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.