BILL NUMBER: AB 544 CHAPTERED BILL TEXT CHAPTER 34 FILED WITH SECRETARY OF STATE MAY 8, 1998 APPROVED BY GOVERNOR MAY 7, 1998 PASSED THE SENATE APRIL 30, 1998 PASSED THE ASSEMBLY APRIL 30, 1998 CONFERENCE REPORT NO. 1 PROPOSED IN CONFERENCE APRIL 27, 1998 AMENDED IN SENATE APRIL 14, 1998 AMENDED IN SENATE JUNE 25, 1997 AMENDED IN ASSEMBLY JUNE 2, 1997 AMENDED IN ASSEMBLY MAY 1, 1997 INTRODUCED BY Assembly Member Lempert FEBRUARY 25, 1997 An act to amend Sections 47601, 47602, 47605, 47607, 47608, 47610, 47612, 47613, and 47616.5 of, and to add Sections 47604, 47604.3, 47604.5, 47605.5, 47613.5, 47613.7, 47614, and 47615 to, the Education Code, relating to charter schools. LEGISLATIVE COUNSEL'S DIGEST AB 544, Lempert. Charter schools. Existing law, the Charter Schools Act of 1992, permits teachers, parents, pupils, and community members to petition a school district governing board to approve a charter school to operate independently from the existing school district structure as a method of accomplishing, among other things, improved pupil learning. Existing law, with certain exceptions, establishes the maximum number of charter schools in California at 100 and the maximum number of 10 in any single school district. This bill would delete this provision, and would instead, establish the statewide maximum at 250 charter schools for the 1998-99 school year with an additional 100 charter schools per school year thereafter. The bill would require the Legislative Analyst to contract for an evaluation and to report to the Legislature and the Governor by July 1, 2003, regarding the effectiveness of the charter school approach. This bill would preclude receipt of public funds by a charter school if the pupil also attends a private school that charges the family for tuition, and would authorize the State Board of Education to adopt implementing regulations. This bill would provide that a charter school may elect to operate as a nonprofit public benefit corporation and would entitle the school district that grants the charter to have one representative on the board of directors of the nonprofit public benefit corporation. Existing law permits a petitioner to submit for the approval of the governing board of a school district, a petition for the establishment of a charter school after the petition has been signed by at least 10% of the teachers currently employed in the district, or by at least 50% of the teachers currently employed at one school of the district and establishes a process for review of a denial of the petition, including, but not limited to, the convening of a review panel, and the granting of the charter by the county board of education. This bill would delete these provisions and would, instead, authorize the submission of a petition after the petition has been signed by a number of parents or guardians of pupils equal to at least 1/2 of the pupils that the charter school estimates it will enroll in its first year, or after the petition has been signed by a number of teachers equal to at least 1/2 of the number of teachers that the charter school estimates will be employed at the charter school during its first year. In the case of petitions for establishment of a charter school by converting an existing public school, the bill would permit filing of the petition after the petition has been signed by at least 50% of the permanent status teachers currently employed at the public school to be converted. This bill would authorize the State Board of Education to grant a charter for the establishment of a charter school. This bill would permit the petitioner to elect to file the petition with either the county board of education or directly with the State Board of Education, and in the case of a denial by the county board of education, the bill would permit petitioners to file with the State Board of Education. The bill would permit the State Board of Education to, by mutual agreement, designate a local educational agency to perform the State Board of Education's supervisorial and oversight responsibilities as a chartering agency, and would grant the local educational agency all related powers, excluding the power of revocation of the charter. This bill would authorize the State Board of Education to take action, including, but not limited to, revocation of the charter if, based upon the recommendation of the Superintendent of Public Instruction the State Board of Education makes certain findings relating to, financial mismanagement, illegal or improper use of funds, or substantial and sustained departure from measurably successful practice. This bill would require that teachers in charter schools be required to hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a public school teacher would be required to hold. Existing law requires a charter school to comply with its charter but generally exempts it from all laws governing school districts, with certain exceptions relating to the State Teachers' Retirement System and the Charter School Revolving Loan Fund. This bill would add all laws establishing a minimum age for public school attendance to the provisions from which a charter school is not exempt. Existing law requires the Superintendent of Public Instruction to make certain apportionments to each charter school for each fiscal year. This bill would require that, only upon adoption of implementing regulations, charter school operational funding, as defined, be equal to the total funding that would be available to a similar school district, as defined, serving a similar pupil population, and would require the State Department of Education to propose, and the State Board of Education to adopt, implementing regulations. The bill would, with certain exceptions, permit a chartering agency to charge up to a 1% charge for actual costs of oversight, or up to 3% for these costs if the chartering agency provides substantially rent free facilities to the charter school, or if the agency is a designated local education agency in the case of charters granted by the State Board of Education. This bill would require a charter school to admit all pupils, would provide for a selection by random drawing in cases where the demand exceeds the capacity and would require that certain preferences be given in the case of pupils currently in the charter school. The bill would preclude the generating of average daily attendance in a charter school by a pupil who is not a resident of California. The bill would require a pupil over 19 to be continuously enrolled in public school and make satisfactory progress towards a high school diploma in order to remain eligible for generating charter school apportionments, and would require the State Board of Education to adopt implementing regulations by January 1, 2000. By requiring local agencies to perform these additional duties relating to the formation, monitoring, and administration of charter school, this bill would impose a state-mandated local program. The bill would declare that certain of its provisions are severable if held invalid, and would make conforming changes and other changes of a technical, nonsubstantive nature. 