Indicates Matter Stricken

Indicates New Matter

 

Amended

April 23, 2026

 

S. 454

 

Introduced by Senator Hembree

 

S. Printed 4/23/26--H.

Read the first time February 11, 2026

 

________

 

 

 

 

 

 

 

 

A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-40-40, RELATING TO DEFINITIONS PERTAINING TO CHARTER SCHOOLS, SO AS TO CHANGE REFERENCES FROM "SPONSOR" TO "AUTHORIZER" AND TO PROVIDE OTHER DEFINITIONS; BY AMENDING SECTION 59-40-50, RELATING TO EXEMPTIONS, SO AS TO REQUIRE A CHARTER SCHOOL TO POST THEIR ANNUAL AUDIT ON THEIR WEBSITE AND TO NOTIFY AND PROVIDE A COPY OF ANY EDUCATION MANAGEMENT CONTRACTS TO THE AUTHORIZER; BY AMENDING SECTION 59-40-55, RELATING TO AUTHORIZER POWERS AND DUTIES AND THE RETENTION OF FUNDS, SO AS TO REQUIRE THE AUTHORIZER TO ADOPT AND IMPLEMENT POLICIES, PROCEDURES, AND PRACTICES THAT ENSURE GOOD GOVERNANCE AND ACCOUNTABILITY; BY AMENDING SECTION 59-40-60, RELATING TO CHARTER APPLICATIONS AND COMMITTEES, SO AS TO EXPAND THE CHARTER SCHOOL APPLICATION TO INCLUDE ANY PROPOSED CHARTER OR EDUCATION MANAGEMENT CONTRACTS CONTEMPLATED BY THE CHARTER SCHOOL; BY AMENDING SECTION 59-40-70, RELATING TO APPLICATION REQUIREMENTS AND PROCEDURES, SO AS TO SET A TIME FRAME TO HOLD A PUBLIC HEARING ON THE APPLICATION FOR A CHARTER SCHOOL; BY AMENDING SECTION 59-40-75, RELATING TO THE REMOVAL OF AN AUTHORIZER OR MEMBER OF A DISTRICT OR GOVERNING BOARD, SO AS TO REQUIRE THE GOVERNOR TO VACATE THE SEAT OF A MEMBER OF AN AUTHORIZER OR CHARTER SCHOOL GOVERNING BOARD WHO IS INDICTED FOR A CRIME; AND TO ALLOW THE GOVERNOR TO REMOVE A MEMBER FOR CHRONIC UNEXCUSED ABSENTEEISM, MEDICAL INCOMPETENCY, OR MEDICAL INCAPACITY; BY AMENDING SECTION 59-40-90, RELATING TO APPEALS TO THE ADMINISTRATIVE LAW COURT, SO AS TO ALLOW AN APPEAL FOR ANY FINAL DECISION MADE PURSUANT TO THIS CHAPTER BE MADE TO THE ADMINISTRATIVE LAW COURT; BY AMENDING SECTION 59-40-115, RELATING TO TERMINATION OF A CONTRACT WITH AN AUTHORIZER, SO AS TO ALLOW A CHARTER SCHOOL TO TERMINATE ITS CHARTER AND CONTRACT WITH AN AUTHORIZER UNDER CERTAIN CONDITIONS; BY AMENDING SECTION 59-40-150, RELATING TO THE DUTIES OF THE DEPARTMENT OF EDUCATION, SO AS TO ESTABLISH THE DUTIES OF THE DEPARTMENT OF EDUCATION TO SERVE AS THE STATE EDUCATION AGENCY FOR EACH AUTHORIZER AND ANNUALLY REVIEW THE POLICIES, PROCEDURES, AND PERFORMANCE OF EACH AUTHORIZER FOR COMPLIANCE; AND BY AMENDING SECTION 59-40-180, RELATING TO REGULATIONS AND GUIDELINES, SO AS TO CLARIFY THAT GUIDELINES WILL BE APPLICABLE TO NEW AUTHORIZERS AND CHARTER SCHOOLS.

    Amend Title To Conform

 

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

 

SECTION 1.  Section 59-40-40 of the S.C. Code is amended to read:

 

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

    (1) A "charter school" means a public, nonreligious, nonhome-based, nonprofit corporation forming a school that operates by sponsorship authorization of a public school district, the South Carolina Public Charter School District, or a public or independent institution of higher learning, but is accountable to the board of trustees, or in the case of technical colleges, the area commission, of the sponsor authorizer which grants its charter. Nothing in this chapter prohibits charter schools from offering virtual services pursuant to state law and subsequent regulations defining virtual schools.

    (2) A charter school:

       (a) is, for purposes of state law and the state constitution, considered a public school and part of the South Carolina Public Charter School District, the local school district in which it is located, or is sponsored authorized by aan approved public or independent institution of higher learning;

       (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; however, an applicant may seek to form a single gender charter school without regard to the gender makeup of that proposed charter school;

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

       (d) may not charge tuition or other charges pursuant to Section 59-19-90(8) except as may be allowed by the sponsor authorizer and is comparable to the charges of the local school district in which the charter school is located;

       (e) is subject to the same fixed asset inventory requirements as are traditional public schools.

    (3) "Applicant" means the person who or nonprofit corporate entity that desires to form a charter school and files the necessary application with the South Carolina Public Charter School District Board of Trustees, the local school board of trustees in which the charter school is to be located, or the board of trustees or area commission of a public or independent institution of higher learning. The applicant also must be the person who or the nonprofit corporate entity that applies to the Secretary of State to organize the charter school as a nonprofit corporation.

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

    (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 qualifications 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 completed at least one year of study at an accredited college or university and meets the qualifications outlined in Section 59-25-115. An individual whose educator certificate has been suspended or revoked shall not be employed as a noncertified teacher during the term of suspension or revocation.

    (7) "Charter committee" means the governing body of a charter school formed by the applicant to govern through the application process and until the election of a board of directors is held. After the charter application is approved by the authorizerelection, the board of directors of the corporation must be organized as the governing body and the charter committee isshall be dissolved within six months of the school opening for students to attend. The election of the board of directors must be held by November first of the year in which the school opens for students. Failure to hold the election by this date shall result in an immediate revocation of the charter.

    (8) "Local school district" means any school district in the State except the South Carolina Public Charter School District and does not include special school districts.

    (9) "Charter school contract" means a fixed term, renewable contract between a charter school and a sponsoran authorizer that outlines the roles, powers, responsibilities, and performance expectations for each party to the contract.

    (10) "Resident public school" means the school, other than a charter school, within whose attendance boundaries the charter school student's custodial parent or legal guardian resides.

    (11) "Management organization" means a corporation, business, organization, or other entity, whether conducted for profit or not-for-profit, with whom the governing body of a charter school contracts to operate, manage, or oversee the operation, management, or provision and implementation of educational services and programs to the charter school. This includes a corporation, business, organization, or other entity that directly employs the administrator or any of the educational personnel, or both.

    (12) "Replication" means the approval of a new charter school application based on the mission, academic model, instructional program, and operational structure of an existing charter school.

    (13) "Virtual charter school" means a charter school whereby students are taught primarily online methods, provided, however, that at least twenty-five percent of the instruction in core areas must be provided pursuant to South Carolina Regulation 43-601. Any student enrolled in a virtual charter school shall be a resident of a South Carolina school district as provided for in Sections 59-63-30, 59-63-31, 59-63-32, and 59-63-33.

    (14) "Higher education authorizer" means a public institution of higher learning as defined in Section 59-103-5 or an independent institution of higher learning as defined in Section 59-113-50 that has been approved to act as an authorizer through an application developed by the South Carolina Board of Education and promulgated by regulation. A higher education authorizer must be in good standing with its accrediting body and must choose to authorize schools.

    (15) "Statewide authorizer" means the South Carolina Public Charter School District and higher education authorizers whose geographical boundaries for purposes of student enrollment are those of the state of South Carolina.

    (16) "Local Authorizer" means the local school board of trustees in which the charter school is to be located and which authorizes such charter school as provided by law.

