourage and to promote parental, educator, and community participation in in, and geographic and ethnic diversity in, the governance of a charter school.
(4)A member of the board of directors of the nonprofit public benefit corporation is subject to removal from his or her board position pursuant to Article 3 (commencing with Section 3060) of Chapter 7 of Division 4 of Title 1 of the Government Code and as otherwise provided by law.
(d)A charter school shall not operate as, or be operated by, a for-profit corporation.
(e)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
SEC. 2.Section 47605 of the Education Code is amended to read:47605.(a)(1)Except as set forth in paragraph (2), a petition for the establishment of a charter school within a school district may be circulated by one or more persons seeking to establish the charter school. A petition for the establishment of a charter school shall identify a single charter school that will operate within the geographic boundaries of that school district. A charter school may propose to operate at multiple sites within the school district, as long as each location is identified in the charter school petition. The petition may be submitted to the governing board of the school district for review after either of the following conditions is met:
(A)The petition is signed by a number of parents or legal guardians of pupils that is equivalent to at least one-half of the number of pupils that the charter school estimates will enroll in the charter school for its first year of operation.
(B)The petition is signed by a number of teachers that is equivalent to at least one-half of the number of teachers that the charter school estimates will be employed at the charter school during its first year of operation.
(2)A petition that proposes to convert an existing public school to a charter school that would not be eligible for a loan pursuant to subdivision (c) of Section 41365 may be circulated by one or more persons seeking to establish the charter school. The petition may be submitted to the governing board of the school district for review after the petition is signed by not less than 50 percent of the permanent status teachers currently employed at the public school to be converted.
(3)A petition shall include a prominent statement that a signature on the petition means that the parent or legal guardian is meaningfully interested in having his or her child or ward attend the charter school, or in the case of a teachers signature, means that the teacher is meaningfully interested in teaching at the charter school. The proposed charter shall be attached to the petition.
(4)After receiving approval of its petition, a charter school that proposes to establish operations at one or more additional sites shall request a material revision to its charter and shall notify the authority that granted its charter of those additional locations. The authority that granted its charter shall consider whether to approve those additional locations at an open, public meeting. If the additional locations are approved, they shall be a material revision to the charter schools charter.
(5)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 school district, 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:
(A)The charter 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 charter school chooses to locate.
(B)The site is needed for temporary use during a construction or expansion project.
(6)Commencing January 1, 2003, a petition to establish a charter school shall not be approved to serve pupils in a grade level that is not served by the school district of the governing board considering the petition, unless the petition proposes to serve pupils in all of the grade levels served by that school district.
(b)No later than 30 days after receiving a petition, in accordance with subdivision (a), the governing board of the school district shall hold a public hearing on the provisions of the charter, at which time the governing board of the school district shall consider the level of support for the petition by teachers employed by the school district, other employees of the school district, and parents. Following review of the petition and the public hearing, the governing board of the school district shall either grant or deny the charter within 60 days of receipt of the petition, provided, however, that the date may be extended by an additional 30 days if both parties agree to the extension. In reviewing petitions for the establishment of charter schools pursuant to this section, the chartering authority shall be guided by the intent of the Legislature that charter schools are and should become an integral part of the California educational system and that the establishment of charter schools should be encouraged. The governing board of the school district shall grant a charter for the operation of a charter school under this part if it is satisfied that granting the charter is consistent with sound educational practice. The governing board of the school district shall not deny a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, setting forth specific facts to support one or more of the following findings:
(1)The charter school presents an unsound educational program for the pupils to be enrolled in the charter school.
(2)The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition.
(3)The petition does not contain the number of signatures required by subdivision (a).
(4)The petition does not contain an affirmation of each of the conditions described in subdivision (d).
(5)The petition does not contain reasonably comprehensive descriptions of all of the following:
(A)(i)A description of the educational program of the charter school, designed, among other things, to identify those whom the charter school is attempting to educate, what it means to be an educated person in the 21st century, and how learning best occurs. The goals identified in that program shall include the objective of enabling pupils to become self-motivated, competent, and lifelong learners.
(ii)A description, for the charter school, of annual goals, for all pupils and for each subgroup of pupils identified pursuant to Section 52052, to be achieved in the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school, and specific annual actions to achieve those goals. A charter petition may identify additional charter school priorities, the goals for the charter school priorities, and the specific annual actions to achieve those goals.
(iii)If the proposed charter school will serve high school pupils, a description of the manner in which the charter school will inform parents about the transferability of courses to other public high schools and the eligibility of courses to meet college entrance requirements. Courses offered by the charter school that are accredited by the Western Association of Schools and Colleges may be considered transferable and courses approved by the University of California or the California State University as creditable under the A to G admissions criteria may be considered to meet college entrance requirements.
(B)The measurable pupil outcomes identified for use by the charter school. Pupil outcomes, for purposes of this part, means the extent to which all pupils of the charter school demonstrate that they have attained the skills, knowledge, and attitudes specified as goals in the charter schools educational program. Pupil outcomes shall include outcomes that address increases in pupil academic achievement both schoolwide and for all groups of pupils served by the charter school, as that term is defined in subparagraph (B) of paragraph (3) of subdivision (a) of Section 47607. The pupil outcomes shall align with the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school.
(C)The method by which pupil progress in meeting those pupil outcomes is to be measured. To the extent practicable, the method for measuring pupil outcomes for state priorities shall be consistent with the way information is reported on a school accountability report card.
(D)(i)The governance structure of the charter school, including, but not limited to, the process to be followed by the charter school to ensure parental involvement.
(ii)If the charter school elects to operate as, or be operated by, a nonprofit public benefit corporation pursuant to Section 47604, the names and background information for all persons whom the petitioner nominates to serve on the board of directors of that nonprofit public benefit corporation, corporation pursuant to subdivision (c) of Section 47604.
(E)The qualifications to be met by individuals to be employed by the charter school.
(F)The procedures that the charter school will follow to ensure the health and safety of pupils and staff. These procedures shall include the requirement that each employee of the charter school furnish the charter school with a criminal record summary as described in Section 44237.
(G)The means by which the charter school will achieve a racial and ethnic balance among its pupils that is reflective of the general population residing within the territorial jurisdiction of the school district to which the charter petition is submitted.
(H)Admission requirements, if applicable.
(I)The manner in which annual, independent financial audits shall be conducted, which shall employ generally accepted accounting principles, and the manner in which audit exceptions and deficiencies shall be resolved to the satisfaction of the chartering authority.
(J)The procedures by which pupils can be suspended or expelled.
(K)The manner by which staff members of the charter schools will be covered by the State Teachers Retirement System, the Public Employees Retirement System, or federal social security.
(L)The public school attendance alternatives for pupils residing within the school district who choose not to attend charter schools.
(M)A description of the rights of an employee of the school district upon leaving the employment of the school district to work in a charter school, and of any rights of return to the school district after employment at a charter school.
(N)The procedures to be followed by the charter school and the entity granting the charter to resolve disputes relating to provisions of the charter.
(O)A declaration of whether or not the charter school shall be deemed the exclusive public school employer of the employees of the charter school for purposes of Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code.
(P)A description of the procedures to be used if the charter school closes. The procedures shall ensure a final audit of the charter school to determine the disposition of all assets and liabilities of the charter school, including plans for disposing of any net assets and for the maintenance and transfer of pupil records.
(c)(1)Charter schools shall meet all statewide standards and conduct the pupil assessments required pursuant to Sections 60605 and 60851 and any other statewide standards authorized in statute or pupil assessments applicable to pupils in noncharter public schools.
(2)Charter schools shall, on a regular basis, consult with their parents, legal guardians, and teachers regarding the charter schools educational programs.
(d)(1)In addition to any other requirement imposed under this part, a charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations, shall not charge tuition, and shall not discriminate against a pupil on the basis of the characteristics listed in Section 220. Except as provided in paragraph (2), admission to a charter school shall not be determined according to the place of residence of the pupil, or of his or her parent or legal guardian, within this state, except that an existing public school converting partially or entirely to a charter school under this part shall adopt and maintain a policy giving admission preference to pupils who reside within the former attendance area of that public school.
