FIRSTREGULARSESSION HOUSEBILLNO.405 103RDGENERALASSEMBLY INTRODUCEDBYREPRESENTATIVECLEMENS. 1379H.01I DANARADEMANMILLER,ChiefClerk ANACT Torepealsections160.400,160.403,160.405,160.408,160.410,160.415,160.417,160.420, and160.425,RSMo,andtoenactinlieuthereofeightnewsectionsrelatingtocharter schools. BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: SectionA.Sections160.400,160.403,160.405,160.408,160.410,160.415,160.417, 2160.420,and160.425,RSMo,arerepealedandeightnewsectionsenactedinlieuthereof,to 3beknownassections160.400,160.403,160.405,160.410,160.415,160.417,160.420,and 4160.425,toreadasfollows: 160.400.1.Acharterschoolis[anindependent] asemi-autonomouspublicschool. 2 2.[Exceptasfurtherprovidedinsubsection4ofthissection,charterschoolsmaybe 3operatedonly: 4 (1)Inametropolitanschooldistrict; 5 (2)Inanurbanschooldistrictcontainingmostorallofacitywithapopulation 6greaterthanthreehundredfiftythousandinhabitants; 7 (3)Inaschooldistrictthathasbeenclassifiedasunaccreditedbythestateboardof 8education; 9 (4)Inaschooldistrictthathasbeenclassifiedasprovisionallyaccreditedbythestate 10boardofeducationandhasreceivedscoresonitsannualperformancereportconsistentwitha 11classificationofprovisionallyaccreditedorunaccreditedforthreeconsecutiveschoolyears 12beginningwiththe2012-13accreditationyearunderthefollowingconditions: 13 (a)Theeligibilityforcharterschoolsofanyschooldistrictwhoseprovisional 14accreditationisbasedinwholeorinpartonfinancialstressasdefinedinsections161.520to EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 15161.529,oronfinancialhardshipasdefinedbyruleofthestateboardofeducation,shallbe 16decidedbyavoteofthestateboardofeducationduringthethirdconsecutiveschoolyearafter 17thedesignationofprovisionalaccreditation;and 18 (b)Thesponsorislimitedtothelocalschoolboardorasponsorwhohasmetthe 19standardsofaccountabilityandperformanceasdeterminedbythedepartmentbasedon 20sections160.400to160.425andsection167.349andproperlypromulgatedrulesofthe 21department; 22 (5)Inaschooldistrictlocatedwithinacountywithmorethanonehundredfifty 23thousandbutfewerthantwohundredthousandinhabitants,providedthattheprovisionsof 24subsections15to18ofsection160.415shallnotapplytoanycharterschooloperatedinsuch 25county;or 26 (6)Inaschooldistrictthathasbeenaccreditedwithoutprovisions,sponsoredonlyby 27thelocalschoolboard;providedthatnoboardwithacurrentyearenrollmentofonethousand 28fivehundredfiftystudentsorgreatershallpermitmorethanthirty-fivepercentofitsstudent 29enrollmenttoenrollincharterschoolssponsoredbythelocalboardundertheauthorityofthis 30subdivision,exceptthatthisrestrictionshallnotapplytoanyschooldistrictthatsubsequently 31becomeseligibleundersubdivision(3)or(4)ofthissubsectionortoanydistrictaccredited 32withoutprovisionsthatsponsorscharterschoolspriortohavingacurrentyearstudent 33enrollmentofonethousandfivehundredfiftystudentsorgreater. 34 3.Exceptasfurtherprovidedinsubsection4ofthissection,thefollowingentitiesare 35eligibletosponsorcharterschools: 36 (1)Theschoolboardofthedistrictinanydistrictwhichissponsoringacharter 37schoolasofAugust27,2012,aspermittedundersubdivision(1)or(2)ofsubsection2ofthis 38section,thespecialadministrativeboardofametropolitanschooldistrictduringanytimein 39whichpowersgrantedtothedistrict'sboardofeducationarevestedinaspecialadministrative 40board,orifthestateboardofeducationappointsaspecialadministrativeboardtoretainthe 41authoritygrantedtotheboardofeducationofanurbanschooldistrictcontainingmostorall 42ofacitywithapopulationgreaterthanthreehundredfiftythousandinhabitants,thespecial 43administrativeboardofsuchschooldistrict; 44 (2)Apublicfour-yearcollegeoruniversitywithanapprovedteachereducation 45programthatmeetsregionalornationalstandardsofaccreditation; 46 (3)Acommunitycollege,theserviceareaofwhichencompassessomeportionofthe 47district; 48 (4)Anyprivatefour-yearcollegeoruniversitywithanenrollmentofatleastone 49thousandstudents,withitsprimarycampusinMissouri,andwithanapprovedteacher 50preparationprogram; HB405 2 51 (5)Anytwo-yearprivatevocationalortechnicalschooldesignatedasa501(c)(3) 52nonprofitorganizationundertheInternalRevenueCodeof1986,asamended,andaccredited 53bytheHigherLearningCommission,withitsprimarycampusinMissouri; 54 (6)TheMissouricharterpublicschoolcommissioncreatedinsection160.425. 55 4.Changesinaschooldistrict'saccreditationstatusthataffectcharterschoolsshallbe 56addressedasfollows,exceptforthedistrictsdescribedinsubdivisions(1)and(2)of 57subsection2ofthissection: 58 (1)Asadistricttransitionsfromunaccreditedtoprovisionallyaccredited,thedistrict 59shallcontinuetofallundertherequirementsforanunaccrediteddistrictuntilitachievesthree 60consecutivefullschoolyearsofprovisionalaccreditation; 61 (2)Asadistricttransitionsfromprovisionallyaccreditedtofullaccreditation,the 62districtshallcontinuetofallundertherequirementsforaprovisionallyaccrediteddistrict 63untilitachievesthreeconsecutivefullschoolyearsoffullaccreditation; 64 (3)Inanyschooldistrictclassifiedasunaccreditedorprovisionallyaccreditedwhere 65acharterschoolisoperatingandissponsoredbyanentityotherthanthelocalschoolboard, 66whentheschooldistrictbecomesclassifiedasaccreditedwithoutprovisions,acharterschool 67maycontinuetobesponsoredbytheentitysponsoringitpriortotheclassificationof 68accreditedwithoutprovisionsandshallnotbelimitedtothelocalschoolboardasasponsor. 69 70Acharterschooloperatinginaschooldistrictidentifiedinsubdivision(1),(2),or(5)of 71subsection2ofthissectionmaybesponsoredbyanyoftheentitiesidentifiedinsubsection3 72ofthissection,irrespectiveoftheaccreditationclassificationofthedistrictinwhichitis 73located.Acharterschoolinadistrictdescribedinthissubsectionwhosecharterprovidesfor 74theadditionofgradelevelsinsubsequentyearsmaycontinuetoaddlevelsuntiltheplanned 75expansioniscompletetotheextentofgradelevelsincomparableschoolsofthedistrictin 76whichthecharterschoolisoperated. 77 5.Themayorofacitynotwithinacountymayrequestasponsorundersubdivision 78(2),(3),(4),(5),or(6)ofsubsection3ofthissectiontoconsidersponsoringa"workplace 79charterschool",whichisdefinedforpurposesofsections160.400to160.425asacharter 80schoolwiththeabilitytotargetprospectivestudentswhoseparentorparentsareemployedin 81abusinessdistrict,asdefinedinthecharter,whichislocatedinthecity]Charterschools 82maybeoperatedinanyschooldistrictsponsoredonlybytheschoolboardofthedistrict 83orbyaspecialadministrativeboardforthedistrict.Thissectionshallnotbeconstrued 84toaffectachartercontractthatisineffectontheeffectivedateofthissectionuntilthe 85expirationofsuchcontract. HB405 3 86 [6.]3.Nosponsorshallreceivefromanapplicantforacharterschoolanyfeeofany 87typefortheconsiderationofacharter,normayasponsorconditionitsconsiderationofa 88charteronthepromiseoffuturepaymentofanykind. 89 [7.]4.ThecharterschoolshallbeorganizedasaMissourinonprofitcorporation 90incorporatedpursuanttochapter355.Thecharterprovidedforhereinshallconstitutea 91contractbetweenthesponsorandthecharterschool. 92 [8.Asanonprofitcorporationincorporatedpursuanttochapter355,thecharterschool 93shallselect] 5.Themethodforelectionofofficers[pursuanttosection355.326basedonthe 94classofcorporationselected] ofthecharterschoolshallbemutuallyagreedtobythe 95charterschoolandsponsoringschoolboardandshallcomplywiththeprovisionsof 96chapter355.Meetingsofthegoverningboardofthecharterschoolshallbesubjecttothe 97provisionsofsections610.010to610.030. 98 [9.]6.Asponsorofacharterschool,itsagentsandemployeesarenotliableforany 99actsoromissionsofacharterschoolthatitsponsors,includingactsoromissionsrelatingto 100thechartersubmittedbythecharterschool,theoperationofthecharterschoolandthe 101performanceofthecharterschool. 102 [10.Acharterschoolmayaffiliatewithafour-yearcollegeoruniversity,includinga 103privatecollegeoruniversity,oracommunitycollegeasotherwisespecifiedinsubsection3of 104thissectionwhenitscharterisgrantedbyasponsorotherthansuchcollege,universityor 105communitycollege.Affiliationstatusrecognizesarelationshipbetweenthecharterschool 106andthecollegeoruniversityforpurposesofteachertrainingandstaffdevelopment, 107curriculumandassessmentdevelopment,useofphysicalfacilitiesownedbyorrentedon 108behalfofthecollegeoruniversity,andothersimilarpurposes.Auniversity,collegeor 109communitycollegemaynotchargeoracceptafeeforaffiliationstatus. 110 11.Theexpensesassociatedwithsponsorshipofcharterschoolsshallbedefrayedby 111thedepartmentofelementaryandsecondaryeducationretainingoneandfive-tenthspercent 112oftheamountofstateandlocalfundingallocatedtothecharterschoolundersection160.415, 113nottoexceedonehundredtwenty-fivethousanddollars,adjustedforinflation.] 114 7.Thedepartmentofelementaryandsecondaryeducationshall[remittheretained 115fundsforeachcharterschooltotheschool'ssponsor,providedthesponsorremainsingood 116standingbyfulfillingitssponsorshipobligationsundersections160.400to160.425and 117167.349withregardtoeachcharterschoolitsponsors,includingappropriatedemonstration 118ofthefollowing: 119 (1)Expendsnolessthanninetypercentofitscharterschoolsponsorshipfundsin 120supportofitscharterschoolsponsorshipprogram,orasadirectinvestmentinthesponsored 121schools;] monitoreachschoolboard'ssponsorshipandensurethattheschoolboard: HB405 4 122 [(2)](1)Maintainsacomprehensiveapplicationprocessthatfollowsfairprocedures 123andrigorouscriteriaandgrantschartersonlytothosedeveloperswhodemonstratestrong 124capacityforestablishingandoperatingaqualitycharterschool; 125 [(3)](2)Negotiatescontractswithcharterschoolsthatclearlyarticulatetherightsand 126responsibilitiesofeachpartyregardingschoolautonomy,expectedoutcomes,measuresfor 127evaluatingsuccessorfailure,performanceconsequences[basedontheannualperformance 128report], andothermaterialterms; 129 [(4)] (3)Conductscontractoversightthatevaluatesperformance,monitors 130compliance,informsinterventionandrenewaldecisions,andensuresautonomyprovided 131underapplicablelaw;and 132 [(5)](4)Designsandimplementsatransparentandrigorousprocessthatuses 133comprehensivedatatomakemerit-basedrenewaldecisions. 