HB 625-FN-A - AS INTRODUCED

2015 SESSION

15-0336

04/03

HOUSE BILL 625-FN-A

AN ACT relative to public charter schools.

SPONSORS: Rep. Weyler, Rock 13; Rep. Cordelli, Carr 4; Rep. Boehm, Hills 20; Rep. K. Roberts, Ches 16; Sen. Cataldo, Dist 6

COMMITTEE: Education

ANALYSIS

This bill establishes a state public charter school commission to administer the approval and operation of public charter schools in the state.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15-0336

04/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Fifteen

AN ACT relative to public charter schools.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Public Charter Schools. RSA 194-B is repealed and reenacted to read as follows:

CHAPTER 194-B

PUBLIC CHARTER SCHOOLS

194-B:1 Legislative Findings.

I. The general court hereby finds and declares the following:

(a) It is in the best interests of the people of the state to provide all children with public schools that reflect high expectations and to create conditions in all schools where these expectations can be met.

(b) Education reform is necessary to strengthen the performance of elementary and secondary public school students.

(c) Those who know students best, their parents and educators, make the best education decisions regarding the students.

(d) Parents and educators have a right and a responsibility to participate in the education institutions which serve them.

(e) Different students learn differently and public school programs should be customized to fit the needs of individual students.

(f) There are parents, educators, and other citizens in the state who are willing and able to offer educational programs but who lack a channel through which they can direct their efforts.

II. The purposes of the state’s public charter schools as a whole are:

(a) To improve student learning by creating high-quality schools with high standards for student performance;

(b) To close achievement gaps between high-performing and low-performing groups of public school students;

(c) To increase high-quality educational opportunities within the public education system for all students, especially those at risk of academic failure;

(d) To create new professional opportunities for teachers, school administrators, and other school personnel that allow them to have a direct voice in the operation of their schools;

(e) To encourage the use of different, high-quality models of teaching, governing, scheduling, or other aspects of schooling that meet a variety of student needs;

(f) To allow public schools freedom and flexibility in exchange for exceptional levels of results-driven accountability;

(g) To provide students, parents, community members, and local entities with expanded opportunities for involvement in the public education system; and

(h) To encourage the replication of successful public charter schools.

III. All public charter schools in the state established under this chapter are public schools and are part of the state’s public education system. The provisions of this chapter should be interpreted liberally to support the findings and purposes of this section and to advance a renewed commitment by the state to the mission, goals, and diversity of public education.

194-B:2 Definitions. In this chapter:

I. “Applicant” means any person or group that develops and submits an application for a public charter school to an authorizer.

II. “Application” means a proposal from an applicant to an authorizer to enter into a charter contract whereby the proposed school obtains public charter school status.

III. “At-risk student” means a student who has an economic or academic disadvantage that requires special services and assistance to succeed in educational programs. The term includes, but is not necessarily limited to, students who are members of economically disadvantaged families, students who are identified as having special educational needs, students who are limited in English proficiency, students who are at risk of dropping out of high school, and students who do not meet minimum standards of academic proficiency.

IV. “Authorizer” means an entity authorized under this chapter to review applications, decide whether to approve or reject applications, enter into charter contracts with applicants, oversee public charter schools, and decide whether to renew, not renew, or revoke charter contracts.

V. “Charter contract” means a fixed-term, renewable contract between a public charter school and an authorizer that outlines the roles, powers, responsibilities, and performance expectations for each party to the contract.

VI. “Commission” means the state public charter school commission established in RSA 194-B:4.

VII. “Conversion public charter school” means a charter school that existed as a non-charter public school before becoming a public charter school.

VIII. “Education service provider” means a for-profit education management organization, a nonprofit charter management organization, a school design provider, or any other partner entity with which a public charter school intends to contract for educational design, implementation, or comprehensive management.

IX. “Governing board” means the independent board of a public charter school that is party to the charter contract with the authorizer and whose members have been elected or selected pursuant to the school’s application.

X. “Local school board” means a school board exercising management and control of a local school district pursuant to the state constitution and state statutes.

XI. “Local school district” means a public agency that establishes and supervises one or more public schools within its geographical limits pursuant to state law.

XII. “Non-charter public school” means a public school that is under the direct management, governance, and control of a local school board or the state.

XIII. “Parent” means a parent, guardian, or other person or entity having legal custody of a child.

XIV. “Public charter school” means a public school that:

(a) Has autonomy over decisions including, but not limited to, matters concerning finance, personnel, scheduling, curriculum, and instruction.

(b) Is governed by an independent governing board.

(c) Is established and operating under the terms of a charter contract between the school’s governing board and its authorizer.

(d) Is a school to which parents choose to send their children.

(e) Is a school that admits students on the basis of a lottery if more students apply for admission than can be accommodated.

(f) Provides a program of education that includes one or more of the following: pre-school, pre-kindergarten, any grade or grades from kindergarten through grade 12 and adult community, continuing, and vocational education programs.

(g) Operates in pursuit of a specific set of educational objectives as defined in its charter contract.

(h) Operates under the oversight of its authorizer in accordance with its charter contract.

XV. “Student” means any child who is eligible for attendance in a public school in the state.

XVI. “Virtual public charter school” means a public charter school that offers educational services predominantly through an online program.

194-B:3 Enrollment.

I. A public charter school shall be open to any student residing in the state.

II. A school district shall not require any student enrolled in the school district to attend a public charter school.

III. A public charter school shall not limit admission based on ethnicity, national origin, religion, gender, income level, disabling condition, proficiency in the English language, or academic or athletic ability.

IV. A public charter school may limit admission to students within a given age group or grade level and may be organized around a special emphasis, theme, or concept as stated in the school’s application.

V. A public charter school shall enroll all students who wish to attend the school, unless the number of students exceeds the capacity of a program, class, grade level, or building.

