HOUSE BILL NO. 397

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Bill Status



H0397aaS.......................................................by EDUCATION
PUBLIC CHARTER SCHOOLS - Amends existing law to revise the grounds when
written notice is required from the authorized chartering entity to the
public charter school.

01/23    House intro - 1st rdg - to printing
01/24    Rpt prt - to Educ
02/08    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/14    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
      Mortimer, Moyle, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
      Ringo(Cooke), Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Smith(24),
      Snodgrass, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
      Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Nielsen, Stevenson
    Floor Sponsor - Mortimer
    Title apvd - to Senate
02/15    Senate intro - 1st rdg - to Educ
03/05    Rpt out - to 14th Ord
03/11    Rpt out amen - to 1st rdg as amen
    1st rdg - to 2nd rdg as amen
03/12    2nd rdg - to 3rd rdg as amen
03/13    3rd rdg as amen - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Schroeder
    Title apvd - to House
03/14    House concurred in Senate amens - to engros
03/17    Rpt engros - 1st rdg - to 2nd rdg as amen
03/18    2nd rdg - to 3rd rdg as amen
03/19    3rd rdg as amen - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
      Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
      Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(02), Shirley, Shively, Smith(24), Snodgrass, Stevenson,
      Thayn, Thomas, Vander Woude, Wills, Wood(27), Mr. Speaker
      NAYS -- None
      Absent and excused -- Shepherd(08), Smith(30), Trail, Wood(35)
    Floor Sponsor - Mortimer
    Title apvd - to enrol
03/20    Rpt enrol - Sp signed - Pres signed
03/21    To Governor
03/25    Governor signed
         Session Law Chapter 251
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 397

                                   BY EDUCATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO PUBLIC CHARTER SCHOOLS; AMENDING SECTION 33-5209, IDAHO  CODE,  TO
  3        REVISE THE GROUNDS REQUIRING WRITTEN NOTICE FROM THE AUTHORIZED CHARTERING
  4        ENTITY TO THE PUBLIC CHARTER SCHOOL.

  5    Be It Enacted by the Legislature of the State of Idaho:

  6        SECTION  1.  That  Section 33-5209, Idaho Code, be, and the same is hereby
  7    amended to read as follows:

  8        33-5209.  ENFORCEMENT -- REVOCATION -- APPEAL. (1) An authorized  charter-
  9    ing  entity shall ensure that all public charter schools for which it approved
 10    petitions, or for which it has responsibility, operate in accordance with  the
 11    approved  charter. A public charter school or the authorized chartering entity
 12    may enter into negotiations to revise  its  charter  at  any  time.  A  public
 13    charter  school may petition to revise its charter at any time. The authorized
 14    chartering entity's review of the revised petition shall be limited  in  scope
 15    solely to the proposed revisions.
 16        (2)  If  the  authorized  chartering entity has reason to believe that the
 17    public charter school has done any of the following, it shall provide the pub-
 18    lic charter school written notice of  the  defect  and  provide  a  reasonable
 19    opportunity to cure the defect:
 20        (a)  Committed  a  material violation of any condition, standard or proce-
 21        dure set forth in the approved charter;
 22        (b)  Failed to substantially meet any of the student educational standards
 23        identified in the approved charter;
 24        (c)  Failed to meet generally accepted accounting standards of demonstrate
 25        fiscal management soundness. In order to be  fiscally  sound,  the  public
 26        charter school must be:
 27             (i)   Fiscally stable on a short-term basis, that is, able to service
 28             all upcoming obligations; and
 29             (ii)  Fiscally  sustainable as a going concern, that is, able to rea-
 30             sonably demonstrate its ability to service  any  debt  and  meet  its
 31             financial obligations for the next fiscal year;
 32        (d)  Failed to submit required reports to the authorized chartering entity
 33        governing the charter; or
 34        (e)  Violated any provision of law.
 35        (3)  A  charter  may be revoked by the authorized chartering entity if the
 36    public charter school has failed to cure a defect after  receiving  reasonable
 37    notice  and having had a reasonable opportunity to cure the defect. Revocation
 38    may not occur until the public charter school has been afforded a public hear-
 39    ing and a reasonable opportunity to cure the  defect,  unless  the  authorized
 40    chartering  entity  reasonably  determines that the continued operation of the
 41    public charter school presents an imminent public safety issue, in which  case
 42    the  charter may be revoked immediately. Public hearings shall be conducted by
 43    the governing authorized chartering entity, or such other  person  or  persons

                                       2

  1    appointed  by  the authorized chartering entity to conduct public hearings and
  2    receive evidence as a contested case in accordance with section 67-5242, Idaho
  3    Code. Reasonable notice and opportunity to reply shall include, at a  minimum,
  4    written notice setting out the basis for consideration of revocation, a period
  5    of  not  less than thirty (30) days within which the public charter school can
  6    reply in writing, and a public hearing within thirty (30) days of the  receipt
  7    of the written reply.
  8        (4)  A decision to revoke a charter or to deny a revision of a charter may
  9    be  appealed  directly  to  the state board of education. With respect to such
 10    appeal, the state board of education shall substantially follow the  procedure
 11    as provided in section 33-5207(5)(b), Idaho Code. In the event the state board
 12    of education reverses a decision of revocation, the public charter school sub-
 13    ject to such action shall then be placed under the chartering authority of the
 14    commission.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by    Bastian

                                                     Seconded by Sagness


                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 397


  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, delete lines 24 through 26  and insert:
  3        "(c)  Failed to meet generally accepted  accounting  standards  of  fiscal
  4        management;
  5        (d)  Failed  to  demonstrate  fiscal  soundness.  In  order to be fiscally
  6        sound, the public charter school must be:";
  7    in line 32, delete "(d)" and insert: "(de)"; and in line 34, delete "(e)"  and
  8    insert: "(ef)".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                        HOUSE BILL NO. 397, As Amended in the Senate

                                   BY EDUCATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO PUBLIC CHARTER SCHOOLS; AMENDING SECTION 33-5209, IDAHO  CODE,  TO
  3        REVISE THE GROUNDS REQUIRING WRITTEN NOTICE FROM THE AUTHORIZED CHARTERING
  4        ENTITY TO THE PUBLIC CHARTER SCHOOL.

  5    Be It Enacted by the Legislature of the State of Idaho:

  6        SECTION  1.  That  Section 33-5209, Idaho Code, be, and the same is hereby
  7    amended to read as follows:

  8        33-5209.  ENFORCEMENT -- REVOCATION -- APPEAL. (1) An authorized  charter-
  9    ing  entity shall ensure that all public charter schools for which it approved
 10    petitions, or for which it has responsibility, operate in accordance with  the
 11    approved  charter. A public charter school or the authorized chartering entity
 12    may enter into negotiations to revise  its  charter  at  any  time.  A  public
 13    charter  school may petition to revise its charter at any time. The authorized
 14    chartering entity's review of the revised petition shall be limited  in  scope
 15    solely to the proposed revisions.
 16        (2)  If  the  authorized  chartering entity has reason to believe that the
 17    public charter school has done any of the following, it shall provide the pub-
 18    lic charter school written notice of  the  defect  and  provide  a  reasonable
 19    opportunity to cure the defect:
 20        (a)  Committed  a  material violation of any condition, standard or proce-
 21        dure set forth in the approved charter;
 22        (b)  Failed to substantially meet any of the student educational standards
 23        identified in the approved charter;
 24        (c)  Failed to meet generally accepted accounting standards of fiscal man-
 25        agement;
 26        (d)  Failed to demonstrate fiscal  soundness.  In  order  to  be  fiscally
 27        sound, the public charter school must be:
 28             (i)   Fiscally stable on a short-term basis, that is, able to service
 29             all upcoming obligations; and
 30             (ii)  Fiscally  sustainable as a going concern, that is, able to rea-
 31             sonably demonstrate its ability to service  any  debt  and  meet  its
 32             financial obligations for the next fiscal year;
 33        (de)  Failed  to  submit  required  reports  to  the authorized chartering
 34        entity governing the charter; or
 35        (ef)  Violated any provision of law.
 36        (3)  A charter may be revoked by the authorized chartering entity  if  the
 37    public  charter  school has failed to cure a defect after receiving reasonable
 38    notice and having had a reasonable opportunity to cure the defect.  Revocation
 39    may not occur until the public charter school has been afforded a public hear-
 40    ing  and  a  reasonable  opportunity to cure the defect, unless the authorized
 41    chartering entity reasonably determines that the continued  operation  of  the
 42    public  charter school presents an imminent public safety issue, in which case
 43    the charter may be revoked immediately. Public hearings shall be conducted  by

                                       2

  1    the  governing  authorized  chartering entity, or such other person or persons
  2    appointed by the authorized chartering entity to conduct public  hearings  and
  3    receive evidence as a contested case in accordance with section 67-5242, Idaho
  4    Code.  Reasonable notice and opportunity to reply shall include, at a minimum,
  5    written notice setting out the basis for consideration of revocation, a period
  6    of not less than thirty (30) days within which the public charter  school  can
  7    reply  in writing, and a public hearing within thirty (30) days of the receipt
  8    of the written reply.
  9        (4)  A decision to revoke a charter or to deny a revision of a charter may
 10    be appealed directly to the state board of education.  With  respect  to  such
 11    appeal,  the state board of education shall substantially follow the procedure
 12    as provided in section 33-5207(5)(b), Idaho Code. In the event the state board
 13    of education reverses a decision of revocation, the public charter school sub-
 14    ject to such action shall then be placed under the chartering authority of the
 15    commission.

Statement of Purpose / Fiscal Impact


                  STATEMENT OF PURPOSE

                        RS 17402

Submitted by the Public Charter School Commission:
Idaho Code 33-5209(2)(c) cites “fail[ure] to meet generally 
accepted accounting standards of fiscal management” as one 
condition obligating an authorized chartering entity to issue a 
notice of defect to a public charter school.  The generality of 
this phrase has led to repeated confusion with regard to the 
Public Charter School Commission’s oversight responsibilities as 
an authorized chartering entity.  Specifically, the Commission 
and other authorized chartering entities would benefit from 
clarity regarding whether an authorized chartering entity shall 
issue a notice of defect based on a school’s detrimental 
financial decisions leading to possible financial default, or 
only in situations in which the school has violated an 
accounting principle such as would be reported in a fiscal 
audit.  No significant fiscal impact is anticipated as a result 
of this clarification.


                       FISCAL NOTE

There will be no fiscal impact to the state budget as a result 
of this clarification.



CONTACT
Name:	Tamara Baysinger
Agency:	Office of the State Board of Education
Phone:	332-1583


STATEMENT OF PURPOSE/FISCAL NOTE	                   H 397