Bill Text: CA AB406 | 2017-2018 | Regular Session | Amended

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

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Bill Title: Charter schools: operation.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2018-09-07 - Chaptered by Secretary of State - Chapter 291, Statutes of 2018. [AB406 Detail]

Download: California-2017-AB406-Amended.html

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Amended  IN  Senate  June 27, 2018

Amended  IN  Assembly  May 17, 2017

Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 406

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Introduced by Assembly Member McCarty
(Coauthor: Assembly Member Thurmond)

February 09, 2017

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An act to amend, repeal, and add Section 47604 of the Education Code, relating to charter schools.

LEGISLATIVE COUNSEL'S DIGEST

AB 406, as amended, McCarty. Charter schools: operation.

The Charter Schools Act of 1992 provides for the establishment and operation of a charter school and authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified.

This bill, on and after January July 1, 2019, would prohibit a petitioner that submits a charter petition for the establishment of a charter school or a charter school that submits a charter renewal or material revision application from operating as, or being operated by, as defined, a for-profit corporation, a for-profit educational management organization, or a for-profit charter management organization.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

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) 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) 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.

(d) This section shall remain in effect only until January July 1, 2019, and as of that date is repealed.

SEC. 2.

 Section 47604 is added to the Education Code, 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) (1) On and after January July 1, 2019, a petitioner that submits a charter petition or a charter school that submits a charter renewal or material revision application shall not operate as, or be operated by, a for-profit corporation, a for-profit educational management organization, or a for-profit charter management organization. For purposes of this section, a for-profit educational management organization and a for-profit charter management organization are entities that manage or operate a charter school.

(2) (A) “Operate as, or be operated by,” as referenced in paragraph (1), means services provided by a for-profit corporation to a charter school that include any of the following:

(i) Nominating, appointing, or removing board members or officers of the charter school.

(ii) Employing, supervising, or dismissing employees of the charter school, including certificated and noncertificated school personnel.

(iii) Managing the charter school’s day-to-day operations as its administrative manager.

(iv) Approving, denying, or managing the budget or any expenditures of the charter school that are not authorized by the governing body of the charter school.

(v) Providing services to a charter school before the governing body of the charter school has approved the contract for those services at a publicly noticed meeting.

(B) A charter school shall not enter into a subcontract to avoid the requirements of this paragraph.

(c) A chartering authority that grants a charter to a charter school to be operated as or by a nonprofit public benefit corporation shall be entitled to a single representative on the board of directors of the nonprofit public benefit corporation.

(d) A chartering authority that grants a charter to a charter school to be operated as or by 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 chartering 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.

(e) This section shall become operative on January July 1, 2019.