VI. If capacity is insufficient to enroll all students who wish to attend the school, the public charter school shall select students through a lottery.

VII. Any non-charter public school converting partially or entirely to a public charter school shall adopt and maintain a policy giving enrollment preference to students who reside within the former attendance area of that public school. This enrollment preference shall exclude such students from entering into a lottery.

VIII. A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year and to siblings of students already enrolled in the public charter school. This enrollment preference shall exclude such students from entering into a lottery.

IX. A public charter school may give enrollment preference to children of a public charter school’s founders, governing board members, and full-time employees, so long as they constitute no more than 10 percent of the school’s total student population.

X. This section shall not preclude the formation of a public charter school whose mission is focused on serving students with disabilities, students of the same gender, students who pose such severe disciplinary problems that they warrant a specific educational program, or students who are at risk of academic failure. If capacity is insufficient to enroll all students who wish to attend such school, the public charter school shall select students through a lottery.

XI. If a student who was previously enrolled in a public charter school enrolls in another public school in this state, the student’s new school shall accept credits earned by the student in courses or instructional programs at the public charter school in a uniform and consistent manner and according to the same criteria that are used to accept academic credits from other public schools.

XII. A school district shall provide or publicize to parents and the general public information about public charter schools authorized by the district as an enrollment option within the district to the same extent and through the same means that the district provides and publicizes information about non-charter public schools in the district.

XIII. An authorizer shall not restrict the number of students a public charter school may enroll. The capacity of the public charter school shall be determined annually by the governing board of the public charter school in conjunction with the authorizer and in consideration of the public charter school’s ability to facilitate the academic success of its students, to achieve the other objectives specified in the charter contract, and to ensure that its student enrollment does not exceed the capacity of its facility or site.

194-B:4 State Public Charter School Commission.

I. There is hereby established a state public charter school commission as an independent state agency with statewide chartering jurisdiction and authority. The mission of the commission shall be to authorize high-quality public charter schools throughout the state, particularly schools designed to expand opportunities for at-risk students, consistent with the purposes of this chapter.

II. The commission shall consist of 9 members, no more than 5 of whom shall be members of the same political party. Three members shall be appointed by the governor; 3 members shall be appointed by the president of the senate; and 3 members shall be appointed by the speaker of the house of representatives. In making the appointments, the governor, the president of the senate, and the speaker of the house of representatives shall ensure statewide geographic and demographic diversity among commission members.

III. Members appointed to the commission shall collectively possess strong experience and expertise in public and nonprofit governance, management and finance, public school leadership, assessment, and curriculum and instruction, and public education law. All members of the commission shall have demonstrated understanding of and commitment to charter schooling as a strategy for strengthening public education.

IV. To establish staggered terms of office, the initial term of office for 3 commission members shall be 4 years and thereafter shall be 3 years; the initial term of office for another 3 members shall be 3 years and thereafter shall be 3 years; and the initial term of office for the last 3 members shall be 2 years and thereafter shall be 2 years. No member shall serve more than 7 consecutive years. The initial appointments shall be made no later than 60 days after the effective date of this chapter.

V. A member of the commission may be removed for any cause that renders the member incapable or unfit to discharge the duties of the office. Whenever a vacancy on the commission exists, the original appointing authority shall appoint a member for the remaining portion of the term.

VI. The commission may receive and expend gifts, grants, and donations of any kind from any public or private entity to carry out the purposes of this chapter.

VII. The commission shall operate with dedicated resources and staff qualified to execute the day-to-day responsibilities of public charter school authorizing in accordance with this chapter.

VIII. The commission shall develop technical advice and guidelines to applicants interested in opening a public charter school and shall offer training sessions to applicants in the areas of application and enrollment procedures, curriculum planning, budgeting and funding, special education issues, and any other area deemed relevant by the commission.

IX.(a) The commission shall publicize to all local school boards the opportunity to register with the state for chartering authority within the school districts they oversee. By November 1 of each year, the commission shall provide information about the opportunity, including a registration deadline, to all local school boards. To register as a charter authorizer in its school district, each interested local school board shall submit the following information in a format to be established by the commission:

(1) Written notification of intent to serve as a charter authorizer in accordance with this chapter.

(2) An explanation of the local school board’s vision for chartering.

(3) An explanation of the local school board’s budget and personnel capacity and commitment to execute the duties of quality charter authorizing, in accordance with this chapter.

(4) An explanation of how the local school board will solicit public charter school applicants, in accordance with this chapter.

(5) A description or outline of the performance framework the local school board will use to guide the establishment of a charter contract and for ongoing oversight and evaluation of public charter schools, consistent with the requirements of this chapter.

(6) A draft of the local school board’s renewal, revocation, and nonrenewal processes, consistent with this section.

(7) A statement of assurance that the local school board commits to serving as a charter authorizer in fulfillment of the expectations, spirit, and intent of this chapter, and will fully participate in any authorizer training provided or required by the state.

(b) Within 60 days of receipt of a local school board’s duly submitted registration materials, the commission shall register the local school board as a charter authorizer within the local board’s school district, and shall provide the local board a letter confirming its registration as a charter authorizer. No local school board shall engage in any charter-authorizing functions without current registration as a charter authorizer with the state. Once registered, the local school board’s registration as a charter authorizer shall continue from year to year, provided that the local school board fulfills all charter-authorizing duties and expectations set forth in this chapter and remains an authorizer in good standing with the commission.

X. The commission may adopt rules, pursuant to RSA 541-A, relevant to public charter school application and enrollment procedures, approval and funding of authorizers, funding of public charter schools, and training and technical advice for applicants.

194-B:5 Authorizers.

I. The state public charter school commission established under RSA 194-B:4 may authorize public charter schools anywhere in the state, provided that the commission fulfills the requirements of all public charter school authorizers under this chapter.

