S 1031 Session 111 (1995-1996)
S 1031 General Bill, By Wilson
Similar(H 4443)
A Bill to amend Title 59, Code of Laws of South Carolina, 1976, relating to
education, by adding Chapter 40 so as to enact the South Carolina Charter
School Act which provides for the manner in which a charter school shall be
formed, funded, regulated, and governed, and to establish a Charter Schools
Review Committee to review the implementation and effectiveness of this Act.
01/18/96 Senate Introduced and read first time SJ-3
01/18/96 Senate Referred to Committee on Education SJ-3
A BILL
TO AMEND TITLE 59, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO EDUCATION, BY ADDING
CHAPTER 40 SO AS TO ENACT THE SOUTH CAROLINA
CHARTER SCHOOL ACT WHICH PROVIDES FOR THE
MANNER IN WHICH A CHARTER SCHOOL SHALL BE
FORMED, FUNDED, REGULATED, AND GOVERNED, AND
TO ESTABLISH A CHARTER SCHOOLS REVIEW
COMMITTEE TO REVIEW THE IMPLEMENTATION AND
EFFECTIVENESS OF THIS ACT.
Whereas, the General Assembly desires to provide an opportunity
for the organization and operation of flexible, innovative, and
substantially deregulated public schools as part of its effort to
reform and improve the state's educational system; and
Whereas, it is believed that charter schools are a way to provide
flexible, innovative, and substantially deregulated public schools
with full accountability for student achievement; and
Whereas, the General Assembly will not allow greater flexibility
and deregulation to result in segregation of students by race, gender,
ethnic background, income, disability, or religious belief, whether in
public charter schools or in public noncharter schools; and
Whereas, the General Assembly desires to foster cooperation among
parents, teachers, local school districts, and charter schools. Now,
therefore,
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 40
South Carolina Charter Schools Act
Section 59-40-10. This act may be cited as the `South Carolina
Charter Schools Act'.
Section 59-40-20. It is the purpose of this act to:
(1) improve student learning;
(2) increase learning opportunities for students;
(3) encourage the use of different and innovative 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 the national education
goals.
Section 59-40-30. (A) `Charter school' means any
publicly-financed educational institution which provides a
comprehensive program of instruction for at least one grade or age
group from five through eighteen years of age, is managed by an
independent board of directors, competes for voluntary student
enrollment, has been relieved of certain provisions of law, rules,
and regulations otherwise applicable to public schools in this State,
and is organized and operates under the provisions of this act.
(B) `State board' means the State Board of Education.
(C) `Department' means the State Department of Education.
(D) `Teacher' means a person certificated by the State of South
Carolina to teach in public elementary or secondary schools.
(E) `Sponsor' means the local school district established
pursuant to Section 59-17-10 after the local school board approves a
charter school application.
(F) `Local school board' or `school board' means the board of
trustees of a school district established pursuant to Section
59-19-10.
Section 59-40-40. (A) Except as provided in Section
59-40-40(B), an applicant who wishes to form a charter school
shall:
(1) organize the charter school as a nonprofit corporation or a
for-profit corporation under the laws of this State;
(2) appoint an initial board of directors for the charter school
which includes one or more teachers;
(3) submit a written application to the school board in the
district in which the charter school will be located, at a time
determined by the school board.
(B) A public school may convert into a charter school only if
the public school's principal, two-thirds of all teachers and
instructional staff employed at the public school, two-thirds of all
parents or guardians of students enrolled in the public school, and a
majority of all members of the school board for the school district
in which the public school is located file an affidavit with the state
board stating their intent to authorize, sponsor, and form a charter
school. This affidavit shall constitute an application and shall
include all information required by other applicants under Section
59-40-40(A) and (C). The state board shall approve this
application, except for good cause shown for rejection of the
application.
(C) A charter school application shall take the form of a
proposed contract and contain at least:
(1) a description of the charter school's educational program
that carries out one or more of the purposes in Section 59-40-20
and is nonsectarian in form and content;
(2) a description of the specific educational goals students are
to achieve under Section 59-40-100 and the techniques by which
the charter school will determine if students have achieved these
educational goals;
(3) a description of the charter school's admission policies
and procedures, consistent with Section 59-40-90;
(4) a description of the charter school's management and
administrative policies and procedures;
(5) a description of the charter school's requirements and
procedures for program and financial audits, consistent with Section
59-40-70(B)(5);
(6) provide annual reports that trace dollars to the classroom
and compare that data to productivity and student performance and
success similar to current public school filings;
(7) an assumption of liability by the charter school for the
activities of the charter school and an agreement that the charter
school will 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;
(8) a description of the types and amounts of insurance
coverage to be obtained by the charter school;
(9) the term of the proposed contract for operation of the
charter school, which must be at least one year and not more than
three years;
(10) the names and addresses of the members of the initial
board of directors of the charter school;
(11) a description of the charter school's building, facilities,
and equipment and how they shall be obtained;
(12) a description of a reasonable grievance and termination
procedure for employees, including notice and a hearing before the
board of directors of the charter school; and
(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 expulsion.
