Download Zipped Enrolled WordPerfect SB0188.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 188 Enrolled

             1     

CHARTER SCHOOL AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Howard A. Stephenson

             5     
House Sponsor: Rebecca D. Lockhart

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions regarding the operation and governance of charter
             10      schools.
             11      Highlighted Provisions:
             12          This bill:
             13          .    expands the membership of the State Board of Education by including a member of
             14      the State Charter School Board as a nonvoting member;
             15          .    removes a statutory enrollment cap on charter schools;
             16          .    allows the State Board of Education to approve an increase in charter school
             17      enrollment capacity subject to the Legislature appropriating funds for the increase;
             18          .    modifies procedures for:
             19              .    admitting students to charter schools; and
             20              .    transferring from a charter school to a school district or another charter school;
             21          .    modifies conflict of interest provisions applicable to charter school officers;
             22          .    provides for the nomination by the State Charter School Board of members of a
             23      committee that reviews requests for loans to charter schools; and
             24          .    makes technical amendments.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:
             28          This bill provides an effective date.
             29      Utah Code Sections Affected:


             30      AMENDS:
             31          53A-1-101, as last amended by Laws of Utah 2009, Chapter 346
             32          53A-1a-502.5, as last amended by Laws of Utah 2009, Chapter 391
             33          53A-1a-506.5, as last amended by Laws of Utah 2008, Chapter 222
             34          53A-1a-515, as last amended by Laws of Utah 2007, Chapter 344
             35          53A-1a-518, as enacted by Laws of Utah 2007, Chapter 344
             36          53A-21-401, as renumbered and amended by Laws of Utah 2008, Chapter 236
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 53A-1-101 is amended to read:
             40           53A-1-101. State Board of Education -- Members.
             41          (1) Members of the State Board of Education shall be nominated and elected as
             42      provided in Title 20A, Chapter 14, Nomination and Election of State and Local School
             43      Boards.
             44          (2) (a) In addition to the members designated under Subsection (1), the following
             45      members shall serve as nonvoting members of the State Board of Education:
             46          (i) two members of the State Board of Regents, appointed by the chair of the State
             47      Board of Regents; [and]
             48          (ii) one member of the Utah College of Applied Technology Board of Trustees,
             49      appointed by the chair of the board of trustees[.]; and
             50          (iii) one member of the State Charter School Board, appointed by the chair of the State
             51      Charter School Board.
             52          (b) A nonvoting member shall continue to serve as a member without a set term until
             53      the member is replaced by the chair of the State Board of Regents [or the], chair of the Utah
             54      College of Applied Technology Board of Trustees, or chair of the State Charter School Board,
             55      as applicable.
             56          Section 2. Section 53A-1a-502.5 is amended to read:
             57           53A-1a-502.5. Approval of increase in charter school enrollment capacity.


             58          [(1) The State Charter School Board and local school boards may only authorize a
             59      combined maximum student capacity of:]
             60          [(a) 32,921 students for the charter schools in the 2008-09 school year; and]
             61          [(b) beginning in the 2009-10 school year, an annual increase in charter school
             62      enrollment capacity equal to 1.4% of total school district enrollment as of October 1 of the
             63      previous school year.]
             64          [(2) (a) The State Board of Education, in consultation with the State Charter School
             65      Board, shall allocate the students under Subsection (1) between the State Charter School
             66      Board and local school boards.]
             67          [(b) One-third of the student capacity described under Subsection (1)(b) shall be
             68      allocated to increase the maximum student capacity of operating charter schools.]
             69          [(c) If the operating charter schools do not use the allocation described under
             70      Subsection (2)(b), the remaining student capacity may be used by new charter schools.]
             71          [(3) An] (1) The State Board of Education may approve an increase in charter school
             72      enrollment capacity in the [2011-12] 2012-13 school year or thereafter [shall receive: (a)
             73      tentative approval by the State Board of Education by November 30 of the year that is two
             74      years before the year that the increase in charter school enrollment capacity takes effect; and
             75      (b) final approval by the State Board of Education by the following April 1, subject to
             76      legislative authorization of] subject to the Legislature appropriating funds for the increase in
             77      charter school enrollment capacity.
             78          (2) (a) If the Legislature does not appropriate funds for an increase in charter school
             79      enrollment capacity that is tentatively approved by the State Board of Education, the State
             80      Board of Education shall request the State Charter School Board to prioritize the tentatively
             81      approved schools and expansions based on approved funds.
             82          (b) The State Charter School Board shall submit a prioritized list of tentatively
             83      approved schools and expansions to the State Board of Education for final approval.
             84          (c) A charter school or expansion that is tentatively approved, but not funded, shall be
             85      considered to be tentatively approved for the next application year and receive priority status


