Bill Text: IA SF222 | 2011-2012 | 84th General Assembly | Introduced

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Bill Title: A bill for an act relating to the establishment, funding, and bonding authority of public charter schools and making an appropriation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF222 Detail]

Download: Iowa-2011-SF222-Introduced.html

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Senate File 222 - Introduced
SENATE FILE 222
BY McKINLEY
A BILL FOR
An Act relating to the establishment, funding, and bonding
authority of public charter schools and making an
appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 16.163 Authority to issue public
charter school facilities bonds and notes.
The authority shall assist a public charter school
established under chapter 257A, and the authority shall have
all of the powers delegated to it in a chapter 28E agreement
by a governing board of a public charter school established
pursuant to chapter 257A, or a private developer contracting
with a public charter school established pursuant to chapter
257A, to develop a public charter school facility, with respect
to the issuance or securing of bonds or notes as provided in
section 257A.11, subsection 4.
Sec. 2. NEW SECTION . 257A.1 Short title.
This chapter may be cited as the “Public Charter Schools
Act” .
Sec. 3. NEW SECTION . 257A.2 Legislative findings and
declaration of purpose.
1. The general assembly finds and declares the following:
a. It is in the best interests of the people of the state
to provide all children with public schools that reflect high
expectations and to create conditions in all schools where
these expectations can be met.
b. Education reform is necessary to strengthen the
performance of elementary and secondary public school students.
c. Those who know students best, their parents and
educators, make the best education decisions regarding the
students.
d. Parents and educators have a right and a responsibility
to participate in the education institutions which serve Iowa’s
children.
e. Different students learn differently and public school
programs should be customized to fit the needs of individual
students.
f. There are parents, educators, and other citizens in the
state willing and able to offer educational programs but who
lack a channel through which they can direct their efforts.
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2. The purpose of establishing public charter schools in
this state is to accomplish the following:
a. Improve student learning by creating high-quality schools
with high standards for student performance.
b. Close achievement gaps between high-performing and
low-performing groups of public school students.
c. Increase high-quality educational opportunities within
the public education system for all students, especially those
at risk of academic failure.
d. Create new professional opportunities for teachers,
school administrators, and other school personnel that allow
them to have a direct voice in the operation of their schools.
e. Encourage the use of different, high-quality models of
teaching, governing, scheduling, or other aspects of schooling
that meet a variety of student needs.
f. Allow public schools freedom and flexibility in exchange
for exceptional levels of results-driven accountability.
g. Provide students, parents, community members, and local
entities with expanded opportunities for involvement in the
public education system.
h. Encourage the replication of successful public charter
schools.
3. All public charter schools in the state established under
this chapter are public schools and are part of the state’s
public education system. The provisions of this chapter should
be interpreted liberally to support the findings and purposes
of this section and to advance a renewed commitment by the
state to the mission, goals, and diversity of public education.
Sec. 4. NEW SECTION . 257A.3 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Applicant” means any person or group of persons that
develops and submits an application for a public charter school
to an authorizer.
2. “Application” means a proposal from an applicant to
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an authorizer to enter into a charter contract whereby the
proposed school obtains public charter school status.
3. “At-risk student” means a student who has an economic
or academic disadvantage that requires special services and
assistance to succeed in educational programs. The term
includes but is not limited to students who are members
of economically disadvantaged families, students who are
identified as having special educational needs, students who
are limited in English proficiency, students who are at risk
of dropping out of high school, and students who do not meet
minimum standards of academic proficiency.
4. “Authorizer” means an entity authorized under this
chapter to review applications, decide whether to approve
or reject applications, enter into charter contracts with
applicants, oversee public charter schools, and decide whether
to renew, not renew, or revoke charter contracts.
5. “Charter contract” means a fixed-term, renewable
contract between a public charter school and an authorizer that
outlines the roles, powers, responsibilities, and performance
expectations for each party to the contract.
6. “Commission” means the Iowa public charter school
commission created pursuant to section 257A.6.
7. “Conversion public charter school” means a charter school
that existed as a noncharter public school before becoming a
public charter school.
8. “Education service provider” means a for-profit
education management organization, nonprofit charter management
organization, school design provider, or any other partner
entity with which a public charter school intends to contract
for educational design, implementation, or comprehensive
management.
9. “Governing board” means the independent board of a public
charter school that is party to the charter contract with the
authorizer and whose members have been elected or selected
pursuant to the public charter school’s application.
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10. “Local school board” means a school board exercising
management and control of a local school district pursuant to
state statutes.
11. “Local school district” means a public agency that
establishes and supervises one or more public schools within
its geographical limits pursuant to state statutes.
12. “Noncharter public school” means a public school that is
under the direct management, governance, and control of a local
school board.
13. “Parent” means a parent, guardian, or other person or
entity having legal custody of a child.
14. “Public charter school” means a public school
established under this chapter that meets the following
criteria:
a. Has autonomy over decisions including but not limited to
matters concerning finance, personnel, scheduling, curriculum,
and instruction.
b. Is governed by an independent governing board.
c. Is established and operating under the terms of a charter
contract between the school’s board and its authorizer.
d. Is a school to which parents choose to send their
children.
e. Admits students on the basis of a lottery if more
students apply for admission than can be accommodated.
f. Provides a program of education that includes one or
more of the following: preschool, prekindergarten, any grade
or grades from kindergarten through grade twelve, and adult
community, continuing, and vocational education programs.
g. Operates in pursuit of a specific set of educational
objectives as defined in its charter contract.
h. Operates under the oversight of its authorizer in
accordance with its charter contract.
15. “Start-up public charter school” means a public charter
school that did not exist as a noncharter public school prior
to becoming a public charter school.
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16. “Student” means any child who is eligible for attendance
in public schools in the state.
17. “Virtual public charter school” means a public charter
school that offers educational services predominantly through
the internet.
Sec. 5. NEW SECTION . 257A.4 Enrollment.
1. Enrollment requirements. Open enrollment and lottery
requirements are as follows:
a. A public charter school shall be open to any student
residing in the state.
b. A school district shall not require any student enrolled
in the school district to attend a public charter school.
c. A public charter school shall not limit admission based
on ethnicity, national origin, religion, gender, income level,
disabling condition, proficiency in the English language, or
academic or athletic ability.
d. A public charter school may limit admission to students
within a given age group or grade level and may be organized
around a special emphasis, theme, or concept as stated in the
school’s application.
e. A public charter school shall enroll all students who
wish to attend the school, unless the number of students
exceeds the capacity of a program, class, grade level, or
building.
f. If capacity is insufficient to enroll all students who
wish to attend the school, the public charter school shall
select students through a lottery.
2. Enrollment preferences. Enrollment preferences include
the following:
a. Any noncharter public school converting partially or
entirely to a public charter school shall adopt and maintain
a policy giving enrollment preference to students who reside
within the former attendance area of that public school.
b. A public charter school shall give enrollment preference
to students enrolled in the public charter school the previous
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school year and to siblings of students already enrolled in the
public charter school. An enrollment preference for returning
students excludes those students from entering into a lottery.
c. A public charter school may give enrollment preference to
children of a public charter school’s founders, governing board
members, and full-time employees, so long as they constitute no
more than ten percent of the school’s total student population.
3. Focusing of mission. This section does not preclude
the formation of a public charter school whose mission is
focused on serving students with disabilities, students of
the same gender, students who pose such severe disciplinary
problems that they warrant a specific educational program, or
students who are at risk of academic failure. If capacity is
insufficient to enroll all students who wish to attend such
school, the public charter school shall select students through
a lottery.
4. Credit transferability. If a student who was previously
enrolled in a public charter school enrolls in another public
school in this state, the student’s new school shall accept
credits earned by the student in courses or instructional
programs at the public charter school in a uniform and
consistent manner and according to the same criteria that are
used to accept academic credits from other public schools.
5. Information to parents and the general public. A local
school district shall provide or publicize to parents and
the general public information about public charter schools
authorized by the district as an enrollment option within the
district to the same extent and through the same means that the
district provides and publicizes information about noncharter
public schools in the district.
6. Determination of student capacity of public charter
schools. An authorizer shall not restrict the number of
students a public charter school may enroll. The capacity of
the public charter school shall be determined annually by the
governing board of the public charter school in conjunction
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with the authorizer and in consideration of the public charter
school’s ability to facilitate the academic success of its
students, to achieve the other objectives specified in the
charter contract, and to ensure that its student enrollment
does not exceed the capacity of its facility or site.
Sec. 6. NEW SECTION . 257A.5 Authorizers.
1. Authority to authorize. The state public charter school
commission may authorize public charter schools anywhere in the
state, provided that the commission fulfills requirements of
all public charter school authorizers under this chapter.
