45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO CHARTER SCHOOLS; PROVIDING FOR THE INVOLVEMENT OF THE STATE BOARD OF EDUCATION IN THE APPROVAL OF CHARTER SCHOOLS; AMENDING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 22-8-6.1 NMSA 1978 (being Laws 1993, Chapter 227, Section 8, as amended) is amended to read:

"22-8-6.1. CERTAIN SCHOOL DISTRICT BUDGETS.--Each charter school shall submit to the state board or the local school board a school-based budget. The budget shall be based upon the projected number of program units generated by that charter school and its students, using the at-risk index and the instructional staff training and experience index of the district. The budget shall be submitted to the state board or the local school board for approval or amendment. The approval or amendment authority of the state board or the local school board relative to the charter school budget is limited to ensuring that sound fiscal practices are followed in the development of the budget and that the charter school budget is within the allotted resources. The local school board shall have no veto authority over individual line items within the charter school's proposed budget, but shall approve or disapprove the budget in its entirety. Upon final approval [of the local budget by the local school board], the individual charter school budget shall be included separately in the budget submission to the department [of education] required pursuant to the Public School Finance Act and the 1999 Charter Schools Act."

Section 2. Section 22-8B-2 NMSA 1978 (being Laws 1999, Chapter 281, Section 2) is amended to read:

"22-8B-2. DEFINITIONS.--As used in the 1999 Charter Schools Act:

A. "charter school" means a conversion school or start-up school within a school district authorized [by the local school board] to operate as a charter school;

B. "conversion school" means an existing public school within a school district authorized [by the local school board] to become a charter school;

C. "governing body" means the governing structure of a charter school as set forth in the school's charter; and

D. "start-up school" means a public school developed by one or more parents, teachers or community members authorized by the state board or the local school board of the school district in which the school is located to become a charter school."

Section 3. Section 22-8B-4 NMSA 1978 (being Laws 1999, Chapter 281, Section 4, as amended) is amended to read:

"22-8B-4. CHARTER SCHOOLS' RIGHTS AND RESPONSIBILITIES--OPERATION.--

A. A charter school shall be subject to all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, gender, national origin, religion, ancestry or need for special education services.

B. A charter school shall be administered and governed by a governing body in the manner set forth in the charter.

C. A charter school shall be responsible for its own operation, including preparation of a budget, contracting for services and personnel matters.

D. A charter school may negotiate or contract with a [local] school district, a university or college or any third party for the use of a facility, its operation and maintenance and the provision of any service or activity that the charter school is required to perform in order to carry out the educational program described in its charter.

E. In no event shall a charter school be required to pay rent for space that is deemed available, as negotiated by contract, in school district facilities; provided that the facilities can be made available at no cost to the district. All costs for the operation and maintenance of the facilities used by the charter school shall be subject to negotiation between the charter school and the district.

F. A charter school shall negotiate with a [local] school district to provide transportation to students eligible for transportation under the provisions of the Public School Code. The [local] school district, in conjunction with the charter school, may establish a limit for student transportation to and from the charter school site not to extend beyond the [local] school district boundary.

G. A charter school may negotiate with the state board or a [local] school district for capital expenditures.

H. A charter school shall be a nonsectarian, nonreligious and non-home-based public school that operates within a [public] school district.

I. Except as otherwise provided in the Public School Code, a charter school shall not charge tuition or have admission requirements.

J. A charter school shall be subject to the provisions of Sections 22-1-6 and 22-2-8 NMSA 1978.

K. A charter school may acquire, pledge and dispose of property; provided that, upon termination of the charter, all assets of the charter school shall revert to the local school board [that authorized the charter] of the school district where the charter school was located.

L. A charter school may accept or reject any charitable gift, grant, devise or bequest; provided that no such gift, grant, devise or bequest shall be accepted if subject to any condition contrary to law or to the terms of the charter. The particular gift, grant, devise or bequest shall be considered an asset of the charter school to which it is given.

M. A charter school may contract and sue and be sued. [A]

N. The state board or the local school board that [approves] approved a charter school shall not be liable for any acts or omissions of the charter school.

[N.] O. A charter school shall comply with all state and federal health and safety requirements applicable to public schools."

Section 4. Section 22-8B-5 NMSA 1978 (being Laws 1999, Chapter 281, Section 5) is amended to read:

"22-8B-5. CHARTER SCHOOLS--LOCAL SCHOOL BOARD AUTHORITY--STATE BOARD AUTHORITY.--

A. The local school board may waive only locally imposed school district requirements.

B. The state board shall waive requirements relating to individual class load and teaching load, length of the school day, staffing patterns, subject areas and the purchase of instructional material. The state board may waive state board requirements or rules and provisions of the Public School Code pertaining to graduation requirements, evaluation standards for school personnel, school principal duties and driver education. Any waivers granted pursuant to this section shall be for the term of the charter granted.