             86      for available funding.
             87          Section 3. Section 53A-1a-506.5 is amended to read:
             88           53A-1a-506.5. Charter school students -- Admissions procedures -- Transfers.
             89          (1) As used in this section:
             90          (a) "District school" means a public school under the control of a local school board
             91      elected pursuant to Title 20A, Chapter 14, Nomination and Election of State and Local School
             92      Boards.
             93          (b) "Nonresident school district" means a school district other than a student's school
             94      district of residence.
             95          (c) "School district of residence" means a student's school district of residence as
             96      determined under Section 53A-2-201 .
             97          (d) "School of residence" means the school to which a student is assigned to attend
             98      based on the student's place of residence.
             99          [(1)] (2) (a) The State School Board, in consultation with the State Charter School
             100      Board, shall make rules describing procedures for students to follow in applying for entry into,
             101      or exiting, a [new] charter school [or a charter school that has increased its capacity].
             102          (b) The rules under Subsection [(1)] (2)(a) shall, at a minimum, provide[, as a
             103      minimum,] for:
             104          [(i) distribution to interested parties of information about charter schools, charter
             105      school opening dates, and how to apply for admission;]
             106          (i) posting on a charter school's Internet website, beginning no later than 60 days
             107      before the school's initial period of applications:
             108          (A) procedures for applying for admission to the charter school;
             109          (B) (I) the school's opening date, if the school has not yet opened; or
             110          (II) the school calendar; and
             111          (C) information on how a student may transfer from a charter school to another charter
             112      school or a district school;
             113          (ii) use of standard application forms prescribed by the State Board of Education;


             114          [(iii) an initial period of applications that shall include:]
             115          [(A) submission of applications until the third Friday in February by those seeking
             116      admission for the following year;]
             117          [(B)] (iii) written notification to [the] a student's parent or legal guardian of an offer of
             118      [acceptance or the rejection of an application by March 31; and] admission;
             119          [(C)] (iv) written acceptance of [the offer by the] an offer of admission by a student's
             120      parent or legal guardian [by April 30];
             121          [(iv) procedures for the additional submission, notification, and written acceptance of
             122      applications subsequent to the period described under Subsection (1)(b)(iii), to be concluded
             123      prior to June 30;]
             124          (v) written notification to a student's current charter school or [resident] school district
             125      of residence upon acceptance of [that] the student for enrollment in a charter school; and
             126          (vi) the admission of students, provided that the admission does not disqualify the
             127      charter school from [any] federal funding, at:
             128          (A) any time to protect the health or safety of a student; or
             129          (B) times other than those permitted under standard policies if there are other
             130      conditions of special need that warrant consideration.
             131          (c) The rules under Subsection [(1)] (2)(a) shall prevent the parent of a student who is
             132      enrolled in a charter school or who has accepted an offer [as described in Subsection
             133      (1)(b)(iii)(C)] of admission to a charter school from duplicating enrollment for [that] the
             134      student in another charter school or a school district without following the withdrawal
             135      procedures described in Subsection [(2)] (3).
             136          [(2)] (3) The parent of a student enrolled in a charter school may withdraw the student
             137      from [that] the charter school for enrollment in another charter school or a school district by
             138      submitting to the charter school:
             139          [(a) submitting notice of intent to enroll the student in the district of residence for the
             140      subsequent year to the student's charter school no later than June 30 of the current school
             141      year;]