Section 59-40-50. (A) Except as provided in Section
59-40-40(B), the local school board of the district in which the
charter school is proposed shall review a charter school's
application, and approve or deny that application, within ninety
calendar days after its submission. The local school board may
deny a charter school application only if the application does not
meet the requirements of this act or if the charter school will have
an adverse effect on the racial or ethnic composition of noncharter
public schools.
(B) If the local school board approves a charter school
application, the local school district shall become the charter
school's sponsor and the approved application shall constitute a
written contract between the charter school and the local school
district. The contract shall contain the terms stated in the
application. A copy of the contract shall be filed with the
department.
(C) The local school board may approve the charter school
application subject to the agreement of the applicant to
modifications specified by the school board. If the applicant does
not agree to the school board's modifications, the application is
deemed denied as of the date of the applicant's rejection of the
school board's modifications.
(D) If the local school board denies a charter school application,
it shall give a written explanation of the reasons for denial, citing
the specific provisions of this act that the application violates. This
written denial must be sent to the applicant and filed with the
department.
(E) If the local school board to which application has been made
has not approved or denied a charter school application within
ninety calendar days after a complete application is submitted to the
local school board, the charter school application must be
considered approved. The local school board shall become the
charter school's sponsor and shall execute a written contract with
the board of directors of the charter school, as provided in Section
59-40-50(B).
(F) If the local school board denies a charter school application,
the applicant may appeal the denial to the state board but has no
right to take any legal action against the school board or the school
district other than the appeal to the state board provided in this act.
The appeal procedure is as follows:
(1) The applicant shall submit a notice of appeal in writing to
the State Superintendent within ten days after receipt of the written
denial by the local school board, and the applicant must notify the
local school board of the appeal;
(2) The district superintendent shall send to the State
Superintendent a copy of the written denial of the application, the
minutes of the meeting held by the local school board to consider
the charter school application, and any other relevant materials;
(3) The appeal must be referred to the state board or its
designee. The applicant and the local board must be notified of the
date on which the state board shall consider the appeal. The parties
may submit written briefs at least five working days before the date
set for consideration of the appeal. The state board shall invite the
parties to make an oral presentation. The chairperson of the state
board shall notify the parties in writing of the final decision of the
state board. The state board may affirm, reverse, or remand the
application for action by the local school board in accordance with
the order of the state board;
(4) The order of the state board may be appealed by any
party to the circuit court for the county in which the proposed
charter school was to have been located, pursuant to the
Administrative Procedures Act.
Section 59-40-60. (A) A sponsor shall distribute state, county,
and school district funds of the sponsor 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 be divided by the previous
year's weighted students, then increased by the Education Finance
Act (EFA) inflation factor for the years following the audited
expenditures, then multiplied by the weighted students enrolled in
the charter school, which shall be subject to adjustment for student
attendance and state budget allocations based on the same criteria as
the local school district. All state and local funding must be
distributed by the local school district to the charter school monthly
beginning the first day of July 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 shall
distribute to the charter school federal funds which are allocated to
the local school district on the basis of the number or special
characteristics of the students attending the charter school.
Section 59-40-70. (A) Except as provided in this act, a charter
school is exempt from all provisions of law, rules, and regulations
applicable to a public school, a school board, or a school district,
although a charter school may elect to comply with one or more
provisions of these provisions of law, rules, and regulations.
(B) A charter school shall meet the following requirements.
