S-2245

AN ACT Relating to charter schools; adding a new chapter to Title 28A RCW; creating a new section; and declaring an emergency.

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

NEW SECTION. Sec. 1. INTENT. The legislature intends to authorize the establishment of charter schools for the purpose of providing a unique setting for learning that will improve pupil achievement and provide additional public school choices for students, parents, and teachers.

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

(1) "Applicant" means a nonprofit corporation that has submitted an application to a sponsor to obtain approval to operate a charter school. The nonprofit corporation must either be a public benefit nonprofit corporation as defined in RCW 24.03.490, or a nonprofit corporation as defined in RCW 24.03.005 that has applied for tax-exempt status under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3)). The nonprofit corporation may not be a sectarian or religious organization and must meet all of the requirements for a public benefit nonprofit corporation before receiving any funding under section 15 of this act.

(2) "Charter" means a contract between an applicant and a sponsor. 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 a public school managed by an applicant's board of directors and operating independently of any school district board under a charter approved in accordance with this chapter.

(4) "Board of directors" means the board of directors of the public benefit nonprofit corporation that manages and operates the charter school.

(5) "Sponsor" means a school district or the state board of education, whichever has approved a charter for a charter school.

NEW SECTION. Sec. 3. CHARTER SCHOOLS‑-POWERS. (1) The charter school's board of directors may hire, manage, and discharge any charter school employee in accordance with the terms of this chapter and that school's charter.

(2) The charter school's board of directors may enter into a contract with any school district, or any other public or private entity, also empowered to enter into contracts, for any and all real property, equipment, goods, supplies, and services, including educational instructional services.

(3) Charter schools may rent, lease, or own property, but may not acquire property by eminent domain. All charters and charter school contracts with other public and private entities must include provisions regarding the disposition of the property if the charter school fails to open as planned, closes, or the charter is revoked or not renewed. Charter schools may accept gifts and donations from other governmental and private entities, excluding sectarian or religious organizations. Charter schools may not accept any gifts or donations the conditions of which violate this chapter.

(4) Charter schools may not charge tuition, levy taxes, or issue bonds, however they may charge fees for optional noncredit extracurricular events.

NEW SECTION. Sec. 4. LEGAL STATUS. A charter school is a public school including one or more of grades kindergarten through twelve, operated by a public benefit nonprofit corporation, according to the terms of a renewable five-year contract granted by a sponsor.

NEW SECTION. Sec. 5. CHARTER SCHOOLS‑-EXEMPTIONS. (1) A charter school shall operate independently of any school district board, under a charter approved by a sponsor under this chapter.

(2) Charter schools are exempt from all state statutes and rules applicable to school districts and school district boards of directors except as provided in this chapter and in the school's approved charter.

(3) A charter school's board of directors may elect to comply with one or more provisions of the statutes or rules that are applicable to school districts and school district board of directors.

(4) All approved charter schools shall:

(a) Comply with state and federal health, safety, and civil rights laws applicable to school districts;

(b) Meet or exceed the student performance and assessment standards as established for students in other public schools, including the essential academic learning requirements and performance standards developed under a performance-based education system according to RCW 28A.630.885;

(c) Participate in nationally normed standardized achievement tests as required in RCW 28A.230.190, 28A.230.230, and 28A.230.240;

(d) Employ certificated instructional staff, however charter schools may hire noncertificated instructional staff with money received from nonstate sources;

(e) Comply with the employee record check requirements in RCW 28A.400.303;

(f) Be subject to the same financial and audit requirements as a school district;

(g) Comply with the annual performance report under RCW 28A.320.205;

(h) Report at least annually to its sponsor and to parents of children enrolled at the charter school on progress toward the student performance goals specified in the charter; and

(i) Comply with the open public meetings act in chapter 42.30 RCW.

NEW SECTION. Sec. 6. ADMISSION REQUIREMENTS. (1) A charter school must enroll all students who submit a timely application. If capacity is insufficient to enroll all students who submit a timely application, the charter school must give enrollment priority to students who reside within the school district boundaries in which the charter school is physically located. Priority also must be given to siblings of students who are currently enrolled in the school. Students must be selected through an equitable selection process, such as a lottery, to fill any remaining spaces.

