HB363ENROLLED Page 0 JRCCYF-3 By Representatives Collins, DuBose, Baker, Holk-Jones, Paramore, Estes, Moore (P) RFD: Education Policy First Read: 20-Apr-23 2023 Regular Session 1 2 3 4 5 6 HB363 EnrolledHB363 Enrolled Page 1 Enrolled, An Act, Relating to the Alabama School Choice and Student Opportunity Act; to amend Sections 16-6F-5, 16-6F-6, and 16-6F-10, Code of Alabama 1975, to change the appointment process for the Alabama Public Charter School Commission; to authorize the commission to hire staff; to require commissioners to receive annual training; to provide additional guidelines for the authorizing and application review process; to provide further for the operational and categorical funding of public charter schools in their first year of operation; and to clarify the per pupil federal, state, and local funding of conversion public charter schools during their first year of operation. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 16-6F-5, 16-6F-6, and 16-6F-10 of the Code of Alabama 1975, are amended to read as follows: "§16-6F-5 (a) Open enrollment. (1) A public charter school shall be open to any student residing in the state. (2) A school system shall not require any student enrolled in the school system to attend a start-up public charter school. (3) A public charter school shall not limit admission based on ethnicity, national origin, religion, gender, income level, disability, proficiency in the English language, or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB363 EnrolledHB363 Enrolled Page 2 academic or athletic ability. (4) A public charter school may limit admission to students within a given age group or grade level and may be organized around a special emphasis, theme, or concept as stated in the school's charter application, but fluency or competence in the theme may not be used as a standard for enrollment. (5) A public charter school shall enroll all students who wish to attend the school, unless the number of students exceeds the capacity of the facility identified for the public charter school. (6) If facility capacity is insufficient to enroll all students who wish to attend a start-up public charter school, the school shall select students through a random selection process. The school shall first enroll students who reside within the school system in which the public charter school is located. If the number of local students wanting to enroll exceeds the facility's capacity, then the school shall conduct a random selection process to enroll students who reside in the local school system. If the school has additional capacity after admitting students from the local school system, then the school shall admit any students without regard to their residency by a random selection process. The selection shall take place in a public meeting, called by the governing body of the public charter school, and following all posting and notice requirements prescribed by the Alabama Open Meetings Act. (7) Any non-charter public school converting partially 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB363 EnrolledHB363 Enrolled Page 3 or entirely to a public charter school shall adopt and maintain a policy giving enrollment preference to students who reside within the former attendance area of that public school. After all students who reside within the former attendance area of that public school are enrolled, enrollment shall first be opened to students residing within the local school system and then outside the local school system, as set forth in subdivision (6). (8) A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year and to siblings of students already enrolled in the public charter school. (9) A public charter school may give enrollment preference to children of a public charter school's founders, governing board members, and full-time employees, so long as they constitute no more than 10 percent of the school's total student population. (10) A public charter school may give enrollment preference to children living within a certain geographical boundary, so long as the overall enrollment of the public charter school includes a majority of at-risk students. The proposed boundary shall be approved by the authorizer. (10)(11) This subsection does not preclude the formation of a public charter school whose mission is focused on serving special education students, students of the same gender, students who pose such severe disciplinary problems that they warrant a specific educational program, or students 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB363 EnrolledHB363 Enrolled Page 4 who are at risk of academic failure. Notwithstanding the stated mission of the public charter school, any student may attend. (11)(12) This subsection does not preclude the formation of a public charter school, that is located on or within one mile of a military installation, whose mission is focused on serving students who are dependents of military members or Department of Defense civilian employees that are permanently assigned to that military installation. If the number of dependent students wanting to enroll exceeds the facility's capacity, then the school shall conduct a random selection process to enroll those students. If the school has additional capacity after admitting those dependent students of parents assigned to the military installation, then the school shall admit students first from the local school system by a random selection process and then without regard to their residency by a random selection process, as capacity permits. The selection shall take place in a public meeting, called by the governing body of the public charter school, and following all posting and notice requirements prescribed by the Alabama Open Meetings Act. Once the total number of students enrolled in the school reaches 400, all additional admitted students shall be dependents of military members or Department of Defense civilian employees who are permanently assigned to that military installation. (b) Credit transferability. If a student