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AB-406 Charter schools: operation.(2017-2018)

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Date Published: 05/17/2017 09:00 PM
AB406:v97#DOCUMENT

Amended  IN  Assembly  May 17, 2017
Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 406


Introduced by Assembly Member McCarty

February 09, 2017


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 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, a for-profit corporation, a for-profit educational management organization, or a for-profit charter management organization.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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 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) On and after January 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, an a for-profit educational management organization and a for-profit charter management organization are for-profit entities that manage or operate a charter school.
(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 1, 2019.