Bill Summary for S 658 (2017-2018)

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Summary date: 

Apr 5 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 658 (Public) Filed Tuesday, April 4, 2017
AN ACT TO AUTHORIZE BOARDS OF COUNTY COMMISSIONERS TO DETERMINE THE METHOD OF PROVIDING COUNTY FUNDS TO CHARTER SCHOOLS, INCLUDING AUTHORIZING A COUNTY TO PROVIDE CAPITAL FUNDS TO A CHARTER SCHOOL SUBJECT TO RETURN OF THOSE FUNDS UPON DISSOLUTION OF THE SCHOOL, AND TO REVISE THE UNIFORM BUDGET FORMAT FOR LOCAL SCHOOL ADMINISTRATIVE UNITS.
Intro. by Hise, Barefoot.

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Bill summary

Amends GS 115C-218.100(b), setting out that all the net assets of a charter school purchased with public funds is deemed the property of the local school administrative unit in which the charter school is located upon the dissolution of the charter school. Excepts from this provision capital funds provided to a charter school by one or more counties pursuant to GS 115C-218.106(c), enacted below. Provides that all net assets of a charter school purchased or improved with the capital funds, up to the total amount of the funds provided, are deemed the property of the county or counties providing the funding, and, if applicable, are to be divided between the counties in proportion to the funds provided.  

Amends GS 115C-218.105 to eliminate subsections (c), (d), and (e) relating to local funds for a charter school. Makes conforming change to the statute's title.

Enacts GS 115C-218.106 to provide for local funds for a charter school. Subsection (a) directs each board of county commissioners to adopt a resolution on the method of appropriating county funds to any charter school that has a student enrolled who resides in the county. Allows the board of county commissioners to determine the method of appropriation of county funds to a charter school that is in the best interests of the county. Prohibits a resolution to reduce or release a local school administrative unit from its obligation to transfer charter school funds other than county appropriations in accordance with subsection (e) of this statute.

Subsection (b) requires the State Board of Education to determine and certify to the charter school and the board of county commissioners, by October 1 of each school year, the total membership of students residing in the county who attend charter schools for the budget year.

Subsection (c) details purposes for which funds can be used when a county has adopted a resolution authorizing the direct appropriation of county funds to charter schools for capital outlay purposes. Includes the purposes of: (1) the acquisition of real property; (2) the acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures; and (3) the acquisition or replacement of furniture and furnishings, instructional apparatus, and similar items of furnishings and equipment. 

Subsection (d) requires that when funds are used to acquire or improve property for a charter school pursuant to subsection (c), the amount provided by the county must be evidenced by a promissory note and secured by a deed of trust on the property acquired or improved by the funds. Provides for the county to subordinate the deed and for the county to release the deed upon satisfaction.

Subsection (e) directs a local board to transfer an amount equal to the per pupil share of the local current expense fund of the local school administrative unit for the fiscal year.  If the board of county commissioners provides in the resolution adopted pursuant to subsection (a) that county funds appropriated to a local board of education of a local school administrative unit located in the county are to be transferred to a charter school for a student who resides in the unit and attends a charter school, the local current expense funds transferred under this subsection includes county funds. The per pupil share of the local current expense fund is to be transferred to the charter school within 30 days of the receipt of monies into the local current expense fund. Clarifies that the amount transferred under this subsection that consists of revenue derived from supplemental taxes must be transferred only to a charter school located in the tax district for which these taxes are levied and in which the student resides. Permits the local school administrative unit and charter school to use the process of mediation of differences between the State Board of Education and a charter school provided in GS 115C-218.95(d) to resolve differences on the calculation and transference of the per pupil share of the local current expense fund.

Subsection (f) requires each local school administrative unit to provide each charter school to which it transfers a per pupil share of its local current expense fund with the specified information within the 30-day time period provided in subsection (e), including how the per pupil share of the local current expense fund was calculated. Additionally requires the local school administrative unit to provide the same information to the State Board of Education (State Board) by November 1 of each year for each charter school to which it transfers a per pupil share to its local current expense fund. Directs the State Board to adopt a policy to govern the collection of the information. Requires the State Board to issue a letter of noncompliance to a local school administrative unit that does not provide the State Board with the information required by subsection (f).

Subsection (g) provides for the case of a dispute between a charter school and local board of education. Requires the complaining party to give the other party 15 days' written notice of the alleged violation prior to commencing an action under subsection (e). Directs the court to award the prevailing party reasonable attorneys' fees and costs incurred in an action under subsection (e). Directs the court to order any delinquent funds, costs, fees, and interest to be paid in equal monthly installments and to establish a time for payment in full that is no later than one year from the entry of any judgment. 

Amends GS 115C-426(c), setting out the requirements of the uniform budget format. Makes organizational changes to divide the existing language of subsection (c) to new subsections (c1) and (c2). Subsection (c) contains existing language providing that the uniform budget format must include the State Public School Fund, the local current expense fund, and the capital outlay fund. New subsection (c1) provides that, in addition to the requirements of subsection (c), other funds can be used only for 14 listed purposes (replaces existing language in subsection (c)). New subsection (c2) contains existing language requiring each local school administrative unit to maintain those funds shown in the uniform budget format that are applicable to its operations. Deletes provisions of subsection (c) providing that the appropriation or use of fund balance or interest income by a local school administrative unit is not a local current expense appropriation included as part of the local current expense fund. Adds new subsection (e1) to provide for what other moneys made available or accruing to the local school administrative unit can include.

Makes conforming changes to GS 115C-448(d).

Amends GS 153A-149(b)(7) to expand the school purpose for which each county can levy property taxes without restriction as to the rate or amount to include the purpose of providing for the county's share of the cost of kindergarten, elementary, and secondary public schools, including charter schools chartered under Article 14A of GS Chapter 115C (currently does not specify includes charter schools), and post-secondary public education. 

Enacts GS 153A-458 to expressly authorize each county to appropriate funds to schools chartered under Article 14A of GS Chapter 115C. Permits counties to provide funds in accordance with GS 115C-218.106, as enacted.

Amends Section 8.35(e) of SL 2014-100 to now require the State Board of Education to provide state funding to a virtual charter school participating in the virtual charter school pilot program as provided in GS 115C-218.105, and to provide the amount of local funds provided to participating charter schools pursuant to GS 115C-218.106 is to be the lesser of $790 per pupil or the amount computed in accordance with GS 115C-218.106. Provides that participating virtual charter schools are also subject to the requirements of GS 115C-218.105(b) and GS 115C-218.106.

Effective July 1, 2017, and applies beginning with the 2017-18 school year.