 

SECTION 2.  Section 59-40-50(B) of the S.C. Code is amended to read:

 

    (B) A charter school must:

       (1) must adhere to the same health, safety, civil rights, and disability rights requirements as are applied to public schools operating in the same school district or, in the case of the South Carolina Public Charter School District or a public or independent institution of higher learning sponsorauthorizer, the local school district in which the charter school is located;

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

       (3) must adhere to the same financial laws and regulations, financial audits, audit procedures, and audit and procurement requirements as are applied to public schools, obtain approval for a charter amendment from its authorizer prior to entering any agreement to borrow money secured by school property, funds, or other assets, and post its annual budget, to include its operating budget, and audit on its website with other financial information required to be posted by law or regulation. A charter school's financial statement audit is due to its authorizer no earlier than November first or the next business day, unless the department grants an extension or establishes a grace period for the authorizer;

       (4) must maintain a transaction register that includes a complete record of all funds expended over one hundred dollars, from whatever source, for whatever purpose. The register:

           (a) must be prominently posted on the district's internet website and made available for public viewing and downloading;

           (b) must be accompanied by a complete explanation of any codes or acronyms used to identify a payee or an expenditure;

           (c) must be searchable and updated at least once a month;

           (d) must include for each expenditure:

               (i) the transaction amount;

               (ii) the name of the payee; and

               (iii) a statement providing a detailed description of the expenditure; and

           (e) must not include:

               (i) an entry for salary, wages, or other compensation paid to individual employees; and

               (ii) any information that can be used to identify an individual employee;

    (5) must maintain on its internet website a copy of each monthly statement for all of the credit cards maintained by the school and by a management organization contract by the school, including credit cards issued to its officers or employees for official use. The credit card number on each statement must be redacted prior to posting on the internet website. Each credit card statement must be posted not later than the thirtieth day after the first date that any portion of the balance due as shown on the statement is paid; however, no personal credit cards may be used by an employee or committee member for purchase related directly to the school or its operations;

       (4)(6) must be considered a school district for purposes of tort liability under South Carolina law, except that the tort immunity does not include acts of intentional or wilful racial discrimination by the governing body or employees of the charter school. Employees of charter schools 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 or, in the case of the South Carolina Public Charter School District or a public or independent institution of higher learning sponsorauthorizer, the local school district in which the charter school is located are relieved;

       (5)(7) may, 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 noncertified teachers in a ratio of up to ten percent of its entire teacher staff. However, in either a new or converted charter school, a teacher teaching in the core academic areas as defined by the federal law No Child Left Behind law 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 are considered pro rata in calculating this percentage based on the hours which they are expected to teach. Any teacher, regardless of certification status, who resigns, is suspended, or is terminated amid allegations of professional misconduct must be reported to the department by the sponsor;

       (8) must perform Department of Social Services Child Abuse and Neglect Registry criminal history record checks as applicable to all public schools for all school personnel, governing board of directors, volunteers, and other individuals who regularly come into contact with students, as defined in Section 59-19-117;

       (6)(9) must hire or contract for, in its discretion, administrative staff, including a school leader, to oversee the daily operation of the school. The principal or school leader, regardless of title, At least one of the administrative staff must be certified or experienced in the field of school administration and must be physically present onsite each day the school is in operation. A substitute certified administrator must be physically present on-site in the event the principal or school leader is absent for any reason;

       (7)(10) must admit all children eligible to attend public school to a charter school, subject to space limitations, except in the case of an application to create a single gender charter school, or, in the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, with an explicit mission and purpose of specializing in providing evidence-based, specific educational or behavioral health services for educationally disadvantaged students with a demonstrated need for such services. Demonstrated need may include, but not be limited to, as documented in an Individualized Education Program (IEP), 504 plan, a medical or psychological diagnosis, or documentation that the student is not meeting grade-specific standards in literacy as documented by the student's school. For purposes of this section, educationally disadvantaged students are those students as defined by the Every Student Succeeds Act (ESSA) or other subsequent federal law. Evidence-based services must include, but are not limited to, services to students who need evidence-based, specialized, multi-sensory instruction in literacy or other services included in the student's IEP or 504 plan. This specialized mission and purpose must be defined in the school's charter and charter contract as approved by the sponsor authorizer and as allowed by ESSA or other federal law. However, it is required that the racial composition of the charter school enrollment reflect that of the local school district in which the charter school is located or that of the targeted student population of the local school district that the charter school proposes to serve, to be defined for the purposes of this chapter as differing by no more than twenty percent from that population. This requirement is also subject to the provisions of Section 59-40-70(D). If the number of applications exceeds the capacity of a program, class, grade level, or building, students must be accepted by lot, and there is no appeal to the sponsorauthorizer. In the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, that is serving educationally disadvantaged students, if the number of applicants exceeds the capacity of a program, class, grade level, or building, students may be accepted by weighted lot as allowed by ESSA or other federal law with mission-aligned preference and the process clearly described in their charter and charter contract approved by their sponsorauthorizer, and there is no appeal to the sponsorauthorizer;

       (8)(11) not limit or deny admission or show preference in admission decisions to any individual or group of individuals, except in the case of an application to create a single gender charter school, in which case gender may be the only reason to show preference or deny admission to the school;  a charter school may give enrollment priority to a sibling of a pupil currently enrolled and attending, or who, within the last six years, attended the school for at least one complete academic year. A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year. An enrollment preference for returning students excludes those students from entering into a lottery. A charter school also may give priority to children of a charter school employee and children of the charter committee, if priority enrollment for children of employees and of the charter committee does not constitute more than twenty percent of the enrollment of the charter school. In the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, mission-aligned preference may be given to educationally disadvantaged students as specifically defined in their charter and charter contract approved by their sponsor and as allowed by ESSA. In addition, a charter school located on a federal military installation or base where the appropriate authorities have made buildings, facilities, and grounds on the installation or base available for use by the charter school as its principal location also may give enrollment priority to otherwise eligible students who are dependents of military personnel living in military housing on the base or installation or who are currently stationed at the base or installation not to exceed fifty percent of the total enrollment of the charter school. This priority is in addition to the other priorities provided by this item, but no child may be counted more than once for purposes of determining the percentage makeup of each priority;(a) must not limit or deny admission or show preference in admission decisions to any individual or group of individuals, except in the case of an application to create a single gender charter school, in which case gender may be the only reason to show preference or deny admission to the school or as allowed by subitems (b) and (c).

           (b) must give preference to students enrolled in the public charter school the previous year.

           (c) may give enrollment preference to any of the following by enrolling the student without requiring participation in a lottery when a lottery is otherwise required under this chapter:

               (i) a sibling of a pupil currently enrolled and attending, or who, within the last six years, attended the school for at least one complete academic year;

               (ii) a child or children of any employee of the charter school or member of the charter school committee, provided that the number of students eligible for this preference may not exceed twenty percent of the school's total enrollment;

               (iii) dependents of active-duty members of the military residing or stationed in this State, limited to not more than ten percent of the school's total enrollment except for schools meeting the provisions of subitem (f). Dependents of active-duty military members are subject to the enrollment provisions of Section 59-63-33;

           (d) may enroll a student eligible for multiple enrollment preferences based on only one of the preferences, at the charter school's discretion. A student eligible for an enrollment preference that is denied the enrollment preference because the charter school has exceeded the number of enrollment preferences allowed must be permitted to participate in any enrollment lottery held by the school for the year the enrollment preference is denied;

           (e) may, in the case of a charter school designated as an Alternative Education Campus, pursuant to Section 59-40-111, give mission-aligned preference to educationally disadvantaged students as specifically defined in their charter and charter contract approved by their authorizer and as allowed by ESSA;

           (f) may, if a charter school is located on a federal military installation or base where the appropriate authorities have made buildings, facilities, and grounds on the installation or base available for use by the charter school as its principal location, give enrollment priority to otherwise eligible students who are dependents of military personnel living in military housing on the base or installation or who are currently stationed at the base or installation not to exceed fifty percent of the total enrollment of the charter school. This priority is in addition to the other priorities provided by this item, but no child may be counted more than once for purposes of determining the percentage makeup of each priority;

       (9)(12) must consist of a board of directors of seven or more individuals with the exact number specified in or fixed in accordance with the bylaws. Members of a board of directors may serve a term of two years, and may serve additional terms. The charter school's bylaws shall require staggered terms for board members. A choice of the membership of the boardAn election for two or more board positions must take place every two years. Fifty percent of the members of the board as specified by the bylaws must be individuals who have a background in K-12 education or in business, and the bylaws of the charter school also must provide for the manner of selection of these members. In addition, at least fifty percent of the members of the board as specified by the bylaws must be elected by the employees and the parents or guardians of students enrolled in the charter schoolschools governed by the board. Parents or guardians of each student shall designate one parent or guardian to cast votes on behalf of the student for each election. The parent or guardian shall have one vote per open board seat in the election for each student enrolled in the charter school. Employees of the charter school shall have one vote for each open board seat. Employees who also have at least one child enrolled in the school retain their one vote and may also be designated to cast votes on their children's behalf in the same manner as other parents. All members must be residents of the State of South Carolina. A person who has been convicted of a felony must not be elected to a board of directors. If the board of directors consists of an odd number of members, the extra member must be an individual who has a background in K-12 education or in business. Notice of the election must be posted on its website at least thirty days in advance of the election;

       (10)(13) must be subject to the Freedom of Information Act, including the charter school and its governing body. A board of directors of a charter school shall notify its sponsor authorizer of any regular meeting of the board at least forty-eight hours prior to the date on which it is to occur;

