BILL NUMBER: AB 1172	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Mendoza

                        FEBRUARY 18, 2011

    An act relating to elementary and secondary education.
  An act to amend Sections 47604.5, 47605, 47605.5,
47607, 47613, 47641, and 47651 of, to add Section 47609 to, and to
repeal Sections 47605.6, 47605.8, and 47607   .5 of, the
Education Code, relating to charter schools. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1172, as amended, Mendoza.  Elementary and secondary
education.   Charter schools: petition for
establishment: decision to grant or deny: appeal.  
   Existing law requires that within 60 days of receipt of a petition
for the establishment of a charter school, a governing board of a
school district shall either grant or deny the charter, as specified.
Existing law provides that the governing board of a school district
shall not deny a petition unless it makes written factual findings in
support of one or more specified findings.  
   This bill would include the finding that the charter school would
have a negative fiscal impact on the school district, as specified,
among those findings upon which a school district may base denial of
a petition for the establishment of a charter school.  
   Existing law provides that if the governing board of a school
district denies a petition for the establishment of a charter school,
the petitioner may elect to submit the petition to the county board
of education which may grant or deny the petition.  
   This bill would instead provide that a petitioner may appeal the
denial of a petition for the establishment of a charter school by the
governing board of a school district to the county board of
education, which may consider the appeal only if the appeal alleges
that the school district governing board committed a procedural
violation in reviewing the petition. The bill would provide that if a
county board of education finds, by substantial evidence, that the
school district governing board committed a procedural violation in
reviewing the petition, the county board of education shall remand
the petition to the school district.  
   Existing law provides that a petition to establish a charter
school may be submitted directly to a county board of education for
charter schools that will serve pupils for whom the county office of
education would otherwise be responsible for providing direct
education and related services.  
   This bill would provide that a petitioner may appeal the denial of
a petition for the establishment of a charter school by the county
board of education to the State Board of Education, which may
consider the appeal only if the appeal alleges that the county board
of education committed a procedural violation in reviewing the
petition. The bill would provide that if the state board finds, by
substantial evidence, that the county board of education committed a
procedural violation in reviewing the petition, the state board shall
remand the petition to the county board of education.  
   Existing law provides that a county board of education may approve
a petition for the operation of a charter school that operates at
one or more sites within the geographic boundaries of the county and
that provides instructional services that are not generally provided
by a county office of education. Existing law also provides that a
petition for the operation of a state charter school may be submitted
directly to the state board, and the state board shall have the
authority to approve a charter for the operation of a state charter
school that may operate at multiple sites throughout the state.
Existing law also authorizes the state board to adopt regulations for
the implementation of this provision.  
   This bill would repeal those provisions.  
   This bill would require the Legislative Analyst, on or before July
1, 2016, to submit a report to the Legislature on the best practices
and lessons learned from charter school innovation and distribute it
to all local educational agencies, to the appropriate education
policy committees of the Legislature, and to the Governor.  

   This bill would make other conforming changes.  
   Existing law establishes the system of public elementary and
secondary education in this state. Existing law authorizes local
educational agencies to provide instruction and other services to
pupils at schoolsites throughout the state.  
   This bill would express the intent of the Legislature to enact
legislation relating to the improvement of elementary and secondary
education in this state. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 47604.5 of the  
Education Code   is amended to read: 
   47604.5.  The  State Board of Education  
, whether or not it is the authority that granted the charter,
  state board  may, based upon the recommendation
of the Superintendent  of Public Instruction  , take
appropriate action, including, but not limited to, revocation of the
school's charter, when the  State Board of Education
  state board  finds any of the following:
   (a) Gross financial mismanagement that jeopardizes the financial
stability of the charter school.
   (b) Illegal or substantially improper use of charter school funds
for the personal benefit of any officer, director, or fiduciary of
the charter school.
   (c) Substantial and sustained departure from measurably successful
practices such that continued departure would jeopardize the
educational development of the school's pupils.
   SEC. 2.    Section 47605 of the   Education
Code   is amended to read: 
   47605.  (a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school may
propose to operate at multiple sites within the school district, as
long as each location is identified in the charter school petition.