II. A local school board may register with the commission, pursuant to RSA 194-B:4, for chartering authority within the boundaries of the school district overseen by the local school board.

III. Governing boards of accredited public or private postsecondary institutions, including community colleges, technical colleges, tribal colleges, and 4-year colleges and universities, may apply to the commission, pursuant to this section for statewide, regional, or local chartering authority, in accordance with each institution’s regular operating jurisdiction.

IV. A mayor may apply to the commission, pursuant to this section, for chartering authority within the mayor’s jurisdiction.

V. A city council may apply to the commission, pursuant to this section, for chartering authority within the city council’s jurisdiction.

VI. Governing boards of nonprofit or charitable organizations, which are exempt from federal taxes under sections 501(c)(3) or 501(c)(6) of the Internal Revenue Code, may apply to the commission, pursuant to this section and may be granted statewide, regional, or local chartering authority. Nonpublic sectarian or religious organizations, and any other charitable organizations which in their federal Internal Revenue Service Form 1023, Part IV, describe activities indicating a religious purpose, are not eligible to apply to become an authorizer.

194-B:6 Approval of Authorizers.

I. The commission shall establish the annual application and approval process, including cycles and deadlines during the fiscal year, for all entities eligible to apply for chartering authority, as set forth in this section. By November 1 of each year, the commission shall make available information and guidelines for all eligible entities concerning the opportunity to apply for chartering authority under this chapter. The application process shall require each interested eligible entity to submit an application that clearly explains or presents the following elements:

(a) Written notification of intent to serve as a charter authorizer in accordance with this chapter.

(b) The applicant entity’s vision for chartering.

(c) A plan to support the vision presented, including explanation and evidence of the applicant entity’s budget and personnel capacity and commitment to execute the responsibilities of quality charter authorizing, in accordance with this chapter.

(d) A draft or preliminary outline of the request for proposals that the applicant entity would, if approved as a charter authorizer, issue to solicit public charter school applicants, consistent with this section.

(e) A draft of the performance framework that the applicant entity would, if approved as a charter authorizer, use to guide the establishment of a charter contract and for ongoing oversight and evaluation of public charter schools, consistent with the requirements of this chapter.

(f) A draft of the applicant entity’s renewal, revocation, and nonrenewal processes, consistent with this section.

(g) A statement of assurance that the applicant entity seeks to serve as a charter authorizer in fulfillment of the expectations, spirit, and intent of this chapter, and that if approved as a charter authorizer, the entity will fully participate in any authorizer training provided or required by the state.

(h) A statement of assurance that the applicant will ensure public accountability and transparency in all matters concerning their charter-authorizing practices, decisions, and expenditures.

II. By July 1 of each year, the commission shall decide whether to grant or deny chartering authority to each applicant. The commission shall make its decisions on the merits of each applicant’s proposal and plans.

III. Within 60 days of the commission’s decision, the commission shall execute a renewable authorizing contract with each entity it has approved for chartering authority. The initial term of each authorizing contract shall be 6 years. The authorizing contract shall specify each approved entity’s agreement to serve as a charter authorizer in accordance with this chapter, and shall specify additional performance terms based on the applicant’s proposal and plan for chartering. No approved entity shall commence charter authorizing without an authorizing contract in effect.

194-B:7 Powers and Duties of Authorizers.

I. An authorizer shall have the following powers and duties:

(a) Solicit and evaluate charter applications.

(b) Approve quality charter applications that meet identified educational needs and promote a diversity of educational choices.

(c) Decline to approve weak or inadequate charter applications.

(d) Negotiate and execute sound charter contracts with each approved public charter school.

(e) Monitor, in accordance with charter contract terms, the performance and legal compliance of public charter schools.

(f) Determine whether each charter contract merits renewal, nonrenewal, or revocation.

II. An authorizer may delegate its duties to offices, employees, and contractors.

III. Regulation by authorizers shall be limited to these powers and duties, and consistent with the spirit and intent of this chapter.

IV. An authorizer, members of the board of an authorizer in their official capacity, and employees of an authorizer are immune from civil and criminal liability with respect to all activities related to a public charter school they authorize.

V. An authorizer shall develop and maintain chartering policies and practices consistent with nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility including: organizational capacity and infrastructure; soliciting and evaluating charter applications; performance contracting; ongoing public charter school oversight and evaluation; and charter renewal decision-making. Authorizers shall perform all duties required under this chapter in a manner consistent with such nationally recognized principles and standards. Evidence of material or persistent failure to do so shall constitute grounds for losing charter authorizing powers.

VI. Every authorizer shall be required to submit to the commission and the general court an annual report by November 1 summarizing:

(a) The authorizer’s strategic vision for chartering and progress toward achieving that vision.

(b) The academic and financial performance of all operating public charter schools overseen by the authorizer, according to the performance expectations for public charter schools set forth in this chapter.

(c) The status of the authorizer’s public charter school portfolio, identifying all public charter schools in each of the following categories: approved but not yet open, operating, renewed, transferred, revoked, not renewed, voluntarily closed, or never opened.

(d) The authorizing functions provided by the authorizer to the public charter schools under its purview, including the authorizer’s operating costs and expenses detailed in annual audited financial statements that conform with generally accepted accounting principles.

(e) The services purchased from the authorizer by the public charter schools under its purview, including an itemized accounting of the actual costs of these services, as required in this section

VII.(a) To cover authorizer costs for overseeing public charter schools in accordance with this chapter, the commission shall remit to each authorizer an oversight fee for each public charter school it authorizes. The oversight fee shall not exceed 3 percent of each public charter school’s per-student funding in a single school year. The commission shall establish a statewide formula for authorizer oversight fees, which shall apply uniformly to every authorizer in the state. The commission may establish a sliding scale for authorizer funding, with the funding percentage decreasing after the authorizer has achieved a certain threshold, such as after a certain number of years of authorizing or after a certain number of schools has been authorized.