(2) A charter school may not limit admission based on race, religion, ethnicity, national origin, gender, income level, intellectual ability, disabling condition, proficiency in the English language, or athletic ability. A charter school may limit admission to students within a given age group or grade level.

NEW SECTION. Sec. 7. CHARTER APPLICATION‑-PROCESS. (1) An applicant may apply to a sponsor to establish a charter school as provided in this section.

(2) An applicant for a charter school must submit its application to the local school district board of directors of the district in which the proposed school is to be located before the applicant may submit an application to another sponsor.

(3) The local school district board of directors must hold a public hearing in the school district on the application within sixty days of receipt of the application. The school board must either accept or reject the application within thirty days after the hearing. The thirty-day deadline for acceptance or rejection of the charter school application may be extended for an additional thirty days if both parties agree in writing.

(4) If the local school board rejects the application, the school board must notify the applicant in writing of the reasons for the rejection. The applicant may submit a revised application for the school board's reconsideration. The school board may provide technical assistance to improve the application. If the school board rejects the application after submission of a revised application, the school board must notify the applicant in writing of the reasons for the rejection.

(5) If the school board rejects the application, the applicant may submit an application for a charter school to another sponsor or appeal the local school board's decision to the superintendent of public instruction. The alternate sponsor must comply with the procedures specified in subsections (1) through (4) of this section for consideration of the charter application. The alternative sponsor is not bound by the local school board's findings or decision to deny the application.

NEW SECTION. Sec. 8. APPLICATION REQUIREMENTS. The charter school application is a proposed contract and must include:

(1) The identification and description of the nonprofit corporation submitting the application, including the names and descriptions of the individuals who will operate the school;

(2) The nonprofit corporation's articles of incorporation, bylaws, and most recent financial statement and balance sheet;

(3) A mission statement for the proposed school, consistent with the description of legislative intent in this chapter;

(4) A description of the school's educational program, including curriculum and instructional strategies;

(5) A description of the school's admissions policy and marketing program, including deadlines for applications or admission;

(6) A description of student performance standards, which must meet those determined under RCW 28A.630.885(3)(b), and be measured according to the assessment system determined under RCW 28A.630.885(3)(b);

(7) A description of the plan for evaluating student performance and the procedures for taking corrective action in the event that student performance at the charter school falls below standards established in its charter;

(8) A description of school performance standards, including measures of the value added by the proposed educational program, which must meet those determined under any state-wide accountability system adopted by the legislature under RCW 28A.630.885(3)(h)(i);

(9) A description of the proposed five-year budget of projected revenues and expenditures, a plan for starting the school, and a description of major contracts planned for equipment and services, leases, improvements, purchases of real property, and insurance;

(10) A description of the proposed financial management procedures, including annual audits of the school's financial and administrative operations, which shall meet or exceed generally accepted standards of management and public accounting;

(11) An assessment of the school's potential legal liability and a description of the types and limits of insurance coverage the nonprofit corporation plans to obtain that are adequate. For purposes of this subsection, a liability policy of five hundred thousand dollars is adequate;

(12) A description of the procedures to discipline and dismiss students; and

(13) A description of procedures to assure the health and safety of students, employees, and guests of the school and to comply with applicable federal and state health and safety laws and regulations.

NEW SECTION. Sec. 9. APPROVAL CRITERIA. Charter school applications shall be approved if, and only if, after the exercise of due diligence and good faith:

(1) The public benefit nonprofit corporation and the individuals it proposes to manage the school are reasonably qualified to operate a charter school and implement the proposed educational program;

(2) The mission statement is consistent with the description of legislative intent and restrictions on charter school operations in this chapter;

(3) The school's proposed educational program describes student performance standards that meet those determined under RCW 28A.630.885(3)(b) and are measured according to the assessment system determined under RCW 28A.630.885(3)(b);

(4) The application describes a plan for evaluating pupil performance and procedures for taking corrective action in the event that pupil performance at the charter school falls below standards established in its charter;

