No. 28987 (Repeal and Reenact): R277-470. Charter Schools

 

DAR File No.: 28987
Filed: 09/01/2006, 02:11
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is repealed and reenacted because of significant changes in the law over the past several years. The reenacted rule satisfies statutory directives and provides new sections. The reenacted rule also clarifies timelines for charter school approval for schools to qualify for state funding.

 

Summary of the rule or change:

The reenacted rule provides new and necessary definitions and the following new sections: Charter School Orientation and Training, Remedying Charter School Financial Deficiencies, Charter School Financial Practices and Training, Procedures and Timelines for Schools Chartered by Local Boards to Convert to Board-Chartered Schools, Charter Schools and NCLB Funds, Charter School Parental Involvement, Charter School Oversight and Monitoring, Expansion for Approved Charter Schools, and Appeal Process to State Board of Education and Miscellaneous Provisions.

 

State statutory or constitutional authorization for this rule:

Section 53A-1a-513 and Subsection 53A-1-401(3)

 

Anticipated cost or savings to:

the state budget:

There is no additional cost to state budget (the State Charter School Board staff has responsibility for monitoring; and the Utah State Office of Education provides financial training to all schools). There could be significant savings if state monitoring prevents loss of state funds in loosely-run charter schools.

 

local governments:

There is no anticipated cost to local government. The rule should help charter schools save money. School financial training from the State Office of Education is excellent.

 

other persons:

There are no anticipated cost or savings for other persons. The standards and procedures apply specifically to charter school operation and not to individuals.

 

Compliance costs for affected persons:

There are no compliance costs for affected persons. The standards and procedures apply specifically to charter school operation and not to individuals.

 

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

I have reviewed this rule and I see no fiscal impact on businesses. Patti Harrington, State Superintendent of Public Instruction

 

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

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

 

Direct questions regarding this rule to:

Carol Lear at the above address, by phone at 801-538-7835, 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:

10/16/2006

 

This rule may become effective on:

10/24/2006

 

Authorized by:

Carol Lear, Director, School Law and Legislation

 

 

RULE TEXT

R277. Education, Administration.

[R277-470. Charter Schools.

R277-470-1. Definitions.

A. "Board" means the Utah State Board of Education.

B. "Charter schools" means schools acknowledged as charter schools by local boards of education under Section 53A-1a-515 and this rule or by the Board under Section 53A-1a-505.

C. "Charter school application" means the official chartering document by which a prospective charter school seeks recognition and funding under Section 53A-1a-505. The application includes the basic elements of the charter with the charter school and the chartering board consistent with R277-470-4.

D. "Founding member" means an individual who has had a significant role in the development of the charter school application.

E. "Local education agency (LEA)" means a local board of education, combination of school districts, other legally constituted local school authority having administrative control and direction of free public education within the state, or other entities as designated by the Board, and includes any entity with state-wide responsibility for directly operating and maintaining facilities for providing free public education.

F. "On-going funds" means funds that are appropriated annually with the expectation that the funds shall continue to be appropriated annually.

G. "USOE" means the Utah State Office of Education.

H. "Weighted Pupil Unit (WPU)" means the unit of measure that is computed in accordance with the Minimum School Program Act for the purpose of distributing revenue on a uniform basis for each pupil.

 

R277-470-2. Authority and Purpose.

A. This rule is authorized under Utah Constitution, Article X, Section 3 which vests general control and supervision over public education in the Board, Section 53A-1a-513 which directs the Board to adopt rules for charter school funding and fund distribution, Section 53A-1a-502 which directs the Board to provide a timeline allowing prospective charter schools to seek sponsorship first from local boards and then from the Board, Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities, and 20 U.S.C., Section 8063(3) which directs the Board to submit specific information before charter schools are eligible to receive federal funds.

B. The purpose of this rule is to establish procedures for authorizing and funding charter schools, and to establish a timeline for the application process.

 

R277-470-3. Charter School Approval Timeline.

A. Applicants desiring to be recognized as charter schools under Section 53A-1a-502 et seq. shall first apply to the local school board of the district in which the charter school shall be located for approval.

