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AN ACT Relating to charter schools; adding a new section to chapter 28A.150 RCW; adding a new section to chapter 28A.155 RCW; adding a new section to chapter 28A.165 RCW; adding a new section to chapter 28A.175 RCW; adding a new section to chapter 28A.180 RCW; adding a new section to chapter 28A.185 RCW; adding a new section to chapter 28A.210 RCW; adding a new section to chapter 28A.220 RCW; adding a new section to chapter 28A.225 RCW; adding a new section to chapter 28A.230 RCW; adding a new section to chapter 28A.235 RCW; adding a new section to chapter 28A.300 RCW; adding a new section to chapter 28A.305 RCW; adding a new section to chapter 28A.320 RCW; adding a new section to chapter 28A.330 RCW; adding a new section to chapter 28A.400 RCW; adding a new section to chapter 28A.405 RCW; adding a new section to chapter 28A.410 RCW; adding a new section to chapter 28A.600 RCW; adding a new section to chapter 28A.605 RCW; adding a new section to chapter 28A.640 RCW; and adding a new chapter to Title 28A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. PURPOSE. (1) Charter schools are independent public schools that may be established pursuant to this chapter to: Provide a learning environment that will improve pupil achievement; provide additional academic choices for parents and pupils; and expand opportunities for principals, teachers, and other educational staff in public schools. Charter schools may consist of new schools or all or any portion of an existing school.

(2) Charter schools shall comply with all provisions of this chapter in order to receive state funding as prescribed in section 6 of this act.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Applicant" means an individual, organization, or public entity as identified in section 3(2) of this act that has submitted an application to a sponsor to obtain approval to operate a charter school.

(2) "Charter" means an agreement between a sponsor and the applicant. The charter establishes, in accordance with this chapter, the terms and conditions for the management, operation, and educational program of the charter school.

(3) "Charter school" means an independent public school that has been approved to operate as a charter school in accordance with this chapter.

(4) "Educational provider" means an individual or organization that has a contract with a governing council or with an applicant to provide educational services in a charter school.

(5) "Governing council" means a council created in accordance with the school's charter that is responsible for the policy and operational decisions of the charter school.

(6) "Sponsor" means a school district or the state board for charter schools, whichever is applicable, that has approved a charter for a charter school.

NEW SECTION. Sec. 3. APPLICATION AND RENEWAL PROCESS. (1) An applicant seeking to establish a charter school shall submit a written application to the school district in which it is located as prescribed in subsection (3) of this section. The application shall include:

(a) A mission statement for the charter school;

(b) A description of the charter school's legal standing, organizational structure, bylaws, and governing body;

(d) The academic standards that will be expected of students;

(e) The criteria and assessments that will be used to measure student progress;

(f) How students will be transported to school;

(g) A financial plan for the first three years of operation and a description of its financial system for payroll, benefits, and taxes;

(h) A description of the charter school's personnel and compensation policies, including who is responsible for hiring, evaluating, renewing, and discharging staff;

(i) The name of the charter school's applicant or applicants and educational provider or providers, if different from the applicant;

(j) A description of the grades being served; and

(k) An outline of criteria designed to measure the effectiveness of the school.

(2) Applicants to establish a charter school may include existing public schools, nonprofit corporations or cooperatives, public colleges and universities, other public bodies, private persons, and private organizations. An existing public school may apply to become a charter school if at least fifty percent of the full-time teachers employed in the school and fifty percent of parents of students attending the school agree to submit an application.

(3) An applicant for a charter school shall submit its application to the school district board of directors of the school district in which it will be located, which shall either accept or reject sponsorship of the charter school within sixty calendar days of receipt of the application. The time limit in this subsection may be extended with the mutual consent of the applicant and the school board. If the school board rejects the application, the school board shall notify the applicant in writing of the reasons for the rejection. The applicant may request, and the school board may provide, technical assistance to improve the application. An applicant may submit a revised application for reconsideration. If an application is rejected by a school district board of directors, it may be submitted to the state board for charter schools for sponsorship after July 1, 1997. The state board for charter schools shall approve the application if the application meets the requirements of this chapter.

(4) A school district board of directors has no legal authority over or responsibility for a charter school sponsored by the state board for charter schools.

