2016 Regular Session ENROLLED SENATE BILL NO. 432 BY SENATORS PETERSON, APPEL, BARROW, BISHOP, BOUDREAUX, BROWN, CARTER, CLAITOR, COLOMB, MILLS AND MORRELL AND REPRESENTATIVES BAGNERIS, GARY CARTER, JIMMY HARRIS, HILFERTY, LEGER AND MORENO 1 AN ACT 2 To amend and reenact R.S. 17:3995(A)(3) and (4)(a)(ii) and (I), and 3999, and to enact R.S. 3 17:10.7.1, 100.11(I), and 3995(K), relative to the return of certain schools from the 4 Recovery School District to the transferring school system; to provide for the 5 governance, funding, and status of such schools; to provide for the return of school 6 buildings, facilities, and property; to provide relative to charter contracts and 7 enrollment and discipline policies; to provide relative to testing; to provide for the 8 duties and responsibilities of the local school board, the local school superintendent, 9 the Recovery School District, and the State Board of Elementary and Secondary 10 Education; to provide for an implementation plan and an advisory committee to help 11 develop the plan; to provide for immunity from civil liability for local school board 12 members; to provide with respect to the funding of a charter school acting as its own 13 local education agency; to provide for rules; to provide for effectiveness; to provide 14 for reporting; and to provide for related matters. 15 Be it enacted by the Legislature of Louisiana: 16 Section 1. R.S. 17:3995(A)(3) and (4)(a)(ii) and (I), and 3999 are hereby amended 17 and reenacted, and R.S. 17:10.7.1, 100.11(I), and 3995(K) are hereby enacted to read as 18 follows: 19 §10.7.1. Return of certain schools from the Recovery School District to the 20 transferring school system; time line; conditions; funding 21 A. The provisions of this Section shall be applicable only to a school 22 system from which one or more schools have been transferred to the Recovery 23 School District pursuant to R.S. 17:10.7. ACT No. 91 Page 1 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 B. To the extent that the provisions of this Section conflict with the 2 provisions of Chapter 42 of Title 17 of the Louisiana Revised Statutes of 1950, 3 the provisions of this Section shall prevail. 4 C.(1) Not later than July 1, 2018, every school transferred to the 5 Recovery School District pursuant to R.S. 17:10.5 or 10.7 shall be returned to 6 the governance, administration, and jurisdiction of the local school system from 7 which the school was transferred. 8 (2)(a) Each Type 5 charter school returned to the local school system 9 shall be converted to a Type 3B charter school in accordance with the provisions 10 of R.S. 17:3973(2)(b)(vii). 11 (b) The initial term of the charter for such Type 3B charter school shall 12 be equal to the number of years remaining on the school's prior Type 5 charter 13 contract. 14 (c) Each Type 5 charter school returned to the local school system shall 15 remain subject to any active federal consent judgments or settlement 16 agreements as a Type 3B charter school under the jurisdiction of the local 17 school board. 18 D.(1) All buildings, facilities, and property owned by, or under the 19 control of, the Recovery School District shall be transferred to the local school 20 system at the time the school is returned to the governance, administration, and 21 jurisdiction of the local school system from which the school was transferred. 22 However, any assets acquired by the charter school shall remain the property 23 of the charter school, as provided in R.S. 17:3991(H). 24 (2) Notwithstanding the provisions of this Subsection, unless otherwise 25 agreed to by the Recovery School District and the local school system, subject 26 to any necessary approval by the appropriate federal agency, the following shall 27 apply: 28 (a) A school facility under the control of the Recovery School District 29 that is under construction or scheduled to be under construction pursuant to a 30 federal recovery plan, shall remain under the control of the Recovery School Page 2 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 District until construction is substantially complete. 2 (b) The Recovery School District and the state Department of Education 3 shall continue to operate as the federal grant applicant for projects completed 4 by the Recovery School District pursuant to a federal recovery plan and shall 5 retain responsibility for the execution and administration of contractual 6 warranties, grant close-outs, and financing compliance periods for such 7 projects. 8 (c)(i) The Recovery School District shall return all buildings, facilities, 9 and property related to a school which are owned by, or under the control of, 10 the district to the local school system free of any encumbrances, including liens 11 and judgments, other than those financing transactions to which the local school 12 board is a party. 13 (ii) The local school board shall have no obligation to reimburse the 14 Recovery School District, the state Department of Education, or the State Board 15 of Elementary and Secondary Education for any maintenance, alterations, or 16 other repairs made to any of the school's buildings, facilities, or property before 17 the school's return to the local school system. 18 (d) The local school board and its individual members shall be immune 19 from civil liability for any damages arising from acts, omissions, or incidents 20 occurring during the time a school returned to the local school system was 21 under the jurisdiction of the Recovery School District. 22 (e) The local school board and its individual members shall be immune 23 from any liability or responsibility for any obligation, claim, demand for 24 reimbursement, or other indebtedness asserted by the Federal Emergency 25 Management Agency, the United States Department of Housing and Urban 26 Development, or any other federal or state governmental agency or entity, with 27 respect to construction projects managed by the Recovery School District. 