B. New Century High Schools as defined under Section 53A-1a-502(1)(a)(ii) shall not be required to apply to a local board of education prior to applying to the Board. New Century High Schools shall only be subject to Board application deadlines.

C. Prospective charter schools may make application to the local school board.

D. Upon receiving a completed application from a prospective charter school, a local board shall have 45 calendar days to provide written acceptance or rejection of the charter school application. A prospective charter school may submit a revised application consistent with Section 53A-1a-515(5)(b) and (c). Charter schools may open only at the beginning of a traditional school year no less than ten months from the date that the charter is granted but no sooner than the following July.

E. If a local board rejects the application of a prospective charter school and the charter school desires Board approval, the prospective charter school shall make written application to the Board by July 15.

F. The Board shall accept or reject the charter school application in writing as soon as possible after receipt of the application, but no later than the Board's regularly scheduled September meeting for applications submitted by the July 15 deadline.

G. It is the intent of the Board that charter schools seek the support of local boards in the chartering process.

 

R277-470-4. Applications.

A. The charter school application form shall be approved and provided by the Board.

B. The charter school application shall designate the type of charter granted and the anticipated LEA status of the charter school.

C. A charter school application shall include the following:

(1) a description of the criteria or contributions or both used by the applicants to designate parents as founding members and a certified list of founding members;

(2) a description of the methods the applicants shall use to comply with its obligations as an LEA;

(3) a description of the methods the applicants shall use to notify all eligible students that the charter school is open for enrollment:

(a) A charter school shall provide notice that the school is open for enrollment to parents of potential students for a minimum of 30 days from the date the charter is granted by the Board or for a minimum of 30 days before the first day the school opens for classes.

(b) The charter school shall provide for written notice of rejection or acceptance of a student's application within 30 days after the notice period closes.

(c) The charter school shall follow additional requirements and timelines for student enrollment options consistent with Sections 53A-2-207 and 53A-2-208.

(4) All other information required under 20 U.S.C., Section 8063(3), Section 53A-1a-508(3), and the application, complete with Assurances, submitted to the Board.

 

R277-470-5. Funding.

A. State Funds: State funding for charter school students shall be paid by the USOE directly to charter schools.

(1) A public school that becomes a charter school shall receive funding on the same basis as it did prior to its conversion to a charter school.

(2) A charter school, chartered by a district, operating in a facility owned by a district, and not paying reasonable rent to that district shall, for funding purposes, be treated as a public school that has converted to a charter school.

(3) Charter schools are not eligible for Necessarily Existent Small Schools funding.

(4) Charter schools shall be considered collectively as a single school district when state program funding is distributed as a base amount to districts. The base amount for charter schools shall then be distributed among the charter schools on a per-pupil or per-WPU basis, depending on the formula.

B. Federal Funds: Charter schools are eligible for federal funding if they meet all applicable federal requirements and comply with relevant federal regulations.

C. One-Time Funds:

One-time funds appropriated by the Legislature or received from the federal government shall be distributed to charter schools consistent with state and federal law.

D. Ongoing Funds:

(1) Ongoing funds shall be distributed based on data submitted by charter schools consistent with the format and deadlines required of school districts.

(2) For its first school year, a charter school's state funding shall begin two months prior to the opening date specified in its contract or, funding shall begin in July if its opening date is prior to September 1. No charter school shall receive more than two months of funding prior to opening.

(a) Funding for the first two months of operation shall be based upon projected enrollment figures provided in the charter school's contract.

(b) Following the first two months of operations, funding for schools opening on or prior to September 1 shall be based on enrollment as of October 1. For schools opening after September 1, funding shall be based on actual enrollment as of the first school day of the month following the first full month of operation.

(c) Allocations for the first operating year shall be adjusted for the difference in funding generated by projected and actual enrollments.

(3) For its second and subsequent years of operation, charter schools shall be funded in the same manner as districts (prior year average daily membership plus growth.)

E. Transportation Funds:

(1) Charter schools are not eligible for to-and-from school transportation funds.

(2) A charter school that provides transportation to students shall comply with Utah law under Section 41-6-115.