(b) An authorizer’s oversight fee shall not include any costs incurred in delivering services that a public charter school may purchase at its discretion from the authorizer. The authorizer shall use its funding provided under this section exclusively for the purpose of fulfilling authorizing obligations in accordance with this chapter.

(c) The commission shall annually review the effectiveness of the state formula for authorizer funding, and shall adjust the formula if necessary to maximize public benefit.

VIII. No employee, trustee, agent, or representative of an authorizer shall simultaneously serve as an employee, trustee, agent, representative, vendor, or contractor of a public charter school authorized by that entity.

IX.(a) With the exception of oversight services as required by this section, no public charter school shall be required to purchase services from its authorizer as a condition of charter approval or of executing a charter contract, nor shall any such condition be implied.

(b) A public charter school may, at its discretion, choose to purchase services from its authorizer. In such event, the public charter school and authorizer shall execute an annual service contract, separate from the charter contract, stating the parties’ mutual agreement concerning any services to be provided by the authorizer and any service fees to be charged to the public charter school. An authorizer shall not charge more than market rates for services provided to a public charter school.

(c) Within 60 days after the end of each fiscal year, each authorizer shall provide to each public charter school it oversees an itemized accounting of the actual costs of services purchased by the public charter school from the authorizer. Any difference between the amount initially charged to the public charter school and the actual cost shall be reconciled and paid to the owed party. If either party disputes the itemized accounting, any charges included in such accounting, or charges to either party, the disputing party is entitled to request a third-party review at its own expense. The review shall be conducted by the commission whose determination shall be final.

X. The commission shall be responsible for overseeing the performance and effectiveness of all authorizers established under this chapter.

XI.(a) Persistently unsatisfactory performance of an authorizer’s portfolio of public charter schools, a pattern of well-founded complaints about the authorizer or its public charter schools, or other objective circumstances may initiate a special review by the commission. In reviewing or evaluating the performance of authorizers, the commission shall apply nationally recognized principles and standards for quality charter authorizing. If at any time the commission finds that an authorizer is not in compliance with an existing charter contract, its authorizing contract with the commission, or the requirements of authorizers pursuant to this chapter, the commission shall notify the authorizer in writing of the identified problems, and the authorizer shall have reasonable opportunity to respond and remedy the problems.

(b) If an authorizer granted chartering authority under this section persists, after due notice from the commission, in violating a material provision of a charter contract or its authorizing contract with the commission, or fails to remedy other identified authorizing problems, the commission shall notify the authorizer, within a reasonable amount of time under the circumstances, that it intends to revoke the authorizer’s chartering authority unless the authorizer demonstrates a timely and satisfactory remedy for the violation or deficiencies.

(c) If the commissioner revokes any authorizer’s chartering authority, the commission shall manage the timely and orderly transfer of each charter contract held by that authorizer to another authorizer in the state, with the mutual agreement of each affected public charter school and proposed new authorizer. The new authorizer shall assume the existing charter contract for the remainder of the charter term.

194-B:8 Application Process.

I. An authorizer approved under this chapter shall annually issue and broadly publicize a request for proposals. The content and dissemination of the request for proposals shall be consistent with the provisions of this chapter.

II. Charter applicants may submit a proposal for a particular public charter school to no more than one authorizer at a time.

III. The commission shall annually establish and disseminate a statewide timeline for charter approval or denial decisions, which shall apply to all authorizers in the state.

IV. Each authorizer’s request for proposals shall present the authorizer’s vision for chartering, including a clear statement of any preferences the authorizer wishes to grant to applications that help at-risk students. The request for proposals shall include or otherwise direct applicants to the performance framework that the authorizer has developed for public charter school oversight and evaluation in accordance with this section. The request for proposals shall include the criteria that will guide the authorizer’s decision to approve or deny a charter application. The request for proposals shall state clear, appropriately detailed questions as well as guidelines concerning the format and content essential for applicants to demonstrate the capacities necessary to establish and operate a successful public charter school.

V.(a) Each charter application shall provide or describe thoroughly all of the following essential elements of the proposed school plan:

(1) An executive summary.

(2) The mission and vision of the proposed public charter school, including identification of the targeted student population and the community the school hopes to serve.

(3) The location or geographic area proposed for the school.

(4) The grades to be served each year for the full term of the charter contract.

(5) Minimum, planned, and maximum enrollment per grade per year for the term of the charter contract.

(6) Evidence of need and community support for the proposed public charter school.

(7) Background information on the proposed founding governing board members and, if identified, the proposed school leadership and management team.

(8) The school’s proposed calendar and a sample daily schedule.

(9) A description of the academic program aligned with state standards.

(10) A description of the school’s instructional design, including the type of learning environment, class size and structure, curriculum overview, and teaching methods.

(11) The school’s plan for using internal and external assessments to measure and report student progress on the performance framework developed by the authorizer in accordance with RSA 193-C and RSA 193-E.

(12) The school’s plans for identifying and successfully serving students with disabilities, students who are English language learners, students who are academically behind, and gifted students, including but not limited to compliance with applicable laws and regulations.

(13) A description of co-curricular or extracurricular programs and how they will be funded and delivered.

(14) Plans and timelines for student recruitment and enrollment, including lottery procedures.

(15) The school’s student discipline policies, including those for special education students.

(16) An organization chart that clearly presents the school’s organizational structure, including lines of authority and reporting between the governing board, staff, any related bodies, and any external organizations that will play a role in managing the school.

(17) A clear description of the roles and responsibilities for the governing board, the school’s leadership and management team, and any other entities shown in the organization chart.