28 E. Notwithstanding any law to the contrary, in order to support and 29 protect the interests and rights of the children it serves, the local school board: 30 (1) Shall adopt a policy that establishes a process to determine the Page 3 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 district-level funding allocation to be effective beginning July 1, 2017, and as 2 revised in subsequent years as appropriate, based upon student characteristics 3 or needs, as determined by the local school board, to distribute the total amount 4 of minimum foundation program formula funds allocated to the local school 5 board and to Type 1, 1B, 3, 3B, 4, and 5 charter schools that are located within 6 the geographic boundaries of the local school system. 7 (2) May use local revenues from new or repurposed taxes levied by the 8 board and approved by voters after September 1, 2016, for parish-wide 9 functions or programs specifically approved by the voters. 10 (3) Shall approve charter operating agreements for all charter schools 11 under the board's jurisdiction that are limited to provisions which are common 12 to all such charter contracts, unless terms specific to an individual school are 13 authorized pursuant to policies of the board in accordance with applicable state 14 law. 15 (4) Shall require all charter schools under the board's jurisdiction to 16 participate in the parish-wide enrollment system and student expulsion process, 17 according to policies established by the board. 18 (5) May adopt a policy for charter schools under the school board's 19 jurisdiction that are in good standing in regard to compliance with the board's 20 parish-wide enrollment system and student expulsion process policies, so that 21 such schools shall be exempted from the minimum enrollment percentages 22 required by R.S. 17:3991. 23 (6) May provide a lottery preference for enrollment at elementary and 24 middle schools under the board's jurisdiction for students residing within 25 defined geographic zones as one of the factors to determine student assignment, 26 according to policies adopted by the board. Such preference shall be applied to 27 not more than one-half of the seats available in each grade level to ensure that 28 seats in all schools are accessible to students residing outside of a school's 29 respective geographic zones. Notwithstanding the provisions of this Subsection, 30 any Type 1 or Type 3 charter school which was first authorized by the board on, Page 4 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 or prior to, July 1, 2016, and whose charter contract includes a geographic 2 preference in accordance with R.S. 17:3991, may maintain such preference with 3 the approval of the board, in accordance with board policy adopted for this 4 purpose. 5 (7) May adopt a policy for cooperatively and annually establishing 6 enrollment projections and targets for every school under the school board's 7 jurisdiction and requiring enrollment of additional or fewer students 8 throughout the school year as necessary. The policy may consider factors 9 including past trends in enrollment and school performance. 10 (8) Shall adopt a policy establishing a process which allows the local 11 superintendent to limit the percentage of system enrollment that any single 12 operator of schools or charter governing authority may serve to ensure that a 13 diverse system of schools led by multiple high quality operators exists at all 14 times. 15 (9) Shall provide for the distribution of deferred local revenues to 16 charter schools under the board's jurisdiction in any year that such revenues 17 exist. Deferred local revenues shall be defined as the amount of local revenues 18 specified in R.S. 17:3995(A)(1) for distribution to all charter schools under the 19 board's jurisdiction that vary from the total amount of local revenues 20 distributed to all charter schools pursuant to R.S. 17:3995(A)(3) due to a 21 collection of local revenues that is higher or lower than the amount projected 22 by the board. In the event that actual local revenues are lower than the amount 23 projected, the board may carry forward the amount of any loss, to be recovered 24 from deferred revenues in any future year in which such revenues exceed 25 projections, prior to distribution of such revenues to charter schools. 26 F. In order to determine quality standards for all schools and intervene 27 appropriately in instances when student needs are not being met, the local 28 superintendent shall: 29 (1)(a) Present recommendations to the local school board regarding the 30 approval, extension, renewal, or revocation of the charter for any charter school Page 5 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 under the board's jurisdiction. 2 (b) Unless rejected by a two-thirds vote of the full membership of the 3 board, the local superintendent may implement any such recommendation 4 submitted to the board. 5 (c) Any action by the board to reject a recommendation made by the 6 local superintendent pursuant to Subparagraph (b) of this Paragraph shall 7 occur no later than the first board meeting held after the meeting during which 8 the recommendation was submitted to the board. 9 (2) Monitor and require corrective actions by a charter school with 10 respect to compliance with board policy, state law, or terms of the charter 11 contract. 12 (3) Be authorized to require one or more charter schools under the 13 school board's jurisdiction to temporarily close, dismiss students, or evacuate 14 in the event that there are credible threats of terror, or an official state of 15 emergency is declared for the area in which any school under the board's 16 jurisdiction is located. 