(5) The charter of a charter school shall ensure the following:

(a) Compliance with health, safety, and civil rights laws and rules to the extent required of private schools in chapter 28A.195 RCW;

(b) That it is nonsectarian in its programs, admission policies, employment practices, and in all other operations;

(c) That it provides a comprehensive program of instruction for at least a kindergarten program or any grade between grades one and twelve, except that a school may offer this curriculum with an emphasis on a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts, performance arts, or foreign language;

(d) That it participates in the nationally normed standardized achievement tests as required in RCW 28A.230.190, 28A.230.230, and 28A.230.240;

(e) That it complies with the annual school performance report in RCW 28A.320.205;

(f) That, except as provided in this chapter and in the school's charter, it is exempt from all statutes and rules relating to schools and school districts;

(g) That it is subject to the same financial and audit requirements as a school district. A school's charter may include exceptions to the requirements of this subsection (5) that are necessary as determined by the sponsor of the charter school. The superintendent of public instruction, the state auditor, and the legislative budget committee may conduct financial, program, or compliance audits;

(h) That it complies with all state and federal laws relating to the education of children with disabilities;

(i) That it provides for a governing council that is responsible for the policy and operational decisions of the charter school. The governing council, or its designee, may hire and discharge the principal, teachers, and other employees and enter into contracts for educational and other services;

(j) That the charter school complies with the employee record check requirements in RCW 28A.400.303;

(k) That teachers employed by the charter school are certificated in accordance with chapter 28A.410 RCW;

(l) That the charter school has adequate insurance; and

(m) That the school complies with the open public meetings act in chapter 42.30 RCW and public disclosure requirements in chapter 42.17 RCW.

(6) The charter of a charter school shall include a description of the charter school's personnel policies, personnel qualifications, any contracts with educational providers, method of school governance, and the specific role and duties of the sponsor of the charter school.

(7) The charter also shall include the academic standards that will be expected of students and the criteria and assessments that will be used to measure student progress. The academic standards and assessments shall be at least as rigorous as the academic standards required by law for public school students. The charter shall require that the school report to the sponsor once a year regarding the academic achievement of the school's students, including the results of the assessments measuring student progress.

(8) The charter of a charter school may be amended at the request of the governing body of the charter school and on the approval of the sponsor.

(9) Charter schools or their educational providers shall be legal entities that may contract, sue, and be sued.

(10) An approved plan to establish a charter school is effective for five years from the first day of operation. At the conclusion of the first four years of operation, the charter school may apply for renewal. The sponsor may deny the request for renewal if, in its judgment, the charter school:

(a) Materially violates provisions contained in this chapter;

(b) Fails to meet or pursue the educational objectives in the charter;

(d) Violates provisions in law that have not been waived by the sponsor.

A sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school at least twelve months before the expiration of the approved plan to allow the charter school an opportunity to apply to another sponsor to transfer the operation of the charter school. If the operation of the charter school is transferred to another sponsor, the five-year period shall be repeated.

In addition, the sponsor may revoke a charter after two years if the academic achievement of students is significantly below the academic achievement of comparable students in the school district. A sponsor also may immediately revoke a charter at any time if the charter school breaches one or more provisions of its charter, becomes financially insolvent, or violates state law.

The sponsor of a charter school shall establish an appeal process upon a determination by the sponsor that grounds exist to revoke a charter.

(11) A charter school that is sponsored by the state board for charter schools may not be located on the property of a school district unless the school district board of directors grants this authority.

(12) Charter schools may provide student transportation services through a cooperative agreement with a school district or through private contracts.

(13) School districts shall not take unlawful reprisal against an employee of the school district within the district because the employee is directly or indirectly involved in an application to establish a charter school.

(14) Charter schools may rent, lease, or own property. However, they may not acquire property by eminent domain.

(15) A charter school sponsor and its employees are not liable for any acts or omissions of a charter school, including acts or omissions related to the application submitted by the charter school, the charter of the charter school, the operation of the charter school, and the performance of the charter school.

(16) Members, officers, and employees of the applicant or educational provider are immune from personal liability for all acts done and actions taken in good faith within the scope of their authority.

NEW SECTION. Sec. 4. STATE BOARD FOR CHARTER SCHOOLS‑-MEMBERSHIP. (1) The state board for charter schools is established. The board shall consist of seven members. Members shall include:

(a) Two members appointed by the speaker of the house of representatives and two members appointed by the president of the senate. Appointments may be legislators or nonlegislators; and

(b) Three members appointed by the governor who shall not be in government service.

(2) Terms shall be four years. However, all members shall serve at the pleasure of their appointing official. Vacancies shall be filled by the appointing official for the remainder of the unexpired term.

(3) All appointees shall have indicated their support for charter schools.

(4) The state board for charter schools shall annually elect a president and such other officers as it deems necessary from among its membership.

(5) Nonlegislative members of the state board for charter schools are not eligible to receive compensation but are eligible for reimbursement of expenses under RCW 43.03.050 and 43.03.060. Legislative members of the state board for charter schools are not eligible to receive compensation but are eligible for reimbursement of expenses under RCW 44.04.120.

(6) The state board for charter schools shall:

(a) Exercise general supervision over charter schools sponsored by the state board for charter schools and recommend legislation pertaining to charter schools to the legislature;

(b) Grant charter status to qualified applicants for charter schools pursuant to section 3 of this act;

(d) Delegate to the superintendent of public instruction the execution of board policies; and

(e) Prepare a budget for expenditures necessary for the proper maintenance of the board and the accomplishment of its purpose.

