A BILL TO BE ENTITLED
AN ACT to increase charter school accountability and to appropriate funds to implement the provisions of this act.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 115C‑238.29B(b) reads as rewritten:
"(b)	The application shall contain at least the following information:
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(3b)	The results of criminal history record checks, as defined in G.S. 115C‑332, of the initial members of the board of directors.
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SECTION 1.(b)  This section applies to charter school applications submitted to the State Board of Education on or after the effective date of this act.
SECTION 2.  G.S. 115C‑238.29D(d) reads as rewritten:
"(d)	The State Board of Education may grant the initial charter for a period not to exceed 10 years and may renew the charter upon the request of the chartering entity for subsequent periods not to exceed 10 years each."
SECTION 3.(a)  G.S. 115C‑238.29E reads as rewritten:
"§ 115C‑238.29E.  Charter school operation; annual school plan; State Board of Education evaluation.
(a)	A charter school that is approved by the State shall be a public school within the local school administrative unit in which it is located. All charter schools shall be accountable to the State Board for ensuring compliance with applicable laws and the provisions of their charters.
(b)	A charter school shall be operated by a private nonprofit corporation that shall have received federal tax‑exempt status no later than 24 months following final approval of the application.(c)	A charter school shall operate under the written charter signed by the State Board and the applicant. A charter school is not required to enter into any other contract. The charter shall incorporate the information provided in the application, as modified during the charter approval process, and any terms and conditions imposed on the charter school by the State Board of Education. No other terms may be imposed on the charter school as a condition for receipt of local funds.
(d)	The board of directors of a charter school, upon receiving a charter from the State Board of Education, is responsible for the supervision and control of the charter school, including ensuring that the school complies with the requirements of State and federal law. The board of directors of the charter school shall decide matters related to the operation of the school, including budgeting, curriculum, and operating procedures.
(d1)	The board of directors shall submit the results of a criminal history record check, as defined in G.S. 115C‑332, of any new member of the board of directors to the State Board of Education prior to the member's appointment to the board.
(d2)	The board of directors of a charter school shall require that the administrators of the charter school submit a plan of performance and operation to the board of directors annually for its approval. The plan shall include at least the following information:
(1)	School enrollment numbers.
(2)	Student attrition during the school year, if any.
(3)	Governance and management information, including staffing, finances, student academic performance, school operational performance, innovative practices and implementation, and future plans.
(d3)	A charter school shall submit the information in the plan approved by the board of directors under subsection (d2) of this section to the State Board of Education as part of its reporting requirements under G.S. 115C‑238.29F(f).
(d4)	During the first half of the term of a charter school's charter, but no later than three years after a charter school is operating under its charter, the State Board of Education shall conduct at least one comprehensive evaluation of the school's operations to ensure that a charter school is meeting expected academic, financial, and governance standards. The State Board shall create a written report reflecting the results of its evaluations of a charter school's operations that shall be used as documentation to inform the charter school renewal process and any actions taken by the State Board pursuant to G.S. 115C‑238.29G. The written report shall contain at least the following:
(1)	A review of all of the information submitted by the school to the State Board pursuant to this Article.
(2)	The findings of at least one physical site visitation to the school.
(e)	A charter school's specific location shall not be prescribed or limited by a local board or other authority except a zoning authority. The school may lease space from a local board of education or as is otherwise lawful in the local school administrative unit in which the charter school is located. If a charter school leases space from a sectarian organization, the charter school classes and students shall be physically separated from any parochial students, and there shall be no religious artifacts, symbols, iconography, or materials on display in the charter school's entrance, classrooms, or hallways. Furthermore, if a charter school leases space from a sectarian organization, the charter school shall not use the name of that organization in the name of the charter school.
At the request of the charter school, the local board of education of the local school administrative unit in which the charter school will be located shall lease any available building or land to the charter school unless the board demonstrates that the lease is not economically or practically feasible or that the local board does not have adequate classroom space to meet its enrollment needs. Notwithstanding any other law, a local board of education may provide a school facility to a charter school free of charge; however, the charter school is responsible for the maintenance of and insurance for the school facility. If a charter school has requested to lease available buildings or land and is unable to reach an agreement with the local board of education, the charter school shall have the right to appeal to the board of county commissioners in which the building or land is located. The board of county commissioners shall have the final decision‑making authority on the leasing of the available building or land.
