2295-S2 AMH CHAS H5180.1

2SHB 2295 - H AMD 1062

By Representative Chase

FAILED 03/10/2004

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. INTENT. The legislature intends to authorize the establishment of public charter schools within the general and uniform system of public schools for the exclusive purpose of providing more high-quality learning environments to assist historically underserved populations of students in meeting the state's academic standards. The legislature intends for charter schools to function as an integral element of the public school system maintained at public expense, free from discrimination, and open to all students in the state, and to be subject to greater academic standards and performance outcomes than other public schools. The legislature intends to ensure accountability of charter schools through the use of performance audits and a comprehensive study of charter schools, and to use the information generated to demonstrate how charter schools can contribute to raising student academic achievement.

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

(1) "Applicant" means a nonprofit corporation that has submitted an application to a sponsor. The nonprofit corporation must be either 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 12 of this act.

(2) "Charter school management team" means the management team appointed or contractually engaged by the nonprofit applicant to manage and operate the charter school.

(3) "Charter" means a one-year 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.

(4) "Charter school" means a public school managed by a nonprofit corporation and operating according to the terms of a charter approved under this chapter.

(5) "Historically underserved populations of students" includes students with limited English proficiency; students with special needs, including students with disabilities; and economically disadvantaged students, including students who qualify for free and reduced priced meals.

(6) "New charter school" means any charter school created under this chapter.

(7) "Sponsor" means the board of directors of the school district in which the proposed charter school will be located.

NEW SECTION. Sec. 3. CHARTER SCHOOLS--POWERS. (1) To carry out its duty to manage and operate the charter school, the charter school management team may:

(a) Hire, manage, and discharge any charter school employee in accordance with the terms of collective bargaining agreements in the district;

(b) 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; however, this authority does not permit assigning, delegating, or contracting out the administration and management of a charter school to a for-profit entity;

(d) Accept and administer for the benefit of the charter school and its students, gifts, grants, 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.

(2) A charter school may not charge tuition, levy taxes, or issue tax-backed bonds, however it may charge fees for optional noncredit extracurricular events.

(3) A charter school sponsor is not liable for acts or omissions of a charter school or its charter school management team, including but not limited to acts or omissions related to the application, the charter, the operation, the performance, and the closure of the charter school.

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 management team selected by the board of directors of the nonprofit applicant operating under the sponsorship and supervision of an elected public school board of directors, according to the terms of a renewable one-year contract granted by a sponsor. A charter school must allow students who are receiving home-based instruction under chapter 28A.200 RCW to participate in its programs on a part-time basis.

NEW SECTION. Sec. 5. CHARTER SCHOOLS--EXEMPTIONS. (1) A charter school shall operate according to the terms of a charter approved by a sponsor.

(2) Charter schools must adhere to all state statutes and rules applicable to school districts and school district boards of directors, except when exempted by negotiated waivers.

(3) A charter school's management team shall implement a quality management system and conduct annual self-assessments.

(4) Each approved charter school shall conduct annual self-assessments of its quality management program.

(5) A member of a board of directors of the nonprofit applicant of a charter school is a board member of a school district for the purposes of public disclosure requirements and must comply with the reporting requirements in RCW 42.17.240.

NEW SECTION. Sec. 6. ADMISSION REQUIREMENTS. (1) To effectuate the primary purpose for which the legislature established charter schools, a charter school must enroll historically underserved populations of students. Consistent with the legislative intent of this chapter, a charter school shall conduct timely outreach and marketing efforts to historically underserved populations of students in the school district in which the charter school will be located.

(2) A new charter school must enroll all students who submit a timely application if capacity is sufficient. If capacity is insufficient to enroll all students who apply, students must be selected to fill any remaining spaces only through an equitable selection process, such as a lottery. Siblings of enrolled students must be given priority in enrollment.

NEW SECTION. Sec. 7. CHARTER APPLICATION--CHARTERING PROCESS. (1) An applicant may apply to a sponsor to establish a charter school under this section. An application may not be submitted earlier than eighteen months before, nor later than four months before, the proposed date of opening the school.

(2) The sponsoring public school board shall establish guidelines for the timely receipt and approval of applications to facilitate the efficient implementation of this act. Guidelines established under this subsection shall reflect efficient processes for the expeditious and orderly start-up of charter schools in a timely manner for the purpose of serving historically underserved populations of students.

(3) An application for a charter school must be submitted to the publicly elected board of directors of the school district in which the proposed charter school will be located, allowing for the board's consideration of the application in accordance with subsections (4) and (5) of this section. A copy of each application submitted to a sponsor also must be provided to the superintendent of public instruction.

(4) The school district board of directors must decide, within forty-five days of receipt of the application, whether to hold a public hearing in the school district to take public comment on the application and, if a hearing is to be held, must schedule it within seventy-five days of receipt of the application. If the school board intends to accept the application, one or more public hearings must be held before granting a charter; however a school board is not required to hold a public hearing before rejecting an application. The school board must either accept or reject the application within one hundred five days after receipt of the application. The one hundred five-day deadline for accepting or rejecting the charter school application may be extended for an additional thirty days if both parties agree in writing.

