An Act To Change the Process for Approval of Charter Schools
Maine Legislature, Session 126, LD 1349
Committee: Education and Cultural Affairs
Sponsors: KORNFIELD, DAUGHTRY, MASTRACCIO, RANKIN
Amends: 5 MRSA §12004-G, 20-A MRSA §2401, 20-A MRSA §2405, 20-A MRSA §2402, 20-A MRSA §2403, 20-A MRSA §2404, 20-A MRSA §2405-A, 20-A MRSA §2406, 20-A MRSA §2407, 20-A MRSA §2408, 20-A MRSA §2409, 20-A MRSA §2410, 20-A MRSA §2411, 20-A MRSA §2412, 20-A MRSA §2412-A, 20-A MRSA §2413

Legislative Document 
No. 1349 
H.P. 967 
House of Representatives, April 9, 2013 
An Act To Change the Process for Approval of Charter Schools 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative KORNFIELD of Bangor. 
Cosponsored by Representatives: DAUGHTRY of Brunswick, MacDONALD of Boothbay, 
MASTRACCIO of Sanford, RANKIN of Hiram. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-G, sub-§10-D, as amended by PL 2011, c. 570, §1, is 
further amended to read: 
10-D.    
Sec. 2.  20-A MRSA §2401, sub-§2, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
2.  Authorizer.  "Authorizer" means an entity empowered under this chapter to 
review applications, the Legislature, which shall decide whether to approve or reject 
applications, enter into charter contracts with applicants, oversee and monitor public 
charter schools and decide whether to renew, not renew or revoke charter contracts to 
create or renew public charter schools or virtual public charter schools as recommended 
by the commission. 
Sec. 3.  20-A MRSA §2401, sub-§3, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
3.  Charter contract.  "Charter contract" means a performance-based contract for a 
fixed term between a public charter school and an authorizer the commission that 
describes performance expectations, defines operational responsibilities and outlines the 
autonomy and accountability for each party to the contract. 
Sec. 4.  20-A MRSA §2401, sub-§3-B is enacted to read: 
3-B.  Commission.  "Commission" means the Maine Charter School Commission 
established under Title 5, section 12004-G, subsection 10-D. 
Sec. 5.  20-A MRSA §2401, sub-§6, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
6.  Governing board.  "Governing board" means the independent board of a public 
charter school that is party to the charter contract with the authorizer the commission and 
whose members have been elected or selected pursuant to the school's application. 
Sec. 6.  20-A MRSA §2401, sub-§9, ¶¶C and G, as enacted by PL 2011, c. 414, 
§5, are amended to read: 
C.  Is established and operated under the terms of a charter contract between the 
governing board and its authorizer the commission in accordance with this chapter; 
G.  Operates under the oversight of the authorizer commission from which its charter 
contract is granted and in accordance with its charter contract. 
Education 
Maine Charter 
School Commission 
Expenses Only 
20-A MRSA §2405,
sub-§8 §2405-A,
sub-§6
Sec. 7.  20-A MRSA §2402, as enacted by PL 2011, c. 414, §5, is amended to 
read: 
§2402.  Public charter schools authorized 
Charter schools may be established by the Legislature as public schools pursuant to 
this chapter to improve pupil learning by creating more high-quality schools with high 
standards for pupil performance; to close achievement gaps between high-performing and 
low-performing groups of public school students; to increase high-quality educational 
opportunities within the public education system; to provide alternative learning 
environments for students who are not thriving in traditional school settings; to create 
new professional opportunities for teachers and other school personnel; to encourage the 
use of different, high-quality models of teaching and other aspects of schooling; and to 
provide students, parents, community members and local entities with expanded 
opportunities for involvement in the public education system. The Legislature shall 
develop a strategic vision for public charter schools and communicate this strategic vision 
to the Maine Charter School Commission, which is charged with recommending 
establishment or renewal of public charter schools to the Legislature. 
Sec. 8.  20-A MRSA §2403, sub-§1, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
1.  Information and technical assistance.  The department shall disseminate 
information on how to form and operate a public charter school and on how to enroll in a 
public charter school once the school is created.  The department may provide assistance 
and guidance to authorizers the commission in developing effective authorization and 
oversight procedures. 
Sec. 9.  20-A MRSA §2403, sub-§3, ¶¶A and B, as enacted by PL 2011, c. 414, 
§5, are amended to read: 
A.  Providing information and technical assistance to potential and actual public 
charter school organizers and authorizers the commission; and 
B.  Allocating funds to support the work of potential and actual authorizers the 
commission. 
