Senate Bill No. 897
CHAPTER 865

An act to amend Sections 48300, 48301, 48303, 48306, 48307, 48308, and 48313 of, and to repeal Sections 48315 and 48316 of, the Education Code, relating to pupil attendance.

[ Approved by Governor  September 28, 2024. Filed with Secretary of State  September 28, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 897, Newman. Pupil attendance: interdistrict attendance: school districts of choice.
(1) Existing law authorizes the governing board of a school district to accept pupils from other school districts by adopting a resolution to become a school district of choice, in accordance with various programmatic and procedural requirements and limitations, including, among other requirements and limitations, that the school district of choice accept all pupils who apply to transfer until the school district of choice is at maximum capacity, and that pupils are selected through an unbiased process, as specified.
Existing law prohibits school districts of choice from targeting their communications to individual parents or residential neighborhoods on the basis of a pupil’s or pupils’ actual or perceived academic skill or other personal characteristics.
This bill would expand that prohibition to also prohibit school districts of choice from targeting their communications to individual parents or residential neighborhoods on the basis of a pupil’s or pupils’ actual or perceived proficiency in English, family income, or their disability, gender, gender identity, gender expression, nationality, race or ethnicity, religion, sexual orientation, or any other characteristic that is contained in the definition of a hate crime, as defined.
(2) Existing law requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency, including an audit of income and expenditures by source of funds, or make arrangements with the county superintendent of schools having jurisdiction over the local educational agency to provide for that auditing. Existing law requires that audit to include compliance with the above-described provisions.
This bill would require the audit to instead include compliance with all provisions of the district of choice program.
(3) Existing law authorizes a school district of choice to reject the transfer of a pupil if the transfer of that pupil would require the school district to create a new program to serve that pupil, except that a school district of choice is prohibited from rejecting the transfer of a special needs pupil, including an individual with exceptional needs, as defined, and an English learner.
This bill would expand that prohibition to further prohibit a school district of choice from rejecting the transfer of a pupil who is a foster youth, as defined, or a homeless child or youth, as defined.
(4) Existing law requires school districts of choice to give first priority for attendance to siblings of children already in attendance in the school district, and requires school districts of choice to give second priority for attendance to pupils eligible for free or reduced-price meals.
This bill would require school districts of choice to also give second priority for attendance to pupils who are foster youth or homeless children or youth.
(5) Existing law authorizes school districts of residence with an average daily attendance greater than 50,000 to limit the number of pupils transferring out each year to 1% of its current year estimated average daily attendance. Existing law authorizes school districts of residence with an average daily attendance of 50,000 or less to limit the number of pupils transferring out to 3% of its current year estimated average daily attendance, and to limit the maximum number of pupils transferring out for the duration of the school district of choice program to 10% of the average daily attendance for that period. Existing law authorizes a school district of residence that has a negative status on the most recent budget certification completed by the county superintendent of schools in any fiscal year, regardless of its average daily attendance, to limit the number of pupils who transfer out of the district in that fiscal year.
This bill would require the 1%, 3%, and 10% transfer caps to be based off the average daily attendance as reported as of the first principal apportionment of the prior fiscal year instead of its current year estimated average daily attendance.
The bill would authorize a school district of residence with either a qualified or negative status, instead of only those with a negative status, on the most recent budget certification completed by the county superintendent of schools in any fiscal year, regardless of its average daily attendance, to limit the number of pupils who transfer out of the district in that fiscal year. The bill would require a county office of education, upon request of a school district of residence to determine the percentage of pupils transferring out of the school district of residence for the duration of the program, and would require the county office of education to request data from the school district of choice regarding the number of pupils transferring into the school district of choice. By imposing additional duties on county offices of education, the bill would impose a state-mandated local program. If the school district of choice does not provide the number of pupils transferring into the school district of choice to the county office of education within 30 days, the bill would prohibit the school district of choice from accepting new pupil transfers pursuant to the school district of choice program until the school district of choice complies with the county office of education data request.
(6) Existing law prescribes an application process for the school district of choice program that includes specified deadlines and requires, among other things, that the governing board of the school district of choice include in a written notification to the parent that the number of pupils applying to transfer exceeded the capacity of the school district of choice and that the pupil was not selected during the random drawing.
This bill would revise and recast those provisions by, among other things, (A) requiring the written notification to specify whether the number of pupils applying to transfer exceeded the capacity of the school district of choice or the specific school or program to which the pupil applied, (B) requiring the school district of choice, on or before January 15, to notify the school district of residence of the number and names of the pupils who are requesting transfers, and (C) requiring the school district of residence, on or before February 15, to notify the school district of choice of the total number and names of the pupils requesting transfers in excess of the above-described caps, as specified.
(7) Existing law establishes a public school financing system that requires state funding for county superintendents of schools, school districts, and charter schools to be calculated pursuant to a local control funding formula, as specified. Existing law requires the local control funding formula, in part, to be based on average daily attendance, as specified.
If an audit identifies a school district of choice as having accepted pupils from a school district of residence after the school district of residence has provided the notice that it has reached one of the above-described caps, this bill would require the auditor to determine the average daily attendance generated by each pupil in excess of the applicable cap whose transfer originated from the school district of residence subsequent to the notice, disaggregated by local control funding formula grade span, to calculate the portion of the school district of choice’s local control funding formula apportionment attributable to that average daily attendance, and to report that amount to the Superintendent of Public Instruction, and would require the Superintendent, notwithstanding any other law, to reduce the school district of choice’s local control funding formula apportionment each year by the amount calculated and reported by the auditor.
(8) Existing law requires each school district of choice to keep an accounting of all requests made for transfers pursuant to a school district of choice program and records of all disposition of those requests, which are required to include, among other things, the number of pupils transferred out of the school district of choice pursuant to the program, the number of pupils transferred into the school district of choice pursuant to the program, and the race, ethnicity, gender, self-reported socioeconomic status, eligibility for free or reduced-price meals, and the school district of residence of each of those pupils.
This bill would add a pupil’s foster youth status and homeless child or youth status to that required accounting.
(9) Existing law requires the Legislative Analyst’s Office to conduct a comprehensive evaluation of the school district of choice program and prepare recommendations regarding the program. Existing law requires the evaluation and recommendations to be submitted to the appropriate education policy committees of the Legislature and to the Department of Finance by September 30, 2026.
This bill would repeal those requirements.
(10) Existing law makes the school district of choice program inoperative as of July 1, 2028, and repeals its provisions as of January 1, 2029.
This bill would repeal those sunset provisions, thereby extending the school district of choice program indefinitely.
(11) This bill also would make other nonsubstantive changes.
(12) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 48300 of the Education Code is amended to read:

48300.
 For purposes of this article, the following definitions apply:
(a) “Active military duty” means full-time military duty status in the active uniformed service of the United States, including members of the National Guard and the State Reserve on active duty orders pursuant to Chapter 1209 (commencing with Section 12301) of, and Chapter 1211 (commencing with Section 12401) of, Part II of Subtitle E of Title 10 of the United States Code.
(b) “Foster youth” has the same meaning as specified in Section 42238.01.
(c) “Homeless child or youth” has the same meaning as “homeless children and youths” specified in Section 11434a(2) of Title 42 of the United States Code.
(d) “Parent” means the natural or adoptive parent or guardian of a dependent child.
(e) “School district of choice” means a school district for which a resolution is in effect as described in subdivision (a) of Section 48301.
(f) “School district of residence” means the school district that a pupil would be directed by this chapter to attend, except as otherwise provided by this article.

SEC. 2.

 Section 48301 of the Education Code is amended to read:

48301.
 (a) (1) The governing board of a school district may elect to operate the school district as a school district of choice and may accept transfers from school districts of residence pursuant to this article. If the governing board of a school district elects to accept transfers as authorized pursuant to this article, it shall, by resolution, determine and adopt the number of transfers it is willing to accept pursuant to this article and shall accept all pupils who apply to transfer until the school district of choice is at maximum capacity. The school district of choice shall ensure that pupils admitted pursuant to this article are selected through an unbiased process that prohibits an inquiry into or evaluation or consideration of whether or not a pupil should be enrolled based upon academic or athletic performance, physical condition, proficiency in English, any of the individual characteristics set forth in Section 200, and, except for purposes of determining priority for pupils eligible for free or reduced-price meals pursuant to Section 48306, family income.
(2) If the number of transfer applications exceeds the number of transfers the governing board of a school district of choice elects to accept pursuant to this article, approval for transfer pursuant to this article shall be determined by a random drawing held in public at a regularly scheduled meeting of the governing board of the school district of choice.
(b) Communications to parents by school districts of choice shall be factually accurate and not target individual parents or residential neighborhoods on the basis of a pupil’s or pupils’ actual or perceived academic or athletic skill, proficiency in English, any of the individual characteristics set forth in Section 200, or family income.
(c) A school district of choice, with respect to compliance with this article, shall be subject to the audit conducted pursuant to Section 41020.
(d) A school district of choice shall post application information on its internet website. This information shall include, at a minimum, any applicable form and the timeline for a transfer pursuant to this article. This information also shall include an explanation of the selection process the school district of choice implements pursuant to subdivision (a).
(e) A pupil attending a school in a school district of choice shall be deemed to have fulfilled the requirements of Section 48204.
(f) All communication from a school district of choice regarding the transfer opportunities pursuant to the program shall be available in all languages for which translations are required in the school district of residence pursuant to Section 48985.
(g) A school district of choice shall register as a school district of choice with both the Superintendent, in a manner specified by the Superintendent, and the county board of education where the school district of choice is located.
(h) A school district of choice shall not enroll pupils pursuant to this article until the school district has registered pursuant to subdivision (g).