(5) The application describes school performance standards, which must meet those determined under any state-wide accountability system adopted by the legislature pursuant to RCW 28A.630.885(3)(h)(i);

(6) The school's educational program, including curriculum and instructional strategies, has the potential to improve student performance as measured under section 8(8) of this act;

(7) The school's admissions policy and marketing program is consistent with state and federal law;

(8) The plan for the school is based on a review of the proposed five-year budget of projected revenues and expenditures, the plan for starting the school, and the major contracts planned for equipment and services, leases, improvements, purchases of real property, and insurance;

(9) The school's financial and administrative operations, including its annual audits, meet or exceed generally accepted standards of accounting and management;

(10) The assessment of the school's potential legal liability, and the types and limits of insurance coverage the school plans to obtain, are adequate. For purposes of this subsection, a liability policy of five hundred thousand dollars is adequate;

(11) The procedures the school plans to follow to discipline and dismiss students are reasonable;

(12) The procedures the school plans to follow to assure the health and safety of students, employees, and guests of the school comply with applicable state and federal health and safety laws and regulations;

(13) The applicant has met all the requirements for a public benefit nonprofit corporation as defined in RCW 24.03.490. An applicant must be a public benefit nonprofit corporation before receiving any funding under section 15 of this act; and

(14) Applicants proposing the conversion of a public school currently operated by a school district to charter school status provide adequate evidence that the proposed plan received the approval of fifty-one percent of the school's teachers. In addition, the application must be supported by fifty-one percent of the custodial parents or legal guardians of students enrolled in that school.

NEW SECTION. Sec. 10. APPEAL TO THE SUPERINTENDENT OF PUBLIC INSTRUCTION. If a sponsor rejects a charter application, the applicant may petition for appeal within thirty days to the superintendent of public instruction. The superintendent of public instruction may adopt reasonable procedures for handling appeals. The superintendent of public instruction shall, within thirty days of receipt of the appeal, review and make a determination on the appeal of a charter school applicant whose application was denied. Decisions of the superintendent of public instruction shall be in writing and shall address the approval criteria in section 9 of this act. The superintendent of public instruction may work with the sponsor and the applicant to reach an agreement and may provide assistance to the applicant to improve the application.

NEW SECTION. Sec. 11. APPEAL TO SUPERIOR COURT. Any superintendent's decision denying the application may be appealed to a superior court and reviewed to determine whether the superintendent's decision is supported by the facts. Decisions unsupported by the facts shall be remanded to the superintendent of public instruction with orders to approve the charter application.

NEW SECTION. Sec. 12. STUDY OF APPEALS PROCESS. The Washington institute of public policy shall study the implementation and effectiveness of the appeals process established in sections 10 and 11 of this act. The institute shall collect information on how many charter applications are filed, how many are denied, and how many are granted or denied on appeal. The institute shall make recommendations to the legislature about whether the legislature should create a separate chartering authority within the state and other improvements that could be made to the application and approval process. A report of the study is due to the legislature by September 1, 1999.

NEW SECTION. Sec. 13. CHARTER AGREEMENT‑-AMENDMENT. (1) A charter application approved by a sponsor with any changes made during the appeal process, constitutes a charter.

(2) A charter may be amended during its term at the request of the charter school board of directors and on the approval of the sponsor.

NEW SECTION. Sec. 14. CHARTER RENEWAL AND REVOCATION. (1) 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 three years of operation, the charter school may apply to the sponsor for renewal. A request for renewal must be submitted no later than six months before the expiration of the charter.

(2) A charter school renewal application must include:

(a) A report on the progress of the charter school in achieving the goals, student performance standards, and other terms of the charter; and

(b) A financial statement that discloses the costs of administration, instruction, and other expenditure objects and activities of the charter school.

(3) The sponsor may reject the application for renewal if any of the following occurred:

(a) The charter school materially violated its contract with the sponsor, as set forth in the charter;

(b) The students enrolled in the charter school failed to meet student performance standards identified in the charter;

(d) The charter school violated provisions in law that have not been waived in accordance with this chapter.

