Representative Karianne Lisonbee proposes the following substitute bill:


1     
CHARTER SCHOOL ACCOUNTABILITY AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karianne Lisonbee

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions of the charter school code.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     amends the State Charter School Board compilation;
14          ▸     amends certain charter school performance measures;
15          ▸     requires the State Charter School Board to create bylaws;
16          ▸     amends certain charter school accountability measures;
17          ▸     replaces the State Charter School Board duties regarding certain application
18     requests with charter school authorizers;
19          ▸     allows charter schools found in noncompliance of certain requirements opportunity
20     for a review of evidence of noncompliance before the charter school authorizer;
21          ▸     amends provisions regarding transfer of operations from a terminated charter school
22     to certain other entities; and
23          ▸     makes technical and conforming changes.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          53G-5-102, as last amended by Laws of Utah 2021, Second Special Session, Chapter 1
31          53G-5-104, as renumbered and amended by Laws of Utah 2018, Chapter 3
32          53G-5-201, as last amended by Laws of Utah 2020, Chapter 352
33          53G-5-202, as last amended by Laws of Utah 2021, Chapter 439
34          53G-5-203, as last amended by Laws of Utah 2021, Chapter 345
35          53G-5-204, as renumbered and amended by Laws of Utah 2018, Chapter 3
36          53G-5-205, as last amended by Laws of Utah 2023, Chapter 235
37          53G-5-301, as last amended by Laws of Utah 2019, Chapter 293
38          53G-5-302, as last amended by Laws of Utah 2019, Chapter 293
39          53G-5-303, as last amended by Laws of Utah 2022, Chapters 291, 352
40          53G-5-304, as last amended by Laws of Utah 2020, Chapter 408
41          53G-5-305, as last amended by Laws of Utah 2019, Chapter 293
42          53G-5-306, as last amended by Laws of Utah 2021, Chapter 324
43          53G-5-307, as enacted by Laws of Utah 2020, Chapter 192
44          53G-5-401, as renumbered and amended by Laws of Utah 2018, Chapter 3
45          53G-5-404, as last amended by Laws of Utah 2023, Chapter 352
46          53G-5-406, as last amended by Laws of Utah 2020, Chapter 408
47          53G-5-413, as last amended by Laws of Utah 2019, Chapter 136
48          53G-5-501, as last amended by Laws of Utah 2023, Chapter 54
49          53G-5-502, as last amended by Laws of Utah 2020, Chapter 192
50          53G-5-503, as last amended by Laws of Utah 2023, Chapter 164
51          53G-5-504, as last amended by Laws of Utah 2023, Chapters 54, 435
52     

53     Be it enacted by the Legislature of the state of Utah:
54          Section 1. Section 53G-5-102 is amended to read:
55          53G-5-102. Definitions.
56          As used in this chapter:
57          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
58     includes:
59          (a) cash;
60          (b) stock or other investments;
61          (c) real property;
62          (d) equipment and supplies;
63          (e) an ownership interest;
64          (f) a license;
65          (g) a cause of action; and
66          (h) any similar property.
67          (2) "Charter school authorizer" or "authorizer" means an entity listed in Section
68     53G-5-205 that authorizes a charter school.
69          [(2) "Board of trustees of a]
70          (3) "Institution of higher education [institution] board of trustees" or "board of
71     trustees" means:
72          (a) the board of trustees of:
73          (i) the University of Utah;
74          (ii) Utah State University;
75          (iii) Weber State University;
76          (iv) Southern Utah University;
77          (v) Snow College;
78          (vi) Utah Tech University;
79          (vii) Utah Valley University; or
80          (viii) Salt Lake Community College; [or]
81          (b) a technical college board of trustees described in Section 53B-2a-108[.]; or
82          (c) a board of trustees of a private, nonprofit college or university in the state that is
83     accredited by the Northwest Commission on Colleges and Universities.
84          [(3) "Charter school authorizer" or "authorizer" means an entity listed in Section
85     53G-5-205 that authorizes a charter school.]
86          Section 2. Section 53G-5-104 is amended to read:
87          53G-5-104. Purpose of charter schools.
88          The purposes of the state's charter schools [as a whole] are to enhance school choice,
89     meet the unique needs of Utah families, and encourage innovation within the public education
90     system by:
91          (1) [continue] continuing to improve student learning;
92          (2) [encourage] encouraging the use of different and innovative teaching methods;
93          (3) [create] creating new professional opportunities for educators that [will] allow
94     [them] educators to actively participate in designing and implementing [the] learning [program]
95     programs at the school;
96          (4) [increase] increasing choice of learning opportunities for students;
97          (5) [establish new models of public schools and a new form of accountability for
98     schools that emphasizes the measurement of learning outcomes and the creation of innovative
99     measurement tools] establishing new educational models and new forms of accountability that
100     emphasize unique performance measures and innovative measurement tools to measure
101     education outcomes;
102          (6) [provide] providing opportunities for greater parental involvement in [management
103     ] governance decisions at the school level; [and]
104          (7) [expand] expanding public school choice in areas where there is a lack of school
105     choice or where schools have been identified for school improvement, corrective action, or
106     restructuring [under the No Child Left Behind Act of 2001, 20 U.S.C. Sec. 6301 et seq.]; and
107          (8) collaborating within the public education system.
108          Section 3. Section 53G-5-201 is amended to read:
109          53G-5-201. State Charter School Board created.
110          (1) As used in this section, "organization that represents Utah's charter schools" means
111     an organization, except a governmental entity, that advocates for charter schools, charter school
112     parents, or charter school students.
113          (2) (a) [The] This section creates the State Charter School Board.
114          (b) [is created consisting of the following members appointed by the governor with]
115     With the advice and consent of the Senate, the governor shall appoint seven individuals to
116     serve on the State Charter School Board to consist of:
117          (i) one member who has expertise in finance [or], small business management, law, or
118     public policy;
119          (ii) three members who:
120          (A) are nominated by an organization that represents Utah's charter schools; [and]
121          (B) have expertise or experience in developing or administering a charter school; and
122          (iii) [two members] one member who [are] is nominated by the state board; and
123          (iv) [one member] two members who[: (A) has] have expertise in [personalized
124     learning, including digital teaching and learning or deliberate practice; and (B) supports]
125     innovation in education.
126          [(b)] (c) Each appointee shall [have demonstrated] demonstrate support and dedication
127     to the purposes of charter schools as [outlined] described in Section 53G-5-104.
128          [(c)] (d) At least two candidates shall be nominated for each appointment made under
129     Subsection [(2)(a)(ii) or (iii)] (2)(b)(ii).
130          [(d)] (e) The governor may seek nominations for a prospective appointment under
131     Subsection [(2)(a)(ii)] (2)(b)(ii) from one or more organizations that represent Utah's charter
132     schools.
133          (3) (a) State Charter School Board members shall serve four-year terms.
134          (b) If a vacancy occurs, the governor shall, with the advice and consent of the Senate, [
135     ]appoint a replacement for the unexpired term, in accordance with Title 63G, Chapter 24, Part
136     2, Vacancies.
137          (4) The governor may remove a member at any time for official misconduct, habitual
138     or willful neglect of duty, or for other good and sufficient cause.
139          (5) (a) The State Charter School Board shall [annually elect a chair from its
140     membership] create bylaws to govern the State Charter School Board operations.
141          (b) Four members of the State Charter School Board shall constitute a quorum.
142          (c) Meetings may be called by the chair or upon request of three members of the State
143     Charter School Board.
144          (6) A member may not receive compensation or benefits for the member's service, but
145     may receive per diem and travel expenses in accordance with:
146          (a) Section 63A-3-106[; (b)] and Section 63A-3-107; and
147          [(c)] (b) rules [made by] that the Division of Finance [pursuant to] makes in
148     accordance with Sections 63A-3-106 and 63A-3-107.
149          Section 4. Section 53G-5-202 is amended to read:
150          53G-5-202. Status and powers of State Charter School Board.
151          (1) The State Charter School Board may:
152          (a) enter into contracts;
153          (b) sue and be sued; and
154          (c) (i) at the discretion of the charter school, provide administrative services to, or
155     perform other school functions for, charter schools authorized by the State Charter School
156     Board; and
157          (ii) charge fees for the provision of services or functions.
