House File 2424 - Introduced HOUSE FILE 2424 BY RANTS A BILL FOR An Act relating to the establishment, funding, and bonding 1 authority of public charter schools. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5481YH (15) 83 kh/rj
H.F. 2424 Section 1. NEW SECTION . 16.163 Authority to issue public 1 charter school facilities bonds and notes. 2 The authority shall assist a public charter school 3 established under chapter 257A, and the authority shall have 4 all of the powers delegated to it in a chapter 28E agreement 5 by a governing board of a public charter school established 6 pursuant to chapter 257A, or a private developer contracting 7 with a public charter school established pursuant to chapter 8 257A, to develop a public charter school facility, with respect 9 to the issuance or securing of bonds or notes as provided in 10 section 257A.11, subsection 4. 11 Sec. 2. NEW SECTION . 257A.1 Short title. 12 This chapter may be cited as the “Public Charter Schools 13 Act” . 14 Sec. 3. NEW SECTION . 257A.2 Legislative findings and 15 declaration of purpose. 16 1. The general assembly finds and declares the following: 17 a. It is in the best interests of the people of the state 18 to provide all children with public schools that reflect high 19 expectations and to create conditions in all schools where 20 these expectations can be met. 21 b. Education reform is necessary to strengthen the 22 performance of elementary and secondary public school students. 23 c. Those who know students best, their parents and 24 educators, make the best education decisions regarding the 25 students. 26 d. Parents and educators have a right and a responsibility 27 to participate in the education institutions which serve Iowa’s 28 children. 29 e. Different students learn differently and public school 30 programs should be customized to fit the needs of individual 31 students. 32 f. There are parents, educators, and other citizens in the 33 state willing and able to offer educational programs but who 34 lack a channel through which they can direct their efforts. 35 -1- LSB 5481YH (15) 83 kh/rj 1/ 52
H.F. 2424 2. The purpose of establishing public charter schools in 1 this state is to accomplish the following: 2 a. Improve student learning by creating high-quality schools 3 with high standards for student performance. 4 b. Close achievement gaps between high-performing and 5 low-performing groups of public school students. 6 c. Increase high-quality educational opportunities within 7 the public education system for all students, especially those 8 at risk of academic failure. 9 d. Create new professional opportunities for teachers, 10 school administrators, and other school personnel that allow 11 them to have a direct voice in the operation of their schools. 12 e. Encourage the use of different, high-quality models of 13 teaching, governing, scheduling, or other aspects of schooling 14 that meet a variety of student needs. 15 f. Allow public schools freedom and flexibility in exchange 16 for exceptional levels of results-driven accountability. 17 g. Provide students, parents, community members, and local 18 entities with expanded opportunities for involvement in the 19 public education system. 20 h. Encourage the replication of successful public charter 21 schools. 22 3. All public charter schools in the state established under 23 this chapter are public schools and are part of the state’s 24 public education system. The provisions of this chapter should 25 be interpreted liberally to support the findings and purposes 26 of this section and to advance a renewed commitment by the 27 state to the mission, goals, and diversity of public education. 28 Sec. 4. NEW SECTION . 257A.3 Definitions. 29 As used in this chapter, unless the context otherwise 30 requires: 31 1. “Applicant” means any person or group of persons that 32 develops and submits an application for a public charter school 33 to an authorizer. 34 2. “Application” means a proposal from an applicant to 35 -2- LSB 5481YH (15) 83 kh/rj 2/ 52
H.F. 2424 an authorizer to enter into a charter contract whereby the 1 proposed school obtains public charter school status. 2 3. “At-risk student” means a student who has an economic 3 or academic disadvantage that requires special services and 4 assistance to succeed in educational programs. The term 5 includes but is not limited to students who are members 6 of economically disadvantaged families, students who are 7 identified as having special educational needs, students who 8 are limited in English proficiency, students who are at risk 9 of dropping out of high school, and students who do not meet 10 minimum standards of academic proficiency. 11 4. “Authorizer” means an entity authorized under this 12 chapter to review applications, decide whether to approve 13 or reject applications, enter into charter contracts with 14 applicants, oversee public charter schools, and decide whether 15 to renew, not renew, or revoke charter contracts. 16 5. “Charter contract” means a fixed-term, renewable 17 contract between a public charter school and an authorizer that 18 outlines the roles, powers, responsibilities, and performance 19 expectations for each party to the contract. 20 6. “Commission” means the Iowa public charter school 21 commission created pursuant to section 257A.6. 22 7. “Conversion public charter school” means a charter school 23 that existed as a noncharter public school before becoming a 24 public charter school. 25 8. “Education service provider” means a for-profit 26 education management organization, nonprofit charter management 27 organization, school design provider, or any other partner 28 entity with which a public charter school intends to contract 29 for educational design, implementation, or comprehensive 30 management. 31 9. “Governing board” means the independent board of a public 32 charter school that is party to the charter contract with the 33 authorizer and whose members have been elected or selected 34 pursuant to the public charter school’s application. 35 -3- LSB 5481YH (15) 83 kh/rj 3/ 52
H.F. 2424 10. “Local school board” means a school board exercising 1 management and control of a local school district pursuant to 2 state statutes. 3 11. “Local school district” means a public agency that 4 establishes and supervises one or more public schools within 5 its geographical limits pursuant to state statutes. 6 12. “Noncharter public school” means a public school that is 7 under the direct management, governance, and control of a local 8 school board. 9 13. “Parent” means a parent, guardian, or other person or 10 entity having legal custody of a child. 11 14. “Public charter school” means a public school 12 established under this chapter that meets the following 13 criteria: 14 a. Has autonomy over decisions including but not limited to 15 matters concerning finance, personnel, scheduling, curriculum, 16 and instruction. 17 b. Is governed by an independent governing board. 18 c. Is established and operating under the terms of a charter 19 contract between the school’s board and its authorizer. 20 d. Is a school to which parents choose to send their 21 children. 22 e. Admits students on the basis of a lottery if more 23 students apply for admission than can be accommodated. 24 f. Provides a program of education that includes one or 25 more of the following: preschool, prekindergarten, any grade 26 or grades from kindergarten through 12th grade, and adult 27 community, continuing, and vocational education programs. 28 g. Operates in pursuit of a specific set of educational 29 objectives as defined in its charter contract. 30 h. Operates under the oversight of its authorizer in 31 accordance with its charter contract. 32 15. “Start-up public charter school” means a public charter 33 school that did not exist as a noncharter public school prior 34 to becoming a public charter school. 35 -4- LSB 5481YH (15) 83 kh/rj 4/ 52
H.F. 2424 16. “Student” means any child who is eligible for attendance 1 in public schools in the state. 2 17. “Virtual public charter school” means a public charter 3 school that offers educational services predominantly through 4 the internet. 5 Sec. 5. NEW SECTION . 257A.4 Enrollment. 6 1. Enrollment requirements. Open enrollment and lottery 7 requirements are as follows: 8 a. A public charter school shall be open to any student 9 residing in the state. 10 b. A school district shall not require any student enrolled 11 in the school district to attend a public charter school. 12 c. A public charter school shall not limit admission based 13 on ethnicity, national origin, religion, gender, income level, 14 disabling condition, proficiency in the English language, or 15 academic or athletic ability. 16 d. A public charter school may limit admission to students 17 within a given age group or grade level and may be organized 18 around a special emphasis, theme, or concept as stated in the 19 school’s application. 20 e. A public charter school shall enroll all students who 21 wish to attend the school, unless the number of students 22 exceeds the capacity of a program, class, grade level, or 23 building. 24 f. If capacity is insufficient to enroll all students who 25 wish to attend the school, the public charter school shall 26 select students through a lottery. 27 2. Enrollment preferences. Enrollment preferences include 28 the following: 29 a. Any noncharter public school converting partially or 30 entirely to a public charter school shall adopt and maintain 31 a policy giving enrollment preference to students who reside 32 within the former attendance area of that public school. 33 b. A public charter school shall give enrollment preference 34 to students enrolled in the public charter school the previous 35 -5- LSB 5481YH (15) 83 kh/rj 5/ 52
H.F. 2424 school year and to siblings of students already enrolled in the 1 public charter school. An enrollment preference for returning 2 students excludes those students from entering into a lottery. 3 c. A public charter school may give enrollment preference to 4 children of a public charter school’s founders, governing board 5 members, and full-time employees, so long as they constitute no 6 more than ten percent of the school’s total student population. 7 3. Focusing of mission. This section does not preclude 8 the formation of a public charter school whose mission is 9 focused on serving students with disabilities, students of 10 the same gender, students who pose such severe disciplinary 11 problems that they warrant a specific educational program, or 12 students who are at risk of academic failure. If capacity is 13 insufficient to enroll all students who wish to attend such 14 school, the public charter school shall select students through 15 a lottery. 16 4. Credit transferability. If a student who was previously 17 enrolled in a public charter school enrolls in another public 18 school in this state, the student’s new school shall accept 19 credits earned by the student in courses or instructional 20 programs at the public charter school in a uniform and 21 consistent manner and according to the same criteria that are 22 used to accept academic credits from other public schools. 23 5. Information to parents and the general public. A local 24 school district shall provide or publicize to parents and 25 the general public information about public charter schools 26 authorized by the district as an enrollment option within the 27 district to the same extent and through the same means that the 28 district provides and publicizes information about noncharter 29 public schools in the district. 30 6. Determination of student capacity of public charter 31 schools. An authorizer shall not restrict the number of 32 students a public charter school may enroll. The capacity of 33 the public charter school shall be determined annually by the 34 governing board of the public charter school in conjunction 35 -6- LSB 5481YH (15) 83 kh/rj 6/ 52
H.F. 2424 with the authorizer and in consideration of the public charter 1 school’s ability to facilitate the academic success of its 2 students, to achieve the other objectives specified in the 3 charter contract, and to ensure that its student enrollment 4 does not exceed the capacity of its facility or site. 5 Sec. 6. NEW SECTION . 257A.5 Authorizers. 6 1. Authority to authorize. The state public charter school 7 commission created under section 257A.6 may authorize public 8 charter schools anywhere in the state, provided that the 9 commission fulfills requirements of all public charter school 10 authorizers under this chapter. 11 2. Eligible authorizing entities. The following eligible 12 authorizing entities may register with the commission pursuant 13 to subsection 4 for the following purposes: 14 a. A local school board for chartering authority within the 15 boundaries of the local school district overseen by the local 16 school board. 17 b. Governing boards of accredited public or private 18 postsecondary institutions, including community colleges and 19 four-year colleges and universities for statewide, regional, 20 or local chartering authority, in accordance with each 21 institution’s regular operating jurisdiction. 22 c. A city may apply to the commission for chartering 23 authority within the city’s jurisdiction. 24 d. Governing boards of nonprofit or charitable 25 organizations, which are exempt from federal taxes under 26 sections 501(c)(3) or 501(c)(6) of the Internal Revenue 27 Code, for statewide, regional, or local chartering authority. 28 Nonpublic sectarian or religious organizations, and any other 29 charitable organization which in their federal IRS Form 1023, 30 Part IV, describe activities indicating a religious purpose, 31 are not eligible to apply to become an authorizer. 32 3. Authorizer powers, duties, and liabilities. 33 a. Authorizers are responsible for executing, in accordance 34 with this chapter, the following essential powers and duties: 35 -7- LSB 5481YH (15) 83 kh/rj 7/ 52
