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S1310aa........................................................by EDUCATION
CHARTER SCHOOLS - Amends existing law to clarify application of financial
reporting requirements to charter schools.
02/13 Senate intro - 1st rdg - to printing
02/16 Rpt prt - to Educ
02/23 Rpt out - to 14th Ord
03/02 Rpt out amen - to engros
03/03 Rpt engros - 1st rdg - to 2nd rdg as amen
03/04 2nd rdg - to 3rd rdg as amen
03/12 Ret'd to Educ
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1310
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO CHARTER SCHOOLS; AMENDING SECTION 33-5210, IDAHO CODE, TO CLARIFY
3 APPLICATION OF FINANCIAL REPORTING REQUIREMENTS TO CHARTER SCHOOLS.
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 33-5210, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 33-5210. APPLICATION OF SCHOOL LAW -- ACCOUNTABILITY -- EXEMPTION FROM
8 STATE RULES. (1) All public charter schools are under the general supervision
9 of the state board of education.
10 (2) The local board of trustees and the state board of education are
11 responsible to ensure that each charter school program approved by it meets
12 the terms of the charter, complies with the general education laws of the
13 state unless specifically directed otherwise in this chapter 52, title 33,
14 Idaho Code, and operates in accordance with the state educational standards of
15 thoroughness as defined in section 33-1612, Idaho Code.
16 (3) Each charter school shall comply with the financial reporting
17 requirements of section 33-701 subsections 5. through 10., Idaho Code, in the
18 same manner as those requirements are imposed upon school districts.
19 (4) Each charter school is otherwise exempt from rules governing school
20 districts which have been promulgated by the state board of education or by
21 the superintendent of public instruction, with the exception of state rules
22 relating to:
23 (a) Waiver of teacher certification as necessitated by the provisions of
24 section 33-5205(3)(g), Idaho Code;
25 (b) Accreditation of the school as necessitated by the provisions of sec-
26 tion 33-5205(3)(e), Idaho Code;
27 (c) Qualifications of a student for attendance at an alternative school
28 as necessitated by the provisions of section 33-5208(3), Idaho Code; and
29 (d) The requirement that all employees of the school undergo a criminal
30 history check as required by section 33-130, Idaho Code.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by Gannon
Seconded by Goedde
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1310
1 AMENDMENT TO THE BILL
2 On page 1 of the printed bill, following line 4, insert:
3 "SECTION 1. That Section 33-5204, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 33-5204. NONPROFIT CORPORATION -- LIABILITY -- INSURANCE. (1) A charter
6 school shall be organized and managed under the Idaho nonprofit corporation
7 act. The board of directors of a charter school shall be deemed public agents
8 authorized by a public school district or the state board of education to con-
9 trol the charter school, but shall function independently of any school board
10 of trustees, except as provided in the charter. A charter school shall be con-
11 sidered a public school for all purposes and shall comply with the audit
12 reporting requirements of section 33-701 6., Idaho Code, and shall annually
13 file financial and statistical reports as required in section 33-701 7., Idaho
14 Code. For the purposes of section 59-1302(15), Idaho Code, a charter school
15 created pursuant to this chapter shall be deemed a governmental entity. Pursu-
16 ant to the provisions of section 63-3622O, Idaho Code, sales to or purchases
17 by a public charter school are exempt from payment of the sales and use tax. A
18 charter school and the board of directors of a charter school are subject to
19 the provisions of chapter 23, title 67, and chapter 3, title 9, Idaho Code, in
20 the same manner that a public school and the board of school trustees are sub-
21 ject to those provisions.
22 (2) A charter school may sue or be sued, purchase, receive, hold and con-
23 vey real and personal property for school purposes, and borrow money for such
24 purposes, to the same extent and on the same conditions as a public school
25 district, and its employees, directors and officers shall enjoy the same immu-
26 nities as employees, directors and officers of public school districts and
27 other public schools. The approving authority of a charter school shall have
28 no liability for the acts, omissions, debts or other obligations of a charter
29 school, except as may be provided in an agreement or contract with such
30 charter school.
31 (3) Nothing in this chapter shall prevent the board of directors of a
32 charter school, operating as a nonprofit corporation, from borrowing money to
33 finance the purchase of school building facilities. Subject to the terms of a
34 contractual agreement between the board and a lender, nothing herein shall
35 prevent the board from using the facility as collateral for the loan.
36 (4) Charter schools shall secure insurance for liability and property
37 loss.";
38 and renumber the subsequent section of the bill accordingly.