2. Eligible authorizing entities. The following eligible
authorizing entities may register with the commission:
a. A local school board for chartering authority within the
boundaries of the local school district overseen by the local
school board.
b. Governing boards of accredited public or private
postsecondary institutions, including community colleges and
four-year colleges and universities for statewide, regional,
or local chartering authority, in accordance with each
institution’s regular operating jurisdiction.
c. A city may apply to the commission for chartering
authority within the city’s jurisdiction.
d. Governing boards of nonprofit or charitable
organizations, which are exempt from federal taxes under
section 501(c)(3) or 501(c)(6) of the Internal Revenue Code,
for statewide, regional, or local chartering authority.
Nonpublic sectarian or religious organizations, and any other
charitable organization which in their federal IRS Form 1023,
Part IV, describe activities indicating a religious purpose,
are not eligible to apply to become an authorizer.
3. Authorizer powers, duties, and liabilities.
a. Authorizers are responsible for executing, in accordance
with this chapter, the following essential powers and duties:
(1) Soliciting and evaluating charter applications.
(2) Approving quality charter applications that meet
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identified educational needs and promote a diversity of
educational choices.
(3) Declining to approve weak or inadequate charter
applications.
(4) Negotiating and executing sound charter contracts with
each approved public charter school.
(5) Monitoring, in accordance with charter contract terms,
the performance and legal compliance of public charter schools.
(6) Determining whether each charter contract merits
renewal, nonrenewal, or revocation.
b. An authorizing entity may delegate its duties to offices,
employees, and contractors.
c. Regulation by authorizers shall be limited to these
powers and duties, and consistent with the spirit and intent of
this chapter.
d. An authorizing entity, members of the board of an
authorizer in their official capacity, and employees of an
authorizer are immune from civil and criminal liability with
respect to all activities related to a public charter school
they authorize.
4. Principles and standards for charter authorizing. All
authorizers shall be required to develop and maintain
chartering policies and practices consistent with nationally
recognized principles and standards for quality charter
authorizing in all major areas of authorizing responsibility
including: organizational capacity and infrastructure;
soliciting and evaluating charter applications; performance
contracting; ongoing public charter school oversight and
evaluation; and charter renewal decision-making. Authorizers
shall carry out all their duties under this chapter in a
manner consistent with such nationally recognized principles
and standards and with the spirit and intent of this chapter.
Evidence of material or persistent failure to do so shall
constitute grounds for losing charter authorizing powers.
5. Authorizer reporting. Every authorizer shall be required
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to submit to the commission and the general assembly an annual
report summarizing:
a. The authorizer’s strategic vision for chartering and
progress toward achieving that vision.
b. The academic and financial performance of all operating
public charter schools overseen by the authorizer, according
to the performance expectations for public charter schools set
forth in this chapter.
c. The status of the authorizer’s public charter school
portfolio, identifying all public charter schools in each of
the following categories: approved, but not yet open; and
operating, renewed, transferred; and revoked, not renewed,
voluntarily closed, or never opened.
d. The authorizing functions provided by the authorizer
to the public charter schools under its purview, including
the authorizer’s operating costs and expenses detailed in
annual audited financial statements that conform with generally
accepted accounting principles.
e. The services purchased from the authorizer by the public
charter schools under its purview, including an itemized
accounting of the actual costs of these services, as required
in subsection 9.
6. Authorizer funding.
a. To cover authorizer costs for overseeing public charter
schools in accordance with this chapter, the commission shall
remit to each authorizer an oversight fee for each public
charter school it authorizes. The oversight fee shall be drawn
from and calculated as a uniform percentage of the per-student
operational funding allocated to each public charter school
under section 257A.10, subsection 2, not to exceed three
percent of each public charter school’s per-student funding
in a single school year. The commission shall establish a
statewide formula for authorizer funding, which shall apply
uniformly to every authorizer in the state. The commission
shall submit the formula, and any succeeding amendments to
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the formula, to the department of management, the general
assembly, and the governor, and shall provide any additional
information required by the department of management.
The formula shall be established by statute prior to the
appropriation or distribution of state funds for purposes of
establishing a public charter school. The commission may
establish a sliding scale for authorizer funding, with the
funding percentage decreasing after the authorizer has achieved
a certain threshold, such as after a certain number of years
of authorizing or after a certain number of schools has been
authorized.
b. An authorizer’s oversight fee shall not include any
costs incurred in delivering services that a public charter
school may purchase at its discretion from the authorizer.
The authorizer shall use its funding provided under this
section exclusively for the purpose of fulfilling authorizing
obligations in accordance with this chapter.
c. The commission shall annually review the effectiveness of
the state formula for authorizer funding, and shall adjust the
formula if necessary to maximize public benefit and strengthen
the implementation of this chapter.
7. Conflicts of interest. An employee, trustee, agent,
or representative of an authorizer shall not simultaneously
serve as an employee, trustee, agent, representative, vendor,
or contractor of a public charter school authorized by that
authorizer.
8. Exclusivity of authorizing functions and rights. A
governmental or other entity, other than those expressly
granted chartering authority as set forth in this chapter or
chapter 256F, shall not assume any charter authorizing function
or duty in any form, unless expressly allowed by law.
9. Services purchased from authorizer —— itemized accounting.
a. With the exception of oversight services as required by
subsection 6, a public charter school shall not be required to
purchase services from its authorizer as a condition of charter
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approval or of executing a charter contract, and any such
condition shall not be implied.
b. A public charter school may, at its discretion, choose
to purchase services from its authorizer. In such event, the
public charter school and authorizer shall execute an annual
service contract, separate from the charter contract, stating
the parties’ mutual agreement concerning any services to be
provided by the authorizer and any service fees to be charged
to the public charter school. An authorizer shall not charge
more than market rates for services provided to a public
charter school.
c. Within thirty days after the end of each fiscal year,
an authorizer shall provide to each public charter school it
oversees an itemized accounting of the actual costs of services
purchased by the public charter school from the authorizer.
Any difference between the amount initially charged to the
public charter school and the actual cost shall be reconciled
and paid to the owed party. If either party disputes the
itemized accounting, any charges included in such accounting,
or charges to either party, the disputing party is entitled to
request a third-party review at its own expense. The review
shall be conducted by the commission, whose determination shall
be final.
Sec. 7. NEW SECTION . 257A.6 Iowa public charter school
commission.
1. An Iowa public charter school commission is created as an
independent state agency with statewide chartering jurisdiction
and authority.
2. The mission of the commission shall be to authorize
high-quality public charter schools throughout the state,
particularly schools designed to expand opportunities for
at-risk students, consistent with the purposes of this chapter.
3. The commission shall consist of nine members serving
three-year terms. Five members shall be appointed by the
governor; one member shall be appointed by the president of
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the senate after consultation with the majority leader; one
member shall be appointed by the minority leader of the senate;
one member shall be appointed by the speaker of the house
of representatives; and one member shall be appointed by the
minority leader of the house of representatives. A member
shall not serve more than seven consecutive years. In making
the appointments, the governor, the president of the senate,
the speaker of the house of representatives, and the respective
minority leaders shall ensure statewide geographic diversity
among commission members.
4. Members appointed to the commission shall collectively
possess strong experience and expertise in public and
nonprofit governance, management and finance, public school
leadership, assessment, and curriculum and instruction, and
public education law. All members of the commission shall
have demonstrated understanding of and commitment to charter
schooling as a strategy for strengthening public education.
5. Notwithstanding subsection 3, to establish staggered
terms of office, the governor and the senate and house
of representatives appointing authorities as provided in
subsection 3 shall each collectively appoint three members to
an initial term of one year, three members to an initial term
of two years, and three members to an initial term of three
years. The initial appointments shall be made no later than
May 1, 2012. This subsection is repealed July 1, 2015.
6. A member of the commission may be removed for any cause
that renders the member incapable or unfit to discharge the
duties of the office. Whenever a vacancy on the commission
exists, the original appointing authority shall appoint a
member for the remaining portion of the term.
7. The commission may receive and expend gifts, grants,
and donations of any kind from any public or private entity to
carry out the purposes of this chapter, subject to the terms
and conditions under which they are given, provided that all
such terms and conditions are permissible under law.
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8. The commission shall operate with dedicated resources
and staff qualified to execute the day-to-day responsibilities
of public charter school authorizing in accordance with this
chapter.
9. Chartering authority registration of local school boards.
a. The commission shall publicize to all local school boards
the opportunity to register with the state for chartering
authority within the local school districts they oversee. By
October 1 annually, the commission shall provide information
about the opportunity, including a registration deadline, to
all local school boards. To register as a charter authorizer
in its local school district, each interested local school
board shall submit the following information in a format to be
established by the commission:
(1) Written notification of intent to serve as a charter
authorizer in accordance with this chapter.
(2) An explanation of the local school board’s strategic
vision for chartering.
(3) An explanation of the local school board’s budget and
personnel capacity and commitment to execute the duties of
quality charter authorizing, in accordance with this chapter.
(4) An explanation of how the local school board will
solicit public charter school applicants, in accordance with
this chapter.
