hb629_LC_33_0797_a_2.html
05 LC 33 0797
House Bill 629
By: Representatives Chambers of the 81st, Thomas of the 55th, Coleman of the 97th, Jacobs of the 80th, and Millar of the 79th

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to elementary and secondary education, so as to revise legislative intent relative to charter schools; to add a definition; to provide for the establishment of virtual charter schools; to repeal Code Section 20-2-2063.1, relating to exemption of charter schools from statutory and regulatory requirements; to provide that a denial by a local board of a charter petition or renewal for a conversion or start-up charter school may be appealed to the State Board of Education; to provide that a charter school shall not be subject to the provisions of Title 20 and other regulations; to change certain provisions relating to operating requirements, control, and management; to change certain provisions relating to admission, enrollment, and withdrawal of students; to change certain provisions relating to the term and length of a charter; to change the provisions relating to the annual required report on the progress of the school; to revise and clarify certain provisions relating to funding for charter schools; to change certain provisions relating to purposes for which facilities funds may be used and upkeep of charter school property; to change certain provisions relating to the annual report to the General Assembly; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to elementary and secondary education, is amended by striking Code Section 20-2-2061, relating to legislative intent, and inserting in lieu thereof the following:
"20-2-2061.

It is the intent of the General Assembly to provide a means whereby a petitioner may seek a performance based contract called a charter, which ties improved performance to the waiver of specifically identified state and local rules, regulations, policies, procedures, and identified provisions of this title other than the provisions of this article. In addition to specifically identified provisions of this title, a charter school shall be exempt from provisions listed in Code Section 20-2-2063.1. It is the intent of the General Assembly to increase student achievement through academic and organizational innovation by encouraging local school systems to utilize the flexibility offered by chartering."

SECTION 2.
Said chapter is further amended in Code Section 20-2-2062, relating to definitions, by inserting a new paragraph (5.1) to read as follows:
"(5.1) 'High school cluster' means a local charter high school and all of the charter middle and elementary schools which contain students who matriculate to such high school."

SECTION 3.
Said chapter is further amended by striking Code Section 20-2-2063, relating to minimum requirements for charter petitions, and inserting in lieu thereof the following:
"20-2-2063.
(a) The State Board of Education shall promulgate rules, regulations, policies, and procedures to govern the contents of a charter petition, provided that the following shall be required at a minimum:
(1) The state board shall require that a petition designate the performance to be improved and how it will be improved through the waiver of specifically identified state and local rules, regulations, policies, and procedures, or provisions of this title other than the provisions of this article;
(2) The state board shall require that a petition describe how it will measure the improvement in such performance and over what period of time, provided that such requirement shall not waive the accountability provisions of Part 3 of Article 2 of Chapter 14 of this title; and
(3) The state board shall require that a petition demonstrate how any such waiver does not undermine and is consistent with the intent of the waived state and local rules, regulations, policies, and procedures, or the provisions of this title.
(b) The State Board of Education shall establish rules, regulations, policies, and procedures to provide for the receipt of charter petitions from a group of two or more local schools as a single charter petitioner to convert to conversion charter school status. An existing conversion charter school may join as part of a group charter petition, and if such group charter petition is approved, the new charter shall supersede the conversion charter schooĺs previous charter. A group charter petition may be comprised of all the schools in a high school cluster as such term is defined in Code Section 20-2-2062.
(c) The State Board of Education shall establish rules, regulations, policies, and procedures to provide for charter petitions from two or more local school systems to jointly authorize a local charter school."

SECTION 4.
Said chapter is further amended by repealing in its entirety Code Section 20-2-2063.1, relating to exemption of charter schools from statutory and regulatory requirements.

