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S.B. 55

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Mon, Feb 8, 2010 at 11:55 AM by rday. --> This document includes House Committee Amendments incorporated into the bill on Tue, Feb 23, 2010 at 2:26 PM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Wed, Feb 24, 2010 at 4:16 PM by lerror. -->              1     

AUTHORIZATION OF CHARTER SCHOOLS BY

             2     
HIGHER EDUCATION INSTITUTIONS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: J. Stuart Adams

             6     
House Sponsor: Gregory H. Hughes

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill allows a board of trustees of a higher education institution to authorize the
             11      establishment and operation of a charter school and specifies the responsibilities of a
             12      board of trustees that authorizes a charter school.
             13      Highlighted Provisions:
             14          This bill:
             15          .    defines terms;
             16          .    subject to approval by the State Board of Education, allows a board of trustees of a
             17      higher education institution to enter into an agreement with certain individuals or
             18      entities to establish and operate a charter school;
             19          .    allows a fee to be charged for a board of trustees' costs of providing oversight and
             20      technical support to a charter school;
             21          .    specifies procedures for applying for authorization of a charter school by a board of
             22      trustees of a higher education institution;
             23          .    specifies the responsibilities of a board of trustees of a higher education institution
             24      that authorizes a charter school; and
             25          .    makes technical amendments.
             26      Monies Appropriated in this Bill:
             27          None



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             28
     Other Special Clauses:
             29           H. [ None ] This bill coordinates with S.B. 69, College of Eastern Utah Affiliation with
             29a      Utah State University, by making substantive amendments. .H
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          53A-1a-501.3, as last amended by Laws of Utah 2007, Chapter 344
             33          53A-1a-501.6, as last amended by Laws of Utah 2007, Chapter 344
             34          53A-1a-502.5, as last amended by Laws of Utah 2009, Chapter 391
             35          53A-1a-508, as last amended by Laws of Utah 2008, Chapter 382
             36          53A-1a-512, as last amended by Laws of Utah 2009, Chapter 165
             37          53A-1a-520, as enacted by Laws of Utah 2008, Chapter 319
             38          63I-4-102, as last amended by Laws of Utah 2009, Chapter 294
             39      ENACTS:
             40          53A-1a-521, Utah Code Annotated 1953
             41     

             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 53A-1a-501.3 is amended to read:
             44           53A-1a-501.3. Definitions.
             45          As used in this part:
             46          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
             47      includes:
             48          (a) cash;
             49          (b) stock or other investments;
             50          (c) real property;
             51          (d) equipment and supplies;
             52          (e) an ownership interest;
             53          (f) a license;
             54          (g) a cause of action; and
             55          (h) any similar property.
             56          (2) "Board of trustees of a higher education institution" or "board of trustees" means H. :
             57      (a) .H the board of trustees of S. [ a university or community college listed in Section 53B-1-102 . ] :
             57a          H. [ (a) ] (i) .H the University of Utah;
             57b          H. [ (b) ] (ii) .H Utah State University;
             57c          H. [ (c) ] (iii) .H Weber State University;
             57d          H. [ (d) ] (iv) .H Southern Utah University; .S


            
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57e
     S.    H. [ (e) ] (v) .H Snow College;
             57f          H. [ (f) ] (vi) .H Dixie State College of Utah;
             57g          H. [ (g) ] (vii) .H the College of Eastern Utah;
             57h          H. [ (h) ] (viii) .H Utah Valley University; or
             57i          H. [ (i) ] (ix) .H Salt Lake Community College H. [ . ] ; or
             57j          (b) the campus board of directors of a college campus within the Utah College of
             57k      Applied Technology. .H .S
             58          [(2)] (3) "Chartering entity" means the entity that authorizes the establishment of a



