Bill Text: CA SB329 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Charter schools: petition and report and review at public hearing: competitive bidding.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB329 Detail]

Download: California-2015-SB329-Amended.html
BILL NUMBER: SB 329	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 26, 2015

INTRODUCED BY   Senator Mendoza

                        FEBRUARY 23, 2015

   An act to amend  Section 41010   Sections
47605 and 47605.6  of the Education Code,   and to amend
Section 20110 of the Public Contract Code,   relating to
 school finance.   charter schools. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 329, as amended, Mendoza.  School finance: accounting.
  Charter schools: petition denials: competitive
bidding.  
   (1) Existing law, the Charter Schools Act of 1992 (the Charter
Schools Act), specifies the petition process for the establishment of
a charter school within a school district. As part of that process,
the Charter Schools Act requires, no later than 30 days after
receiving a petition, the governing board of a school district to
hold a public hearing on the provisions of the charter, at which time
the governing board of the school district is required to consider
the level of support for the petition by teachers employed by the
school district, other employees of the school district, and parents.
 
   This bill would require the governing board of a school district
to also consider a report assessing whether school district staff has
the capacity to conduct oversight of the charter school described in
the petition and a report of the anticipated financial and
educational impact on the other schools that the governing board of
the school district has oversight obligations for. By imposing
additional duties on school district officials, the bill would impose
a state-mandated local program.  
   (2) The Charter Schools Act prohibits the governing board of a
school district from denying a petition for the establishment of a
charter school unless it makes written factual findings, specific to
the particular petition, to support one or more specific findings,
including, among others, that the petition lacks the requisite number
of signatures or that the charter school presents an unsound
educational program. If the governing board of the school district
denies the petition, the Charter Schools Act authorizes the
petitioners to elect to submit the petition to the county board of
education, and if the county board of education denies the petition,
to submit the petition to the State Board of Education, and requires
the county board of education and the state board to review the
petition pursuant to the provisions applicable to the governing board
of a school district.  
   This bill would add having a negative fiscal impact on the school
district to the list of specific findings sufficient to authorize the
governing board of a school district to deny a petition, as
provided.  
   (3) The Charter Schools Act specifies a separate petition process
for the establishment of a countywide charter school. As part of that
separate process, the Charter Schools Act requires, no later than 60
days after receiving a petition, a county board of education to hold
a public hearing on the provisions of the charter, at which time the
county board of education is required to consider the level of
support for the petition by teachers, parents or guardians, and the
school districts where the charter school petitioner proposes to
place school facilities.  
   This bill would require a county board of education to also
consider a report assessing whether county office of education staff
has the capacity to conduct oversight of the charter school described
in the petition and a report of the anticipated financial and
educational impact on the other schools that the governing board of a
school district has oversight obligations for. By imposing
additional duties on county boards of education, the bill would
impose a state-mandated local program.  
   (4) The Charter Schools Act requires a county board of education
to deny a petition for the establishment of a countywide charter
school if it makes certain findings, including, among others, that
the petition lacks the requisite number of signatures or that the
charter school presents an unsound educational program. The Charter
Schools Act also specifies a separate petition process for the
establishment of a state charter school whereby the petition is
submitted directly to the State Board of Education, and authorizes
the state board to deny a petition for any of the reasons that
require a county board of education to deny a petition.  
   This bill would require a county board of education to, and would
thus authorize the state board to, deny a petition if it finds that
the charter school would have a negative financial impact on a school
district, as provided. To the extent this bill would impose
additional duties on a county board of education, the bill would
impose a state-mandated local program.  
   (5) Existing law, the Local Agency Public Construction Act (the
act), sets forth the requirements for competitive bidding on various
types of contracts awarded by state and local agencies, including a
school district. The act requires, among other things, the governing
board of a school district to let contracts for the purchase of
equipment, materials, or supplies to be furnished, leased, or sold to
the school district, services other than construction services, and
certain repairs, involving an expenditure of more than $50,000, and
to let contracts for public projects, as defined, involving an
expenditure of $15,000 or more, to the lowest responsible bidder who
gives security as the governing board of the school district
requires.  
   This bill would apply the provisions of the act applicable to
school districts to charter schools. By imposing additional duties on
charter school officials, the bill would impose a state-mandated
local program.  
   (6) This bill also would update references and make other
nonsubstantive changes.  
   (7) 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.  
   Existing law requires the accounting system used to record the
financial affairs of any school district to be in accordance with the
definitions, instructions, and procedures published in the
California School Accounting Manual as approved by the State Board of
Education and furnished by the Superintendent of Public Instruction.
 
