The Committee on Education proposes the following amendment (SEDU-454.KG0001S):

Amend the bill, as and if amended, SECTION 1, by striking Section 59-40-40(4) and inserting:

 (4) "SponsorAuthorizer" means the South Carolina Public Charter School District Board of Trustees, the local school board of trustees in which the charter school is to be located, as provided by law, a public institution of higher learning or a nonprofit association directly affiliated with a public institution of higher learning as defined in Section 59-103-5, or an independent institution of higher learning or a nonprofit association directly affiliated with an independent institution of higher learning as defined in Section 59-113-50, from which the charter school applicant requested its charter and which granted approval for the charter school's existence. Only those public or independent institutions of higher learning, as defined in this subsection, who register and apply with the South Carolina Department of Education may serve as charter school sponsorsauthorizers, and the department Department of Education shall maintain a directory of those institutions. The sponsor authorizer of a charter school is the charter school's Local Education Agency (LEA), and a charter school is a school within that LEA. The sponsor authorizer retains responsibility for special education and shall ensure that students enrolled in its charter schools are served in a manner consistent with LEA obligations under applicable federal, state, and local law.

Amend the bill further, SECTION 1, by striking Section 59-40-40(6) and (7) and inserting:

 (6) "Noncertified teacher" means an individual considered appropriately qualified for the subject matter taught and who has completed at least one year of study at an accredited college or university and meets the qualifications outlined in Section 59-25-115. An individual whose South Carolina educator certificate has been suspended or revoked shall not be employed as a noncertified teacher during the term of suspension or revocation.
 (7) "Charter committee" means the governing body of a charter school formed by the applicant to govern through the application process and until the election of a board of directors is held. After the charter application is approved by the authorizerelection, the board of directors of the corporation must be organized as the governing body and the charter committee isshall be dissolved within six months of the school opening for students to attend.

Amend the bill further, SECTION 1, by striking Section 59-40-40(11), (12), and (13) and inserting:

 (11) "Charter management company" means any not-for-profit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended, and contracts with a charter school for educational design, implementation, or whole school management services.
 (12) "Education management company" means any for-profit organization that contracts with a charter school for educational design, implementation, or whole school management services.
 (13) "Whole school management services" means the financial, business, operation, and administrative functions for a school.
 (10)(11) "Management organization" means a corporation, business, organization, or other entity, whether conducted for profit or not-for-profit, with whom the governing body of a charter school contracts to operate, manage, or oversee the operation, management, or provision and implementation of educational services and programs to the charter school. This includes a corporation, business, organization, or other entity that directly employs the administrator or any of the educational personnel, or both.
 (11)(12) "Replication" means the approval of a charter school application based on the same model as an existing charter school.
 (13) "Virtual charter school" means a charter school whereby students are taught primarily through online methods, provided, however, that at least twenty-five percent of the instruction in core areas must be provided pursuant to South Carolina Regulation 43-601. Any student enrolled in a virtual charter school shall be a resident of a South Carolina school district as provided for in Sections 59-63-30, 59-63-31, 59-63-32, and 59-63-33.

Amend the bill further, SECTION 2, by striking Section 59-40-50(B)(3) and inserting:

  (3) adhere to the same financial laws and regulations, financial audits, audit procedures, and audit requirements as are applied to public schools, and post their its annual budget and audit in a prominent location on its website with other financial information required to be posted by law or regulation;

Amend the bill further, SECTION 2, by striking Section 59-40-50(B)(7), (8), and (9) and inserting:

  (7) admit all children eligible to attend public school to a charter school, subject to space limitations, except in the case of an application to create a single gender charter school or, in the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, with an explicit mission and purpose of specializing in providing evidence-based, specific educational or behavioral health services for educationally disadvantaged students with a demonstrated need for such services. Demonstrated need may include, but not be limited to, as documented in an Individualized Education Program (IEP), 504 plan, a medical or psychological diagnosis, or documentation that the student is not meeting grade-specific standards in literacy as documented by the student's school. For purposes of this section, educationally disadvantaged students are those students as defined by the Every Student Succeeds Act (ESSA) or other subsequent federal law. Evidence-based services must include, but are not limited to, services to students who need evidence-based, specialized, multi-sensory instruction in literacy or other services included in the students' IEP or 504 plan. This specialized mission and purpose must be defined in the school's charter and charter contract as approved by the sponsor authorizer and as allowed by ESSA or other federal law. However, it is required that the racial composition of the charter school enrollment reflect that of the local school district in which the charter school is located or that of the targeted student population of the local school district that the charter school proposes to serve, to be defined for the purposes of this chapter as differing by no more than twenty percent from that population. This requirement is also subject to the provisions of Section 59-40-70(D). If the number of applications exceeds the capacity of a program, class, grade level, or building, students must be accepted by lot, and there is no appeal to the sponsorauthorizer. In the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, that is serving educationally disadvantaged students, if the number of applicants exceeds the capacity of a program, class, grade level, or building, students may be accepted by weighted lot as allowed by ESSA or other federal law with mission-aligned preference and the process clearly described in their charter and charter contract approved by their sponsorauthorizer, and there is no appeal to the sponsorauthorizer;
  (8) not limit or deny admission or show preference in admission decisions to any individual or group of individuals, except in the case of an application to create a single gender charter school, in which case gender may be the only reason to show preference or deny admission to the school; a charter school may give enrollment priority to a sibling of a pupil currently enrolled and attending, or who, within the last six years, attended the school for at least one complete academic year. A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year. An enrollment preference for returning students excludes those students from entering into a lottery. A charter school also may give priority to children of a charter school employee and children of the charter committee, if priority enrollment for children of employees and of the charter committee does not constitute more than twenty percent of the enrollment of the charter school. In the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, mission-aligned preference may be given to educationally disadvantaged students as specifically defined in their charter and charter contract approved by their sponsor authorizer and as allowed by ESSA or other federal law. In addition, a charter school located on a federal military installation or base where the appropriate authorities have made buildings, facilities, and grounds on the installation or base available for use by the charter school as its principal location also may give enrollment priority to otherwise eligible students who are dependents of military personnel living in military housing on the base or installation or who are currently stationed at the base or installation not to exceed fifty percent of the total enrollment of the charter school. This priority is in addition to the other priorities provided by this item, but no child may be counted more than once for purposes of determining the percentage makeup of each priority;
  (9) consist of a board of directors of seven or more individuals with the exact number specified in or fixed in accordance with the bylaws. Members of a board of directors may serve a term of two years, and may serve additional terms. A choice of the membership of the board must take place every two years. Fifty percent of the members of the board as specified by the bylaws must be individuals who have a background in K-12 education or in business, and the bylaws of the charter school also must provide for the manner of selection of these members. In addition, at least fifty percent of the members of the board as specified by the bylaws must be elected by the employees and the parents or guardians of students enrolled in the charter schoolschools governed by the board. Parents or guardians shall have one vote for each student enrolled in the charter school. All members must be residents of the State of South Carolina. A person who has been convicted of a felony must not be elected to a board of directors. If the board of directors consists of an odd number of members, the extra member must be an individual who has a background in K-12 education or in business. Notice of the election must be posted on its website at least thirty days in advance of the election;

Amend the bill further, SECTION 2, by striking Section 59-40-50(B)(12) and inserting:

  (12) notify and provide a copy of any executed or amended charter or education management organization contracts to the authorizer. Contracts must also be posted in a prominent location on its website.

Amend the bill further, SECTION 3, by striking Section 59-40-55(A) and inserting:

 (A) In order to promote the quality of charter school outcomes and oversight, the State Board of Education shall adopt policies, procedures and practices that ensure good governance and accountability and that define the roles and responsibilities of the authorizer consistent with this Chapter. A charter school sponsor authorizer shall adopt national industry standards of quality charter schools and shall authorize and implement practicesand implement the policies, procedures, and practices consistent with this chapter. established by the State Board of Education consistent with those standards.

Amend the bill further, SECTION 3, by striking Section 59-40-55(B)(6), (7), and (8) and inserting:

  (6) collect, in accordance with Section 59-40-140(H), an annual report from each of its sponsored authorized charter schools and submit the reports to the Department of Educationthe report on the performance of each of its authorized charter schools and authorizers performance to the State Board of Education before December January thirtieth;
  (7) notify the charter school in writing of perceived problemsnoncompliance if itswith the school's academic performance, fiscal performance, general accounting principles performance or legal compliance appears to be unsatisfactorycharter or contract and provide reasonable opportunity for the school to remedy the problem, unless the problem warrants revocation and revocation timeframes apply. ;The school shall have up to twenty thirty calendar days to respond, in writing, describing how the issue will be remedied. If the problem warrants revocation, then the authorizer shall notify the school in writing and provide a copy to the State Superintendent of Education at the same time the school is notified and revocation timeframes apply;
  (8) develop a corrective action plan and take appropriate corrective actions or exercise sanctions short of revocation in response to apparent deficiencies as documented pursuant to item (7) in charter school performance or legal compliance. If the corrective action plan or corrective actions relate to special education services, then the authorizer shall provide a copy of the letter denoting the deficiencies and the corrective action plan to the Department of Education. The authorizer shall provide technical assistance and support at no cost to the charter school in developing and executing the corrective action plan. These actions or sanctions may include requiring a the school to develop and execute a the corrective action plan within a specified timeframe;

Amend the bill further, SECTION 3, by striking Section 59-40-55(B)(11), (12), (13), and (14) and inserting:

  (11) permanently close any charter school at the conclusion of the school year after receiving the lowest performance level rating as defined by the state and federal accountability system systems for three consecutive years in accordance with Section 59-40-110(E).;
  (12) post in a prominent location on its website all charter school applications, renewal applications, and any charter or education management organization contracts associated with the charter schools;
  (13) post in a prominent location on its website their budget as an authorizer, including revenues, source of revenue, and expenditures. If the authorizer has charged fees to a charter school for services, then those fees must be listed by individual school; and
  (14) review and notify the charter schools of any perceived problemsnoncompliance related to on all charter or education management organization contracts.; and
  (15) be subject to the ethics and government accountability requirements for public members and public employees in Chapter 13, Title 8. For purposes of this subsection, members of the authorizer's governing boards are considered public members, and employees of the authorizer's governing board are considered public employees.

Amend the bill further, SECTION 3, by striking Section 59-40-55(C) and (D) and inserting:

 (C) The South Carolina Public Charter School DistrictA charter school authorizer may shall retain no more than two percent of the total non-restricted state appropriations for each charter school it authorizes to cover the costs for overseeing its charter schools. A public or independent institution of higher learning authorizer shall retain or contract to retain two percent of the total non-restricted state appropriations for each charter school it authorizes to cover the costs for overseeing its charter schools. An authorizer may offer additional services to charter schools it sponsorsauthorizes, however the charter school shall be under no obligation to purchase those services from the authorizer. A charter school may not be penalized or have its charter revoked based upon their failure to purchase offered services from the authorizer. A charter authorizer offering such services shall post a list of those services and the cost of the service in a prominent place on the authorizer's website. The amount retained by the authorizer does not include costs incurred in delivering services that a charter school may purchase at its discretion from the authorizer. The sponsor's fee is not applicable to federal money or grants received by the charter school. The amount authorizers may charge for administration of federal funded programs or grants is subject to the terms and conditions of the federal program or grant. The sponsor authorizer shall use its funding provided pursuant to this section exclusively for the purpose of fulfilling sponsor authorizer obligations in accordance with this chapter.
 (D) The Department of Education shall conduct annual reviews aligned to the current state school district accreditation timeline, to monitor and evaluate the performance of all charter school authorizers, informed by the annual report provided for in this section. The review process must include an examination of how authorizers meet standards and practices, an evaluation of each authorizer's charter school's performance, and review of each authorizer's record of renewal, revocation, and authorization decisions. The Department of Education shall issue citations notices of concern, in writing, to the authorizer that must include descriptions of all performance concerns and establish a timeline by which the authorizer must correct any issues or deficiencies. In the case of continuous poor performance over a period of three years by a public or independent institution of higher learning authorizer, the Department of Education may terminate a charter school authorizer's registration. The State Board of Education shall allow an a public or independent institution of higher learning authorizer the opportunity to have a hearing before registration termination. All appeals from the State Board of Education's decisions to terminate a public or independent institution of higher learning authorizer registration shall be made to the Administrative Law Court. If a public or independent institution of higher learning authorizer's registration is terminated, the Department of Education shall develop a streamlined transfer application for charter schools to apply to a new authorizer for the remainder of the charter school's contract term.

Amend the bill further, SECTION 4, by striking Section 59-40-60(F)(17) and inserting:

  (17) a copy of any proposed charter or education management organization contracts contemplated by the charter school. The contract must include a term sheet that sets forth the length of the contract, the roles and responsibilities of the governing board of the charter school, the staff of the charter school, the staff of the management companyorganization, the scope of services and resources to be provided by the management companyorganization, the performance evaluation measures and timelines, the compensation structure, including clear identification of all fees to be paid to the charter management organization, the methods of contract oversight and enforcement, the conditions of renewal and termination of the contract and assurances that the governing board of the charter school, at all times, maintains independent fiduciary oversight and authority over the school budget and ultimate responsibility for the school's performance.
 (G) The Department of Education may develop a separate application for replication to encourage creation of additional charter schools that fulfill the purpose and mission of this chapter.

Amend the bill further, SECTION 4, Section 59-40-60, by adding a subsection to read:

 (G) The Department of Education may develop a separate application for replication to encourage creation of additional charter schools that fulfill the purpose and mission of this chapter.

Amend the bill further, SECTION 5, by striking Section 59-40-70(B) and inserting:

 (B) The board of trustees or area commission from which the applicant is seeking sponsorship authorization shall rule on the application for a charter school in a public hearing, upon reasonable public notice, within not less than forty-five days nor more than ninety days after receiving the application. If there is no ruling within ninety days, the application is considered approved. Once the application has been approved by the board of trustees or area commission, the charter school may open at the beginning of the following year. However, before a charter school may open, the State Department of Education shall verify the accuracy of the financial data for the school within forty-five days after approval.