(3) A school district may provide transportation for charter school students on a space-available basis on approved routes.

(a) Districts may not incur increased costs or displace eligible students to transport charter school students.

(b) A charter school student shall board and leave the bus only at existing designated stops on approved bus routes or at identified destination schools.

(c) A charter school student shall board and leave the bus at the same stop each day.

 

R277-470-6. Calculation of State Funding for Charter Schools.

A. The per pupil amount of state funding allocated to substitute for local property tax revenue shall be calculated as follows:

(1) Using data found in the most recent State Superintendent's Annual Report, calculate the sum of:

(a) school districts' maintenance and operations revenues derived from local property taxes, subtracting revenues from imposing a minimum basic tax rate;

(b) school districts' capital projects revenues derived from local property taxes; and

(c) school districts' expenditures for interest on debt service.

(2) Divide the sum derived from R277-470-6A(1) by the total actual average daily membership of all district schools. If the total state appropriation designated to charter schools to replace local funding is less than the amount determined in R277-470-6A(2), the amount paid to charter schools shall be adjusted on a percentage basis.]

R277-470. Charter Schools.

R277-470-1. Definitions.

A. "Board" means the Utah State Board of Education.

B. "Charter schools" means schools acknowledged as charter schools by local boards of education under Section 53A-1a-515 and this rule or by the Board under Section 53A-1a-505.

C. "Charter school application" means the official chartering document by which a prospective charter school seeks recognition and funding under Section 53A-1a-505. The application includes the basic elements of the charter between the charter school and the chartering board.

D. "Charter school deficiencies" means the following information:

(1) a charter school is not satisfying financial obligations as required by Section 53A-1a-505 in the charter school's written contractual agreement;

(2) a charter school is not providing required documentation following reasonable warning;

(3) compelling evidence of fraud or misuse of funds by charter board members or employees.

E. "Days" means calendar days, unless specifically designated.

F. "Expansion" means a proposed increase of students or grade level(s) in an operating charter school at a single location.

G. "Founding member" means an individual who has had a significant role in the development of the charter school application.

H. "Local education agency (LEA)" means a local board of education, combination of school districts, other legally constituted local school authority having administrative control and direction of free public education within the state, or other entities as designated by the Board, and includes any entity with state-wide responsibility for directly operating and maintaining facilities for providing free public education.

I. "No Child Left Behind (NCLB)" means the federal law under the Elementary and Secondary Education Act, Title IX, Part A, 20 U.S.C. 7801.

J. "On-going funds" means funds that are appropriated annually by the Legislature with the expectation that the funds shall continue to be appropriated annually.

K. "State Charter School Board" means the board designated in Section 53A-1a-501.5.

L. "USOE" means the Utah State Office of Education.

M. "Weighted Pupil Unit (WPU)" means the unit of measure that is computed in accordance with the Minimum School Program Act for the purpose of distributing revenue on a uniform basis for each pupil.

 

R277-470-2. Authority and Purpose.

A. This rule is authorized under Utah Constitution Article X, Section 3 which vests general control and supervision over public education in the Board, Section 53A-1a-513 which directs the Board to adopt rules for charter school funding and fund distribution, Section 53A-1-401(3) which allows the Board to adopt rules in accordance with its responsibilities, and 20 U.S.C., Section 8063(3) which directs the Board to submit specific information prior to charter schools' receipt of federal funds.

B. The purpose of this rule is to establish procedures for authorizing, funding, and monitoring charter schools and for repealing charter school authorizations. The rule also establishes timelines as required by law to provide for adequate training for beginning charter schools and to ensure parent involvement on charter school boards.

 

R277-470-3. Charter School Orientation and Training.

A. Beginning with the 2006-2007 school year, all charter school applicants shall attend orientation/training sessions designated by the State Charter School Board.

B. Orientation meetings shall be scheduled at least quarterly and be held regionally or be available electronically, as determined by the State Charter School Board.

C. Charter schools and applicants that attend orientation/training sessions shall be eligible for additional funds, upon approval, in an amount to be determined by the State Charter School Board provided through federal charter school funds or a General Fund appropriation to the extent of funds available. Charter school applicants that attend training and orientation sessions may receive priority for approval from the State Charter School Board and the Board.

