2005 Legislation
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SENATE BILL NO. 1049 – Charter school, business corp

SENATE BILL NO. 1049

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S1049..........................................................by SCHROEDER
CHARTER SCHOOLS - Amends existing law relating to charter schools to
provide that charter schools shall be organized as general business
corporations.
                                                                        
01/21    Senate intro - 1st rdg - to printing
01/24    Rpt prt - to Educ

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1049
                                                                        
                                        BY SCHROEDER
                                                                        
  1                                        AN ACT
  2    RELATING TO CHARTER SCHOOLS; AMENDING SECTION 33-5204, IDAHO CODE, TO  PROVIDE
  3        THAT  CHARTER SCHOOLS SHALL BE ORGANIZED AS GENERAL BUSINESS CORPORATIONS;
  4        AND AMENDING SECTION 33-5205, IDAHO CODE, TO ELIMINATE A REFERENCE TO NON-
  5        PROFIT CORPORATIONS.
                                                                        
  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  GENERAL  BUSINESS  CORPORATION -- LIABILITY -- INSUR-
 10    ANCE. (1) A public charter school shall be organized  and  managed  under  the
 11    Idaho  nonprofit general business corporation act. The board of directors of a
 12    public charter school shall be deemed public agents  authorized  by  a  public
 13    school  district or the state board of education to control the public charter
 14    school, but shall function independently of any school board  of  trustees  in
 15    any  school  district in which the public charter school is located, except as
 16    provided in the charter. For the purposes of section 59-1302(15), Idaho  Code,
 17    a  public  charter  school  created pursuant to this chapter shall be deemed a
 18    governmental entity. Pursuant to the provisions  of  section  63-3622O,  Idaho
 19    Code, sales to or purchases by a public charter school are exempt from payment
 20    of  the  sales and use tax. A public charter school and the board of directors
 21    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.
                                                                        
                                           2
                                                                        
  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.
                                                                        
 41        SECTION  2.  That  Section 33-5205, Idaho Code, be, and the same is hereby
 42    amended to read as follows:
                                                                        
 43        33-5205.  PETITION TO ESTABLISH PUBLIC CHARTER SCHOOL. (1)  Any  group  of
 44    persons  may  petition to establish a new public charter school, or to convert
 45    an existing traditional public school to a public charter school.
 46        (a)  A petition to establish a new public charter school, including a pub-
 47        lic virtual charter school, shall be signed by not fewer than thirty  (30)
 48        qualified  electors  of  the  service area designated in the petition, and
 49        shall first be submitted to the local board of trustees in which the  pub-
 50        lic  charter school will be located. The board of trustees may either: (i)
 51        consider the petition and approve the charter; or (ii) consider the  peti-
 52        tion  and  reject  the  charter; or (iii) refer the petition to the public
 53        charter school commission. If the  petitioners  and  the  local  board  of
                                                                        
                                           3
                                                                        
  1        trustees  have  not  reached  mutual  agreement  on  the provisions of the
  2        charter, after a reasonable and good faith effort, within thirty (30) days
  3        from the date of the submission of the charter petition,  the  petitioners
  4        may  withdraw their petition from the local board of trustees and may sub-
  5        mit their charter petition to the public charter school commission.
  6        (b)  A petition to convert an existing traditional public school shall  be
  7        submitted  to the board of trustees of the district in which the school is
  8        located for review and approval. The petition shall be signed by not fewer
  9        than sixty percent (60%) of the teachers currently employed by the  school
 10        district  at the school to be converted, and by one (1) or more parents or
 11        guardians of not fewer than sixty percent (60%) of the students  currently
 12        attending  the  school to be converted. Each petition submitted to convert
 13        an existing school or to establish a new charter school  shall  contain  a
 14        copy of the articles of incorporation and the bylaws of the nonprofit cor-
 15        poration, which shall be deemed incorporated into the petition.
 16        (2)  Not  later than thirty (30) days after receiving a petition signed in
 17    accordance with the specifications in subsection  (1)  of  this  section,  the
 18    authorized  chartering  entity shall hold a meeting open to the public for the
 19    purpose of discussing the provisions of the charter, at which time the  autho-
 20    rized  chartering  entity  shall  consider  the merits of the petition and the
 21    level of employee and parental support for the petition.  In  the  case  of  a
 22    petition submitted to the public charter school commission, the public hearing
 23    shall also include any oral or written comments that an authorized representa-
 24    tive  of the school district in which the proposed public charter school would
 25    be physically located may provide regarding the merits of the petition and any
 26    potential impacts on the school district. Following review of the petition and
 27    the public hearing, the authorized chartering entity  shall  either  grant  or
 28    deny  the  charter within sixty (60) days of receipt of the petition, provided
 29    however, that the date may be extended by an additional sixty (60) days if the
 30    petition fails to contain the requisite signatures or fails to contain all  of
 31    the  information  required  in  this  section, or if both parties agree to the
 32    extension.
 33        (3)  An authorized chartering entity may grant a charter under the  provi-
 34    sions  of  this  chapter  only if it determines that the petition contains the
 35    requisite signatures, the information required by subsection (4) of this  sec-
 36    tion, and additional statements describing all of the following:
 37        (a)  The  proposed  educational  program  of  the  public  charter school,
 38        designed among other things, to identify what it means to be an  "educated
 39        person"  in  the  twenty-first  century, and how learning best occurs. The
 40        goals identified in the program shall include how  all  educational  thor-
 41        oughness  standards  as  defined  in section 33-1612, Idaho Code, shall be
 42        fulfilled.
 43        (b)  The measurable student educational standards identified  for  use  by
 44        the public charter school. "Student educational standards" for the purpose
 45        of  this  chapter  means  the  extent  to which all students of the public
 46        charter school demonstrate they have attained  the  skills  and  knowledge
 47        specified as goals in the school's educational program.
 48        (c)  The  method by which student progress in meeting those student educa-
 49        tional standards is to be measured.
 50        (d)  A provision by which students of the public charter  school  will  be
 51        tested  with the same standardized tests as other Idaho public school stu-
 52        dents.
 53        (e)  A provision which ensures that the public  charter  school  shall  be
 54        state accredited as provided by rule of the state board of education.
 55        (f)  The  governance structure of the public charter school including, but
                                                                        
