SENATE BILL 446

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

John M. Sapien and Rhonda S. King

 

 

 

 

 

AN ACT

RELATING TO EDUCATION; AMENDING AND ENACTING SECTIONS OF THE CHARTER SCHOOLS ACT; PROVIDING FOR CHARTER SCHOOL CONTRACTS; REQUIRING CHARTER CONTRACTS BETWEEN A CHARTER SCHOOL AND THE CHARTERING AUTHORITY AND SETTING FORTH CONTRACT REQUIREMENTS; ESTABLISHING CONFLICT OF INTEREST PROCEDURES FOR A CHARTER SCHOOL GOVERNING BODY AND ADMINISTRATION; CREATING AN ANNUAL EVALUATION PROCESS FOR CHARTER SCHOOLS.

 

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

     SECTION 1. 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, physical or mental handicap, serious medical condition, race, creed, color, sex, gender identity, sexual orientation, spousal affiliation, national origin, religion, ancestry or need for special education services.

          B. A charter school shall be governed by a governing body in the manner set forth in the charter contract; provided that a governing body shall have at least five members; and provided further that no member of a governing body for a charter school that is initially approved on or after July 1, 2005 or whose charter is renewed on or after July 1, 2005 shall serve on the governing body of another charter school.

          C. A charter school shall be responsible for:                   (1) its own operation, including preparation of a budget, subject to audits pursuant to the Audit Act; and

                (2) contracting for services and personnel matters.

          D. A charter school may contract with a school district, a university or college, the state, another political subdivision of the state, the federal government or one of its agencies, a tribal government or any other 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 contract. Facilities used by a charter school shall meet the standards required pursuant to Section 22-8B-4.2 NMSA 1978.

          E. A conversion school chartered before July 1, 2007 may choose to continue using the school district facilities and equipment it had been using prior to conversion, subject to the provisions of Subsection F of this section.

          F. The school district in which a charter school is geographically located shall provide a charter school with available facilities for the school's operations unless the facilities are currently used for other educational purposes. An agreement for the use of school district facilities by a charter school may provide for reasonable lease payments; provided that the payments do not exceed the sum of the lease reimbursement rate provided in Subparagraph (b) of Paragraph (1) of Subsection I of Section 22-24-4 NMSA 1978 plus any reimbursement for actual direct costs incurred by the school district in providing the facilities; and provided further that any lease payments received by a school district may be retained by the school district and shall not be considered to be cash balances in any calculation pursuant to Section 22-8-41 NMSA 1978. The available facilities provided by a school district to a charter school shall meet all occupancy standards as specified by the public school capital outlay council. As used in this subsection, "other educational purposes" includes health clinics, daycare centers, teacher training centers, school district administration functions and other ancillary services related to a school district's functions and operations.

          G. A locally chartered charter school may pay the costs of operation and maintenance of its facilities or may contract with the school district to provide facility operation and maintenance services.

          H. Locally chartered charter school facilities are eligible for state and local capital outlay funds and shall be included in the school district's five-year facilities plan.

          I. A locally chartered charter school shall negotiate with a school district to provide transportation to students eligible for transportation under the provisions of the Public School Code. The 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 school district boundary.

          J. A charter school shall be a nonsectarian, nonreligious and non-home-based public school.

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

          L. With the approval of the chartering authority, a single charter school may maintain separate facilities at two or more locations within the same school district; but, for purposes of calculating program units pursuant to the Public School Finance Act, the separate facilities shall be treated together as one school.

          M. A charter school shall be subject to the provisions of Section 22-2-8 NMSA 1978 and the Assessment and Accountability Act.

          N. Within constitutional and statutory limits, a charter school may acquire and dispose of property; provided that, upon termination of the charter, all assets of the locally chartered charter school shall revert to the local school board and all assets of the state-chartered charter school shall revert to the state, except that, if all or any portion of a state-chartered charter school facility is financed with the proceeds of general obligation bonds issued by a local school board, the facility shall revert to the local school board.

          O. The governing body of 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.

          P. The governing body may contract and sue and be sued. A local school board shall not be liable for any acts or omissions of the charter school.

          Q. A charter school shall comply with all state and federal health and safety requirements applicable to public schools, including those health and safety codes relating to educational building occupancy.

          R. A charter school is a public school that may contract with a school district or other party for provision of financial management, food services, transportation, facilities, education-related services or other services. The governing body shall not contract with a for-profit entity for the management of the charter school.

          S. To enable state-chartered charter schools to submit required data to the department, an accountability data system shall be maintained by the department.