134 [12.Sponsorsreceivingfundsundersubsection11ofthissectionshallberequiredto 135submitannualreportstothejointcommitteeoneducationdemonstratingtheyarein 136compliancewithsubsection17ofthissection. 137 13.Nouniversity,collegeorcommunitycollegeshallgrantachartertoanonprofit 138corporationifanemployeeoftheuniversity,collegeorcommunitycollegeisamemberofthe 139corporation'sboardofdirectors. 140 14.]8.Nosponsorshallgrantacharterundersections160.400to160.425and 141167.349withoutensuringthatacriminalbackgroundcheckandfamilycaresafetyregistry 142checkareconductedforallmembersofthegoverningboardofthecharterschoolsorthe 143incorporatorsofthecharterschoolifinitialdirectorsarenotnamedinthearticlesof 144incorporation,norshallasponsorrenewacharterwithoutensuringacriminalbackground 145checkandfamilycaresafetyregistrycheckareconductedforeachmemberofthegoverning 146boardofthecharterschool. 147 [15.]9.Nomemberofthegoverningboardofacharterschoolshallholdanyofficeor 148employmentfromtheboardorthecharterschoolwhileservingasamember,norshallthe 149memberhaveanysubstantialinterest,asdefinedinsection105.450,inanyentityemployed 150byorcontractingwiththeboard.Noboardmembershallbeanemployeeofacompanythat 151providessubstantialservicestothecharterschool.Allmembersofthegoverningboardofthe 152charterschoolshallbeconsidereddecision-makingpublicservantsasdefinedinsection 153105.450forthepurposesofthefinancialdisclosurerequirementscontainedinsections 154105.483,105.485,105.487,and105.489. 155 [16.]10.Asponsorshalldevelopthepoliciesandproceduresfor: 156 (1)Thereviewofacharterschoolproposalincludinganapplicationthatprovides 157sufficientinformationforrigorousevaluationoftheproposedcharterandprovidesclear 158documentationthattheeducationprogramandacademicprogramarealignedwiththestate HB405 5 159standardsandgrade-levelexpectations,andprovidescleardocumentationofeffective 160governanceandmanagementstructures,andasustainableoperationalplan; 161 (2)Thegrantingofacharter; 162 (3)Theperformancecontractthatthesponsorwillusetoevaluatetheperformanceof 163charterschools.Charterschoolsshallmeetcurrentstateacademicperformancestandardsas 164wellasotherstandardsagreeduponbythesponsorandthecharterschoolintheperformance 165contract; 166 (4)Thesponsor'sintervention,renewal,andrevocationpolicies,includingthe 167conditionsunderwhichthechartersponsormayinterveneintheoperationofthecharter 168school,alongwithactionsandconsequencesthatmayensue,andtheconditionsforrenewal 169ofthecharterattheendoftheterm[, consistentwithsubsections8and9ofsection160.405]; 170 (5)Additionalcriteriathatthesponsorwilluseforongoingoversightofthecharter; 171and 172 (6)Procedurestobeimplementedifacharterschoolshouldclose,consistentwiththe 173provisionsofsubdivision(15)ofsubsection1ofsection160.405. 174 175Thedepartmentshallprovideguidancetosponsorsindevelopingsuchpoliciesand 176procedures. 177 [17.]11.(1)Asponsorshallprovidetimelysubmissiontothestateboardof 178educationofalldatanecessarytodemonstratethatthesponsorisinmaterialcompliancewith 179allrequirementsofsections160.400to160.425andsection167.349.Thestateboardof 180educationshallensureeachsponsorisincompliancewithallrequirementsundersections 181160.400to160.425and167.349foreachcharterschoolsponsoredbyanysponsor.Thestate 182boardshallnotifyeachsponsorofthestandardsforsponsorshipofcharterschools, 183delineatingbothwhatismandatedbystatuteandwhatbestpracticesdictate.Thestateboard 184shallevaluatesponsorstodeterminecompliancewiththesestandardseverythreeyears.The 185evaluationshallincludeasponsor'spoliciesandproceduresintheareasofcharterapplication 186approval;requiredcharteragreementtermsandcontent;sponsorperformanceevaluationand 187compliancemonitoring;andcharterrenewal,intervention,andrevocationdecisions.Nothing 188shallprecludethedepartmentfromundertakinganevaluationatanytimeforcause. 189 (2)Ifthedepartmentdeterminesthatasponsorisinmaterialnoncompliancewithits 190sponsorshipduties,thesponsorshallbenotifiedandgivenreasonabletimeforremediation. 191Ifremediationdoesnotaddressthecomplianceissuesidentifiedbythedepartment,the 192commissionerofeducationshallconductapublichearingandthereafterprovidenoticetothe 193chartersponsorofcorrectiveactionthatwillberecommendedtothestateboardofeducation. 194Correctiveactionbythedepartmentmayinclude[withholdingthesponsor'sfundingand] 195suspendingthesponsor'sauthoritytosponsoracharterschoolthatitcurrentlysponsorsorto HB405 6 196sponsoranyadditionalschooluntilthesponsorisreauthorizedbythestateboardofeducation 197undersection160.403. 198 (3)Thechartersponsormay,withinthirtydaysofreceiptofthenoticeofthe 199commissioner'srecommendation,provideawrittenstatementandotherdocumentationto 200showcauseastowhythatactionshouldnotbetaken.Finaldeterminationofcorrective 201actionshallbedeterminedbythestateboardofeducationbaseduponareviewofthe 202documentationsubmittedtothedepartmentandthechartersponsor. 203 (4)Ifthestateboardremovestheauthoritytosponsoracurrentlyoperatingcharter 204schoolunderanyprovisionoflaw,the[Missouricharterpublicschoolcommission] state 205boardshallbecomethesponsoroftheschoolfortheremainderofthetermofthecharter 206contract,andthestateboardshallnotbeauthorizedtorenewthecontract. 207 [18.]12.Ifasponsornotifiesacharterschoolofclosure[undersubsection8of 208section160.405], thedepartmentofelementaryandsecondaryeducationshallexerciseits 209financialwithholdingauthorityundersubsection[12]9ofsection160.415toassureall 210obligationsofthecharterschoolshallbemet.Thestate[, chartersponsor,orresident] and 211thesponsoringdistrictshallnotbeliableforanyoutstandingliabilityorobligationsofthe 212charterschool. 160.403.[1.]Thedepartmentofelementaryandsecondaryeducationshall[establish 2anannualapplicationandapprovalprocessforallentitieseligibletosponsorchartersasset 3forthinsection160.400whicharenotsponsoringacharterschoolasofAugust28,2012, 4exceptthattheMissouricharterpublicschoolcommissionshallnotberequiredtoundergo 5theapplicationandapprovalprocess.NolaterthanNovember1,2012,thedepartmentshall 6makeavailableinformationandguidelinesforalleligiblesponsorsconcerningthe 7opportunitytoapplyforsponsoringauthorityunderthissection. 8 2.Theapplicationprocessforsponsorshipshallrequireeachinterestedeligible 9sponsor,exceptfortheMissouricharterpublicschoolcommission,tosubmitanapplication 10byFebruaryfirstthatincludesthefollowing: 11 (1)Writtennotificationofintenttoserveasacharterschoolsponsorinaccordance 12withsections160.400to160.425andsection167.349; 13 (2)Evidenceoftheapplicantsponsor'sbudgetandpersonnelcapacity; 14 (3)Anoutlineoftherequestforproposalthattheapplicantsponsorwould,if 15approvedasachartersponsor,issuetosolicitcharterschoolapplicantsconsistentwith 16sections160.400to160.425andsection167.349; 17 (4)Theperformancecontractthattheapplicantsponsorwould,ifapprovedasa 18chartersponsor,usetoevaluatethecharterschoolsitsponsors;and 19 (5)Theapplicantsponsor'srenewal,revocation,andnonrenewalprocessesconsistent 20withsection160.405. HB405 7 21 3.ByAprilfirstofeachyear,thedepartmentshalldecidewhethertograntordenya 22sponsoringauthoritytoasponsorapplicant.Thisdecisionshallbemadebasedonthe 23applicantsponsor'scompliancewithsections160.400to160.425andsection167.349and 24properlypromulgatedrulesofthedepartment. 25 4.Withinthirtydaysofthedepartment'sdecision,thedepartmentshallexecutea 26renewablesponsoringcontractwitheachentityithasapprovedasasponsor.Thetermof 27eachauthorizingcontractshallbesixyearsandrenewable] exercisesponsorshipoversight 28andmonitoringtoensurethatlocalschooldistrictssponsoronlycharterschoolsthat 29meetthecriteriaspecifiedinsections160.400to160.425anddosobywayofa 30procedurethatcomplieswiththeprocessoutlinedinsections160.400to160.425. 160.405.1.(1)Aperson,groupororganizationseekingtoestablishacharterschool 2shallsubmittheproposedcharter,asprovidedinthissection,to[asponsor.Ifthesponsoris 3notaschoolboard,theapplicantshallgiveacopyofitsapplicationtotheschoolboardofthe 4districtinwhichthecharterschoolistobelocatedandtothestateboardofeducation,within 5fivebusinessdaysofthedatetheapplicationisfiledwiththeproposedsponsor.Theschool 6boardmayfileobjectionswiththeproposedsponsor,and,ifacharterisgranted,theschool 7boardmayfileobjectionswiththestateboardofeducation] thelocalschoolboardorthe 8specialadministrativeboardinthecasethatthestateboardhasestablishedaspecial 9administrativeboardforthedistrict. Thechartershallincludea[legallybinding 10performance] contractthatdescribestheobligationsandresponsibilitiesoftheschool[andthe 11sponsorasoutlinedinsections160.400to160.425andsection167.349andshalladdressthe 12following] toprovidestudentswithafree,accessible,nonsectarian,qualityeducation 13thatisdeliveredsubjecttothesamebasicsafeguardsandstandardsasotherdistrict 14schools,includingcompliancewith: 15 [(1)Amissionandvisionstatementforthecharterschool; 16 (2)Adescriptionofthecharterschool'sorganizationalstructureandbylawsofthe 17governingbody,whichwillberesponsibleforthepolicy,financialmanagement,and 18operationaldecisionsofthecharterschool,includingthenatureandextentofparental, 19professionaleducator,andcommunityinvolvementinthegovernanceandoperationofthe 20charterschool; 21 (3)Afinancialplanforthefirstthreeyearsofoperationofthecharterschool 22includingprovisionsforannualaudits; 23 (4)Adescriptionofthecharterschool'spolicyforsecuringpersonnelservices,its 24personnelpolicies,personnelqualifications,andprofessionaldevelopmentplan; 25 (5)Adescriptionofthegradesoragesofstudentsbeingserved; 26 (6)Theschool'scalendarofoperation,whichshallincludeatleasttheequivalentofa 27fullschooltermasdefinedinsection160.011; HB405 8 28 (7)Adescriptionofthecharterschool'spupilperformancestandardsandacademic 29programperformancestandards,whichshallmeettherequirementsofsubdivision(6)of 30subsection4ofthissection.Thecharterschoolprogramshallbedesignedtoenableeach 31pupiltoachievesuchstandardsandshallcontainacompletesetofindicators,measures, 32metrics,andtargetsforacademicprogramperformance,includingspecificgoalson 33graduationratesandstandardizedtestperformanceandacademicgrowth; 34 (8)Adescriptionofthecharterschool'seducationalprogramandcurriculum; 35 (9)Thetermofthecharter,whichshallbefiveyearsandmayberenewed; 36 (10)Procedures,consistentwiththeMissourifinancialaccountingmanual,for 37monitoringthefinancialaccountabilityofthecharter,whichshallmeettherequirementsof 38subdivision(4)ofsubsection4ofthissection; 39 (11)Preopeningrequirementsforapplicationsthatrequirethatcharterschoolsmeet 40allhealth,safety,andotherlegalrequirementspriortoopening; 41 (12)Adescriptionofthecharterschool'spoliciesonstudentdisciplineandstudent 42admission,whichshallincludeastatement,whereapplicable,ofthevalidityofattendanceof 43studentswhodonotresideinthedistrictbutwhomaybeeligibletoattendunderthetermsof 44judicialsettlementsandproceduresthatensureadmissionofstudentswithdisabilitiesina 45nondiscriminatorymanner; 46 (13)Adescriptionofthecharterschool'sgrievanceprocedureforparentsor 47guardians; 48 (14)Adescriptionoftheagreementandtimeframeforimplementationbetweenthe 49charterschoolandthesponsorastowhenasponsorshallinterveneinacharterschool,when 50asponsorshallrevokeacharterforfailuretocomplywithsubsection8ofthissection,and 51whenasponsorwillnotrenewacharterundersubsection9ofthissection; 52 (15)Procedurestobeimplementedifthecharterschoolshouldclose,asprovidedin 53subdivision(6)ofsubsection16ofsection160.400including: 54 (a)Orderlytransitionofstudentrecordstonewschoolsandarchivalofstudent 55records; 56 (b)Archivalofbusinessoperationandtransferorrepositoryofpersonnelrecords; 57 (c)Submissionoffinalfinancialreports; 58 (d)Resolutionofanyremainingfinancialobligations; 59 (e)Dispositionofthecharterschool'sassetsuponclosure;and 60 (f)Anotificationplantoinformparentsorguardiansofstudents,thelocalschool 61district,theretirementsysteminwhichthecharterschool'semployeesparticipate,andthe 62stateboardofeducationwithinthirtydaysofthedecisiontoclose; 63 (16)Adescriptionofthespecialeducationandrelatedservicesthatshallbeavailable 64tomeettheneedsofstudentswithdisabilities;and HB405 9 65 (17)Forallneworrevisedcharters,procedurestobeuseduponclosureofthecharter 66schoolrequiringthatunobligatedassetsofthecharterschoolbereturnedtothedepartmentof 67elementaryandsecondaryeducationfortheirdisposition,whichuponreceiptofsuchassets 68shallreturnthemtothelocalschooldistrictinwhichtheschoolwaslocated,thestate,orany 69otherentitytowhichtheywouldbelong. 70 71CharterschoolsoperatingonAugust27,2012,shallhaveuntilAugust28,2015,tomeetthe 72requirementsofthissubsection.] 73 (a)Openmeetingsandpublicrecordlaws; 74 (b)Prohibitionsagainstfor-profitoperationorprofiteeringasenforcedby 75conflictofinterest,financialdisclosure,andauditingrequirements; 76 (c)Thesamecivilrightsincluding,butnotlimitedto,constitutionalrightsand 77federalandstatelawsrelatingtoemployment,health,labor,safety,staffqualification, 78certificationrequirements,andprotectionsforstudentswithdisabilitiesasotherdistrict 79schools;and 80 (d)Thesamestandardsofaccreditation,accountability,andacademic 81assessmentandperformanceasotherdistrictschools. 82 (2)Thetermofthechartershallnotexceedfiveyears. 83 2.Proposedchartersshallbesubjecttothefollowingrequirements: 84 (1)Achartershallbesubmittedtothesponsor,andfollowthesponsor'spoliciesand 85proceduresforreviewandgrantingofacharterapproval[, andbeapprovedbythestateboard 86ofeducationbyJanuarythirty-firstpriortotheschoolyearoftheproposedopeningdateof 87thecharterschool]; 88 (2)Achartermaybeapproved[whenthesponsordeterminesthattherequirementsof 89thissectionaremet,determinesthattheapplicantissufficientlyqualifiedtooperateacharter 90school,andthattheproposedcharterisconsistentwiththesponsor'schartersponsorship 91goalsandcapacity.Thesponsor'sdecisionofapprovalordenialshallbemadewithinninety 92daysofthefilingoftheproposedcharter] onlyifthesponsordeterminesthecharteris 93bothnecessarytomeettheneedsofstudentsinthedistrictandwillmeetthoseneedsina 94mannerthatimprovesthelocalpublicschoolsystem; 95 (3)Charterschoolsmaybeauthorizedorexpandedonlyafteradistricthas 96assessedtheimpactoftheproposedcharterschoolonlocalpublicschoolresources, 97programs,andservicesincluding,butnotlimitedto,thedistrict'soperatingandcapital 98expenses,appropriatefacilityavailability,thelikelihoodthatthecharterwillprompt 99cutbacksorclosuresinlocalpublicschools,andconsiderationofwhetherother 100improvementsineithereducationalprogramorschoolmanagement,whichmayinclude 101reducedclasssizesandcommunityormagnetschools,wouldbetterservethedistrict's HB405 10 102needs.Thedistrictshallalsoconsidertheimpactofthecharterontheracial,ethnic, 103andsocioeconomiccompositionofschoolsandneighborhoodsandonequitableaccessto 104qualityservicesforalldistrictstudentsincluding,butnotlimitedto,studentswith 105specialneedsandEnglish-languagelearners.Theimpactanalysisshallbeindependent, 106developedwithcommunityinput,andbewrittenandpubliclyavailable.Ifthecharteris 107denied,theproposedsponsorshallnotifytheapplicantinwritingastothereasonsforits 108denialandforwardacopytothestateboardofeducationwithinfivebusinessdaysfollowing 109thedenial; 110 (4)Ifaproposedcharterisdeniedbyasponsor,theproposedchartermaybe 111submittedtothestateboardofeducation,alongwiththesponsor'swrittenreasonsforits 112denial.[Ifthestateboarddeterminesthattheapplicantmeetstherequirementsofthissection, 113thattheapplicantissufficientlyqualifiedtooperatethecharterschool,andthatgrantinga 114chartertotheapplicantwouldbelikelytoprovideeducationalbenefittothechildrenofthe 115district,thestateboardmaygrantacharterandactassponsorofthecharterschool.Thestate 116boardshallreviewtheproposedcharterandmakeadeterminationofwhethertodenyorgrant 117theproposedcharterwithinsixtydaysofreceiptoftheproposedcharter,providedthatany 118chartertobeconsideredbythestateboardofeducationunderthissubdivisionshallbe 119submittednolaterthanMarchfirstpriortotheschoolyearinwhichthecharterschoolintends 120tobeginoperations.Thestateboardofeducationshallnotifytheapplicantinwritingasthe 121reasonsforitsdenial,ifapplicable;and 122 (5)Thesponsorofacharterschoolshallgiveprioritytocharterschoolapplicantsthat 123proposeaschoolorientedtohigh-riskstudentsandtothereentryofdropoutsintotheschool 124system.Ifasponsorgrantsthreeormorecharters,atleastone-thirdofthechartersgrantedby 125thesponsorshallbetoschoolsthatactivelyrecruitdropoutsorhigh-riskstudentsastheir 126studentbodyandaddresstheneedsofdropoutsorhigh-riskstudentsthroughtheirproposed 127mission,curriculum,teachingmethods,andservices.Forpurposesofthissubsection,a 128"high-risk"studentisonewhoisatleastoneyearbehindinsatisfactorycompletionofcourse 129workorobtaininghighschoolcreditsforgraduation,hasdroppedoutofschool,isatriskof 130droppingoutofschool,needsdrugandalcoholtreatment,hasseverebehavioralproblems, 131hasbeensuspendedfromschoolthreeormoretimes,hasahistoryofseveretruancy,isa 132pregnantorparentingteen,hasbeenreferredforenrollmentbythejudicialsystem,isexiting 133incarceration,isarefugee,ishomelessorhasbeenhomelesssometimewithinthepreceding 134sixmonths,hasbeenreferredbyanareaschooldistrictforenrollmentinanalternative 135program,orqualifiesashighriskunderdepartmentofelementaryandsecondaryeducation 136guidelines.Dropoutshallbedefinedthroughtheguidelinesoftheschoolcoredatareport. 137Theprovisionsofthissubsectiondonotapplytocharterssponsoredbythestateboardof 138education] Thestateboardofeducationmayconsiderappealsofapprovalsordenialsof HB405 11 139chartersonlyonthegroundsthatthesponsor'sprocessforapprovingacharterwasnot 140properlyfollowedorthattheapprovalordenialofacharterwasarbitraryorillegal.If 141thestateboardofeducationdetermines,followingahearingontheappeal,thatthe 142sponsor'sprocessforapprovingthecharterwasnotproperlyfollowedorthatthe 143approvalordenialofacharterwasarbitraryorillegal,thestateboardmayremandthe 144applicationtothesponsorwithspecificinstructionsforcorrectionofthesponsor's 145reviewunderthesponsor'sapprovalprocess. 146 3.Ifacharterisapprovedbyasponsor,thecharterapplicationshallbesubmittedto 147thestateboardofeducation,alongwithastatementoffindingbythesponsorthatthe 148applicationmeetstherequirementsofsections160.400to160.425andsection167.349anda 149monitoringplanunderwhichthechartersponsorshallmonitorandevaluatethe[academic 150performance,includingannualperformancereports,ofstudentsenrolledinthecharterschool. 151Thestateboardofeducationshallapproveordenyacharterapplicationwithinsixtydaysof 152receiptoftheapplication.Thestateboardofeducationmaydenyacharterongroundsthat 153theapplicationfailstomeettherequirementsofsections160.400to160.425andsection 154167.349orthatachartersponsorpreviouslyfailedtomeetthestatutoryresponsibilitiesofa 155chartersponsor.Anydenialofacharterapplicationmadebythestateboardofeducation 156shallbeinwritingandshallidentifythespecificfailuresoftheapplicationtomeetthe 157requirementsofsections160.400to160.425andsection167.349,andthewrittendenialshall 158beprovidedwithintenbusinessdaystothesponsor] charterschool. 159 4.