House File 2361 - Introduced HOUSE FILE 2361 BY FORD A BILL FOR An Act providing for the establishment, funding, and bonding 1 authority of a state charter school institute and institute 2 charter schools. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5230YH (12) 83 kh/rj
H.F. 2361 Section 1. Section 257.31, subsection 3, Code Supplement 1 2009, is amended to read as follows: 2 3. The committee shall review the proposed budget and 3 certified budget of each school district and institute charter 4 school , and may make recommendations to a school district, the 5 department of education, the state board of education, and to 6 the charter school institute . The committee may make decisions 7 affecting budgets to the extent provided in this chapter. The 8 costs and computations referred to in this section relate to 9 the budget year unless otherwise expressly stated. 10 Sec. 2. NEW SECTION . 256I.1 Definitions. 11 As used in this chapter, unless the context otherwise 12 requires: 13 1. “Area education agency” means an area education agency 14 established in accordance with section 273.2. 15 2. “At-risk student” means a student who meets any of the 16 following criteria: 17 a. Is eligible to receive free or reduced-cost lunch 18 pursuant to the provisions of the federal National School Lunch 19 Act, 42 U.S.C. § 1751 et seq. 20 b. Has performed at the proficiency level of low or 21 unsatisfactory on an assessment utilized by more than ninety 22 percent of the school districts in this state or on model 23 assessments developed pursuant to section 256.9, subsection 52, 24 paragraph “a” . 25 3. “Department” means the department of education. 26 4. “Director” means the director of the department of 27 education. 28 5. “Institute board” means the governing board of the state 29 charter school institute that is appointed pursuant to section 30 256I.4. 31 6. “Institute charter school” means a charter school 32 authorized pursuant to section 256I.3. 33 7. “School board” means the board of directors of a school 34 district, a collaboration of boards of directors of school 35 -1- LSB 5230YH (12) 83 kh/rj 1/ 35
H.F. 2361 districts, or the board of directors of an area education 1 agency, as the context requires. 2 8. “School district” means a school corporation organized 3 under chapter 274. 4 9. “State board” means the state board of education. 5 10. “State charter school institute” or “institute” means the 6 entity created pursuant to section 256I.2. 7 Sec. 3. NEW SECTION . 256I.2 State charter school institute 8 —— established. 9 1. A state charter school institute is established within 10 the department. 11 2. The institute is established to do the following: 12 a. Review institute charter school applications and assist 13 in the establishment of institute charter schools throughout 14 the state. 15 b. Assist in the conversion of a school district charter 16 school to an institute charter school. 17 c. Approve or deny institute charter school applications 18 and revoke, renew, or refuse to renew institute charter school 19 contracts. 20 d. Monitor the operations of institute charter schools 21 and the academic achievement of students attending institute 22 charter schools, including compliance with applicable state and 23 federal accountability requirements. 24 e. Model best practices in authorizing institute charter 25 schools and make those practices available to school districts. 26 3. The institute is authorized to enter into contracts or 27 service agreements with any public or private contractor to 28 provide administrative services or technical assistance to 29 institute charter schools pursuant to this chapter. Any such 30 contract or service agreement shall also include provisions 31 establishing liquidated damages and penalties for failure to 32 comply with the terms and conditions of the contract or service 33 agreement and shall be in accordance with rules adopted by the 34 institute board. 35 -2- LSB 5230YH (12) 83 kh/rj 2/ 35
H.F. 2361 4. For purposes of federal law, the state charter school 1 institute shall be a local educational agency, deemed to be 2 a public authority legally constituted within the state for 3 the administrative control and direction of, and to perform a 4 service function for, public elementary schools and secondary 5 schools in the state. 6 5. For purposes of the requirements of chapter 256B, 7 the state charter school institute shall be considered 8 an administrative unit of the department, responsible for 9 assisting in the delivery of federally required services to 10 students enrolled in institute charter schools. The institute 11 may provide or contract for the provision of services to a 12 student enrolled in an institute charter school. 13 6. The state charter school institute, in collaboration 14 with the school budget review committee, shall be responsible 15 for monitoring the fiscal management of each institute charter 16 school. Each institute charter school shall annually provide 17 to the institute the results of an independent financial audit 18 of the institute charter school. The institute shall report to 19 the state board and the school budget review committee the same 20 financial information in the same format that school districts 21 are required to report to the state board and the school budget 22 review committee. Institute charter schools shall submit 23 to the institute any financial information required by the 24 institute. 25 7. The institute and institute charter schools shall be 26 deemed part of the uniform system of free public schools to 27 be established and maintained by the state. The state board 28 shall have general supervisory authority over institute charter 29 schools. 30 8. The institute, by virtue of its functions and duties, 31 shall not be deemed to be a school district for any purpose. 32 Sec. 4. NEW SECTION . 256I.3 Institute chartering authority 33 —— institute charter schools. 34 1. The institute may approve or deny an application 35 -3- LSB 5230YH (12) 83 kh/rj 3/ 35
H.F. 2361 submitted for the establishment of an institute charter school 1 pursuant to this chapter. 2 2. An institute charter school applicant may submit an 3 application to the institute only if the school district in 4 which the institute charter school is to be located has not 5 retained exclusive authority to authorize all types of charter 6 schools as provided in subsection 5. If a school district 7 has not retained exclusive authority to authorize all types 8 of charter schools as provided in subsection 5, the school 9 district and the institute shall have concurrent authority 10 to authorize charter schools and institute charter schools, 11 respectively, to be located within the geographic boundaries 12 of the school district. The school district shall monitor and 13 oversee all charter schools authorized by the school district 14 pursuant to chapter 256F and the institute shall monitor 15 and oversee all institute charter schools authorized by the 16 institute pursuant to this chapter. 17 3. Nothing in this chapter shall be construed to eliminate 18 the ability of a school district to authorize charter schools 19 pursuant to chapter 256F. A school district shall retain the 20 authority to reauthorize and to oversee any charter school 21 which it has authorized, except with respect to any charter 22 school that is converted to an institute charter school 23 pursuant to this chapter. 24 4. a. For the school year beginning July 1, 2012, and 25 for each school year thereafter, a school board may seek to 26 retain exclusive authority to authorize all types of charter 27 schools within the geographic boundaries of the school district 28 by presenting to the state board, on or before March 1 of the 29 school year prior to that for which the exclusive authority 30 is to apply, a written resolution adopted by the school 31 board indicating the intent to retain exclusive authority to 32 authorize all types of charter schools. The written resolution 33 shall be accompanied by a written description of those 34 portions of subsection 5 that the school district intends to 35 -4- LSB 5230YH (12) 83 kh/rj 4/ 35
