BILL NUMBER: AB 787	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2015
	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Roger Hernández

                        FEBRUARY 25, 2015

   An act to amend Sections 47604 and 47605 of the Education Code,
relating to charter schools.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 787, as amended, Roger Hernández. Charter schools: operation:
nonprofit public benefit  corporations.  
corporations: board of directors. 
   (1) Existing law, the Charter Schools Act of 1992, authorizes a
charter school to elect to operate as, or be operated by, a nonprofit
public benefit corporation, as specified. The act requires the
governing board of a school district that grants a charter for the
establishment of a charter school formed and organized as a nonprofit
public benefit corporation to be entitled to a single representative
on the board of directors of the nonprofit public benefit
corporation.
   This bill instead would require that an authority that grants a
charter for the establishment of a charter school formed and
organized as a nonprofit public benefit corporation be entitled to a
single representative on the board of directors of the nonprofit
public benefit corporation. The bill also would require that the
initial chartering authority appoint a majority of the members of the
board of directors of the nonprofit public benefit corporation, as
provided, for a charter school that elects to operate as, or be
operated by, a nonprofit public benefit corporation and submits a
charter petition, charter renewal, or material revision application
on or after January 1, 2016. By imposing additional duties on local
educational agencies, the bill would impose a state-mandated local
program.
   This bill also would prohibit a charter school from operating as,
or being operated by, a for-profit corporation.
   (2) The Charter Schools Act of 1992 prohibits the governing board
of a school district from denying a petition for the establishment of
a charter school unless the governing board of the school district
finds that the petition does not contain specified information,
including, among other information, a reasonably comprehensive
description of the governance structure of the school.
   This bill would require the petition for the establishment of a
charter school that will operate as, or be operated by, a nonprofit
public benefit corporation also to include the names and background
information for all persons whom the petitioner nominates to serve on
the board of directors of the nonprofit public benefit corporation.
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 47604 of the Education Code is amended to read:

   47604.  (a) A charter school 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) An authority 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) For a charter school that elects to operate pursuant to this
section, and that submits a charter petition, charter renewal, or
material revision application on or after January 1, 2016, all of the
following shall apply:
   (1) The initial chartering authority shall appoint a majority of
the members of the board of directors of the nonprofit public benefit
corporation from persons publicly nominated in the charter petition,
charter renewal, or material revision application. The number of
persons nominated shall be twice the total number of members that
comprise the board of directors. The majority calculation required by
this subdivision shall not include the representative appointed
pursuant to subdivision (b).
   (2) The initial chartering authority, during the term of the
charter, shall ensure that a majority of the members of the board of
directors of the nonprofit public benefit corporation are members
appointed pursuant to paragraph (1). In the event that a member
appointed pursuant to paragraph (1) no longer serves on the board of
directors, for reasons including, but not limited to, death,
disability, removal, or resignation, the initial chartering authority
shall appoint a new member from persons nominated by the nonprofit
public benefit corporation at the time the vacancy occurs, consistent
with paragraph (1) and by submitting a material revision
application.
   (3) Nothing in this subdivision limits or supersedes the ability
of a charter school operated pursuant to this section to either use
an election process or other community involvement process to select
nominees for the board of directors of the nonprofit public benefit
corporation for consideration by the initial chartering authority or
to nominate persons for positions on the board of directors of the
nonprofit public benefit corporation by using specified eligibility
criteria. It shall be the policy of the state to encourage and to
promote parental, educator, and community participation  in
  in, and geographic and ethnic diversity in,  the
governance of a charter school.
   (4) A member of the board of directors of the nonprofit public
benefit corporation is subject to removal from his or her board
position pursuant to Article 3 (commencing with Section 3060) of
Chapter 7 of Division 4 of Title 1 of the Government Code and as
otherwise provided by law.
   (d) A charter school shall not operate as, or be operated by, a
for-profit corporation.
   (e) An authority that grants a charter to a charter school to be
operated by, or as, a nonprofit public benefit corporation is not
liable for the debts or obligations of the charter school, or for
claims arising from the performance of acts, errors, or omissions by
the charter school, if the authority has complied with all oversight
responsibilities required by law, including, but not limited to,
those required by Section 47604.32 and subdivision (m) of Section
47605.
  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 is met:
   (A) The petition is 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
charter school for its first year of operation.
   (B) The petition is 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 charter 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 (c) 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 is 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 exists:
   (A) The charter 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 charter 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 shall 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 school district, other employees of the school
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 the
establishment of charter schools should be encouraged. The governing
board of the school district shall grant a charter for the operation
of a charter 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 charter
school, designed, among other things, to identify those whom the
charter 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) A description, for the charter school, of annual goals, for
all pupils and for each subgroup of pupils identified pursuant to
Section 52052, to be achieved in the state priorities, as described
in subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school,
and specific annual actions to achieve those goals. A charter
petition may identify additional charter school priorities, the goals
for the charter school priorities, and the specific annual actions
to achieve those goals.
   (iii) If the proposed charter 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 charter school demonstrate that
they have attained the skills, knowledge, and attitudes specified as
goals in the charter school's educational program. Pupil outcomes
shall include outcomes that address increases in pupil academic
achievement both schoolwide and for all groups of pupils served by
the charter school, as that term is defined in subparagraph (B) of
paragraph (3) of subdivision (a) of Section 47607. The pupil outcomes
shall align with the state priorities, as described in subdivision
(d) of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method for
measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.
   (D) (i) The governance structure of the charter school, including,
but not limited to, the process to be followed by the charter school
to ensure parental involvement.
   (ii) If the charter school elects to operate as, or be operated
by, a nonprofit public benefit corporation pursuant to Section 47604,
the names and background information for all persons whom the
petitioner nominates to serve on the board of directors of that
nonprofit public benefit  corporation,  
corporation  pursuant to subdivision (c) of Section 47604.
   (E) The qualifications to be met by individuals to be employed by
the charter school.
   (F) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish the charter school with a criminal record summary as
described in Section 44237.
   (G) The means by which the charter 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 an 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 of whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for 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
charter 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.

   (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 charter 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 a 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 charter school.
   (B) If the number of pupils who wish to attend the charter school
exceeds the charter 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
school 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 an
employee of the school district to be employed in a charter school.
   (f) The governing board of a school district shall not require a
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 charter school,
including, but not limited to, the facilities to be used by the
charter school, the manner in which administrative services of the
charter school are to be provided, and potential civil liability
effects, if any, upon the charter school and upon the school
district. The description of the facilities to be used by the charter
school shall specify where the charter school intends to locate. The
petitioner or petitioners also shall 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 before 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.
   (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 the county board of education or the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny the petition
shall 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 is granted its charter through an appeal
to the state board and elects to seek renewal of its charter shall,
before 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
charter school's petition for renewal, the charter school may
petition the state board for renewal of its charter.
   (  l  ) 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) 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.  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.