SECTION 5.
Said chapter is further amended by striking Code Section 20-2-2064.1, relating to review of charter by state board and charters for state chartered special schools, and inserting in lieu thereof the following:
"20-2-2064.1.
(a) The state board shall approve the charter of a charter petitioner if the petition has been approved by the local board of the local school system in which the proposed charter school will be located and the state board finds that the petition complies with the rules, regulations, policies, and procedures promulgated in accordance with Code Section 20-2-2063 and the provisions of this title and is in the public interest. If the state board denies a petition, it must within 60 days specifically state the reasons for the denial, list all deficiencies with regard to Code Section 20-2-2063, and provide a written statement of the denial to the charter petitioner and to the local board.
(b) No application for a state chartered special school may be made to the state board by a petitioner for a conversion charter school that has been denied by a local board. Upon denial of a petition for a start-up charter school by a local board and upon application to the state board by the petitioner, the state board shall approve the charter of a start-up charter petitioner for a state chartered special school if the state board finds that such petition meets the requirements set forth in Code Section 20-2-2063 and the provisions of this title, and is in the public interest.
(c)(1) If a local board denies a charter petition or a renewal petition for a conversion charter school or a start-up charter school, the charter petitioner may initiate an appeal to the state board, provided that two members of the local board voted to approve the charter petition or the renewal petition. The charter petitioner shall provide the state board and the local board with a notice of appeal no later than 30 days after receipt of the local board́s written statement of denial. The state board shall promulgate rules and regulations to govern the appeals process.
(2) After an opportunity for a hearing concerning the local board́s denial, the state board́s decision shall be binding on the local board."
SECTION 6.
Said chapter is further amended by striking Code Section 20-2-2065, relating to operating requirements, control, and management, and inserting in lieu thereof the following:
"20-2-2065.
(a) Except as provided in this article or in a charter, a charter school shall not be subject to the provisions of this title or any state or local rule, regulation, policy, or procedure relating to schools within an applicable school system regardless of whether such rule, regulation, policy, or procedure is established by the local board, the state board, or the Department of Education; provided, however, that the state board may establish rules, regulations, policies, or procedures consistent with this article relating to charter schools. In exchange for such a waiver, the charter school agrees to meet or exceed the performance based goals included in the petition and approved by the local board, including but not limited to raising student achievement.
(b) In determining whether to waive, as sought by the petitioner, specifically identified state and local rules, regulations, policies, and procedures, and provisions of this title other than the provisions of this article to approve a charter petition or renew an existing charter, the local board and state board shall ensure that a charter school shall be:
(1) A public, nonsectarian, nonreligious, nonprofit school that is not home based, provided that a charter schooĺs nonprofit status shall not prevent the school from contracting for the services of a for profit entity;
(2) Subject to the control and management of the local board of the local school system in which the charter school is located, as provided in the charter and in a manner consistent with the Constitution, if a local charter school; and provided that conversion charter schools may be autonomous from the local board to the same degree as start-up charter schools as specified in the charter petition;
(3) Subject to the supervision of the state board, as provided in the charter and in a manner consistent with the Constitution, if a state chartered special school;
(4) Organized and operated as a nonprofit corporation under the laws of this state; provided, however, that this paragraph shall not apply to conversion charter schools any charter petitioner who is a local school, or state or local public entity;
(5) Subject to all federal, state, and local rules, regulations, court orders, and statutes relating to civil rights; insurance; the protection of the physical health and safety of school students, employees, and visitors; conflicting interest transactions; and the prevention of unlawful conduct;
(6) Subject to all laws relating to unlawful conduct in or near a public school;
(7) Subject to an annual financial audit in the manner specified in the charter conducted by the state auditor;
(8) Subject to the provisions of Part 3 of Article 2 of Chapter 14 of this title, and such provisions shall apply with respect to charter schools whose charters are granted or renewed on or after July 1, 2000;
(9) Subject to all reporting requirements of Code Section 20-2-160, subsection (e) of Code Section 20-2-161, Code Section 20-2-320, and Code Section 20-2-740;
(10) Subject to the requirement that it shall not charge tuition or fees to its students except as may be authorized for local boards by Code Section 20-2-133; and
(11) Subject to the provisions of Code Section 20-2-1050 requiring a brief period of quiet reflection."