(2)(A)A charter school shall admit all pupils who wish to attend the charter school.
(B)If the number of pupils who wish to attend the charter school exceeds the charter schools capacity, attendance, except for existing pupils of the charter school, shall be determined by a public random drawing. Preference shall be extended to pupils currently attending the charter school and pupils who reside in the school district except as provided for in Section 47614.5. Other preferences may be permitted by the chartering authority on an individual school basis and only if consistent with the law.
(C)In the event of a drawing, the chartering authority shall make reasonable efforts to accommodate the growth of the charter school and in no event shall take any action to impede the charter school from expanding enrollment to meet pupil demand.
(3)If a pupil is expelled or leaves the charter school without graduating or completing the school year for any reason, the charter school shall notify the superintendent of the school district of the pupils last known address within 30 days, and shall, upon request, provide that school district with a copy of the cumulative record of the pupil, including a transcript of grades or report card, and health information. This paragraph applies only to pupils subject to compulsory full-time education pursuant to Section 48200.
(e)The governing board of a school district shall not require an employee of the school district to be employed in a charter school.
(f)The governing board of a school district shall not require a pupil enrolled in the school district to attend a charter school.
(g)The governing board of a school district shall require that the petitioner or petitioners provide information regarding the proposed operation and potential effects of the charter school, including, but not limited to, the facilities to be used by the charter school, the manner in which administrative services of the charter school are to be provided, and potential civil liability effects, if any, upon the charter school and upon the school district. The description of the facilities to be used by the charter school shall specify where the charter school intends to locate. The petitioner or petitioners also shall be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cashflow and financial projections for the first three years of operation.
(h)In reviewing petitions for the establishment of charter schools within the school district, the governing board of the school district shall give preference to petitions that demonstrate the capability to provide comprehensive learning experiences to pupils identified by the petitioner or petitioners as academically low achieving pursuant to the standards established by the department under Section 54032, as it read before July 19, 2006.
(i)Upon the approval of the petition by the governing board of the school district, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the applicable county superintendent of schools, the department, and the state board.
(j)(1)If the governing board of a school district denies a petition, the petitioner may elect to submit the petition for the establishment of a charter school to the county board of education. The county board of education shall review the petition pursuant to subdivision (b). If the petitioner elects to submit a petition for establishment of a charter school to the county board of education and the county board of education denies the petition, the petitioner may file a petition for establishment of a charter school with the state board, and the state board may approve the petition, in accordance with subdivision (b). A charter school that receives approval of its petition from a county board of education or from the state board on appeal shall be subject to the same requirements concerning geographic location to which it would otherwise be subject if it received approval from the entity to which it originally submitted its petition. A charter petition that is submitted to either a county board of education or to the state board shall meet all otherwise applicable petition requirements, including the identification of the proposed site or sites where the charter school will operate.
(2)In assuming its role as a chartering agency, the state board shall develop criteria to be used for the review and approval of charter school petitions presented to the state board. The criteria shall address all elements required for charter approval, as identified in subdivision (b), and shall define reasonably comprehensive, as used in paragraph (5) of subdivision (b), in a way that is consistent with the intent of this part. Upon satisfactory completion of the criteria, the state board shall adopt the criteria on or before June 30, 2001.
(3)A charter school for which a charter is granted by either the county board of education or the state board based on an appeal pursuant to this subdivision shall qualify fully as a charter school for all funding and other purposes of this part.
(4)If either the county board of education or the state board fails to act on a petition within 120 days of receipt, the decision of the governing board of the school district to deny the petition shall be subject to judicial review.
(5)The state board shall adopt regulations implementing this subdivision.
(6)Upon the approval of the petition by the county board of education, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the department and the state board.
(k)(1)The state board may, by mutual agreement, designate its supervisorial and oversight responsibilities for a charter school approved by the state board to any local educational agency in the county in which the charter school is located or to the governing board of the school district that first denied the petition.
(2)The designated local educational agency shall have all monitoring and supervising authority of a chartering agency, including, but not limited to, powers and duties set forth in Section 47607, except the power of revocation, which shall remain with the state board.
(3)A charter school that is granted its charter through an appeal to the state board and elects to seek renewal of its charter shall, before expiration of the charter, submit its petition for renewal to the governing board of the school district that initially denied the charter. If the governing board of the school district denies the charter schools petition for renewal, the charter school may petition the state board for renewal of its charter.
(l)Teachers in charter schools shall hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a teacher in other public schools would be required to hold. These documents shall be maintained on file at the charter school and are subject to periodic inspection by the chartering authority. It is the intent of the Legislature that charter schools be given flexibility with regard to noncore, noncollege preparatory courses.
(m)A charter school shall transmit a copy of its annual, independent financial audit report for the preceding fiscal year, as described in subparagraph (I) of paragraph (5) of subdivision (b), to its chartering entity, the Controller, the county superintendent of schools of the county in which the charter school is sited, unless the county board of education of the county in which the charter school is sited is the chartering entity, and the department by December 15 of each year. This subdivision does not apply if the audit of the charter school is encompassed in the audit of the chartering entity pursuant to Section 41020.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).
(b)The governing board of a school district An authority that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)For a charter school that elects to operate pursuant to this section, and that submits a charter petition, charter renewal, or material revision application on or after January 1, 2016, all of the following shall apply:
(1)The initial chartering authority shall appoint a majority of the members of the board of directors of the nonprofit public benefit corporation from persons publicly nominated in the charter petition, charter renewal, or material revision application. The number of persons nominated shall be twice the total number of members that comprise the board of directors. The majority calculation required by this subdivision shall not include the representative appointed pursuant to subdivision (b).
(2)The initial chartering authority, during the term of the charter, shall ensure that a majority of the members of the board of directors of the nonprofit public benefit corporation are members appointed pursuant to paragraph (1). In the event that a member appointed pursuant to paragraph (1) no longer serves on the board of directors, for reasons including, but not limited to, death, disability, removal, or resignation, the initial chartering authority shall appoint a new member from persons nominated by the nonprofit public benefit corporation at the time the vacancy occurs, consistent with paragraph (1) and by submitting a material revision application.
(3)Nothing in this subdivision limits or supersedes the ability of a charter school operated pursuant to this section to either use an election process or other community involvement process to select nominees for the board of directors of the nonprofit public benefit corporation for consideration by the initial chartering authority or to nominate persons for positions on the board of directors of the nonprofit public benefit corporation by using specified eligibility criteria. It shall be the policy of the state to encourage and to promote parental, educator, and community participation in the governance of a charter school.
(4)A member of the board of directors of the nonprofit public benefit corporation is subject to removal from his or her board position pursuant to Article 3 (commencing with Section 3060) of Chapter 7 of Division 4 of Title 1 of the Government Code and as otherwise provided by law.
(d)A charter school shall not operate as, or be operated by, a for-profit corporation.
(c)
(e)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
SEC. 2.Section 47605 of the Education Code is amended to read:47605.(a)(1)Except as set forth in paragraph (2), a petition for the establishment of a charter school within a school district may be circulated by one or more persons seeking to establish the charter school. A petition for the establishment of a charter school shall identify a single charter school that will operate within the geographic boundaries of that school district. A charter school may propose to operate at multiple sites within the school district, as long as each location is identified in the charter school petition. The petition may be submitted to the governing board of the school district for review after either of the following conditions is met:
(A)The petition is signed by a number of parents or legal guardians of pupils that is equivalent to at least one-half of the number of pupils that the charter school estimates will enroll in the charter school for its first year of operation.
(B)The petition is signed by a number of teachers that is equivalent to at least one-half of the number of teachers that the charter school estimates will be employed at the charter school during its first year of operation.
(2)A petition that proposes to convert an existing public school to a charter school that would not be eligible for a loan pursuant to subdivision (b) (c) of Section 41365 may be circulated by one or more persons seeking to establish the charter school. The petition may be submitted to the governing board of the school district for review after the petition is signed by not less than 50 percent of the permanent status teachers currently employed at the public school to be converted.
