Bill Text: CA AB1576 | 2011-2012 | Regular Session | Amended
Bill Title: Charter schools: loans.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-07-12 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1576 Detail]
Download: California-2011-AB1576-Amended.html
BILL NUMBER: AB 1576 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 26, 2012
AMENDED IN ASSEMBLY MAY 25, 2012
AMENDED IN ASSEMBLY APRIL 11, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
AMENDED IN ASSEMBLY MARCH 13, 2012
INTRODUCED BY Assembly Member Huber
(Coauthors: Assembly Members Beth Gaines and Williams)
(Coauthor: Senator Gaines)
FEBRUARY 2, 2012
An act to amend, repeal, and add Sections 1042 and 47603 of the
Education Code, relating to charter schools.
LEGISLATIVE COUNSEL'S DIGEST
AB 1576, as amended, Huber. Charter schools: loans.
(1) Existing law authorizes a county superintendent of schools,
with the approval of the county board of education, to temporarily
transfer moneys to a school district under specified circumstances.
The Charter Schools Act of 1992 authorizes any one or more persons
to submit a petition to the governing board of a school district to
establish a charter school that operates independently from the
existing school district structure as a method of accomplishing
specified goals.
This bill, until July 1, 2017, would authorize a county board of
education, subject to the concurrence of the county superintendent of
schools, to loan moneys from the proceeds of revenue anticipation
notes to a charter school for which the county board of education or
the county superintendent of schools has a supervisory responsibility
or, regardless of whether the charter school is within or outside of
the county, with which a county board of education or county
superintendent of schools has a contractual relationship. The bill
would require the county superintendent of schools, before the county
board of education makes the loan, to take specified actions
regarding the advisability of the loan. The bill would provide that
any loan of moneys pursuant to these provisions would not constitute
a debt or liability for the county superintendent of schools, the
county board of education, or the State of California. The bill
would prohibit a charter school from receiving more than one of these
loans per fiscal year.
The bill would require the county board of education, as a
condition of making a loan to a charter school, to report to the
State Department of Education by September 15 of each prior year
specified information on loans made to charter schools within the
fiscal year and would require the department to compile that
information into one report to be submitted by December 1 of each
year to the appropriate policy and fiscal committees of the
Legislature, the Department of Finance, and the Legislative Analyst's
Office.
(2) Existing law states that existing law governing charter
schools does not prohibit a private person or organization from
providing funding or other assistance to the establishment or
operation of a charter school.
This bill, until July 1, 2017, would authorize a charter school to
contract with a county superintendent of schools or a county board
of education for purposes of borrowing moneys, as described above.
The bill would require the borrowed moneys to be expended by a
charter school solely for purposes of meeting the cash management
needs of the charter school due to the deferral of apportionment
payments and not for purposes of making capital acquisitions.
(3) This bill also would make nonsubstantive changes to these
provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1042 of the Education Code is amended to read:
1042. County boards of education may do all of the following:
(a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
(b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make revisions, reductions, or
additions in the annual itemized estimate it deems advisable and
proper. An annual itemized estimate shall not be filed by the county
superintendent of schools or be approved by the board of supervisors
until it has first been so reviewed and approved by the county board
of education.
(c) In the name by which the county board of education is
designated, acquire, lease, lease-purchase, hold, and convey real
property for the purpose of housing the offices and the services of
the county superintendent of schools, except that this subdivision
shall only apply to the county boards of education to which all or a
portion of the duties and functions of the county board of
supervisors specified in subdivision (b) of Section 1080 have been
transferred, with the exception of the recreational duties and
recreational functions specified in subdivisions (c) and (d) of
Section 1080.
(d) Contract with and employ any persons for the furnishing to the
county board of education of special services and advice in
financial, economic, accounting, engineering, legal, or
administrative matters if these persons are specially trained and
experienced and competent to perform the special services required.
The county board of education may pay to these persons from any
available funds the compensation that it deems proper for the
services rendered.
(e) (1) Notwithstanding Section 25304 of the Government Code, fill
by appointment any vacancy that occurs during the term of office of
the county superintendent of schools. In a county in which the county
superintendent of schools is elected, the appointee shall hold
office until the office is filled by election at the next
gubernatorial election.
(2) The authority described in this subdivision shall be vested in
a county board of education only upon its adoption by the county
board of education at a public meeting held pursuant to Article 1
(commencing with Section 1000).
(f) (1) Subject to the concurrence of the county superintendent of
schools pursuant to paragraph (3), use and expend moneys, from the
proceeds of notes issued pursuant to the authority granted in Article
7.6 (commencing with Section 53850) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code, to make loans to a
charter school for which the county board of education or the county
superintendent of schools has a supervisory responsibility or,
regardless of whether the charter school is within or outside of the
county, with which the county board of education or the county
superintendent of schools has a contractual relationship pursuant to
subdivision (b) of Section 47603. Moneys borrowed by the county board
of education for the purpose of making a loan to a charter school
shall be payable solely from the funds of the charter school and
shall not constitute a debt or liability of the county board of
education or the county superintendent of schools, notwithstanding
the provisions of Section 53857 of the Government Code, or any other
law.
