AN ACT CONCERNING CHARTER SCHOOLS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 10-66bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) [On and after July 1, 1997, the] The State Board of Education may grant, within available appropriations, charters for local and state charter schools in accordance with this section.

(b) Any person, association, corporation, organization or other entity, public or independent institution of higher education, local or regional board of education or two or more boards of education cooperatively, or regional educational service center may apply to the Commissioner of Education, at such time and in such manner as the commissioner prescribes, to establish a charter school, provided no nonpublic elementary or secondary school may be established as a charter school and no parent or group of parents providing home instruction may establish a charter school for such instruction.

(c) The State Board of Education shall review, annually, all applications and grant charters in accordance with subsection (f) of this section. (1) Except as provided for in [subdivision (2)] subdivisions (2) and (3) of this subsection, no state charter school shall enroll (A) (i) more than two hundred fifty students, or (ii) in the case of a kindergarten to grade eight, inclusive, school, more than three hundred students, or (B) twenty-five per cent of the enrollment of the school district in which the state charter school is to be located, whichever is less. (2) In the case of a state charter school found by the State Board of Education to have a demonstrated record of achievement, such school may, upon application to and approval by said board, enroll up to eighty-five students per grade, if within available appropriations. The State Board of Education shall give preference to applicants for charter schools that will serve students who reside in a priority school district pursuant to section 10-266p or in a district in which seventy-five per cent or more of the enrolled students are members of racial or ethnic minorities and to applicants for state charter schools that will be located at a work-site or that are institutions of higher education. In determining whether to grant a charter, the State Board of Education shall consider the effect of the proposed charter school on the reduction of racial, ethnic and economic isolation in the region in which it is to be located, the regional distribution of charter schools in the state and the potential of over-concentration of charter schools within a school district or in contiguous school districts. (3) (A) For the 2007-2008 school year, the State Board of Education shall approve the enrollment of not fewer than six hundred sixty students in addition to the number of students permitted pursuant to subdivisions (1) and (2) of this subsection at state charter schools with initial charters approved on or before July 1, 2007. Not later than July 1, 2007, such schools shall submit plans concerning increased enrollment to the State Board of Education. The increased enrollment numbers per school shall be determined in accordance with such plans. (B) For the 2008-2009 school year, the State Board of Education shall approve the enrollment of not fewer than five hundred ninety students in addition to the number of students permitted pursuant to subdivisions (1) and (2) of this subsection, at state charter schools with initial charters approved on or before July 1, 2008. Not later than July 1, 2008, such schools shall submit plans concerning increased enrollment to the State Board of Education. The increased enrollment numbers per school shall be determined in accordance with such plans.

(d) Applications pursuant to this section shall include a description of: (1) The mission, purpose and any specialized focus of the proposed charter school; (2) the interest in the community for the establishment of the charter school; (3) the school governance and procedures for the establishment of a governing council that (A) includes teachers and parents and guardians of students enrolled in the school, and (B) is responsible for the oversight of charter school operations, provided no member or employee of the governing council may have a personal or financial interest in the assets, real or personal, of the school; (4) the financial plan for operation of the school, provided no application fees or other fees for attendance, except as provided in section 10-66ee, may be charged; (5) the educational program, instructional methodology and services to be offered to students; (6) the number and qualifications of teachers and administrators to be employed in the school; (7) the organization of the school in terms of the ages or grades to be taught and the total estimated enrollment of the school; (8) the student admission criteria and procedures to (A) ensure effective public information, (B) ensure open access on a space available basis, (C) promote a diverse student body, and (D) ensure that the school complies with the provisions of section 10-15c and that it does not discriminate on the basis of disability, athletic performance or proficiency in the English language, provided the school may limit enrollment to a particular grade level or specialized educational focus and, if there is not space available for all students seeking enrollment, the school may give preference to siblings but shall otherwise determine enrollment by a lottery; (9) a means to assess student performance that includes participation in state-wide mastery examinations pursuant to chapter 163c; (10) procedures for teacher evaluation and professional development for teachers and administrators; (11) the provision of school facilities, pupil transportation and student health and welfare services; (12) procedures to encourage involvement by parents and guardians of enrolled students in student learning, school activities and school decision-making; (13) document efforts to increase the racial and ethnic diversity of staff; and (14) a five-year plan to sustain the maintenance and operation of the school. Subject to the provisions of subsection (b) of section 10-66dd, an application may include, or a charter school may file, requests to waive provisions of the general statutes and regulations not required by sections 10-66aa to 10-66ff, inclusive, and which are within the jurisdiction of the State Board of Education.