H.F. 2361 demonstrate. The school board shall provide a complete copy 1 of the resolution, including the description, to each charter 2 school authorized by the school board on or before the date the 3 school board submits the resolution to the state board. 4 b. A party may challenge the grant of exclusive authority 5 made by the state board pursuant to subsection 5 by filing 6 with the state board a notice of challenge within thirty days 7 after the state board grants exclusive authority. The notice 8 shall be accompanied by a specific written description of 9 the basis for the challenge. The challenging party, at the 10 time of filing notice with the state board, shall provide a 11 copy of the notice of challenge to the school district that 12 has been granted exclusive authority. The state board shall 13 permit the school district the opportunity to appear and 14 respond in writing to the challenge. The state board shall 15 make a determination upon the challenge within sixty days after 16 receipt of the notice of challenge. 17 c. For the school years beginning July 1, 2010, and July 1, 18 2011, a school board may seek to retain the exclusive authority 19 to authorize all types of charters schools by presenting to the 20 state board the written resolution on or before a date sixty 21 days after the effective date of this chapter. This paragraph 22 is repealed July 1, 2012. 23 5. a. The state board shall grant to the board of directors 24 of a school district exclusive authority to authorize all types 25 of charter schools within the geographic boundaries of the 26 school district if the state board determines, after adequate 27 notice and in a public hearing and after receiving input from 28 any charter schools authorized by the school board, that the 29 school board has provided fair and equitable treatment to its 30 charter schools during the four years prior to the school 31 board’s submission of the resolution described in subsection 4. 32 b. Notwithstanding any other provision of this subsection 33 to the contrary, the state board shall grant to a school board 34 exclusive authority to authorize all types of charter schools 35 -5- LSB 5230YH (12) 83 kh/rj 5/ 35
H.F. 2361 within the geographic boundaries of the school district if the 1 school district certifies any of the following: 2 (1) The total pupil enrollment of the school district is 3 less than three thousand pupils. 4 (2) The percentage of pupils who are eligible for free or 5 reduced-cost lunch pursuant to the provisions of the federal 6 National School Lunch Act, 42 U.S.C. § 1751, et seq., and 7 who enrolled in all types of charter schools authorized by 8 the school district is greater than the percentage that is 9 one percentage point below the overall percentage of pupils 10 eligible for free or reduced-cost lunch who are enrolled in the 11 school district. 12 (3) The total number of students enrolled in all types 13 of charter schools authorized by the school district, or the 14 maximum number of students allowed to be enrolled pursuant to 15 charter school contracts entered into by the school district, 16 whichever is greater for the budget year, is equivalent to 17 more than three percent of the school district’s certified 18 enrollment for the budget year. 19 (4) The district has not been identified as a district in 20 need of assistance under the federal No Child Left Behind Act 21 of 2001, Pub. L. No. 107-110. 22 c. A grant of exclusive authority by the state board shall 23 continue so long as a school district continues to comply with 24 the provisions of this subsection and has presented a written 25 resolution to the state board as set forth in subsection 4. 26 d. Notwithstanding any other provision of this section to 27 the contrary, a school board may permit the establishment of 28 one or more institute charter schools within the geographic 29 boundaries of the school district by adopting a favorable 30 resolution and submitting the resolution to the state board. 31 The resolution shall be effective until it is rescinded by 32 resolution of the school board. 33 Sec. 5. NEW SECTION . 256I.4 Institute board —— appointment 34 —— powers and duties. 35 -6- LSB 5230YH (12) 83 kh/rj 6/ 35
H.F. 2361 1. The policymaking body for the institute is the 1 institute board, the members of which are appointed pursuant 2 to subsection 2. In accordance with available funding, 3 the institute board may employ appropriate staff consistent 4 with the merit system provisions of chapter 8A, subchapter 5 IV, except that all positions classified by the institute 6 board as professional officers and professional staff of the 7 institute are declared to be educational in nature and exempt 8 from the merit system. The institute board may contract for 9 professional services with persons who are not state employees. 10 2. a. The institute board shall consist of nine members. 11 Seven of the members shall be appointed by the governor, 12 subject to confirmation by the senate, and two of the members 13 shall be appointed by the director. Appointments to the board 14 are subject to sections 69.16, 69.16A, and 69.19, and in making 15 appointments, the governor and the director shall ensure the 16 institute board reflects the geographic diversity of the state. 17 Members appointed to the institute board shall have experience 18 in at least one of the following areas: 19 (1) Experience as a charter school board member or founder 20 of a charter school. 21 (2) Experience as a public school administrator with 22 experience working with charter schools. 23 (3) Financial management expertise. 24 (4) Detailed knowledge of charter school law. 25 (5) Other board or public service experience. 26 (6) Experience as a public school teacher. 27 (7) School district special education expertise. 28 (8) Curriculum and assessment expertise. 29 b. (1) The members of the institute board shall serve 30 terms of three years. No member shall serve more than six 31 consecutive years. 32 (2) Notwithstanding subparagraph (1), of the members 33 appointed by the governor to the initial board, two members 34 shall serve a term of three years, three members shall serve 35 -7- LSB 5230YH (12) 83 kh/rj 7/ 35
H.F. 2361 a term of two years, and two members shall serve a term of 1 one year; and of the members appointed by the director to the 2 initial board, one member shall serve a term of three years 3 and one member shall serve a term of one year. The governor 4 and the director shall make the initial appointments no later 5 than thirty days after the effective date of this Act. This 6 subparagraph is repealed July 1, 2017. 7 c. An institute board member may be removed for any cause 8 that renders the member incapable or unfit to discharge the 9 duties of the office. Whenever a vacancy on the institute 10 board exists, the person making the original appointment shall 11 appoint a member for the remaining portion of the unexpired 12 term created by the vacancy. 13 3. The mission of the institute board shall be to foster 14 high-quality public school choices offered through institute 15 charter schools, including particularly schools for at-risk 16 students. In discharging its duties pursuant to this chapter, 17 the institute shall do the following: 18 a. Act as a model of best practices in authorizing charter 19 schools. 20 b. Use state and federal systems for ensuring the 21 accountability of each institute charter school in meeting the 22 obligations and goals set forth in its contract. 23 c. Measure the academic success of each institute charter 24 school student through longitudinal indices. 25 d. Measure the academic success of each institute charter 26 school through performance-based means and not process-based 27 means. 28 4. In addition to any other powers granted by law to the 29 institute board, the institute board shall have the following 30 powers: 31 a. To sue and be sued in its own name. 32 b. To incur debts, liabilities, and obligations, subject to 33 any limitations imposed thereon pursuant to law. 34 c. To cooperate and contract with the state or federal 35 -8- LSB 5230YH (12) 83 kh/rj 8/ 35
H.F. 2361 government or an agency or instrumentality thereof and to apply 1 for and receive grants or financial assistance from any such 2 entities. 3 d. To acquire, hold, lease, sell, or otherwise dispose of 4 real or personal property or a commodity or service. 5 e. To do or perform an act authorized by this chapter 6 by means of an agent or by contract with a person, firm, or 7 corporation. 8 f. To provide for the necessary expenses of the institute 9 board in the exercise of its powers and the performance of its 10 duties and to reimburse a board member for necessary expenses 11 incurred in the performance of the board member’s duties. 12 g. To provide for the proper keeping of accounts and records 13 and for budgeting of funds. 14 h. To adopt rules pursuant to chapter 17A. 15 5. No later than ninety days after the date the institute 16 commences operations, as described in section 256I.5, 17 subsection 3, paragraph a ”, the institute board shall 18 promulgate rules that set forth the procedures for the 19 acceptance of institute charter school applications and the 20 criteria for authorizing institute charter schools pursuant to 21 this chapter. 22 6. a. The institute may contract with boards of area 23 education agencies or with any other qualified individual or 24 public or private entity or organization, including a school 25 district, for the provision of administrative or other support 26 services directly to the institute or for the benefit of 27 institute charter schools. 28 b. This chapter shall not be construed to require the 29 institute to provide services to an institute charter school, 30 to require an institute charter school to purchase services 31 from the institute, or to prohibit an institute charter school 32 from purchasing education-related services from any sources 33 available, including a school district. 34 7. The institute shall ensure that each institute 35 -9- LSB 5230YH (12) 83 kh/rj 9/ 35
H.F. 2361 charter school complies with the requirements of section 1 256.7, subsection 21, relating to multiple assessments, the 2 comprehensive school improvement plan, and reports. Each 3 institute charter school shall be responsible for gathering 4 and submitting to the institute the data necessary to prepare 5 a comprehensive school improvement plan and to provide 6 information as required by the department. 7 8. The institute shall ensure that each institute charter 8 school adopts core content standards in a manner consistent 9 with that required of school districts pursuant to section 10 256.7, subsection 28. 11 9. The institute shall ensure that each institute charter 12 school addresses the expulsion, suspension, and education of 13 expelled or suspended students in a manner consistent with 14 the intents and purposes of sections 275.55A, 279.9A, 279.9B, 15 280.17B, 280.21B, and 282.4. 16 10. The institute may issue requests for proposals to 17 solicit applications for an institute charter school to serve 18 at-risk students. 19 11. The institute shall annually review each institute 20 charter school’s accomplishment of the goals described in 21 section 256I.8. 22 12. The members or employees or agents of the institute who 23 act in accordance with the provisions of this chapter shall 24 not be liable on account of any act or omission performed in 25 good faith while engaged in the performance of their duties 26 under this chapter, if the act or omission does not constitute 27 willful misconduct, gross negligence, or recklessness. 28 Sec. 6. NEW SECTION . 256I.5 Fund —— created. 29 1. A charter school institute fund is created in the state 30 treasury under the control of the institute. 31 2. The institute is authorized to receive and expend gifts, 32 grants, and donations of any kind from any public or private 33 entity to carry out the purposes of this chapter, subject to 34 the terms and conditions under which given; except that no 35 -10- LSB 5230YH (12) 83 kh/rj 10/ 35
H.F. 2361 gift, grant, or donation shall be accepted if the conditions 1 attached require the use or expenditure of funds in a manner 2 contrary to law. Any gifts, grants, or donations received 3 pursuant to this subsection shall be transmitted to the 4 treasurer of state, who shall credit the same to the charter 5 school institute fund. Moneys in the fund shall be subject to 6 annual appropriation by the general assembly to the institute, 7 to offset the actual and reasonable costs incurred by the 8 institute in administering this chapter. Notwithstanding 9 section 12C.7, subsection 3, all investment earnings derived 10 from the deposit and investment of the moneys in the fund shall 11 be credited to the fund. Notwithstanding section 8.33, any 12 unexpended and unencumbered moneys remaining in the fund at the 13 end of any fiscal year shall remain in the fund and shall not be 14 transferred to the general fund or any other fund. 15 3. a. The institute shall not be obligated to commence 16 operations necessary to receive applications, until such time 17 as the balance in one fund reaches at least fifty thousand 18 dollars, whether received from gifts, grants, donations, or 19 other sources. 20 b. The institute shall not be obligated to commence review 21 of applications actually received, until such time as the 22 balance in the fund reaches at least one hundred fifty thousand 23 dollars, whether received from gifts, grants, donations, or 24 other sources. 25 Sec. 7. NEW SECTION . 256I.6 Institute charter school —— 26 requirements —— authority. 27 1. a. An institute charter school shall be a public, 28 nonsectarian, nonreligious, nonhome-based school that operates 29 pursuant to a charter contract authorized by the state charter 30 school institute. 31 b. An institute charter school shall exist as a public 32 school within the state, unaffiliated with a school district. 33 Nothing in this chapter shall be construed to permit a school 34 district to determine curriculum, policies, procedures, or 35 -11- LSB 5230YH (12) 83 kh/rj 11/ 35
H.F. 2361 operations of an institute charter school, including but not 1 limited to compliance with the accountability provisions 2 specified in this title, accreditation contracts, and statewide 3 assessment requirements. 4 c. An institute charter school shall provide special 5 education services in accordance with chapter 256B. 6 2. An institute charter school shall be all of the 7 following: 8 a. Subject to the terms of the charter contract entered into 9 with the institute. 10 b. Accountable to the institute for purposes of ensuring 11 compliance with applicable laws and charter contract 12 provisions. 13 c. Subject to the accreditation process established pursuant 14 to section 256.11, subsections 10, 11, and 12. 15 3. An institute charter school shall be subject to 16 all federal and state laws and constitutional provisions 17 prohibiting discrimination on the basis of disability, race, 18 creed, color, gender, sexual orientation, gender identity, 19 national origin, religion, ancestry, or need for special 20 education services. Enrollment in an institute charter school 21 shall be open to any child who resides within the state; 22 except that an institute charter school shall not be required 23 to make alterations in the structure of the facility used by 24 the institute charter school or to make alterations to the 25 arrangement or function of rooms within the facility, except as 26 may be required by state or federal law. Enrollment decisions 27 shall be made in a nondiscriminatory manner specified by the 28 applicant in the institute charter school application. 29 4. An institute charter school shall be administered and 30 governed by a governing body in a manner agreed to and set 31 forth in the charter contract. 32 5. An institute charter school shall not charge tuition 33 to students who are residents between the ages of five and 34 twenty-one years of age in accordance with section 282.6. 35 -12- LSB 5230YH (12) 83 kh/rj 12/ 35
H.F. 2361 6. Pursuant to the charter contract, an institute charter 1 school may operate free from specified statutes and state 2 board rules in accordance with the process established under 3 section 256I.7, subsection 2. The state board may waive state 4 statutory requirements or rules promulgated by the state board; 5 except that the state board shall not waive any state statute 6 or rule relating to the assessments, the comprehensive school 7 improvement plan, and reports required pursuant to section 8 256.7, subsection 21. Any waiver of state statute or state 9 board rule made pursuant to this subsection shall be for the 10 term of the contract for which the waiver is made. A request 11 for a waiver may be submitted to the institute as a part of the 12 application for an institute charter school. 13 7. a. An institute charter school shall be responsible for 14 its own operation including but not limited to preparation of a 15 budget, contracting for services, and personnel matters. 16 b. An institute charter school may negotiate and contract 17 with a school district, the governing body of a community 18 college or institution of higher education governed by the 19 state board of regents, or any third party for the use of a 20 school building and grounds, the operation and maintenance 21 thereof, and the provision of any service, activity, or 22 undertaking that the institute charter school is required to 23 perform in order to carry out the educational program described 24 in its charter contract. The institute charter school shall 25 have standing to sue and be sued in its own name for the 26 enforcement of any contract created pursuant to this paragraph. 27 8. An institute charter school is authorized to offer any 28 educational program, including but not limited to an online 29 program that may be offered by a school district, unless 30 expressly prohibited by its charter contract or by state law. 31 An institute charter school that provides vocational education 32 shall be eligible for federal funds. 33 9. All decisions regarding the planning, siting, and 34 inspection of institute charter school facilities shall be made 35 -13- LSB 5230YH (12) 83 kh/rj 13/ 35
