CHARTER SCHOOL FINANCIAL ACCOUNTABILITY.

View NCGA Bill Details2015-2016 Session
House Bill 96 (Public) Filed Thursday, February 19, 2015
AN ACT TO INCREASE THE FINANCIAL ACCOUNTABILITY OF CHARTER SCHOOLS.
Intro. by L. Hall.

Status: Ref to the Com on Judiciary I, if favorable, Regulatory Reform, if favorable, Education - K-12 (House Action) (Feb 23 2015)
H 96

Bill Summaries:

  • Summary date: Feb 19 2015 - More information

    Amends GS 115C-218.1(b) to add the following items to those that must be included in a charter school application: (1) the names and contact information for the principal officers of the school, or an organization that may operate the school, with the authority to maintain or expend school funds and (2) the names of any individual with the authority to maintain or expend school funds who is currently, or was previously, listed in the database maintained by the Office of Charter Schools related to prior incidences of financial and governance noncompliance. 

    Amends GS 115C-218.5 to add to the conditions that must be met before the State Board can give final approval to a charter school application, that the applicant is not employing an individual who is currently listed in the database maintained by the Office of Charter Schools related to prior incidences of financial and governance noncompliance. Also requires a charter school to notify the State Board of Education (SBOE) and the Office of Charter Schools within thirty days of any change in the information provided in the charter school application under GS 115C-218.1(7a) or (7b), which are the new items required in the application, as described above.

    Amends GS 115C-218.15(c) to require the written charter under which a charter school operates to include terms requiring that individuals with the authority to maintain or expend school funds be personally and individually liable for debts incurred by the charter school in accordance with new GS 115C-218.20(a2). 

    The above provisions apply to an initial application for or the renewal of a charter school, including virtual charter schools.

    Amends GS 115C-218.20 as follows. Enacts new (a1) requiring the principal officer of a charter school or any other individual with the authority to maintain or expend school funds to file a bond with the SBOE executed by the individual as a principal and by a bonding company authorized to do business in this state. Requires that the bond be payable to the SBOE, be conditioned on fulfillment of the obligations of the individual in his or her capacity as an employee of the charter school, and remain in effect until cancelled by the bonding company. Allows the bonding company to cancel the bond with thirty days' notice to the SBOE.  Enact new (a2), allowing any individual with the authority to maintain or expend funds on behalf of the charter school to be held personally and individually liable for any outstanding debts incurred by a charter school in excess of any funds reserved for charter school closure proceedings or amounts applied from liability insurance held by the board of directors and required bonds upon the closure of a charter school. Adds to the existing SBOE duties the requirement to adopt rules establishing the bond requirement for principal officers and any others with the authority to maintain or expend school funds. Requires that the bond requirement be met for individuals employed by the charter school. Makes conforming changes to GS 115C-218.1(b). Makes technical changes. 

    Amends GS 115C-218.90 to add new (c) prohibiting the board of directors of a charter school from employing, whether directly or indirectly by contract, any individual that is listed in the Office of Charter Schools database as being related to prior incidences of financial and governance noncompliance for any services related to the maintenance or expenditure of charter school funds. This provision applies to an individual initially employed or reemployed, directly or indirectly by contract, on or after the effective date of this bill. 

    Amends GS 115C-218.100, enacting new (c) and (d), providing that, following the dissolution of a charter school, for individuals that are personally and individually liable and have not paid the SBOE the debt owed, the SBOE can submit the debt owed to the Department of Revenue or use an alternative means of collection for the debt owed, including establishing a repayment agreement with the individual(s).  Requires the Office of Charter Schools to maintain a database of individuals with the authority to maintain or expend funds on behalf of charter schools who (i) had such authority when the charter school was dissolved for reasons of financial and governance noncompliance and (ii) failed to repay any debt owed to the SBOE for which the person is held personally and individually liable. Further specifies personal information to be maintained in the database. Provides that names are to be removed once payment of debt is received in full and such individuals are eligible for employment with a charter school once again. 

    Directs the SBOE, within sixty days of the effective date of this bill, to adopt language to be included in written charter school agreements that implement the requirements specified in GS 115C-218.15 as well as adopt bond requirements for individuals with the authority to maintain or spend funds of a charter school. 

    Allows the SBOE to adopt policies in regards to debt collection methods from individuals as specified above that have failed to pay the debt owed to the SBOE. Such methods can include repayment plans and installment contracts. Requires those individuals with the authority to maintain or spend charter school funds to meet the bond requirements of GS 115C-218.20(a1) within ninety days of the effective date of this bill.  


Printer-friendly: Click to view