(3)A petition shall include a prominent statement that a signature on the petition means that the parent or legal guardian is meaningfully interested in having his or her child or ward attend the charter school, or in the case of a teachers signature, means that the teacher is meaningfully interested in teaching at the charter school. The proposed charter shall be attached to the petition.
(4)After receiving approval of its petition, a charter school that proposes to establish operations at one or more additional sites shall request a material revision to its charter and shall notify the authority that granted its charter of those additional locations. The authority that granted its charter shall consider whether to approve those additional locations at an open, public meeting. If the additional locations are approved, they shall be a material revision to the charter schools charter.
(5)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 school district, 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:
(A)The charter 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 charter school chooses to locate.
(B)The site is needed for temporary use during a construction or expansion project.
(6)Commencing January 1, 2003, a petition to establish a charter school may shall not be approved to serve pupils in a grade level that is not served by the school district of the governing board considering the petition, unless the petition proposes to serve pupils in all of the grade levels served by that school district.
(b)No later than 30 days after receiving a petition, in accordance with subdivision (a), the governing board of the school district shall hold a public hearing on the provisions of the charter, at which time the governing board of the school district shall consider the level of support for the petition by teachers employed by the school district, other employees of the school district, and parents. Following review of the petition and the public hearing, the governing board of the school district shall either grant or deny the charter within 60 days of receipt of the petition, provided, however, that the date may be extended by an additional 30 days if both parties agree to the extension. In reviewing petitions for the establishment of charter schools pursuant to this section, the chartering authority shall be guided by the intent of the Legislature that charter schools are and should become an integral part of the California educational system and that the establishment of charter schools should be encouraged. The governing board of the school district shall grant a charter for the operation of a charter school under this part if it is satisfied that granting the charter is consistent with sound educational practice. The governing board of the school district shall not deny a petition for the establishment of a charter school unless it makes written factual findings, specific to the particular petition, setting forth specific facts to support one or more of the following findings:
(1)The charter school presents an unsound educational program for the pupils to be enrolled in the charter school.
(2)The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition.
(3)The petition does not contain the number of signatures required by subdivision (a).
(4)The petition does not contain an affirmation of each of the conditions described in subdivision (d).
(5)The petition does not contain reasonably comprehensive descriptions of all of the following:
(A)(i)A description of the educational program of the charter school, designed, among other things, to identify those whom the charter school is attempting to educate, what it means to be an educated person in the 21st century, and how learning best occurs. The goals identified in that program shall include the objective of enabling pupils to become self-motivated, competent, and lifelong learners.
(ii)A description, for the charter school, of annual goals, for all pupils and for each subgroup of pupils identified pursuant to Section 52052, to be achieved in the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school, and specific annual actions to achieve those goals. A charter petition may identify additional charter school priorities, the goals for the charter school priorities, and the specific annual actions to achieve those goals.
(iii)If the proposed charter school will serve high school pupils, a description of the manner in which the charter school will inform parents about the transferability of courses to other public high schools and the eligibility of courses to meet college entrance requirements. Courses offered by the charter school that are accredited by the Western Association of Schools and Colleges may be considered transferable and courses approved by the University of California or the California State University as creditable under the A to G admissions criteria may be considered to meet college entrance requirements.
(B)The measurable pupil outcomes identified for use by the charter school. Pupil outcomes, for purposes of this part, means the extent to which all pupils of the charter school demonstrate that they have attained the skills, knowledge, and attitudes specified as goals in the charter schools educational program. Pupil outcomes shall include outcomes that address increases in pupil academic achievement both schoolwide and for all groups of pupils served by the charter school, as that term is defined in subparagraph (B) of paragraph (3) of subdivision (a) of Section 47607. The pupil outcomes shall align with the state priorities, as described in subdivision (d) of Section 52060, that apply for the grade levels served, or the nature of the program operated, by the charter school.
(C)The method by which pupil progress in meeting those pupil outcomes is to be measured. To the extent practicable, the method for measuring pupil outcomes for state priorities shall be consistent with the way information is reported on a school accountability report card.
(D)(i)The governance structure of the charter school, including, but not limited to, the process to be followed by the charter school to ensure parental involvement.
(ii)If the charter school elects to operate as, or be operated by, a nonprofit public benefit corporation pursuant to Section 47604, the names and background information for all persons whom the petitioner nominates to serve on the board of directors of that nonprofit public benefit corporation, pursuant to subdivision (c) of Section 47604.
(E)The qualifications to be met by individuals to be employed by the charter school.
(F)The procedures that the charter school will follow to ensure the health and safety of pupils and staff. These procedures shall include the requirement that each employee of the charter school furnish the charter school with a criminal record summary as described in Section 44237.
(G)The means by which the charter school will achieve a racial and ethnic balance among its pupils that is reflective of the general population residing within the territorial jurisdiction of the school district to which the charter petition is submitted.
(H)Admission requirements, if applicable.
(I)The manner in which annual, independent financial audits shall be conducted, which shall employ generally accepted accounting principles, and the manner in which audit exceptions and deficiencies shall be resolved to the satisfaction of the chartering authority.
(J)The procedures by which pupils can be suspended or expelled.
(K)The manner by which staff members of the charter schools will be covered by the State Teachers Retirement System, the Public Employees Retirement System, or federal social security.
(L)The public school attendance alternatives for pupils residing within the school district who choose not to attend charter schools.
(M)A description of the rights of any an employee of the school district upon leaving the employment of the school district to work in a charter school, and of any rights of return to the school district after employment at a charter school.
(N)The procedures to be followed by the charter school and the entity granting the charter to resolve disputes relating to provisions of the charter.
(O)A declaration of whether or not the charter school shall be deemed the exclusive public school employer of the employees of the charter school for purposes of Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code.
(P)A description of the procedures to be used if the charter school closes. The procedures shall ensure a final audit of the charter school to determine the disposition of all assets and liabilities of the charter school, including plans for disposing of any net assets and for the maintenance and transfer of pupil records.
(c)(1)Charter schools shall meet all statewide standards and conduct the pupil assessments required pursuant to Sections 60605 and 60851 and any other statewide standards authorized in statute or pupil assessments applicable to pupils in noncharter public schools.
(2)Charter schools shall, on a regular basis, consult with their parents, legal guardians, and teachers regarding the charter schools educational programs.
(d)(1)In addition to any other requirement imposed under this part, a charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations, shall not charge tuition, and shall not discriminate against any a pupil on the basis of the characteristics listed in Section 220. Except as provided in paragraph (2), admission to a charter school shall not be determined according to the place of residence of the pupil, or of his or her parent or legal guardian, within this state, except that an existing public school converting partially or entirely to a charter school under this part shall adopt and maintain a policy giving admission preference to pupils who reside within the former attendance area of that public school.
(2)(A)A charter school shall admit all pupils who wish to attend the charter school.
(B)If the number of pupils who wish to attend the charter school exceeds the charter schools capacity, attendance, except for existing pupils of the charter school, shall be determined by a public random drawing. Preference shall be extended to pupils currently attending the charter school and pupils who reside in the school district except as provided for in Section 47614.5. Other preferences may be permitted by the chartering authority on an individual school basis and only if consistent with the law.
(C)In the event of a drawing, the chartering authority shall make reasonable efforts to accommodate the growth of the charter school and in no event shall take any action to impede the charter school from expanding enrollment to meet pupil demand.
(3)If a pupil is expelled or leaves the charter school without graduating or completing the school year for any reason, the charter school shall notify the superintendent of the school district of the pupils last known address within 30 days, and shall, upon request, provide that school district with a copy of the cumulative record of the pupil, including a transcript of grades or report card, and health information. This paragraph applies only to pupils subject to compulsory full-time education pursuant to Section 48200.
(e)The governing board of a school district shall not require any an employee of the school district to be employed in a charter school.