(5) A description or outline of the performance framework
the local school board will use to guide the establishment of a
charter contract and for ongoing oversight and evaluation of
public charter schools, consistent with the requirements of
this chapter.
(6) A draft of the local school board’s renewal, revocation,
and nonrenewal processes, consistent with section 257A.8,
subsection 3.
(7) A statement of assurance that the local school board
commits to serving as a charter authorizer in fulfillment of
the expectations, spirit, and intent of this chapter, and
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will fully participate in any authorizer training provided or
required by the state.
b. Within sixty days of receipt of a local school board’s
duly submitted registration materials, the commission shall
register the local school board as a charter authorizer
within the local school board’s local school district, and
shall provide the local school board a letter confirming its
registration as a charter authorizer. A local school board
shall not engage in any charter-authorizing functions without
current registration as a charter authorizer with the state.
Once registered, the local school board’s registration as a
charter authorizer shall continue from year to year, provided
that the local school board fulfills all charter-authorizing
duties and expectations set forth in this chapter and remains
an authorizer in good standing with the commission.
10. Chartering authority application for eligible entities.
a. The commission shall establish the annual application
and approval process, including cycles and deadlines during the
fiscal year, for all entities eligible to apply for chartering
authority. By December 1 of each year, the commission shall
make available information and guidelines for all eligible
entities concerning the opportunity to apply for chartering
authority under this chapter. The application process
shall require each interested eligible entity to submit an
application that clearly explains or presents the following
elements:
(1) Written notification of intent to serve as a charter
authorizer in accordance with this chapter.
(2) The applicant entity’s strategic vision for chartering.
(3) A plan to support the vision presented, including
explanation and evidence of the applicant entity’s budget
and personnel capacity and commitment to execute the
responsibilities of quality charter authorizing, in accordance
with this chapter.
(4) A draft or preliminary outline of the request for
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proposals that the applicant entity would, if approved as a
charter authorizer, issue to solicit public charter school
applicants, consistent with section 257A.7, subsection 1.
(5) A draft of the performance framework that the applicant
entity would, if approved as a charter authorizer, use to
guide the establishment of a charter contract and for ongoing
oversight and evaluation of public charter schools, consistent
with the requirements of this chapter.
(6) A draft of the applicant entity’s renewal, revocation,
and nonrenewal processes, consistent with section 257A.8,
subsection 3.
(7) A statement of assurance that the applicant entity
seeks to serve as a charter authorizer in fulfillment of the
expectations, spirit, and intent of this chapter, and that
if approved as a charter authorizer, the entity will fully
participate in any authorizer training provided or required by
the state.
(8) A statement of assurance that the applicant will
ensure public accountability and transparency in all matters
concerning their charter-authorizing practices, decisions, and
expenditures.
b. By February 1 of each year, the commission shall
decide whether to grant or deny chartering authority to each
applicant. The commission shall make its decisions on the
merits of each applicant’s proposal and plans.
c. Within thirty days of the commission’s decision, the
commission shall execute a renewable authorizing contract with
each entity it has approved for chartering authority. The
initial term of each authorizing contract shall be six years.
The authorizing contract shall specify each approved entity’s
agreement to serve as a charter authorizer in accordance with
the expectations of this chapter, and shall specify additional
performance terms based on the applicant’s proposal and plan
for chartering. An approved entity shall not commence charter
authorizing without an authorizing contract in effect.
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11. Oversight of public charter school authorizers.
a. The commission shall be responsible for overseeing the
performance and effectiveness of all authorizers established
under this chapter.
b. In accordance with section 257A.5, subsection 5, every
authorizer shall be required to submit to the commission and
the general assembly an annual report. The commission shall,
by February 1 annually, communicate to every authorizer the
requirements for the format, content, and submission of the
annual report.
c. Persistently unsatisfactory performance of an
authorizer’s portfolio of public charter schools, a pattern
of well-founded complaints about the authorizer or its public
charter schools, or other objective circumstances may trigger a
special review by the commission. In reviewing or evaluating
the performance of authorizers the commission shall apply
nationally recognized principles and standards for quality
charter authorizing. If at any time the commission finds that
an authorizer is not in compliance with an existing charter
contract, its authorizing contract with the commission, or
the requirements of all authorizers under this chapter, the
commission shall notify the authorizer in writing of the
identified problems, and the authorizer shall have reasonable
opportunity to respond and remedy the problems.
d. If a local school board registered as an authorizer under
subsection 9 persists in violating a material provision of a
charter contract or fails to remedy other authorizing problems
after due notice from the commission, the commission shall
notify the local school board, within a reasonable amount of
time under the circumstances, that it intends to terminate the
local school board’s chartering authority unless the local
school board demonstrates a timely and satisfactory remedy for
the violation or deficiencies.
e. If an authorizer granted chartering authority under
subsection 10 persists, after due notice from the commission,
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in violating a material provision of a charter contract or
its authorizing contract with the commission, or fails to
remedy other identified authorizing problems, the commission
shall notify the authorizer, within a reasonable amount
of time under the circumstances, that it intends to revoke
the authorizer’s chartering authority unless the authorizer
demonstrates a timely and satisfactory remedy for the violation
or deficiencies.
f. In the event of revocation of any authorizer’s chartering
authority, the commission shall manage the timely and orderly
transfer of each charter contract held by that authorizer to
another authorizer in the state, with the mutual agreement
of each affected public charter school and proposed new
authorizer. The new authorizer shall assume the existing
charter contract for the remainder of the charter term.
Sec. 8. NEW SECTION . 257A.7 Application process.
1. Request for proposals.
a. To solicit, encourage, and guide the development of
quality public charter school applications, every authorizer
operating under this chapter shall issue and broadly publicize
a request for proposals by August 1. The content and
dissemination of the request for proposals shall be consistent
with the purposes and requirements of this chapter.
b. Charter applicants may submit a proposal for a particular
public charter school to no more than one authorizer at a time.
c. The commission shall annually establish and disseminate
a statewide timeline for charter approval or denial decisions,
which shall apply to all authorizers in the state.
d. Each authorizer’s request for proposals shall present the
authorizer’s strategic vision for chartering, including a clear
statement of any preferences the authorizer wishes to grant to
applications that assist at-risk students.
e. The request for proposals shall include or otherwise
direct applicants to the performance framework that the
authorizer has developed for public charter school oversight
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and evaluation in accordance with section 257A.8, subsection 1.
f. The request for proposals shall include the criteria
that will guide the authorizer’s decision to approve or deny
a charter application.
g. The request for proposals shall state clear,
appropriately detailed questions as well as guidelines
concerning the format and content essential for applicants to
demonstrate the capacities necessary to establish and operate a
successful public charter school.
h. The request for proposals shall require charter
applications to provide or describe thoroughly, and each
charter application shall provide or describe thoroughly, all
of the following essential elements of the proposed school
plan:
(1) An executive summary.
(2) The mission and vision of the proposed public charter
school, including identification of the targeted student
population and the community the school hopes to serve.
(3) The location or geographic area proposed for the school.
(4) The grades to be served each year for the full term of
the charter contract.
(5) Minimum, planned, and maximum enrollment per grade per
year for the term of the charter contract.
(6) Evidence of need and community support for the proposed
public charter school.
(7) Background information on the proposed founding
governing board members and, if identified, the proposed school
leadership and management team.
(8) The school’s proposed calendar and sample daily
schedule.
(9) A description of the academic program aligned with
the comprehensive school improvement plan and reporting
requirements of section 256.7, subsection 21; the core
curriculum established pursuant to section 256.7, subsection
26; the core content standards established pursuant to section
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256.7, subsection 28; and the state educational standards
pursuant to section 256.11.
(10) A description of the school’s instructional design,
including the type of learning environment, class size and
structure, curriculum overview, and teaching methods.
(11) The school’s plan for using internal and external
assessments to measure and report student progress on the
performance framework developed by the authorizer in accordance
with section 257A.8, subsection 1.
(12) The school’s plans for identifying and successfully
serving students with disabilities, children requiring special
education pursuant to chapter 256B, students who are English
language learners, students who are academically behind, and
gifted students, including but not limited to compliance with
applicable laws and rules.
(13) A description of cocurricular or extracurricular
programs and how they will be funded and delivered.
(14) Plans and timelines for student recruitment and
enrollment, including lottery procedures.
(15) The school’s student discipline policies, including
those for children requiring special education as defined in
section 256B.2, subsection 1, paragraph “a” .
(16) An organization chart that clearly presents the public
charter school’s organizational structure, including lines of
authority and reporting between the governing board, staff,
any related advisory bodies or councils, and any external
organizations that will play a role in managing the school.
(17) A clear description of the roles and responsibilities
for the governing board, the public charter school’s leadership
and management team, and any other entities shown in the
organization chart.
(18) A staffing chart for the public charter school’s first
year, and a staffing plan for the term of the charter.
