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First Substitute S.B. 138

Senator Howard A. Stephenson proposes the following substitute bill:


             1     
CHARTER SCHOOLS AMENDMENTS

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Howard A. Stephenson

             5      This act modifies provisions related to the State System of Public Education by increasing
             6      the number of charter schools that may be sponsored by the State Board of Education. This
             7      act requires the State Board of Education, through the superintendent of public instruction,
             8      to provide technical support to charter schools and persons seeking to establish charter
             9      schools. This act makes technical changes.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          53A-1a-502, as last amended by Chapter 259, Laws of Utah 2001
             13          53A-1a-505, as last amended by Chapter 259, Laws of Utah 2001
             14          53A-1a-513, as last amended by Chapter 259, Laws of Utah 2001
             15          53A-1a-515, as enacted by Chapter 259, Laws of Utah 2001
             16      ENACTS:
             17          53A-1a-516, Utah Code Annotated 1953
             18      Be it enacted by the Legislature of the state of Utah:
             19          Section 1. Section 53A-1a-502 is amended to read:
             20           53A-1a-502. Authorization -- Creation of charter schools.
             21          (1) (a) The Legislature authorizes the [creation of up to 12 charter schools for the 2001-02
             22      school year] State Board of Education to sponsor up to:
             23          (i) 12 charter schools; and
             24          (ii) six New Century High Schools, magnet charter schools focused on math, science, and
             25      technology.


             26          (b) (i) The [number of charter schools authorized under this section shall be increased by
             27      up to four for the 2002-03 school year, with no further increases in the number authorized under
             28      this Subsection (1) until the program has been thoroughly evaluated by the] State Board of
             29      Education [and a] shall evaluate the charter school program and submit an evaluation report to the
             30      Education Interim Committee by October 31, 2002.
             31          (ii) The report shall include a recommendation [made to the Legislature as to] of whether
             32      or not the program should be expanded further.
             33          (c) (i) The [additional] charter schools authorized under [Subsections (1)(a) and (b)]
             34      Subsection (1)(a)(i) may be established only after an applicant:
             35          (A) has sought and been denied sponsorship by a local school board under Section
             36      53A-1a-515 ; and
             37          (B) subsequently seeks and is granted sponsorship by the State Board of Education under
             38      Section 53A-1a-505 .
             39          (ii) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             40      the State Board of Education shall make a rule providing a timeline that would allow an applicant
             41      denied sponsorship by a local school board to apply for and receive sponsorship approval by the
             42      State Board of Education and begin planning or operating in the same school year as anticipated
             43      in its original application to the local school board.
             44          (B) The timeline shall be consistent with the application and approval process set out in
             45      Section 53A-1a-515 .
             46          (2) Charter schools are considered to be part of the state's public education system.
             47          (3) A charter school may be established by creating a new school or converting an existing
             48      public school to charter status.
             49          Section 2. Section 53A-1a-505 is amended to read:
             50           53A-1a-505. Sponsors of charter schools -- Application process.
             51          (1) An applicant for a charter school shall seek sponsorship of its charter from the State
             52      Board of Education, except as otherwise provided in Section 53A-1a-515 .
             53          (2) (a) (i) The applicant shall also provide a copy of the application to the local school
             54      board of the school district in which the proposed charter school shall be located either before or
             55      at the same time it files its application with the state board.
             56          (ii) The local board shall review the application and may offer suggestions or


             57      recommendations to the applicant or the state board prior to its acting on the application.
             58          (iii) The state board shall give due consideration to suggestions or recommendations made
             59      by the local school board under Subsection (2)(a)(ii).
             60          (b) The State Board of Education shall review and, by majority vote, either approve or
             61      deny the application within 60 days after the application is received by the board.
             62          (c) The state board's action under Subsection (2)(b) is final action subject to judicial
             63      review.
             64          (3) (a) The applicant and the state board shall set forth the terms and conditions for the
             65      operation of the charter school in a written contractual agreement.
             66          (b) The contract is the school's charter.
             67          [(4) The State Office of Education and the school district in which the school is to be
             68      located may provide technical assistance to an applicant upon written request.]
             69          Section 3. Section 53A-1a-513 is amended to read:
             70           53A-1a-513. Funding for charter schools.
             71          (1) (a) A student enrolled in a charter school is considered a resident student of the school
             72      district in which the school is located for purposes of state funding, including, but not limited to,
             73      monies the student would generate as a result of qualifying for such programs as special education,
             74      students at risk, and gifted and talented.
             75          (b) (i) The State Board of Education shall adopt rules to provide:
             76          (A) that the school district in which a charter school student resides shall pay to the school
             77      district in which the charter school is located 1/2 of the amount by which the resident district's per
             78      student expenditure exceeds the value of the state funding under Subsection (1)(a); and
             79          (B) for the distribution of monies to charter schools under this section.
             80          (ii) The rules adopted pursuant to Subsection (1)(b)(i)(A) that require 1/2 rather than all
             81      of the amount take into account state school funding laws that require certain local moneys to
             82      remain within the resident district.
             83          (c) The Legislature shall provide an appropriation for charter schools for each of their
             84      students equal to the lesser of 1/2 of the statewide school district average per student expenditure
             85      in excess of state funding under Subsection (1)(a) or 1/2 of the amount by which the resident
             86      district's per student expenditure exceeds the value of the state funding under Subsection (1)(a) to
             87      supplement the local monies received by a charter school under Subsection (1)(b)(i)(A).