H.F. 2361 in accordance with the state building code in the absence of 1 a local building code, and as specified by contract with the 2 institute. 3 10. An institute charter school shall comply with federal 4 and state laws and regulations relating to the federal National 5 School Lunch Act and the federal Child Nutrition Act of 1966, 6 42 U.S.C. § 1751 1785, and chapter 283A, and shall be eligible 7 for state and federal funds allocated for purposes of chapter 8 283A. 9 Sec. 8. NEW SECTION . 256I.7 Institute charter school —— 10 contract contents —— regulations —— repeal. 11 1. An approved institute charter school application shall 12 serve as the basis for a charter contract between the institute 13 charter school and the institute. 14 2. The charter contract between the institute charter 15 school and the institute shall reflect all requests for release 16 from state statutes and rules made by the institute charter 17 school applicant. Within forty-five days after a request for 18 release is received by the state board, the state board shall 19 either grant or deny the request. If the state board grants 20 the request, it may orally notify the institute charter school 21 of its decision. If the state board denies the request, it 22 shall notify the institute charter school in writing that the 23 request is denied and specify the reasons for denial. If the 24 institute charter school does not receive notice of the state 25 board’s decision within forty-five days after submittal of the 26 request for release, the request shall be deemed granted. If 27 the state board denies a request for release that includes 28 multiple state statutes or rules, the denial shall specify the 29 state statutes and rules for which the release is denied, and 30 the denial shall apply only to those state statutes and rules 31 so specified. 32 3. A material revision of the terms of the charter contract 33 may be made only with the approval of the institute and the 34 governing body of the institute charter school. 35 -14- LSB 5230YH (12) 83 kh/rj 14/ 35
H.F. 2361 4. Any term included in a charter contract that would 1 require an institute charter school to waive or otherwise 2 forego receipt of any amount of operational or capital 3 construction funds provided to the institute charter school 4 pursuant to the provisions of this chapter or pursuant to any 5 other provision of law is hereby declared null and void as 6 against public policy and is unenforceable. 7 Sec. 9. NEW SECTION . 256I.8 Institute charter school 8 application. 9 1. The institute charter school application shall be a 10 proposed agreement that shall include all of the following: 11 a. The mission statement of the institute charter school. 12 b. The goals, objectives, and pupil performance standards, 13 in compliance with state and federal law, to be achieved by the 14 institute charter school for all students who enroll. 15 c. Evidence that an adequate number of parents, teachers, 16 pupils, or any combination thereof, support the formation of an 17 institute charter school. 18 d. A description of the institute charter school’s 19 educational program and the plan for administration of the 20 assessments required pursuant to section 256.7, subsection 21. 21 e. A description of the institute charter school’s plan for 22 evaluating pupil performance, the types of assessments that 23 will be used to measure pupil progress towards achievement of 24 the institute charter school’s pupil performance goals for all 25 students enrolled, the timeline for achievement of the goals, 26 and the procedures for taking corrective action in the event 27 that pupil performance at the institute charter school falls 28 below such goals. 29 f. Evidence that the plan for the institute charter school 30 is economically sound, a proposed budget for the term of the 31 contract, and a description of the manner in which an annual 32 audit of the financial and administrative operations of the 33 institute charter school will be conducted. 34 g. A description of the governance and operation of the 35 -15- LSB 5230YH (12) 83 kh/rj 15/ 35
H.F. 2361 institute charter school, including the nature and extent of 1 parental, professional educator, and community involvement in 2 the governance and operation of the institute charter school. 3 h. An explanation of the relationship that will exist 4 between the institute charter school and its employees, and the 5 employment policies of the institute charter school. 6 i. A plan for the institute charter school to meet 7 applicable insurance coverage requirements. 8 j. A plan for the institute charter school to conduct 9 community outreach to recruit and retain at-risk students. 10 k. A description of the institute charter school’s 11 enrollment policy, consistent with the requirements of 12 section 256I.6, subsection 3, and the criteria for enrollment 13 decisions. 14 l. A description and plan for a partnership with one or 15 more businesses. Applicants are strongly encouraged to partner 16 the proposed institute charter school with an accredited 17 postsecondary educational institution and to include the 18 description and plan for that partnership in the application. 19 2. a. Except as otherwise provided in section 256I.5, 20 subsection 3, paragraph a ”, the institute shall receive and 21 review all applications for institute charter schools. An 22 application for an institute charter school may be submitted 23 by one or more individuals, by a nonprofit, governmental, or 24 other entity or organization, or by an existing charter school 25 authorized by a school district. The institute’s approval 26 of an application from an existing charter school shall not 27 relieve the charter school of any preexisting contractual 28 obligations or relationships, including obligations of the 29 charter school due to the school district that authorized the 30 charter school. The transfer of oversight of a charter school 31 from a school district to the institute shall not be deemed 32 a dissolution or other event that empowers or obligates the 33 school district to discontinue the charter school’s affairs or 34 to dispose of the charter school’s assets. An entity applying 35 -16- LSB 5230YH (12) 83 kh/rj 16/ 35
H.F. 2361 for an institute charter school shall file an application with 1 the institute by a date determined by rule of the institute 2 board to be eligible for consideration for the following school 3 year. Prior to any change in the application deadline, the 4 institute shall notify each known institute charter school 5 applicant of the proposed change by certified letter. If 6 the institute finds the institute charter school application 7 is incomplete, the institute shall request the necessary 8 information from the applicant. 9 b. The institute board shall set forth by rule all necessary 10 procedures for the application process and for application 11 review by the institute and the institute board. The rules 12 shall describe a rigorous review of the application that 13 includes but is not limited to the following key evaluative 14 areas involving the institute charter school: 15 (1) Curriculum and instructional program. 16 (2) Nonacademic program characteristics. 17 (3) Financial viability. 18 (4) Appropriate governance model and proposed practices. 19 (5) Appropriate, consistent, clear, and measurable 20 accountability systems. 21 (6) The extent to which the instructional program fits the 22 mission statement of the institute charter school. 23 c. The rules adopted pursuant to paragraph b shall 24 require the applicant to provide written notification of the 25 application to the board of directors of the school district 26 in which the proposed institute charter school is intended 27 to be located and that school district’s school improvement 28 advisory committee. The rules shall permit the school board 29 and the school improvement advisory committee to submit to the 30 institute written comments concerning the institute charter 31 school application. 32 3. The institute board shall hold a public hearing on 33 the application for an institute charter school, following 34 reasonable public notice, within sixty days after receiving the 35 -17- LSB 5230YH (12) 83 kh/rj 17/ 35
H.F. 2361 application filed pursuant to subsection 1. All negotiations 1 between the institute charter school and the institute on the 2 charter contract shall be concluded, and all terms of the 3 charter contract agreed upon, no later than forty-five days 4 after the institute board approves the application for an 5 institute charter school. 6 4. The institute charter school applicant and the institute 7 may jointly waive the deadlines set forth in this section. 8 5. If the institute denies an institute charter school 9 application, it shall state its reasons for the denial. Within 10 thirty days after the denial, the entity that submitted the 11 institute charter school application may submit to the state 12 board a notice of appeal, stating the grounds for the appeal. 13 6. Within sixty days after receipt of a notice of appeal 14 by the state board and after reasonable public notice, the 15 state board shall review the decision of the institute and 16 determine whether the decision was arbitrary and capricious. 17 The state board shall remand the matter to the institute with 18 instructions to approve or deny the institute charter school 19 application. The decision of the state board shall be final 20 and not subject to appeal. 21 Sec. 10. NEW SECTION . 256I.9 Renewal, nonrenewal, or 22 revocation of institute charter school contract —— term —— 23 appeal. 24 1. a. A new charter contract for an institute charter 25 school may be approved for succeeding periods of at least three 26 academic years but not more than five academic years, and the 27 charter contract may be renewed for a period not to exceed five 28 academic years. 29 b. Notwithstanding the provisions of paragraph a ”, an 30 institute charter school and the institute may agree to 31 extend the length of the charter contract beyond five academic 32 years for the purpose of enhancing the terms of any lease or 33 financial obligation. 34 2. An institute charter school shall submit an annual report 35 -18- LSB 5230YH (12) 83 kh/rj 18/ 35