The petition may be submitted to the governing board of the school
district for review after either of the following conditions are met:

   (A) The petition has been signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in the
school for its first year of operation.
   (B) The petition has been signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.
   (2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant to
subdivision (b) of Section 41365 may be circulated by one or more
persons seeking to establish the charter school. The petition may be
submitted to the governing board of the school district for review
after the petition has been signed by not less than 50 percent of the
permanent status teachers currently employed at the public school to
be converted.
   (3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
   (4) After receiving approval of its petition, a charter school
that proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify
the authority that granted its charter of those additional locations.
The authority that granted its charter shall consider whether to
approve those additional locations at an open, public meeting. If the
additional locations are approved, they shall be a material revision
to the charter school's charter.
   (5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district
within the jurisdiction of which the charter school proposes to
operate is notified in advance of the charter petition approval, the
county superintendent of schools and the Superintendent are notified
of the location of the charter school before it commences operations,
and either of the following circumstances exist:
   (A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.
   (B) The site is needed for temporary use during a construction or
expansion project.
   (6) Commencing January 1, 2003, a petition to establish a charter
school may not be approved to serve pupils in a grade level that is
not served by the school district of the governing board considering
the petition, unless the petition proposes to serve pupils in all of
the grade levels served by that school district.
   (b) No later than 30 days after receiving a petition, in
accordance with subdivision (a), the governing board of the school
district shall hold a public hearing on the provisions of the
charter, at which time the governing board of the school district
shall consider the level of support for the petition by teachers
employed by the district, other employees of the district, and
parents. Following review of the petition and the public hearing, the
governing board of the school district shall either grant or deny
the charter within 60 days of receipt of the petition, provided,
however, that the date may be extended by an additional 30 days if
both parties agree to the extension. In reviewing petitions for the
establishment of charter schools pursuant to this section, the
chartering authority shall be guided by the intent of the Legislature
that charter schools are and should become an integral part of the
California educational system and that establishment of charter
schools should be encouraged. The governing board of the school
district shall grant a charter for the operation of a school under
this part if it is satisfied that granting the charter is consistent
with sound educational practice. The governing board of the school
district shall not deny a petition for the establishment of a charter
school unless it makes written factual findings, specific to the
particular petition, setting forth specific facts to support one or
more of the following findings:
   (1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
   (2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
   (3) The petition does not contain the number of signatures
required by subdivision (a).
   (4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
   (5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
   (A) (i) A description of the educational program of the school,
designed, among other things, to identify those whom the school is
attempting to educate, what it means to be an "educated person" in
the 21st century, and how learning best occurs. The goals identified
in that program shall include the objective of enabling pupils to
become self-motivated, competent, and lifelong learners.
   (ii) If the proposed school will serve high school pupils, a
description of the manner in which the charter school will inform
parents about the transferability of courses to other public high
schools and the eligibility of courses to meet college entrance
requirements. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges may be
considered transferable and courses approved by the University of
California or the California State University as creditable under the
"A" to "G" admissions criteria may be considered to meet college
entrance requirements.
   (B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school's educational program.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured.
   (D) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
   (E) The qualifications to be met by individuals to be employed by
the school.
   (F) The procedures that the school will follow to ensure the
health and safety of pupils and staff. These procedures shall include
the requirement that each employee of the school furnish the school
with a criminal record summary as described in Section 44237.
   (G) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
   (H) Admission requirements, if applicable.
   (I) The manner in which annual, independent financial audits shall
be conducted, which shall employ generally accepted accounting
principles, and the manner in which audit exceptions and deficiencies
shall be resolved to the satisfaction of the chartering authority.
   (J) The procedures by which pupils can be suspended or expelled.
   (K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
   (L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.
   (M) A description of the rights of any employee of the school
district upon leaving the employment of the school district to work
in a charter school, and of any rights of return to the school
district after employment at a charter school.
   (N) The procedures to be followed by the charter school and the
entity granting the charter to resolve disputes relating to
provisions of the charter.
   (O) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for the purposes of Chapter 10.7 (commencing with
Section 3540) of Division 4 of Title 1 of the Government Code.
   (P) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
school to determine the disposition of all assets and liabilities of
the charter school, including plans for disposing of any net assets
and for the maintenance and transfer of pupil records. 
