STATE OF OKLAHOMA

2nd Session of the 54th Legislature (2014)

SENATE BILL 1663	By:	Ford

AS INTRODUCED

An Act relating to charter schools; amending 70 O.S. 2011, Section 3-137, which relates to charter school contracts; directing a sponsor to terminate a charter school contract if the school receives certain grades for a certain amount of time; amending Section 5, Chapter 367, O.S.L. 2012, as amended by Section 5, Chapter 212, O.S.L. 2013 (70 O.S. Supp. 2013, Section 3-145.3), which relates to the Statewide Virtual Charter School Board; directing the Statewide Virtual Charter School Board to terminate a statewide virtual charter school contract if the school receives certain grades for a certain amount of time; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     70 O.S. 2011, Section 3-137, is amended to read as follows:
Section 3-137.  A.  An approved contract for a charter school shall be effective for not longer than five (5) years from the first day of operation.  Prior to the beginning of the fifth year of operation, the charter school may apply for renewal of the contract with the sponsor.  The sponsor may deny the request for renewal if it determines the charter school has failed to complete the obligations of the contract or comply with the provisions of the Oklahoma Charter Schools Act.  A sponsor shall give written notice of its intent to deny the request for renewal at least eight (8) months prior to expiration of the contract.
B.  If a sponsor denies a request for renewal, the governing board may proceed to mediation or binding arbitration or both as provided for in subsection G of Section 3-134 of this title.
C.  A sponsor may terminate a contract during the term of the contract for failure to meet the requirements for student performance contained in the contract, failure to meet the standards of fiscal management, violations of the law, or other good cause.  The sponsor shall give at least ninety (90) days' written notice to the governing board prior to terminating the contract.  The governing board may request, in writing, an informal hearing before the sponsor within fourteen (14) days of receiving notice.  The sponsor shall conduct an informal hearing before taking action.  If a sponsor decides to terminate a contract, the governing board may proceed to mediation or binding arbitration or both as provided for in subsection G of Section 3-134 of this title.
D.  Beginning with the 2014-15 school year, a sponsor shall terminate a contract during the term of the contract if the charter school has received a grade of "D" or lower for three (3) consecutive years or has received a letter grade of "F" for two (2) consecutive years under the grading system established pursuant to Section 1210.545 of this title.  The sponsor shall give at least ninety (90) days' written notice to the governing board prior to terminating the contract.  The sponsor shall notify the State Board of Education when it revokes the sponsorship of a charter school pursuant to this subsection.
E.  If a contract is not renewed, the governing board of the charter school may submit an application to a proposed new sponsor as provided for in Section 3-134 of this title.
E. F.  If a contract is not renewed or is terminated according to this section, a student who attended the charter school may enroll in the resident school district of the student or may apply for a transfer in accordance with Section 8-103 of this title.
SECTION 2.     AMENDATORY     Section 5, Chapter 367, O.S.L. 2012, as amended by Section 5, Chapter 212, O.S.L. 2013 (70 O.S. Supp. 2013, Section 3-145.3), is amended to read as follows:
Section 3-145.3.  A.  Subject to the requirements of the Oklahoma Charter Schools Act, the Statewide Virtual Charter School Board shall:
1.  Provide oversight of the operations of statewide virtual charter schools in this state; and
2.  Establish a procedure for accepting, approving and disapproving statewide virtual charter school applications and a process for renewal or revocation of approved charter school contracts which minimally meet the procedures set forth in the Oklahoma Charter Schools Act.
B.  Each statewide virtual charter school which has been approved and sponsored by the Board or any virtual charter school for which the Board has assumed sponsorship of as provided for in Section 3-145.5 of this title shall be considered a statewide virtual charter school and the geographic boundaries of each statewide virtual charter school shall be the borders of the state.
C.  Each statewide virtual charter school approved by the Statewide Virtual Charter School Board shall be eligible to receive federal funds generated by students enrolled in the charter school for the applicable year.  Each statewide virtual charter school shall be considered a separate local education agency for purposes of reporting and accountability.
D.  As calculated as provided for in Section 3-142 of this title, a statewide virtual charter school shall receive the State Aid allocation and any other state-appropriated revenue generated by students enrolled in the virtual charter school for the applicable year, less up to five percent (5%) of the State Aid allocation, which may be retained by the Statewide Virtual Charter School Board for administrative expenses and to support the mission of the Board.  A statewide virtual charter school shall be eligible for any other funding any other charter school is eligible for as provided for in Section 3-142 of this title.  Each statewide virtual charter school shall be considered a separate local education agency for purposes of reporting and accountability.
E.  Students enrolled full-time in a statewide virtual charter school sponsored by the Statewide Virtual Charter School Board shall not be authorized to participate in any activities administered by the Oklahoma Secondary Schools Activities Association.  However, the students may participate in intramural activities sponsored by a statewide virtual charter school, an online provider for the charter school or any other outside organization.
F.  1.  Beginning with the 2014-15 school year, the Statewide Virtual Charter School Board shall terminate the charter contract of a statewide virtual charter school during the term of the contract if the school has received a letter grade of "D" or lower for three (3) consecutive years or has received a letter grade of "F" for two (2) consecutive years under the grading system established pursuant to Section 1210.545 of this title.  The Statewide Virtual Charter School Board shall give at least ninety (90) days' written notice to the statewide virtual charter school prior to terminating the contract.
2.  The decision of the Statewide Virtual Charter School Board to deny, nonrenew or terminate the charter contract of a statewide virtual charter school may be appealed to the State Board of Education within thirty (30) days of the decision by the Statewide Virtual Charter School Board.  The State Board of Education shall act on the appeal within sixty (60) days of receipt of the request from the statewide virtual charter school applicant.  The State Board of Education may reverse the decision of the Statewide Virtual Charter School Board or may remand the matter back to the Statewide Virtual Charter School Board for further proceeding as directed.
SECTION 3.  This act shall become effective July 1, 2014.
SECTION 4.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

54-2-2063	EB	1/15/2014 4:17:35 PM