(f)The governing board of a school district shall not require any a pupil enrolled in the school district to attend a charter school.
(g)The governing board of a school district shall require that the petitioner or petitioners provide information regarding the proposed operation and potential effects of the charter school, including, but not limited to, the facilities to be used by the charter school, the manner in which administrative services of the charter school are to be provided, and potential civil liability effects, if any, upon the charter school and upon the school district. The description of the facilities to be used by the charter school shall specify where the charter school intends to locate. The petitioner or petitioners also shall also be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cashflow and financial projections for the first three years of operation.
(h)In reviewing petitions for the establishment of charter schools within the school district, the governing board of the school district shall give preference to petitions that demonstrate the capability to provide comprehensive learning experiences to pupils identified by the petitioner or petitioners as academically low achieving pursuant to the standards established by the department under Section 54032, as it read before July 19, 2006.
(i)Upon the approval of the petition by the governing board of the school district, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition, to the applicable county superintendent of schools, the department, and the state board.
(j)(1)If the governing board of a school district denies a petition, the petitioner may elect to submit the petition for the establishment of a charter school to the county board of education. The county board of education shall review the petition pursuant to subdivision (b). If the petitioner elects to submit a petition for establishment of a charter school to the county board of education and the county board of education denies the petition, the petitioner may file a petition for establishment of a charter school with the state board, and the state board may approve the petition, in accordance with subdivision (b). A charter school that receives approval of its petition from a county board of education or from the state board on appeal shall be subject to the same requirements concerning geographic location to which it would otherwise be subject if it received approval from the entity to which it originally submitted its petition. A charter petition that is submitted to either a county board of education or to the state board shall meet all otherwise applicable petition requirements, including the identification of the proposed site or sites where the charter school will operate.
(2)In assuming its role as a chartering agency, the state board shall develop criteria to be used for the review and approval of charter school petitions presented to the state board. The criteria shall address all elements required for charter approval, as identified in subdivision (b) (b), and shall define reasonably comprehensive comprehensive, as used in paragraph (5) of subdivision (b) (b), in a way that is consistent with the intent of this part. Upon satisfactory completion of the criteria, the state board shall adopt the criteria on or before June 30, 2001.
(3)A charter school for which a charter is granted by either the county board of education or the state board based on an appeal pursuant to this subdivision shall qualify fully as a charter school for all funding and other purposes of this part.
(4)If either the county board of education or the state board fails to act on a petition within 120 days of receipt, the decision of the governing board of the school district to deny a the petition shall, thereafter, be subject to judicial review.
(5)The state board shall adopt regulations implementing this subdivision.
(6)Upon the approval of the petition by the county board of education, the petitioner or petitioners shall provide written notice of that approval, including a copy of the petition petition, to the department and the state board.
(k)(1)The state board may, by mutual agreement, designate its supervisorial and oversight responsibilities for a charter school approved by the state board to any local educational agency in the county in which the charter school is located or to the governing board of the school district that first denied the petition.
(2)The designated local educational agency shall have all monitoring and supervising authority of a chartering agency, including, but not limited to, powers and duties set forth in Section 47607, except the power of revocation, which shall remain with the state board.
(3)A charter school that is granted its charter through an appeal to the state board and elects to seek renewal of its charter shall, before expiration of the charter, submit its petition for renewal to the governing board of the school district that initially denied the charter. If the governing board of the school district denies the charter schools petition for renewal, the charter school may petition the state board for renewal of its charter.
(l)Teachers in charter schools shall hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a teacher in other public schools would be required to hold. These documents shall be maintained on file at the charter school and are subject to periodic inspection by the chartering authority. It is the intent of the Legislature that charter schools be given flexibility with regard to noncore, noncollege preparatory courses.
(m)A charter school shall transmit a copy of its annual, independent financial audit report for the preceding fiscal year, as described in subparagraph (I) of paragraph (5) of subdivision (b), to its chartering entity, the Controller, the county superintendent of schools of the county in which the charter school is sited, unless the county board of education of the county in which the charter school is sited is the chartering entity, and the department by December 15 of each year. This subdivision does not apply if the audit of the charter school is encompassed in the audit of the chartering entity pursuant to Section 41020.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Charter schools A charter school may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1) 1 of the Corporations Code).
(b)The governing board of a school district that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
(c)An authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605.
|
Date
|
Status
|
|---|---|
| Jul 1, 2015 | In committee: Set, first hearing. Testimony taken. Further hearing to be set. |
| Jan 15, 2016 | Consideration of Governor's veto stricken from file. |
| Oct 10, 2015 | Vetoed by Governor. |
| Sep 17, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 9, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 45. Noes 29.). |
| Sep 9, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 45. Noes 29. Page 3017.). |
| Sep 9, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 9, 2015 | Assembly Rule 77 suspended. (Ayes 52. Noes 28.) |
| Sep 9, 2015 | Assembly Rule 77 suspended. (Ayes 52. Noes 28. Page 2990.) |
| Sep 9, 2015 | Assembly Rule 77 suspended. |
| Sep 8, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 22. Noes 15. Page 2567.). |
| Sep 8, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Sep 8, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 10 pursuant to Assembly Rule 77. |
| Aug 18, 2015 | Read second time and amended. Ordered to third reading. |
| Aug 17, 2015 | From committee: Amend, and do pass as amended. (Ayes 6. Noes 3.) (July 15). |
| Jul 6, 2015 | In committee: Hearing postponed by committee. |
| Feb 25, 2015 | Read first time. To print. |
| Jun 18, 2015 | Referred to Com. on ED. |
| Jun 4, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 46. Noes 28. Page 1917.) |
| Jun 4, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 4, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 2, 2015 | Read second time. Ordered to third reading. |
| Jun 1, 2015 | Read second time and amended. Ordered returned to second reading. |
| May 28, 2015 | From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 28). |
| Apr 29, 2015 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 21, 2015 | Re-referred to Com. on APPR. |
| Apr 20, 2015 | Read second time and amended. |
| Apr 16, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 3.) (April 8). |
| Apr 6, 2015 | Re-referred to Com. on ED. |
| Mar 26, 2015 | Referred to Com. on ED. |
| Mar 26, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended. |
| Feb 26, 2015 | From printer. May be heard in committee March 28. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 9, 2015 | AB 787 HERNÁNDEZ Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 8, 2015 | Assembly 3rd Reading AB787 Roger Hernández By Leno | Senate Floor |
Passed |
|
| Jul 15, 2015 | Do pass as amended | Senate Standing Committee on Education |
Passed |
|
| Jun 4, 2015 | AB 787 HERNÁNDEZ Assembly Third Reading | Assembly Floor |
Passed |
|
| May 28, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 8, 2015 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Federation of State, County and Municipal Employees | ** Support | Sep 8, 2015 |
| Association Of California School Administrators | ** Support | Sep 8, 2015 |
| Caliber Schools | ** Against | Apr 8, 2015 |
| California Charter Schools Association | * Indeterminate | Jul 1, 2015 |
| California Connections Academy | * Indeterminate | Jul 1, 2015 |
| California Connections Academy Schools | * Indeterminate | Jul 1, 2015 |
| California Federation Of Teachers | ** Support | Sep 8, 2015 |
| California Labor Federation, Afl-Cio | * Indeterminate | Jul 1, 2015 |
| California Parents for Public Virtual Education | * Indeterminate | Jul 1, 2015 |
| California Professional Firefighters | ** Support | Sep 8, 2015 |
| California School Employees Association | ** Support | Sep 8, 2015 |
| California State PTA | ** Support | Sep 8, 2015 |
| California Teachers Association | ** Support | Sep 8, 2015 |
| California Virtual Academies | * Indeterminate | Jul 1, 2015 |
| Cava High School | * Indeterminate | Jul 1, 2015 |
| Charter School Development Center | * Indeterminate | Jul 1, 2015 |
| Charter Schools Development Center | * Against | Jul 1, 2015 |
| Clayton Valley Charter High School | ** Against | Apr 8, 2015 |
| Connections Academy | * Indeterminate | Jul 1, 2015 |
| Ed Voice | * Indeterminate | Jul 1, 2015 |
| Edvoice | * Against | Jul 1, 2015 |
| Gateway Community Charters | * Indeterminate | Jul 1, 2015 |
| Golden Valley Charter School | * Against | Apr 8, 2015 |
| Golden Valley School | * Indeterminate | Jul 1, 2015 |
| he California Virtual School Academies | * Indeterminate | Jul 1, 2015 |
| Heritage Peak Charter School | * Indeterminate | Jul 1, 2015 |
| K12, Inc. | * Against | Apr 8, 2015 |
| KIPP Academy of Innovation | ** Against | Apr 8, 2015 |
| KIPP Bay Area Schools | ** Against | Apr 8, 2015 |
| KIPP Empower Academy | ** Against | Apr 8, 2015 |
| KIPP Iluminar Academy | ** Against | Apr 8, 2015 |
| KIPP Vida Preparatory Academy | ** Against | Apr 8, 2015 |
| Laborers' International Union Of North America Local 777 | * Indeterminate | Jul 1, 2015 |
| Lighthouse Charter School | * Indeterminate | Jul 1, 2015 |
| Los Angeles Unified School District | * Indeterminate | Jul 1, 2015 |
| MP3 Charter School | * Against | Apr 8, 2015 |
| Natomas Pacific Pathways Prep | * Indeterminate | Jul 1, 2015 |
| Pacific Charter Institute | * Against | Apr 8, 2015 |
| Palisades Charter High School | * Against | Apr 8, 2015 |
| Parent | * Indeterminate | Jul 1, 2015 |
| Partnerships to Uplift Communities | * Against | Apr 8, 2015 |
| SIATech Drop Out Recovery Public High School | * Against | Apr 8, 2015 |
| Solorias College Preparatory Charter School | * Against | Apr 8, 2015 |
| u California Parents for Public Virtual Education | ** Against | Jul 1, 2015 |
GOVERNOR'S VETO
AB 787
(Roger Hernández)
As Enrolled September 11, 2015
2/3 vote
ASSEMBLY: |
46-28 |
(June 4, 2015) |
SENATE: |
22-15 |
(September 8, 2015) |
ASSEMBLY: |
45-29 |
(September 9, 2015) |
|
|
|
Original Committee Reference: ED.