158          (2) The state board shall:
159          (a) approve [the annual budget and expenditures of] the State Charter School [Board]
160     Board's annual budget; and
161          (b) otherwise grant autonomy to the State Charter School Board to manage the State
162     Charter School Board's budget.
163          Section 5. Section 53G-5-203 is amended to read:
164          53G-5-203. State Charter School Board -- Staff director -- Facilities.
165          (1) (a) The State Charter School Board[, with the consent of the state superintendent,]
166     shall appoint a staff director for the State Charter School Board.
167          (b) The State Charter School Board shall have authority to remove the staff director
168     [with the consent of the state superintendent].
169          (c) The position of staff director is exempt from the career service provisions of Title
170     63A, Chapter 17, Utah State Personnel Management Act.
171          (2) The state superintendent shall provide space for [staff of the] State Charter School
172     Board staff in facilities occupied by the state board or the state board's employees, with costs
173     charged for the facilities equal to those charged to other sections and divisions under the state
174     board.
175          (3) Notwithstanding Subsection (2), the State Charter School Board may use facilities
176     for State Charter School Board operations other than facilities that the state board or the state
177     board's employees occupy.
178          Section 6. Section 53G-5-204 is amended to read:
179          53G-5-204. Charter school innovative practices -- Report to State Charter School
180     Board.
181          [Prior to]
182          (1) On or before July 31 of each year, a charter school may identify and report to the
183     State Charter School Board [its] the charter school's innovative practices which fulfill the
184     purposes of charter schools as [outlined] described in Section 53G-5-104, including:
185          [(1)] (a) unique learning opportunities providing increased choice in education;
186          [(2)] (b) new public school models;
187          [(3)] (c) innovative teaching practices;
188          [(4)] (d) opportunities for educators to actively participate in the design and
189     implementation of the learning program;
190          [(5)] (e) new forms of accountability emphasizing [the measurement of learning
191     outcomes and the creation of new] measurement tools in measuring education outcomes;
192          [(6)] (f) opportunities for greater parental involvement, including involvement in
193     [management] governance decisions; and
194          [(7)] (g) the impact of the innovative practices on student achievement.
195          (2) The Charter School Board may forward the report received under Subsection (1) to
196     the state board.
197          Section 7. Section 53G-5-205 is amended to read:
198          53G-5-205. Charter school authorizers -- Power and duties -- Charter application
199     minimum standard.
200          (1) The following entities are eligible to authorize charter schools:
201          (a) the State Charter School Board;
202          (b) a local school board; or
203          (c) [a board of trustees of an institution in the state system of higher education as
204     described] an institution of higher education board of trustees, as that term is defined in Section
205     [53B-1-102; or] 53G-5-102.
206          [(d) a board of trustees of a private, nonprofit college or university in the state that is
207     accredited by the Northwest Commission on Colleges and Universities.]
208          (2) A charter school authorizer shall:
209          (a) authorize and promote the establishment of charter schools;
210          (b) before an application for charter school authorization is submitted to a charter
211     school authorizer, review and evaluate the proposal to support and strengthen the charter
212     school authorization proposal;
213          (c) [annually] review and evaluate the performance of charter schools authorized by the
214     authorizer and hold a charter school accountable for the [school's] performance measures
215     established in the charter school's charter agreement; [and]
216          [(b) monitor charter schools authorized by the authorizer for compliance with federal
217     and state laws, rules, and regulations.]
218          (d) assist charter schools in understanding and carrying out the charter school's charter
219     obligations; and
220          (e) provide technical support to charter schools and persons seeking to establish charter
221     schools by:
222          (i) identifying and promoting successful charter school models;
223          (ii) facilitating the application and approval process for charter school authorization; or
224          (iii) directing charter schools and persons seeking to establish charter schools to
225     sources of funding and support.
226          (3) A charter school authorizer may:
227          [(a) authorize and promote the establishment of charter schools, subject to the
228     provisions in this part;]
229          [(b)] (a) make recommendations to the Legislature on legislation [and rules] pertaining
230     to charter schools [to the Legislature and state board, respectively];
231          [(c)] (b) make recommendations to the state board on [the] charter school rules and
232     charter school funding [of charter schools]; or
233          [(d) provide technical support to charter schools and persons seeking to establish
234     charter schools by:]
235          [(i) identifying and promoting successful charter school models;]
236          [(ii) facilitating the application and approval process for charter school authorization;]
237          [(iii) directing charter schools and persons seeking to establish charter schools to
238     sources of funding and support;]
239          [(iv) reviewing and evaluating proposals to establish charter schools for the purpose of
240     supporting and strengthening proposals before an application for charter school authorization is
241     submitted to a charter school authorizer; or]
242          [(v) assisting charter schools to understand and carry out their charter obligations; or]
243          [(e)] (c) provide technical support, as requested, to another charter school authorizer
244     relating to charter schools.
245          (4) Within 60 days after [an authorizer's approval of] the day on which an authorizer
246     approves an application for a new charter school, the state board may direct an authorizer to do
247     the following if the authorizer or charter school applicant failed to follow statutory or state
248     board rule requirements made in accordance with Title 63G, Chapter 3, Utah Administrative
249     Rulemaking Act:
250          (a) reconsider the authorizer's approval of an application for a new charter school; and
251          (b) correct deficiencies in the charter school application or authorizer's application
252     process as described in statute or state board rule, made in accordance with Title 63G, Chapter
253     3, Utah Administrative Rulemaking Act, before approving the new application.
254          (5) The state board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
255     Rulemaking Act, make rules establishing minimum standards that a charter school authorizer is
256     required to apply when[:]
257          [(a)] evaluating a charter school application[; or].
258          [(b) monitoring charter school compliance.]
259          (6) The minimum standards described in Subsection (5) shall include:
260          (a) reasonable consequences for an authorizer that fails to comply with statute or state
261     board rule;
262          (b) a process for an authorizer to review:
263          (i) the skill and expertise of a proposed charter school's governing board; and
264          (ii) the functioning operation of the charter school governing board of an authorized
265     charter school;
266          (c) a process for an authorizer to review the financial viability of a proposed charter
267     school and of an authorized charter school;
268          (d) a process to evaluate:
269          (i) how well an authorizer's authorized charter school complies with the charter
270     school's charter agreement;
271          (ii) whether an authorizer's authorized charter school maintains reasonable academic
272     and education standards; and
273          (iii) standards that an authorizer is required to meet to demonstrate the authorizer's
274     capacity to oversee[, monitor,] and evaluate the charter schools the authorizer authorizes.
275          Section 8. Section 53G-5-301 is amended to read:
276          53G-5-301. Charter school authorizer to request applications for certain types of
277     charter schools.
278          (1) To meet the unique learning styles and needs of students, [the State Charter School
279     Board] a charter school authorizer shall seek to expand the types of instructional methods and
280     programs offered by schools, as provided in this section.
281          (2) (a) [The State Charter School Board] A charter school authorizer shall request
282     individuals, groups of individuals, or [not-for-profit] nonprofit legal entities to submit an
283     application to [the State Charter School Board] a charter school authorizer to establish a charter
284     school that employs new and creative methods to meet the unique learning styles and needs of
285     students, such as:
286          (i) a military charter school;
287          (ii) a charter school [whose mission is to enhance] that focuses on learning
288     opportunities for students at risk of academic failure;
289          (iii) a charter school [whose focus is] that focuses on career and technical education;
290          (iv) a single gender charter school; [or]
291          (v) a charter school with an international focus that provides opportunities for the
292     exchange of students or teachers[.];
293          (vi) a charter school that focuses on serving underserved students; or
294          (vii) an alternative charter school offering programs for nontraditional students.
295          (b) In addition to a charter school identified in Subsection (2)(a), [the State Charter
296     School Board] a charter school authorizer shall request applications for other types of charter
297     schools that meet the unique learning styles and needs of students.
298          (3) [The State Charter School Board] A charter school authorizer shall publicize a
299     request for applications to establish a charter school specified in Subsection (2).
