Bill Text: OR HB2028 | 2011 | Regular Session | Introduced

---

Bill Title: Relating to public charter schools.

Sponsorship: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2028 Detail]

Download: Oregon-2011-HB2028-Introduced.html

---

     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 703

                         House Bill 2028

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Superintendent of Public
  Instruction Susan Castillo for Department of Education)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Allows sponsor of public charter school to terminate charter
for failure of school to have audit prepared or failure of school
to forward other information to sponsor.
  Requires school district that is sponsor of public charter
school to forward public charter school annual audit to
Department of Education as part of audit report for school
district. Allows department to withhold payments to school
district from State School Fund until audit is provided.
  Allows sponsor to terminate charter for failure to maintain
sound financial management system for any period of time. Allows
sponsor and public charter school to agree to develop plan to
correct deficiencies if school fails to maintain financial
stability or fails to maintain sound financial management system.
  Allows school district board to consider prior history of
applicant for public charter school when evaluating proposal for
public charter school.

                        A BILL FOR AN ACT
Relating to public charter schools; amending ORS 327.137,
  338.055, 338.095 and 338.105.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 338.095 is amended to read:
  338.095. (1) A public charter school shall report to the
sponsor and the State Board of Education at least annually on the
performance of the school and its students. A public charter
school shall disclose in its report information necessary to make
a determination of compliance with the requirements of this
chapter. The sponsor or the sponsor's designee at least annually
shall visit the public charter school site and review the public
charter school's compliance with the terms and provisions of the
charter.
  (2) { + (a) + } The public charter school shall have an annual
audit of the accounts of the public charter school prepared in
accordance with the Municipal Audit Law, ORS 297.405 to 297.555
and 297.990. After an audit, the following shall be forwarded to
the sponsor  { - , the State Board of Education and the
Department of Education - } :
    { - (a) - }   { + (A) + } A copy of the annual audit;

    { - (b) - }   { + (B) + } Any statements from the public
charter school that show the results of all operations and
transactions affecting the financial status of the public charter
school during the preceding annual audit period for the school;
and
    { - (c) - }   { + (C) + } A balance sheet containing a
summary of the assets and liabilities of the public charter
school as of the closing date of the preceding annual audit
period for the school.
   { +  (b) Failure to have an audit prepared or failure to
forward information as required by this subsection may be grounds
for termination of a charter under ORS 338.105. + }
  (3) The State Board of Education may require public charter
schools to file reports with the Department of Education as
necessary to enable the department to gather information on
public charter schools for inclusion in the Oregon Report Card
issued pursuant to ORS 329.115.
  SECTION 2. ORS 327.137 is amended to read:
  327.137. (1) { + (a) + } Every common or union high school
district shall file a copy of its audit report with the
Department of Education within six months of the end of the
fiscal year for which the audit is required.  { + The audit
report shall include:
  (A) Information necessary for the computation required in the
administration of ORS 327.006 to 327.133, 327.348, 327.355,
327.357, 327.360, 327.731, 328.542 and 530.115 and this section;
and
  (B) If the school district is a sponsor of any public charter
schools, a copy of each annual audit forwarded to the district as
required by ORS 338.095 (2)(a)(A).
  (b) + } If the audit report, as submitted to the district,
fails to provide the detail necessary for the computation
required in the administration of ORS 327.006 to 327.133,
327.348, 327.355, 327.357, 327.360, 327.731, 328.542 and 530.115
and this section, the district shall submit the necessary
information on forms provided by the department within the time
prescribed for filing the audit in this section.
   { +  (c) If the audit report fails to include a public charter
school annual audit as required by paragraph (a)(B) of this
subsection, the Superintendent of Public Instruction may:
  (A) Withhold any payments from the State School Fund for the
public charter school that, pursuant to ORS 338.155, are due
under ORS 327.095 to the district; and
  (B) Allow payments to be made from the State School Fund to the
district upon receipt of the annual audit or upon the meeting of
any other conditions identified by rule of the State Board of
Education.
  (d) + } Any district failing to file a copy of   { - its - }
 { + an audit + } report under this section or  { + a report
under  + }ORS 327.133   { - shall - }  { + may + } not receive
any payments from the State School Fund until
  { - such reports are - }   { + the report is + } filed.
  (2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
superintendent   { - of Public Instruction - }  may waive a
reporting date or specify an alternative date to provide the
audit report or information if a human-created disaster or a
natural disaster affects the ability of a district to provide the
audit report or information by a specified date.
  SECTION 3. ORS 327.137, as amended by section 15, chapter 846,
Oregon Laws 2007, and section 7, chapter 184, Oregon Laws 2009,
is amended to read:
  327.137. (1) { + (a) + } Every common or union high school
district shall file a copy of its audit report with the
Department of Education within six months of the end of the