SUMMARY: Prohibits a charter school from operating as, or being operated by, a for-profit corporation.
The Senate amendments specify that the provisions of the bill shall take effect on January 1, 2017.
EXISTING LAW authorizes charter schools to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law. Specifies the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. Specifies an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law. (Education Code Section 47604)
FISCAL EFFECT: Unknown. This bill has been keyed non-fiscal by the Legislative Counsel.
COMMENTS: This bill prohibits charter schools from being operated by a for-profit corporation. According to the California Charter School Association, there are currently six for-profit charter schools operating in California.
Current law authorizes charter schools to operate as a non-profit corporation, but the Education Code is silent regarding whether charter schools are permitted to operate as a for-profit corporations. Due to the permissive nature of the Education Code, it appears that charter schools are operating as for-profit corporations. Is it appropriate for state tax payer dollars to be appropriated directly to for-profit corporations to operate public schools? If a public school is run as a for-profit corporation, is there a perverse incentive to limit services to students in order to increase corporate profits?
Under this bill, beginning January 1, 2017, a charter school could not "operate as" or be "operated by" a for-profit corporation.
I don't believe the case has been made to eliminate for-profit charter schools in California. Moreover, the somewhat ambiguous terms used in this bill could be interpreted to restrict the ability of non-profit charter schools to continue using for-profit vendors.
For these reasons, I am unable to sign AB 787.
Analysis Prepared by: Chelsea Kelley / ED. / (916) 319-2087 FN: 0002484
AB 787
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 787
(Roger Hernández)
As Amended August 18, 2015
Majority vote
ASSEMBLY: |
46-28 |
(June 4, 2015) |
SENATE: |
22-15 |
(September 8, 2015) |
Original Committee Reference: ED.
SUMMARY: Prohibits a charter school from operating as, or being operated by, a for-profit corporation.
The Senate amendments specify that the provisions of the bill shall take effect on January 1, 2017.
EXISTING LAW authorizes charter schools to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law. Specifies the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. Specifies an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law. (Education Code Section 47604)
FISCAL EFFECT: Unknown. This bill has been keyed non-fiscal by the Legislative Counsel.
COMMENTS: This bill prohibits charter schools from being operated by a for-profit corporation. According to the California Charter School Association, there are currently six for-profit charter schools operating in California.
Current law authorizes charter schools to operate as a non-profit corporation, but the Education Code is silent regarding whether charter schools are permitted to operate as a for-profit corporations. Due to the permissive nature of the Education Code, it appears that charter schools are operating as for-profit corporations. Is it appropriate for state tax payer dollars to be appropriated directly to for-profit corporations to operate public schools? If a public school is run as a for-profit corporation, is there a perverse incentive to limit services to students in order to increase corporate profits?
Analysis Prepared by:Chelsea Kelley / ED. / (916) 319-2087 FN: 0002097
AB 787
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 787
Author: Roger Hernández (D), et al.
Amended: 8/18/15 in Senate
SENATE EDUCATION COMMITTEE: 6-3, 7/15/15
AYES: Block, Hancock, Leyva, Mendoza, Monning, Pan
NOES: Liu, Runner, Vidak
ASSEMBLY FLOOR: 46-28, 6/4/15 - See last page for vote
SUBJECT: Charter schools: operation: nonprofit public benefit corporations
SOURCE: California Federation of Teachers
California Labor Federation
California School Employees Association
California Teachers Association
DIGEST: This bill prohibits a charter school from operating as, or being operated by, a for-profit corporation.
Existing law:
Authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law.
Specifies that the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
Specifies that an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Education Code Sections 47604.32 and 47605(m). (Education Code § 47604)
This bill prohibits charter schools from being operated by a for-profit corporation beginning on January 1, 2017.
Comments
Need for the bill. According to the author’s office, “the for-profit model is unsustainable for the long-term development of California’s public education system. As a for-profit corporation their first priority is their shareholders, not children or the public. These schools often direct funds out of state to their national entities, and this structure takes taxpayer dollars out of state and away from the classroom. In the 21st century, online education will only continue to grow. It is crucial that we protect all of our public school students, whether their classroom is physical or virtual.”
Appropriate use of taxpayer dollars? While current law explicitly authorizes a charter school to operate as a nonprofit corporation, statute is silent on whether a charter school is permitted to operate as a for-profit corporation. Because of the permissive nature of the Education Code and absent a clear prohibition, several charter schools are currently operating as for-profit corporations. The California Charter School Association indicates there are six for-profit charter schools in California. According to the author’s office, “California Virtual Academies (CAVA) is California’s largest provider of online public K-12 education and a public charter school network that exists entirely online. Students take classes from home, communicating with teachers via computer. CAVAs primary vendor and manager is K12, Inc., a for-profit corporation.” The author’s office further indicates that “K12, Inc. is the largest for-profit operator of virtual schools nationwide and paid almost $11 million to its top six executives in 2011-12, while the average CAVA teacher salary was $36,150, about half the average teacher pay in California.” Does this model provide a perverse incentive for these charter schools to limit services for students in order to increase profits?
Impact on students. Notwithstanding the issues regarding the appropriateness of using taxpayer dollars for charter schools operating as a for-profit corporation, it does not appear that this bill contemplates what would happen to students attending these schools if this bill were to become law. Presumably, the operating entities could restructure or reorganize themselves as nonprofit corporations to comply. To the extent that these entities are unable to do so, the charter schools may be required to shut down. Additionally, some students have unique learning needs which could present logistical challenges in finding the appropriate placement in a new school.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
California Federation of Teachers (co-source)
California Labor Federation (co-source)
California School Employees Association (co-source)
California Teachers Association (co-source)
American Federation of State, County and Municipal Employees
Association of California School Administrators
California Professional Firefighters
California State PTA
Service Employees International Union
OPPOSITION: (Verified 8/17/15)
California Charter Schools Association
California Parents for Public Virtual Education
Charter Schools Development Center
EdVoice
K-12, Inc.