             88          (d) If a charter school is providing eligible programs or services to eligible students funded
             89      by federal monies, any eligible student enrolled in a charter school in the school district shall
             90      receive federal monies for the same level of service provided students in the schools operated by
             91      the local school board.
             92          (2) (a) The board shall also adopt rules relating to the transportation of students to and
             93      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             94          (b) The governing body of the charter school may provide transportation through an
             95      agreement or contract with the local school board, a private provider, or with parents.
             96          (3) (a) (i) The state superintendent of public instruction may allocate grants for both
             97      start-up and ongoing costs to eligible charter school applicants from monies appropriated for the
             98      implementation of this part.
             99          (ii) Applications for the grants shall be filed on a form determined by the state
             100      superintendent and in conjunction with the application for a charter.
             101          (iii) The amount of a grant may vary based upon the size, scope, and special circumstances
             102      of the charter school.
             103          (iv) The governing board of the charter school shall use the grant to meet the expenses of
             104      the school as established in the school's charter.
             105          (b) The State Board of Education shall coordinate the distribution of federal monies
             106      appropriated to help fund costs for establishing and maintaining charter schools within the state.
             107          (4) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             108      endowment, gift, or donation of any property made to the school for any of the purposes of this
             109      part.
             110          (b) It is unlawful for any person affiliated with a charter school to demand or request any
             111      gift, donation, or contribution from a parent, teacher, employee, or other person affiliated with the
             112      charter school as a condition for employment or enrollment at the school or continued attendance
             113      at the school.
             114          [(5) (a) The State Office of Education shall publish and make available to charter school
             115      applicants a list of vacant and unused portions of buildings that are owned by the state or by school
             116      districts in the state and that may be suitable for the operation of a charter school.]
             117          [(b) The locally elected school board of the district in which a district owned building is
             118      located must give its approval before the building can be placed on the list under Subsection


             119      (5)(a).]
             120          [(c) The list shall include the address and owner of each building and a short description
             121      of the building.]
             122          [(d) Nothing in this Subsection (5) requires the owner of a building on the list to sell or
             123      lease the building or a portion of the building to a charter school.]
             124          Section 4. Section 53A-1a-515 is amended to read:
             125           53A-1a-515. Charters sponsored by local school boards.
             126          (1) Individuals and entities identified in Section [ 53A-1a-505 ] 53A-1a-504 may enter into
             127      an agreement with a local school board to establish and operate a charter school within the
             128      geographical boundaries of the school district administered by the board, subject to the same
             129      requirements established in Sections 53A-1a-504 through 53A-1a-514 , except as otherwise
             130      provided in this section.
             131          (2) These schools are in addition to the limited number of charter schools authorized under
             132      the sponsorship of the State Board of Education in Section 53a-1a-502 .
             133          (3) (a) An existing public school that converts to charter status may:
             134          (i) continue to receive the same services from the school district that it received prior to
             135      its conversion; or
             136          (ii) contract out for some or all of those services with other public or private providers.
             137          (b) Any other charter school sponsored by a local school board may contract with the
             138      board to receive some or all of the services referred to in Subsection (3)(a).
             139          (4) (a) (i) A public school that converts to a charter school under Subsection (3)(a) shall
             140      receive funding on the same basis as it did prior to its conversion to a charter school.
             141          (ii) The school may also receive federal monies designated for charter schools under any
             142      federal program.
             143          (b) (i) Any other charter school sponsored by a local school board shall receive funding
             144      as provided under Subsection (4)(a), except as otherwise provided in Subsection (4)(b)(ii).
             145          (ii) If the charter school is not operating out of a facility owned by the school district, then
             146      the funding provisions of Section 53A-1a-513 apply.
             147          (5) (a) A local school board that receives an application for a charter school under this
             148      section shall, within 45 days, either accept or reject the application.
             149          (b) If the board rejects the application, it shall notify the applicant in writing of the reason


             150      for the rejection.
             151          (c) The applicant may submit a revised application for reconsideration by the board.
             152          (d) If the local school board refuses to sponsor the applicant, [then] the applicant may seek
             153      a charter from the State Board of Education under Section 53A-1a-505 .
             154          (e) The local board's action under Subsection (5)(d) is final action subject to judicial
             155      review.
             156          (6) A local school board is limited in the number of charter schools it may sponsor under
             157      this section as follows:
             158          (a) there is no limitation on the number of existing public schools within a school district
             159      that may convert to charter status under this section; and
             160          (b) the number of charter schools not converted from existing public schools is limited to
             161      an enrollment equal to 4% of the school district's student population as reported in the most recent
             162      annual statistical report required under Section 53A-3-403 .
             163          (7) A local school board may terminate a charter school it sponsors under this section for
             164      the same reasons and under the same procedures followed by the State Board of Education under
             165      Subsection 53A-1a-509 (3).
             166          Section 5. Section 53A-1a-516 is enacted to read:
             167          53A-1a-516. Technical support for charter schools.
             168          The State Board of Education through the superintendent of public instruction shall provide
             169      technical support to charter schools and persons seeking to establish charter schools by:
             170          (1) identifying and promoting successful charter school models;
             171          (2) facilitating the application and approval process for charter school sponsorship;
             172          (3) directing charter schools and persons seeking to establish charter schools to sources
             173      of private funding and support;
             174          (4) reviewing and evaluating proposals to establish charter schools for the purpose of
             175      supporting and strengthening proposals before an application for charter school sponsorship is
             176      submitted to the State Board of Education or a local school board; and
             177          (5) assisting charter schools in preparing and submitting the reports required by this title
             178      to the State Board of Education.


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