(4) A sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school within one month of the request for renewal to allow the charter school an opportunity to correct identified deficiencies in its operation. At the request of the board of directors of the charter school, the sponsor shall review its decision for nonrenewal after the charter school has corrected any identified deficiencies.

(5) The sponsor may revoke a previously approved charter before the expiration of the term of the charter, and before application for renewal, for any of the reasons specified in subsection (3) of this section. Except in cases of emergency where the health and safety of children are at risk, a charter may not be revoked unless the sponsor first provides written notice of the specific violations alleged, a public hearing, and a reasonable opportunity for the charter school to correct the identified areas of concern. The sponsor of a charter school shall provide for an appeal process upon a determination by the sponsor that grounds exist to revoke a charter.

NEW SECTION. Sec. 15. FUNDING. (1) State funding to charter schools for students shall be determined in accordance with applicable statutes and rules that apply to school districts.

(2) For each annual full-time equivalent student enrolled in a charter school, a charter school is entitled to an amount equal to one hundred percent of 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 less administrative fees authorized under section 16 of this act.

NEW SECTION. Sec. 16. ADMINISTRATION FEE. To offset costs of oversight and administering the charter, a sponsor may retain up to two percent of state funding and local excess levy funding that is being driven to the charter school.

NEW SECTION. Sec. 17. CHARTER SCHOOL ASSISTANCE ACCOUNT. The charter school assistance account is created in the custody of the state treasurer. All receipts from appropriations shall be deposited into the account. Expenditures from the account may be used only to provide financial grants to approved charter schools for start-up costs. Charter schools may receive up to two hundred fifty dollars per student for start-up costs. Only the superintendent of public instruction or the superintendent's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures. Start-up moneys shall be distributed to schools with approved charters on a first-come, first-served basis.

NEW SECTION. Sec. 18. RULES‑-GRANTS. The office of the superintendent of public instruction shall adopt rules to implement section 17 of this act.

If an applicant for a charter school receives a grant under section 17 of this act and fails to begin operating a charter school within the next eighteen months, the applicant must immediately reimburse the office of the superintendent of public instruction for the amount of the grant.

NEW SECTION. Sec. 19. CONVERSION SCHOOLS. A public school currently operated by a school district may apply for conversion to a public charter school if the conversion to a charter school is supported by fifty-one percent of the custodial parents or legal guardians of students enrolled in that school and fifty-one percent of the certificated employees at the school. Evidence of the results must be attached to the application. Teachers who do not want to remain employed at the charter school may be reassigned to another school within the district without any loss of benefits or status. If a parent does not want his or her child to attend the charter school, the child may attend another school within the district.

A public school that has converted to a charter school is entitled to continue to use its current facility and related school property as long as the applicant agrees in its charter to insure and maintain the facility and property in a reasonable manner.

NEW SECTION. Sec. 20. LEAVES OF ABSENCE. 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 request. 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. The leave shall be granted for up to three years. If the employee returns to the school district within the three-year period, the employee shall be hired before the district hires anyone else with fewer years of service, with respect to any position for which the returning employee is certificated or otherwise qualified.

NEW SECTION. Sec. 21. CAPS ON CHARTER SCHOOLS. (1) Until June 1, 2000, no more than a total of five percent of the annual average full-time equivalent students eligible for enrollment in the school district in which the charter school is located may be enrolled in a charter school or schools in the district.

(2) Charter schools with fewer than fifteen students may not receive state funding.

(3) The cap on enrollments in the charter school shall not apply to public schools that convert to charter schools under section 19 of this act.

NEW SECTION. Sec. 22. RIGHTS NOT LIMITED. This chapter does not limit in any way the rights of parents to educate their children at home or in approved private schools.

NEW SECTION. Sec. 23. CAPTIONS NOT LAW. Captions used in this chapter do not constitute any part of the law.

NEW SECTION. Sec. 24. Sections 1 through 11 and 13 through 23 of this act constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 25. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

NEW SECTION. Sec. 26. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.