ARGUMENTS IN SUPPORT: Supporters of this bill indicate that prohibiting charter schools from being run by for-profit corporations would protect California taxpayers by ensuring their money is not being taken out of the state and away from classrooms.
ARGUMENTS IN OPPOSITION: Opponents of this bill argue that whether or not the school is “for-profit” should not be the driver, and rather, we should be looking at what the program has done to help students attain academic proficiency in an alternative setting. They indicate this bill prohibits successful arrangements with online programs that have provided students with successful options.
ASSEMBLY FLOOR: 46-28, 6/4/15
AYES: Alejo, Bonilla, Bonta, Burke, Calderon, Campos, Chiu, Chu, Cooper, Dababneh, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang, Chávez, Cooley, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Bloom, Brown, Chau, Dahle, Daly, Perea
Prepared by: Lenin Del Castillo / ED. / (916) 651-4105
8/19/15 20:26:59
**** END ****
AB 787 (Roger Hernández) Page 3 of 3
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 787
Author: |
Roger Hernández |
||
Version: |
June 1, 2015 Hearing Date: July 1, 2015 |
||
Urgency: |
No |
Fiscal: |
No |
Consultant: |
Lenin Del Castillo |
||
Subject: Charter schools: operation: nonprofit public benefit corporations
SUMMARY
This bill prohibits a charter school from operating as, or being operated by, a for-profit corporation.
BACKGROUND
Existing law:
Authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law.
Specifies that the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
Specifies that an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Education Code Sections 47604.32 and 47605(m). (Education Code § 47604)
ANALYSIS
This bill prohibits charter schools from being operated by a for-profit corporation.
STAFF COMMENTS
Need for the bill. According to the author’s office, “the for-profit model is unsustainable for the long-term development of California’s public education system. As a for-profit corporation their first priority is their shareholders, not children or the public. These schools often direct funds out of state to their national entities, and this structure takes taxpayer dollars out of state and away from the classroom. In the 21st century, online education will only continue to grow. It is crucial that we protect all of our public school students, whether their classroom is physical or virtual.”
Appropriate use of taxpayer dollars? While current law explicitly authorizes a charter school to operate as a nonprofit corporation, statute is silent on whether a charter school is permitted to operate as a for-profit corporation. Because of the permissive nature of the Education Code and absent a clear prohibition, several charter schools are currently operating as for-profit corporations. The California Charter School Association indicates there are six for-profit charter schools in California. According to the author’s office, “California Virtual Academies (CAVA) is California’s largest provider of online public K-12 education and a public charter school network that exists entirely online. Students take classes from home, communicating with teachers via computer. CAVAs primary vendor and manager is K12, Inc., a for-profit corporation.” The author’s office further indicates that “K12, Inc. is the largest for-profit operator of virtual schools nationwide and paid almost $11 million to its top six executives in 2011-12, while the average CAVA teacher salary was $36,150, about half the average teacher pay in California.” The Committee may wish to consider whether it is an appropriate use of state taxpayer dollars for-profit corporations to operate public schools. Additionally, does this model provide a perverse incentive for these charter schools to limit services for students in order to increase profits?
Impact on students. Notwithstanding the issues regarding the appropriateness of using taxpayer dollars for charter schools operating as a for-profit corporation, it does not appear that the bill contemplates what would happen to students attending these schools if the bill were to become law. Presumably, the operating entities could restructure or reorganize themselves as nonprofit corporations to comply. To the extent that these entities are unable to do so, would the charter schools be required to immediately shut down? Would there be a transition period for them to find placement in a new school? Some students may have unique learning needs which could present logistical challenges in finding the appropriate placement in a new school. To prevent the potential disruption of educational services provided to students, staff recommends that the bill be amended to become operative beginning January 1, 2017..
Additional clarification may be needed. It is unclear if the bill’s prohibition would extend to contracts that charter schools have in place with for-profit corporations for various operations such as testing companies, test publishers, and providers of instructional materials. Or is the bill limited only to the for-profit entity that owns or manages the day-to-day operations of the charter school? To prevent differing practical interpretations, the author may wish to consider clarifying which entities would be subject to the bill’s prohibition.
Arguments in support. Supporters of the bill indicate that prohibiting charter schools from being run by for-profit corporations would protect California taxpayers by ensuring their money is not being taken out of the state and away from classrooms. The bill would help charter schools focus on students and not profits or pleasing investors.
Arguments in opposition. Opponents of the bill argue that whether or not the school is “for-profit” should not be the driver, and rather, we should be looking at what the program has done to help students attain academic proficiency in an alternative setting. They indicate the bill would prohibit successful arrangements with online programs that have provided students with successful options.
SUPPORT
American Federation of State, County and Municipal Employees
Association of California School Administrators
California Federation of Teachers (co-sponsor)
California Labor Federation (co-sponsor)
California Professional Firefighters
California School Employees Association (co-sponsor)
California State PTA
California Teachers Association (co-sponsor)
Service Employees International Union
OPPOSITION
California Parents for Public Virtual Education
Charter Schools Development Center
EdVoice
K-12, Inc.
Letters from individuals
-- END --
AB 787
Page 1
ASSEMBLY THIRD READING
AB 787
(Roger Hernández)
As Amended June 1, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Education |
4-3 |
O'Donnell, McCarty, Santiago, Thurmond |
Chávez, Kim, Weber |
Appropriations |
11-0 |
Gomez, Bonta, Calderon, Daly, Eggman, Eduardo Garcia, Gordon, Holden, Quirk, Rendon, Wood |
|
SUMMARY: Prohibits a charter school from operating as, or being operated by, a for-profit corporation.
EXISTING LAW authorizes charter schools to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law. Specifies the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. Specifies an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Education Code Sections 47604.32 and 47605(m). (Education Code Section 47604)
FISCAL EFFECT: According to the Assembly Appropriations Committee, unknown, likely minor costs.
COMMENTS: This bill prohibits charter schools from being operated by a for-profit corporation. According to the California Charter School Association, there are currently six for-profit charter schools operating in California.
Current law authorizes charter schools to operate as a non-profit corporation, but the Education Code is silent regarding whether charter schools are permitted to operate as a for-profit corporations. Due to the permissive nature of the Education Code, it appears that charter schools are operating as for-profit corporations. Is it appropriate for state tax payer dollars to be appropriated directly to for-profit corporations to operate public schools? If a public school is run as a for-profit corporation, is there a perverse incentive to limit services to students in order to increase corporate profits?
Analysis Prepared by: Chelsea Kelley / ED. / (916) 319-2087 FN: 0000746
AB 787
Page 2
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 787
(Roger Hernández) – As Amended April 20, 2015
Policy Committee: |
Education |
Vote: |
4 - 3 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY: This bill requires a charter school operated as a nonprofit to nominate, in the charter petition, twice the number of people needed for their board of directors; requires the chartering authority to appoint a majority of the members of the board of directors for such charter schools from the nomination list; and, prohibits a charter school from operating as a for-profit corporation. Specifically, this bill:
Requires, for a charter school that elects to operate as a nonprofit benefit corporation, and that submits a charter petition, charter renewal, or material revision application on or after January 1, 2016, all of the following to apply:
Requires the initial chartering authority of a charter school that elects to operate as a nonprofit public benefit corporation to appoint a majority of the members of the board of directors of the nonprofit public benefit corporation from persons publicly nominated in the charter petition, charter renewal, or material revision application. The number of persons nominated shall be twice the total number of members that comprise the board of directors.
Authorizes the chartering authority to one member on the board of directors, though the majority calculation required shall not include the representative appointed by the chartering authority.
Authorizes the charter school to use an election process or community involvement process to select nominees for the board.
Prohibits a charter school from operating as, or operated by, a for-profit corporation.
