Section 1- Establishes the Charter School Pilot Project

• 15 schools per year for a total of 75 schools in five years
• Preference for applicants in districts where at least 50% of students qualify for FRL; for students identified as at risk of academic failure and for students with special needs as identified in their Individual Education Program, as defined in KRS 158.281.

Section 2- Definitions

Sections 3- Requirements for Charter Schools

• Allows for independent Boards of Directors; a charter school may incorporate as a non-profit operating as a public entity.
• Allows for single gender charter schools.
• Charters have access to empty or underutilized district school facilities.
• Charter schools may provide transportation and receive funding for such.
• Charter schools are free from laws and regulations other than those regarding health, life and safety.
• Charter schools are subject to the same reporting audit and financial practices as all other public schools.
• A charter school shall be eligible to participate in state-sponsored or district-sponsored interscholastic and district athletics, although is not required to offer such programs.
• A charter school shall be exempt to the same extent as other schools from all taxation, fees, assessments, or special ad valorem levies on its earnings and its property.
• Charter school teachers will adhere to the same qualifications as all other KY teachers and must be highly qualified, which means:

• A person certified by the Education Professional Standards Board under KRS 161.030 or 161.048; or
• A person who has a baccalaureate degree and exceptional work experience in the area in which he or she is hired to teach.

• Charter school teachers may organize under a collective bargaining agreement separate from district collective bargaining agreements.

Section 4- Requirements for Chartering Authorizers other than Local Board of Education or Public Charter School Commission

• Charter school authorizers must follow nationally-recognized principles and standards for charter school authorizing.
• The State Commissioner may allow another entity, other than the Commission and local districts, to apply for and be approved as an authorizer (such as a university.)
• Other authorizer entities must reapply every five years.
• Authorizers may receive up to 2% of a charter school budget for authorizing duties.

Section 5- Establish Public Charter School Commission

• The charter school commission shall consist of nine (9) members appointed by the Governor by July 31, 2013. Membership shall include no more than five (5) members of the same political party.
• Commission members shall be confirmed by the Senate.
• Members shall serve terms of four (4) years.
• The Commission is an independent statewide body and collectively must possess expertise in areas including curriculum, school finance, non-profit governance, charter school experience.

Section 6- Charter School Application Process

• Includes a complete list of required components a charter application must contain to gain approval.
• Includes basis for approval, denial of new applications.
• Mandates that authorizer decisions be made in a public hearing.
• Applicants receive five-year charters.
• After the charter application is approved, the authorizer and charter school have 60 days to enter into a legally-binding performance contract that serves as the final authorization of the school.
• An application to establish a charter school may be submitted to a charter school authorizer by teachers, parents, school administrators, community residents, public organizations, private organizations, or a combination thereof.

Section 7- Requirements for Authorizers

• Requires an application and approval process for charter authorizers.
• Application is made to the State Commissioner of ED.
• Commissioner and authorizer sign a five-year agreement that lists the authorizer’s duties and responsibilities.
• Authorizer duties and responsibilities must be included in the charter contract.

Section 8- Process for Charter Renewal

• Renewal decisions must be driven by data collected through annual school visits and reports.
• A charter school authorizer may not renew or may revoke a charter if the authorizer determines the charter school:

• Fails to meet or make sufficient progress on the assessment measures adopted by the Kentucky Board of Education under KRS 158.6453 and student outcomes fall below the level that would allow the commissioner of education to sanction a school;
• Fails to meet or demonstrate sufficient progress over the preceding three (3) school years toward the performance expectations set forth in the charter;
• Fails to meet generally accepted accounting standards; and
• Commits a material and substantial violation of any of the terms, conditions, standards, or procedures required under the law.

Section 9- Establish Public Charter School Commission Trust Fund

• The fund may receive contributions, gifts, donations, appropriations, and any other moneys made available for the fund.
• The fund shall be used to support the operation of the commission, and all amounts included in the fund are appropriated for the purposes set forth in this section.

Section 10- Operation of Charter School and Powers of the School

• Charter schools are legally autonomous schools accountable to their authorizer.
• Graduation requirements must meet or exceed state standards.
• The Board of Directors of a charter school has the final authority on all decisions, and may delegate this power to an administrator and staff.

Section 11- Reasons for Nonrenewal or Revocation of Charter and Distribution of Remaining Funds

• A charter school authorizer may not renew or may revoke a charter if the authorizer determines the charter school:

• Fails to meet or make sufficient progress on the assessment measures adopted by the Kentucky Board of Education under KRS 158.6453 and student outcomes fall below the level that would allow the commissioner of education to sanction a school;
• Fails to meet or demonstrate sufficient progress over the preceding three (3) school years toward the performance expectations set forth in the charter;
• Fails to meet generally accepted accounting standards; and
• Commits a material and substantial violation of any of the terms, conditions, standards, or procedures required under the law or under the charter contract.
• The authorizer must develop a closure protocols consistent with national best practices and work with the closing school to allow for the orderly transition of students, teachers and student records.

Section 12- Responsibilities of the Commissioner of Education; Annual Reports

• Authorizers shall file annual reports with the Commissioner of Education, including a report on the performance of their schools and how the 2% administrative fee is used.
• Schools will file annual reports to their authorizers.
• The Commissioner will file an annual report to the interim education committee.

Section 13- Process for Enrollment/Withdrawal of Students

• Enrollment decisions shall be made in a nondiscriminatory manner and shall not be limited based on intellectual ability, measures of achievement or aptitude, athletic ability, disability, race, creed, gender, national origin, religion, or ancestry.
• If enrollment numbers are greater than the seats available, the charter school shall publish and follow a lottery system.

Section 14- Personnel and Attendance Issues; Employees’ Participation in Specific Retirement Systems

• No local board of education shall require any employee of the local school district to be employed in a charter school or any pupil enrolled in the school district to attend a charter school. No local board shall harass, threaten, discipline, discharge, retaliate, or in any manner discriminate against any district employee involved directly or indirectly with an application to establish a charter school as authorized under this section.
• A local board of education shall not discriminate against a charter school in publicizing the district’s educational options through advertising, direct mail, availability of mailing lists, or other informational activities.
• A teacher employed by a local school board under a continuing service contract may be granted a one (1) year leave of absence to teach in a charter school authorized by an entity other than the local board if the leave of absence is mutually agreed upon by the local board of education of the school district and the teacher. The leave of absence shall commence on the first day of service to the charter school. Upon the request of the teacher, a one (1) year leave of absence shall be renewed for up to two (2) additional years upon the mutual agreement of the teacher and the school district. At the end of three (3) years, the relationship between the teacher and the school district shall be determined by the school district. The school district shall notify the teacher of the decision.

Sections 15- Funding

• Local district authorizers and the Commission will distribute operational (state and federal) funds to a charter school using the same formulas and allocation processes as are used to distribute funds to other schools in the school district.
• Charter schools will not receive local facility tax revenues.

Sections 16 and 17- Retirement Systems

• Teachers and employees in a charter school shall participate in the Kentucky Teachers’ Retirement System or the County Employees Retirement System, as determined by their eligibility for participation in the appropriate system.