Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule establishes the stan- dards and
indicators for charter sponsorship as required by the Missouri Department of
Elementary and Secondary Education. These standards serve as the foundation for
the sponsor application process as required by section 160.403, RSMo, and the
evaluation process for sponsors required in section 160.400.17(1),
RSMo.
(1) Standard 1-Sponsor
Commitment and Capacity. The sponsor believes that chartering is a means to
provide children with access to quality public schools that meet identified
needs. The sponsor creates organizational systems and structures to fulfill its
sponsorship duties and commits human and financial resources necessary to
conduct its sponsoring duties effectively and efficiently. The sponsor shall -
(A) Ensure that all sponsorship staff and
members of the sponsor's decision-making body understand and are committed to
supporting and advancing the purposes of Missouri's charter school law and
quality sponsorship practices;
(B)
Engage in the sponsorship of charter schools according to the provisions and
stipulations of section 160.400.2-5, RSMo, which address the types of entities
that may sponsor charter schools and under what conditions;
(C) Employ, contract for, or otherwise
provide personnel at a staffing level appropriate and sufficient to carry out
its sponsorship duties, which require expertise that includes, but is not
limited to, education leadership, curriculum, instruction, assessment, special
education, federal programs, performance accountability, data analysis, law,
finance, and nonprofit governance;
(D) Provide or provide access to professional
development opportunities for staff to achieve and maintain high standards of
professional sponsoring practice and to promote continuous
improvement;
(E) Retain records
showing that all individuals conducting sponsorship work, including any
individual who has contact with students, complete a criminal background check
and Missouri's Family Care Safety Registry (FCSR) check as outlined in section
168.133.1, RSMo;
(F) Ensure that
sponsor staff and members of the sponsor's decision-making body comply with the
charter school office's or the sponsor's conflict of interest policy with
respect to the charter schools it sponsors;
(G) Regularly evaluate its work against
Missouri's charter school law and these standards, and develop and implement
timely plans for improvement when it falls short;
(H) Provide an annual report to the joint
committee on education, as outlined in section 160.400.12, RSMo, that includes
sufficient data and information to demonstrate that the sponsor is in material
compliance with sections
160.400
to
160.425,
RSMo, and section
167.349,
RSMo; and
(I) Annually submit, on
the form provided by the Department of Elementary and Secondary Education
(department), documentation showing that ninety percent (90%) of state funds
expended during said fiscal year, are expended for sponsoring in support of the
sponsor's charter school sponsorship program or as a direct investment in the
sponsored schools, in accordance with section 160.400.11, RSMo.
(2) Standard 2 - Application
Process and Decision Making. The sponsor implements a comprehensive application
process that includes clear application materials and guidance; follows fair,
trans- parent procedures, timelines, and rigorous evaluation criteria; and
approves only those charter applications that demonstrate a strong capacity to
establish and operate quality charter schools. The sponsor shall -
(A) Implement a thorough charter application
process as outlined in section 160.400.11(2), RSMo, and according to the
timeline outlined in section 160.405.2(1)-(4), RSMo, without requiring any fee
from the applicant in accordance with section 160.400.6, RSMo;
(B) Develop and make readily available a
charter application that-
1. Includes
comprehensive questions to elicit the information needed for a rigorous
evaluation of the applicant's plans and capacity in accordance with the
requirements stated in section 160.405.1(1)-(17), RSMo;
2. Clearly articulates any chartering
priorities the sponsor may have established, including the priority to serve
high-risk students in accordance with section 160.405.2(5), RSMo; and
3. Includes clear criteria for the evaluation
of charter applications;
(C) Differentiate or supplement application
requirements and corresponding evaluation criteria for applicants who currently
oversee or manage charter schools in Missouri or other states;
(D) For applicants that are existing school
operators, ensure that the application requires-
1. Specific information about the existing
operator's prior academic achievement, particularly if the applicant has
operated or is operating schools in Missouri, and successful management of
nonacademic school functions, including financial and organizational
performance, in accordance with section 160.415.7, RSMo;
2. An explanation of any never-opened,
terminated, or non-renewed charter schools (including terminated or non-renewed
third-party contracts to operate charter schools) within the last five (5)
