Bill Text: CA AB360 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Charter schools.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2012-08-28 - Ordered to inactive file at the request of Assembly Member Brownley. [AB360 Detail]

Download: California-2011-AB360-Amended.html

---

BILL NUMBER: AB 360	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 27, 2011
	AMENDED IN SENATE  JUNE 15, 2011
	AMENDED IN ASSEMBLY  APRIL 6, 2011

INTRODUCED BY   Assembly Member Brownley
    (   Principal coauthor:   Senator 
 Simitian   ) 

                        FEBRUARY 14, 2011

   An act to add Section 47604.1 to the Education Code,   and to
amend Section 1091 of the Government Code,   relating to charter
schools.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 360, as amended, Brownley. Charter schools.
   (1) The Ralph M. Brown Act requires that all meetings of a
legislative body, as defined, of a local agency be open and public
and all persons be permitted to attend unless a closed session is
authorized. The Bagley-Keene Open Meeting Act requires, with
specified exceptions, that all meetings of a state body be open and
public and all persons be permitted to attend.
   This bill would expressly state that a charter school is subject
to the Ralph M. Brown Act, unless it is operated by an entity
governed by the Bagley-Keene Open Meeting Act, in which case the
school would be subject to the Bagley-Keene Open Meeting Act.
   (2) The California Public Records Act requires state and local
agencies to make their records available for public inspection and to
make copies available upon request and payment of a fee unless the
records are exempt from disclosure.
   This bill would expressly state that a charter school is subject
to the California Public Records Act.
   (3) Existing law prohibits certain public officials, including,
but not limited to, members of governing boards of school districts
and citizens' oversight committees, from engaging in specified
activities that are inconsistent or incompatible with, or inimical
to, their duties as public officials, including, but not limited to,
entering into a contract in which the official or the official's
family member has a financial interest, as specified.
   This bill would expressly state that a charter school is subject
to these provisions.
   (4) The Political Reform Act of 1974 requires every state agency
and local governmental agency to adopt a conflict-of-interest code,
formulated at the most decentralized level possible, that requires
designated employees of the agency to file statements of economic
interest disclosing any investments, business positions, interests in
real property, or sources of income that may foreseeably be affected
materially by any governmental decision made or participated in by
the designated employee by virtue of his or her position.
   This bill would expressly state that a charter school is subject
to the Political Reform Act of 1974.
   (5) This bill would state various exceptions and clarifications
regarding the applicability of the acts described above in paragraphs
(1) to (4), inclusive.
   (6) Existing law requires a member of the governing board of a
school district to abstain from voting on personnel matters that
uniquely affect a relative of the member.
   This bill would provide that an employee of a charter school is
not disqualified from serving as a member of the governing body of
the charter school because of that employment status. The bill would
require a member of the governing body of a charter school to abstain
from voting on any matter affecting his or her own employment or any
personnel matter that uniquely affects a relative of the member.

   The bill would provide that a person who provides a loan to a
charter school due to a school fiscal emergency, or who leases, or
signs a guarantor agreement relative to the lease of, real property
to be occupied by a charter school, is not disqualified because of
that loan, lease, or guarantor agreement from also serving as a
member of the governing body of the charter school or being an
employee of the charter school. 
   (7) The bill would make these provisions operative on July 1,
2012.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature in enacting this
act to do all of the following:
   (a) Establish conflict-of-interest policies for the governing
board of charter schools that mirror existing conflict-of-interest
policies followed by the governing board of school districts.
   (b) Provide transparency in the operations of the many charter
schools that are providing quality educational options for parents
and pupils and renew the faith of parents and the community that
their local charter school is acting in the best interests of pupils.