(18) A staffing chart for the school’s first year, and a staffing plan for the term of the charter.

(19) Plans for recruiting and developing school leadership and staff.

(20) The school’s leadership and teacher employment policies, including performance evaluation plans.

(21) Proposed governing bylaws.

(22) Explanations of any partnerships or contractual relationships central to the school’s operations or mission.

(23) The school’s plans for providing transportation, food service, and all other significant operational or ancillary services.

(24) Opportunities and expectations for parent involvement.

(25) A detailed school start-up plan, identifying tasks, timelines, and responsible individuals.

(26) Description of the school’s financial plan and policies, including financial controls and audit requirements.

(27) A description of the insurance coverage the school will obtain.

(28) Start-up and 5-year budgets with clearly stated assumptions.

(29) Start-up and 5-year cash-flow projections with clearly stated assumptions.

(30) Evidence of anticipated fundraising contributions, if claimed in the application.

(31) A facilities plan, including backup or contingency plans, if appropriate.

(b) An application to establish a public charter school by converting an existing non-charter public school to public charter school status shall demonstrate support for the proposed public charter school conversion by a petition signed by a majority of teachers and a petition signed by a majority of parents of students in the existing non-charter public school.

(c) Virtual public charter school applicants shall describe the proposed school’s system of course credits and how the school will:

(1) Monitor and verify full-time student enrollment, student participation in a full course load, credit accrual, and course completion.

(2) Monitor and verify student progress and performance in each course through regular, proctored assessments and submissions of coursework.

(3) Conduct parent-teacher conferences.

(4) Administer state-required assessments to all students in a proctored setting.

(d) A proposed public charter school that intends to contract with an education service provider for substantial educational services, management services, or both types of services:

(1) Provide evidence of the education service provider’s success in serving student populations similar to the targeted population, including demonstrated academic achievement and successful management of nonacademic school functions if applicable.

(2) Provide a term sheet setting forth the proposed duration of the service contract, roles and responsibilities of the governing board, the school staff, and the service provider, scope of services and resources to be provided by the service provider, performance evaluation measures and timelines, compensation structure, including clear identification of all fees to be paid to the service provider, methods of contract oversight and enforcement, investment disclosure, and conditions for renewal and termination of the contract.

(3) Disclose and explain any existing or potential conflicts of interest between the school governing board and proposed service provider or any affiliated business entities.

(e) A public charter school proposal from an applicant that currently operates one or more schools in any state or nation shall provide evidence of past performance and current capacity for growth.

(f) In reviewing and evaluating charter applications, authorizers shall employ procedures, practices, and criteria consistent with nationally recognized principles and standards for quality charter authorizing. The application review process shall include thorough evaluation of each written charter application, an in-person interview with the applicant group, and an opportunity in a public forum for local residents to learn about and provide input on each application.

(g) In deciding whether to approve charter applications, authorizers shall:

(1) Grant charters only to applicants that have demonstrated competence in each element of the authorizer’s published approval criteria and are likely to open and operate a successful public charter school.

(2) Base decisions on documented evidence collected through the application review process.

(3) Follow charter-granting policies and practices that are transparent, based on merit, and avoid conflicts of interest or any appearance thereof.

(h) No later than 30 days after the filing of a charter application, the authorizer shall decide to approve or deny the charter application. The authorizer shall adopt by resolution all charter approval or denial decisions in an open meeting of the authorizer’s governing board.

(i) An approval decision may include, if appropriate, reasonable conditions that the charter applicant shall meet before a charter contract may be executed pursuant to this section.

(j) For any charter denial, the authorizer shall clearly state, for public record, its reasons for denial. A denied applicant may subsequently reapply to that authorizer or apply to any other authorizer in the state.

(k) Within 30 days of taking action to approve or deny a charter application, the authorizer shall report to the commission the action it has taken. The authorizer shall provide a copy of the report to the charter applicant at the same time that the report is submitted to the commission. The report shall include a copy of the authorizer governing board’s resolution setting forth the action taken and reasons for the decision and assurances as to compliance with all of the procedural requirements and application elements set forth in this section.

VI. An approved charter application shall not serve as the school’s charter contract.

VII. An initial charter shall be granted for a term of 5 operating years. The charter term shall commence on the public charter school’s first day of operation. An approved public charter school may delay its opening for one school year in order to plan and prepare for the school’s opening. If the school requires an opening delay of more than one school year, the school shall request an extension from its authorizer. The authorizer may grant or deny the extension depending on the school’s circumstances.

VIII. Within 30 days of approval of a charter application, the authorizer and the governing board of the approved public charter school shall execute a charter contract that clearly sets forth the academic and operational performance expectations and measures by which the public charter school will be judged and the administrative relationship between the authorizer and public charter school, including each party’s rights and duties. The performance expectations and measures set forth in the charter contract shall include but need not be limited to applicable federal and state accountability requirements. The performance provisions may be refined or amended by mutual agreement after the public charter school is operating and has collected baseline achievement data for its enrolled students.

IX. The charter contract for a virtual public charter school shall include description and agreement regarding the methods by which the school will:

(a) Monitor and verify full-time student enrollment, student participation in a full course load, credit accrual, and course completion.

(b) Monitor and verify student progress and performance in each course through regular, proctored assessments and submissions of coursework.

(c) Conduct parent-teacher conferences.

(d) Administer state-required assessments to all students in a proctored setting.

X. The charter contract shall be signed by the president of the authorizer’s governing board and the president of the public charter school’s governing body. Within 30 of executing a charter contract, the authorizer shall submit to the commission written notification of the charter contract execution, including a copy of the executed charter contract and any attachments.

XI. No public charter school shall commence operations without a charter contract executed in accordance with this section and approved in an open meeting of the authorizer’s governing board.

