HOUSE BILL 74
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Christine Trujillo
FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
AN ACT
RELATING TO PUBLIC EDUCATION; REMOVING THE PUBLIC EDUCATION COMMISSION'S ADMINISTRATIVE ATTACHMENT TO THE PUBLIC EDUCATION DEPARTMENT; ESTABLISHING THE PUBLIC EDUCATION COMMISSION AS AN INDEPENDENT ENTITY; PROVIDING FOR PUBLIC EDUCATION COMMISSION RULEMAKING AUTHORITY AND STAFF SUPPORT; GRANTING THE PUBLIC EDUCATION COMMISSION THE AUTHORITY TO MAKE CHARTERING AUTHORITY DECISIONS TO GRANT, RENEW, DENY OR REVOKE THE CHARTER OF A STATE-CHARTERED CHARTER SCHOOL; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 9-24-9 NMSA 1978 (being Laws 2004, Chapter 27, Section 9) is amended to read:
"9-24-9. PUBLIC EDUCATION COMMISSION--CREATION--POWERS, AUTHORITY AND DUTIES--LEGISLATIVE AND EXECUTIVE OVERSIGHT.--
A. The "public education commission" is created pursuant to Article 12, Section 6 of the constitution of New Mexico. [The commission shall be administratively attached to the department, with administrative staff provided by the department. Additional requests for staff services shall be made through the secretary.] The commission shall advise the department on policy matters and shall perform other functions pursuant to the Charter Schools Act and as otherwise provided by law.
B. Upon approval of the secretary, the commission shall promulgate and enforce such rules as may be necessary to carry out its functions pursuant to the Charter Schools Act and as otherwise provided by law.
[B.] C. The commission shall consist of ten members elected from public education districts as provided in the decennial educational redistricting act. Members shall be entitled to receive per diem and mileage as provided in the Per Diem and Mileage Act, but shall receive no other perquisite, compensation or allowance.
[C.] D. The commission shall annually elect a [chairman] chair, vice [chairman] chair and secretary from among its membership. A majority of the members constitutes a quorum for the conduct of business. The commission shall keep a record of all proceedings of the commission.
[D.] E. The commission shall meet at the call of the [chairman] chair at least quarterly or at the request of the majority of its members. Meetings of the commission shall be held in Santa Fe and at other sites within the state at the direction of the commission. [The chairman in consultation with the secretary shall call a meeting at the request of a majority of the members.] Commission members shall not vote by proxy.
[E.] F. No member of the commission shall be appointed secretary or be employed by the department on either a full- or part-time basis.
G. Subject to appropriation by the legislature, the commission shall employ staff as needed to assist the commission in the performance of its duties. Staff shall be subject to the provisions of the Personnel Act.
H. The commission shall prepare an annual budget.
I. Each year, the commission shall report to the legislature and governor:
(1) the commission's policies and rules; and
(2) any actions that the commission takes to grant, renew or deny an application for a state-chartered charter school pursuant to the Charter Schools Act."
SECTION 2. Section 22-8-25 NMSA 1978 (being Laws 1981, Chapter 176, Section 5, as amended) is amended to read:
"22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION--
DEFINITIONS--DETERMINATION OF AMOUNT.--
A. The state equalization guarantee distribution is that amount of money distributed to each school district to ensure that its operating revenue, including its local and federal revenues as defined in this section, is at least equal to the school district's program cost. For state-chartered charter schools, the state equalization guarantee distribution is the difference between the state-chartered charter school's program cost and the two percent withheld by the department for the commission for administrative services.
B. "Local revenue", as used in this section, means seventy-five percent of receipts to the school district derived from that amount produced by a school district property tax applied at the rate of fifty cents ($.50) to each one thousand dollars ($1,000) of net taxable value of property allocated to the school district and to the assessed value of products severed and sold in the school district as determined under the Oil and Gas Ad Valorem Production Tax Act and upon the assessed value of equipment in the school district as determined under the Oil and Gas Production Equipment Ad Valorem Tax Act.
C. "Federal revenue", as used in this section, means receipts to the school district, excluding amounts that, if taken into account in the computation of the state equalization guarantee distribution, result, under federal law or regulations, in a reduction in or elimination of federal school funding otherwise receivable by the school district, derived from the following:
(1) seventy-five percent of the school district's share of forest reserve funds distributed in accordance with Section 22-8-33 NMSA 1978; and
(2) seventy-five percent of grants from the federal government as assistance to those areas affected by federal activity authorized in accordance with Title 20 of the United States Code, commonly known as "PL 874 funds" or "impact aid".
