Amendment SSA1-SB22

LRBs0094/3

PG:cjs:rs

2011 - 2012 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO 2011 SENATE BILL 22

May 25, 2011 - Offered by Senators Olsen and Darling.

SB22-SSA1,2,5 An Act to repeal 118.40 (2) (b) 1. and 2., 118.40 (2r) (c) and (cm), 118.40 (7) (am) 3., 118.40 (8) (h) and 118.51 (3) (a) 7.; to renumber 118.51 (1) (a); to renumber and amend 118.40 (2) (b) (intro.), 118.40 (3) (d), 118.40 (3) (e), 118.40 (4) (a) and 118.40 (4) (c); to amend 20.923 (6) (m), 40.02 (28), 40.02 (36), 111.81 (7) (f), 111.815 (1), 111.825 (2) (f), 111.92 (1) (c), 115.001 (1), 115.001 (16), 118.40 (2m) (b), 118.40 (2r) (b) 1. (intro.), 118.40 (2r) (b) 2., 118.40 (2r) (b) 3. (intro.), 118.40 (2r) (bm), 118.40 (2r) (d) (intro.), 118.40 (2r) (e) 2., 118.40 (2r) (f), 118.40 (4) (title), 118.40 (6), 118.40 (7) (am) 1., 118.40 (8) (a) (intro.), 118.40 (8) (f) 1., 118.40 (8) (g) 2., 118.40 (8) (g) 3., 118.51 (3) (a) 6., 118.51 (3) (b), 121.02 (1) (a) 2., 121.05 (1) (a) 9., 121.08 (4) (a) 1., 230.08 (2) (dm) and 230.35 (1s); to repeal and recreate 118.40 (2r) (b) 4.; and to create 15.07 (1) (a) 7., 15.56, 20.265, 20.923 (4) (e) 1. c., 20.923 (6) (aLm), 40.05 (2) (f) 9., 118.19 (14), 118.395, 118.40 (2r) (b) 1. e. and f., 118.40 (2r) (g), 118.40 (2r) (h), 118.40 (2r) (i), 118.40 (2r) (j), 118.40 (2t), 118.40 (3) (f), 118.40 (3) (g), 118.40 (3m) (intro.), 118.40 (3m) (a) and (d) to (f), 118.40 (4) (ag), 118.40 (4) (ar) 3., 118.40 (4) (d), 118.40 (7) (c), 118.51 (1) (ag), 119.60 (5), 119.60 (6) and 230.08 (2) (wc) of the statutes; relating to: charter schools, creating a Charter School Authorizing Board, granting rule-making authority, and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, school boards may enter into contracts with individuals, groups, businesses, or governmental bodies to establish charter schools, which operate with fewer constraints than traditional public schools. Current law also permits the University of Wisconsin (UW)-Milwaukee, UW-Parkside, the Milwaukee Area Technical College, and the city of Milwaukee to operate charter schools (independent charter schools) directly or to contract for the operation of charter schools. In general, only pupils who reside in the school district in which an independent charter school is located may attend the charter school. No entity authorized to establish an independent charter school may establish a virtual charter school.

This substitute amendment allows a cooperative educational service agency (CESA) to contract for the operation of independent charter schools. The substitute amendment also creates an independent state agency, the Charter School Authorizing Board (CSAB), and authorizes it to contract for the operation of independent charter schools. The CSAB consists of the state superintendent of public instruction and eight other members. Of the latter members, six are appointed by the governor and two by the state superintendent. The substitute amendment prohibits the CSAB from promulgating administrative rules. The substitute amendment permits the CSAB and a CESA to contract for the establishment of charter schools located anywhere in the state.

The substitute amendment eliminates the authority of the entities specified above to establish an independent charter school directly. Under the substitute amendment, a charter school may be established only by contract. In addition, every charter school must be operated by a governing board and every contract for the establishment of a charter school entered into by the CSAB must be with a nonprofit corporation. The substitute amendment removes the restrictions that limit who may attend an independent charter school. Under the substitute amendment, only a school board or a CESA may establish a virtual charter school. The substitute amendment eliminates the cap on the number of pupils who may attend virtual charter schools through the Open Enrollment Program, currently set at 5,250.

