5012-S.E AMH ED H2673.2

ESSB 5012 - H COMM AMD

By Committee on Education

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. INTENT. The legislature finds that in addition to providing more, high quality public school choices for families, teachers, and students, public charter schools may be a tool for the improvement of schools in which significant numbers of students persistently fail to meet state standards. The legislature also finds that the federal no child left behind act of 2001 authorizes the conversion of noncharter public schools to charter public schools in the restructuring process for schools that persistently fail to make adequate yearly progress in student achievement.

The legislature intends to authorize the establishment of charter schools for the primary purpose of providing more, high quality learning environments to assist educationally disadvantaged and other students in meeting the state's academic standards. The legislature also intends to encourage school districts to consider using the chartering process as an optional tool for developing viable school improvement plans aimed at achieving state and federal accountability goals. The legislature also intends to authorize the use of the chartering process as a state intervention strategy to provide focused assistance to low performing schools.

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

(1) "Alternate sponsor" means either: (a) The educational service district in which the proposed charter school will be located; or (b) either the governing board of a state or regional university as defined in RCW 28B.10.016 or the governing board of The Evergreen State College, in consultation with the educational service district in which the proposed charter school will be located. An institution of higher education, to be eligible as an alternate sponsor, must operate an approved teacher education program meeting state standards leading to teacher certification. Charter schools sponsored under this subsection shall be approved by the governing board of the sponsoring institution or by the dean of the department of the school of education or the school operating the institution's teacher education program, or by an official or agency designated by and accountable to the governing board of the sponsoring institution.

(2) "Applicant" means a nonprofit corporation that has submitted an application to a sponsor or an alternate sponsor to obtain approval to operate a charter school. 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.

(3) "Board of directors" means the board of directors appointed or elected by the applicant to manage and operate the charter school.

(4) "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.

(5) "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.

(6) "Conversion charter school" means a noncharter public school converted to a charter public school through the chartering process approved in accordance with this chapter.

(7) "Educationally disadvantaged students" includes students who do not speak English proficiently, students with special needs, students who qualify for free and reduced priced meals, and other students who are at risk of failing to meet state and federal academic performance standards.

(8) "Sponsor" means the school district in which the charter school is located.

NEW SECTION. Sec. 3. CHARTER SCHOOLS--POWERS. (1) In carrying out its duty to manage and operate the charter school, the board of directors of a charter school may:

(a) Hire, manage, and discharge any charter school employee in accordance with the terms of this chapter and that school's charter;

(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;

(c) 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;

(d) Issue secured and unsecured debt to manage cash flow, improve operations, or finance the acquisition of real property or equipment. Such an issuance does not constitute an obligation, either general, special, or moral of the state, the charter school sponsor, the school district in which the charter school is located or any other political subdivision or agency of the state. Neither the full faith and credit nor the taxing power of the state, the charter school sponsor, the school district in which the charter school is located, or any other political subdivision or agency of the state may be pledged for the payment of such debt;

(e) 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 bonds, however it may charge fees for optional noncredit extracurricular events.

(3) Neither a charter school sponsor, an alternate sponsor, nor the school district in which the charter school is located is liable for acts or omissions of a charter school, 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 board of directors appointed or elected by a charter school applicant, according to the terms of a renewable five-year contract granted by a sponsor or an alternate sponsor. A charter school may offer any program or course of study that a noncharter public school may offer.

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 or an alternate 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 those statutes and rules as provided for and made applicable to charter schools in accordance with 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, parents' rights, civil rights laws, and nondiscrimination laws, including but not limited to, chapter 28A.640 RCW (sexual equality) and Title IX of the education amendments of 1972 (20 U.S.C. Sec. 1681 et seq.) applicable to school districts, and to the same extent as school districts;

(b) Participate in nationally normed standardized achievement tests as required in RCW 28A.230.190, 28A.230.193, and 28A.230.230 and the elementary, middle school, and high school standards, requirements, and assessment examinations as required in RCW 28A.655.060;