who was previously enrolled in a public charter school enrolls in another public school in Alabama, the student's new school 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB363 EnrolledHB363 Enrolled Page 5 shall accept credits earned by the student in courses or instructional programs at the public charter school in a uniform and consistent manner and according to the same criteria that are used to accept academic credits from other public schools. Nothing in this chapter shall prevent local school systems from administering placement tests for newly enrolled students who were previously enrolled in a public charter school. (c) Determination of student capacity of public charter schools. The capacity of the public charter school shall be determined annually by the governing board of the public charter school in conjunction with the authorizer and in consideration of the public charter school's ability to facilitate the academic success of its students, to achieve the other objectives specified in the charter contract, and to ensure that its student enrollment does not exceed the capacity of its facility or site. (d) Student information. A public charter school shall maintain records on all enrolled students utilizing the state adopted Alabama Student Information System (ASIM)." "§16-6F-6 (a) Eligible authorizing entities. (1) A public charter school shall not be established in this state unless its establishment is authorized by this section. No governmental entity or other entity, other than an entity expressly granted chartering authority as set forth in this section, may assume any authorizing function or duty in any form. The following entities shall be authorizers of 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB363 EnrolledHB363 Enrolled Page 6 public charter schools: a. A local school board, for chartering of schools within the boundaries of the school system under its jurisdiction, pursuant to state law. b. The Alabama Public Charter School Commission, pursuant to this section. (2) A local school board that registers as an authorizer may approve or deny an application to form a public charter school within the boundaries of the local school system overseen by the local school board. (3) All authorizing entities shall prioritize those applications that are focused on serving at-risk students. (4) A decision made by a local school board shall be subject to appeal to the commission. The commission may hear an application for the formation of a public charter school by an applicant only if one of the following factors is met: a. An application to form a public charter school is denied by the local school board overseeing that system and the applicant chooses to appeal the decision of the local school board to the commission. b. The applicant wishes to open a start-up public charter school in a public school system that has chosen not to register as an authorizer. (b) Public charter school cap. (1) Authorizers may not approve more than 10 start-up public charter schools in a fiscal year. (2) Upon receiving notice of approval of the tenth start-up public charter school to be approved in a fiscal 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB363 EnrolledHB363 Enrolled Page 7 year, the department shall provide notice to all authorizers that the cap has been reached and no new start-up public charter schools may be approved in that fiscal year. (3) The cap expires on April 1 immediately following the conclusion of the fiscal year beginning October 1, 2020. (4) At the conclusion of the fiscal year beginning October 1, 2020, the department shall submit a report to the Legislature outlining the performance of both start-up and conversion public charter schools. This report shall include, at a minimum, academic performance of all public charter schools in the state, a detailed update on the authorizing process, and recommendations for adjustments to public charter school governance and oversight. (5) There is no limit on the number of conversion public charter schools that may be approved. (c) The Alabama Public Charter School Commission. (1) The commission is established as an independent state entity. (2) The mission of the commission is to authorize high quality public charter schools, in accordance with the powers expressly conferred on the commission in this chapter. (3)a. The initial membership of the commission shall be composed of a total of 11 members. consist of the following: The State Board of Education shall appoint 10 members, made up of four appointees recommended by the Governor, one appointee recommended by the Lieutenant Governor, two appointees recommended by the President Pro Tempore of the Senate, and three appointees recommended by the Speaker of the House of 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB363 EnrolledHB363 Enrolled Page 8 Representatives. The Governor, the Lieutenant Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives shall each recommend a list of no fewer than two nominees for each initial appointment to the commission. One recommended initial appointee of the President Pro Tempore of the Senate and one recommended initial appointee of the Speaker of the House of Representatives shall be an appointee recommended by members of the Senate minority party and members of the House minority party, respectively. No commission member can be appointed unless he or she has been recommended by the Governor, Lieutenant Governor, President Pro Tempore of the Senate, or the Speaker of the House of Representatives. b. Commencing on the effective date of the act adding this paragraph, as the terms of the then serving members expire, the nominating authority for that respective serving member shall become the appointing authority for his or her successor on the commission so that the Governor shall appoint four members to the commission, the Lieutenant Governor shall appoint two members to the commission, the President Pro Tempore of the Senate shall appoint two members to the commission, and the Speaker of the