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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 - 2004
IN 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 - 2004
Moved 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 - 2004
IN 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