   (c) Continue to provide greater autonomy to charter schools than
traditional public schools and provide greater transparency to
parents and the public with regard to the use of public funds by the
governing board of charter schools for the educational benefit of
their pupils.
   (d) Establish standards and procedures consistent with the Charter
Schools Act of 1992 to avoid conflicts of interest in charter
schools.
  SEC. 2.  Section 47604.1 is added to the Education Code, to read:
   47604.1.  (a) A charter school is subject to all of the following:

   (1) The Ralph M. Brown Act (Chapter 9 (commencing with Section
54950) of Part 1 of Division 2 of Title 5 of the Government Code),
except that a charter school operated by an entity governed by the
Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the
Government Code) is subject to the Bagley-Keene Open Meeting Act
regardless of the authorizing entity. A charter school is also
subject to Section 35147.
   (2) The California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code).
   (3) Article 4 (commencing with Section 1090) of Chapter 1 of
Division 4 of Title 1 of the Government Code.
   (4) The Political Reform Act of 1974 (Title 9 (commencing with
Section 81000) of the Government Code).  For purposes of Section
87300 of the Government Code, a charter school shall be considered an
agency. 
   (b)  (1)    Notwithstanding Article 4
(commencing with Section 1090) of Chapter 1 of Division 4 of Title 1
of the Government Code, an employee of a charter school is not
disqualified because of that employment status from also serving as a
member of the governing body of the charter school. A member of the
governing body of a charter school shall abstain from voting on all
matters uniquely affecting his or her own employment. 
   (2) Notwithstanding Article 4 (commencing with Section 1090) of
Chapter 1 of Division 4 of Title 1 of the Government Code, a person
who provides a loan to a charter school due to a school fiscal
emergency is not disqualified, because of that loan agreement, from
also serving as a member of the governing body of the charter school
or from being an employee of the charter school. A member of the
governing body of a charter school who provides a loan as described
in this paragraph shall abstain from voting on all matters affecting
the loan agreement. The loan agreement shall not disqualify the
member from serving on the governing body of the charter school or
the person from being an employee of the charter school if the
governing body of the charter school, before entering into the loan
agreement, declares the existence of and describes the fiscal
emergency by adopting a resolution at a public meeting of the
governing body. The governing body of the charter school shall
disclose and approve the loan agreement, including the terms of the
loan, during a public meeting. This paragraph shall apply to a member
of the governing body or an employee of the charter school who signs
a guarantor agreement relative to a line of credit, provided that
the funds from the line of credit shall not be accessed until a
fiscal emergency is declared and described as required pursuant to
this paragraph.  
   (3) Notwithstanding Article 4 (commencing with Section 1090) of
Chapter 1 of Division 4 of Title 1 of the Government Code, a person
who leases real property to be occupied by a charter school or signs
a guarantor agreement relative to the lease of real property to be
occupied by a charter school is not disqualified, because of that
agreement, from also serving as a member of the governing body of the
charter school or from being an employee of the charter school. A
member of the governing body of a charter school who is a lessor or
guarantor as described in this paragraph shall abstain from voting on
all matters affecting the real property lease agreement. The
governing body of the charter school shall disclose and approve the
real property lease agreement, including the terms of the lease and
guarantee, during a public meeting. 
   (c) A member of the governing body of a charter school shall
abstain from voting on personnel matters that uniquely affect a
relative of the member but may vote on collective bargaining
agreements and personnel matters that affect a class of employees to
which the relative belongs. For purposes of this section, "relative"
means an adult who is related to the person by blood or affinity
within the third degree, as determined by the common law, or an
individual in an adoptive relationship within the third degree.
   (d) A person who is disqualified by the California Constitution or
laws of the state from holding a civil office shall not serve on the
governing body of a charter school.
   (e) To the extent that the governing body of a charter school
engages in activities that are not related to the operation of the
charter school, this section does not make those unrelated activities
subject to Section 1090 of the Government Code, the Ralph M. Brown
Act, the Bagley-Keene Open Meeting Act, or the California Public
Records Act. A meeting of the governing body of a charter school to
discuss items related to the operation of the charter school shall
not include discussion of any item regarding an activity of the
governing body that is not related to the operation of the charter
school.
   (f) The governing body of a charter school may meet within the
physical boundaries of the county or counties in which one or more of
the school's facilities are located provided that proper notices
pursuant to the Ralph M. Brown Act and the Bagley-Keene Open Meeting
Act are posted within the physical boundaries of each of the counties
in which any of the school's facilities is located. A charter school
also may meet in a county contiguous to the county where one or more
of the school's facilities are located if at least 10 percent of the
pupils who are enrolled in the school reside in that contiguous
county. A nonclassroom-based charter school that does not have a
facility may meet within the boundaries of the county in which the
greatest number of pupils who are enrolled in the school reside. This
subdivision does not limit the authority of the governing body to
meet outside these boundaries to the extent authorized by Section
54954 of the Government Code, provided that the meeting place is in
compliance with Section 54961 of the Government Code.
   (g) The governing body of a charter school may hold closed
sessions to consider a matter regarding pupil discipline as described
in Section 48912.
   (h) A statement of economic interest that is filed by a designated
person at a charter school after the required deadline pursuant to
the Political Reform Act of 1974 shall not be the sole basis for
revocation of a charter pursuant to Section 47607.
   (i) For purposes of this section, "facility" means a charter
school campus, resource center, meeting space, or satellite facility.

