GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H 1
HOUSE BILL 800
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Short Title: Various Changes to Charter School Laws. |
(Public) |
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Sponsors: |
Representatives Bradford, Saine, Stone, and Grange (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
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Referred to: |
Education - K-12, if favorable, State and Local Government II |
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April 13, 2017
A BILL TO BE ENTITLED
AN ACT to make various changes to the laws affecting charter schools.
The General Assembly of North Carolina enacts:
PART I. CHARTER SCHOOLS IN THE WORKPLACE
SECTION 1.(a) G.S. 115C‑218.45 reads as rewritten:
"§ 115C‑218.45. Admission requirements.
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(f) The charter school may give enrollment priority to any of the following:
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(7) Limited to no more than fifty percent (50%) of the school's total enrollment, children of permanent employees of a charter partner in accordance with subsection (f1) of this section. If the number of applications from these children exceed fifty percent (50%) of the school's total enrollment, these children shall be accepted by a separate lottery.
(f1) For purposes of this section, a charter partner is any legal entity authorized to transact business in this State under Chapter 55, 55A, 55B, 57D, or 59 of the General Statutes and that has, acting individually or as part of a consortium of corporations, donated one or more of the following to the charter school:
(1) The land on which the school is built.
(2) The school building or the space the school occupies. If the charter partner is leasing the building or space to the school, the charter school may only give enrollment priority if the lease provides that the building or space is made available without cost and if the term of the lease is not less than the duration of the charter.
(3) Major renovations to the existing school building or other capital improvements including major investments in technology. For purposes of this subdivision, a major renovation to the existing school building means changes that provide significant opportunities for substantial improvement, including, but not limited to, a structural change to the foundation, roof, floor, or interior or exterior walls or extension of an existing facility to increase its floor area, or an extensive alteration of an existing facility, such as a change in its function or purpose, even if such renovation does not include any structural change to the facility. A major investment in technology includes, but is not limited to, a donation of hardware, software, Internet access, Internet hardware, enterprise systems, software licenses, smart board technology, or audiovisual equipment. The value of a major renovation or of an investment of technology shall be equal to at least fifty percent (50%) of the State's per pupil allocation for charter schools for that year multiplied by the charter school's average daily membership.
(f2) Each year that the charter school provides the charter partner with enrollment priority, as described in subdivision (7) of subsection (f) of this section, the charter partner and the charter school shall enter into a memorandum of understanding that shall specify the duration of the priority and the methods by which the charter partner shall support the charter school, including, but not limited to, internships for students, career counseling, academic tutoring, or enrichment activities.
(f3) The enrollment priority described in subdivision (7) of subsection (f) of this section shall not be implemented in a way that displaces students who are enrolled at the school at the time the charter application or the material revision providing for the priority is approved by the State Board of Education.
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SECTION 1.(b) G.S. 115C‑218.1(b) is amended by adding a new subdivision to read:
"(16) Whether the charter school intends to provide enrollment priority to the children of a charter partner and, if so, identifying information for that charter partner."
SECTION 1.(c) G.S. 115C‑218.7 is amended by adding a new subsection to read:
"(e) Adoption of the enrollment priority described in G.S. 115C‑218.45(f)(3)c. shall be considered a material revision of the charter."
SECTION 1.(d) G.S. 115C‑218.15 is amended by adding a new subsection to read:
"(b1) Persons affiliated with a charter partner, as defined in G.S. 115C‑218.45(f1), are eligible for membership on the board of directors of a charter school that provides enrollment priority to charter partners, subject to the requirements of subsection (b) of this section, as follows:
(1) Persons affiliated with the charter partner shall not constitute a majority of the board.
(2) If the charter partner is leasing the building or space to the school, the lease shall provide that the building or space is made available without cost and the term of the lease shall not be less than the duration of the charter."
PART II. ALLOW EMPLOYEES OF EDUCATION OR CHARTER MANAGEMENT ORGANIZATIONS TO SERVE AS TEACHERS
SECTION 2. G.S. 115C‑218.90(a)(1) reads as rewritten:
"(1) An employee of a charter school is not an employee of the local school administrative unit in which the charter school is located. The charter school's board of directors shall employ and contract with necessary teachers or contract with an education management organization or charter management organization to provide teachers to perform the particular service for which they are employed in the school; at least fifty percent (50%) of these teachers shall hold teacher licenses. All teachers who are teaching in the core subject areas of mathematics, science, social studies, and language arts shall be college graduates.
The board also may employ necessary employees who are not required to hold teacher licenses to perform duties other than teaching and may contract for other services. The board may discharge teachers and nonlicensed employees."