(19) Plans for recruiting and developing public charter
school leadership and staff.
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(20) The public charter school’s leadership and teacher
employment policies, including performance evaluation plans.
(21) Proposed governing bylaws.
(22) Explanations of any partnerships or contractual
relationships central to the public charter school’s operations
or mission.
(23) The public charter school’s plans for providing
transportation, food service, and all other significant
operational or ancillary services.
(24) Opportunities and expectations for parent involvement.
(25) A detailed public charter school start-up plan,
identifying tasks, timelines, and responsible individuals.
(26) Description of the public charter school’s financial
plan and policies, including financial controls and audit
requirements.
(27) A description of the insurance coverage the public
charter school will obtain.
(28) Start-up and five-year budgets with clearly stated
assumptions.
(29) Start-up and first-year cash-flow projections with
clearly stated assumptions.
(30) Evidence of anticipated fund-raising contributions,
if claimed in the application.
(31) A sound facilities plan, including backup or
contingency plans if appropriate.
i. In the case of an application to establish a public
charter school by converting an existing noncharter public
school to public charter school status, the request for
proposals shall additionally require the applicants to
demonstrate support for the proposed public charter school
conversion by a petition signed by a majority of teachers and
a petition signed by a majority of parents of students in the
existing noncharter public school.
j. In the case of a proposal to establish a virtual public
charter school, the request for proposals shall additionally
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require the applicants to describe the proposed virtual public
charter school’s system of course credits and how the school
will do the following:
(1) Monitor and verify full-time student enrollment,
student participation in a full course load, credit accrual,
and course completion.
(2) Monitor and verify student progress and performance
in each course through regular, proctored assessments and
submissions of coursework.
(3) Conduct parent-teacher conferences.
(4) Administer state-required assessments to all students
in a proctored setting.
k. In the case of a proposed public charter school that
intends to contract with an education service provider for
substantial educational services, management services, or both
types of services, the request for proposals shall additionally
require the applicants to do the following:
(1) Provide evidence of the education service provider’s
success in serving student populations similar to the targeted
population, including demonstrated academic achievement as well
as successful management of nonacademic school functions if
applicable.
(2) Provide a term sheet setting forth the proposed
duration of the service contract; roles and responsibilities
of the governing board, the school staff, and the service
provider; scope of services and resources to be provided
by the education service provider; performance evaluation
measures and timelines; compensation structure, including clear
identification of all fees to be paid to the education service
provider; methods of contract oversight and enforcement;
investment disclosure; and conditions for renewal and
termination of the contract.
(3) Disclose and explain any existing or potential
conflicts of interest between the public charter school
governing board and the proposed education service provider or
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any affiliated business entities.
l. In the case of a public charter school proposal from an
applicant that currently operates one or more schools in any
state or nation, the request for proposals shall additionally
require the applicant to provide evidence of past performance
and current capacity for growth.
2. Application decision-making process.
a. In reviewing and evaluating charter applications,
authorizers shall employ procedures, practices, and criteria
consistent with nationally recognized principles and standards
for quality charter authorizing. The application review
process shall include thorough evaluation of each written
charter application, an in-person interview with the applicant
group, and an opportunity in a public forum for local residents
to learn about and provide input on each application.
b. In deciding whether to approve charter applications,
authorizers shall do the following:
(1) Grant charters only to applicants that have
demonstrated competence in each element of the authorizer’s
published approval criteria and are likely to open and operate
a successful public charter school.
(2) Base decisions on documented evidence collected through
the application review process.
(3) Follow charter-granting policies and practices that are
transparent, based on merit, and avoid conflicts of interest or
any appearance of conflicts of interests.
c. No later than ninety days after the filing of a charter
application, the authorizer shall decide to approve or deny the
charter application. The authorizer shall adopt by resolution
all charter approval or denial decisions in an open meeting of
the authorizer’s governing board.
d. An approval decision may include, if appropriate,
reasonable conditions that the charter applicant must
meet before a charter contract may be executed pursuant to
subsection 5.
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e. For any charter denial, the authorizer shall clearly
state, for public record, its reasons for denial. A denied
applicant may subsequently reapply to that authorizer or apply
to any other authorizer in the state.
f. Within ten days of taking action to approve or deny
a charter application, the authorizer shall report to the
commission the action it has taken. The authorizer shall
provide a copy of the report to the charter applicant at the
same time that the report is submitted to the commission. The
report shall include a copy of the authorizer governing board’s
resolution setting forth the action taken and reasons for
the decision and assurances as to compliance with all of the
procedural requirements and application elements set forth in
this section.
3. Purposes and limitations of charter applications. The
purposes of the charter application are to present the proposed
public charter school’s academic and operational vision and
plans, demonstrate the applicant’s capacities to execute the
proposed vision and plans, and provide the authorizer a clear
basis for assessing the applicant’s plans and capacities. An
approved charter application shall not serve as the school’s
charter contract.
4. Initial charter term. An initial charter shall be
granted for a term of five operating years. The charter term
shall commence on the public charter school’s first day of
operation. An approved public charter school may delay its
opening for one school year in order to plan and prepare for
the school’s opening. If the public charter school requires
an opening delay of more than one school year, the school must
request an extension from its authorizer. The authorizer may
grant or deny the extension depending on the particular public
charter school’s circumstances.
5. Charter contracts.
a. Within thirty days of approval of a charter application,
the authorizer and the governing board of the approved
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public charter school shall execute a charter contract that
clearly sets forth the academic and operational performance
expectations and measures by which the public charter school
will be judged and the administrative relationship between the
authorizer and public charter school, including each party’s
rights and duties. The performance expectations and measures
set forth in the charter contract shall include but need not
be limited to applicable federal and state accountability
requirements. The performance provisions may be refined or
amended by mutual agreement after the public charter school is
operating and has collected baseline achievement data for its
enrolled students.
b. The charter contract for a virtual public charter school
shall include description and agreement regarding the methods
by which the school will do the following:
(1) Monitor and verify full-time student enrollment,
student participation in a full course load, credit accrual,
and course completion.
(2) Monitor and verify student progress and performance
in each course through regular, proctored assessments and
submissions of coursework.
(3) Conduct parent-teacher conferences.
(4) Administer state-required assessments to all students
in a proctored setting.
c. The charter contract shall be signed by the president
of the authorizer’s governing board and the president of the
public charter school’s governing body. Within ten days of
executing a charter contract, the authorizer shall submit to
the commission written notification of the charter contract
execution, including a copy of the executed charter contract
and any attachments.
d. A public charter school shall not commence operations
without a charter contract executed in accordance with this
subsection and approved in an open meeting of the authorizer’s
governing board.
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6. Preopening requirements or conditions. Authorizers may
establish reasonable preopening requirements or conditions
to monitor the start-up progress of newly approved public
charter schools and ensure that they are prepared to open
smoothly on the date agreed, and to ensure that each school
meets all building, health, safety, insurance, and other legal
requirements for school opening.
Sec. 9. NEW SECTION . 257A.8 Accountability.
1. Performance framework.
a. The performance provisions within the charter contract
shall be based on a performance framework that clearly sets
forth the academic and operational performance indicators,
measures, and metrics that will guide the authorizer’s
evaluations of each public charter school. The performance
framework shall include indicators, measures, and metrics for,
at a minimum, all of the following:
(1) Student academic proficiency.
(2) Student academic growth.
(3) Achievement gaps in both proficiency and growth between
major student subgroups.
(4) Attendance.
(5) Recurrent enrollment from year to year.
(6) For secondary schools, postsecondary readiness.
(7) Financial performance and sustainability.
(8) Board performance and stewardship, including compliance
with all applicable laws, rules, and terms of the charter
contract.
b. Annual performance targets shall be set by each public
charter school in conjunction with its authorizer, and shall be
designed to help each school meet applicable federal, state,
and authorizer expectations.
c. The performance framework shall allow the inclusion of
additional rigorous, valid, and reliable indicators proposed by
a public charter school to augment external evaluations of its
performance, provided that the authorizer approves the quality
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and rigor of such school-proposed indicators, and they are
consistent with the purposes of this chapter.
d. The performance framework shall require the
disaggregation of all student performance data by major student
subgroups including but not limited to gender, race, poverty
status, special education status, English learner status, and
talented and gifted status.
e. For each public charter school it oversees, the
authorizer shall be responsible for collecting, analyzing, and
reporting all data from state assessments in accordance with
the performance framework.
f. Multiple public charter schools operating under a single
charter contract or overseen by a single governing board
shall be required to report their performance as separate,
individual schools, and each school shall be held independently
accountable for its performance.
