This training is provided for educational, compliance and loss-prevention purposes only and, absent the express, prior agreement of DWK, does not create or establish an attorney-client relationship. The training is not itself intended to convey or constitute legal advice for particular issues or circumstances. Contact a DWK attorney for answers to specific questions. © 2016 Dannis Woliver Kelley SAN FRANCISCO | LONG BEACH | SAN DIEGO | NOVATO | CHICO | SACRAMENTO | SAN LUIS OBISPO May 23, 2016 San Rafael City Schools Board of Education Meeting Janet L. Mueller, Dannis Woliver Kelley CHARTER SCHOOLS Foundational Concepts

2 © 2016 Dannis Woliver Kelley Charter Schools Act  Legislative intent is to provide opportunities to establish and maintain public schools that: -Improve pupil learning -Increase learning opportunities for all pupils, with emphasis on low academic achievers -Encourage different and innovative teaching methods -Create new professional opportunities for teachers -Provide parents and pupils with expanded school choice -Hold charters accountable for meeting pupil outcomes -Provide vigorous competition to public schools to stimulate improvement

3 © 2016 Dannis Woliver Kelley Charter School Overview  A charter school is a “public school of the district” that operates:  Independent of the chartering entity  Independent of most of the Education Code  Under chartering entity “oversight”  Key Concept: Freedom and independence, in exchange for academic results

4 © 2016 Dannis Woliver Kelley Charter Formation  Approval of charter school occurs via a petition process ─ Petition must be supported by signatures of interested parents or teachers ─ A public hearing is required ─ Petition must reasonably comprehensively describe 15 substantive elements ─ Petition must make certain affirmations and assurances ─ Petition must reflect a sound operational plan and adequate budget to implement plan  Legislative intent favors the creation of charter schools ─ But they must meet all legal criteria or may (should) be denied

5 © 2016 Dannis Woliver Kelley Charter School Overview  Types of charter schools: -Conversion Charter: existing public school becomes a charter on the initiative of the teachers or parents -Start-Up Charter: All other charters May be independent study or classroom based or a combination “Dependent” or “District” charter not defined in law; features and practice vary widely ─ Ipso Schools is a proposed independent, classroom-based, start-up charter

6 © 2016 Dannis Woliver Kelley Charter School Overview  All Charters ─ Formed through a petition process ─ Governed by a set of written documents ─ Nonsectarian, tuition-free, nondiscriminatory ─ May be operated by, or as, a nonprofit corporation ─ Subject to Ed Code waiver ─ Must operate within authorizer boundaries ─ Have set, limited terms ─ Serve same or overlapping grade levels as district ─ Must admit all pupils including those with disabilities ─ Need facilities ─ Operate independently, subject to authorizer oversight

7 © 2016 Dannis Woliver Kelley Charter School Overview  Applicable laws ─ Charter schools are exempt from most of the Education Code, but are not exempt from: Federal laws Laws that apply generally to public agencies (e.g. Brown Act) Charter Schools Act (Ed Code et seq.) ─ State testing ─ Teacher credentialing/core courses ─ Instructional minutes Title 24 of Building Code (if not Field Act) Other laws that apply by their express terms ─ Many disputes over legal compliance

8 © 2016 Dannis Woliver Kelley Charter Oversight  District must monitor and oversee any charter it approves ─ must ensure compliance with charter, MOU and governing laws ─ authorizer may charge 1-3% of charter revenue for supervisorial oversight ─ charter schools must respond to district’s reasonable requests for information  District is only exempt from liability for acts, errors, omissions of charter if it has done adequate oversight

9 © 2016 Dannis Woliver Kelley Charter Oversight  Oversight Duties - the Law ─ Identify contact person for charter school ─ Visit charter school at least annually ─ Ensure that charter school complies with all reporting requirements ─ Monitor charter school’s fiscal condition ─ Notify State Department of termination ─ “All other oversight duties required by law” What are those?

10 © 2016 Dannis Woliver Kelley Charter Oversight  Oversight Duties – in practice ─ Monitor the charter school operations to evaluate compliance on an ongoing basis ─ Meet the statutory obligations of oversight ─ Investigate complaints or potential violations by charter school ─ Take action to bring charter school into compliance when authorizer knows or has reason to know of a potential grounds for revocation ─ Revoke if/as necessary

11 © 2016 Dannis Woliver Kelley Compliance Review Areas  Fiscal  Educational Program  Special Education  Governance

12 © 2016 Dannis Woliver Kelley Fiscal Compliance  Financial reporting requirements ─ Preliminary budget (by July 1) ─ Interim financial report (by 12/15) ─ Second interim financial report (by 3/15) ─ Final unaudited report (by September 15, for previous fiscal year) ─ Annual audit report to District, State Controller and County Superintendent ─ Ensure audit is timely received and reviewed for exceptions or fiscal issues

13 © 2016 Dannis Woliver Kelley Fiscal Compliance  Other areas ─ Multiple Year Financial Plan ─ Short or long-term debt ─ Potential liability claims ─ Bank account balances/cash flow ─ Audit information ─ Reserves ─ Staffing and enrollment projections ─ Internal controls regarding disbursements, procurement, conflict of interest, etc.

14 © 2016 Dannis Woliver Kelley Program Compliance  Goals/programs stated in Charter  Attendance and Recordkeeping (Independent Study)  LCAP  Classroom Visits ─ Teaching Methodology, Technology, Instructional Materials  Teacher Credentials  Standardized testing/scores  Class Credit (Accreditation/Transferability)  Instructional Minutes

15 © 2016 Dannis Woliver Kelley Program Compliance  Student discipline  Services to special populations (English Learners, Section 504)  Nondiscrimination policies & ethnic balance  Tuition free  Nonsectarian  Admissions policies followed

16 © 2016 Dannis Woliver Kelley Special Education Compliance  Charter school participation in a SELPA is either as a “school of a district” or an independent LEA-member  A charter school that is a “school of the district” must be treated like any other district school—typically District provides service  Independent LEA-member — LEA provides own service  Full continuum of program options must be made available to students by Charter School  Charter schools may not discriminate against children with disabilities in admissions

17 © 2016 Dannis Woliver Kelley Governance Compliance  Governing Board structure, appointments and member qualifications  If Nonprofit Corporation: Compliance with bylaws, IRS filings, corporate good standing  Legality of Meetings: locations, notice, agenda, open to the public  Parent participation  Conflict of interest controls/protocols  Oversight and control of school

18 © 2016 Dannis Woliver Kelley Facilities Requirements  School districts with charter schools operating in their boundaries are obligated to provide facilities for in- District charter school students under Proposition 39 (Ed. Code, § 47614)  “Reasonably equivalent” to comparison schools  Furnished and equipped  Contiguous  Must have at least 80 District students to qualify  Charters pay “pro rata share” or percent of revenue  Facilities allocated annually unless parties mutually agree otherwise

19 © 2016 Dannis Woliver Kelley SAN FRANCISCO LONG BEACH SAN DIEGO NOVATO CHICO SACRAMENTO SAN LUIS OBISPO Janet L. Mueller Dannis Woliver Kelley 750 B Street, Suite 2310 San Diego, CA | Tel |