years and other such requirements as outlined in section 160.415.7,
RSMo;
3. A description of the
existing school operator's proposed growth plan; and
4. The operator's most recent financial
audits;
(E) For
applicants that intend to contract with an education service provider for
substantial educational or charter school management services, ensure that the
application requires-
1. A draft of the
proposed management services agreement that sets forth proposed key terms,
including roles and responsibilities of the charter school governing board, the
charter school staff, and the service provider; the services to be provided;
the measures by which the charter school governing board will evaluate the
service provider; a detailed explanation of compensation to be paid to the
service provider; financial controls and oversight; methods of contract
oversight and enforcement; and conditions for contract renewal and termination;
and
2. A disclosure and explanation
of any existing or potential conflicts of interest between the charter school
governing board and proposed service provider or any affiliated business
entities;
(F) Engage
teams of qualified application evaluators with relevant educational,
organizational (governance and management), financial, and legal expertise to
review and evaluate the charter application according to the established
evaluation criteria;
(G) Provide
orientation or training to application evaluators to ensure consistency in the
application of the approval criteria;
(H) Conduct an in-person interview with each
qualified applicant to examine the applicant's experience and capacity, and
conduct due diligence to examine the applicant's experience, capacity, and
track record of performance;
(I)
Advise charter applicants of the meaning of local education agency (LEA) status
as it concerns the operation of the charter school as outlined in section
160.415.4, RSMo;
(J) Grant charters
only to applicants that have demonstrated competence and capacity to succeed in
all aspects of the school, with particular consideration to any available
information about schools previously operated in Missouri, if applicable, and
consistent with the published application evaluation criteria, in accordance
with sections 160.400.11(2) and
160.405.2(2),
RSMo;
(K) Promptly notify
applicants of approval or denial and, if the charter is denied, notify the
applicant in writing explaining the factors that determined the decision in
accordance with section 160.405.2(3), RSMo; and
(L) Submit an electronic copy of each
approved charter, accompanied by a statement finding that the application meets
the statutory requirements and the monitoring plan under which the sponsor will
evaluate the academic performance of the charter school, to the department for
review by November 10th (or the following Monday if November
10th falls on a Saturday or Sunday) of the year
prior to the proposed opening date of the charter school as outlined in and in
accordance with section 160.405.3, RSMo.
(3) Standard 3 - Charter Contract. Charter
contract is defined as a document, executed by the sponsor and the school,
which is separate from the charter application that clearly articulates the
rights and responsibilities of each party regarding charter school autonomy,
expected outcomes, measures for evaluating success or failure, per- formance
consequences based on the annual performance report, and other material terms.
In accordance with section 160.400.11(3), RSMo, the sponsor executes a charter
contract with each charter school that articulates the rights and
responsibilities of each party regarding: school autonomy, funding,
administration and oversight, outcomes, the measures for evaluating success or
failure, perfor- mance consequences, and other material terms. The sponsor
shall -
(A) Execute a charter contract with
each approved charter school, which must be organized as a Missouri nonprofit
corporation, for an initial term of five (5) years, which may be renewed, in
accordance with section 160.405.1(9), RSMo. The charter contract shall define-
1. The standards for intervention, probation,
renewal, non-renewal, and revocation while also establishing the consequences
for not meeting those standards, in accordance with sections 160.405.8 and
160.405.9(2)-(3)
RSMo;
2. A set of reasonable
pre-opening requirements or conditions for a new charter school to open to
ensure that it meets all health, safety, and other legal requirements prior to
opening; and
3. A process that
charter schools and sponsors must follow, in accordance with section 160.405.6,
RSMo, to amend charter contracts and the types of material modifications that
require sponsor approval. The sponsor shall submit any such approved amendments
to the department within thirty (30) days of approval;
(B) Include in said charter contract or
incorporate by reference clearly defined performance expectations for the term
of the contract, the sources of data to evaluate charter school performance
against these expectations, and the targets that the charter school must meet
to earn renewal in the following areas:
1.