   (6) The charter school would have a negative fiscal impact on the
school district. For the purpose of this paragraph, the finding that
a charter school would have a negative fiscal impact on a school
district may only be established, and is deemed to be established, if
any of the following conditions are met:  
   (A) The school district has received a qualified or negative
financial certification pursuant to Section 42131.  
   (B) The school district demonstrates fiscal distress through the
application of the standards and criteria adopted pursuant to Section
33127 for the development of annual budgets and the management of
subsequent expenditures from annual budgets.  
   (C) The school district applies for an emergency apportionment or
loan, or has received an emergency apportionment or loan and is
operating under the oversight of a state administrator or trustee
pursuant to Article 2 (commencing with Section 41320) or Article 2.5
(commencing with Section 41325) of Chapter 3 of Part 24.  
   (D) The school district, due to the declining enrollment of
pupils, is in the process of closing a school that a charter school
petition has identified as the proposed site for its charter school.

   (c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605 and
60851 and any other statewide standards authorized in statute or
pupil assessments applicable to pupils in noncharter public schools.
   (2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the school's
educational programs.
   (d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of the characteristics listed in Section 220.
Except as provided in paragraph (2), admission to a charter school
shall not be determined according to the place of residence of the
pupil, or of his or her parent or legal guardian, within this state,
except that an existing public school converting partially or
entirely to a charter school under this part shall adopt and maintain
a policy giving admission preference to pupils who reside within the
former attendance area of that public school.
   (2) (A) A charter school shall admit all pupils who wish to attend
the school.
   (B) However, if the number of pupils who wish to attend the
charter school exceeds the school's capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing. Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
district except as provided for in Section 47614.5. Other preferences
may be permitted by the chartering authority on an individual school
basis and only if consistent with the law.
   (C) In the event of a drawing, the chartering authority shall make
reasonable efforts to accommodate the growth of the charter school
and in no event shall take any action to impede the charter school
from expanding enrollment to meet pupil demand.
   (3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil's last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record of
the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject to
compulsory full-time education pursuant to Section 48200.
   (e) The governing board of a school district shall not require any
employee of the school district to be employed in a charter school.
   (f) The governing board of a school district shall not require any
pupil enrolled in the school district to attend a charter school.
   (g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the school, including,
but not limited to, the facilities to be  utilized 
 used  by the school, the manner in which administrative
services of the school are to be provided, and potential civil
liability effects, if any, upon the school and upon the school
district. The description of the facilities to be used by the charter
school shall specify where the school intends to locate. The
petitioner or petitioners shall also be required to provide financial
statements that include a proposed first-year operational budget,
including startup costs, and cashflow and financial projections for
the first three years of operation.
   (h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032 as it read prior to July 19, 2006.
   (i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide
written notice of that approval, including a copy of the petition, to
the  applicable  county superintendent of schools,
the department, and the state board.
   (j) (1)  If the governing board of a school district
denies a petition, the petitioner may elect to submit the petition
for the establishment of a charter school to the county board of
education. The county board of education shall review the petition
pursuant to subdivision (b). If the petitioner elects to submit a
petition for establishment of a charter school to the county board of
education and the county board of education denies the petition, the
petitioner may file a petition for establishment of a charter school
with the state board, and the state board may approve the petition,
in accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from the
state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be subject
if it received approval from the entity to which it originally
submitted its petition.A charter petition that is submitted to either
a county board of education or to the state board shall meet all
otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.   If   the governing board of a
school district denies a petition, the petitioner may appeal that
denial to the county board of education.   The  
county board of education may consider an appeal pursuant to this
subdivision only if the appeal alleges that the   governing
board of the   school district committed a procedural
violation under this part in reviewing the petition. If  
the   county   board of education finds, by
substantial evidence, that the   governing board of the
  school district committed a procedural violation under
this part in reviewing the petition, the county board shall remand
the petition to the school district.  
   (2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision (b) and shall define "reasonably
comprehensive" as used in paragraph (5) of subdivision (b) in a way
that is consistent with the intent of this part. Upon satisfactory
completion of the criteria, the state board shall adopt the criteria
on or before June 30, 2001.  