(7) The state board for charter schools may enter into contracts and appoint and employ staff. The superintendent of public instruction shall serve as the fiscal agent for the board.

NEW SECTION. Sec. 5. ADMISSION REQUIREMENTS. (1) A charter school shall enroll all eligible students who submit a timely application. A charter school that is sponsored by a school district board of directors shall give enrollment preference to eligible students who reside within the boundaries of the school district and neighborhood where the charter school is physically located. Priority also shall be given to siblings of students who are currently enrolled in the school. If capacity is insufficient to enroll all students who submit a timely application, the charter school shall select students through an equitable selection process such as a lottery.

(2) Except as provided in subsection (3) of this section, a charter school shall not limit admission based on race, ethnicity, national origin, gender, income level, disabling condition, proficiency in the English language, or athletic ability.

(3) A charter school may limit admission to students within a given age group or grade level.

(4) A charter school shall admit students who reside in the attendance area of a school or who reside in a school district that is a party to an agreement with the United States department of education office for civil rights directed toward remediating alleged or proven racial discrimination unless notice is received from the resident school that the admission would violate the agreement. If a charter school admits a student after notice is received that the admission would constitute such a violation, the charter school may not include in its student count the students wrongfully admitted.

(5) A student may not be required by a school district to attend a charter school.

(6) Charter schools shall be considered public schools for purposes of chapter 28A.225 RCW (compulsory school attendance), and shall comply with the reporting and other provisions of this chapter.

NEW SECTION. Sec. 6. FUNDING. (1) The superintendent of public instruction shall separately calculate and allocate to charter schools moneys appropriated for basic education under RCW 28A.150.260. The amount of state funding for charter schools shall be determined by the number of full-time equivalent students enrolled in the school multiplied by the estimated state-wide annual average per full-time equivalent student allocation under RCW 28A.150.260 and applicable rules.

(2) State funding to charter schools for students who are eligible for special education under chapter 28A.155 RCW; the learning assistance program under chapter 28A.165 RCW; and the transitional bilingual instruction program under chapter 28A.180 RCW shall be determined in accordance with applicable statutes and rules that apply to school districts.

(3) State funding for the transportation of students who are transported shall be based on the average full-time equivalent student transportation allocation for transported students in the district in which the school is located or on the allocation formula used by school districts.

(4) For each annual full-time equivalent student enrolled in a charter school, the charter schools shall be entitled to an amount equal to the maintenance and operation excess tax levy rate per annual average full-time equivalent student of the district in which each full-time equivalent student who attends the charter school resides. These funds shall be paid to the charter school by the school district in which the student resides.

(5) The superintendent of public instruction shall establish rules for the calculation and payment of state and school district funds to charter schools.

(6) On or before October 1st of each year, the superintendent of public instruction shall transmit to charter schools one-third of the total state amount to be apportioned during the fiscal year. However, for the initial year of operation of a new charter school, these funds shall be transmitted to the charter school on or before August 15th based on the projected enrollment of the school. The remaining funds shall be apportioned in equal installments, adjusted for any changes in enrollment and other factors, between November and July by the 15th of each month.

(7) Charter schools are eligible to apply for education grant programs and special education safety net funding.

(8) Charter schools may receive funds from other governmental and private sources, excluding sectarian organizations.

(9) Charter schools shall not charge tuition, levy taxes, or issue bonds.

NEW SECTION. Sec. 7. EDUCATIONAL EMPLOYEES LEAVE OF ABSENCES‑-RETIREMENT‑-BARGAINING. (1) If a school district employee makes a written request for an extended leave of absence to work at a charter school, the school district shall grant the leave. The school district may require that the request for a leave be made up to ninety days before the employee would otherwise have to report for duty. If the employee returns to the school district, the employee shall receive first consideration for rehire.

(2) During a leave, the employee may continue to aggregate benefits and credits in the employee's retirement system account if appropriate employee and employer contributions are made. The department of retirement systems may impose reasonable requirements to administer this section efficiently.

(3) Employees of the governing council of the charter school may, if otherwise eligible, organize under chapters 41.59 and 41.56 RCW and comply with the provisions of these chapters. The governing council of the school is a public employer, for the purposes of chapters 41.59 and 41.56 RCW, upon formation of one or more bargaining units at the school. Bargaining units at the school shall be separate from any other units.

NEW SECTION. Sec. 8. VACANT BUILDINGS. The superintendent of public instruction, in conjunction with the department of general administration, shall annually publish a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this state or by school districts and that may be suitable for the operation of a charter school. The superintendent of public instruction shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building, and the name of the owner of the building. This section does not require the owner of a building on the list to sell or lease the building or a portion of the building to a charter school or to any other school or to any other prospective buyer or tenant.

NEW SECTION. Sec. 9. CAPTIONS NOT LAW. Captions used in this chapter do not constitute any part of the law.

NEW SECTION. Sec. 10. A new section is added to chapter 28A.150 RCW to read as follows: