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06/05/03 1972s

06/05/03 2021s

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2003 SESSION

03-0092

04/09

HOUSE BILL 135-FN-LOCAL

COMMITTEE: Education

AMENDED ANALYSIS

This bill establishes a 10-year pilot program for the approval of up to 20 charter schools by the state board of education and creates certain exemptions from existing law relative to the approval process, while subjecting charter schools approved by the state board of education to the same oversight and reporting requirements found in the existing charter school laws. The bill provides that funding for charter schools shall be through reimbursement anticipation notes or cash tuition payments directly payable to the charter school, and establishes a state matching grant program for charter schools. The bill also provides that a charter school shall be considered to be a public charter school.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10apr03... 1066h

05/22/03 1664s

06/05/03 1972s

06/05/03 2021s

24jun03... 2094CofC

30jun03... 2294eba

03-0092

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

Be it Enacted by the Senate and House of Representatives in General Court convened:

273:1 New Section; Pilot Program; Charter Schools and Open Enrollment Schools; Alternative Procedure for Approval of Charter Schools. Amend RSA 194-B by inserting after section 3 the following new section:

194-B:3-a Charter School Approval by State Board of Education; Pilot Program.

I. There is established a 10-year pilot program which authorizes the state board of education to grant charter status under this section. Beginning July 1, 2003, the state board of education shall be authorized to grant no more than 20 state charter school applications during the 10-year pilot program.

II. The proposed charter school application shall be presented for approval directly to the state board of education by the applicant for the prospective charter school. The content of such application shall conform to the requirements set forth in RSA 194-B:3, II(a)-(bb). The department of education shall notify an applicant of any missing information within 10 days of the initial filing. The applicant shall file any missing information before the department reviews the application.

III. The department of education may forward the proposed application to the applicant, along with a written statement detailing any suggested amendments or modifications.

IV. The state board of education shall either approve or deny an application based on the criteria set forth in RSA 194-B:1-a. Approval of an application constitutes the granting of charter status and the right to operate as a charter school. The state board of education shall notify all applicants of its decision, and shall include in any notice of denial a statement that the applicant may reapply under RSA 194-B:3, RSA 194-B:4, or under this section in a subsequent year.

V.(a) The following provisions of law shall not apply to charter school applications proposed under this section, or to charter schools granted approval for operation under this section:

(1) RSA 194-B:3, II(cc).

(2) RSA 194-B:3, III-IV.

(3) RSA 194-B:3, XI.

(4) RSA 194-B:4.

(5) RSA 194-B:15, II.

(b) Except as provided in this paragraph, the provisions of RSA 194-B shall apply to charter schools approved for operation by the state board of education under this section.

(c) Not more than 10 percent of the resident pupils in any grade shall be eligible to transfer to a charter school in any school year without the approval of the local school board.

273:2 Charter School Funding. Amend RSA 194-B:11, I to read as follows:

I. There shall be no tuition charge for any pupil attending an open enrollment or charter conversion school located in that pupil's resident district. Funding limitations in this chapter shall not be applicable to charter conversion or open enrollment schools located in a pupil's resident district. For any other charter or open enrollment school authorized by the school district, the pupil's resident district shall pay to such school an amount equal to not less than 80 percent of that district's average cost per pupil as determined by the department of education using the most recent available data as reported by the district to the department. For any charter school authorized by the state board of education, the pupil's resident district shall pay tuition beginning July 1, 2004 and every fiscal year thereafter, in an amount per pupil equal to the amount determined in RSA 198:40, I. Tuition amounts shall be prorated on a per diem basis for pupils attending a school for less than a full school year. To the extent permitted by law, [funding for a pupil attending a charter or open enrollment school shall be paid on the same time schedule as the resident district,] tuition payments shall coincide with the distribution of adequacy grants under RSA 198:42 or on such other terms as [the school and the funding source may find] are mutually acceptable.

