SENATE 3rd Reading Unamended April 7, 2015 SENATE Amended 2nd Reading April 6, 2015First Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 15-0728.02 Julie Pelegrin x2700 SENATE BILL 15-216 SENATE SPONSORSHIP Hill, HOUSE SPONSORSHIP Fields, Senate Committees House Committees Education A BILL FOR AN ACT Concerning a school district's exclusive authority to authorize charter schools located within the geographic boundaries of the school district. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under existing law, the state board of education (state board) must grant exclusive authority to a school district to authorize charter schools located within the geographic boundaries of the school district (exclusive chartering authority) if the school district meets specified requirements. The state charter school institute (institute) cannot authorize an institute charter school within the boundaries of a school district that has exclusive chartering authority without the school district's consent. To recover exclusive chartering authority, a school district must submit a resolution to the state board. The bill requires the school district to provide a copy of the resolution to each of the district's charter schools at least 30 days before submitting the resolution. On or before the date on which the school district submits the resolution to the state board, a charter school or an organization that represents charter schools may submit to the state board a written description of the ways in which the school district does or does not meet the requirements for exclusive chartering authority. Under the bill, the state board must revoke a school district's exclusive chartering authority if the school district is accredited with either a priority improvement plan or turnaround plan for 3 consecutive school years, unless the school district has a memorandum of understanding with the institute that allows the institute to authorize charter schools within the geographic boundaries of the school district or otherwise gives the institute significant authorizing authority in partnership with the school district. The state board may reinstate the school district's exclusive chartering authority when the school district's accreditation status improves. Under existing law, to recover exclusive chartering authority or retain it when challenged, a school district must demonstrate that it provides fair and equitable treatment to charter schools by taking actions identified in law. The bill also requires the school district to demonstrate compliance with the authorizer standards established in rules of the state board, requires the school district to demonstrate that it performs all of the actions specified in existing law, and adds the following actions that a school district must perform to recover its exclusive chartering authority or retain it when challenged: Annually issuing a charter application information packet; Adopting differentiated and streamlined application, renewal, and replication processes for high-quality charter schools; and Demonstrating that the school district closes or takes meaningful action to reform schools that are low-performing for 3 consecutive school years. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 22-30.5-504, amend (4), (5) (a), (5) (b) introductory portion, (7.5) (b) introductory portion, and (8); and add (4.5) as follows: 22-30.5-504. Institute chartering authority - institute charter schools - exclusive authority - retention - recovery - revocation. (4) (a) A local board of education may seek to retain or recover exclusive authority to authorize charter schools within the geographic boundaries of the school district by presenting to the state board, on or before March 1 of the fiscal year prior to that for which the exclusive authority is to apply, a written resolution adopted by the local board of education indicating the intent to retain or recover exclusive authority to authorize charter schools. The written resolution shall must be accompanied by a written description of those portions of subsection (5) of this section that the local board of education has demonstrated or intends to demonstrate. The local board of education shall provide a complete copy of the resolution, including the description, to each charter school authorized by the local board on or at least thirty days before the date the local board submits the resolution to the state board. A charter school authorized by the local board, or an organization that represents charter schools, may submit to the state board a written description of the ways in which the local board has or has not complied with the provisions of subsection (5) of this section on or before the date that the local board submits its resolution to the state board. (b) The state board shall determine within sixty days after receiving the resolution whether to grant the local board of education exclusive authority. If the state board denies the local board exclusive authority to authorize charter schools within the geographic boundaries of the school district, it shall must provide to the local board of education a written explanation of the basis for the denial. (b) (c) A party may challenge the grant of exclusive authority made by the state board pursuant to subsection (5) of this section by filing with the state board a notice of challenge within thirty days after the state board grants exclusive authority. The notice shall must be accompanied by a specific written description, with supporting documentation, of the basis for the challenge. The challenging party, at the time of filing notice with the state board, shall must provide a copy of the notice of challenge, with the written description of the basis and supporting documentation, to