2. Ongoing oversight and corrective actions.
a. An authorizer shall continually monitor the performance
and legal compliance of the public charter schools it oversees,
including collecting and analyzing data to support ongoing
evaluation according to the charter contract. Every authorizer
may conduct or require oversight activities that enable the
authorizer to fulfill its responsibilities under this chapter,
including conducting appropriate inquiries and investigations,
so long as those activities are consistent with this chapter,
adhere to the terms of the charter contract, and do not unduly
inhibit the autonomy granted to public charter schools.
b. Each authorizer shall annually publish and provide, as
part of its annual report to the commission and the general
assembly, a performance report for each public charter school
it oversees, in accordance with the performance framework set
forth in the charter contract and subsection 1. The authorizer
may require each public charter school it oversees to submit an
annual report to assist the authorizer in gathering complete
information about each school, consistent with the performance
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framework.
c. If a public charter school’s performance or legal
compliance appears unsatisfactory, the authorizer shall
promptly notify the public charter school of the perceived
problem and provide reasonable opportunity for the school to
remedy the problem, unless the problem warrants revocation in
which case the revocation time frames will apply.
d. Every authorizer may take appropriate corrective actions
or exercise sanctions short of revocation in response to
apparent deficiencies in public charter school performance
or legal compliance. Such actions or sanctions may include,
if warranted, requiring a school to develop and execute a
corrective action plan within a specified time frame.
3. Renewals, revocations, and nonrenewals.
a. A charter may be renewed for successive five-year terms
of duration, although the authorizer may vary the term based
on the performance, demonstrated capacities, and particular
circumstances of each public charter school. An authorizer
may grant renewal with specific conditions for necessary
improvements to a public charter school.
b. No later than December 1 annually, the authorizer shall
issue a public charter school performance report and charter
renewal application guidance to any public charter school whose
charter will expire the following year. The performance report
shall summarize the public charter school’s performance record
to date, based on the data required by this chapter and the
charter contract, and shall provide notice of any weaknesses
or concerns perceived by the authorizer concerning the public
charter school that may jeopardize its position in seeking
renewal if not timely rectified. The public charter school
shall have thirty days to respond to the performance report and
submit any corrections or clarifications for the report.
c. The renewal application guidance shall, at a minimum,
provide an opportunity for the public charter school to do the
following:
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(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.
(3) Detail the school’s plans for the next charter term.
d. The renewal application guidance shall include or refer
explicitly to the criteria that will guide the authorizer’s
renewal decisions, which shall be based on the performance
framework set forth in the charter contract and consistent with
this chapter.
e. No later than August 1, the governing board of a
public charter school seeking renewal beginning with the next
fiscal year shall submit a renewal application to the charter
authorizer pursuant to the renewal application guidance issued
by the authorizer. The authorizer shall rule by resolution on
the renewal application no later than ninety days after the
filing of the renewal application.
f. In making charter renewal decisions, every authorizer
shall do the following:
(1) Ground its decisions in evidence of the school’s
performance over the term of the charter contract in accordance
with the performance framework set forth in the charter
contract.
(2) Ensure that data used in making renewal decisions are
available to the school and the public.
(3) Provide a public report summarizing the evidence basis
for each decision.
g. A charter contract may be revoked at any time or not
renewed if the authorizer determines that the public charter
school did any of the following or otherwise failed to comply
with the provisions of this chapter:
(1) Commits a material and substantial violation of any of
the terms, conditions, standards, or procedures required under
this chapter or the charter contract.
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(2) Fails to meet or make sufficient progress toward the
performance expectations set forth in the charter contract.
(3) Fails to meet generally accepted standards of fiscal
management.
(4) Substantially violates any material provision of law
from which the public charter school was not exempted.
h. An authorizer must develop revocation and nonrenewal
processes that do the following:
(1) Provide the charter holders with a timely notification
of the prospect of revocation or nonrenewal and of the reasons
for such possible closure.
(2) Allow the charter holders a reasonable amount of time
in which to prepare a response.
(3) Provide the charter holders with an opportunity to
submit documents and give testimony challenging the rationale
for closure and in support of the continuation of the school at
an orderly proceeding held for that purpose.
(4) Allow the charter holders access to representation by
counsel and to call witnesses on their behalf.
(5) Permit the recording of such proceedings.
(6) After a reasonable period for deliberation, require
that a final determination be made and conveyed in writing to
the charter holders.
i. If an authorizer revokes or does not renew a charter,
the authorizer shall clearly state, in a resolution of its
governing board, the reasons for the revocation or nonrenewal.
j. Within ten days of taking action to renew, not renew, or
revoke a charter, the authorizer shall report to the commission
the action taken, and shall provide a copy of the report to
the public charter school at the same time that the report is
submitted to the commission. The report shall include a copy
of the authorizer governing board’s resolution setting forth
the action taken and reasons for the decision and assurances as
to compliance with all of the requirements set forth in this
chapter.
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4. School closure and dissolution.
a. Prior to any public charter school closure decision,
an authorizer shall have developed 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
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 authorizer. In the event of a public charter
school closure for any reason, the authorizer 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.
b. In the event of a public charter school closure for any
reason, the assets of the school shall be distributed first
to satisfy outstanding payroll obligations for employees of
the school, then to creditors of the school, and then to the
commission for transfer to the treasurer of state for deposit
in the general fund of the state. If the assets of the school
are insufficient to pay all parties to whom the school owes
compensation, the prioritization of the distribution of assets
may be determined by decree of a court of law.
5. Charter transfers. Transfer of a charter contract, and
of oversight of that public charter school, from one authorizer
to another before the expiration of the charter term shall not
be permitted except by special petition to the commission by a
public charter school or its authorizer. The commission shall
review such petitions on a case-by-case basis and may grant
transfer requests in response to special circumstances and
evidence that such a transfer would serve the best interests of
the public charter school’s students.
6. Annual report. On or before December 1 of each year
beginning in the first year after any public charter school
established pursuant to this chapter has been operating for a
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full school year, the commission shall issue to the governor,
the general assembly, and the public at large, an annual report
on the state’s public charter schools established pursuant
to this chapter, drawing from the annual reports submitted
by every authorizer as well as any additional relevant data
compiled by the commission, for the school year ending in the
preceding calendar year. The annual report shall include
a comparison of the performance of public charter school
students with the performance of academically, ethnically,
and economically comparable groups of students in noncharter
public schools. In addition, the annual report shall include
the commission’s assessment of the successes, challenges, and
areas for improvement in meeting the purposes of this chapter,
including the commission’s assessment of the sufficiency of
funding for public charter schools, the efficacy of the state
formula for authorizer funding, and any suggested changes in
state law or policy necessary to strengthen the public charter
schools established under this chapter.
Sec. 10. NEW SECTION . 257A.9 Operations and autonomy.
1. Legal status of public charter school.
a. Notwithstanding any provision of law to the contrary, to
the extent that any provision of this chapter is inconsistent
with any other state or local law, rule, or regulation, the
provisions of this chapter shall govern and be controlling.
b. A public charter school shall be a nonprofit education
organization.
c. A public charter school shall be subject to all federal
laws and authorities enumerated herein or arranged by charter
contract with the school’s authorizer, where such contracting
is consistent with applicable laws, rules, and regulations.
d. Except as provided in this chapter, a public charter
school shall not be subject to the state’s education statutes
or any state or local rule, regulation, policy, or procedure
relating to noncharter public schools within an applicable
local school district regardless of whether such rule,
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regulation, policy, or procedure is established by the local
school board, the state board of education, or the state
department of education.
e. A charter contract may include one or more schools,
to the extent approved by the authorizer and consistent with
applicable law. Each public charter school that is part of
a charter contract shall be separate and distinct from any
others.
f. A single governing board may hold one or more charter
contracts. Each public charter school that is part of a
charter contract shall be separate and distinct from any
others.
2. Local educational agency status.
a. A public charter school shall function as a local
educational agency. A public charter school shall be
responsible for meeting the requirements of a local educational
agency under applicable federal, state, and local laws,
including those relating to special education. Local
educational agency status shall not preclude a public charter
school from developing partnerships with districts for
services, resources, and programs by mutual agreement or formal
contract.
b. A public charter school shall have primary responsibility
for special education at the school, including identification
and service provision. It shall be responsible for meeting the
needs of enrolled students with disabilities. In instances
where a student’s individualized education program team
determines that a student’s needs are so profound that they
cannot be met in the public charter school and that the public
charter school cannot provide a free, appropriate public
education to that student, the student’s district of residence
shall place the student in a more appropriate setting.
Sec. 11. NEW SECTION . 257A.10 Funding.
1. Enrollment. The enrollment of students attending
public charter schools shall be included in the enrollment,
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attendance, and, if applicable, count of children requiring
special education of the school district in which the student
resides. The public charter school shall report all such data
to the school districts of residence in a timely manner. Each
school district shall report such enrollment, attendance, and
count of students with disabilities to the state department of
education.
2. Operational funding. The local school district of
residence shall pay directly to the public charter school
for each student enrolled in the public charter school who
resides in the school district an amount for that student
equal to one hundred percent of the amount calculated pursuant
to the state’s funding formula for local school districts,
notwithstanding the oversight fee decreases pursuant to section
257A.5, subsection 6.