(f)	Except as provided in this Part and pursuant to the provisions of its charter, a charter school is exempt from statutes and rules applicable to a local board of education or local school administrative unit."
SECTION 3.(b)  Notwithstanding G.S. 115C‑238.29E(d1), as enacted by this act, an individual currently serving as a member of a board of directors of a charter school as of the effective date of this act shall submit the results of the member's criminal history record check, as defined in G.S. 115C‑332, to the State Board of Education on or before September 1, 2014.
SECTION 3.(c)  Notwithstanding G.S. 115C‑238.29E(d4), as enacted by this act, any charter school that has (i) operated under its current charter for longer than half of the term of that charter and (ii) yet to be reviewed in accordance with G.S. 115C‑238.29D(d), prior to the effective date of this act, shall be evaluated in accordance with G.S. 115C‑239.29E(d4) within 12 months of the effective date of this act.
SECTION 4.  G.S. 115C‑238.29G reads as rewritten:
"§ 115C‑238.29G.  Causes for nonrenewal or termination; remedial plans; disputes.
(a)	The State Board of Education may terminate, not renew, or seek applicants to assume the charter through a competitive bid process established by the State Board upon any of the following grounds:
(1)	Failure to meet the requirements for student performance contained in the charter;
(2)	Failure to meet generally accepted standards of fiscal management;
(3)	Violations of law;
(4)	Material violation of any of the conditions, standards, or procedures set forth in the charter;
(4a)	Failure to meet conditions or correct deficiencies identified in a remedial plan in accordance with subsection (a2) of this section.
(5)	Two‑thirds of the faculty and instructional support personnel at the school request that the charter be terminated or not renewed; or
(6)	Other good cause identified.
(a1)	The State Board shall adopt criteria for adequate performance by a charter school and shall identify charter schools with inadequate performance. The criteria shall include a requirement that a charter school which demonstrates no growth in student performance and has annual performance composites below sixty percent (60%) in any two years in a three‑year period is inadequate.
(1)	If a charter school is inadequate in the first five years of the charter, the charter school shall develop a strategic plan to meet specific goals for student performance that are consistent with State Board criteria and the mission approved in the charter school. The strategic plan shall be reviewed and approved by the State Board. The State Board is authorized to terminate or not renew a charter for failure to demonstrate improvement under the strategic plan.
(2)	If a charter school is inadequate and has had a charter for more than five years, the State Board is authorized to terminate, not renew, or seek applicants to assume the charter through a competitive bid process established by the State Board. The State Board shall develop rules on the assumption of a charter by a new entity that include all aspects of the operations of the charter school, including the status of the employees. Public assets would transfer to the new entity and not revert to the local school administrative unit in which the charter school is located pursuant to G.S. 115C‑238.29F(i).
(a2)	Following a review of a charter school's operations, including the evaluation required by G.S. 115C‑238.29E(d4), the State Board of Education may determine the charter school is in noncompliance with State or federal law or the terms and conditions of its charter and require that the charter school (i) meet any additional conditions placed on the school by the State Board and (ii) implement a remedial plan, approved by the school's board of directors, to correct any deficiencies identified by the State Board. Prior to implementation, the remedial plan shall be reviewed and approved by the State Board. The charter school shall meet the conditions placed on the school or correct the deficiencies identified in the remedial plan within a reasonable amount of time established by the State Board.
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SECTION 5.(a)  There is appropriated from the General Fund to the Department of Public Instruction, Office of Charter Schools, the sum of two hundred six thousand six hundred fourteen dollars ($206,614) for the 2014‑2015 fiscal year in recurring funds to fund an additional two consultant positions in the Office of Charter Schools to implement the requirements of this act.
SECTION 5.(b)  This section becomes effective July 1, 2014.
SECTION 6.  Except as otherwise provided in this act, this act is effective when it becomes law and applies beginning with the 2014‑2015 school year.