Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 289 First Substitute (2016GS)

Sponsor

Rep. DiCaro, S.

Final action

Governor Signed 3/23/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends provisions related to the closure of a charter school;
• amends a charter school authorizer's duties;
• grants rulemaking authority to the State Board of Education; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

CHARTER SCHOOL CLOSURE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Sophia M. DiCaro
Senate Sponsor: 
Luz Escamilla
LONG TITLE
General Description:
This bill modifies provisions related to the closure of a charter school.
Highlighted Provisions:
This bill:
▸ amends provisions related to the closure of a charter school;
▸ amends a charter school authorizer's duties;
▸ grants rulemaking authority to the State Board of Education; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53A-1a-502.5
, as last amended by Laws of Utah 2014, Chapter 406
53A-1a-504
, as last amended by Laws of Utah 2015, Chapter 389
53A-1a-510.5
, as last amended by Laws of Utah 2014, Chapter 363
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53A-1a-502.5
 is amended to read:
53A-1a-502.5.
 Approval of increase in charter school enrollment capacity --
Expansion.
(1) For the purposes of this section:
(a) "High growth area" means an area of the state where school enrollment is
significantly increasing or projected to significantly increase.
(b) "Next school year" means the school year that begins on or after the July 1
immediately following the end of a general session of the Legislature.
(2) The State Board of Education may approve an increase in charter school enrollment
capacity [
in the 2012-13 school year or thereafter
] subject to the Legislature:
(a) appropriating funds for an increase in charter school enrollment capacity in the next
school year; or
(b) authorizing an increase in charter school enrollment capacity in the school year
immediately following the next school year.
(3) In appropriating funds for, or authorizing, an increase in charter school enrollment
capacity, the Legislature shall provide a separate appropriation or authorization of enrollment
capacity for a charter school proposed and approved in response to a request for applications
issued under Section 
53A-1a-501.9
.
(4) (a) A charter school may annually submit a request to the State Board of Education
for an increase in enrollment capacity in the amount of .25 times the number of students in
grades 9 through 12 enrolled in an online course in the previous school year through the
Statewide Online Education Program.
(b) A charter school shall submit a request for an increase in enrollment capacity
pursuant to Subsection (4)(a) on or before October 1 of the school year for which the increase
in enrollment capacity is requested.
(c) The State Board of Education shall approve a request for an increase in enrollment
capacity made under Subsection (4)(a) subject to the availability of sufficient funds
appropriated under Section 
53A-1a-513
 to provide the full amount of the per student allocation
for each charter school student in the state to supplement school district property tax revenues.
(d) An increase in enrollment capacity approved under Subsection (4)(c) shall be a
permanent increase in the charter school's enrollment capacity.
(5) (a) On or before January 1, 2017, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, the State Board of Education shall, after considering
suggestions from charter school authorizers, make rules establishing requirements, procedures,
and deadlines for an expansion of a charter school.
(b) The rules described in Subsection (5)(a) shall include rules related to:
(i) an expansion of a charter school when another charter school issues a notice of
closure; and
(ii) the establishment of a satellite campus.
[
(5)
] 
(6)
 (a) If the Legislature does not appropriate funds for an increase in charter
school enrollment capacity that is tentatively approved by the State Board of Education, the
State Board of Education shall prioritize the tentatively approved schools and expansions based
on approved funds.
(b) A charter school or expansion that is tentatively approved, but not funded, shall be
considered to be tentatively approved for the next application year and receive priority status
for available funding.
[
(6)
] 
(7)
 (a) Except as provided in Subsection [
(5)
] 
(6)
(b) or [
(6)
] 
(7)
(b), in approving
an increase in charter school enrollment capacity for new charter schools and expanding charter
schools, the State Board of Education shall give:
(i) high priority to approving a new charter school or a charter school expansion in a
high growth area; and
(ii) low priority to approving a new charter school or a charter school expansion in an
area where student enrollment is stable or declining.
