HB0454

HOUSE BILL 454

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Dennis J. Roch

AN ACT

RELATING TO PUBLIC SCHOOLS; PROVIDING CONDITIONS FOR CHARTERING AS A VIRTUAL CHARTER SCHOOL; CHANGING THE DEFINITION OF "SCHOOL" TO RECOGNIZE VIRTUAL CHARTER SCHOOLS; ADDING DEFINITIONS; DISALLOWING CERTAIN PROGRAM UNITS; REDUCING PROGRAM UNITS; PROVIDING FOR AUTOMATIC CLOSURE FOR LACK OF ACADEMIC GROWTH; LIMITING PUBLIC SCHOOL CAPITAL OUTLAY.

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

SECTION 1. Section 22-1-2 NMSA 1978 (being Laws 2003, Chapter 153, Section 3, as amended by Laws 2015, Chapter 58, Section 2 and by Laws 2015, Chapter 108, Section 1) is amended to read:

"22-1-2. DEFINITIONS.--As used in the Public School Code:

A. "academic proficiency" means mastery of the subject-matter knowledge and skills specified in state academic content and performance standards for a student's grade level;

B. "asynchronous instruction" means learning that occurs when students complete assignments and learning on their own time and schedule without live interaction with a teacher;

[B.] C. "charter school" means a school authorized by a chartering authority to operate as a public school and includes a virtual charter school unless excepted by law;

[C.] D. "commission" means the public education commission;

[D.] E. "department" means the public education department;

[E.] F. "home school" means the operation by the parent of a school-age person of a home study program of instruction that provides a basic academic educational program, including reading, language arts, mathematics, social studies and science;

[F.] G. "instructional support provider" means a person who is employed to support the instructional program of a school district, including educational assistant, school counselor, social worker, school nurse, speech-language pathologist, psychologist, physical therapist, occupational therapist, recreational therapist, marriage and family therapist, interpreter for the deaf and diagnostician;

H. "internet-based method" means the use of hardware devices, including computers, laptops and tablets, for students and teachers to communicate to complete course requirements;

[G.] I. "licensed school employee" means teachers, school administrators and instructional support providers;

[H.] J. "local school board" means the policy-setting body of a school district;

[I.] K. "local superintendent" means the chief executive officer of a school district;

L. "local virtual charter school" means a virtual charter school that does not enroll students outside the boundaries of the school district in which the local virtual charter school is located;

[J.] M. "parent" includes a guardian or other person having custody and control of a school-age person;

[K.] N. "private school" means a school, other than a home school, that offers on-site programs of instruction and that is not under the control, supervision or management of a local school board;

[L.] O. "public school" means that part of a school district that is a single attendance center in which instruction is offered by one or more teachers and is discernible as a building or group of buildings generally recognized as either an elementary, middle, junior high or high school or any combination of those and includes a charter school;

[M.] P. "school" means a supervised program of instruction designed to educate [a student in a particular place, manner and subject area] students;

[N.] Q. "school administrator" means a person licensed to administer in a school district and includes school principals, central district administrators and charter school head administrators;

[O.] R. "school-age person" means a person who is at least five years of age prior to 12:01 a.m. on September 1 of the school year and who has not received a high school diploma or its equivalent. A maximum age of twenty-one shall be used for a person who is classified as special education membership as defined in Section 22-8-21 NMSA 1978 or as a resident of a state institution;

[P.] S. "school building" means a public school, an administration building and related school structures or facilities, including teacher housing, that is owned, acquired or constructed by the school district as necessary to carry out the functions of the school district;

[Q.] T. "school bus private owner" means a person, other than a school district, the department, the state or any other political subdivision of the state, that owns a school bus;

[R.] U. "school district" means an area of land established as a political subdivision of the state for the administration of public schools and segregated geographically for taxation and bonding purposes;

[S.] V. "school employee" includes licensed and nonlicensed employees of a school district;

[T.] W. "school principal" means the chief instructional leader and administrative head of a public school;

[U.] X. "school year" means the total number of contract days offered by public schools in a school district during a period of twelve consecutive months;

[V.] Y. "secretary" means the secretary of public education;

[W.] Z. "state agency" or "state institution" means the New Mexico military institute, New Mexico school for the blind and visually impaired, New Mexico school for the deaf, New Mexico boys' school, girls' welfare home, New Mexico youth diagnostic and development center, Sequoyah adolescent treatment center, Carrie Tingley crippled children's hospital, New Mexico behavioral health institute at Las Vegas and any other state agency responsible for educating resident children;

