S 1243 Session 111 (1995-1996)
S 1243 General Bill, By Setzler, Giese and Lander
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
Schools Act of 1996" which provides for the manner in which a charter school
shall be formed, funded, regulated, and governed.
03/12/96 Senate Introduced and read first time SJ-7
03/12/96 Senate Referred to Committee on Education SJ-7
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 SCHOOLS ACT OF 1996" WHICH
PROVIDES FOR THE MANNER IN WHICH A CHARTER
SCHOOL SHALL BE FORMED, FUNDED, REGULATED, AND
GOVERNED.
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. The General Assembly hereby makes the
following findings and declarations:
(1) it desires to provide all children with schools that reflect
high expectations and to create conditions in all schools where these
expectations can be met;
(2) the strengthening of the performance of elementary and
secondary public school pupils can be achieved by education
decisions made by those who know the students best and who are
responsible for implementing the decisions;
(3) parents and educators have a right and a responsibility to
participate in the education institutions which serve them; and
(4) different pupils learn differently and public school programs
should be designed to fit the needs of individual pupils, and there
are educators, citizens, and parents in South Carolina who are
willing and able to offer innovative programs, educational
techniques, and environments.
SECTION 2. Title 59 of the 1976 Code is amended by adding:
"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 provided
in Section 59-40-50(B)(8);
(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 certified by the State of
South Carolina to teach in a public elementary or secondary school.
(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.
(7) `Charter committee' means the governing body of a charter
school and also shall be the board of directors of the corporation
which must be organized.
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:
(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 not include acts of intentional or wilful racial discrimination
by the governing body or employees of the charter school.
Employees of charter schools shall 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. Part-time
noncertified teachers shall be considered pro rata in calculating this
percentage based on the hours which they are expected to teach;
(6) 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.
If the number of applications exceeds the capacity of a program,
class, grade level, or building, students shall be accepted by lot, and
there is no appeal to the sponsor;
(7) 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;
(8) elect its governing body 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 governing
body of the charter school shall include one or more teachers;
(9) 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 the authority but not the obligation to
refuse admission to the student.
(3) 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 59-40-60. (A) An approved charter application
constitutes an agreement, and the terms shall 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 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 the laws of this State;
(2) elect 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 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 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 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
schools admission policies and procedures;
(3) evidence that an adequate number of parents, teachers,
pupils, or any combination thereof 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 towards 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 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 meet the
transportation needs of its pupils;
(9) a description of the building, facilities, and equipment and
how they shall be obtained;
(10) an explanation of the relationship that shall exist 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;
(11) 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;
(12) 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;
(13) 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; and
(14) 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 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 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 or fails to meet the spirit
and intent of this chapter. 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.
Section 59-40-80. A local school board 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
chapter. Conditional authorization does not give rise to any
equitable or other claims based on reliance, notwithstanding any
promise, parol, 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.
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
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. The application shall be submitted by the principal of that
school or his designee who shall be deemed the applicant. The
application shall include all information required of other
applications under 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) 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.
Section 59-40-110. (A) A charter may be approved or renewed
for a period not to exceed three school years.
(B) A charter renewal application shall 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 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 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 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 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.
(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 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 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, and may extend the leave for up to
five years at the employee's request. The school district may
require that the request for leave or extension of leave be made by
the date under 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 governed by Section 59-40-100(C).
Section 59-40-140. (A) A sponsor 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 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. 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 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.
(C) Notwithstanding subsection (B), the proportionate share of
state and federal resources generated by students with disabilities or
staff serving them shall 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.
(E) All awards, grants, or gifts collected by a charter school
shall 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 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 is
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 59-40-150. (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 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.
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 3. This act takes effect July 1, 1996.
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