D. Orientation/training sessions shall provide information including:

(1) charter school implementation requirements;

(2) charter school statutory and Board requirements;

(3) charter school financial and data management requirements;

(4) charter school legal requirements;

(5) federal requirements for charter school funding; and

(6) other items as determined by the State Charter School Board.

 

R277-470-4. Timelines.

A. Charter school starting date:

(1) The State Charter School Board shall accept a proposed starting date from a charter school applicant; or

(2) The State Charter School Board shall negotiate and recommend a starting date prior to recommending final charter approval to the Board.

(3) A local or state-chartered school shall be approved by September 30 of the school year prior to the school year it intends to serve students in order to be eligible for state funds.

(4) If students are not enrolled and attending classes by October 1, a charter school shall not receive funding from the state.

(5) Despite a charter school meeting starting dates, a charter school shall be required to satisfy R277-419 requirements of 180 days and 990 hours of instruction time, unless otherwise exempted by the Board under 53A-1a-511.

(6) The Board may, following review of information, approve the recommended starting date or determine a different charter school starting date after giving consideration to the State Charter School Board recommendation.

 

R277-470-5. Remedying Charter School Financial Deficiencies.

A. Upon receiving credible information of charter school financial deficiencies, the State Charter School Board shall immediately direct a review or audit through the board of the charter school, by State Charter School Board staff, by the Board auditor, or by an independent auditor.

B. The State Charter School Board or the Board through the State Charter School Board may direct a local charter board to take reasonable action to protect state or federal funds consistent with Section 53A-1a-510.

C. The State Charter School Board or the Board in absence of the State Charter School Board action may:

(1) allow a local charter school board to hold a hearing to determine financial responsibility and assist the local charter school board with the hearing process;

(2) immediately terminate the flow of state funds; or

(3) recommend cessation of federal funding to the school; or

(4) any combination of the foregoing (1), (2), and (3).

D. The recommendation by the State Charter School Board shall be made within 20 school days of receipt of complaint of deficiency(ies).

E. The State Charter School Board may have flexibility exercised for good cause in making recommendation(s) regarding deficiency(ies).

F. The Board shall consider the State Charter School Board recommendation for remedying a charter school's financial deficiency(ies) within 60 days of receipt of information from the State Charter School Board.

G. In addition to remedies provided for in Section 53A-1a-509, the State Charter School Board may provide for a remediation team to work with the school.

 

R277-470-6. Charter School Financial Practices and Training.

A. Charter school directors and business administrators and finance staff may attend all available USOE sponsored financial and statistical training sessions and meetings that are applicable to charter schools.

B. Local charter school board members and directors shall be invited to all applicable Board-sponsored training, meetings, and sessions for traditional school district financial personnel/staff if charter schools supply current staff information and addresses and indicate the desire to attend.

C. The Board shall work with other education agencies to encourage their inclusion of charter school representatives at training and professional development sessions.

D. A charter school shall appoint a business administrator consistent with Sections 53A-1-302 and 303. The business administrator shall be responsible for the submission of all financial and statistical information required by the Board.

E. The Board may interrupt disbursements to charter schools for failure to comply with financial and statistical information required by law or Board rules.

F. Charter school business and financial staff shall attend USOE business meetings for charter schools.

G. Charter schools are not eligible for necessarily existent small schools funding under Section 53A-17a-109(2) and R277-445.

H. Charter schools shall comply with R277-471, Oversight of School Inspections.

 

R277-470-7. Procedures and Timeslines for Schools Chartered by Local Boards to Convert to Board-Chartered Schools.

A. A charter school chartered initially by a local board of education shall notify the local board that it will seek Board approval for its charter with adequate notice for the local board to make staffing decisions.

B. A locally chartered school shall operate successfully for at least nine months prior to applying for conversion to a Board chartered school, consistent with R277-470-4A(3).

C. A charter school shall submit an application to convert from a locally chartered school to a Board chartered school to the State Charter School Board; the State Charter School Board shall provide an application for schools seeking to convert.

