Amendment SSA1-SB22

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.

SB22-SSA1, s. 11 Section 11. 111.815 (1) of the statutes, as affected by 2011 Wisconsin Act 10, is amended to read:

SB22-SSA1,8,8 111.815 (1) In the furtherance of this subchapter, the state shall be considered as a single employer and employment relations policies and practices throughout the state service shall be as consistent as practicable. The office shall negotiate and administer collective bargaining agreements. To coordinate the employer position in the negotiation of agreements, the office shall maintain close liaison with the legislature relative to the negotiation of agreements and the fiscal ramifications of those agreements. Except with respect to the collective bargaining unit specified in s. 111.825 (2) (f), the office is responsible for the employer functions of the executive branch under this subchapter, and shall coordinate its collective bargaining activities with operating state agencies on matters of agency concern. The legislative branch shall act upon those portions of tentative agreements negotiated by the office that require legislative action. With respect to the collective bargaining unit specified in s. 111.825 (2) (f), the governing board of the charter school established by contract under s. 118.40 (2r) (cm), 2009 stats., is responsible for the employer functions under this subchapter.

SB22-SSA1, s. 12 Section 12. 111.825 (2) (f) of the statutes is amended to read:

SB22-SSA1,8,12 111.825 (2) (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.

SB22-SSA1, s. 13 Section 13. 111.92 (1) (c) of the statutes is amended to read:

SB22-SSA1,8,19 111.92 (1) (c) Any tentative agreement reached between the governing board of the charter school established by contract under s. 118.40 (2r) (cm), 2009 stats., acting for the state, and any labor organization representing a collective bargaining unit specified in s. 111.825 (2) (f) shall, after official ratification by the labor organization and approval by the chancellor of the University of Wisconsin-Parkside, be executed by the parties.

SB22-SSA1, s. 14 Section 14. 115.001 (1) of the statutes is amended to read:

SB22-SSA1,8,23 115.001 (1) Charter school. "Charter school" means a school under contract with a school board under s. 118.40 or with one of the entities under s. 118.40 (2r) (b), or a school established and operated by one of the entities under s. 118.40 (2r) (b).

SB22-SSA1, s. 15 Section 15. 115.001 (16) of the statutes is amended to read:

SB22-SSA1,9,5 115.001 (16) Virtual charter school. "Virtual charter school" means a charter school under contract with a school board or board of control of a cooperative educational service agency under s. 118.40 in which all or a portion of the instruction is provided through means of the Internet, and the pupils enrolled in and instructional staff employed by the school are geographically remote from each other.

SB22-SSA1, s. 16 Section 16. 118.19 (14) of the statutes is created to read:

SB22-SSA1,9,11 118.19 (14) The department shall promulgate rules establishing a charter school teaching license that allows the licensee to teach multiple subjects in a charter school. The rules shall require the applicant to demonstrate competence in each subject that he or she wishes to teach and shall provide the applicant several means of doing so.

SB22-SSA1, s. 17 Section 17. 118.395 of the statutes is created to read:

SB22-SSA1,9,16 118.395 Charter school authorizing board; executive director, staff. (1) The charter school authorizing board shall appoint an executive director outside the classified service. The executive director shall coordinate the activities of the board and exercise such further powers, functions and duties as the board prescribes.

SB22-SSA1,9,20 (2) The executive director of the charter school authorizing board may employ 4 professional staff members outside the classified service. Subject to authorization under s. 16.505, the executive director may employ additional professional staff members outside the classified service.

SB22-SSA1, s. 18 Section 18. 118.40 (2) (b) (intro.) of the statutes is renumbered 118.40 (2) (b) and amended to read:

SB22-SSA1,9,25 118.40 (2) (b) A school board may grant a petition that would result in the conversion of all of the public schools in the school district to charter schools if all of the following apply:.

SB22-SSA1, s. 19 Section 19. 118.40 (2) (b) 1. and 2. of the statutes are repealed.

SB22-SSA1, s. 20 Section 20. 118.40 (2m) (b) of the statutes is amended to read:

SB22-SSA1,10,5 118.40 (2m) (b) A school board may not enter into a contract under par. (a) that would result in the conversion of all of the public schools in the school district to charter schools unless the school board complies with sub. (2) (b) 2.