H.F. 2361 to the institute on the institute charter school’s progress in 1 achieving the goals, objectives, pupil performance standards, 2 content standards, and other terms of the charter contract. 3 The institute shall consider, during the review of a renewal 4 application, the annual reports submitted by the institute 5 charter school during the term of the charter contract. 6 3. The institute board may revoke or deny renewal of a 7 charter contract if the institute board determines that the 8 institute charter school did any of the following: 9 a. Committed a material violation of any of the conditions, 10 standards, or procedures set forth in the charter contract of 11 the institute charter school. 12 b. Failed to meet or make reasonable progress toward 13 achievement of the core content standards or pupil performance 14 standards identified in the charter contract of the institute 15 charter school. 16 c. Received a substandard overall academic performance 17 rating upon the completion of the third school year of 18 operation under a comprehensive school improvement plan 19 submitted pursuant to section 256.7, subsection 21, and the 20 state board recommended that the institute charter school be 21 converted to a charter school under contract with a school 22 district in accordance with chapter 256F. 23 d. Failed to meet generally accepted accounting principles 24 of fiscal management. 25 e. Violated any provision of law from which the institute 26 charter school was not specifically exempted. 27 4. In addition, the institute board may deny renewal of a 28 charter contract upon a determination by the institute board 29 that it is not in the best interests of the pupils attending 30 the institute charter school to continue the operation of the 31 institute charter school. 32 5. a. If the institute revokes or denies renewal of a 33 charter contract of an institute charter school, the institute 34 board shall state its reasons for the revocation or denial. 35 -19- LSB 5230YH (12) 83 kh/rj 19/ 35
H.F. 2361 b. (1) The state board, upon receipt of a notice of 1 appeal or upon its own motion, may review decisions of the 2 institute board concerning the revocation or nonrenewal of an 3 institute charter school’s charter contract. An institute 4 charter school or any other person who wishes to appeal a 5 decision of the institute board concerning the revocation 6 or nonrenewal of a charter contract shall provide the state 7 board and the institute board with a notice of appeal within 8 thirty days after the institute board’s decision. The person 9 bringing the appeal shall limit the grounds of the appeal to 10 the grounds for the revocation or the nonrenewal of the charter 11 contract specified by the institute board. The notice shall 12 include a brief statement of the reasons the person contends 13 the institute board’s revocation or nonrenewal of the charter 14 contract was in error. 15 (2) Within sixty days after receipt of the notice of appeal 16 or the making of a motion to review by the state board and after 17 reasonable public notice, the state board, at a public hearing 18 which may be held in the school district in which the institute 19 charter school is located, shall review the decision of the 20 institute board and make its findings. If the state board 21 finds that the institute board’s decision was contrary to the 22 best interests of the pupils attending the institute charter 23 school, the state board shall remand such final decision to the 24 institute board with instructions to renew or reinstate the 25 charter contract of the institute charter school. The decision 26 of the state board shall be final and not subject to appeal. 27 Sec. 11. NEW SECTION . 256I.10 Institute charter schools 28 —— employee retirement funds. 29 A school board shall determine by policy or by negotiated 30 agreement, if one exists, the employment status of school 31 district employees employed by an institute charter school who 32 seek to return to employment with public schools in the school 33 district. Employees of an institute charter school shall be 34 members of the Iowa public employees’ retirement system created 35 -20- LSB 5230YH (12) 83 kh/rj 20/ 35
H.F. 2361 under chapter 97B. The institute charter school and the 1 employee shall contribute the appropriate respective amounts as 2 required pursuant to section 97B.11. 3 Sec. 12. NEW SECTION . 256I.11 Institute charter schools —— 4 district charter schools —— funding. 5 1. A pupil enrolled in an institute charter school shall 6 be counted, for state school foundation aid purposes, in the 7 pupil’s district of residence. A pupil’s residence, for 8 purposes of this section, means a residence under section 9 282.1. The board of directors of the district of residence 10 shall pay to the institute the state cost per pupil for the 11 previous school year, plus any moneys received for the pupil 12 on a pro rata basis pursuant to section 279.51, and any moneys 13 received for the pupil as a result of the non-English speaking 14 weighting under section 280.4, subsection 3, for the previous 15 school year multiplied by the state cost per pupil for the 16 previous year. The school district of residence shall also 17 pay to the institute the sales tax capacity per student amount 18 the school district received for the pupil for the previous 19 school year pursuant to section 423E.4. If the pupil enrolled 20 in an institute charter school is also an eligible pupil under 21 section 261E.6, the institute charter school shall pay the 22 tuition reimbursement amount to an eligible postsecondary 23 institution as provided in section 261E.7. 24 2. As part of the charter contract, the institute charter 25 school and the institute shall agree on funding and any 26 services to be provided by the institute or by other parties to 27 the institute charter school. 28 3. a. Each institute charter school and the institute shall 29 negotiate funding under the charter contract at a minimum of 30 ninety-five percent of the institute charter school’s per pupil 31 revenues generated pursuant to subsection 1 for each pupil 32 enrolled in the institute charter school. The institute may 33 retain the actual amount of the institute charter school’s per 34 pupil share of the administrative overhead costs for services 35 -21- LSB 5230YH (12) 83 kh/rj 21/ 35
H.F. 2361 actually provided to the institute charter school; except that 1 the institute may retain no more than the actual cost of the 2 administrative overhead costs not to exceed three percent of 3 the institute charter school’s per pupil revenues for each 4 pupil enrolled in the institute charter school pursuant to 5 subsection 1. 6 b. Each institute charter school shall pay to the 7 institute an amount equal to the per pupil cost incurred by 8 the institute in providing federally required educational 9 services, multiplied by the number of students enrolled in 10 the institute charter school. At either party’s request, the 11 institute charter school and the institute may negotiate and 12 include in the charter contract alternate arrangements for the 13 provision of and payment for federally required educational 14 services, including but not limited to a reasonable reserve 15 not to exceed five percent of the institute’s total budget for 16 providing federally required educational services. The reserve 17 shall only be used by the institute to offset excess costs of 18 providing services to students with disabilities enrolled in 19 any institute charter school. 20 c. As part of the institute charter school contract, the 21 institute charter school and the institute board shall agree on 22 the services, other than necessary administration, oversight, 23 and management services, to be provided to the institute 24 charter school by any third party with which the institute 25 or institute charter school contracts and the costs of the 26 services. 27 4. Within ninety days after the end of each fiscal year, 28 the institute shall provide to each institute charter school 29 an itemized accounting of all the institute’s administrative 30 overhead costs. The actual administrative overhead costs shall 31 be the amount charged to the institute charter school. Any 32 difference, within the limitations of subsection 3, between the 33 amount initially charged to the institute charter school and 34 the actual cost shall be reconciled and paid to the owed party. 35 -22- LSB 5230YH (12) 83 kh/rj 22/ 35