   (3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.  
   (4) If either 
    (2)     If  the county board of
education  or the state board  fails to act on
 a petition  an appeal  within 120 days of
receipt, the decision of the governing board of the school district
to deny a petition shall, thereafter, be subject to judicial review.

   (5) The state board shall adopt regulations implementing this
subdivision.  
   (6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the department
and the state board.  
   (k) (1) The state board may, by mutual agreement, designate its
supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is located or to the governing
board of the school district that first denied the petition.
 
   (2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with the
state board.  
   (3) A charter school that has been granted its charter through an
appeal to the state board and elects to seek renewal of its charter
shall, prior to expiration of the charter, submit its petition for
renewal to the governing board of the school district that initially
denied the charter. If the governing board of the school district
denies the school's petition for renewal, the school may petition the
state board for renewal of its charter.  
   (  l  )
    (k)    Teachers in charter schools shall hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained on
file at the charter school and are subject to periodic inspection by
the chartering authority. It is the intent of the Legislature that
charter schools be given flexibility with regard to noncore,
noncollege preparatory courses. 
   (m) 
    (l)  A charter school shall transmit a copy of its
annual, independent financial audit report for the preceding fiscal
year, as described in subparagraph (I) of paragraph (5) of
subdivision (b), to its chartering entity, the Controller, the county
superintendent of schools of the county in which the charter school
is sited,  unless the county board of education of the county
in which the charter school is sited is the chartering entity,
 and the department by December 15 of each year. This
subdivision does not apply if the audit of the charter school is
encompassed in the audit of the chartering entity pursuant to Section
41020.
   SEC. 3.    Section 47605.5 of the  
Education Code   is amended to read: 
   47605.5.   (a)    A petition may be submitted
directly to a county board of education in the same manner as set
forth in Section 47605 for charter schools that will serve pupils for
whom the county office of education would otherwise be responsible
for providing direct education and related services.  Any
denial of a petition shall be subject to the same process for any
other county board of education denial of a charter school petition
pursuant to this part.   A charter school for which a
charter is granted by the county board of education shall qualify
fully as a charter school for all funding and other purposes of this
part.  
   (b) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the
department and the state board.  
   (c) If the county board of education denies the petition, the
petitioner may appeal that denial to the state board. The state board
may consider an appeal pursuant to this section only if the appeal
alleges that the county board of education committed a procedural
violation under this part in reviewing the petition. If the state
board finds, by substantial evidence, that the county board of
education committed a procedural violation under this part in
reviewing the petition, the state board shall remand the petition to
the county board of education. If the state board fails to act on an
appeal within 120 days of receipt, the decision of the county board
to deny a petition shall, thereafter, be subject to judicial review.

   SEC. 4.    Section 47605.6 of the  
Education Code   is repealed.  
   47605.6.  (a) (1) In addition to the authority provided by Section
47605.5, a county board of education may also approve a petition for
the operation of a charter school that operates at one or more sites
within the geographic boundaries of the county and that provides
instructional services that are not generally provided by a county
office of education. A county board of education may only approve a
countywide charter if it finds, in addition to the other requirements
of this section, that the educational services to be provided by the
charter school will offer services to a pupil population that will
benefit from those services and that cannot be served as well by a
charter school that operates in only one school district in the
county. A petition for the establishment of a countywide charter
school pursuant to this subdivision may be circulated throughout the
county by any one or more persons seeking to establish the charter
school. The petition may be submitted to the county board of
education for review after either of the following conditions are
met:
   (A) The petition has been signed by a number of parents or
guardians of pupils residing within the county that is equivalent to
at least one-half of the number of pupils that the charter school
estimates will enroll in the school for its first year of operation
and each of the school districts where the charter school petitioner
proposes to operate a facility has received at least 30 days notice
of the petitioner's intent to operate a school pursuant to this
section.
   (B) The petition has been signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation and each of the school districts where the
charter school petitioner proposes to operate a facility has received
at least 30 days notice of the petitioner's intent to operate a
school pursuant to this section.
                                   (2) An existing public school may
not be converted to a charter school in accordance with this section.