[Acharterschoolshall,asprovidedinitscharter: 160 (1)Benonsectarianinitsprograms,admissionpolicies,employmentpractices,and 161allotheroperations; 162 (2)Complywithlawsandregulationsofthestate,county,orcityrelatingtohealth, 163safety,andstateminimumeducationalstandards,asspecifiedbythestateboardofeducation, 164includingtherequirementsrelatingtostudentdisciplineundersections160.261,167.161, 165167.164,and167.171,notificationofcriminalconducttolawenforcementauthoritiesunder 166sections167.115to167.117,academicassessmentundersection160.518,transmittalof 167schoolrecordsundersection167.020,theminimumamountofschooltimerequiredunder 168section171.031,andtheemployeecriminalhistorybackgroundcheckandthefamilycare 169safetyregistrycheckundersection168.133; 170 (3)Exceptasprovidedinsections160.400to160.425andasspecificallyprovidedin 171othersections,beexemptfromalllawsandrulesrelatingtoschools,governingboardsand 172schooldistricts; 173 (4)Befinanciallyaccountable,usepracticesconsistentwiththeMissourifinancial 174accountingmanual,provideforanannualauditbyacertifiedpublicaccountant,publishaudit 175reportsandannualfinancialreportsasprovidedinchapter165,providedthattheannual HB405 12 176financialreportmaybepublishedonthedepartmentofelementaryandsecondaryeducation's 177internetwebsiteinadditiontootherpublishingrequirements,andprovideliabilityinsurance 178toindemnifytheschool,itsboard,staffandteachersagainsttortclaims.Acharterschoolthat 179receiveslocaleducationalagencystatusundersubsection6ofthissectionshallmeetthe 180requirementsimposedbytheElementaryandSecondaryEducationActforauditsofsuch 181agenciesandcomplywithallfederalauditrequirementsforcharterswithlocaleducational 182agencystatus.Forpurposesofanauditbypetitionundersection29.230,acharterschool 183shallbetreatedasapoliticalsubdivisiononthesametermsandconditionsastheschool 184districtinwhichitislocated.Forthepurposesofsecuringsuchinsurance,acharterschool 185shallbeeligiblefortheMissouripublicentityriskmanagementfundpursuanttosection 186537.700.Acharterschoolthatincursdebtshallincludearepaymentplaninitsfinancialplan; 187 (5)Provideacomprehensiveprogramofinstructionforatleastonegradeorage 188groupfromearlychildhoodthroughgradetwelve,asspecifiedinitscharter; 189 (6)(a)Designamethodtomeasurepupilprogresstowardthepupilacademic 190standardsadoptedbythestateboardofeducationpursuanttosection160.514,establish 191baselinestudentperformanceinaccordancewiththeperformancecontractduringthefirst 192yearofoperation,collectstudentperformancedataasdefinedbytheannualperformance 193reportthroughoutthedurationofthechartertoannuallymonitorstudentacademic 194performance,andtotheextentapplicablebasedupongradelevelsofferedbythecharter 195school,participateinthestatewidesystemofassessments,comprisedoftheessentialskills 196testsandthenationallystandardizednorm-referencedachievementtests,asdesignatedbythe 197stateboardpursuanttosection160.518,completeanddistributeanannualreportcardas 198prescribedinsection160.522,whichshallalsoincludeastatementthatbackgroundchecks 199havebeencompletedonthecharterschool'sboardmembers,andreporttoitssponsor,the 200localschooldistrict,andthestateboardofeducationastoitsteachingmethodsandany 201educationalinnovationsandtheresultsthereof.No]Eachcharterschoolshallbeconsidered 202intheMissourischoolimprovementprogramreviewofthedistrictinwhichitislocated[for 203theresourceorprocessstandardsoftheprogram. 204 (b)Forproposedhigh-riskoralternativecharterschools,sponsorsshallapprove 205performancemeasuresbasedonmission,curriculum,teachingmethods,andservices. 206Sponsorsshallalsoapprovecomprehensiveacademicandbehavioralmeasurestodetermine 207whetherstudentsaremeetingperformancestandardsonadifferenttimeframeasspecifiedin 208thatschool'scharter.Studentperformanceshallbeassessedcomprehensivelytodetermine 209whetherahigh-riskoralternativecharterschoolhasdocumentedadequatestudentprogress. 210Studentperformanceshallbebasedonsponsor-approvedcomprehensivemeasuresaswellas 211standardizedpublicschoolmeasures.Annualpresentationofcharterschoolreportcarddata HB405 13 212tothedepartmentofelementaryandsecondaryeducation,thestateboard,andthepublicshall 213includecomprehensivemeasuresofstudentprogress. 214 (c)Nothinginthissubdivisionshallbeconstruedaspermittingacharterschooltobe 215heldtolowerperformancestandardsthanotherpublicschoolswithinadistrict;however,the 216charterofacharterschoolmaypermitstudentstomeetperformancestandardsonadifferent 217timeframeasspecifiedinitscharter.Theperformancestandardsforalternativeandspecial 218purposecharterschoolsthattargethigh-riskstudentsasdefinedinsubdivision(5)of 219subsection2ofthissectionshallbebasedonmeasuresdefinedintheschool'sperformance 220contractwithitssponsors; 221 (7)Complywithallapplicablefederalandstatelawsandregulationsregarding 222studentswithdisabilities,includingsections162.670to162.710,theIndividualswith 223DisabilitiesEducationAct(20U.S.C.Section1400)andSection504oftheRehabilitation 224Actof1973(29U.S.C.Section794)orsuccessorlegislation; 225 (8)Providealongwithanyrequestforreviewbythestateboardofeducationthe 226following: 227 (a)Documentationthattheapplicanthasprovidedacopyoftheapplicationtothe 228schoolboardofthedistrictinwhichthecharterschoolistobelocated,exceptinthose 229circumstanceswheretheschooldistrictisthesponsorofthecharterschool;and 230 (b)Astatementoutliningthereasonsforapprovalordenialbythesponsor, 231specificallyaddressingtherequirementsofsections160.400to160.425and167.349. 232 5.(1)Proposedorexistinghigh-riskoralternativecharterschoolsmayinclude 233alternativearrangementsforstudentstoobtaincreditforsatisfyinggraduationrequirementsin 234theschool'scharterapplicationandcharter.Alternativearrangementsmayinclude,butnotbe 235limitedto,creditforoff-campusinstruction,embeddedcredit,workexperiencethroughan 236internshiparrangedthroughtheschool,andindependentstudies.Whenthestateboardof 237educationapprovesthecharter,anysuchalternativearrangementsshallbeapprovedatsuch 238time. 239 (2)Thedepartmentofelementaryandsecondaryeducationshallconductastudyof 240anycharterschoolgrantedalternativearrangementsforstudentstoobtaincreditunderthis 241subsectionafterthreeyearsofoperationtoassessstudentperformance,graduationrates, 242educationaloutcomes,andentryintotheworkforceorhighereducation]. 243 [6.]5.Thecharterofacharterschoolmaybeamended[attherequest] bymutual 244agreementofthegoverningbodyofthecharterschooland[ontheapprovalof]thesponsor. 245Thesponsorandthegoverningboardandstaffofthecharterschoolshalljointlyreviewthe 246school'sperformance,management, andoperations[duringthefirstyearofoperationand 247theneveryotheryearafterthemostrecentrevieworatanypointwheretheoperationor 248managementofthecharterschoolischangedortransferredtoanotherentity,eitherpublicor HB405 14 249private.Thegoverningboardofacharterschoolmayamendthecharter,ifthesponsor 250approvessuchamendment,orthesponsorandthegoverningboardmayreachanagreement 251inwritingtoreflectthecharterschool'sdecisiontobecomealocaleducationalagency.In 252suchcasethesponsorshallgivethedepartmentofelementaryandsecondaryeducation 253writtennoticenolaterthanMarchfirstofanyyear,withtheagreementtobecomeeffective 254Julyfirst.ThedepartmentmaywaivetheMarchfirstnoticedateinitsdiscretion.The 255departmentshallidentifyandfurnishalistofitsregulationsthatpertaintolocaleducational 256agenciestosuchschoolswithinthirtydaysofreceivingsuchnotice] asprovidedinthe 257contract. 258 [7.Sponsorsshallannuallyreviewthecharterschool'scompliancewithstatutory 259standardsincluding: 260 (1)Participationinthestatewidesystemofassessments,asdesignatedbythestate 261boardofeducationundersection160.518; 262 (2)Assurancesforthecompletionanddistributionofanannualreportcardas 263prescribedinsection160.522; 264 (3)Thecollectionofbaselinedataduringthefirstthreeyearsofoperationto 265determinethelongitudinalsuccessofthecharterschool; 266 (4)Amethodtomeasurepupilprogresstowardthepupilacademicstandardsadopted 267bythestateboardofeducationundersection160.514;and 268 (5)Publicationofeachcharterschool'sannualperformancereport. 269 8.(1)(a)Asponsor'spoliciesshallgiveschoolsclear,adequate,evidence-based,and 270timelynoticeofcontractviolationsorperformancedeficienciesandmandateintervention 271baseduponfindingsofthestateboardofeducationofthefollowing: 272 a.Thecharterschoolprovidesahighschoolprogramwhichfailstomaintaina 273graduationrateofatleastseventypercentinthreeofthelastfourschoolyearsunlessthe 274schoolhasdropoutrecoveryasitsmission; 275 b.Thecharterschool'sannualperformancereportresultsarebelowthedistrict's 276annualperformancereportresultsbasedontheperformancestandardsthatareapplicableto 277thegradelevelconfigurationofboththecharterschoolandthedistrictinwhichthecharter 278schoolislocatedinthreeofthelastfourschoolyears;and 279 c.Thecharterschoolisidentifiedasapersistentlylowestachievingschoolbythe 280departmentofelementaryandsecondaryeducation. 281 (b)]6.(1)Asponsorshallhaveapolicytorevokeacharterduringthechartertermif 282thereis[: 283 a.]clearevidenceofunderperformance[asdemonstratedinthecharterschool's 284annualperformancereportinthreeofthelastfourschoolyears;] or 285 [b.]aviolationofthelaworthepublictrustthatimperilsstudentsorpublicfunds. HB405 15 286 [(c)](2)Asponsorshallrevokeacharterortakeotherappropriateremedialaction[, 287whichmayincludeplacingthecharterschoolonprobationarystatusfornomorethantwenty- 288fourmonths,providedthatnomorethanonedesignationofprobationarystatusshallbe 289allowedforthedurationofthechartercontract,atanytimeifthecharterschoolcommitsa 290seriousbreachofoneormoreprovisionsofitscharteroronanyofthefollowinggrounds: 291failuretomeettheperformancecontractassetforthinitscharter,failuretomeetgenerally 292acceptedstandardsoffiscalmanagement,failuretoprovideinformationnecessarytoconfirm 293compliancewithallprovisionsofthecharterandsections160.400to160.425and167.349 294withinforty-fivedaysfollowingreceiptofwrittennoticerequestingsuchinformation,or 295violationoflaw. 