300          (4) A charter school application submitted pursuant to Subsection (2) shall be subject
301     to the application and approval procedures [specified in] in accordance with Section
302     53G-5-304.
303          (5) [The State Charter School Board] A charter school authorizer and the state board
304     may approve one or more applications for each charter school [specified] described in
305     Subsection (2), subject to the Legislature appropriating funds for, or authorizing, an increase in
306     charter school enrollment capacity as [provided] described in Section 53G-6-504.
307          (6) The state board shall submit a request to the Legislature to appropriate funds for, or
308     authorize, the enrollment of students in charter schools tentatively approved under this section.
309          Section 9. Section 53G-5-302 is amended to read:
310          53G-5-302. Charter school application -- Applicants -- Contents.
311          (1) (a) An application to establish a charter school may be submitted by:
312          (i) an individual;
313          (ii) a group of individuals; or
314          (iii) a nonprofit legal entity organized under Utah law.
315          (b) An authorized charter school may apply under this chapter for a charter from
316     another charter school authorizer.
317          (2) A charter school application shall include:
318          (a) the purpose and mission of the school;
319          (b) except for a charter school authorized by a local school board, a statement that,
320     after entering into a charter agreement, the charter school will be organized and managed
321     [under] in accordance with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act;
322          (c) a description of the governance structure of the school, including:
323          (i) a list of the charter school governing board members that describes the
324     qualifications of each member; and
325          (ii) an assurance that the applicant shall, within 30 days of the date of authorization,
326     complete a background check for each member [consistent with] in accordance with Section
327     53G-5-408;
328          (d) a description of the target population of the school that includes:
329          (i) the projected maximum number of students the school proposes to enroll;
330          (ii) the projected school enrollment for each of the first three years of school operation;
331     and
332          (iii) the ages or grade levels the school proposes to serve;
333          (e) [academic goals] the school's unique performance measures, including academic
334     goals;
335          (f) qualifications and policies for school employees, including policies that:
336          (i) comply with the criminal background check requirements [described in] in
337     accordance with Section 53G-5-408;
338          (ii) require employee evaluations;
339          (iii) address employment of relatives within the charter school; and
340          (iv) address human resource management and ensure that:
341          (A) at least one of the school's employees or another person is assigned human
342     resource management duties, as defined in Section 17B-1-805; and
343          (B) the assigned employee or person described in Subsection (2)(f)(iv)(A) receives
344     human resource management training, as defined in Section 17B-1-805;
345          (g) a description of how the charter school will provide, as required by state and federal
346     law, special education and related services;
347          (h) for a [public] school district converting to charter status, arrangements for:
348          (i) students who choose not to continue attending the charter school; and
349          (ii) teachers who choose not to continue teaching at the charter school;
350          (i) a statement that describes the charter school's plan for establishing the charter
351     school's facilities, including:
352          (i) whether the charter school intends to lease or purchase the charter school's facilities;
353     and
354          (ii) anticipated financing arrangements;
355          (j) a market analysis of the community the school plans to serve;
356          (k) a business plan;
357          (l) other major issues involving the establishment and operation of the charter school;
358     and
359          (m) the signatures of the charter school governing board members.
360          (3) A charter school authorizer may require a charter school application to include:
361          (a) the charter school's proposed:
362          (i) curriculum;
363          (ii) instructional program; or
364          (iii) delivery methods;
365          (b) a method for assessing whether students are reaching [academic goals, including, at
366     a minimum,] the school's performance measures and academic goals, including administering
367     the statewide assessments [described] as defined in Section 53E-4-301;
368          (c) a proposed calendar;
369          (d) sample policies;
370          (e) a description of opportunities for parental involvement;
371          (f) a description of the school's administrative, supervisory, or other proposed services
372     that may be obtained through service providers; or
373          (g) other information that demonstrates an applicant's ability to establish and operate a
374     charter school.
375          Section 10. Section 53G-5-303 is amended to read:
376          53G-5-303. Charter agreement -- Content -- Modification.
377          [(1)] As used in this section:
378          [(2)] (1) (a) "Innovation plan" means the same as that term is defined in Section
379     53G-7-221.
380          (b) "Satellite charter school" means a charter school affiliated with an operating charter
381     school, which has the same charter school governing board and a similar program of
382     instruction, but has a different school number than the affiliated charter.
383          [(3)] (2) A charter agreement:
384          (a) is a contract between the charter school applicant and the charter school authorizer;
385          (b) shall describe the rights and responsibilities of each party; and
386          (c) shall allow for the operation of the applicant's proposed charter school.
387          [(4)] (3) A charter agreement shall include:
388          (a) the name of:
389          (i) the charter school; and
390          (ii) [the charter school applicant] the entity with whom the charter school authorizer
391     contracts;
392          (b) the mission statement and purpose of the charter school;
393          (c) the charter school's opening date;
394          (d) the grade levels the charter school will serve;
395          (e) (i) subject to Section 53G-6-504, the maximum number of students a charter school
396     will serve; or
397          (ii) for an operating charter school with satellite charter schools, the maximum number
398     of students of all satellite charter schools collectively served by the operating charter school;
399          (f) a description of the structure of the charter school governing board, including:
400          (i) the number of charter school governing board members;
401          (ii) how members of the charter school governing board are appointed; and
402          (iii) charter school governing board members' terms of office;
403          (g) assurances that:
404          (i) the charter school governing board will comply with:
405          (A) the charter school's bylaws;
406          (B) the charter school's articles of incorporation; and
407          (C) applicable federal law, state law, and state board rules;
408          (ii) the charter school governing board will meet all reporting requirements described
409     in Section 53G-5-404; and
410          (iii) except as provided in Part 6, Charter School Credit Enhancement Program, neither
411     the authorizer nor the state, including an agency of the state, is liable for the debts or financial
412     obligations of the charter school or a person who operates the charter school;
413          (h) which administrative rules the state board will waive for the charter school;
414          (i) minimum financial standards for operating the charter school;
415          (j) minimum performance standards [for student achievement]; and
416          (k) signatures of the charter school authorizer and the charter school governing board
417     members.
418          [(5)] (4) (a) Except as provided in Subsection [(5)(b)] (4)(b), a charter agreement may
419     not be modified except by mutual agreement between the charter school authorizer and the
420     charter school governing board.
421          (b) A charter school governing board may modify the charter school's charter
422     agreement without the mutual agreement described in Subsection [(5)(a)] (4)(a) to:
423          (i) include an enrollment preference as described in Subsection 53G-6-502(4)(h); or
424          (ii) only as described in Subsection 53G-7-221(5), include or remove an innovation
425     plan.
426          Section 11. Section 53G-5-304 is amended to read:
427          53G-5-304. Charter schools authorized by the State Charter School Board --
428     Application process -- Prohibited basis of application denial.
429          (1) (a) An applicant seeking authorization of a charter school from the State Charter
430     School Board shall provide a copy of the application to the local school board of the school
431     district in which the proposed charter school [shall] will be located either before or at the same
432     time [it] as the applicant files [its] the charter school application with the State Charter School
433     Board.
434          (b) The local school board may review the application and may offer suggestions or
435     recommendations to the applicant or the State Charter School Board [prior to its acting] before
436     taking action on the application.
437          (c) The State Charter School Board shall give due consideration to suggestions or
438     recommendations made by the local school board under Subsection (1)(b).
439          (d) The State Charter School Board shall review and, by majority vote, either approve
440     or deny the application.
441          (e) A charter school application may not be denied on the basis that the establishment
442     of the charter school will have any or all of the following impacts on a public school, including
443     another charter school:
444          (i) an enrollment decline;
445          (ii) a decrease in funding; or
446          (iii) a modification of programs or services.
447          (2) The state board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
448     Rulemaking Act, make a rule providing a timeline for the opening of a charter school following
449     the approval of a charter school application by the State Charter School Board.
450          (3) After approval of a charter school application and in accordance with Section
451     53G-5-303, the applicant and the State Charter School Board shall set forth the terms and
452     conditions for the operation of the charter school in a written charter agreement.
453          (4) The State Charter School Board shall, in accordance with state board rules,
454     establish and make public the State Charter School Board's:
455          (a) application requirements, in accordance with Section 53G-5-302;
456          (b) application process, including timelines, in accordance with this section; and
457          (c) minimum academic, governance, operational, and financial[, and enrollment]
458     standards.
