Senator Aaron Osmond proposes the following substitute bill:


1     
CHARTER SCHOOL AUTHORIZATION AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Aaron Osmond

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill allows a municipal legislative body to authorize a charter school located
10     within the municipality's boundaries.
11     Highlighted Provisions:
12          This bill:
13          ▸     allows a municipal legislative body to authorize a charter school to be established
14     and operated within the municipality's boundaries, subject to the approval of the
15     State Board of Education;
16          ▸     specifies procedures for the application and approval of a charter school authorized
17     by a municipal legislative body;
18          ▸     allows a municipal legislative body to impose a fee, up to a certain amount, for
19     costs of oversight of, and technical assistance to, a charter school;
20          ▸     prescribes a municipal legislative body's responsibilities related to authorizing a
21     charter school;
22          ▸     requires a municipal legislative body to make a report to the State Board of
23     Education and the State Charter School Board regarding the performance of a
24     charter school authorized by the municipal legislative body; and
25          ▸     allows a municipal legislative body to close a charter school authorized by the

26     municipal legislative body.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          53A-1a-501.3, as last amended by Laws of Utah 2014, Chapter 363
34     ENACTS:
35          53A-1a-524, Utah Code Annotated 1953
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 53A-1a-501.3 is amended to read:
39          53A-1a-501.3. Definitions.
40          As used in this part:
41          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
42     includes:
43          (a) cash;
44          (b) stock or other investments;
45          (c) real property;
46          (d) equipment and supplies;
47          (e) an ownership interest;
48          (f) a license;
49          (g) a cause of action; and
50          (h) any similar property.
51          (2) "Board of trustees of a higher education institution" or "board of trustees" means:
52          (a) the board of trustees of:
53          (i) the University of Utah;
54          (ii) Utah State University;
55          (iii) Weber State University;
56          (iv) Southern Utah University;

57          (v) Snow College;
58          (vi) Dixie State University;
59          (vii) Utah Valley University; or
60          (viii) Salt Lake Community College; or
61          (b) the campus board of directors of a college campus within the Utah College of
62     Applied Technology.
63          (3) "Charter agreement" or "charter" means an agreement made in accordance with
64     Section 53A-1a-508, that authorizes the operation of a charter school.
65          (4) "Charter school authorizer" or "authorizer" means the State Charter School Board, a
66     local school board, [or] the board of trustees of a higher education institution, or a municipal
67     legislative body that authorizes the establishment of a charter school.
68          (5) "Governing board" means the board that operates a charter school.
69          (6) "Municipal legislative body" means the council of a city or town in any form of
70     municipal government.
71          Section 2. Section 53A-1a-524 is enacted to read:
72          53A-1a-524. Charter schools authorized by a municipal legislative body --
73     Application process -- Board of trustees responsibilities -- Reporting requirements.
74          (1) Subject to the approval of the State Board of Education, an applicant identified in
75     Section 53A-1a-504 may enter into an agreement with a municipal legislative body authorizing
76     the applicant to establish and operate a charter school within the boundaries of the
77     municipality.
78          (2) (a) An applicant applying for authorization from a municipal legislative body to
79     establish and operate a charter school shall provide a copy of the application to the State
80     Charter School Board and the local school board of the school district in which the proposed
81     charter school will be located either before or at the same time the applicant files the
82     application with the municipal legislative body.
83          (b) The State Charter School Board and the local school board may review the
84     application and offer suggestions or recommendations to the applicant or the municipal
85     legislative body before the municipal legislative body acts on the application.
86          (c) The municipal legislative body shall give due consideration to suggestions or
87     recommendations made by the State Charter School Board or the local school board under

88     Subsection (2)(b).
89          (3) (a) Prior to submitting a charter school application to the State Board of Education
90     as required in Subsection (4)(a), the applicant and the municipal legislative body shall set forth
91     the terms and conditions for the operation of the charter school in a written charter agreement.
92          (b) The terms and conditions described in Subsection (3)(a) shall be included in the
93     charter school contract between the municipal legislative body and the charter school.
94          (4) (a) If a municipal legislative body approves an application to establish and operate
95     a charter school, the municipal legislative body shall submit the application to the State Board
96     of Education.
97          (b) The State Board of Education shall, by majority vote, approve or deny an
98     application approved by a municipal legislative body within 60 days of receipt of the
99     application.
100          (c) The State Board of Education's action under Subsection (4)(b) is final action subject
101     to judicial review.
102          (5) The State Board of Education shall make a rule providing a time line for the
103     opening of a charter school following the approval of a charter school application by a
104     municipal legislative body.
105          (6) (a) The school's charter may include a provision that the charter school pay an
106     annual fee for the municipal legislative body's costs in providing oversight of, and technical
107     support to, the charter school in accordance with Subsection (7).
108          (b) In the first two years that a charter school is in operation, an annual fee described in
109     Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
110     from the state in the current fiscal year.
111          (c) Beginning with the third year that a charter school is in operation, an annual fee
112     described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
113     school receives from the state in the current fiscal year.
114          (d) An annual fee described in Subsection (6)(a) shall be:
115          (i) paid to the municipality; and
116          (ii) expended as directed by the municipal legislative body.
117          (7) A municipal legislative body shall:
118          (a) annually review and evaluate the performance of a charter school authorized by the

119     municipal legislative body and hold the school accountable for the school's performance;
120          (b) monitor a charter school authorized by the municipal legislative body for
121     compliance with federal and state laws, rules, and regulations;
122          (c) monitor a charter school authorized by the municipal legislative body for
123     performance against the minimum academic, financial, and enrollment standards set forth in
124     the charter application; and
125          (d) provide technical support to a charter school authorized by the municipal legislative
126     body to assist the school in understanding and performing the school's charter obligations.
127          (8) Before a municipal legislative body accepts a charter school application, the
128     municipal legislative body shall, in accordance with State Board of Education rules, establish
129     and make public the municipal legislative body's:
130          (a) application requirements, in accordance with Section 53A-1a-504;
131          (b) application process, including time lines, in accordance with this section; and
132          (c) minimum academic, financial, governance, and enrollment standards.
133          (9) A municipal legislative body shall:
134          (a) annually make a report to the State Board of Education and to the State Charter
135     School Board detailing the academic, financial, enrollment, and governance performance of the
136     charter school authorized by the municipal legislative body; and
137          (b) in the report described in Subsection (9)(a), include information that demonstrates
138     the charter school's compliance with federal and state law.
139          (c) A municipal legislative body and the charter school authorized by the municipal
140     legislative body shall collect and report information in the same format and manner as
141     information is required to be reported for charter schools authorized by the State Charter
142     School Board.
143          (10) A municipal legislative body may close a charter school authorized by the
144     municipal legislative body.