D. The application may require some or all of the following, depending upon the school's longevity, successful operation and existing documentation at the USOE:

(1) current board members and founding members;

(2) audit and financial records:

(a) record of state payments received;

(b) record of contributions received by the school from inception to date;

(c) test scores, including calendar of testing;

(d) current employees: identifying assignments and licensing status, if applicable;

(e) student lists, including home addresses or uniform student identifiers for current students;

(f) school calendar for previous school year and prospective school year;

(g) course offerings, if applicable;

(h) affidavits, signed by all board members providing or certifying (documentation may be required):

(i) the school's nondiscrimination toward students and employees;

(ii) the school's compliance with all state and federal laws;

(iii) that all information on application provided is complete and accurate;

(iv) that school meets/complies with all health and safety codes/laws;

(v) that the school is current with all required policies (personnel, salaries, and fees), including board minutes for the most recent three months;

(vi) that the school is operating consistent with the school's charter;

(vii) the school's Annual Yearly Progress status under No Child Left Behind;

(viii) that there are no outstanding lawsuits or judgments or identifying outstanding lawsuits filed or judgments against the school;

(ix) that the previous local board of education supports or does not support conversion;

E. Applications for conversion from locally chartered to Board chartered shall be considered by the State Charter School Board within 60 days of submission of complete applications, including all required documentation.

F. Following approval by the State Charter School Board, proposals of charter schools seeking conversion approval shall be submitted to the Board for review.

G. If an applicant is not accepted for conversion, the State Charter School Board shall provide adequate information for the charter school to review and revise its proposal and reapply no sooner than nine months from the previous conversion application.

H. The Board shall consider the conversion application within 45 days of State Charter School Board approval, or next possible monthly Board meeting, whichever is sooner.

I. Final approval or denial of conversion is final administrative action by the Board.

 

R277-470-8. Charter Schools and NCLB Funds.

A. Charter schools that desire to receive NCLB funds shall comply with the requirements of R277-470-8.

B. To obtain its allocation of NCLB formula funds, a charter school shall submit a completed Charter School Economically Disadvantaged Report to the USOE by November 15 of the fiscal year for which funding for NCLB funds are sought.

C. The Charter School Economically Disadvantaged Report shall:

(1) state the number of economically disadvantaged students enrolled in the school as of the last operating day of the immediately preceding October by the students' district of residence; and

(2) be signed by the charter school business administrator.

D. If the school operates a federal school lunch program, the total number of students on the Charter School Economically Disadvantaged Report shall match the total number of free and reduced priced lunch students reported by the same deadline to the USOE through the Free and Reduced Price Lunch Enrollment Survey.

E. If the school does not operate a federal school lunch program, the school:

(1) shall determine the economically disadvantaged status for its students on the basis of criteria no less stringent than those established by the U.S. Department of Agriculture for identifying students who qualify for reduced price lunch for the fiscal year in question; or

(2) may use the Charter School Declaration of Household Income form provided by the USOE for this purpose.

F. A school which does not use the form shall maintain equivalent documentation in its records, which may be subject to audit.

 

R277-470-9. Charter School Parental Involvement.

A. Charter schools shall encourage and maintain active involvement of parents of current charter school students.

B. Beginning with the 2007-2008 school year, all charter schools shall have at least one elected parent representative chosen by and from parents of students currently attending the charter school to serve on a rotating basis as a voting member on the charter school's governing board with additional parents of students currently attending the charter school totaling a minimum of twenty-five percent of the governing board.

C. A charter school's charter shall provide the election process and selection process for selecting the required parent representative(s) for the governing board and the rotating terms for elected and identified parents.

D. Charter schools that apply for School LAND Trust funds shall have a majority of parents elected from parents of students currently attending the charter school on the committee designated to make decisions about School LAND Trust funds consistent with R277-477-3D.

 

R277-470-10. Charter School Oversight and Monitoring.

