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S1328aa........................................................by EDUCATION CHARTER SCHOOLS - Amends existing law to provide that the board of directors of a public charter school is subject to the same rules of conduct in existing provisions of law as are local public school boards of trustees and is subject to the same limitations on pecuniary interests. 02/16 Senate intro - 1st rdg - to printing 02/17 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 - 2004IN THE SENATE SENATE BILL NO. 1328 BY EDUCATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC CHARTER SCHOOLS; AMENDING SECTION 33-5204, IDAHO CODE, TO 3 PROVIDE THAT THE BOARD OF DIRECTORS OF A PUBLIC CHARTER SCHOOL IS SUBJECT 4 TO THE SAME RULES OF CONDUCT IN EXISTING PROVISIONS OF LAW AS ARE LOCAL 5 PUBLIC SCHOOL BOARDS OF TRUSTEES. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 33-5204, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 33-5204. NONPROFIT CORPORATION -- LIABILITY -- INSURANCE. (1) A charter 10 school shall be organized and managed under the Idaho nonprofit corporation 11 act. The board of directors of a charter school shall be deemed public agents 12 authorized by a public school district or the state board of education to con- 13 trol the charter school, but shall function independently of any school board 14 of trustees, except as provided in the charter. A charter school shall be con- 15 sidered a public school for all purposes and shall comply with the audit 16 reporting requirements of section 33-701 6., Idaho Code, and shall annually 17 file financial and statistical reports as required in section 33-701 7., Idaho 18 Code. For the purposes of section 59-1302(15), Idaho Code, a charter school 19 created pursuant to this chapter shall be deemed a governmental entity. Pursu- 20 ant to the provisions of section 63-3622O, Idaho Code, sales to or purchases 21 by a public charter school are exempt from payment of the sales and use tax. A 22 charter school and the board of directors of a charter school are subject to 23 the provisions of: 24 (a) Sections 18-1351 through 18-1362, Idaho Code, on bribery and corrupt 25 influence; 26 (b) Chapter 2, title 59, Idaho Code, on prohibitions against contracts 27 with officers; 28 (c) Chapter 7, title 59, Idaho Code, on ethics in government; 29 (d) Cchapter 23, title 67, Idaho Code, on open public meetings; and 30 (e) Cchapter 3, title 9, Idaho Code, on disclosure of public records 31 in the same manner that a public school and the board of school trustees are 32 subject to those provisions. 33 (2) A charter school may sue or be sued, purchase, receive, hold and con- 34 vey real and personal property for school purposes, and borrow money for such 35 purposes, to the same extent and on the same conditions as a public school 36 district, and its employees, directors and officers shall enjoy the same immu- 37 nities as employees, directors and officers of public school districts and 38 other public schools. The approving authority of a charter school shall have 39 no liability for the acts, omissions, debts or other obligations of a charter 40 school, except as may be provided in an agreement or contract with such 41 charter school. 42 (3) Nothing in this chapter shall prevent the board of directors of a 43 charter school, operating as a nonprofit corporation, from borrowing money to 2 1 finance the purchase of school building facilities. Subject to the terms of a 2 contractual agreement between the board and a lender, nothing herein shall 3 prevent the board from using the facility as collateral for the loan. 4 (4) Charter schools shall secure insurance for liability and property 5 loss.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004Moved by McWilliams Seconded by Gannon IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1328 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in line 9, following "INSURANCE" insert: 3 "-- LIMITATIONS ON PECUNIARY INTERESTS"; and on page 2, following line 5, 4 insert: 5 "(5) It shall be unlawful for: 6 (a) Any director to have pecuniary interest directly or indirectly in any 7 contract or other transaction pertaining to the maintenance or conduct of 8 the chartering authority and charter, or to accept any reward or compensa- 9 tion for services rendered as a director except as may be otherwise pro- 10 vided in this subsection (5). The board of directors of a charter school 11 may accept and award contracts involving the charter school to businesses 12 in which a director or a person related to him by blood or marriage within 13 the second degree has a direct or indirect interest, provided that the 14 procedures set forth in section 18-1361 or 18-1361A, Idaho Code, are fol- 15 lowed. The receiving, soliciting or acceptance of moneys of a charter 16 school for deposit in any bank or trust company, or the lending of moneys 17 by any bank or trust company to any charter school, shall not be deemed to 18 be a contract pertaining to the maintenance or conduct of a charter school 19 and chartering authority within the meaning of this section; nor shall the 20 payment by any charter school board of directors of compensation to any 21 bank or trust company for services rendered in the transaction of any 22 banking business with such charter school board of directors be deemed the 23 payment of any reward or compensation to any officer or director of any 24 such bank or trust company within the meaning of this section. 25 (b) The board of directors of any charter school to enter into or execute 26 any contract with the spouse of any member of such board, the terms of 27 which said contract require, or will require, the payment or delivery of 28 any charter school funds, moneys or property to such spouse, except as 29 provided in section 18-1361 or 18-1361A, Idaho Code. 30 (c) Any relative of any director or relative of the spouse of a director 31 related by affinity or consanguinity within the second degree to be con- 32 sidered for employment in a charter school; such director shall abstain 33 from voting in the election of such relative, and shall be absent from the 34 meeting while such employment is being considered and determined.". 35 CORRECTION TO TITLE 36 On page 1, in line 5, following "TRUSTEES" insert: "AND IS SUBJECT TO THE 37 SAME LIMITATIONS ON PECUNIARY INTERESTS".