             142          [(b) submitting notice of intent to enroll the student in another charter school for the
             143      subsequent school year to the current charter school of attendance, together with a letter of
             144      acceptance from the proposed charter school of attendance, no later than June 30 of the current
             145      school year; or]
             146          [(c) obtaining approval from both the charter school of attendance and the school
             147      district or charter school in which enrollment is sought, if the parent desires to change the
             148      student's enrollment during the school year or after June 30.]
             149          (a) on or before June 30, a notice of intent to enroll the student in the student's school
             150      of residence for the following school year;
             151          (b) after June 30, a letter of acceptance for enrollment in the student's school district of
             152      residence for the following year;
             153          (c) a letter of acceptance for enrollment in the student's school district of residence in
             154      the current school year;
             155          (d) a letter of acceptance for enrollment in a nonresident school district; or
             156          (e) a letter of acceptance for enrollment in a charter school.
             157          [(3)] (4) (a) A charter school shall report to a school [districts] district, by the last
             158      business day [in April, May, June, July, and August,] of each month the aggregate [numbers]
             159      number of new students, sorted by their [resident] school of residence and grade level, who
             160      have accepted enrollment in the charter school for the following school year.
             161          (b) A school district shall report to a charter school, by the last business day of each
             162      month, the aggregate number of students enrolled in the charter school who have accepted
             163      enrollment in the school district in the following school year, sorted by grade level.
             164          [(4)] (5) When a vacancy occurs because a student has withdrawn from a charter
             165      school, [that] the charter school may immediately enroll a new student from its list of
             166      applicants.
             167          [(5)] (6) Unless provisions have previously been made for enrollment in another
             168      school, a charter school releasing a student from enrollment during a school year shall
             169      immediately notify the school district of residence, which shall enroll the student in the


             170      [resident] school district of residence and take [such] additional steps as may be necessary to
             171      ensure compliance with laws governing school attendance.
             172          (7) (a) The parent of a student enrolled in a charter school may withdraw the student
             173      from the charter school for enrollment in the student's school of residence in the following
             174      school year if an application of admission is submitted to the school district of residence by
             175      June 30.
             176          (b) If the parent of a student enrolled in a charter school submits an application of
             177      admission to the student's school district of residence after June 30 for the student's enrollment
             178      in the school district of residence in the following school year, or an application of admission
             179      is submitted for enrollment during the current school year, the student may enroll in a school
             180      of the school district of residence that has adequate capacity in:
             181          (i) the student's grade level, if the student is an elementary school student; or
             182          (ii) the core classes that the student needs to take, if the student is a secondary school
             183      student.
             184          (c) State Board of Education rules made under Subsection (2)(a) shall specify how
             185      adequate capacity in a grade level or core classes is determined for the purposes of Subsection
             186      (7)(b).
             187          (8) Notwithstanding Subsection (7), a school district may enroll a student at any time
             188      to protect the health and safety of the student.
             189          [(6)] (9) A school district or charter school may charge secondary students a one-time
             190      $5 processing fee, to be paid at the time of application.
             191          Section 4. Section 53A-1a-515 is amended to read:
             192           53A-1a-515. Charters authorized by local school boards.
             193          (1) [(a)] Individuals and entities identified in Section 53A-1a-504 may enter into an
             194      agreement with a local school board to establish and operate a charter school within the
             195      geographical boundaries of the school district administered by the board.
             196          [(b) The charter schools described in Subsection (1)(a) are in addition to the limited
             197      number of charter schools authorized by the State Charter School Board in Section


             198      53A-1a-502.5 .]
             199          (2) (a) An existing public school that converts to charter status under a charter granted
             200      by a local school board may:
             201          (i) continue to receive the same services from the school district that it received prior
             202      to its conversion; or
             203          (ii) contract out for some or all of those services with other public or private providers.
             204          (b) Any other charter school authorized by a local school board may contract with the
             205      board to receive some or all of the services referred to in Subsection (3)(a).
             206          (3) (a) (i) A public school that converts to a charter school under a charter granted by a
             207      local school board shall receive funding:
             208          (A) through the school district; and
             209          (B) on the same basis as it did prior to its conversion to a charter school.
             210          (ii) The school may also receive federal monies designated for charter schools under
             211      any federal program.
             212          (b) (i) A local school board-authorized charter school operating in a facility owned by
             213      the school district and not paying reasonable rent to the school district shall receive funding:
             214          (A) through the school district; and
             215          (B) on the same basis that other district schools receive funding.
             216          (ii) The school may also receive federal monies designated for charter schools under
             217      any federal program.
             218          (c) Subject to the provisions in Section 53A-1a-502.5 , a charter school authorized by a
             219      local school board shall receive funding as provided in Section 53A-1a-513 .
             220          (d) (i) A charter school authorized by a local school board, but not described in
             221      Subsection (3)(a), (b), or (c) shall receive funding:
             222          (A) through the school district; and
             223          (B) on the same basis that other district schools receive funding.
             224          (ii) The school may also receive federal monies designated for charter schools under
             225      any federal program.


