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)]
Havard HB No. 184
Abstract: Relative to assets acquired or used by charter schools, provides that assets used to
manage or operate a school by an entity engaged for such purpose shall be deemed to be
assets acquired by the school and subject to disposition in the manner of other school
assets and prohibits the school from leasing property from such an entity or any
subsidiary thereof.
Present law, relative to assets of charter schools, provides that any assets acquired by a charter
school are the property of the school for the duration of the school's charter agreement. Provides,
if a school's charter agreement is revoked or the school otherwise ceases to operate, that all assets
purchased with any public funds become the property of the chartering authority. (The
"chartering authority" is a local school board, a local charter authorizer, or the State Board of
Elementary and Secondary Education (BESE). A local charter authorizer is an entity certified by
BESE to enter into agreements with chartering groups to establish a charter school.) Provides
that assets that become the property of a local charter authorizer pursuant to present law shall be
used solely for purposes of operating charter schools. Requires charter schools to maintain
records of assets acquired with private funds that remain the property of the nonprofit group
operating the charter school. Present law does not apply to Type 4 charter schools, which are
chartered by local school boards. Present law provides that assets acquired by a Type 4 charter
school are the property of the local school board.
Proposed law retains present law and additionally provides that if a charter school contracts with
or otherwise engages a legal entity to manage or operate the school, all assets used in the
management or operation of the school shall be deemed to be assets acquired by the charter
school and shall be subject to the provisions of present law.
Proposed law also prohibits a charter school from leasing property from a legal entity with which
it has contracted for the management or operation of the school or from any affiliate or subsidiary
of such entity.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 17:3991(H))