296 (2)Thesponsormayplacethecharterschoolonprobationarystatustoallowthe 297implementationofaremedialplan,whichmayrequireachangeofmethodology,achangein 298leadership,orboth,afterwhich,ifsuchplanisunsuccessful,thechartermayberevoked. 299 (3)Atleastsixtydaysbeforeactingtorevokeacharter,thesponsorshallnotifythe 300governingboardofthecharterschooloftheproposedactioninwriting.Thenoticeshallstate 301thegroundsfortheproposedaction.Theschool'sgoverningboardmayrequestinwritinga 302hearingbeforethesponsorwithintwoweeksofreceivingthenotice. 303 (4)Thesponsorofacharterschoolshallestablishprocedurestoconduct 304administrativehearingsupondeterminationbythesponsorthatgroundsexisttorevokea 305charter.Finaldecisionsofasponsorfromhearingsconductedpursuanttothissubsectionare 306subjecttoanappealtothestateboardofeducation,whichshalldeterminewhetherthecharter 307shallberevoked. 308 (5)Aterminationshallbeeffectiveonlyattheconclusionoftheschoolyear,unless 309thesponsordeterminesthatcontinuedoperationoftheschoolpresentsaclearandimmediate 310threattothehealthandsafetyofthechildren. 311 (6)Achartersponsorshallmakeavailabletheschoolaccountabilityreportcard 312informationasprovidedundersection160.522andtheresultsoftheacademicmonitoring 313requiredundersubsection3ofthissection] asprovidedinthecontract. 314 [9.]7.[(1)]Asponsorshall[takeallreasonablestepsnecessaryto]confirmthateach 315charterschoolsponsoredbysuchsponsorisinmaterialcomplianceandremainsinmaterial 316compliancewithallmaterialprovisionsofthecharterandsections160.400to160.425and 317167.349.Everycharterschoolshallprovideallinformationnecessarytoconfirmongoing 318compliancewithallprovisionsofitscharterandsections160.400to160.425and167.349ina 319timelymannertoitssponsor. 320 [(2)Thesponsor'srenewalprocessofthecharterschoolshallbebasedonthe 321thoroughanalysisofacomprehensivebodyofobjectiveevidenceandconsiderif: HB405 16 322 (a)Thecharterschoolhasmaintainedresultsonitsannualperformancereportthat 323meetorexceedthedistrictinwhichthecharterschoolislocatedbasedontheperformance 324standardsthatareapplicabletothegrade-levelconfigurationofboththecharterschooland 325thedistrictinwhichthecharterschoolislocatedinthreeofthelastfourschoolyears; 326 (b)Thecharterschoolisorganizationallyandfiscallyviabledeterminingata 327minimumthattheschooldoesnothave: 328 a.Anegativebalanceinitsoperatingfunds; 329 b.Acombinedbalanceoflessthanthreepercentoftheamountexpendedforsuch 330fundsduringthepreviousfiscalyear;or 331 c.Expendituresthatexceedreceiptsforthemostrecentlycompletedfiscalyear; 332 (c)Thecharterisincompliancewithitslegallybindingperformancecontractand 333sections160.400to160.425andsection167.349;and 334 (d)Thecharterschoolhasanannualperformancereportconsistentwitha 335classificationofaccreditedforthreeofthelastfouryearsandisfiscallyviableasdescribedin 336paragraph(b)ofthissubdivision.Ifsuchisthecase,thecharterschoolmayhavean 337expeditedrenewalprocessasdefinedbyruleofthedepartmentofelementaryandsecondary 338education. 339 (3)(a)BeginningAugustfirstduringtheyearinwhichacharterisconsideredfor 340renewal,acharterschoolsponsorshalldemonstratetothestateboardofeducationthatthe 341charterschoolisincompliancewithfederalandstatelawasprovidedinsections160.400to 342160.425andsection167.349andtheschool'sperformancecontractincludingbutnotlimited 343tothoserequirementsspecifictoacademicperformance. 344 (b)Alongwithdatareflectingtheacademicperformancestandardsindicatedin 345paragraph(a)ofthissubdivision,thesponsorshallsubmitarevisedcharterapplicationtothe 346stateboardofeducationforreview. 347 (c)Usingthedatarequestedandtherevisedcharterapplicationunderparagraphs(a) 348and(b)ofthissubdivision,thestateboardofeducationshalldetermineifcompliancewithall 349standardsenumeratedinthissubdivisionhasbeenachieved.Thestateboardofeducationat 350itsnextregularlyscheduledmeetingshallvoteontherevisedcharterapplication. 351 (d)Ifacharterschoolsponsordemonstratestheobjectivesidentifiedinthis 352subdivision,thestateboardofeducationshallrenewtheschool'scharter. 353 10.]8.Aschooldistrictmayenterintoaleasewithacharterschoolforphysical 354facilities. 355 [11.]9.Agoverningboardoraschooldistrictemployeewhohascontrolover 356personnelactionsshallnottakeunlawfulreprisalagainstanotheremployeeattheschool 357districtbecausetheemployeeisdirectlyorindirectlyinvolvedinanapplicationtoestablisha 358charterschool.Agoverningboardoraschooldistrictemployeeshallnottakeunlawful HB405 17 359reprisalagainstaneducationalprogramoftheschoolortheschooldistrictbecausean 360applicationtoestablishacharterschoolproposestheconversionofalloraportionofthe 361educationalprogramtoacharterschool.Asusedinthissubsection,"unlawfulreprisal" 362meansanactionthatistakenbyagoverningboardoraschooldistrictemployeeasadirect 363resultofalawfulapplicationtoestablishacharterschoolandthatisadversetoanother 364employeeoraneducationalprogram. 365 [12.]10.Charterschoolboardmembersshallbesubjecttothesameliabilityforacts 366whileinofficeasiftheywereregularlyanddulyelectedmembersofschoolboardsinany 367otherpublicschooldistrictinthisstate.Thegoverningboardofacharterschoolmay 368participate,tothesameextentasaschoolboard,intheMissouripublicentityrisk 369managementfundinthemannerprovidedundersections537.700to537.756. 370 [13.]11.Anyentity,eitherpublicorprivate,operating,administering,orotherwise 371managingacharterschoolshallbeconsideredaquasi-publicgovernmentalbodyandsubject 372totheprovisionsofsections610.010to610.035. 373 [14.]12.Thechieffinancialofficerofacharterschoolshallmaintain: 374 (1)Asuretybondinanamountdeterminedbythesponsortobeadequatebasedon 375thecashflowoftheschool;or 376 (2)Aninsurancepolicyissuedbyaninsurancecompanylicensedtodobusinessin 377Missourionallemployeesintheamountoffivehundredthousanddollarsormorethat 378providescoverageintheeventofemployeetheft. 379 [15.Thedepartmentofelementaryandsecondaryeducationshallcalculateanannual 380performancereportforeachcharterschoolandshallpublishitinthesamemannerasannual 381performancereportsarecalculatedandpublishedfordistrictsandattendancecenters. 382 16.Thejointcommitteeoneducationshallcreateacommitteetoinvestigatefacility 383accessandaffordabilityforcharterschools.Thecommitteeshallbecomprisedofequal 384numbersofthecharterschoolsectorandthepublicschoolsectorandshallreportitsfindings 385tothegeneralassemblybyDecember31,2016.] 160.410.1.Acharterschoolshallenroll[: 2 (1)]allpupils[resident] residinginthedistrictinwhichitoperates[; 3 (2)Nonresidentpupilseligibletoattendadistrict'sschoolunderanurbanvoluntary 4transferprogram; 5 (3)Nonresidentpupilswhotransferfromanunaccrediteddistrictundersection 6167.895,providedthatthecharterschoolisanapprovedcharterschool,asdefinedinsection 7167.895,andsubjecttoallotherprovisionsofsection167.895; 8 (4)Inthecaseofacharterschoolwhosemissionincludesstudentdrop-outprevention 9orrecovery,anynonresidentpupilfromthesameoranadjacentcountywhoresidesina 10residentialcarefacility,atransitionallivinggrouphome,oranindependentlivingprogram HB405 18 11whoselastschoolofenrollmentisintheschooldistrictwherethecharterschoolis 12established,whosubmitsatimelyapplication;and 13 (5)Inthecaseofaworkplacecharterschool,anystudenteligibletoattendunder 14subdivision(1)or(2)ofthissubsectionwhoseparentisemployedinthebusinessdistrict, 15whosubmitsatimelyapplication,unlessthenumberofapplicationsexceedsthecapacityofa 16program,class,gradelevelorbuilding.Theconfigurationofabusinessdistrictshallbeset 17forthinthecharterandshallnotbeconstruedtocreateanundueadvantageforasingle 18employerorsmallnumberofemployers] asprovidedinthecontractandsubjecttoother 19requirementsoflawapplicabletoenrollmentofstudentsinthedistrict,providedthata 20charterschooloperatingunderacontractineffectontheeffectivedateofthissection 21mayenrollpupilsasprovidedinthecharterandsuchcontractuntiltheexpirationof 22suchcontract. 23 2.Ifcapacityisinsufficienttoenrollallpupilswhosubmitatimelyapplication,the 24charterschoolshallhaveanadmissionsprocessthatassuresallapplicantsofanequalchance 25ofgainingadmissionanddoesnotdiscriminatebasedonparents'abilitytopayfeesortuition 26[exceptthat: 27 (1)Acharterschoolmayestablishageographicalareaaroundtheschoolwhose 28residentswillreceiveapreferenceforenrollingintheschool,providedthatsuchpreferences 29donotresultintheestablishmentofraciallyorsocioeconomicallyisolatedschoolsand 30providedsuchpreferencesconformtopoliciesandguidelinesestablishedbythestateboardof 31education; 32 (2)Acharterschoolmayalsogiveapreferenceforadmissionofchildrenwhose 33siblingsattendtheschoolorwhoseparentsareemployedattheschoolorinthecaseofa 34workplacecharterschool,achildwhoseparentisemployedinthebusinessdistrictoratthe 35businesssiteofsuchschool; 36 (3)Charterschoolsmayalsogiveapreferenceforadmissiontohigh-riskstudents,as 37definedinsubdivision(5)ofsubsection2ofsection160.405,whentheschooltargetsthese 38studentsthroughitsproposedmission,curriculum,teachingmethods,andservices; 39 (4)Acharterschoolmayalsogiveapreferenceforadmissiontostudentswhowillbe 40eligibleforthefreeandreducedpricelunchprogramintheupcomingschoolyear]. 41 3.Acharterschoolshallnotlimitadmissionbasedonrace,ethnicity,nationalorigin, 42disability,incomelevel,[exceptasallowedundersubdivision(4)ofsubsection2ofthis 43section,] proficiencyintheEnglishlanguage, orathleticability,butmaylimitadmissionto 44pupilswithinagivenagegrouporgradelevel.Charterschoolsmaylimitadmissionbasedon 45genderonlywhentheschoolisasingle-genderschool.