XII. Authorizers may establish reasonable pre-opening requirements or conditions to monitor the start-up progress of newly approved public charter schools and ensure that they are prepared to open smoothly on the date agreed, and to ensure that each school meets all building, health, safety, insurance, and other legal requirements for school opening.

194-B:9 Liability. No host, sending, or receiving school district shall be held liable for damages in an action to recover for bodily injury, personal injury, or property damage as defined in RSA 507-B:1, or for failure to educate students, where such actions arise out of the establishment or operation of a public charter school.

194-B:10 Requirements; Options.

I. A public charter school shall not discriminate nor violate individual civil rights in any manner prohibited by law. A public charter school shall not discriminate against any child with a disability as defined in RSA 186-C. A public charter school shall provide due process in accordance with state and federal laws and rules.

II. A public charter school shall comply with all applicable state and federal health and safety laws, rules, and regulations.

III. A public charter school shall provide instruction for at least the number of days required by state law. A public charter school shall comply with compulsory attendance laws as provided in RSA 189:1, 189:1-a, and 193:1. Innovative scheduling resulting in at least that number of attendance hours required under RSA 186-C:15, 189:1, 189:1-a, and 193:1.

IV. A public charter school providing the only available public education services at a specific grade level in a school district shall offer those educational services to all resident students of that grade level.

V. At least annually and near the end of each school year, a public charter school shall evaluate the educational progress of each student. Such evaluation shall include, but not be limited to, the New Hampshire statewide education improvement and assessment program, as provided in RSA 193-C. The cost of the state assessment program shall be borne by the state.

VI. A public charter school may be located in part of an existing public school building, in space provided on a private work site, in a public building, or any other suitable location. A public charter school may own, lease, or rent its own space, or utilize space based on other arrangements.

VII.(a) A public charter school may contract for services with any private or public entity including, but not limited to, private and public schools or districts, except for teaching services which may not be obtained from a nonpublic school.

(b) All contracted services shall be defined by purchase order or written contract in advance of such service being provided.

(c) Any contractor shall provide proof of adequate professional liability insurance.

(d) Subcontracts for teaching services with nonpublic schools are prohibited.

194-B:11 Funding. Public charter schools shall be funded as follows:

I.(a) There shall be no tuition charge for any student attending a conversion public charter school located in that student’s resident district. Funding limitations in this chapter shall not be applicable to conversion public charter schools located in a student’s resident district. For a public charter school authorized by the school board of the student’s resident district, the student’s resident district shall pay to such school an amount equal to not less than 80 percent of that district’s average cost per student as determined by the department of education using the most recent available data as reported by the district to the department. For students resident in this state who attend full-time a public charter school authorized by a school district other than the student’s resident school district, the state shall pay tuition pursuant to RSA 198:40-a directly to the public charter school for such student. Nothing in this subparagraph shall alter or modify the funding of the Virtual Learning Academy Charter School.

(b) Except as provided in subparagraph (a), for a public charter school or virtual public charter school authorized by the commission or an authorizer pursuant to this chapter, the state shall pay tuition pursuant to RSA 198:40-a plus an additional grant of $2,000 directly to the public charter school or virtual public charter school for each student who is a resident of this state in attendance at such school.

(c) The commissioner of the department of education shall calculate and distribute public charter school tuition payments as set forth herein. The first payment shall be 30 percent of the per student amount multiplied by the number of eligible students present on the first day of the current school year. Such payment shall be made no later than 15 days after the department of education receives the attendance report. The December 1 payment shall be 30 percent of the per student amount multiplied by the membership on November 1, and the March 1 payment shall be 30 percent of the per student amount multiplied by the membership on February 1. To calculate the final payment, the commissioner of the department of education shall multiply the per student amount by the average daily membership in attendance for the full school year, and subtract the total amount of the first 3 payments made. The remaining balance shall be the final payment. Eligible public charter schools shall report membership in accordance with RSA 189:1-d. In this subparagraph, “membership” shall be as defined in RSA 189:1-d, II. Tuition amounts shall be prorated on a per diem basis for students attending a school for less than a full school year.

(d) The source of funds for payments under this section shall be from the education trust fund established in RSA 198:39.

II. A school district lacking a meaningful basis to determine average expenditure per student may use statewide average figures as determined by the department of education for the purposes of this chapter.

III.(a) In accordance with current department of education standards, the funding and educational decision-making process for children with disabilities attending a public charter school shall be the responsibility of the resident district and shall retain all current options available to the parent and to the school district.

(b) When a child is enrolled by a parent in a public charter school, the local education agency of the child’s resident district shall convene a meeting of the individualized education program (IEP) team and shall invite a representative of the public charter school to that meeting. At the meeting, the IEP team shall determine how to ensure the provision of a free and appropriate public education in accordance with the child’s IEP. The child’s special education and related services shall be provided using any or all of the following methods starting with the least restrictive environment:

(1) The resident district may send staff to the public charter school; or

(2) The resident district may contract with a service provider to provide the services at the public charter school; or

(3) The resident district may provide the services at the resident district school; or

(4) The resident district may provide the services at the service provider’s location; or

(5) The resident district may contract with a public charter school to provide the services; and

(6) If the child requires transportation to and from the public charter school before, after, or during the school day in order to receive special education and related services as provided in the IEP, the child’s resident district shall provide transportation for the child.

(c) When a parent enrolls a child with a disability in a public charter school, the child and the child’s parents shall retain all rights under federal and state special education law, including the child’s right to be provided with a free and appropriate public education, which includes all of the special education and related services included in the child’s IEP. The child’s resident district shall have the responsibility, including financial responsibility, to ensure the provision of the special education and related services in the child’s IEP, and the public charter school shall cooperate with the child’s resident district in the provision of the child’s special education and related services.