(c) Employ certificated instructional staff as required in RCW 28A.410.010, however charter schools may hire noncertificated instructional staff of unusual competence and in exceptional cases as specified in RCW 28A.150.260. Charter school instructional staff shall comply with RCW 28A.405.030;

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

(e) Be subject to the same financial and audit requirements as a school district, and in addition be subject to regular independent performance audits conducted by the state legislative auditor;

(f) Comply with the annual performance report under RCW 28A.655.110;

(g) Follow the performance improvement goals and requirements adopted by the academic achievement and accountability commission by rule under RCW 28A.655.030;

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

(i) Comply with the open public meetings act in chapter 42.30 RCW and open public records requirements in RCW 42.17.250; and

(j) Be subject to and comply with legislation enacted after the effective date of this act governing the operation and management of charter schools.

(5) A member of a board of directors of a charter school shall be considered the equivalent of 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) Notwithstanding subsection (2) of this section, a conversion charter school may not displace students enrolled prior to the chartering process and must be structured to provide sufficient capacity to enroll all students who wish to remain enrolled in the school after conversion and must give first priority to enrollment of those students.

(2) A charter school must enroll all students who submit a timely application if capacity is sufficient. 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, students exercising public school choice under the federal no child left behind act of 2001, and students transferring from schools receiving focused assistance. 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.

(3) A charter school must enroll and serve educationally disadvantaged students and may not limit admission on any characteristic listed in RCW 49.60.010. A charter school may limit admission to students within a given age group or grade level.

(4) The percentage of educationally disadvantaged students enrolled in a charter school must be equal to or greater than the percentage of such students in a noncharter public school being converted to a charter or in the district in which the charter school is located.

NEW SECTION. Sec. 7. CHARTER APPLICATION--CHARTERING PROCESS.

(1) An applicant may apply to a sponsor or an alternate sponsor to establish a charter school in accordance with this section.

(2) An application for a charter school must be submitted first to the 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 (3) and (4) of this section, before the application may be submitted to an alternate sponsor.

(3) 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 for the purpose of taking public comment on the application and must schedule such a hearing 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 prior to the granting of a charter; however a school board is not required to hold a public hearing prior to 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 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 school board elects not to 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 submission of a revised application, the school board must notify the applicant in writing of the reasons for the rejection.

(5) Applications to an alternate sponsor for the conversion of a noncharter public school to a charter school may be made only to an educational service district sponsor.

(6) Alternate sponsors must comply with the procedures in subsections (1) through (4) of this section for consideration of the charter application. A sponsor or alternate sponsor is not bound by another sponsor's or another alternate sponsor's findings or decision to deny the application.

(7) The superintendent of public instruction shall maintain copies of all approved charter applications. An applicant may obtain copies of those applications from the office of the superintendent of public instruction.

(8) Educational service districts and the superintendent of public instruction are encouraged to assist schools and school districts in which significant numbers of students persistently fail to meet state standards with completing the chartering process. Assistance from an educational service district or from the superintendent of public instruction may include, but is not limited to, identifying potential eligible applicants and assisting with the charter application and approval processes.

(9) To the extent authorized in the federal no child left behind act of 2001, under the restructuring and alternative governance provisions for schools failing to meet adequate yearly progress, the superintendent of public instruction may require the conversion in accordance with the provisions of this chapter of a persistently failing or low performing noncharter public school into a charter school for the purpose of meeting state and federal student achievement and accountability requirements.

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, which shall be subject to verification and review, of the individuals who will operate the school;

(2) The nonprofit corporation's proposed 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, including whether and how the charter school will assist its educationally disadvantaged students and students transferring from low performing schools in meeting the state's academic standards;

(5) A description of the school's admissions policy and marketing program, including deadlines for applications or admissions and evidence supporting enrollment projections of students from low performing schools or of educationally disadvantaged students;

(6) A description of student performance standards and requirements that must meet those determined under RCW 28A.655.060, and be measured according to the assessment system determined under RCW 28A.655.060;

(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 the financial plan for the school. The plan shall include: (a) A proposed five-year budget of projected revenues and expenditures; (b) a plan for starting the school; (c) a five-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, purchases of real property, 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. For purposes of this subsection, a liability insurance policy of five million dollars is required;

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

(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.