459          Section 12. Section 53G-5-305 is amended to read:
460          53G-5-305. Charters authorized by local school boards -- Application process --
461     Local school board responsibilities.
462          (1) (a) An applicant identified in Section 53G-5-302 may submit an application to a
463     local school board to establish and operate a charter school within the geographical boundaries
464     of the school district administered by the local school board.
465          (b) (i) The principal, teachers, or parents of students at an existing public school may
466     submit an application to the local school board to convert the school or a portion of the school
467     to charter status.
468          (A) If the entire school is applying for charter status, at least two-thirds of the licensed
469     educators employed at the school and at least two-thirds of the parents of students enrolled at
470     the school [must have signed] shall sign a petition approving the application [prior to its]
471     before submission to the charter school authorizer.
472          (B) If only a portion of the school is applying for charter status, [the percentage is
473     reduced to] a simple majority of the licensed educators employed at the school and a simple
474     majority of the parents of students enrolled at the school shall sign a petition approving the
475     application before submission to the charter school authorizer.
476          (ii) The local school board may not approve an application submitted under Subsection
477     (1)(b)(i) unless the local school board determines that:
478          (A) students opting not to attend the proposed converted school would have access to a
479     comparable public education alternative; and
480          (B) current teachers who choose not to teach at the converted charter school or who are
481     not retained by the school at the time of [its] conversion would receive a first preference for
482     transfer to open teaching positions for which [they] the teachers qualify within the school
483     district, and, if no positions are open, contract provisions or local school board policy regarding
484     reduction in staff would apply.
485          (2) (a) An existing public school that converts to charter status under a charter granted
486     by a local school board may:
487          (i) continue to receive the same services from the school district that [it] the school
488     received [prior to its] before the charter school's conversion; or
489          (ii) contract out for some or all of [those] the services with other public or private
490     providers.
491          (b) Any other charter school authorized by a local school board may contract with the
492     local school board to receive some or all of the services referred to in Subsection (2)(a).
493          (c) Except as specified in a charter agreement, local school board assets do not transfer
494     to an existing public school that converts to charter status under a charter granted by a local
495     school board under this section.
496          (3) (a) A local school board that receives an application for a charter school under this
497     section shall, within 45 days, either accept or reject the application.
498          (b) If the local school board rejects the application, [it] the local school board shall
499     notify the applicant in writing of the reason for the rejection.
500          (c) The applicant may submit a revised application for reconsideration by the local
501     school board.
502          (d) If the local school board refuses to authorize the applicant, the applicant may seek a
503     charter from another authorizer.
504          (4) The state board shall make a rule providing for a timeline for the opening of a
505     charter school following the approval of a charter school application by a local school board.
506          (5) After approval of a charter school application and in accordance with Section
507     53G-5-303, the applicant and the local school board shall set forth the terms and conditions for
508     the operation of the charter school in a written charter agreement.
509          (6) A local school board may terminate a charter school [it] the local school board
510     authorizes [as provided in] in accordance with Sections 53G-5-501 and 53G-5-503.
511          (7) In addition to the exemptions described in Sections 53G-5-405, 53G-7-202, and
512     53G-5-407, a charter school authorized by a local school board is:
513          (a) not required to separately submit a report or information required under this public
514     education code to the state board if the information is included in a report or information that is
515     submitted by the local school board or school district; and
516          (b) exempt from the requirement under Section 53G-5-404 that a charter school shall
517     be organized and managed under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation
518     Act.
519          (8) Before a local school board accepts a charter school application, the local school
520     board shall, in accordance with state board rules, establish and make public the local school
521     board's:
522          (a) application requirements, in accordance with Section 53G-5-302;
523          (b) application process, including timelines, in accordance with this section; and
524          (c) minimum academic, governance, operational, and financial[, and enrollment]
525     standards.
526          Section 13. Section 53G-5-306 is amended to read:
527          53G-5-306. Charter schools authorized by a board of trustees of a higher
528     education institution -- Application process -- Board of trustees responsibilities.
529          (1) Except as provided in Subsection (6), an applicant identified in Section 53G-5-302
530     may enter into an agreement with [a board of trustees of a higher education institution] an
531     institution of higher education board of trustees authorizing the applicant to establish and
532     operate a charter school.
533          (2) (a) An applicant applying for authorization from a board of trustees to establish and
534     operate a charter school shall provide a copy of the application to the local school board of the
535     school district in which the proposed charter school will be located either before or at the same
536     time the applicant files the application with the board of trustees.
537          (b) The local school board may review the application and offer suggestions or
538     recommendations to the applicant or the board of trustees before acting on the application.
539          (c) The board of trustees shall give due consideration to suggestions or
540     recommendations made by the local school board under Subsection (2)(b).
541          (3) The state board shall make a rule providing a timeline for the opening of a charter
542     school following the approval of a charter school application by a board of trustees.
543          (4) After approval of a charter school application, the applicant and the board of
544     trustees shall set forth the terms and conditions for the operation of the charter school in a
545     written charter agreement.
546          (5) (a) The school's charter agreement may include a provision that the charter school
547     pay an annual fee for the board of trustees' costs in providing oversight of, and technical
548     support to, the charter school in accordance with Section 53G-5-205.
549          (b) In the first two years that a charter school is in operation, an annual fee described in
550     Subsection (5)(a) may not exceed the product of 3% of the revenue the charter school receives
551     from the state in the current fiscal year.
552          (c) Beginning with the third year that a charter school is in operation, an annual fee
553     described in Subsection (5)(a) may not exceed the product of 1% of the revenue a charter
554     school receives from the state in the current fiscal year.
555          (d) An annual fee described in Subsection (5)(a) shall be:
556          (i) paid to the [board of trustees' higher education institution] board of trustees; and
557          (ii) expended as directed by the board of trustees.
558          (6) (a) In addition to complying with the requirements of this section, a technical
559     college board of trustees [described], as defined in Section 53B-2a-108, shall obtain the
560     approval of the Utah Board of Higher Education before entering into an agreement to establish
561     and operate a charter school.
562          (b) If a technical college board of trustees approves an application to establish and
563     operate a charter school, the technical college board of trustees shall submit the application to
564     the Utah Board of Higher Education.
565          (c) The Utah Board of Higher Education shall, by majority vote, within 60 days of
566     receipt of an application described in Subsection (6)(b), approve or deny the application.
567          (d) The Utah Board of Higher Education may deny an application approved by a
568     technical college board of trustees if the proposed charter school does not accomplish a
569     purpose of charter schools as provided in Section 53G-5-104.
570          (e) A charter school application may not be denied on the basis that the establishment
571     of the charter school will have any or all of the following impacts on a public school, including
572     another charter school:
573          (i) an enrollment decline;
574          (ii) a decrease in funding; or
575          (iii) a modification of programs or services.
576          (7) (a) Subject to the requirements of this chapter and other related provisions, a
577     technical college board of trustees may establish:
578          (i) procedures for submitting applications to establish and operate a charter school; or
579          (ii) criteria for approval of an application to establish and operate a charter school.
580          (b) The Utah Board of Higher Education may not establish policy governing the
581     procedures or criteria described in Subsection (7)(a).
582          (8) Before a technical college board of trustees accepts a charter school application, the
583     technical college board of trustees shall, in accordance with state board rules, establish and
584     make public:
585          (a) application requirements, in accordance with Section 53G-5-302;
586          (b) the application process, including timelines, in accordance with this section; and
587          (c) minimum academic, governance, operational, and financial[, and enrollment]
588     standards.
589          Section 14. Section 53G-5-307 is amended to read:
590          53G-5-307. Charter school authorization -- Initial review period.
591          (1) An authorizer shall grant a charter school approved under this title initial approval
592     for a three-year review period, beginning with the first year of the charter school's operation.
593          (2) Beginning in the first year of the initial review period, the authorizer shall comply
594     with the accountability and review procedures [described] in accordance with Section
595     53G-5-406.
596          (3) The authorizer may extend the initial review period for one year, up to two times
597     during the initial review period.