(e) An application for the establishment of a local charter school shall be submitted to the local or regional board of education of the school district in which the local charter school is to be located for approval pursuant to this subsection. The local or regional board of education shall: (1) Review the application; (2) hold a public hearing in the school district on such application; (3) survey teachers and parents in the school district to determine if there is sufficient interest in the establishment and operation of the local charter school; and (4) vote on a complete application not later than sixty days after the date of receipt of such application. Such board of education may approve the application by a majority vote of the members of the board present and voting at a regular or special meeting of the board called for such purpose. If the application is approved, the board shall forward the application to the State Board of Education. The State Board of Education shall vote on the application not later than seventy-five days after the date of receipt of such application. Subject to the provisions of subsection (c) of this section, the State Board of Education may approve the application and grant the charter for the local charter school or reject such application by a majority vote of the members of the state board present and voting at a regular or special meeting of the state board called for such purpose. The State Board of Education may condition the opening of such school on the school's meeting certain conditions determined by the Commissioner of Education to be necessary and may authorize the commissioner to release the charter when the commissioner determines such conditions are met. The state board may grant the charter for the local charter school for a period of time of up to five years and may allow the applicant to delay its opening for a period of up to one school year in order for the applicant to fully prepare to provide appropriate instructional services.

(f) Annually on or before July fifteenth, the State Board of Education shall issue a request for proposals to solicit charter applications from any interested person, association, corporation, organization or other entity, public or independent institution of higher education, local or regional board of education or two or more boards of education cooperatively, or regional educational service center. Any such person or entity may apply to the Commissioner of Education, at such time and in such manner as the commissioner prescribes within the request for proposals, to establish a charter school. An application for the establishment of a state charter school shall be (1) submitted to the State Board of Education for approval in accordance with the provisions of this subsection and any requirements stated in the request for proposals, and (2) filed with the local or regional board of education in the school district in which the charter school is to be located. The state board shall: (A) Review such application; (B) hold a public hearing on such application in the school district in which such state charter school is to be located; (C) solicit and review comments on the application from the local or regional board of education for the school district in which such charter school is to be located and from the local or regional boards of education for school districts that are contiguous to the district in which such school is to be located; and (D) vote on a complete application not later than [seventy-five days after the date of receipt of such application] December fifteenth. The State Board of Education may approve an application and grant the charter for the state charter school by a majority vote of the members of the state board present and voting at a regular or special meeting of the state board called for such purpose. The State Board of Education may condition the opening of such school on the school's meeting certain conditions determined by the Commissioner of Education to be necessary and may authorize the commissioner to release the charter when the commissioner determines such conditions are met. Charters shall be granted for a period of time of up to five years and may allow the applicant to delay its opening for a period of up to one school year in order for the applicant to fully prepare to provide appropriate instructional services.

(g) Annually on or before July fifteenth, the State Board of Education shall issue a request for proposals to solicit charter applications for existing charter school operators for additional site charters to operate an additional school or schools. Only persons, associations, corporations, organizations or other entities, public or independent institutions of higher education, local or regional boards of education, or cooperatives between local or regional boards of education, or regional educational service centers currently operating an existing charter school may apply for an additional site charter. An application for the establishment of an additional site charter school or schools shall be (1) submitted to the State Board of Education for approval in accordance with the provisions of this subsection and any requirements stated in the request for proposals, and (2) filed with the local or regional board of education in the school district in which the additional site charter school or schools shall be located. The State Board of Education shall: (A) Review such application; (B) hold a public hearing on such application in the school district in which such additional site state charter school shall be located; (C) solicit and review comments on the application from the local or regional board of education for the school district in which such additional site charter school or schools shall be located and from the local or regional boards of education for school districts that are contiguous to the district in which such additional site charter school or schools shall be located; and (D) vote on a complete application not later than December fifteenth. The State Board of Education may only grant an additional site charter to any existing charter school operator operating a charter school that has received a progress report rating of an "A" and a quality review rating score of "1" on its ratings according to the State Department of Education's charter school accountability system for two or more consecutive years immediately prior to the application for the additional site charter, or received comparable ratings for two consecutive years immediately prior to the application for the additional site charter under the accountability system in the state in which the charter school operates in accordance with the provisions of section 10-66cc, as amended by this act. The State Board of Education may approve an application and grant the charter for the additional site state charter school or schools by a majority vote of the members of the state board present and voting at a regular or special meeting of the state board called for such purpose. The State Board of Education may condition the opening of such additional site school or schools on the schools or the charter school operator's meeting certain conditions determined by the Commissioner of Education to be necessary and may authorize the commissioner to release the charter when the commissioner determines such conditions are met. Charters may be granted for a period of time of up to five years, and for up to five additional site schools. In considering whether to grant an additional site charter to any existing charter school operator, the State Board of Education shall give preference in granting additional site charters to existing charter school operators who have a demonstrated record of performance in raising test scores, with particular consideration being given to performance gains in test scores for black and Hispanic students, economically disadvantaged students, students with disabilities and English language learners.