(1) A charter school shall adhere to the same health and
safety requirements as are applied to public schools operating in the
same school district. A charter school is exempt from applicable
building codes except as to matters related to health and safety;
(2) A charter school shall meet, but may exceed, the same
minimum student attendance requirements as are applied to public
schools operating in the same school district;
(3) The primary focus of a charter school must be to provide
a comprehensive program of instruction for at least one grade or
age group from five through eighteen years of age. Instruction may
be provided to people younger than five years and older than
eighteen years of age;
(4) A charter school shall not charge tuition fees or other
charges of any kind, except as allowed by the sponsor and those
charges allowed by Section 59-40-90(E);
(5) A charter school shall adhere to the same financial audits,
audit procedures, and audit requirements as are applied to public
schools operating in the same school district;
(6) A charter school shall be considered a school district for
purposes of tort liability under South Carolina law, except that tort
immunity and the school district's duty to defend shall not include
acts of intentional or wilful racial discrimination by the board of
directors or employees of the charter school;
(7) A charter school shall adhere to the student admission
requirements specified in Section 59-40-90;
(8) A charter school shall elect its board of directors
annually. All employees of the charter school and all parents or
guardians of students enrolled in the charter school shall be 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 board of directors of the charter school shall include one
or more teachers;
(9) Gifts or grants to a charter school must be treated in the
same manner as gifts or grants to a noncharter school of the
sponsor. A charter school shall appeal a sponsor's denial of a gift or
grant to the state board under the procedure of Section 59-40-50(F);
(10) A charter school and the board of directors of a charter
school are subject to the Freedom of Information Act; and
(11) At least fifty-one percent of the teaching staff of the
charter school must be certificated and teach in the teacher's area of
certification.
(C) Charges of racial discrimination against a charter school
shall be filed with the local district. Within ten days after receiving
the charge, the district, through the superintendent, shall initiate an
investigation of the charges. If the superintendent concludes that
the charter school engaged in intentional or wilful racial
discrimination, the superintendent shall notify the charter school of
the findings and recommend to the local school board termination
of the charter. Within thirty days after the superintendent's
recommendation, the local school board shall hold a hearing on the
termination of the charter. Within ten days after the close of the
hearing, the local board shall provide the charter school with its
written decision. A decision to terminate a charter shall become
effective at the end of the then current school year. The charter
school may appeal termination to the state board under the
procedure of Section 59-40-50(F). All costs of a proceeding under
this section, including attorneys' fees, shall be paid by the charter
school.
Section 59-40-80. A charter school's board of directors shall be
responsible for and have 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 in this act;
(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; and
(3) decide all other matters related to the operation of the
charter school, including budgeting, curriculum, and operating
procedures.
Section 59-40-90. (A) Except as provided in this section, all
children eligible to attend public school in a school district shall be
eligible to apply for admission to a charter school operating in that
school district.
(B) Except as provided in this section, a charter school may not
limit or deny admission or show preference in admission decisions
to any individual or group of individuals.
(C) A charter school may limit admission or show preference in
admission decisions to:
(1) students within a specific age group or grade level;
(2) students who have a specific affinity for the school's
teaching methods, the school's learning philosophy, or a subject
such as mathematics, science, fine arts, performing arts, or a foreign
language;
(3) students who live in the school district in which the
charter school is located;
(4) students who currently have a sibling or parent enrolled
or employed in the charter school; or
(5) any other criteria approved by the sponsor, consistent with
state law.
(D) A charter school shall enroll an eligible student who submits
a timely application, unless the number of applications exceeds the
capacity of a program, class, grade level, or building. In this case,
students shall be accepted by lot and there is no appeal to the
sponsor.
(E) If a charter school enrolls a student who resides in a school
district other than the district in which the charter school is located,
then the charter school's sponsor may charge that student tuition up
to an amount equal to the per student amount distributed to the
charter school.
(F) If a charter school denies admission to a student, the student
may appeal the denial to the sponsor. The decision of the sponsor
shall be binding on the student and the charter school.
(G) If a charter school suspends or expels a student, the sponsor
or the local school district of the student's residence, if different
from the sponsor, shall have the authority but not the obligation to
refuse admission to the student.
(H) The sponsor, or the local school district of the student's
residence if different from the sponsor, shall have no obligation to
provide extracurricular activities or access to facilities of the school
district for students enrolled in the charter school.
Section 59-40-100. A charter school must design its programs to
meet the educational goals contained in its contract with the
sponsor. These educational goals must meet or exceed those
adopted by the state board for all public schools.
Section 59-40-110. Transportation for students enrolled at a
charter school shall be provided in the same manner as for other
students of the district.
Section 59-40-120. A charter school may lease real or personal
property from its sponsor, from a public school in the same school
district, or from any other public or private organization.
