Bill Text: CA SB645 | 2011-2012 | Regular Session | Amended
Bill Title: Charter schools: charter renewal.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2011-08-25 - Set, second hearing. Held in committee and under submission. [SB645 Detail]
Download: California-2011-SB645-Amended.html
BILL NUMBER: SB 645 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 13, 2011
AMENDED IN ASSEMBLY JUNE 29, 2011
AMENDED IN SENATE MAY 11, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator Simitian
(Principal coauthor: Assembly Member Brownley)
(Coauthor: Senator Alquist)
FEBRUARY 18, 2011
An act to amend Sections 17183, 17199.1, 17199.3, 47607,
and 47614.5 47614.5, and 47634.2 of the
Education Code, relating to charter schools.
LEGISLATIVE COUNSEL'S DIGEST
SB 645, as amended, Simitian. Charter schools: charter renewal.
(1) Existing law establishes the California School Finance
Authority, and authorizes the authority to issue revenue bonds to
finance a single or series of projects or financing of working
capital for a single or several participating parties, defined as a
school district, charter school, county office of education, or
community college district that undertakes the financing or
refinancing of a project or of working capital, or a joint venture
school facility construction project.
This bill would authorize the authority to issue revenue bonds to
refinance those projects.
(2) The Charter Schools Act of 1992 (Charter Schools Act)
specifies the procedures for the submission, review, and approval or
denial of a petition to establish a charter school. The Charter
Schools Act limits the duration of charters to a period not to exceed
5 years and authorizes the chartering authority to grant one or more
subsequent renewals for an additional period of 5 years. The Charter
Schools Act prescribes the requirements a charter school must meet
in order to have its charter renewed, including a requirement that a
charter school that has been in operation for 4 years satisfy at
least one of several specified criteria regarding academic
performance.
This bill would change the criteria a charter school is required
to meet in order to have its charter renewed.
The bill would authorize a charter school not meeting the renewal
criteria to apply to the State Board of Education for a determination
of academic eligibility for the renewal of its charter by submitting
supporting evidence to the state board and the Superintendent of
Public Instruction. The bill would require the
charter school to submit a copy of the application and supporting
evidence to its charter authorizer. The bill would require the
Superintendent and authorize the charter authorizer to
make a recommendation to the state board on the application. The bill
would require the state board to issue a positive determination of
academic eligibility if the state board finds that the charter school
clearly demonstrates that the academic performance of the school's
pupils builds an expectation that the pupils will continue to improve
academically and have the opportunity to be successful in college or
career. A charter renewal based on a determination of academic
eligibility would be granted for only 3 years.
The bill also would make a conforming change.
(3) Existing law establishes the Charter School Facility Grant
Program to provide assistance with facility rent and lease costs for
pupils in charter schools, and states the intent of the Legislature
that not less than $18,000,000 annually be appropriated for purposes
of the program. Eligibility for a grant is based on the percentage of
pupils who are eligible for free and reduced-price meals and are
enrolled in the charter school or reside in the attendance area of,
or are enrolled in, the public elementary school where the charter
school is physically located. Eligible schools receive up to $750 per
unit of average daily attendance for a maximum of 75% of the annual
facilities rent and lease costs for the charter school. Funds
appropriated for purposes of the program are prohibited from being
apportioned for units of average daily attendance generated through
nonclassroom-based instruction, as defined, or for a school that does
not comply with conditions or limitations set forth in regulations
adopted by the state board.
This bill would increase the amount eligible schools receive to
$800 per unit of average daily attendance. The bill would require
eligibility for this grant program to be expanded if funds remain
after charter schools that meet the existing free and reduced-price
meals threshold are funded. The bill would remove the prohibition
against funding for units of average daily attendance that do not
comply with conditions or limitations set forth in regulations, and
would allow eligibility to be expanded, as specified, for charter
schools that generate units of average daily attendance through
nonclassroom-based instruction if the school operates facilities that
provide direct instruction and support to enrolled pupils. The
bill would require a charter school offering nonclassroom-based
instruction and applying for funding to identify in apportionment
reports the proportion of time pupils in the school are
scheduled to receive classroom-based instruction.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17183 of the Education Code is amended to read:
17183. (a) From time to time, the authority may, by resolution,
issue its revenue bonds in order to provide funds for any of the
purposes of this chapter. Bonds may be issued to finance or refinance
any of the following:
(1) A single project or financing of working capital for a single
participating party.