D. To determine the amount of the state equalization guarantee distribution, the department shall:
(1) calculate the number of program units to which each school district or charter school is entitled using an average of the MEM on the second and third reporting dates of the prior year; or
(2) calculate the number of program units to which a school district or charter school operating under an approved year-round school calendar is entitled using an average of the MEM on appropriate dates established by the department; or
(3) calculate the number of program units to which a school district or charter school with a MEM of two hundred or less is entitled by using an average of the MEM on the second and third reporting dates of the prior year or the fortieth day of the current year, whichever is greater; and
(4) using the results of the calculations in Paragraph (1), (2) or (3) of this subsection and the instructional staff training and experience index from the October report of the prior school year, establish a total program cost of the school district or charter school;
(5) for school districts, calculate the local and federal revenues as defined in this section;
(6) deduct the sum of the calculations made in Paragraph (5) of this subsection from the program cost established in Paragraph (4) of this subsection;
(7) deduct the total amount of guaranteed energy savings contract payments that the department determines will be made to the school district from the public school utility conservation fund during the fiscal year for which the state equalization guarantee distribution is being computed; and
(8) deduct ninety percent of the amount certified for the school district by the department pursuant to the Energy Efficiency and Renewable Energy Bonding Act.
E. Reduction of a school district's state equalization guarantee distribution shall cease when the school district's cumulative reductions equal its proportional share of the cumulative debt service payments necessary to service the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act.
F. The amount of the state equalization guarantee distribution to which a school district is entitled is the balance remaining after the deductions made in Paragraphs (6) through (8) of Subsection D of this section.
G. The state equalization guarantee distribution shall be distributed prior to June 30 of each fiscal year. The calculation shall be based on the local and federal revenues specified in this section received from June 1 of the previous fiscal year through May 31 of the fiscal year for which the state equalization guarantee distribution is being computed. In the event that a school district or charter school has received more state equalization guarantee funds than its entitlement, a refund shall be made by the school district or charter school to the state general fund."
SECTION 3. Section 22-8B-6 NMSA 1978 (being Laws 1999, Chapter 281, Section 6, as amended) is amended to read:
"22-8B-6. CHARTER SCHOOL REQUIREMENTS--APPLICATION PROCESS--AUTHORIZATION--STATE BOARD OF FINANCE DESIGNATION
REQUIRED--PUBLIC HEARINGS--SUBCOMMITTEES--APPEALS.--
A. A local school board has the authority to approve or deny the establishment or renewal of a locally chartered charter school within [the] that local school board's school district [in which it is located]. The commission has the authority to approve or deny an application for the establishment or renewal of a charter for a state-chartered charter school.
B. No later than the second Tuesday of January of the year in which an application will be filed, the organizers of a proposed charter school shall provide written notification to the commission and the local school board of the school district in which the charter school is proposed to be located of their intent to establish a charter school. Failure to notify may result in an application not being accepted.
C. A charter school applicant shall apply to either a local school board or the commission for a charter. If an application is submitted to a chartering authority, [it] the chartering authority must process the application. Applications for initial charters shall be submitted [between] by June 1 [and July 1] to be eligible for consideration for the following fiscal year; provided that the [July] June 1 deadline may be waived upon agreement of the applicant and the chartering authority.
D. No fees for the authorization process shall be assessed by a local school board when authorizing a locally chartered charter school or by the commission when authorizing a state-chartered charter school.
[D.] E. An application shall include the total number of grades the charter school proposes to provide, either immediately or phased. A charter school may decrease the number of grades it eventually offers, but it shall not increase the number of grades or the total number of students proposed to be served in each grade.
[E.] F. An application shall include a detailed description of the charter school's projected facility needs, including projected requests for capital outlay assistance that have been approved by the director of the public school facilities authority or the director's designee. The director shall respond to a written request for review from a charter applicant within forty-five days of the request.
[F.] G. An application may be made by one or more teachers, parents or community members or by a public post-secondary educational institution or nonprofit organization. Municipalities, counties, private post-secondary educational institutions and for-profit business entities are not eligible to apply for or receive a charter.