IV. Any federal or other funding available in any year to a sending district shall, to the extent and in a manner acceptable to the funding source, be directed to a public charter school in a receiving district on an eligible per student basis. This funding shall include, but not be limited to, funding under federal Chapters I and II of Title II, and Drug-Free Schools, in whatever form the funding is available in any year.

V. The commissioner of the department of education shall apply for all federal funding available to public charter schools under the No Child Left Behind Act, Title I of the Elementary and Secondary Education Act, or other federal source of funds. The commissioner shall expend any such funds received in a manner acceptable to the funding source.

VI.(a) A sending district may provide funds, services, equipment, materials, or personnel to a public charter school, in addition to the amounts specified in this section in accordance with the policies of the sending school district.

(b) A public charter school may accept students at tuition rates at less than the amounts established by this chapter.

(c) A public charter school, other than a charter conversion school, shall accept an otherwise eligible out-of-district student regardless of that student’s sending district’s tuition amount.

VII. A public charter school may receive financial aid, private gifts, grants, or revenue as if it were a school district. A public charter school shall not be compelled to accept funding from any source.

VIII. No school building aid under RSA 198:15-a through 198:15-h shall be awarded to a public charter school for the purpose of acquiring land or buildings, or for constructing, reconstructing, or improving the public charter school, unless the building is owned by the school district, under lease to the public charter school, and such lease does not include an option to purchase the building. A charter conversion school shall be eligible for school building aid.

IX. There shall be an appropriation in the fiscal year beginning on July 1, 2003 for the establishment of public charter schools under this section. Public charter schools which are eligible for grants under this program shall match funds provided by the state through private contributions in order to receive funding that exceeds the state’s average per student cost for the grade level weight of the student. State funds shall be provided in addition to any other sums provided by the state. Grants under this section shall be administered and determined by the state public charter commission established in RSA 194-B:4 which shall have the authority to develop a grant application, written procedures and criteria used to determine eligibility for grants, and procedures for the administration of grants by recipients, including reporting requirements. The total grants provided under this program shall not exceed the amount of money appropriated in the budget, or transferred, or provided by gift or grant to the state for this purpose.

X. Any money appropriated in the budget for matching public charter school grants that remains unused after the department of education issues matching grants to eligible recipients under paragraph IX shall be used to provide a one-year transitional grant to public school districts that have lost students as a result of the establishment of a public charter school, and have paid tuition to the public charter school in cash. For the first year in which a public school student leaves the public school and enrolls in a public charter school, the school district that loses the student shall be eligible for a public charter school transitional grant beginning July 1, 2015 and every fiscal year thereafter, in an amount per student equal to the amount determined in RSA 198:41. Such transitional grants shall be administered by the public charter school commission which shall determine eligibility and the amount of money to be awarded to school districts under this section, subject to the amount appropriated in the budget.

194-B:12 Annual Report.

I. Each public charter school shall provide one copy of its annual report to the state board and to its local school board. This report shall also be available to any person who expressly requests it.

II. A public charter school shall provide at its own expense an annual financial audit and report to the state board and the school board complying with any current format and content requirements imposed upon a public school. The report shall include the number of students served by the school and their respective tuition rates and a discussion of progress made towards the achievement of the school’s academic and other goals set forth in its charter.

III. To ensure compliance with its application and contract and applicable law, a public charter school shall be subject to a first year program audit by the department of education or its agent, and shall be subject to a program audit by the department of education at least once every 3 years thereafter.

IV. A summary version of any annual and periodic reports required in this chapter shall be provided to the parent or guardian of each student enrolled at a public charter school and shall be made available to the legislative body.

V. A representative of a public charter school shall attend and be prepared to report at and answer questions during relevant portions of the annual school district budget process.

194-B:13 Status of Employees.

I. Employees of public charter schools shall be considered public employees for the purpose of collective bargaining.

II.(a) Any teacher may choose to be an employee of a public charter school, in which case such teacher shall have the rights of a teacher in public education to join or organize collective bargaining units.

(b) Bargaining units at a public charter school shall be separate from other bargaining units.

(c) No public charter school teacher shall be a member of more than one bargaining unit.

(d) A teacher who serves as a member of the board of trustees of a public charter school in which that teacher is an employee may not participate in or vote as a member of the board on collective bargaining matters.

(e) A teacher in a public charter school shall have withdrawn from any bargaining unit with which that teacher may have been previously affiliated.

III. A public charter school may choose to participate in the state teacher retirement system, and service in a public charter school shall be deemed creditable service under RSA 100-A:4.

IV. The teaching staff of a public charter school shall consist of a minimum of 50 percent of teachers either New Hampshire certified or having at least 3 years of teaching experience.

194-B:14 Operations; Curriculum.

I. A public charter school shall operate in accordance with its charter.

II. The internal form of governance of a public charter school shall be determined by the school’s charter.

III. The governing board of a public charter school shall be considered the public employer for the purpose of collective bargaining.

2 Open Enrollment Schools; State Board Duties. Amend RSA 194-D:7, II to read as follows:

II. The state board shall convene one or more working committees to study and make recommendations regarding the implementation and effectiveness of open enrollment schools. [The recommendations shall be provided to the legislative oversight committee in RSA 194-B:21.]

3 School Building Aid; Annual Grant for Leased Space. Amend RSA 198:15-hh to read as follows:

198:15-hh Annual Grant for Leased Space.