NEW SECTION. Sec. 9. APPROVAL CRITERIA. A sponsor or alternate sponsor may approve an application for a charter school, if in the sponsor's or alternate sponsor's reasonable judgment, after exercising due diligence and good faith, the sponsor or alternate 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 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 is free from religious or sectarian influence;

(4) The school's proposed educational program includes student academic performance standards and requirements that meet those determined under RCW 28A.655.060 and are measured according to the assessment system determined under RCW 28A.655.060;

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

(6) The school's educational program, including its curriculum and instructional strategies, is likely to assist educationally disadvantaged students and students transferring from low performing schools in meeting the state's academic standards;

(7) The school will serve students transferring from low performing schools or educationally disadvantaged students or both, and the school's projected percentage of educationally disadvantaged students is equal to or greater than the percentage of such students in the noncharter public school being converted, or in the district in which the charter school is located;

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

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

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

(11) 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 insurance policy of five million dollars is required;

(12) The procedures the school plans to follow for discipline and dismissal of students are reasonable and comply with federal law;

(13) 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; and

(14) 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)).

NEW SECTION. Sec. 10. CHARTER AGREEMENT--AMENDMENT. (1) A charter application approved by a sponsor or an alternate sponsor with any changes or additions, including performance standards or benchmarks established by the sponsor, 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 or alternate sponsor.

(3) A charter may not prohibit and must provide for application of laws applicable to charter schools or to charter school boards of directors 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 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 original sponsor or alternate 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, including the student performance standards adopted by rule by the academic achievement and accountability commission in accordance with RCW 28A.655.030; 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 or alternate sponsor shall reject the application for renewal if the academic progress of students in the charter school, as measured by the standards and assessments in RCW 28A.655.060, is inferior to the average progress of students in the district in which the charter school is located when similar student populations are compared.

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

(a) The charter school materially violated its contract with the sponsor or alternate 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, including the student performance standards adopted by rule by the academic achievement and accountability commission in accordance with RCW 28A.655.030;

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

(5) A sponsor or alternate sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school within three months 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 or alternate sponsor shall review its decision for nonrenewal after the charter school has corrected any identified deficiencies.

(6) The sponsor or alternate 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) or (4) 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 or alternate sponsor first provides written notice of the specific violations alleged, a public hearing in the school district in which the charter school is located, and a reasonable opportunity for the charter school to correct the identified areas of concern. The sponsor or alternate sponsor of a charter school shall provide for an appeal process upon a determination by the sponsor or alternate sponsor that grounds exist to revoke a charter.

(7) 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 or alternate 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 student transfer of records, as well as the projected transition tasks and timelines to the sponsor or alternate sponsor, and upon completion of student transition, provide a list of students and a brief description of the disposition of their student records to the sponsor or alternate sponsor.

(b) Prior to closing the charter school the charter school board of directors shall:

(i) Identify a trustee who will, through the process of closing the school and for a term of ten years thereafter, assume responsibility for school and student records, and notify the sponsor or alternate sponsor of the name and contact information for the trustee;

(ii) 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 or alternate sponsor;

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

(iv) 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;

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

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

(vii) Provide the sponsor or alternate sponsor with a plan for the closure of the school and final disposition of all property owned by the charter school.