fiscal year for which the audit is required.  { + The audit
report shall include:
  (A) Information necessary for the computation required in the
administration of ORS 327.006 to 327.133, 327.348, 327.731,
328.542 and 530.115 and this section; and
  (B) If the school district is a sponsor of any public charter
schools, a copy of each annual audit forwarded to the district as
required by ORS 338.095 (2)(a)(A).
  (b)  + }If the audit report, as submitted to the district,
fails to provide the detail necessary for the computation
required in the administration of ORS 327.006 to 327.133,
327.348, 327.731, 328.542 and 530.115 and this section, the
district shall submit the necessary information on forms provided
by the department within the time prescribed for filing the audit
in this section.
   { +  (c) If the audit report fails to include a public charter
school annual audit as required by paragraph (a)(B) of this
subsection, the Superintendent of Public Instruction may:
  (A) Withhold any payments from the State School Fund for the
public charter school that, pursuant to ORS 338.155, are due
under ORS 327.095 to the district; and
  (B) Allow payments to be made from the State School Fund to the
district upon receipt of the annual audit or upon the meeting of
any other conditions identified by rule of the State Board of
Education.
  (d) + } Any district failing to file a copy of   { - its - }
 { + an audit + } report under this section or  { + a report
under + } ORS 327.133   { - shall - }  { + may + } not receive
any payments from the State School Fund until
  { - such reports are - }   { + the report is + } filed.
  (2) Notwithstanding the timeline provided by this section and
pursuant to rules adopted by the State Board of Education, the
superintendent   { - of Public Instruction - }  may waive a
reporting date or specify an alternative date to provide the
audit report or information if a human-created disaster or a
natural disaster affects the ability of a district to provide the
audit report or information by a specified date.
  SECTION 4. ORS 338.105, as amended by section 12, chapter 691,
Oregon Laws 2009, is amended to read:
  338.105. (1) During the term of a charter, the sponsor may
terminate the charter on any of the following grounds:
  (a) Failure to meet the terms of an approved charter or this
chapter.
  (b) Failure to meet the requirements for student performance
stated in the charter.
  (c) Failure to correct a violation of a federal or state law
that is described in ORS 338.115.
  (d) Failure to maintain insurance as described in the charter.
  (e) Failure to maintain financial stability.
  (f) Failure to maintain  { - , for two or more consecutive
years, - } a sound financial management system described in the
proposal submitted under ORS 338.045 and incorporated into the
written charter under ORS 338.065.
   { +  (g) Failure to have an audit prepared or failure to
forward information as required under ORS 338.095 (2). + }
  (2) { + (a) + } If a charter is terminated under subsection (1)
of this section, the sponsor shall notify the public charter
school governing body at least 60 days prior to the proposed
effective date of the termination. The notice shall state the
grounds for the termination.
   { +  (b) If the grounds for termination include failure to
maintain financial stability or failure to maintain a sound
financial management system, the sponsor and the public charter
school may agree to develop a plan to correct deficiencies. Under
a plan to correct deficiencies:

  (A) The public charter school may attempt to correct any
deficiencies related to financial stability or a sound financial
management system by a date identified by the sponsor, which may
not be less than 60 days from the date of the notice;
  (B) The proposed effective date of the termination may be
extended to the date identified under subparagraph (A) of this
paragraph;
  (C) The sponsor may withhold up to 50 percent of the moneys
owed to the public charter school while the public charter school
is on the plan unless the withholding would create an undue
hardship, as determined pursuant to rules of the State Board of
Education; and
  (D) The sponsor must hold in trust any moneys withheld under
subparagraph (C) of this paragraph until:
  (i) The public charter school complies with the plan to correct
deficiencies, at which time the public charter school is entitled
to the moneys held in trust; or
  (ii) The public charter school fails to comply with the plan to
correct deficiencies, at which time the charter is terminated and
the public charter school forfeits any claim to the moneys held
in trust.
  (c) A deadline to correct deficiencies under paragraph (b)(A)
of this subsection may be extended by mutual agreement of the
sponsor and the public charter school.
  (d) + } The public charter school governing body may request a
hearing by the sponsor { +  in relation to a termination or a
plan to correct deficiencies + }.
  (3) A public charter school governing body may appeal any
decision of a sponsor   { - that is - }  { +  related to a
termination or a plan to correct deficiencies to + }:
  (a)   { - A school district board to - }  The State Board of
Education { + , if the sponsor is a school district board + }.
The State Board of Education shall adopt by rule procedures to
ensure a timely appeals process to prevent disruption of
students' education.
  (b)   { - The State Board of Education to - }  The circuit
court pursuant to ORS 183.484 { + , if the sponsor is the State
Board of Education + }.
  (4)(a) Notwithstanding subsection (2) of this section, a
sponsor may terminate a charter immediately and close a public
charter school if the public charter school is endangering the
health or safety of the students enrolled in the public charter
school.
  (b) The public charter school governing body may request a
hearing from the sponsor on the termination of the charter under
this subsection. The sponsor shall hold a hearing within 10 days
after receiving the request.
  (c) The public charter school governing body may appeal a
decision of a sponsor under this subsection to the State Board of
Education. The State Board of Education shall hold a hearing
within 10 days after receiving the appeal request.
  (d) Throughout the appeals process, the public charter school
shall remain closed at the discretion of the sponsor unless the
State Board of Education orders the sponsor to open the public
charter school and not terminate the charter.
  (5) Termination of a charter shall not abridge the public
charter school's legal authority to operate as a private or
nonchartered public school.
  (6) If a charter is terminated or a public charter school is
dissolved, the assets of the public charter school that were
purchased with public funds shall be given to the State Board of
Education. The State Board of Education may disburse the assets
of the public charter school to school districts or other public
charter schools.
  (7) A public charter school governing body may only terminate a
charter, dissolve or close a public charter school at the end of
a semester. If a charter is terminated by the public charter
school governing body or a public charter school is closed or
dissolved, the public charter school governing body shall notify
the sponsor at least 180 days prior to the proposed effective
date of the termination, closure or dissolution.
  SECTION 5. ORS 338.055 is amended to read:
  338.055. (1) Within 60 days of receipt of a proposal submitted
under ORS 338.045, the school district board shall hold a public
hearing on the provisions of the proposal.
  (2) The school district board shall evaluate a proposal in good
faith using the following criteria:
  (a) The demonstrated, sustainable support for the public
charter school by teachers, parents, students and other community
members, including comments received at the public hearing held
under subsection (1) of this section;
  (b) The demonstrated financial stability of the public charter
school, including the demonstrated ability of the school to have
a sound financial management system in place at the time the
school begins operating;
  (c) The capability of the applicant, in terms of support and
planning, to provide comprehensive instructional programs to
students pursuant to an approved proposal;
  (d) The capability of the applicant, in terms of support and
planning, to specifically provide, pursuant to an approved
proposal, comprehensive instructional programs to students
identified by the applicant as academically low achieving;
  (e) The extent to which the proposal addresses the information
required in ORS 338.045;
  (f) Whether the value of the public charter school is
outweighed by any directly identifiable, significant and adverse
impact on the quality of the public education of students
residing in the school district in which the public charter
school will be located;
  (g) Whether there are arrangements for any necessary special
education and related services for children with disabilities
pursuant to ORS 338.165;   { - and - }
  (h) Whether there are alternative arrangements for students and
for teachers and other school employees who choose not to attend
or who choose not to be employed by the public charter school
 { - . - }  { + ; and
  (i) The prior history, if any, of the applicant in operating a
public charter school or in providing educational services. + }
  (3) The school district board must approve a proposal or state
in writing the reasons for disapproving a proposal within 30 days
after the public hearing held under subsection (1) of this
section.
  (4) Written notice of the school district board's action shall
be sent to the applicant. If the proposal is not approved, the
reasons for the denial and suggested remedial measures, if any,
shall be clearly stated in the notice sent by the school district
board to the applicant. If the proposal is not approved, the
applicant may amend the proposal to address objections and any
suggested remedial measures and resubmit the proposal to the
school district board. The school district board shall approve or
disapprove the resubmitted proposal within 20 days after
receiving it. If the proposal is not approved, the applicant may
appeal the decision of the school district board to the State
Board of Education.
  (5) Individual elements in a public charter school proposal may
be changed through the proposal and chartering process.
  (6) A proposal to convert an existing public school to a public
charter school must be approved by the school district board of
the public school.
  (7) The school district board or the State Board of Education
shall not charge any fee to applicants for the proposal process.

  (8) Upon request by a school district, the State Board of
Education may grant an extension of any timeline required by this
section if the district has good cause for requesting the
extension.
                         ----------