H.F. 2424 (1) Soliciting and evaluating charter applications. 1 (2) Approving quality charter applications that meet 2 identified educational needs and promote a diversity of 3 educational choices. 4 (3) Declining to approve weak or inadequate charter 5 applications. 6 (4) Negotiating and executing sound charter contracts with 7 each approved public charter school. 8 (5) Monitoring, in accordance with charter contract terms, 9 the performance and legal compliance of public charter schools. 10 (6) Determining whether each charter contract merits 11 renewal, nonrenewal, or revocation. 12 b. An authorizing entity may delegate its duties to offices, 13 employees, and contractors. 14 c. Regulation by authorizers shall be limited to these 15 powers and duties, and consistent with the spirit and intent of 16 this chapter. 17 d. An authorizing entity, members of the board of an 18 authorizer in their official capacity, and employees of an 19 authorizer are immune from civil and criminal liability with 20 respect to all activities related to a public charter school 21 they authorize. 22 4. Principles and standards for charter authorizing. All 23 authorizers shall be required to develop and maintain 24 chartering policies and practices consistent with nationally 25 recognized principles and standards for quality charter 26 authorizing in all major areas of authorizing responsibility 27 including: organizational capacity and infrastructure; 28 soliciting and evaluating charter applications; performance 29 contracting; ongoing public charter school oversight and 30 evaluation; and charter renewal decision-making. Authorizers 31 shall carry out all their duties under this chapter in a 32 manner consistent with such nationally recognized principles 33 and standards and with the spirit and intent of this chapter. 34 Evidence of material or persistent failure to do so shall 35 -8- LSB 5481YH (15) 83 kh/rj 8/ 52
H.F. 2424 constitute grounds for losing charter authorizing powers. 1 5. Authorizer reporting. Every authorizer shall be required 2 to submit to the commission and the general assembly an annual 3 report summarizing: 4 a. The authorizer’s strategic vision for chartering and 5 progress toward achieving that vision. 6 b. The academic and financial performance of all operating 7 public charter schools overseen by the authorizer, according 8 to the performance expectations for public charter schools set 9 forth in this chapter. 10 c. The status of the authorizer’s public charter school 11 portfolio, identifying all public charter schools in each of 12 the following categories: approved, but not yet open; and 13 operating, renewed, transferred; and revoked, not renewed, 14 voluntarily closed, or never opened. 15 d. The authorizing functions provided by the authorizer 16 to the public charter schools under its purview, including 17 the authorizer’s operating costs and expenses detailed in 18 annual audited financial statements that conform with generally 19 accepted accounting principles. 20 e. The services purchased from the authorizer by the public 21 charter schools under its purview, including an itemized 22 accounting of the actual costs of these services, as required 23 in subsection 9. 24 6. Authorizer funding. 25 a. To cover authorizer costs for overseeing public charter 26 schools in accordance with this chapter, the commission shall 27 remit to each authorizer an oversight fee for each public 28 charter school it authorizes. The oversight fee shall be drawn 29 from and calculated as a uniform percentage of the per-student 30 operational funding allocated to each public charter school 31 under section 257A.10, subsection 2, not to exceed three 32 percent of each public charter school’s per-student funding 33 in a single school year. The commission shall establish a 34 statewide formula for authorizer funding, which shall apply 35 -9- LSB 5481YH (15) 83 kh/rj 9/ 52
H.F. 2424 uniformly to every authorizer in the state. The commission 1 shall submit the formula, and any succeeding amendments to 2 the formula, to the department of management, the general 3 assembly, and the governor, and shall provide any additional 4 information required by the department of management. 5 The formula shall be established by statute prior to the 6 appropriation or distribution of state funds for purposes of 7 establishing a public charter school. The commission may 8 establish a sliding scale for authorizer funding, with the 9 funding percentage decreasing after the authorizer has achieved 10 a certain threshold, such as after a certain number of years 11 of authorizing or after a certain number of schools has been 12 authorized. 13 b. An authorizer’s oversight fee shall not include any 14 costs incurred in delivering services that a public charter 15 school may purchase at its discretion from the authorizer. 16 The authorizer shall use its funding provided under this 17 section exclusively for the purpose of fulfilling authorizing 18 obligations in accordance with this chapter. 19 c. The commission shall annually review the effectiveness of 20 the state formula for authorizer funding, and shall adjust the 21 formula if necessary to maximize public benefit and strengthen 22 the implementation of this chapter. 23 7. Conflicts of interest. An employee, trustee, agent, 24 or representative of an authorizer shall not simultaneously 25 serve as an employee, trustee, agent, representative, vendor, 26 or contractor of a public charter school authorized by that 27 authorizer. 28 8. Exclusivity of authorizing functions and rights. A 29 governmental or other entity, other than those expressly 30 granted chartering authority as set forth in this chapter or 31 chapter 256F, shall not assume any charter authorizing function 32 or duty in any form, unless expressly allowed by law. 33 9. Services purchased from authorizer —— itemized accounting. 34 a. With the exception of oversight services as required by 35 -10- LSB 5481YH (15) 83 kh/rj 10/ 52
H.F. 2424 subsection 6, a public charter school shall not be required to 1 purchase services from its authorizer as a condition of charter 2 approval or of executing a charter contract, and any such 3 condition shall not be implied. 4 b. A public charter school may, at its discretion, choose 5 to purchase services from its authorizer. In such event, the 6 public charter school and authorizer shall execute an annual 7 service contract, separate from the charter contract, stating 8 the parties’ mutual agreement concerning any services to be 9 provided by the authorizer and any service fees to be charged 10 to the public charter school. An authorizer shall not charge 11 more than market rates for services provided to a public 12 charter school. 13 c. Within thirty days after the end of each fiscal year, 14 an authorizer shall provide to each public charter school it 15 oversees an itemized accounting of the actual costs of services 16 purchased by the public charter school from the authorizer. 17 Any difference between the amount initially charged to the 18 public charter school and the actual cost shall be reconciled 19 and paid to the owed party. If either party disputes the 20 itemized accounting, any charges included in such accounting, 21 or charges to either party, the disputing party is entitled to 22 request a third-party review at its own expense. The review 23 shall be conducted by the commission, whose determination shall 24 be final. 25 Sec. 7. NEW SECTION . 257A.6 Iowa public charter school 26 commission. 27 1. An Iowa public charter school commission is established 28 as an independent state agency with statewide chartering 29 jurisdiction and authority. 30 2. The mission of the commission shall be to authorize 31 high-quality public charter schools throughout the state, 32 particularly schools designed to expand opportunities for 33 at-risk students, consistent with the purposes of this chapter. 34 3. The commission shall consist of nine members serving 35 -11- LSB 5481YH (15) 83 kh/rj 11/ 52
H.F. 2424 three-year terms. Three members shall be appointed by the 1 governor; two members shall be appointed by the president of 2 the senate after consultation with the majority leader; one 3 member shall be appointed by the minority leader of the senate; 4 two members shall be appointed by the speaker of the house 5 of representatives; and one member shall be appointed by the 6 minority leader of the house of representatives. A member 7 shall not serve more than seven consecutive years. In making 8 the appointments, the governor, the president of the senate, 9 and the speaker of the house of representatives shall ensure 10 statewide geographic diversity among commission members. 11 4. Members appointed to the commission shall collectively 12 possess strong experience and expertise in public and 13 nonprofit governance, management and finance, public school 14 leadership, assessment, and curriculum and instruction, and 15 public education law. All members of the commission shall 16 have demonstrated understanding of and commitment to charter 17 schooling as a strategy for strengthening public education. 18 5. Notwithstanding subsection 3, to establish staggered 19 terms of office, each of the appointing authorities as provided 20 in subsection 3 shall appoint one member to an initial term 21 of one year, one member to an initial term of two years, and 22 one member to an initial term of three years. The initial 23 appointments shall be made no later than May 1, 2011. This 24 subsection is repealed July 1, 2014. 25 6. A member of the commission may be removed for any cause 26 that renders the member incapable or unfit to discharge the 27 duties of the office. Whenever a vacancy on the commission 28 exists, the original appointing authority shall appoint a 29 member for the remaining portion of the term. 30 7. The commission may receive and expend gifts, grants, 31 and donations of any kind from any public or private entity to 32 carry out the purposes of this chapter, subject to the terms 33 and conditions under which they are given, provided that all 34 such terms and conditions are permissible under law. 35 -12- LSB 5481YH (15) 83 kh/rj 12/ 52
H.F. 2424 8. The commission shall operate with dedicated resources 1 and staff qualified to execute the day-to-day responsibilities 2 of public charter school authorizing in accordance with this 3 chapter. 4 9. Chartering authority registration of local school boards. 5 a. The commission shall publicize to all local school boards 6 the opportunity to register with the state for chartering 7 authority within the local school districts they oversee. By 8 October 1 annually, the commission shall provide information 9 about the opportunity, including a registration deadline, to 10 all local school boards. To register as a charter authorizer 11 in its local school district, each interested local school 12 board shall submit the following information in a format to be 13 established by the commission: 14 (1) Written notification of intent to serve as a charter 15 authorizer in accordance with this chapter. 16 (2) An explanation of the local school board’s strategic 17 vision for chartering. 18 (3) An explanation of the local school board’s budget and 19 personnel capacity and commitment to execute the duties of 20 quality charter authorizing, in accordance with this chapter. 21 (4) An explanation of how the local school board will 22 solicit public charter school applicants, in accordance with 23 this chapter. 24 (5) A description or outline of the performance framework 25 the local school board will use to guide the establishment of a 26 charter contract and for ongoing oversight and evaluation of 27 public charter schools, consistent with the requirements of 28 this chapter. 29 (6) A draft of the local school board’s renewal, revocation, 30 and nonrenewal processes, consistent with section 257A.8, 31 subsection 3. 32 (7) A statement of assurance that the local school board 33 commits to serving as a charter authorizer in fulfillment of 34 the expectations, spirit, and intent of this chapter, and 35 -13- LSB 5481YH (15) 83 kh/rj 13/ 52