3. Payment schedule. Payments made pursuant to this section
shall be made by local school districts in twelve substantially
equal installments each year beginning on the first business
day of July and every month thereafter. Amounts payable
under this section shall be determined by the department of
education. Amounts payable to a public charter school in its
first year of operation shall be based on the projections of
initial-year enrollment set forth in the charter contract.
Such projections shall be reconciled with the actual enrollment
at the end of the public charter school’s first year of
operation, and any necessary adjustments shall be made to
payments during the school’s second year of operation.
4. Sanctions for failure to make payments. In the event
of the failure of a local school district to make payments
required by this section, the department of management shall
deduct from the state foundation aid paid under section
257.16 to the school district an amount equal to the unpaid
obligation. The department of management shall pay over such
sum to the public charter school upon certification of the
department of education. The department of management shall
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adopt rules to implement the provisions of this subsection.
5. Categorical funding. A local school district shall
direct the proportionate share of moneys generated under
federal and state categorical aid programs pursuant to section
257.10 to public charter schools serving students eligible for
such aid. A local school district shall ensure that public
charter schools with rapidly expanding enrollments are treated
equitably in the calculation and disbursement of all federal
and state categorical aid program dollars. Each public charter
school that serves students who may be eligible to receive
services provided through such programs shall comply with all
reporting requirements to receive the aid.
6. Special education funding.
a. A local school district shall pay directly to a public
charter school any federal or state aid attributable to a
student with a disability attending the school.
b. At either party’s request, a public charter school
and its authorizer may negotiate and include in the charter
contract alternate arrangements for the provision of and
payment for special education services.
7. Generally accepted accounting principles —— independent
audit.
a. A public charter school shall adhere to generally
accepted accounting principles.
b. A public charter school shall annually engage an external
auditor to do an independent audit of the school’s finances. A
public charter school shall file a copy of each audit report
and accompanying management letter to its authorizer by October
1.
8. Transportation funding.
a. The department of education shall disburse state
transportation funding pursuant to chapter 285 to a local
school district for each of the public charter school students
residing in the local school district on the same basis and
in the same manner as it is paid to local school districts.
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A local school district shall disburse state transportation
funding to a public charter school in proportion to the amount
generated by the school’s students who reside in the local
school district.
b. A public charter school may enter into a contract
with a local school district or private provider to provide
transportation to the school’s students.
9. Budget reserves. Any moneys received by a public charter
school from any source and remaining in the public charter
school’s accounts at the end of any budget year shall remain
in the public charter school’s accounts for use by the public
charter school during subsequent budget years.
10. Ability to accept gifts, donations, and grants. This
chapter shall not be construed to prohibit any person or
organization from providing funding or other assistance to the
establishment or operation of a public charter school. The
governing board of a public charter school may accept gifts,
donations, and grants of any kind made to the public charter
school and to expend or use such gifts, donations, and grants
in accordance with the conditions prescribed by the donor;
provided, however, that a gift, donation, or grant shall not
be accepted if subject to a condition that is contrary to any
provision of law or term of the charter contract.
Sec. 12. NEW SECTION . 257A.11 Facilities.
1. Per-student facility allowance.
a. The per-student facility allowance for public charter
schools shall be determined as follows: the total capital
costs for public schools in the state over the past five years
shall be divided by the total student count in the state over
the past five years.
b. The actual facility allowance payments to be received
by each public charter school shall be determined as follows:
the per-student facility allowance shall be multiplied by
the number of students estimated to be attending each public
charter school.
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2. Public charter school facility grant program.
a. The state board of education shall establish, within
available bond authorizations, a grant program to assist public
charter schools in financing school building projects, general
improvements to school buildings, and repayment of debt for
school building projects. Public charter schools may apply for
such grants to the state board of education at such time and in
such manner as the state board of education prescribes. The
state board of education shall give preference to applications
that provide for matching funds from nonstate sources.
b. For the purposes described in paragraph “a” , the Iowa
finance authority shall have the power, from time to time, to
authorize the issuance of bonds of the state in one or more
series and in principal amounts not exceeding in the aggregate
amounts to be determined by the school budget review committee.
c. The proceeds of the sale of bonds under paragraph “b” ,
to the extent of the amount specified by the Iowa finance
authority pursuant to paragraph “b” shall be used by the state
board of education for the purpose of grants pursuant to
paragraph “a” .
d. Bonds issued pursuant to this section shall be general
obligations of the state and the full faith and credit of the
state are pledged for the payment of the principal of and
interest on said bonds as the same become due, and accordingly
and as part of the contract of the state with the holders of
said bonds, appropriation of all amounts necessary for punctual
payment of such principal and interest is hereby made, and the
treasurer of state shall pay such principal and interest as the
same become due.
3. Public charter school facility revolving loan program.
a. A public charter school facility revolving loan program
is created in the state treasury under the control of the
state board of education. The public charter school facility
revolving loan program shall be comprised of federal funds
obtained by the state for public charter schools and any other
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funds appropriated or transferred to the fund by the state.
Funds appropriated to the public charter school facility
revolving loan program shall remain available for the purposes
of the program until reappropriated or reverted by the general
assembly.
b. Loans may be made from moneys in the public charter
school facility revolving loan program to a public charter
school, upon application by a public charter school and
approval by the state board of education or its designee.
Money loaned to a public charter school pursuant to this
subsection shall be for construction, purchase, renovation,
and maintenance of public charter school facilities. A loan
to a public charter school shall not exceed the number of
years allowed for loan payment or the loan amount specified
by the Iowa finance authority. A public charter school may
receive multiple loans from the public charter school facility
revolving loan program, as long as the total number of years
allowed for loan payment or the loan amount is not greater than
specified by the Iowa finance authority.
c. The Iowa finance authority or its designee may consider
all of the following when making a determination as to the
approval of a public charter school’s loan application:
(1) Soundness of the financial business plans of the
applicant public charter school.
(2) Availability to the public charter school of other
sources of funding.
(3) Geographic distribution of loans made from the public
charter school facility revolving loan program.
(4) The impact that loans received pursuant to this
subsection will have on the public charter school’s receipt of
other private and public financing.
(5) Plans for innovatively enhancing or leveraging funds
received pursuant to this subsection, such as loan guarantees
or other types of credit enhancements.
(6) The financial needs of the public charter school.
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d. Commencing with the first fiscal year following the
fiscal year the public charter school receives the loan, the
department of management shall deduct from apportionments made
to the public charter school, as appropriate, an amount equal
to the annual repayment of the amount loaned to the public
charter school under this subsection and pay the same amount
into the public charter school facility revolving loan account
in the state treasury. Repayment of the full amount loaned to
the public charter school shall be deducted by the department
of management in equal annual amounts over a number of years
agreed upon between the public charter school and the state
board of education or its designee, not to exceed the number of
years allowed for loan payment specified by the Iowa finance
authority for any loan.
e. Notwithstanding other provisions of law, a loan
may be made to a public charter school pursuant to this
subsection only in the case of a public charter school that is
incorporated.
f. Notwithstanding other provisions of law, in the case
of default of a loan made directly to a public charter school
pursuant to this subsection, the public charter school shall be
solely liable for repayment of the loan.
4. Bonding authority.
a. As used in this subsection and subsection 5, unless the
context otherwise requires:
(1) “Authority” means the Iowa finance authority.
(2) “Bonds” means revenue bonds which are payable solely as
provided in this subsection.
b. The authority shall cooperate with the governing board
of public charter schools established pursuant to this chapter
and private developers, acting in conjunction with a governing
body to build school facilities in connection with the public
charter school, in the creation, administration, and funding
of a public charter school bond program to finance school
facilities in connection with the public charter school.
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c. The authority may issue its bonds and notes for the
purpose of funding the nonrecurring cost of acquiring,
constructing, and equipping a public charter school-related
facility.
d. The authority may issue its bonds and notes for the
purposes of this subsection and may enter into one or more
lending agreements or purchase agreements with one or more
bondholders or noteholders containing the terms and conditions
of the repayment of and the security for the bonds or notes.
The authority and the bondholders or noteholders or a trustee
agent designated by the authority may enter into agreements to
provide for any of the following:
(1) That the proceeds of the bonds and notes and the
investments of the proceeds may be received, held, and
disbursed by the authority or by a trustee or agent designated
by the authority.
(2) That the bondholders or noteholders or a trustee or
agent designated by the authority may collect, invest, and
apply the amount payable under the loan agreements or any
other instruments securing the debt obligations under the loan
agreements.
(3) That the bondholders or noteholders may enforce the
remedies provided in the loan agreements or other instruments
on their own behalf without the appointment or designation of a
trustee. If there is a default in the principal of or interest
on the bonds or notes or in the performance of any agreement
contained in the loan agreements or other instruments, the
payment or performance may be enforced in accordance with the
loan agreement or other instrument.