SEC. 3.

 Section 48303 of the Education Code is amended to read:

48303.
 (a) The school district of choice shall not prohibit a transfer of a pupil pursuant to this article based upon a determination by the governing board of that school district that the additional cost of educating the pupil would exceed the amount of additional state aid received as a result of the transfer. A school district of choice may reject the transfer of a pupil if the transfer of that pupil would require that school district to create a new program to serve that pupil, except that a school district of choice shall not reject the transfer of a special needs pupil, including an individual with exceptional needs, as defined in Section 56026, an English learner, a foster youth, or a homeless child or youth.
(b) This section is intended to ensure that pupils in special education, or who are bilingual, English learners, foster youth, or homeless children or youth, are not discriminated against by the school district of choice because of the costs associated with educating those pupils. Pupils with special needs may take full advantage of the choice options available under this section.

SEC. 4.

 Section 48306 of the Education Code is amended to read:

48306.
 (a) A school district of choice shall give first priority for attendance to siblings of children already in attendance in that district.
(b) A school district of choice shall give second priority for attendance to pupils eligible for free or reduced-price meals, and pupils who are foster youth or homeless children or youth.
(c) A school district of choice shall give third priority for attendance to children of military personnel.

SEC. 5.

 Section 48307 of the Education Code is amended to read:

48307.
 (a) A school district of residence with an average daily attendance greater than 50,000 may limit the number of pupils transferring to a school district of choice pursuant to this article each year to 1 percent of its average daily attendance, as reported as of the first principal apportionment for the prior fiscal year.
(b) (1) A school district of residence with an average daily attendance of 50,000 or less may limit the number of pupils transferring to a school district of choice pursuant to this article each year to 3 percent of its average daily attendance, as reported as of the first principal apportionment for the prior fiscal year, and may limit the maximum number of pupils transferring out for the duration of the program authorized by this article to 10 percent of the average daily attendance for that period.
(2) (A) Upon the request of a school district of residence, the county office of education shall determine the percentage of pupils transferring out of the school district of residence for the duration of the program pursuant to paragraph (1).
(B) The county office of education shall request data from the school district of choice regarding the number of pupils transferring into the school district of choice.
(C) Notwithstanding subdivision (a) of Section 48301, if the school district of choice does not provide the number of pupils transferring into the school district of choice to the county office of education within 30 days, the school district of choice is prohibited from accepting new pupil transfers pursuant to this article until the school district of choice complies with the county office of education data request.
(D) Within 60 days of receiving the determination from the county office of education that the 10-percent cap has been reached, a school district of residence shall issue a letter to the county office of education and the school district of choice notifying them that the 10-percent cap has been reached and that further pupil transfers are prohibited.
(c) (1) If, pursuant to the audit described in Section 48301, a school district of choice is identified as having accepted pupils from a school district of residence pursuant to this article after a school district of residence has provided a notice pursuant to subparagraph (D) of paragraph (2) of subdivision (b) of this section or subparagraph (A) of paragraph (2) of subdivision (c) of Section 48308 that it has reached a limit specified in subdivision (a) or (b), as applicable, of this section, all of the following shall occur:
(A) The auditor shall determine the average daily attendance generated by each pupil in excess of the applicable cap whose transfer originated from the school district of residence subsequent to the notice, disaggregated by local control funding formula grade span.
(B) The auditor shall calculate the portion of the school district of choice’s local control funding formula apportionment attributable to the average daily attendance determined pursuant to subparagraph (A) and report that amount to the Superintendent.
(C) Notwithstanding any other law, the Superintendent shall reduce the school district of choice’s local control funding formula apportionment each year by the amount calculated and reported by the auditor.
(2) Pupils admitted to a school district of choice pursuant to this article before any audit findings pursuant to paragraph (1) may continue to attend that school district pursuant to this article.
(d) A school district of residence that has a qualified or negative status on the most recent budget certification completed by the county superintendent of schools in any fiscal year may limit the number of pupils who transfer out of the district in that fiscal year.
(e) Notwithstanding any prior or existing certification of a school district of residence pursuant to Article 3 (commencing with Section 42130) of Chapter 6 of Part 24, if a county superintendent of schools determines that a school district of residence would not meet the standards and criteria for fiscal stability specified in Section 42131 for the subsequent fiscal year exclusively due to the impact of additional pupil transfers pursuant to this article in that year, the school district of residence may limit the number of additional pupils who transfer in the upcoming school year pursuant to this article up to the number that the county superintendent of schools identifies beyond which number of additional transfers would result in a qualified or negative certification in that year exclusively as a result of additional transfers pursuant to this article.
(f) A school district of residence, upon receiving notification of a pupil’s acceptance into the school district of choice, may prohibit the transfer of a pupil pursuant to this article or limit the number of pupils so transferred if the governing board of the school district of residence determines that the transfer would negatively impact any of the following:
(1) The court-ordered desegregation plan of the school district of residence.
(2) The voluntary desegregation plan of the school district of residence, consistent with the provisions of Proposition 209, an initiative measure adopted by the voters at the November 5, 1996, statewide general election.
(3) The racial and ethnic balance of the school district of residence, consistent with the provisions of Proposition 209, an initiative measure adopted by the voters at the November 5, 1996, statewide general election.
(g) Notwithstanding any other provision of this article, a school district of residence shall not prohibit the transfer of a pupil who is a child of an active military duty parent.
(h) A school district of residence shall not adopt policies that in any way block or discourage pupils from applying for transfer to a school district of choice.
(i) Notwithstanding any other provision of this article, a pupil attending a school district of choice, or a pupil who received a notice of acceptance into a school district of choice before the school district of residence restricted further transfers pursuant to subdivision (d) or (e), shall be permitted to attend the school district of choice.