Sec. 10.  20-A MRSA §2403, sub-§4, as enacted by PL 2011, c. 414, §5, is 
repealed. 
Sec. 11.  20-A MRSA §2403, sub-§5, as amended by PL 2011, c. 570, §3, is 
repealed. 
Sec. 12.  20-A MRSA §2403, sub-§7, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
7.  Reports.  Four years after public charter schools have been in operation, the 
commissioner shall issue to the Governor, the Legislature and the public a report on the 
State's public charter school program, drawing from the annual reports submitted by 
every authorizer pursuant to section 2405, subsection 4 the commission pursuant to 
section 2405-A, as well as any additional relevant data compiled by the commissioner up 
to the school year ending in the preceding calendar year.  The report must include an 
assessment of the public charter school program's successes, challenges and areas for 
improvement in meeting the purposes of this chapter and any suggested changes in state 
law or policy necessary to strengthen the public charter school program.  The 
commissioner shall issue a similar report after 8 years of operation of public charter 
schools. 
Sec. 13.  20-A MRSA §2404, sub-§2, ¶¶D and E, as enacted by PL 2011, c. 
414, §5, are amended to read: 
D.  For a school administrative unit with an enrollment of 500 or fewer students, a 
public charter school, unless authorized by a school administrative unit, may not 
enroll more than 5% of a school administrative unit's noncharter public school 
students per grade level in each of the first 3 years of the public charter school's 
operation. 
E.  For a school administrative unit with an enrollment of more than 500 students, a 
public charter school, unless authorized by a school administrative unit, may not 
enroll more than 10% of a school administrative unit's noncharter public school 
students per grade level in each of the first 3 years of the public charter school's 
operation. 
Sec. 14.  20-A MRSA §2405, as amended by PL 2011, c. 570, §§4 to 8, is 
repealed. 
Sec. 15.  20-A MRSA §2405-A is enacted to read: 
§2405-A.  Maine Charter School Commission 
1.  Powers and duties.  The Maine Charter School Commission, as established in 
Title 5, section 12004-G, subsection 10-D, is empowered under this chapter to review 
applications to establish or renew public charter schools or virtual public charter schools 
in the State.  The commission may recommend that the Legislature authorize public 
charter schools or virtual public charter schools.  The commission shall enter into charter 
contracts with authorized charter schools, oversee and monitor public charter schools and 
decide whether to recommend to the authorizer that a charter school's contract be 
renewed or not renewed or revoked.  The commission also may: 
A.  Solicit, invite and evaluate applications from organizers of proposed public 
charter schools; 
B.  Recommend approval of applications that meet identified educational needs; 
C.  Recommend denial of applications that do not meet identified educational needs; 
D.  Create a framework to guide the development of charter contracts; 
E.  Negotiate and execute sound charter contracts with each approved public charter 
school; 
F.  Monitor the performance of public charter schools and their compliance with their 
contracts; and 
G.  Determine whether each charter contract merits renewal or revocation. 
2.  Principles and professional standards.  The commission shall develop and 
maintain policies and practices consistent with nationally recognized principles and 
professional standards for authorizing public charter schools, including standards relating 
to: 
A.  Organizational capacity and infrastructure; 
B.  Soliciting and evaluating applications; 
C.  Performance contracting; 
D.  Ongoing public charter school oversight and evaluation; and 
E.  Charter renewal decision making. 
3.  Reporting and evaluation.  The commission shall submit to the commissioner an 
annual report within 60 days of the end of each school fiscal year summarizing: 
A.  The authorizer's strategic vision for chartering and progress toward achieving that 
vision; 
B.  The performance of all operating public charter schools overseen by the 
commission, according to the performance measures and expectations specified in the 
charter contracts; 
C.  The status of the authorizer's public charter school portfolio of approved charter 
applications, identifying all public charter schools within that portfolio as: 
(1)  Approved, but not yet open; 
(2)  Operating; 
(3)  Renewed; 
(4)  Transferred; 
(5)  Terminated; 
(6)  Closed; or 
(7)  Never opened; 
D.  The oversight and services provided by the commission to the public charter 
schools under the commission's purview; and 
E.  The total amount of funds collected from each public charter school and the costs 
incurred by the commission to oversee each public charter school. 
4.  Funding of oversight.  To cover costs for overseeing public charter schools in 
accordance with this chapter, the commission may: 
A.  Expend its own resources, seek grant funds and establish partnerships to support 
its staff and activities; and 
B.  Charge up to 3% of annual per-pupil allocations received by each authorized 
public charter school.  These funds must be used to cover the costs for the 
commission to oversee public charter schools and virtual public charter schools. 
