South Carolina General Assembly
114th Session, 2001-2002

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Bill 3386


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)


Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

March 22, 2001

    H. 3386

Introduced by Reps. Townsend, Walker, Allison, Barrett, Cato, Cooper, Hamilton, Harrell, Hinson, Keegan, Kelley, Martin, Riser, Sandifer, Sharpe, J.R. Smith, W.D. Smith, Thompson and Witherspoon

S. Printed 3/22/01--H.

Read the first time January 30, 2001.

            

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

    To whom was referred a Bill (H. 3386) to amend Chapter 40, Title 59, Code of Laws of South Carolina, 1976, relating to charter schools, so as to further provide for the organization, operation, etc., respectfully

REPORT:

    That they have duly and carefully considered the same and recommend that the same do pass with amendment:

    Amend the bill, as and if amended, by striking all after the enacting words and inserting:

    /SECTION    1.    Chapter 40, Title 59 of the 1976 Code, as added by Act 447 of 1996, is amended to read:

    "CHAPTER 40

    Charter Schools

    Section 59-40-10.    This chapter is known and may be cited as the 'South Carolina Charter Schools Act of 1996'.

    Section 59-40-20.    This chapter is enacted to:

    (1)    improve student learning;

    (2)    increase learning opportunities for students;

    (3)    encourage the use of a variety of productive teaching methods;

    (4)    establish new forms of accountability for schools;

    (5)    create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site; and

    (6)    assist South Carolina in reaching academic excellence.

    Section 59-40-30.    In authorizing charter schools, it is the intent of the General Assembly to create a legitimate avenue for parents, teachers, and community members to take responsible risks and create new, innovative, and more flexible ways of educating all children within the public school system. The General Assembly seeks to create an atmosphere in South Carolina's public school systems where research and development in producing different learning opportunities is actively pursued, and where classroom teachers are given the flexibility to innovate and the responsibility to be accountable. As such, the provisions of this chapter should be interpreted liberally to support the findings and goals of this chapter and to advance a renewed commitment by the State of South Carolina to the mission, goals, and diversity of public education.

    Section 59-40-40.    As used in this chapter:

    (1)    A 'charter school' means a public, nonsectarian, nonreligious, nonhome-based, nonprofit corporation forming a school which operates within a public school district, but is accountable to the local school board of trustees of that district, which grants its charter.

    (2)    A charter school:

        (a)    is considered a public school and part of the school district in which it is located for the purposes of state law and the state constitution;

        (b)    is subject to all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, gender, national origin, religion, ancestry, or need for special education services;

        (c)    must be administered and governed by a governing body in a manner agreed to by the charter school applicant and the sponsor, the governing body to be selected in the manner as provided in Section 59-40-50(B)(8)(9);

        (d)    shall not charge tuition or other charges of any kind except as may be allowed by the sponsor.

    (3)        'Applicant' means the person who desires to form a charter school and files the necessary application therefor with the local school board of trustees. The applicant also must be the person who applies to the Secretary of State to organize the charter school as a nonprofit corporation.

    (4)    'Sponsor' means the local school board of trustees established as provided by law, from which the charter school applicant requested its charter, and which granted approval for the charter school's existence.

    (5)    'Certified teacher' means a person currently certified by the State of South Carolina to teach in a public elementary or secondary school or who currently meets the qualification outlined in Sections 59-27-10 and 59-25-115.

    (6)    'Noncertified teacher' means an individual considered appropriately qualified for the subject matter taught, and who has been approved by the charter committee of the school completed at least one year of study at an accredited college or university and meets the qualifications outlined in Section 59-25-115.

    (7)    'Charter committee' means the governing body of a charter school and also shall be formed by the applicant to govern through the application process and until the election of a board of directors is held. After the election, the board of directors of the corporation which must be organized as the governing body and the charter committee is dissolved.

    Section 59-40-50.    (A)    Except as otherwise provided in this chapter, a charter school is exempt from all provisions of law and regulations applicable to a public school, a school board, or a district, although a charter school may elect to comply with one or more of these provisions of law or regulations.

    (B)    A charter school shall must:

        (1)    adhere to the same health, safety, civil rights, and disability rights requirements as are applied to public schools operating in the same school district;

        (2)    meet, but may exceed, the same minimum student attendance requirements as are applied to public schools operating in the same district;

        (3)    adhere to the same financial audits, audit procedures, and audit requirements as are applied to public schools operating in the same school district;

        (4)    be considered a school district for purposes of tort liability under South Carolina law, except that the tort immunity shall does not include acts of intentional or wilful racial discrimination by the governing body or employees of the charter school. Employees of charter schools shall must be relieved of personal liability for any tort or contract related to their school to the same extent that employees of traditional public schools in their school district are relieved;

        (5)    in its discretion hire noncertified teachers in a ratio of up to twenty-five percent of its entire teacher staff; however, if it is a converted charter school, it shall hire in its discretion hire noncertified teachers in a ratio of up to ten percent of its entire teacher staff. However, in either a new or converted charter school, teachers teaching in the core academic areas of English/language arts, mathematics, science, or social studies must be certified in those areas or possess a baccalaureate or graduate degree in the subject he or she is hired to teach. Part-time noncertified teachers shall be are considered pro rata in calculating this percentage based on the hours which they are expected to teach;

        (6)    hire in its discretion administrative staff to oversee the daily operation of the school. Beginning with the 2001-02 school year, at least one of the administrative staff must be certified in the field of school administration;

        (6)(7)    admit all children eligible to attend public school in a school district who are eligible to apply for admission to a charter school operating in that school district, subject to space limitations. However, under no circumstances may a charter school enrollment differ from the racial composition of the school district by more than ten percent. If the number of applications exceeds the capacity of a program, class, grade level, or building, students shall must be accepted by lot, and there is no appeal to the sponsor;

        (7)(8)    not limit or deny admission or show preference in admission decisions to any individual or group of individuals; provided, however, that a charter school may give enrollment priority to a sibling of a pupil already enrolled, and children of a charter school employee, and children of the charter committee, provided their enrollment does not constitute more than twenty-five percent of the enrollment of the charter school;

        (8)(9)    elect its governing body board of directors annually. All employees of the charter school and all parents or guardians of students enrolled in the charter school shall be are eligible to participate in the election. Parents or guardians of a student shall have one vote for each student enrolled in the charter school. At all times, the governing body of the charter school shall include one or more teachers;

        (9)(10)    be subject to the Freedom of Information Act, including the charter school and its governing body.

    (C)(1)    If a charter school denies admission to a student, the student may appeal the denial to the school board of trustees. The decision shall be binding on the student and the charter school.

        (2)    If a charter school suspends or expels a student, the school district shall have in which the student resides has the authority but not the obligation to refuse admission to the student.