SEC. 6.

 Section 48308 of the Education Code is amended to read:

48308.
 (a) (1) An application requesting a transfer pursuant to this article shall be submitted by the parent of a pupil to the school district of choice before January 1 of the school year preceding the school year for which the pupil is requesting to be transferred. This application deadline may be waived upon agreement of the school district of residence of the pupil and the school district of choice.
(2) The application deadline specified in paragraph (1) does not apply to an application requesting a transfer if the parent of the pupil with whom the pupil resides is enlisted in the military and was relocated by the military less than 90 days before submitting the application.
(b) The application may be submitted on a form provided for this purpose by the department, and may request enrollment of the pupil in a specific school or program of the school district of choice.
(c) (1) By no later than January 15, the school district of choice shall notify the school district of residence of the number and names of pupils from the school district of residence who are requesting to be transferred for the following school year, by school and grade level.
(2) (A) By no later than February 15, the school district of residence shall notify the school district of choice of the total number and names of pupils requesting to be transferred to school districts of choice in excess of the limits specified in subdivision (a) or (b), as applicable, of Section 48307, if applicable.
(B) The notification shall include the maximum pupil yields pursuant to subdivision (a) or (b), as applicable, of Section 48307, the name of each school district of choice that pupils are requesting to be transferred, and the number of pupil transfer requests for each school district of choice.
(3) By no later than March 1 of the school year preceding the school year for which the pupil is requesting to be transferred, the governing board of the school district of choice shall notify the parent in writing whether the application has been provisionally accepted or rejected, or of the placement of the pupil on a waiting list. The governing board of the school district of choice may fill vacancies from the waiting list until May 1 preceding the school year for which the pupil is requesting to be transferred. No pupils shall be accepted at a school district of choice after May 1 preceding the school year for which the pupil is requesting to be transferred.
(4) On or before May 1, the school district of choice shall provide the school district of residence with the final number of pupils to be enrolled in the school district of choice, disaggregated by school, grade level, and pupil name.
(5) If the application is rejected, the governing board of the school district of choice shall include in the written notification to the parent that the number of pupils applying to transfer exceeded the capacity of the school district of choice or the specific school or program to which the pupil applied and that the pupil was not selected during the random drawing. The determination shall be accurately recorded in the minutes of the governing board meeting in which the determination was made.
(6) (A) Notwithstanding paragraph (3), the governing board of a school district of choice shall, not later than 90 days after receipt of an application submitted according to paragraph (2) of subdivision (a), make a final acceptance or rejection of that application. A pupil may enroll in a school in the school district of choice immediately upon the pupil’s acceptance.
(B) If an application submitted according to paragraph (2) of subdivision (a) is submitted less than 90 days before the beginning of the school year for which the pupil seeks to be transferred, the governing board of the school district of choice shall accept or deny the application before the commencement of the school year. A pupil may enroll in a school in the school district of choice immediately upon the pupil’s acceptance.
(d) Final acceptance of the transfer is applicable for one school year and will be renewed automatically each year unless the school district of choice, through the adoption of a resolution, elects to no longer accept any transfer pupils pursuant to this article. However, if a school district of choice elects to no longer accept pupils under this article, high school pupils admitted under this article may continue to attend the same school in the school district of choice until they graduate from high school.