[Studentsofacharterschoolwho 46havebeenenrolledforafullacademicyearshallbecountedintheperformanceofthecharter 47schoolonthestatewideassessmentsinthatcalendaryear,unlessotherwiseexemptedas HB405 19 48Englishlanguagelearners.Forpurposesofthissubsection,"fullacademicyear"meansthe 49lastWednesdayinSeptemberthroughtheadministrationoftheMissouriassessmentprogram 50testwithouttransferringoutoftheschoolandre-enrolling.] 51 4.Acharterschoolshallmakeavailableforpublicinspection,andprovideupon 52request,totheparent,guardian,orothercustodianofanyschool-agepupilresidentinthe 53districtinwhichtheschoolislocatedthefollowinginformation: 54 (1)Theschool'scharter; 55 (2)Theschool'smostrecentannualreportcardpublishedaccordingtosection 56160.522;and 57 (3)Theresultsofbackgroundchecksonthecharterschool'sboardmembers[; and 58 (4)Ifacharterschoolisoperatedbyamanagementcompany,acopyofthewritten 59contractbetweenthegoverningboardofthecharterschoolandtheeducationalmanagement 60organizationorthechartermanagementorganizationforservices.Thecharterschoolmay 61chargereasonablefees,nottoexceedtheratespecifiedinsection610.026forfurnishing 62copiesofdocumentsunderthissubsection]. 63 5.Whenastudentattendingacharterschoolwhoisaresidentoftheschooldistrictin 64whichthecharterschoolislocatedmovesoutoftheboundariesofsuchschooldistrict,the 65studentmaycompletethecurrentsemesterandshallbeconsideredaresidentstudent.The 66student'sparentorlegalguardianshallberesponsibleforthestudent'stransportationtoand 67fromthecharterschool. 68 6.Ifachangeinschooldistrictboundarylinesoccursundersection162.223, 69162.431,162.441,or162.451,orbyactionofthestateboardofeducationundersection 70162.081,includingattachmentofaschooldistrict'sterritorytoanotherdistrictordissolution, 71suchthatastudentattendingacharterschoolpriortosuchchangenolongerresidesina 72schooldistrictinwhichthecharterschoolislocated,thenthestudentmaycompletethe 73currentacademicyearatthecharterschool.Thestudentshallbeconsideredaresident 74student.Thestudent'sparentorlegalguardianshallberesponsibleforthestudent's 75transportationtoandfromthecharterschool. 76 7.Theprovisionsofsections167.018and167.019concerningfosterchildren's 77educationalrightsareapplicabletocharterschools. 160.415.1.Forthepurposesofcalculationanddistributionofstateschoolaidunder 2section163.031,pupilsenrolledinacharterschoolshallbeincludedinthepupilenrollment 3oftheschooldistrictwithinwhicheachpupilresides.Eachcharterschoolshallreportthe 4eligibilityforfreeandreducedpricelunch,specialeducation,orlimitedEnglishproficiency 5status,aswellaseligibilityforcategoricalaid,ofpupilsresidentinaschooldistrictwhoare 6enrolledinthecharterschooltotheschooldistrictinwhichthosepupilsreside.Thecharter 7schoolshallreporttheaveragedailyattendancedata,freeandreducedpricelunchcount, HB405 20 8specialeducationpupilcount,andlimitedEnglishproficiencypupilcounttothestate 9departmentofelementaryandsecondaryeducation.Eachcharterschoolshallpromptly 10notifythestatedepartmentofelementaryandsecondaryeducationandthepupil'sschool 11districtwhenapupildiscontinuesenrollmentatacharterschool. 12 2.[Exceptasprovidedinsubsections3and4ofthissection,the]Aidpaymentsfor 13charterschoolsshallbeasdescribedinthissubsection. 14 (1)Aschooldistricthavingoneormoreresidentpupilsattendingacharterschool 15shallpaytothecharterschoolanannualamountequaltotheproductofthecharterschool's 16weightedaveragedailyattendanceandthestateadequacytarget,multipliedbythedollar 17valuemodifierforthedistrict,pluslocaltaxrevenuesperweightedaveragedailyattendance 18fromtheincidentalandteachers'fundsinexcessoftheperformancelevyasdefinedinsection 19163.011plusallotherstateaidattributabletosuchpupils. 20 (2)Thedistrictofresidenceofapupilattendingacharterschoolshallalsopaytothe 21charterschoolanyotherfederalorstateaidthatthedistrictreceivesonaccountofsuchpupil. 22 (3)Ifthedepartmentoverpaysorunderpaystheamountduetothecharterschool, 23suchoverpaymentorunderpaymentshallberepaidbythecharterschoolorcreditedtothe 24charterschoolintwelveequalpaymentsinthenextfiscalyear. 25 (4)Theamountsprovidedpursuanttothissubsectionshallbeproratedforpartialyear 26enrollmentforapupil. 27 (5)Aschooldistrictshallpaytheamountsduepursuanttothissubsectionasthe 28disbursalagentandnolaterthantwentydaysfollowingthereceiptofanysuchfunds.The 29departmentofelementaryandsecondaryeducationshallpaytheamountsduewhenitactsas 30thedisbursalagentwithinfivedaysoftherequiredduedate. 31 3.[Aworkplacecharterschoolshallreceivepaymentforeacheligiblepupilas 32providedundersubsection2ofthissection,exceptthatifthepupilisnotaresidentofthe 33districtandisparticipatinginavoluntaryinterdistricttransferprogram,thepaymentforsuch 34pupilsshallbethesameasprovidedundersection162.1060. 35 4.Acharterschoolthathasdeclareditselfasalocaleducationalagencyshallreceive 36fromthedepartmentofelementaryandsecondaryeducationanannualamountequaltothe 37productofthecharterschool'sweightedaveragedailyattendanceandthestateadequacy 38target,multipliedbythedollarvaluemodifierforthedistrict,pluslocaltaxrevenuesper 39weightedaveragedailyattendancefromtheincidentalandteachersfundsinexcessofthe 40performancelevyasdefinedinsection163.011plusallotherstateaidattributabletosuch 41pupils.Ifacharterschooldeclaresitselfasalocaleducationalagency,thedepartmentof 42elementaryandsecondaryeducationshall,uponnoticeofthedeclaration,reducethepayment 43madetotheschooldistrictbytheamountspecifiedinthissubsectionandpaydirectlytothe 44charterschooltheannualamountreducedfromtheschooldistrict'spayment. HB405 21 45 5.Ifaschooldistrictfailstomaketimelypaymentsofanyamountforwhichitisthe 46disbursalagent,thestatedepartmentofelementaryandsecondaryeducationshallauthorize 47paymenttothecharterschooloftheamountduepursuanttosubsection2ofthissectionand 48shalldeductthesameamountfromthenextstateschoolaidapportionmenttotheowing 49schooldistrict.Ifacharterschoolispaidmoreorlessthantheamountsduepursuanttothis 50section,theamountofoverpaymentorunderpaymentshallbeadjustedequallyinthenext 51twelvepaymentsbytheschooldistrictorthedepartmentofelementaryandsecondary 52education,asappropriate.] Anydisputebetweentheschooldistrictandacharterschoolasto 53theamountowingtothecharterschoolshallberesolved[bythedepartmentofelementary 54andsecondaryeducation,andthedepartment'sdecisionshallbethefinaladministrative 55actionforthepurposesofreviewpursuanttochapter536.Duringtheperiodofdispute,the 56departmentofelementaryandsecondaryeducationshallmakeeveryadministrativeand 57statutoryefforttoallowthecontinuededucationofstudentsintheircurrentcharterschool 58setting] asprovidedinthecontract. 59 [6.]4.Thecharterschoolandalocalschoolboardmayagreebycontractforservices 60tobeprovidedbytheschooldistricttothecharterschool.Thecharterschoolmaycontract 61withanyotherentityforservices.Suchservicesmayincludebutarenotlimitedtofood 62service,custodialservice,maintenance,managementassistance,curriculumassistance,media 63servicesandlibraries, providedthatnocharterschoolshallbeoperatedbyamanagement 64companyoranyentityotherthanthecharterschoolboardanditschiefadministrative 65officer,andshallbesubjecttonegotiationbetweenthecharterschoolandthelocalschool 66boardorotherentity.Documentedactualcostsofsuchservicesshallbepaidforbythe 67charterschool. 68 [7.Inthecaseofaproposedcharterschoolthatintendstocontractwithaneducation 69serviceproviderforsubstantialeducationalservicesormanagementservices,therequestfor 70proposalsshalladditionallyrequirethecharterschoolapplicantto: 71 (1)Provideevidenceoftheeducationserviceprovider'ssuccessinservingstudent 72populationssimilartothetargetedpopulation,includingdemonstratedacademicachievement 73aswellassuccessfulmanagementofnonacademicschoolfunctions,ifapplicable; 74 (2)Provideatermsheetsettingforththeproposeddurationoftheservicecontract; 75rolesandresponsibilitiesofthegoverningboard,theschoolstaff,andtheserviceprovider; 76scopeofservicesandresourcestobeprovidedbytheserviceprovider;performance 77evaluationmeasuresandtimelines;compensationstructure,includingclearidentificationof 78allfeestobepaidtotheserviceprovider;methodsofcontractoversightandenforcement; 79investmentdisclosure;andconditionsforrenewalandterminationofthecontract; 80 (3)Discloseanyknownconflictsofinterestbetweentheschoolgoverningboardand 81proposedserviceprovideroranyaffiliatedbusinessentities; HB405 22 82 (4)Discloseandexplainanyterminationornonrenewalofcontractsforequivalent 83servicesforanyothercharterschoolintheUnitedStateswithinthepastfiveyears; 84 (5)Ensurethatthelegalcounselforthecharterschoolshallreportdirectlytothe 85charterschool'sgoverningboard;and 86 (6)Provideaprocesstoensurethattheexpendituresthattheeducationservice 87providerintendstobilltothecharterschoolshallreceivepriorapprovalofthegoverning 88boardoritsdesignee. 89 8.]5.Acharterschoolmayenterintocontractswithcommunitypartnershipsand 90stateagenciesactingincollaborationwithsuchpartnershipsthatprovideservicestostudents 91andtheirfamilieslinkedtotheschool. 92 [9.]6.Acharterschoolshallbeeligiblefortransportationstateaidpursuanttosection 93163.161andshallbefreetocontractwiththelocaldistrict,oranyotherentity,forthe 94provisionoftransportationtothestudentsofthecharterschool. 95 [10.]7.(1)Theproportionateshareofstateandfederalresourcesgeneratedby 96studentswithdisabilitiesorstaffservingthemshallbepaidinfulltocharterschoolsenrolling 97thosestudentsbytheirschooldistrictwheresuchenrollmentisthroughacontractforservices 98describedinthissection.Theproportionateshareofmoneygeneratedunderotherfederalor 99statecategoricalaidprogramsshallbedirectedtocharterschoolsservingsuchstudents 100eligibleforthataid. 101 (2)Acharterschoolshallprovidethespecialservicesprovidedpursuanttosection 102162.705andmayprovidethespecialservicespursuanttoacontractwithaschooldistrictor 103anyproviderofsuchservices. 