        (3)    The sponsor shall have school district in which the charter school is located has no obligation to provide extracurricular activities or access to facilities of the school district for students enrolled in the charter school; however, a charter contract may include participation in agreed upon interscholastic activities at a designated school if agreed upon by the local board of trustees for the district in which the charter school shall be located. Students participating under this agreement must be considered eligible to participate in league events if all other eligibility requirements are met.

    Section 59-40-55.    (A)    Beginning July 1, 2002, an applicant for a charter school shall seek sponsorship of its charter from the State Board of Education rather than from a local board of trustees. This applies for all matters except for school conversions. Beginning July 1, 2002, when an applicant must file the application with the State Board of Education, except in matters of school conversions, all references in this chapter to the local school board of trustees as the approving entity or sponsor for the charter school application and related matters shall be construed to mean the State Board of Education. In addition, beginning July 1, 2002, the appeal provisions in Section 59-40-90 to the State Board of Education in the event of a denial of an application by a local school board of trustees do not apply; provided that appeals of conversion denials by a local board after this date shall be made to the state board as provided in Section 59-40-100(E), (F), and (G). The State Board of Education shall have the authority to approve up to twenty-five charter schools. Should the state reach the maximum of twenty-five charter schools, the State Board of Education may request from the General Assembly an increase to the total.

    (B)    The applicant shall also provide a copy of the application to the local board of the school district in which the proposed charter school shall be located either before or at the same time it files its application with the State Board of Education.

    (C)    The local board shall review the application and may offer suggestions or recommendations to the applicant or the State Board of Education prior to its acting on the application.

    (D)    The State Board of Education shall give due consideration to suggestions or recommendations made by the local school board under subsection (C).

    (E)(1)    The State Board of Education shall appoint a charter school advisory committee consisting of fifteen members, who shall represent the following categories:

            (a)    charter school officials;

            (b)    public school employees, at least one of whom shall be a teacher;

            (c)    business and community leaders;

            (d)    local school boards;

            (e)    members to represent public and charter school parents; and

            (f)        State Board of Education members.

        (2)    Members of the Charter School Advisory Committee shall serve two-year terms. Vacancies shall be filled by appointment in the same manner as original appointment. There shall be three additional members to serve representing the local school board of trustees, public school employees, and community members of the school district in which the charter applicant desires to be located or is located. These members shall serve only during such time as the committee reviews applications or issues relating to their specific school district. The State Superintendent of Education shall designate the chairman of the advisory committee from the appointed membership.

        (3)    The Charter School Advisory Committee shall advise the State Board of Education on policies, procedures, and concerns that relate to the application or operation of charter schools in this state.

    (F)    The State Board of Education shall review recommendations made by the Charter School Advisory Committee and, by majority vote, either approve or deny a charter application within ninety days after the application is received by the board.

    (G)    The state board's action under subsection (F) is final action subject to judicial review.

    Section 59-40-60.    (A)    An approved charter application constitutes an agreement, and the terms shall must be the terms of a contract between the charter school and the sponsor.

    (B)    The contract between the charter school and the sponsor shall reflect all agreements regarding the release of the charter school from local school district policies.

    (C)    A material revision of the terms of the contract between the charter school and the approving board sponsor may be made only with the approval of both parties.

    (D)    Except as provided in subsection (F), an applicant who wishes to form a charter school shall:

        (1)    organize the charter school as a nonprofit corporation under pursuant to the laws of this State;

        (2)    elect form a charter committee for the charter school which includes one or more teachers;

        (3)    submit a written charter school application to the local school board of trustees for the school district in which the charter school will be located.

    (E)    A charter committee shall be is responsible for and have has the power to:

        (1)    submit an application to operate as a charter school, sign a charter school contract, and ensure compliance with all of the requirements for charter schools provided by law;

        (2)    employ and contract with teachers and nonteaching employees, contract for other services, and develop pay scales, performance criteria, and discharge policies for its employees. All teachers whether certified or noncertified must undergo the background checks and other investigations required for certified teachers, as provided by law, before they may teach in the charter school; and

        (3)    decide all other matters related to the operation of the charter school, including budgeting, curriculum, and operating procedures.

    (F)    The charter school application shall be a proposed contract and shall must include:

        (1)    the mission statement of the charter school, which must be consistent with the principles of the General Assembly's purposes as set forth in pursuant to Section 59-40-20;

        (2)    the goals, objectives, and pupil achievement standards to be achieved by the charter school, and a description of the charter school's admission policies and procedures;

        (3)    evidence that an adequate number of parents, teachers, pupils, or any combination thereof of them support the formation of a charter school;

        (4)    a description of the charter school's educational program, pupil achievement standards, and curriculum, which must meet or exceed any content standards adopted by the school district in which the charter school is located and must be designed to enable each pupil to achieve these standards;

        (5)    a description of the charter school's plan for evaluating pupil achievement and progress toward accomplishment of the school's achievement standards in addition to state assessments, the timeline for meeting these standards, and the procedures for taking corrective action in the event if that pupil achievement falls below the standards;

        (6)    evidence that the plan for the charter school is economically sound, a proposed budget for the term of the charter, a description of the manner in which an annual audit of the financial and administrative operations of the charter school, including any services provided by the school district, is to be conducted;

        (7)    a description of the governance and operation of the charter school, including the nature and extent of parental, professional educator, and community involvement in the governance and operation of the charter school;

        (8)    a description of how the charter school plans to ensure that the enrollment of the school is similar to the racial composition of the school district documentation from the United States Department of Education, Office of Civil Rights, or the United States Department of Justice, Civil Rights Division that the establishment of the charter school does not violate any plan or order in effect for the district in which the charter school is planning to locate. Once documentation has been obtained, any substantial changes in student enrollment as determined by the sponsor, requires verification to be provided by either of these two entities that the changes do not constitute a violation. Should notice be given that such changes constitute a violation, enrollment of those students shall constitute a material violation of the charter and shall serve as grounds for revocation of the charter;

        (9)    a description of how the charter school plans to meet the transportation needs of its pupils;

        (10)    a description of the building, facilities, and equipment and how they shall be are obtained;

        (11)    an explanation of the relationship that shall exist exists between the proposed charter school and its employees, including descriptions of evaluation procedures and evidence that the terms and conditions of employment have been addressed with affected employees;

        (12)    a description of a reasonable grievance and termination procedure as required by this chapter, including notice and a hearing before the governing body of the charter school. The application shall must state whether or not the provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at the charter school;

        (13)    a description of student rights and responsibilities, including behavior and discipline standards, and a reasonable hearing procedure, including notice and a hearing before the board of directors of the charter school prior to before expulsion;

        (14)    an assumption of liability by the charter school for the activities of the charter school and an agreement that the charter school will must indemnify and hold harmless the school district or the State Board of Education, as applicable, its servants, agents, and employees, from any and all liability, damage, expense, causes of action, suits, claims, or judgments arising from injury to persons or property or otherwise which arises out of the act, failure to act or negligence of the charter school, its agents and employees, in connection with or arising out of the activity of the charter school; and

        (15)    a description of the types and amounts of insurance coverage to be obtained by the charter school.