The substitute amendment allows a charter school contract to provide for more than one charter school, and allows a charter school governing board to enter into more than one contract. Until the 2017-18 school year, the substitute amendment limits the number of contracts that the CSAB may enter into. In addition, a contract with the CSAB may only authorize the establishment of charter schools located in one school district or in the territory of one CESA.

The substitute amendment provides that if a nonprofit corporation wishes to contract with the CSAB to operate a charter school, it must apply concurrently to the CSAB and the school board of the school district in which it wishes to locate the charter school by July 1. The school board has until October 1 to enter into a contract with the nonprofit corporation unless the school board and the nonprofit corporation jointly request the CSAB for an additional 30 days. If the school board does not wish to contract with the corporation or fails to successfully negotiate a contract with the corporation, the application is referred to the CSAB. The CSAB must determine by February 1 whether to contract with the corporation.

The substitute amendment requires every charter school under contract with the CSAB to pay an annual fee to the CSAB. The substitute amendment allows a charter school under contract with an authorizing entity, including the CSAB, to provide health care for its employees under the Group Insurance Board health coverage plan for local government employees if the charter school has become a participating employer in the Wisconsin Retirement System. Although a charter school's employees are not state employees and may not be local government employees, the substitute amendment provides that a charter school's governing board may elect to become a participating employer under the Wisconsin Retirement System.

Current law prohibits a school board from converting all of the public schools in the school district to charter schools unless the school board provides alternative public school attendance arrangements for pupils who do not wish to attend or are not admitted to a charter school. In addition, a school board may not grant a petition to establish a charter school that would result in the conversion of all the public schools in the school district to charter schools unless at least 50 percent of the teachers employed by the school district sign the petition.

This substitute amendment eliminates the conditions on converting all of a school district's public schools to charter schools and explicitly permits a school board to do so.

Current law provides that no pupil may be required to attend a charter school without his or her approval, if the pupil is an adult, or the approval of his or her parents, if the pupil is a minor. This substitute amendment provides that this prohibition does not apply if all of a school district's public schools are converted to charter schools.

The substitute amendment requires that a charter school accept pupils at random if the capacity of the school is insufficient to accept all applicants. A charter school must, however, give preference in enrollment to pupils who were enrolled in the school in the previous school year and to siblings of pupils who are enrolled in the school. In addition, the substitute amendment allows a charter school to give preference in enrollment to children of the charter school's founders, governing board members, and full-time employees so long as the number of such children given preference constitutes no more than 10 percent of the school's enrollment.

The substitute amendment directs the Department of Public Instruction to promulgate rules establishing a charter school teaching license that allows the licensee to teach multiple subjects in a charter school. The rules must require the applicant to demonstrate competence in each subject and must provide the applicant several means of doing so.

Under current law, state aid to independent charter schools is funded by a reduction in general school aid, applied on a prorated basis to all school districts. Current law provides that beginning in the 2011-12 school year, instead of reducing general school aid by the amount of charter school aid paid in the same school year, general school aid will be reduced by the amount of charter school aid paid in the 2010-11 school year. This substitute amendment eliminates this cap on the reduction in general school aid described above.

Under current law, pupils attending a charter school under contract with a school board are counted in the school district's enrollment for state aid purposes. This substitute amendment also counts in a school district's enrollment those resident pupils who are attending an independent charter school under contract with the CSAB or a CESA. However, the substitute amendment reduces the school district's state aid by an amount equal to the number of such pupils multiplied by the per pupil state aid amount that is paid to the independent charter schools.

The substitute amendment provides that if the Board of Directors of the Milwaukee Public Schools (MPS) has leased property owned by the city of Milwaukee to a charter school that is not an instrumentality of MPS, and the lease was in effect on January 1, 2011, when the lease is extended, modified, or renewed, the city of Milwaukee is a party to the lease and may negotiate with the charter school to modify the terms of the lease.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB22-SSA1, s. 1 Section 1. 15.07 (1) (a) 7. of the statutes is created to read:

SB22-SSA1,4,3 15.07 (1) (a) 7. Members of the charter school authorizing board appointed under s. 15.56 shall be appointed as provided in that section.

