Bill Text: CA SB1434 | 2015-2016 | Regular Session | Introduced
Bill Title: Charter schools.
Spectrum: Bipartisan Bill
Status: (Failed) 2016-11-30 - From committee without further action. [SB1434 Detail]
Download: California-2015-SB1434-Introduced.html
BILL NUMBER: SB 1434 INTRODUCED BILL TEXT INTRODUCED BY Senator Glazer (Principal coauthor: Assembly Member Olsen) FEBRUARY 19, 2016 An act to amend Sections 47605, 47605.6, 47605.8, and 47613 of, and to add Sections 47604.6 and 47604.7 to, the Education Code, relating to charter schools. LEGISLATIVE COUNSEL'S DIGEST SB 1434, as introduced, Glazer. Charter schools. (1) Existing law, The Charter Schools Act of 1992, permits teachers and parents to petition the governing board of a school district to approve a charter school to operate independently from the existing school district structure as a method of accomplishing, among other things, improved pupil learning. This bill would authorize a school district, county office of education, or charter school to file a grievance with the State Board of Education alleging a violation of an obligation of a chartering authority, as provided. The bill would require the state board's Advisory Commission on Charter Schools to hold a public hearing on the grievance and, if it finds the complaint meritorious, make a specific recommendation to the state board, which may include specific corrective action or suspension or revocation of the chartering authority's authority to approve, oversee, renew, and revoke charters. (2) Existing law requires a charting authority to meet certain charter school authorizing, supervisorial, and oversight responsibilities. This bill would authorize the state board to approve a county office of education or a school district with demonstrated authorizing and oversight capacity to serve as an expanded authorizer of charter schools allowing that chartering entity to assume the charter school authorizing, supervisorial, and oversight responsibilities of another school district in certain situations, as specified. (3) Existing law requires the governing board of a school district, after receiving a charter petition, to hold a public hearing on the provisions of the charter and prohibits the governing board of a school district from denying 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 certain findings. This bill would require the governing board of the school district to base the specific facts on substantial evidence and provide the evidence to the petitioners and make it available to the public before the hearing. Existing law authorizes a charter school petitioner, if the governing board of a school district denies a petition, to submit the petition for the establishment of a charter school to the county board of education. Existing law also authorizes a charter school petitioner, if the county board of education denies a petition, to submit the petition for the establishment of a charter school to the state board. This bill would authorize a charter school petitioner to appeal to the county board of education if, after the petitioner submits a charter petition, the school district fails to act on the petition within required timelines or the governing board of a school district fails to adopt required findings to deny a petition. The bill would also permit a charter school petitioner to appeal to the state board if the county board of education fails to act on the petition within required timelines or the county board of education fails to adopt required findings to deny a petition. Existing law requires a charter petition that either the county board of education or the state board fails to act upon within 120 days of receipt to be subject to judicial review. This bill would, instead, require a charter petition that the state board fails to act upon within 120 days of receipt to be subject to judicial review. Existing law authorizes the state board, by mutual agreement, to 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. This bill would also authorize the state board to designate its responsibilities to a county office of education. Existing law requires a charter school that is granted its charter through an appeal to the state board and elects to seek renewal of its charter, before expiration of the charter, to submit its petition for renewal to the governing board of the school district that initially denied the charter. This bill would, instead, authorize a charter school that is granted its charter through an appeal to the state board or a county board of education and elects to seek renewal of its charter, before expiration of the charter, to submit its petition for renewal to the governing board of the school district that initially denied the charter. Existing law authorizes a charter school, if the governing board of the school district denies the charter school's petition for renewal, to petition the state board for the renewal of its charter. This bill would authorize a charter school, if the governing board of the school district denies the charter school's petition for renewal, to petition the charter school's current chartering authority for the renewal of its charter. (4) Existing law authorizes a county board of education to approve a countywide charter only if it finds, in addition to other requirements, that the educational services to be provided by the charter school will offer services to a pupil population that will benefit from those services and that cannot be served as well by a charter school that operates in only one school district in the county. This bill would, instead, authorize a county board of education to approve a countywide charter only if it finds, in addition to other requirements, that the educational services to be provided by the charter school will offer services to a pupil population that will benefit from those services. Existing law authorizes a county board of education to grant a countywide charter only if it is satisfied that granting the charter is consistent with sound educational practice and that the charter school has reasonable justification for why it could not be established by petition to a school district. This bill would, instead, authorize a county board of education to grant a countywide charter only if it is satisfied that granting the charter is consistent with sound educational practice and that the charter school petitioners have demonstrated that the charter school will provide a high-quality educational program. The bill would require the county board of education to also ensure that the charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance. Existing law prohibits a charter school petitioner from submitting a petition for a countywide charter to the state board on appeal. This bill would authorize a charter school petitioner to submit a petition for a countywide charter to the state board on appeal. (5) Existing law authorizes the state board to approve a charter