   (3) After receiving approval of its petition, a charter school
that proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board shall consider whether to approve those additional locations at
an open, public meeting, held no sooner than 30 days following
notification of the school districts where the sites will be located.
If approved, the location of the approved sites shall be a material
revision of the school's approved charter.
   (4) A petition shall include a prominent statement indicating that
a signature on the petition means that the parent or guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
   (b) No later than 60 days after receiving a petition, in
accordance with subdivision (a), the county board of education shall
hold a public hearing on the provisions of the charter, at which time
the county board of education shall consider the level of support
for the petition by teachers, parents or guardians, and the school
districts where the charter school petitioner proposes to place
school facilities. Following review of the petition and the public
hearing, the county board of education shall either grant or deny the
charter within 90 days of receipt of the petition. However, this
date may be extended by an additional 30 days if both parties agree
to the extension. A county board of education may impose any
additional requirements beyond those required by this section that it
considers necessary for the sound operation of a countywide charter
school. A county board of education may grant a charter for the
operation of a school under this part only if the board is satisfied
that granting the charter is consistent with sound educational
practice and that the charter school has reasonable justification for
why it could not be established by petition to a school district
pursuant to Section 47605. The county board of education shall deny a
petition for the establishment of a charter school if the board
finds, one or more of the following:
   (1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
   (2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
   (3) The petition does not contain the number of signatures
required by subdivision (a).
   (4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
   (5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
   (A) (i) A description of the educational program of the school,
designed, among other things, to identify those pupils whom the
school is attempting to educate, what it means to be an "educated
person" in the 21st century, and how learning best occurs. The goals
identified in that program shall include the objective of enabling
pupils to become self-motivated, competent, and lifelong learners.
   (ii) If the proposed charter school will enroll high school
pupils, a description of the manner in which the manner in which the
charter school will inform parents regarding the transferability of
courses to other public high schools. Courses offered by the charter
school that are accredited by the Western Association of Schools and
Colleges may be considered to be transferable to other public high
schools.
   (iii) If the proposed charter school will enroll high school
pupils, information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses approved
by the University of California or the California State University as
satisfying their prerequisites for admission may be considered as
meeting college entrance requirements for purposes of this clause.
   (B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school's educational program.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured.
   (D) The location of each charter school facility that the
petitioner proposes to operate.
   (E) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
   (F) The qualifications to be met by individuals to be employed by
the school.
   (G) The procedures that the school will follow to ensure the
health and safety of pupils and staff. These procedures shall include
the requirement that each employee of the school furnish the school
with a criminal record summary as described in Section 44237.
   (H) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
   (I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by the
State Board of Education, and the manner in which audit exceptions
and deficiencies shall be resolved.
   (J) The procedures by which pupils can be suspended or expelled.
   (K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
   (L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.
   (M) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for the purposes of the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).
   (N) Admission requirements, of the charter school, if applicable.
   (O) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.
   (P) A description of the rights of an employee of the county
office of education, upon leaving the employment of the county office
of education, to be employed by the charter school, and a
description of any rights of return to the county office of education
that an employee may have upon leaving the employ of the charter
school.
   (Q) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
school to determine the disposition of all assets and liabilities of
the charter school, including plans for disposing of any net assets
and for the maintenance and transfer of public records.
   (6) Any other basis that the board finds justifies the denial of
the petition.
   (c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school's operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.
   (d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605 and
any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.
   (2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the school's educational programs.
   (e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, or
disability. Except as provided in paragraph (2), admission to a
charter school shall not be determined according to the place of
residence of the pupil, or of his or her parent or guardian, within
this state.
   (2) (A) A charter school shall admit all pupils who wish to attend
the school.
   (B) However, if the number of pupils who wish to attend the
charter school exceeds the school's capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing. Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
county except as provided for in Section 47614.5. Other preferences
may be permitted by the chartering authority on an individual school
basis and only if consistent with the law.
   (C) In the event of a drawing, the county board of education shall
make reasonable efforts to accommodate the growth of the charter
school and, in no event, shall take any action to impede the charter
school from expanding enrollment to meet pupil demand.
   (f) No county board of education shall require any employee of the
county or a school district to be employed in a charter school.