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  1        not limited to, the person or entity who shall be legally accountable  for
  2        the operation of the public charter school, and the process to be followed
  3        by the public charter school to ensure parental involvement.
  4        (g)  The  qualifications  to  be met by individuals employed by the public
  5        charter school. Instructional staff shall be certified  teachers,  or  may
  6        apply for a waiver or any of the limited certification options as provided
  7        by rule of the state board of education.
  8        (h)  The  procedures  that the public charter school will follow to ensure
  9        the health and safety of students and staff.
 10        (i)  Admission procedures, including provision  for  overenrollment.  Such
 11        admission  procedures  shall provide that the initial admission procedures
 12        for a new public charter school, including provision  for  overenrollment,
 13        will  be determined by lottery or other random method, except as otherwise
 14        provided herein. If initial capacity is insufficient to enroll all  pupils
 15        who submit a timely application, then the admission procedures may provide
 16        that  preference shall be given in the following order: first, to children
 17        of founders, provided that this admission preference shall be  limited  to
 18        not  more  than  ten  percent  (10%) of the capacity of the public charter
 19        school; second, to siblings of pupils already selected by the  lottery  or
 20        other  random method; and third, an equitable selection process such as by
 21        lottery or other random method. If capacity is insufficient to enroll  all
 22        pupils  for subsequent school terms, who submit a timely application, then
 23        the admission procedures may provide that preference shall be given in the
 24        following order: first, to pupils returning to the public  charter  school
 25        in the second or any subsequent year of its operation; second, to children
 26        of  founders,  provided that this admission preference shall be limited to
 27        not more than ten percent (10%) of the  capacity  of  the  public  charter
 28        school;  third,  to  siblings  of  pupils  already  enrolled in the public
 29        charter school; and fourth, an equitable selection process such as by lot-
 30        tery or other random method. There shall be no carryover from year to year
 31        of the list maintained to fill vacancies. A new lottery shall be conducted
 32        each year to fill vacancies which become available.
 33        (j)  The manner in which an annual audit of the financial and programmatic
 34        operations of the public charter school is to be conducted.
 35        (k)  The disciplinary procedures that the public charter school will  uti-
 36        lize, including the procedure by which students may be suspended, expelled
 37        and reenrolled.
 38        (l)  A  provision  which  ensures  that  all  staff  members of the public
 39        charter school will be covered by the public employee  retirement  system,
 40        federal  social security, unemployment insurance and worker's compensation
 41        insurance.
 42        (m)  The public school attendance alternative for students residing within
 43        the school district who choose not to attend the public charter school.
 44        (n)  A description of the transfer rights of any employee choosing to work
 45        in a public charter school and the rights of such employees to  return  to
 46        any  noncharter school in the school district after employment at a public
 47        charter school.
 48        (o)  A provision which ensures that the staff of the public charter school
 49        shall be considered a separate unit for purposes of collective bargaining.
 50        (p)  The procedures to be followed by the public charter  school  and  the
 51        authorized chartering entity to resolve disputes relating to provisions of
 52        the charter.
 53        (q)  The  manner  by  which special education services will be provided to
 54        students with disabilities who are eligible pursuant to the federal  indi-
 55        viduals with disabilities education act.
                                                                        
                                           5
                                                                        
  1        (r)  The  manner by which eligible students from the public charter school
  2        shall be allowed to participate in dual enrollment in  noncharter  schools
  3        within the same district  as the public charter school, as provided for in
  4        section 33-203(7), Idaho Code.
  5        (s)  The  process by which the citizens in the area of attendance shall be
  6        made aware of the enrollment opportunities of the public charter school.
  7        (4)  The petitioner shall provide information regarding the proposed oper-
  8    ation and potential effects of the public charter school  including,  but  not
  9    limited  to,  the  facilities to be utilized by the public charter school, the
 10    manner in which administrative services of the public charter school are to be
 11    provided and the potential civil liability effects  upon  the  public  charter
 12    school and upon the authorized chartering entity.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 14642

Amends Section 33-5204, Idaho Code, to provide that charter
schools shall be organized as general business corporations; and
amends Section 33-5205, Idaho Code, to eliminate a reference to
non-profit corporations.



                           FISCAL NOTE

None


Contact
Name:  Senator Gary Schroeder 
Phone: 208-332-1324


STATEMENT OF PURPOSE/FISCAL NOTE                      S 1049