   This bill would make nonsubstantive changes to these provisions.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


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

   SECTION 1.    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  (b)   (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  
there  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 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 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  may   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   consider: (A)  the level
of support for the petition by teachers employed by the  school
 district, other employees of the  school  district,
and  parents.   parents, (B) a report assessing
whether school district staff has the capacity to conduct oversight
of the charter school described in the petition, and (C) a report of
the anticipated financial and educational impact on the other schools
that the governing board of the school district has oversight
obligations for.  Following review of the petition  and the
reports  and  after  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 charter school would have a negative fiscal impact on the
school district. For purposes of this paragraph, the finding that a
charter school would have a negative fiscal impact on a school
district shall only be established, and shall be deemed to be
established, if any of the following conditions are met:  
   (A) The school district has received a negative financial
certification pursuant to Section 42131.  
   (B) The school district has received an emergency apportionment or
loan and is operating under the oversight of a state-appointed
administrator or trustee pursuant to Article 2 (commencing with
Section 41320) of, or Article 2.5 (commencing with Section 41325) of,
Chapter 3 of Part 24 of Division 3.  
   (C) The school district, due to declining enrollment of pupils, is
in the process of closing a school that the charter petition has
identified as a proposed schoolsite for the charter school and the
school district has received a qualified financial certification
pursuant to Section 42131 or would receive a qualified financial
certification pursuant to Section 42131 if the charter petition is
approved.  
   (5) 
    (6)  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 school priorities, the goals for the
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) 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.
   (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 school   it 
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  any   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 
any   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
 any   an  employee of the school district
to be employed in a charter school.
   (f) The governing board of a school district shall not require
 any   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  shall  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)   (b),  and
shall define "reasonably  comprehensive"  
comprehensive,"  as used in paragraph (5) of subdivision
 (b)   (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  a
  the  petition  shall, thereafter,
  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
  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. 2.    Section 47605.6 of the  
Education Code   is amended to read: 
   47605.6.  (a) (1) In addition to the authority provided by Section
47605.5, a county board of education may also approve a petition for
the operation of a charter school that operates at one or more sites
within the geographic boundaries of the county and that provides
instructional services that are not generally provided by a county
office of education. A county board of education may approve a
countywide charter only if it finds, in addition to the other
requirements of this section, that the educational services to be
provided by the charter school will offer services to a pupil
population that will benefit from those services and that cannot be
served as well by a charter school that operates in only one school
district in the county. A petition for the establishment of a
countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons seeking
to establish the charter school. The petition may be submitted to the
county board of education for review after either of the following
conditions is met:
   (A) The petition is signed by a number of parents or guardians of
pupils residing within the county 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 and each of the school districts where the charter school
petitioner proposes to operate a facility has received at least 30
days' notice of the petitioner's intent to operate a  charter
 school pursuant to this section.
   (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 and each of the school
districts where the charter school petitioner proposes to operate a
facility has received at least 30 days' notice of the petitioner's
intent to operate a  charter  school pursuant to this
section.
   (2) An existing public school may not be converted to a charter
school in accordance with this section.
   (3) After receiving approval of its petition, a charter school
that proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those additional
locations at an open, public meeting, held no sooner than 30 days
following notification of the school districts where the sites will
be located. If approved, the location of the approved sites shall be
a material revision of the  charter  school's approved
charter.
   (4) A petition shall include a prominent statement indicating 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 60 days after receiving a petition, in
accordance with subdivision (a), the county board of education shall
hold a public hearing on the provisions of the charter, at which time
the county board of education shall  consider  
consider: (A)  the level of support for the petition by
teachers, parents or guardians, and the school districts where the
charter school petitioner proposes to place school 
facilities.   facilities, (B) a report assessing whether
county office of education staff has the capacity to conduct
oversight of the charter school described in the petition, and (C) a
report of the anticipated financial and educational impact on the
other schools that the governing board of a school district has
oversight obligations for.  Following review of the petition
 and the reports  and  after  the public hearing,
the county board of education shall either grant or deny the charter
within 90 days of receipt of the petition. However, this date may be
extended by an additional 30 days if both parties agree to the
extension. A county board of education may impose any additional
requirements beyond those required by this section that it considers
necessary for the sound operation of a countywide charter school. A
county board of education may grant
        a charter for the operation of a  charter  school
under this part only if the county  board  of education
 is satisfied that granting the charter is consistent with sound
educational practice and that the charter school has reasonable
justification for why it could not be established by petition to a
school district pursuant to Section 47605. The county board of
education shall deny a petition for the establishment of a charter
school if the  county  board  of education  finds
one or more of the following:
   (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 charter school would have a negative fiscal impact on a
school district. For purposes of this paragraph, the finding that a
charter school would have a negative fiscal impact on a school
district shall only be established, and shall be deemed to be
established, if any of the following conditions are met:  
   (A) The school district has received a negative financial
certification pursuant to Section 42131.  
   (B) The school district has received an emergency apportionment or
loan and is operating under the oversight of a state-appointed
administrator or trustee pursuant to Article 2 (commencing with
Section 41320) of, or Article 2.5 (commencing with Section 41325) of,
Chapter 3 of Part 24 of Division 3.  
   (C) The school district, due to declining enrollment of pupils, is
in the process of closing a school that the charter petition has
identified as a proposed schoolsite for the charter school and the
school district has received a qualified financial certification
pursuant to Section 42131 or would receive a qualified financial
certification pursuant to Section 42131 if the charter petition is
approved.  
   (5) 
    (6)  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
pupils 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 school priorities, the goals for the
school priorities, and the specific annual actions to achieve those
goals.
   (iii) If the proposed charter school will enroll high school
pupils, a description of the manner in which the charter school will
inform parents regarding the transferability of courses to other
public high schools. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges may be
considered to be transferable to other public high schools.
   (iv) If the proposed charter school will enroll high school
pupils, information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses approved
by the University of California or the California State University as
satisfying their prerequisites for admission may be considered as
meeting college entrance requirements for purposes of this clause.
   (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
aptitudes 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) The location of each charter school facility that the
petitioner proposes to operate.
   (E) 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.
   (F) The qualifications to be met by individuals to be employed by
the  charter  school.
   (G) 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 school   it 
with a criminal record summary as described in Section 44237.
   (H) 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   county board of
education  to which the charter petition is submitted.
   (I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by the
state board, and the manner in which audit exceptions and
deficiencies shall be resolved.
   (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 procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.
   (M) 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 the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).
   (N) Admission requirements of the charter school, if applicable.
   (O) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.
   (P) A description of the rights of an employee of the county
office of education, upon leaving the employment of the county office
of education, to be employed by the charter school, and a
description of any rights of return to the county office of education
that an employee may have upon leaving the employ of the charter
school.
   (Q) 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 public
records. 
   (6) 
    (7)  Any other basis that the county board of education
finds justifies the denial of the petition.
   (c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school's operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.
   (d) (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.
   (e) (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   a  pupil on the basis of ethnicity, national
origin, gender, gender identity, gender expression, 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.
   (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
county 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 county board of education 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.
   (f) The county board of education shall not require any
  an  employee of the county or a school district
to be employed in a charter school.
   (g) The county board of education shall not require  any
  a  pupil enrolled in a county program to attend a
charter school.
   (h) The county board of education 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, any
school district where the charter school may operate, and upon the
county board of education. The petitioner or petitioners 
shall  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.
   (i) In reviewing petitions for the establishment of charter
schools within the county, the county board of education 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.
   (j) 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 school
districts within the county, the Superintendent, and  to
 the state board.
   (k) If a county board of education denies a petition, the
petitioner may not elect to submit the petition for the establishment
of the charter school to the state board.
   (  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.
   (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 the county office of education, the Controller, and the department
by December 15 of each year. This subdivision shall not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.
   SEC. 3.    Section 20110 of the   Public
Contract Code   is amended to read: 
   20110.   (a)    The provisions of this part
shall apply to contracts awarded by school districts subject to Part
21 (commencing with Section 35000) of Division 3 of Title 2 of the
Education Code. 
   (b) The provisions of this part shall also apply to contracts
awarded by a charter school established pursuant to Part 26.8
(commencing with Section 47600) of Division 4 of Title 2 of the
Education Code.  
   (c) (1) For purposes of this part, a charter school shall be
deemed a school district and the governing body of a charter school
shall be deemed the governing board of a school district.  
   (2) For purposes of this part, a reference to a school district or
the governing board of a school district shall be deemed to also
reference a charter school or the governing body of a charter school,
as applicable. 
   SEC. 4.    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.  
  SECTION 1.    Section 41010 of the Education Code
is amended to read:
   41010.  The accounting system used to record the financial affairs
of a school district shall be in accordance with the definitions,
instructions, and procedures published in the California School
Accounting Manual as approved by the state board and furnished by the
Superintendent. No accounting manual approved shall expressly or by
implication affect the content of any educational program or
objective, except as otherwise specifically provided for by this
code. The Legislature hereby finds that such content shall be best
determined by those involved in the administration of educational
programs, including governing boards of school districts, local
administrators, teachers, pupils, and parents. 
                                                     
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