C. A charter school shall be a public school, accredited by the state board and shall be accountable to the state board or the school district's local school board that approved the charter for purposes of ensuring compliance with applicable laws, rules and charter provisions.

D. [No] A local school board shall not require any employee of the school district to be employed in a charter school.

E. [No] A local school board shall not require any student residing within the geographic boundary of its district to enroll in a charter school.

F. A student who is suspended or expelled from a charter school shall be deemed to be suspended or expelled from the school district in which the student resides."

Section 5. Section 22-8B-6 NMSA 1978 (being Laws 1999, Chapter 281, Section 6) is amended to read:

"22-8B-6. CHARTER SCHOOL REQUIREMENTS--APPLICATION PROCESS--AUTHORIZATION.--

A. The local school board or the state board on appeal shall have the authority to approve the establishment of a charter school within the [local] school district in which it is located.

B. A charter school applicant shall apply to [a] the local school board for a charter [An applicant shall only submit an application] in the district in which the school is located. Applications shall be submitted by October 1 to be eligible for consideration for the following school year. The October 1 deadline may be waived upon agreement of the applicant and the local school board.

C. An application for a start-up school may be made by one or more teachers, parents or community members.

D. An application for a conversion school shall include a petition of support signed by not less than sixty-five percent of the employees in the school. Additionally, a petition in support of the charter school signed by a majority of the households whose children are enrolled in a proposed conversion school must accompany the application.

E. The local school board shall receive and review [all] applications for charter schools. The local school board shall not charge application fees. If [the board finds] the charter school application is incomplete, the local school board shall request the necessary information from the charter applicant.

F. The local school board shall hold at least one meeting to obtain information and community input to assist the local school board in its decision whether to grant a charter school application. The local school board shall rule on the application for a charter school in a public meeting within sixty days after receiving the application. If not ruled upon within sixty days, the charter application will be automatically reviewed by the state board in accordance with the provisions of Section [7 of the 1999 Charter Schools Act] 22-8B-7 NMSA 1978. The charter applicant and the local school board may, however, jointly waive the deadlines set forth in this section.

G. If the local school board denies a charter school application or imposes conditions that are unacceptable to the charter applicant, the charter applicant may appeal the decision to the state board pursuant to Section [7 of the 1999 Charter Schools Act] 22-8B-7 NMSA 1978.

H. If [a] the local school board denies a charter school application, it shall state its reasons for the denial. If [a] the state board or the local school board grants a charter, it shall send a copy of the approved charter to the department of education within fifteen days after granting the charter."

Section 6. Section 22-8B-8 NMSA 1978 (being Laws 1999, Chapter 281, Section 8) is amended to read:

"22-8B-8. CHARTER APPLICATION--CONTENTS.--The charter school application, whether for a start-up school or a conversion school, shall be a proposed agreement between the state board or the local school board and the charter school and shall include:

A. the mission statement of the charter school;

B. the goals, objectives and student performance standards to be achieved by the charter school;

C. a description of the charter school's educational program, student performance standards and curriculum that must meet or exceed the state [board of education's] board's educational standards and must be designed to enable each student to achieve those standards;

D. a description of the way a charter school's educational program will meet the individual needs of the students, including those students determined to be at risk;

E. a description of the charter school's plan for evaluating student performance, the types of assessments that will be used to measure student progress toward achievement of the state's standards and the school's student performance standards, the time line for achievement of the standards and the procedures for taking corrective action in the event that student performance falls below the standards;

F. evidence that the plan for the charter school is economically sound, including a proposed budget for the term of the charter and a description of the manner in which the annual audit of the financial and administrative operations of the charter school is to be conducted;

G. evidence that the fiscal management of the charter school complies with all applicable federal and state laws and regulations relative to fiscal procedures;

H. evidence of a plan for the displacement of students, teachers and other employees who will not attend or be employed in the conversion school;

I. a description of the governing body and operation of the charter school, including how the governing body will be selected, the nature and extent of parental, professional educator and community involvement in the governance and operation of the school and the relationship between the governing body and the state board or the local school board;

J. an explanation of the relationship that will exist between the proposed charter school and its employees, including evidence that the terms and conditions of employment will be addressed with affected employees and their recognized representatives, if any;

K. the employment and student discipline policies of the proposed charter school;

L. an agreement between the charter school and the state board or the local school board regarding their respective legal liability and applicable insurance coverage;

M. a description of how the charter school plans to meet the transportation and food service needs of its students;

N. a description of the waivers that the charter school is requesting from the local school board and the state board and the charter school's plan for addressing these waiver requests;

O. a description of the facilities the charter school plans to use; and

P. any other information reasonably required by the state board or the local school board."

Section 7. Section 22-8B-9 NMSA 1978 (being Laws 1999, Chapter 281, Section 9) is amended to read:

"22-8B-9. CHARTER SCHOOL--CONTRACT CONTENTS--RULES.--

A. An approved charter application shall be a contract between the charter school and the state board or the local school board.