H.F. 2424 will fully participate in any authorizer training provided or 1 required by the state. 2 b. Within sixty days of receipt of a local school board’s 3 duly submitted registration materials, the commission shall 4 register the local school board as a charter authorizer 5 within the local school board’s local school district, and 6 shall provide the local school board a letter confirming its 7 registration as a charter authorizer. A local school board 8 shall not engage in any charter-authorizing functions without 9 current registration as a charter authorizer with the state. 10 Once registered, the local school board’s registration as a 11 charter authorizer shall continue from year to year, provided 12 that the local school board fulfills all charter-authorizing 13 duties and expectations set forth in this chapter and remains 14 an authorizer in good standing with the commission. 15 10. Chartering authority application for eligible entities. 16 a. The commission shall establish the annual application 17 and approval process, including cycles and deadlines during the 18 fiscal year, for all entities eligible to apply for chartering 19 authority. By December 1 of each year, the commission shall 20 make available information and guidelines for all eligible 21 entities concerning the opportunity to apply for chartering 22 authority under this chapter. The application process 23 shall require each interested eligible entity to submit an 24 application that clearly explains or presents the following 25 elements: 26 (1) Written notification of intent to serve as a charter 27 authorizer in accordance with this chapter. 28 (2) The applicant entity’s strategic vision for chartering. 29 (3) A plan to support the vision presented, including 30 explanation and evidence of the applicant entity’s budget 31 and personnel capacity and commitment to execute the 32 responsibilities of quality charter authorizing, in accordance 33 with this chapter. 34 (4) A draft or preliminary outline of the request for 35 -14- LSB 5481YH (15) 83 kh/rj 14/ 52
H.F. 2424 proposals that the applicant entity would, if approved as a 1 charter authorizer, issue to solicit public charter school 2 applicants, consistent with section 257A.7, subsection 1. 3 (5) A draft of the performance framework that the applicant 4 entity would, if approved as a charter authorizer, use to 5 guide the establishment of a charter contract and for ongoing 6 oversight and evaluation of public charter schools, consistent 7 with the requirements of this chapter. 8 (6) A draft of the applicant entity’s renewal, revocation, 9 and nonrenewal processes, consistent with 257A.8, subsection 3. 10 (7) A statement of assurance that the applicant entity 11 seeks to serve as a charter authorizer in fulfillment of the 12 expectations, spirit, and intent of this chapter, and that 13 if approved as a charter authorizer, the entity will fully 14 participate in any authorizer training provided or required by 15 the state. 16 (8) A statement of assurance that the applicant will 17 ensure public accountability and transparency in all matters 18 concerning their charter-authorizing practices, decisions, and 19 expenditures. 20 b. By February 1 of each year, the commission shall 21 decide whether to grant or deny chartering authority to each 22 applicant. The commission shall make its decisions on the 23 merits of each applicant’s proposal and plans. 24 c. Within ten days of the commission’s decision, the 25 commission shall execute a renewable authorizing contract with 26 each entity it has approved for chartering authority. The 27 initial term of each authorizing contract shall be six years. 28 The authorizing contract shall specify each approved entity’s 29 agreement to serve as a charter authorizer in accordance with 30 the expectations of this chapter, and shall specify additional 31 performance terms based on the applicant’s proposal and plan 32 for chartering. An approved entity shall not commence charter 33 authorizing without an authorizing contract in effect. 34 11. Oversight of public charter school authorizers. 35 -15- LSB 5481YH (15) 83 kh/rj 15/ 52
H.F. 2424 a. The commission shall be responsible for overseeing the 1 performance and effectiveness of all authorizers established 2 under this chapter. 3 b. In accordance with section 257A.5, subsection 5, every 4 authorizer shall be required to submit to the commission and 5 the general assembly an annual report. The commission shall, 6 by February 1 annually, communicate to every authorizer the 7 requirements for the format, content, and submission of the 8 annual report. 9 c. Persistently unsatisfactory performance of an 10 authorizer’s portfolio of public charter schools, a pattern 11 of well-founded complaints about the authorizer or its public 12 charter schools, or other objective circumstances may trigger a 13 special review by the commission. In reviewing or evaluating 14 the performance of authorizers the commission shall apply 15 nationally recognized principles and standards for quality 16 charter authorizing. If at any time the commission finds that 17 an authorizer is not in compliance with an existing charter 18 contract, its authorizing contract with the commission, or 19 the requirements of all authorizers under this chapter, the 20 commission shall notify the authorizer in writing of the 21 identified problems, and the authorizer shall have reasonable 22 opportunity to respond and remedy the problems. 23 d. If a local school board registered as an authorizer under 24 subsection 9 persists in violating a material provision of a 25 charter contract or fails to remedy other authorizing problems 26 after due notice from the commission, the commission shall 27 notify the local school board, within a reasonable amount of 28 time under the circumstances, that it intends to terminate the 29 local school board’s chartering authority unless the local 30 school board demonstrates a timely and satisfactory remedy for 31 the violation or deficiencies. 32 e. If an authorizer granted chartering authority under 33 subsection 10 persists, after due notice from the commission, 34 in violating a material provision of a charter contract or 35 -16- LSB 5481YH (15) 83 kh/rj 16/ 52
H.F. 2424 its authorizing contract with the commission, or fails to 1 remedy other identified authorizing problems, the commission 2 shall notify the authorizer, within a reasonable amount 3 of time under the circumstances, that it intends to revoke 4 the authorizer’s chartering authority unless the authorizer 5 demonstrates a timely and satisfactory remedy for the violation 6 or deficiencies. 7 f. In the event of revocation of any authorizer’s chartering 8 authority, the commission shall manage the timely and orderly 9 transfer of each charter contract held by that authorizer to 10 another authorizer in the state, with the mutual agreement 11 of each affected public charter school and proposed new 12 authorizer. The new authorizer shall assume the existing 13 charter contract for the remainder of the charter term. 14 Sec. 8. NEW SECTION . 257A.7 Application process. 15 1. Request for proposals. 16 a. To solicit, encourage, and guide the development of 17 quality public charter school applications, every authorizer 18 operating under this chapter shall issue and broadly publicize 19 a request for proposals by August 1 annually. The content and 20 dissemination of the request for proposals shall be consistent 21 with the purposes and requirements of this chapter. 22 b. Charter applicants may submit a proposal for a particular 23 public charter school to no more than one authorizer at a time. 24 c. The commission shall annually establish and disseminate 25 a statewide timeline for charter approval or denial decisions, 26 which shall apply to all authorizers in the state. 27 d. Each authorizer’s request for proposals shall present the 28 authorizer’s strategic vision for chartering, including a clear 29 statement of any preferences the authorizer wishes to grant to 30 applications that assist at-risk students. 31 e. The request for proposals shall include or otherwise 32 direct applicants to the performance framework that the 33 authorizer has developed for public charter school oversight 34 and evaluation in accordance with section 257A.8, subsection 1. 35 -17- LSB 5481YH (15) 83 kh/rj 17/ 52
H.F. 2424 f. The request for proposals shall include the criteria 1 that will guide the authorizer’s decision to approve or deny 2 a charter application. 3 g. The request for proposals shall state clear, 4 appropriately detailed questions as well as guidelines 5 concerning the format and content essential for applicants to 6 demonstrate the capacities necessary to establish and operate a 7 successful public charter school. 8 h. The request for proposals shall require charter 9 applications to provide or describe thoroughly, and each 10 charter application shall provide or describe thoroughly, all 11 of the following essential elements of the proposed school 12 plan: 13 (1) An executive summary. 14 (2) The mission and vision of the proposed public charter 15 school, including identification of the targeted student 16 population and the community the school hopes to serve. 17 (3) The location or geographic area proposed for the school. 18 (4) The grades to be served each year for the full term of 19 the charter contract. 20 (5) Minimum, planned, and maximum enrollment per grade per 21 year for the term of the charter contract. 22 (6) Evidence of need and community support for the proposed 23 public charter school. 24 (7) Background information on the proposed founding 25 governing board members and, if identified, the proposed school 26 leadership and management team. 27 (8) The school’s proposed calendar and sample daily 28 schedule. 29 (9) A description of the academic program aligned with 30 the comprehensive school improvement plan and reporting 31 requirements of section 256.7, subsection 21; the core 32 curriculum established pursuant to section 256.7, subsection 33 26; the core content standards established pursuant to section 34 256.7, subsection 28; and the state educational standards 35 -18- LSB 5481YH (15) 83 kh/rj 18/ 52
H.F. 2424 pursuant to section 256.11. 1 (10) A description of the school’s instructional design, 2 including the type of learning environment, class size and 3 structure, curriculum overview, and teaching methods. 4 (11) The school’s plan for using internal and external 5 assessments to measure and report student progress on the 6 performance framework developed by the authorizer in accordance 7 with section 257A.8, subsection 1. 8 (12) The school’s plans for identifying and successfully 9 serving students with disabilities, children requiring special 10 education pursuant to chapter 256B, students who are English 11 language learners, students who are academically behind, and 12 gifted students, including but not limited to compliance with 13 applicable laws and rules. 14 (13) A description of cocurricular or extracurricular 15 programs and how they will be funded and delivered. 16 (14) Plans and timelines for student recruitment and 17 enrollment, including lottery procedures. 18 (15) The school’s student discipline policies, including 19 those for children requiring special education as defined in 20 section 256B.2, subsection 1, paragraph “a” . 21 (16) An organization chart that clearly presents the public 22 charter school’s organizational structure, including lines of 23 authority and reporting between the governing board, staff, 24 any related advisory bodies or councils, and any external 25 organizations that will play a role in managing the school. 26 (17) A clear description of the roles and responsibilities 27 for the governing board, the public charter school’s leadership 28 and management team, and any other entities shown in the 29 organization chart. 30 (18) A staffing chart for the public charter school’s first 31 year, and a staffing plan for the term of the charter. 32 (19) Plans for recruiting and developing public charter 33 school leadership and staff. 34 (20) The public charter school’s leadership and teacher 35 -19- LSB 5481YH (15) 83 kh/rj 19/ 52