5.  Conflicts of interest.  An employee, trustee, agent or representative of the 
commission may not simultaneously serve as an employee, trustee, agent, representative, 
vendor or contractor of a public charter school. 
6.  Commission membership.  The commission comprises 7 members appointed by 
the state board for 3-year terms.  The commission shall elect a chair and such other 
officers as may be necessary to conduct its business.  Four members constitute a quorum. 
A.  Three commission members must be members of the state board and appointed by 
a majority vote of the state board, and those 3 members shall nominate the other 4 
members, who must be appointed by a majority vote of the state board. 
B.  Commission members must have diverse professional experience in education, 
social services, youth training, business startup and administration, accounting and 
finance, strategic planning and nonprofit governance.  The following provisions 
apply to the appointment of the 4 members nominated and appointed by state board 
members pursuant to paragraph A: 
(1)  In appointing members to the commission, the state board shall give proper 
consideration to candidates with experience in a noncharter public school in the 
State in one of the following positions:  school board member, superintendent, 
teacher and special education director; 
(2)  The state board shall ensure that the joint standing committee of the 
Legislature having jurisdiction over education matters has an opportunity to meet 
and interview the candidate or candidates nominated for the commission; 
(3)  Within 10 days of meeting with the candidate or candidates, the joint 
standing committee of the Legislature having jurisdiction over education matters 
shall deliver to the state board its written appraisal of the strengths and 
weaknesses of the candidate or candidates; and 
(4)  The state board shall consider the appraisal of the joint standing committee of 
the Legislature having jurisdiction over education matters prior to appointing a 
candidate or candidates to the commission. 
C.  A commission member may not serve more than 3 consecutive terms, but may 
serve again after not serving on the commission for at least one term. 
D.  A commission member may not receive compensation, but may be reimbursed for 
expenses. 
E.  A commission member who is a member of the state board serves on the 
commission only during that person's membership on the state board.  Upon 
expiration of that person's state board membership, the position on the commission 
becomes vacant and must be filled in the manner provided for filling vacancies on the 
state board.  The term of a member who is appointed by the state board and reviewed 
by the joint standing committee of the Legislature having jurisdiction over education 
matters ends on June 30th of the final year of the member's term. 
F.  A vacancy on the commission must be filled in the same manner as the position in 
which the vacancy occurs is regularly filled, including, if applicable, a review by the 
joint standing committee of the Legislature having jurisdiction over education 
matters.  A vacancy is filled for the remainder of the unexpired term.  If the person 
serves more than 1 1/2 years of an unexpired term, that service counts as one term for 
purposes of the limitation set forth in paragraph C. 
G.  A commission member may be removed for failure to perform the duties of 
office, as specified in commission rules, by a majority vote of the state board. 
7.  Rules.  The commission shall adopt rules for the organization and operation of the 
commission and to develop, implement and refine its procedures for recommending the 
approval or denial by the authorizer of public charter schools.  Rules adopted by the 
commission pursuant to this subsection before June 30, 2014 are routine technical rules 
pursuant to Title 5, chapter 375, subchapter 2-A.  Beginning June 30, 2014, rules adopted 
by the commission pursuant to this subsection are major substantive rules pursuant to 
Title 5, chapter 375, subchapter 2-A. 
8.  Staff and funding.  The commission, in keeping with its responsibilities to review 
and recommend to the authorizer approval of public charter schools and virtual public 
charter schools, shall: 
A.  Engage professional and administrative staff, separate from the department; 
B.  Convene stakeholder groups and engage experts; and 
C.  Seek and receive state, federal and private funds. 
9.  Online and on-site instruction.  The commission may recommend authorization 
of a public charter school within a specific jurisdiction that integrates online and on-site 
instruction. 
10.  Transition period.  The public charter school program set out in this chapter 
must begin with a 10-year transition period, beginning on the effective date of this 
chapter.  During the transition period, the commissioner shall register the charters 
approved by the authorizer in chronological order by date of approval under this chapter.  
During the transition period, only 10 public charter schools may be approved. A charter 
contract must be issued for each of those schools by the commission. 
This subsection is repealed July 1, 2022. 
Sec. 16.  20-A MRSA §2406, sub-§1, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
1.  Issuance.  To invite, solicit, encourage and guide the development of high-quality 
public charter school applications, an authorizer the commission shall issue and broadly 
publicize requests for proposals.  The content and dissemination of the requests for 
proposals must be consistent with the purposes and requirements of this chapter. 
