HLS 14RS-624 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 184
BY REPRESENTATIVE HAVARD
SCHOOLS/CHARTER: Provides relative to assets or property acquired or used by charter
schools under certain circumstances
AN ACT1
To amend and reenact R.S. 17:3991(H), relative to assets or property acquired or used by or2
for a charter school; to provide that assets used in management or operation of a3
charter school under certain circumstances shall be assets acquired by the school; to4
prohibit lease of property by a school from the entity that operates or manages the5
school or the affiliates and subsidiaries of such an entity; and to provide for related6
matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 17:3991(H) is hereby amended and reenacted to read as follows: 9
ยง3991. Charter schools; requirements; limitations; renewal; amendment; revocation10
* * *11
H.(1) Any assets acquired by a Type 1, 1B, 2, 3, 3B, or 5 charter school are12
the property of that charter school for the duration of that school's charter agreement.13
Any assets acquired by a Type 4 charter school are the property of the local school14
board. If the charter agreement of any Type 1, 1B, 2, 3, 3B, or 5 charter school is15
revoked or the school otherwise ceases to operate, all assets purchased with any16
public funds become the property of the chartering authority. Assets that become the17
property of a local charter authorizer pursuant to this Subsection shall be used solely18
for purposes of operating charter schools. Charter schools are to shall maintain19 HLS 14RS-624 ORIGINAL
HB NO. 184
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records of any assets acquired with any private funds which that remain the property1
of the nonprofit group operating the charter school.2
(2) If a charter school enters into an agreement or contract or otherwise3
engages an organization, corporation, or other legal entity to manage or operate the4
school, all assets used in the management or operation of the school shall be deemed5
to be assets acquired by the charter school and shall be subject to the provisions of6
this Subsection.7
(3) A charter school shall not lease property, real, personal, or mixed, from8
the same organization, corporation, or other legal entity with which it has contracted9
for the management or operation of the school or from any affiliate or subsidiary10
thereof.11
Section 2. This Act shall become effective upon signature by the governor or, if not12
signed by the governor, upon expiration of the time for bills to become law without signature13
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If14
vetoed by the governor and subsequently approved by the legislature, this Act shall become15
effective on the day following such approval.16
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 HLS 14RS-624 ORIGINAL
HB NO. 184
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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))