I. The amount of the annual grant for a lease to any school district duly organized, any city maintaining a school department within its corporate organization, any cooperative school district as defined in RSA 195:1, or any receiving district operating an area school as defined in RSA 195-A:1, shall be a sum equal to 30 percent of the amount of the annual payment of the lease incurred, for the cost of leasing permanent space in a building or buildings not owned by the school district or school administrative unit which is used for the operation of a high school vocational technical education program, to the extent approved by the state board of education. For the purposes of this section, the amount of the annual grant for a lease to a vocational technical education center shall be calculated in the same manner as a cooperative school district. The amount of the annual grant for a [chartered] public charter school authorized under RSA [194-B:3-a] 194-B shall be a sum equal to 30 percent of the annual lease payment incurred for the cost of leasing space. The total amount of grants to schools pursuant to this section shall not exceed the state appropriation for leased space. If the amount appropriated is insufficient therefor, the appropriation shall be prorated proportionally among the schools eligible for a grant. Such lease agreements shall be eligible for grants under this section, provided all of the following conditions apply:

(a) A school district, city, cooperative school district, joint maintenance agreement, receiving district operating an area school as defined in RSA 195-A:1, or [chartered] public charter school authorized under RSA [194-B:3-a] 194-B, which receives grants under this section shall remain eligible to apply for, receive, and expend moneys from other state or federal sources made available for the purpose of purchasing new equipment, materials, or supplies necessary for the operation of the program. Moneys received from such other state or federal sources shall not be used to make permanent upgrades or renovations to the leased space.

(b) A lease agreement for permanent space shall be adopted in the same manner as required by law for the passage of construction bonds in the school district, city, cooperative school district, joint maintenance agreement, or receiving district operating an area school as defined in RSA 195-A:1. A lease agreement for a [chartered] public charter school shall be approved by the [chartered public school board of trustees] state public charter school commission pursuant to RSA [194-B:5, III(c)] 194-B:4.

(c) An initial lease agreement for a term of 10 years or less shall be eligible to receive grants under this section. Upon renewal, a lease agreement may remain eligible to receive grants, provided the commissioner of the department of education determines that the lease agreement represents an efficient use of state and local resources.

(d) In any fiscal year where the state pays a pro rata share of school building aid grants, the state shall pay the same pro rata share for lease agreements approved under this section.

II. Lease agreements for the use of portable or modular classroom space shall not be eligible for grants.

III. A school district, city, cooperative school district, joint maintenance agreement, receiving district operating an area school as defined in RSA 195-A:1, or [chartered public school authorized under RSA 194-B:3-a] public charter school authorized pursuant to RSA 194-B shall submit details of the lease arrangement, including a copy of the proposed lease agreement, in writing to the state board of education on such forms as the state board may prescribe. Grant applications for leased space shall be submitted before January 1 of each year in order to be eligible for grants in the fiscal year following the year of submittal. The state board of education shall, no later than March 1, 2004, adopt rules pursuant to RSA 541-A, relative to procedures for grant applications for leased space.

4 School Building Aid; Amount of Grant. Amend RSA 198:15-b, I(a)(2)(C) to read as follows:

(C) The amount of the grant to any [chartered] public charter school established in accordance with RSA [194-B:3-a] 194-B shall be 30 percent of the eligible cost of construction.

5 Adequate Education; Distribution Schedule. Amend RSA 198:42, IV to read as follows:

IV. For [chartered public schools] public charter schools approved by the [state board of education] state public charter school commission established in RSA 194-B, the department of education may expend budgeted amounts to fund [chartered] public charter school tuition payments under RSA 194-B:11, I. Said amounts are hereby appropriated to the department from the education trust fund established under RSA 198:39. The education trust fund shall be used to satisfy the state’s obligation under this paragraph. The payment shall be issued regardless of the balance of funds available in the education trust fund. The department of education may request additional funds from the fiscal committee of the general court, with the approval of governor and council, for a new [chartered] public charter school approved for initial operation [by the state board of education] pursuant to RSA [194-B:3-a] 194-B.

6 Reference Changes. Amend the following RSA provisions by replacing “chartered public school” with “public charter school” and “chartered public schools” with “public charter schools”: RSA 5-B:2, III; 31:105; 31:106; 77-G:1, II; 77-G:1, VIII(a)(1); 77-G:7, I, 91-A:1-a, V; 91-A:1-a, VI(d); 126-U:1, V(b); 186:13, XI(c); 186-C:3-a, V; 186-C:3-b, II(o); 186-C:5, I-a; 188-E:2, II(b); 189:1-d, IV; 189:13-a; 189:28; 193-F:2, I; 193-F:4, II-IV; 193-F:5, I; 193-F:6, I; 193-F:7; 193-F:8; 193-F:9; 194:23, II; 194:60, III; 194-D:2, III; 198:45; 200:51; 507:17, I; 507-B:1, I; 507-B:4, IV.

7 Appropriation. The sum of $250,000 for the fiscal year ending June 30, 2016 is hereby appropriated to the public charter school commission established in RSA 194-B:4 for costs and expenses related to the organization of the commission. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

8 Repeal. The following are repealed:

I. RSA 195:31, relative to adoption of the public charter school law by a cooperative school district.

II RSA 195-A:3, V(p), relative to adoption of public charter school provisions by parties to an authorized regional enrollment area agreement.

III. RSA 195-A:16, relative to modification of an authorized regional enrollment area agreement based on adoption of the public charter school law.

9 Applicability.

I. The provisions of this act shall apply to any application for a public charter school submitted on or after July 1, 2015.

II. A chartered public school which as of June 30, 2015:

(a) Is in operation; or

(b) Has submitted its charter application to the state board of education; or

(c) Has had such charter application granted, shall be governed by the laws in effect as of June 30, 2015.

10 Effective Date. This act shall take effect July 1, 2015.

LBAO

15-0336

01/26/15

HB 625-FN-A - FISCAL NOTE

AN ACT relative to public charter schools.

FISCAL IMPACT:

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill, as introduced, as it is awaiting information from the Departments of Education and Administrative Services, who were contacted on 01/08/15. When completed, the fiscal note will be forwarded to the House Clerk's Office.