             226          (4) (a) A local school board that receives an application for a charter school under this
             227      section shall, within 45 days, either accept or reject the application.
             228          (b) If the board rejects the application, it shall notify the applicant in writing of the
             229      reason for the rejection.
             230          (c) The applicant may submit a revised application for reconsideration by the board.
             231          (d) If the local school board refuses to authorize the applicant, the applicant may seek
             232      a charter from the State Charter School Board under Section 53A-1a-505 .
             233          (5) The State Board of Education shall make a rule providing for a timeline for the
             234      opening of a charter school following the approval of a charter school application by a local
             235      school board.
             236          (6) (a) After approval of a charter school application, the applicant and the local
             237      school board shall set forth the terms and conditions for the operation of the charter school in a
             238      written contractual agreement.
             239          (b) The agreement is the school's charter.
             240          (7) A local school board shall:
             241          (a) annually review and evaluate the performance of charter schools authorized by the
             242      local school board and hold the schools accountable for their performance;
             243          (b) monitor charter schools authorized by the local school board for compliance with
             244      federal and state laws, rules, and regulations; and
             245          (c) provide technical support to charter schools authorized by the local school board to
             246      assist them in understanding and performing their charter obligations.
             247          (8) A local school board may terminate a charter school it authorizes as provided in
             248      Sections 53A-1a-509 and 53A-1a-510 .
             249          (9) In addition to the exemptions described in Sections 53A-1a-511 and 53A-1a-512 ,
             250      a charter school authorized by a local school board is:
             251          (a) not required to separately submit a report or information required under this title to
             252      the State Board of Education if the information is included in a report or information that is
             253      submitted by the local school board or school district; and


             254          (b) exempt from the requirement under Section 53A-1a-507 that a charter school shall
             255      be organized and managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation
             256      Act.
             257          Section 5. Section 53A-1a-518 is amended to read:
             258           53A-1a-518. Regulated transactions and relationships -- Definitions --
             259      Rulemaking.
             260          (1) As used in this section:
             261          (a) "Charter school officer" means:
             262          (i) a member of a charter school's governing board;
             263          (ii) a member of a board or an officer of a nonprofit corporation under which a charter
             264      school is organized and managed; [and] or
             265          (iii) the chief administrative officer of a charter school.
             266          (b) (i) "Employment" means a position in which a person's salary, wages, pay, or
             267      compensation, whether as an employee or contractor, is paid from charter school funds.
             268          (ii) "Employment" does not include a charter school volunteer.
             269          (c) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
             270      uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
             271      sister-in-law, son-in-law, or daughter-in-law.
             272          (2) (a) Except as provided in Subsection (2)(b), a relative of a charter school officer
             273      may not be employed at a charter school.
             274          (b) If a relative of a charter school officer is to be considered for employment in a
             275      charter school, the charter school officer shall:
             276          (i) disclose the relationship, in writing, to the other charter school officers;
             277          (ii) submit the employment decision to the charter school's governing board for the
             278      approval, by majority vote, [to] of the charter school's governing board;
             279          (iii) abstain from voting on the issue; and
             280          (iv) be absent from any meeting when the employment is being considered and
             281      determined.


             282          (3) (a) [A] Except as provided in Subsections (3)(b) and (3)(c), a charter school officer
             283      or a relative of a charter school officer may not have a financial interest in a contract or other
             284      transaction involving a charter school in which the charter school officer serves as a charter
             285      school officer.
             286          (b) If a charter school's governing board considers entering into a contract or executing
             287      a transaction in which a charter school officer or a relative of a charter school officer has a
             288      financial interest, the charter school officer shall:
             289          (i) disclose the financial interest, in writing, to the other charter school officers;
             290          (ii) submit the contract or transaction decision to the charter school's governing board
             291      for the approval, by majority vote, of the charter school's governing board;
             292          (iii) abstain from voting on the issue; and
             293          (iv) be absent from any meeting when the contract or transaction is being considered
             294      and determined.
             295          [(b)] (c) The provisions in Subsection (3)(a) do not apply to a reasonable contract of
             296      employment for:
             297          (i) the chief administrative officer of a charter school; [and] or
             298          (ii) [the] a relative of the chief administrative officer of a charter school whose
             299      employment is approved in accordance with the provisions in Subsection (2).
             300          (4) The State Board of Education or State Charter School Board may not operate a
             301      charter school.
             302          Section 6. Section 53A-21-401 is amended to read:
             303           53A-21-401. Capital Outlay Loan Program -- School Building Revolving
             304      Account -- Access to the account.
             305          (1) There is created:
             306          (a) the "Capital Outlay Loan Program" to provide:
             307          (i) short-term help to school districts to meet district needs for school building
             308      construction and renovation; and
             309          (ii) assistance to charter schools to meet school building construction and renovation