SEC. 7.

 Section 48313 of the Education Code is amended to read:

48313.
 (a) (1) Pursuant to this article, each school district of choice shall keep an accounting of all requests made for transfers pursuant to this article and records of all disposition of those requests that shall include, but are not limited to, all of the following:
(A) The number of requests granted, denied, or withdrawn. In the case of denied requests, the records shall indicate the reasons for the denials.
(B) The number of pupils transferred out of the school district of choice pursuant to this article.
(C) The number of pupils transferred into the school district of choice pursuant to this article.
(D) The race, ethnicity, gender, self-reported socioeconomic status, eligibility for free or reduced-price meals, foster youth status, homeless child or youth status, and the school district of residence of each of the pupils described in subparagraphs (B) and (C).
(E) The number of pupils described in subparagraphs (B) and (C) who are classified as English learners or identified as individuals with exceptional needs, as defined in Section 56026.
(2) If the school district of choice provides transportation to pupils pursuant to Section 48311, the school district of choice shall keep an accounting of the number of pupils as described in subparagraphs (D) and (E) of paragraph (1) transported pursuant to Section 48311 and the total number of pupils transported under this article.
(b) The information maintained pursuant to subdivision (a) shall be reported to the governing board of the school district of choice at a regularly scheduled meeting of the governing board of the school district of choice. By no later than October 15 of each year, the school district of choice shall report the information maintained pursuant to subdivision (a) for the current school year in addition to information regarding the school district’s status as a school district of choice for the upcoming school year to each school district that is geographically adjacent to the school district of choice, to the county office of education in which the school district of choice is located, and, in a manner specified by the Superintendent, to the Superintendent.
(c) A school district of choice shall not enroll a pupil under this article if the school district does not report all the data required pursuant to subdivision (b).
(d) The Superintendent shall do all of the following:
(1) Maintain a list of the school districts of choice in the state.
(2) Collect the information specified in subdivision (a) from each school district of choice. The Superintendent shall ensure school districts of choice provide this information in a complete format and shall not create a new field in the California Longitudinal Pupil Achievement Data System for this purpose. The Superintendent may provide a template for school districts of choice to use and may issue guidance regarding the procedures for collecting and reporting data.
(3) Post the information collected under paragraphs (1) and (2) on the department’s internet website. The Superintendent shall make this information available upon request to any school district.
(4) Post a single list of all school choice programs, including, but not limited to, school districts of choice, on the department’s internet website.
(e) It is the intent of the Legislature that the Superintendent collect data in a manner that minimizes the administrative burden on school districts and the state.
(f) The Superintendent annually shall make all of the following information available to the appropriate fiscal and policy committees of the Legislature, the Department of Finance, and the Legislative Analyst’s Office:
(1) The number and characteristics of pupils who use the school district of choice option pursuant to this article.
(2) Assessment scores of school districts of choice and school districts of residence pursuant to subdivision (b) of Section 60640.
(3) The graduation rates of school districts of residence and school districts of choice.
(4) The enrollment of school districts of residence and school districts of choice for the previous five years.
(5) The fiscal health of school districts of residence and school districts of choice, including, but not limited to, both of the following:
(A) Increasing or declining enrollment.
(B) Whether a school district received a negative or qualified rating pursuant to Section 42131.
(6) Whether a school district of residence has exceeded the transfer limits specified in Section 48307.
(7) The number of pupils described in subparagraphs (D) and (E) of paragraph (1) of subdivision (a) transported pursuant to this article pursuant to Section 48311.

SEC. 8.

 Section 48315 of the Education Code is repealed.

SEC. 9.

 Section 48316 of the Education Code is repealed.

SEC. 10.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.