       (11)(14) must be subject to the ethics and government accountability requirements for public members and public employees as contained in Chapter 13, Title 8. For purposes of this subsection, members of the charter school boards are considered public members and employees of the charter school board, including employees of management organizations assigned to charter schools, are considered public employees. The charter contract in accordance with Section 59-40-60(B) must contain a statement of assurance of ethical compliance on behalf of the school.;

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

       (16) in the case of schools authorized by a local authorizer, must collect, maintain, and make available to the local authorizer the following information concerning the operation and management of the charter school:

           (a) a list of currently serving members of the board of directors of the charter school, including name, address, and term of office; copies of policies approved by the board of directors; board meeting agendas and minutes; a copy of the audited financial statements of the charter school; and a copy of the budget approved by the board of directors and of any amendments to the budget;

           (b) annual financial reports submitted to the local authorizer;

           (c) curriculum documents and materials;

           (d) proof of insurance as required by the contract;

           (e) copies of facility leases or deeds, or both, and of any equipment leases;

           (f) all health and safety reports and certificates, including those relating to fire safety, environmental matters, asbestos inspection, boiler inspection, and food service; and

           (g) any management letters issued as part of the annual financial audit;

    (17) must, for charter schools authorized by a local authorizer, require the school to submit its proposed budget to the local district board of trustees of the local authorizer for approval; and

    (18) must prominently post on the school's website and make available for public viewing and downloading the most recent versions of the school's bylaws and board policies, including, but not limited to, to the policies and procedures required pursuant to Sections 59-40-60(F)(13) and (14).

 

SECTION 3.  Section 59-40-55 of the S.C. Code is amended to read:

 

    Section 59-40-55.  (A) In order to promote the quality of charter school outcomes and oversight, the charter school sponsor shall adopt national industry standards of quality charter schools and shall authorize and implement practices State Department of Education shall establish and implement policies, procedures, and practices to ensure quality authorizing, good governance, and accountability that clearly define the roles and responsibilities of the authorizer consistent with state lawconsistent with those standards.

    (B) A charter school sponsor authorizer shall:

       (1) approve charter applications pursuant to Section 59-40-70 that meet the requirements specified in Sections 59-40-50 and 59-40-60 except that higher education authorizers may choose only to approve those charter applications that meet the requirements of this chapter and align with the mission and strategic plan of the higher education authorizer and the institution of higher education. A local authorizer is not required to approve a charter application;

       (2) decline to approve charter applications according to Section 59-40-70(C) or an application submitted by a charter school whose applicant is also a member of the State Board of Education, the Education Oversight Committee, or a local school district board of trustees;

       (3) negotiate and execute sound charter contracts with each approved charter school including, but not limited to, specific outcome-based expectations concerning academics, operations, governance, and finance based on the school's charter;

       (4) monitor, in accordance with charter contract terms, the performance and legal/fiscal compliance of charter schools with charter-specific state law, Department of Education policies, procedures, and practices and policies adopted by the authorizer's governing board including, but not limited to, include collecting and analyzing data to support ongoing evaluation according to the charter contract;

       (5) conduct or require oversight activities that enable the sponsor authorizer to fulfill its responsibilities outlined in this chapter, including conducting appropriate inquiries and investigations, only if those activities are consistent with the intent of this chapter, adhere to the terms of the charter contact, and do not unduly inhibit the autonomy granted to public charter schools;

       (6) collect, in accordance with Section 59-40-140(H), an annual report from each of its sponsored authorized charter schools and submit the reports to the Department of Educationthe report on the academic and financial performance of each of its authorized charter schools and authorizers performance to the State Board of Education in format proscribed by the department before January thirtieth;

       (7) notify the charter school in writing of perceived problemsnoncompliance if itswith the school's performance or legal compliance appears to be unsatisfactorycharter or contract and provide reasonable opportunity for the school to remedy the problem, unless the problem warrants revocation and revocation timeframes apply. ;The school shall have up to thirty calendar days to respond, in writing, describing how the issue will be remedied. If the problem warrants revocation, then the authorizer shall notify the school in writing and provide a copy to the State Superintendent of Education at the same time the school is notified and revocation timeframes apply;

       (8) develop a corrective action plan and take appropriate corrective actions or exercise sanctions short of revocation in response to apparent deficiencies as documented pursuant to item (7) in charter school performance or legal compliance. If the corrective action plan or corrective actions relate to special education services, then the authorizer shall provide a copy of the letter denoting the deficiencies and the corrective action plan to the Department of Education. These actions or sanctions may include requiring a the school to develop and execute a the corrective action plan within a specified timeframe;

       (9) determine whether each charter contract merits renewal, nonrenewal, or revocation;

       (10) provide to parents and the general public information about charter schools authorized by the sponsor authorizer as an enrollment option within the district in which the charter school is located to the same extent and through the same means as the district in which the charter school is located provides and publicizes information about all public schools in the district. A charter school shall notify its sponsor authorizer of its enrollment procedures and dates of its enrollment period no less than sixty days before the first day of its enrollment period;  and

       (11) permanently close any charter school at the conclusion of the school year after receiving the lowest performance level rating as defined by the state and federal accountability system systems for three consecutive years in accordance with Section 59-40-110(E); however, the first year of a school's operation shall be excluded for purposes of this section.;

       (12) within thirty days of submission or execution to the authorizer, post in a prominent location on its website all charter school applications, renewal applications, and any management organization contracts associated with the charter schools;

       (13) post in a prominent location on its website their budget as an authorizer, including revenues, source of revenue, and expenditures. If the authorizer has charged fees to a charter school for services, then those fees must be listed by individual school;

       (14) review and notify the charter schools of any noncompliance related to management organization contracts;

       (15) be subject to the ethics and government accountability requirements for public members and public employees in Chapter 13, Title 8. For purposes of this subsection, members of the authorizer's governing boards are considered public members, and employees of the authorizer's governing board are considered public employees;

       (16) be subject to Section 11-35-5340 of the South Carolina Consolidated Procurement Code or implements a procurement code which, in the written opinion of the Division of Procurement Services of the State Fiscal Accountability Authority, is substantially similar to the provisions and purposes of the South Carolina Consolidated Procurement Code;

       (17) be subject to audits by the Legislative Audit Council. For the purpose of carrying out its audit duties, the Legislative Audit Council shall have access to the records and facilities of each authorizer during the authorizer's normal operating hours, and each authorizer must produce records requested by the Legislative Audit Council. The provisions contained in Chapter 15, Title 2, related to the Legislative Audit Council shall apply to audits conducted pursuant to this section;

       (18) review and monitor the implementation of enrollment procedures submitted by the charter schools pursuant to Section 59-40-55(B)(10) to ensure compliance with the admission requirements established pursuant to Sections 59-40-50(B)(10) and (11);

       (19) be subject to the South Carolina Freedom of Information Act; and,

       (20) not receive commissions, rebates, or financial incentives related to insurance products purchased by charter schools.

    (C)(1) The South Carolina Public Charter School District may retain no more than two percent of the total state appropriations for each charter school it authorizes to cover the costs for overseeing its charter schools.A statewide authorizer shall only retain or contract to retain two percent of the total state allocation distributed to charter schools, as appropriated annually through the state appropriations process, for each charter school it authorizes for the purpose of carrying out its oversight and administrative responsibilities. With approval by the Department of Education, an authorizer may offer additional services related to charter school operations to charter schools it sponsorsauthorizes, however the charter school shall be under no obligation to purchase those services from the authorizer. The department must approve the rates charged by the authorizer for any services the authorizer offers to charter schools and may revoke the authorizer's authority to offer or charge fees for such services at any time. A charter school may not be penalized or have its charter revoked based upon their failure to purchase offered services from the authorizer. A charter authorizer offering such services shall post a list of those services and the cost of the service in a prominent place on the authorizer's website. The sponsor's administrative fee amount retained by the authorizer does not include costs incurred in delivering services that a charter school may purchase at its discretion from the sponsorauthorizer. The sponsor's fee is not applicable to federal money or grants received by the charter school. The amount authorizers may claim for administration of federal funded programs or grants is subject to the terms and conditions of the federal program or grant. The sponsor authorizer shall use its funding provided pursuant to this section exclusively for the purpose of fulfilling sponsor authorizer obligations in accordance with this chapter.

       (2) (a) If the Department of Education determines an authorizer has violated this provision, a written notice of the alleged violation shall be provided to the authorizer. The authorizer shall have thirty calendar days from receipt of the notice to submit documentation and any other relevant evidence demonstrating the authorizer is in compliance with this provision. Upon a determination by the Department of Education that a violation has occurred, the State Superintendent of Education may:

               (i) order reimbursement of improperly charged amounts to the charter schools;

               (ii) revoke the authorizer's authority to charter or authorize schools, and all schools may apply to transfer to a different authorizer using to the process established by the Department of Education pursuant to Section 59-40-55(D) or

               (iii) order other appropriate relief.