for the operation of a state charter school that may operate at multiple sites throughout the state. This bill would authorize the state board to approve a charter for the operation of a state charter school that may operate at one or multiple sites throughout the state. Existing law authorizes the state board to grant a petition for the operation of a state charter school only if it finds that the proposed state charter school would provide instructional services of statewide benefit that cannot be provided by a charter school operating in only one school district, or only in one county. This bill would instead authorize the state board to grant a petition for the operation of a state charter school only if it is satisfied that the charter school petitioners have demonstrated that the proposed state charter school will provide a high-quality educational program and it finds that the proposed state charter school will provide instructional services of statewide benefit. The bill would require the state board, as part of the determination of the statewide benefit, to ensure that the proposed charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance. The bill would authorize the state board to establish other criteria or conditions to determine or define a statewide benefit. (6) Existing law authorizes a chartering authority that is given the responsibility for supervisorial oversight of a charter school approved by the state board to charge the charter school for the actual costs of supervisorial oversight. This bill would require that chartering authority to submit annually a financial statement to each charter school it oversees that accounts for the use of any oversight fees collected from the charter school. Existing law authorizes charter schools to separately purchase administrative or other services from the chartering authority. This bill would require the charter school governing body and the governing board of the chartering authority to each approve any services agreements between the charter school and the chartering authority in a public meeting and make a finding that documents the validity of the fair market value of the agreement. The bill would authorize a county superintendent of schools to, based upon a written complaint or other information that justifies an investigation, conduct an investigation, as specified, to determine whether the school district has used supervisorial oversight fees properly or has charged service fees far in excess of fair market value. The bill also authorizes the Superintendent of Public Instruction to, based upon a written complaint or other information that justifies an investigation, conduct an investigation into a chartering county office of education's compliance with these provisions. Existing law defines "costs of supervisorial oversight" for the above purposes. This bill would require a school district to include charter school oversight fees in it's annual audit, as specified. (7) This bill would also correct cross-references, make conforming changes, and make other nonsubstantive changes. (8) To the extent the bill would impose additional duties on school districts and county offices of education, the bill would impose a state-mandated local program. 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 47604.6 is added to the Education Code, to read: 47604.6. (a) A school district, county office of education, or charter school may file a grievance with the state board alleging a violation of an obligation of a chartering authority. The grievance may be submitted based on evidence provided by a third party. The grievance shall describe the specific violation prompting the grievance, the provision of code or regulation that is being violated or misapplied by the chartering authority, and any specific evidence available to support the claim. (b) The state board's Advisory Commission on Charter Schools shall hold a public hearing on the grievance and, if it finds the complaint meritorious, make a specific recommendation to the state board, which may include specific corrective action or suspension or revocation of the chartering authority's authority to approve, oversee, renew, or revoke charters in accordance with Sections 47605 and 47607. (c) The procedure established by this section may be pursued in addition to or instead of seeking a judicial remedy. Nothing in this section shall limit or prevent any party from seeking a judicial remedy for a complaint related to a chartering authority. (d) The state board may adopt regulations to implement this section. SEC. 2. Section 47604.7 is added to the Education Code, to read: 47604.7. (a) The state board may approve a county office of education or a school district with demonstrated authorizing and oversight capacity to serve as an expanded authorizer of charter schools allowing that chartering entity to assume the charter school authorizing, supervisorial, and oversight responsibilities of another school district if any of the following occur: (1) The state board revokes and reassigns a school district's responsibilities following a hearing pursuant to Section 47604.6 or other determination by the state board in which the state board finds the school district has substantially violated a provision of this part and the effectiveness of corrective action seems unlikely to ensure compliance with this part and good authorizing practices. (2) A school district with fewer than 1,000 units of average daily attendance requests the state board to suspend and reassign the school district's chartering responsibilities. A school district may only request the responsibilities to be suspended and reassigned after the governing board of the school district has passed a resolution, in an open public meeting, requesting that the state board reassign the school district's responsibilities. The reassignment shall only be effective after the approval of the request by the expanded authorizer and the state board. (3) A nonprofit public benefit corporation that operates more than one charter school in the state requests a county office of education or school district in which it operates a charter school to consolidate all of its existing and future nonprofit charter schools under the supervision and oversight of that chartering authority, and that chartering authority requests the state board to become an expanded authorizer for the nonprofit public benefit corporation. In addition to the requirements of subdivision (d), the request to the state board shall include a process for the expanded authorizer to review the overall fiscal and operational health of the nonprofit public benefit corporation as part of its supervision and oversight responsibilities. (4) Notwithstanding the geographic restriction of subdivision (k) of Section 47605, and in addition to the authority provided in subdivision (k) of Section 47605, the state board appoints one or more expanded authorizers to