   (g) No county board of education shall require any pupil enrolled
in a county program to attend a charter school.
   (h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the school, including, but not
limited to, the facilities to be utilized by the school, the manner
in which administrative services of the school are to be provided,
and potential civil liability effects, if any, upon the school, any
school district where the charter school may operate and upon the
county board of education. The petitioner or petitioners shall also
be required to provide financial statements that include a proposed
first-year operational budget, including startup costs, and cashflow
and financial projections for the first three years of operation.
   (i) In reviewing petitions for the establishment of charter
schools within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low-achieving pursuant to
the standards established by the State Department of Education under
Section 54032.
   (j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent of Public Instruction
and to the State Board of Education.
   (k) If a county board of education denies a petition, the
petitioner may not elect to submit the petition for the establishment
of the charter school to the State Board of Education.
   ( l  ) Teachers in charter schools shall be
required to hold a Commission on Teacher Credentialing certificate,
permit, or other document equivalent to that which a teacher in other
public schools would be required to hold. These documents shall be
maintained on file at the charter school and shall be subject to
periodic inspection by the chartering authority.
   (m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to the County Office of Education, State Controller and the State
Department of Education by December 15 of each year. This subdivision
shall not apply if the audit of the charter school is encompassed in
the audit of the chartering entity pursuant to Section 41020.
   SEC. 5.    Section 47605.8 of the  
Education Code   is repealed.  
   47605.8.  (a) A petition for the operation of a state charter
school may be submitted directly to the state board, and the state
board shall have the authority to approve a charter for the operation
of a state charter school that may operate at multiple sites
throughout the state. The State Board of Education shall adopt
regulations, pursuant to the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code) for the implementation of this section.
Regulations adopted pursuant to this section shall ensure that a
charter school approved pursuant to this section meets all
requirements otherwise imposed on charter schools pursuant to this
part, except that a state charter school approved pursuant to this
section shall not be subject to the geographic and site limitations
otherwise imposed on charter schools. The petitioner shall submit a
copy of the petition, for notification purposes, to the county
superintendent of schools of each county in which the petitioner
proposes to operate the state charter school. The petitioner also
shall ensure that the governing board of each school district in
which a site is proposed to be located is notified no later than 120
days prior to the commencement of instruction at each site, as
applicable.
   (b) The state board shall not approve a petition for the operation
of a state charter school pursuant to this section unless the state
board makes a finding, based on substantial evidence, that the
proposed state charter school will provide instructional services of
statewide benefit that cannot be provided by a charter school
operating in only one school district, or only in one county. The
finding of the state board in this regard shall be made part of the
public record of the proceedings of the state board and shall precede
the approval of the charter.
   (c) The state board, as a condition of charter petition approval,
may enter into an agreement with a third party, at the expense of the
charter school, to oversee, monitor, and report on, the operations
of the state charter school. The state board may prescribe the
aspects of the operations of the state charter school to be monitored
by the third party and may prescribe appropriate requirements
regarding the reporting of information concerning the operations of
the state charter school to the state board.
   (d) The state board shall not be required to approve a petition
for the operation of a state charter school, and may deny approval
based on any of the reasons set forth in subdivision (b) of Section
47605.6. 
   SEC. 6.    Section 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 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.   Except as
provided in paragraph (1) of subdivision (k) of Section 47605, as it
read on January 1, 2011, with regard to a charter granted by the
state board prior to January 1, 2012, the authority that granted the
charter shall oversee the charter until the charter is up for
renewal.  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. 
   (A) A charter granted by a school district governing board or a
county board of education may be granted one or more subsequent
renewals by that entity.  
   (B) A charter granted by a county board of education prior to
January 1, 2012, for any charter school other than one that serves
pupils for whom the county office of education would otherwise be
responsible for providing direct education and related services may
be granted one or more subsequent renewals by the governing board of
the school district in which the school is located.  
   (C) A charter granted by the state board prior to January 1, 2012,
may be granted one or more subsequent renewals by the governing
board of the school district in which the school is located. 
   (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)  of
Chapter 5 of Part 33  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.
