Bill Text: CA AB1576 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 1576	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 13, 2012

INTRODUCED BY   Assembly Member Huber
   (Coauthor: Assembly Member Beth Gaines)
   (Coauthor: Senator Gaines)

                        FEBRUARY 2, 2012

   An act to amend Sections 1042 and 47603 of the Education Code,
relating to charter schools.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1576, as amended, Huber. Charter schools: loans. 
   Existing 
    (1)     Existing  law authorizes a
county superintendent of schools, with the approval of the county
board of education, to  temporaliry  
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 would  , subject to the concurrence of the county
superintendent of schools,  authorize a county board of
education to loan moneys 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  making   the county  
board of education makes  the loan,  (A)  to advise the
chartering authority of the charter school and the county office of
education in which the charter school is located that the charter
school is requesting the loan  and   , (B) 
to allow for input from the chartering authority and the county
office of education regarding the advisability of making the loan,
 and would require the county superintendent of schools
  (C)  to solicit a recommendation from bond
counsel about the advisability of making the loan  ,  
(D) to determine whether to concur with the intent of the county
board of education to make the loan, and (E) to notify the county
board of education of that determination  . 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.

   (2) Existing law states that a private person or organization is
not prohibited from providing funding or other assistance to the
establishment or operation of a charter school.  
   This bill 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 short term, working capital operational
needs of the charter school and not for purposes of making capital
acquisitions.  
   The 
    (3)     This  bill also would make
 technical and conforming   nonsubstantive 
changes  to these provisions  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
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  any 
revisions, reductions, or additions  therein  
in the annual itemized estimate  it deems advisable and proper.
 No   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
 board   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  board   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
 superintendent   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 
board   county board of education  at a public
meeting held pursuant to Article 1 (commencing with Section 1000).
   (f) (1)  Use   Subject to the concurrence of
the county superintendent of schools pursuant to paragraph (3), use
 and expend moneys 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 
advise   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 and shall allow  
loan. 
    (B)     Allow  the chartering
authority and county office of education to provide input regarding
the advisability of making the loan.  The county
superintendent of schools also shall solicit 
    (C)     Solicit  a recommendation from
bond counsel about the advisability of making the loan. 
   (D) Determine whether to concur with the intent of the county
board of education to make the loan.  
   (E) Notify the county board of education of the determination made
pursuant to subparagraph (D). 
  SEC. 2.  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
 the  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 short term, working capital operational needs of the charter
school, and shall not be used for purposes of making capital
acquisitions.