HLS 13RS-1133 ENGROSSED
Page 1 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 661
BY REPRESENTATIVE WESLEY BISHOP
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SCHOOLS/CHARTER: Creates and provides for Type 3B charter schools and provides for
charter school funding
AN ACT1
To amend and reenact R.S. 17:3973(2)(a) and (b)(v)(aa), 3991(B)(1)(d) and (23) and (H),2
3995(A)(1)(introductory paragraph) and (c) and (B), and 3996(C) and (G) and to3
enact R.S. 17:3973(2)(b)(v)(dd) and (vii) and 3995(A)(3), (H), (I), and (J), relative4
to charter schools; to create a Type 3B charter school; to provide relative to charter5
school funding including funding for Type 3B charter schools; to provide for the6
applicability of certain provisions to Type 3B schools including student enrollment,7
acquired assets, and budget submission; to provide that a Type 5 charter school shall8
be considered the local education agency for funding purposes; to provide for rules9
adopted by the State Board of Elementary and Secondary Education; to provide for10
definitions; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 17: R.S. 17:3973(2)(a) and (b)(v)(aa), 3991(B)(1)(d) and (23) and13
(H), 3995(A)(1)(introductory paragraph) and (c) and (B), and 3996(C) and (G) are hereby14
amended and reenacted and R.S. 17:3973(2)(b)(v)(dd) and (vii) and 3995(A)(3), (H), (I), and15
(J) are hereby enacted to read as follows:16
§3973. Definitions17
As used in this Chapter, the following words, terms, and phrases shall have18
the meanings ascribed to them in this Section except when the context clearly19
indicates a different meaning:20
* * *21 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 2 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2)(a) "Charter school" means an independent public school that provides a1
program of elementary or secondary education, or both, established pursuant to and2
in accordance with the provisions of this Chapter to provide a learning environment3
that will improve pupil achievement. Nothing in this Chapter shall be construed to4
prohibit a Type 1, Type 1B, Type 2, Type 3, Type 3B, or Type 4 charter school from5
having a residential component.6
(b)7
* * *8
(v)(aa) - Type 5, which means a preexisting public school transferred to the9
Recovery School District as a school determined to be failing pursuant to R.S.10
17:10.5 or 10.7 and operated as the result of and pursuant to a charter between a11
nonprofit corporation and the State Board of Elementary and Secondary Education,12
or between a nonprofit corporation and a city, parish, or other local school board or13
other public entity in the case of the renewal of a Type 5 charter of a school that has14
been transferred back to the jurisdiction of the local school board or other public15
entity pursuant to R.S. 17:10.5(C). The chartering authority shall review each Type16
5 charter proposal in compliance with the Principles and Standards for Quality17
Charter School Authorizing as promulgated by the National Association of Charter18
School Authorizers. Except as otherwise provided in R.S. 17:10.7 or 1990, and19
notwithstanding the provisions of R.S. 17:3991(B)(1), within such Type 5 charter20
school, only pupils who would have been eligible to enroll in or attend the21
preexisting school under the jurisdiction of the city, parish, or other local public22
school board or other public school entity prior to its transfer to the Recovery School23
District may attend. However, all such pupils shall be eligible to attend24
notwithstanding any other provision of this Chapter to the contrary.25
* * *26
(dd) A Type 5 charter school that is transferred from the Recovery School27
District to the administration and management of the transferring local school system28 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 3 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
pursuant to R.S. 17:10.5 or 10.7 and rules adopted by the state board shall no longer1
be determined to be failing and shall be converted to a Type 3B charter school.2
* * *3
(vii) Type 3B, which means a former Type 5 charter school transferred from4
the Recovery School District to the administration and management of the5
transferring local school system pursuant to R.S. 17:10.5 or 10.7 and rules adopted6
by the state board. The local school board shall permit a Type 3B charter school to7
remain in the facility in which it was located at the time of transfer or shall provide8
the Type 3B charter school with another facility for use. Pursuant to rules and9
regulations adopted by the state board, the state board may require a Type 3B charter10
school to participate in unified processes common to other public schools located in11
the same parish or school district boundaries that are critical to providing equity and12
access to students and families, such as processes for student enrollment, expulsion,13
and transportation.14
* * *15
§3991. Charter schools; requirements; limitations; renewal; amendment; revocation16
* * *17
B. Each proposed charter shall contain or make provision for the following:18
(1)19
* * *20
(d) The provisions of R.S. 17:3991(B)(1) and (3) this Paragraph and21
Paragraph (3) of this Subsection shall not apply to Type 5 or 3B charters.22
* * *23
(23) Provisions regarding the security of the school. If a local school board24
provides security services for its schools then it shall make such services available25
to any of its type Type 1, 3, 3B, or 4 charter schools on terms as provided within the26
charter agreement.27
* * *28 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 4 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(H) Any assets acquired by a Type 1, 1B, 2, 3, 3B, or 5 charter school are the1
