A454

An Act concerning charter schools and revising various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 17 of P.L.1995, c.426 (C.18A:36A-17) is amended to read as follows:

17. A charter granted by the commissioner pursuant to the provisions of [this act] P.L.1995, c.426 (C.18A:36A-1 et seq.) shall be granted for a four-year period and may be renewed for a five-year period. The commissioner may revoke a school's charter if the school has not fulfilled any condition imposed by the commissioner in connection with the granting of the charter or if the school has violated any provision of its charter. The commissioner may place the charter school on probationary status to allow the implementation of a remedial plan after which, if the plan is unsuccessful, the charter may be summarily revoked. The commissioner shall develop procedures and guidelines for the revocation and renewal of a school's charter.

a. No later than August 1 of each school year, the commissioner shall provide a charter renewal application and guidance to each charter school whose charter will expire at the end of that school year. The guidance shall include the criteria that the commissioner will use in determining whether to renew a charter, which shall be based on the charter agreement.

b. In order to determine whether a charter should be renewed, no later than August 1 of each school year, the commissioner shall issue a charter school performance report for each charter school whose charter will expire at the end of that school year. The charter school performance report shall provide a summary of the charter school’s performance record, based on data required in the charter agreement and the charter school’s progress toward other goals in its charter agreement, and shall identify any matters that the commissioner believes may jeopardize the renewal of the charter. The charter school shall have 30 days to issue a response to the performance report. The response shall include, but need not be limited to:

(1) information not included in the performance report that may support the case for the charter’s renewal;

(2) a description of improvements that are currently being undertaken or are planned to be implemented during the next term upon the charter’s renewal; and

(3) if necessary, a discussion of any discrepancies that have been included in the performance report.

c. No later than October 15 of the school year in which its charter will expire, a charter school board of trustees shall submit a charter school renewal application to the commissioner.

d. No later than 90 days after the receipt of a complete charter school renewal application, the commissioner shall make a determination to renew or not to renew a charter. In making this determination, the commissioner shall ensure that the decision is based on evidence of the charter school’s performance during the term of its charter in accordance with the charter agreement, and that any data used in making the determination is available to the charter school and the public.

e. No later than 30 days after a determination to renew or not to renew a charter, the commissioner shall publish a report detailing the reasons for the determination and shall provide the report to the charter school. The report shall be posted on the Department of Education’s website.

f. The commissioner may, at any time, and after affording the charter school an appropriate opportunity to be heard, revoke a charter or place a charter school in probationary status if the commissioner determines that a charter school has:

(1) committed a material and substantial violation of any of the terms, conditions, or procedures required pursuant to P.L.1995, c.426 (C.18A:36A-1 et seq.) or included in the charter agreement;

(2) failed to meet or make sufficient progress towards the performance expectations established in its charter agreement;

(3) failed to meet generally accepted standards of fiscal management; or

(4) violated in a material and substantial manner any provision of a law, rule, or regulation from which it is not exempt.

g. The commissioner shall develop a procedure for revoking a charter. At a minimum, the procedure shall include the following:

(1) the provision of timely notification to the charter school board of trustees, including the reasons why revocation is being considered;

(2) a reasonable amount of time for the charter school board of trustees to develop a response to the concerns raised by the commissioner;

(3) an orderly proceeding, which may be recorded, at which the board of trustees may present information, through documents and testimony, challenging the stated rationale for the possible revocation of the charter. The board of trustees shall be allowed to have legal representation and call witnesses at the proceedings; and

(4) a reasonable amount of time for the commissioner to render a determination and inform the charter school in writing of that determination.

h. No later than 30 days after a determination to revoke or not to revoke a charter, the commissioner shall publish a report detailing the commissioner’s reasons for the determination and shall provide the report to the charter school. Each report shall be posted on the Department of Education’s website.

(cf: P.L.1995, c.426, s.17)

2. Section 4 of P.L.2000, c.142 (C.18A:36A-17.1) is amended to read as follows:

4. a. If at any time the commissioner determines that a board of trustees is in jeopardy of losing its charter or an applicant is in jeopardy of not being granted a charter, the commissioner shall so notify the board of trustees or the applicant. The board of trustees or the applicant shall, within 48 hours of receipt of such notification, provide to the commissioner, in writing, a complete list of the names and addresses of all students and staff currently enrolled and working in the school, or in the case of an applicant, a complete list of the names and addresses of all students and staff intending to enroll or work at the school, so the commissioner may send the appropriate notice to the parents or guardians and staff.

b. In the event of the closing of a charter school by the commissioner, either through non-renewal or revocation of the charter, the commissioner shall develop a protocol to ensure the orderly transition of students and their records to the new school of attendance, and the proper disposition of school funds, property, and assets. The protocol shall establish specific tasks to be performed, the timeframe in which the tasks shall be performed, and the individuals responsible for performing the tasks. In the event that a charter school closes for any reason, the commissioner shall manage the closure to ensure an orderly transition for students and parents.

c. In the event of the closing of a charter school by the commissioner, either through non-renewal or revocation of the charter, the assets of the charter school shall be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, and then to the State Treasurer to the credit of the General Fund. If the assets of the charter school are insufficient to pay all parties to whom the school owes compensation, the prioritization of the distribution of assets may be determined by a court of competent jurisdiction.

(cf: P.L.2000, c.142, s.4)

3. This act shall take effect immediately.

STATEMENT

This bill makes changes to the State’s charter school program. The bill alters the charter school renewal process by requiring the Commissioner of Education, no later than August 1 of each school year, to provide each charter school whose charter will expire at the end of that school year, with a renewal application and the criteria that the commissioner will use in determining whether to renew the charter. The commissioner will also issue to the charter school a school performance report which will provide a summary of the charter school’s performance record and will identify matters that the commissioner believes may jeopardize the renewal of the charter.

Under the bill, a charter school will be required to submit a charter school renewal application to the commissioner no later than October 15 of the school year in which its charter will expire. No later than 90 days after the receipt of the renewal application, the commissioner must make a determination to renew or not renew. Within 30 days of the determination on the renewal application, the commissioner must publish a report detailing the reasons for the determination. The report will also be posted on the Department of Education’s website.

The bill provides that the commissioner may at any time, after affording the charter school an opportunity to be heard, revoke a charter or place a charter school in probationary status if the charter school has:

· committed a material and substantial violation of any of the terms, conditions, or procedures required pursuant to the charter school law or included in the charter agreement entered into by the commissioner and charter school;

· failed to meet or make sufficient progress towards the performance expectations established in its charter agreement;

· failed to meet generally accepted standards of fiscal management; or

· violated in a material and substantial manner any provision of a law, rule, or regulation from which it is not exempt.

The bill requires the commissioner to develop a procedure for revoking a charter and includes minimum requirements for that procedure. No later than 30 days after the commissioner makes a determination on the revocation of a charter, he must publish a report on his reasons for the determination and that report will be posted on the department’s website.

Finally, the bill provides that in the event of the closing of a charter school by the commissioner either through non-renewal or revocation of the charter, the commissioner must manage the closure and develop a protocol to ensure the orderly transition of students and their records to the new school of attendance, and the proper disposition of school funds, property, and assets. The bill also provides that in the event of the closing of a charter school, the assets of the charter school will be distributed first to satisfy outstanding payroll obligations for employees of the charter school, then to creditors of the charter school, and then to the State Treasurer to the credit of the General Fund.