(5) If the school board does not hold a public hearing or rejects the application after holding one or more public hearings, the school board must notify the applicant in writing of the reasons for that decision. The applicant may submit a revised application for the school board's reconsideration and the school board may provide assistance to improve the application. If the school board rejects the application after a revised application is submitted, the school board must notify the applicant in writing of the reasons for the rejection.

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, descriptions, curriculum vitae, and qualifications of the individuals who will operate the school, all of which are subject to verification and review;

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

(3) A mission statement for the proposed charter school, consistent with the description of legislative intent in this chapter, declaring the proposed charter school's primary purpose is to provide high-quality learning environments to assist historically underserved populations of students in meeting the state's academic standards;

(4) A description of the school's educational program, curriculum, and instructional strategies, including but not limited to how the charter school will assist its students in meeting the state's academic standards;

(5) A description of the school's admissions policy and marketing program, and its deadlines for applications and admissions, including its program for community outreach to families of historically underserved populations of students;

(6) A description of the school's student performance standards and requirements that must exceed those determined under chapter 28A.655 RCW, and be measured according to the assessment system determined under chapter 28A.655 RCW;

(7) A description of the school's plan to evaluate student performance and the procedures for taking corrective action if student performance at the charter school falls below standards established in its charter;

(8) A description of the financial plan for the school. The plan shall include: (a) A proposed one-year budget of projected revenues and expenditures; (b) a plan for starting the school; (c) a one-year facilities plan; (d) evidence supporting student enrollment projections of at least twenty students; and (e) a description of major contracts planned for administration, management, equipment, and services, including consulting services, leases, improvements, real property purchases, and insurance;

(9) A description of the proposed financial management procedures and administrative operations, which shall meet or exceed generally accepted standards of management and public accounting;

(10) 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. A liability insurance policy, negotiated with the school board, up to fifty million dollars is required;

(11) A description of the procedures to discipline, suspend, and expel students;

(12) 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;

(13) A description of the school's program for parent involvement in the charter school;

(14) Documentation sufficient to demonstrate that the charter school will have the liquid assets available to operate the school on an ongoing and sound financial basis;

(15) Supporting documentation for any additional requirements that are appropriate and reasonably related to operating the charter school that a public school board sponsor may impose as a condition of approving the charter;

(16) A description of the quality management plan for the school, including its specific components; and

(17) A description of the academic plan.

NEW SECTION. Sec. 9. APPROVAL CRITERIA. A sponsoring public school board may approve an application for a charter school, if in the sponsor's reasonable judgment, after exercising due diligence and good faith, the sponsor finds:

(1) The applicant is an eligible public benefit nonprofit corporation and the individuals it proposes to manage and operate the school are qualified to operate a charter school and implement the proposed academic plan that is free from religious or sectarian influence;

(2) The public benefit nonprofit corporation has been approved or conditionally approved by the internal revenue service for tax exempt status under section 501(c)(3) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3));

(3) The mission statement is consistent with the description of legislative intent and restrictions on charter school operations in this chapter. The sponsor must make a finding of whether or not the charter school's primary purpose is to serve historically underserved populations of students;

(4) The school's educational program, including its curriculum and instructional strategies, is likely to assist its students, including its historically underserved populations of students, in meeting the state's academic standards;

(5) The school's admissions policy and marketing program is consistent with state and federal law, and includes community outreach to families of historically underserved populations of students;

(6) The school's proposed educational program includes student academic performance standards and requirements that exceed those determined under chapter 28A.655 RCW and are measured according to the assessment system determined under chapter 28A.655 RCW;

(7) The application includes a viable plan to evaluate pupil performance and procedures to take appropriate corrective action if pupil performance at the charter school falls below standards established in its charter;

(8) The financial plan for the school is designed to reasonably support the charter school's educational program based on a review of the proposed one-year budget of projected revenues, expenditures, and facilities;

(9) The school's financial and administrative operations, including its audits, 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. A liability insurance policy of up to fifty million dollars, negotiated with the school board, is required;

(11) The procedures the school plans to follow to discipline, suspend, and expel students comply with school district policy and state and federal law;

(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 school district, state, and federal health and safety laws and regulations;

(13) The school has developed a program for parent involvement in the charter school;

(14) The charter school will have the liquid assets available to operate the school on an ongoing and sound financial basis;

(15) The procedures the school plans to follow to assure high academic standards;

(16) The applicant has met any additional requirements that are appropriate and reasonably related to the operation of a charter school that the sponsoring school board imposed as a condition for approval of the charter; and

(17) The quality management plan for the school is adequate.

NEW SECTION. Sec. 10. CHARTER AGREEMENT--AMENDMENT. (1) A charter application approved by a school board sponsor with any changes or additions, and signed by an authorized representative of the applicant and the sponsor, constitutes a charter.

(2) A charter may be amended during its term at the request of the charter school management team and the nonprofit board of directors and on the approval of the sponsoring public school board.

(3) A charter may not prohibit and must provide for the application of laws applicable to charter schools or to charter school nonprofit boards of directors and management teams enacted after the effective date of this section.