H.F. 2424 employment policies, including performance evaluation plans. 1 (21) Proposed governing bylaws. 2 (22) Explanations of any partnerships or contractual 3 relationships central to the public charter school’s operations 4 or mission. 5 (23) The public charter school’s plans for providing 6 transportation, food service, and all other significant 7 operational or ancillary services. 8 (24) Opportunities and expectations for parent involvement. 9 (25) A detailed public charter school start-up plan, 10 identifying tasks, timelines, and responsible individuals. 11 (26) Description of the public charter school’s financial 12 plan and policies, including financial controls and audit 13 requirements. 14 (27) A description of the insurance coverage the public 15 charter school will obtain. 16 (28) Start-up and five-year budgets with clearly stated 17 assumptions. 18 (29) Start-up and first-year cash-flow projections with 19 clearly stated assumptions. 20 (30) Evidence of anticipated fund-raising contributions, 21 if claimed in the application. 22 (31) A sound facilities plan, including backup or 23 contingency plans if appropriate. 24 i. In the case of an application to establish a public 25 charter school by converting an existing noncharter public 26 school to public charter school status, the request for 27 proposals shall additionally require the applicants to 28 demonstrate support for the proposed public charter school 29 conversion by a petition signed by a majority of teachers and 30 a petition signed by a majority of parents of students in the 31 existing noncharter public school. 32 j. In the case of a proposal to establish a virtual public 33 charter school, the request for proposals shall additionally 34 require the applicants to describe the proposed virtual public 35 -20- LSB 5481YH (15) 83 kh/rj 20/ 52
H.F. 2424 charter school’s system of course credits and how the school 1 will do the following: 2 (1) Monitor and verify full-time student enrollment, 3 student participation in a full course load, credit accrual, 4 and course completion. 5 (2) Monitor and verify student progress and performance 6 in each course through regular, proctored assessments and 7 submissions of coursework. 8 (3) Conduct parent-teacher conferences. 9 (4) Administer state-required assessments to all students 10 in a proctored setting. 11 k. In the case of a proposed public charter school that 12 intends to contract with an education service provider for 13 substantial educational services, management services, or both 14 types of services, the request for proposals shall additionally 15 require the applicants to do the following: 16 (1) Provide evidence of the education service provider’s 17 success in serving student populations similar to the targeted 18 population, including demonstrated academic achievement as well 19 as successful management of nonacademic school functions if 20 applicable. 21 (2) Provide a term sheet setting forth the proposed 22 duration of the service contract; roles and responsibilities 23 of the governing board, the school staff, and the service 24 provider; scope of services and resources to be provided 25 by the education service provider; performance evaluation 26 measures and timelines; compensation structure, including clear 27 identification of all fees to be paid to the education service 28 provider; methods of contract oversight and enforcement; 29 investment disclosure; and conditions for renewal and 30 termination of the contract. 31 (3) Disclose and explain any existing or potential 32 conflicts of interest between the public charter school 33 governing board and the proposed education service provider or 34 any affiliated business entities. 35 -21- LSB 5481YH (15) 83 kh/rj 21/ 52
H.F. 2424 l. In the case of a public charter school proposal from an 1 applicant that currently operates one or more schools in any 2 state or nation, the request for proposals shall additionally 3 require the applicant to provide evidence of past performance 4 and current capacity for growth. 5 2. Application decision-making process. 6 a. In reviewing and evaluating charter applications, 7 authorizers shall employ procedures, practices, and criteria 8 consistent with nationally recognized principles and standards 9 for quality charter authorizing. The application review 10 process shall include thorough evaluation of each written 11 charter application, an in-person interview with the applicant 12 group, and an opportunity in a public forum for local residents 13 to learn about and provide input on each application. 14 b. In deciding whether to approve charter applications, 15 authorizers shall do the following: 16 (1) Grant charters only to applicants that have 17 demonstrated competence in each element of the authorizer’s 18 published approval criteria and are likely to open and operate 19 a successful public charter school. 20 (2) Base decisions on documented evidence collected through 21 the application review process. 22 (3) Follow charter-granting policies and practices that are 23 transparent, based on merit, and avoid conflicts of interest or 24 any appearance of conflicts of interests. 25 c. No later than sixty days after the filing of a charter 26 application, the authorizer shall decide to approve or deny the 27 charter application. The authorizer shall adopt by resolution 28 all charter approval or denial decisions in an open meeting of 29 the authorizer’s governing board. 30 d. An approval decision may include, if appropriate, 31 reasonable conditions that the charter applicant must 32 meet before a charter contract may be executed pursuant to 33 subsection 5. 34 e. For any charter denial, the authorizer shall clearly 35 -22- LSB 5481YH (15) 83 kh/rj 22/ 52
H.F. 2424 state, for public record, its reasons for denial. A denied 1 applicant may subsequently reapply to that authorizer or apply 2 to any other authorizer in the state. 3 f. Within ten days of taking action to approve or deny 4 a charter application, the authorizer shall report to the 5 commission the action it has taken. The authorizer shall 6 provide a copy of the report to the charter applicant at the 7 same time that the report is submitted to the commission. The 8 report shall include a copy of the authorizer governing board’s 9 resolution setting forth the action taken and reasons for 10 the decision and assurances as to compliance with all of the 11 procedural requirements and application elements set forth in 12 this section. 13 3. Purposes and limitations of charter applications. The 14 purposes of the charter application are to present the proposed 15 public charter school’s academic and operational vision and 16 plans, demonstrate the applicant’s capacities to execute the 17 proposed vision and plans, and provide the authorizer a clear 18 basis for assessing the applicant’s plans and capacities. An 19 approved charter application shall not serve as the school’s 20 charter contract. 21 4. Initial charter term. An initial charter shall be 22 granted for a term of five operating years. The charter term 23 shall commence on the public charter school’s first day of 24 operation. An approved public charter school may delay its 25 opening for one school year in order to plan and prepare for 26 the school’s opening. If the public charter school requires 27 an opening delay of more than one school year, the school must 28 request an extension from its authorizer. The authorizer may 29 grant or deny the extension depending on the particular public 30 charter school’s circumstances. 31 5. Charter contracts. 32 a. Within ten days of approval of a charter application, 33 the authorizer and the governing board of the approved 34 public charter school shall execute a charter contract that 35 -23- LSB 5481YH (15) 83 kh/rj 23/ 52
H.F. 2424 clearly sets forth the academic and operational performance 1 expectations and measures by which the public charter school 2 will be judged and the administrative relationship between the 3 authorizer and public charter school, including each party’s 4 rights and duties. The performance expectations and measures 5 set forth in the charter contract shall include but need not 6 be limited to applicable federal and state accountability 7 requirements. The performance provisions may be refined or 8 amended by mutual agreement after the public charter school is 9 operating and has collected baseline achievement data for its 10 enrolled students. 11 b. The charter contract for a virtual public charter school 12 shall include description and agreement regarding the methods 13 by which the school will do the following: 14 (1) Monitor and verify full-time student enrollment, 15 student participation in a full course load, credit accrual, 16 and course completion. 17 (2) Monitor and verify student progress and performance 18 in each course through regular, proctored assessments and 19 submissions of coursework. 20 (3) Conduct parent-teacher conferences. 21 (4) Administer state-required assessments to all students 22 in a proctored setting. 23 c. The charter contract shall be signed by the president 24 of the authorizer’s governing board and the president of the 25 public charter school’s governing body. Within ten days of 26 executing a charter contract, the authorizer shall submit to 27 the commission written notification of the charter contract 28 execution, including a copy of the executed charter contract 29 and any attachments. 30 d. A public charter school shall not commence operations 31 without a charter contract executed in accordance with this 32 subsection and approved in an open meeting of the authorizer’s 33 governing board. 34 6. Preopening requirements or conditions. Authorizers may 35 -24- LSB 5481YH (15) 83 kh/rj 24/ 52
H.F. 2424 establish reasonable preopening requirements or conditions 1 to monitor the start-up progress of newly approved public 2 charter schools and ensure that they are prepared to open 3 smoothly on the date agreed, and to ensure that each school 4 meets all building, health, safety, insurance, and other legal 5 requirements for school opening. 6 Sec. 9. NEW SECTION . 257A.8 Accountability. 7 1. Performance framework. 8 a. The performance provisions within the charter contract 9 shall be based on a performance framework that clearly sets 10 forth the academic and operational performance indicators, 11 measures, and metrics that will guide the authorizer’s 12 evaluations of each public charter school. The performance 13 framework shall include indicators, measures, and metrics for, 14 at a minimum, all of the following: 15 (1) Student academic proficiency. 16 (2) Student academic growth. 17 (3) Achievement gaps in both proficiency and growth between 18 major student subgroups. 19 (4) Attendance. 20 (5) Recurrent enrollment from year to year. 21 (6) For secondary schools, postsecondary readiness. 22 (7) Financial performance and sustainability. 23 (8) Board performance and stewardship, including compliance 24 with all applicable laws, rules, and terms of the charter 25 contract. 26 b. Annual performance targets shall be set by each public 27 charter school in conjunction with its authorizer, and shall be 28 designed to help each school meet applicable federal, state, 29 and authorizer expectations. 30 c. The performance framework shall allow the inclusion of 31 additional rigorous, valid, and reliable indicators proposed by 32 a public charter school to augment external evaluations of its 33 performance, provided that the authorizer approves the quality 34 and rigor of such school-proposed indicators, and they are 35 -25- LSB 5481YH (15) 83 kh/rj 25/ 52
H.F. 2424 consistent with the purposes of this chapter. 1 d. The performance framework shall require the 2 disaggregation of all student performance data by major student 3 subgroups including but not limited to gender, race, poverty 4 status, special education status, English learner status, and 5 talented and gifted status. 6 e. For each public charter school it oversees, the 7 authorizer shall be responsible for collecting, analyzing, and 8 reporting all data from state assessments in accordance with 9 the performance framework. 10 f. Multiple public charter schools operating under a single 11 charter contract or overseen by a single governing board 12 shall be required to report their performance as separate, 13 individual schools, and each school shall be held independently 14 accountable for its performance. 15 2. Ongoing oversight and corrective actions. 16 a. An authorizer shall continually monitor the performance 17 and legal compliance of the public charter schools it oversees, 18 including collecting and analyzing data to support ongoing 19 evaluation according to the charter contract. Every authorizer 20 may conduct or require oversight activities that enable the 21 authorizer to fulfill its responsibilities under this chapter, 22 including conducting appropriate inquiries and investigations, 23 so long as those activities are consistent with this chapter, 24 adhere to the terms of the charter contract, and do not unduly 25 inhibit the autonomy granted to public charter schools. 26 b. Each authorizer shall annually publish and provide, as 27 part of its annual report to the commission and the general 28 assembly, a performance report for each public charter school 29 it oversees, in accordance with the performance framework set 30 forth in the charter contract and subsection 1. The authorizer 31 may require each public charter school it oversees to submit an 32 annual report to assist the authorizer in gathering complete 33 information about each school, consistent with the performance 34 framework. 35 -26- LSB 5481YH (15) 83 kh/rj 26/ 52