          T. A charter school shall comply with all applicable state and federal laws and rules related to providing special education services. Charter school students with disabilities and their parents retain all rights under the federal Individuals with Disabilities Education Act and its implementing state and federal rules. Each charter school is responsible for identifying, evaluating and offering a free appropriate public education to all eligible children who are accepted for enrollment in that charter school. The state-chartered charter school, as a local educational agency, shall assume responsibility for determining students' needs for special education and related services. The division may promulgate rules to implement the requirements of this subsection."

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

     "22-8B-8. CHARTER APPLICATION--CONTENTS.--The charter school application [for a start-up school shall be a proposed agreement between the chartering authority and the charter school and] shall include:

          A. the mission statement of the charter school;

          B. the goals, objectives and student performance [standards] outcomes 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 department'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] outcomes, the time line for achievement of the [standards] outcomes 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 rules 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:

                (1) how the [initial] governing body will be selected; 

                (2) qualification and terms of members, how vacancies on the governing body will be filled and procedures for changing governing body membership; and

                (3) the nature and extent of parental, professional educator and community involvement in the governance and operation of the school;

          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. [for a locally chartered charter school] an agreement between the charter school and the [local school board] chartering authority 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 both the discretionary waivers and the waivers provided for in Section 22-8B-5 NMSA 1978 that the charter school is requesting or that will be provided from the local school board [and] or the department and the charter school's plan for addressing and using these waiver requests; and

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

          P. any other information reasonably required by the chartering authority]."

     SECTION 3. Section 22-8B-9 NMSA 1978 (being Laws 1999, Chapter 281, Section 9, as amended) is amended to read:

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

          [A. An approved charter application is a contract between the charter school and the chartering authority.]

          A. The chartering authority shall enter into a contract with the governing body of the applicant charter school within thirty days of approval of the charter application. The charter contract shall be the final authorization for the charter school and shall be part of the charter. If the chartering authority and the applicant charter school fail to agree upon the terms of or enter into a contract within thirty days of the approval of the charter application, either party may appeal to the secretary for assistance in negotiating the terms of the contract; provided that such appeal must be provided in writing to the secretary within forty-five days of the approval of the charter application. Failure to enter into a charter contract or appeal to the secretary pursuant to this section precludes the chartering authority from chartering the school.

          B. The charter contract shall [reflect] include:

                (1) all agreements regarding the release of the charter school from department and local school board rules and policies, including discretionary waivers and waivers provided for in Section 22-8B-5 NMSA 1978;

                (2) any material term of the charter application as determined by the parties to the contract;

               (3) the mission statement of the charter school and how the charter school will report on implementation of its mission;

                (4) the chartering authority's duties to the charter school and liabilities of the chartering authority as provided in Section 8 of this 2011 act;

                (5) a statement of admission policies and procedures;

                (6) signed assurances from the charter school's governing body members regarding compliance with all federal and state laws governing organizational, programmatic and financial requirements applicable to charter schools;

                (7) the criteria, processes and procedures that the chartering authority will use for ongoing oversight of operational, financial and academic performance of the charter school;

                (8) a detailed description of how the chartering authority will use the withheld two percent of the school-generated program cost as provided in Section 22-8B-13 NMSA 1978;

                (9) the types and amounts of insurance liability coverage to be obtained by the charter school;

                (10) the term of the contract;

                (11) the process and criteria that the chartering authority intends to use to annually monitor and evaluate the fiscal, overall governance and student performance of the charter school, including the method that the chartering authority intends to use to conduct the evaluation as required by Section 22-8B-12 NMSA 1978;

                (12) the dispute resolution processes agreed upon by the chartering authority and the charter school, provided that the processes shall, at a minimum, include:

                     (a) written notice of the intent to invoke the dispute resolution process, which notice shall include a description of the matter in dispute;

                     (b) a time limit for response to the notice and cure of the matter in dispute;

                     (c) a procedure for selection of a neutral third party to assist in resolving the dispute;

                     (d) a process for apportionment of all costs related to the dispute resolution process; and

                     (e) a process for final resolution of the issue reviewed under the dispute resolution process;

                (13) the criteria, procedures and time lines, agreed upon by the charter school and the chartering authority, addressing charter revocation and deficiencies found in the annual status report pursuant to the provisions of Section 22-8B-12 NMSA 1978;

          [C. For locally chartered charter schools, the contract between the charter school and the local school board shall reflect]

                (14) if the charter school contracts with a third-party provider, the criteria and procedures for the chartering authority to review the provider's contract and the charter school's financial independence from the provider;