Amend the bill further, SECTION 6, by striking Section 59-40-75(D) and inserting:

 (D)(1) An individual is prohibited from serving as a member of the governing board or employee of either a charter school or charter school authorizer if the individual, an immediate family member, or the individual's spouse is a full or part owner or principal with an entity with whom the charter school or authorizer contracts, directly or indirectly, for professional services, management organization services, goods, or facilities or is an employee of the charter school authorizer.
  (2) An individual is prohibited from serving as a member of the governing board of either a charter school or charter school authorizer if the individual, an immediate family member, or the individual's spouse is a full or part owner, principal owner, or employee of a management organization.

Amend the bill further, SECTION 7, by striking Section 59-40-90 and inserting:

 Section 59-40-90. A final decision of the school district or a public or independent institution of higher learning sponsor may be appealed by any party to the Administrative Law Court as provided in Sections 1-23-380(B) and 1-23-600(D).An appeal of any final decision made by an authorizer pursuant to this chapter must be made to the Administrative Law Court provided in Sections 1-23-380(B) and 1-23-600(D).

Amend the bill further, SECTION 8, by striking Section 59-40-115(A) and inserting:

 (A) A charter school may voluntarily terminate its charter and contract with a sponsorthe authorizer before the expiration of the ten-year term of the contract if all parties under contract with the charter school agree to the dissolution. A charter school that terminates its contract with a sponsor directly may seek application for the length of time remaining on its original contract from another sponsor.by a majority vote of the charter school board, which constitutes a dissolution event of the corporation and the charter school.

Amend the bill further, SECTION 8, by striking Section 59-40-115(B)(2) and (3) and inserting:

  (2) The proposed new authorizer shall issue a written final decision approving or denying the request to transfer before October thirty-first. The request to transfer may be denied by the proposed new authorizer for any reason; however, if the proposed authorizer determines the charter school's request to transfer is, to avoid accountability, prohibited by law or untimely, then the transfer must be denied. A copy of the final decision must be served on the charter school applying to transfer, the current authorizer, and the State Department of Education before November fifth. The decision of the proposed new authorizer to deny the request is not appealable.
  (3) If the proposed new authorizer approves the request to transfer, then the current authorizer shall issue a final decision approving or denying the request to transfer before December thirty-first. The authorizer must permit the charter school to submit materials or information to support its transfer request, all of which must be submitted at least five business days before the board meeting. A charter school who makes a written request at least five business days before the board meeting must be given an opportunity to appear and present information regarding their request. If an authorizer fails to comply with this section items (1) through (4), then the State Department of Education may compel the authorizer to comply with this section by withholding the authorizer's fees related to the charter school seeking to transfer until a final decision is issued the authorizer complies.

Amend the bill further, SECTION 8, by striking Section 59-40-115(B)(6)(c) and inserting:

   (c) more than two one transfer requests by the charter school within a ten-year period; or

Amend the bill further, SECTION 8, Section 59-40-115(B), by adding an item to read:

  (8) A charter school renewal application shall not be subject to the provisions of this section and is deemed not to be a transfer request.

Amend the bill further, SECTION 9, by striking Section 59-40-150(C) and inserting:

 (C) The Department of Education shall fulfill all duties of the State Education Agency (SEA) for each authorizer and shall provide technical assistance, oversight, and guidance to authorizers for compliance with LEA responsibilities to the same extent as other LEAs in this State. Sanctions issued by the department Department of Education against an authorizer may be appealed to the Administrative Law Court and must be stayed pending resolution of the appeal.

Amend the bill further, by adding an appropriately numbered SECTION to read:

SECTION X. Section 59-40-155 of the S.C. Code is amended to read:

 Section 59-40-155. (A) Within one year of taking office, all persons elected or appointed as members of a charter school board of trustees after July 1, 2006, shall complete successfully an orientation program in the powers, duties, and responsibilities of a board member including, but not limited to, topics on policy development, personnel, instructional programs, school finance, school law, ethics, and community relations. The orientation must be provided at no charge by the State Department of Education or an association approved by the department.
 (B) The Department of Education shall develop an application and approval process to allow authorizers the ability to implement board training programs that meet the requirements provided for in Section 59-40-155(A).
 (B)(C) Within ninety days of employment, an administrator employed by the charter school, who is not certified, shall complete successfully an orientation program in the powers, duties, and responsibilities of a school administrator including, but not limited to, topics on personnel, instructional programs, school finance, school law, ethics, and community relations. The orientation must be provided at no charge by the State Department of Education or an association approved by the department.
 (D) Authorizers may require members of a charter school board of trustees to complete governance training programs as specified and agreed upon in a charter school contract.

Renumber sections to conform.

Amend title to conform.