SB22-SSA1, s. 21 Section 21. 118.40 (2r) (b) 1. (intro.) of the statutes is amended to read:

SB22-SSA1,10,10 118.40 (2r) (b) 1. (intro.) All Except as provided in subd. 4., any of the following entities may establish by charter and operate a charter school or, on behalf of their respective entities, may initiate a contract with an individual or group to operate a school as a charter school:

SB22-SSA1, s. 22 Section 22. 118.40 (2r) (b) 1. e. and f. of the statutes are created to read:

SB22-SSA1,10,13 118.40 (2r) (b) 1. e. The board of control of a cooperative educational service agency.

SB22-SSA1,10,14 f. The charter school authorizing board.

SB22-SSA1, s. 23 Section 23. 118.40 (2r) (b) 2. of the statutes is amended to read:

SB22-SSA1,10,24 118.40 (2r) (b) 2. A charter shall include all of the provisions specified under sub. (1m) (b) 3. to 14. A contract shall include all of the provisions specified under sub. (1m) (b) 1. to 14. and shall specify the effect of the establishment of the charter school on the liability of the contracting entity under this paragraph. The contract may include other provisions agreed to by the parties. The chancellor of the University of Wisconsin-Milwaukee or of the University of Wisconsin-Parkside may not establish or enter into a contract for the establishment of a charter school under this paragraph without the approval of the board of regents of the University of Wisconsin System.

SB22-SSA1, s. 24 Section 24. 118.40 (2r) (b) 3. (intro.) of the statutes is amended to read:

SB22-SSA1,11,8 118.40 (2r) (b) 3. (intro.) If the chancellor of the University of Wisconsin-Parkside contracts for the establishment of a charter school, the contract shall also provide that the charter school must be operated by a governing board and that the chancellor or his or her designee must be a member of the governing board. In addition, if and the contract provides that the instructional staff of the charter school shall consist of employees of the board of regents of the University of Wisconsin System, the contract shall also include provisions that do all of the following:

SB22-SSA1, s. 25 Section 25. 118.40 (2r) (b) 4. of the statutes is repealed and recreated to read:

SB22-SSA1,11,12 118.40 (2r) (b) 4. a. The charter school authorizing board may contract only with the governing board of a nonprofit corporation for the operation of a charter school.

SB22-SSA1,11,14 b. No entity under subd. 1. other than the board of control of a cooperative educational agency may contract for the operation of a virtual charter school.

SB22-SSA1, s. 26 Section 26. 118.40 (2r) (bm) of the statutes is amended to read:

SB22-SSA1,11,25 118.40 (2r) (bm) The common council of the city of Milwaukee, the chancellor of the University of Wisconsin-Milwaukee, and the Milwaukee area technical college district board may only establish or enter into a contract for the establishment of a charter school located in the school district operating under ch. 119. The chancellor of the University of Wisconsin-Parkside may only establish or enter into a contract for the establishment of a charter school located in a unified school district that is located in the county in which the University of Wisconsin-Parkside is situated or in an adjacent county. A contract with the charter school authorizing board may only authorize the establishment of charter schools located in one school district or in the territory of one cooperative educational service agency.

SB22-SSA1, s. 27 Section 27. 118.40 (2r) (c) and (cm) of the statutes are repealed.

SB22-SSA1, s. 28 Section 28. 118.40 (2r) (d) (intro.) of the statutes is amended to read:

SB22-SSA1,12,4 118.40 (2r) (d) (intro.) The chartering or contracting entity under par. (b) shall do all of the following:

SB22-SSA1, s. 29 Section 29. 118.40 (2r) (e) 2. of the statutes is amended to read:

SB22-SSA1,12,13 118.40 (2r) (e) 2. If the chancellor of the University of Wisconsin-Parkside establishes or contracts for the establishment of a charter school under this subsection, in March the department shall pay to the unified school district in which the charter school is located, from the appropriation under s. 20.255 (2) (fm), an amount equal to the amount of school aid per pupil to which the unified school district is eligible in the current school year multiplied by the number of pupils attending the charter school who attended the charter school in the 2010-11 school year and who were previously enrolled in the unified school district.

SB22-SSA1, s. 30 Section 30. 118.40 (2r) (f) of the statutes is amended to read:

SB22-SSA1,12,20 118.40 (2r) (f) If the chancellor of the University of Wisconsin-Parkside establishes or contracts for the establishment of a charter school under this subsection, biennially the chancellor shall submit a report to the legislature under s. 13.172 (2). The report shall include information on the academic performance of the pupils who attend the charter school and on the success of the governance structure of the charter school.