(4) Other terms and conditions as deemed necessary or
appropriate by the authority.
e. The powers granted the authority under this subsection
are in addition to other powers contained in chapter 16.
The authority shall adopt rules pursuant to chapter 17A to
implement this subsection. All other provisions of chapter
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16, except section 16.28, subsection 4, apply to bonds or
notes issued and powers granted to the authority under this
subsection, except to the extent they are inconsistent with
this subsection.
f. All bonds or notes issued by the authority in connection
with the program are exempt from taxation by this state and the
interest on the bonds or notes is exempt from state income tax,
both personal and corporate.
g. The authority may provide in the resolution, trust
agreement, or other instrument authorizing the issuance of its
bonds or notes pursuant to this subsection that the principal
of, premium, and interest on the bonds or notes are payable
from any of the following and may pledge the same to its bonds
and notes:
(1) From the net rents, profits, and income arising from the
project or property pledged or mortgaged.
(2) From the net rents, profits, and income which has
not been pledged for other purposes arising from any similar
facility under the control and management of the public charter
school or the public charter school’s governing body.
(3) From the funding received by the public charter school
governing board pursuant to section 257A.10.
(4) From the amounts on deposit in the name of a public
charter school or a private developer or operator of a public
charter school facility, including but not limited to revenues
from a purchase, rental, or lease agreement, loan agreement, or
other facility charges.
(5) From the amounts payable to the authority, the public
charter school or the governing board, or a private developer
or operator, pursuant to a loan agreement, lease agreement, or
sale agreement.
(6) From funds received pursuant to subsection 6.
(7) From the other funds or accounts established by the
authority in connection with the program or the sale and
issuance of its bonds or notes.
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h. No obligation created under this subsection shall ever
be or become a charge against the state of Iowa but all such
obligations, including principal and interest, shall be payable
solely as provided in this subsection.
i. The authority may establish reserve funds to secure
one or more issues of its bonds or notes. The authority may
deposit in a reserve fund established under this subsection,
the proceeds of the sale of its bonds or notes and other money
which is made available from any other source.
j. A pledge made in respect of bonds or notes is valid
and binding from the time the pledge is made. The money or
property so pledged and received after the pledge by the
authority is immediately subject to the lien of the pledge
without physical delivery or further act. The lien of the
pledge is valid and binding as against all persons having
claims of any kind in tort, contract, or otherwise against
the authority whether or not the parties have notice of the
lien. Neither the resolution, trust agreement, nor any other
instrument by which a pledge is created needs to be recorded,
filed, or perfected under chapter 554, to be valid, binding, or
effective against all persons.
k. The members of the authority or persons executing the
bonds or notes are not personally liable on the bonds or notes
and are not subject to personal liability or accountability by
reason of the issuance of the bonds or notes.
l. The bonds or notes issued by the authority are not
an indebtedness or other liability of the state or of a
political subdivision of the state within the meaning of any
constitutional or statutory debt limitations, but are special
obligations of the authority and are payable solely from
the income and receipts or other funds or property of the
public charter school, governing body, or private developer,
and the amounts on deposit in a public charter school bond
fund, and the amounts payable to the authority under its loan
agreements with a public charter school, governing body, or
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private developer to the extent that the amounts are designated
in the resolution, trust agreement, or other instrument of
the authority authorizing the issuance of the bonds or notes
as being available as security for the bonds or notes. The
authority shall not pledge the faith or credit of the state
or of a political subdivision of the state to the payment of
any bonds or notes. The issuance of any bonds or notes by
the authority does not directly, indirectly, or contingently
obligate the state or a political subdivision of the state
to apply money from, or levy, or pledge any form of taxation
whatever to the payment of the bonds or notes.
5. Moral obligation of the state.
a. The general assembly hereby finds and declares that its
intent in enacting subsection 4 is to support public charter
schools and public charter school capital construction by
helping qualified public charter schools that choose to have
the authority issue bonds on their behalf obtain more favorable
financing terms for the bonds.
b. If the authority has issued bonds on behalf of a public
charter school that defaults on its debt service payment
obligations, the board of directors of the authority shall
submit to the governor a certificate certifying any amount
of moneys required to fulfill the school’s debt service
payment obligations. The governor shall submit a request for
appropriations in an amount sufficient to fulfill the school’s
debt service payment obligations and the general assembly may,
but shall not be required to, appropriate moneys for that
purpose. If, in its sole discretion, the general assembly
appropriates any moneys for that purpose, the aggregate
outstanding principal amount of bonds for which moneys may
be appropriated for said purpose shall not exceed an amount
specified by the authority.
6. Access to state facilities programs for noncharter public
schools.
a. A public charter school shall have access to any school
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infrastructure funds available under chapter 292 and any school
infrastructure safety funds available under section 423E.6.
b. The school district of residence shall pay directly to
the public charter school for each student enrolled in the
public charter school who resides in the school district an
amount for that student equal to one hundred percent of the
amount calculated pursuant to the secure an advanced vision for
education fund distribution formula pursuant to section 423E.4.
7. Credit enhancement fund.
a. A credit enhancement fund under the control of the
state board of education is created in the state treasury if
the general assembly appropriates funds to the department of
education for purposes of this subsection.
b. Using the moneys deposited in the fund, the state
board of education shall make and disburse grants to eligible
nonprofit corporations to carry out the purposes described in
paragraph “c” .
c. The recipient of a grant under this fund shall use the
moneys provided under the grant to carry out activities to
assist public charter schools in doing the following:
(1) Obtaining financing to acquire interests in real
property, including but not limited to purchase, lease,
or donation, and including financing to cover planning,
development, and other incidental costs.
(2) Obtaining financing for construction of facilities or
the renovation, repair, or alteration of existing property
or facilities, including but not limited to the purchase or
replacement of fixtures and equipment; including financing to
cover planning, development, and other incidental costs.
(3) Enhancing the availability of loans, including but not
limited to mortgages and bonds.
(4) Obtaining lease guarantees.
d. Funds provided under a grant under this subsection shall
not be used by a recipient to make direct loans or grants to
public charter schools.
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8. Access to district facilities and land. A public charter
school shall have a right of first refusal to purchase or lease
at or below fair market value a closed public school facility
or property or unused portions of a public school facility or
property located in a local school district from which it draws
its students if the local school district decides to sell or
lease the public school facility or property.
9. Contracting for use of facilities. A public charter
school may negotiate and contract at or below fair market value
with a local school district, the governing body of a state
college or university or public community college, or any other
public or for-profit or nonprofit private entity for the use of
a facility for a school building.
10. Use of other facilities under preexisting zoning and
land use designations. Library, community service, museum,
performing arts, theatre, cinema, church, community college,
college, and university facilities may provide space to public
charter schools within their facilities under their preexisting
zoning and land use designations.
11. Exemptions from property taxes and certain fees.
a. Any facility, or portion thereof, used to house a public
charter school shall be exempt from property taxes.
b. Public charter school facilities are exempt from
assessments of fees for building permits, fees for building and
occupational licenses, impact fees, service availability fees,
and assessments for special benefits.
Sec. 13. IOWA PUBLIC CHARTER SCHOOL COMMISSION. There is
appropriated from the general fund of the state to the Iowa
public charter school commission for the fiscal year beginning
July 1, 2011, and ending June 30, 2012, the following amount,
or so much thereof as is necessary, to be used for the purposes
designated:
For purposes of administering chapter 257A, if enacted
by this Act, including salaries, support, maintenance, and
miscellaneous purposes:
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000
EXPLANATION
This bill establishes the “Public Charter Schools Act”, and
creates the Iowa public charter school commission as a public
charter school authorizer oversight body. Local school boards,
accredited public and private postsecondary institutions,
cities, and governing boards of nonprofit or charitable
organizations may apply to the commission for authorizing
ability. The bill appropriates $250,000 from the general fund
of the state to the commission for fiscal year 2011-2012 for
purposes of administering the Code chapter.
The bill includes legislative findings and declarations,
and provides for the establishment of virtual public charter
schools that will offer educational services predominantly
through the internet.
A public charter school shall be open to any student
residing in the state and may limit admission to students
within a given age group or grade level and may be organized
around a special emphasis, theme, or concept as stated in the
school’s application. A public charter school must enroll all
students who wish to attend the school, unless the number of
students exceeds the capacity of a program, class, grade level,
or building. The bill includes provisions for enrollment
preferences and credit transferability.
Eligible public charter school authorizers are responsible
for soliciting and evaluating charter applications, approving
quality charter applications, declining to approve weak or
inadequate charter applications, negotiating and executing
sound charter contracts with each approved public charter
school, monitoring the performance and legal compliance
of public charter schools, and determining whether each
charter contract merits renewal, nonrenewal, or revocation.
An authorizing entity may delegate its duties to offices,
employees, and contractors.