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             59
     charter school.
             60          Section 2. Section 53A-1a-501.6 is amended to read:
             61           53A-1a-501.6. Power and duties of State Charter School Board.
             62          (1) The State Charter School Board shall:
             63          (a) authorize and promote the establishment of charter schools, subject to the
             64      provisions in this part;
             65          (b) annually review and evaluate the performance of charter schools authorized by the
             66      State Charter School Board and hold the schools accountable for their performance;
             67          (c) monitor charter schools authorized by the State Charter School Board for
             68      compliance with federal and state laws, rules, and regulations;
             69          (d) provide technical support to charter schools and persons seeking to establish charter
             70      schools by:
             71          (i) identifying and promoting successful charter school models;
             72          (ii) facilitating the application and approval process for charter school authorization;
             73          (iii) directing charter schools and persons seeking to establish charter schools to
             74      sources of private funding and support;
             75          (iv) reviewing and evaluating proposals to establish charter schools for the purpose of
             76      supporting and strengthening proposals before an application for charter school authorization is
             77      submitted to [the State Charter School Board or a local school board] a chartering entity; and
             78          (v) assisting charter schools to understand and carry out their charter obligations;
             79          (e) provide technical support, as requested, to a [local school board] chartering entity
             80      relating to charter schools;
             81          (f) make recommendations on legislation and rules pertaining to charter schools to the
             82      Legislature and State Board of Education, respectively; and
             83          (g) make recommendations to the State Board of Education on the funding of charter
             84      schools.
             85          (2) The State Charter School Board may:
             86          (a) contract;
             87          (b) sue and be sued; and
             88          (c) (i) at the discretion of the charter school, provide administrative services to, or
             89      perform other school functions for, charter schools authorized by the State Charter School



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             90
     Board; and
             91          (ii) charge fees for the provision of services or functions.
             92          Section 3. Section 53A-1a-502.5 is amended to read:
             93           53A-1a-502.5. Charter schools -- Maximum authorized students.
             94          (1) The State Charter School Board [and], local school boards, and boards of trustees
             95      of higher education institutions may only authorize a combined maximum student capacity of:
             96          (a) 32,921 students for the charter schools in the 2008-09 school year; and
             97          (b) beginning in the 2009-10 school year, an annual increase in charter school
             98      enrollment capacity equal to 1.4% of total school district enrollment as of October 1 of the
             99      previous school year.
             100          (2) (a) The State Board of Education[, in consultation with the State Charter School
             101      Board,] shall allocate the students under Subsection (1) between the State Charter School
             102      Board [and], local school boards, and boards of trustees of higher education institutions.
             103          (b) One-third of the student capacity described under Subsection (1)(b) shall be
             104      allocated to increase the maximum student capacity of operating charter schools.
             105          (c) If the operating charter schools do not use the allocation described under
             106      Subsection (2)(b), the remaining student capacity may be used by new charter schools.
             107          (3) An increase in charter school enrollment capacity in the 2011-12 school year or
             108      thereafter shall receive:
             109          (a) tentative approval by the State Board of Education by November 30 of the year that
             110      is two years before the year that the increase in charter school enrollment capacity takes effect;
             111      and
             112          (b) final approval by the State Board of Education by the following April 1, subject to
             113      legislative authorization of the increase in charter school enrollment capacity.
             114          Section 4. Section 53A-1a-508 is amended to read:
             115           53A-1a-508. Content of a charter -- Modification of charter.
             116          (1) The major issues involving the operation of a charter school shall be considered in
             117      advance by the applicant for a charter school and written into the school's charter.
             118          (2) The governing body of the charter school and the chartering entity shall sign the
             119      charter.
             120          (3) The charter shall include:



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             121
         (a) the age or grade levels to be served by the school;
             122          (b) the projected maximum number of students to be enrolled in the school and the
             123      projected enrollment in each of the first three years of operations;
             124          (c) the governance structure of the school;
             125          (d) the financial plan for the school and the provisions which will be made for auditing
             126      the school under Subsection 53A-1a-507 (4);
             127          (e) the mission and education goals of the school, the curriculum offered, and the
             128      methods of assessing whether students are meeting educational goals, to include at a minimum
             129      participation in the Utah Performance Assessment System for Students under Chapter 1, Part 6,
             130      Achievement Tests;
             131          (f) admission and dismissal procedures, including suspension procedures;
             132          (g) procedures to review complaints of parents regarding the operation of the school;
             133          (h) the opportunity for parental involvement at the school;
             134          (i) how the school will provide adequate liability and other appropriate insurance for
             135      the school, its governing body, and its employees;
             136          (j) the proposed school calendar, including the length of the school day and school
             137      year;
             138          (k) whether any agreements have been entered into or plans developed with school
             139      districts regarding participation of charter school students in extracurricular activities within
             140      the school districts;
             141          (l) the district within which the school will be located and the address of the school's
             142      physical facility, if known at the time the charter is signed;
             143          (m) the qualifications to be required of the teachers, including the requirement of a
             144      criminal background check;
             145          (n) in the case of an existing public school converting to charter status, alternative
             146      arrangements for current students who choose not to attend the charter school and for current
             147      teachers who choose not to teach at the school after its conversion to charter status;
             148          (o) the school's intention to create a library;
             149          (p) a description of school administrative and supervisory services;
             150          (q) fiscal procedures to be used by the school; and
             151          (r) the school's policies and procedures regarding:



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             152
         (i) employee evaluation; and
             153          (ii) employment of relatives.
             154          (4) A charter may be modified by mutual agreement of the [board] chartering entity
             155      and the governing body of the school.
             156          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             157      State Board of Education shall make rules that establish the procedures and deadlines for
             158      approved charter schools to apply and qualify for expansion, including the establishment of
             159      satellite campuses.
             160          Section 5. Section 53A-1a-512 is amended to read:
             161           53A-1a-512. Employees of charter schools.
             162          (1) A charter school shall select its own employees.
             163          (2) The school's governing body shall determine the level of compensation and all
             164      terms and conditions of employment, except as otherwise provided in Subsections (7) and (8)
             165      and under this part.
             166          (3) The following statutes governing public employees and officers do not apply to
             167      charter schools:
             168          (a) Chapter 8, Utah Orderly School Termination Procedures Act;
             169          (b) Chapter 10, Educator Evaluation; and
             170          (c) Title 52, Chapter 3, Prohibiting Employment of Relatives.
             171          (4) (a) To accommodate differentiated staffing and better meet student needs, a charter
             172      school, under rules adopted by the State Board of Education, shall employ teachers who:
             173          (i) are licensed; or
             174          (ii) on the basis of demonstrated competency, would qualify to teach under alternative
             175      certification or authorization programs.
             176          (b) The school's governing body shall disclose the qualifications of its teachers to the
             177      parents of its students.
             178          (5) State Board of Education rules governing the licensing or certification of
             179      administrative and supervisory personnel do not apply to charter schools.
             180          (6) (a) An employee of a school district may request a leave of absence in order to
             181      work in a charter school upon approval of the local school board.
             182          (b) While on leave, the employee may retain seniority accrued in the school district and



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             183
     may continue to be covered by the benefit program of the district if the charter school and the
             184      locally elected school board mutually agree.
             185          (7) Except as provided under Subsection (8), an employee of a charter school shall be a
             186      member of a retirement system under Title 49, Utah State Retirement and Insurance Benefit
             187      Act.
             188          (8) (a) At the time of application for a charter school, whether the chartering entity is
             189      the State Charter School Board [or a school district], a local school board, or a board of trustees
             190      of a higher education institution, a proposed charter school may make an election of
             191      nonparticipation as an employer for retirement programs under Title 49, Chapter 12, Public
             192      Employees' Contributory Retirement Act and under Title 49, Chapter 13, Public Employees'
             193      Noncontributory Retirement Act.
             194          (b) A charter school that was approved prior to July 1, 2004 may make an election of
             195      nonparticipation prior to December 31, 2004.
             196          (c) An election provided under this Subsection (8):
             197          (i) shall be made at the time specified under Subsection (8)(a) or (b);
             198          (ii) shall be documented by a resolution adopted by the governing body of the charter
             199      school;
             200          (iii) is in effect unless the charter school makes an irrevocable retraction of the election
             201      of nonparticipation in accordance with Subsection (9); and
             202          (iv) applies to the charter school as the employer and to all employees of the charter
             203      school.
             204          (d) The governing body of a charter school may offer employee benefit plans for its
             205      employees:
             206          (i) under Title 49, Chapter 20, Public Employees' Benefit and Insurance Program Act;
             207      or
             208          (ii) under any other program.
             209          (9) (a) A charter school that made an election of nonparticipation as an employer for
             210      retirement programs under Title 49, Chapter 12, Public Employees' Contributory Retirement
             211      Act and under Title 49, Chapter 13, Public Employees' Noncontributory Retirement Act, may
             212      subsequently make an irrevocable retraction of the election of nonparticipation.
             213          (b) A retraction provided under this Subsection (9):