H.F. 2361 5. The funding provided by the institute to an institute 1 charter school pursuant to this section shall be reduced by the 2 amount of any direct payments of principal and interest due on 3 bonds issued on behalf of an institute charter school by the 4 charter school institute for the purpose of financing institute 5 charter school capital construction in accordance with section 6 423E.5. 7 6. a. The governing body of an institute charter school 8 is authorized to accept gifts, donations, or grants of any 9 kind made to the institute charter school and to expend or 10 use said gifts, donations, or grants in accordance with the 11 conditions prescribed by the donor; however, no gift, donation, 12 or grant shall be accepted by the governing body if subject to 13 any condition contrary to law or contrary to the terms of the 14 charter contract between the institute charter school and the 15 institute. 16 b. Moneys received by an institute charter school from any 17 source and remaining in the institute charter school’s accounts 18 at the end of a budget year shall remain in the institute 19 charter school’s accounts for use by the institute charter 20 school during subsequent budget years and shall not revert to 21 the state. Moneys remaining in the institute charter school’s 22 accounts upon revocation or nonrenewal of the charter contract 23 shall revert to the institute; except that any gifts shall be 24 disposed of in accordance with any conditions prescribed by the 25 donor that are not contrary to law. 26 Sec. 13. NEW SECTION . 256I.12 Institute charter school —— 27 capital reserve, risk management, and instructional purposes. 28 1. The institute shall require each institute charter 29 school annually to allocate a minimum per pupil dollar amount 30 specified by the institute to a fund created by the institute 31 charter school for capital reserve purposes or for insurance 32 to protect the institute charter school from tort liability, 33 loss of property, environmental hazards, or any other risk 34 associated with the operation of the institute charter school. 35 -23- LSB 5230YH (12) 83 kh/rj 23/ 35
H.F. 2361 Moneys in the fund shall be used only for the purposes set 1 forth in this subsection and shall not be expended by the 2 institute charter school for any other purpose. 3 2. Each institute charter school shall annually allocate 4 a minimum per pupil dollar amount specified by the charter 5 school institute to a fund created by the institute charter 6 school for instructional supplies and materials, instructional 7 capital outlays, or other instructional purposes agreed to by 8 the institute and the institute charter school. The moneys 9 in the fund shall be used for the purposes set forth in this 10 subsection and shall not be expended by the institute charter 11 school for any other purpose. Any moneys in the accounts that 12 are not projected to be expended during a budget year shall be 13 budgeted for the next budget year. Nothing in this subsection 14 shall be construed to require that interest on moneys in the 15 fund be specifically allocated to the fund. 16 Sec. 14. Section 423E.5, subsections 1 and 2, Code 2009, are 17 amended to read as follows: 18 1. The board of directors of a school district and the 19 board of directors of the charter school institute shall be 20 authorized to issue negotiable, interest-bearing school bonds, 21 without election, and utilize tax receipts derived from the 22 sales and services tax for school infrastructure purposes and 23 the supplemental school infrastructure amount distributed 24 pursuant to section 423E.4, subsection 1, paragraph “b” , and 25 revenues received pursuant to section 256I.11, subsection 26 1, or section 423F.2, for principal and interest repayment. 27 Proceeds of the bonds issued pursuant to this section shall 28 be utilized solely for school infrastructure needs as school 29 infrastructure is defined in section 423E.1, subsection 3, Code 30 2007, and section 423F.3. Bonds issued under this section may 31 be sold at public sale as provided in chapter 75, or at private 32 sale, without notice and hearing as provided in section 73A.12. 33 Bonds may bear dates, bear interest at rates not exceeding that 34 permitted by chapter 74A, mature in one or more installments, 35 -24- LSB 5230YH (12) 83 kh/rj 24/ 35
H.F. 2361 be in registered form, carry registration and conversion 1 privileges, be payable as to principal and interest at times 2 and places, be subject to terms of redemption prior to maturity 3 with or without premium, and be in one or more denominations, 4 all as provided by the resolution of the board of directors 5 authorizing their issuance. The resolution may also prescribe 6 additional provisions, terms, conditions, and covenants which 7 the board of directors deems advisable, including provisions 8 for creating and maintaining reserve funds, the issuance of 9 additional bonds ranking on a parity with such bonds and 10 additional bonds junior and subordinate to such bonds, and 11 that such bonds shall rank on a parity with or be junior and 12 subordinate to any bonds which may be then outstanding. Bonds 13 may be issued to refund outstanding and previously issued bonds 14 under this section. The bonds are a contractual obligation 15 of the school district or the charter school institute, as 16 appropriate , and the resolution issuing the bonds and pledging 17 local option sales and services tax revenues or its share 18 of the revenues distributed pursuant to section 256I.11, 19 subsection 1, or section 423F.2 to the payment of principal and 20 interest on the bonds is a part of the contract. Bonds issued 21 pursuant to this section shall not constitute indebtedness 22 within the meaning of any constitutional or statutory debt 23 limitation or restriction, and shall not be subject to any 24 other law relating to the authorization, issuance, or sale of 25 bonds. 26 2. A school district and the charter school institute shall 27 be authorized to enter into a chapter 28E agreement with one 28 or more cities or a county whose boundaries encompass all or 29 a part of the area of the school district or an institute 30 charter school . A city or cities entering into a chapter 31 28E agreement shall be authorized to expend its designated 32 portion of the revenues for any valid purpose permitted in 33 this chapter or authorized by the governing body of the city. 34 A county entering into a chapter 28E agreement with a school 35 -25- LSB 5230YH (12) 83 kh/rj 25/ 35
H.F. 2361 district shall be authorized to expend its designated portion 1 of the revenues to provide property tax relief within the 2 boundaries of the school district located in the county. A 3 school district is and the charter school institute are also 4 authorized to enter into a chapter 28E agreement with another 5 school district, a community college, or an area education 6 agency which is located partially or entirely in or is 7 contiguous to the county where the school district or institute 8 charter school is located. The school district , charter 9 school institute, or community college shall only expend its 10 designated portion of the revenues for infrastructure purposes. 11 The area education agency shall only expend its designated 12 portion of the revenues for infrastructure and maintenance 13 purposes. The charter school institute shall only expend its 14 designated portion of the revenues for infrastructure and 15 maintenance purposes for the institute charter school for 16 which the revenues were received pursuant to section 256I.11, 17 subsection 1. 18 EXPLANATION 19 This bill establishes a charter school institute within 20 the department of education to review and assist in the 21 establishment of institute charter schools, which are 22 tuition-free public schools; assist in the conversion of a 23 school district charter school to an institute charter school; 24 approve or deny institute charter school applications and 25 revoke, renew, or refuse to renew institute charter school 26 contracts; monitor the operations of institute charter schools 27 and the academic achievement of students attending institute 28 charter schools; and to model best practices in authorizing 29 charter schools and make those practices available to school 30 districts. The policymaking body of the institute is the 31 nine-member institute board, but the state board of education 32 has general supervisory authority over institute charter 33 schools. 34 The institute is authorized to enter into contracts or 35 -26- LSB 5230YH (12) 83 kh/rj 26/ 35