104 [11.]8.Acharterschoolshallnotchargetuitionorimposefeesthataschooldistrictis 105prohibitedfromchargingorimposing,exceptthatacharterschoolmayreceivetuition 106paymentsfromdistrictsinthesameoranadjoiningcountyfornonresidentstudentswho 107transfertoanapprovedcharterschool,asdefinedinsection167.895,fromanunaccredited 108district. 109 [12.]9.Acharterschoolisauthorizedtoincurdebtinanticipationofreceiptoffunds. 110Acharterschoolmayalsoborrowtofinancefacilitiesandothercapitalitems.Aschool 111districtmayincurbondedindebtednessortakeothermeasurestoprovideforphysical 112facilitiesandothercapitalitemsforcharterschoolsthatitsponsorsorcontractswith.Except 113asotherwisespecificallyprovidedinsections160.400to160.425,uponthedissolutionofa 114charterschool,anyliabilitiesofthecorporationwillbesatisfiedthroughtheproceduresof 115chapter355.Acharterschoolshallsatisfyallitsfinancialobligationswithintwelvemonths 116ofnoticefromthesponsorofthecharterschool'sclosure[undersubsection8ofsection 117160.405]. Aftersatisfactionofallitsfinancialobligations,acharterschoolshallreturnany 118remainingstateandfederalfundstothedepartmentofelementaryandsecondaryeducation HB405 23 119fordisposition[asstatedinsubdivision(17)ofsubsection1ofsection160.405]. The 120departmentofelementaryandsecondaryeducationmaywithholdfundingatalevelthe 121departmentdeterminestobeadequateduringaschool'slastyearofoperationuntilthe 122departmentdeterminesthatschoolrecords,liabilities,andreportingrequirements,includinga 123fullaudit,aresatisfied. 124 [13.]10.Charterschoolsshallnothavethepowertoacquirepropertybyeminent 125domain. 126 [14.]11.Thegoverningboardofacharterschoolisauthorizedtoacceptgrants,gifts 127ordonationsofanykindandtoexpendorusesuchgrants,giftsordonations.Agrant,giftor 128donationshallnotbeacceptedbythegoverningboardifitissubjecttoanyconditioncontrary 129tolawapplicabletothecharterschoolorotherpublicschools,orcontrarytothetermsofthe 130charter. 131 [15.]12.Inadditiontoanystateaidremittedtocharterschoolsunderthissection,the 132departmentofelementaryandsecondaryeducationshallremittoanycharterschoolan 133amountequaltotheweightedaveragedailyattendanceofthecharterschoolmultipliedbythe 134differenceof: 135 (1)Theamountofstateaidandlocalaidperweightedaveragedailyattendance 136receivedbytheschooldistrictinwhichthecharterschoolislocated,notincludinganyfunds 137remittedtocharterschoolsinthedistrict.Forthepurposesofthissubdivision,theweighted 138averagedailyattendanceoftheschooldistrictshallnotincludetheweightedaveragedaily 139attendanceofthecharterschoolslocatedinthedistrict;and 140 (2)Theamountofstateaidandlocalaidperweightedaveragedailyattendanceofthe 141charterschoolreceivedbythecharterschool. 142 [16.]13.Charterschoolsmayadjustweightedaveragedailyattendancepursuantto 143section163.036. 144 [17.]14.Whencalculatingtheamountsinsubdivisions(1)and(2)ofsubsection[15] 14512ofthissection,thedepartmentshallutilizethemostcurrentdatatowhichthedepartment 146hasaccess. 147 [18.]15.Forthepurposesofsubsection[15]12ofthissection: 148 (1)Thedefinitionscontainedinsection163.011,shallapply; 149 (2)Theterm"localaid"shallmeanalllocalandcountyrevenuereceived,including, 150butnotlimitedto,thefollowing: 151 (a)Propertytaxesanddelinquenttaxes; 152 (b)Merchants'andmanufacturers'taxrevenues; 153 (c)Financialinstitutions'taxrevenues; 154 (d)Citysalestaxrevenue,includingcitysalestaxcollectedinanycitynotwithina 155county; HB405 24 156 (e)Paymentsinlieuoftaxes;and 157 (f)Revenuesfromstate-assessedrailroadandutilitiestax; 158 (3)Thetermlocalaidshallnotbeconstruedtoinclude: 159 (a)Charitablecontributions,gifts,andgrantsmadetoschooldistricts; 160 (b)Interestearningsofschooldistrictsandstudentfeespaidtoschooldistricts; 161 (c)Debtserviceauthorizedbyapublicvoteforthepurposeofmakingpaymentsona 162bondissuanceofaschooldistrict; 163 (d)PropositionCrevenuesreceivedforschoolpurposesfromtheschooldistricttrust 164fundundersection163.087;or 165 (e)Anyotherfundingsolelyintendedforaparticularschooldistrictortheir 166respectiveemployees,schools,foundations,ororganizations; 167 (4)Theterm"stateaid"shallmeananyrevenuesreceivedpursuanttothissectionand 168sections163.043and163.087. 169 [19.Notwithstandinganyotherprovisionoflawtothecontrary,subsections15to18 170ofthissectionshallbeapplicabletocharterschoolsoperatedonlyinthefollowingschool 171districts,providedthatnosuchschooldistrictshallbelocatedinacountywithmorethanone 172hundredfiftythousandbutfewerthantwohundredthousandinhabitants: 173 (1)Inametropolitanschooldistrict; 174 (2)Inanurbanschooldistrictcontainingmostorallofacitywithmorethanfour 175hundredthousandinhabitantsandlocatedinmorethanonecounty; 176 (3)Inaschooldistrictthathasbeenclassifiedasunaccreditedbythestateboardof 177education; 178 (4)Inaschooldistrictthathasbeenclassifiedasprovisionallyaccreditedbythestate 179boardofeducationandhasreceivedscoresonitsannualperformancereportconsistentwitha 180classificationofprovisionallyaccreditedorunaccreditedforthreeconsecutiveschoolyears 181beginningwiththe2012-13accreditationyearundertheconditionsdescribedinparagraphs 182(a)and(b)ofsubdivision(4)ofsubsection2ofsection160.400;or 183 (5)Inaschooldistrictthathasbeenaccreditedwithoutprovisions,sponsoredonlyby 184thelocalschoolboardundertheconditionsdescribedinsubdivision(6)ofsubsection2of 185section160.400. 186 20.]16.(1)Themembersofthegoverningboardofacharterschoolshallbe 187residentsofthestateofMissouri. 188 (2)Anycurrentmemberofagoverningboardofacharterschoolwhodoesnotmeet 189therequirementsinsubdivision(1)ofthissubsectionmaycompletetheirterm.Such 190individualshallnotberenominatedasamemberofthegoverningboardonwhichheorshe 191sits. HB405 25 192 [21.]17.(1)Anycharterschoolmanagementcompanyoperatingacharterschoolin 193thestateshallbeanonprofitcorporationincorporatedpursuanttochapter355. 194 (2)Notwithstandinganyprovisionoflawtothecontrary,ifacharterschoolis 195operatedbyacharterschoolmanagementcompany,alllawsandregulationsthatapplyto 196employeesofsuchcharterschoolshallapplytotheactionsofanyemployeesofthe 197managementcompanywhiletheyareconductinganyworkrelatingtothedirectdecision- 198makingoftheoperationofsuchcharterschool. 199 [22.]18.BeginningJuly1,2023,theprovisionsofsection160.995shallbe 200applicabletocharterschools. 201 [23.]19.Eachcharterschoolshallpublishitsannualperformancereportonthe 202school'swebsiteinadownloadableformat. 160.417.1.ByOctober1,2012,andbyeachOctoberfirstthereafter,thesponsorof 2eachcharterschoolshallreviewtheinformationsubmittedonthereportrequiredbysection 3162.821toidentifycharterschoolsexperiencingfinancialstress.[Thedepartmentof 4elementaryandsecondaryeducationshallbeauthorizedtoobtainsuchadditionalinformation 5fromacharterschoolasmaybenecessarytodeterminethefinancialconditionofthecharter 6school.Annually,alistingofcharterschoolsidentifiedasexperiencingfinancialstress 7accordingtotheprovisionsofthissectionshallbeprovidedtothegovernor,speakerofthe 8houseofrepresentatives,andpresidentprotemporeofthesenatebythedepartmentof 9elementaryandsecondaryeducation. 10 [2.Forthepurposesofthissection,acharterschoolshallbeidentifiedas 11experiencingfinancialstressifit: 12 (1)Attheendofitsmostrecentlycompletedfiscalyear: 13 (a)Hasanegativebalanceinitsoperatingfunds;or 14 (b)Hasacombinedbalanceoflessthanthreepercentoftheamountexpendedfrom 15suchfundsduringthepreviousfiscalyear; 16 (2)Forthemostrecentlycompletedfiscalyearexpenditures,exceededreceiptsfor 17anyofitsfundsbecauseofrecurringcosts;or 18 (3)Duetoinsufficientfundbalancesorreserves,incurreddebtafterJanuarythirty- 19firstandbeforeJulyfirstduringthemostrecentlycompletedfiscalyearinordertomeet 20expendituresofthecharterschool. 21 3.]2.Thesponsorshallpromptlynotify[byNovemberfirst]thegoverningboardof 22thecharterschoolidentifiedasexperiencingfinancialstress.Uponreceivingthenotification, 23the[governingboardshalldevelop,orcausetohavedeveloped,andshallapproveabudget 24andeducationplanonformsprovidedbythesponsor.Thebudgetandeducationplanshallbe 25submittedtothesponsor,signedbytheofficersofthecharterschool,withinforty-five 26calendardaysofnotificationthatthecharterschoolhasbeenidentifiedasexperiencing HB405 26 27financialstress.Minimally,thebudgetandeducationplan]charterschoolandsponsor 28shallmutuallyagreetoarevisedbudgetandeducationplanthatshall: 29 (1)Givecompetentassurancesthatadequateeducationalservicestostudentsofthe 30charterschoolshallcontinueuninterruptedfortheremainderofthecurrentschoolyearand 31thatthecharterschoolcanprovidetheminimumamountofschooltimerequiredbysection 32171.031; 33 (2)Outlineaproceduretobefollowedbythecharterschooltoreporttocharter 34schoolpatronsaboutthefinancialconditionofthecharterschool;and 35 (3)Detailtheexpenditurereductionmeasures,revenueincreases,orotheractionsto 36betakenbythecharterschooltoaddressitsconditionoffinancialstress. 37 [4.Uponreceiptandfollowingreviewofanybudgetandeducationplan,thesponsor 38maymakesuggestionstoimprovetheplan.Nothinginsections160.400to160.425or 39section167.349shallexemptacharterschoolfromsubmittingabudgetandeducationplanto 40thesponsoraccordingtotheprovisionsofthissectionfollowingeachsuchnotificationthata 41charterschoolhasbeenidentifiedasexperiencingfinancialstress,exceptthatthesponsor 42maypermitacharterschool'sgoverningboardtomakeamendmentstoorupdateabudgetand 43educationplanpreviouslysubmittedtothesponsor. 44 5.Thedepartmentmaywithholdanypaymentoffinancialaidotherwiseduetothe 45charterschooluntilsuchtimeasthesponsorandthecharterschoolhavefullycompliedwith 46thissection.] 