House of Representatives shall appoint three members to the commission. At least one member appointed by the President Pro Tempore of the Senate shall be an appointee recommended Commencing on the effective date of the act adding this paragraph, one additional member shall be appointed by the Minority Leader of the Senate and at least one additional member shall be appointed by the Speaker 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB363 EnrolledHB363 Enrolled Page 9 of the House of Representatives shall be an appointee recommended by the Minority Leader of the House of Representatives for four-year terms of office as provided in subdivision (6). (4) The eleventh member of the commission shall be a rotating position based on the local school system where the application was denied. This member appointed to the rotating position shall be appointed by the local school system where the applicant is seeking to open a public charter school. The local school system shall appoint a member to the rotating position through board action specifically to consider that application. (5)(4) The appointing authorities of the commission members shall strive to select individuals that collectively possess strong experience and expertise in public and nonprofit governance, strategic planning, management and finance, public school leadership, assessment, curriculum and instruction, and public education law. Each member of the commission shall have demonstrated understanding of and commitment to charter schooling as a tool for strengthening public education and shall sign an agreement to hear the appeal and review documents in a fair and impartial manner. (6)(5) Membership of the commission shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state. The appointing authority shall consider the eight State Board of Education districts in determining the geographical diversity of the commission. (7)(6) The initial appointments to the commission shall 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB363 EnrolledHB363 Enrolled Page 10 be made no later than June 1, 2015. Two recommended initial appointees of the Governor, one recommended initial appointee of the Lieutenant Governor, one recommended initial appointee of the Speaker of the House of Representatives, and one recommended initial appointee of the President Pro Tempore of the Senate shall serve an initial term of one year and two recommended initial appointees of the Governor, two recommended initial appointees of the Speaker of the House of Representatives, and one recommended initial appointee of the President Pro Tempore of the Senate shall serve an initial term of two years. Thereafter, all appointees shall serve two-year four-year terms of office. All appointments shall be eligible for reappointment as determined by the appointing authority, not to exceed a total of six eight years of service, unless the member was initially appointed to serve a one-year term of office. If the initial term of office of an appointee was one year, he or she may serve a total of five nine years of service on the commission. (8)(7) A member of the commission may be removed for failure to perform the duties of the appointment. Whenever a vacancy on the commission exists, the appointing authority, within 60 days after the vacancy occurs, shall appoint a member for the remaining portion of the term in the same manner as the original appointment was made. A member of the commission shall abstain from any vote that involves a local school system of which he or she is an employee or which he or she oversees as a member of a local school board. The requirement to abstain does not apply to the rotating position 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB363 EnrolledHB363 Enrolled Page 11 on the commission. (9)(8) Six members of the commission constitute a quorum, and a quorum shall be necessary to transact business. Actions of the commission shall be by a majority vote of the commission. The commission, in all respects, shall comply with the Alabama Open Meetings Act and state record laws. Notwithstanding the preceding sentence, members of the commission may participate in a meeting of the commission by means of telephone conference, video conference, or similar communications equipment by means of which all persons participating in the meeting may hear each other at the same time. Participation by such means shall constitute presence in person at a meeting for all purposes, including the establishment of a quorum. Telephone or video conference or similar communications equipment shall also allow members of the public the opportunity to simultaneously listen to or observe meetings of the commission. (10)(9) If the commission overrules the decision of a local school board and chooses to authorize the establishment of a public charter school in that local school system, the commission shall serve as the authorizer for that public charter school, pursuant to this chapter. (10) Each member of the commission, upon assuming office, shall complete an orientation program, and an annual training program thereafter, as developed by the commission. The orientation program shall focus on roles and responsibilities of charter school authorizers, laws impacting commissioners as public officials, general education laws, and 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB363 EnrolledHB363 Enrolled Page 12 best practices. In developing and implementing the programs, the commission may consult national or state organizations with training expertise. Before the start of each regular legislative session, the commission shall provide a report to each appointing authority regarding the implementation and effectiveness of the programs. Failure to attend and complete a required orientation or annual training program may constitute grounds for removal from the commission by the appointing authority. (11) The commission may do any of the following: a. Utilize professional and administrative staff of the department as recommended by the State