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004IN THE SENATE SENATE BILL NO. 1328, As Amended BY EDUCATION COMMITTEE 1 AN ACT 2 RELATING TO PUBLIC CHARTER SCHOOLS; AMENDING SECTION 33-5204, IDAHO CODE, TO 3 PROVIDE THAT THE BOARD OF DIRECTORS OF A PUBLIC CHARTER SCHOOL IS SUBJECT 4 TO THE SAME RULES OF CONDUCT IN EXISTING PROVISIONS OF LAW AS ARE LOCAL 5 PUBLIC SCHOOL BOARDS OF TRUSTEES AND IS SUBJECT TO THE SAME LIMITATIONS ON 6 PECUNIARY INTERESTS. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 33-5204, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 33-5204. NONPROFIT CORPORATION -- LIABILITY -- INSURANCE -- LIMITATIONS 11 ON PECUNIARY INTERESTS. (1) A charter school shall be organized and managed 12 under the Idaho nonprofit corporation act. The board of directors of a charter 13 school shall be deemed public agents authorized by a public school district or 14 the state board of education to control the charter school, but shall function 15 independently of any school board of trustees, except as provided in the 16 charter. A charter school shall be considered a public school for all purposes 17 and shall comply with the audit reporting requirements of section 33-701 6., 18 Idaho Code, and shall annually file financial and statistical reports as 19 required in section 33-701 7., Idaho Code. For the purposes of section 20 59-1302(15), Idaho Code, a charter school created pursuant to this chapter 21 shall be deemed a governmental entity. Pursuant to the provisions of section 22 63-3622O, Idaho Code, sales to or purchases by a public charter school are 23 exempt from payment of the sales and use tax. A charter school and the board 24 of directors of a charter school are subject to the provisions of: 25 (a) Sections 18-1351 through 18-1362, Idaho Code, on bribery and corrupt 26 influence; 27 (b) Chapter 2, title 59, Idaho Code, on prohibitions against contracts 28 with officers; 29 (c) Chapter 7, title 59, Idaho Code, on ethics in government; 30 (d) Cchapter 23, title 67, Idaho Code, on open public meetings; and 31 (e) Cchapter 3, title 9, Idaho Code, on disclosure of public records 32 in the same manner that a public school and the board of school trustees are 33 subject to those provisions. 34 (2) A charter school may sue or be sued, purchase, receive, hold and con- 35 vey real and personal property for school purposes, and borrow money for such 36 purposes, to the same extent and on the same conditions as a public school 37 district, and its employees, directors and officers shall enjoy the same immu- 38 nities as employees, directors and officers of public school districts and 39 other public schools. The approving authority of a charter school shall have 40 no liability for the acts, omissions, debts or other obligations of a charter 41 school, except as may be provided in an agreement or contract with such 42 charter school. 43 (3) Nothing in this chapter shall prevent the board of directors of a 2 1 charter school, operating as a nonprofit corporation, from borrowing money to 2 finance the purchase of school building facilities. Subject to the terms of a 3 contractual agreement between the board and a lender, nothing herein shall 4 prevent the board from using the facility as collateral for the loan. 5 (4) Charter schools shall secure insurance for liability and property 6 loss. 7 (5) It shall be unlawful for: 8 (a) Any director to have pecuniary interest directly or indirectly in any 9 contract or other transaction pertaining to the maintenance or conduct of 10 the chartering authority and charter, or to accept any reward or compensa- 11 tion for services rendered as a director except as may be otherwise pro- 12 vided in this subsection (5). The board of directors of a charter school 13 may accept and award contracts involving the charter school to businesses 14 in which a director or a person related to him by blood or marriage within 15 the second degree has a direct or indirect interest, provided that the 16 procedures set forth in section 18-1361 or 18-1361A, Idaho Code, are fol- 17 lowed. The receiving, soliciting or acceptance of moneys of a charter 18 school for deposit in any bank or trust company, or the lending of moneys 19 by any bank or trust company to any charter school, shall not be deemed to 20 be a contract pertaining to the maintenance or conduct of a charter school 21 and chartering authority within the meaning of this section; nor shall the 22 payment by any charter school board of directors of compensation to any 23 bank or trust company for services rendered in the transaction of any 24 banking business with such charter school board of directors be deemed the 25 payment of any reward or compensation to any officer or director of any 26 such bank or trust company within the meaning of this section. 27 (b) The board of directors of any charter school to enter into or execute 28 any contract with the spouse of any member of such board, the terms of 29 which said contract require, or will require, the payment or delivery of 30 any charter school funds, moneys or property to such spouse, except as 31 provided in section 18-1361 or 18-1361A, Idaho Code. 32 (c) Any relative of any director or relative of the spouse of a director 33 related by affinity or consanguinity within the second degree to be con- 34 sidered for employment in a charter school; such director shall abstain 35 from voting in the election of such relative, and shall be absent from the 36 meeting while such employment is being considered and determined.
STATEMENT OF PURPOSE RS 14023 This legislation aligns charter school directing boards with the same ethics in government statutes that apply to traditional public school trustee boards. Namely, this legislation clarifies that the Bribery and Corrupt Influences statute, the Code on Prohibitions Against Contracts with Officers, the Ethics in Government statute and the open meetings and records laws apply to boards of directors in the same manner as they apply to trustee boards. In making these clarifications nothing will alter the nature of charter schools as non-profit corporations. These clarifications will, however, resolve ambiguities that are present in the existing law. By eliminating the ambiguities, directing boards will have guidance on the limitations that have historically applied to the use of public funds. FISCAL IMPACT This legislation has no fiscal impact. Contact Name: Senator Ron McWilliams Phone: 332-1346 STATEMENT OF PURPOSE/FISCAL NOTE S 1328