598          (4) At the end of the initial review period, the authorizer shall:
599          (a) grant the charter school ongoing approval; or
600          (b) terminate the charter agreement, subject to the requirements of Section 53G-5-503.
601          (5) The authorizer shall, under the minimum standards described in Section
602     53G-5-205, base the decision to grant ongoing approval or terminate the charter agreement on:
603          (a) the charter school's compliance with the terms of the charter agreement;
604          (b) whether the charter school is meeting [academic standards] the performance
605     measures in the charter school's charter agreement and minimum academic standards;
606          (c) the charter school's financial viability; and
607          (d) the charter school's capacity to meet governance standards.
608          (6) A charter school that is granted initial approval under this section may not
609     participate in the Charter School Credit Enhancement Program until the authorizer grants
610     ongoing approval of the charter school's charter.
611          Section 15. Section 53G-5-401 is amended to read:
612          53G-5-401. Status of charter schools.
613          (1) Charter schools are:
614          (a) considered to be public schools within the state's public education system;
615          (b) subject to Subsection 53E-3-401(8); and
616          (c) governed by independent boards and held accountable to a legally binding written
617     contractual agreement.
618          (2) A charter school may be established by:
619          (a) creating a new school; or
620          (b) converting an existing [public] district school to charter status.
621          (3) A parochial school or home school is not eligible for charter school status.
622          Section 16. Section 53G-5-404 is amended to read:
623          53G-5-404. Requirements for charter schools.
624          (1) A charter school shall be nonsectarian in [its] the charter school's programs,
625     admission policies, employment practices, and operations.
626          (2) A charter school may not charge tuition or fees, except those fees normally charged
627     by other public schools.
628          (3) A charter school shall meet all applicable federal, state, and local health, safety, and
629     civil rights requirements.
630          (4) (a) A charter school shall:
631          (i) make the same annual reports required of other public schools under this public
632     education code, including an annual financial audit report described in Section 53G-4-404;
633          (ii) ensure that the charter school meets the data and reporting standards described in
634     Section 53E-3-501; and
635          (iii) use fund and program accounting methods and standardized account codes capable
636     of producing financial reports that comply with:
637          (A) generally accepted accounting principles;
638          (B) the financial reporting requirements applicable to LEAs established by the state
639     board under Section 53E-3-501; and
640          (C) accounting report standards established by the state auditor as described in Section
641     51-2a-301.
642          (b) Before, and as a condition for opening a charter school:
643          (i) a charter school shall:
644          (A) certify to the authorizer that the charter school's accounting methods meet the
645     requirements described in Subsection (4)(a)(iii); or
646          (B) if the authorizer requires, conduct a performance demonstration to verify that the
647     charter school's accounting methods meet the requirements described in Subsection (4)(a)(iii);
648     and
649          (ii) the authorizer shall certify to the state board that the charter school's accounting
650     methods meet the requirements described in Subsection (4)(a)(iii).
651          (c) A charter school shall file the charter school's annual financial audit report with the
652     Office of the State Auditor within six months of the end of the fiscal year.
653          (d) For the limited purpose of compliance with federal and state law governing use of
654     public education funds, including restricted funds, and making annual financial audit reports
655     under this section, a charter school is a government entity governed by the public education
656     code.
657          (5) (a) A charter school shall be accountable to the charter school's authorizer for
658     performance as provided in the charter school's charter agreement.
659          (b) To measure the performance of a charter school, an authorizer may use data
660     contained in:
661          (i) the charter school's annual financial audit report;
662          (ii) a report submitted by the charter school as required by statute; or
663          (iii) a report submitted by the charter school as required by [its] the charter school's
664     charter agreement.
665          (c) A charter school authorizer may not impose performance standards, except as
666     permitted by statute, that limit, infringe, or prohibit a charter school's ability to successfully
667     accomplish the purposes of charter schools as provided in Section 53G-5-104 or as otherwise
668     provided in law.
669          (6) A charter school may not advocate unlawful behavior.
670          (7) Except as provided in Section 53G-5-305, a charter school shall be organized and
671     managed [under] in accordance with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation
672     Act, [after its] upon the charter school's authorization.
673          (8) A charter school shall provide adequate liability and other appropriate insurance,
674     including:
675          (a) general liability, errors and omissions, and directors and officers liability coverage
676     through completion of the closure of a charter school [under] in accordance with Section
677     53G-5-504; and
678          (b) tail coverage or closeout insurance covering at least one year after closure of the
679     charter school.
680          [(9) Beginning on July 1, 2014, a charter school, including a charter school that has not
681     yet opened, shall submit any lease, lease-purchase agreement, or other contract or agreement
682     relating to the charter school's facilities or financing of the charter school's facilities to the
683     school's authorizer and an attorney for review and advice before the charter school enters the
684     lease, agreement, or contract.]
685          [(10)] (9) A charter school may not employ an educator whose license is suspended or
686     revoked by the state board under Section 53E-6-604.
687          [(11)] (10) (a) Each charter school shall register and maintain the charter school's
688     registration as a limited purpose entity, in accordance with Section 67-1a-15.
689          (b) A charter school that fails to comply with Subsection [(11)(a)] (10)(a) or Section
690     67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.
691          (c) If a charter school is an operating charter school with affiliated satellite charter
692     schools, as defined in Section 53G-5-303:
693          (i) the operating charter school shall register as a limited purpose entity as defined in
694     Section 67-1a-15;
695          (ii) each affiliated satellite charter school is not required to register separately from the
696     operating charter school; and
697          (iii) the operating charter school shall:
698          (A) register on behalf of each affiliated satellite charter school; and
699          (B) when submitting entity registry information [under] in accordance with Section
700     67-1a-15 on behalf of each affiliated satellite charter school, identify and distinguish registry
701     information for each affiliated satellite, including the address of each affiliated satellite charter
702     school and the name and contact information of a primary contact for each affiliated satellite
703     charter school.
704          [(12)] (11) (a) As used in this Subsection [(12)] (11), "contracting entity" means a
705     person with which a charter school contracts.
706          (b) A charter school shall provide to the charter school's authorizer any information or
707     documents requested by the authorizer, including documents held by a subsidiary of the charter
708     school or a contracting entity:
709          (i) to confirm the charter school's compliance with state or federal law governing the
710     charter school's finances or governance; or
711          (ii) to carry out the authorizer's statutory obligations, including liquidation and
712     assignment of assets, and payment of debt in accordance with state board rule, as described in
713     Section 53G-5-504.
714          (c) A charter school shall comply with a request described in Subsection [(12)(b)]
715     (11)(b), including after an authorizer recommends closure of the charter school or terminates
716     the charter school's contract.
717          (d) Documents held by a contracting entity or subsidiary of a charter school that are
718     necessary to demonstrate the charter school's compliance with state or federal law are the
719     property of the charter school.
720          (e) A charter school shall include in an agreement with a subsidiary of the charter
721     school or a contracting entity a provision that stipulates that documents held by the subsidiary
722     or a contracting entity, that are necessary to demonstrate the charter school's financial
723     compliance with federal or state law, are the property of the charter school.
724          [(13)] (12) For each grading period and for each course in which a student is enrolled,
725     a charter school shall issue a grade or performance report to the student:
726          (a) that reflects the student's work, including the student's progress based on mastery,
727     for the grading period; and
728          (b) in accordance with the charter school's adopted grading or performance standards
729     and criteria.
730          [(14)] (13) (a) As used in this Subsection [(14)] (13):
731          (i) "Learning material" means any learning material or resource used to deliver or
732     support a student's learning, including textbooks, reading materials, videos, digital materials,
733     websites, and other online applications.
734          (ii) (A) "Instructional material" means learning material that a charter school governing
735     board adopts and approves for use within the charter school.
736          (B) "Instructional material" does not include learning material used in a concurrent
737     enrollment, advanced placement, or international baccalaureate program or class, or another
738     class with required instructional material that is not subject to selection by the charter school
739     governing board.
740          (iii) "Supplemental material" means learning material that:
741          (A) an educator selects for classroom use; and
742          (B) a charter school governing board has not considered and adopted, approved, or
743     prohibited for classroom use within the charter school.