Pupil academic standards for all students and significant student subgroups
within each charter school, aligned to standards adopted by the State Board of
Education, as outlined in and in accordance with sections 160.405.1(7),
160.405.4(6),
and 160.405.9(2)(a), RSMo;
2.
Financial performance expectations, which measure both near-term and long-term
financial health, including, but not limited to, those outlined in section
160.405.9(2)(b), RSMo; and
3.
Organizational performance expectations, including, but not limited to,
compliance with all governance-related laws, the fulfillment of all state and
federal requirements regarding fair and appropriate service to students with
disabilities, and the maintenance of a safe and operationally sound facility,
as outlined in sections 160.405.4 and
160.405.11-.14,
RSMo;
(C) If a charter
school is planning to contract with an education service provider for
substantial educational or school management services, ensure that the charter
contract clearly establishes the primacy of the charter contract over the
management services contract; and
(D) To the extent the sponsor, outside of the
charter school office, is providing any fee-based services to its charter
schools, clearly state in writing, in the charter contract or elsewhere, that
such services are not, nor ever will be, a condition of sponsorship.
(4) Standard 4-Ongoing Oversight
and Evaluation. The sponsor conducts charter school oversight that evaluates
charter school per- formance; monitors charter school compliance with both
federal and state statutes and regulations; ensures charter school autonomy;
pro- tects student rights; informs charter school intervention, probation,
revocation, and renewal decisions; and provides annual public reports on
charter school performance. The sponsor shall -
(A) Implement a comprehensive performance
accountability and compliance monitoring system that-
1. Is defined in the charter
contract;
2. Provides the sponsor
with the information necessary to make thorough and evidence-based
intervention, probation, renewal, non-renewal, and revocation decisions;
and
3. Effectively streamlines
federal, state, and local performance expectations and compliance requirements
while protecting charter school autonomy and minimizing charter school
administrative and reporting burdens;
(B) Define and communicate this performance
accountability and compliance monitoring system to charter schools, including
the process, methods, and timing of gathering and reporting charter school
performance and compliance data;
(C) Visit each charter school as appropriate
and necessary for collecting data that cannot otherwise be obtained and in
accordance with the contract, while ensuring that the frequency, purposes, and
methods of such visits respect charter school autonomy and avoids operational
interference;
(D) Communicate
regularly with charter schools, as needed, including both school leaders and
governing boards, and provide timely notice of contract violations, performance
deficiencies, and mandated interventions, including probationary status, as
outlined in section 160.405.8, RSMo;
(E) In accordance with section 160.405.7,
RSMo, evaluate and publish on the sponsor's website an annual performance
report for each charter school, which shall include an analysis of each charter
school's performance and progress toward meeting the expectations and targets
stated in the charter contract, including subgroup performance and essential
compliance requirements, and clearly communicate evaluation results to the
charter school's governing board and leadership;
(F) Refrain from directing charter school
decisions or choices that are appropriately within a school's purview under the
charter law or contract;
(G)
Monitor compliance with all state and federal requirements and guidelines
regarding services to students, including, but not limited to, special
education; all title programs; career and technical education; food service;
and services for foster, homeless, immigrant, and English language learner
students;
(H) Monitor compliance
with specific state public education requirements that apply to charter
schools, including, but not limited to-
1.