Section 59-40-130. A sponsor may conditionally authorize a
charter school before the applicant has secured its space, equipment,
facilities, and personnel if the applicant indicates such authority is
necessary for it to meet the requirements of this act. Conditional
authorization does not give rise to any equitable or other claims
based on reliance, notwithstanding any promise, oral, written, or
otherwise, contained in the authorization or acceptance of it,
whether preceding or following the conditional authorization.
Section 59-40-140. A charter school shall report to its sponsor
and the department any change to information provided under
Section 59-40-40. 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 least, 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 under Section 59-40-40(C)(2), and the identity and
certification status of the teaching staff.
Section 59-40-150. (A) The department 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 act 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) 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 any number of
years requested by the employee, and must extend the leave at the
employee's request. The school district may require that the request
for leave or extension of leave be made by the date provided by law
for the return of teachers' contracts. Employees returning to
employment with the local school district shall be entitled to
employment 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) Employment at a charter school counts as creditable service
under the South Carolina Retirement System and as creditable
service for other applicable provisions of law.
(D) If a charter school terminates an employee, the action by the
charter school shall bind the sponsor or the local district employing
the employee before the leave, if different from the sponsor.
Section 59-40-170. (A) The duration of the contract between a
charter school and its sponsor shall be for the term contained in the
contract. The sponsor may refuse to review a contract at the end of
the term for any grounds listed in subsection (C) of this section. A
sponsor may unilaterally terminate a contract during the term of the
contract for any grounds listed in subsection (C) of this section. At
least sixty days before not renewing or terminating a contract, the
sponsor shall notify the charter school's board of directors of the
proposed action in writing. The notification shall state the grounds
for the proposed action in reasonable detail. Termination under
Section 59-40-70(C) must follow the procedure set forth therein.
(B) The charter school's board of directors may request in
writing a hearing before the sponsor within fourteen days of
receiving notice of nonrenewal or termination of the contract.
Failure by the school's board of directors to make a written request
for a hearing within fourteen days shall 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
board of directors 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 contract by the last day of classes in
the last school year for which the charter school is authorized.
(C) A contract may be terminated or not renewed upon any of
the following grounds:
(1) failure to meet the educational goals for student
performance contained in the contract;
(2) failure to meet generally accepted standards of fiscal
management; or
(3) violations of law, including not meeting the terms of this
act at the time of renewal or termination.
(D) Termination or nonrenewal may be appealed to the State
Board following the procedure of Section 59-40-50(F).
(E) If a contract is terminated or not renewed, the charter school
shall be dissolved according to the applicable provisions of law and
students who attended the charter school may enroll in the public
school to which they would have been otherwise assigned or may
apply for admission to another charter school for which they are
eligible. Application deadlines do not apply under these
circumstances.
(F) Upon dissolution of a charter school, unless otherwise
agreed, all of its property shall become property of the sponsor and
its employees shall be treated as if the leave of absence ended under
Section 59-40-160 as of the beginning of the following school year.
Section 59-40-180. (A) The board of directors of a charter
school may sue and be sued. The board 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 board of directors of a charter
school shall obtain at least the amount of and types of insurance
required by the contract, according to Section 59-40-40(C).
Section 59-40-190. (A) There is created a Charter Schools
Review Committee to review the implementation and effectiveness
of this act. The committee shall consist of nine members, three of
whom shall be members of the House of Representatives appointed
by the Chairman of the House Education and Public Works
Committee, three of whom shall be members of the Senate
appointed by the Chairman of the Senate Education Committee, and
three members shall be appointed by the Governor. The three
members appointed by the Governor must be from the private
sector, one of whom as designated by the Governor shall serve as
the chairman. Members appointed by the Governor shall serve until
the committee is dissolved as provided in subsection (C). Members
of the House of Representatives and the Senate serving on the
committee shall serve at the pleasure of their appointing authority.
Vacancies shall be filled in the manner of original appointment.
Members of the committee shall receive mileage, subsistence, and
per diem as provided by law for members of state boards,
commissions, and committees to be paid from the approved
accounts of the House of Representatives, the Senate, or the
Governor as applicable.
(B) A school board shall issue a comprehensive report to the
Charter Schools Review Committee concerning the successes or
failures, or both, of a charter school within its jurisdiction and with
recommendations, at the end of the term of the contract for
operation of that charter school.
(C) The committee shall be appointed within one year of the
effective date of this act. It shall report to the General Assembly as
needed with interim results. However, the committee shall issue a
final report and recommendations during the fifth year after the
effective date of this act to the General Assembly on the success
and performance of charter schools at which time the committee
shall be dissolved."
SECTION 2. This act takes effect upon approval by the
Governor.
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