           (b) The authorizer may file an appeal with the State Board of Education within thirty days of the decision by the State Superintendent of Education to revoke an authorizer's authority to authorize schools. After an appeal is filed, the State Board of Education must hold a public hearing regarding the appeal within fourteen days. All appeals from the State Board of Education's decisions to terminate a public or independent institution of higher learning authorizer registration shall be made to the Administrative Law Court. The authorizer shall not demand or withhold any unspent appropriated funds held by or owed to a charter school that is transferring under the provisions of this section and may not charge fees associated with the school moving to another authorizer.

           (c) A charter school authorizer, or an entity affiliated with, or owned or created by, an authorizer, is prohibited from:

              (i) contracting with schools or otherwise selling services to schools over which the authorizer has direct oversight, such as financial services;

              (ii) using its authority or position as authorizer to influence, induce, or attempt to influence or induce, a charter school to contract for additional services provided by the authorizer:

              (iii) using authority or position as an authorizer to unfairly compete with any private entity or enterprise offering similar services to charter schools;

              (iv) using state funds, including any funds retained under Section 59-40-55(C)(1) to fund, market, or promote any additional contracted services offered to charter schools in exchange for a fee;

              (v) contracting with a charter school to provide services necessary to remedy any alleged noncompliance with the terms of the charter contract or applicable law;

              (vi) utilizing state funds, including any funds retained under Section 59-40-55(C)(1), for any purpose not directly related to fulfilling its obligations as an authorizer under this Chapter and pursuant to any other state law or regulation;

              (vii) receiving direct or indirect compensation from any contract entered into by a school it authorizes; however, nothing in this section shall prohibit a local authorizer from leasing a building, or providing food service or transportation, to schools it sponsors; and

               (viii) conditioning approval, renewal, or evaluation outcomes on the purchase of any goods or services.

           (d) Violation by an authorizer of any of the prohibitions in Section 55-49-55(C)(1) or (C)(3) shall constitute an unfair and deceptive trade practice under the South Carolina Unfair and Deceptive Trade Practices Act in Chapter 5, Article 1, of Title 39. The Department of Education shall terminate approval of any authorizer that it found by either the department or a court to have violated the requirements of this section or the requirements of Chapter 13 of Title 8.

    (D) The board of trustees of a local authorizer shall:

           (a) review the proposed annual budget submitted by the charter school for approval or amendment based on the financial needs of the school; and

           (b) review the annual audited financial statements and all other financial records of the  schools it authorizes.

    (E) The Department of Education shall conduct annual reviews aligned to the current state school district accreditation timeline, to monitor and evaluate the performance of all charter school authorizers, informed by the annual report provided for in this section. The review process must include an examination of how authorizers meet standards and practices, an evaluation of each authorizer's charter school's performance, and review of each authorizer's record of renewal, revocation, and authorization decisions. In addition, the department shall establish a process for receiving and reviewing complaints regarding charter schools and authorizers. These reports shall be considered in its annual reviews. The Department of Education shall issue notices of concern, in writing, to the authorizer that must include descriptions of all performance concerns and establish a timeline by which the authorizer must correct any issues or deficiencies. In the case of a public or independent institution of higher learning authorizer repeatedly failing to meet one or more of the requirements contained in subsection (B) over a period of three years, the Department of Education may terminate a charter school authorizer's registration. The State Board of Education shall allow a public or independent institution of higher learning authorizer the opportunity to have a hearing before registration termination. All appeals from the State Board of Education's decisions to terminate a public or independent institution of higher learning authorizer registration shall be made to the Administrative Law Court. If a public or independent institution of higher learning authorizer's registration is terminated, the Department of Education shall develop a streamlined transfer application for charter schools to apply to a new authorizer for the remainder of the charter school's contract term; however, if no new authorizer agrees to the transfer request, the charter school must close. The Department of Education shall create an authorizer closure protocol to be fully implemented within 180 days of the closure of the public or independent institution of higher learning affiliated with an authorizer, a timeline, and application process for the transfer of any charter schools by a new authorizer. Operating charter schools shall not be required to resubmit a full application unless the new authorizer specifically identifies an area of concern. New charter schools under contract may be required to submit a full application by the new authorizer.

 

SECTION 4.  Section 59-40-60(F) of the S.C. Code is amended to read:

 

    (F) The charter school application, based on an application template with compliance guidelines developed by the State Department of Education, must include:

       (1) an executive summary, not to exceed two pages;

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

       (3) the measurable goals, objectives, and academic performance standards to be achieved by the charter school, and a description of the charter school's admission policies and procedures;

       (4) evidence that an adequate number of parents or legal guardians with students eligible to attend the proposed school pursuant to Section 59-40-50 support the formation of a charter school and justify the projected per pupil allocation in the application budget;

       (5) a description of the charter school's educational program, including how it will meet or exceed the academic performance standards and expectations, including academic standards adopted by the State Board of Education and how the instructional design, learning environment, class size and structure, school calendar, scheduling flexibility, use of virtual instruction, curriculum, and teaching methods enable each pupil to achieve these standards;

       (6) 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 if that pupil achievement falls below the standards;

       (7) evidence that the plan for the charter school is economically sound, a proposed budget to start the charter school and one for the entire contractual 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 sponsorauthorizer, is to be conducted;

       (8) a description of the governance and operation of the charter school, including a detailed school start-up plan, resumes and background information on the charter committee members, the capacity and experience of the school leadership and management team, any involvement with the replication of existing successful public charter schools, any proposed management company or educational service provider responsibilities, any proposed management organization, and the nature and extent of parental, professional educator, and community involvement in the governance and operation of the charter school;

       (9) a description of how the charter school plans to ensure that the enrollment of the school is similar to the racial composition of the local school district in which the charter school is to be located or the targeted student population of the local school district that the charter school proposes to serve and provide assurance that the school does not conflict with any school district desegregation plan or order in effect for the school district in which the charter school is to be locatedconduct community outreach to ensure that all members of the community are aware of the school and have an opportunity to enroll;

       (10) a description of how the charter school plans to meet the transportation needs of its pupilstransportation services to be provided, if any;

       (11) a description of the school location by address, TMS number, or, at a minimum, zip code, the school building, other school facilities, and equipment and how they shall be obtained;

       (12) an explanation of the employment relationship that shall exist between the proposed charter school or its management organization and its employeesthe administration, faculty, and staff of the charter school, including a staffing chart aligned with the budget and student enrollment projections, and descriptions of evaluation procedures, and evidence that the terms and conditions of employment have been addressed with affected employees;

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

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

       (15) an assumption of liability by the charter school for the activities of the charter school and an agreement that the charter school must indemnify and hold harmless the sponsorauthorizer, 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, employment practices, or negligence of the charter school, its agents and employees, in connection with or arising out of the activity of the charter school;  and

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

       (17) a copy of any proposed management organization contracts contemplated by the charter school. The contract must include a term sheet that sets forth the length of the contract, the roles and responsibilities of the governing board of the charter school, the staff of the charter school, the staff of the management organization, the scope of services and resources to be provided by the management organization, the performance evaluation measures and timelines, the compensation structure, including clear identification of all fees to be paid to the management organization, the methods of contract oversight and enforcement, the conditions of renewal and termination of the contract and assurances that the governing board of the charter school, at all times, maintains independent fiduciary oversight and authority over the school budget and ultimate responsibility for the school's performance. The contract shall not allow profit-sharing with the authorizer or any affiliated entity;

       (18) evidence the applicant has filed the appropriate documents to be organized as a nonprofit corporation under South Carolina law;

        (19) a statement of assurances for the applicant to execute affirming the applicant understands and agrees to perform the essential responsibilities and obligations of a charter school; and

        (20) in the case of a proposed charter school using a virtual learning model as its primary mode of delivering instruction, the application must include information regarding the following requirements to be performed by the governing board:

           (a) The requirement that the governing board offer a student orientation and notify the parent or guardian of each enrolled student of the requirement to participate, and that each student complete the orientation before participating in any instructional activity.

           (b) The requirement that the governing board adopt a policy addressing a student's failure to participate in instructional activities. The policy must provide that a student is subject to consequences, which may include disenrollment, if both of the following conditions are met:

              (i) after the student's parent or guardian receives written notice, the student fails to comply with the policy within a reasonable period specified by the school; and

              (ii) intervention strategies outlined in the policy fail to result in the student's consistent participation in instructional activities.