Requirements relating to student discipline as outlined in sections
160.261,
167.161,
167.164,
and 167.171, RSMo;
2. Notification
of criminal conduct to law enforcement authorities as outlined in sections
167.115-117, RSMo;
3. Academic
assessment of pupils, including that all eligible students participate in the
Missouri Assessment Program (MAP), as outlined in section
160.518,
RSMo;
4. Transmittal of charter
school records to a requesting school official as outlined in section
167.020,
RSMo;
5. Provision of the minimum
amount of school time required as outlined in section
171.031,
RSMo;
6. For charter school
employees and board members, timely completion of criminal history background
checks and the family care safety registry checks as outlined in section
168.133,
RSMo;
7. Maintenance of policies
consistent with the Family Educational Rights and Privacy Act (FERPA) and the
Health Insurance Portability and Accountability Act (HIPAA) guidelines to the
extent they are applicable;
8.
Certification of staff and participation in the appropriate employee retirement
system as outlined in section
160.420,
RSMo; and
9. Provision of education
and services to students with disabilities, as outlined in sections
162.670 and
162.710,
RSMo, the Individuals with Disabilities Education Act (
20 U.S.C. Section
1400 ) and Section 504 of the Rehabilitation
Act of 1973 (
29 U.S.C.
Section 794 ) or successor
legislation;
(I) Verify
that charter schools admit students through a non-discriminatory process that
grants admission to resident and non-resident students eligible to attend
through an urban voluntary transfer program or from an unaccredited school
district, as outlined in sections 160.410.1 and
160.410.3,
RSMo;
(J) Monitor the admission
process of any charter school where capacity is insufficient to enroll all
students who submit a timely application, to ensure that the process complies
with the terms outlined in section 160.410.2, RSMo;
(K) Monitor the charter school board's
compliance with various governance-related laws, including, but not limited to-
1. Retention of necessary board records as
required by the gen- eral record retention schedule and the public school
record retention schedule as outlined in section
109.255,
RSMo;
2. Submission of financial
interest statements annually as out- lined in sections
105.483,
105.485,
and
105.492,
RSMo;
3. Maintenance of conflict of
interest policies and procedures to address prohibited conflicts as outlined in
section 160.400.15, RSMo;
4.
Maintenance of a policy to promptly address parent or guardian grievances, as
outlined in section 160.405.1(13), RSMo; and
5. Conduct of board and committee business in
a manner out- lined in the Missouri Sunshine Laws, sections 610.010-610.030,
RSMo; and
(L) Ensure
that charter school board members are aware of and have access to professional
development or training opportunities to perform and fulfill the duties of a
charter school board member.
(5) Standard 5 - Fiscal Oversight. The
sponsor monitors the charter school's financial performance and compliance with
fiduciary provi- sions in statute. The sponsor shall -
(A) Collect and review annual financial
audits of charter schools, conducted by a qualified independent auditor as
outlined in section 160.405.4(4), and verify that the annual audit summary is
published as outlined in section 165.121.5, RSMo;
(B) Monitor that charter schools' utilization
of the coding procedures prescribed in the Missouri Financial Accounting Manual
as outlined in section 160.405.1(10), RSMo;
(C) Monitor that the charter's governing
board has adopted adequate financial controls to assure that revenues received
for operation of the charter school are expended for expenses related to the
operation of the charter school, including, but not limited to-
1. Procedures for the charter board to review
the monthly check register, as needed, and clarify what level of expenditure
necessitates board review and signature on a specific check;
2. Establishment of a bank account, in which
state funds are deposited, that is under the control of the charter board;
and
3. If the charter contracts
with an education service provider for substantial educational or school
management services, establishment of a process to ensure that payments to the
service provider receive prior approval of the governing board or its designee,
as outlined in section 160.415.7(6), RSMo;
(D) Evaluate each charter school's financial
performance against the expectations and targets stated in the charter contract
and, by October 1st of each year, identify any
charter schools that are financially stressed, as outlined in section
160.417.1, RSMo, and as defined by section 160.417.2, RSMo;
(E) By November 1st of each year, notify the
governing board of any charter school that is identified as financially
stressed, and review and approve a budget and education plan developed by the
charter school, within forty-five (45) calendar days of such notification, on
forms provided by the sponsor. In addition to the requirements outlined in
section 160.417.3, RSMo, the budget and education plan must clearly outline the
basis for such identification, the steps the charter school will take to remedy
the financial stress, responsible individuals, corresponding deadlines and
timeframes, the outcomes that the charter school must achieve to exit this
designation, and the steps that the sponsor may take, including revocation, if
the charter school does not appropriately remedy the financial stress by March
1st of the current school year. The sponsor may also place any school
identified as financially stressed on probation in accordance with section
160.405.8, RSMo. The department may withhold any payment of financial aid due
to the charter school until the charter school and sponsor have fully complied
with this requirement, as outlined in section 160.417.5, RSMo;
(F) To the extent necessary, cooperate with
the department in its monitoring of charter schools' fiscal management of
federal grant programs, and consider any findings by the department with
respect to said fiscal management in sponsor's decision making; and
(G) Ensure that charter schools submit the
Annual Secretary of the Board Report (ASBR) and an annual independent financial
audit to the department in the timeframe outlined by Missouri statute and ver-
ify that no conflict of interest exists between the financial auditor and the
person or persons who prepared the ASBR as outlined in 160.417 and 162.821,
RSMo.