NEW SECTION. Sec. 12. FUNDING. (1) For charter schools approved by a sponsor:

(a) For purposes of funding, students in charter schools shall be considered students of the sponsoring district for state apportionment purposes. Without violating section 13 of this act, the sponsoring school district shall provide prompt and timely funding for charter schools in amounts the schools would have generated if the students were enrolled in a noncharter public school in the district except that a charter school shall not generate eligibility for small school assistance. Funding for charter schools shall include regular apportionment, categorical, student achievement, and nonbasic education moneys, as appropriate and shall be based on enrollment, staffing, and other financial information submitted by the charter school to the school district as required to determine state apportionment amounts. A sponsor shall submit, by November 1st of each year, to the office of the superintendent of public instruction annual year-end financial information, as prescribed by the superintendent, for each charter school sponsored in the previous school year;

(b) Local levy moneys approved by the voters before the effective date of a charter between a school district and an applicant shall not be allocated to a charter school unless the sponsoring school district determines it has received sufficient authority from voters to allocate maintenance and operation excess tax levy money to the charter school. For levies approved after the effective date of a charter, charter schools shall be included in levy planning, budgets, and funding distribution in the same manner as other schools in the district only to the extent agreed to by the school district board of directors. In making the decision, the school district board of directors shall consult with the charter school board of directors; and

(c) A charter school is eligible for state matching funds for common school construction if a sponsoring school district determines it has received voter approval of local capital funds for the project.

(2) Public schools converting to charter schools shall receive funding in the same manner as other charter schools sponsored by school districts.

(3) If the sponsor is not a school district, students in the charter school shall be considered a separate school district for state apportionment purposes. Without violating section 13 of this act, the superintendent of public instruction shall provide prompt and timely funding for charter schools through the apportionment funding formulas in amounts the schools would have generated if the students were enrolled in a school district except that a charter school shall not generate eligibility for small school assistance. The funding shall include regular apportionment, categorical, student achievement, and nonbasic education moneys and shall be based on enrollment, staffing, and other financial information submitted by the charter school to the superintendent of public instruction, as required to determine state apportionment amounts. Those allocations to charter schools 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.

(4) No local levy money may be allocated to a charter school if the charter school is sponsored by a sponsor that is not a school district.

(5) To be eligible to receive state categorical program funding, a charter school must serve students who would be eligible for program funding if served by the school district.

NEW SECTION. Sec. 13. ADMINISTRATION FEE. To offset costs of oversight and administering the charter, a sponsor or an alternate sponsor may retain up to three percent of state funding and local excess levy funding, if applicable, that is being driven to the charter school. Except for the administration fee in this section, no other offsets or deductions are allowed, whether for central administration or other off-site support services, from a charter school's per-pupil share of state appropriations, local levies, or other funds, unless the charter school has contracted with a school district to obtain specific additional services.

NEW SECTION. Sec. 14. 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. 15. STUDY OF CHARTER SCHOOLS. The Washington institute for public policy shall study the implementation and effectiveness of this act. The institute shall report to the legislature on the effectiveness of charter schools in raising student achievement and the impact of charter schools. The institute also shall examine and discuss whether and how charter schools have enhanced education reform efforts and recommend whether relaxing or eliminating certain regulatory requirements for noncharter public schools could result in improved school performance at those schools. The institute shall recommend changes to this chapter including improvements that could be made to the application and approval process. A preliminary report of the study is due to the legislature by March 1, 2006, and a final report is due September 1, 2007.

NEW SECTION. Sec. 16. NUMBER OF CHARTER SCHOOLS. (1) Applications for charter schools may begin on the effective date of this section. The maximum number of charters that can be granted under this chapter is five in the first year commencing July 1, 2003, five in the second year, and fifteen in each of the next four years. These annual allocations shall be cumulative so that if the maximum is not reached in any given year the maximum shall be increased accordingly for the successive years. Sixty percent of allowable new charters each year may be approved only for charter schools that will serve educationally disadvantaged students, or students from low performing schools.

(2) For purposes of monitoring compliance with this section and providing information to new charter school applicants, the superintendent of public instruction shall maintain a running total of the projected and actual enrollment at charter schools and the total number of charters granted. Charters for schools planning to open at the beginning of a school year must be approved no later than March 31st of the preceding school year, except that for new charter schools planning to open in September 2003, the charter may be approved up to fifteen days after the effective date of this act.