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 47601 of the Education Code is amended to read: 47601. It is the intent of the Legislature, in enacting this part, to provide opportunities for teachers, parents, pupils, and community members to establish and maintain schools that operate independently from the existing school district structure, as a method to accomplish all of the following: (a) Improve pupil learning. (b) Increase learning opportunities for all pupils, with special emphasis on expanded learning experiences for pupils who are identified as academically low achieving. (c) Encourage the use of different and innovative teaching methods. (d) Create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the schoolsite. (e) Provide parents and pupils with expanded choices in the types of educational opportunities that are available within the public school system. (f) Hold the schools established under this part accountable for meeting measurable pupil outcomes, and provide the schools with a method to change from rule-based to performance-based accountability systems. (g) Provide vigorous competition within the public school system to stimulate continual improvements in all public schools. SEC. 2. Section 47602 of the Education Code is amended to read: 47602. (a) (1) In the 1998-99 school year, the maximum total number of charter schools authorized to operate in this state shall be 250. In the 1999-2000 school year, and in each successive school year thereafter, an additional 100 charter schools are authorized to operate in this state each successive school year. The limits contained in this paragraph may not be waived pursuant to Section 33050 or any other provision of law. (2) By July 1, 2003, the Legislative Analyst shall, pursuant to the criteria in Section 47616.5, report to the Legislature on the effectiveness of the charter school approach authorized under this part and recommend whether to expand or reduce the annual rate of growth of charter schools authorized pursuant to this section. (b) No charter shall be granted under this part that authorizes the conversion of any private school to a charter school. No charter school shall receive any public funds for a pupil if the pupil also attends a private school that charges the pupil's family for tuition. The State Board of Education shall adopt regulations to implement this section. SEC. 3. Section 47604 is added to the Education Code, to read: 47604. (a) Charter schools may elect to operate as, or be operated by, a nonprofit public benefit corporation, formed and organized pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1) of the Corporations Code). (b) The governing board of a school district that grants a charter for the establishment of a charter school formed and organized pursuant to this section shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation. (c) It is the intent of the Legislature that an authority that grants a charter to a charter school to be operated by, or as, a nonprofit public benefit corporation shall not be liable for the debts or obligations of the charter school. SEC. 4. Section 47604.3 is added to the Education Code, to read: 47604.3. A charter school shall promptly respond to all reasonable inquiries, including, but not limited to, inquiries regarding its financial records, from its chartering authority or from the Superintendent of Public Instruction and shall consult with the chartering authority or the Superintendent of Public Instruction regarding any inquiries. SEC. 5. Section 47604.5 is added to the Education Code, to read: 47604.5. The State Board of Education, whether or not it is the authority that granted the charter, 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 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. 6. 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 any school district may be circulated by any 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 either of the following conditions are met: (A) The petition has been signed by a number of parents or 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) In the case of a petition for the establishment of a charter school through the conversion of an existing public school, that would not be eligible for a loan pursuant to subdivision (b) of Section 41365, the petition may be circulated by any one or more persons seeking to establish the converted 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 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 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. A school district governing board 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) 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. (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. (c) (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. (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 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, except that any 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. 