supervise and oversee charter schools that the state board approves pursuant to subdivision (j) of Section 47605. (b) In approving an expanded authorizer, the state board shall consider the capacity and quality of chartering practices of the chartering authority and give priority to high-quality chartering authorities within the county of a school district whose responsibilities are being reassigned. (c) The state board may impose geographic constraints on an expanded authorizer's authority to approve new charter schools, but charter schools approved by an expanded authorizer are otherwise exempt from Section 47605.1 and the geographic restrictions of Section 47605. However, a resource center established for nonclassroom-based, independent study pupils shall operate in accordance with subdivision (c) of Section 47605.1. (d) The state board shall adopt application criteria, a process, and a timeline to approve expanded authorizers that allows for at least one application cycle each year. A county board of education or school district seeking to be approved as an expanded authorizer shall submit an application to the state board for consideration and action. At a minimum, the application shall include: (1) A charter approval plan, including a description of how the chartering authority would apply the criteria and timeline to evaluate and approve charter petitions pursuant to subdivision (b) of Section 47605. (2) A local engagement plan to ensure that the governing board of the school district and the community in which a charter school would be located are notified of the proposed charter school and provided with an opportunity to comment on each proposed charter school. Engagement activities shall include, but not be limited to, one public hearing in the community in which a charter school would be located and a process for the chartering authority to consider and resolve concerns about the charter school by the community, including the governing board of the school district in which the charter school would be located. (3) A charter school oversight plan, including a description of the chartering authority's capacity and expertise in approving and overseeing charter schools and how the chartering authority plans to expand its capacity to accommodate additional charter schools. The plan shall, at a minimum, ensure compliance with Section 47604.32 and outline the provisions of any memoranda of understanding that may be necessary between a charter school and the chartering authority. (4) Assurance that the chartering authority will generally align with nationally recognized principles and standards of charter authorizing and oversight, as amended by the state board to conform with California's authorizing statute, to ensure chartering authority quality and accountability. (5) A plan for annual reporting to the state board and to the governing boards of each school district in which charter schools approved by the chartering authority would be located, describing chartering activities, charter school academic performance, and the fiscal viability of each charter school it would oversee pursuant to this section. (e) Nothing in this section shall be construed to limit or change the authority of school districts, county boards of education, or the state board to authorize charter schools pursuant to Section 47605, 47605.5, 47605.6, 47605.8, or 47606. (f) An operating charter school that comes under the oversight of an expanded authorizer shall continue to operate under the terms and conditions of its approved charter petition and shall not be deemed a new charter school. The charter school shall retain all of its financial and operational practices and status as a continuing charter school, including, but not limited to, funding eligibility, demographic data, school codes, employment, enrollment eligibility, and accountability status. (g) An expanded authorizer shall comply with all laws and requirements of chartering authorities imposed by this part, including, but not limited to, all provisions related to charter school approval, oversight, renewal, and revocation. (h) A charter school approved by an expanded authorizer shall comply with all provisions applicable to charter schools under this part. SEC. 3. 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 if 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 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 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 teacher's 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 school's 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 school has attempted to locate a single site or facility to house the entire program, but a site or facility is unavailable in the area in which the school chooses to locate. (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 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 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 based on substantial evidence that is provided to the petitioners and made available to the public before the meeting 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) 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) The annual goals for the charter school 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 school priorities, the goals for the school priorities, and the specific annual actions to achieve those goals. (iii) If the proposed charter school will serve high school pupils, 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 school demonstrate that they have attained the skills, knowledge, and attitudes specified as goals in the school's 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) 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. (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 it with a criminal record summary as described in Section 44237. (G) The means by which the 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) 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) 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. (6) The petition does not contain a declaration of whether or not the charter school shall be deemed the exclusive public 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. (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 school's 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 school. (B) If the number of pupils who wish to attend the charter school exceeds the school's 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 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 shall not 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 pupil's 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 school, the manner in which administrative services of the school are to be provided, and potential civil liability effects, if any, upon the school and upon the school district. The description of the facilities to be used by the charter school shall specify where the school intends to locate. The petitioner or