B. The contract between the charter school and the state board or the local school board shall reflect all agreements regarding the release of the charter school from school district policies.

C. The contract between the charter school and the state board or the local school board shall reflect all requests for release of the charter school from state board rules or the Public School Code. Within ten days after the contract is approved by the state board or the local school board, any request for release from state board rules or the Public School Code shall be delivered [by the local school board] to the state board. If the state board grants the request, it shall notify the local school board, if applicable, and the charter school of its decision. If the state board denies the request, it shall notify the local school board, if applicable, and the charter school that the request is denied and specify the reasons for denial.

D. Upon approval of the charter by the state board or the local school board, the charter school shall be waived from the Public School Code provisions relating to individual class load and teaching load requirements, length of school day, staffing patterns, subject areas and purchase of instructional materials.

E. The charter school shall participate in the public school insurance authority.

F. Any revision or amendment to the terms of the contract may be made only with the approval of the state board or the local school board and the governing body of the charter school.

G. The charter shall include procedures agreed upon by the charter school and the state board or the local school board for the resolution of disputes between the charter school and the state board or the local school board.

H. The charter shall include procedures that shall be agreed upon by the charter school and the state board or the local school board in the event that [such board determines] it is determined that the charter shall be revoked pursuant to the provisions of Section [12 of the 1999 Charter Schools Act] 22-8B-12 NMSA 1978.

I. An existing charter school, regardless of when the charter was granted, may elect to have the contract pursuant to Subsection A of this section transferred from the local school board to the state board or from the state board to the local school board; provided that the state board or the local school board is allowed a review, comment and amendment period of not less than thirty days from the charter school's notification to transfer."

Section 8. Section 22-8B-11 NMSA 1978 (being Laws 1999, Chapter 281, Section 11) is amended to read:

"22-8B-11. CHARTER SCHOOLS--MAXIMUM NUMBER ESTABLISHED.--

A. The state board or the local school [boards] board shall authorize the approval of both conversion and start-up charter schools within [their] the school [districts] district where the school is located.

B. No more than fifteen start-up schools and five conversion schools may be established per year statewide. The number of charter school slots remaining in that year shall be transferred to succeeding years up to a maximum of seventy-five start-up schools and twenty-five conversion schools in any five-year period. The state board shall promptly notify the local school board of each school district when the limits set forth in this section have been reached."

Section 9. Section 22-8B-12 NMSA 1978 (being Laws 1999, Chapter 281, Section 12) is amended to read:

"22-8B-12. CHARTER SCHOOLS--TERM--RENEWAL OF CHARTER--GROUNDS FOR NONRENEWAL OR REVOCATION.--

A. A charter school may be approved for an initial term of five years. A charter may be renewed for successive periods of five years each. Approvals of less than five years can be agreed to between the charter school and the local school board.

B. No later than January 1 of the year prior to the year in which the charter expires, the governing body of a charter school may submit a renewal application to the local school board. The local school board shall rule in a public hearing on the renewal application no later than March 1 of the year in which the charter expires, or on a mutually agreed upon date.

C. A charter school renewal application submitted to the local school board shall contain:

(1) a report on the progress of the charter school in achieving the goals, objectives, student performance standards, state board minimum educational standards and other terms of the initial approved charter application, including the accountability requirements set forth in Section 22-1-6 NMSA 1978;

(2) a financial statement that discloses the costs of administration, instruction and other spending categories for the charter school that is understandable to the general public, that will allow comparison of costs to other schools or comparable organizations and that is in a format required by the state board;

(3) contents of the charter application set forth in Section [8 of the 1999 Charter Schools Act] 22-8B-8 NMSA 1978;

(4) a petition in support of the charter school renewing its charter status signed by not less than sixty-five percent of the employees in the charter school; and

(5) a petition in support of the charter school renewing its charter status signed by a majority of the households whose children are enrolled in the charter school.

D. A charter may be revoked or not renewed by the local school board if [the board determines] it is determined that the charter school did any of the following:

(1) committed a material violation of any of the conditions, standards or procedures set forth in the charter;

(2) failed to meet or make substantial progress toward achievement of the state board minimum educational standards or student performance standards identified in the charter application;

(3) failed to meet generally accepted standards of fiscal management; or

(4) violated any provision of law from which the charter school was not specifically exempted.

E. If [a] the local school board revokes or does not renew a charter, the state board or the local school board shall state in writing its reasons for the revocation or nonrenewal.

F. A decision to revoke or not to renew a charter may be appealed by the governing body of the charter school pursuant to Section [7 of the 1999 Charter Schools Act] 22-8B-7 NMSA 1978."