             310      needs; and
             311          (b) a nonlapsing "School Building Revolving Account" administered within the
             312      Uniform School Fund by the state superintendent of public instruction in accordance with
             313      rules adopted by the State Board of Education.
             314          (2) The State Board of Education may not allocate funds from the School Building
             315      Revolving Account that exceed a school district's bonding limit minus its outstanding bonds.
             316          (3) In order to receive monies from the account, a school district shall:
             317          (a) levy a combined capital levy rate of at least .0024;
             318          (b) contract with the state superintendent of public instruction to repay the monies,
             319      with interest at a rate established by the state superintendent, within five years of receipt, using
             320      future state capital outlay allocations, local revenues, or both;
             321          (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
             322      repayments, unless the state superintendent of public instruction alters the payment schedule
             323      to improve a hardship situation; and
             324          (d) meet any other condition established by the State Board of Education pertinent to
             325      the loan.
             326          (4) (a) The state superintendent shall establish a committee, including representatives
             327      from state and local education entities, to:
             328          (i) review requests by school districts for loans under this section; and
             329          (ii) make recommendations regarding approval or disapproval of the loan applications
             330      to the state superintendent.
             331          (b) If the committee recommends approval of a loan application under Subsection
             332      (4)(a)(ii), the committee's recommendation shall include:
             333          (i) the recommended amount of the loan;
             334          (ii) the payback schedule; and
             335          (iii) the interest rate to be charged.
             336          (5) (a) There is established within the School Building Revolving Account the Charter
             337      School Building Subaccount administered by the State Board of Education, in consultation


             338      with the State Charter School Board, in accordance with rules adopted by the State Board of
             339      Education.
             340          (b) The Charter School Building Subaccount shall consist of:
             341          (i) money appropriated to the subaccount by the Legislature;
             342          (ii) money received from the repayment of loans made from the subaccount; and
             343          (iii) interest earned on monies in the subaccount.
             344          (c) The state superintendent of public instruction shall make loans to charter schools
             345      from the Charter School Building Subaccount to pay for the costs of:
             346          (i) planning expenses;
             347          (ii) constructing or renovating charter school buildings;
             348          (iii) equipment and supplies; or
             349          (iv) other start-up or expansion expenses.
             350          (d) Loans to new charter schools or charter schools with urgent facility needs may be
             351      given priority.
             352          (6) (a) The State Board of Education shall establish a committee[, which shall include
             353      individuals who have expertise or experience in finance, real estate, and charter school
             354      administration, one of whom shall be nominated by the governor] to:
             355          (i) review requests by charter schools for loans under this section; and
             356          (ii) make recommendations regarding approval or disapproval of the loan applications
             357      to the State Charter School Board and the State Board of Education.
             358          (b) (i) A committee established under Subsection (6)(a) shall include individuals who
             359      have expertise or experience in finance, real estate, or charter school administration.
             360          (ii) Of the members appointed to a committee established under Subsection (6)(a):
             361          (A) one member shall be nominated by the governor; and
             362          (B) the remaining members shall be selected from a list of nominees submitted by the
             363      State Charter School Board.
             364          [(b)] (c) If the committee recommends approval of a loan application under Subsection
             365      (6)(a)(ii), the committee's recommendation shall include:


             366          (i) the recommended amount of the loan;
             367          (ii) the payback schedule; and
             368          (iii) the interest rate to be charged.
             369          [(c)] (d) The committee members may not:
             370          (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
             371          (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             372      or entity that contracts with a loan applicant.
             373          (7) The State Board of Education, in consultation with the State Charter School Board,
             374      shall approve all loans to a charter school under this section.
             375          (8) The term of a loan to a charter school under this section may not exceed five years.
             376          (9) The State Board of Education may not approve loans to charter schools under this
             377      section that exceed a total of $2,000,000 in any year.
             378          Section 7. Effective date.
             379          This bill takes effect on May 10, 2010, except the amendments to Section 53A-1a-518
             380      take effect on July 1, 2011.


[Bill Documents][Bills Directory]