    Section 59-40-70.    (A)    Until July 1, 2002, the local school board may establish a schedule for receiving applications from charter schools and shall make a copy of any schedule available to all interested parties upon request. If the local school board finds the charter school application is incomplete or fails to meet the spirit and intent of this chapter, it immediately shall request the necessary information from the charter applicant.

    (B)    After giving reasonable public notice, the local school board shall hold community meetings in the affected areas or the entire school district to obtain information to assist it in their decision to grant a charter school application. The local school board shall rule on the application for a charter school in a public meeting hearing, upon reasonable public notice, within ninety days after receiving the application. If there is no ruling within ninety days, the application is considered approved.

    (C)    A local school board of trustees shall only deny an application if the application does not meet the requirements specified in Section 59-40-50 or 59-40-60, fails to meet the spirit and intent of this chapter, or adversely affects other students in the district. It shall provide, within ten days, a written explanation of the reasons for denial, citing specific provisions of Section 59-40-50 or 59-40-60 that the application violates. This written explanation immediately shall be sent to the charter committee and filed with the State Board of Education.

    (D)    If the local school board of trustees denies a charter school application, the charter applicant may amend its application to conform with the reasons for denial and reapply to the local board, which has thirty days to approve or deny the application, or may appeal the denial to the State Board of Education pursuant to Section 59-40-90.

    (E)    If the local school board approves the application, it becomes the charter school's sponsor and shall sign the approved application which shall constitute a contract with the charter committee of the charter school. A copy of the charter shall be filed with the State Board of Education.

    (F)    The State Board of Education shall perform the duties of local school boards under this section on and after July 1, 2002.

    Section 59-40-80.    (A)    Until July 1, 2002, A local school board may conditionally shall authorize a charter school before if the application is acceptable in all other aspects but the applicant has not secured its space, equipment, facilities, and or personnel if and the applicant indicates verifies that such authority is necessary for it to acquire the space, equipment, facilities, or personnel needed to meet the requirements of the application and of this chapter. Conditional authorization does not imply that final authorization must be given and does not give rise to any equitable or other claims based on reliance, notwithstanding any promise, parole, written, or otherwise, contained in the authorization or acceptance of it, whether preceding or following the conditional authorization.

    (B)    The State Board of Education on or after July 1, 2002, shall be the entity under this section which may authorize conditional charters.

    Section 59-40-90.    (A)    For all applications acted on by a local board before July 1, 2002, the State Board of Education, upon receipt of a notice of appeal or upon its own motion, shall review a decision of any local school board of trustees concerning charter schools in accordance with the provisions of this section.

    (B)    A charter applicant who wishes to appeal an adverse decision shall provide the State Board of Education and the local school board of trustees with a notice of appeal within ten days of the local board's decision.

    (C)    If the notice of appeal or the motion to review by the State Board of Education relates to a local board's decision to deny, refuse to renew, or revoke a charter, the appeal and review process shall be:

        (1)    within thirty days after receipt of the notice of appeal or the making of a motion to review by the State Board of Education and after reasonable public notice, the State Board of Education, at a public hearing which may be held in the district where the proposed charter school is located, shall review the decision of the local school board of trustees and make its findings known. The state board may affirm, reverse, or remand the application for action by the local board in accordance with an order of the state board. If the state board remands the application, it shall do so with written instructions for reconsideration. These instructions shall include specific recommendations concerning the matters requiring reconsideration;

        (2)    within thirty days following the remand of a decision to the local board of trustees and with reasonable public notice, the local school board of trustees, at a public hearing, shall reconsider its decision and make a final decision. No further administrative appeal may be taken from this decision. However, any final decision of the local school board of trustees after remand from the state board or a final decision of the state board may be appealed by any party to the circuit court for the county in which the proposed charter school is or was to have located.

    Section 59-40-100.    (A)    An existing public school may be converted into a charter school if two-thirds of the faculty and instructional staff employed at the school and two-thirds of all voting parents or legal guardians of students enrolled in the school agree to the filing of an application with the local school board of trustees for the conversion and formation of that school into a charter school. All parents or legal guardians of students enrolled in the school must be given the opportunity to vote on the conversion. The application shall must be submitted by the principal of that school or his designee who shall must be deemed considered the applicant. The application shall must include all information required of other applications under pursuant to this chapter. The local school board of trustees shall approve or disapprove this application in the same manner it approves or disapproves other applications.

    (B)    A converted charter school shall offer at least the same grades, or nongraded education appropriate for the same ages and education levels of pupils, as offered by the school immediately before conversion, and also may provide additional grades and further educational offerings.

    (C)    All students enrolled in the school at the time of conversion must be given priority enrollment.

    (C)(D)    Teachers and other employees of a converted school who desire to teach or work at the converted school may do so but shall remain employees of the local school district with the same compensation and benefits including any future increases therein. The converted charter school quarterly shall reimburse the local school district for the compensation and employer contribution benefits paid to or on behalf of these teachers and employees. The provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at a converted school.

    (E)    Local school boards shall have authority over school conversions in their district before and after July 1, 2002. Beginning July 1, 2002, in the event of a denial of an application for a charter school conversion by a local school board of trustees, the applicant may appeal the denial to the State Board of Education. The State Board of Education, upon receipt of a notice of appeal, shall review the decision of the local school board of trustees concerning the application for the charter school conversion in accordance with the provisions of this section.

    (F)    A charter applicant who wishes to appeal an adverse conversion decision shall provide the State Board of Education and the local school board of trustees with a notice of appeal within ten days of the local board's decision.

    (G)    If the notice of appeal relates to a local board's decision to deny, refuse to renew, or revoke a charter for a conversion charter school, the appeal and review process shall be as follows:

        (1)    within thirty days after receipt of the notice of appeal or the making of a motion to review by the State Board of Education and after reasonable public notice, the State Board of Education, at a public hearing which may be held in the district where the proposed charter school is located, shall review the decision of the local school board of trustees and make its findings through an order. The state board by order may affirm the action of the local school board or may reverse the action by the local board in accordance with the order of the state board.

        (2)    Final decision of the state board may be appealed by any party to the circuit court for the county in which the proposed charter school is or was to have located.

    Section 59-40-110.    (A)    A charter may be approved or renewed for a period not to exceed three of five school years; however, the charter may be revoked or not renewed pursuant to subsection (C) of this section.

    (B)    A charter renewal application shall must be submitted to the school's sponsor, and it shall must contain:

        (1)    a report on the progress of the charter school in achieving the goals, objectives, pupil achievement standards, and other terms of the initially approved charter application; and

        (2)    a financial statement that discloses the costs of administration, instruction, and other spending categories for the charter school that is understandable to the general public and that will allow allows comparison of these costs to other schools or other comparable organizations, in a format required by the State Board of Education.