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             214
         (i) shall be documented by a resolution adopted by the governing body of the charter
             215      school;
             216          (ii) is a one-time election;
             217          (iii) is irrevocable; and
             218          (iv) applies to the charter school as the employer and to all employees of the charter
             219      school.
             220          (10) The governing body of a charter school shall ensure that, prior to the beginning of
             221      each school year, each of its employees signs a document acknowledging that the employee:
             222          (a) has received:
             223          (i) the disclosure required under Section 63A-4-204.5 if the charter school participates
             224      in the Risk Management Fund; or
             225          (ii) written disclosure similar to the disclosure required under Section 63A-4-204.5 if
             226      the charter school does not participate in the Risk Management Fund; and
             227          (b) understands the legal liability protection provided to the employee and what is not
             228      covered, as explained in the disclosure.
             229          Section 6. Section 53A-1a-520 is amended to read:
             230           53A-1a-520. Accountability -- Rules.
             231          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act and
             232      after consultation with [the State Charter School Board] chartering entities, the State Board of
             233      Education shall make rules that:
             234          (1) require a charter school to develop an accountability plan, approved by [the State
             235      Charter School Board] its chartering entity, during its first year of operation;
             236          (2) require a [charter school authorizer] chartering entity to:
             237          (a) visit a charter school at least once during:
             238          (i) its first year of operation; and
             239          (ii) the review period described under Subsection (3); and
             240          (b) provide written reports to its charter schools after the visits; and
             241          (3) establish a review process that is required of a charter school once every five years
             242      by its [authorizer] chartering entity.
             243          Section 7. Section 53A-1a-521 is enacted to read:
             244          53A-1a-521. Authorization of a charter school by a board of trustees of a higher



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             245
     education institution.
             246          (1) Subject to the approval of the State Board of Education H. and except as provided in
             246a      Subsection (7) .H , an individual or entity
             247      identified in Section 53A-1a-504 may enter into an agreement with a board of trustees of a
             248      higher education institution to establish and operate a charter school.
             249          (2) (a) An individual or entity identified in Section 53A-1a-504 applying for
             250      authorization from a board of trustees of a higher education institution to establish and operate
             251      a charter school shall provide a copy of the application to the H. State Charter School Board and
             251a      the .H local school board of the school
             252      district in which the proposed charter school shall be located either before or at the same time it
             253      files its application with the board of trustees.
             254          (b) The H. State Charter School Board and the .H local school board may review the
             254a      application and may offer suggestions or
             255      recommendations to the applicant or the board of trustees of a higher education institution prior
             256      to its acting on the application.
             257          (c) The board of trustees of a higher education institution shall give due consideration
             258      to suggestions or recommendations made by the H. State Charter School Board or the .H
             258a      local school board under Subsection (2)(b).
             259          (3) (a) If a board of trustees of a higher education institution approves an application to
             260      establish and operate a charter school, the board of trustees shall submit the application to the
             261      State Board of Education.
             262          (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
             263      the application approve or deny an application approved by a board of trustees of a higher
             264      education institution.
             265          (c) The State Board of Education's action under Subsection (3)(b) is final action subject
             266      to judicial review.
             267          (4) The State Board of Education shall make a rule providing a timeline for the
             268      opening of a charter school following the approval of a charter school application by a board of
             269      trustees of a higher education institution.
             270          (5) (a) After approval of a charter school application, the applicant and the board of
             271      trustees of a higher education institution shall set forth the terms and conditions for the
             272      operation of the charter school in a written contractual agreement.
             273          (b) The agreement is the school's charter.
             274          (c) (i) The school's charter may include a provision that the charter school pay an
             275      annual fee S. [ to the board of trustees ] .S for the board of trustees' costs in providing oversight of, and



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             276
     technical support to, the charter school in accordance with Subsection (6).
             277          (ii) An annual fee described in Subsection (5)(c)(i) S. :
             277a          (A) .S may not exceed the product of:
             278           S. [ (A) ] I .S 1% of the value of the weighted pupil unit as established in statute for the
             278a      current
             279      fiscal year; and
             280           S. [ (B) ] (II) .S the October 1 enrollment count of the charter school for the current fiscal year
             280a      S. [ . ] ;
             280b          (B) shall be paid to the board of trustees' higher education institution; and
             280c          (C) shall be expended as directed by the board of trustees. .S
             281          (6) A board of trustees of a higher education institution shall:
             282          (a) annually review and evaluate the performance of charter schools authorized by the
             283      board of trustees and hold the schools accountable for their performance;
             284          (b) monitor charter schools authorized by the board of trustees for compliance with
             285      federal and state laws, rules, and regulations; and
             286          (c) provide technical support to charter schools authorized by the board of trustees to
             287      assist them in understanding and performing their charter obligations.
             287a          H. (7)(a) In addition to complying with the requirements of this section, a campus
             287b      board of directors of a college campus within the Utah College of Applied Technology shall
             287c      obtain the approval of the Utah College of Applied Technology Board of Trustees before
             287d      entering into an agreement to establish and operate a charter school.
             287e          (b) The Utah College of Applied Technology Board of Trustees shall establish a policy
             287f      for granting approval to a campus board of directors to enter into an agreement to establish
             287g      and operate a charter school. .H
             288          Section 8. Section 63I-4-102 is amended to read:
             289           63I-4-102. Definitions.
             290          (1) (a) "Activity" means to provide a good or service.
             291          (b) "Activity" includes to:
             292          (i) manufacture a good or service;
             293          (ii) process a good or service;
             294          (iii) sell a good or service;
             295          (iv) offer for sale a good or service;
             296          (v) rent a good or service;
             297          (vi) lease a good or service;
             298          (vii) deliver a good or service;
             299          (viii) distribute a good or service; or
             300          (ix) advertise a good or service.
             301          (2) (a) Except as provided in Subsection (2)(b), "agency" means:
             302          (i) the state; or
             303          (ii) an entity of the state including a department, office, division, authority,
             304      commission, or board.
             305          (b) "Agency" does not include:
             306          (i) the Legislature;