17 G. In order to ensure the appropriate level of autonomy to enable 18 educators to successfully prepare students for success in college and career: 19 (1) Unless mutually agreed to by both the charter school's governing 20 authority and the local school board pursuant to a duly authorized resolution 21 adopted by each governing entity, the local school board shall not impede the 22 operational autonomy of a charter school under its jurisdiction in the areas of 23 school programming, instruction, curriculum, materials and texts, yearly school 24 calendars and daily schedules, hiring and firing of personnel, employee 25 performance management and evaluation, terms and conditions of employment, 26 teacher or administrator certification, salaries and benefits, retirement, 27 collective bargaining, budgeting, purchasing, procurement, and contracting for 28 services other than capital repairs and facilities construction. 29 (2) Each Type 3B charter school and, with the approval of the local 30 school board, any other type of charter school under the board's jurisdiction Page 6 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 may act as its own local educational agency for one or more funding purposes 2 or statutory definitions, in accordance with R.S. 17:3995, and rules adopted by 3 the State Board of Elementary and Secondary Education. 4 (3) Beginning July 1, 2017, each charter school under the local school 5 board's jurisdiction shall provide for independent test monitoring from a 6 third-party entity approved by the school board for the testing period 7 immediately preceding the board's consideration of renewal of the charter 8 school's contract. 9 H.(1)(a) The local school superintendent shall develop a plan to effect the 10 return of schools from the Recovery School District to the local school board, 11 as provided in this Section. 12 (b) The local school superintendent, in consultation with the 13 superintendent of the Recovery School District, shall convene an advisory 14 committee to assist in the development of the plan. 15 (2) The advisory committee shall be subject to the provisions of the 16 Louisiana Open Meetings Law, the Louisiana Public Records Law, and all local 17 school board policy regarding public meetings and public documents. 18 (3) The advisory committee shall be comprised of thirteen members as 19 follows: 20 (a) The local school superintendent. 21 (b) The superintendent of the Recovery School District. 22 (c) Two members who shall represent Type 5 charter school operators, 23 appointed by the local school superintendent. 24 (d) Two members who shall represent Type 5 charter school operators, 25 appointed by the superintendent of the Recovery School District. 26 (e) Two members who shall represent either a Type 1 or Type 3 charter 27 school operator, appointed by the local school superintendent. 28 (f) One member who shall represent a school directly operated by the 29 local school board, appointed by the local school superintendent. 30 (g) One member who shall represent an educational advocacy Page 7 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 organization, appointed by the local school superintendent. 2 (h) One member who shall represent an educational advocacy 3 organization, appointed by the superintendent of the Recovery School District. 4 (i) Two members jointly appointed by the local school superintendent 5 and the superintendent of the Recovery School District. 6 (4) The local school superintendent shall submit the plan to the local 7 school board for approval by September 1, 2016. The plan shall include: 8 (a) Consideration of equitable funding for governmental functions 9 deemed appropriate for the efficient operation of a system of autonomous 10 schools under the jurisdiction of the local school board. 11 (b) An implementation time line that shall include a detailed list of tasks 12 and benchmarks that are appropriately sequenced to efficiently facilitate the 13 transfer of such functions and related funding from the Recovery School 14 District with respect to the return of schools to the local school system. 15 (5) After the local school board has approved the plan, the local school 16 superintendent shall convene the advisory committee as often as he deems 17 necessary, but at least on a quarterly basis, until all schools have been returned 18 from the Recovery School District to the local school system. 19 (6)(a) The local school superintendent shall prepare a written progress 20 report regarding implementation of the approved plan to return schools from 21 the Recovery School District to the local school system not later than 22 December 1, 2016, March 1, 2017, June 1, 2017, September 1, 2017, December 23 1, 2017, March 1, 2018, and June 1, 2018, and submit the report to the 24 following: 25 (i) The State Board of Elementary and Secondary Education. 26 (ii) The local school board. 27 (iii) The Recovery School District. 28 (iv) The state Department of Education. 29 (v) The education committees of the Senate and the House of 30 Representatives. Page 8 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 (b) A final report shall be prepared and submitted to the entities 2 enumerated in Subparagraph (a) of this Paragraph not later than August 1, 3 2018. 4 I.(1) The final transfer of schools from the Recovery School District to 5 the local school board as provided in this Section may be postponed only by a 6 majority vote of the full membership of the local school board or the full 7 membership of the State Board of Elementary and Secondary Education, and 8 at least one of the following must apply: 9 (a) The local school board is not financially stable. 10 (b) The local school board lacks a comprehensive expulsion and reentry 11 program for students. 12 (c) The local school board cannot assure the stability of employee 13 retirement benefits. 14 (d) The local school board cannot ensure or provide sufficient insurance 15 coverage. 