744          (b) A charter school shall:
745          (i) make instructional material that the charter school uses readily accessible and
746     available for a parent to view;
747          (ii) annually notify a parent of a student enrolled in the charter school of how to access
748     the information described in Subsection [(14)(b)(i)] (13)(b)(i); and
749          (iii) include on the charter school's website information about how to access the
750     information described in Subsection [(14)(b)(i)] (13)(b)(i).
751          (c) In selecting and approving instructional materials for use in the classroom, a charter
752     school governing board shall:
753          (i) establish an open process, involving educators and parents of students enrolled in
754     the charter school, to review and recommend instructional materials for board approval; and
755          (ii) ensure that under the process described in Subsection [(14)(c)(i)] (13)(c)(i), the
756     charter school governing board:
757          (A) before the public meetings described in Subsection [(14)(c)(ii)(B)] (13)(c)(ii)(B),
758     posts the recommended learning materials online to allow for public review or, for copyrighted
759     material, makes the recommended learning material available at the charter school for public
760     review;
761          (B) before adopting or approving the recommended instructional materials, holds at
762     least two public meetings on the recommendation that provide an opportunity for educators
763     whom the charter school employs and parents of students enrolled in the charter school to
764     express views and opinions on the recommendation; and
765          (C) adopts or approves the recommended instructional materials in an open and regular
766     board meeting.
767          (d) A charter school governing board shall adopt a supplemental materials policy that
768     provides flexible guidance to educators on the selection of supplemental materials or resources
769     that an educator reviews and selects for classroom use using the educator's professional
770     judgment, including whether any process or permission is required before classroom use of the
771     materials or resources.
772          (e) If a charter school contracts with another party to provide online or digital
773     materials, the charter school shall include in the contract a requirement that the provider give
774     notice to the charter school any time that the provider makes a material change to the content of
775     the online or digital materials, excluding regular informational updates on current events.
776          (f) Nothing in this Subsection [(14)] (13) requires a charter school governing board to
777     review all learning materials used within the charter school.
778          Section 17. Section 53G-5-406 is amended to read:
779          53G-5-406. Accountability -- Rules.
780          The state board shall, after consultation with chartering entities, make rules in
781     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, that:
782          (1) require a charter school to develop an accountability plan, approved by [its] the
783     charter school's charter school authorizer, during [its] the charter school's first year of
784     operation;
785          (2) require an authorizer to:
786          (a) visit a charter school at least once during:
787          (i) [its] the charter school's first year of operation; and
788          (ii) the review period described under Subsection (3); and
789          (b) provide written reports to [its] the authorizer's charter schools after the required
790     visits; and
791          (3) establish a [review] process that [is required of a] requires an authorizer to review
792     the authorizer's charter school once every five years [by its authorizer].
793          Section 18. Section 53G-5-413 is amended to read:
794          53G-5-413. Charter school governing board meetings -- Rules of order and
795     procedure.
796          (1) As used in this section, "rules of order and procedure" means a set of rules that
797     governs and prescribes in a public meeting:
798          (a) parliamentary order and procedure;
799          (b) ethical behavior; and
800          (c) civil discourse.
801          (2) A charter school governing board shall:
802          (a) adopt rules of order and procedure to govern a public meeting of the charter school
803     governing board;
804          (b) conduct a public meeting in accordance with the rules of order and procedure
805     described in Subsection (2)(a); and
806          (c) make the rules of order and procedure described in Subsection (2)(a) available to
807     the public[:].
808          [(i) at each public meeting of the charter school governing board; and]
809          [(ii) on the charter school governing board's public website, if available.]
810          (3) The requirements of this section do not affect a charter school governing board's
811     duty to comply with Title 52, Chapter 4, Open and Public Meetings Act.
812          Section 19. Section 53G-5-501 is amended to read:
813          53G-5-501. Noncompliance -- Rulemaking.
814          (1) (a) If a charter school is found to be materially out of compliance with the
815     requirements of Section 53G-5-404 or the school's charter agreement, the charter school
816     authorizer shall [notify the following in writing that the charter school has a] provide written
817     notice of the reason for the charter school's noncompliance and a reasonable time to remedy the
818     deficiency, except as otherwise provided in Subsection 53G-5-503(4)[:], to:
819          [(a)] (i) the charter school governing board; and
820          [(b)] (ii) if the charter school is a qualifying charter school with outstanding bonds
821     issued in accordance with Part 6, Charter School Credit Enhancement Program, the Utah
822     Charter School Finance Authority.
823          (b) The notice described in Subsection (1)(a) shall state that the charter school
824     governing board may request an informal review before the charter school's authorizer to
825     present evidence related to the deficiency.
826          (c) The charter school authorizer shall:
827          (i) review the evidence within a reasonable time to determine if the charter school has
828     remedied the noncompliance or if the circumstances necessitate additional time for the charter
829     school to remedy the deficiency; and
830          (ii) if the charter school authorizer determines that circumstances necessitate additional
831     time to remedy the noncompliance, establish a deadline to remedy the noncompliance.
832          (2) (a) If the charter school does not remedy the material deficiency within the
833     established timeline, the authorizer may:
834          (i) subject to the requirements of Subsection (4), take one or more of the following
835     actions:
836          (A) remove a charter school director or finance officer;
837          (B) remove a charter school governing board member;
838          (C) appoint an interim director, mentor, or finance officer to work with the charter
839     school; or
840          (D) appoint a governing board member;
841          (ii) subject to the requirements of Section 53G-5-503, terminate the school's charter
842     agreement; or
843          (iii) transfer operation and control of the charter school to a high performing charter
844     school, as defined in [Subsection 53G-5-502(1)] Section 53G-5-502, including reconstituting
845     the governing board to effectuate the transfer.
846          (b) The authorizer may prohibit the charter school governing board from removing an
847     appointment made under Subsection (2)(a)(i), for a period of up to one year after the date of the
848     appointment.
849          (3) The costs of an interim director, mentor, or finance officer appointed under
850     Subsection (2)(a) shall be paid from the funds of the charter school for which the interim
851     director, mentor, or finance officer is working, unless the authorizer chooses to pay all or some
852     of the costs.
853          (4) The authorizer shall notify the Utah Charter School Finance Authority before the
854     authorizer takes an action described in Subsection (2)(a)(i) if the charter school is a qualifying
855     charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit
856     Enhancement Program.
857          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
858     state board shall make rules:
859          (a) specifying the timeline for remedying deficiencies under Subsection (1); and
860          (b) ensuring [the] compliance [of a charter school] with [its] the charter school's
861     approved charter agreement.
862          (6) (a) An authorizer may petition the district court where a charter school is located or
863     incorporated to appoint a receiver, and the district court may appoint a receiver if the authorizer
864     establishes that the charter school:
865          (i) is subject to closure under Section 53G-5-503; and
866          (ii) (A) has disposed, or there is a demonstrated risk that the charter school will
867     dispose, of the charter school's assets in violation of [Subsection 53G-5-403(4)] Section
868     53G-5-403; or
869          (B) cannot, or there is a demonstrated risk that the charter school will not, make
870     repayment of amounts owed to the federal government or the state.
871          (b) The court shall describe the powers and duties of the receiver in the court's
872     appointing order, and may amend the order from time to time.
873          (c) Among other duties ordered by the court, the receiver shall:
874          (i) ensure the protection of the charter school's assets;
875          (ii) preserve money owed to creditors; and
876          (iii) if requested by the authorizer, carry out charter school closure procedures
877     described in Section 53G-5-504, and state board rules, as directed by the authorizer.
878          (d) If the authorizer does not request, or the court does not appoint, a receiver:
879          (i) the authorizer may reconstitute the governing board of a charter school; or
880          (ii) if a new governing board cannot be reconstituted, the authorizer shall complete the
881     closure procedures described in Section 53G-5-504, including liquidation and assignment of
882     assets, and payment of liabilities and obligations in accordance with [Subsection
883     53G-5-504(7)] Section 53G-5-504 and state board rule.
