This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 17, 2017 at 1:41 PM by lpoole.
This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 17, 2017 at 1:41 PM by lpoole.
This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 17, 2017 at 1:45 PM by lpoole.
Senator Deidre M. Henderson proposes the following substitute bill:


1     
MODIFICATIONS TO CHARTER SCHOOL GOVERNANCE

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Deidre M. Henderson

5     
House Sponsor: Daniel McCay

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of The Utah Charter Schools Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the State Board of Education to adopt principles and standards for quality
13     charter authorizing;
14          ▸     requires the State Board of Education to adopt rules for the oversight of a charter
15     school authorizer;
16          ▸     amends provisions related to appointment of the staff director for the State Charter
17     School Board;
18          ▸     modifies the State Board of Education's authority to review an application for a
19     charter school to the State Charter School Board;
20          ▸     requires certain persons to be absent from portions of a meeting where a conflict of
21     interest may arise; and
22          ▸     makes technical corrections.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:
28     AMENDS:
29          53A-1a-501.7, as last amended by Laws of Utah 2016, Chapters 144 and 271
30          53A-1a-505, as last amended by Laws of Utah 2014, Chapter 363
31          53A-1a-518, as last amended by Laws of Utah 2010, Chapter 162
32     ENACTS:
33          53A-1a-501.4, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 53A-1a-501.4 is enacted to read:
37          53A-1a-501.4. Charter school authorizer standards -- State Board of Education
38     rules for review of authorizer action.
39          (1) The State Board of Education shall adopt principles and standards for quality
40     charter authorizing, including:
41          (a) principles that:
42          (i) maintain high education standards;
43          (ii) subject to law, uphold charter school autonomy; and
44          (iii) protect student and public interests;
45          (b) standards that ensure:
46          (i) authorizer commitment and capacity;
47          (ii) a fair and reasonable application process and determination;
48          (iii) performance contracting;
49          (iv) ongoing oversight and evaluation; and
50          (v) fair and reasonable consequences for an authorizer that fails to comply with a
51     statute, rule, or, as described in this Subsection (1), principles and standards; and
52          (c) school readiness benchmarks for new charter schools.
53          (2) A charter school authorizer shall adopt and administer policies and practices
54     consistent with the principles and standards described in Subsection (1).
55          (3) The State Board of Education shall, in accordance with Title 63G, Chapter 3, Utah
56     Administrative Rulemaking Act, make rules for the oversight of an authorizer Ŝ→ [.] , including:
56a          (a) overseeing authorizer compliance with statute, as applicable, and the principles and
56b     standards described in Subsection (1) and the applicable policies and practices described in
56c     Subsection (2); ☆
56d          ☆(b) rules that authorize assistance by the State Board of Education, if necessary, to an
56e     authorizer in an effort to comply; and
56f          (c) penalties for an authorizer that fails, after reasonable notice, to comply, including a
56g     moratorium on the authorizer's authority to authorize a new charter school or enter into a
56h     contract. ←Ŝ
57          Section 2. Section 53A-1a-501.7 is amended to read:
58          53A-1a-501.7. State Charter School Board -- Staff director -- Staff.
59          (1) [(a)] The State Charter School Board[, with the consent of the superintendent of
60     public instruction,] shall appoint a staff director for the State Charter School Board.
61          [(b)] (2) The State Charter School Board shall have authority to remove the staff
62     director [with the consent of the superintendent of public instruction].
63          [(c)] (3) The position of staff director is exempt from the career service provisions of
64     Title 67, Chapter 19, Utah State Personnel Management Act.
65          (4) The State Charter school board may employ other staff as necessary.
66          [(2)] (5) The superintendent of public instruction shall provide space for staff of the
67     State Charter School Board in facilities occupied by the State Board of Education or the State
68     Board of Education's employees, with costs charged [for the facilities] equal to those charged
69     [other] to sections and divisions under the State Board of Education.
70          Section 3. Section 53A-1a-505 is amended to read:
71          53A-1a-505. Charter schools authorized by the State Charter School Board --
72     Application process -- Prohibited bases of application denial.
73          (1) (a) An applicant seeking authorization of a charter school from the State Charter
74     School Board shall provide a copy of the application to the local school board of the school
75     district in which the proposed charter school shall be located either before or at the same time it
76     files its application with the State Charter School Board.
77          (b) The local board may review the application and may offer suggestions or
78     recommendations to the applicant or the State Charter School Board prior to its acting on the
79     application.
80          (c) The State Charter School Board shall give due consideration to suggestions or
81     recommendations made by the local school board under Subsection (1)(b).
82          (d) The State Charter School Board shall review and, by majority vote, either approve
83     or deny the application.
84          (e) The State Board of Education shall, by majority vote, within 60 days after action by