    (C)    A charter may must be revoked or not renewed by the sponsor if it determines that the charter school:

        (1)    committed a material violation of the conditions, standards, or procedures set forth as provided in the charter application;

        (2)    failed to meet or make reasonable progress toward pupil achievement standards identified in the charter application;

        (3)    failed to meet generally accepted standards of fiscal management; or

        (4)    violated any provision of law from which the charter school was not specifically exempted.

    (D)    At least sixty days before not renewing or terminating a charter school, the sponsor shall notify in writing the charter school's governing body of the proposed action in writing. The notification shall state the grounds for the proposed action in reasonable detail. Termination must follow the procedure set forth herein provided for in this section.

    (E)    The charter school's governing body may request in writing a hearing before the sponsor within fourteen days of receiving notice of nonrenewal or termination of the charter. Failure by the school's governing body to make a written request for a hearing within fourteen days shall must be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the sponsor shall give reasonable notice to the school's governing body of the hearing date. The sponsor shall conduct a hearing before taking final action. The sponsor shall take final action to renew or not renew a charter by the last day of classes in the last school year for which the charter school is authorized.

    (F)    Until July 1, 2002, a decision to revoke or not to renew a charter school may be appealed to the state board pursuant to the provisions of Section 59-40-90.

    (G)    Renewal of charter schools granted a charter before July 1, 2002, but subject to renewal on or after July 1, 2002, shall be the responsibility of the State Board of Education, except for renewal of converted charter schools which shall continue to be the responsibility of local school boards. Any such renewals shall not count in the state board's twenty-five school limitation.

    Section 59-40-120.    Upon dissolution of a charter school, its assets may not inure to the benefit of any private person. Any assets obtained through restricted agreements with a donor through awards, grants, or gifts shall must be returned to that entity. All other assets become property of the sponsor.

    Section 59-40-130.    (A)    If an employee of a local school district makes a written request for a leave to be employed at a charter school, the school district shall grant the leave for up to five years as requested by the employee. The school district may require that the request for leave or extension of leave be made by the date under provided for by state law for the return of teachers' contracts. Employees may return to employment with the local school district at its option with the same teaching or administrative contract status as when they left, but without assurance as to the school or supplemental position to which they may be assigned.

    (B)    During a leave, the employee may continue to accrue benefits and credits in the South Carolina Retirement System by paying the employee contributions based upon the annual salary of the employee, and the charter school shall pay the employer contribution. The South Carolina Retirement System may impose reasonable requirements to administer this section.

    (C)    The provisions of this section do not apply to teachers and other employees of a converted school whose employment relation shall be are governed by Section 59-40-100(C) (D).

    Section 59-40-140.    (A)    A sponsor The local school board of trustees for the district in which the charter school is located shall distribute state, county, and school district funds to a charter school as determined by the following formula: The previous year's audited total general fund expenditures including capital outlay and maintenance, but not including expenditures from bonded indebtedness or debt repayment shall must be divided by the previous year's weighted students, then increased by the Education Finance Act inflation factor, pursuant to Section 59-20-40, for the years following the audited expenditures, then multiplied by the weighted students enrolled in the charter school, which will be subject to adjustment for student attendance and state budget allocations based on the same criteria as the local school district. These amounts must be verified by the State Department of Education before the first disbursement of funds. All state and local funding shall be distributed by the local school district to the charter school monthly beginning July first following approval of the charter school application.

    (B)    During the year of the charter school's operation, as received, and to the extent allowed by federal law, a sponsor the local school board of trustees for the district in which the charter school is located shall distribute to the charter school federal funds which are allocated to the local school district on the basis of the number of special characteristics of the students attending the charter school. These amounts must be verified by the State Department of Education before the first disbursement of funds.

    (C)    Notwithstanding subsection (B), the proportionate share of state and federal resources generated by students with disabilities or staff serving them shall must be directed to charter schools. The proportionate share of funds generated under other federal or state categorical aid programs shall must be directed to charter schools serving students eligible for the aid.

    (D)    All services centrally or otherwise provided by the school district, if any, including, but not limited to, food services, custodial services, maintenance, curriculum, media services, libraries, and warehousing are subject to negotiation between a charter school and the school district in which the charter school is located.

    (E)    All awards, grants, or gifts collected by a charter school shall must be retained by the charter school.

    (F)    The governing body of a charter school is authorized to accept gifts, donations, or grants of any kind made to the charter school and to expend or use the gifts, donations, or grants in accordance with the conditions prescribed by the donor. No gifts or donation shall be a requirement required for admission. However, no gift, donation, or grant may be accepted by the governing board if subject to any condition contrary to law or contrary to the terms of the contract between the charter school and the governing body.

    (G)    A charter school shall report to its sponsor and the Department of Education any change to information provided under its application. In addition, a charter school shall report at least annually to its sponsor and the department all information required by the sponsor or the department and including, at a minimum, the number of students enrolled in the charter school, the success of students in achieving the specific educational goals for which the charter school was established, and the identity and certification status of the teaching staff.

    (H)    The sponsor shall provide technical assistance to persons and groups preparing or revising charter applications at no expense.

    (I)    Charter schools may acquire by gift, devise, purchase, lease, sublease, installment purchase agreement, land contract, option, or by any other means, and hold and own in its own name buildings or other property for school purposes, and interests in it which are necessary or convenient to fulfill its purposes.

    (J)    Charter schools are exempt from all state and local taxation, except the sales tax, on their earnings and property. Instruments of conveyance to or from a charter school are exempt from all types of taxation of local or state taxes and transfer fees.

    Section 59-40-145.    A child who resides in a school district other than the one where a charter school is located may attend a charter school outside his district of residence. If the student transfers to a charter school outside his district of residence, the charter school to which the child is transferring shall be eligible for state and federal funding according to the formula defined in Section 59-40-140(A), (B), and (C), as applicable.

    Section 59-40-150.    (A)    The Department of Education shall disseminate information to the public, directly and through sponsors, on how to form and operate a charter school and how to utilize the offerings of a charter school.

    (B)    At least annually, the department shall provide upon request a directory of all charter schools authorized under this chapter with information concerning the educational goals of each charter school, the success of each charter school in meeting its educational goals, and procedures to apply for admission to each charter school.

    (C)    The department shall bear the cost of complying with this section.

    Section 59-40-160.    (A)    The State Board of Education shall compile evaluations of charter schools received from local school boards of trustees. They shall review information regarding the regulations and policies from which charter schools were released to determine if the releases assisted or impeded the charter schools in meeting their stated goals and objectives.

    (B)    The State Board of Education shall review the implementation and effectiveness of this chapter, review comprehensive reports issued by local school boards concerning successes or failures of charter schools, report to the Governor and General Assembly interim results by July 1, 1998, and issue a final report and recommendations to the Governor and General Assembly during the fifth year after the effective date of this chapter.