Specifies that a charter petition shall contain a reasonably comprehensive description of, if the charter school elects to operate as, or be operated by, a nonprofit public benefit corporation the names and background information for all persons whom the petitioner nominates to serve on the board of directors of that nonprofit public benefit corporation.
FISCAL EFFECT:
Proposition 98/GF state reimbursable mandated costs, potentially in the range of $700,000 to $2 million, for school districts and county offices of education (charter authorizers) to review and appoint board members. This assumes review of five to 10 board members for each of the approximately 800 charter schools currently operating as nonprofit public benefit corporations.
Ongoing General Fund administrative costs of approximately $400,000 for the State Board of Education (SBE) to serve as a representative on the board of directors of each nonprofit public benefit charter school authorized by the board and to review candidates for appointment to the charter schools boards.
COMMENTS:
Purpose. According to the California Teachers Association, sponsor of this bill, governance of charter schools by nonprofit public benefit corporations is causing confusion about whether charter school employees are public or private. This bill seeks to clarify that charter school employees are public employees, with the ability to participate in public pension programs, working in schools that can receive public tax dollars, and are covered by the state’s collective bargaining laws that apply to other public education employees.
Opposition. The California Charter School Association Advocates oppose this bill over concerns that the independence of the charter school would be compromised. They are concerned operating under the de facto control of the school board that authorized the charter would reflect the interests of the school district’s central governing board, not the community from which the charter school sprung.
Prior legislation. AB 1531 (Chau) of 2014 was substantially similar to this bill and was held on the Suspense file in this committee.
Analysis Prepared by: Misty Feusahrens / APPR. / (916) 319-2081
AB 787
Page 7
Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
AB 787
(Roger Hernández) – As Amended March 26, 2015
SUBJECT: Charter schools: operation: nonprofit public benefit corporations
SUMMARY: Requires a charter school operated as a nonprofit to nominate, in the charter petition, twice the number of people needed for their board of directors; requires the chartering authority to appoint a majority of the members of the board of directors for such charter schools from the nomination list; and, prohibits a charter school from operating as a for-profit corporation. Specifically, this bill:
Requires that an authority that grants a charter school be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.
Requires, for a charter school that elects to operate as a nonprofit benefit corporation, and that submits a charter petition, charter renewal, or material revision application on or after January 1, 2016, all of the following to apply:
The initial chartering authority shall appoint a majority of the members of the board of directors of the nonprofit public benefit corporation from persons publicly nominated in the charter petition, charter renewal, or material revision application. The number of persons nominated shall be twice the total number of members that comprise the board of directors.
The initial chartering authority, during the term of the charter, shall ensure that a majority of the members of the board of directors of the nonprofit public benefit corporation are members appointed. In the event that a member appointed no longer serves on the board of directors, for reasons including, but not limited to, death, disability, removal, or resignation, the initial chartering authority shall appoint a new member from persons nominated by the nonprofit public benefit corporation at the time the vacancy occurs, and by submitting a material revision application.
Nothing limits or supersedes the ability of a charter school to either use an election process or other community involvement process to select nominees for the board of directors of the nonprofit public benefit corporation for consideration by the initial chartering authority or to nominate persons for positions on the board of directors of the nonprofit public benefit corporation by using specified eligibility criteria. It shall be the policy of the state to encourage and to promote parental, educator, and community participation in the governance of a charter school.
A member of the board of directors of the nonprofit public benefit corporation is subject to removal from his or her board position pursuant to Article 3 (commencing with Section 3060) of Chapter 7 of Division 4 of Title 1 of the Government Code and as otherwise provided by law.
A charter school shall not operate as, or be operated by, a for-profit corporation.
Specifies that a charter petition shall contain a reasonably comprehensive description of, if the charter school elects to operate as, or be operated by, a nonprofit public benefit corporation the names and background information for all persons whom the petitioner nominates to serve on the board of directors of that nonprofit public benefit corporation.
EXISTING LAW:
Authorizes charter schools to elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law. Specifies the governing board of a school district that grants a charter for the establishment of a charter school shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. Specifies an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation is not liable for the debts or obligations of the charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authority has complied with all oversight responsibilities required by law, including, but not limited to, those required by Section 47604.32 and subdivision (m) of Section 47605. (Education Code 47604)
Requires charter school petitions to include a reasonably comprehensive description of the manner by which staff members of the charter schools will be covered by the State Teachers’ Retirement System (CalSTRS), the Public Employees’ Retirement System (CalPERS), or federal social security. (EC 47605 (b)(5)(K))
Specifies that if a charter school chooses to make the CalSTRS Plan available, all employees of the charter school who perform creditable service shall be entitled to have that service covered under the plan’s Defined Benefit Program or Cash Balance Benefit Program, and all provisions of Part 13 (commencing with Section 22000) and Part 14 (commencing with Section 26000) shall apply in the same manner as the provisions apply to other public schools in the school district that granted the charter. If a charter school offers its employees coverage by CalSTRS or the CalPERS, or both, the charter school shall inform all applicants for positions within that charter school of the retirement system options for employees of the charter school. The information shall specifically include whether the charter school makes available to employees coverage under CalSTRS, the CalPERS, or both systems, and that accepting employment in the charter school may exclude the applicant from further coverage in the applicant’s current retirement system, depending on the retirement options offered by the charter of the charter school. (EC 47611)
Requires charter school petitions to include a reasonably comprehensive description of a declaration whether or not the charter school shall be deemed the exclusive public school employer of the employees of the charter school for purposes of the Educational Employment Relations Act (Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code). (EC 47605 (b)(5)(O))
FISCAL EFFECT: Legislative Counsel has keyed this bill as a state-mandated local program. According to the Assembly Appropriations Committee, for a substantially similar bill,
General Fund /Proposition 98 (GF/98) state reimbursable mandated costs in the range of $750,000 to $2.1 million for school districts and county offices of education (charter authorizers) to review and appoint board members. This assumes review of five to 10 board members for each of the 738 charter schools currently operating as nonprofit public benefit corporations. The State Board of Education would also incur GF costs to review board members for at least two statewide public benefit charter schools. Costs would be incurred as each charter petition is renewed, every five years.
The 2012-13 Budget Act created the K-12 Mandate Block Grant. A school district, charter school, or county office of education may choose to receive a per-pupil allocation to conduct existing K-12 mandated activities, including activities related to charter school authorization and oversight. If the Commission on State Mandates determines the activities in this bill to be state mandated activities, these activities could be considered for inclusion in the block grant. Prior to the 2012-13 Fiscal Year, cost claims for mandated activities related to charter school authorization and oversight were approximately $1.9 million GF/98.
COMMENTS: This bill requires governing bodies of charter schools operated as nonprofit corporations to be appointed by the chartering authority. Specifically, the bill requires a majority of the members of these governing bodies to be appointed. Charter schools are required to nominate twice the number of members necessary in their charter petition and the chartering authority shall appoint members to the charter school body from the list of nominated members provided in the petition. This bill addresses two recent issues. First, the bill addresses an argument made by California Virtual Academy (CAVA) before the Public Employment Relations Board (PERB), that they are not a "political subdivision of the state." Second, the bill addresses a recent Internal Revenue System (IRS) proposed regulation and subsequent response by California Public Employees Retirement System (CalPERS) that could potentially exclude charter schools from the retirement system because nonprofit charter schools do not meet the “tests” which qualify the school as a governmental entity. This bill also prohibits charter schools from being operated by a for-profit corporation. According to the California Charter School Association, there are currently six for-profit charter schools operating in California.
National Labor Relations Board & The Chicago Decision: According to the California Teachers Association, "A 2012 decision by the National Labor Relations Board (NLRB) suggests that charter school employees are private employees, subject to the National Labor Relations Act (NLRA). AB 787 seeks to ensure that all of California's charter schools are considered "political subdivisions of the state" subject to the Education Employment Relations Act (EERA) and not the NLRA. The EERA, and the extensive Public Employment Relations Board (PERB) law that has developed under it, reflects the unique context of California's public schools. For example, the scope of bargaining under EERA specifically includes issues like teacher evaluation procedures, and sets forth a duty to consult on curriculum and textbooks."