884          (e) For a qualifying charter school with outstanding bonds issued in accordance with
885     Part 6, Charter School Credit Enhancement Program, an authorizer shall obtain the consent of
886     the Utah Charter School Finance Authority before the authorizer takes the following actions:
887          (i) petitions a district court to appoint a receiver, as described in Subsection (6)(a);
888          (ii) reconstitutes the governing board, as described in Subsection (6)(d)(i); or
889          (iii) carries out closure procedures, as described in Subsection (6)(d)(ii).
890          Section 20. Section 53G-5-502 is amended to read:
891          53G-5-502. Voluntary school improvement and transfer processes.
892          (1) As used in this section:
893          (a) "High performing charter school" means a charter school that:
894          (i) satisfies all requirements of state law and state board rules;
895          (ii) has operated for at least three years meeting the terms of the school's charter
896     agreement; and
897          (iii) is in good standing with the charter school's authorizer.
898          (b) "Low performing charter school" means a charter school that is designated a low
899     performing school, as that term is defined in Section 53E-5-301.
900          (c) "School turnaround plan" means the same as that term is defined in Section
901     53E-5-301.
902          (2) (a) Subject to Subsection (2)(b), a charter school governing board may voluntarily
903     request the charter school's authorizer to place the charter school, including a low performing
904     charter school that has a school turnaround plan, in a school improvement process.
905          (b) A charter school governing board shall provide notice and a hearing on the charter
906     school governing board's intent to make a request under Subsection (2)(a) to parents of students
907     enrolled in the charter school.
908          (3) An authorizer may grant a charter school governing board's request to be placed in
909     a school improvement process if the charter school governing board has provided notice and a
910     hearing under Subsection (2)(b).
911          (4) An authorizer that has entered into a school improvement process with a charter
912     school governing board shall:
913          (a) enter into a contract with the charter school governing board on the terms of the
914     school improvement process;
915          (b) notify the state board that the authorizer has entered into a school improvement
916     process with the charter school governing board;
917          (c) make a report to a committee of the state board regarding the school improvement
918     process; and
919          (d) notify the Utah Charter School Finance Authority that the authorizer has entered
920     into a school improvement process with the charter school governing board if the charter
921     school is a qualifying charter school with outstanding bonds issued in accordance with Part 6,
922     Charter School Credit Enhancement Program.
923          (5) Upon notification under Subsection (4)(b), and after the report described in
924     Subsection (4)(c), the state board shall notify charter schools and the school district in which
925     the charter school is located that the charter school governing board has entered into a school
926     improvement process with the charter school's authorizer.
927          (6) A high performing charter school or the school district in which the charter school
928     is located may apply to the charter school governing board to assume operation and control of
929     the charter school that has been placed in a school improvement process.
930          (7) A charter school governing board that has entered into a school improvement
931     process shall review applications submitted under Subsection (6) and submit a proposal to the
932     charter school's authorizer to:
933          (a) terminate the school's charter, notwithstanding the requirements of Section
934     53G-5-503; and
935          (b) transfer operation and control of the charter school to:
936          (i) the school district in which the charter school is located; [or]
937          (ii) [a high performing charter school.] the governing board of another charter school;
938          (iii) a private management company; or
939          (iv) the governing board of a nonprofit corporation.
940          (8) A charter school governing board that has not entered into a school improvement
941     process may voluntarily provide a proposal to the authorizer for consideration of transferring
942     operation and control of the charter school to:
943          (a) the school district in which the charter school is located;
944          (b) the governing board of another charter school;
945          (c) a private management company; or
946          (d) the governing board of a nonprofit corporation.
947          [(8)] (9) Except as provided in Subsection [(9)] (10) and subject to Subsection [(10),]
948     (11), an authorizer may:
949          (a) approve a charter school governing board's proposal under Subsection (7); or
950          (b) (i) deny a charter school governing board's proposal under Subsection (7); and
951          (ii) (A) terminate the school's charter agreement in accordance with Section
952     53G-5-503;
953          (B) allow the charter school governing board to submit a revised proposal; or
954          (C) take no action.
955          [(9)] (10) An authorizer may not take an action under Subsection [(8)] (9) for a
956     qualifying charter school with outstanding bonds issued in accordance with Part 6, Charter
957     School Credit Enhancement Program, without mutual agreement of the Utah Charter School
958     Finance Authority and the authorizer.
959          [(10)] (11) (a) An authorizer that intends to transfer operation and control of a charter
960     school as described in Subsection (7)(b) shall request approval from the state board.
961          (b) (i) The state board shall consider an authorizer's request under Subsection [(10)(a)]
962     (11)(a) within 30 days of receiving the request.
963          (ii) If the state board denies an authorizer's request under Subsection [(10)(a)] (11)(a),
964     the authorizer may not transfer operation and control of the charter school as described in
965     Subsection (7)(b).
966          (iii) If the state board does not take action on an authorizer's request under Subsection
967     [(10)(a)] (11)(a) within 30 days of receiving the request, an authorizer may proceed to transfer
968     operation and control of the charter school as described in Subsection (7)(b).
969          [(11)] (12) If operation and control of a low performing charter school that has a school
970     turnaround plan is transferred to a high performing charter school as described in Subsection
971     (7)(b), the low performing charter school shall complete the requirements of the school
972     turnaround plan and any other requirements imposed by the authorizer for school improvement.
973          Section 21. Section 53G-5-503 is amended to read:
974          53G-5-503. Termination of a charter agreement.
975          (1) Subject to the requirements of Subsection (3), a charter school authorizer may
976     terminate a school's charter agreement for any of the following reasons:
977          (a) failure of the charter school to meet the requirements stated in the charter
978     agreement;
979          (b) failure to meet generally accepted standards of fiscal management;
980          (c) (i) designation as a low performing school under Title 53E, Chapter 5, Part 3,
981     School Improvement and Leadership Development; and
982          (ii) failure to improve the school's performance under the conditions described in Title
983     53E, Chapter 5, Part 3, School Improvement and Leadership Development;
984          (d) violation of requirements under this chapter or another law; or
985          (e) other good cause shown.
986          (2) (a) The authorizer shall notify the following of the proposed termination in writing,
987     state the grounds for the termination, and stipulate that the charter school governing board may
988     request an informal hearing before the authorizer:
989          (i) the charter school governing board; and
990          (ii) if the charter school is a qualifying charter school with outstanding bonds issued in
991     accordance with Part 6, Charter School Credit Enhancement Program, the Utah Charter School
992     Finance Authority.
993          (b) Except as provided in Subsection (2)(e), the authorizer shall conduct the hearing in
994     accordance with Title 63G, Chapter 4, Administrative Procedures Act, within 30 days after
995     [receiving] the day a written request under Subsection (2)(a) is received.
996          (c) If the authorizer, by majority vote, approves a motion to terminate a charter school,
997     the charter school governing board may appeal the decision to the state board.
998          (d) (i) The state board shall hear an appeal of a termination made [pursuant to] in
999     accordance with Subsection (2)(c).
1000          (ii) The state board's action is final action subject to judicial review.
1001          (e) (i) If the authorizer proposes to terminate the charter agreement of a qualifying
1002     charter school with outstanding bonds issued in accordance with Part 6, Charter School Credit
1003     Enhancement Program, the authorizer shall conduct a hearing described in Subsection (2)(b)
1004     120 days or more after notifying the following of the proposed termination:
1005          (A) the charter school governing board of the qualifying charter school; and
1006          (B) the Utah Charter School Finance Authority.
1007          (ii) [Prior to] Before the hearing described in Subsection (2)(e)(i), the Utah Charter
1008     School Finance Authority shall meet with the authorizer to determine whether the deficiency
1009     may be remedied in lieu of termination of the qualifying charter school's charter agreement.
1010          (3) An authorizer may not terminate the charter agreement of a qualifying charter
1011     school with outstanding bonds issued in accordance with Part 6, Charter School Credit
1012     Enhancement Program, without mutual agreement of the Utah Charter School Finance
1013     Authority and the authorizer.
1014          (4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1015     the state board shall make rules that require a charter school to report any threats to the health,
1016     safety, or welfare of [its] the charter school's students to the State Charter School Board in a
1017     timely manner.
1018          (b) The rules under Subsection (4)(a) shall also require the charter school report to
1019     include what steps the charter school has taken to remedy the threat.