(6) Standard 6 -
Renewal, Replication, Expansion, Revocation, and Closure Decision Making. The
sponsor implements a transparent and rigorous process that uses comprehensive
academic, financial, and organizational performance data to make decisions
about renewal, replication, expansion, revocation, and closure. The sponsor
shall-
(A) Base the renewal process and
renewal decisions on thorough analyses of a comprehensive body of objective
evidence defined by the charter contract consistent with section
160.405.9(2)-(3), RSMo;
(B) Provide
each charter school, in advance of the renewal decision, a cumulative
performance report that summarizes the charter school's performance record over
the charter term in accordance with the performance expectations set forth in
the charter contract, and states the sponsor's summative findings concerning
charter school performance and its prospects for renewal;
(C) Grant renewal to charter schools that
have achieved the performance expectations and corresponding targets stated in
the charter contract, are organizationally and fiscally viable, and have been
diligent to the terms of the contract and applicable law, consistent with
sections 160.400.11(5) and
160.405.9(2)-(3),
RSMo;
(D) To the extent the charter
school qualifies for an expedited renewal process, as defined by section
160.405.9(2)(d), the sponsor shall implement a streamlined renewal process,
which decreases the burden on the charter school (i.e., fewer application
requirements, a more targeted document request, or a shorter renewal site
visit) and the amount of time between submission of the renewal application and
the sponsor's decision;
(E)
Promptly notify in writing each charter school of the sponsor's renewal or
non-renewal decision, including explanation of the reasons for the
decision;
(F) In accordance with
section
160.408,
RSMo, provide "high-quality charter schools," as defined by section
160.408,
RSMo, with opportunities for expedited replication and expansion;
(G) Base decisions to approve additional
charter school sites or to expand grade levels on thorough analyses of a
comprehensive body of objective evidence defined by the charter
contract;
(H) Revoke a charter
during the charter term if there is clear evidence of underperformance or
violation of law or the public trust that imperils students or public funds as
outlined in section 160.405.8, RSMo;
(I) In the event of a revocation, provide
charter schools written notice at least sixty (60) days prior to revoking the
charter, as outlined in section 160.405.8(3), RSMo, and establish clear
procedures to conduct an administrative hearing regarding the potential charter
revocation, as outlined in section 160.405.8(4), RSMo; and
(J) Maintain and implement a clear charter
school closure process, including, but not limited to, clear procedures to
ensure orderly transition of student records, archival of business operation,
transfer of personnel records, submission of financial reports, resolution of
financial obligations, disposition of charter school assets, and a notification
plan to inform parents or guardians, among other stakeholders, of the closure
action within thirty (30) days of the decision to close, as outlined in section
160.405.1(15), RSMo.
*Original authority: 160.400-160.425, RSMo, see
Revised Statutes of Missouri Supp. 2012 and 161.092, RSMo 1963,
amended 1973, 2002, 2003.