[G.] H. An initial application for a charter school shall not be made after June 30, 2007 if the proposed charter school's proposed enrollment for all grades or the proposed charter school's proposed enrollment for all grades in combination with any other charter school's enrollment for all grades would equal or exceed ten percent of the total MEM of the school district in which the charter school will be geographically located and that school district has a total enrollment of not more than one thousand three hundred students.
[H.] I. A state-chartered charter school shall not be approved for operation unless [its] the governing body of the charter school has qualified to be a board of finance.
[I. The chartering authority shall receive and review all applications for charter schools submitted to it. The chartering authority shall not charge application fees.]J. The chartering authority shall hold at least
one public hearing in the school district in which the charter school is proposed to be located to obtain information and community input to assist it in its decision whether to grant a charter school application. The chartering authority may designate a subcommittee of no fewer than three members to hold the public hearing, and, if so, the hearing shall be transcribed for later review by other members of the chartering authority. Any member of a chartering authority who was not present at the public hearing shall receive a transcript of the public hearing, together with documents submitted for the public hearing, before a chartering authority makes a decision to accept or deny an application or renewal of a charter. Community input may include written or oral comments in favor of or in opposition to the application from the applicant, the local community and, for state-chartered charter schools, the local school board and school district in whose geographical boundaries the charter school is proposed to be located.
K. Provided that the application was submitted to the chartering authority by June 1, the chartering authority shall rule on the application for a charter school in a public [meeting] hearing by September 1 of the year the application was received; provided, however, that prior to ruling on the application for which a designated subcommittee was used, any member of the chartering authority who was not present at the public hearing shall receive the transcript of the public hearing together with documents submitted for the public hearing. If not ruled upon by that date, the charter application shall be automatically reviewed by the secretary in accordance with the provisions of Section 22-8B-7 NMSA 1978. The charter school applicant and the chartering authority may [however] jointly waive the deadlines set forth in this section.
L. A chartering authority may approve, approve with conditions or deny an application. A chartering authority may deny an application if:
(1) the application is incomplete or inadequate;
(2) the application does not propose to offer an educational program consistent with the requirements and purposes of the Charter Schools Act;
(3) the proposed head administrator or other administrative or fiscal staff was involved with another charter school whose charter was denied or revoked for fiscal mismanagement or the proposed head administrator or other administrative or fiscal staff was discharged from a public school for fiscal mismanagement;
(4) for a proposed state-chartered charter school, it does not request to have the governing body of the charter school designated as a board of finance or the governing body does not qualify as a board of finance; or
(5) the application is otherwise contrary to the best interests of the charter school's projected students, the local community or the school district in whose geographic boundaries the charter school applies to operate.
M. If the chartering authority denies a charter school application or approves the application with conditions, it shall state its reasons for the denial or conditions in writing within fourteen days of the [meeting] hearing. If the chartering authority grants a charter, the approved charter shall be provided to the applicant together with any imposed conditions.
N. A charter school applicant or governing body that has received a notice from the chartering authority denying approval or renewal of the charter shall have a right to a hearing by the secretary as provided in Section 22-8B-7 NMSA 1978."
SECTION 4. Section 22-8B-7 NMSA 1978 (being Laws 1999, Chapter 281, Section 7, as amended) is amended to read:
"22-8B-7. APPEAL OF DENIAL, NONRENEWAL, SUSPENSION OR REVOCATION--PROCEDURES.--
A. The secretary, upon receipt of a notice of appeal or upon the secretary's own motion, shall review decisions of a chartering authority concerning charter schools in accordance with the provisions of this section.
B. A charter applicant or governing body that wishes to appeal a decision of the chartering authority concerning the denial, nonrenewal, suspension or revocation of a charter school or the imposition of conditions that are unacceptable to the charter school or charter school applicant shall provide the secretary with a notice of appeal within thirty days after the chartering authority's decision. The charter school applicant or governing body bringing the appeal shall limit the grounds of the appeal to the grounds for denial, nonrenewal, suspension or revocation or the imposition of conditions that were specified by the chartering authority. The notice shall include a brief statement of the reasons the charter school applicant or governing body contends the chartering authority's decision was in error. Except as provided in Subsection E of this section, [the appeal and review process shall be as follows] within sixty days after receipt of the notice of appeal, the secretary, at a public hearing that may be held in the school district in which the charter school is located or in which the proposed charter school has applied for a charter, shall review the decision of the chartering authority and make findings. If the secretary finds that the chartering authority acted arbitrarily or capriciously, rendered a decision not supported by substantial evidence or did not act in accordance with law, the secretary may reverse the decision of the chartering authority and order the approval of the charter with or without conditions. The decision of the secretary shall be final.