   (j) Notwithstanding any other law, this section does not apply to
actions taken before the operative date of this section. 

   (j) 
    (k)  This section shall become operative on July 1,
2012.
   SEC. 3.    Section 1091 of the   Government
Code   is amended to read: 
   1091.  (a) An officer shall not be deemed to be interested in a
contract entered into by a body or board of which the officer is a
member within the meaning of this article if the officer has only a
remote interest in the contract and if the fact of that interest is
disclosed to the body or board of which the officer is a member and
noted in its official records, and thereafter the body or board
authorizes, approves, or ratifies the contract in good faith by a
vote of its membership sufficient for the purpose without counting
the vote or votes of the officer or member with the remote interest.
   (b) As used in this article, "remote interest" means any of the
following:
   (1) That of an officer or employee of a nonprofit entity exempt
from taxation pursuant to Section 501(c)(3) of the Internal Revenue
Code (26 U.S.C. Sec. 501(c)(3)) or a nonprofit corporation, except as
provided in paragraph (8) of subdivision (a) of Section 1091.5.
   (2)  (A)    That of an employee or agent of the
contracting party, if the contracting party has 10 or more other
employees and if the officer was an employee or agent of that
contracting party for at least three years  prior to
  before  the officer initially accepting his or
her office and the officer owns less than 3 percent of the shares of
stock of the contracting party; and the employee or agent is not an
officer or director of the contracting party and did not directly
participate in formulating the bid of the contracting party. 

   For 
    (B)     For  purposes of this
paragraph, time of employment with the contracting party by the
officer shall be counted in computing the three-year period specified
in this paragraph even though the contracting party has been
converted from one form of business organization to a different form
of business organization within three years of the initial taking of
office by the officer. Time of employment in that case shall be
counted only if, after the transfer or change in organization, the
real or ultimate ownership of the contracting party is the same or
substantially similar to that which existed before the transfer or
change in organization. For purposes of this paragraph, stockholders,
bondholders, partners, or other persons holding an interest in the
contracting party are regarded as having the "real or ultimate
ownership" of the contracting party.
   (3) That of an employee or agent of the contracting party, if all
of the following conditions are met:
   (A) The agency of which the person is an officer is a local public
agency located in a county with a population of less than 4,000,000.