    (C)    In preparing the report required by this section, the State Board of Education shall compare the academic performance of charter school pupils with the performance of ethnically and economically comparable groups of pupils in other public schools who are enrolled in academically comparable courses.

    Section 59-40-170.    The Department of Education, in conjunction with the Budget and Control Board, shall publish annually make available, upon request, a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The department shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building, and the name of the owner of the building. Nothing in this section requires the owner of a building on the list to sell or lease the building or a portion of the building to a charter school or to any other school or to any other prospective buyer or tenant. However, in the event that a school district declares a building surplus and chooses to sell or lease the building, a charter school's board of directors or a charter committee operating or applying within the district must be given first refusal to purchase or lease the building pursuant to the same terms and conditions it would be offered to the public.

    Section 59-40-180.    The State Board of Education shall promulgate regulations necessary to implement the provisions of this chapter.

    Section 59-40-190.    (A)    The governing body of a charter school may sue and be sued. The governing body may not levy taxes or issue bonds.

    (B)    A sponsor is not liable for any of the debts of the charter school.

    (C)    A sponsor, members of the board of a sponsor, and employees of a sponsor acting in their official capacity are immune from civil or criminal liability with respect to all activities related to a charter school they sponsor. The governing body of a charter school shall obtain at least the amount of and types of insurance required for this purpose.

    Section 59-40-200.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective."

    SECTION    2.    Section 59-40-90 of the 1976 Code is repealed effective July 1, 2002.

    SECTION    3.    This act takes effect upon approval by the Governor./

    Renumber sections to conform.

    Amend totals and title to conform.

RONALD P. TOWNSEND for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

A Cost to the General Fund (See Below)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

    The State Department of Education (SDE) indicates that enactment of these amendments would result in a shift of responsibilities to the State Board of Education from the local school districts concerning charter schools approval, oversight, and monitoring. As a result, the State Board of Education would be responsible for accepting, reviewing and, approving or disapproving charter schools applications. SDE would also be responsible for providing technical assistance and monitoring charter schools.

    SDE indicates it would need 3.5 additional FTEs to include a Director, Education Associate, an Administrative Assistant and a .50 Attorney. Total salary and fringe for these positions is estimated at $224,250. Other operating expenses including office space, supplies, materials and the cost of holding public meeting as mandated under section 59-40-70 is estimated at $66,800. One-time office set-up for 3.5 FTEs is estimated at $12,250 ($3,500 per FTE). Therefore, first year costs are estimated at $303,300, of which $291,050 is recurring.

    SDE indicates it would need additional staff as the number of charter schools increases. The department estimates it will need an additional 1.5 FTEs (1.0 Education Associates and .50 Administrative Specialists) for every twenty-five charter schools established above the current level. Salary and fringe for these 1.50 FTEs is $84,200. Other operating expenses are estimated at 39,800. Total incremental cost for an additional twenty-five charter schools is, therefore, estimated at $124,000. The number of additional charter schools which may be established in the future is unknown. However, SDE indicates there are currently two applications pending.

SPECIAL NOTES:

    This amendment would have no additional impact on the General Fund of the State, or on federal and/or other funds beyond those costs already identified for enactment of this bill.

    Approved By:

    Don Addy

    Office of State Budget

A BILL

TO AMEND CHAPTER 40, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CHARTER SCHOOLS, SO AS TO FURTHER PROVIDE FOR THE ORGANIZATION, OPERATION, AND GOVERNANCE OF CHARTER SCHOOLS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Chapter 40, Title 59 of the 1976 Code, as added by Act 447 of 1996, is amended to read:

"CHAPTER 40

Charter Schools

    Section 59-40-10.    This chapter is known and may be cited as the 'South Carolina Charter Schools Act of 1996'.

    Section 59-40-20.    This chapter is enacted to:

    (1)    improve student learning;

    (2)    increase learning opportunities for students;

    (3)    encourage the use of a variety of productive teaching methods;

    (4)    establish new forms of accountability for schools;

    (5)    create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site; and

    (6)    assist South Carolina in reaching academic excellence.

    Section 59-40-30.    In authorizing charter schools, it is the intent of the General Assembly to create a legitimate avenue for parents, teachers, and community members to take responsible risks and create new, innovative, and more flexible ways of educating all children within the public school system. The General Assembly seeks to create an atmosphere in South Carolina's public school systems where research and development in producing different learning opportunities is actively pursued, and where classroom teachers are given the flexibility to innovate and the responsibility to be accountable. As such, the provisions of this chapter should be interpreted liberally to support the findings and goals of this chapter and to advance a renewed commitment by the State of South Carolina to the mission, goals, and diversity of public education.

    Section 59-40-40.    As used in this chapter:

    (1)    A 'charter school' means a public, nonsectarian, nonreligious, nonhome-based, nonprofit corporation forming a school which operates within a public school district, but is accountable to the local school board of trustees of that district, which grants its charter.

    (2)    A charter school:

        (a)    is considered a public school and part of the school district in which it is located for the purposes of state law and the state constitution;

        (b)    is subject to all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, gender, national origin, religion, ancestry, or need for special education services;

        (c)    must be administered and governed by a governing body in a manner agreed to by the charter school applicant and the sponsor, the governing body to be selected in the manner as provided in Section 59-40-50(B)(89);

        (d)    shall not charge tuition or other charges of any kind except as may be allowed by the sponsor.

    (3)    'Applicant' means the person who desires to form a charter school and files the necessary application therefor with the local school board of trustees State Board of Education. The applicant also must be the person who applies to the Secretary of State to organize the charter school as a nonprofit corporation.

    (4)    'Sponsor' means the local school board of trustees established as provided by law, from which the charter school applicant requested its charter, and State Board of Education which granted grants approval for the charter school's existence.

    (5)    'Certified teacher' means a person currently certified by the State of South Carolina to teach in a public elementary or secondary school or who currently meets the qualification outlined in Sections 59-27-10 and 59-25-115.

    (6)    'Noncertified teacher' means an individual considered appropriately qualified for the subject matter taught, and who has been approved by the charter committee of the school completed at least one year of study at an accredited college or university and meets the qualifications outlined in Section 59-25-115.

    (7)    'Charter committee' means the governing body of a charter school and also shall be formed by the applicant to govern through the application process and until the election of a board of directors is held. After the election, the board of directors of the corporation which must be organized as the governing body and the charter committee is dissolved.

    Section 59-40-50.    (A)    Except as otherwise provided in this chapter, a charter school is exempt from all provisions of law and regulations applicable to a public school, a school board, or a district, although a charter school may elect to comply with one or more of these provisions of law or regulations.

