California Assembly Bill AB1576 Amended / Bill

 BILL NUMBER: AB 1576AMENDED 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.