Superintendent of Education. a. Upon evaluation and agreement, share services, facilities, supplies, and related costs with the department. b. Adopt rules for the operation and organization of the commission. c. Review, at least once per year, department rules and regulations concerning public charter schools and, if needed, recommend to the State Superintendent of Education any rule or regulation changes deemed necessary. d. Convene stakeholder groups and engage experts. e. Seek and receive state, federal, and private funds for operational expenses. f. Employ professional, administrative, technical, and clerical staff, without regard to the state Merit System, who shall serve at the pleasure of the commission. Staff employed pursuant to this paragraph shall receive compensation and 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB363 EnrolledHB363 Enrolled Page 13 benefits established by the commission, payable in the same manner as state employees. f.(12) A commission member may not receive compensation, but shall be reimbursed by the department for travel and per diem expenses at the same rates and in the same manner as state employees. g.(13) The commission shall submit an annual report to the department pursuant to subsection (g). (12)(14) In order to overrule the decision of a local school board and authorize a public charter school, the commission, in its own consideration of the application, shall do all of the following: a. Find evidence of a thorough and high-quality public charter school application from the applicant based on the authorizing standards in subdivision (8) of subsection (a) of Section 16-6F-7. b. Hold an open community hearing opportunity for public comment within the local school system where the application was denied. c. Find that the local board's denial of an original charter application was is not supported by the then current application and exhibits. d. Take into consideration all of the following: 1. other Other existing charter school applications ,. 2. the The quality of school options existing in the affected community ,. 3. the The existence of other charter schools , and. 4. any Any other factors considered relevant to ensure 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB363 EnrolledHB363 Enrolled Page 14 the establishment of high-quality charter schools in accordance with the intent of this chapter. e. Find evidence that the local school board erred in its application of nationally recognized authorizing standards. e. At least 15 days prior to consideration of the application, send a letter to the chair of the local school board where the denial originated informing the local school board that the commission will hear the appeal pursuant to a public hearing and will provide the chair, or his or her designee, the opportunity to address the commission at that public hearing. (d)(1) A local school board may register with apply to the department for chartering authority within the boundaries of the school system overseen by the local school board. The department shall publicize to all local school boards the opportunity to register with apply to the state for chartering authority within the school system they oversee. By June 1 of each year, the department shall provide information about the opportunity, including a registration an application deadline, to all local school boards. To register apply as a charter authorizer in its school system, each interested local school board shall submit the following information in a format to be established by the department: (1)a. Written notification of intent to serve as a charter authorizer in accordance with this chapter. (2)b. An explanation of the local school board's capacity and commitment to execute the duties of quality 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB363 EnrolledHB363 Enrolled Page 15 charter authorizing, as defined by nationally recognized authorizing standards. (3)c. An explanation of the local school board's strategic vision for chartering. (4)d. An explanation of how the local school board plans to solicit public charter school applicants, in accordance with this chapter. (5)e. A description or outline of the performance framework the local school board will use to guide the establishment of a charter contract and for ongoing oversight and evaluation of public charter schools, consistent with the requirements of this chapter. (6)f. A draft of the local school board's renewal, revocation, and nonrenewal processes, consistent with subsection (c) of Section 16-6F-8. (7)g. A statement of assurance that the local school board commits to serving as a charter authorizer and shall fully participate in any an annual authorizer training provided or required by the state approved by the department . (2) Once chartering authority is granted, the registered local school board shall reapply to be an authorizer every five years if the local school board wishes to continue serving as an authorizer. (e) If a local school board chooses not to register as an authorizer, all applications seeking to open a start-up public charter school within that local school board's boundaries shall be denied. Applicants wishing to open a public charter school physically located in that local school 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 HB363 EnrolledHB363 Enrolled Page 16 system may apply directly to the commission. (f) An authorizer may do all of the following: (1) Solicit, invite, receive, and evaluate applications from organizers of proposed public charter schools. (2) Approve applications that meet identified educational needs. (3) Deny applications that do not meet identified educational needs. (4) Create a framework to guide the development of charter contracts. (5) Negotiate and execute charter contracts with each approved public charter school. (6) Monitor the academic, fiscal, and organizational performance and compliance of public charter schools. (7) Determine whether each charter contract merits renewal or revocation. (g) An authorizer shall submit