   (B) The contract is competitively bid and is not for personal
services.
   (C) The employee or agent is not in a primary management capacity
with the contracting party, is not an officer or director of the
contracting party, and holds no ownership interest in the contracting
party.
   (D) The contracting party has 10 or more other employees.
   (E) The employee or agent did not directly participate in
formulating the bid of the contracting party.
   (F) The contracting party is the lowest responsible bidder.
   (4) That of a parent in the earnings of his or her minor child for
personal services.
   (5) That of a landlord or tenant of the contracting party.
   (6) That of an attorney of the contracting party or that of an
owner, officer, employee, or agent of a firm that renders, or has
rendered, service to the contracting party in the capacity of
stockbroker, insurance agent, insurance broker, real estate agent, or
real estate broker, if these individuals have not received and will
not receive remuneration, consideration, or a commission as a result
of the contract and if these individuals have an ownership interest
of 10 percent or more in the law practice or firm, stock brokerage
firm, insurance firm, or real estate firm.
   (7) That of a member of a nonprofit corporation formed under the
Food and Agricultural Code or a nonprofit corporation formed under
the Corporations Code for the sole purpose of engaging in the
merchandising of agricultural products or the supplying of water.
   (8) That of a supplier of goods or services when those goods or
services have been supplied to the contracting party by the officer
for at least five years  prior to   before 
his or her election or appointment to office.
   (9) That of a person subject to the provisions of Section 1090 in
any contract or agreement entered into pursuant to the provisions of
the California Land Conservation Act of 1965  (Chapter 7
(commencing with Section 51200) of Part 1 of Division 1 of Title 5)
 .
   (10) Except as provided in subdivision (b) of Section 1091.5, that
of a director of, or a person having an ownership interest of, 10
percent or more in a bank, bank holding company, or savings and loan
association with which a party to the contract has a relationship of
borrower or depositor, debtor or creditor.
   (11) That of an engineer, geologist, or architect employed by a
consulting engineering or architectural firm. This paragraph applies
only to an employee of a consulting firm who does not serve in a
primary management capacity, and does not apply to an officer or
director of a consulting firm.
   (12) That of an elected officer otherwise subject to Section 1090,
in any housing assistance payment contract entered into pursuant to
Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec.
1437f) as amended, provided that the housing assistance payment
contract was in existence before Section 1090 became applicable to
the officer and will be renewed or extended only as to the existing
tenant, or, in a jurisdiction in which the rental vacancy rate is
less than 5 percent, as to new tenants in a unit previously under a
Section 8 contract. This section applies to any person who became a
public official on or after November 1, 1986.
   (13) That of a person receiving salary, per diem, or reimbursement
for expenses from a government entity.
   (14) That of a person owning less than 3 percent of the shares of
a contracting party that is a for-profit corporation, provided that
the ownership of the shares derived from the person's employment with
that corporation.
   (15) That of a party to litigation involving the body or board of
which the officer is a member in connection with an agreement in
which all of the following apply:
   (A) The agreement is entered into as part of a settlement of
litigation in which the body or board is represented by legal
counsel.
   (B) After a review of the merits of the agreement and other
relevant facts and circumstances, a court of competent jurisdiction
finds that the agreement serves the public interest.
   (C) The interested member has recused himself or herself from all
participation, direct or indirect, in the making of the agreement on
behalf of the body or board.
   (16) That of a person who is an officer or employee of an
investor-owned utility that is regulated by the Public Utilities
Commission with respect to a contract between the investor-owned
utility and a state, county, district, judicial district, or city
body or board of which the person is a member, if the contract
requires the investor-owned utility to provide energy efficiency
rebates or other type of program to encourage energy efficiency that
benefits the public when all of the following apply:
   (A) The contract is funded by utility consumers pursuant to
regulations of the Public Utilities Commission.
   (B) The contract provides no individual benefit to the person that
is not also provided to the public, and the investor-owned utility
receives no direct financial profit from the contract.
   (C) The person has recused himself or herself from all
participation in making the contract on behalf of the state, county,
district, judicial district, or city body or board of which he or she
is a member.
   (D) The contract implements a program authorized by the Public
Utilities Commission. 
   (17) That of an employee, or member of the governing body, of a
charter school operating pursuant to Part 26.8 (commencing with
Section 47600) of Division 4 of Title 2 of the Education Code in a
loan agreement with the charter school if the conditions in paragraph
(2) of subdivision (b) of Section 47604.1 of the Education Code are
met, or in a lease or guarantor agreement relative to the lease of
real property to be occupied by the charter school if the conditions
in paragraph (3) of subdivision (b) of Section 47604.1 of the
Education Code are met. 
   (c) This section is not applicable to any officer interested in a
contract who influences or attempts to influence another member of
the body or board of which he or she is a member to enter into the
contract.
   (d) The willful failure of an officer to disclose the fact of his
or her interest in a contract pursuant to this section is punishable
as provided in Section 1097. That violation does not void the
contract unless the contracting party had knowledge of the fact of
the remote interest of the officer at the time the contract was
executed.