H.F. 2424 c. In the event that a public charter school’s performance 1 or legal compliance appears unsatisfactory, the authorizer 2 shall promptly notify the public charter school of the 3 perceived problem and provide reasonable opportunity for the 4 school to remedy the problem, unless the problem warrants 5 revocation in which case the revocation time frames will apply. 6 d. Every authorizer may take appropriate corrective actions 7 or exercise sanctions short of revocation in response to 8 apparent deficiencies in public charter school performance 9 or legal compliance. Such actions or sanctions may include, 10 if warranted, requiring a school to develop and execute a 11 corrective action plan within a specified time frame. 12 3. Renewals, revocations, and nonrenewals. 13 a. A charter may be renewed for successive five-year terms 14 of duration, although the authorizer may vary the term based 15 on the performance, demonstrated capacities, and particular 16 circumstances of each public charter school. An authorizer 17 may grant renewal with specific conditions for necessary 18 improvements to a public charter school. 19 b. No later than December 1 annually, the authorizer shall 20 issue a public charter school performance report and charter 21 renewal application guidance to any public charter school whose 22 charter will expire the following year. The performance report 23 shall summarize the public charter school’s performance record 24 to date, based on the data required by this chapter and the 25 charter contract, and shall provide notice of any weaknesses 26 or concerns perceived by the authorizer concerning the public 27 charter school that may jeopardize its position in seeking 28 renewal if not timely rectified. The public charter school 29 shall have thirty days to respond to the performance report and 30 submit any corrections or clarifications for the report. 31 c. The renewal application guidance shall, at a minimum, 32 provide an opportunity for the public charter school to do the 33 following: 34 (1) Present additional evidence, beyond the data contained 35 -27- LSB 5481YH (15) 83 kh/rj 27/ 52
H.F. 2424 in the performance report, supporting its case for charter 1 renewal. 2 (2) Describe improvements undertaken or planned for the 3 school. 4 (3) Detail the school’s plans for the next charter term. 5 d. The renewal application guidance shall include or refer 6 explicitly to the criteria that will guide the authorizer’s 7 renewal decisions, which shall be based on the performance 8 framework set forth in the charter contract and consistent with 9 this chapter. 10 e. No later than August 1, the governing board of a 11 public charter school seeking renewal beginning with the next 12 fiscal year shall submit a renewal application to the charter 13 authorizer pursuant to the renewal application guidance issued 14 by the authorizer. The authorizer shall rule by resolution 15 on the renewal application no later than sixty days after the 16 filing of the renewal application. 17 f. In making charter renewal decisions, every authorizer 18 shall do the following: 19 (1) Ground its decisions in evidence of the school’s 20 performance over the term of the charter contract in accordance 21 with the performance framework set forth in the charter 22 contract. 23 (2) Ensure that data used in making renewal decisions are 24 available to the school and the public. 25 (3) Provide a public report summarizing the evidence basis 26 for each decision. 27 g. A charter contract may be revoked at any time or not 28 renewed if the authorizer determines that the public charter 29 school did any of the following or otherwise failed to comply 30 with the provisions of this chapter: 31 (1) Commits a material and substantial violation of any of 32 the terms, conditions, standards, or procedures required under 33 this chapter or the charter contract. 34 (2) Fails to meet or make sufficient progress toward the 35 -28- LSB 5481YH (15) 83 kh/rj 28/ 52
H.F. 2424 performance expectations set forth in the charter contract. 1 (3) Fails to meet generally accepted standards of fiscal 2 management. 3 (4) Substantially violates any material provision of law 4 from which the public charter school was not exempted. 5 h. An authorizer must develop revocation and nonrenewal 6 processes that do the following: 7 (1) Provide the charter holders with a timely notification 8 of the prospect of revocation or nonrenewal and of the reasons 9 for such possible closure. 10 (2) Allow the charter holders a reasonable amount of time 11 in which to prepare a response. 12 (3) Provide the charter holders with an opportunity to 13 submit documents and give testimony challenging the rationale 14 for closure and in support of the continuation of the school at 15 an orderly proceeding held for that purpose. 16 (4) Allow the charter holders access to representation by 17 counsel and to call witnesses on their behalf. 18 (5) Permit the recording of such proceedings. 19 (6) After a reasonable period for deliberation, require 20 a final determination be made and conveyed in writing to the 21 charter holders. 22 i. If an authorizer revokes or does not renew a charter, 23 the authorizer shall clearly state, in a resolution of its 24 governing board, the reasons for the revocation or nonrenewal. 25 j. Within ten days of taking action to renew, not renew, or 26 revoke a charter, the authorizer shall report to the commission 27 the action taken, and shall provide a copy of the report to 28 the public charter school at the same time that the report is 29 submitted to the commission. The report shall include a copy 30 of the authorizer governing board’s resolution setting forth 31 the action taken and reasons for the decision and assurances as 32 to compliance with all of the requirements set forth in this 33 chapter. 34 4. School closure and dissolution. 35 -29- LSB 5481YH (15) 83 kh/rj 29/ 52
H.F. 2424 a. Prior to any public charter school closure decision, 1 an authorizer shall have developed a public charter school 2 closure protocol to ensure timely notification to parents, 3 orderly transition of students and student records to new 4 schools, and proper disposition of school funds, property, and 5 assets in accordance with the requirements of this chapter. 6 The protocol shall specify tasks, timelines, and responsible 7 parties, including delineating the respective duties of the 8 school and the authorizer. In the event of a public charter 9 school closure for any reason, the authorizer shall oversee and 10 work with the closing school to ensure a smooth and orderly 11 closure and transition for students and parents, as guided by 12 the closure protocol. 13 b. In the event of a public charter school closure for any 14 reason, the assets of the school shall be distributed first 15 to satisfy outstanding payroll obligations for employees of 16 the school, then to creditors of the school, and then to the 17 commission for transfer to the treasurer of state for deposit 18 in the general fund of the state. If the assets of the school 19 are insufficient to pay all parties to whom the school owes 20 compensation, the prioritization of the distribution of assets 21 may be determined by decree of a court of law. 22 5. Charter transfers. Transfer of a charter contract, and 23 of oversight of that public charter school, from one authorizer 24 to another before the expiration of the charter term shall not 25 be permitted except by special petition to the commission by a 26 public charter school or its authorizer. The commission shall 27 review such petitions on a case-by-case basis and may grant 28 transfer requests in response to special circumstances and 29 evidence that such a transfer would serve the best interests of 30 the public charter school’s students. 31 6. Annual report. On or before December 1 of each year 32 beginning in the first year after any public charter school 33 established pursuant to this chapter has been operating for a 34 full school year, the commission shall issue to the governor, 35 -30- LSB 5481YH (15) 83 kh/rj 30/ 52
H.F. 2424 the general assembly, and the public at large, an annual report 1 on the state’s public charter schools established pursuant 2 to this chapter, drawing from the annual reports submitted 3 by every authorizer as well as any additional relevant data 4 compiled by the commission, for the school year ending in the 5 preceding calendar year. The annual report shall include 6 a comparison of the performance of public charter school 7 students with the performance of academically, ethnically, 8 and economically comparable groups of students in noncharter 9 public schools. In addition, the annual report shall include 10 the commission’s assessment of the successes, challenges, and 11 areas for improvement in meeting the purposes of this chapter, 12 including the commission’s assessment of the sufficiency of 13 funding for public charter schools, the efficacy of the state 14 formula for authorizer funding, and any suggested changes in 15 state law or policy necessary to strengthen the public charter 16 schools established under this chapter. 17 Sec. 10. NEW SECTION . 257A.9 Operations and autonomy. 18 1. Legal status of public charter school. 19 a. Notwithstanding any provision of law to the contrary, to 20 the extent that any provision of this chapter is inconsistent 21 with any other state or local law, rule, or regulation, the 22 provisions of this chapter shall govern and be controlling. 23 b. A public charter school shall be a nonprofit education 24 organization. 25 c. A public charter school shall be subject to all federal 26 laws and authorities enumerated herein or arranged by charter 27 contract with the school’s authorizer, where such contracting 28 is consistent with applicable laws, rules, and regulations. 29 d. Except as provided in this chapter, a public charter 30 school shall not be subject to the state’s education statutes 31 or any state or local rule, regulation, policy, or procedure 32 relating to noncharter public schools within an applicable 33 local school district regardless of whether such rule, 34 regulation, policy, or procedure is established by the local 35 -31- LSB 5481YH (15) 83 kh/rj 31/ 52
H.F. 2424 school board, the state board of education, or the state 1 department of education. 2 e. A charter contract may include one or more schools, 3 to the extent approved by the authorizer and consistent with 4 applicable law. Each public charter school that is part of 5 a charter contract shall be separate and distinct from any 6 others. 7 f. A single governing board may hold one or more charter 8 contracts. Each public charter school that is part of a 9 charter contract shall be separate and distinct from any 10 others. 11 2. Local educational agency status. 12 a. A public charter school shall function as a local 13 educational agency. A public charter school shall be 14 responsible for meeting the requirements of a local educational 15 agency under applicable federal, state, and local laws, 16 including those relating to special education. Local 17 educational agency status shall not preclude a public charter 18 school from developing partnerships with districts for 19 services, resources, and programs by mutual agreement or formal 20 contract. 21 b. A public charter school shall have primary responsibility 22 for special education at the school, including identification 23 and service provision. It shall be responsible for meeting the 24 needs of enrolled students with disabilities. In instances 25 where a student’s individualized education program team 26 determines that a student’s needs are so profound that they 27 cannot be met in the public charter school and that the public 28 charter school cannot provide a free, appropriate public 29 education to that student, the student’s district of residence 30 shall place the student in a more appropriate setting. 31 Sec. 11. NEW SECTION . 257A.10 Funding. 32 1. Enrollment. The enrollment of students attending 33 public charter schools shall be included in the enrollment, 34 attendance, and, if applicable, count of children requiring 35 -32- LSB 5481YH (15) 83 kh/rj 32/ 52