to the State Board of Education a publicly accessible annual report within 60 days after the end of each school fiscal year summarizing all of the following: (1) The authorizer's strategic vision for chartering and progress toward achieving that vision. (2) The academic and financial performance of all operating public charter schools overseen by the authorizer, according to the performance measures and expectations specified in the charter contracts. (3) The status of the public charter school portfolio of the authorizer, identifying all public charter schools 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 HB363 EnrolledHB363 Enrolled Page 17 within that portfolio as one of the following: a. Approved, but not yet open. b. Open and operating. c. Terminated. d. Closed, including year closed and reason for closing. e. Never opened. (4) The oversight and services, if any, provided by the authorizer to the public charter schools under the purview of the authorizer. (5) The authorizing functions provided by the authorizer to the public charter schools under its jurisdiction, including the operating costs and expenses of the authorizer detailed in annual audited financial statements that conform to generally accepted accounting principles. (6) All use of taxpayer dollars including expenditures, contracts, and revenues. (h) To cover costs for overseeing and authorizing public charter schools in accordance with this chapter, a local school board serving as an authorizer may do all of the following: (1) Expend its own resources, seek grant funds, and establish partnerships to support its public charter school authorizing activities. (2) Charge a portion of annual per student state allocations received by each public charter school it authorizes based on the following schedule: a. If thelocal school board has oversight over one to 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 HB363 EnrolledHB363 Enrolled Page 18 three, inclusive, public charter schools: Three percent of annual per student state allocations. b. If the local school board has oversight over four to five, inclusive, public charter schools: Two percent of annual per student state allocations. c. If the local school board has oversight over six to 10, inclusive, public charter schools: One percent of annual per student state allocations. d. These funds shall be used to cover the costs for a local school board to provide authorizing services to its public charter schools. (i) An employee, agent, or representative of an authorizer may not simultaneously serve as an employee, agent, representative, vendor, or contractor of a public charter school of that authorizer. (j) With the exception of charges for oversight services as required in subsection (h), a public charter school may not be required to purchase services from its authorizer as a condition of charter approval or of a charter contract, nor may any such condition be implied. (k) A public charter school authorized by a local school system may choose to purchase services, such as transportation-related or lunchroom-related services, from its authorizer. In such event, the public charter school and authorizer shall execute an annual service contract, separate from the charter contract, stating the mutual agreement of the parties concerning any service fees to be charged to the public charter school. A public charter school authorized by 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 HB363 EnrolledHB363 Enrolled Page 19 the commission may not purchase services from the commission, but consistent with this section, may purchase services from the local school system where the public charter school is located. (l) The department shall oversee the performance and effectiveness of all authorizers established under this chapter. Persistently unsatisfactory performance of the portfolio of the public charter schools of an authorizer, a pattern of well-founded complaints about the authorizer or its public charter schools, or other objective circumstances may trigger a special review by the department. In reviewing and evaluating the performance of an authorizer, the department shall apply nationally recognized standards for quality in charter authorizing. If, at any time, the department finds that an authorizer is not in compliance with an existing charter contract or the requirements of all authorizers under this chapter, the department shall notify the authorizer in writing of any identified problem, and the authorizer shall have reasonable opportunity to respond and remedy the problem. (m) If a local school board acting as an authorizer persists in violating a material provision of a charter contract or fails to remedy any other authorizing problem after due notice from the department, the department shall notify the local school board, within 60 days, that it intends to revoke the chartering authority of the local school board unless the local school board demonstrates a timely and satisfactory remedy for the violation or deficiencies. (n) If the commission violates a material provision of 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 HB363 EnrolledHB363 Enrolled Page 20 a charter contract or fails to remedy any other authorizing problems after due notice from the department, the department shall notify the commission, within 60 days, that it intends to notify the Governor, the Speaker of the House of Representatives, and the President Pro Tempore of the Senate of the actions of the commission unless the commission demonstrates a timely and satisfactory remedy for the violation of the deficiencies. Along with this notification, the department shall publicly request in writing that the Governor, the Speaker of the House of Representatives, and the President Pro Tempore appointees comply with the requests of the department or face a revocation of their appointment to the commission. (o) In the event of revocation of the chartering authority of an authorizer, the department shall manage the timely and orderly transfer of each start-up public