property of that charter school for the duration of that school's charter agreement.2
Any assets acquired by a Type 4 charter school are the property of the local school3
board. If the charter agreement of any Type 1, 1B, 2, 3, 3B, or 5 charter school is4
revoked or the school otherwise ceases to operate, all assets purchased with any5
public funds become the property of the chartering authority. Assets that become the6
property of a local charter authorizer pursuant to this Subsection shall be used solely7
for purposes of operating charter schools. Charter schools are to maintain records8
of any assets acquired with any private funds which remain the property of the9
nonprofit group operating the charter school.10
* * *11
§3995. Charter school funding12
A.(1) For the purpose of funding, a Type 1, Type 3, Type 3B, and Type 413
charter school shall be considered an approved public school of the local school14
board entering into the charter agreement and shall receive a per pupil amount each15
year from the local school board based on the October first membership count of the16
charter school. Type 1B and Type 2 charter schools shall receive a per pupil amount17
each year authorized by the state board each year as provided in the Minimum18
Foundation Program minimum foundation program approved formula. The per pupil19
amount provided to a Type 1, 1B, 2, 3, 3B, or 4 charter school shall be computed20
annually and shall be equal to no less than the per pupil amount received by the21
school district in which the charter school is located from the following sources22
based on the district's October first membership count:23
* * *24
(c) The provisions of this Paragraph permitting the calculation of the per25
pupil amount to be provided to a Type 1, 1B, 2, 3, 3B, or 4 charter school to exclude26
any portion of local revenues specifically dedicated by the legislature or by voter27
approval to capital outlay or debt service, shall be applicable only to a charter school28 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 5 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
housed in a facility or facilities provided by the district in which the charter school1
is located.2
* * *3
(3) Notwithstanding Paragraph (1) of this Subsection, a district with one or4
more Type 3B charter schools shall distribute minimum foundation program formula5
funds to each Type 1, 3, 3B, and 4 charter school using the weighted allocations6
provided for in the most recently adopted minimum foundation program formula,7
except that the Orleans Parish School Board shall use the allocation method provided8
for in this Paragraph no earlier than the 2018-2019 fiscal year for all Type 1 and 39
charter schools authorized by the school board and in operation prior to the10
2013-2014 school year. Until that time, those schools shall be funded as provided11
in Paragraph (1) of this Subsection. For all other Type 1, 3, and 4 charter schools in12
Orleans Parish, the school board may request the use of a differentiated distribution13
methodology to be approved by the state Department of Education prior to14
implementation.15
* * *16
B. For each pupil enrolled in a charter school who is entitled to special17
education services, any state special education funding beyond that provided in the18
minimum foundation program and any federal funds for special education for that19
pupil that would have been allocated for that pupil shall be allocated to the charter20
school which the pupil attends. Any Type 2 charter school shall be considered the21
local education agency for the purposes of any special education funding or statutory22
definitions, while the local school board shall remain the local education agency for23
any Type 1, 3, or 4 charter school.24
* * *25
H. Any Type 1B, 2, or 5 charter school shall be considered the local26
education agency for funding purposes and statutory definitions pursuant to rules27
adopted by the state board.28 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 6 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
I. The local school board shall remain the local education agency for any1
Type 1, 3, or 4 charter school.2
J. A Type 5 charter school shall have the option to remain its own local3
education agency for funding purposes and statutory definitions upon conversion to4
a Type 3B charter school pursuant to rules adopted by the state board. Pursuant to5
this Subsection, the state board shall adopt rules for a Type 3B charter school6
considered its own local education agency and such rules shall:7
(1) Provide for the delineation of financial and programmatic obligations of8
the charter school related to the receipt of funds as a local education agency.9
(2) Authorize the state Department of Education to retain one quarter of one10
percent of the maximum two percent annual fee provided for in this Section from the11
charter school for administrative overhead costs incurred by the department for12
providing financial oversight and monitoring.13
(3) Authorize the state superintendent of education to rescind the local14
education agency status of a charter school should the charter school fail to meet the15
financial and programmatic obligations approved by the state board pursuant to this16
Subsection. 17
§3996. Charter schools; exemptions; requirements18
* * *19
C. A charter school established and operated in accordance with the20
provisions of this Chapter shall comply with state and federal laws and regulations21
otherwise applicable to public schools with respect to civil rights and individuals22