petitioners 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 that section 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, or, if after a charter petitioner submits a charter, fails to act on the petition within the timelines required in subdivision (b), or the governing board of a school district fails to adopt findings to deny a petition as required in subsection (b), 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 and act on 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, fails to adopt findings to deny a petition as required in subsection (b), or fails to act on the petition within the timelines required in subdivision (b), 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) Ifeither the county board of education orthe 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 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 islocated orlocated, to the governing board of the school district that first denied thepetition.petition, or to a county office of education. (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 or a county board of education and elects to seek renewal of its chartershall,may, 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 school's petition for renewal, the school may petitionthe state boardits current chartering authority 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. 4. Section 47605.6 of the Education Code is amended to read: 47605.6. (a) (1) In addition to the authority provided by Section 47605.5, a county board of education may also approve a petition for the operation of a charter school that operates at one or more sites within the geographic boundaries of the county and that provides instructional services that are not generally provided by a county office of education. A county board of education may approve a countywide charter only if it finds, in addition to the other requirements of this section, that the educational services to be provided by the charter school will offer services to a pupil population that will benefit from thoseservices and that cannot be served as well by a charter school that operates in only one school district in the county.services. A petition for the establishment of a countywide charter school pursuant to this subdivision may be circulated throughout the county by any one or more persons seeking to establish the charter school. The petition may be submitted to the county board of education for review after either of the following conditions is met: (A) The petition is signed by a number of parents or guardians of pupils residing within the county that is equivalent to at least one-half of the number of pupils that the charter school estimates will enroll in the school for its first year of operation and each of the school districts where the charter school petitioner proposes to operate a facility has received at least 30 days' notice of the petitioner's intent to operate a school pursuant to this section. (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 school during its first year of operation and each of the school districts where the charter school petitioner proposes to operate a facility has received at least 30 days' notice of the petitioner's intent to operate a school pursuant to this section. (2) An existing public school shall not be converted to a charter school in accordance with this section. (3) After receiving approval of its petition, a charter school that proposes to establish operations at additional sites within the geographic boundaries of the county board of education shall notify the school districts where those sites will be located. The charter school shall also request a material revision of its charter by the county board of education that approved its charter and the county board of education shall consider whether to approve those additional locations at an open, public meeting, held no sooner than 30 days following notification of the school districts where the sites will be located. If approved, the location of the approved sites shall be a material revision of the school's approved charter. (4) A petition shall include a prominent statement indicating that a signature on the petition means that the parent or guardian is meaningfully interested in having his or her child or ward attend the charter school, or in the case of a teacher's signature, means that the teacher is meaningfully interested in teaching at the charter school. The proposed charter shall be attached to the petition. (b) No later than 60 days after receiving a petition, in accordance with subdivision (a), the county board of education shall hold a public hearing on the provisions of the charter, at which time the county board of education shall consider the level of support for the petition by teachers, parents or guardians, and the school districts where the charter school petitioner proposes to place school facilities. Following review of the petition and the public hearing, the county board of education shall either grant or deny the charter within 90 days of receipt of the petition. However, this date may be extended by an additional 30 days if both parties agree to the extension. A county board of education may impose any additional requirements beyond those required by this section that it considers necessary for the sound operation of a countywide charter school. A county board of education may grant a charter for the operation of a school under this part only if it is satisfied that granting the charter is consistent with sound educational practice and that the charter schoolhas reasonable justification for why it could not be established by petition to a school district pursuant to Section 47605.petitioners have demonstrated that the charter school will provide a high-quality educational program. The county board of education shall also ensure that the charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance. The county board of education shall deny a petition for the establishment of a charter school if it finds one or more of the following: (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) The educational program of the charter school, designed, among other things, to identify those pupils 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) The annual goals for the charter school 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 school priorities, the goals for the school priorities, and the specific annual actions to achieve those goals. (iii) If the proposed charter school will enroll high school pupils, the manner in which the charter school will inform parents regarding the transferability of courses to other public high schools. Courses offered by the charter school that are accredited by the Western Association of Schools and Colleges may be considered to be transferable to other public high schools. (iv) If the proposed charter school will enroll high school pupils, information as to the manner in which the charter