           (c) The requirement that the policy adopted pursuant to subitem (b) provide that, if a student is disenrolled pursuant to this policy, the school shall:

               (i) notify the parent or guardian in writing of the obligation to enroll the student in a school in accordance with state law;

               (ii) initiate the transfer of the student to the district of residence;

               (iii) request that the parent or guardian provide the name of the school, and, if applicable, the district in which the student will enroll; and

               (iv) coordinate directly with the receiving school or district to transfer student records and any other documentation necessary to support appropriate educational placement.

           (d) For purposes of this item, "instructional activities" means classroom-based or non-classroom-based activities that a student is expected to complete, participate in, or attend during a school day, including, but not limited to:

               (i) logging into online curriculum or programs;

               (ii) completing offline activities;

               (iii) completing assignments associated with a program, curriculum, or course;

               (iv) testing;

               (v) participating in face-to-face meetings with school staff or service providers;

               (vi) participating in telephone or video conferences with school staff or service providers; and

               (vii) engaging in other documented communications with school staff or service providers related to curriculum or programs.

    (H) Prior to November 1, 2026, the Department of Education shall develop a separate application for replication to encourage creation of additional charter schools that fulfill the purpose and mission of this chapter. The application for replication must focus on submission of data and information to demonstrate the prior record of the existing school and how such record will be repeated at the replicated school. No school that has received an overall rating of less than "Average" on the South Carolina School Report Card at any time during the preceding three years shall be eligible to apply for replication. An existing charter school that desires to expand its location beyond its current location or an adjacent property must apply for replication.

 

SECTION 5.  Section 59-40-65 of the S.C. Code is amended to read:

 

    Section 59-40-65.  (A) As used in this section:

       (1) "Online, virtual, or computer instruction" means delivery of academic instruction over the internet using electronic devices to students that are not required to be at a specific physical location to receive the instruction.

       (2) "Synchronous instruction" means virtual instruction in which the instructor is able to interact with students in real time, and during a scheduled time period when the instructor and student both must be online for the student to be counted present.

       (3) "Asynchronous instruction" means virtual instruction in which the instructor is not able to interact with students in real time, and may include recorded lessons, lectures, and other on-demand instruction when the teacher and student are not required to be online at the same specified time.

       (4) "Virtual school" means a charter school that provides twenty percent or more of instruction to students by virtual instruction.

       (5) "Virtually-instructed student" means any student that receives twenty percent or more of instruction by virtual instruction, regardless of whether the student attends a virtual school.

    (B) If the governing body of a charter school offers as part of its curriculum a program of online or computervirtual instruction, this information shall be included in the application and the governing body shall be required to:

       (1) provide each student enrolled in the program with a course or courses of online or computer instruction approved by the charter school's sponsor that must meet or exceed the South Carolina content and grade-specific standards. Students enrolled in the program of online or computer instruction must receive all instructional materials required for the student's program;

       (2) ensure that the persons who operate the program on a day-to-day basis comply with and carry out all applicable requirements, statutes, regulations, rules, and policies of the charter school;

       (3) ensure that each course offered through the program is taught by a teacher meeting the requirements of Section 59-40-50;

       (4) ensure that a parent or legal guardian of each student verifiesverify the number of hours of educational activities completed by the student each school year;

       (5) adopt a plan by which it will provide:

           (a) frequent, ongoing monitoring to ensure and verify that each student is participating in the program, including proctored assessment(s) pereach semester in core subjects graded or evaluated by the teacher, and at least bi-weekly parent-teacher conferences in person or by telephone;

           (b) regular instructional opportunities in real time that are directly related to the school's curricular objectives, including, but not limited to, meetings with teachers and educational field trips and outings;

           (c) verification of ongoing student attendance in the program;

           (d) verification of ongoing student progress and performance in each course as documented by ongoing assessments and examples of student coursework;

       (6) administer to all students in a proctored setting all applicable assessments as required by the South Carolina Education Accountability Act.

    (B) Nothing in this section shall prohibit a charter school that provides a program of online or computer instruction from reimbursing families of enrolled students for costs associated with their Internet connection for use in the program.

    (C) A charter school shall provide no more than seventy-five percent of a student's core academic instruction in kindergarten through twelfth grade via an online or computer instruction program. The twenty-five percent of the student's core academic instruction may be met through the regular instructional opportunities outlined in subitem (A)(5)(b).

    (D) Charter school students may enroll in the Department of Education's virtual education program pursuant to program requirements.

    (E) Private or homeschool students choosing to take courses from a virtual charter school may not be provided instructional materials, or any other materials associated with receiving instruction through a program of online or computer instruction at the state's expense.

    (F) Only students enrolled in the charter school as a full-time student shall be reported in the charter school's average daily membership to the State Department of Education for the purposes of receiving state or federal funds. Private and homeschool students may not be included in the student weighted pupil units or average daily membership reported to the State Department of Education for the purposes of receiving state or federal funds.

    (G) A virtual school shall ensure the following:

       (1) Students have daily access to certified teachers during the entire instructional day for live teaching, tutoring, conferencing, and intervention;

       (2) Students are provided regularly scheduled synchronous instructional opportunities appropriate to grade level and course needs each instructional day;

       (3) Student attendance and participation may be demonstrated through a combination of participation in live sessions, completion of assigned coursework, communication with teachers, measurable academic progress, assessments, or other documented engagement measures; and

       (4) Asynchronous instruction may include recorded lessons, adaptive learning platforms, guided independent work, digital curriculum, and teacher-assigned learning tasks.

 

SECTION 6.  Section 59-40-70 of the S.C. Code is amended to read:

 

    Section 59-40-70.  (A)(1) An applicant shall submit a letter of intent at least ninety days before submitting an application to the board of trustees or area commission from which it is seeking sponsorship and a copy to the South Carolina Department of Educationand within the same school year to which it intends to apply. A copy of the letter also must be submitted to the Department of Education.

       (2) An applicant shall submit the application to the board of trustees or area commission from which it is seeking sponsorshipauthorization and one copy to the South Carolina Department of Education. In the case of the South Carolina Public Charter School District or a public or independent institution of higher learning sponsor, the applicant shall provide notice of the application to the local school board of trustees in which the charter school will be located for informational purposes only. The school district or the public or independent institution of higher learningauthorizer from which the applicant is seeking sponsorship approval may request clarifying information from the applicant. The State Department of Education shall provide guidance on compliance to both sponsorsauthorizer and applicants.

       (3) The applicant shall notify the local delegation of a county in which a proposed charter school is to be located upon submission of a charter school application and also shall provide a copy of the charter school application upon request by a member of the local delegation.

       (4) The Department of Education shall post for each application cycle a list of all applicants including the name of the proposed charter school, the name of the proposed sponsor, and the area in which the proposed charter school will be located.

    (B) (1) The board of trustees or area commissionapplicant shall present its application at a public hearing and the authorizer from which the applicant is seeking sponsorshipauthorization shall rule on the application for a charter school in a public hearing, upon reasonable public notice, withinno more than ninety days after receiving the application. If there is no ruling within ninety days, the application is considered conditionally approved pending correction by the applicant of any identified deficiencies in the application and submitted to the authorizer within thirty days from conditional approval. OnceIf the application has beenis approved by the board of trustees or area commissionauthorizer, the charter school may open at the beginning of the following year upon completion of a planning year. However, before a charter school may open, the charter school must meet the pre-opening conditions included in the charter contract and the State Department of Education shall verify the accuracy of the financial data for the school within forty-five days after approval.

       (2) At least ten business days prior to an applicant's public meeting, the authorizer must provide to the applicant written notice of their public meeting, which must contain the date, location and time of the meeting. At least five business days prior to the public meeting, the authorizer must provide the applicant with a written evaluation report using the rubric aligned with the department application and any published sponsor evaluation criteria.

       (3) At least two business days prior to an applicant's public meeting, the applicant must provide the authorizer with any rebuttal material the applicant intends to present at the meeting.

    (C) A board of trustees or area commission shall 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, as defined in regulation, the other students in the district in which the charter school is to be located, or if, based on the totality of information provided by the applicant, the board of trustees or area commission determines that the applicant has failed to demonstrate a substantial likelihood that it has the capacity to establish a viable school based on national industry standards of quality charter school authorization. It shall provide, within ten days, a written explanation of the reasons for denial, citing specific standards related to provisions of Section 59-40-50 or 59-40-60 that the application violates. This written explanation immediately must be sent to the charter committee and filed with the State Board of Education.

    (D) In the event that the racial composition of an applicant's or charter school's enrollment differs from the enrollment of the local school district in which the charter school is to be located or the targeted student population of the local school district by more than twenty percent, despite its best efforts, the board of trustees or area commission from which the applicant is seeking sponsorship shall consider the applicant's or the charter school's recruitment efforts and racial composition of the applicant pool in determining whether the applicant or charter school is operating in a nondiscriminatory manner. A finding by the board of trustees or area commission that the applicant or charter school is operating in a racially discriminatory manner justifies the denial of a charter school application or the revocation of a charter as provided in this section or in Section 59-40-110, as may be applicable. A finding by the board of trustees or area commission that the applicant is not operating in a racially discriminatory manner justifies approval of the charter without regard to the racial percentage requirement if the application is acceptable in all other aspects.