the local board of education that has been granted exclusive authority. The state board shall permit the local board the opportunity to appear at a public hearing and respond to the challenge and shall permit the challenger the opportunity at the public hearing to rebut any arguments made by the local board. If the local board of education intends to respond to the challenge, it shall must submit a copy of its response in writing, with supporting documentation, to the challenging party and the state board at least fifteen days prior to before the public hearing. The state board shall make a determination upon the challenge within sixty days after receipt of receiving the notice of challenge. In announcing its determination, the state board shall must provide a written explanation of the basis for its decision to either grant or deny to the local board exclusive authority to authorize charter schools within the geographic boundaries of the school district. (c) (d) If a local board of education recovers exclusive authority pursuant to this section to authorize charter schools within the geographic boundaries of the school district, any institute charter schools authorized within the geographic boundaries of the school district prior to before the date on which the local board of education recovered recovers exclusive authority shall continue to be authorized by and accountable to the institute; except that an institute charter school that is converted to a district charter school pursuant to subsection (10) of this section shall be is accountable to the local board of education. (d) (e) Each local board of education that has been granted, prior to or before, on, or after April 17, 2008, is granted exclusive authority to charter schools within the geographic boundaries of the school district, shall retain retains exclusive authority until the local board of education voluntarily relinquishes the exclusive authority or the state board of education revokes the exclusive authority pursuant to the provisions of subsection (7.5) of this section. A local board of education that voluntarily relinquishes exclusive authority may regain exclusive authority by applying pursuant to the provisions of this subsection (4). (4.5) (a) Except as otherwise provided in paragraph (b) of this subsection (4.5), but notwithstanding any other provision of this section to the contrary, the state board shall revoke a school district's exclusive authority to authorize charter schools within its geographic boundaries if the school district, pursuant to section 22-11-208, is accredited with either priority improvement plan or turnaround plan for three or more consecutive school years. The revocation takes effect on the date on which the department determines that the school district is accredited with either priority improvement plan or turnaround plan for the third or subsequent consecutive school year. After the school district attains the status of accredited with improvement plan or higher, the school district may apply to regain the exclusive authority to authorize charter schools within the geographic boundaries of the school district as provided in subsection (4) of this section, and the state board may reinstate the school district's exclusive authority as provided in this section. (b) (I) The provisions of paragraph (a) of this subsection (4.5) do not apply if the school district, before it is accredited with priority improvement plan or turnaround plan for the third consecutive school year, enters into and complies with a memorandum of understanding with the institute as described in subparagraph (II) of this paragraph (b). The memorandum of understanding must remain in effect at least until the school district attains the status of accredited with improvement plan or higher. If the memorandum of understanding ceases to be effective while the school district remains accredited with priority improvement plan or turnaround plan, the state board shall immediately revoke the school district's exclusive authority to authorize charter schools within its geographic boundaries. (II) At a minimum, a memorandum of understanding between a school district and the institute must provide that the institute may authorize institute charter schools within the geographic boundaries of the school district or, through the memorandum of understanding, the school district must agree to develop and implement, with the support of the institute: (A) New charter school application procedures and materials; (B) A request for proposals process for soliciting quality charter school applications; and (C) Annual charter school review and evaluation procedures. (III) If a school district enters into and is in compliance with a memorandum of understanding, as described in subparagraph (II) of this paragraph (b), by March 15, 2015, the school district is not required to have entered into the memorandum of understanding before it is accredited with priority improvement plan or turnaround plan for the third consecutive school year. (c) A school district that is accredited pursuant to section 22-11-208 with either a priority improvement plan or a turnaround plan for one or two consecutive years is encouraged to enter into a partnership agreement with the institute or with a school district that demonstrates a prolonged pattern of compliance with the provisions of paragraph (a) of subsection (5) of this section. The partnership should be designed to allow the institute or the school district to share best practices in charter school authorizing that the school district that is accredited with priority improvement or turnaround plan may adopt. (5) (a) The state board shall must grant to a local board of education exclusive authority to authorize charter schools within