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

RELATING TO CHARTER SCHOOLS; CLARIFYING AUTHORITY REGARDING BUDGET AND CONTRACT REVISIONS; 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 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 local school board for approval or amendment. The approval or amendment authority of 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 or projected student membership within the charter school's proposed budget, but shall approve or disapprove the budget in its entirety. Upon final approval of the [local] school district 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-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 local school board.

B. The contract between the charter school and 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 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 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 and the charter school of its decision. If the state board denies the request, it shall notify the local school board and the charter school that the request is denied and specify the reasons for denial.

D. Upon approval of the charter by 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 local school board and the governing body of the charter school, except for revisions of projected student membership, which may be modified at the discretion of the governing body of the charter school.

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

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

Section 3. 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.] A charter renewed for a successive period shall be for five years unless the charter school requests a charter for less than five years.

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 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 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 local school board revokes or does not renew a charter, 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."