    (E) If the board of trustees or area commission from which the applicant is seeking sponsorship denies a charter school application, the charter applicant may appeal the denial to the Administrative Law Court pursuant to Section 59-40-90.

    (F) If the board of trustees or area commission approves the application, it becomes the charter school's sponsor and shall sign the approved application. The sponsor shall submit a copy of the charter contract to the State Board of Education.

    (G) If a local school board of trustees has information that an approved application by the South Carolina Public Charter School District or a public or independent institution of higher learning sponsor adversely affects the other students in its district, as defined in regulation, or that the approval of the application fails to meet the spirit and intent of this chapter, the local school board of trustees may appeal the granting of the charter to the Administrative Law Court. The Administrative Law Court, within forty-five days, may affirm or reverse the application for action by the South Carolina Public Charter School District or the public or independent institution of higher learning in accordance with an order of the state board.

 

SECTION 7.  Section 59-40-75 of the S.C. Code is amended to read:

 

    Section 59-40-75.  (A) A member of the South Carolina Public Charter School District or of the governing board or sponsor of the charter schoolthe governing board of an authorizer or a charter school who is indicted in any court for any crime, or has waived the indictment if permitted by law, may be suspended by the Governor, who shall appoint another in his stead until he is acquitted or the charges are dismissed. In case of conviction, the office must be declared vacant by the Governor and the vacancy filled as provided by lawin the same manner as provided for full-term appointments.

    (B) Notwithstanding another provision of law to the contrary, members of a charter school board of directorsmembers of an authorizer or charter school governing board who wilfully commit or engage in an act of malfeasance, misfeasance, chronic unexcused absenteeism, conflicts of interest, misconduct, or persistent neglect of duty in office, or are deemed medically incompetent or medically incapacitated, may be removed from officemust be subject to removal by the Governor upon any of the forgoing causes being made to appear to the satisfaction of the Governor. Before removing any such the officer, the Governor shall inform him in writing of the specific charges brought against him and give him an opportunity on reasonable notice to be heard. Vacancies occurring in the membership of any board of directorsgoverning board as a result of removal pursuant to this subsection must be filled in the manner provided in the charter school's bylawssame manner as provided for full-term appointments.

    (C) Whenever it appears to the satisfaction of the Governor that probable cause exists to charge a member of the South Carolina Public Charter School District or of the governing board of an authorizer or a the charter school who has the custody of public or trust funds with embezzlement or the appropriation of public or trust funds to private use, then the Governor shall direct his immediate prosecution by the proper officer.

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

       (2) An individual is prohibited from serving as a member of the governing board of either a charter school or charter school authorizer if the individual or an immediate family member is a full or part owner, principal owner, or employee of a management organization.

       (3) An individual is prohibited from serving as a board member of a charter school or a charter school foundation if the individual or an immediate family member is a board member of the charter school's authorizer or the institution of higher learning.

       (4) Members of the General Assembly and immediate family members are prohibited from serving as a board member for either an authorizer or a charter school and may not have any ownership in an entity that is established to operate or lease property to a charter school.

    (E)(1) An individual is prohibited from employment by an authorizer of a charter school, if the individual or an immediate family member is employed in a position to exercise direct financial decision-making authority with a charter school authorized by the authorizer.

       (2) For the purpose of this section, immediate family member means a child, a spouse, or an individual claimed by the individual as a dependent for income tax purposes.

    (F) An individual may not serve simultaneously as a member of more than one governing board of either a charter school or a charter school authorizer after December 31, 2026.

 

SECTION 8.  Section 59-40-90 of the S.C. Code is amended to read:

 

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

 

SECTION 9.  Section 59-40-110 of the S.C. Code is amended to read:

 

    Section 59-40-110. (A) A charter must be approved or renewed for a period of at least five, but no more than ten school years; however, the charter only may be revoked or not renewed under the provisions of subsection (C)(F) of this section. The sponsor annually shall evaluate the conditions outlined in subsection (C)(F). The annual evaluation results must be used in making a determination for nonrenewal or revocation.

    (B) Prior to the beginning of the second to last year of operation of a charter school, the sponsor shall issue a charter school performance report and charter renewal application guidance to the school and the charter school board. The performance report shall summarize the performance record to date of the charter school, based on the data required by this chapter and the charter contract and taking into consideration the percentage of at-risk students enrolled in the school, and shall provide notice of any weaknesses or concerns perceived by the sponsor concerning the charter school that may jeopardize its position in seeking renewal if not timely rectified. The charter school shall have forty-five days to respond to the performance report and submit any corrections or clarifications to the report.

    (C) Prior to the beginning of the last year of operation of a charter school, the charter school may apply for renewal of the contract with the sponsor. The renewal application guidance shall, at a minimum, provide an opportunity for the charter school to:

       (1) present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal;

       (2) describe improvements undertaken or planned for the school; and

       (3) detail the plan for the next charter term for the school.

    (D) The renewal application guidance shall include or refer explicitly to the criteria that will guide the renewal decisions of the sponsor.

    (B)(E) A charter renewal application must be submitted to the school's sponsor one hundred twenty calendar days before the end of the school year for the term of the charter contract, and it 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;

       (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 allows comparison of these costs to other schools or other comparable organizations, in a format required by the State Board of Education;  and

       (3) any proposed material changes to the current charter or charter school contract to be implemented in the next ten-year charter term.

    (C)(F) A charter mustmay be revoked or not renewed by the sponsor if it, using publicly accessible data that is available to the school, determines that the charter school:

       (1) committed a material violation of the conditions, standards, performance expectations, or procedures provided for in the charter application or charter school contract, or both, and the charter school failed to cure the violation after written notice and a reasonable opportunity to cure;

       (2) failed to meet the academic performance standards and expectations as defined in the charter application or charter school contract, or both;

       (3) failed to maintain its books and records according to generally accepted accounting principles or failed to create an appropriate system of internal control, or both;  or

       (4) materially violated any provision of law from which the charter school was not specifically exempted and failed to cure the violation after written notice and a reasonable opportunity to cure.

    (D)(G) A sponsor summarily may revoke any charter school that is determined by the sponsor to pose an imminent threat of harm to the health or safety of students, or both, based on documented and clear and convincing data.

    (E)(H) Any charter school shall automatically and permanently close at the conclusion of the school year in which the school first becomes subject to automatic closure for receiving the lowest performance level rating as defined by the federalstate accountability system for three consecutive years beginning with student achievement data from the 2013-2014 school year. The determination of closure is considered final. Automatic closure shall not apply to any charter school serving fifty percent or more students with disabilities or any charter school designated as an Alternative Education Campus (AEC) by its sponsor as outlined in Section 59-40-111.

    (F)(I) A sponsor must adopt a publicly accessible and transparent process should it intend to non-renew or terminate a charter school.  At a minimum, the sponsor must:

       (1) at least sixtynintey 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. The notification shall state the grounds for the proposed action in reasonable detail. Termination must follow the procedure provided for in this section.;

       (2) provide the charter school with fifteen calendar days from the school's receipt of the notice in which to prepare a response, which shall include any supporting documentation, in the school's discretion;

       (3) provide the charter school with an opportunity to submit documents and give testimony in a public hearing challenging the rationale for closure and in support of the continuation of the school at an orderly proceeding held for that purpose between fifteen and thirty calendar days after the school submits its response pursuant to item (2), and at such hearing, school must be permitted to record the proceedings and be allowed access to legal representation to call witnesses; and

       (4) within five calendar days of the public hearing, require a final determination to be made and conveyed in writing to the charter school.

    (G)(J) The existence of another charter granting authority must not be grounds for the nonrenewal or revocation of a charter. Grounds for nonrenewal or revocation must be only those specified of this section.

    (H) 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 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.

    (I)(K) A charter school seeking renewal may submit a renewal application to another charter granting authority if the charter school has not committed a material violation of the provisions specified in this section and the sponsor refuses to renew the charter. In such cases the charter school shall continue to receive local funding pursuant to Section 59-40-140(A). However, the charter school is not eligible to receive one hundred percent of the base student cost from the State. The charter school only is eligible to receive the percentage of the base student cost previously received as a school in its former district.

    (J)(L) A decision to revoke or not to renew a charter school may be appealed to the Administrative Law Court pursuant to the provisions of Section 59-40-90. Upon appeal to the Administrative Law Court, there is no automatic stay of the revocation or nonrenewal decision. Pending resolution of the appeal, the charter school also may move before the Administrative Law Court for imposition of a stay of the revocation or nonrenewal on the grounds that an unusual hardship to the charter school, its teachers and students, or both, will result from the execution of the sponsor's decision.