(2) A series of projects or financings of working capital for a
single participating party.
(3) A single project or financing of working capital for several
participating parties.
(4) Several projects or financings of working capital for several
participating parties.
(5) A joint venture school facilities construction project
undertaken pursuant to Article 5 (commencing with Section 17060) of
Chapter 12.
(b) Except as otherwise expressly provided by the authority, all
revenue bonds shall be payable from any available revenues or moneys
of the authority not otherwise pledged, subject only to any
agreements with holders of particular bonds or notes pledging any
particular revenue or moneys. Notwithstanding that revenue bonds
issued pursuant to this section may be payable from a special fund,
the revenue bonds shall be, and shall be deemed to be for all
purposes, negotiable instruments, subject only to the provisions of
the revenue bonds for registration.
(c) The revenue bonds of the authority may be issued as serial
bonds, term bonds, or the authority, in its discretion, may issue
bonds of both types. The issuance shall be in accordance with the
indenture, trust agreement, or resolution relating to the revenue
bonds, which shall provide all of the following:
(1) The date or dates of the bonds.
(2) The date or dates upon which the bonds will mature, not to
exceed 40 years from their respective dates.
(3) The interest rate or rates, or methods of determining the
interest rate or rates, of the bonds.
(4) When the bonds are payable.
(5) The denominations of the bonds.
(6) The form of the bonds, which shall be either bearer or
registered.
(7) The registration privileges of the bonds.
(8) The manner in which the bonds are to be executed.
(9) The place or places at which the bonds shall be payable in
lawful money of the United States of America.
(10) The terms of redemption of the bonds.
(d) After giving due consideration to the recommendations of the
participating party or parties, the revenue bonds of the authority
shall be sold by the Treasurer at either a public or private sale at
a price or prices, and upon the terms and conditions prescribed by
the authority. The revenue bonds of the authority may be sold at,
above, or below the par value of the bonds.
(e) Pending the preparation of the definitive bonds, the authority
may issue interim receipts or certificates or temporary bonds that
shall be exchanged for the definitive bonds.
(f) Any resolution authorizing the issuance of any bonds of the
authority, or any issue of revenue bonds of the authority, may
include any of the following provisions:
(1) Provisions pledging all or any part of the proceeds of the
bonds or revenue of a project or loan.
(2) Provisions concerning the replacement of mutilated, destroyed,
stolen, or lost bonds.
(3) Provisions specifying insurance to be maintained on the
project and the authorized uses of the proceeds of the insurance.
(4) Covenants against the mortgaging or otherwise encumbering,
selling, leasing, pledging, placing a charge upon, or otherwise
disposing of the project prior to the payment of the bonds issued to
finance the project.
(5) Provisions specifying the events of default, terms upon which
the bonds may be declared due before maturity, and the terms upon
which the declaration and its consequences may be waived.
(6) The rights, liabilities, powers, and duties arising upon the
breach of any covenants, conditions, or obligations.
(7) Vesting of the right to enforce covenants in a trustee.
(8) The terms upon which all or any percentage of the bondholders
may enforce covenants or duties.
(9) Procedures for amending the terms of the resolution, with or
without the consent of the holders of a specified number of bonds.
(10) Provision for any other acts or things deemed necessary,
convenient, or desirable by the authority to secure the bonds or
improve their marketability.
(g) The validity of the authorization and issuance of any bond
issue shall not be affected by proceedings for the acquisition,
construction, or improvement of any project, or by contracts relating
to those proceedings. Any resolution authorizing the issuance of any
bonds of the authority may provide authorization for the bonds to
bear a statement certifying that they are issued pursuant to this
chapter. Bonds bearing that statement shall be conclusively deemed
valid and issued in conformity with this chapter. Reference on the
face of the bonds to the resolution by its date of adoption shall
incorporate the provisions of the resolution and of this chapter into
the terms of the bonds.