According to the author, "when the PERB sent a notice to CAVA notifying them that the teachers had voted to create a union under the EERA, attorneys from CAVA sent a May 29, 2014 response letter to PERB indicating that “PERB should defer to the NLRB,” citing the 2012 NLRB decision from Chicago. CAVA made the argument that their employees were private employees. If CAVA management had been successful in making this assertion, there are lingering questions about the ability of their employees to collect a public pension or even for the school to collect public tax dollars. Additionally, a decision like this about a charter school in California would have an impact on many other charter school educators, who have formed their unions within the framework of the EERA."
According to the California Teachers Association, "The Chicago Mathematics case began when an American Federation of Teachers affiliate organized employees of the charter school under the Illinois public sector bargaining statute, which is applicable to Illinois charter schools by express statutory provision. In response, the charter school filed a representation petition with the NLRB, arguing that the charter school is not exempt from the NLRB’s jurisdiction as a “political subdivision of the state.” The Board unanimously ruled that the charter school is an “employer” under the NLRA and not a “political subdivision of the state.” In so doing, the Board employed a very narrow analysis that looks only to the manner in which the school’s governing board is selected. The Board reasoned that because the members of the charter school’s governing board were not popularly elected or appointed by public officials and are not removable by the electorate or by public officials, the charter school is not administered by persons who are responsible to government officials or the public so as to constitute an exempt political subdivision. In California, the Legislature and the charter school community acknowledge that charter schools should be covered in the EERA, and as a result there is a need to change state law to allow continued coverage."
The NLRB has two additional cases before it regarding their jurisdiction once charter schools in New York and Pennsylvania.
CalPERS Application Changes: In response to advance notice of proposed rulemaking by the IRS, CalPERS changed their application process in May 2013. They issued a letter explaining the change which states, “Although the Proposed Regulations are not final, and could be revised during the official regulatory process, in order to mitigate potential risks to the CalPERS Plans, its members and employers, CalPERS has decided to incorporate the Proposed Regulations into our existing eligibility review process.” Several modifications were made to the CalPERS applicant questionnaire and eligibility criteria, which resulted in new questions to those who seek participation, including but not limited to:
Please indicate whether the members of the Employer’s governing board or body are Elected or Appointed? If appointed, who has the power to appoint members of the Employer’s governing board or body?
Does any person or entity have the power to remove members of the Employer’s Governing board or body?
Is the Employer treated as a governmental entity for any other purposes? Please describe in detail. Examples: Is the Employer subject to open meeting laws (such as the Brown Act), the California Public Records Act or similar laws? Are the Employer’s employees subject to the California Political Reform Act? Please provide a copy of the Employer’s current Conflict of Interest Code. Has any State or federal court or administrative agency made a formal written determination that the Employer is a governmental entity for any purpose?
In June of 2013, one month after changing their application process, CalPERS denied employees of a California charter school, the Dehesa Charter School, the opportunity to participate in the state pension plan. This was the first time CalPERS has denied participation to any charter school, and they went on to deny at least 9 others.
In January of 2015, the IRS issued a new draft proposal of rulemaking with tests for charter school participation in their State or local retirement system which include the following:
The entity satisfies either paragraph 1) or 2) below:
The entity’s governing board or body is controlled by a State, political subdivision of a State, or agency or instrumentality of a State or of a political subdivision of a State. For this purpose, either (i) a State, political subdivision of a State, or an agency or instrumentality of a State or political subdivision of a State must have the power to nominate, appoint, remove, and replace a majority of the members of the entity’s governing board or body, or (ii) a majority of the members of the entity’s governing board or body must be publicly nominated and elected.
In lieu of satisfying the requirements in paragraph 1), the entity satisfies the following requirements:
The primary source of the entity’s funding is from a State, political subdivision of a State, or agency or instrumentality of a State or political subdivision of a State.
The rights of the entity’s employees to their accrued benefits under the State or local retirement system are not dependent on whether the entity continues to participate in the system and, in the event the entity ceases participation, a governmental entity has responsibility for the accrued benefits of the entity’s employees, including the continued funding of the accrued benefits, to no lesser extent than a governmental entity has responsibility for the continued funding of the accrued benefits of the employees of any other participating employer in the system in the event that other employer were to cease to be a participating employer.
The entity is part of a local educational agency, as defined in 20 U.S.C. 7801(26) (or is its own local educational agency), and is subject to the significant regulatory control and oversight by a State, political subdivision of a State, or agency or instrumentality of a State or political subdivision of a State, as described in paragraphs i) and iii) below:
The entity is held accountable by an authorized public chartering agency as defined in 20 U.S.C. § 7221i(4), which has the power to approve, renew, and revoke the charter of the entity. For this purpose, the authorized public chartering agency must be authorized under State law to approve charters for the creation of independent public schools and to hold the entity accountable for results.
The entity is required to comply with health and safety standards, as well as academic and financial accountability standards, that are similar to those that are generally applicable to other public schools in the State.
Based on this draft rulemaking, CalPERs is planning to update their application criteria and review the 10 charter schools they previously denied as well as the additional 33 applications they have currently pending. It is unclear whether all charter schools will meet the test above. The committee should consider whether all charter schools will meet paragraph 2) above, or whether this bill is a more appropriate solution to this problem.
Appointed Chartering Authorities: While the vast majority of school boards and county boards of education are elected bodies, there are a few charter authorizers that are appointed boards instead of elected boards. These appointed boards include the State Board of Education and the Los Angeles County Board of Education. The committee should consider whether this bill will correct the situation for nonprofit charters authorized by these boards.
Authorizer Liability: The committee should consider whether charter authorizers that authorize nonprofit charter schools and appoint a majority of the charter school's governing body members will be assuming more financial liability if the charter school closes. Under existing law, it appears that charter authorizers have some protection from liability of nonprofit charters they authorize, if they perform proper oversight; however, it is unclear whether this bill erodes that protection from liability since the authorizer would be appointing the governing body of the charter school.
Arguments in Support: The California Teachers Association supports the bill and states, "Many charter schools are publicly funded but privately governed. This private governance is causing confusion about whether charter school employees are public or private. This important legislation will ensure that charter school employees are public employees, with the ability to participate in public pension programs, working in schools that can receive public tax dollars, and are covered by the state’s collective bargaining laws that apply to other public education employees."
Arguments in Opposition: The California Charter School Association Advocates opposes the bill and states, "According to his fact sheet on the bill, the author claims that the bill is intended to ensure that charter school employees are covered under the state's Education Employment Relations Act (EERA). We are perplexed as to what is actually missing in the law, since the EERA already expressly applies to charter school employees. We are further perplexed as to what relationship this bill has to EERA, since EERA is not mentioned in the bill."
Committee Amendment: Staff recommends the bill be amended to specify in Education Code Section 47604 (3): "It shall be the policy of the state to encourage and to promote parental, educator, geographic & ethnic diversity and community participation in the governance of a charter school."
REGISTERED SUPPORT / OPPOSITION:
Support
California Federation of Teachers
California Labor Federation
California Teachers Association
Opposition
Caliber Schools
California Charter Schools Association Advocates
Clayton Valley Charter High School
EdVoice
KIPP Academy of Innovation
KIPP Bay Area Schools
KIPP Empower Academy
KIPP Iluminar Academy
KIPP Vida Preparatory Academy
KIPP: LA Schools
Odyssey Charter School
Orange County Conservation Corps
Palisades Charter High School
Partnerships to Uplift Communities
San Jose Charter Academy
Shasta Charter Academy
SIATech
StudentsFirst
The Language Academy of Sacramento
Valley Preparatory Academy Charter School
Ventura Charter School
Willow Creek Academy
Numerous Individuals
Analysis Prepared by: Chelsea Kelley / ED. / (916) 319-2087
Bill Author
Bill Co-Author(s):