with disabilities. Any Type 1B, Type 2, or Type 5 charter school shall be considered23
the local education agency for the purposes of any special education funding or24
statutory definitions, while the local school board shall remain the local education25
agency for any Type 1, 3, or 4 charter school.26
* * *27
G. All charter schools established and operated in accordance with the28
provisions of this Chapter shall comply with the provisions of R.S. 39:1301 through29 HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 7 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
1315. Each Type 1, 3, 3B, and 4 charter school annually shall submit its budget to1
the local school board that approved its charter, and such board shall submit the2
charter school's budget to the state superintendent of education in accordance with3
the provisions of R.S. 17:88. Each Type 1B charter school annually shall submit its4
budget to its authorizer. Each Type 2 and Type 5 charter school annually shall5
submit its budget directly to the state superintendent of education.6
* * *7
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Wesley Bishop HB No. 661
Abstract: Provides that a Type 5 charter school transferred to the Recovery School District
and returned to the transferring local school system shall be converted to a Type 3B
charter school and may be considered the local education agency for funding
purposes. Provides relative to funding for charter schools including Type 3B
schools.
Present law defines Types 1, 1B, 2, 3, 4, and 5 charter schools. Defines a Type 5 as a
preexisting public school that is a failing school transferred to the Recovery School District
(RSD) pursuant to present law (R.S. 17:10.5 or 10.7) and operated pursuant to a charter
between a nonprofit corporation and the State Board of Elementary and Secondary
Education (BESE) or between a nonprofit corporation and a city, parish, or other local
school board or other public entity in the case of the renewal of a Type 5 charter of a school
that has been transferred back to the jurisdiction of the local school board or other public
entity. Proposed law retains present law definition except deletes provision permitting a
Type 5 to be operated pursuant to charter between a nonprofit corporation and a local school
board. Proposed law adds definition for a Type 3B charter school to mean a former Type
5 school transferred from the RSD to the transferring local system. Provides that the local
school board shall permit a Type 3B charter school to remain in the facility in which it was
located at the time of transfer or shall provide the Type 3B charter school with another
facility for use. Authorizes BESE to require a Type 3B charter school to participate in
unified processes common to other public schools located in the same parish or school
district boundaries that are critical to providing equity and access to students and families,
such as processes for student enrollment, expulsion, and transportation. Further provides that
a Type 5 charter school transferred from the RSD to the transferring local school system
shall no longer be determined to be failing and shall be converted to a Type 3B charter
school.
Relative to exemptions and requirements for charter schools:
Present law permits charter schools (except Type 5 schools) to have a residential component.
Proposed law adds that present law also applies to Types 1B and 3B schools.
Present law requires local school boards to make security services available to certain types
of charter schools under certain circumstances. Provides that assets acquired by a charter
school (except Type 4 schools) are the property of that charter school. Further provides for HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 8 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
the status of assets when a charter agreement is revoked or the school ceases to operate and
provides for use and records with regard to the assets. Requires certain charter schools
annually to submit their budgets to the local school boards and requires local boards to
submit the budgets to the state superintendent of education Proposed law provides that
present law also applies to Type 3B schools.
Present law provides certain requirements for charter schools (except Type 5 schools)
relative to the enrollment of at-risk students. Proposed law additionally exempts Type 3B
schools from this requirement.
Relative to charter school funding:
Present law provides that Type 1, Type 3, and Type 4 charter schools shall be considered
approved public schools of the local school board entering into the charter agreement and
shall receive a per pupil amount each year from the local school board based on the Oct. 1
membership count of the charter school. Provides that Type 1B and Type 2 charter schools
shall receive a per pupil amount each year from the minimum foundation program (MFP)
approved formula. Provides that except for Type 5 charter schools, the per pupil amount shall
be computed annually and shall be equal to no less than the per pupil amount received by the
school district in which the charter school is located based on the district's Oct. 1 membership
count. Permits the calculation of the per pupil amount provided to charter schools (except
Type 5 schools) to exclude any portion of local revenues specifically dedicated by the
legislature or by voter approval to capital outlay or debt service, but specifies that this shall
apply only to a charter school housed in a facility provided by the district in which the charter
school is located. Proposed law provides that present law also applies to Type 3B schools.