(h) Members of the authority, or any person executing the revenue
bonds of the authority, shall not incur personal liability on the
bonds, nor shall these persons incur personal liability or
accountability by reason of the issuance of the revenue bonds of the
authority.
(i) The authority is authorized, out of any funds available for
that purpose, to purchase revenue bonds of the authority. The
authority may hold, pledge, cancel, or resell any bonds purchased
under the authority of this subdivision, subject to, and in
accordance with, agreements with bondholders.
(j) The financing or refinancing of projects or working capital
may be provided pursuant to this chapter by means other than revenue
bonds, at the discretion of the authority, including financing or
refinancing through certificates of participation, or other
interests, in bonds, loans, leases, installment sales, or other
agreements of the participating party or parties. In this connection,
the authority may do all things and execute and deliver all
documents and instruments as may be necessary or desirable with
regard to issuance of the certificates of participation or other
means of financing or refinancing.
(k) The authority may by resolution issue its revenue bonds in the
form of commercial paper.
SEC. 2. Section 17199.1 of the Education Code is amended to read:
17199.1. (a) Any participating party, exclusively for the purpose
of securing financing or refinancing of projects or working capital
pursuant to this chapter through the issuance, by the authority, of
revenue bonds, certificates of participation, or other means, and
notwithstanding any other provision of law, may: (1) sell to the
authority all or part of any rights to or possibilities regarding the
state's share of funding for school facilities approved by the State
Allocation Board pursuant to Chapter 12.5 (commencing with Sec.
17070.10), including amounts apportioned and funded and amounts
approved but not yet funded by the State Allocation Board from
proceeds of state bonds already authorized by the electors but not
yet issued; (2) issue bonds to the authority; or (3) borrow money or
purchase or lease educational facilities from the authority, and in
connection therewith, sell or lease property to the authority, in
each case at any interest rate or rates, rental provisions, with any
maturity date or dates or term, and with any other transfer,
assignment, payment, security, default, remedy, and other terms or
provisions as may be specified in the sale of rights agreement or the
bonds of the participating party or a loan, loan purchase,
installment sale, lease, or other agreement between the authority and
the participating party, subject to the following conditions:
(A) The sum of the amount borrowed to finance or refinance working
capital and the interest payable thereon at the initial interest
rate if interest is variable, shall not exceed 85 percent of the
estimated amount of uncollected taxes, income, revenue, cash
receipts, and other funds received by the participating party, which
will be available in any fiscal year for the repayment of the loan
and the interest thereon. For purposes of this paragraph, "revenue"
includes, but is not limited to, federal and state funds received by
the participating party.
(B) In computing the maximum amount that may be borrowed in any
fiscal year pursuant to subparagraph (A), the participating party may
exclude the amount of any principal or interest which is secured by
a pledge of the amount in any inactive or term deposit of the
participating party which has a term scheduled to terminate during
that fiscal year.
(C) A participating party that borrows money to finance or
refinance working capital pursuant to this subdivision shall be
required to repay and discharge the loan, including interest, within
15 months of the loan date.
(D) In enacting this chapter, it is the intent of the Legislature
to provide financing or refinancing of working capital needed to
cover temporary or cashflow deficits and needs for working capital
and not long-term budget deficits or shortfalls in funding. The
participating party must demonstrate to the satisfaction of the
authority that, during the term of any working capital loan received
pursuant to this chapter, the participating party will receive or
otherwise have (without additional borrowing) sufficient funds to
repay and discharge the loan. The participating party may take into
account all funds received by the participating party and may base
future projections upon historical experience or reasonable
expectations, or a combination thereof.
(b) Notwithstanding Sections 700, 703, and 1045 of the Civil Code,
the rights and possibilities that a participating party may have or
obtain in the future to an approved state contribution to funding for
school facilities pursuant to Chapter 12.5 (commencing with Section
17070.10) that remains unfunded pending the issuance of state bonds
already authorized by the electors shall constitute property for all
purposes and may be transferred as provided in subdivision (a). In
the case of any transfer or assignment of rights or possibilities
relating to funds for which bonds have been approved by the voters
but are not yet available, the transfer or assignment shall be
approved by resolution of the State Allocation Board prior to
becoming effective.