(3) For purposes of implementing this subsection, a sponsor or alternate sponsor shall notify the office of the superintendent of public instruction when it receives a charter school application, when it approves a charter school, and when a charter school is terminated. When the maximum allowable number of new charter schools is approved in a given year, the superintendent shall notify potential sponsors that the annual limit has been reached.

(4) The maximum number of charter schools allowed under this section does not include noncharter public schools converting to charter schools, however, conversion charter schools shall be considered charter schools for the purposes of subsections (2) and (3) of this section.

NEW SECTION. Sec. 17. A new section is added to chapter 41.56 RCW to read as follows:

This chapter applies to charter schools as defined in section 2 of this act and the charter school's employees included in the bargaining unit. The bargaining unit of employees of charter schools must be limited to the employees of the charter school and must be separate from other bargaining units in the school district or educational service district unless the charter school is a public school that has converted to a charter school. The employees of public schools that have converted to a charter school shall remain members of the bargaining units in the school district.

This section, designating charter schools as employers and charter school employees as members under the teachers' retirement systems, the school employees' retirement systems, and the public employees' retirement systems, takes effect only if the department of retirement systems receives determinations from the internal revenue service and the United States department of labor that such participation does not jeopardize the status of these retirement systems as governmental plans under the federal employees' retirement income security act and the internal revenue code.

NEW SECTION. Sec. 18. A new section is added to chapter 41.59 RCW to read as follows:

This chapter applies to collective bargaining agreements between charter schools and the employees of charter schools included in the bargaining unit. The bargaining unit of employees of charter schools must be limited to the employees of the charter school and must be separate from other bargaining units in the school district or educational service district.

Sec. 19. RCW 41.59.080 and 1998 c 244 s 11 are each amended to read as follows:

The commission, upon proper application for certification as an exclusive bargaining representative or upon petition for change of unit definition by the employer or any employee organization within the time limits specified in RCW 41.59.070(3), and after hearing upon reasonable notice, shall determine the unit appropriate for the purpose of collective bargaining. In determining, modifying or combining the bargaining unit, the commission shall consider the duties, skills, and working conditions of the educational employees; the history of collective bargaining; the extent of organization among the educational employees; and the desire of the educational employees; except that:

(1) A unit including nonsupervisory educational employees shall not be considered appropriate unless it includes all such nonsupervisory educational employees of the employer; and

(2) A unit that includes only supervisors may be considered appropriate if a majority of the employees in such category indicate by vote that they desire to be included in such a unit; and

(3) A unit that includes only principals and assistant principals may be considered appropriate if a majority of such employees indicate by vote that they desire to be included in such a unit; and

(4) A unit that includes both principals and assistant principals and other supervisory employees may be considered appropriate if a majority of the employees in each category indicate by vote that they desire to be included in such a unit; and

(5) A unit that includes supervisors and/or principals and assistant principals and nonsupervisory educational employees may be considered appropriate if a majority of the employees in each category indicate by vote that they desire to be included in such a unit; and

(6) A unit that includes only employees in vocational-technical institutes or occupational skill centers may be considered to constitute an appropriate bargaining unit if the history of bargaining in any such school district so justifies; and

(7) Notwithstanding the definition of collective bargaining, a unit that contains only supervisors and/or principals and assistant principals shall be limited in scope of bargaining to compensation, hours of work, and the number of days of work in the annual employment contracts; and

(8) The bargaining unit of certificated employees of school districts, educational service districts, or institutions of higher education that are education providers under chapter 28A.193 RCW must be limited to the employees working as education providers to juveniles in each adult correctional facility maintained by the department of corrections and must be separate from other bargaining units in school districts, educational service districts, or institutions of higher education; and

(9) The bargaining unit for employees of charter schools as defined in section 2 of this act must be limited to the employees of the charter school and must be separate from other bargaining units in the school district or educational service district.

NEW SECTION. Sec. 20. CAPTIONS NOT LAW. Captions used in this chapter do not constitute any part of the law.

NEW SECTION. Sec.21. Sections 1 through 16 and 20 of this act constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 22. 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."

Correct the title.

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