   (c) 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
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 revoking a charter for failure to remedy a violation
pursuant to subdivision (d), 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) (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 and
remand   the request for renewal to the school district
governing board  if the county board determines that the
findings made by the chartering authority under subdivision (e) 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) 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) are supported by
substantial evidence. 
   (g) (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  and
remand   the request for renewal to the county board of
education  if the state board determines that the findings made
by the chartering authority under subdivision (e) are not supported
by substantial evidence.
   (h) If the revocation decision of the chartering authority is
reversed on appeal  , the agency that granted the charter
  and the request for renewal is remanded to the school
district governing board   or   the county board of
education, that   entity  shall continue to be
regarded as the chartering authority.
   (i) 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), 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) Immediately following the decision of
a county board to reverse a decision of a school district to revoke a
charter  and to remand the request for renewal to the school
district governing board  , 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) A final decision of a revocation or appeal of a revocation
pursuant to subdivision (c) shall be reported to the chartering
authority, the county board, and the department.
   SEC. 7.    Section 47607.5 of the  
Education Code   is repealed.  
   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, 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. 
   SEC. 8.    Section 47609 is added to the  
Education Code   , to read:  
   47609.  On or before July 1, 2016, the Legislative Analyst shall
submit a report to the Legislature on the best practices and lessons
learned from charter school innovation and distribute it to all local
educational agencies, to the appropriate education policy committees
of the Legislature, and to the Governor. 
   SEC. 9.    Section 47613 of the   Education
Code   is amended to read: 
   47613.  (a) Except as set forth in subdivision (b), a chartering
authority may charge for the actual costs of supervisorial oversight
of a charter school not to exceed 1 percent of the revenue of the
charter school.
   (b) A chartering authority may charge for the actual costs of
supervisorial oversight of a charter school not to exceed 3 percent
of the revenue of the charter school if the charter school is able to
obtain substantially rent free facilities from the chartering
authority.
   (c) A local agency that is given the responsibility for
supervisorial oversight of a charter school, pursuant to paragraph
(1) of subdivision (k) of Section 47605,  as it read on January
1, 2011,  may charge for the actual costs of supervisorial
oversight, and administrative costs necessary to secure charter
school funding. A charter school that is charged for costs under this
subdivision may not be charged pursuant to subdivision (a) or (b).
   (d) This section does not prevent the charter school from
separately purchasing administrative or other services from the
chartering authority or any other source.
   (e) For purposes of this section, a chartering authority means a
school district  ,   or  county board of
education  , or the state board,  that granted the
charter to the charter school.
   (f) For purposes of this section, "revenue of the charter school"
means the general purpose entitlement and categorical block grant, as
defined in subdivisions (a) and (b) of Section 47632.
   (g) (1) The California Research Bureau of the California State
Library shall prepare and submit to the Legislature on or before
January 8, 2009, a report on the key elements and actual costs of
charter school oversight. For purposes of the report, the bureau
shall define fiscal and academic oversight and shall include any
financial relationship between a charter school and its chartering
authority that has the effect of furthering the operations of the
charter school and that may provide opportunities to oversee the
charter school. The report, at a minimum, shall address all of the
following issues:
   (A) The range of annual activities that entities providing
supervisorial oversight of charter schools are expected to perform.
   (B) Staff time spent on reviewing charter petitions measured by
the size of school districts and the number of charter petitions
reviewed.
   (C) Staff time spent on oversight responsibilities measured by the
size of school districts and the number of charter schools.
   (D) Best practices for charter school oversight measured by
efficiency and effectiveness. A cost analysis of those best practices
after being measured by efficiency and effectiveness.
   (E) Comparison of school district costs and revenues attributable
to charter school oversight.
   (F) Administrative services provided to a charter school by a
chartering authority, such as human resources, that may be useful in
the oversight of the charter school and chartering authority revenues
attributable to those services.
   (G) Length of time required to review a single charter petition.
   (H) Recommendations for structuring charter school oversight and
accountability in California, including an assessment of whether or
not the associated costs specified in subdivisions (a) and (b) and
subparagraph (F) are adequate to support appropriate supervisorial
oversight.
   (2) In preparing its report, the California Research Bureau shall
consult with an advisory panel to ensure technical accuracy.