    (B)    A charter school shall must:

        (1)    adhere to the same health, safety, civil rights, and disability rights requirements as are applied to public schools operating in the same school district;

        (2)    meet, but may exceed, the same minimum student attendance requirements as are applied to public schools operating in the same district;

        (3)    adhere to the same financial audits, audit procedures, and audit requirements as are applied to public schools operating in the same school district;

        (4)    be considered a school district for purposes of tort liability under South Carolina law, except that the tort immunity shall does not include acts of intentional or wilful racial discrimination by the governing body or employees of the charter school. Employees of charter schools shall must be relieved of personal liability for any tort or contract related to their school to the same extent that employees of traditional public schools in their school district are relieved;

        (5)    in its discretion hire noncertified teachers in a ratio of up to twenty-five percent of its entire teacher staff; however, if it is a converted charter school, it shall hire in its discretion hire noncertified teachers in a ratio of up to ten percent of its entire teacher staff. However, in either a new or converted charter school, teachers teaching in the core academic areas of English/language arts, mathematics, science, or social studies must be certified in those areas or possess a baccalaureate or graduate degree in the subject he or she is hired to teach. Part-time noncertified teachers shall be are considered pro rata in calculating this percentage based on the hours which they are expected to teach;

        (6)    hire in its discretion administrative staff to oversee the daily operation of the school. At least one of the administrative staff must be certified in the field of school administration;

        (6)(7)    admit all children eligible to attend public school in a school district who are eligible to apply for admission to a charter school operating in that school district, subject to space limitations. However, under no circumstances may a charter school enrollment differ from the racial composition of the school district by more than ten percent. If the number of applications exceeds the capacity of a program, class, grade level, or building, students shall must be accepted by lot, and there is no appeal to the sponsor;

        (7)(8)    not limit or deny admission or show preference in admission decisions to any individual or group of individuals; provided, however, that a charter school may give enrollment priority to a sibling of a pupil already enrolled, and children of a charter school employee, and children of the charter committee, provided their enrollment does not constitute more than twenty-five percent of the enrollment of the charter school;

        (8)(9)    elect its governing body board of directors annually. All employees of the charter school and all parents or guardians of students enrolled in the charter school shall be are eligible to participate in the election. Parents or guardians of a student shall have one vote for each student enrolled in the charter school. At all times, the governing body of the charter school shall include one or more teachers;

        (9)(10)    be subject to the Freedom of Information Act, including the charter school and its governing body.

    (C)(1)    If a charter school denies admission to a student, the student may appeal the denial to the school board of trustees State Board of Education. The decision shall be is binding on the student and the charter school.

        (2)    If a charter school suspends or expels a student, the school district shall have in which the charter school is located has the authority but not the obligation to refuse admission to the student.

        (3)    The sponsor shall have school district in which the charter school is located has no obligation to provide extracurricular activities or access to facilities of the school district for students enrolled in the charter school; however, a charter contract may include participation in agreed upon interscholastic activities at a designated school if agreed upon by the local school district board of trustees for the district in which the charter school shall be located. Students participating under this agreement must be considered eligible to participate in league events if all other eligibility requirements are met.

    Section 59-40-55.    (A)    An applicant for a charter school shall seek sponsorship of its charter from the State Board of Education.

    (B)    The applicant shall also provide a copy of the application to the local school board of the school district in which the proposed charter school shall be located either before or at the same time it files its application with the State Board of Education.

    (C)    The local board shall review the application and may offer suggestions or recommendations to the applicant or the State Board of Education prior to its acting on the application.

    (D)    The State Board of Education shall give due consideration to suggestions or recommendations made by the local school board under subsection (C).

    (E)    The State Board of Education shall review and, by majority vote, either approve or deny the application within ninety days after the application is received by the board.

    (F)    The state board's action under subsection (E) is final action subject to judicial review.

    Section 59-40-60.    (A)    An approved charter application constitutes an agreement, and the terms shall must be the terms of a contract between the charter school and the sponsor.

    (B)    The contract between the charter school and the sponsor shall reflect all agreements regarding the release of the charter school from state and local school district policies.

    (C)    A material revision of the terms of the contract between the charter school and the approving board sponsor may be made only with the approval of both parties.

    (D)    Except as provided in subsection (F), an applicant who wishes to form a charter school shall:

        (1)    organize the charter school as a nonprofit corporation under pursuant to the laws of this State;

        (2)    elect form a charter committee for the charter school which includes one or more teachers;

        (3)    submit a written charter school application to the State Board of Education and the local school board of trustees for the school district in which the charter school will is to be located.

    (E)    A charter committee shall be is responsible for and have has the power to:

        (1)    submit an application to operate as a charter school, sign a charter school contract, and ensure compliance with all of the requirements for charter schools provided by law;

        (2)    employ and contract with teachers and nonteaching employees, contract for other services, and develop pay scales, performance criteria, and discharge policies for its employees. All teachers whether certified or noncertified must undergo the background checks and other investigations required for certified teachers, as provided by law, before they may teach in the charter school; and

        (3)    decide all other matters related to the operation of the charter school, including budgeting, curriculum, and operating procedures.

    (F)    The charter school application shall be a proposed contract and shall include:

        (1)    the mission statement of the charter school, which must be consistent with the principles of the General Assembly's purposes as set forth in pursuant to Section 59-40-20;

        (2)    the goals, objectives, and pupil achievement standards to be achieved by the charter school, and a description of the charter school's admission policies and procedures;

        (3)    evidence that an adequate number of parents, teachers, pupils, or any combination thereof of them support the formation of a charter school;

        (4)    a description of the charter school's educational program, pupil achievement standards, and curriculum, which must meet or exceed any content standards adopted by the school district in which the charter school is located and must be designed to enable each pupil to achieve these standards;

        (5)    a description of the charter school's plan for evaluating pupil achievement and progress toward accomplishment of the school's achievement standards in addition to state assessments, the timeline for meeting these standards, and the procedures for taking corrective action in the event if that pupil achievement falls below the standards;

        (6)    evidence that the plan for the charter school is economically sound, a proposed budget for the term of the charter, a description of the manner in which an annual audit of the financial and administrative operations of the charter school, including any services provided by the school district, is to be conducted;

        (7)    a description of the governance and operation of the charter school, including the nature and extent of parental, professional educator, and community involvement in the governance and operation of the charter school;

        (8)    a description of how the charter school plans to ensure that the enrollment of the school is similar to the racial composition of the school district assurance that the school does not conflict with any school district desegregation plan or order in effect;

        (9)    a description of how the charter school plans to meet the transportation needs of its pupils;

        (10)    a description of the building, facilities, and equipment and how they shall be are obtained;

        (11)    an explanation of the relationship that shall exist exists between the proposed charter school and its employees, including descriptions of evaluation procedures and evidence that the terms and conditions of employment have been addressed with affected employees;

        (12)    a description of a reasonable grievance and termination procedure as required by this chapter, including notice and a hearing before the governing body of the charter school. The application shall state whether or not the provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at the charter school;

        (13)    a description of student rights and responsibilities, including behavior and discipline standards, and a reasonable hearing procedure, including notice and a hearing before the board of directors of the charter school prior to before expulsion;

        (14)    an assumption of liability by the charter school for the activities of the charter school and an agreement that the charter school will must indemnify and hold harmless the school district, its servants, agents, and employees, from any and all liability, damage, expense, causes of action, suits, claims, or judgments arising from injury to persons or property or otherwise which arises out of the act, failure to act or negligence of the charter school, its agents and employees, in connection with or arising out of the activity of the charter school; and

        (15)    a description of the types and amounts of insurance coverage to be obtained by the charter school.