[g] (h) Charters may be renewed, upon application, in accordance with the provisions of this section for the granting of such charters. Upon application for such renewal, the State Board of Education may commission an independent appraisal of the performance of the charter school that includes, but is not limited to, an evaluation of the school's compliance with the provisions of this section. The State Board of Education shall consider the results of any such appraisal in determining whether to renew such charter. The State Board of Education may deny an application for the renewal of a charter if (1) student progress has not been sufficiently demonstrated, as determined by the commissioner, (2) the governing council has not been sufficiently responsible for the operation of the school or has misused or spent public funds in a manner that is detrimental to the educational interests of the students attending the charter school, or (3) the school has not been in compliance with applicable laws and regulations. If the State Board of Education does not renew a charter, it shall notify the governing council of the charter school of the reasons for such nonrenewal.

[(h)] (i) The Commissioner of Education may at any time place a charter school on probation if (1) the school has failed to (A) adequately demonstrate student progress, as determined by the commissioner, or achieve a progress report rating of "C" or higher and a quality review of "3" or higher in accordance with the provisions of section 10-66cc, as amended by this act, (B) comply with the terms of its charter or with applicable laws and regulations, (C) achieve measurable progress in reducing racial, ethnic and economic isolation, or (D) maintain its nonsectarian status, or (2) the governing council has demonstrated an inability to provide effective leadership to oversee the operation of the charter school or has not ensured that public funds are expended prudently or in a manner required by law. If a charter school is placed on probation, the

commissioner shall provide written notice to the charter school of the reasons for such placement, not later than five days after the placement, and shall require the charter school to file with the Department of Education a corrective action plan acceptable to the commissioner not later than thirty-five days from the date of such placement. The charter school shall implement a corrective action plan accepted by the commissioner not later than thirty days after the date of such acceptance. The commissioner may impose any additional terms of probation on the school that the commissioner deems necessary to protect the educational or financial interests of the state. The charter school shall comply with any such additional terms not later than thirty days after the date of their imposition. The commissioner shall determine the length of time of the probationary period, which may be up to one year, provided the commissioner may extend such period, for up to one additional year, if the commissioner deems it necessary. In the event

that the charter school does not file or implement the corrective action plan within the required time period or does not comply with any additional terms within the required time period, the Commissioner of Education may withhold grant funds from the school until the plan is fully implemented or the school complies with the terms of probation, provided the commissioner may extend the time period for such implementation and compliance for good cause shown. Whenever a charter school is placed on probation, the commissioner shall notify the parents or guardians of students attending the school of the probationary status of the school and the reasons for such status. During the term of probation, the commissioner may require the school to file interim reports concerning any matter the commissioner deems relevant to the probationary status of the school, including financial reports or statements. No charter school on probation may increase its student enrollment or engage in the recruitment of new students without the consent of the commissioner.