charter contract held by that authorizer to another authorizer in the state, with the mutual agreement of each affected start-up public charter school and proposed new authorizer. The new authorizer shall assume the existing charter contract for the remainder of the charter term. (p) Authorizer power, duties, and liabilities. Authorizers are responsible for executing, in accordance with this chapter, the following essential powers and duties: (1) Soliciting and evaluating charter applications based on nationally recognized standards. (2) Approving quality charter applications that meet identified educational needs and promote a diversity of 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 HB363 EnrolledHB363 Enrolled Page 21 high-quality educational choices. (3) Declining to approve weak or inadequate charter applications. (4) Negotiating and executing charter contracts with each approved public charter school. (5) Monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools. (6) Determining whether each charter contract merits renewal, nonrenewal, or revocation. (q) An authorizer that grants a charter to a 501(c)(3) tax-exempt organization for the purpose of opening and operating a public charter school is not liable for the debts or obligations of the public charter school, or for claims arising from the performance of acts, errors, or omissions by the charter school, if the authorizer has complied with all oversight responsibilities required by law, including, but not limited to, those required by this chapter. (r) Principles and standards for charter authorizing. (1) All authorizers shall be required to develop and maintain chartering policies and practices consistent with nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility including: Organizational capacity and infrastructure; soliciting and evaluating charter applications; performance contracting; ongoing public charter school oversight and evaluation; and charter renewal decision-making. The State Board of Education shall promulgate 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 HB363 EnrolledHB363 Enrolled Page 22 reasonable rules and regulations to effectuate this section by June 17, 2015. (2) Authorizers shall carry out all of their duties under this chapter in a manner consistent with such nationally recognized principles and standards and with the spirit and intent of this chapter. Evidence of material or persistent failure to do so shall constitute grounds for losing charter authorizing powers." "§16-6F-10 (a) Enrollment. Students enrolled in and attending public charter schools shall be included in all enrollment and attendance counts of students of the local school system in which the students reside. The public charter school shall report all such data to the local school systems of residence in a timely manner. Each local school system public charter school shall report such enrollment, attendance, and other counts of students to the department in the manner required by the department. (b) Operational funding. (1) The following provisions govern operational funding: a.1. In their initial year, and in subsequent years to accommodate growth as articulated in their application, funding for public charter schools shall be provided from the Education Trust Fund in the Foundation Program appropriation for current units. Subsequent year funding for public charter schools shall be based on the Foundation Program allocation and other public school Education Trust Fund appropriations. 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 HB363 EnrolledHB363 Enrolled Page 23 1. In their initial year, and in subsequent years to accommodate growth as articulated in their application, start-up public charter schools shall be provided Foundation Program funding by inclusion of anticipated enrollment as provided in the approved charter application. During the fiscal year, the resulting Foundation Program allocation shall be adjusted to reconcile the variance between anticipated and actual funded enrollment. 2. A conversion public charter school shall be funded at the same level as the school was funded prior to its conversion to a conversion public charter school. All federal, state, and local dollars allocated to support the conversion public charter school shall be directly appropriated by the local school board to the conversion public charter school operator. Under no circumstances may the local school board withhold funds for services without mutual agreement from the conversion public charter school operator. 3. In addition to Foundation Program allocation, all start-up public charter schools shall participate in other Education Trust Fund and Public School Fund appropriations in the same manner as any other non-charter public school system. In addition to Foundation Program allocation, all conversion public charter schools shall be funded as they would have been prior to their conversion to a conversion public charter school from other Education Trust Fund and Public School Fund appropriations. In addition to Foundation Program allocation, all conversion public charter schools shall receive from the local school board a pro rata share of other Education Trust 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 HB363 EnrolledHB363 Enrolled Page 24 Fund appropriations. b. For each of its students, a public charter school shall receive the same amount of state funds, including funds earmarked for the Foundation Program transportation, school nurses, technology coordinators, and other line items that may be included in the appropriation for the Foundation Program Fund, that, for the then-current fiscal year, would have otherwise been allocated on behalf of each public charter school student to the local school system where the student resides. This amount shall reflect the status of each student according to grade level, economic disadvantage, limited English proficiency, and special education needs. c. For each of its students, a public charter school shall receive the same amount of