    Section 59-40-70.    (A)    The local school board may State Board of Education must establish a schedule for receiving applications from charter schools and shall make a copy of any schedule available to all interested parties upon request. If the local school state board finds determines the charter school application is incomplete or fails to meet the spirit and intent of this chapter, it immediately shall request the necessary information from the charter applicant.

    (B)    After giving reasonable public notice, the local school state board shall hold community meetings in the affected areas or the entire school district to obtain information to assist it in their decision to grant a charter school application. The local school state board shall rule on the application for a charter school in a public hearing meeting, upon reasonable public notice, within ninety days after receiving the application. If there is no ruling within ninety days, the application is considered approved.

    (C)    A local school board of trustees The state board shall only deny an application only if the application does not meet the requirements specified in Section 59-40-50 or 59-40-60, fails to meet the spirit and intent of this chapter, or adversely affects other students in the district. It shall provide, within ten days, a written explanation of the reasons for denial, citing specific provisions of Section 59-40-50 or 59-40-60 that the application violates. This written explanation immediately shall be sent to the charter committee and filed with the State Board of Education.

    (D)    If the local school board of trustees State Board of Education denies a charter school application, the charter applicant may amend its application to conform with the reasons for denial and reapply to the local state board, which has thirty days to approve or deny the application, or may appeal the denial to the State Board of Education pursuant to Section 59-40-90.

    (E)    If the local school board State Board of Education approves the application, it becomes the charter school's sponsor and shall sign the approved application which shall constitute constitutes a contract with the charter committee of the charter school. A copy of the charter shall be filed with the State Board of Education.

    Section 59-40-80.    A local school The state board may conditionally conditionally shall authorize a charter school before if the application is acceptable in all other aspects but the applicant has not secured its space, equipment, facilities, and or personnel if and the applicant indicates verifies that such authority is necessary for it to acquire the space, equipment, facilities, or personnel needed to meet the requirements of the application and of this chapter. Conditional authorization does not imply that final authorization must be given and does not give rise to any equitable or other claims based on reliance, notwithstanding any promise, parole, written, or otherwise, contained in the authorization or acceptance of it, whether preceding or following the conditional authorization.

    Section 59-40-90.    (A)    The State Board of Education, upon receipt of a notice of appeal or upon its own motion, shall review a decision of any local school board of trustees concerning charter schools in accordance with the provisions of this section.

    (B)    A charter applicant who wishes to appeal an adverse decision shall provide the State Board of Education and the local school board of trustees with a notice of appeal within ten days of the local board's decision.

    (C)    If the notice of appeal or the motion to review by the State Board of Education relates to a local board's decision to deny, refuse to renew, or revoke a charter, the appeal and review process shall be:

        (1)    within thirty days after receipt of the notice of appeal or the making of a motion to review by the State Board of Education and after reasonable public notice, the State Board of Education, at a public hearing which may be held in the district where the proposed charter school is located, shall review the decision of the local school board of trustees and make its findings known. The state board may affirm, reverse, or remand the application for action by the local board in accordance with an order of the state board. If the state board remands the application, it shall do so with written instructions for reconsideration. These instructions shall include specific recommendations concerning the matters requiring reconsideration;

        (2)    within thirty days following the remand of a decision to the local board of trustees and with reasonable public notice, the local school board of trustees, at a public hearing, shall reconsider its decision and make a final decision. No further administrative appeal may be taken from this decision. However, any final decision of the local school board of trustees after remand from the state board or a final decision of the state board may be appealed by any party to the circuit court for the county in which the proposed charter school is or was to have located. (Reserved)

    Section 59-40-100.    (A)    An existing public school may be converted into a charter school if two-thirds of the faculty and instructional staff employed at the school and two-thirds of all voting parents or legal guardians of students enrolled in the school agree to the filing of an application with the State Board of Education and the local school board of trustees for the conversion and formation of that school into a charter school. All parents or legal guardians of students enrolled in the school must be given the opportunity to vote on the conversion. The application shall must be submitted by the principal of that school or his designee who shall must be deemed considered the applicant. The application shall include all information required of other applications under pursuant to this chapter. The local school board of trustees state board shall approve or disapprove this application in the same manner it approves or disapproves other applications.

    (B)    A converted charter school shall offer at least the same grades, or nongraded education appropriate for the same ages and education levels of pupils, as offered by the school immediately before conversion, and also may provide additional grades and further educational offerings.

    (C)    All students enrolled in the school at the time of conversion must be given priority enrollment.

    (C)(D)    Teachers and other employees of a converted school who desire to teach or work at the converted school may do so but shall remain employees of the local school district with the same compensation and benefits including any future increases therein. The converted charter school quarterly shall reimburse the local school district for the compensation and employer contribution benefits paid to or on behalf of these teachers and employees. The provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at a converted school.

    Section 59-40-110.    (A)    A charter may be approved or renewed for a period not to exceed three of five school years; however, the charter may be revoked or not renewed pursuant to subsection (C) of this section.

    (B)    A charter renewal application shall must be submitted to the school's sponsor, and it shall contain:

        (1)    a report on the progress of the charter school in achieving the goals, objectives, pupil achievement standards, and other terms of the initially approved charter application; and

        (2)    a financial statement that discloses the costs of administration, instruction, and other spending categories for the charter school that is understandable to the general public and that will allow allows comparison of these costs to other schools or other comparable organizations, in a format required by the State Board of Education.

    (C)    A charter may must be revoked or not renewed by the sponsor if it determines that the charter school:

        (1)    committed a material violation of the conditions, standards, or procedures set forth as provided in the charter application;

        (2)    failed to meet or make reasonable progress toward pupil achievement standards identified in the charter application;

        (3)    failed to meet generally accepted standards of fiscal management; or

        (4)    violated any provision of law from which the charter school was not specifically exempted.

    (D)    At least sixty days before not renewing or terminating a charter school, the sponsor shall notify in writing the charter school's governing body of the proposed action in writing. The notification shall state the grounds for the proposed action in reasonable detail. Termination must follow the procedure set forth herein provided for in this section.

    (E)    The charter school's governing body may request in writing a hearing before the sponsor within fourteen days of receiving notice of nonrenewal or termination of the charter. Failure by the school's governing body to make a written request for a hearing within fourteen days shall must be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the sponsor shall give reasonable notice to the school's governing body of the hearing date. The sponsor shall conduct a hearing before taking final action. The sponsor shall take final action to renew or not renew a charter by the last day of classes in the last school year for which the charter school is authorized.