[X.] AA. "state educational institution" means an institution enumerated in Article 12, Section 11 of the constitution of New Mexico;

BB. "statewide virtual charter school" means a virtual charter school that enrolls students outside the boundaries of the school district in which the statewide virtual charter school is located;

[Y.] CC. "substitute teacher" means a person who holds a certificate to substitute for a teacher in the classroom;

DD. "synchronous instruction" means learning that occurs with all students in a class with a teacher, receiving instruction and completing work at the same time; provided that students do not necessarily have to be in the same location;

[Z.] EE. "teacher" means a person who holds a level one, two or three-A license and whose primary duty is classroom instruction or the supervision, below the school principal level, of an instructional program or whose duties include curriculum development, peer intervention, peer coaching or mentoring or serving as a resource teacher for other teachers;

FF. "virtual charter school" means a charter school in which instruction and curriculum are delivered predominantly via internet-based methods;

[AA.] GG. "certified school instructor" means a teacher or instructional support provider; and

[BB.] HH. "certified school employee" or "certified school personnel" means a licensed school employee."

SECTION 2. Section 22-8-23.5 NMSA 1978 (being Laws 2003, Chapter 144, Section 3 and Laws 2003, Chapter 152, Section 8) is amended to read:

"22-8-23.5. FINE ARTS EDUCATION PROGRAM UNITS.--The number of fine arts education program units is determined by multiplying the full-time-equivalent MEM in programs implemented in accordance with the provisions of the Fine Arts Education Act by the cost differential factor of 0.0166 for fiscal year 2004, 0.0332 for fiscal year 2005 and 0.05 for fiscal year 2006 and succeeding fiscal years. Virtual charter schools are not entitled to fine arts education program units."

SECTION 3. Section 22-8-23.7 NMSA 1978 (being Laws 2007, Chapter 348, Section 1) is amended to read:

"22-8-23.7. ELEMENTARY PHYSICAL EDUCATION PROGRAM UNITS.--

A. The number of elementary physical education program units is determined by multiplying the number of students in elementary physical education by the cost differential factor of six one-hundredths.

B. As used in this section, "elementary physical education" means eligible physical education programs that serve students in kindergarten through grade six in a public school classified by the department as an elementary school.

C. Virtual charter schools are not entitled to elementary physical education program units."

SECTION 4. Section 22-8-26 NMSA 1978 (being Laws 1967, Chapter 16, Section 76, as amended) is amended to read:

"22-8-26. TRANSPORTATION DISTRIBUTION.--

A. Except as otherwise provided in this section, money in the transportation distribution of the public school fund shall be used only for the purpose of making payments to each school district or state-chartered charter school, excluding a virtual charter school, for the to-and-from school transportation costs of students in grades kindergarten through twelve attending public school within the school district or state-chartered charter school and of three- and four-year-old children who meet the department-approved criteria and definition of developmentally disabled and for transportation of students to and from their regular attendance centers and the place where vocational education programs are being offered.

B. In the event a school district's or state-chartered charter school's transportation allocation exceeds the amount required to meet obligations to provide to-and-from transportation, three- and four-year-old developmentally disabled transportation and vocational education transportation, fifty percent of the remaining balance shall be deposited in the transportation emergency fund.

C. Of the excess amount retained by the school district or state-chartered charter school, at least

twenty-five percent shall be used for to-and-from transportation-related services, excluding salaries and benefits, and up to twenty-five percent may be used for other transportation-related services, excluding salaries and benefits as defined by rule of the department.

D. In the event the sum of the proposed transportation allocations to each school district or state-chartered charter school exceeds the amounts in the transportation distribution, the allocation to each school district or state-chartered charter school shall be reduced in the proportion that the school district or state-chartered charter school allocation bears to the total statewide transportation distribution.

E. A local school board or governing body of a state-chartered charter school, with the approval of the state transportation director, may provide additional transportation services pursuant to Section 22-16-4 NMSA 1978 to meet established program needs.

F. Nothing in this section prohibits the use of school buses to transport the general public pursuant to the Emergency Transportation Act.

