2005 Legislation
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SENATE BILL NO. 1019 – Charter schools, nonprofit corp


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Bill Status

S1019..........................................................by SCHROEDER
CHARTER SCHOOLS - Amends existing law relating to organization of public
charter schools as nonprofit corporations to incorporate schools chartered
by the public charter school commission.
01/18    Senate intro - 1st rdg - to printing
01/19    Rpt prt - to Educ
01/31    Rpt out - rec d/p - to 2nd rdg
02/01    2nd rdg - to 3rd rdg
02/07    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Gannon, Geddes, Goedde, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Hill, Noble
    Floor Sponsor - Schroeder
    Title apvd - to House
02/08    House intro - 1st rdg - to Educ

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                       IN THE SENATE
                                    SENATE BILL NO. 1019
                                        BY SCHROEDER
  1                                        AN ACT
  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 public
  9    charter school shall be organized and managed under the Idaho nonprofit corpo-
 10    ration act. The board of directors of a public charter school shall be  deemed
 11    public  agents  authorized  by  a public school district or the public charter
 12    school commission, or the state board  of  education  to  control  the  public
 13    charter  school,  but  shall  function  independently  of  any school board of
 14    trustees in any school district in which the public charter school is located,
 15    or the public charter school commission  or  the  state  board  of  education,
 16    except  as  provided  in the charter. For the purposes of section 59-1302(15),
 17    Idaho Code, a public charter school created pursuant to this chapter shall  be
 18    deemed  a governmental entity. Pursuant to the provisions of section 63-3622O,
 19    Idaho Code, sales to or purchases by a public charter school are  exempt  from
 20    payment  of  the  sales  and use tax. A public charter school and the board of
 21    directors of a public charter school are subject to the provisions of:
 22        (a)  Sections 18-1351 through 18-1362, Idaho Code, on bribery and  corrupt
 23        influence;
 24        (b)  Chapter  2,  title  59, Idaho Code, on prohibitions against contracts
 25        with officers;
 26        (c)  Chapter 7, title 59, Idaho Code, on ethics in government;
 27        (d)  Chapter 23, title 67, Idaho Code, on open public meetings; and
 28        (e)  Chapter 3, title 9, Idaho Code, on disclosure of public records
 29    in the same manner that a traditional public school and the  board  of  school
 30    trustees of a school district are subject to those provisions.
 31        (2)  A  public  charter school may sue or be sued, purchase, receive, hold
 32    and convey real and personal property for school purposes,  and  borrow  money
 33    for  such  purposes, to the same extent and on the same conditions as a tradi-
 34    tional public school district, and its employees, directors and officers shall
 35    enjoy the same immunities as employees, directors and officers of  traditional
 36    public  school districts and other public schools, including those provided by
 37    chapter 9, title 6, Idaho Code. The authorized chartering entity that grants a
 38    public school charter shall have no liability for the acts,  omissions,  debts
 39    or  other obligations of a public charter school, except as may be provided in
 40    the charter. A local public school district shall have no  liability  for  the
 41    acts, omissions, debts or other obligations of a public charter school located
 42    in  its  district  that  has  been approved by an authorized chartering entity
 43    other than the board of trustees of the local school district.
  1        (3)  Nothing in this chapter shall prevent the board  of  directors  of  a
  2    public  charter  school,  operating as a nonprofit corporation, from borrowing
  3    money to finance the purchase or lease of school building  facilities,  equip-
  4    ment and furnishings of those school building facilities. Subject to the terms
  5    of  a  contractual  agreement  between the board and a lender, nothing  herein
  6    shall prevent the board from using the facility, its  equipment  and  furnish-
  7    ings, as collateral for the loan.
  8        (4)  Public charter schools shall secure insurance for liability and prop-
  9    erty loss.
 10        (5)  It shall be unlawful for:
 11        (a)  Any director to have pecuniary interest directly or indirectly in any
 12        contract  or other transaction pertaining to the maintenance or conduct of
 13        the authorized chartering entity and charter, or to accept any  reward  or
 14        compensation  for  services rendered as a director except as may be other-
 15        wise provided in this subsection (5). The board of directors of  a  public
 16        charter school may accept and award contracts involving the public charter
 17        school  to  businesses in which the director or a person related to him by
 18        blood or marriage within the second degree has a direct or indirect inter-
 19        est, provided  that  the  procedures  set  forth  in  section  18-1361  or
 20        18-1361A,  Idaho  Code,  are followed. The receiving, soliciting or accep-
 21        tance of moneys of a public charter school for  deposit  in  any  bank  or
 22        trust  company,  or  the lending of moneys by any bank or trust company to
 23        any public charter school, shall not be deemed to be a contract pertaining
 24        to the maintenance or conduct of a public charter  school  and  authorized
 25        chartering  entity  within the meaning of this section; nor shall the pay-
 26        ment by any public charter school board of directors  of  compensation  to
 27        any  bank or trust company for services rendered in the transaction of any
 28        banking business with such public charter school  board  of  directors  be
 29        deemed  the payment of any reward or compensation to any officer or direc-
 30        tor of any such bank or trust company within the meaning of this section.
 31        (b)  The board of directors of any public charter school to enter into  or
 32        execute  any  contract  with  the  spouse of any member of such board, the
 33        terms of which said contract require, or  will  require,  the  payment  or
 34        delivery  of  any  public charter school funds, moneys or property to such
 35        spouse, except as provided in section 18-1361 or 18-1361A, Idaho Code.
 36        (6)  When any relative of any director or relative  of  the  spouse  of  a
 37    director  related  by affinity or consanguinity within the second degree is to
 38    be considered for employment in a public charter school, such  director  shall
 39    abstain from voting in the election of such relative, and shall be absent from
 40    the meeting while such employment is being considered and determined.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 14626
This legislation adds the Public Charter School Commission as an
authorized chartering entity.  This section of the law was not
updated in 2004 when S1444 created the Public Charter School

                          FISCAL IMPACT
No fiscal impact on the general fund.
Name: Jan Sylvester 
Phone: 208-884-5680

STATEMENT OF PURPOSE/FISCAL NOTE                    S 1019