PART III. REQUIRE A BOARD OF COUNTY COMMISSIONERS TO APPROPRIATE A PER PUPIL AMOUNT OF FUNDS TO A CHARTER SCHOOL FOR EACH STUDENT ENROLLED IN THE CHARTER SCHOOL WHO RESIDES IN A LOCAL SCHOOL ADMINISTRATIVE UNIT LOCATED IN THAT COUNTY
SECTION 3.(a) Article 14A of Chapter 115C of the General Statutes is amended by adding the following new section to read:
"§ 115C‑218.106. Local funds for a charter school.
For each student enrolled in a charter school, the board of county commissioners of the county in which the local school administrative unit is located where the student resides shall appropriate to that charter school an amount equal to the per pupil appropriation from the county to the local school administrative unit or units for local current expense. By October 1 of each school year, the total membership of the charter school of students residing in the county for the budget year shall be determined and certified to the charter school and the board of county commissioners by the State Board of Education. The amount of the per pupil appropriation that consists of revenue derived from supplemental taxes shall only be provided to a charter school located in the tax district for which these taxes are levied and in which the student resides. Funds shall be transferred from the board of county commissioners to a charter school at the same time that funds are transferred to the local school administrative unit or units."
SECTION 3.(b) G.S. 115C‑218.105 reads as rewritten:
"§ 115C‑218.105. State and local funds for a
charter school.
(a) The State Board of Education shall allocate to each charter school:
(1) An amount equal to the average per pupil allocation for average daily membership from the local school administrative unit allotments in which the charter school is located for each child attending the charter school except for the allocation for children with disabilities and for the allocation for children with limited English proficiency;
(2) An additional amount for each child attending the charter school who is a child with disabilities; and
(3) An additional amount for children with limited English proficiency attending the charter school, based on a formula adopted by the State Board.
In accordance with G.S. 115C‑218.7 and G.S. 115C‑218.8, the State Board shall allow for annual adjustments to the amount allocated to a charter school based on its enrollment growth in school years subsequent to the initial year of operation.
In the event a child with disabilities leaves the charter school and enrolls in a public school during the first 60 school days in the school year, the charter school shall return a pro rata amount of funds allocated for that child to the State Board, and the State Board shall reallocate those funds to the local school administrative unit in which the public school is located. In the event a child with disabilities enrolls in a charter school during the first 60 school days in the school year, the State Board shall allocate to the charter school the pro rata amount of additional funds for children with disabilities.
(b) Funds allocated by the State Board of Education may be used to enter into operational and financing leases for real property or mobile classroom units for use as school facilities for charter schools and may be used for payments on loans made to charter schools for facilities, equipment, or operations. However, State funds shall not be used to obtain any other interest in real property or mobile classroom units. No indebtedness of any kind incurred or created by the charter school shall constitute an indebtedness of the State or its political subdivisions, and no indebtedness of the charter school shall involve or be secured by the faith, credit, or taxing power of the State or its political subdivisions. Every contract or lease into which a charter school enters shall include the previous sentence. The school also may own land and buildings it obtains through non‑State sources.
(c) If a student attends a charter school, the local
school administrative unit in which the child resides shall transfer to the
charter school an amount equal to the per pupil share of the local current
expense fund of the local school administrative unit for the fiscal year. The
per pupil share of the local current expense fund shall be transferred to the
charter school within 30 days of the receipt of monies into the local current
expense fund. The local school administrative unit and charter school may use the
process for mediation of differences between the State Board and a charter
school provided in G.S. 115C‑218.95(d) to resolve differences on
calculation and transference of the per pupil share of the local current
expense fund. The amount transferred under this subsection that consists of
revenue derived from supplemental taxes shall be transferred only to a charter
school located in the tax district for which these taxes are levied and in
which the student resides.
(d) The local school administrative unit shall also
provide each charter school to which it transfers a per pupil share of its
local current expense fund with all of the following information within the 30‑day
time period provided in subsection (c) of this section:
(1) The total amount of monies the local school
administrative unit has in each of the funds listed in G.S. 115C‑426(c).
(2) The student membership numbers used to calculate
the per pupil share of the local current expense fund.
(3) How the per pupil share of the local current
expense fund was calculated.
(4) Any additional records requested by a charter
school from the local school administrative unit in order for the charter
school to audit and verify the calculation and transfer of the per pupil share
of the local current expense fund.
In addition, the local school
administrative unit shall provide to the State Board of Education all of the
information required by this subsection for each charter school to which it
transfers a per pupil share of its local current expense fund. This information
shall be provided to the State Board of Education by November 1 of each year.
The State Board shall adopt a policy to govern the collection of this
information. The State Board shall issue a letter of noncompliance to a local
school administrative unit that does not provide the State Board with the
information required by this subsection.