H.F. 2361 service agreements with any public or private contractor to 1 provide administrative services or technical assistance to 2 institute charter schools. The institute, in collaboration 3 with the school budget review committee, is responsible for 4 monitoring the fiscal management of each institute charter 5 school. 6 An application for an institute charter school may 7 be submitted by one or more individuals, by a nonprofit, 8 governmental, or other entity or organization, or by an 9 existing charter school authorized by a school district. 10 An institute charter school applicant may submit an 11 application to the institute only if the school district in 12 which the school is to be located has not retained exclusive 13 authority to authorize charter schools. Nothing in the 14 bill shall be construed to eliminate the ability of a school 15 district to authorize charter schools pursuant to Code chapter 16 256F. A party may challenge the grant of exclusive authority 17 by filing with the state board a notice of challenge within 30 18 days after the state board grants exclusive authority. The 19 notice shall be accompanied by a specific written description 20 of the basis for the challenge. A school board may permit the 21 establishment of one or more institute charter schools within 22 the geographic boundaries of the school district by adopting a 23 favorable resolution and submitting the resolution to the state 24 board. 25 The institute board, in accordance with available funding, 26 may employ appropriate staff consistent with the Iowa merit 27 system, except that professional officers and professional 28 staff are exempt from the merit system. The institute board 29 may contract for professional services with persons who are not 30 state employees. 31 Seven of the institute board members shall be appointed by 32 the governor, with the consent of the senate, and two of the 33 members shall be appointed by the director of the department. 34 Members appointed to the institute board shall have experience 35 -27- LSB 5230YH (12) 83 kh/rj 27/ 35
H.F. 2361 in at least one of the following areas: as a charter school 1 board member or founder, as a public school administrator with 2 experience working with charter schools, financial management 3 expertise, detailed knowledge of charter school law, other 4 board or public service experience, as a public school teacher, 5 school district special education expertise, or curriculum and 6 assessment expertise. 7 The mission of the institute board shall be to foster 8 high-quality public school choices offered through institute 9 charter schools, including particularly schools for at-risk 10 students. The bill specifies the powers of the institute 11 board. 12 The institute may contract with area education agency boards 13 or with any other qualified individual or public or private 14 entity or organization, including a school district, for the 15 provision of administrative or other support services directly 16 to the institute or for the benefit of institute charter 17 schools. 18 The institute shall ensure that each institute charter 19 school complies with the state statutory requirements relating 20 to multiple assessments, the comprehensive school improvement 21 plan, and reports. Each institute charter school must also 22 adopt the state’s core content standards and address the 23 expulsion, suspension, and education of expelled or suspended 24 students in the same manner as school districts. 25 The institute may issue requests for proposals to solicit 26 applications for an institute charter school to serve at-risk 27 students. 28 The members or employees or agents of the institute shall 29 not be liable on account of any act or omission in good faith 30 while engaged in the performance of their duties, if the act 31 or omission does not constitute willful misconduct, gross 32 negligence, or recklessness. 33 A charter school institute fund is created in the state 34 treasury under the control of the institute. Any gifts, 35 -28- LSB 5230YH (12) 83 kh/rj 28/ 35
H.F. 2361 grants, or donations received by the institute shall be 1 transmitted to the state treasurer, who shall credit the same 2 to the state charter school institute fund. The institute 3 is not obligated to commence operations necessary to receive 4 applications until such time as there is at least $50,000 5 in the fund, and is not obligated to commence review of 6 applications actually received until the balance in the fund 7 reaches at least $150,000. 8 An institute charter school shall be a public, nonsectarian, 9 nonreligious, nonhome-based school that operates pursuant to a 10 charter contract authorized by the charter school institute. 11 An institute charter school shall provide special education 12 services, be subject to the terms of the charter contract 13 entered into with the institute, be accountable to the 14 institute for purposes of ensuring compliance with applicable 15 laws and charter contract provisions, and be subject to the 16 accreditation process established by the state board. 17 An institute charter school shall be subject to all federal 18 and state laws and constitutional provisions prohibiting 19 discrimination. Enrollment in a school shall be open to any 20 child who resides within the state, except that the school 21 shall not be required to make alterations in the structure of 22 the facility used by the institute charter school or to make 23 alterations to the arrangement or function of rooms within 24 the facility, except as may be required by state or federal 25 law. Enrollment decisions must be made in a nondiscriminatory 26 manner. 27 Pursuant to the charter contract, an institute charter 28 school may operate free from specified statutes and state 29 board rules; however, the institute charter school must submit 30 a request for release from the state statutes and rules to 31 the state board. The state board may waive state statutory 32 requirements or rules promulgated by the state board; except 33 that the state board may not waive any state statute or rule 34 relating to assessments, the comprehensive school improvement 35 -29- LSB 5230YH (12) 83 kh/rj 29/ 35
H.F. 2361 plan, and reports required by the state board. Any waiver of 1 state statute or state board rule made shall be for the term 2 of the contract for which the waiver is made. A request for 3 a waiver may be submitted to the institute as a part of the 4 application for an institute charter school. 5 An institute charter school may negotiate and contract with 6 a school district, community college, or regents university, or 7 any third party for the use of a school building and grounds, 8 and the provision of any service, activity, or undertaking that 9 the institute charter school is required to perform in order 10 to carry out the educational program described in its charter 11 contract. All decisions regarding the planning, siting, and 12 inspection of institute charter school facilities shall be made 13 in accordance with the state building code in the absence of 14 a local building code. 15 An institute charter school is authorized to offer any 16 educational program, including an online program, unless 17 expressly prohibited by its charter contract or by state law. 18 An institute charter school must comply with federal and 19 state laws and regulations relating to school meal programs, 20 and shall be eligible for state and federal funds allocated for 21 school meals. 22 An institute charter school may organize as a nonprofit 23 corporation pursuant to the “Revised Iowa Nonprofit Corporation 24 Act”. For tax-exempt financing purposes, an institute charter 25 school is a governmental entity. 26 The bill specifies the content of the institute charter 27 school application, which includes a mission statement; the 28 goals, objectives, and pupil performance standards to be 29 achieved by the school for all students who enroll; evidence 30 that an adequate number of parents, teachers, and pupils 31 support the formation of the school; a description of the 32 school’s educational program and the plan for administration 33 of the assessments; a description of the school’s plan for 34 evaluating pupil performance and the procedures for taking 35 -30- LSB 5230YH (12) 83 kh/rj 30/ 35