[(i)] (j) The State Board of Education may revoke a charter if a charter school has failed to: (1) Comply with the terms of probation, including the failure to file or implement a corrective action plan; (2) demonstrate satisfactory student progress, as determined by the commissioner; (3) comply with the terms of its charter or applicable laws and regulations; [or] (4) manage its public funds in a prudent or legal manner; or (5) for three consecutive years, receive a progress report rating of "C" or higher and a quality review rating of "3" or higher in accordance with the provisions of section 10-66cc, as amended by this act. Unless an emergency exists, prior to revoking a charter, the State Board of Education shall provide the governing council of the charter school with a written notice of the reasons for the revocation, including the identification of specific incidents of noncompliance with the law, regulation or charter or other matters warranting revocation of the charter. It shall also provide the governing council with the opportunity to demonstrate compliance with all requirements for the retention of its charter by providing the State Board of Education or a subcommittee of the board, as determined by the State Board of Education, with a written or oral presentation. Such presentation shall include an opportunity for the governing council to present documentary and testimonial evidence to refute the facts cited by the State Board of Education for the proposed revocation or in justification of its activities. Such opportunity shall not constitute a contested case within the meaning of chapter 54. The State Board of Education shall determine, not later than thirty days after the date of an oral presentation or receipt of a written presentation, whether and when the charter shall be revoked and notify the governing council of the decision and the reasons therefor. A decision to revoke a charter shall not constitute a final decision for purposes of chapter 54. In the event an emergency exists in which the commissioner finds that there is imminent harm to the students attending a charter school, the State Board of Education may immediately revoke the charter of the school, provided the notice concerning the reasons for the revocation is sent to the governing council not later than ten days after the date of revocation and the governing council is provided an opportunity to make a presentation to the board not later than twenty days from the date of such notice.

Sec. 2. Section 10-66cc of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(a) The governing council of a charter school shall submit annually, to the Commissioner of Education, a school profile as described in subsection (c) of section 10-220.

[(b) The governing council of each charter school shall submit annually, to the Commissioner of Education, at such time and in such manner as the commissioner prescribes, and, in the case of a local charter school, to the local or regional board of education for the school district in which the school is located, a report on the condition of the school, including (1) the educational progress of students in the school, (2) the financial condition of the school, including a certified audit statement of all revenues and expenditures, (3) accomplishment of the mission, purpose and any specialized focus of the charter school, (4) the racial and ethnic composition of the student body and efforts taken to increase the racial and ethnic diversity of the student body, and (5) best practices employed by the school that contribute significantly to the academic success of students.]

(b) Not later than February 1, 2008, the Department of Education, in consultation with representatives of state charter schools, shall develop guidelines for a charter school accountability system. The accountability system shall include two components, (1) a progress report component, as provided for in subsection (c) of this section, and (2) a quality review component, as provided for in subsection (c) of this section. The charter school accountability guidelines shall be made available to charter schools and the public not later than April 1, 2008. For the 2008-2009 school year and each school year thereafter, the Department of Education shall apply the accountability system criteria to each charter school. The department shall release initial ratings based on the application of the accountability system criteria not later than December 1, 2010, and for each subsequent evaluation period, not later than each December first thereafter. Charter school accountability ratings shall be made available by the Department of Education and also by each charter school to the public upon request. Annually, charter schools shall be required to publish the accountability ratings to parents of students attending charter schools.

(c) The progress report component of the Department of Education's accountability system shall provide for each charter school to be measured on an annual basis by the department based on measurable improvements in individual student's performance on standardized tests in accordance with the provisions of section 10-14n, and by other objective measures as determined appropriate by the State Board of Education. The progress reports for charter schools serving students in grades nine to twelve, inclusive, may include analysis of graduation rates and rates of enrollment in post-secondary institutions of higher education. Based on the accountability criteria described in this subsection, the department shall award each charter school a specific rating, either an A, B, C, D or F. A rating of "A" shall be considered the highest rating and may only be awarded if the charter school meets the requirements provided for in the No Child Left Behind Act, P. L. 107-110, concerning adequate yearly progress, and a rating of "F" shall be considered the lowest rating. In assigning the rating to each charter school, the department shall consider a more favorable rating for a charter school with a demonstrated record of measurable gains for students classified as English language learners, students with disabilities and students who scored below the department's state-wide goal on a prior administration of an examination in accordance with the provisions of section 10-14n. Each charter school shall be assessed against the state-wide average on such criteria, against the average scores of the school district in which the charter school is located, and against scores for schools with similar demographic characteristics, as determined by the department.