                (15) all requests for release of the charter school from department rules or the Public School Code. Within ten days after the contract is approved by the local school board, any request for release from department rules or the Public School Code shall be delivered by the local school board to the department. If the department grants the request, it shall notify the local school board and the charter school of its decision. If the department 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.] (16) an agreement that the charter school [shall] will participate in the public school insurance authority;

                (17) if the charter school is a state-chartered charter school, a process for qualification of and review of the school as a qualified board of finance and provisions for assurance that the school has satisfied any conditions imposed by the commission;

                (18) an agreement that, if the governing body wants to open and operate another charter school under an existing charter contract, the governing body must obtain the approval of the chartering authority and amend the terms of the contract accordingly; provided that if the chartering authority and the governing body fail to agree upon the terms of the amended charter contract as required in this paragraph within thirty days of the governing body's notice to the chartering authority of its intent to open and operate another charter school under the same charter contract, either party may appeal to the secretary for assistance in negotiating the terms of the contract in the same manner as provided for in Subsection A of this section; and

                (19) any other information reasonably required by either party to the contract.

          [E. Any] C. The process for revision or amendment to the terms of the charter contract shall be made only with the approval of the chartering authority and the governing body of the charter school.

          [F. For locally chartered charter schools, 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. The charter shall include procedures that shall be agreed upon by the charter school and the local school board in the event that the board determines that the charter shall be revoked pursuant to the provisions of Section 22-8B-12 NMSA 1978.]"

     SECTION 4. A new section of the Charter Schools Act is enacted to read:

     "[NEW MATERIAL] PERFORMANCE FRAMEWORK.--

          A. The performance provisions in the charter contract shall be based on a framework that clearly sets forth the academic and operations performance indicators, measures and metrics that will guide the chartering authority's evaluation of each charter school. The performance framework shall include indicators, measures and metrics for, at a minimum:

                (1) student academic performance;

                (2) student academic growth;

                (3) achievement gaps in both proficiency and growth between student subgroups;

                (4) attendance;

                (5) recurrent enrollment from year to year;

                (6) if the charter school is a high school, post-secondary readiness;

                (7) if the charter school is a high school, graduation rate;

                (8) financial performance and sustainability; and

                (9) governing body performance, including compliance with all applicable laws, rules and terms of the charter contract.

          B. Annual performance targets shall be set by each chartering authority in consultation with its charter schools and shall be designed to help each charter school meet applicable federal, state and chartering authority expectations as set forth in the charter contracts to which the authority is a party.

          C. The performance framework shall allow for the inclusion of additional rigorous, valid and reliable indicators proposed by a charter school to augment external evaluations of its performance, provided that the chartering authority shall approve the quality and rigor of such proposed indicators and the indicators are consistent with the purposes of the Charter Schools Act.

          D. The performance framework shall require the disaggregation of all student performance data collected in compliance with this section by student subgroup, including gender, race, poverty status, special education or gifted status and English language learner.

          E. The chartering authority shall collect, analyze and report all data from state assessment tests in accordance with the performance framework set forth in the charter contract for each charter school overseen by that chartering authority.

          F. Multiple charter schools operating under a single charter contract shall report each school's performance as a separate, individual school, and each school shall be held independently accountable for its performance."

     SECTION 5. Section 22-8B-12 NMSA 1978 (being Laws 1999, Chapter 281, Section 12, as amended) is amended to read:

     "22-8B-12. CHARTER SCHOOLS--TERM--OVERSIGHT AND CORRECTIVE ACTIONS--SITE VISITS--RENEWAL OF CHARTER--GROUNDS FOR NONRENEWAL OR REVOCATION.--

          A. A charter school may be approved for an initial term of six years; provided that the first year shall be used exclusively for planning and not for completing the application. A charter may be renewed for successive periods of five years each. Approvals of less than five years may be agreed to between the charter school and the chartering authority.

          B. During the planning year, the charter school shall file a minimum of three status reports with the chartering authority and the department for the purpose of demonstrating that the charter school's implementation progress is consistent with the conditions, standards and procedures of its approved charter. The report content, format and schedule for submission shall be agreed to by the chartering authority and the charter school [prior to signing] and become part of the charter contract.

          C. Prior to the end of the planning year, the charter school shall demonstrate that its facilities meet the requirements of Section 22-8B-4.2 NMSA 1978.

          [D. Prior to the end of the planning year, a state-chartered charter school shall demonstrate that it has qualified as a board of finance and has satisfied any conditions imposed by the commission before commencing full operation for the remainder of its charter term. The commission shall either issue or refuse to issue the authorization to commence full operation within twenty-one days of the request. If the commission refuses to issue the authorization, it shall provide its reasons in writing to the charter school.]