(2) The State of California is not liable for any debt or
liability within the meaning of Section 1 of Article XVI of the
California Constitution, or otherwise, for loans made pursuant to
this subdivision.
(3) Before the county board of education makes a loan pursuant to
this subdivision, the county superintendent of schools shall do all
of the following:
(A) Advise the chartering authority of the charter school and the
county office of education in which the charter school is primarily
located that the charter school has requested the loan.
(B) Allow the chartering authority and county office of education
to provide input regarding the advisability of making the loan.
(C) Solicit a recommendation from a recognized authority on school
district financial management who is not an employee of the county
office of education about the advisability of making the loan. The
recommendation shall consider the financial condition of the charter
school, the level of risk assumed by the county office of education,
and the potential impact on the county office of education if the
charter school is unable to repay the loan.
(D) Disclose the information received pursuant to subparagraphs
(B) and (C) at a regularly scheduled meeting of the county board of
education.
(E) Determine whether to concur with the intent of the county
board of education to make the loan.
(4) In any fiscal year, a charter school shall not receive more
than one loan that is made pursuant to this subdivision.
(4)
(5) (A) As a condition of making a loan to a charter
school pursuant to this subdivision, a county board of education
shall report to the department by September 15 of each year, the
following information on loans made to charter schools within the
prior fiscal year:
(i) The name and address of each charter school that received a
loan, including the name of the county in which the charter school is
located.
(ii) The amount of the loan, including the interest rate, that
each charter school received.
(iii) The total amount of money loaned to charter schools by the
county board of education.
(iv) The average duration of loans made to charter schools.
(v) The current status of each loan, including whether or not the
charter school has repaid the loan.
(B) No later than December 1 of each year, the department shall
compile the information reported by the county boards of education
pursuant to subparagraph (A) into one report and submit this
information to the appropriate policy and fiscal committees of the
Legislature, the Department of Finance, and the Legislative Analyst's
Office.
(g) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 20108
2018 , deletes or extends the dates on which it
becomes inoperative and is repealed.
SEC. 2. Section 1042 is added to the Education Code, to read:
1042. County boards of education may do all of the following:
(a) Adopt rules and regulations governing the administration of
the office of the county superintendent of schools.
(b) Review the county superintendent of schools annual itemized
estimate of anticipated revenue and expenditures before the annual
itemized estimate is filed with the auditor as required by Section
29040 of the Government Code, and make revisions, reductions, or
additions in the annual itemized estimate it deems advisable and
proper. An annual itemized estimate shall not be filed by the county
superintendent of schools or be approved by the board of supervisors
until it has first been so reviewed and approved by the county board
of education.
(c) In the name by which the board of education is designated,
acquire, lease, lease-purchase, hold, and convey real property for
the purpose of housing the offices and the services of the county
superintendent of schools, except that this subdivision shall only
apply to the county boards of education to which all or a portion of
the duties and functions of the county board of supervisors specified
in subdivision (b) of Section 1080 have been transferred, with the
exception of the recreational duties and recreational functions
specified in subdivisions (c) and (d) of Section 1080.
(d) Contract with and employ any persons for the furnishing to the
county board of education of special services and advice in
financial, economic, accounting, engineering, legal, or
administrative matters if these persons are specially trained and
experienced and competent to perform the special services required.
The county board of education may pay from any available funds the
compensation that it deems proper for the services rendered.
(e) (1) Notwithstanding Section 25304 of the Government Code, fill
by appointment any vacancy that occurs during the term of office of
the county superintendent of schools. In a county in which the
superintendent is elected, the appointee shall hold office until the
office is filled by election at the next gubernatorial election.
(2) The authority described in this subdivision shall be vested in
a county board of education only upon its adoption by the board at a
public meeting held pursuant to Article 1 (commencing with Section
1000).
(f) This section shall become operative on July 1, 2017.
SEC. 3. Section 47603 of the Education Code is amended to read:
47603. (a) This part shall not be construed to prohibit any
private person or organization from providing funding or other
assistance to the establishment or operation of a charter school.
(b) (1) A charter school may contract with a county superintendent
of schools or a county board of education for purposes of borrowing
moneys pursuant to subdivision (f) of Section 1042.
(2) Moneys borrowed pursuant to subdivision (f) of Section 1042
shall be expended by a charter school solely for purposes of meeting
the cash management needs of the charter school due to the deferral
of apportionment payments pursuant to Sections 14041.5, 14041.6,
14041.65, and 14041.7 and pursuant to Sections 16325, 16325.5, and
16326 of the Government Code and shall not be used for purposes of
making capital acquisitions.
(c) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 20108
2018 , deletes or extends the dates on which it
becomes inoperative and is repealed.
SEC. 4. Section 47603 is added to the Education Code, to read:
47603. (a) This part shall not be construed to prohibit any
private person or organization from providing funding or other
assistance to the establishment or operation of a charter school.
(b) This section shall become operative on July 1, 2017.