To cover authorizer costs for overseeing public charter
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schools, the commission shall remit to each authorizer an
oversight fee for each public charter school it authorizes.
The oversight fee shall be drawn from and calculated as a
uniform percentage of the per-student operational funding
allocated to each public charter school, not to exceed 3
percent of each public charter school’s per-student funding in
a single school year.
The commission consists of nine members serving three-year
terms. Five members shall be appointed by the governor; two
members collectively shall be appointed by the president and
minority leader of the senate; and two members collectively
shall be appointed by the speaker and minority leader of the
house of representatives. The commission must establish the
annual application and approval process, including cycles and
deadlines during the fiscal year, for all entities eligible to
apply for chartering authority. The commission is responsible
for overseeing the performance and effectiveness of all
authorizers.
The commission shall establish a statewide formula for
authorizer funding, which shall apply uniformly to every
authorizer in the state. The commission shall submit the
formula, and any succeeding amendments to the formula, to
the department of management, the general assembly, and the
governor, and shall provide any additional information required
by the department. The formula shall be established by
statute prior to the appropriation or distribution of state
funds for purposes of establishing a public charter school.
The commission may establish a sliding scale for authorizer
funding, with the funding percentage decreasing after the
authorizer has achieved a certain threshold, such as after
a certain number of years of authorizing or after a certain
number of schools has been authorized.
Funding is provided through the school district of
residence, as the enrollment of students attending public
charter schools must be included in the enrollment, attendance,
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and, if applicable, count of children requiring special
education of the school district in which the student resides.
The public charter school shall report all such data to the
school districts of residence in a timely manner. Each school
district shall report such enrollment, attendance, and count
of students with disabilities to the state department of
education. The school district must pay directly to the public
charter school for each student enrolled in the public charter
school who resides in the school district 100 percent of the
amount calculated under the state’s funding formula, and any
categorical funds, for that student. A school district shall
pay directly to a public charter school any federal or state
aid attributable to a student with a disability attending the
school.
Every authorizer is required to submit to the commission
and the general assembly an annual report. Persistently
unsatisfactory performance of an authorizer’s portfolio of
public charter schools, a pattern of well-founded complaints
about the authorizer or its public charter schools, or other
objective circumstances may trigger a special review by the
commission.
If an authorizer granted chartering authority persists,
after due notice from the commission, in violating a
material provision of a charter contract or its authorizing
contract with the commission, or fails to remedy other
identified authorizing problems, the commission shall notify
the authorizer that it intends to revoke the authorizer’s
chartering authority unless the authorizer demonstrates
a timely and satisfactory remedy for the violation or
deficiencies.
To solicit, encourage, and guide the development of quality
public charter school applications, every authorizer must
issue and broadly publicize a request for proposals. Charter
applicants may submit a proposal for a particular public
charter school to no more than one authorizer at a time. The
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bill includes a list of what each charter application must
include.
In the case of a proposal to establish a virtual public
charter school, the request for proposals for applications
shall additionally require the applicants to describe the
proposed school’s system of course credits and how the school
will monitor and verify full-time student enrollment, student
participation in a full course load, credit accrual, and course
completion; monitor and verify student progress and performance
in each course through regular, proctored assessments and
submissions of coursework; conduct parent-teacher conferences;
and administer state-required assessments to all students in a
proctored setting.
A proposed public charter school may contract with an
education service provider for substantial educational
services, management services, or both types of services.
In reviewing and evaluating charter applications,
authorizers must employ procedures, practices, and criteria
consistent with nationally recognized principles and standards
for quality charter authorizing. The application review
process shall include thorough evaluation of each written
charter application, an in-person interview with the applicant
group, and an opportunity in a public forum for local residents
to learn about and provide input on each application.
In deciding whether to approve charter applications,
authorizers must grant charters only to applicants that have
demonstrated competence in each element of the authorizer’s
published approval criteria and are likely to open and
operate a successful public charter school; base decisions on
documented evidence collected through the application review
process; and follow charter-granting policies and practices
that are transparent, based on merit, and avoid conflicts of
interest or any appearance of conflicts of interests.
For any charter denial, the authorizer shall clearly state,
for public record, its reasons for denial. A denied applicant
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may subsequently reapply to that authorizer or apply to any
other authorizer in the state.
An initial charter shall be granted for a term of five
operating years.
The performance provisions within the charter contract shall
be based on a performance framework that clearly sets forth
the academic and operational performance indicators, measures,
and metrics that will guide the authorizer’s evaluations of
each public charter school. The performance framework includes
indicators and measures for student academic proficiency,
student academic growth, achievement gaps in both proficiency
and growth between major student subgroups, attendance,
recurrent enrollment from year to year, postsecondary
readiness, financial performance and sustainability, and board
performance and stewardship.
The bill provides for ongoing oversight and corrective
actions. Every authorizer is authorized to take appropriate
corrective actions or exercise sanctions short of revocation
in response to apparent deficiencies in public charter school
performance or legal compliance. Such actions or sanctions
may include, if warranted, requiring a school to develop and
execute a corrective action plan within a specified time frame.
A charter may be renewed for successive five-year terms of
duration. A charter contract may be revoked at any time or not
renewed if the authorizer determines that the public charter
school commits a material and substantial violation of any of
the terms, conditions, standards, or procedures required under
the new Code chapter or the charter contract; fails to meet or
make sufficient progress toward the performance expectations
set forth in the charter contract; fails to meet generally
accepted standards of fiscal management; or substantially
violates any material provision of law from which the public
charter school was not exempted.
Prior to any public charter school closure decision, an
authorizer must have developed a public charter school closure
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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 assets. In
the event of a public charter school closure, the assets of
the school shall be distributed first to satisfy outstanding
payroll obligations for employees of the school, then to
creditors of the school, and then to the commission for
transfer to the treasurer of state for deposit in the state
general fund.
On or before December 1, the commission must issue to the
governor, the general assembly, and the public at large, an
annual report on the state’s public charter schools, drawing
from the annual reports submitted by every authorizer as well
as any additional relevant data compiled by the commission, for
the school year ending in the preceding calendar year.
A public charter school shall be a nonprofit education
organization subject to all federal laws. For purposes of
federal programs and funding, a public charter school shall
function as a local educational agency.
The per-student facility allowance for public charter
schools shall be the total capital costs for public schools in
the state over the past five years divided by the total student
count in the state over the past five years. The actual
facility allowance payments to be received by each public
charter school shall be determined as follows: the per-student
facility allowance shall be multiplied by the number of
students estimated to be attending each public charter school.
The bill directs the state board of education to establish,
within available bond authorizations, a grant program to assist
public charter schools in financing school building projects,
general improvements to school buildings, and repayment of
debt for school building projects. Public charter schools
may apply for such grants to the state board of education at
such time and in such manner as the state board of education
prescribes. The state board of education shall give preference
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to applications that provide for matching funds from nonstate
sources.
The bill authorizes the Iowa finance authority to issue
bonds in aggregate amounts to be determined by the school
budget review committee. The proceeds of the sale of bonds
shall be used by the authority for public charter school
facilities.
The bill establishes a public charter school facility
revolving loan program in the state treasury under the control
of the state board of education comprised of federal funds
obtained by the state for public charter schools and any other
funds appropriated or transferred to the fund by the state.
Loans may be made from moneys in the revolving loan program
to a public charter school. Money loaned to a public charter
school shall be for construction, purchase, renovation, and
maintenance of public charter school facilities.
A public charter school shall have access to any school
infrastructure funds available under Code chapter 292, any
school infrastructure safety funds available under Code section
423E.6, and the school district of residence shall pay directly
to the public charter school for each student enrolled in the
public charter school who resides in the school district an
amount for that student equal to 100 percent of the amount
calculated pursuant to the secure an advanced vision for
education fund distribution formula pursuant to Code section
423E.4.
The bill creates in the state treasury, if the general
assembly appropriates funds to the department of education
for purposes of the fund, a credit enhancement fund under the
control of the state board of education. Fund moneys can be
used by the state board to make and disburse grants to eligible
nonprofit corporations to carry out activities to assist public
charter schools in obtaining financing to acquire interests
in real property and for construction of facilities or the
renovation, repair, or alteration of existing property or
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facilities; for enhancing the availability of loans; and for
obtaining lease guarantees.
A public charter school is given first refusal rights to
purchase or lease at or below fair market value a closed public
school facility or property or unused portions of a public
school facility or property located in a school district from
which it draws its students if the school district decides to
sell or lease the public school facility or property.
A public charter school may negotiate and contract at or
below fair market value with a school district, the governing
body of a state college or university or public community
college, or any other public or for-profit or nonprofit private
entity for the use of facility for a school building.
Any facility used to house a public charter school is exempt
from property taxes and from assessments of fees for building
permits, fees for building and occupational licenses, impact
fees, service availability fees, and assessments for special
benefits.
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