    (K)(M) Prior to any public charter school closure, the sponsor shall develop a public charter school closure protocol to ensure timely notification to parents, orderly transition of students and student records to new schools, and proper disposition of school funds, property, and net assets in accordance with the requirements of this chapter. The protocol shall specify tasks, timelines, and responsible parties, including delineating the respective duties of the school and the sponsor. In the event of a public charter school closure for any reason, the sponsor shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students and parents, as guided by the closure protocol.

 

SECTION 10. Section 59-40-111 of the S.C. Code is amended to read:

 

    Section 59-40-111. (A) For purposes of this chapter, an Alternative Education Campus (AEC) is any charter school with an explicit mission and purpose as outlined in its charter to serve an enrolled student population with:

       (1) severe limitations that preclude appropriate administration of the assessments administered pursuant to federal and state requirements;

       (2) fifty percent or more of students having Individualized Education Programs (IEPs) in accordance with federal regulations or a demonstrated need for specific services or specialized instruction as defined in Section 59-40-50, and the school shall provide the needed evidence-based specialized instruction, interventions, services, support, and accommodations based on the needs of the students;  or

       (3) eighty-five percent or more of enrolled students meeting the definition of a "high-risk" student including students who:

           (a) have been adjudicated as juvenile delinquents or who are awaiting disposition of charges that may result in adjudication;

           (b) have dropped out of school or who have not been continuously enrolled and regularly attending any school for at least one semester before enrolling in this school;

           (c) have been expelled from school or who have engaged in behavior that would justify expulsion;

           (d) have documented histories of personal drug or alcohol use or who have parents or guardians with documented dependencies on drugs or alcohol;

           (e) have documented histories of personal street gang involvement or who have immediate family members with documented histories of street gang involvement;

           (f) have documented histories of child abuse or neglect;

           (g) have parents or guardians in prison or on parole or probation;

           (h) have documented histories of domestic violence in the immediate family;

           (i) have documented histories of repeated school suspensions;

           (j) are under the age of twenty years who are parents or pregnant women;

           (k) are homeless, as defined in the McKinney-Vento Homeless Assistance Act;  or

           (l) have a documented history of a serious psychiatric or behavioral disorder including, but not limited to, an eating disorder or a history of suicidal or self-injurious behaviors.

    (B) Such schools must be classified as AECs by their sponsor.

    (C) A high-poverty rating alone shall not qualify any charter school for status as an AEC.

    (D) Charter school applicants seeking such a designation shall provide sufficient information in their charter application to allow the authorizer to make a determination as to whether that classification applies.

    (E) Charter schools already in operation may seek AEC classification by petitioning their sponsor. A charter school that has received the lowest performance level rating as defined by the federal accountability system in any of the three previous school years is ineligible to seek AEC classification.

    (F) Charter schools receiving an AEC designation either before or after opening, shall be held to applicable state and federal accountability standards along with the academic performance standards and expectations established by written agreement between the sponsor and the school that takes into account the school's specialized mission and student population with comparisons to any available nationally normed data with similar subsets of students and is included in their annual report in accordance with Section 59-40-140(H) and is included in the school report card compiled by the Education Oversight Committee.

    (G) An authorizer shall review a charter school's AEC designation for compliance with subsection (A)(1) through (A)(3) annually before January first and report its findings to the Department of Education before February first. If a charter school does not meet the requirements, its AEC designation shall be designated "Under Review" for the following school year and the school shall submit a compliance improvement plan to its authorizer. If the charter school does not meet the requirements for two consecutive school years, its AEC designation shall be revoked for the next two consecutive school years. A school may reapply for an AEC designation if the school demonstrates compliance with subsection (A)(1) through (A)(3).

SECTION 11. Section 59-40-115 of the S.C. Code is amended to read:

 

    Section 59-40-115. (A) A charter school may voluntarily terminate its charter and contract with a sponsorthe authorizer before the expiration of the ten-year term of the contract if all parties under contract with the charter school agree to the dissolution. A charter school that terminates its contract with a sponsor directly may seek application for the length of time remaining on its original contract from another sponsor.by a majority vote of the charter school board, which constitutes a dissolution event of the corporation and the charter school.

    (B) In order for a charter school to transfer its charter to another authorizer, its decision to do so must be voted upon during an open session of a public meeting of the charter school board in accordance with the South Carolina Freedom of Information Act and it must obtain the approval of its current authorizer and the proposed new authorizer pursuant to procedures in this section.

       (1) A charter school shall submit a written request to the current authorizer and the proposed receiving authorizer to transfer its charter to a different authorizer before September first. The request must include documentation of the charter school board's affirmative vote to initiate the transfer process. The transfer must be effective on July first of the following year.

       (2) The proposed new authorizer shall issue a written final decision approving or denying the request to transfer before October thirty-first. The request to transfer may be denied by the proposed new authorizer for any reason; however, if the proposed authorizer determines the charter school's request to transfer is, to avoid accountability, prohibited by law or untimely, then the transfer must be denied. A copy of the final decision must be served on the charter school applying to transfer, the current authorizer, and the Department of Education before November fifth. The decision of the proposed new authorizer to deny the request is not appealable.

       (3) If the proposed new authorizer approves the request to transfer, then the current authorizer shall issue a final decision approving or denying the request to transfer before December thirty-first. The authorizer must permit the charter school to submit materials or information to support its transfer request, all of which must be submitted at least five business days before the board meeting. A charter school who makes a written request at least five business days before the board meeting must be given an opportunity to appear and present information regarding their request. If an authorizer fails to comply with items (1) through (4), then the Department of Education may compel the authorizer to comply by withholding the authorizer's fees related to the charter school seeking to transfer until the authorizer complies.

       (4) Items (1) through (3) must be conducted in the year in which the request was submitted following proper notice, public discussion, and a vote by the board during a public open session meeting held in accordance with the Freedom of Information Act.

       (5) The current authorizer must deny a request to transfer to the proposed new authorizer if the current authorizer determines the charter school's request to transfer is to avoid accountability, prohibited by law, untimely, or other good cause to deny the transfer exits.

       (6) Good cause to deny the charter school's transfer request includes, but is not limited to:

           (a) violations of the charter, contract, or applicable law, that have not been resolved by the charter school;

           (b) receipt of the lowest performance level rating under the state or federal accountability system during the past two academic years by the charter school seeking to transfer;

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

           (d) the charter school has operated less than two years with the current authorizer.

       (7) The final decision of the current authorizer is appealable to the Administrative Law Court.

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

 

SECTION 12. Section 59-40-120 of the S.C. Code is amended to read:

 

    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 must be returned to that entity. All other assets become property of the sponsorState of South Carolina.

 

SECTION 13. Section 59-40-140 of the S.C. Code is amended to read:

 

    Section 59-40-140. (A) A local school board of trustees sponsor For schools authorized for the first time by a local authorizer after July 1, 2027, the local authorizer 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 revenues, less transfers into the general fund, including use of fund balance, less the previous year's payments made to all charter schools authorized by the local authorizer, divided by the previous year's weighted students, not including weighted students of all charter schools authorized by the local authorizer, 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.

    (B) For existing schools authorized by a local authorizer, the local school board of trustees 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 revenues 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.

    (C) For all locally sponsored schools, the amounts in subsections (A) and (B)These amounts must be verified by the State Department of Education before the first disbursement of funds. All state and local funding must be distributed by the local school district to the charter school monthly beginning July first following approval of the charter school application and must continue to be disbursed to the charter school for the duration of its charter and for the duration of any subsequent renewals. After verification of student attendance on the fifth day of school at the beginning of each school year, the State Department of Education shall distribute funds to school districts with charter schools: (1) having approved incremental growth and expansion as provided in their charter application; or (2) for opening of new charter schools in the current fiscal year. These funds must be released to districts on behalf of their charter schools no later than fifteen days after receipt of verified enrollment. Districts shall provide this funding to eligible charters no later than thirty days after receipt from the Department of Education. Necessary adjustments due to enrollment changes must be made pursuant to the Education Finance Act.

    (B)(D) The South Carolina Public Charter School District or public or independent institution of higher learning sponsor shall receive and distribute state funds to the charter school as provided by the General Assembly. Authorizers shall report annually before July first the method by which funds are provided to each school it authorizes.

    (C)(E) 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 sponsor 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.

    (D)(F) Notwithstanding subsection (C)(E), the proportionate share of state and federal resources generated by students or staff serving them must be directed to the sponsor. After receipt of federal or state categorical aid funds, sponsors shall, within ten business days, supply to the charter school the proportional share of each categorical fund for which the charter school qualifies. If the sponsor fails to do so, the Department of Education may fine the sponsor an amount equivalent to the withheld amounts. Fines imposed must be remitted to the charter school from which the amounts were withheld.