(e) Prior to commencing an action under subsection
(c) of this section, the complaining party shall give the other party 15 days'
written notice of the alleged violation. The court shall award the prevailing
party reasonable attorneys' fees and costs incurred in an action under
subsection (c) of this section. The court shall order any delinquent funds,
costs, fees, and interest to be paid in equal monthly installments and shall
establish a time for payment in full that shall be no later than one year from
the entry of any judgment."
SECTION 3.(c) G.S. 153A‑149(b) reads as rewritten:
"(b) Each county may levy property taxes without restriction as to rate or amount for the following purposes:
(1) Courts. – To provide adequate facilities for and the county's share of the cost of operating the General Court of Justice in the county.
(2) Debt Service. – To pay the principal of and interest on all general obligation bonds and notes of the county.
(3) Deficits. – To supply an unforeseen deficiency in the revenue (other than revenues of public enterprises), when revenues actually collected or received fall below revenue estimates made in good faith and in accordance with the Local Government Budget and Fiscal Control Act.
(4) Elections. – To provide for all federal, State, district and county elections.
(5) Jails. – To provide for the operation of a jail and other local confinement facilities.
(6) Joint Undertakings. – To cooperate with any other county, city, or political subdivision in providing any of the functions, services, or activities listed in this subsection.
(7) Schools. – To provide for
the county's share of the cost of kindergarten, elementary, secondary,and
secondary public schools, including charter schools chartered under Article 14A
of Chapter 115C of the General Statutes, and post‑secondary public
education.
(8) Social Services. – To provide for public assistance required by Chapters 108A and 111 of the General Statutes."
SECTION 3.(d) G.S. 115C‑448(d) is repealed.
SECTION 3.(e) Section 8.35(e) of S.L. 2014‑100 reads as rewritten:
"SECTION 8.35.(e) The
State Board of Education shall provide State funding to a virtual charter
school participating in the pilot program as provided in G.S. 115C‑238.29H(a)
and G.S. 115C‑238.29H(a1).G.S. 115C‑218.105.
The amount allocated pursuant to G.S. 115C‑238.29H(a)(1)G.S. 115C‑218.105
shall not, however, include the allocation for low‑wealth counties
supplemental funding and the allocation for small county supplemental funding.
Virtual charter schools participating in the pilot program shall also be
subject to the requirements in G.S. 115C‑238.29H(b) through
G.S. 115C‑238.29H(d).G.S. 115C‑218.105(b) and G.S. 115C‑218.106.
The amount of local funds provided to participating schools pursuant to G.S.
115C-238.29H(b)G.S. 115C‑218.106 shall be the lesser of
seven hundred ninety dollars ($790.00) per pupil or the amount computed in
accordance with G.S. 115C‑238.29H(b).G.S. 115C‑218.106."
SECTION 3.(f) This section is effective the date this act becomes law and applies beginning with county budget ordinances adopted on or after that date.
PART IV. MODIFY THE DECISION TIMELINE FOR THE CHARTER SCHOOL FAST TRACK REPLICATION APPLICATION PROCESS
SECTION 4.(a) Section 6.5 of S.L. 2014‑101, as amended by Section 2 of S.L. 2016‑79, reads as rewritten:
"SECTION 6.5. Upon recommendations by the Office of Charter Schools and the Charter Schools Advisory Board, the State Board of Education shall adopt a process and rules for fast‑track replication of high‑quality charter schools currently operating in the State. The State Board of Education shall not require a planning year for applicants selected through the fast‑track replication process. In addition to the requirements for charter applicants set forth in Part 6A of Article 16 of Chapter 115C of the General Statutes, the fast‑track replication process adopted by the State Board of Education shall, at a minimum, require a board of directors of a charter school to demonstrate one of the following in order to qualify for fast‑track replication:
(1) A charter school in this State governed by the board of directors has student academic outcomes that are comparable to the academic outcomes of students in the local school administrative unit in which the charter school is located and can provide three years of financially sound audits.
(2) The board of directors agrees to contract with an education management organization or charter management organization that can demonstrate that it can replicate high‑quality charter schools in the State that have proven student academic success and financial soundness.
The State Board of Education shall ensure that the rules for a fast‑track replication process provide that decisions by the State Board of Education on whether to grant a charter through the replication process are completed in less than 90 days from the application submission date. The State Board shall provide a decision no later than October 15 of the year immediately preceding the year of the proposed school opening. The State Board of Education shall adopt rules and procedures required by this section within 90 days of the effective date of this act, and report to the Joint Legislative Education Oversight Committee within 120 days of the effective date of this act."
SECTION 4.(b) This section is effective the date this act becomes law and applies beginning with applications submitted for fast‑track replication of schools opening in the 2018‑2019 school year.
PART V. EFFECTIVE DATE
SECTION 5. Except as otherwise provided, this act is effective when it becomes law and applies beginning with the 2017‑2018 school year.