(c) Any participating party may enter into any agreement for
liquidity or credit enhancement, with any reimbursement, payment,
interest, security, default, remedy, and other terms it may deem
necessary or appropriate in connection with the issuance of bonds,
the borrowing of money or the lease or purchase of educational
facilities, whichever is applicable. Any participating party or
parties also may do all things and execute all documents as may be
necessary or desirable in connection with the issuance of
certificates of participation, or other interests, in any bond, loan,
note, installment sale, lease, or other agreement of the
participating party.
(d) A school district may by resolution authorize any county or
city board of education or superintendent of schools, a community
college district may by resolution authorize the Board of Governors
of the California Community Colleges or the Chancellor of the
California Community Colleges, and a charter school may by resolution
authorize its chartering entity or educational management
organization, to act as its agent in the performance of any of the
matters permitted by this section or any other provision of this
chapter. Notwithstanding any other provision of law, the agent shall
have the powers granted by the resolution for purposes of this
chapter. The resolution shall be deemed to bind the school district,
charter school, or community college district, as the case may be, to
any contract, agreement, instrument, or other document executed by
the agent on behalf of the school district, charter school, or
community college district, and all duties, obligations, or
responsibilities contained therein on the part of the school
district, charter school, or community college district, to the same
extent as if duly authorized, executed, and delivered by the school
district, charter school, or community college district.
(e) This section shall be deemed to provide a complete,
additional, and alternative method for accomplishing the acts
authorized by this section, and the sale or transfer of any rights to
or possibilities regarding the state share of funding for school
facilities approved by the State Allocation Board including amounts
apportioned and funded and amounts approved but not yet funded from
proceeds of state bonds already authorized by the electors but not
yet issued, issuance of bonds to, borrowing of money from, or sale or
purchase or lease of educational facilities from or to, the
authority. Any agreement entered into in connection with the transfer
of any rights to or possibilities regarding the state contribution
for funding for school facilities pursuant to Chapter 12.5
(commencing with Section 17070.10), including amounts apportioned and
funded and amounts approved but not yet funded by the State
Allocation Board from proceeds of state bonds already authorized by
the electors but not yet issued, or the issuance of bonds, the
borrowing of money or the sale, purchase, or lease of educational
facilities, including, without limitation, any agreement for
liquidity or credit enhancement under this section, need not comply
with the requirements of any other law applicable to issuance of
bonds, borrowing, selling, purchasing, leasing, pledge, encumbrance,
or credit, as the case may be, by a school district, charter school,
or community college district, or by a county or city board of
education or superintendent of schools, or the Board of Governors of
the California Community Colleges or Chancellor of the California
Community Colleges, or the governing board of a charter school,
chartering entity, or educational management organization.
SEC. 3. Section 17199.3 of the Education Code is amended to read:
17199.3. (a) The total amount of revenue bonds which may be
issued and outstanding at any time for purposes of this chapter,
other than those revenue bonds issued under Section 17199.4, shall
not exceed four hundred million dollars ($400,000,000).
(b) The total amount that may be outstanding at any time under
this chapter, for purposes of Section 17199.4 only, shall not exceed
four billion dollars ($4,000,000,000).
(c) For purposes of subdivisions (a) and (b), bonds which meet any
of the following conditions shall not be deemed to be outstanding:
(1) Bonds which have been refunded pursuant to Section 17188.
(2) Bonds for which money or securities in amounts necessary to
pay or redeem the principal, interest, or any redemption premium on
the bonds have been deposited in trust.
(3) Bonds that have been issued to finance or refinance working
capital.
SEC. 4. Section 47607 of the Education Code is amended to read:
47607. (a) (1) A charter may be granted pursuant to Sections
47605, 47605.5, and 47606 for a period not to exceed five years. A
charter granted by the governing board of a school district, a county
board of education, or the state board, may be granted one or more
subsequent renewals by that entity. Each renewal shall be for a
period of five years. A material revision of the provisions of a
charter petition may be made only with the approval of the authority
that granted the charter. The authority that granted the charter may
inspect or observe any part of the charter school at any time.
(2) Renewals and material revisions of charters are governed by
the standards and criteria in Section 47605, and shall include, but
not be limited to, a reasonably comprehensive description of any new
requirement of charter schools enacted into law after the charter was
originally granted or last renewed.