C. The secretary on the secretary's own motion may review a chartering authority's decision to grant a charter. Within sixty days after the making of a motion to review by the secretary, the secretary, at a public hearing that may be held in the school district in which the proposed charter school that has applied for a charter will be located, shall review the decision of the chartering authority and determine whether the decision was arbitrary or capricious or whether the establishment or operation of the proposed charter school would:
(1) violate any federal or state laws concerning civil rights;
(2) violate any court order; or
(3) threaten the health and safety of students within the school district.
D. If the secretary determines that the charter would violate the provisions set forth in Subsection C of this section, the secretary shall deny the charter application. The secretary may extend the time lines established in this section for good cause. The decision of the secretary shall be final.
E. If a chartering authority denies an application or refuses to renew a charter because the public school capital outlay council has determined that the facilities do not meet the standards required by Section 22-8B-4.2 NMSA 1978, the charter school applicant or charter school may appeal the decision to the secretary as otherwise provided in this section; provided that the secretary shall reverse the decision of the chartering authority only if the secretary determines that the decision was arbitrary, capricious, not supported by substantial evidence or otherwise not in accordance with the law.
F. A person aggrieved by a final decision of the secretary may appeal the decision to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978."
SECTION 5. Section 22-8B-13 NMSA 1978 (being Laws 1999, Chapter 281, Section 13, as amended) is amended to read:
"22-8B-13. CHARTER SCHOOL FINANCING.--
A. The amount of funding allocated to a charter school shall be not less than ninety-eight percent of the school-generated program cost. The [school district or division] chartering authority may withhold and use two percent of the school-generated program cost for its administrative support of a charter school.
B. That portion of money from state or federal programs generated by students enrolled in a locally chartered charter school shall be allocated to that charter school serving students eligible for that aid. Any other public school program not offered by the locally chartered charter school shall not be entitled to the share of money generated by a charter school program.
C. When a state-chartered charter school is designated as a board of finance pursuant to Section 22-8-38 NMSA 1978, it shall receive state and federal funds for which it is eligible.
D. Charter schools may apply for all federal funds for which they are eligible.
E. All services centrally or otherwise provided by a local school district, including custodial, maintenance and media services, libraries and warehousing, shall be subject to negotiation between the charter school and the school district. Any services for which a charter school contracts with a school district shall be provided by the district at a reasonable cost."
SECTION 6. Section 22-8B-16 NMSA 1978 (being Laws 2006, Chapter 94, Section 29) is amended to read:
"22-8B-16. PUBLIC EDUCATION COMMISSION--POWERS AND DUTIES.--The commission shall receive applications for initial chartering and renewals of charters for charter schools that want to be chartered by the state and approve or disapprove those charter applications. The commission may approve, deny, suspend or revoke the charter of a state-chartered charter school in accordance with the provisions of the Charter Schools Act. [The chartering authority for a charter school existing on July 1, 2007 may be transferred to the commission; provided, however, that if a school chartered under a previous chartering authority chooses to transfer its chartering authority, it shall continue to operate under the provisions of that charter until its renewal date unless it is suspended or revoked by the commission. An application for a charter school filed with a local school board prior to July 1, 2007, but not approved, may be transferred to the commission on July 1, 2007.]"
SECTION 7. Section 22-8B-17 NMSA 1978 (being Laws 2006, Chapter 94, Section 30) is amended to read:
"22-8B-17. CHARTER SCHOOLS DIVISION--DUTIES.--The "charter schools division" is created in the department. The division shall:
A. provide staff support to the commission; for purposes of this section, "staff support" means employees who are directed to perform duties as delegated to them by the commission in order to render technical assistance to charter schools and to assist the commission in the performance of its statutory duties;
B. provide technical support to all charter schools;
C. review, [and] approve and report to the commission on state-chartered charter school budget matters; and
D. make recommendations to the commission regarding the approval, denial, suspension or revocation of the charter of a state-chartered charter school."
SECTION 8. APPROPRIATION.--One million one hundred thousand dollars ($1,100,000) is appropriated from the general fund to the public education commission for expenditure in fiscal year 2016 to carry out the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2016 shall revert to the general fund.
SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
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