A. The State Charter School Board shall provide direct oversight to the state's charter schools, including:

(1) annual review of student achievement indicators for all schools, disaggregated for various student subgroups;

(2) quarterly review of summary financial records and disbursements;

(3) annual review conducted through site visits or random audits of personnel matters such as employee licensure and evaluations; and

(4) regular review of other matters specific to effective charter school operations as determined by the USOE charter school staff.

B. The Board retains the right to review or repeal charter school authorization based upon factors that may include:

(1) financial deficiencies or irregularities; or

(2) persistently low student achievement inconsistent with comparable schools; or

(3) failure of the charter school to comply with state law, Board rules, or directives.

 

R277-470-11. Expansion for Approved Charter Schools.

A. The following shall apply to requests for expansion for approved and operating charter schools:

(1) The school satisfies all requirements of state law and Board rule.

(2) The approved Charter Agreement shall provide for an expansion consistent with the request; or

(3) The charter school governing board has submitted a formal amendment request to the State Charter School Board that provides documentation that:

(a) the school district in which the charter school is located has been notified of the proposed expansion in the same manner as required in Section 53A-1s-505(1);

(b) the school can accommodate the expansion within existing facilities or that necessary structures will be completed, meeting all requirements of law and Board rule, by the proposed date of operation.

(c) the school currently satisfies all requirements of state law and Board rule including adequate insurance, adequate parental involvement, compliance with all fiscal requirements, and adequate services for all special education students at the school;

(d) students at the school are performing on standardized assessments at least consistent with comparable students at comparable schools.

(e) adequate qualified administrators or staff or both shall be available to meet the needs of the increased number of students at the time the expansion is implemented.

B. The charter school governing board shall file a request with the State Charter School Board for an expansion no fewer than nine months prior to the date of the proposed implementation of the expansion.

 

R277-470-12. Transportation.

A. Charter schools are not eligible for to-and-from school transportation funds.

B. A charter school that provides transportation to students shall comply with Utah law Section 53-8-211.

C. A school district may provide transportation for charter school students on a space-available basis on approved routes.

(1) School districts may not incur increased costs or displace eligible students to transport charter school students.

(2) A charter school student shall board and leave the bus only at existing designated stops on approved bus routes or at identified destination schools.

(3) A charter school student shall board and leave the bus at the same stop each day.

(4) Charter school students and their parents who participate in transportation by the school district as guests shall receive notice of applicable district transportation policies and may forfeit with no recourse the privilege of transportation for violation of the policies.

 

R277-470-13. Appeal Process to State Board of Education and Miscellaneous Provisions.

A. Charter schools denied a charter by the State Charter School Board may appeal to the Board under Section 53A-1a-505(1)(e)(ii).

B. Appeals shall be made within 20 days of the State Charter School Board's final administrative recommendation.

C. Appeals shall only be made in writing and shall be considered by the Board or a committee of Board members designated by the Board within 45 days of receipt by the Board.

D. Only final administrative charter decisions, including approval and proposals for expansion, may be appealed. State Charter School Board directives, requests for additional information, or preliminary decisions about charter school applications shall not be considered by the Board.

E. The Board's decision shall be made in writing to the State Charter School Board and the appellant as soon as possible but no more than 5 days following consideration by the full Board.

F. The Board's action is the final administrative action.

G. The State Charter School Board and the Board may, in the recommendation and approval process, consider and give priority to charter school applications that target underserved student populations, among traditional public schools and operating charter schools.

(1) Underserved student populations may include low income students, students with disabilities, students who need English Language Learners (ELL) services, or students in remote areas of the state who have limited access to the full range of academic courses;

(2) Priority may also be given to charter school applicants for proposed schools that do not have other charter schools within a 50 mile radius; and

(3) To be given priority, the charter school application and proposed employee and site information shall support the school's designated focus.

 

KEY: education, charter schools

Date of Enactment or Last Substantive Amendment: [October 22, 2003]2006

Notice of Continuation: October 31, 2003

Authorizing, and Implemented or Interpreted Law: Art X, Sec 3; 53A-1a-513; 53A-1a-515; 53A-1a-502; 53A-1a-505; 53A-1-401(3); 53A-1a-510; 53A-1a-509; 41-6-115