85     the State Charter School Board under Subsection (1)(d) and subject to Subsection (2):
86          [(i) approve or deny an application approved by the State Charter School Board; or]
87          [(ii) hear an appeal, if any, of an application denied by the State Charter School Board.]
88          (i) consent to the State Charter School Board's approval of an application; or
89          (ii) remand the decision to approve an application back to the State Charter School
90     Board with a description of the State Charter School Board's noncompliance with state law or
91     State Board of Education rules.
92          (f) The State Board of Education's action under Subsection (1)[(d)](e) is final action
93     subject to judicial review.
94          (g) A charter school application may not be denied on the basis that the establishment
95     of the charter school will have any or all of the following impacts on a public school, including
96     another charter school:
97          (i) an enrollment decline;
98          (ii) a decrease in funding; or
99          (iii) a modification of programs or services.
100          (2) (a) Except as provided in Subsection (2)(b), the State Board of Education's review
101     of a State Charter School Board decision to approve an application as described in Subsection
102     (1)(e) is limited to reviewing the application approval process to determine whether the State
103     Charter School Board complied with the requirements of state law and rules adopted by the
104     State Board of Education as described in Section 53A-1a-501.4.
105          (b) The State Board of Education may remand a State Charter School Board's decision
106     to approve an application back to the State Charter School Board if a student safety or health
107     concern is raised.
108          [(2)] (3) The State Board of Education shall make a rule providing a timeline for the
109     opening of a charter school following the approval of a charter school application by the State
110     Charter School Board.
111          [(3)] (4) After approval of a charter school application and in accordance with Section
112     53A-1a-508, the applicant and the State Charter School Board shall set forth the terms and
113     conditions for the operation of the charter school in a written charter agreement.
114          [(4)] (5) The State Charter School Board shall, in accordance with State Board of
115     Education rules, establish and make public the State Charter School Board's:
116          (a) application requirements, in accordance with Section 53A-1a-504;
117          (b) application process, including timelines, in accordance with this section; and
118          (c) minimum academic, financial, and enrollment standards.
119          Section 4. Section 53A-1a-518 is amended to read:
120          53A-1a-518. Regulated transactions and relationships -- Definitions --
121     Rulemaking.
122          (1) As used in this section:
123          (a) "Charter school officer" means:
124          (i) a member of a charter school's governing board;
125          (ii) a member of a board or an officer of a nonprofit corporation under which a charter
126     school is organized and managed; or
127          (iii) the chief administrative officer of a charter school.
128          (b) (i) "Employment" means a position in which a person's salary, wages, pay, or
129     compensation, whether as an employee or contractor, is paid from charter school funds.
130          (ii) "Employment" does not include a charter school volunteer.
131          (c) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
132     uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
133     sister-in-law, son-in-law, or daughter-in-law.
134          (2) (a) Except as provided in Subsection (2)(b), a relative of a charter school officer
135     may not be employed at a charter school.
136          (b) If a relative of a charter school officer is to be considered for employment in a
137     charter school, the charter school officer shall:
138          (i) disclose the relationship, in writing, to the other charter school officers;
139          (ii) submit the employment decision to the charter school's governing board for the
140     approval, by majority vote, of the charter school's governing board;
141          (iii) abstain from voting on the issue; and
142          (iv) be absent from [any] the portion of the meeting [when] where the employment is
143     being considered and determined.
144          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school officer or a
145     relative of a charter school officer may not have a financial interest in a contract or other
146     transaction involving a charter school in which the charter school officer serves as a charter
147     school officer.
148          (b) If a charter school's governing board considers entering into a contract or executing
149     a transaction in which a charter school officer or a relative of a charter school officer has a
150     financial interest, the charter school officer shall:
151          (i) disclose the financial interest, in writing, to the other charter school officers;
152          (ii) submit the contract or transaction decision to the charter school's governing board
153     for the approval, by majority vote, of the charter school's governing board;
154          (iii) abstain from voting on the issue; and
155          (iv) be absent from [any] the portion of the meeting [when] where the contract or
156     transaction is being considered and determined.
157          (c) The provisions in Subsection (3)(a) do not apply to a reasonable contract of
158     employment for:
159          (i) the chief administrative officer of a charter school; or
160          (ii) a relative of the chief administrative officer of a charter school whose employment
161     is approved in accordance with the provisions in Subsection (2).
162          (4) The State Board of Education or State Charter School Board may not operate a
163     charter school.