(b) An applicant seeking to establish a charter school in a high growth area may elect
to not receive high priority status as provided in Subsection [
(6)
] 
(7)
(a)(i).
Section 2. Section 
53A-1a-504
 is amended to read:
53A-1a-504.
Charter school application -- Applicants -- Contents.
(1) (a) An application to establish a charter school may be submitted by:
(i) an individual;
(ii) a group of individuals; or
(iii) a nonprofit legal entity organized under Utah law.
(b) An authorized charter school may apply under this chapter for a charter from
another charter school authorizer.
(2) A charter school application shall include:
(a) the purpose and mission of the school;
(b) except for a charter school authorized by a local school board, a statement that,
after entering into a charter agreement, the charter school will be organized and managed under
Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act;
(c) a description of the governance structure of the school, including:
(i) a list of the governing board members that describes the qualifications of each
member; and
(ii) an assurance that the applicant shall, within 30 days of authorization, provide the
authorizer with the results of a background check for each member;
(d) a description of the target population of the school that includes:
(i) the projected maximum number of students the school proposes to enroll;
(ii) the projected school enrollment for each of the first three years of school operation;
and
(iii) the ages or grade levels the school proposes to serve;
(e) academic goals;
(f) qualifications and policies for school employees, including policies that:
(i) comply with the criminal background check requirements described in Section
53A-1a-512.5
;
(ii) require employee evaluations; and
(iii) address employment of relatives within the charter school;
(g) a description of how the charter school will provide, as required by state and federal
law, special education and related services;
(h) for a public school converting to charter status, arrangements for:
(i) students who choose not to continue attending the charter school; and
(ii) teachers who choose not to continue teaching at the charter school;
(i) a statement that describes the charter school's plan for establishing the charter
school's facilities, including:
(i) whether the charter school intends to lease or purchase the charter school's facilities;
and
(ii) financing arrangements;
(j) a market analysis of the community the school plans to serve;
(k) a capital facility plan;
(l) a business plan;
(m) other major issues involving the establishment and operation of the charter school;
and
(n) the signatures of the governing board members of the charter school.
(3) A charter school authorizer may require a charter school application to include:
(a) the charter school's proposed:
(i) curriculum;
(ii) instructional program; or
(iii) delivery methods;
(b) a method for assessing whether students are reaching academic goals, including, at
a minimum, participation in the Utah Performance Assessment System for Students under
Chapter 1, Part 6, Achievement Tests;
(c) a proposed calendar;
(d) sample policies;
(e) a description of opportunities for parental involvement;
(f) a description of the school's administrative, supervisory, or other proposed services
that may be obtained through service providers; or
(g) other information that demonstrates an applicant's ability to establish and operate a
charter school.
[
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the State Board of Education shall make rules regarding the expansion of a charter school,
including establishing a satellite campus, that provide:
]
[
(a) requirements for a charter school to apply and qualify for expansion; and
]
[
(b) procedures and deadlines for the application process.
]
Section 3. Section 
53A-1a-510.5
 is amended to read:
53A-1a-510.5.
Charter school closure.
(1) If a charter school is closed for any reason, including the termination of a charter in
accordance with Section 
53A-1a-510
 or the conversion of a charter school to a private school,
the provisions of this section apply.
[
(2) (a) As soon as possible after the decision is made to close a charter school,
notification of the decision, in writing, shall be provided by the charter school to:
]
(2) A decision to close a charter school is made:
(a) when a charter school authorizer approves a motion to terminate described in
Subsection 
53A-1a-510
(2)(c);
(b) when the State Board of Education takes final action described in Subsection
53A-1a-510
(2)(d)(ii); or
(c) when a charter school provides notice to the charter school's authorizer that the
charter school is relinquishing the charter school's charter.
(3) (a) No later than 10 days after the day on which a decision to close a charter school
is made, the charter school shall:
(i) provide notice to the following, in writing, of the decision:
[
(i) its
] 
(A) if the charter school made the decision to close, the
 charter [
school
]
school's
 authorizer;
[
(ii)
] 
(B)
 the State Charter School Board;
[
(iii)
] 
(C) if the State Board of Education did not make the decision to close,
 the State
Board of Education;
[
(iv)
] 
(D)
 parents of [
its
] students 
enrolled at the charter school
;
[
(v) its
] 
(E) the charter school's
 creditors; [
and
]
(F) the charter school's lease holders;
(G) the charter school's bond issuers;
(H) other entities that may have a claim to the charter school's assets;
[
(vi)
] 
(I)
 the school district in which the charter school is located and other charter
schools located in that school district[
.
]
; and
(J) any other person that the charter school determines to be appropriate; and
(ii) post notice of the decision on the Utah Public Notice Website, created in Section
63F-1-701
.
(b) The [
notification under
] 
notice described in
 Subsection [
(2)
] 
(3)
(a) shall include:
(i) the proposed date of 
the charter
 school closure;
(ii) the 
charter
 school's plans to help students identify and transition into a new school;
and
(iii) contact information for the charter school during the transition.
[
(3) A closing charter school shall:
]
[
(a) present a school closure plan to its authorizer as soon as possible after the decision
to close is made;
]
(4) After a decision to close a charter school is made, the closing charter school shall:
[
(b)
] 
(a)
 designate a custodian for the protection of student files and school business
records;
[
(c)
] 
(b)
 maintain a base of operation throughout the charter school closing, including:
(i) an office;
(ii) hours of operation; [
and
]
(iii) operational telephone service with voice messaging stating the hours of operation;
and
(iv) a designated individual to respond to questions or requests during the hours of
operation;
[
(d)
] 
(c)
 maintain insurance coverage and risk management coverage throughout the
transition to closure and for a period following closure of the charter school as specified by the
charter school's
 authorizer;
[
(e)
] 
(d)
 complete a financial audit 
or other procedure required by board rule
immediately after the decision to close is made;
[
(f)
] 
(e)
 inventory all assets of the charter school; 
and
[
(g)
] 
(f)
 list all creditors of the charter school and specifically identify secured creditors
and assets that are security interests[
; and
]
.
[
(h) protect all school assets against theft, misappropriation, and deterioration.
]
[
(4) (a) Any assets held subject to written conditions or limitations in accordance with
Section 
53A-1a-517
 shall be disposed of in accordance with those conditions or limitations.
]
[
(b) All liabilities and obligations of the closing charter school shall be paid and
discharged or adequate provisions shall be made to discharge the liabilities and obligations to
the extent of the closing school's assets. (c) (i) The remaining assets shall be returned
]
(5) The closing charter school's authorizer shall oversee the closing charter school's
compliance with Subsection (4).
(6) (a) A closing charter school shall return any assets remaining, after all liabilities
and obligations of the closing charter school are paid or discharged,
 to the closing charter
school's authorizer.
[
(ii) The
] 
(b) The closing charter school's
 authorizer [
may
] 
shall
 liquidate assets at fair
market value or assign the assets to another public school.
[
(5) To the extent possible, all leases, service agreements, and other contracts not
necessary for the transition of the closing charter school should be terminated.
]
(7) The closing charter school's authorizer shall oversee liquidation of assets and
payment of debt in accordance with board rule.
[
(6)
] 
(8)
 The closing charter school shall
:
(a) comply with all state and federal reporting requirements; and
(b)
 submit all documentation 
and complete all state and federal reports
 required by [
its
]
the closing charter school's
 authorizer 
or the State Board of Education
 , including documents to
verify [
its
] 
the closing charter school's
 compliance with procedural requirements [
as well as
]
and
 satisfaction of all financial issues.
[
(7)
] 
(9)
 When the closing charter school's financial affairs are closed out and
dissolution is complete, the authorizer shall ensure that a final audit of the charter school is
completed.
[
(8) The
] 
(10) On or before January 1, 2017, in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the
 State Board of Education [
may
] 
shall, after
considering suggestions from charter school authorizers,
 make rules that
:
(a)
 provide additional closure [
requirements upon
] 
procedures for
 charter schools [
or
that specify elements of charter school closure plans.
] 
; and
(b) establish a charter school closure process.