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 student demand. (e) No governing board of a school district shall require any employee of the school district to be employed in a charter school. (f) No governing board of a school district shall 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 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 petitioner or petitioners shall also be required to provide financial statements that include a proposed first-year operational budget, including startup costs, and cash-flow 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 school district governing board 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. (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 State Board of Education. (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 either the county board of education or directly to the State Board of Education. The county board of education or the State Board of Education, as the case may be, 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 of Education. (2) A charter school for which a charter is granted by either the county board of education or the State Board of Education pursuant to this subdivision shall qualify fully as a charter school for all funding and other purposes of this part. (3) If either the county board of education or the State Board of Education fails to act on a petition within 120 days of receipt, the decision of the governing board of the school district to deny a petition shall, thereafter, be subject to judicial review. (4) The State Board of Education shall adopt regulations implementing this subdivision. (k) (1) The State Board of Education may, by mutual agreement, designate its supervisorial and oversight responsibilities for a charter school approved by the State Board of Education to any local education 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 education 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 of Education. (3) A charter school that has been granted its charter by the State Board of Education 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 of Education for renewal of its charter. (l) Teachers in charter schools shall be required to hold a Commission on Teacher Credentialing certificate, permit, or other document equivalent to that which a teacher in other public schools would be required to hold. These documents shall be maintained on file at the charter school and shall be subject to periodic inspection by the chartering authority. It is the intent of the Legislature that charter schools be given flexibility with regard to noncore, noncollege preparatory courses. SEC. 7. Section 47605.5 is added to the Education Code, to read: 47605.5. 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. SEC. 8. 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 of Education, may be granted one or more subsequent renewals by that entity. Each renewal shall be for a period of five years. A material revision of the provisions of a charter petition may be made only with the approval of the authority that granted the charter. The authority that granted the charter may inspect or observe any part of the charter school at any time. (2) Renewals and material revisions of charters shall be governed by the standards and criteria in Section 47605. (b) A charter may be revoked by the authority that granted the charter under this chapter if the authority finds 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. (c) 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 cure 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. SEC. 9. Section 47608 of the Education Code is amended to read: 47608. All meetings of the governing board of the school district and the county board of education at which the granting, revocation, appeal, or renewal of a charter petition is discussed shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Division 2 of Title 5 of the Government Code). SEC. 10. Section 47610 of the Education Code is amended to read: 47610. A charter school shall comply with this part and all of the provisions set forth in its charter , but is otherwise exempt from the laws governing school districts except all of the following: (a) As specified in Section 47611. (b) As specified in Section 41365. (c) All laws establishing minimum age for public school attendance. SEC. 11. Section 47612 of the Education Code is amended to read: 47612. (a) The Superintendent of Public Instruction shall make all of the following apportionments to each charter school for each fiscal year: (1) From funds appropriated to Section A of the State School Fund for apportionment for that fiscal year pursuant to Article 2 (commencing with Section 42238) of Chapter 7 of Part 24, an amount for each unit of regular average daily attendance in the charter school that is equal to the current fiscal year base revenue limit for the school district to which the charter petition was submitted. In no event shall average daily attendance in a charter school be generated by a pupil who is not a California resident. To remain eligible for generating charter school apportionments, a pupil over 19 years of age shall be continuously enrolled in public school and make satisfactory progress towards award of a high school diploma. The State Board of Education shall, on or before January 1, 2000, adopt regulations defining "satisfactory progress." (2) For each pupil enrolled in the charter school who is entitled to special education services, the state and federal funds for special education services for that pupil that would have been apportioned for that pupil to the school district to which the charter petition was submitted. (3) Funds for the programs described in clause (i) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 54761, and Sections 63000 and 64000, to the extent that any pupil enrolled in the charter school is eligible to participate. (b) A charter school shall be deemed to be under the exclusive control of the officers of the public schools for purposes of Section 8 of Article IX of the California Constitution, with regard to the appropriation of public moneys to be apportioned to any charter school, including, but not limited to, appropriations made for the purposes of subdivisions (a) and (b). (c) A charter school shall be deemed to be a "school district" for purposes of Section 41302.5 and Sections 8 and 8.5 of Article XVI of the California Constitution. SEC. 12. Section 47613 of the Education Code is amended to read: 47613. Notwithstanding subdivision (c) of Section 48209.11, the full apportionment received by the basic aid district pursuant to this section shall be provided to the charter school, and with respect to any pupil of a charter school located within a basic aid school district who attended a public school in a district other than a basic aid district immediately before transferring to the charter school, the Superintendent of Public Instruction, commencing with the 1998-99 fiscal year, shall calculate for that school an apportionment of state funds that provides 70 percent of the district revenue limit calculated pursuant to Section 42238 that would