NEW SECTION. Sec. 11. CHARTER RENEWAL AND REVOCATION. (1) An approved plan to establish a charter school is effective for one year from the first day of operation. At the conclusion of the first six months of operation, the charter school may apply to the sponsor for renewal. A request for renewal must be submitted no later than four 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 academic achievement, including the student performance standards adopted by the academic achievement and accountability commission in accordance with RCW 28A.655.030; the number and percentage of historically underserved populations of students served; and other terms of the charter;

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

(c) All audit information from independent sources regarding the charter school, if available, and all self assessments and corresponding corrective action plans.

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

(a) The charter school materially violated its charter with the sponsor;

(b) The charter school failed to meet generally accepted standards of fiscal management;

(d) The charter school has failed to deliver high academic standards to their students.

(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 in order to allow the charter school an opportunity to correct identified deficiencies in its operation. At the request of the management team of the charter school, the sponsor shall review its decision for nonrenewal within forty-five days of receiving the request for review and the supporting documentation demonstrating the correction of the deficiencies.

(5)(a) The sponsor may revoke a previously approved charter before the expiration of the term of the charter, and before application for renewal, if any of the following occurred:

(i) The charter school materially violated its charter with the sponsor;

(ii) The charter school failed to meet generally accepted standards of fiscal management;

(iii) The charter school violated provisions in law that have not been waived in accordance with this chapter; or

(iv) The charter school failed to deliver high academic standards to their students.

(b) 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:

(i) Written notice to the charter school of the specific violations alleged;

(ii) One or more public hearings in the school district in which the charter school is located; and

(iii) A reasonable opportunity and a sufficient period of time for the charter school to correct the identified deficiencies.

(c) If, after following the procedures in (b) of this subsection, the sponsor determines that revoking the charter is necessary to further the intent of this chapter, the sponsor may revoke the charter.

(d) If a sponsor revokes the charter, the sponsor, upon a request by the charter school, shall provide technical assistance to the charter school to complete the plan required and carry out the tasks identified in subsection (6) of this section.

(6) A charter school planning to close or anticipating revocation or nonrenewal of its charter shall provide a plan setting forth a timeline and the responsible parties for disposition of students and student records and disposition of finances.

(a) Immediately following the decision to close a school, the school must:

(i) Submit to the sponsor a list of parent addresses and proof that the school has communicated the impending closure of the school to all parents and staff;

(ii) Assign staff responsible for transition of student records and for providing assistance to students and parents in transferring from the charter school to the district public, private, or home school chosen by the family;

(iii) Provide the names and contact information for staff responsible for transfer of student records to the central administration of the sponsoring school district, as well as the projected transition tasks and timelines to the sponsor.

(b) Before closing the charter school the charter school management team shall:

(i) Determine the amount of anticipated revenue due to the school as well as anticipated liabilities, and provide a complete asset and liability report to the sponsor;

(ii) Create a current and projected payroll and payroll benefits commitment;

(iii) List each employee, job, and the funds necessary to complete the educational calendar balance of the year, the transition of students and records, and the administrative close-down tasks;

(iv) Determine the total moneys required to complete contracts;

(v) Schedule an audit and set aside funds to cover costs; and

(vi) Provide the sponsor with a plan to close the school.

NEW SECTION. Sec. 12. FUNDING. (1) The publicly elected district school board provides funding for a charter school including regular apportionment, special education, categorical, student achievement, and other nonbasic education moneys. Allocations shall be based on the statewide average staff mix ratio of all noncharter public schools from the prior school year and the school's actual FTE enrollment, except that vocational education funding for grades nine through twelve shall be provided based on eighteen and one-half percent of the charter school's actual FTE enrollment for grades nine through twelve. A charter school is not eligible for enhanced small school assistance funding. Categorical funding shall be allocated to a charter school based on the same funding criteria used for noncharter public schools. A charter school is eligible to apply for state grants on the same basis as a school district. Those allocations to a charter school that are included in RCW 84.52.0531(3) (a) through (c) shall be included in the levy base of the district in which the charter school is located.

(2) For levies submitted to voters after the start-up date of a charter school, the school shall be included in levy planning, budgets, and funding distribution in the same manner as other district-sponsored public schools.

NEW SECTION. Sec. 13. STUDY OF CHARTER SCHOOLS. Subject to funding, the Washington institute for public policy shall study the implementation of charter school legislation in the forty states that have charter school laws and present data to the legislature by February 1, 2005, demonstrating that the system of charter schools in those states has provided innovative, high quality alternative programs for historically underserved populations of students; has not had a negative financial impact on the regular public school system; and that student achievement in charter schools exceeds student achievement in their public school counterparts, prior to the implementation of a charter school system in Washington state.

NEW SECTION. Sec. 14. CAPTIONS NOT LAW. Captions used in this chapter are not any part of the law.

NEW SECTION. Sec. 15. Sections 1 through 14 of this act constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 16. 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."

2SHB 2295 - H AMD 1062

By Representative Chase

FAILED 03/10/2004

On page 1, line 1 of the title, after "schools;" strike the remainder of the title and insert "and adding a new chapter to Title 28A RCW."

--- END ---