H.F. 2361 corrective action in the event that pupil performance at the 1 school falls below goal; evidence that the school plan is 2 economically sound, a proposed budget for the term of the 3 contract, and a description of the manner in which an annual 4 audit of the financial and administrative operations of the 5 school will be conducted; a description of the governance and 6 operation of the school; an explanation of the relationship 7 that will exist between the school and its employees; a plan 8 for the school to meet insurance coverage requirements; a 9 plan for the school to conduct community outreach to recruit 10 and retain at-risk students; a description of the school’s 11 enrollment policy; and a description and plan for a partnership 12 with one or more businesses. 13 The institute board shall set forth procedures for the 14 application and application review process, and shall describe 15 a rigorous review of the application that includes but is 16 not limited to the following key evaluative areas: the 17 curriculum and instructional program; nonacademic program 18 characteristics; financial viability; appropriate governance 19 model and proposed practices; appropriate, consistent, clear, 20 and measurable accountability systems; and the extent to which 21 the instructional program fits the school’s mission statement. 22 The applicant must provide written notification of the 23 application to the school board of the school district in 24 which the proposed institute charter school is intended to be 25 located. The school district’s board and school improvement 26 committee may submit written comments to the institute 27 concerning the application. 28 The institute board must hold a public hearing on the 29 application for an institute charter school, following 30 reasonable public notice, within 60 days after receiving the 31 application. The institute charter school applicant and the 32 institute may jointly waive the deadlines set forth in the 33 bill. 34 If the institute denies an application, it shall state 35 -31- LSB 5230YH (12) 83 kh/rj 31/ 35
H.F. 2361 its reasons for the denial and the entity that submitted the 1 application may appeal the decision to the state board. The 2 decision of the state board shall be final and not subject to 3 appeal. 4 A new charter contract for an institute charter school may 5 be approved for succeeding periods of at least three academic 6 years but not more than five academic years, and the charter 7 contract may be renewed for a period not to exceed five 8 academic years unless both parties agree for the purpose of 9 enhancing the terms of any lease or financial obligation. 10 An institute charter school shall submit an annual report 11 to the institute on the school’s progress. The institute 12 board may revoke or deny renewal of a charter contract if 13 the institute board determines that the school committed a 14 material violation of any of the conditions, standards, or 15 procedures set forth in the charter contract; failed to meet 16 or make reasonable progress toward achievement of the core 17 content standards or pupil performance standards identified in 18 the charter contract; received a substandard overall academic 19 performance rating upon the completion of the third school 20 year of operation under a comprehensive school improvement 21 plan and the state board recommended that the institute 22 charter school be converted to a charter school under contract 23 with a school district; failed to meet generally accepted 24 accounting principles of fiscal management; or violated any 25 provision of law from which the institute charter school was 26 not specifically exempted. In addition, the institute board 27 may deny renewal of a charter contract if it determines that it 28 is not in the best interests of the pupils attending the school 29 to continue the operation of the school. 30 The state board may review decisions of the institute board 31 concerning the revocation or nonrenewal of a school’s charter 32 contract. Within 60 days after receipt of the notice of appeal 33 or the making of a motion to review by the state board and after 34 reasonable public notice, the state board, at a public hearing 35 -32- LSB 5230YH (12) 83 kh/rj 32/ 35
H.F. 2361 which may be held in the school district in which the institute 1 charter school is located, shall review the decision of the 2 institute board and make its findings. The decision of the 3 state board shall be final and not subject to appeal. 4 Employees of an institute charter school shall be members 5 of the Iowa public employees’ retirement system and the school 6 and the employee shall contribute the appropriate respective 7 amounts as required in statute. 8 A pupil enrolled in an institute charter school shall be 9 counted, for state school foundation aid purposes, in the 10 pupil’s district of residence. The board of directors of the 11 district of residence shall pay to the institute the state 12 cost per pupil for the previous school year, plus any moneys 13 received for the pupil on a pro rata basis for programs for 14 at-risk children, and any moneys received for the pupil as a 15 result of the non-English speaking weighting for the previous 16 school year multiplied by the state cost per pupil for the 17 previous year. The school district of residence shall also 18 pay to the institute the sales tax capacity per student amount 19 the school district received for the pupil for the secure 20 advanced vision for education fund. If the pupil enrolled in 21 an institute charter school is also an eligible pupil under the 22 postsecondary enrollment options program, the institute charter 23 school shall pay the tuition reimbursement amount specified in 24 statute to an eligible postsecondary institution. 25 Each institute charter school and the institute shall 26 negotiate funding under the charter contract at a minimum 27 of 95 percent of the institute charter school’s per pupil 28 revenues generated for each pupil enrolled in the institute 29 charter school. The institute may retain the actual amount 30 of the institute charter school’s per pupil share of the 31 administrative overhead costs for services actually provided 32 to the institute charter school; except that the institute 33 may retain no more than the actual cost of the administrative 34 overhead costs not to exceed 3 percent of the school’s per 35 -33- LSB 5230YH (12) 83 kh/rj 33/ 35
H.F. 2361 pupil revenues for each pupil enrolled in the school. 1 Each institute charter school shall pay an amount equal 2 to the per pupil cost incurred by the institute in providing 3 federally required educational services, multiplied by the 4 number of students enrolled in the school. At either party’s 5 request, the school and the institute may negotiate and 6 include in the charter contract alternate arrangements for the 7 provision of and payment for federally required educational 8 services, including but not limited to a reasonable reserve 9 not to exceed 5 percent of the institute’s total budget for 10 providing federally required educational services. The reserve 11 shall only be used by the institute to offset excess costs of 12 providing services to students with disabilities enrolled in 13 any institute charter school. 14 Within 90 days after the end of each fiscal year, the 15 institute shall provide to each institute charter school an 16 itemized accounting of all the institute’s administrative 17 overhead costs. The actual administrative overhead costs shall 18 be the amount charged to the school. 19 The funding provided by the institute to an institute 20 charter school shall be reduced by the amount of any direct 21 payments of principal and interest due on bonds issued 22 on behalf of a school by the institute for the purpose of 23 financing institute charter school capital construction. 24 The school budget review committee shall review the proposed 25 budget and certified budget of each institute charter school 26 and may make recommendations to the school, the department, the 27 state board, and the institute. 28 The institute shall require each institute charter school 29 annually to allocate a minimum per pupil dollar amount 30 specified by the institute to a fund created by the school 31 for capital reserve purposes or for insurance to protect the 32 school from tort liability, loss of property, environmental 33 hazards, or any other risk associated with the operation 34 of the school. Each school must also annually allocate a 35 -34- LSB 5230YH (12) 83 kh/rj 34/ 35
H.F. 2361 minimum per pupil dollar amount specified by the charter school 1 institute to a fund created by the school for instructional 2 supplies and materials, instructional capital outlays, or other 3 instructional purposes agreed to by the institute and the 4 school. 5 Finally, the bill authorizes the board of directors 6 of the charter school institute to issue negotiable, 7 interest-bearing school bonds, without election, and utilize 8 tax receipts derived from the sales and services tax for 9 school infrastructure purposes and the supplemental school 10 infrastructure amount distributed and revenues received for 11 principal and interest repayment; and to enter into a Code 12 chapter 28E agreement with one or more cities or a county whose 13 boundaries encompass all or a part of the area of an institute 14 charter school. 15 -35- LSB 5230YH (12) 83 kh/rj 35/ 35