   SEC. 10.    Section 47641 of the   Education
Code   is amended to read: 
   47641.  (a) A charter school that includes in its petition for
establishment or renewal, or that otherwise provides, verifiable,
written assurances that the charter school will participate as a
local educational agency in a special education plan approved by the
 State Board of Education   state board 
shall be deemed a local educational agency for the purposes of
compliance with federal law (Individuals with Disabilities Education
Act; 20 U.S.C. Sec. 1400 et seq.) and for eligibility for federal and
state special education funds. A charter school that is deemed a
local educational agency for the purposes of special education
pursuant to this article shall be permitted to participate in an
approved special education local plan that is consistent with
subdivision (a), (b), or (c) of Section 56195.1.
   (b) A charter school that was granted a charter by a local
educational agency that does not comply with subdivision (a) may not
be deemed a local educational agency pursuant to this article, but
shall be deemed a public school of the local educational agency that
granted the charter.
   (c) A charter school that has been granted a charter by the
 State Board of Education   state board  ,
and for which the board has delegated its supervisorial and oversight
responsibilities pursuant to paragraph (1) of subdivision (k) of
Section 47605,  as it read on January 1, 2011,  and does not
comply with subdivision (a), shall be deemed a public school of the
local educational agency to which the board has delegated its
supervisorial and oversight responsibilities.
   (d) A charter school that has been granted a charter by the
 State Board of Education   state board  ,
and for which the board has not delegated its supervisorial and
oversight responsibilities pursuant to paragraph (1) of subdivision
(k) of Section 47605,  as it read on January 1, 2011,  may
not be deemed a local educational agency unless the charter school
complies with subdivision (a).
   SEC. 11.    Section 47651 of the   Education
Code   is amended to read: 
   47651.  (a) A charter school may receive the state aid portion of
the charter school's total general-purpose entitlement and
categorical block grant directly or through the local educational
agency that either grants its charter or was designated by the
 State Board of Education   state board  .
   (1) In the case of a charter school that elects to receive its
funding directly, the warrant shall be drawn in favor of the
superintendent of schools of the county in which the local
educational agency that approved the charter or was designated by the
 State Board of Education   state board 
as the oversight agency pursuant to paragraph (1) of subdivision (k)
of Section 47605  , as it read on January 1, 2011,  is
located, for deposit to the appropriate funds or accounts of the
charter school in the county treasury. The county superintendent of
schools is authorized to establish appropriate funds or accounts in
the county treasury for each charter school.
   (2) In the case of a charter school that does not elect to receive
its funding directly pursuant to  Section 47651 
 this section  , the warrant shall be drawn in favor of the
superintendent of schools of the county in which the local
educational agency that granted the charter is located or was
designated the oversight agency by the board pursuant to paragraph
(1) of subdivision (k) of Section 47605,  as it read on January
1, 2011,  for deposit to the appropriate funds or accounts of
the local educational agency.
   (3) In the case of a charter school, the charter of which was
granted by the  State Board of Education   state
board   prior to January 1, 2012  , but for which the
board has not delegated oversight responsibilities pursuant to
paragraph (1) of subdivision (k) of Section 47605,  as it read on
January 1, 2011,  the warrant shall be drawn in favor of the
superintendent of schools in the county where the local educational
agency is located that initially denied the charter that was later
approved by the board. The county superintendent of schools is
authorized to establish appropriate funds or accounts in the county
treasury for each charter school.
   (b) On or before June 1 of each year, a charter school electing to
receive its funding directly shall so notify the county
superintendent of schools of the county in which the local
educational agency that granted the charter is located or, in the
case of charters for which the  State Board of Education
  state board  has designated an oversight agency
pursuant to paragraph (1) of subdivision (k) of Section 47605  ,
as read on January 1, 2011  , the county superintendent of
schools of the county in which the designated oversight agency is
located. An election to receive funding directly shall apply to all
funding that the charter school is eligible to receive including, but
not limited to, the charter general-purpose entitlements and the
categorical block grant computed pursuant to  Sections 47633
and 47634,  Section 47633,  other state and federal
categorical aid, and lottery funds. 
  SECTION 1.    It is the intent of the Legislature
to enact legislation relating to the improvement of elementary and
secondary education in this state.