    (E)(G) All services centrally or otherwise provided by the sponsor 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 sponsor and must be outlined in the contract required pursuant to Section 59-40-70(F), except as otherwise provided or required by law.

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

    (G)(I) The governing body of a charter school or an authorizer mayis authorized to accept gifts, donations, or grants of any kind made to the charter school or authorizer and to expend or use the gifts, donations, or grants in accordance with the conditions prescribed by the donor. A gift or donation must not be required for admission. However, a gift, donation, or grant must not be accepted by the governing board of either a charter school or the authorizer if subject to a condition contrary to law or contrary to the terms of the contract between the charter school and the governing body. All gifts, donations, or grants must be reported to the sponsor in their annual audit report as required in Section 59-40-50(B)(3)to a charter school authorizer shall be coded pursuant to the Financial Accounting Handbook provided by the department or as otherwise directed by the department.

    (H)(J) 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 sponsor shall compile those reports into a single document which must be submitted to the department. The Department of Education shall develop a template to be used by charter schools for this annual report. The report shall provide all information required by the sponsor or the department and shall include, at a minimum:

       (1) the number of students enrolled in the charter school from year to year;

       (2) the success of students in achieving the specific educational goals for which the charter school was established;

       (3) an analysis of achievement gaps among major groupings of students in both proficiency and growth;

       (4) the identity and certification status of the teaching staff;

       (5) the financial performance and sustainability of the sponsor's charter schools;  and

       (6) board performance and stewardship including compliance with applicable laws.

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

    (J)(L) Charter schools may acquire by gift, devise, purchase, lease, sublease, installment purchase agreement, land contract, option, or by any other means provided by law or otherwise, 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. Charter schools may not hold property for any other purpose.

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

    (N) Charter schools may contract with a management organization for financial, accounting, and treasury services including balanced budget credits or budget deficit protection credits applied to the school's operating budget. A management organization may recover these credits only within the fiscal year when the credits are issued. At the conclusion of a fiscal year, any remaining balanced budget credits or budget deficit protection credits are not recoverable by the management organization and shall not be recorded as a liability in a charter school's financial audit.

    (L)(O) Notwithstanding the above provisions of this section, this subsection applies to converted charter schools that converted into a charter school after the effective date of this act. For purposes of computing the funding for any year to be provided a converted charter school under the provisions of this section, the computations required shall be made as provided in this section based on the previous year's revenues, expenditures, and other applicable factors pertaining to that particular converted charter school, and also then shall be made as provided in this section for the year immediately preceding the previous year based on the revenues, expenditures, and other applicable factors for that year pertaining to that particular converted charter school. The funding of the converted charter school for the initial year shall be the average of the weighted per pupil unit funding computed for these two prior years, and funding for the converted charter school after the initial year shall be provided by the school district in the same manner as regular public schools in the district.

 

SECTION 14. Section 59-40-150 of the S.C. Code is amended to read:

 

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

       (B) The Department of Education shall develop the charter school application, compliance guidance, and evaluation rubric for all charter applicant groups to submit to an authorizer for charter approval. The Department of Education shall provide guidance and technical assistance regarding charter applications and the application process to authorizers and applicant groups.

    (C) The Department of Education shall annually make revisions, with stakeholder feedback to the application and publish it to its website before November first annually.

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

    (F) The Department of Education shall annually review the policies, procedures, and performance of each authorizer for compliance with the provisions of this chapter, state regulations, and other state and federal law.

    (G) Prior to January 1, 2027, the Department of Education shall develop an application to become an authorizer, which must include:

       (1) an executive summary, not to exceed two pages;

       (2) the mission statement of the authorizer, which must be consistent with the principles of the General Assembly's purposes pursuant to Section 59-40-20;

       (3) the measurable goals, objectives, and academic performance standards to be achieved by the charter schools to be authorized;

       (4) evidence of need for the authorizer in light of the needs of the State;

       (5) a description of the authorizer's plan and capacity to serve as the LEA for the number of charter schools proposed to be served;

       (6) a description of the authorizer's plan for annually evaluating the charter schools it authorizes;

       (7) evidence that the financial plan for the authorizer is economically sound, including a proposed start-up budget, and a proposed five-year and ten-year budget;

       (8) a description of the governance and operation of the authorizer, including a detailed school start-up plan and resumes and background information of those executing the start-up plan;

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

       (10) a description of the relationship that shall exist between the authorizer and its employees, including a staffing chart aligned with the budget and student enrollment projections, descriptions of evaluation procedures, and evidence that the terms and conditions of employment have been addressed with affected employees;

       (11) a description of the relationship between the authorizer and the institution of higher education, including how missions are aligned and how resources will be shared;

       (12) the academic, governance, and financial performance of the institution of higher education, including its accreditation status; and

       (13)  a statement of assurances for the authorizer to execute affirming the authorizer understands and agrees to perform the essential responsibilities and obligations of an authorizer and LEA.

    (H) No later than February 1, 2027, the Department of Education shall develop and implement a process to accept and evaluate applications for institutions of higher education that were not authorizers before January 1, 2026. All higher education authorizers operating prior to January 1, 2026 shall not be required to submit an application but must sign the statement of assurances affirming the authorizer understands and agrees to perform the essential responsibilities and obligations of an authorizer and LEA. The Department of Education shall consider the information submitted in the application to decide whether an application may be approved, denied, or approved with conditions based on the demonstrated capacity of the applicant to fulfill the obligations of an authorizer under this chapter. The Department of Education may deny an application if the preponderance of available evidence supports a finding by the department that approving the application will encourage the transfer of poor performing charter schools to the new authorizer for purposes of escaping, delaying, or reducing accountability.

    (I) The Department of Education shall compile and make public a report summarizing charter school authorizer performance and compliance to include, but not limited to, the academic and financial performance of the schools it authorizes.

    (E)(J) The departmentDepartment of Education shall bear the cost of complying with this section.

 

SECTION 15. Section 59-40-155 of the S.C. Code is amended to read:

 

    Section 59-40-155. (A) Within one year of taking office, all persons elected or appointed as members of a charter school board of trustees or a charter school authorizer board of trustees after July 1, 20062026, shall complete successfully an orientation program. The training must include specific instruction on board member duties for compliance with chapter, to include in the powers, duties, and responsibilities of a board member including, but not limited to, topics on policy development, personnel, instructional programs, school finance, school law, state ethics laws, the South Carolina Freedom of Information Act, and community relations. The orientation must be provided at no charge by the State Department of Education or an associationentity approved by the department.

    (B) (1) Annually, all persons elected or appointed as members of a charter school board of directors shall participate in at least three hours of advanced board governance training on the powers, duties, and responsibilities of a charter school governing board including leader evaluation, education service provider evaluation, policy implementation, strategic planning, academic data analysis, compliance, financial best practices, school safety, South Carolina Nonprofit Code, or other topics specific to the needs and mission of the school.

       (2) Training may be delivered by the State Department of Education or the approved entity.

    (B)(C) Within ninety days of employment, an administratorthe school leader employed by the charter school who does not possess any previous charter school leadership experience, who is not certified, shall complete successfully an orientation program in the powers, duties, and responsibilities of a charter school administrator including, but not limited to, topics on personnel, instructional programs, school finance, school law including charter school law, board relations, South Carolina ethics, conflicts of interest, and community relations. The orientation must be provided at no charge by the State Department of Education or an association approved by the department.

 

SECTION 16. Section 59-40-180 of the S.C. Code is amended to read:

 

    Section 59-40-180. The State Board of Education shall promulgate regulations and develop guidelines necessary to implement the provisions of this chapter, including standards to determine compliance with this chapter and an application process for authorizers and charter schools to include a timeline for submission of applications that will allow for final decisions, including Administrative Law Court appeal, by December first of the year preceding the charter school's opening to be issued consistent with budget and funding needs. An authorizer registered pursuant to this chapterbefore January 1, 2026, is not considered a new authorizer subject to the application process provided in this chapter. Higher education authorizers registered prior to enactment of this section shall submit documentation as required to the Department of Education to ensure that it is in compliance with any requirements that shall be applied to new authorizers.

 

SECTION 17. Section 59-40-230(A)(1)(d)(ii) of the S.C. Code is amended to read:

 

    (ii) South Carolina Chamber ofManufacturers and Commerce;

 

SECTION 18. The Code Commissioner is directed to change all references in Title 59 of the South Carolina Code of Laws from the "Charter School Sponsor," "Sponsor(s)," and "School Sponsor(s)" to the "Charter School Authorizer," "Authorizer(s)," and "School Authorizer(s)," as appropriate.

 

SECTION 19. This act takes effect upon approval by the Governor.

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