SECTION 7.
Said chapter is further amended in Code Section 20-2-2066, relating to admission, enrollment, and withdrawal of students, by striking paragraph (1) of subsection (a) and inserting in lieu thereof a new paragraph (1) of subsection (a) to read as follows:
"(1) A local charter school shall enroll any student who resides in the school system in which the local charter school is located and who submits a timely application as specified in the charter unless the number of applications exceeds the capacity of a program, class, grade level, or building. In such case, all such applicants shall have an equal chance of being admitted through a random selection process unless otherwise prohibited by law; provided, however, that a local charter school shall may give enrollment preference to such students who reside in the attendance zone specified in the charter and may give enrollment preference to a in the following order of priority:
(A) For a conversion charter school, students who were enrolled in the local school prior to its becoming a conversion charter school;
(B) A sibling of a resident student currently enrolled in the local charter school or high school cluster; and
(C) Students whose parent or guardian is a member of the governing board of the charter school or is a full-time teacher, professional, or other employee at the charter school;
(D) Students matriculating from one charter school to another pursuant to a matriculation agreement between the charter schools which has been approved by the authorizing local board or state board, as appropriate; and
(E) Students who reside in the attendance zone specified in the charter; and"

SECTION 8.
Said chapter is further amended by striking Code Section 20-2-2067.1, relating to amendment of terms of charter for charter school, initial term of charter, and annual report, and inserting in lieu thereof the following:
"20-2-2067.1.
(a) The terms of a charter for a local charter school may be amended during the term of the charter upon the approval of the local board, the state board, and the charter school. The terms of a charter for a state chartered special school may be amended during the term of the charter upon the approval of the state board and the charter school.
(b) The initial term of a charter shall be for a minimum of three five years, unless the petitioner shall request a shorter period of time, and shall not exceed five ten years. The local board and the state board, in accordance with Code Section 20-2-2064.1. may renew a local charter, upon the request of the charter school, for the period of time specified in the request, not to exceed five ten years. The state board may renew a state chartered special school, upon the request of the school, for the period of time specified in the request, not to exceed ten years. For a local charter school, approval of the local board shall also be required to renew a charter.
(c) A charter school shall provide an annual report to parents or guardians, the community, and the state board which indicates the progress made by the charter school in the previous year in implementing its charter goals. A local charter school shall also provide an annual report to the local board. A charter school shall submit an annual report outlining the previous yeaŕs progress to the authorizing local board or state board, as appropriate, and to the Department of Education no later than October 1 of each year. The report shall contain, but is not limited to:
(1) An indication of progress towards the goals as included in the charter;
(2) Academic data for the previous year, including state academic accountability data, such as standardized test scores and adequate yearly progress data;
(3) An independent financial audit for the fiscal year ending on June 30, provided that where the local school system maintains the financial records for the charter school and the charter school audit is part of the local school system audit conducted by the state auditor, the audit shall be due upon completion by the state auditor;
(4) Updated contact information for the school and the administrator;
(5) Proof of current nonprofit status, if applicable; and
(6) Any other supplemental information that the charter school chooses to include or that the state board requests that demonstrates its success."