school will inform parents as to whether each individual course offered by the charter school meets college entrance requirements. Courses approved by the University of California or the California State University as satisfying their prerequisites for admission may be considered as meeting college entrance requirements for purposes of this clause. (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 school demonstrate that they have attained the skills, knowledge, and aptitudes specified as goals in the school's 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) The location of each charter school facility that the petitioner proposes to operate. (E) 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. (F) The qualifications to be met by individuals to be employed by the charter school. (G) 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 it with a criminal record summary as described in Section 44237. (H) 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. (I) The manner in which annual, independent, financial audits shall be conducted, in accordance with regulations established by the state board, and the manner in which audit exceptions and deficiencies shall be resolved. (J) The procedures by which pupils can be suspended or expelled. (K) The manner by which staff members of the charter school will be covered by the State Teachers' Retirement System, the Public Employees' Retirement System, or federal social security. (L) The procedures to be followed by the charter school and the county board of education to resolve disputes relating to provisions of the charter. (M) Admission requirements of the charter school, if applicable. (N) The public school attendance alternatives for pupils residing within the county who choose not to attend the charter school. (O) The rights of an employee of the county office of education, upon leaving the employment of the county office of education, to be employed by the charter school, and any rights of return to the county office of education that an employee may have upon leaving the employ of the charter school. (P) The procedures to be used if the charter school closes. The procedures shall ensure a final audit of the 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 public records. (6) 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 the Educational Employment Relations Act (Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code). (7) Any other basis that the county board of education finds justifies the denial of the petition. (c) A county board of education that approves a petition for the operation of a countywide charter may, as a condition of charter approval, enter into an agreement with a third party, at the expense of the charter school, to oversee, monitor, and report to the county board of education on the operations of the charter school. The county board of education may prescribe the aspects of the charter school's operations to be monitored by the third party and may prescribe appropriate requirements regarding the reporting of information concerning the operations of the charter school to the county board of education. (d) (1) Charter schools shall meet all statewide standards and conduct the pupil assessments required pursuant to Section 60605 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 and teachers regarding the charter school's educational programs. (e) (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 pupil on the basis of ethnicity, national origin, gender, gender identity, gender expression, or disability. 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 guardian, within this state. (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 school's 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 county 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 county board of education 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. (f) The county board of education shall not require an employee of the county or a school district to be employed in a charter school. (g) The county board of education shall not require a pupil enrolled in a county program to attend a charter school. (h) The county board of education 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, any school district where the charter school may operate, and upon the county board of education. The petitioner or petitioners 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. (i) In reviewing petitions for the establishment of charter schools within the county, the county board of education 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 that section read before July 19, 2006. (j) 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 school districts within the county, the Superintendent, and to the state board. (k) If a county board of education denies a petition, the petitioner maynot elect tosubmit the petition for the establishment of the charter school to the stateboard.board in accordance with subdivision (j) of Section 47605. If a county board of education does not renew, or revokes a petition approved in accordance with this section, the petitioner may submit the petition for appeal to the state board in accordance with Sections 47607 and 47607.5. (l) Teachers in charter schools shall be required to 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 shall be 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 the county office of education, the Controller, 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. 5. Section 47605.8 of the Education Code is amended to read: 47605.8. (a) A petition for the operation of a state charter school may be submitted directly to the state board, and the state board shall have the authority to approve a charter for the operation of a state charter school that may operate at one or multiple sites throughout the state. TheState Board of Educationstate board shall adopt regulations, pursuant to the Administrative Procedure Act (Chapter53.5 (commencing with Section11500)113 40) of Part 1 of Division 3 of Title 2 of the Government Code) for the implementation of this section. Regulations adopted pursuant to this section shall ensure that a charter school approved pursuant to this section meets all requirements otherwise imposed on charter schools pursuant to this part, except that a state charter school approved pursuant to this section shall not be subject to the geographic and site limitations otherwise imposed on charter schools. The petitioner shall submit a copy of the petition, for notification purposes, to the county superintendent of schools of each county in which the petitioner proposes to operate the state charter school. The petitioner also shall ensure that the governing board of each school district in which a site is proposed to be located is notified no later than 120 daysprior tobefore the commencement of instruction at each site, as applicable. (b) The state board shall not approve a petition for the operation of