BP BHEAD INT S

AN ACT Relating to charter schools; adding new sections to chapter 28A.150 RCW; adding a new section to chapter 28A.230 RCW; adding a new section to chapter 28A.405 RCW; adding a new chapter to Title 28A RCW; and creating new sections.

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

NEW SECTION. Sec. 1. SHORT TITLE. This act shall be known and may be cited as the charter school act.

NEW SECTION. Sec. 2. PURPOSE. (1) The purpose of this chapter is to enhance parent and student choices among schools and promote educational excellence through the creation of charter schools.

(2) In authorizing the creation of charter schools under this chapter, the legislature intends:

(a) To ensure that the obligation of Article IX, section 1 of the state Constitution which states "It is the paramount duty of the state to make ample provision for the education of all children residing within its borders, without distinction or preference on account of race, color, caste, or sex" extends to children who attend such schools; and

(b) To carry out the requirement of Article IX, section 2 of the state Constitution "to provide for a general and uniform system of public schools."

(3) The legislature affirms that the board of directors elected by the people in each school district has broad discretionary powers to determine the programs, activities, services, and practices that promote the education of students in the public schools and promote the effective, efficient, and safe management and operation of the school district. The legislature intends that the school district board of directors exercise the same broad discretion to make decisions affecting the approval and operation of charter schools.

(4) The policy goals for charter schools in the state of Washington include, but are not limited to, the following:

(a) Improving student learning and helping students achieve at higher standards;

(b) Providing alternative learning opportunities for students, especially students with special needs and students who are at risk of academic failure;

(c) Encouraging the use of innovative teaching methods and greater involvement of parents and the community in education;

(d) Creating new professional challenges and opportunities for principals and teachers, including the opportunity to be responsible for the learning program at the school;

(e) Establishing model practices, programs, and organizational structure that may be applied to other schools throughout the state and sharing that information with other schools, the superintendent of public instruction, and the legislature; and

(f) Establishing new forms of accountability for schools based on student performance.

NEW SECTION. Sec. 3. APPLICATION PROCESS. (1) Except as provided in subsection (2) of this section, a charter school application may be submitted to the board of directors of the school district in which the proposed charter school will be located, by the following:

(a) Nonprofit corporations or associations organized under chapter 24.03 RCW for the sole purpose of operating a charter school; or

(b) Teacher preparation programs of public colleges or universities approved under RCW 28A.305.130.

(2) Private schools operating under chapter 28A.195 RCW and organizations that exist to promote religious worship, exercise, or instruction may not apply for charter approval.

(3) Parents, school staff, teachers, businesses, labor organizations, or other community groups that want to operate a charter school are encouraged to apply, but must form a nonprofit corporation for the sole purpose of operating a charter school as required by subsection (1) of this section.

(4) A charter school application shall be in the form and shall contain all information required by the board of directors, including, but not limited to, the following:

(a) A description of the charter school's proposed educational program and a discussion of how the program will achieve the goals of section 2 of this act and the student learning goals in RCW 28A.150.210;

(b) Specific learning requirements that students are to achieve;

(c) Specific methods of how student achievement will be measured in addition to the scores on standardized tests and the state-wide assessment system;

(d) Admission policies and procedures;

(e) A proposed five-year budget;

(f) Governance, management, and financial policies and procedures;

(g) Program evaluation and financial audit procedures; and

(h) Specific evidence of involvement of parents, school staff, teachers, business, labor, and other community groups.

NEW SECTION. Sec. 4. APPROVAL PROCESS. (1) Except as provided in section 5 of this act, the board of directors shall approve or disapprove a charter school application submitted under section 3 of this act within ninety days of filing of the completed application, unless an extension of time is mutually agreed to by the applicant and the board of directors.

(2) The board of directors shall approve a charter school application if the board determines that the terms and conditions of the proposed contract provide reasonable assurance that the charter school will attain the goals of section 2 of this act.