16 (e) The local school superintendent and the superintendent of the 17 Recovery School District provide written certification that it is not feasible to 18 meet the time lines, tasks, and benchmarks established in the plan to effect the 19 return of schools from the Recovery School District to the jurisdiction of the 20 local school board as provided in Subsection H of this Section. 21 (f) The advisory committee, by a majority vote of its full membership, 22 officially requests the local school board or the State Board of Elementary and 23 Secondary Education to consider such postponement. 24 (2) Any action taken by the local school board or the State Board of 25 Elementary and Secondary Education to postpone the final transfer of schools 26 from the Recovery School District to the local school board must occur no later 27 than January 31, 2018, and in no instance shall such postponement extend the 28 final transfer date beyond July 1, 2019. 29 * * * 30 §100.11. School facilities preservation; certain districts Page 9 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 * * * 2 I.(1) Prior to July 1, 2017, the provisions of this Section shall be 3 implemented in accordance with a plan or agreement between the school board 4 and the Recovery School District. 5 (2) Beginning on July 1, 2017, the provisions of this Section shall be 6 implemented in accordance with the plan approved pursuant to R.S. 17:10.7.1. 7 * * * 8 §3995. Charter school funding 9 A.(1) * * * 10 * * * 11 (3) Notwithstanding Paragraph (1) of this Subsection and unless otherwise 12 provided for in the approved minimum foundation program formula: 13 (a) Through June 30, 2016, Type 3B charter schools shall receive funds 14 according to the district-level allocation formula based on weights for student 15 characteristics or needs used for Type 5 charter schools within the same geographic 16 boundaries as determined by the state board. 17 (b)(a) Beginning July 1, 2016, for a district with one or more Type 3B charter 18 schools in a parish that contains a municipality with a population of three hundred 19 thousand or more persons according to the latest federal decennial census, the total 20 amount of minimum foundation program formula funds allocated to the local school 21 board and to Type 1, 1B, 3, 3B, 4, and 5 charter schools that are located within the 22 district shall be allocated using a district-level computation based on student 23 characteristics or needs as determined by the state board. The state Department of 24 Education shall facilitate a collaborative process that includes representatives from 25 the Recovery School District, the Louisiana Association of Public Charter Schools, 26 any affected local school board and any organization representing its authorized 27 charter schools, and advocates for students with disabilities in the development of 28 the district-level allocation policy that shall take effect on July 1, 2016. 29 (b) The local school board shall adopt a policy that establishes a process 30 to determine the district-level funding allocation to be effective beginning Page 10 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 July 1, 2017, and as revised in subsequent years as appropriate, based upon 2 student characteristics or needs to distribute the total amount of minimum 3 foundation program formula funds allocated to the local school board and to 4 Type 1, 1B, 3, 3B, 4, and 5 charter schools that are located within the 5 geographic boundaries of the local school system. 6 (4)(a)(i) * * * 7 (ii) The state Department of Education may withhold and retain from state 8 funds otherwise allocated to a local public school system through the minimum 9 foundation program formula an amount equal to one quarter of one percent of the fee 10 amount charged to a Type 3B charter school acting as its own local education 11 agency pursuant to Item (i) of this Subparagraph, or a Type 1, 3, or 4 charter 12 school acting as its own education agency pursuant to R.S. 17:10.7.1, for 13 administrative costs incurred by the department for providing financial oversight and 14 monitoring of such charter schools. 15 * * * 16 I. The local school board shall remain the local education agency for any 17 Type 1, 3, or 4 charter school, unless the charter school is authorized to act as its 18 own local education agency, pursuant to R.S. 17:10.7.1. 19 * * * 20 K. The State Board of Elementary and Secondary Education shall 21 promulgate rules in accordance with the Administrative Procedure Act 22 regarding a charter school acting as its own local education agency, pursuant 23 to R.S. 17:10.7.1. Such rules shall: 24 (1) Delineate the financial and programmatic obligations of the charter 25 school as related to the receipt of public funds. 26 (2) Authorize the state superintendent of education to rescind a charter 27 school's authority to act as its own local education agency if the school fails to 28 meet the financial and programmatic obligations established by the board. 29 * * * 30 §3999. Application of Chapter Page 11 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 432 ENROLLED 1 A. All charter schools shall be governed by the law in effect on August 15, 2 2003. Thereafter, if the provisions of this Chapter are amended, all charter schools 3 shall comply with the law as amended within ninety days of its effective date. 4 B. To the extent that the provisions of this Chapter conflict with the 5 provisions of R.S. 17:10.7.1, the provisions of R.S. 17:10.7.1 shall prevail. 6 Section 2. This Act shall become effective upon signature by the governor or, if not 7 signed by the governor, upon expiration of the time for bills to become law without signature 8 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 9 vetoed by the governor and subsequently approved by the legislature, this Act shall become 10 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 12 of 12 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.