1020          (5) Subject to the requirements of Subsection (3), the authorizer may terminate a
1021     charter agreement immediately if good cause has been shown or if the health, safety, or welfare
1022     of the students at the charter school is threatened.
1023          (6) If a charter agreement is terminated, the following entities may apply to the charter
1024     school's authorizer to assume operation of the school:
1025          (a) the school district where the charter school is located;
1026          (b) the charter school governing board of another charter school;
1027          (c) a private management company; or
1028          (d) the governing board of a nonprofit corporation.
1029          (7) (a) If a charter agreement is terminated, a student who attended the school may
1030     apply to and shall be enrolled in another public school under the enrollment provisions [of] in
1031     accordance with Chapter 6, Part 3, School District Residency, subject to space availability.
1032          (b) Normal application deadlines shall be disregarded under Subsection (7)(a).
1033          Section 22. Section 53G-5-504 is amended to read:
1034          53G-5-504. Charter school closure.
1035          (1) As used in this section, "receiving charter school" means a charter school that an
1036     authorizer permits under Subsection (12)(a), to accept enrollment applications from students of
1037     a closing charter school.
1038          (2) If a charter school is closed for any reason, including the termination of a charter
1039     agreement in accordance with Section 53G-5-503 or the conversion of a charter school to a
1040     private school, the provisions of this section apply.
1041          (3) A decision to close a charter school is made:
1042          (a) when a charter school authorizer approves a motion to terminate described in
1043     Subsection [53G-5-503(2)(c)] 53G-5-503;
1044          (b) when the state board takes final action described in Subsection
1045     [53G-5-503(2)(d)(ii)] 53G-5-503; or
1046          (c) when a charter school provides notice to the charter school's authorizer that the
1047     charter school is relinquishing the charter school's charter.
1048          (4) (a) No later than 10 days after the day on which a decision to close a charter school
1049     is made, the charter school shall:
1050          (i) provide notice to the following, in writing, of the decision:
1051          (A) if the charter school made the decision to close, the charter school's authorizer;
1052          [(B) the State Charter School Board;]
1053          [(C)] (B) if the state board did not make the decision to close, the state board;
1054          [(D)] (C) parents of students enrolled at the charter school;
1055          [(E)] (D) the charter school's creditors;
1056          [(F)] (E) the charter school's lease holders;
1057          [(G)] (F) the charter school's bond issuers;
1058          [(H)] (G) other entities that may have a claim to the charter school's assets;
1059          [(I)] (H) the school district in which the charter school is located and other charter
1060     schools located in that school district; and
1061          [(J)] (I) any other person that the charter school determines to be appropriate; and
1062          (ii) publish notice of the decision for the school district in which the charter school is
1063     located, as a class A notice under Section 63G-30-102, for at least 30 days.
1064          (b) The notice described in Subsection (4)(a) shall include:
1065          (i) the proposed date of the charter school closure;
1066          (ii) the charter school's plans to help students identify and transition into a new school;
1067     and
1068          (iii) contact information for the charter school during the transition.
1069          (5) No later than 10 days after the day on which a decision to close a charter school is
1070     made, the closing charter school shall:
1071          (a) designate a custodian for the protection of student files and school business records;
1072          (b) designate a base of operation that will be maintained throughout the charter school
1073     closing, including:
1074          (i) an office;
1075          (ii) hours of operation;
1076          (iii) operational telephone service with voice messaging stating the hours of operation;
1077     and
1078          (iv) a designated individual to respond to questions or requests during the hours of
1079     operation;
1080          (c) assure that the charter school will maintain private insurance coverage or risk
1081     management coverage for covered claims that arise before closure, throughout the transition to
1082     closure and for a period following closure of the charter school as specified by the charter
1083     school's authorizer;
1084          (d) assure that the charter school will complete by the set deadlines for all fiscal years
1085     in which funds are received or expended by the charter school a financial audit and any other
1086     procedure required by state board rule;
1087          (e) inventory all assets of the charter school; and
1088          (f) list all creditors of the charter school and specifically identify secured creditors and
1089     assets that are security interests.
1090          (6) The closing charter school's authorizer shall oversee the closing charter school's
1091     compliance with Subsection (5).
1092          (7) (a) Unless a different order is determined by a bankruptcy court under 11 U.S.C.
1093     Sec. 1001 et seq., a closing charter school shall distribute the assets of the closing charter
1094     school in the following order:
1095          (i) return assets donated by a private donor to the private donor if:
1096          (A) the assets were donated for a specific purpose;
1097          (B) the private donor restricted use of the assets to only that specific purpose; and
1098          (C) the closing charter school has assets that have not been used for the specific
1099     purpose;
1100          (ii) distribute assets to satisfy outstanding payroll obligations for employees of the
1101     closing charter school;
1102          (iii) distribute assets to creditors of the closing charter school; and
1103          (iv) distribute assets to satisfy any outstanding liability or obligation to the state board,
1104     state, or federal government.
1105          (b) A closing charter school shall return any assets remaining, after all liabilities and
1106     obligations of the closing charter school are paid or discharged consistent with Subsection
1107     (7)(a), to the closing charter school's authorizer.
1108          (c) Upon receipt of the assets under Subsection (7)(b), the closing charter school's
1109     authorizer shall:
1110          (i) liquidate assets at fair market value; or
1111          (ii) assign the assets to another public school.
1112          (d) The closing charter school's authorizer shall oversee liquidation of assets and
1113     payment of liabilities and obligations in accordance with this section, Sections 53F-9-307 and
1114     53G-5-501, and state board rule.
1115          (8) The closing charter school shall:
1116          (a) comply with all state and federal reporting requirements; and
1117          (b) submit all documentation and complete all state and federal reports required by the
1118     closing charter school's authorizer or the state board, including documents to verify the closing
1119     charter school's compliance with procedural requirements and satisfaction of all financial
1120     issues.
1121          (9) When the closing charter school's financial affairs are closed out and dissolution is
1122     complete, the authorizer shall ensure that a final audit of the charter school is completed.
1123          (10) [On or before January 1, 2017, the] The state board shall, in accordance with Title
1124     63G, Chapter 3, Utah Administrative Rulemaking Act, and after considering suggestions from
1125     charter school authorizers, make rules that:
1126          (a) provide additional closure procedures for charter schools; and
1127          (b) establish a charter school closure process.
1128          (11) (a) Upon termination of the charter school's charter agreement:
1129          (i) notwithstanding provisions [to the contrary in] of Title 16, Chapter 6a, Part 14,
1130     Dissolution, the nonprofit corporation under which the charter school is organized and
1131     managed may be unilaterally dissolved by the authorizer; and
1132          (ii) the net assets of the charter school shall revert to the authorizer as described in
1133     Subsection (7).
1134          (b) The charter school and the authorizer shall mutually agree in writing on the
1135     effective date and time of the dissolution described in Subsection (11)(a).
1136          (c) The effective date and time of dissolution described in Subsection (11)(b) may not
1137     exceed five years after the date of the termination of the charter agreement.
1138          (12) Notwithstanding the provisions of Chapter 6, Part 5, Charter School Enrollment:
1139          (a) an authorizer may permit a specified number of students from a closing charter
1140     school to be enrolled in another charter school, if the receiving charter school:
1141          (i) (A) is authorized by the same authorizer as the closing charter school; or
1142          (B) is authorized by a different authorizer and the authorizer of the receiving charter
1143     school approves the increase in enrollment; and
1144          (ii) agrees to accept enrollment applications from students of the closing charter
1145     school;
1146          (b) a receiving charter school shall give new enrollment preference to applications
1147     from students of the closing charter school in the first school year in which the closing charter
1148     school is not operational; and
1149          (c) a receiving charter school's enrollment capacity is increased by the number of
1150     students enrolled in the receiving charter school from the closing charter school under this
1151     Subsection (12).
1152          (13) A member of the governing board or staff of the receiving charter school that is
1153     also a member of the governing board of the receiving charter school's authorizer, shall recuse
1154     [himself or herself] oneself from a decision regarding the enrollment of students from a closing
1155     charter school as described in Subsection (12).
1156          Section 23. Effective date.
1157          This bill takes effect on May 1, 2024.