(1)Existing law specifies a process establishes procedural requirements for the unification or reorganization of school districts. As part of that process, existing law requires a county committee on school district organization to hold a public hearing upon receipt of a petition signed by at least 10% of the qualified electors residing in any school district for consideration of unification or other reorganization of any area. Existing law also requires a county committee on school district organization to hold a public hearing upon receipt of a resolution approved by a majority of the members of specified local agencies for consideration of unification or other reorganization of any area. Following those public hearings, existing law requires the county committee on school district organization to grant or deny the petition or resolution proposal. If a county committee on school district organization approves a petition to transfer territory, existing law requires the county committee to notify the county superintendent of schools who, upon that notification, is required to call an election in the territory of the school district, as specified. Existing law provides that an action to reorganize one or more school districts may be initiated upon the filing of a petition with the county superintendent of schools by a specified percentage or number of registered voters residing within the territory proposed to be reorganized, by the owner of the property if the territory is uninhabited, or by a majority of the members of the governing boards of each school district that would be affected by the proposed reorganization.

Notwithstanding those provisions, this bill would create a separate procedure for inhabited territory transfers establish separate procedural requirements for an action to form a new school district within the boundaries of a single school district for the formation of a new school district within a single county. The bill would authorize a transfer an action to be initiated by a petition signed by at least 10% of the number of qualified electors who voted in the last gubernatorial election and who reside within the boundaries of the proposed school district, or by resolution of a local agency, as defined, approved by a majority of its members. Upon receipt of a petition or resolution proposal, the bill would require the county board of education to hold a public hearing, as specified. If a petition or proposal is granted, the bill would require the county superintendent of schools to call an election of registered voters within the boundaries of the proposed school district, as specified. By imposing additional duties on county boards of education and county superintendents of schools, the bill would impose a state-mandated local program.

(2)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.

Under the Charter Schools Act of 1992, a maximum of 100 additional charter schools may be authorized to operate in the state each school year.

This bill would make nonsubstantive changes to these provisions, including deleting an obsolete provision relating to a Legislative Analysts report.

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

ABPCA Bill Id:AB 803

Author:(Hadley) – As Amended Ver:April 22, 2015

SUBJECT: School districts: reorganization: formation of new school districts

SUMMARY: Establishes procedures for an action to form a new district within the boundaries of a single school district within a single county. Specifically, this bill:

1. Specifies that the following provisions apply to an action to form a new district within the boundaries of a single school district within a single county:

   1. The action may be initiated by either of the following:

      1. A petition signed by at least 10 percent of the number of qualified electors who voted in the last gubernatorial election and who reside within the boundaries of the proposed district. The petition shall identify persons who will represent the proposed district in public hearings.

      2. A resolution of a local agency approved by a majority of its members. The local agency shall also appoint persons to represent the proposed school district in public hearings by a resolution.

   2. Upon receipt of the petition, the county board of education shall hold a public hearing on the petition at a regular or special meeting. Following the hearing, the county board of education shall grant or deny the petition.

   3. Upon receipt of the resolution, the county board of education and the local agency that initiated the transfer proposal shall jointly hold a public hearing on the transfer proposal at a regular or special meeting. Following the hearing, the county board of education and the local agency that initiated the transfer proposal shall jointly grant or deny the transfer proposal by a majority vote of all members.

   4. If a petition or proposal is granted, the county superintendent of schools shall call an election of registered voters within the boundaries of the proposed school district to be conducted at the next election.

2. Defines "local agency" to mean a city council, county board of supervisors, governing body of a special district, or local agency formation commission that has jurisdiction over all or a portion of the proposed school district.

3. Provides that, if the new district includes within its boundaries a chartered city, the county committee on school district reorganization may stipulate that the governing board of the school district may be governed by the charter of the city and not exclusively by general law.

4. Requires the county committee on school district reorganization, at least 10 days prior to the public hearing, to make the following information available to the public:

   1. The rights of the employees in the affected district to continued employment;

   2. Whether the districts involved will be governed, in part, by provision of a city charter and, if so, in what way;

   3. Whether the governing boards of any proposed new district will have five or seven members;

   4. A description of the territory or districts in which the election will be held;

   5. Whether the governing board of any new district will have trustee areas and, if so, whether the trustees will be elected by only the voters of that trustee area or by the voters of the entire district;

   6. A description of how the property, obligations, and bonded indebtedness of existing districts will be divided; and

   7. A description of when the first governing board of any new district will be elected and how the terms of office for each new trustee will be determined.