SB22-SSA1, s. 2 Section 2. 15.56 of the statutes is created to read:

SB22-SSA1,4,7 15.56 Charter school authorizing board. (1) There is created a charter school authorizing board consisting of the state superintendent of public instruction and the following members appointed for 3-year terms:

SB22-SSA1,4,8 (a) Six members appointed by the governor.

SB22-SSA1,5,3 (b) Two members appointed by the state superintendent of public instruction from a list of nominees submitted jointly by the Wisconsin Association of School Boards and the Wisconsin Association of School District Administrators.

SB22-SSA1,5,9 (2) The appointing authorities under sub. (1) shall ensure to the extent feasible that members appointed to the board are geographically diverse and have experience and expertise in governing public and nonprofit organizations; in management and finance; in public school leadership, assessment, and curriculum and instruction; and in education law; and understand and are committed to the use of charter schools to strengthen public education.

SB22-SSA1,5,11 (3) No member of the board appointed under sub. (1) may serve more than 2 consecutive terms.

SB22-SSA1,5,12 (4) The board does not have rulemaking authority.

SB22-SSA1, s. 3 Section 3. 20.265 of the statutes is created to read:

SB22-SSA1,5,15 20.265 Charter school authorizing board. There is appropriated to the charter school authorizing board for the following programs:

SB22-SSA1,5,17 (1) Support of charter schools. (g) Oversight. All moneys received as fees under s. 118.40 (4) (ar) 3. to perform its functions under s. 118.40.

SB22-SSA1,5,19 (h) Gifts and grants. All moneys received from gifts and grants for the purposes for which made.

SB22-SSA1, s. 4 Section 4. 20.923 (4) (e) 1. c. of the statutes is created to read:

SB22-SSA1,5,21 20.923 (4) (e) 1. c. Charter school authorizing board: executive director.

SB22-SSA1, s. 5 Section 5. 20.923 (6) (aLm) of the statutes is created to read:

SB22-SSA1,5,24 20.923 (6) (aLm) Charter school authorizing board: unclassified professional staff.

SB22-SSA1, s. 6 Section 6. 20.923 (6) (m) of the statutes is amended to read:

SB22-SSA1,6,6 20.923 (6) (m) University of Wisconsin System: deans, principals, professors, instructors, research assistants, librarians and other teachers, as defined in s. 40.02 (55), the staff of the environmental education board, and instructional staff employed by the board of regents of the University of Wisconsin System who provide services for a charter school established by contract under s. 118.40 (2r) (cm), 2009 stats.

SB22-SSA1, s. 7 Section 7. 40.02 (28) of the statutes is amended to read:

SB22-SSA1,6,18 40.02 (28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state, any charter school under contract with a school board or with an entity specified in s. 118.40 (2r) (b) 1., any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, a local exposition district created under subch. II of ch. 229, a transit authority created under s. 66.1039, and a long-term care district created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts district created under subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.

SB22-SSA1, s. 8 Section 8. 40.02 (36) of the statutes is amended to read:

SB22-SSA1,7,6 40.02 (36) "Governing body" means the legislature or the head of each state agency with respect to employees of that agency for the state, the common council in cities, the village board in villages, the town board in towns, the county board in counties, the school board in school districts, or the board, commission or other governing body having the final authority for any other unit of government, for any agency or instrumentality of 2 or more units of government, for any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, for a local exposition district created under subch. II of ch. 229, for a charter school under contract with a school board or with an entity specified in s. 118.40 (2r) (b) 1., or for a long-term care district created under s. 46.2895, but does not include a local cultural arts district created under subch. V of ch. 229.

SB22-SSA1, s. 9 Section 9. 40.05 (2) (f) 9. of the statutes is created to read:

SB22-SSA1,7,12 40.05 (2) (f) 9. If the participating employer was a charter school under contract with a school board or with an entity specified in s. 118.40 (2r) (b) 1., and there is no successor employer to assume any outstanding obligations under the terms of this paragraph, the outstanding obligation shall be the responsibility of the school board or entity that contracted for the establishment of the charter school.

SB22-SSA1, s. 10 Section 10. 111.81 (7) (f) of the statutes is amended to read:

SB22-SSA1,7,16 111.81 (7) (f) Instructional staff employed by the board of regents of the University of Wisconsin System who provide services for a charter school established by contract under s. 118.40 (2r) (cm), 2009 stats.