(3) Approval shall be in the form of a written contract between the school district and the board of trustees of the charter school. The written contract constitutes a compact between the people of the school district acting through the elected board of directors and the board of trustees of the charter school to operate the school in the public interest. Except as provided in this chapter, the school district has broad authority to establish the terms and conditions of the contract. At a minimum, the contract shall include:

(a) The applicable requirements of this chapter;

(b) The charter school's educational program and how the program will achieve the goals of section 2 of this act and the student learning goals in RCW 28A.150.210 and other educational program requirements including but not limited to the length of the school day and school year, class size, and the ages or grade levels of students in each class;

(c) Specific learning requirements that students are to achieve and how the learning requirements of students who have special needs or who are at-risk of academic failure will be addressed and how the achievement of the student learning requirements will be measured in addition to the use of standardized achievement tests and the state-wide assessment system. The specific learning requirements for an individual student shall be included in a personal education plan for each student. The plan shall be reviewed and revised at least once every year;

(d) Admission policies and procedures;

(e) Governance, management, and financial policies and procedures requirements;

(f) Insurance and liability requirements that provide financial protection for the board of trustees against loss;

(g) Employee salary and compensation plans that, at a minimum, provide medical insurance benefits for all charter school employees, and personnel policies on hours and periods of employment and leave policies;

(h) The organizational chart for the school including the responsibilities and distribution of staff; and

(i) Program evaluation and financial audit requirements that shall be met at least annually.

(4) The term of the contract shall be no longer than five school years. Contracts may be renewed by the approving agency for additional periods of five years or less.

NEW SECTION. Sec. 5. CHARTER SCHOOL LIMIT. The total number of charter schools approved under section 4 of this act shall be limited to twenty-seven schools, with not more than three charter schools approved in any single educational service district. A school district shall notify the superintendent of public instruction when it receives a charter school application, when it approves a charter school pursuant to this section, and when a charter school contract expires or is terminated. Once twenty-seven charter schools are approved by school boards, the superintendent shall notify school districts. The superintendent also shall notify school districts when additional charter schools may be approved due to charter school contract terminations.

NEW SECTION. Sec. 6. CONDITIONS AND REQUIREMENTS. (1) The primary focus of charter schools shall be to meet the learning needs of students who are at-risk while providing a comprehensive program of instruction for at least one grade from kindergarten to grade twelve.

(2) Charter schools shall design their programs to be consistent with the goals in RCW 28A.150.210 and the essential academic learning requirements developed for the goals and graduation requirements established by the state board of education.

(3) A charter school shall comply with chapter 28A.155 RCW and rules relating to the education of students with disabilities.

(4) Charter schools shall annually administer the required state-wide assessments in RCW 28A.230.190 through 28A.230.240 and have students participate in the assessments developed by the commission on student learning in RCW 28A.630.885. The schools also shall comply with other applicable state-wide accountability requirements as determined by the superintendent of public instruction.

(5) Charter schools shall be nonsectarian in their programs, admissions policies, employment practices, and all other operations.

(6) Charter schools shall not charge tuition.

(7) Except as provided in this chapter, charter schools are exempt from all statutes and rules containing:

(a) Reporting requirements, unless specified in the contract with the school district;

(b) Curriculum requirements or statutes specifying what must be taught;

(d) Restrictions on how staff are allocated or specified ratios of students to teachers or the use of staff time.

(8) School boards may request waivers from the superintendent of public instruction or the state board of education on the behalf of charter schools, from other laws or rules except those governing health, safety, or civil rights. The superintendent of public instruction or the state board of education shall grant those waivers to the extent permitted by law.

(9) Charter schools shall be subject to financial audits, audit procedures, and audit requirements similar to those required of a school district.

(10) Charter schools shall report at least annually to the school district board of directors and to the parents of their students. At a minimum, this report shall include the information required in the annual performance report required in RCW 28A.320.205.

