No. 43396 (New Rule): Rule R277-555. Corrective Action Against Charter School Authorizers

(New Rule)

DAR File No.: 43396
Filed: 11/15/2018 11:30:02 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In the 2018 Legislative Session, the Legislature passed H.B. 313. H.B. 313 (2018) made significant amendments to the process charter school authorizers should follow in approving and providing oversight to charter schools. H.B. 313 (2018) also directed the Utah State Board of Education (Board) to make rules to carry out the legislative changes in relation to oversight of charter schools and their authorizers.

Summary of the rule or change:

H.B. 313 (2018) directed the Board to make rules to carry out the legislative changes in relation to the oversight of charter schools and their authorizers. This new rule, R277-555, governs the process for Board Corrective Action against Charter School Authorizers.

Statutory or constitutional authorization for this rule:

• Subsection 53G-5-205(6)
• Article X, Section 3
• Subsection 53E-3-401(4)

Anticipated cost or savings to:

the state budget:

This new rule is expected to have a fiscal impact on charter school authorizers and the Board. The Board anticipates the activities created by this group of charter school rules will require ongoing monitoring. The Board was funded for a full-time employee (FTE) in the 2018 session to absorb the costs, total costs $155,000. The State Charter School Board has staff that will be performing these activities and is funded through the Board.

local governments:

This new rule is expected to have a fiscal impact on charter school authorizers and the Board. The Board anticipates the activities created by this group of charter school rules will require ongoing monitoring. We anticipate that other charter school authorizers such as school districts and Utah Center for Assistive Technology (UCAT) will be required to develop policies and practices, and monitor the schools they authorize. The percentage of charter schools not authorized by the State Charter School Board is relatively small, around 10 of the total 120 active schools. We anticipate that monitoring activities would cost less than a FTE. Average costs of an FTE would be between $80,000-$120,000, thus we anticipate costs to an authorizer to be around $50,000 annually. Iron School District, Jordan School District, Salt Lake City School Districts, Logan City and UCAT are the other authorizers. We anticipate annual costs of $250,000.

small businesses:

This new rule is expected to have a fiscal impact on charter school authorizers and the Board. The Board anticipates the activities created by this group of charter school rules will require ongoing monitoring. We anticipate that other charter school authorizers such as school districts and UCAT will be required to develop policies and practices, and monitor the schools they authorize. The percentage of charter schools not authorized by the State Charter School Board is relatively small, around 10 of the total 120 active schools. We anticipate that monitoring activities would cost less than a FTE. Average costs of an FTE would be between $80,000-$120,000, thus we anticipate costs to an authorizer to be around $50,000 annually.

persons other than small businesses, businesses, or local governmental entities:

This new rule is expected to have a fiscal impact on charter school authorizers and the Board. The Board anticipates the activities created by this group of charter school rules will require ongoing monitoring. We anticipate that other charter school authorizers such as school districts and UCAT will be required to develop policies and practices, and monitor the schools they authorize. The percentage of charter schools not authorized by the State Charter School Board is relatively small, around 10 of the total 120 active schools. We anticipate that monitoring activities would cost less than a FTE. Average costs of an FTE would be between $80,000-$120,000, thus we anticipate costs to an authorizer to be around $50,000 annually.

Compliance costs for affected persons:

Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no large businesses with a NAICS code 611110). This new rule is anticipated to cost state government $155,000 annually and other authorizers approximately $250,000 annually.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no large businesses with a NAICS code 611110). This new rule is anticipated to cost state government $155,000 annually and other authorizers approximately $250,000 annually. The Assistant Superintendent of Financial Operations at the Utah State Board of Education, Natalie Grange, has reviewed and approved this fiscal analysis.

Sydnee Dickson, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY, UT 84111-3272

Direct questions regarding this rule to:

• Angela Stallings at the above address, by phone at 801-538-7550, by FAX at 801-538-7768, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/02/2019

This rule may become effective on:

01/09/2019

Authorized by:

Angela Stallings, Deputy Superintendent of Policy

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$155,000

$155,000

$155,000

Local Government

$250,000

$250,000

$250,000

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$405,000

$405,000

$405,000

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no large businesses with a NAICS code 611110). This new rule is anticipated to cost state government $155,000 annually and other authorizers approximately $250,000 annually.

 

The Assistant Superintendent of Financial Operations at the Utah State Board of Education, Natalie Grange, has reviewed and approved this fiscal analysis.

 

 

R277. Education, Administration.

R277-555. Corrective Action Against Charter School Authorizers.

R277-555-1. Authority and Purpose.

(1) This rule is authorized by:

(a) Utah Constitution Article X, Section 3, which vests general control and supervision over public education in the Board;

(b) Subsection 53E-3-401(4), which allows the Board to make rules to execute the Board's duties and responsibilities under the Utah Constitution and state law;

(c) Title 53G, Chapter 5, Charter Schools, which allows the Board to make rules governing aspects of operations of charter schools; and

(d) Subsection 53G-5-205(6), which authorizes the Board to establish reasonable consequences for a charter school authorizer that fails to comply with state statute or board rule.

(2) The purpose of this rule is to establish procedures for review and consequences for non-compliance by a charter school authorizer.

 

R277-555-2. Authorizer Accountability.

(1) The Superintendent may initiate corrective action as described in this rule if an authorizer:

(a) fails to develop and implement a process meeting minimum standards for authorizing charter schools as described in Rule R277-552;

(b) fails to develop and implement a process meeting minimum standards for charter school oversight monitoring as described in Rule R277-553; or

(c) fails to comply with statute or Board rule.

(2) For each authorizer subject to corrective action, the Superintendent shall design and implement a consistent monitoring plan.

(3) The Superintendent shall clearly outline in a corrective action plan:

(a) all areas of noncompliance;

(b) steps required to satisfy the corrective action plan; and

(c) a reasonable time frame for an authorizer to correct identified issues.

(4) In addition to the requirements of Subsection (3), a corrective action plan may include provision and a timeline for:

(a) referral for monitoring by a Board section;

(b) referral for monitoring to the Board's internal audit department, with approval of the Board's Audit Committee;

(c) periodic meetings between a recipient administrator or governing board member and the Superintendent or a member of the Superintendency;

(d) planned appearances before the Board to provide status updates; and

(e) training for the authorizer's staff.

(5) The Superintendent may employ escalating restrictive conditions in a corrective action plan based on:

(a) the severity of the violation; or

(b) repeated violations by an authorizer.

(6) The Superintendent may include penalties for non-compliance with a corrective action plan in accordance with Subsection 53E-3-401(8).

(7) The Superintendent shall give notice and a copy of the corrective action plan in writing to:

(a) the authorizer's administrators; and

(b) the authorizer's governing board.

(8) The Superintendent shall notify an authorizer of changes to a corrective action plan.

(9) The Superintendent shall report to the Board monthly about the status of noncompliant authorizers.

 

R277-555-3. Authorizer Appeals.

(1) An authorizer may file an appeal to the Board of any adverse decision of the Superintendent resulting from a corrective action plan or penalty.

(2) An appeal must be made in writing and within 30 days of the date of the Superintendent's action.

(3) The Board may:

(a) review the appeal as a full board; or

(b) refer the matter to a Board standing or audit committee to make a recommendation to the Board for action.

 

KEY: charter schools, corrective action

Date of Enactment or Last Substantive Amendment: 2018

Authorizing, and Implemented, or Interpreted Law: Art X Sec 3; 53E-3-401; 53G-5-205

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