Bill Text: CA SB645 | 2011-2012 | Regular Session | Amended

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

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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

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BILL NUMBER: SB 645	AMENDED
	BILL TEXT

	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  47607 and 47607.5  
17183, 17199.1, 17199.3, 47607, and 47614.5  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.  
    The 
    (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  of the school's academic
success   to the state board and the Superintendent of
Public Instruction  . The bill would require the 
advisory committee that is appointed by the state board to recommend
criteria to the state board for the determination of funding for
nonclassroom-based instruction to publicly hear an application for
the determination of academic eligibility and  
Superintendent 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  adequately demonstrates that
the academic performance of the charter school meets or exceeds its
predicted performance based on a statistical evaluation of similar
pupil populations.   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. 
   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  financing 
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 
Sec.   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  may  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  which   that  have been
issued to  provide   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  governing board  , 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) Commencing on January 1, 2005, or after a charter school has
been in operation for four years, whichever date occurs later, a
charter school shall meet at least one of the following criteria
prior to receiving a charter renewal pursuant to paragraph (1) of
subdivision (a):  
   (1) Attained its Academic Performance Index (API) growth target in
the prior year or in two of the last three years, or in the
aggregate for the prior three years.  
   (2) Ranked in deciles 4 to 10, inclusive, on the API in the prior
year or in two of the last three years.  
   (3) Ranked in deciles 4 to 10, inclusive, on the API for a
demographically comparable school in the prior year or in two of the
last three years.  
   (4) (A) The entity that granted the charter determines that the
academic performance of the charter school is at least equal to the
academic performance of the public schools that the charter school
pupils would otherwise have been required to attend, as well as the
academic performance of the schools in the school district in which
the charter school is located, taking into account the composition of
the pupil population that is served at the charter school. 

   (B) The determination made pursuant to this paragraph shall be
based upon all of the following:  
   (i) Documented and clear and convincing data.  
   (ii) Pupil achievement data from assessments, including, but not
limited to, the Standardized Testing and Reporting Program
established by Article 4 (commencing with Section 60640) for
demographically similar pupil populations in the comparison schools.
 
   (iii) Information submitted by the charter school. 

   (C) A chartering authority shall submit to the Superintendent
copies of supporting documentation and a written summary of the basis
for any determination made pursuant to this paragraph. The
Superintendent shall review the materials and make recommendations to
the chartering authority based on that review. The review may be the
basis for a recommendation made pursuant to Section 47604.5.
 
   (D) A charter renewal may not be granted to a charter school prior
to 30 days after that charter school submits materials pursuant to
this paragraph.  
   (5) Has qualified for an alternative accountability system
pursuant to subdivision (h) of Section 52052.  
   (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) 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) 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.  
   (d) (1) Evidence supporting an application submitted pursuant to
subdivision (c) 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) 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) 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) 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) and is granted renewal by satisfying paragraph (5) of
subdivision (b), shall be granted renewal for only three years.
 
   (c) 
    (e)  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. 
   (d) Prior to revocation, the authority that granted the charter

    (f)     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.

   (e) Prior to 
    (g)     Before  revoking a charter for
failure to remedy a violation pursuant to subdivision  (d)
  (f)  , 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. 
   (f) 
    (h)  (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  (e)   (g)  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  (e)   (g)  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
 (e)   (g)  are supported by substantial
evidence. 
   (g) 
    (i)  (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  (e)   (g)  are
not supported by substantial evidence. 
   (h) 
    (j)  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. 
   (i) 
    (k)  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  (c)   (e)
 , 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.

   (j) 
    (l)  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. 
   (k) 
    (m)  A final decision of a revocation or appeal of a
revocation pursuant to subdivision  (c)  (e)
 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,  seven hundred
fifty dollars ($750)   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. 
   (5) No later than June 30, 2005, report to the Legislature on the
number of charter schools that have participated in the grant program
pursuant to the expanded eligibility prescribed in paragraph (2). In
addition, the report shall provide recommendations and suggestions
on improving the grant program. 
   (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  or that does not comply
with conditions or limitations set forth in regulations adopted by
the state board pursuant to this section.   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. 
   (2) Charter  schools occupying   school
facility costs associated with  existing school district or
county office of education facilities.
   (3) Charter  schools receiving   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) It is the intent of the Legislature that not less than
eighteen million dollars ($18,000,000) annually be appropriated for
purposes of the grant program on the same basis as other elementary
and secondary education categorical programs.  
   (i) 
    (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.

  SECTION 1.    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) A cumulative API growth of at least a total of 30 points over
the last three API cycles. For purposes of this paragraph, API growth
for one cycle is the difference between a current year growth API
and the prior year's base API. The growth required pursuant to this
paragraph shall not be measured as the difference between the most
recent growth API score and the growth API score from three years
prior to that score.
   (3) A rank in any decile between 6 to 10, inclusive, on the API
for a demographically comparable school in the prior year or in two
of the last three years for which demographically comparable school
ranks are available. A school that does not generate a
demographically comparable school rank is ineligible to meet this
criterion.
   (4) Participation in the alternative accountability system
pursuant to subdivision (h) of Section 52052.
   (5) Receipt of a positive determination of academic eligibility
for renewal from the state board within the prior 12 months.
   (c) (1) A charter school that does not meet at least one of the
criteria set forth in paragraphs (1) to (4), inclusive, of
subdivision (b) may apply to the state board for a determination of
academic eligibility for the renewal of its charter by submitting
evidence of the school's academic success. Evidence supporting an
application may include, but is not limited to, information on
individual pupil achievement, including longitudinal data that
demonstrate individual pupil progress, analysis of similar pupil
populations, or other relevant data as determined by the school.
   (2) The advisory committee created pursuant to subdivision (b) of
Section 47634.2 shall publicly hear an application for a
determination of academic eligibility for the renewal of a charter,
and shall make a recommendation to the state board on the
application.
   (3) The state board shall issue a positive determination of
academic eligibility if the state board finds that the charter school
adequately demonstrates that the academic performance of the charter
school meets or exceeds its predicted performance based on a
statistical evaluation of similar pupil populations.
   (d) 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.
   (e) Before revocation, the authority that granted the charter
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.
   (f) Before revoking a charter for failure to remedy a violation
pursuant to subdivision (e), 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.
   (g) (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 (f) 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 (f) 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 (f) are supported by
substantial evidence.
   (h) (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 (f) are not supported by substantial
evidence.
   (i) 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.
   (j) 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 (d), 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.
   (k) 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.
   (l) A final decision of a revocation or appeal of a revocation
pursuant to subdivision (d) shall be reported to the chartering
authority, the county board, and the department.  
  SEC. 2.    Section 47607.5 of the Education Code
is amended to read:
   47607.5.  If either a school district governing board or a county
board of education, as a chartering agency, does not grant a renewal
to a charter school pursuant to Section 47607 and the charter school
is eligible for renewal pursuant to subdivision (b) of Section 47607,
the charter school may submit its application for renewal pursuant
to the procedures pertaining to a denial of a petition for
establishment of a charter school, as provided in subdivision (j) of
Section 47605.