G. This section does not apply to virtual charter schools."

SECTION 5. A new section of the Public School Finance Act is enacted to read:

"[NEW MATERIAL] VIRTUAL CHARTER SCHOOLS--PROGRAM UNIT REDUCTIONS.--For a virtual charter school, each category of program unit listed in Section 22-8-18 NMSA 1978 that applies to the virtual charter school shall be reduced by twenty-five percent before the program cost is calculated and the state equalization guarantee distribution for the virtual charter school is determined and distributed pursuant to Section 22-8-25 NMSA 1978."

SECTION 6. 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. No member of a local school board shall be a member of a governing body for a charter school or employed in any capacity by a locally chartered charter school located within the local school board's school district during the term of office for which the member was elected or appointed.

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.

U. Students enrolled in a virtual charter school in kindergarten through grade five shall receive only synchronous instruction. Students enrolled in a virtual charter school in grades six through twelve shall receive synchronous instruction or a combination of synchronous and asynchronous instruction."

SECTION 7. 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.--

A. A local school board has the authority to approve the establishment of a locally chartered charter school within that [local] school board's district, including local virtual charter schools.

B. A statewide virtual charter school shall not be authorized as a locally chartered charter school. After July 1, 2017, any previously locally chartered virtual charter school that is enrolling students outside the boundaries of the school district in which the charter school is located shall apply for renewal of its charter with the commission as a state-chartered charter school when its current charter expires.

[B.] C. 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 school district in which the charter school is proposed to be located of their intent to establish a charter school. The organizers of a statewide virtual charter school shall notify all school districts in the state of their intent to establish a statewide virtual charter school. Failure to notify may result in an application not being accepted.

[C.] D. Except for a statewide virtual charter school, a charter school applicant [shall] may apply to either a local school board or the commission for a charter. If an application is submitted to a chartering authority, it must process the application. Applications for initial charters shall be submitted by June 1 to be eligible for consideration for the following fiscal year; provided that the June 1 deadline may be waived upon agreement of the applicant and the chartering authority.

[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 governing body has qualified to be a board of finance.

[I.] J. The chartering authority shall receive and review all applications for charter schools submitted to it. The chartering authority shall not charge application fees.

[J.] K. Except as otherwise provided in this subsection, 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] public input to assist it in its decision whether to grant a charter school application. The public hearing for a statewide virtual charter school application shall be in held in Santa Fe. Once a date for the public hearing required by this section has been set for chartering of a proposed statewide virtual charter school, the organizers shall notify every school district in New Mexico of the date of the public hearing.

L. 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. [Community] Public 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; and, for statewide virtual charter schools, any local school board, school district or other public participants from around the state.

[K.] M. The chartering authority shall rule on the application for a charter school in a public meeting 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.] N. 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 or, in the case of a statewide virtual charter school, any other public schools in the state.

[M.] O. 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. If the chartering authority grants a charter, the approved charter shall be provided to the applicant together with any imposed conditions.

[N.] P. A charter school that has received a notice from the chartering authority denying approval of the charter shall have a right to a hearing by the secretary as provided in Section 22-8B-7 NMSA 1978."

SECTION 8. 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 and become part of the charter contract.

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

D. A chartering authority shall monitor the fiscal, overall governance and student performance and legal compliance of the charter schools that it oversees, including reviewing the data provided by the charter school to support ongoing evaluation according to the charter contract. [Every] A 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] shall comply with the provisions of the Charter Schools Act and the terms of the charter contract and it 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] Each 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] each charter school's 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.

I. No later than two hundred seventy days prior to the date [in] on which the charter expires, the governing body may submit a renewal application to the chartering authority. A charter school that is not a virtual 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 prior to the expiration of the charter.

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, including achieving the goals, objectives, student performance outcomes, state standards of excellence and other terms of the 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) 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.

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 standards of excellence or student performance standards identified in the charter 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.

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.

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

"[NEW MATERIAL] VIRTUAL CHARTER SCHOOLS--FAILURE TO SHOW STUDENT GROWTH--PROBATION, REVOCATION OR NONRENEWAL OF CHARTER.--

A. If a virtual charter school fails to earn at least thirty-five percent of the sum of total possible points in student growth factors described in Subparagraphs (b) and (c) of Paragraphs (1) and (2), respectively, of Subsection B of Section 22-2E-4 NMSA 1978 over three consecutive years immediately preceding the current school year, the chartering authority shall place the virtual charter school on probation. If the virtual charter school does not earn at least thirty-five percent of the sum of total points in the student growth factors described in Subparagraphs (b) and (c) of Paragraph (1) and (2), respectively, during the probationary year, the virtual charter school shall be closed at the end of the probationary year and its charter shall be revoked.