    (F)    A decision to revoke or not to renew a charter school may be appealed to the state board pursuant to the provisions of Section 59-40-90.

    Section 59-40-120.    Upon dissolution of a charter school, its assets may not inure to the benefit of any private person. Any assets obtained through restricted agreements with a donor through awards, grants, or gifts shall must be returned to that entity. All other assets become property of the sponsor.

    Section 59-40-130.    (A)    If an employee of a local school district makes a written request for a leave to be employed at a charter school, the school district shall grant the leave for up to five years as requested by the employee. The school district may require that the request for leave or extension of leave be made by the date under provided for by state law for the return of teachers' contracts. Employees may return to employment with the local school district at its option with the same teaching or administrative contract status as when they left, but without assurance as to the school or supplemental position to which they may be assigned.

    (B)    During a leave, the employee may continue to accrue benefits and credits in the South Carolina Retirement System by paying the employee contributions based upon the annual salary of the employee, and the charter school shall pay the employer contribution. The South Carolina Retirement System may impose reasonable requirements to administer this section.

    (C)    The provisions of this section do not apply to teachers and other employees of a converted school whose employment relation shall be are governed by Section 59-40-100(C).

    Section 59-40-140.    (A)    A sponsor The local school board of trustees for the district in which the charter school is located shall distribute state, county, and school district funds to a charter school as determined by the following formula: The previous year's audited total general fund expenditures including capital outlay and maintenance, but not including expenditures from bonded indebtedness or debt repayment shall must be divided by the previous year's weighted students, then increased by the Education Finance Act inflation factor, pursuant to Section 59-20-40, for the years following the audited expenditures, then multiplied by the weighted students enrolled in the charter school, which will be subject to adjustment for student attendance and state budget allocations based on the same criteria as the local school district. These amounts must be verified by the State Department of Education before the first disbursement of funds. All state and local funding shall be distributed by the local school district to the charter school monthly beginning July first following approval of the charter school application.

    (B)    During the year of the charter school's operation, as received, and to the extent allowed by federal law, a sponsor the local school board of trustees for the district in which the charter school is located shall distribute to the charter school federal funds which are allocated to the local school district on the basis of the number of special characteristics of the students attending the charter school. These amounts must be verified by the State Department of Education before the first disbursement of funds.

    (C)    Notwithstanding subsection (B), the proportionate share of state and federal resources generated by students with disabilities or staff serving them shall must be directed to charter schools. The proportionate share of funds generated under other federal or state categorical aid programs shall be directed to charter schools serving students eligible for the aid.

    (D)    All services centrally or otherwise provided by the school district, if any, including, but not limited to, food services, custodial services, maintenance, curriculum, media services, libraries, and warehousing are subject to negotiation between a charter school and the school district in which the charter school is located.

    (E)    All awards, grants, or gifts collected by a charter school shall must be retained by the charter school.

    (F)    The governing body of a charter school is authorized to accept gifts, donations, or grants of any kind made to the charter school and to expend or use the gifts, donations, or grants in accordance with the conditions prescribed by the donor. No gifts or donation shall be a requirement required for admission. However, no gift, donation, or grant may be accepted by the governing board if subject to any condition contrary to law or contrary to the terms of the contract between the charter school and the governing body.

    (G)    A charter school shall report to its sponsor and the Department the State Board of Education any change to information provided under its application. In addition, a charter school shall report at least annually to its sponsor and the department the board all information required by the sponsor or the department board and including, at a minimum, the number of students enrolled in the charter school, the success of students in achieving the specific educational goals for which the charter school was established, and the identity and certification status of the teaching staff.

    (H)    The sponsor shall provide technical assistance to persons and groups preparing or revising charter applications at no expense.

    (I)    Charter schools may acquire by gift, devise, purchase, lease, sublease, installment purchase agreement, land contract, option, or by any other means, and hold and own in its own name buildings or other property for school purposes, and interests in it which are necessary or convenient to fulfill its purposes.

    (J)    Charter schools are exempt from all state and local taxation, except the sales tax, on their earnings and property. Instruments of conveyance to or from a charter school are exempt from all types of taxation of local or state taxes and transfer fees.

    Section 59-40-145.    A child who resides in a school district other than the one where a charter school is located may attend a charter school outside his district of residence. If the student transfers to a charter school outside his district of residence the charter school to which the child is transferring shall be eligible for state and federal funding according to the formula defined in Section 59-40-140(A), (B), and (C), as applicable.

    Section 59-40-150.    (A)    The Department of Education shall disseminate information to the public, directly and through sponsors, on how to form and operate a charter school and how to utilize the offerings of a charter school.

    (B)    At least annually, the department shall provide upon request a directory of all charter schools authorized under this chapter with information concerning the educational goals of each charter school, the success of each charter school in meeting its educational goals, and procedures to apply for admission to each charter school.

    (C)    The department shall bear the cost of complying with this section.

    Section 59-40-160.    (A)    The State Board of Education shall compile evaluations of charter schools received from local school boards of trustees. They shall review information regarding the regulations and policies from which charter schools were released to determine if the releases assisted or impeded the charter schools in meeting their stated goals and objectives.

    (B)    The State Board of Education shall review the implementation and effectiveness of this chapter, review comprehensive reports issued by local school boards concerning successes or failures of charter schools, report to the Governor and General Assembly interim results by July 1, 1998, and issue a final report and recommendations to the Governor and General Assembly during the fifth year after the effective date of this chapter.

    (C)    In preparing the report required by this section, the State Board of Education shall compare the academic performance of charter school pupils with the performance of ethnically and economically comparable groups of pupils in other public schools who are enrolled in academically comparable courses.

    Section 59-40-170.    The Department of Education, in conjunction with the Budget and Control Board, shall publish annually make available, upon request, a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The department shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building, and the name of the owner of the building. Nothing in this section requires the owner of a building on the list to sell or lease the building or a portion of the building to a charter school or to any other school or to any other prospective buyer or tenant. However, in the event that a school district declares a building surplus and chooses to sell or lease the building, a charter school's board of directors or a charter committee operating or applying within the district must be given first refusal to purchase or lease the building pursuant to the same terms and conditions it would be offered to the public.

    Section 59-40-180.    The State Board of Education shall promulgate regulations necessary to implement the provisions of this chapter.

    Section 59-40-190.    (A)    The governing body of a charter school may sue and be sued. The governing body may not levy taxes or issue bonds.

    (B)    A sponsor is not liable for any of the debts of the charter school.

    (C)    A sponsor, members of the board of a sponsor, and employees of a sponsor acting in their official capacity are immune from civil or criminal liability with respect to all activities related to a charter school they sponsor. The governing body of a charter school shall obtain at least the amount of and types of insurance required for this purpose.

    Section 59-40-200. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective."

SECTION    2.    This act takes effect upon approval by the Governor.

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