a state charter school pursuant to this section unless the petitioners have demonstrated that the proposed state charter school will provide a high-quality educational program and the state board makes afinding, based on substantial evidence,finding that the proposed state charter school will provide instructional services of statewidebenefit that cannot be provided by a charter school operating in only one school district, or only in one county.benefit. As part of the determination of the statewide benefit, the state board shall ensure that the proposed state charter school has described in the petition the manner in which the charter school will seek to share best and promising practices of the charter school with other traditional public schools and charter schools that have low academic performance. The state board may establish other criteria or conditions to determine or define a statewide benefit. The finding of the state board in this regard shall be made part of the public record of the proceedings of the state board and shall precede the approval of the charter. (c) The state board, as a condition of charter petition approval, may enter into an agreement with a third party, at the expense of the charter school, to oversee, monitor, and report on, the operations of the state charter school. The state board may prescribe the aspects of the operations of the state charter school to be monitored by the third party and may prescribe appropriate requirements regarding the reporting of information concerning the operations of the state charter school to the state board. (d) The state board shall not be required to approve a petition for the operation of a state charter school, and may deny approval based on any of the reasons set forth in subdivision (b) of Section 47605.6. SEC. 6. Section 47613 of the Education Code is amended to read: 47613. (a) Except as set forth in subdivision (b), a chartering authority may charge for the actual costs of supervisorial oversight of a charter school not to exceed 1 percent of the revenue of the charter school. (b) A chartering authority may charge for the actual costs of supervisorial oversight of a charter school not to exceed 3 percent of the revenue of the charter school if the charter school is able to obtain substantially rent free facilities from the chartering authority. (c) A local educational agency that is given the responsibility for supervisorial oversight of a charter school, pursuant to paragraph (1) of subdivision (k) of Section 47605, may charge for the actual costs of supervisorial oversight, and administrative costs necessary to secure charter school funding. A charter school that is charged for costs under this subdivision may not be charged pursuant to subdivision (a) or (b). The chartering authority shall submit annually a financial statement to each charter school that it oversees that accounts for the use of any oversight fees collected from the charter school. (d) This section does not prevent the charter school from separately purchasing administrative or other services from the chartering authority or any othersource.source at fair market value. The charter school governing body and the governing board of the chartering authority shall each approve any services agreements between the charter school and the chartering authority in a public meeting and shall make a finding that documents the validity of the fair market value of the agreement. However, the chartering authority shall not condition the approval of a charter petition on an agreement by the charter school to purchas e administrative or other services from the chartering authority. (e) (1) A county superintendent of schools may, based upon a written complaint or other information that justifies an investigation, conduct an investigation into a school district's compliance with subdivisions (a) to (d), inclusive, for any school district located within the county. The investigation shall determine whether the school district has used supervisorial oversight fees collected pursuant to this section for the purpose of funding the oversight responsibilities pursuant to Section 47604.32, or charged service fees far in excess of fair market value. The county superintendent of schools shall report the findings of the investigation to the county board of education. (2) If the county board of education finds that the school district violated this section, both of the following shall occur: (A) The school district shall reimburse the charter school all of the fees collected from the charter school for oversight purposes that were not used for oversight purposes or service fees deemed to be in excess of fair market value. The amount to be reimbursed shall be determined by the county board of education as part of their action to accept the finding of the investigation. The county board of education may impose a reasonable interest rate on the illegal fees collected. (B) The school district shall submit an annual report to the county superintendent of schools documenting compliance with the oversight responsibilities in Section 47604.32 and the associated costs and fees until the end of the term of the charter that was subject to excess fees. (3) (A) If a complainant is not satisfied with the response of the county board of education, the complainant may submit a written grievance pursuant to Section 47604.6. (B) If the state board finds that the school district violated this section, the school district shall comply with subparagraphs (A) and (B) of paragraph (2), except that annual reports shall be submitted to the Superintendent. (4) If the county superintendent of schools concludes that the school district has violated any of subdivisions (a) to (d), inclusive, the school district may appeal that decision to the Superintendent. (5) The Superintendent may, based upon a written complaint or other information that justifies an investigation, conduct an investigation into a chartering county office of education's compliance with subdivisions (a) to (d), inclusive. The Superintendent and the chartering county office of education shall be subject to the provisions of subparagraphs (A) and (B) of paragraph (2).(e)(f) For purposes of this section, "chartering authority" means a school district, county board of education, or the state board, that granted the charter to the charter school.(f)(g) For purposes of this section, "revenue of the charter school" means the amount received in the current fiscal year from the local control funding formula calculated pursuant to Section 42238.02, as implemented by Section 42238.03.(g)(h) For purposes of this section, "costs of supervisorial oversight" include, but are not limited to, costs incurred pursuant to Section 47607.3. The use of charter school oversight fees shall be included in the school district's annual audit conducted pursuant to Section 41020. SEC. 7. 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.