local tax revenue, that, for the then-current fiscal year, would have otherwise been allocated on behalf of each public charter school student to the local non-charter public school of each student's residence, excluding those funds already earmarked through a vote of the local school board for debt service, capital expenditures, or transportation. As necessary, the department shall promulgate processes and procedures to determine the specific local revenue allocations according to the Foundation Program for each public charter school. d. The state funds described in paragraph b.a. shall be forwarded on a quarterly basis to the by the department to all start-up public charter school schools on the same schedule as funds are forwarded to local school systems by the department. The state funds described in paragraph a. shall be forwarded 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 HB363 EnrolledHB363 Enrolled Page 25 to conversion public charter schools by the local school system on the same schedule as funds are forwarded to local school systems by the department. The local funds described in paragraph c. shall be forwarded on a quarterly basis to the public charter school by the local educational agency of the student's residence, notwithstanding the oversight fee reductions pursuant to Section 16-6F-6. Additionally, any local revenues restricted, earmarked, or committed by statutory provision, constitutional provision, or board covenant pledged or imposed by formal action of the local board of education or other authorizing body of government, shall be excluded by the local educational agency of the student's residence when determining the amount of funds to be forwarded by the agency to the public charter school. e. The maximum annual local tax allocation forwarded to a start-up public charter school from a local school system shall, for each student, not exceed the per student portion of the state required 10 mill ad valorem match. f. The maximum annual local tax allocation forwarded to a conversion public charter school from a local school system shall, for each student, equal the amount that would have been received by the local education agency of the student's residence for each student who now attends a conversion public charter school, minus any amounts otherwise excluded pursuant to this section. In the event a local school system fails to honor an agreement with a conversion public charter school operator or if the local school system fails to forward the annual local tax allocation to a conversion public charter 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 HB363 EnrolledHB363 Enrolled Page 26 school as required by this subsection, the State Superintendent of Education shall intervene pursuant to Section 16-4-4, and allocate the local funds to the conversion public charter school accordingly . g. If necessary Annually, the department shall adopt rules governing how to calculate and distribute these per-student allocations , as well as any and ensure that these per-student allocations are distributed directly to start-up public charter schools and conversion public charter schools on a per-student basis. The department shall adopt rules governing cost-sharing for students participating in specialized gifted, talented, vocational, technical, or career education programs. (2) Categorical funding. The department shall direct the proportionate share of moneys monies generated under federal and state categorical aid programs to all public charter schools, including start-up public charter schools and conversion public charter schools, serving students eligible for such aid. The state shall ensure that all public charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal and state categorical aid program dollars. Each public charter school that serves students who may be eligible to receive services provided through such programs shall comply with all reporting requirements to receive the aid. (3) Special education funding. a. The state or a local school board shall pay directly to a public charter school , including start-up public charter 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 HB363 EnrolledHB363 Enrolled Page 27 schools and conversion public charter schools, any federal or state aid attributable to a student with a disability attending the school. b. At either party's request, a public charter school and its authorizer may negotiate and include in the charter contract alternate arrangements for the provision of and payment for special education services. (4) Generally accepted accounting principles; independent audit. a. A public charter school shall adhere to generally accepted accounting principles. b. A public charter school shall annually engage an independent certified public accountant to do an independent audit of the school's finances. A public charter school shall file a copy of each audit report and accompanying management letter to its authorizer by June 1. This audit shall include the same requirements as those required of local school system pursuant to Section 16-13A-7. (5) Transportation funding. a. The department shall disburse state transportation funding to a public charter school on the same basis and in the same manner as it is paid to public school systems. b. A public charter school may enter into a contract with a school system or private provider to provide transportation to the school's students. c. Public charter schools that do not provide transportation services shall not be allocated any federal, state, or local funds otherwise earmarked for 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 HB363 EnrolledHB363 Enrolled Page 28 transportation-related expenses." Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law. 757 758 759 760 HB363 EnrolledHB363 Enrolled Page 29 ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 11-May-23, as amended. John Treadwell Clerk Senate 31-May-23 Passed House 01-June-23 Concurred in Senate Amendment 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799