          D. A chartering authority shall monitor the fiscal, overall governance and student performance and legal compliance of the charter schools that it oversees, including collecting and analyzing data to support ongoing evaluation according to the charter contract. Every chartering authority may conduct or require oversight activities that allow the chartering authority to fulfill its responsibilities under the Charter Schools Act, including conducting appropriate inquiries and investigations; provided that the chartering authority complies with the provisions of the Charter Schools Act and the terms of the charter contract and does not unduly inhibit the autonomy granted to the charter schools that it governs.

          E. As part of its performance review of a charter school, a chartering authority shall visit a charter school under its authority at least once annually to provide technical assistance to the charter school and to determine the status of the charter school and the progress of the charter school toward the performance framework goals in its charter contract.

          F. If, based on the performance review conducted by the chartering authority pursuant to Subsection D of this section, a charter school's fiscal, overall governance or student performance or legal compliance appears unsatisfactory, the chartering authority shall promptly notify the governing body of the charter school of the unsatisfactory review and provide reasonable opportunity for the governing body to remedy the problem; provided that if the unsatisfactory review warrants revocation, the revocation procedures set forth in this section shall apply. A chartering authority may take appropriate corrective actions or exercise sanctions, as long as such sanctions do not constitute revocation, in response to the unsatisfactory review. Such actions or sanctions by the chartering authority may include requiring a governing body to develop and execute a corrective action plan with the chartering authority that sets forth time frames for compliance.

          G. Every chartering authority shall submit an annual report to the division, including a performance report for each charter school that it oversees, in accordance with the performance framework set forth in the charter contract.

          H. The department shall review the annual report received from the chartering authority to determine if the department or local school board rules and policies from which the charter school was released pursuant to the provisions of Section 22-8B-5 NMSA 1978 assisted or impeded the charter school in meeting its stated goals and objectives. The department shall use the annual reports received from the chartering authorities as part of its report to the governor, the legislative finance committee and the legislative education study committee as required by the Charter Schools Act.

          [E.] I. No later than [two hundred seventy days] July 1 of the year prior to the date in which the charter expires, the governing body may submit a renewal application to the chartering authority. A charter school may apply to a different chartering authority for renewal. The chartering authority shall rule in a public hearing on the renewal application no later than [one hundred eighty days] September 1 of the year prior to the expiration of the charter.

          [F.] J. A charter school renewal application submitted to the chartering authority shall contain:

                (1) a report on the progress of meeting the academic performance, financial compliance and governance responsibilities of the charter school [in], including achieving the goals, objectives, student performance [standards] outcomes, state minimum educational standards and other terms of the [initial approved charter application] charter contract, including the accountability requirements set forth in the Assessment and Accountability Act;

                (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 allows comparison of costs to other schools or comparable organizations and that is in a format required by the department;

                (3) [contents of the charter application set forth in Section 22-8B-8 NMSA 1978] a copy of the charter contract executed in compliance with the provisions of Section 22-8B-9 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;

                (5) a petition in support of the charter school renewing its charter status signed by at least seventy-five percent of the households whose children are enrolled in the charter school; and

                (6) a description of the charter school facilities and assurances that the facilities are in compliance with the requirements of Section 22-8B-4.2 NMSA 1978.

          [G.] K. A charter may be suspended, revoked or not renewed by the chartering authority if the chartering authority 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 contract;

                (2) failed to meet or make substantial progress toward achievement of the department's minimum educational standards or student performance standards identified in the charter [application] contract;

                (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.

          L. The chartering authority shall develop processes for suspension, revocation or nonrenewal of a charter that:

                (1) provide the charter school with timely notification of the prospect of suspension, revocation or nonrenewal of the charter and the reasons for such action;

                (2) allow the charter school a reasonable amount of time to prepare and submit a response to the chartering authority's action; and

                (3) require the final determination made by the chartering authority to be submitted to the department.

          [H.] M. If a chartering authority suspends, revokes or does not renew a charter, the chartering authority shall state in writing its reasons for the suspension, revocation or nonrenewal.

          [I.] N. A decision to suspend, revoke or not to renew a charter may be appealed by the governing body pursuant to Section 22-8B-7 NMSA 1978."

     SECTION 6. A new section of the Charter Schools Act is enacted to read:

     "[NEW MATERIAL] CHARTER SCHOOL CLOSURE--CHARTERING AUTHORITY PROTOCOLS--CHARTERING AUTHORITY DUTIES--DISTRIBUTION OF ASSETS.--

          A. Prior to any charter school closure decision, the chartering authority shall develop a 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 provisions of Subsection C of this section. The protocol shall specify tasks, time lines and responsible parties, including delineating the respective duties of the charter school, the governing body and the chartering authority.

          B. If a charter school is ordered closed for any reason, prior to closure, the chartering authority shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students and parents according to the closure protocol.

          C. When a charter school is closed, 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 state treasury to the credit of the current school fund. If the assets of the school are insufficient to pay all parties to whom the schools owes compensation, the prioritization of the distribution of assets may be determined by decree of a court of law."

     SECTION 7. A new section of the Charter Schools Act is enacted to read:

     "[NEW MATERIAL] GOVERNING BODY CONFLICTS OF INTEREST.--

          A. A person shall not serve as a member of a governing body of a charter school if the person or an immediate family member of the person is an owner, employee or agent of, or a contractor with, a for-profit or nonprofit entity with which the charter school contracts, directly or indirectly, for professional services, goods or facilities. A violation of this subsection renders the contract between the person or the person's immediate family member and the charter school voidable at the option of the chartering authority, the department or the governing body. A person who violates this subsection is individually liable to the charter school for any damage caused by the violation.

          B. No member of a governing body or employee, officer or agent of a charter school shall participate in selecting, awarding or administering a contract with the charter school if a conflict of interest exists. A conflict of interest exists when the member, employee, officer or agent or an immediate family member of the member, employee, officer or agent has a financial or other interest in the entity with which the charter school is contracting. A violation of this subsection renders the contract void.

          C. Any employee, agent or board member of the chartering authority who participates in the initial review, approval, ongoing oversight, evaluation or charter renewal process of a charter school is ineligible to serve on the governing body of the charter school chartered by the chartering authority.

          D. The conflict-of-interest provisions under this section do not apply to compensation paid to a teacher employed by the charter school who also serves as a member of the governing body.

          E. As used in this section, "immediate family member" means:

                (1) a spouse, including a former spouse;

                (2) a child or an adult child, including an adopted child, a stepchild or an ex-nuptial child;

                (3) a parent or a stepparent;

                (4) a grandparent;

                (5) a grandchild;

                (6) a sibling or a stepsibling;

                (7) a first cousin;

                (8) an aunt or an uncle;

                (9) a father-in-law or a mother-in-law;

                (10) a sister-in-law or a brother-in-law; and

                (11) any other relative who is financially supported."

     SECTION 8. A new section of the Charter Schools Act is enacted to read:

     "[NEW MATERIAL] CHARTERING AUTHORITY--POWERS--DUTIES--LIABILITY.--A chartering authority shall:

          A. evaluate charter applications;

          B. actively pursue the utilization of charter schools to satisfy identified education needs and promote a diversity of educational choices;

          C. approve charter applications that meet the requirements of the Charter Schools Act;

          D. decline to approve charter applications that fail to meet the requirements of the Charter Schools Act or are otherwise inadequate;

          E. negotiate and execute, in good faith, charter contracts that meet the requirements of the Charter Schools Act with each approved charter school;

          F. monitor, in accordance with the requirements of the Charter Schools Act and the terms of the charter contract, the performance and legal compliance of charter schools under their authority;

          G. determine whether a charter school merits suspension, revocation or nonrenewal; and

          H. develop and maintain chartering policies and practices consistent with nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing, including:

                (1) organizational capacity and infrastructure;

                (2) evaluating charter applications;

                (3) performance contracting;

                (4) charter school oversight and evaluation; and

                (5) charter school suspension, revocation and renewal processes."

     SECTION 9. A new section of the Charter Schools Act is enacted to read:

     "[NEW MATERIAL] DIVISION--ANNUAL REPORT.--By December 1 annually, the division shall issue to the governor, the legislative finance committee and the legislative education study committee a report on the state's charter schools for the school year ending in the preceding calendar year, drawing from the annual reports submitted by every chartering authority as well as any relevant data compiled by the division. The annual report shall include a comparison of the performance of charter school students with the performance of academically, ethnically and economically comparable groups of students in noncharter public schools. The report shall also include an assessment of the successes, challenges and areas for improvement in meeting the purposes of the Charter Schools Act, including the division's assessment of the sufficiency of funding for charter schools, the efficacy of the state formula for chartering authority funding and any suggested changes to state law or policy necessary to strengthen the state's charter schools. The annual report shall be published on the department's web site."

     SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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