H.F. 2424 special education of the school district in which the student 1 resides. The public charter school shall report all such data 2 to the school districts of residence in a timely manner. Each 3 school district shall report such enrollment, attendance, and 4 count of students with disabilities to the state department of 5 education. 6 2. Operational funding. The local school district of 7 residence shall pay directly to the public charter school 8 for each student enrolled in the public charter school who 9 resides in the school district an amount for that student 10 equal to one hundred percent of the amount calculated pursuant 11 to the state’s funding formula for local school districts, 12 notwithstanding the oversight fee reductions pursuant to 13 section 257A.5, subsection 6. 14 3. Payment schedule. Payments made pursuant to this section 15 shall be made by local school districts in twelve substantially 16 equal installments each year beginning on the first business 17 day of July and every month thereafter. Amounts payable 18 under this section shall be determined by the department of 19 education. Amounts payable to a public charter school in its 20 first year of operation shall be based on the projections of 21 initial-year enrollment set forth in the charter contract. 22 Such projections shall be reconciled with the actual enrollment 23 at the end of the public charter school’s first year of 24 operation, and any necessary adjustments shall be made to 25 payments during the school’s second year of operation. 26 4. Sanctions for failure to make payments. In the event 27 of the failure of a local school district to make payments 28 required by this section, the state treasurer shall deduct 29 from the state foundation aid paid under section 257.16 to 30 the school district an amount equal to the unpaid obligation. 31 The treasurer of state shall pay over such sum to the public 32 charter school upon certification of the department of 33 education. The department of education shall adopt rules to 34 implement the provisions of this section. 35 -33- LSB 5481YH (15) 83 kh/rj 33/ 52
H.F. 2424 5. Categorical funding. A local school district shall 1 direct the proportionate share of moneys generated under 2 federal and state categorical aid programs pursuant to section 3 257.10 to public charter schools serving students eligible for 4 such aid. A local school district shall ensure that public 5 charter schools with rapidly expanding enrollments are treated 6 equitably in the calculation and disbursement of all federal 7 and state categorical aid program dollars. Each public charter 8 school that serves students who may be eligible to receive 9 services provided through such programs shall comply with all 10 reporting requirements to receive the aid. 11 6. Special education funding. 12 a. A local school district shall pay directly to a public 13 charter school any federal or state aid attributable to a 14 student with a disability attending the school. 15 b. At either party’s request, a public charter school 16 and its authorizer may negotiate and include in the charter 17 contract alternate arrangements for the provision of and 18 payment for special education services. 19 7. Generally accepted accounting principles —— independent 20 audit. 21 a. A public charter school shall adhere to generally 22 accepted accounting principles. 23 b. A public charter school shall annually engage an external 24 auditor to do an independent audit of the school’s finances. A 25 public charter school shall file a copy of each audit report 26 and accompanying management letter to its authorizer by October 27 1. 28 8. Transportation funding. 29 a. The department of education shall disburse state 30 transportation funding pursuant to chapter 285 to a local 31 school district for each of the public charter school students 32 residing in the local school district on the same basis and 33 in the same manner as it is paid to local school districts. 34 A local school district shall disburse state transportation 35 -34- LSB 5481YH (15) 83 kh/rj 34/ 52
H.F. 2424 funding to a public charter school in proportion to the amount 1 generated by the school’s students who reside in the local 2 school district. 3 b. A public charter school may enter into a contract 4 with a local school district or private provider to provide 5 transportation to the school’s students. 6 9. Budget reserves. Any moneys received by a public charter 7 school from any source and remaining in the public charter 8 school’s accounts at the end of any budget year shall remain 9 in the public charter school’s accounts for use by the public 10 charter school during subsequent budget years. 11 10. Ability to accept gifts, donations, and grants. This 12 chapter shall not be construed to prohibit any person or 13 organization from providing funding or other assistance to the 14 establishment or operation of a public charter school. The 15 governing board of a public charter school may accept gifts, 16 donations, and grants of any kind made to the public charter 17 school and to expend or use such gifts, donations, and grants 18 in accordance with the conditions prescribed by the donor; 19 provided, however, that a gift, donation, or grant shall not 20 be accepted if subject to a condition that is contrary to any 21 provision of law or term of the charter contract. 22 Sec. 12. NEW SECTION . 257A.11 Facilities. 23 1. Per-student facility allowance. 24 a. The per-student facility allowance for public charter 25 schools shall be determined as follows: the total capital 26 costs for public schools in the state over the past five years 27 shall be divided by the total student count in the state over 28 the past five years. 29 b. The actual facility allowance payments to be received 30 by each public charter school shall be determined as follows: 31 the per-student facility allowance shall be multiplied by 32 the number of students estimated to be attending each public 33 charter school. 34 2. Public charter school facility grant program. 35 -35- LSB 5481YH (15) 83 kh/rj 35/ 52
H.F. 2424 a. The state board of education shall establish, within 1 available bond authorizations, a grant program to assist public 2 charter schools in financing school building projects, general 3 improvements to school buildings, and repayment of debt for 4 school building projects. Public charter schools may apply for 5 such grants to the state board of education at such time and in 6 such manner as the state board of education prescribes. The 7 state board of education shall give preference to applications 8 that provide for matching funds from nonstate sources. 9 b. For the purposes described in paragraph “a” , the Iowa 10 finance authority shall have the power, from time to time, to 11 authorize the issuance of bonds of the state in one or more 12 series and in principal amounts not exceeding in the aggregate 13 amounts to be determined by the school budget review committee. 14 c. The proceeds of the sale of bonds under paragraph “b” , 15 to the extent of the amount specified by the Iowa finance 16 authority pursuant to paragraph “b” shall be used by the state 17 board of education for the purpose of grants pursuant to 18 paragraph “a” . 19 d. Bonds issued pursuant to this section shall be general 20 obligations of the state and the full faith and credit of the 21 state are pledged for the payment of the principal of and 22 interest on said bonds as the same become due, and accordingly 23 and as part of the contract of the state with the holders of 24 said bonds, appropriation of all amounts necessary for punctual 25 payment of such principal and interest is hereby made, and the 26 treasurer of state shall pay such principal and interest as the 27 same become due. 28 3. Public charter school facility revolving loan program. 29 a. A public charter school facility revolving loan program 30 is created in the state treasury under the control of the 31 state board of education. The public charter school facility 32 revolving loan program shall be comprised of federal funds 33 obtained by the state for public charter schools and any other 34 funds appropriated or transferred to the fund by the state. 35 -36- LSB 5481YH (15) 83 kh/rj 36/ 52
H.F. 2424 Funds appropriated to the public charter school facility 1 revolving loan program shall remain available for the purposes 2 of the program until reappropriated or reverted by the general 3 assembly. 4 b. Loans may be made from moneys in the public charter 5 school facility revolving loan program to a public charter 6 school, upon application by a public charter school and 7 approval by the state board of education or its designee. 8 Money loaned to a public charter school pursuant to this 9 section shall be for construction, purchase, renovation, and 10 maintenance of public charter school facilities. A loan 11 to a public charter school shall not exceed the number of 12 years allowed for loan payment or the loan amount specified 13 by the Iowa finance authority. A public charter school may 14 receive multiple loans from the public charter school facility 15 revolving loan program, as long as the total number of years 16 allowed for loan payment or the loan amount is not greater than 17 specified by the Iowa finance authority. 18 c. The Iowa finance authority or its designee may consider 19 all of the following when making a determination as to the 20 approval of a public charter school’s loan application: 21 (1) Soundness of the financial business plans of the 22 applicant public charter school. 23 (2) Availability to the public charter school of other 24 sources of funding. 25 (3) Geographic distribution of loans made from the public 26 charter school facility revolving loan program. 27 (4) The impact that loans received pursuant to this section 28 will have on the public charter school’s receipt of other 29 private and public financing. 30 (5) Plans for innovatively enhancing or leveraging funds 31 received pursuant to this section, such as loan guarantees or 32 other types of credit enhancements. 33 (6) The financial needs of the public charter school. 34 d. Commencing with the first fiscal year following the 35 -37- LSB 5481YH (15) 83 kh/rj 37/ 52
H.F. 2424 fiscal year the public charter school receives the loan, the 1 department of management shall deduct from apportionments made 2 to the public charter school, as appropriate, an amount equal 3 to the annual repayment of the amount loaned to the public 4 charter school under this section and pay the same amount into 5 the public charter school facility revolving loan account in 6 the state treasury. Repayment of the full amount loaned to 7 the public charter school shall be deducted by the department 8 of management in equal annual amounts over a number of years 9 agreed upon between the public charter school and the state 10 board of education or its designee, not to exceed the number of 11 years allowed for loan payment specified by the Iowa finance 12 authority for any loan. 13 e. Notwithstanding other provisions of law, a loan may be 14 made to a public charter school pursuant to this section only 15 in the case of a public charter school that is incorporated. 16 f. Notwithstanding other provisions of law, in the case 17 of default of a loan made directly to a public charter school 18 pursuant to this section, the public charter school shall be 19 solely liable for repayment of the loan. 20 4. Bonding authority. 21 a. As used in this subsection and subsection 5, unless the 22 context otherwise requires: 23 (1) “Authority” means the Iowa finance authority. 24 (2) “Bonds” means revenue bonds which are payable solely as 25 provided in this subsection. 26 b. The authority shall cooperate with the governing board 27 of public charter schools established pursuant to this chapter 28 and private developers, acting in conjunction with a governing 29 body to build housing facilities in connection with the public 30 charter school, in the creation, administration, and funding 31 of a public charter school bond program to finance school 32 facilities in connection with the public charter school. 33 c. The authority may issue its bonds and notes for the 34 purpose of funding the nonrecurring cost of acquiring, 35 -38- LSB 5481YH (15) 83 kh/rj 38/ 52
H.F. 2424 constructing, and equipping a public charter school-related 1 facility. 2 d. The authority may issue its bonds and notes for the 3 purposes of this chapter and may enter into one or more lending 4 agreements or purchase agreements with one or more bondholders 5 or noteholders containing the terms and conditions of the 6 repayment of and the security for the bonds or notes. The 7 authority and the bondholders or noteholders or a trustee 8 agent designated by the authority may enter into agreements to 9 provide for any of the following: 10 (1) That the proceeds of the bonds and notes and the 11 investments of the proceeds may be received, held, and 12 disbursed by the authority or by a trustee or agent designated 13 by the authority. 14 (2) That the bondholders or noteholders or a trustee or 15 agent designated by the authority may collect, invest, and 16 apply the amount payable under the loan agreements or any 17 other instruments securing the debt obligations under the loan 18 agreements. 19 (3) That the bondholders or noteholders may enforce the 20 remedies provided in the loan agreements or other instruments 21 on their own behalf without the appointment or designation of a 22 trustee. If there is a default in the principal of or interest 23 on the bonds or notes or in the performance of any agreement 24 contained in the loan agreements or other instruments, the 25 payment or performance may be enforced in accordance with the 26 loan agreement or other instrument. 27 (4) Other terms and conditions as deemed necessary or 28 appropriate by the authority. 29 e. The powers granted the authority under this subsection 30 are in addition to other powers contained in chapter 16. 31 The authority shall adopt rules pursuant to chapter 17A to 32 implement this subsection. All other provisions of chapter 16, 33 except section 16.28, subsection 4, apply to bonds or notes 34 issued and powers granted to the authority under this section, 35 -39- LSB 5481YH (15) 83 kh/rj 39/ 52