SECTION 9.
Said chapter is further amended by striking subsections (a), (c), and (e) of Code Section 20-2-2068.1, relating to application of the Quality Basic Education Formula, grants, local tax revenue, and funds from local bonds, and inserting in lieu thereof the following:
"(a) A local charter school shall be included in the allotment of QBE formula earnings, applicable QBE grants, applicable nonQBE state grants, and applicable federal grants to the local school system in which the local charter school is located under Article 6 of this chapter. The local board and the state board shall treat a conversion charter school no less favorably than other local schools located within the applicable local school system unless otherwise provided by law. The local board and the state board shall treat a start-up charter school no less favorably than other local schools within the applicable local system with respect to the provision of funds for instruction and school administration and, where feasible, transportation, food services, and building programs. If all schools contained in a high school cluster become conversion charter schools, all such schools shall be treated no less favorably than other local schools located within the applicable local school system with regard to allocation of funds for capital projects. Any such high school cluster shall receive an allocation of total revenues for capital projects in an amount equal to at least an amount calculated as follows:
(1) Determine the total amount of actual or projected revenues for capital projects for the local school system;
(2) Multiply the amount obtained in paragraph (1) of this subsection by 80 percent;
(3) Determine the total number of full-time equivalent students in the high school cluster;
(4) Determine the total number of full-time equivalent students in the local school system;
(5) Divide the amount obtained in paragraph (3) of this subsection by the amount obtained in paragraph (4) of this subsection; and
(6) Multiply the quotient obtained in paragraph (5) of this subsection by the product obtained in paragraph (2) of this subsection.
The applicable local school system may claim an exemption from this allocation requirement by stating, in writing, its reasons that it should be exempt, and shall deliver such written statement to the state board and to each school in the high school cluster. The high school cluster may appeal the exemption to the state board in the same manner set forth in Code Section 20-2-2064.1 for the denial of a charter petition or renewal."
"(c) In addition to the earnings set out in subsection (b) of this Code section local tax revenue shall be earned by a local charter school and calculated as follows:
(1) Determine the amount of funds earned by students enrolled in the local charter school as calculated by the Quality Basic Education Formula pursuant to Code Section 20-2-160;
(2) Determine the amount of funds earned by all students in the public schools of the local school system, including any charter schools that receive local tax revenue, as calculated by the Quality Basic Education Formula;
(3) Divide the amount obtained in paragraph (1) of this subsection by the amount obtained in paragraph (2) of this subsection; and
(4) Multiply the quotient obtained in paragraph (3) of this subsection by the school systeḿs local tax revenue.
The product obtained in paragraph (4) of this subsection shall be the amount of local funds to be distributed to the local charter school by the local board; provided, however, that nothing in this subsection shall preclude a charter petitioner and a local board of education from specifying in the charter a greater amount of local funds to be provided by the local board to the local charter school if agreed upon by all parties to the charter. Local funds so earned shall be distributed to the local charter school by the local board. Where feasible and where services are provided, funds for transportation, food service programs, and construction projects shall also be distributed to the local charter school as earned. In all other fiscal matters, including applicable federal allotments, the local board shall treat the local charter school no less favorably than other local schools located within the applicable school system and shall calculate and distribute the funding for the start-up charter school on the basis of its actual or projected enrollment in the current school year."
"(e) The state board may require a local referendum of the qualified voters in the local school system in which the proposed state chartered special school will be located. Such referendum shall be held at the next regularly scheduled general election or as may otherwise be authorized at an earlier date by the local board or boards of education affected. Such referendum shall be held for the purpose of deciding whether the local board of education shall provide funds from school tax levies to support such state chartered special school or incur bonded indebtedness to support such state chartered special school or both. The ballot question shall be approved by the state board."

SECTION 10.
Said chapter is further amended by striking Code Section 20-2-2068.2, relating to facilities fund for charter schools, purposes for which funds may be used, upkeep of charter school property, and receipt of surplus from board of education, by striking subsections (c) and (e) and inserting in lieu thereof new subsections(c) and (e) to read as follows:
"(c) A charter schooĺs governing body may use moneys from the facilities fund for the following purposes:
(1) Purchase of real property;
(2) Construction of school facilities, including initial and additional equipment and furnishings;
(3) Purchase, lease-purchase, or lease of permanent or relocatable school facilities;
(4) Purchase of vehicles to transport students to and from the charter school; and
(5) Renovation, repair, and maintenance of school facilities that the charter school owns or is purchasing through a lease-purchase or long-term lease of five years or longer."
"(e) Local boards are required to renovate, repair, and maintain the school facilities of charter schools in the district to the same extent as other public schools in the district if the local board owns the charter school facility, unless otherwise agreed upon by the petitioner and the local board in the charter."

SECTION 11.
Said chapter is further amended by striking Code Section 20-2-2070, relating to annual report to the general assembly, and inserting in lieu thereof the following:
"20-2-2070.
The state board shall report to the General Assembly no later than November 1 December 31 of each year on the status of the charter school program."

SECTION 12.
All laws and parts of laws in conflict with this Act are repealed.