EXISTING LAW: Prescribes procedures for school district reorganization, depending on the type of reorganization (transfer of territory, unification, etc.) and the method by which the proposal to reorganize was initiated (petition, school board resolution, etc.).

FISCAL EFFECT: Unknown

COMMENTS: Background. In 1983, an unincorporated area of Los Angeles known as Eastview was annexed into the city of Rancho Palos Verdes. Prior to annexation, the territory of Eastview and its two schools—Dodson Middle School and Crestwood Elementary School—were part of the Los Angeles Unified School District (LAUSD). They remained part of LAUSD after annexation.

In 1991, the governing board of the Rancho Palos Verdes School District (RPVSD) passed a resolution to initiate a process to transfer the Eastview territory from LAUSD to RPVSD. The initiative was approved by the voters of the RPVSD, but was overturned by the courts, because the vote did not include voters in the LAUSD, as required by the law.

In 1998, the Legislature enacted legislation, SB 1681 (Karnette), Chapter 868, Statutes of 1998, which designated the area of Eastview as optional attendance area. Accordingly, residents of Eastview may choose to send their children to either the LAUSD or the RPVUSD.

Purpose of this bill. Eastview would qualify for the reorganization process established by this bill, because its territory is within a single unified school district within a single county. Under this new process, Eastview could become its own school district and then, at a later point in time, unify with RPVUSD.

The new process established by this bill differs in several ways from existing law:

• The process to initiate a petition. In the case of inhabited territory, existing law requires a petition to be signed by 25% of the registered voters of the territory. This bill requires 10% of the registered voters who voted in the last gubernatorial election—a much smaller number. Alternatively, existing law permits an action to reorganize a district to be initiated by a majority vote of the members of all affected school districts. This bill permits an action to be initiated by a vote of a local agency, as defined.

• The role of the State Board of Education (SBE). Existing law requires the SBE to approve proposals for district reorganization, except in limited circumstances. In making its determination, the SBE must consider 10 statutory requirements, such as the equitable division or property and facilities, the impact on the racial/ethnic balance of the districts, the impact on educational programs, and the fiscal impact. The process created by this bill does not require SBE consideration or approval. However, the author's office indicates it is their intent to require approval by the SBE before a vote is held.

• Final determination. Once a petition has been approved by the SBE, there are two procedures for getting final approval. First, if the territory proposal to be reorganized accounts for less than 10% of the assessed value of the whole district, then it can be approved by a majority vote of all governing boards. Otherwise, it must be approved by a majority vote of the voters of all affected districts. This bill provides for a vote by only the Eastview voters of the LAUSD, and not all of the voters of LAUSD.

Effects of school district reorganization. School district reorganization has many effects on a wide range of concerns, including the following:

• The status, seniority, salaries and benefits of employees in the affected territory;

• Contractual obligations regarding the schools in the affected territory;

• Ownership (or transfer of ownership) of property and facilities;

• The allocation of the proceeds of the sale of bonds;

• The allocation of bonded indebtedness and debt service; and

• The disposition of student body property, funds, and obligations.

Some of these concerns, especially the allocation of debt service on existing bonded indebtedness, affect all of the residents of the district involved, not just those that would be permitted to vote on the question under this bill. Because this bill establishes a process that may be used statewide, the committee may wish to consider the precedent that would be set by allowing only a subset of voters who are affected by an issue to vote on that issue.

Correction needed. Should the committee vote to pass this bill, staff recommends it be amended to reference the county committee on school district reorganization instead of the county board of education.

Arguments in opposition. Opponents express concerns about the "extremely low threshold" to initiate a petition that this bill establishes, and argue that it ignores the community affected and denies the existing school district a voice in the matter. They also argue that this is a local matter that should be resolved locally.

REGISTERED SUPPORT / OPPOSITION:

Support

None received

Opposition

Los Angeles Unified School District

Analysis Prepared by: Rick Pratt / ED. / (916) 319-2087