39 CORRECTION TO TITLE
40 On page 1, in line 2, following "SCHOOLS;" insert: "AMENDING SECTION
41 33-5204, IDAHO CODE, TO REMOVE CODE CITATIONS; AND".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1310, As Amended
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO CHARTER SCHOOLS; AMENDING SECTION 33-5204, IDAHO CODE, TO REMOVE
3 CODE CITATIONS; AND AMENDING SECTION 33-5210, IDAHO CODE, TO CLARIFY
4 APPLICATION OF FINANCIAL REPORTING REQUIREMENTS TO CHARTER SCHOOLS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 33-5204, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 33-5204. NONPROFIT CORPORATION -- LIABILITY -- INSURANCE. (1) A charter
9 school shall be organized and managed under the Idaho nonprofit corporation
10 act. The board of directors of a charter school shall be deemed public agents
11 authorized by a public school district or the state board of education to con-
12 trol the charter school, but shall function independently of any school board
13 of trustees, except as provided in the charter. A charter school shall be con-
14 sidered a public school for all purposes and shall comply with the audit
15 reporting requirements of section 33-701 6., Idaho Code, and shall annually
16 file financial and statistical reports as required in section 33-701 7., Idaho
17 Code. For the purposes of section 59-1302(15), Idaho Code, a charter school
18 created pursuant to this chapter shall be deemed a governmental entity. Pursu-
19 ant to the provisions of section 63-3622O, Idaho Code, sales to or purchases
20 by a public charter school are exempt from payment of the sales and use tax. A
21 charter school and the board of directors of a charter school are subject to
22 the provisions of chapter 23, title 67, and chapter 3, title 9, Idaho Code, in
23 the same manner that a public school and the board of school trustees are sub-
24 ject to those provisions.
25 (2) A charter school may sue or be sued, purchase, receive, hold and con-
26 vey real and personal property for school purposes, and borrow money for such
27 purposes, to the same extent and on the same conditions as a public school
28 district, and its employees, directors and officers shall enjoy the same immu-
29 nities as employees, directors and officers of public school districts and
30 other public schools. The approving authority of a charter school shall have
31 no liability for the acts, omissions, debts or other obligations of a charter
32 school, except as may be provided in an agreement or contract with such
33 charter school.
34 (3) Nothing in this chapter shall prevent the board of directors of a
35 charter school, operating as a nonprofit corporation, from borrowing money to
36 finance the purchase of school building facilities. Subject to the terms of a
37 contractual agreement between the board and a lender, nothing herein shall
38 prevent the board from using the facility as collateral for the loan.
39 (4) Charter schools shall secure insurance for liability and property
40 loss.
41 SECTION 2. That Section 33-5210, Idaho Code, be, and the same is hereby
42 amended to read as follows:
2
1 33-5210. APPLICATION OF SCHOOL LAW -- ACCOUNTABILITY -- EXEMPTION FROM
2 STATE RULES. (1) All public charter schools are under the general supervision
3 of the state board of education.
4 (2) The local board of trustees and the state board of education are
5 responsible to ensure that each charter school program approved by it meets
6 the terms of the charter, complies with the general education laws of the
7 state unless specifically directed otherwise in this chapter 52, title 33,
8 Idaho Code, and operates in accordance with the state educational standards of
9 thoroughness as defined in section 33-1612, Idaho Code.
10 (3) Each charter school shall comply with the financial reporting
11 requirements of section 33-701 subsections 5. through 10., Idaho Code, in the
12 same manner as those requirements are imposed upon school districts.
13 (4) Each charter school is otherwise exempt from rules governing school
14 districts which have been promulgated by the state board of education or by
15 the superintendent of public instruction, with the exception of state rules
16 relating to:
17 (a) Waiver of teacher certification as necessitated by the provisions of
18 section 33-5205(3)(g), Idaho Code;
19 (b) Accreditation of the school as necessitated by the provisions of sec-
20 tion 33-5205(3)(e), Idaho Code;
21 (c) Qualifications of a student for attendance at an alternative school
22 as necessitated by the provisions of section 33-5208(3), Idaho Code; and
23 (d) The requirement that all employees of the school undergo a criminal
24 history check as required by section 33-130, Idaho Code.
STATEMENT OF PURPOSE
RS 13983
The purpose of this legislation is to eliminate the confusion
that exists about charter schools accounting for and reporting
the use of State funds. It would require the same standards of
accountability for charter school's board of directors that exist
for School District Boards of Directors. It requires the
preparation of annual financial reports, publishing the annual
statement of financial condition, annual audit of financial
statements and authorizes investment of excess cash with the
interest accruing back to the charter school.
FISCAL IMPACT
None
Contact
Name: Senator Tom Gannon
Phone: 332-1342
STATEMENT OF PURPOSE/FISCAL NOTE S 1310