NEW SECTION. Sec. 7. ADMISSION OF STUDENTS. (1) A charter school may limit admission to students within an age group or grade level. In developing admission policies, a charter school shall place an emphasis on admitting students with special needs or who are at-risk. A charter school shall not limit admission to students on the basis of race, ethnicity, gender, religion, intellectual ability, disability, measures of achievement or aptitude, or athletic ability.

(2) A student shall not be required by a school district to attend a charter school.

NEW SECTION. Sec. 8. BOARD OF TRUSTEES. (1) Charter schools shall have a board of trustees. Bylaws containing the selection, terms, and qualifications of the board shall be established before the contract is approved by the school district board of directors.

(2) The board of trustees shall be the school's governing board, and shall consist of teachers and other persons employed in the charter school, parents of students enrolled in the charter school, and representatives of business, labor, and the community. Consistent with their contract, the board of trustees may exercise broad discretionary power for the development and implementation of programs, activities, and services for the students enrolled in the school. The board of trustees shall be liable, in accordance with applicable law, for the operation of the charter school.

(3) The board of trustees shall employ and contract with individuals who hold valid certificates to perform the particular service for which they are employed in the school as required in chapter 28A.410 RCW. The board of trustees also may employ necessary employees who are not required to hold certificates to perform other duties, and may contract for other services.

(4) The board of trustees may decide, or may choose to delegate to an officer or employee, all matters related to the operation of the school, including budgeting, personnel, curriculum, and operating procedures.

NEW SECTION. Sec. 9. FUNDING. (1) The superintendent of public instruction shall separately calculate and allocate moneys appropriated for general apportionment programs to charter schools. 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 for general apportionment programs but shall not include a small school funding factor. The school district may retain an amount not to exceed two and one-half percent of the funds under this subsection to cover administrative costs including the costs of monitoring the performance of the charter school.

(2) State funding for local enhancement funds and 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. Such funding shall be based upon state-wide average per student rates for each program.

(3) Taxes levied for maintenance and operation support of the school district under chapter 84.52 RCW shall only be allocated to a charter school as determined by the school district board of directors.

(4) The superintendent shall establish rules for the calculation and payment of funds to charter schools.

(5) The charter school boards of trustees may not levy taxes or issue bonds.

(6) Charter schools may receive funds from other governmental and private sources, excluding sectarian organizations. The charter school shall keep records of the source and amount of all funds received from other sources and those records shall be open to public inspection.

NEW SECTION. Sec. 10. TRANSPORTATION OF STUDENTS. Under the terms of the contract between the school district and the board of trustees of the charter school, the school district shall:

(1) Authorize charter school students to ride a school bus or other student transportation vehicle to and from school; or

(2) Pay the charter school a student transportation allocation as determined by the school district board of directors.

NEW SECTION. Sec. 11. TERMINATION OF CHARTER. (1) The school district board of directors may unilaterally terminate a contract during the term of the contract for any reason in subsection (2) of this section. At least sixty days before not renewing or terminating a contract, the school district board of directors shall notify the board of trustees of the school of the proposed action in writing. The notice shall state the reasons for the proposed action in reasonable detail and the school's board of trustees may request in writing an informal hearing before the school district board of directors within fourteen days of receiving notice of nonrenewal or termination of the contract. Failure by the board of trustees to make a written request for a hearing within the fourteen-day period shall be treated as acquiescence to the proposed actions. Upon receiving a timely written request for a hearing, the school district board of directors shall give reasonable notice to the school's board of trustees of the hearing date. The school district board of directors shall conduct an informal hearing before taking final action.

(2) A contract may be terminated for the following reasons:

(a) The failure to meet or exceed the learning requirements for comparable students in the school district;

(b) The failure to meet the student learning requirements specified in the contract or a significant failure to meet the requirements specified in the students' personal education plans;

(d) Violations of the law; or

(e) Other good cause shown.