(b) The authorizer of a charter school that has been in operation
for at least four years shall not consider or grant the renewal of
the school's charter unless the school, based on data available as of
October 1 of the fiscal year of the renewal, meets at least one of
the following criteria:
(1) An Academic Performance Index (API) score of at least 700 in
the most recent year.
(2) Academic growth of at least 50 points over the prior three
years as measured by the API, using the most recent data available.
(3) A rank in 6 to 10, inclusive, on the API for a demographically
comparable school in the prior year or in two of the prior three
years.
(4) Participation in the alternative accountability system
developed pursuant to subdivision (h) of Section 52052. If
subdivision (h) of Section 52052 is repealed or no longer operative,
a dropout recovery high school, as defined in subparagraph (D) of
paragraph (4) of subdivision (a) of Section 52052, shall meet the
criteria of this paragraph.
(5) Receipt of a positive determination of academic eligibility
for renewal from the state board within the prior 12 months.
(c) (1) The authorizer of a charter school that has been in
operation for at least four years, has entered into year five of
program improvement, pursuant to the federal No Child Left Behind Act
of 2001 (20 U.S.C. Sec. 6301 et seq.), and has not exited program
improvement, shall not consider or grant the renewal of the school's
charter unless the school meets at least one of the following
criteria, based on data available as of October 1 of the fiscal year
of the renewal:
(A) The school meets at least two criteria set forth in paragraphs
(1) to (3), inclusive, of subdivision (b).
(B) The school receives a positive determination of academic
eligibility for renewal from the state board within the prior 12
months.
(2) This subdivision shall not apply to schools that meet the
criterion set forth in paragraph (4) of subdivision (b).
(3) This subdivision shall not be operative if the Secretary of
the United States Department of Education grants a waiver to the
state related to the suspension or delay in requirements of all
schools in program improvement.
(c) (1)
(d) A charter school shall apply to the
state board for a determination of academic eligibility pursuant to
paragraph (5) of subdivision (b) if it chooses to submit its charter
for renewal and either of the following applies:
(A)
(1) The charter school does not meet at least one of
the criteria set forth in paragraphs (1) to (4), inclusive, of
subdivision (b).
(B) The charter school has entered into year five of program
improvement, pursuant to the federal No Child Left Behind Act of 2001
(20 U.S.C. Sec. 6301 et seq.), has not exited program improvement,
and does not meet at least two criteria set forth in paragraphs (1)
to (3), inclusive, of subdivision (b).
(2) Subparagraph (B) of paragraph (1) shall not be used as one of
the criteria for identifying a school that may seek a determination
of academic eligibility if the Secretary of the United States
Department of Education grants a waiver to the state related to the
suspension or delay in requirements of all schools in program
improvement.
(2) The charter school does not meet the criteria set forth in
subparagraph (A) of paragraph (1) of subdivision (c).
(d)
(e) (1) Evidence supporting an application submitted
pursuant to subdivision (c) (d) shall
be submitted to the state board and the Superintendent and may
include, but is not limited to, information on individual pupil
achievement, including longitudinal data that demonstrates individual
pupil progress, analysis of similar pupil populations, or other
relevant data as determined by the school.
(2) A charter school shall submit a copy of its application and
supporting evidence to its charter authorizer. The charter authorizer
may submit a recommendation to the state board on the application
for academic determination of a charter school it authorizes.
(2)
(3) The Superintendent shall make a recommendation,
based on evidence provided by the charter that is valid and reliable,
to the state board on the application for a determination of
academic eligibility for the renewal of a charter. The Superintendent'
s recommendation shall include an analysis of the validity and
reliability of the evidence of academic success submitted by the
charter school.
(3)
(4) The state board shall issue a positive
determination of academic eligibility if the state board finds that
the charter school clearly demonstrates that the academic performance
of the school's pupils builds an expectation that the pupils will
continue to improve academically and have the opportunity to be
successful in college or career. In determining whether to grant a
positive determination of academic eligibility, the state board shall
consider that the farther the school is from satisfying paragraphs
(1) to (3), inclusive, of subdivision (b), the greater the burden of
proof on the school to demonstrate why the school was unable to
satisfy the criteria in paragraphs (1) to (3), inclusive, of
subdivision (b) and demonstrate why the academic performance is such
that the school deserves a positive determination of academic
eligibility.
(4)
(5) The charter of a charter school that is required to
apply to the state board for a determination of academic
eligibility, if the school chooses to submit its charter for renewal
pursuant to subdivision (c) (d) and is
granted renewal by satisfying paragraph (5) of subdivision (b), shall
be granted renewal for only three years.
(6) After the state board renders a decision on the determination
of academic eligibility, the Superintendent shall notify the
authorizer of the charter school of the state board action and any
related findings.
(e)
(f) A charter may be revoked by the authority that
granted the charter under this chapter if the authority finds,
through a showing of substantial evidence, that the charter school
did any of the following:
(1) Committed a material violation of any of the conditions,
standards, or procedures set forth in the charter.
(2) Failed to meet or pursue any of the pupil outcomes identified
in the charter.
(3) Failed to meet generally accepted accounting principles, or
engaged in fiscal mismanagement.
(4) Violated any provision of law.
(f)
(g) Before revoking a charter, the chartering authority
shall notify the charter public school of any violation of this
section and give the school a reasonable opportunity to remedy the
violation unless the authority determines, in writing, that the
violation constitutes a severe and imminent threat to the health or
safety of the pupils.
(g)
(h) Before revoking a charter for failure to remedy a
violation pursuant to subdivision (f) (g)
, and after expiration of the school's reasonable opportunity
to remedy without successfully remedying the violation, the
chartering authority shall provide a written notice of intent to
revoke and notice of facts in support of revocation to the charter
school. No later than 30 days after providing the notice of intent to
revoke a charter, the chartering authority shall hold a public
hearing, in the normal course of business, on the issue of whether
evidence exists to revoke the charter. No later than 30 days after
the public hearing, the chartering authority shall issue a final
decision to revoke or decline to revoke the charter, unless the
chartering authority and the charter school agree to extend the
issuance of the decision by an additional 30 days. The chartering
authority shall not revoke a charter, unless it makes written factual
findings supported by substantial evidence, specific to the charter
school, that support its findings.
(h)
(i) (1) If a school district is the chartering
authority and it revokes a charter pursuant to this section, the
charter school may appeal the revocation to the county board of
education within 30 days following the final decision of the
chartering authority.
(2) The county board may reverse the revocation decision if the
county board determines that the findings made by the chartering
authority under subdivision (g) (h) are
not supported by substantial evidence. The school district may
appeal the reversal to the state board.
(3) If the county board does not issue a decision on the appeal
within 90 days of receipt, or the county board upholds the
revocation, the charter school may appeal the revocation to the state
board.
(4) The state board may reverse the revocation decision if the
state board determines that the findings made by the chartering
authority under subdivision (g) (h) are
not supported by substantial evidence. The state board may uphold
the revocation decision of the school district if the state board
determines that the findings made by the chartering authority under
subdivision (g) (h) are supported by
substantial evidence.
(i)
(j) (1) If a county office of education is the
chartering authority and the county board revokes a charter pursuant
to this section, the charter school may appeal the revocation to the
state board within 30 days following the decision of the chartering
authority.
(2) The state board may reverse the revocation decision if the
state board determines that the findings made by the chartering
authority under subdivision (g) (h) are
not supported by substantial evidence.
(j)
(k) If the revocation decision of the chartering
authority is reversed on appeal, the agency that granted the charter
shall continue to be regarded as the chartering authority.
(k)
(l) During the pendency of an appeal filed under this
section, a charter school, whose revocation proceedings are based on
paragraph (1) or (2) of subdivision (e) (f)
, shall continue to qualify as a charter school for funding and
for all other purposes of this part, and may continue to hold all
existing grants, resources, and facilities, in order to ensure that
the education of pupils enrolled in the school is not disrupted.
(l)
(m) Immediately following the decision of a county
board to reverse a decision of a school district to revoke a charter,
the following shall
apply:
(1) The charter school shall qualify as a charter school for
funding and for all other purposes of this part.
(2) The charter school may continue to hold all existing grants,
resources, and facilities.