            
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307
         (ii) an entity or agency of the Legislature;
             308          (iii) the state auditor;
             309          (iv) the state treasurer;
             310          (v) the Office of the Attorney General;
             311          (vi) the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             312          (vii) the Heber Valley Railroad Authority [created in Title 9, Chapter 3, Part 3, Heber
             313      Valley Historic Railroad Authority];
             314          (viii) the Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah
             315      Science Center Authority;
             316          (ix) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             317      Corporation Act;
             318          (x) the Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State
             319      Fair Corporation Act;
             320          (xi) the Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             321      Compensation Fund;
             322          (xii) the Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             323      Retirement Systems Administration;
             324          (xiii) a charter school chartered by the State Charter School Board or a board of
             325      trustees of a higher education institution under Title 53A, Chapter 1a, Part 5, The Utah Charter
             326      Schools Act;
             327          (xiv) the Utah Schools for the Deaf and the Blind created in Title 53A, Chapter 25b,
             328      Utah Schools for the Deaf and the Blind;
             329          (xv) an institution of higher education as defined in Section 53B-3-102 ;
             330          (xvi) the School and Institutional Trust Lands Administration created in Title 53C,
             331      Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             332          (xvii) the Utah Communications Agency Network created in Title 63C, Chapter 7,
             333      Utah Communications Agency Network Act; or
             334          (xviii) the Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part
             335      12, Utah Venture Capital Enhancement Act.
             336          (3) "Agency head" means the chief administrative officer of an agency.
             337          (4) "Board" means the Privatization Policy Board created in Section 63I-4-201 .



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House Committee Amendments 2-23-2010 je/aos
             338
         (5) "Commercial activity" means to engage in an activity that can be obtained in whole
             339      or in part from a private enterprise.
             340          (6) "Local entity" means:
             341          (a) a political subdivision of the state, including a:
             342          (i) county;
             343          (ii) city;
             344          (iii) town;
             345          (iv) local school district;
             346          (v) local district; or
             347          (vi) special service district;
             348          (b) an agency of an entity described in this Subsection (6), including a department,
             349      office, division, authority, commission, or board; and
             350          (c) an entity created by an interlocal cooperative agreement under Title 11, Chapter 13,
             351      Interlocal Cooperation Act, between two or more entities described in this Subsection (6).
             352          (7) "Private enterprise" means a person that for profit:
             353          (a) manufactures a good or service;
             354          (b) processes a good or service;
             355          (c) sells a good or service;
             356          (d) offers for sale a good or service;
             357          (e) rents a good or service;
             358          (f) leases a good or service;
             359          (g) delivers a good or service;
             360          (h) distributes a good or service; or
             361          (i) advertises a good or service.
             362          (8) "Privatize" means that an activity engaged in by an agency is transferred so that a
             363      private enterprise engages in the activity including a transfer by:
             364          (a) contract;
             365          (b) transfer of property; or
             366          (c) another arrangement.
             366a      H. Section 9. Coordinating S.B. 55 with S.B. 69 -- Modifying Substantive Language.
             366b          If this S.B. 55 and S.B. 69, College of Eastern Utah Affiliation with Utah State
             366c      University, both pass, it is the intent of the Legislature that the Office of Legislative Research
             366d      and General Counsel in preparing the database for publication delete the subsection
             366e      referencing "the College of Eastern Utah" in Subsection 53A-1a-501.3(2) in S.B. 55 and
             366f      renumber the remaining subsections accordingly. .H



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Legislative Review Note
    as of 1-28-10 12:18 PM


Office of Legislative Research and General Counsel


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