NEW SECTION. Sec. 12. EDUCATIONAL EMPLOYEES LEAVE OF ABSENCES--RETIREMENT--BARGAINING. (1) The provisions governing leave from a school district to work at a charter school shall be determined by agreement between the employee and the school district and may be governed by the terms of any applicable collective bargaining agreement including provisions for maintaining coverage under school district employee insurance plans during such leave of absence.

(2) The employee shall continue to aggregate benefits and credits in the employee's retirement system account. Appropriate employee and employer contributions shall be made. The department of retirement systems may impose reasonable requirements to administer this section efficiently. The earnable compensation reportable for the purposes of retirement benefits under chapter 41.32 RCW shall not be greater than the salary that the employee would have received if an employee of the school district.

(3) Employees of the board of trustees 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 board of trustees 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. 13. INFORMATION. The superintendent of public instruction shall prepare and distribute information to the public and school district personnel on the major elements of a charter school and how a charter school may be established.

NEW SECTION. Sec. 14. The legislative budget committee shall conduct a performance audit of charter schools and shall analyze whether the charter schools created under this act have met the purpose and goals stated in section 2 of this act; complied with the terms and conditions of the contract with the school district under section 4 of this act; and met the conditions and requirements of section 6 of this act. The legislative budget committee shall submit an interim report to the appropriate committees of the legislature and shall submit a final report to the appropriate committees of the legislature by December 15, 1999. The legislative budget committee shall also include recommendations on the number of charter schools that should be established in the state, the number of years the program should continue, and recommendations on any statutory changes required to address issues related to creation of charter schools that are identified during the performance audit.

NEW SECTION. Sec. 15. A new section is added to chapter 28A.150 RCW to read as follows:

EXEMPTION FROM REPORTING REQUIREMENTS. Unless specifically required in a contract with the school district or specifically required under chapter 28A.-- RCW (sections 1 through 13 of this act), charter schools under chapter 28A.-- RCW (sections 1 through 13 of this act) are exempt from the reporting requirements of this title.

NEW SECTION. Sec. 16. A new section is added to chapter 28A.150 RCW to read as follows:

EXEMPTION FROM CLASS SIZE, STUDENT-TEACHER RATIO, PROGRAM HOUR, ONE HUNDRED EIGHTY-DAY REQUIREMENT, AND CONTACT-HOUR REQUIREMENTS. A charter school under chapter 28A.-- RCW (sections 1 through 13 of this act) are exempt from the statutory requirements of this chapter governing the length of the school year or day, school holidays, program hours, ratios of students to teachers, teacher contact time, or other statutory requirements pertaining to the school day or the number of staff or use of staff time.

NEW SECTION. Sec. 17. A new section is added to chapter 28A.230 RCW to read as follows:

EXEMPTION FROM CURRICULUM REQUIREMENTS. Except as specifically provided in chapter 28A.-- RCW (sections 1 through 13 of this act), charter schools under chapter 28A.-- RCW (sections 1 through 13 of this act) are exempt from the statutory requirements in this chapter pertaining to the instructional offerings in schools.

NEW SECTION. Sec. 18. A new section is added to chapter 28A.405 RCW to read as follows:

EXEMPTION FROM LAWS GOVERNING EMPLOYEES. Except as specifically provided in chapter 28A.-- RCW (sections 1 through 13 of this act), charter schools under chapter 28A.-- RCW (sections 1 through 13 of this act) are exempt from the statutory requirements in this chapter pertaining to the contract, salary, evaluation, hiring, or termination of employees. Charter schools are not exempt from the provisions of RCW 28A.405.470 governing the mandatory termination of certified employees for crimes against children.

NEW SECTION. Sec. 19. CAPTIONS NOT LAW. Captions used in this act do not constitute any part of the law.

NEW SECTION. Sec. 20. Sections 1 through 13 of this act shall constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 21. This 1996 act shall constitute the alternative to Initiative 177, which has been proposed to the legislature. If the secretary of state certifies Initiative 177 to the legislature, then the secretary of state is directed to place this 1996 act on the ballot in conjunction with Initiative 177, pursuant to Article II, section 1(a) of the state Constitution.