(3) Any funding, grants, resources, and facilities that had been
withheld from the charter school, or that the charter school had
otherwise been deprived of use, as a result of the revocation of the
charter shall be immediately reinstated or returned.
(m)
(n) A final decision of a revocation or appeal of a
revocation pursuant to subdivision (e) (f)
shall be reported to the chartering authority, the county
board, and the department.
SEC. 5. Section 47614.5 of the Education Code is amended to read:
47614.5. (a) The Charter School Facility Grant Program is hereby
established, and shall be administered by the department. The grant
program is intended to provide assistance with facilities rent and
lease costs for pupils in charter schools.
(b) Subject to the annual Budget Act, eligible schools shall
receive an amount of up to, but not more than, eight hundred dollars
($800) per unit of average daily attendance, as certified at the
second principal apportionment, to provide an amount of up to, but
not more than, 75 percent of the annual facilities rent and lease
costs for the charter school. In any fiscal year, if the funds
appropriated for the purposes of this section by the annual Budget
Act are insufficient to fund the approved amounts fully, the
Superintendent shall apportion the available funds on a pro rata
basis.
(c) For purposes of this section, the department shall do all of
the following:
(1) Inform charter schools of the grant program.
(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility. Charter schoolsites
are eligible for funding pursuant to this section if the charter
schoolsite meets either of the following conditions:
(A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or reduced priced meals and
the schoolsite gives a preference in admissions to pupils who are
currently enrolled in that public elementary school and to pupils who
reside in the elementary school attendance area where the charter
schoolsite is located.
(B) Seventy percent or more of the pupil enrollment at the charter
schoolsite is eligible for free or reduced price meals.
(C) In any year in which additional funds remain after state and
federal funds have been allocated to applicants that meet the
eligibility criteria in subparagraph (A) or (B), the department shall
expand eligibility to additional schools that are eligible pursuant
to subparagraph (B) by reducing the free and reduced-price meals
threshold one percentage point at a time, but in no case below 50
percent, until all available funds are allocated.
(3) Inform charter schools of their grant eligibility.
(4) Allocate funding to charter schools for eligible expenditures
in a timely manner.
(d) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:
(1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (d) of Section 47612.5 unless the charter school operates
facilities that provide direct instruction and support to pupils
enrolled in the school and the facility and charter school meet all
other eligibility requirements of this section. A charter school that
is eligible pursuant to this paragraph shall receive funds in
accordance with subdivision (b) but only for those portions of the
facility that are used for direct instruction and support. The
department shall expand eligibility to these schools only in a year
in which state and federal funds have been allocated to applicants
that meet the eligibility criteria in subparagraphs (A), (B), and (C)
of paragraph (2) of subdivision (c). For purposes of calculating
eligible funding for a school under this paragraph, the average daily
attendance of the school shall be reduced by the portion of
its average daily attendance that is generated through
nonclassroom-based instruction, as defined in paragraph (2) of
subdivision (e) of Section 47612.5 and as reported pursuant to
subdivision (c) of Section 47634.2. multiplied by the
proportion of time reported pursuant to subdivision (d) of
Section 47634.2.
(2) Charter school facility costs associated with existing school
district or county office of education facilities.
(3) Charter school facility costs associated with reasonably
equivalent facilities from their chartering authority pursuant to
Section 47614.
(e) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent
with the definitions used in the California School Accounting Manual.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred maintenance,
initially installing or extending service systems and other built-in
equipment, and improving sites.
(f) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment is
eligible for free or reduced price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.
(g) The Superintendent annually shall report to the state board
regarding the use of funds that have been made available during the
fiscal year to each charter school pursuant to the grant program.
(h) The Superintendent shall annually allocate the facilities
grants to eligible charter schools no later than October 1 of each
fiscal year or 90 days after enactment of the annual Budget Act,
whichever is later, for the current school year rent and lease costs.
However, the department shall first use the funding appropriated for
this program to reimburse eligible charter schools for unreimbursed
rent or lease costs for the prior school year.
SEC. 6. Section 47634.2 of the
Education Code is amended to read:
47634.2. (a) (1) Notwithstanding any other provision of
law, the amount of funding to be allocated to a charter
school on the basis of average daily attendance that is generated by
pupils engaged in nonclassroom-based instruction, as defined by
paragraph (2) of subdivision (d) (e) of
Section 47612.5, including funding provided on the basis of average
daily attendance pursuant to Sections 47613.1, 47633, 47634,
and 47664, shall be adjusted by the State Board
of Education state board . The State
Board of Education state board shall adopt
regulations setting forth criteria for the determination of funding
for nonclassroom-based instruction , at . At
a minimum the regulation regulations
shall specify that the nonclassroom-based instruction is
conducted for the instructional benefit of the pupil and
substantially dedicated to that function. In developing these
criteria and determining the amount of funding to be allocated to a
charter school pursuant to this section, the State Board of
Education state board shall consider, among
other factors it deems appropriate, the amount of the charter school'
s total budget expended on certificated employee salaries and
benefits and on schoolsites, as defined in paragraph (3) of
subdivision (d) (e) of Section 47612.5,
and the teacher-to-pupil ratio in the school.
(2) For the 2001-02 fiscal year only, the amount of funding
determined by the State Board of Education
state board pursuant to this section shall not be less than 90
percent of the unadjusted amount to which a charter school would
otherwise be entitled on the basis of average daily attendance.
(3) For the 2002-03 2002-03 fiscal
year, the amount of funding determined by the State Board of
Education state board pursuant to this section
shall not be more than 80 percent of the unadjusted amount to which a
charter school would otherwise be entitled, unless the
State Board of Education state board determines
that a greater or lesser amount is appropriate based on the criteria
specified in paragraph (1) of subdivision (a).
(4) For the 2003-04 fiscal year and each fiscal year thereafter,
the amount of funding determined by the State Board of
Education state board pursuant to this section
shall not be more than 70 percent of the unadjusted amount to which a
charter school would otherwise be entitled, unless the
State Board of Education state board determines
that a greater or lesser amount is appropriate based on the criteria
specified in paragraph (1) of subdivision (a).
(5) This section does not authorize the state board to
adjust the amount of funding a charter school receives on the basis
of average daily attendance generated through classroom-based
instruction, as defined for purposes of calculating average daily
attendance for classroom-based instruction apportionments by
paragraph (1) of subdivision (d) (e) of
Section 47612.5.
(b) (1) The State Board of Education state
board shall appoint an advisory committee to recommend
criteria to the board in accordance with this section if it has not
done so by the effective date of the act adding this section. The
advisory committee shall include, but is not limited to,
representatives from school district superintendents, charter
schools, teachers, parents, members of the governing boards of school
districts, county superintendents of schools, and the Superintendent
of Public Instruction .
(2) If a charter school submits a substantially complete request
for a determination for funding by February 13, 2002, and the
State Board of Education state board
does not act on that request by March 19, 2002, full funding is
automatically granted for the 2001-02 fiscal year, but the charter
school shall reapply for a determination for funding for the 2002-03
fiscal year.
(3) The determination for funding shall be on a percentage basis
and the superintendent Superintendent
shall implement the determination for funding by reducing the charter
school's reported average daily attendance by the determination for
funding percentage specified by the State Board of Education
state board .
(4) If the State Board of Education state
board denies a request for a determination for
funding or provides a reduction as authorized by subdivision (a), the
board shall give , in writing, give the
reasons for its denial or reduction and, if appropriate, may
describe how any deficiencies or problems may be addressed.
(c) Each charter school offering nonclassroom-based instruction
shall , in each report provided to the
Superintendent of Public Instruction for
apportionment purposes, shall identify the portion of its
average daily attendance that is generated through nonclassroom-based
instruction as defined in paragraph (2) of subdivision (d)
(e) of Section 47612.5.
(d) A charter school offering nonclassroom-based instruction and
applying for funding pursuant to Section 47614.5 shall identify, in
each report provided to the Superintendent for apportionment
purposes, the proportion of time pupils in the school are scheduled
to receive classroom-based instruction, as defined in paragraph (1)
of subdivision (e) of Section 47612.5.
(d)
(e) Notwithstanding any other provision of
law, charter schools shall be subject, with regard to
subdivisions (c) and (d) and (e) of
Section 47612.5 and this section, to audits conducted pursuant to
Section 41020.