B. A virtual charter school that is put on probation shall notify all school personnel and parents of students within thirty days of being placed on probation about the probation and the possibility that the virtual charter school may be closed at the end of the school year.

C. The chartering authority of a virtual charter school on probation shall delineate additional requirements for the virtual charter school to support improved student outcomes.

D. The 2017-2018 school year shall be the first probationary year based on student growth factors from the 2014-2015 through 2016-2017 school years, and the first year of virtual charter school closures pursuant to those subsections shall be the 2018-2019 school year, except as provided in Subsection H of this section.

E. Except as provided in Subsection D of this section, the chartering authority shall develop processes for probation, revocation or nonrenewal of a charter that:

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

(2) allow the virtual charter school a reasonable amount of time to prepare and submit a response to the chartering authority's action as provided in this section; and

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

F. If a chartering authority revokes or does not renew a charter for a reason other than that provided in Subsection A of this section, the chartering authority shall state in writing its reasons for the revocation or nonrenewal.

G. A decision to revoke or not to renew a charter for a reason other than that provided in Subsection A of this section may be appealed by the governing body pursuant to Section 22-8B-7 NMSA 1978.

H. A virtual charter school shall not be closed by its chartering authority before the end of the academic quarter, trimester or semester, unless the department determines an earlier closure is necessary for the health or safety of students and staff."

SECTION 10. Section 22-25-3 NMSA 1978 (being Laws 1975 (S.S.), Chapter 5, Section 3, as amended) is amended to read:

"22-25-3. AUTHORIZATION FOR LOCAL SCHOOL BOARD TO SUBMIT QUESTION OF CAPITAL IMPROVEMENTS TAX IMPOSITION.--

A. A local school board may adopt a resolution to submit to the qualified electors of the school district the question of whether a property tax should be imposed upon the net taxable value of property allocated to the school district under the Property Tax Code at a rate not to exceed that specified in the resolution for the purpose of capital improvements in the school district. The resolution shall:

(1) identify the capital improvements for which the revenue proposed to be produced will be used;

(2) specify the rate of the proposed tax, which shall not exceed two dollars ($2.00) on each one thousand dollars ($1,000) of net taxable value of property allocated to the school district under the Property Tax Code;

(3) specify the date an election will be held to submit the question of imposition of the tax to the qualified electors of the district; and

(4) limit the imposition of the proposed tax to no more than six property tax years.

B. On or after July 1, 2009, a resolution submitted to the qualified electors pursuant to Subsection A of this section shall include capital improvements funding for [a] locally chartered or state-chartered charter [school] schools, except virtual charter schools, located within the school district if [the] a charter school timely provides the necessary information to the school district for inclusion in the resolution that identifies the capital improvements of the charter school for which the revenue proposed to be produced will be used."

SECTION 11. Section 22-26-3 NMSA 1978 (being Laws 1983, Chapter 163, Section 3, as amended) is amended to read:

"22-26-3. AUTHORIZATION FOR LOCAL SCHOOL BOARD TO SUBMIT QUESTION OF CAPITAL IMPROVEMENTS TAX IMPOSITION.--

A. A local school board may adopt a resolution to submit to the qualified electors of the school district the question of whether a property tax at a rate not to exceed the rate specified in the resolution should be imposed upon the net taxable value of property allocated to the school district under the Property Tax Code for the purpose of capital improvements to public schools in the school district. The resolution shall:

(1) identify the capital improvements for which the revenue proposed to be produced will be used;

(2) specify the rate of the proposed tax, which shall not exceed ten dollars ($10.00) on each one thousand dollars ($1,000) of net taxable value of property allocated to the school district under the Property Tax Code;

(3) specify the date an election will be held to submit the question of imposition of the tax to the qualified electors of the district; and

(4) limit the imposition of the proposed tax to no more than six property tax years.

B. After July 1, 2007, a resolution submitted to the qualified electors pursuant to Subsection A of this section shall include capital improvements funding for [a] locally chartered or state-chartered charter [school] schools, except virtual charter schools, located within the school district if:

(1) [the] a charter school timely provides the necessary information to the school district for inclusion on the resolution that identifies the capital improvements of the charter school for which the revenue proposed to be produced will be used; and

(2) the capital improvements are included in the five-year facilities plan:

(a) of the school district, if the charter school is a locally chartered charter school; or

(b) of the charter school, if the charter school is a state-chartered charter school."

SECTION 12. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.