(d) The quality review component of the Department of Education's accountability system shall provide for each charter school to be measured on an annual basis by the department based on (1) the financial condition of the school, including a certified audit statement of all revenues and expenditures, (2) accomplishment of the mission, purpose and any specialized focus of the charter school, (3) the racial and ethnic composition of the student body and efforts taken to increase the racial and ethnic diversity of the student body, (4) best practices employed by the school that contribute significantly to the academic success of students, and (5) other measures as determined appropriate by the State Board of Education. The process for quality review shall include a requirement that each charter school conduct an in-depth self-evaluation in a manner prescribed by the Commissioner of Education, addressing the criteria for evaluation provided for in this subsection. As part of the review process, the department shall survey each staff member and student of charter schools, and the parent or guardian of each such student. The survey shall include questions based on the criteria set forth in subdivisions (2) to (4), inclusive, of this subsection. The department shall annually publish the results of such survey. Based on the accountability criteria described in this subsection, the department shall award each charter school a specific quality review rating, consisting of a 1, 2, 3, 4 or 5. A rating score of "1" shall be considered the highest rating, and a rating score of "5" the lowest.

Sec. 3. Subsection (c) of section 10-66ee of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(c) (1) The state shall pay in accordance with this subsection, to the fiscal authority for a state charter school [, for the fiscal year ending June 30, 2006, seven thousand six hundred twenty-five dollars for each student enrolled in such school, and for the fiscal year ending June 30, 2007, and for each fiscal year thereafter, eight thousand dollars] approved by the state board, for each student enrolled in such school an amount equal to the state-wide net current expenditures per student as described in subdivision (3) of this subsection for the previous year increased by the amount of the average annual increase in the state-wide net current expenditures per student over the previous three years, plus an amount that is the average of all state charter schools' per student facilities expenditure for the previous year, as determined by the Commissioner of Education on an annual basis, less an amount determined by the Commissioner of Education on an annual basis to be the average costs paid during the previous year on a state-wide basis by local and regional boards of education for special education costs in excess of the average per pupil educational costs of such boards of education. Such payments shall be made as follows: Twenty-five per cent of the amount not later than July fifteenth and September fifteenth based on estimated student enrollment on May first, and twenty-five per cent of the amount not later than January fifteenth and the remaining amount not later than April fifteenth, each based on student enrollment on October first. If, for any fiscal year, the total amount appropriated for grants pursuant to this subdivision exceeds [eight thousand dollars per student] the per student grant calculated pursuant to this subdivision, the amount of such grants payable per student shall be increased proportionately, except that such per student increase shall not exceed seventy dollars. Any amount of such appropriation remaining after such per student increase shall be used by the Department of Education for supplemental grants to interdistrict magnet schools pursuant to subdivision (2) of subsection (c) of section 10-264l. [For the fiscal year ending June 30, 2005, such increase shall be limited to one hundred ten dollars per student.] (2) In the case of a student identified as requiring special education, the school district in which the student resides shall: (A) Hold the planning and placement team meeting for such student and shall invite representatives from the charter school to participate in such meeting; and (B) pay the state charter school, on a quarterly basis, an amount equal to the difference between the reasonable cost of educating such student and the sum of the amount received by the state charter school for such student pursuant to subdivision (1) of this subsection and amounts received from other state, federal, local or private sources calculated on a per pupil basis. Such school district shall be eligible for reimbursement pursuant to section 10-76g. The charter school a student requiring special education attends shall be responsible for ensuring that such student receives the services mandated by the student's individualized education program whether such services are provided by the charter school or by the school district in which the student resides. (3) For purposes of subdivision (1) of this subsection, "net current expenditures per student" means the average of the net current expenditures of a town, as described in subdivision (3) of subsection (a) of section 10-261, divided by the number of resident students of a town, as described in subdivision (22) of section 10-262f. The "state-wide net current expenditures per student" means the average of the net current expenditures per student of all towns.

Sec. 4. Subsection (f) of section 10-66ee of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2007):

(f) The local or regional board of education of the school district in which the charter school is located shall provide transportation services for students of the charter school who reside in such school district pursuant to section 10-273a unless the charter school makes other arrangements for such transportation. Any local or regional board of education [may] shall provide transportation services to a student attending a charter school outside of the district in which the student resides and [, if it elects to provide such transportation,] shall be reimbursed pursuant to section 10-266m for the reasonable costs of such transportation. Any local or regional board of education providing transportation services under this subsection may suspend such services in accordance with the provisions of section 10-233c. [The parent or guardian of any student denied the transportation services required to be provided pursuant to this subsection may appeal such denial in the manner provided in sections 10-186 and 10-187.]

Statement of Purpose:

To allow for an increase in charter school enrollments for existing charter schools, to provide for a new per student funding formula for charter schools, to provide for a new accountability system for charter schools and for expansion of existing charter schools to new sites and to require boards of education to transport students to charter schools outside of the district.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]