have been apportioned to the school district of residence for any average daily attendance credited pursuant to Section 48209.11. For purposes of this section, "basic aid district" means a school district that does not receive from the state, for any fiscal year in which the subdivision is applied, an apportionment of state funds pursuant to subdivision (h) of Section 42238. SEC. 13. Section 47613.5 is added to the Education Code, to read: 47613.5. (a) Notwithstanding Sections 47612 and 47613, commencing with the 1999-2000 school year and only upon adoption of regulations pursuant to subdivision (b), charter school operational funding shall be equal to the total funding that would be available to a similar school district serving a similar pupil population, provided that a charter school shall not be funded as a necessary small school or a necessary small high school, nor receive revenue limit funding that exceeds the statewide average for a school district of a similar type. (b) The State Department of Education shall propose, and the State Board of Education may adopt, regulations to implement subdivision (a) and, to the extent possible and consistent with federal law, provide for simple and, at the option of the charter school, local or direct allocation of funding to charter schools. (c) For the purposes of this section, the following terms have the following meanings: (1) "Operational funding" means all funding other than capital funding. (2) "School district of a similar type" means a school district that is serving similar grade levels; elementary, high, or unified. SEC. 14. Section 47613.7 is added to the Education Code, to read: 47613.7. (a) Except as set forth in subdivision (b), a chartering agency 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 agency 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 agency. (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, may charge for the costs of supervisorial oversight, and administrative costs necessary to secure charter school funding, not to exceed 3 percent of the revenue of the charter school. A charter school that is charged for costs under this subdivision shall not be charged pursuant to subdivision (a) or (b). (d) This section shall not prevent the charter school from separately purchasing administrative or other services from the chartering agency or any other source. (e) For the purposes of this section, a chartering agency means a school district, county department of education, or the State Board of Education, that granted the charter to the charter school. SEC. 15. Section 47614 is added to the Education Code, to read: 47614. A school district in which a charter school operates shall permit a charter school to use, at no charge, facilities not currently being used by the school district for instructional or administrative purposes, or that have not been historically used for rental purposes provided the charter school shall be responsible for reasonable maintenance of those facilities. SEC. 16. Section 47615 is added to the Education Code, to read: 47615. (a) The Legislature finds and declares all of the following: (1) Charter schools are part of the Public School System, as defined in Article IX of the California Constitution. (2) Charter schools are under the jurisdiction of the Public School System and the exclusive control of the officers of the public schools, as provided in this part. (3) Charter schools shall be entitled to full and fair funding, as provided in this part. (b) This part shall be liberally construed to effectuate the findings and declarations set forth in this section. SEC. 17. Section 47616.5 of the Education Code is amended to read: 47616.5. The Legislative Analyst shall contract for a neutral evaluator to conduct an evaluation of the effectiveness of the charter school approach authorized under this part and, on or before July 1, 2003, shall report to the Legislature and the Governor accordingly with recommendations to modify, expand, or terminate that approach. The evaluation of the effectiveness of the charter school approach shall include, but shall not be limited to, the following factors: (a) If available, the pre- and post-charter school test scores of pupils attending charter schools and other pupil assessment tools. (b) The level of parental satisfaction with the charter school approach compared with schools within the district in which the charter school is located. (c) The impact of required parental involvement. (d) The fiscal structures and practices of charter schools as well as the relationship of these structures and practices to school districts, including the amount of revenue received from various public and private sources. (e) An assessment of whether or not the charter school approach has resulted in increased innovation and creativity. (f) Opportunities for teachers under the charter school approach. (g) Whether or not there is an increased focus on low-achieving and gifted pupils. (h) Any discrimination and segregation in charter schools. (i) If available, the number of charter school petitions submitted to governing boards of school districts and the number of those proposals that are denied, per year, since the enactment of the charter school law, including the reasons why the governing boards denied these petitions, and the reasons governing boards have revoked charters. (j) The governance, fiscal liability and accountability practices and related issues between charter schools and the governing boards of the school districts approving their charters. (k) The manner in which governing boards of school districts monitor the compliance of the conditions, standards, and procedures entered into under a charter. (l) The extent of the employment of noncredentialed personnel in charter schools. (m) An assessment of how the exemption from laws governing school districts allows charter schools to operate differently than schools operating under those laws. (n) A comparison in each school district that has a charter school of the pupil dropout rate in the charter schools and in the noncharter schools. (o) The role and impact of collective bargaining on charter schools. SEC. 18. The provisions of Sections 1 to 17 of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 19. Notwithstanding Section 17610 of the Government Code, 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. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.