the geographic boundaries of the school district if the state board determines, after adequate notice and in a public hearing and after receiving input from any charter schools authorized by the local board of education or from an organization that represents charter schools, that the local board can show a recent pattern of providing fair and equitable treatment to its charter schools and complying with the authorizer standards established by rule of the state board through the local board's demonstration of: (I) Full compliance with the provisions of the "Charter Schools Act", part 1 of this article, which includes, at a minimum: (A) Compliance with full and accurate accounting practices and charges for central administrative overhead costs; (B) Compliance with sections 22-30.5-112 and 22-30.5-112.1, which permit a charter school to purchase, at its discretion, certain services or a combination of services; (C) The absence of a school district moratorium regarding charter schools or the absence of any district-wide charter school enrollment limits; and (D) Compliance with valid orders of the state board; and (II) Any combination of Compliance with the following: (A) The distribution Distributing to charter schools authorized by the local board of a pro rata share of mill levy overrides, except for any mill levied for a particular purpose that by its express terms is intended to benefit a grade, a program, or a school and, as a result, is not available to be offered to any charter school that did not participate in the mill levy proceeds; (B) The provision of Providing assistance to charter schools to meet their facilities needs by including those needs in local bond issues or otherwise providing available land and facilities that are comparable to those provided to other public school students in the same grade levels within the school district; (C) The distribution Distributing to charter schools authorized by the local board of a pro rata share of federal and state grants received by the school district, except for any grant received for a particular purpose that by its express terms is intended to benefit a student population not able to be served by, or a program not able to be offered at, a charter school which that did not receive a proportionate share of such grant proceeds; (D) The provision of Providing adequate staff and other resources to serve charter schools authorized by the local board, which services are provided by the school district provides at a cost to the charter schools that does not exceed their actual cost to the school district, or, in the case of federally required educational services, the amount specified in section 22-30.5-112 (2) (a.8); (E) The lack of Not implementing a policy or practice of imposing individual charter school enrollment limits, except as otherwise provided in article 36 of this title; or (F) Annually issuing a charter application information packet or new school request for proposals that is well-publicized and provides clear guidance and requirements regarding the charter application content, format, and timelines, as well as a clear explanation of the criteria for evaluating charter applications; (G) Adopting and using differentiated and streamlined charter application, renewal, and replication processes for high-quality charter schools; (F) (H) The provision of Providing an adequate number of high-quality educational choice programs to serve students exercising their rights to transfer pursuant to the "No Child Left Behind Act of 2001", Public Law 107-110, and demonstrating a history of charter school approval that encourages high-quality programs that serve at-risk student populations; and (I) Closing or taking other meaningful action concerning schools that are required to implement priority improvement or turnaround plans pursuant to section 22-11-210 for three or more consecutive school years and thereby decreasing the number of educational programs within the school district that inadequately serve students. (b) Notwithstanding any other provision of paragraph (a) of this subsection (5) to the contrary, the state board shall must grant to a local board of education exclusive authority to authorize charter schools within the geographic boundaries of the school district if the local board certifies that: (7.5) (b) A charter school, a charter school applicant, or an organization that represents charter schools may request revocation of a local board of education's exclusive authority only on the grounds that the local board, since the date that the local board received exclusive authority, has demonstrated a pattern of failing to comply with one or more of the provisions of the "Charter Schools Act", part 1 of this article, paragraph (a) of subsection (5) of this section. A charter school, a charter school applicant, or an organization that represents charter schools may not request revocation of a local board of education's exclusive authority solely on the basis of: (8) Notwithstanding any other provision of this section to the contrary, a local board of education may permit the establishment of one or more institute charter schools within the geographic boundaries of the school district by adopting a favorable resolution and submitting the resolution to the state board. The resolution shall be effective until it is rescinded by resolution of the local board of education An institute charter school that is established with permission granted in a resolution continues to be authorized by and accountable to the institute regardless of later actions by the local board unless the institute charter school voluntarily converts to a district charter school as provided in subsection (10) of this section. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.