160.420.1.Anyschooldistrictinwhichcharterschoolsmaybeestablishedunder 2sections160.400to160.425shallestablishauniformpolicywhichprovidesthatifacharter 3schoolofferstoretaintheservicesofanemployeeofaschooldistrict,andtheemployee 4acceptsapositionatthecharterschool,anemployeeattheemployee'soptionmayremainan 5employeeofthedistrictandthecharterschoolshallpaytothedistrictthedistrict'sfullcosts 6ofsalaryandbenefitsprovidedtotheemployee.Thedistrict'spolicyshallprovidethatany 7teacherwhoacceptsapositionatacharterschoolandoptstoremainanemployeeofthe 8districtretainssuchteacher'spermanentteacherstatusandretainssuchteacher'sseniority 9rightsinthedistrictforthreeyears.Theschooldistrictshallnotbeliableforanysuch 10employee'sactswhileanemployeeofthecharterschool. 11 2.Acharterschool[may] shallemploy[noncertificated] certificatedinstructional 12personnel[; providedthatnomorethantwentypercentofthefull-timeequivalent 13instructionalstaffpositionsattheschoolarefilledbynoncertificatedpersonnel.All 14noncertificatedinstructionalpersonnelshallbesupervisedbycertificatedinstructional 15personnel.Acharterschoolthathasaforeignlanguageimmersionexperienceasitschief 16educationalmission,asstatedinitscharter,shallnotbesubjecttothetwenty-percent 17requirementofthissubsectionbutshallensurethatanyteacherswhosedutiesinclude HB405 27 18instructiongiveninaforeignlanguagehavecurrentvalidcredentialsinthecountryinwhich 19suchteacherreceivedhisorhertrainingandshallremainsubjecttotheremaining 20requirementsofthissubsection.Thecharterschoolshallensurethatallinstructional 21employeesofthecharterschoolhaveexperience,trainingandskillsappropriatetothe 22instructionaldutiesoftheemployee,andthecharterschoolshallensurethatacriminal 23backgroundcheckandfamilycaresafetyregistrycheckareconductedforeachemployeeof 24thecharterschoolpriortothehiringoftheemployeeundertherequirementsofsection 25168.133.Thecharterschoolmaynotemployinstructionalpersonnelwhosecertificateof 26licensetoteachhasbeenrevokedoriscurrentlysuspendedbythestateboardofeducation. 27Appropriateexperience,trainingandskillsofnoncertificatedinstructionalpersonnelshallbe 28determinedconsidering: 29 (1)Teachingcertificatesissuedbyanotherstateorstates; 30 (2)CertificationbytheNationalBoardforProfessionalTeachingStandards; 31 (3)Collegedegreesintheappropriatefield; 32 (4)Evidenceoftechnicaltrainingandcompetencewhensuchisappropriate;and 33 (5)Thelevelofsupervisionandcoordinationwithcertificatedinstructionalstaff] 34underthesamerequirementsapplicabletoinstructionalpersonnelofthedistrict, 35providedthatthissubsectionshallnotapplytononcertificatedpersonnelemployedbya 36charterschoolunderacontractineffectontheeffectivedateofthissection. 37 3.Personnelemployedbythecharterschoolshallparticipateintheretirementsystem 38oftheschooldistrictinwhichthecharterschoolislocated,subjecttothesameterms, 39conditions,requirementsandotherprovisionsapplicabletopersonnelemployedbytheschool 40district.Forpurposesofparticipatingintheretirementsystem,thecharterschoolshallbe 41consideredtobeapublicschoolwithintheschooldistrict,andpersonnelemployedbythe 42charterschoolshallbepublicschoolemployees.Intheeventofalapseoftheschooldistrict's 43corporateorganizationasdescribedinsubsections1and4ofsection162.081,personnel 44employedbythecharterschoolshallcontinuetoparticipateintheretirementsystemandshall 45dosoonthesameterms,conditions,requirementsandotherprovisionsastheyparticipated 46priortothelapse. 160.425.1.The"MissouriCharterPublicSchoolCommission"isherebycreated 2withtheauthoritytosponsorhighqualitycharterschoolsthroughoutthestateofMissouri. 3 2.Thecommissionshallconsistofninemembersappointedbythegovernor,byand 4withtheadviceandconsentofthesenate.Nomorethanfiveofthemembersshallbeofthe 5samepoliticalparty.Nomorethantwomembersshallbefromthesamecongressional 6district.Thetermofofficeofeachmembershallbefouryears,exceptthoseofthemembers 7firstappointed,ofwhichthreeshallbeappointedforatermofoneyear,twoforatermoftwo 8years,twoforatermofthreeyears,andtwoforatermoffouryears.Attheexpirationofthe HB405 28 9termofeachmember,thegovernor,byandwiththeadviceandconsentofthesenate,shall 10appointasuccessor. 11 3.Theappointeestothecommissionshallbeselectedasfollows: 12 (1)Onememberselectedbythegovernorfromaslateofthreerecommendedbythe 13commissionerofeducation; 14 (2)Onememberselectedbythegovernorfromaslateofthreerecommendedbythe 15commissionerofhighereducation; 16 (3)Onememberselectedbythegovernorfromaslateofthreerecommendedbythe 17presidentprotemporeofthesenate; 18 (4)Onememberselectedbythegovernorfromaslateofthreerecommendedbythe 19speakerofthehouseofrepresentatives;and 20 (5)Fiveadditionalmembersappointedbythegovernor,oneofwhomshallbe 21selectedfromaslateofthreenomineesrecommendedbytheMissouriSchoolBoards 22Association. 23 4.Membersappointedtothecommissionshallcollectivelypossessstrongexperience 24andexpertiseingovernance,managementandfinance,schoolleadership,assessment, 25curriculumandinstruction,andeducationlaw.Allmembersofthecommissionshallhave 26demonstratedunderstandingofandcommitmenttocharterschoolingasastrategyfor 27strengtheningpubliceducation. 28 5.Thecommissionshallannuallyelectachairpersonandvicechairperson,whoshall 29actaschairpersoninhisorherabsence.Thecommissionshallmeetatthecallofthe 30chairperson.Thechairpersonmaycallmeetingsatsuchtimesasheorshedeemsadvisable 31andshallcallameetingwhenrequestedtodosobythreeormoremembersofthe 32commission.Membersofthecommissionarenoteligibletoreceivecompensation. 33 6.Thecommissionmayapproveproposedchartersforitssponsorshipundersections 34160.400to160.425andshall: 35 (1)Complywithalloftherequirementsapplicabletosponsorsundersections 36160.400to160.425; 37 (2)Exercisesponsorshipoverchartersapprovedbythecommissionundersections 38160.400to160.425[, includingreceiptofsponsorshipfundingundersubsection11ofsection 39160.400]. Sponsorshipfundingduetothecommissionshallbedepositedtothecreditofthe 40charterpublicschoolcommissionrevolvingfundcreatedpursuanttothissection. 41 7.Charterschoolssponsoredbythecommissionshallcomplywithallofthe 42requirementsapplicabletocharterschoolsundersections160.400to160.425. 43 8.Thecommissionshallconductitsbusinessinaccordancewithchapter610. HB405 29 44 9.Thedepartmentofelementaryandsecondaryeducationshallprovidestart-up 45fundingforthecommissiontooperate.Thecommissionshallreimbursethedepartment's 46costsfromanyfundsitreceivesassponsorundersection160.400. 47 10.Thecommissionisauthorizedtoreceiveandexpendgifts,grants,anddonations 48ofanykindfromanypublicorprivateentitytocarryoutthepurposesofsections160.400to 49160.425,subjecttothetermsandconditionsunderwhichtheyaregiven,providedthatall 50suchtermsandconditionsarepermissibleunderlaw. 51 11.Thereisherebycreatedinthestatetreasurythe"CharterPublicSchool 52CommissionRevolvingFund",whichshallconsistofmoneyscollectedunderthissection. 53Thestatetreasurershallbecustodianofthefund.Inaccordancewithsections30.170and 5430.180,thestatetreasurermayapprovedisbursements.Notwithstandingtheprovisionsof 55section33.080tothecontrary,anymoneysremaininginthefundattheendofthebiennium 56shallnotreverttothecreditofthegeneralrevenuefund.Thestatetreasurershallinvest 57moneysinthefundinthesamemannerasotherfundsareinvested.Subjecttoappropriation, 58moneysinthefundshallbeusedsolelyfortheadministrationofthissection. 59 12.Thecommissionshallnotapproveanycharterforsponsorshiponorafter 60theeffectivedateofthissection. 61 13.Thecommissionshallnotrenewanychartercontractonoraftertheeffective 62dateofthissection. 63 14.Thecommissionshallbeabolishedasofthirtydaysfollowingthedateofthe 64expirationofthelastexistingchartercontracteffectiveontheeffectivedateofthis 65sectionforcharterschoolssponsoredbythecommissionontheeffectivedateofthis 66section. [160.408.1.Forpurposesofthissection,"high-qualitycharter 2 school"meansacharterschooloperatinginthestateofMissourithatmeetsthe 3 followingrequirements: 4 (1)Receiveseighty-fivepercentormoreofthetotalpointsonthe 5 annualperformancereportforthreeoutofthelastfourschoolyearsby 6 comparingpointsearnedtothepointspossibleontheannualperformance 7 reportforthreeofthelastfourschoolyears; 8 (2)Maintainsagraduationrateofatleasteightypercentforthreeof 9 thelastfourschoolyears,ifthecharterschoolprovidesahighschoolprogram; 10 (3)Isinmaterialcompliancewithitslegallybindingperformance 11 contractandsections160.400to160.425andsection167.349;and 12 (4)Isorganizationallyandfiscallyviableasdescribedinparagraph(b) 13 ofsubdivision(2)ofsubsection9ofsection160.405. 14 2.Notwithstandinganyotherprovisionoflaw,high-qualitycharter 15 schoolsshallbeprovidedexpeditedopportunitiestoreplicateandexpandinto 16 unaccrediteddistricts,ametropolitandistrict,oranurbanschooldistrict 17 containingmostorallofahomerulecitywithmorethanfourhundred HB405 30 18 thousandinhabitantsandlocatedinmorethanonecounty.Suchreplication 19 andexpansionshallbesubjecttothefollowing: 20 (1)Theschoolseekingtoreplicateorexpandshallsubmititsproposed 21 chartertoaproposedsponsor.Thechartershallincludealegallybinding 22 performancecontractthatmeetstherequirementsofsections160.400to 23 160.425andsection167.349; 24 (2)Thesponsor'sdecisiontoapproveordenyshallbemadewithin 25 sixtydaysofthefilingoftheproposedcharterwiththeproposedsponsor; 26 (3)Ifacharterisapprovedbyasponsor,thecharterapplicationshall 27 befiledwiththestateboardofeducationwithastatementoffindingfromthe 28 sponsorthattheapplicationmeetstherequirementsofsections160.400to 29 160.425andsection167.349andamonitoringplanunderwhichthesponsor 30 shallevaluatetheacademicperformanceofstudentsenrolledinthecharter 31 school.SuchfilingshallbemadebyJanuarythirty-firstpriortotheschool 32 yearinwhichthecharterschoolintendstobeginoperations. 33 3.Thetermofthecharterforschoolsoperatingunderthissectionshall 34 befiveyears,andthechartermayberenewedfortermsofuptotenyears. 35 Renewalshallbesubjecttotheprovisionsofparagraphs(a)to(d)of 36 subdivision(3)ofsubsection9ofsection160.405.] ✔ HB405 31