California Assembly Bill AB787 Amended / Bill

 BILL NUMBER: AB 787AMENDED BILL TEXT AMENDED IN SENATE AUGUST 18, 2015 AMENDED IN ASSEMBLY JUNE 1, 2015 AMENDED IN ASSEMBLY APRIL 20, 2015 AMENDED IN ASSEMBLY MARCH 26, 2015 INTRODUCED BY Assembly Member Roger Hernndez  (   Coauthor:   Assembly Member   Gonzalez  )  FEBRUARY 25, 2015 An act to  amend   amend, repeal, and add  Section 47604 of the Education Code, relating to charter schools. LEGISLATIVE COUNSEL'S DIGEST AB 787, as amended, Roger Hernndez. Charter schools: operation: nonprofit public benefit  corporations.   corporations: for-profit corporation prohibition.  Existing law, the Charter Schools Act of 1992, authorizes a charter school to elect to operate as, or be operated by, a nonprofit public benefit corporation, as specified. This bill  would   would, commencing January 1, 2017,  prohibit a charter school from operating as, or being operated by, a for-profit corporation. 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 47604 of the Education Code is amended 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) An authority 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) A charter school shall not operate as, or be operated by, a for-profit corporation.   (d)   (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  (d) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.   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) An authority 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) A charter school shall not operate as, or be operated by, a for-profit corporation. (d) 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. (e) This section shall become operative January 1, 2017.