Changes to Existing Law

26.25.34 26.25.35 101st Legislative Session 218 2026 South Dakota Legislature Senate Bill 218 SENATE EDUCATION ENGROSSED Introduced by: Senator Nelson Underscores indicate new language. Overstrikes indicate deleted language. An Act to provide for the establishment of charter schools. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That a NEW SECTION be added to a NEW CHAPTER in title 13: 3 Terms used in this chapter mean: 4 (1) "Authorizing entity," the board of the school district in which an approved charter 5 school is to be located or the Department of Education; and 6 (2) "Charter school," a public school that is established and operated under the terms 7 of a contract between an authorizing entity and the independent governing board 8 of a charter school pursuant to this chapter. 9 Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 13: 10 Except as otherwise provided in this chapter and §§ 13-13-10.1 and 13-37-35.1, 11 a charter school is exempt from any state law or rule pertaining to a public school, school 12 district, or the board of a school district. 13 A charter school must: 14 (1) Comply with civil rights, health, and safety requirements applicable to other public 15 schools in this state; 16 (2) Be nonsectarian in its programs, admission policies, employment practices, and all 17 other operations; 18 (3) Operate a physical structure where the school provides in-person academic 19 instruction, extracurricular activities, and other functions associated with the 20 educational program offered by the charter school; 21 (4) Provide a comprehensive program of instruction for at least one grade between 19 22 kindergarten and grade twelve, inclusive; 20 (4) 23 (5) Follow the same operational term as provided for in § 13-26-2; 21 (5) 24 26.25.35 2 218 Underscores indicate new language. Overstrikes indicate deleted language. (6) Follow all applicable state and federal laws governing the provision of education to 22 1 children with disabilities; 23 (6) 2 (7) Provide for the measurement of student progress in a manner required by the 24 3 Department of Education; 25 26.25.34 2 218 Underscores indicate new language. Overstrikes indicate deleted language. (7) 4 (8) Be subject to the same student assessment and accountability requirements 1 5 applicable to school districts in this state, except that nothing prevents the school 2 6 from establishing additional assessments and requirements that exceed those 3 7 applicable under state law; 4 (8) 8 (9) Report educational data and preserve educational financial records in the same 5 9 manner as a school district pursuant to §§ 13-3-51 to 13-3-51.6, inclusive; 6 (9) 10 (10) Maintain accounting and financial functions that are separate from those of the 7 11 authorizing entity; 8 (10) 12 (11) Maintain a risk management and insurance program; and 9 (11) 13 (12) Use the same standards as those established for the education of students in a 10 14 school district. 11 15 A charter school authorized under this chapter may not use online, remote, or other 16 virtual methods as the primary method of providing educational programming. 17 An employee of a charter school is subject to the employee criminal background 12 18 investigation requirements in § 13-10-12 otherwise applicable to school districts. 13 19 The authorizing entity shall conduct annual financial, compliance, and performance 14 20 audits of the charter school. 15 21 A charter school and its governing board must comply with the open meetings and 16 22 open records provisions otherwise applicable to school districts, pursuant to chapters 1-17 1-23 25 and 1-27, respectively. 18 24 Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 13: 19 25 On or before October first of each year, the Department of Education shall provide 20 26 an annual report to the Governor and the Legislature regarding charter schools. 21 27 The report must provide: 22 28 (1) The academic performance of students attending each charter school; 23 29 (2) An assessment of the successes of and any challenges experienced by each charter 24 30 school; 25 31 (3) Any actions that must be taken by each charter school to comply with this chapter; 26 32 26.25.35 3 218 Underscores indicate new language. Overstrikes indicate deleted language. (4) An assessment of charter schools with respect to their ability to meet the demand 27 1 for charter school education, as calculated by admissions data and the number of 28 2 students denied enrollment; and 29 3 (5) A comparison of the students' performance to that of academically, ethnically, and 30 4 economically similar students in the school district in which the charter school is 31 5 located. 32 6 Each charter school shall provide the information required by this section at the 33 7 time and in the manner requested by the department. 34 26.25.34 3 218 Underscores indicate new language. Overstrikes indicate deleted language. 8 Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 13: 1 9 The Department of Education shall promulgate rules, pursuant to chapter 1-26, to 2 10 establish: 3 11 (1) The form, process, and approval criteria for a charter school application; 4 12 (2) The form and approval criteria for a charter school renewal application; 5 13 (3) The process by which a charter school is reviewed by an authorizing entity; 6 14 (4) The sanctions or corrective actions that the authorizing entity is permitted to 7 15 impose on a charter school for unsatisfactory performance or to achieve legal 8 16 compliance, pursuant to section 15 of this Act; and 9 17 (5) The form for and required terms of a contract between an authorizing entity and 10 18 the governing board of a charter school. 11 19 Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 13: 12 20 To establish a charter school, a nonprofit corporation shall file an application with 13 21 an authorizing entity. The application must contain: 14 22 (1) A mission statement for the charter school; 15 23 (2) A description of the charter school's organizational structure; 16 24 (3) A description of the charter school's governance structure and proposed governing 17 25 board; 18 26 (4) A location for and a description of the facility that is to be used to house the charter 19 27 school; 20 28 (5) Whether the charter school is to be located within the boundaries of a tribal 21 29 reservation; 22 30 (6) Whether the charter school proposes to prioritize serving low-income, special 23 31 education, or English learner students; 24 32 (7) The grade levels that are to be served in the charter school; 25 33 26.25.35 4 218 Underscores indicate new language. Overstrikes indicate deleted language. (8) The anticipated enrollment of the charter school; 26 1 (9) The educational objectives of the charter school; 27 2 (10) A financial plan for the first three years of the charter school's operation; 28 3 (11) Documentation showing community support for the proposed charter school; 29 4 (12) If the applicant intends to serve students within a tribal reservation, documentation 30 5 showing consultation with the local tribal government or tribal education 31 6 department, as applicable; 32 26.25.34 4 218 Underscores indicate new language. Overstrikes indicate deleted language. 7 (13) Personnel policies for the charter school, including those addressing employment 1 8 and qualifications; 2 9 (14) The criteria that are to be used to measure the performance of the charter school; 3 10 and 4 11 (15) A description of how the charter school is to provide special education and related 5 12 services. 6 13 If multiple applications are submitted to an authorizing entity to establish a charter 7 14 school within a tribal reservation, the authorizing entity must give priority consideration 8 15 to the application for a charter school that proposes to serve students in accordance with 9 16 the Oceti Sakowin Essential Understandings. 10 17 If multiple applications are submitted to an authorizing entity to establish a charter 11 18 school that is not to be located within a tribal reservation, the authorizing entity may give 12 19 priority consideration to the application for a charter school that proposes to serve 13 20 students in accordance with the Oceti Sakowin Essential Understandings or based on the 14 21 students' poverty status, special education status, or English learner status. 15 22 Priority consideration under this section does not affect the authorizing entity's 16 23 obligation to approve each application that meets the requirements of this chapter and 17 24 satisfies the approval criteria established by the Department of Education, pursuant to 18 25 sections 4 and 7 of this Act. 19 26 An applicant's intention to serve students in accordance with the Oceti Sakowin 20 27 Essential Understandings or based on the students' poverty status, special education 21 28 status, or English learner status must be set forth in the charter school's mission 22 29 statement. 23 30 Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 13: 24 31 Upon receiving an application to establish a charter school, the authorizing entity 25 32 has forty-five days to review and approve or deny the application. The authorizing entity 26 33 26.25.35 5 218 Underscores indicate new language. Overstrikes indicate deleted language. may ask questions of or request revisions from the applicant throughout the review period. 27 1 While reviewing the application, the entity must: 28 2 (1) Conduct an interview with the applicant or the applicant's authorized 29 3 representative; and 30 4 (2) Hold an official meeting, pursuant to chapter 1-25, to review the application, with 31 5 an opportunity for public comment. 32 6 An application to establish a charter school must be approved or denied in an open 33 7 meeting of the entity pursuant to chapter 1-25. The entity may not approve or deny an 34 26.25.34 5 218 Underscores indicate new language. Overstrikes indicate deleted language. 8 application to establish a charter school at the same meeting at which the application was 1 9 initially reviewed by the entity. 2 10 Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 13: 3 11 The authorizing entity must approve an application that: 4 12 (1) Meets the requirements of this Act; 5 13 (2) Satisfies the approval criteria established by the Department of Education, 6 14 pursuant to section 4 of this Act; and 7 15 (3) Demonstrates: 8 16 (a) The governing body's ability to operate the school in an educationally and 9 17 fiscally sound manner; and 10 18 (b) The program by which the charter school proposes to improve student 11 19 achievement and any evidence that points to the program's likelihood for 12 20 success. 13 21 The entity shall base its decision to approve or deny the application on 14 22 documentation collected through the application process. If the entity denies an 15 23 application, it must notify the applicant, in writing, of the specific reasons for denial. 16 24 If the entity is the board of a school district, the board shall forward copies of all 17 25 application materials and report its determination to the department within five days of 18 26 the meeting at which the application was approved or denied. 19 27 With the agreement of the nonprofit corporation applying to establish a charter 20 28 school, the authorizing entity may establish conditions or other requirements to ensure 21 29 the charter school meets all the requirements established in the contract to open the 22 30 school. The entity may not require the charter school to enter into any service agreement 23 31 with a school district as a condition that the applicant corporation must meet before 24 32 executing a contract. 25 33 26.25.35 6 218 Underscores indicate new language. Overstrikes indicate deleted language. Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 13: 26 1 If an authorizing entity denies an application to establish a charter school, the 27 2 nonprofit corporation may reapply to any other appropriate authorizing entity. 28 3 Section 9. That a NEW SECTION be added to a NEW CHAPTER in title 13: 29 4 No later than thirty days after an application for a charter school is approved, the 30 5 authorizing entity must enter into a contract with the governing board of the charter 31 26.25.34 6 218 Underscores indicate new language. Overstrikes indicate deleted language. school. The contract must meet the form and required terms, as established by the 1 7 Department of Education, pursuant to section 4 of this Act, and must contain: 2 8 (1) A performance framework that is to guide the authorizing entity's evaluations of 3 9 the charter school and clearly sets forth the operational performance indicators, 4 10 measures, and metrics for: 5 11 (a) Student academic proficiency; 6 12 (b) Student academic growth; 7 13 (c) Achievement gaps in both proficiency and growth between major student 8 14 subgroups; 9 15 (d) Attendance; 10 16 (e) Recurrent enrollment from year-to-year; 11 17 (f) Postsecondary readiness; 12 18 (g) Mission-specific goals; 13 19 (h) Financial performance and sustainability; and 14 20 (i) Board performance and stewardship; 15 21 (2) The process by which the governing board of the charter school reports to the 16 22 authorizing entity with the information collected from the charter school under the 17 23 performance framework established pursuant to subdivision (1); 18 24 (3) The administrative relationship between: 19 25 (a) The authorizing entity and the charter school; and 20 26 (b) The nonprofit corporation applying to create the charter school and the 21 27 governing board of the charter school; and 22 28 (4) The rights and expectations of the authorizing entity and the charter school. 23 29 The authorizing entity may not include in the contract any other requirement in 24 30 addition to what is provided for in section 7 of this Act or this section. The authorizing 25 31 entity shall approve the contract required by this section in an open meeting, pursuant to 26 32 chapter 1-25. 27 33 26.25.35 7 218 Underscores indicate new language. Overstrikes indicate deleted language. If any of the conditions set by the authorizing entity, pursuant to section 7 of this 28 1 Act, have not been met by the charter school, the entity may provide the governing board 29 2 of the charter school with an additional thirty days to meet the conditions set before 30 3 terminating the contract or may immediately terminate the contract with the governing 31 4 board. 32 5 Section 10. That a NEW SECTION be added to a NEW CHAPTER in title 31: 33 26.25.34 7 218 Underscores indicate new language. Overstrikes indicate deleted language. 6 A single nonprofit corporation may apply to create more than one charter school, 1 7 and may designate a single governing board to hold the contract of each charter school 2 8 authorized as a result of the nonprofit corporation's application. Each charter school that 3 9 is part of a charter contract must be a discrete legal entity. 4 10 Section 11. That a NEW SECTION be added to a NEW CHAPTER in title 13: 5 11 If the authorizing entity is the board of a school district, the entity must, within 6 12 fifteen days of contract approval, submit a copy of the contract to the Department of 7 13 Education. 8 14 If the authorizing entity is the department, the entity must, within fifteen days of 9 15 contract approval, submit a copy of the contract to the board of the school district in 10 16 whose boundaries the charter school is to be located. 11 17 Section 12. That a NEW SECTION be added to a NEW CHAPTER in title 13: 12 18 An initial contract, as provided for in section 9 of this Act, must have a term of five 13 19 years, beginning the first day of the school fiscal year, as defined in § 13-26-1, in which 14 20 the charter school begins operation. A governing board may, upon notifying the 15 21 authorizing entity, delay the effective date of the initial contract for a period of up to one 16 22 year, unless the charter school obtains permission from the authorizing entity for an 17 23 additional year or years. 18 24 Any subsequent contract authorized pursuant to this chapter is effective for five 19 25 years, beginning the first day of the school fiscal year, as defined in § 13-26-1, after the 20 26 contract is approved by the authorizing entity, unless: 21 27 (1) A shorter duration is agreed to by the parties; 22 28 (2) The authorizing entity shortens the term of the contract based on the performance, 23 29 demonstrated capacities, and other circumstances of each charter school; or 24 30 (3) The contract is not renewed pursuant to section 18 of this Act; or 25 31 26.25.35 8 218 Underscores indicate new language. Overstrikes indicate deleted language. (4) The contract is revoked pursuant to section 19 of this Act. 26 1 A contract may contain conditions governing its continuation, provided the 27 2 conditions comply with the provisions of this chapter. 28 3 Section 13. That a NEW SECTION be added to a NEW CHAPTER in title 13: 29 4 A governing board of a charter school is responsible for collecting, analyzing, and 30 5 reporting all data from state assessments or other state data sources in accordance with 31 26.25.34 8 218 Underscores indicate new language. Overstrikes indicate deleted language. 6 the performance framework described in section 9 of this Act. At the request of the 1 7 governing board, the Department of Education shall assist the governing board in 2 8 collecting, analyzing, and reporting all data, pursuant to this section. An authorizing entity 3 9 may not require duplicative data entry and submission from a charter school and may not 4 10 use the performance framework to create duplicative reporting requirements for a charter 5 11 school. 6 12 If a governing board operates multiple charter schools under a single charter school 7 13 contract, each school must report the charter school's performance. Each charter school 8 14 operated by a governing board under a single contract must be held independently 9 15 accountable for the charter school's performance. 10 16 Section 14. That a NEW SECTION be added to a NEW CHAPTER in title 13: 11 17 Subject to the approval of the authorizing entity, the governing board of a charter 12 18 school shall set annual performance targets to help the school meet all applicable federal, 13 19 state, and entity expectations. The performance targets may be amended by mutual 14 20 agreement of the governing board of the charter school and the entity after the charter 15 21 school has begun operating and has collected achievement data for students enrolled in 16 22 the charter school. 17 23 The performance framework included in the charter school contract pursuant to 18 24 section 9 of this Act may be amended by mutual agreement of the governing board of the 19 25 charter school and authorizing entity after the charter school begins operating and has 20 26 collected initial achievement data for enrolled students. The performance framework must 21 27 disaggregate all student performance data by race, poverty status, special education 22 28 status, and English learner status. All data must be reported in a way that meets the 23 29 requirements of the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232 24 30 (January 1, 2026). 25 31 The authorizing entity of a charter school shall monitor the performance and legal 26 32 compliance of the charter school and may collect data from the school to support the 27 33 26.25.35 9 218 Underscores indicate new language. Overstrikes indicate deleted language. ongoing monitoring and evaluation, so long as those activities are consistent with this 28 1 chapter, adhere to the terms of the charter contract, and do not unduly inhibit the 29 2 autonomy granted to the charter school. 30 3 Section 15. That a NEW SECTION be added to a NEW CHAPTER in title 13: 31 4 If the authorizing entity determines that the charter school's performance or legal 32 5 compliance is unsatisfactory, the entity may require the governing board of the charter 33 26.25.34 9 218 Underscores indicate new language. Overstrikes indicate deleted language. 6 school to take action to rectify the unsatisfactory performance or legal compliance of the 1 7 charter school. The entity must provide written notification to the governing board of the 2 8 corrective action the charter school is required to take, stating a reasonable time by when 3 9 the matter must be resolved. 4 10 If the charter school fails to rectify the unsatisfactory performance or legal 5 11 compliance in the time stated in the notification, the authorizing entity may deny the 6 12 renewal of or revoke the contract, pursuant to sections 18 and 19 of this Act. 7 13 Section 16. That a NEW SECTION be added to a NEW CHAPTER in title 13: 8 14 After an initial contract has been in effect for four years, the authorizing entity 9 15 must provide to the governing board of the charter school a draft of a report setting forth 10 16 the school's performance to date and must note any concerns that need to be addressed 11 17 before the renewal process is initiated. The authorizing entity shall provide the governing 12 18 board at least thirty days from the date the governing board receives the report, within 13 19 which the governing board may request clarifications or corrections to the report, or to 14 20 otherwise respond to the report. At the conclusion of the thirty days, the authorizing entity 15 21 shall provide the governing body with the finalized report. 16 22 The authorizing entity shall provide guidance to the governing board regarding the 17 23 renewal process and the criteria that the Department of Education has established, 18 24 pursuant to section 4 of this Act, regarding a renewal of the contract. 19 25 To renew the contract, the governing board of a charter school must submit a 20 26 renewal application. The governing board shall attach to the board's renewal application: 21 27 (1) Additional evidence of improvements in student performance; 22 28 (2) A description of improvements that had been undertaken, are being undertaken, 23 29 or are being planned to resolve the concerns noted by the entity in the report 24 30 provided pursuant to this section; and 25 31 (3) A detailed operational plan for the ensuing contract period, outlining the continued 26 32 implementation of: 27 33 26.25.35 10 218 Underscores indicate new language. Overstrikes indicate deleted language. (a) The performance framework, established pursuant to subdivision (1) of 28 1 section 9 of this Act; 29 2 (b) The process by which the governing board of the charter school reports to 30 3 the authorizing entity; 31 4 (c) The process by which information is collected from the charter school under 32 5 the performance framework established pursuant to subdivision (1) of 33 6 section 9 of this Act; 34 26.25.34 10 218 Underscores indicate new language. Overstrikes indicate deleted language. 7 (d) The administrative relationship between the authorizing entity and the 1 8 governing board of the charter school; and 2 9 (e) The rights and expectations of the authorizing entity, the governing board 3 10 of the charter school, and the charter school. 4 11 Section 17. That a NEW SECTION be added to a NEW CHAPTER in title 13: 5 12 Upon receiving an application for the renewal of a contract, the authorizing entity 6 13 shall, within forty-five days: 7 14 (1) Conduct an interview with the governing board of the charter school or the 8 15 governing board's authorized representative; 9 16 (2) Hold a public forum on the renewal application, with an opportunity for public 10 17 comment; 11 18 (3) Examine the documentation submitted by the governing board, demonstrating the 12 19 charter school's performance during the prior term of the contract; and 13 20 (4) Provide to the charter school a report regarding the evidence provided and the 14 21 decision that was reached. 15 22 The term of renewal for a charter school contract is five years, unless a shorter 16 23 duration is agreed to by the parties or the authorizing entity shortens the term of the 17 24 contract based on the performance, demonstrated capacities, and other circumstances of 18 25 each charter school. An entity may grant the renewal of a contract subject to conditions 19 26 necessary to improve the performance of the charter school. 20 27 The entity must base its decision to approve or deny the renewal application on 21 28 documentation collected through the application process. The decision to approve or deny 22 29 the application must be made in an open meeting of the entity. 23 30 Section 18. That a NEW SECTION be added to a NEW CHAPTER in title 13: 24 31 An authorizing entity may deny an application for renewal of a contract only if the 25 32 authorizing entity determines that the charter school: 26 33 26.25.35 11 218 Underscores indicate new language. Overstrikes indicate deleted language. (1) Engaged in a material breach of the contract or a substantial violation of this 27 1 chapter; 28 2 (2) Failed to meet or make sufficient progress toward the school's performance 29 3 expectations, as specified in the charter contract; 30 4 (3) Failed to meet generally accepted standards of fiscal management; or 31 5 (4) Substantially violated any provision of law from which the charter school was not 32 6 exempt. 33 26.25.34 11 218 Underscores indicate new language. Overstrikes indicate deleted language. 7 If the authorizing entity is the board of a school district, a denial of an application 1 8 under this section may be appealed to the Department of Education. The decision of the 2 9 department is final if the decision pertains to an application for the renewal of a charter 3 10 school when the department serves as the authorizing entity of the school or when the 4 11 appeal pertains to a decision made by the board of a school district. 5 12 If the department approves a renewal application that had been previously denied 6 13 by the board of a school district, the department becomes the authorizing entity for the 7 14 charter school. 8 15 Section 19. That a NEW SECTION be added to a NEW CHAPTER in title 13: 9 16 An authorizing entity may revoke a contract upon the conditions set forth in section 10 17 18 of this Act, if the entity: 11 18 (1) Provides the following to the governing board of a charter school, at least fourteen 12 19 days prior to the hearing required by this section: 13 20 (a) A written notice of the entity's intent to revoke the charter school contract; 14 21 (b) A written determination of the entity as to why the entity intends to revoke 15 22 the charter school contract; and 16 23 (c) Documentation supporting the entity's determination; 17 24 (2) Schedules a public hearing at which the governing board of the charter school may 18 25 provide testimony and documentary evidence; and 19 26 (3) Permits the hearing to be recorded. 20 27 Section 20. That a NEW SECTION be added to a NEW CHAPTER in title 13: 21 28 If a charter school is dissolved because the school's contract was revoked or not 22 29 renewed or because the charter school elected to close, the assets of the school must be 23 30 distributed first to the employees of the charter school to satisfy any outstanding payroll 24 31 obligations, then to satisfy any other outstanding debts incurred by the charter school. 25 32 26.25.35 12 218 Underscores indicate new language. Overstrikes indicate deleted language. If any assets remain after satisfying any outstanding payroll obligations and debts, 26 1 the remaining assets of the charter school must be forwarded to the state treasurer for 27 2 deposit in the general fund. 28 3 If the assets of the charter school are insufficient to satisfy all outstanding payroll 29 4 and debt obligations, the distribution of the charter school's assets is to be determined by 30 5 the decree of a court of law. 31 6 Section 21. That a NEW SECTION be added to a NEW CHAPTER in title 13: 32 26.25.34 12 218 Underscores indicate new language. Overstrikes indicate deleted language. 7 A charter school established in accordance with this chapter may, independently of 1 8 its authorizing entity: 2 9 (1) Purchase or lease real property, facilities, appurtenances, and equipment; 3 10 (2) Obtain a loan; 4 11 (3) Pledge, assign, or encumber its assets to collateralize a loan or obtain credit; 5 12 (4) Accept gifts, grants, and donations for any purpose related to the establishment or 6 13 operation of the school; 7 14 (5) Hire and compensate personnel; 8 15 (6) Enter into a contract with a school district or educational cooperative for the 9 16 delivery of educational or other services, provided the consideration paid by the 10 17 charter school for the services does not exceed the delivering entity's actual cost 11 18 of providing the services; and 12 19 (7) Access any shared services offered by the state. 13 20 Section 22. That a NEW SECTION be added to a NEW CHAPTER in title 13: 14 21 At least seventy-five percent of the teachers employed by a charter school must 15 22 hold a certificate as provided by chapter 13-42. If an individual is employed by a charter 16 23 school as a special education teacher or other educational professional, as defined in § 17 24 13-42-1, the individual must have the certification required for the position in a school 18 25 district. 19 26 An individual who is employed as an administrator of a charter school is not 20 27 required to be certified as an administrator pursuant to chapter 13-42. 21 28 A charter school may not employ an individual if the individual holds a teacher, 22 29 administrator, or other educational professional certificate that has been suspended or an 23 30 educator permit that has been suspended, so long as the certificate or permit is 24 31 suspended. A charter school may not employ an individual whose educator certificate was 25 32 permanently revoked. 26 33 26.25.35 13 218 Underscores indicate new language. Overstrikes indicate deleted language. Section 23. That a NEW SECTION be added to a NEW CHAPTER in title 13: 27 1 A school district or any employee or board member thereof may not be held liable 28 2 for: 29 3 (1) Any act or omission undertaken by the employee or member in good faith, and 30 4 within the scope of authority, regarding a charter school; or 31 5 (2) Any debts incurred by or on behalf of a charter school. 32 26.25.34 13 218 Underscores indicate new language. Overstrikes indicate deleted language. 6 An employee of a charter school is not an employee of the school district in which 1 7 the charter school is located. Each charter school is responsible for any debts incurred by 2 8 or on behalf of the charter school. 3 9 Section 24. That a NEW SECTION be added to a NEW CHAPTER in title 13: 4 10 Admission to a charter school must be open to any student. If the charter school 5 11 has been established to serve students based on the student's poverty status, special 6 12 education status, or English learner status, the charter school must give priority to an 7 13 applicant that meets the charter school's mission statement, pursuant to section 5 of this 8 14 Act. If a student is admitted to a charter school, the school must enroll the student for 9 15 each subsequent school year until the student either completes the last grade-level served 10 16 by the school, graduates, withdraws from the school, or is withdrawn from the school by 11 17 the student's parent or legal guardian. 12 18 If, on a date identified by the charter school, the number of applicants seeking 13 19 enrollment exceeds the capacity of a program, class, or grade level, the charter school 14 20 must first enroll any applicant who is a sibling of a student currently enrolled in the charter 15 21 school. 16 22 If the number of applicants who are siblings of students enrolled in the charter 17 23 school is less than the capacity of the program, class, or grade level, the charter school 18 24 must give preference to any applicant who is at risk of academic failure. Any remaining 19 25 openings in the program, class, or grade level, must be filled by selecting applicants in a 20 26 lottery. 21 27 If the number of new students in a group receiving preference exceeds the capacity 22 28 of the program, class, or grade level remaining after previous groups had been enrolled, 23 29 any remaining opening must be selected by lottery within the group receiving preference. 24 30 If the number of new students in the groups receiving preference does not exceed 25 31 the capacity of the program, class, or grade level remaining after all of the groups 26 32 26.25.35 14 218 Underscores indicate new language. Overstrikes indicate deleted language. receiving preference have been enrolled, any remaining opening must be selected by 27 1 lottery. 28 2 A charter school conducting an admissions lottery must ensure that every student 29 3 within each group designated pursuant to this section, has a fair opportunity to be 30 4 considered in the lottery and that the lottery is competently conducted, randomized, 31 5 transparent, and impartial so that students are accepted into a charter school without 32 6 regard to academic status, athletic ability, ethnicity, familial status, gender, income, 33 7 national origin, race, religion, or special needs. 34 26.25.34 14 218 Underscores indicate new language. Overstrikes indicate deleted language. 8 No student may be denied admission based on the student's academic status, 1 9 athletic ability, ethnicity, familial status, gender, income, national origin, race, religion, or 2 10 special needs. 3 11 Section 25. That a NEW SECTION be added to a NEW CHAPTER in title 13: 4 12 An employee of a charter school is eligible to participate in the state retirement 5 13 system, as set forth in chapter 3-12C. 6 14 Section 26. That a NEW SECTION be added to a NEW CHAPTER in title 13: 7 15 An authorizing entity may impose an annual administrative fee upon the charter 8 16 school in an amount not exceeding three percent of the funding the charter school receives 9 17 pursuant to sections 27 and 28 of this Act. 10 18 The authorizing entity may use the funds provided in this section only to fulfill an 11 19 obligation associated with authorizing the charter school. An annual administrative fee 12 20 may not be counted toward any cost incurred by the authorizing entity in delivering, to 13 21 the charter school, a service that the charter school voluntarily purchased from the 14 22 authorizing entity. 15 23 An authorizing entity shall provide to each charter school authorized by the entity 16 24 an itemized description of the actual costs of oversight incurred by the entity in 17 25 administering the charter school. If the actual cost of oversight incurred by the entity is 18 26 less than the administrative fee collected by the entity pursuant to this section, the entity 19 27 must refund the balance to each charter school authorized by the entity, in proportion to 20 28 the amount initially collected from each charter school. 21 29 Section 27. That a NEW SECTION be added to a NEW CHAPTER in title 13: 22 30 26.25.35 15 218 Underscores indicate new language. Overstrikes indicate deleted language. The school district in which a charter school is located shall forward to the charter 23 1 school an amount equal to the per student equivalent, as calculated in accordance with 24 2 § 13-13-10.1, multiplied by the number of students enrolled in the charter school. The 25 3 charter school shall receive a share of the school district's state aid funding, pursuant to 26 4 chapter 13-13, local tax receipts, and county and state apportionment, based on the 27 5 number of the students enrolled in the charter school as a percentage of the school 28 6 district's average daily membership. The Department of Education shall ensure each 29 7 school district forwards the full per student equivalent, as defined in § 13-13-10.1, to any 30 8 charter school located within the district's jurisdiction. 31 26.25.34 15 218 Underscores indicate new language. Overstrikes indicate deleted language. 9 The amount payable to a charter school in the first year of operation of the charter 1 10 school is based on the projections for initial-year enrollment set forth in the charter school 2 11 application. The projections must be reconciled with the actual enrollment at the end of 3 12 the charter school's first year of operation, and any adjustment to the funding of the 4 13 charter school must be made during the charter school's second year of operation. 5 14 The students enrolled in a charter school are included in the average daily 6 15 membership of the school district in which the charter school is located in order to 7 16 determine: 8 17 (1) Fall enrollment for the purposes of: 9 18 (a) General state aid for the school district, pursuant to § 13-13-10.1; and 10 19 (b) State aid for special education, pursuant to § 13-37-35.1; and 11 20 (2) The minimum enrollment for maintaining a school district, pursuant to § 13-6-97. 12 21 The district shall also forward an amount equal to the portion of funding calculated 13 22 in accordance with chapter 13-37, for each student enrolled in the charter school who is 14 23 entitled to special education and related services. The department shall ensure each school 15 24 district forwards the full portion of special education funding, calculated in accordance with 16 25 chapter 13-37, to any charter school located within the district's jurisdiction. 17 26 Section 28. That a NEW SECTION be added to a NEW CHAPTER in title 13: 18 27 The Department of Education shall ensure that a proportionate share of moneys 19 28 generated under federal and state categorical aid programs, including any moneys 20 29 provided through programs for tribal education, is directed to eligible charter schools. A 21 30 charter school shall comply with all requirements of the aid. 22 31 Section 29. That a NEW SECTION be added to a NEW CHAPTER in title 13: 23 32 26.25.35 16 218 Underscores indicate new language. Overstrikes indicate deleted language. A charter school is a local education agency for the purpose of receiving funding 24 1 for special education services, if the Department of Education is the authorizing entity of 25 2 the charter school. If the authorizing entity of a charter school is a school district, the 26 3 school district is the local education agency. 27 4 The charter school shall provide services to students as required by federal and 28 5 state law and the charter school contract. 29 6