H.F. 2424 except to the extent they are inconsistent with this section. 1 f. All bonds or notes issued by the authority in connection 2 with the program are exempt from taxation by this state and the 3 interest on the bonds or notes is exempt from state income tax, 4 both personal and corporate. 5 g. The authority may provide in the resolution, trust 6 agreement, or other instrument authorizing the issuance of its 7 bonds or notes pursuant to this subsection that the principal 8 of, premium, and interest on the bonds or notes are payable 9 from any of the following and may pledge the same to its bonds 10 and notes: 11 (1) From the net rents, profits, and income arising from the 12 project or property pledged or mortgaged. 13 (2) From the net rents, profits, and income which has 14 not been pledged for other purposes arising from any similar 15 facility under the control and management of the public charter 16 school or the public charter school’s governing body. 17 (3) From the funding received by the public charter school 18 governing board pursuant to section 257A.10. 19 (4) From the amounts on deposit in the name of a public 20 charter school or a private developer or operator of a public 21 charter school facility, including but not limited to revenues 22 from a purchase, rental, or lease agreement, loan agreement, or 23 other facility charges. 24 (5) From the amounts payable to the authority, the public 25 charter school or the governing board, or a private developer 26 or operator, pursuant to a loan agreement, lease agreement, or 27 sale agreement. 28 (6) From funds received pursuant to subsection 6. 29 (7) From the other funds or accounts established by the 30 authority in connection with the program or the sale and 31 issuance of its bonds or notes. 32 h. No obligation created hereunder shall ever be or become 33 a charge against the state of Iowa but all such obligations, 34 including principal and interest, shall be payable solely as 35 -40- LSB 5481YH (15) 83 kh/rj 40/ 52
H.F. 2424 provided in this subsection. 1 i. The authority may establish reserve funds to secure 2 one or more issues of its bonds or notes. The authority may 3 deposit in a reserve fund established under this subsection, 4 the proceeds of the sale of its bonds or notes and other money 5 which is made available from any other source. 6 j. A pledge made in respect of bonds or notes is valid 7 and binding from the time the pledge is made. The money or 8 property so pledged and received after the pledge by the 9 authority is immediately subject to the lien of the pledge 10 without physical delivery or further act. The lien of the 11 pledge is valid and binding as against all persons having 12 claims of any kind in tort, contract, or otherwise against 13 the authority whether or not the parties have notice of the 14 lien. Neither the resolution, trust agreement, nor any other 15 instrument by which a pledge is created needs to be recorded, 16 filed, or perfected under chapter 554, to be valid, binding, or 17 effective against all persons. 18 k. The members of the authority or persons executing the 19 bonds or notes are not personally liable on the bonds or notes 20 and are not subject to personal liability or accountability by 21 reason of the issuance of the bonds or notes. 22 l. The bonds or notes issued by the authority are not 23 an indebtedness or other liability of the state or of a 24 political subdivision of the state within the meaning of any 25 constitutional or statutory debt limitations, but are special 26 obligations of the authority and are payable solely from 27 the income and receipts or other funds or property of the 28 public charter school, governing body, or private developer, 29 and the amounts on deposit in a public charter school bond 30 fund, and the amounts payable to the authority under its loan 31 agreements with a public charter school, governing body, or 32 private developer to the extent that the amounts are designated 33 in the resolution, trust agreement, or other instrument of 34 the authority authorizing the issuance of the bonds or notes 35 -41- LSB 5481YH (15) 83 kh/rj 41/ 52
H.F. 2424 as being available as security for the bonds or notes. The 1 authority shall not pledge the faith or credit of the state 2 or of a political subdivision of the state to the payment of 3 any bonds or notes. The issuance of any bonds or notes by 4 the authority does not directly, indirectly, or contingently 5 obligate the state or a political subdivision of the state 6 to apply money from, or levy, or pledge any form of taxation 7 whatever to the payment of the bonds or notes. 8 5. Moral obligation of the state. 9 a. The general assembly hereby finds and declares that its 10 intent in enacting this section is to support public charter 11 schools and public charter school capital construction by 12 helping qualified public charter schools that choose to have 13 the authority issue bonds on their behalf obtain more favorable 14 financing terms for the bonds. 15 b. If the authority has issued bonds on behalf of a public 16 charter school that defaults on its debt service payment 17 obligations, the board of directors of the authority shall 18 submit to the governor a certificate certifying any amount 19 of moneys required to fulfill the school’s debt service 20 payment obligations. The governor shall submit a request for 21 appropriations in an amount sufficient to fulfill the school’s 22 debt service payment obligations and the general assembly may, 23 but shall not be required to, appropriate moneys for that 24 purpose. If, in its sole discretion, the general assembly 25 appropriates any moneys for that purpose, the aggregate 26 outstanding principal amount of bonds for which moneys may 27 be appropriated for said purpose shall not exceed an amount 28 specified by the Iowa finance authority. 29 6. Access to state facilities programs for noncharter public 30 schools. 31 a. A public charter school shall have access to any school 32 infrastructure funds available under chapter 292 and any school 33 infrastructure safety funds available under section 423E.6. 34 b. The school district of residence shall pay directly to 35 -42- LSB 5481YH (15) 83 kh/rj 42/ 52
H.F. 2424 the public charter school for each student enrolled in the 1 public charter school who resides in the school district an 2 amount for that student equal to one hundred percent of the 3 amount calculated pursuant to the secure an advanced vision for 4 education fund distribution formula pursuant to section 423E.4. 5 7. Credit enhancement fund. 6 a. A credit enhancement fund under the control of the 7 state board of education is created in the state treasury if 8 the general assembly appropriates funds to the department of 9 education for purposes of this subsection. 10 b. Using the moneys deposited in the fund, the state 11 board of education shall make and disburse grants to eligible 12 nonprofit corporations to carry out the purposes described in 13 paragraph “c” . 14 c. The recipient of a grant under this fund shall use the 15 moneys provided under the grant to carry out activities to 16 assist public charter schools in doing the following: 17 (1) Obtaining financing to acquire interests in real 18 property, including but not limited to purchase, lease, 19 or donation, and including financing to cover planning, 20 development, and other incidental costs. 21 (2) Obtaining financing for construction of facilities or 22 the renovation, repair, or alteration of existing property 23 or facilities, including but not limited to the purchase or 24 replacement of fixtures and equipment; including financing to 25 cover planning, development, and other incidental costs. 26 (3) Enhancing the availability of loans, including but not 27 limited to mortgages, and bonds. 28 (4) Obtaining lease guarantees. 29 d. Funds provided under a grant under this subsection shall 30 not be used by a recipient to make direct loans or grants to 31 public charter schools. 32 8. Access to district facilities and land. A public charter 33 school shall have a right of first refusal to purchase or lease 34 at or below fair market value a closed public school facility 35 -43- LSB 5481YH (15) 83 kh/rj 43/ 52
H.F. 2424 or property or unused portions of a public school facility or 1 property located in a local school district from which it draws 2 its students if the local school district decides to sell or 3 lease the public school facility or property. 4 9. Contracting for use of facilities. A public charter 5 school may negotiate and contract at or below fair market value 6 with a local school district, the governing body of a state 7 college or university or public community college, or any other 8 public or for-profit or nonprofit private entity for the use of 9 a facility for a school building. 10 10. Use of other facilities under preexisting zoning and 11 land use designations. Library, community service, museum, 12 performing arts, theatre, cinema, church, community college, 13 college, and university facilities may provide space to public 14 charter schools within their facilities under their preexisting 15 zoning and land use designations. 16 11. Exemptions from property taxes and certain fees. 17 a. Any facility, or portion thereof, used to house a public 18 charter school shall be exempt from property taxes. 19 b. Public charter school facilities are exempt from 20 assessments of fees for building permits, fees for building and 21 occupational licenses, impact fees, service availability fees, 22 and assessments for special benefits. 23 Sec. 13. IOWA PUBLIC CHARTER SCHOOL COMMISSION. There is 24 appropriated from the general fund of the state to the Iowa 25 public charter school commission for the fiscal year beginning 26 July 1, 2010, and ending June 30, 2011, the following amount, 27 or so much thereof as is necessary, to be used for the purposes 28 designated: 29 For purposes of administering chapter 257A, if enacted 30 by this Act, including salaries, support, maintenance, and 31 miscellaneous purposes: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 33 EXPLANATION 34 This bill establishes the “Public Charter Schools Act”, and 35 -44- LSB 5481YH (15) 83 kh/rj 44/ 52
H.F. 2424 creates the Iowa public charter school commission as a public 1 charter school authorizer oversight body. Local school boards, 2 accredited public and private postsecondary institutions, 3 cities, and governing boards of nonprofit or charitable 4 organizations may apply to the commission for authorizing 5 ability. The bill appropriates $250,000 from the general fund 6 of the state to the commission for fiscal year 2010-2011 for 7 purposes of administering the Code chapter. 8 The bill includes legislative findings and declarations, 9 and provides for the establishment of virtual public charter 10 schools that will offer educational services predominantly 11 through the internet. 12 A public charter school shall be open to any student 13 residing in the state and may limit admission to students 14 within a given age group or grade level and may be organized 15 around a special emphasis, theme, or concept as stated in the 16 school’s application. A public charter school must enroll all 17 students who wish to attend the school, unless the number of 18 students exceeds the capacity of a program, class, grade level, 19 or building. The bill includes provisions for enrollment 20 preferences and credit transferability. 21 Eligible public charter school authorizers are responsible 22 for soliciting and evaluating charter applications, approving 23 quality charter applications, declining to approve weak or 24 inadequate charter applications, negotiating and executing 25 sound charter contracts with each approved public charter 26 school, monitoring the performance and legal compliance 27 of public charter schools, and determining whether each 28 charter contract merits renewal, nonrenewal, or revocation. 29 An authorizing entity may delegate its duties to offices, 30 employees, and contractors. 31 To cover authorizer costs for overseeing public charter 32 schools, the commission shall remit to each authorizer an 33 oversight fee for each public charter school it authorizes. 34 The oversight fee shall be drawn from and calculated as a 35 -45- LSB 5481YH (15) 83 kh/rj 45/ 52
H.F. 2424 uniform percentage of the per-student operational funding 1 allocated to each public charter school, not to exceed 3 2 percent of each public charter school’s per-student funding in 3 a single school year. 4 The commission consists of nine members serving three-year 5 terms. Three members shall be appointed by the governor; three 6 members shall be appointed by the president of the senate; 7 and three members shall be appointed by the speaker of the 8 house of representatives. The commission must establish the 9 annual application and approval process, including cycles and 10 deadlines during the fiscal year, for all entities eligible to 11 apply for chartering authority. The commission is responsible 12 for overseeing the performance and effectiveness of all 13 authorizers. 14 The commission shall establish a statewide formula for 15 authorizer funding, which shall apply uniformly to every 16 authorizer in the state. The commission shall submit the 17 formula, and any succeeding amendments to the formula, to 18 the department of management, the general assembly, and the 19 governor, and shall provide any additional information required 20 by the department. The formula shall be established by 21 statute prior to the appropriation or distribution of state 22 funds for purposes of establishing a public charter school. 23 The commission may establish a sliding scale for authorizer 24 funding, with the funding percentage decreasing after the 25 authorizer has achieved a certain threshold, such as after 26 a certain number of years of authorizing or after a certain 27 number of schools has been authorized. 28 Funding is provided through the school district of 29 residence, as the enrollment of students attending public 30 charter schools must be included in the enrollment, attendance, 31 and, if applicable, count of children requiring special 32 education of the school district in which the student resides. 33 The public charter school shall report all such data to the 34 school districts of residence in a timely manner. Each school 35 -46- LSB 5481YH (15) 83 kh/rj 46/ 52
H.F. 2424 district shall report such enrollment, attendance, and count 1 of students with disabilities to the state department of 2 education. The school district must pay directly to the public 3 charter school for each student enrolled in the public charter 4 school who resides in the school district 100 percent of the 5 amount calculated under the state’s funding formula, and any 6 categorical funds, for that student. A school district shall 7 pay directly to a public charter school any federal or state 8 aid attributable to a student with a disability attending the 9 school. 10 Every authorizer is required to submit to the commission 11 and the general assembly an annual report. Persistently 12 unsatisfactory performance of an authorizer’s portfolio of 13 public charter schools, a pattern of well-founded complaints 14 about the authorizer or its public charter schools, or other 15 objective circumstances may trigger a special review by the 16 commission. 17 If an authorizer granted chartering authority persists, 18 after due notice from the commission, in violating a 19 material provision of a charter contract or its authorizing 20 contract with the commission, or fails to remedy other 21 identified authorizing problems, the commission shall notify 22 the authorizer that it intends to revoke the authorizer’s 23 chartering authority unless the authorizer demonstrates 24 a timely and satisfactory remedy for the violation or 25 deficiencies. 26 To solicit, encourage, and guide the development of quality 27 public charter school applications, every authorizer must 28 issue and broadly publicize a request for proposals. Charter 29 applicants may submit a proposal for a particular public 30 charter school to no more than one authorizer at a time. The 31 bill includes a list of what each charter application must 32 include. 33 In the case of a proposal to establish a virtual public 34 charter school, the request for proposals for applications 35 -47- LSB 5481YH (15) 83 kh/rj 47/ 52
H.F. 2424 shall additionally require the applicants to describe the 1 proposed school’s system of course credits and how the school 2 will monitor and verify full-time student enrollment, student 3 participation in a full course load, credit accrual, and course 4 completion; monitor and verify student progress and performance 5 in each course through regular, proctored assessments and 6 submissions of coursework; conduct parent-teacher conferences, 7 and administer state-required assessments to all students in a 8 proctored setting. 9 A proposed public charter school may contract with an 10 education service provider for substantial educational 11 services, management services, or both types of services. 12 In reviewing and evaluating charter applications, 13 authorizers must employ procedures, practices, and criteria 14 consistent with nationally recognized principles and standards 15 for quality charter authorizing. The application review 16 process shall include thorough evaluation of each written 17 charter application, an in-person interview with the applicant 18 group, and an opportunity in a public forum for local residents 19 to learn about and provide input on each application. 20 In deciding whether to approve charter applications, 21 authorizers must grant charters only to applicants that have 22 demonstrated competence in each element of the authorizer’s 23 published approval criteria and are likely to open and 24 operate a successful public charter school; base decisions on 25 documented evidence collected through the application review 26 process; and follow charter-granting policies and practices 27 that are transparent, based on merit, and avoid conflicts of 28 interest or any appearance of conflicts of interests. 29 For any charter denial, the authorizer shall clearly state, 30 for public record, its reasons for denial. A denied applicant 31 may subsequently reapply to that authorizer or apply to any 32 other authorizer in the state. 33 An initial charter shall be granted for a term of five 34 operating years. 35 -48- LSB 5481YH (15) 83 kh/rj 48/ 52
H.F. 2424 The performance provisions within the charter contract shall 1 be based on a performance framework that clearly sets forth 2 the academic and operational performance indicators, measures, 3 and metrics that will guide the authorizer’s evaluations of 4 each public charter school. The performance framework includes 5 indicators and measures for student academic proficiency, 6 student academic growth, achievement gaps in both proficiency 7 and growth between major student subgroups, attendance, 8 recurrent enrollment from year to year, postsecondary 9 readiness, financial performance and sustainability, and board 10 performance and stewardship. 11 The bill provides for ongoing oversight and corrective 12 actions. Every authorizer is authorized to take appropriate 13 corrective actions or exercise sanctions short of revocation 14 in response to apparent deficiencies in public charter school 15 performance or legal compliance. Such actions or sanctions 16 may include, if warranted, requiring a school to develop and 17 execute a corrective action plan within a specified time frame. 18 A charter may be renewed for successive five-year terms of 19 duration. A charter contract may be revoked at any time or not 20 renewed if the authorizer determines that the public charter 21 school commits a material and substantial violation of any of 22 the terms, conditions, standards, or procedures required under 23 the new Code chapter or the charter contract, fails to meet or 24 make sufficient progress toward the performance expectations 25 set forth in the charter contract, fails to meet generally 26 accepted standards of fiscal management, or substantially 27 violates any material provision of law from which the public 28 charter school was not exempted. 29 Prior to any public charter school closure decision, an 30 authorizer must have developed a public charter school closure 31 protocol to ensure timely notification to parents, orderly 32 transition of students and student records to new schools, and 33 proper disposition of school funds, property, and assets. In 34 the event of a public charter school closure, the assets of 35 -49- LSB 5481YH (15) 83 kh/rj 49/ 52
H.F. 2424 the school shall be distributed first to satisfy outstanding 1 payroll obligations for employees of the school, then to 2 creditors of the school, and then to the commission for 3 transfer to the treasurer of state for deposit in the state 4 general fund. 5 On or before December 1, the commission must issue to the 6 governor, the general assembly, and the public at large, an 7 annual report on the state’s public charter schools, drawing 8 from the annual reports submitted by every authorizer as well 9 as any additional relevant data compiled by the commission, for 10 the school year ending in the preceding calendar year. 11 A public charter school shall be a nonprofit education 12 organization subject to all federal laws. For purposes of 13 federal programs and funding, a public charter school shall 14 function as a local educational agency. 15 The per-student facility allowance for public charter 16 schools shall be the total capital costs for public schools in 17 the state over the past five years divided by the total student 18 count in the state over the past five years. The actual 19 facility allowance payments to be received by each public 20 charter school shall be determined as follows: the per-student 21 facility allowance shall be multiplied by the number of 22 students estimated to be attending each public charter school. 23 The bill directs the state board of education to establish, 24 within available bond authorizations, a grant program to assist 25 public charter schools in financing school building projects, 26 general improvements to school buildings, and repayment of 27 debt for school building projects. Public charter schools 28 may apply for such grants to the state board of education at 29 such time and in such manner as the state board of education 30 prescribes. The state board of education shall give preference 31 to applications that provide for matching funds from nonstate 32 sources. 33 The bill authorizes the Iowa finance authority to issue 34 bonds in aggregate amounts to be determined by the school 35 -50- LSB 5481YH (15) 83 kh/rj 50/ 52
H.F. 2424 budget review committee. The proceeds of the sale of bonds 1 shall be used by the state board of education for public 2 charter school facilities. The bill establishes a public 3 charter school facility revolving loan program in the state 4 treasury under the control of the state board of education 5 comprised of federal funds obtained by the state for public 6 charter schools and any other funds appropriated or transferred 7 to the fund by the state. Loans may be made from moneys in 8 the revolving loan program to a public charter school. Money 9 loaned to a public charter school shall be for construction, 10 purchase, renovation, and maintenance of public charter school 11 facilities. 12 A public charter school shall have access to any school 13 infrastructure funds available under Code chapter 292, any 14 school infrastructure safety funds available under Code section 15 423E.6, and the school district of residence shall pay directly 16 to the public charter school for each student enrolled in the 17 public charter school who resides in the school district an 18 amount for that student equal to 100 percent of the amount 19 calculated pursuant to the secure an advanced vision for 20 education fund distribution formula pursuant to Code section 21 423E.4. 22 The bill creates in the state treasury, if the general 23 assembly appropriates funds to the department of education 24 for purposes of the fund, a credit enhancement fund under the 25 control of the state board of education. Fund moneys can be 26 used by the state board to make and disburse grants to eligible 27 nonprofit corporations to carry out activities to assist public 28 charter schools in obtaining financing to acquire interests 29 in real property and for construction of facilities or the 30 renovation, repair, or alteration of existing property or 31 facilities; for enhancing the availability of loans; and for 32 obtaining lease guarantees. 33 A public charter school is given first refusal rights to 34 purchase or lease at or below fair market value a closed public 35 -51- LSB 5481YH (15) 83 kh/rj 51/ 52
H.F. 2424 school facility or property or unused portions of a public 1 school facility or property located in a school district from 2 which it draws its students if the school district decides to 3 sell or lease the public school facility or property. 4 A public charter school may negotiate and contract at or 5 below fair market value with a school district, the governing 6 body of a state college or university or public community 7 college, or any other public or for-profit or nonprofit private 8 entity for the use of facility for a school building. 9 Any facility used to house a public charter school is exempt 10 from property taxes and from assessments of fees for building 11 permits, fees for building and occupational licenses, impact 12 fees, service availability fees, and assessments for special 13 benefits. 14 -52- LSB 5481YH (15) 83 kh/rj 52/ 52