273:3 New Paragraphs; Charter School Funding. Amend RSA 194-B:11 by inserting after paragraph VIII the following new paragraphs:

IX.(a) The pupil's resident school district or department of education shall pay tuition in cash or may issue reimbursement anticipation notes as set forth in RSA 198:20-d for each year in which a resident pupil attends a charter school. Unless otherwise agreed upon, cash payment shall coincide with the schedule for grant payment set forth in RSA 198:42. The reimbursement anticipation note shall be in the amount specified for the year of attendance at the charter school, and shall be issued to the charter school prior to the beginning of the school year of the charter school. Each reimbursement anticipation note issued shall be for a term of 3 years from the date of issue or may be redeemable by the charter school at such time as the charter school or the pupil's resident school district receives adequate education grant amounts pursuant to RSA 198:42.

(b) Upon receipt of such reimbursement anticipation notes, the charter school may elect to borrow funds for the purpose of meeting general operating and maintenance expenses for charter school operations.

X. There shall be an appropriation in the fiscal year beginning on July 1, 2003 for the establishment of charter schools under this section. Charter schools which are eligible for grants under this program shall match funds provided by the state through private contributions in order to receive funding that exceeds the state's average per pupil cost for the grade level weight of the pupil. State funds shall be provided in addition to any other sums provided by the state. Grants under this section shall be administered and determined by the state board of education which shall have the authority to develop a grant application, written procedures and criteria used to determine eligibility for grants, and procedures for the administration of grants by recipients, including reporting requirements. The total grants provided under this program shall not exceed the amount of money appropriated in the budget, or transferred, or provided by gift or grant to the state for this purpose.

XI. Any money appropriated in the budget for matching charter school grants that remains unused after the department of education issues matching grants to eligible recipients under paragraph X shall be used to provide a one-year transitional grant to public school districts that have lost pupils as a result of the establishment of a charter school, and have paid tuition to the charter school in cash pursuant to subparagraph IX(a). For the first year in which a public school pupil leaves the public school and enrolls in a charter school, the school district that loses the pupil shall be eligible for a charter school transitional grant beginning July 1, 2004 and every fiscal year thereafter, in an amount per pupil equal to the amount determined in RSA 198:40, I. Such transitional grants shall be administered by the state board of education which shall have the authority to determine eligibility and the amount of money to be awarded to school districts under this section, subject to the amount appropriated in the budget.

273:4 New Paragraph; Charter and Open Enrollment Schools; Duties of the Board of Trustees. Amend RSA 194-B:5 by inserting after paragraph V the following new paragraph:

VI. The meetings and proceedings of the board of trustees shall be held in public session pursuant to RSA 91-A:2, except for those meetings or proceedings designated as nonpublic sessions as defined in RSA 91-A:3, II.

273:5 New Paragraph; Charter Schools; Grievance Procedures. Amend RSA 194-B:15 by inserting after paragraph II the following new paragraph:

III. An individual or group aggrieved by a decision of the board of trustees of a charter school authorized under RSA 194-B:3-a shall first present its complaint to the board of trustees. If the board's decision remains unfavorable, an individual or group may appeal such decision in accordance with the same procedure for adjudicating disputes between an individual and a local school board.

273:6 New Paragraph; Charter Schools; Authority and Duties of Board of Trustees. Amend RSA 194-B:5 by inserting after paragraph IV the following new paragraph:

IV-a. For charter schools authorized under RSA 194-B:3-a, the board of trustees shall report to the state board of education, or its designee, on a quarterly basis regarding the charter school's progress in achieving its stated goals. The charter school may request technical assistance or advice from the department of education. The department of education shall assist the charter school in developing a quarterly report that is mutually acceptable, provided that each quarterly report shall include a financial statement. A copy of the quarterly report shall be available to participating school districts and parents of children attending the charter school.

273:7 Repeal. The following are repealed:

I. RSA 194-B:3-a, relative to direct approval of charter schools by the state board of education.

II. RSA 194-B:15, III, relative to a grievance procedure for charter schools authorized by the state board of education.

III. RSA 194-B:5, IV-a, relative to the reporting requirement for charter schools authorized by the state board of education.

273:8 Charter Schools; Employees. Amend RSA 194-B:14, III to read as follows:

III. A public charter school may choose to participate in the state teacher retirement system, and service in a public charter school shall be deemed creditable service under RSA 100-A:4.

273:9 Effective Date.

I. Section 7 of this act shall take effect July 1, 2013.

II. The remainder of this act shall take effect July 1, 2003.

(Approved: July 18, 2003)

(Effective Date: I. Section 7 shall take effect July 1, 2013