Page 1 May 18, 2023 HB 23-1025 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 23-0624 Rep. Taggart; Michaelson Jenet Sen. Rich Date: Bill Status: Fiscal Analyst: May 18, 2023 Signed into Law John Armstrong | 303-866-6289 john.armstrong@coleg.gov Bill Topic: CHARTER SCHOOL APPLICATION TIMELINES Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☒ School District The bill changes the application period each year for charter schools to submit applications to local boards of education and adjusts associated deadlines. The bill will minimally increase workload for the Department of Education and local school districts. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the enacted bill. Summary of Legislation The bill adjusts various deadlines associated with charter school applications filed with a local school board on or after January 1, 2025. Under the bill, the charter school application process each year is as follows: from November 15 to January 15, school districts may issue requests for proposals for prospective charter schools; between February 1 and April 1, charter school applicants must file an application with a local school board (under current law, local school boards must set a filing deadline between August 1 and October 1); by June 30, local school boards must rule on charter school applications in a public hearing; by September 30, or 90 days after a school board approves a charter school application by resolution, whichever is later, the contract negotiation between the charter school and school board must be concluded. Page 2 May 18, 2023 HB 23-1025 Schools districts classified as rural or small rural by the Department of Education (CDE) may accept charter school applications with the following modifications: The dates for submission for a charter school application are contingent on the school district having a method to receive applications. Applications for rural districts are accepted between June 1 and August 1. Review of the application by the school district accountability committee is not required. The timeline for the local school boards to rule on the application is extended from June 30 to October 15. Further, the bill requires charter schools to use the fiscal and school year of July 1 to June 30 following the filing of an application as a planning year prior to serving students. A local school board and a charter school applicant may jointly extend these deadlines, and a local school board may apply for waiver or modification of these deadlines from the State Board of Education. State Expenditures If local school boards and charter schools request a waiver or extension to the deadlines established in the bill, the State Board of Education and the Schools of Choice Unit within the CDE will have an increase in workload to process these requests. This workload can be accomplished within existing appropriations. School Districts Local school boards and school districts may have a minimal increase in workload if they choose to request a waiver to the deadlines established by the bill. Workload for school districts may also shift within the fiscal year based on the new application schedule. Overall, these impacts to school districts are assumed to be minimal. Effective Date The bill was signed into law by the Governor on April 25, 2023, and takes effect August 7, 2023, assuming no referendum petition is filed. It applies to charter school applications filed after December 31, 2023. State and Local Government Contacts Education Information Technology The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.