Further adds that a district with one or more Type 3B charter schools shall distribute MFP
funds to each Type 1, 3, 3B, and 4 charter school using the weighted allocations provided for
in the most recently adopted MFP formula, except that the Orleans Parish School Board shall
use the allocation method provided for in proposed law no earlier than the 2018-2019 fiscal
year for Type 1 and 3 charter schools in operation prior to the 2013-2014 school year.
Specifies that until that time, those schools shall be funded as provided in present law.
Further specifies that for all other Type 1, 3, and 4 charter schools in Orleans Parish, the
school board may request the use of a differentiated distribution methodology to be approved
by the state Dept. of Education prior to implementation.
Present law requires that for each special education student enrolled in a charter school, any
state special education funding beyond that provided in the MFP and any federal funds for
special education that would have been allocated for that student shall be allocated to the
charter school which the student attends. Provides that Type 1B, Type 2, and Type 5 charter
schools shall be considered the local education agency for the purposes of any special
education funding or statutory definitions and the local school board shall remain the local
education agency for Type 1, Type 3, and Type 4 charter schools. Requires charter schools
to comply with state and federal laws and regulations otherwise applicable to public schools
with respect to civil rights and individuals with disabilities. Proposed law retains present law
except provides that Type 1B, Type 2, and Type 5 charter schools shall be considered the
local education agency for the purposes of any funding or statutory definitions. Proposed law
further provides that a Type 5 charter school may choose to remain its own local education
agency for funding purposes and statutory definitions upon conversion to a Type 3B charter
school. Requires BESE to adopt rules for a Type 3B charter school considered its own local
education agency that:
(1)Provide for the delineation of financial and programmatic obligations of the charter
school regarding the receipt of funds as a local education agency.
(2)Authorize the state Dept. of Education to retain 0.25% of the maximum 2% annual
fee from the charter school for administrative overhead costs incurred by the
department for providing financial oversight and monitoring. HLS 13RS-1133 ENGROSSED
HB NO. 661
Page 9 of 9
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3)Authorize the state superintendent of education to rescind the local education agency
status of the charter school if the charter school fails to meet the financial and
programmatic obligations approved by BESE.
Present law (R.S. 17:10.5 and 10.7) provides for the transfer of a failed school to the RSD.
Provides that the RSD shall retain jurisdiction over any school transferred to it for a period
of not less than five school years not including the school year in which the transfer occurred
if the transfer occurred during a school year. Provides that at the end of the initial transfer
period, the school may be returned to the system from which it was transferred unless the
school is continued in the RSD in accordance with present law.
(Amends R.S. 17:3973(2)(a) and (b)(v)(aa), 3991(B)(1)(d) and (23) and (H),
3995(A)(1)(intro. para.) and (c) and (B), and 3996(C) and (G); Adds R.S.
17:3973(2)(b)(v)(dd) and (vii) and 3995(A)(3), (H), (I), and (J))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Education to the original bill.
1. Adds to proposed law definition of a Type 3B charter school provisions relative
to the facilities provided to such schools and provisions relative to participation
in unified processes.
2. Deletes proposed law that requires a district with one or more Type 3B charter
schools to allocate MFP formula funds to each school directly operated or
authorized by the school district using a differentiated per-pupil funding formula
and instead requires such a district to distribute MFP funds to each Type 1, 3, 3B,
and 4 charter school using the weighted allocations provided for in the most
recently adopted MFP formula.
3. Adds a requirement that the Orleans Parish School Board use the allocation
method provided for in proposed law no earlier than the 2018-2019 fiscal year for
all Type 1 and 3 charter schools in operation prior to the 2013-2014 school year
and specifies that until that time, those schools shall be funded as provided in
present law.
4. Adds that for all other Type 1, 3, and 4 charter schools in Orleans Parish, the
school board may request the use of a differentiated distribution methodology to
be approved by the state Dept. of Education prior to implementation.
5. Deletes proposed law requirement that a Type 5 charter school transferred to the
RSD and returned to the transferring local school system pursuant to present law
(R.S. 17:10.7 - applies to Orleans only) shall be considered the local education
agency for all funding purposes.