BILL NUMBER: AB 787	AMENDED
	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 Hernández
    (   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 Hernández. 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2017, and as of that date is repealed, unless a later enacted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.