Sec. 17.  20-A MRSA §2406, sub-§2, as amended by PL 2011, c. 570, §9, is 
further amended to read: 
2.  Content.  An authorizer's The commission's request for proposals must contain 
information outlined in this subsection. 
A.  A request for proposals must present the authorizer's strategic vision for and 
interests in chartering. 
B.  Authorizers The commission may give priority to proposals that expand 
opportunities for children who are not realizing their full potential, who may be 
disaffected or disengaged in their current education situations and who may be at risk 
of failure academically, socially, economically or personally.  Authorizers The 
commission may encourage proposals that include a specific academic approach or 
theme to address the diverse educational needs of communities in the State.  A 
request for proposals must include a clear statement of how the proposal relates to 
any priority or preference the authorizer wishes to grant to particular types of 
applications.  Notwithstanding an authorizer’s statement of any priority or preference, 
an authorizer The commission shall consider each application submitted to it based 
on the merits of that particular application. 
C.  A request for proposals must include or otherwise direct applicants to the 
performance framework that the authorizer commission has developed for public 
charter school oversight and evaluation in accordance with section 2409. 
D.  A request for proposals must include the criteria and standards that will guide the 
authorizer's commission's decision to approve or deny recommend approval or denial 
of an application. 
E.  A request for proposals must state clear, appropriately detailed questions as well 
as guidelines concerning the format and content essential for applicants to 
demonstrate the capacities necessary to establish and operate a successful public 
charter school. 
F.  A request for proposals must require applications to provide or describe 
thoroughly, at a minimum, all of the following essential elements of the proposed 
public charter school plan: 
(1) The proposed public charter school's vision, including: 
(a)  An executive summary; 
(b)  The mission and vision of the proposed public charter school, including 
identification of the targeted student population and the community the 
school hopes to serve; and 
(c) Evidence of need and community support for the proposed public charter 
school, including information on discussions with the school administrative 
unit where the public charter school will be located concerning recruitment 
and operations of the public charter school and possible collaboration with 
nearby school administrative units; 
(2) The proposed public charter school's governance plan, including: 
(a) Background information on proposed board members and any assurances 
or certifications required by the authorizer commission; 
(b) Proposed governing bylaws; 
(c) An organization chart that clearly presents the school's organizational 
structure, including lines of authority and reporting between the governing 
board, staff and any related bodies such as advisory bodies or parent and 
teacher councils, and any external organizations that will play a role in 
managing the school; 
(d) A clear description of the roles and responsibilities for the governing 
board, the school's leadership and management team and any other entities 
shown on the organization chart; 
(e) Identification of the proposed founding governing board members and, if 
identified, the proposed school leader or leaders; and 
(f) Background information on the school's leadership and management team, 
if identified; 
(3) The proposed public charter school's plan of organization, including: 
(a)  The location or geographic area of the school and the proposed 
catchment area of the school, which may not be designed to exclude areas 
with high rates of poverty, English language learners, at-risk students or 
students with disabilities; 
(b)  The grades to be served each year for the full term of the charter; 
(c)  Minimum, planned and maximum enrollment per grade per year for the 
term of the charter; 
(d)  The school's proposed calendar and sample daily schedule; 
(e)  Plans and timelines for student recruitment and enrollment, including 
lottery procedures; 
(f)  Explanations of any partnerships or contractual relationships central to 
the school's operations or mission; 
(g)  The school's proposals for providing transportation, food service and 
other significant operational or ancillary services; 
(h)  A facilities plan, including backup or contingency plans if appropriate; 
(i)  A detailed school start-up plan, identifying tasks, timelines and 
responsible individuals; and 
(j)  A closure protocol, outlining orderly plans and timelines for transitioning 
students and student records to new schools and for appropriately disposing 
of school funds, property and assets in the event of school closure; 
(4) The proposed public charter school's finances, including: 
(a) A description of the school's financial plan and policies, including 
financial controls and audit requirements; 
(b) Start-up and 3-year budgets with clearly stated assumptions; 
(c) Start-up and first-year cash-flow projections with clearly stated 
assumptions; 
(d) Evidence of anticipated fund-raising contributions, if claimed in the 
application; and 
(e) A description of the insurance coverage the school proposes to obtain; 
(5) The proposed public charter school's student policy, including: 
(a)  The school's plans for identifying and successfully serving students with 
the wide range of learning needs and styles typically found in noncharter 
public schools of the sending area; 
(b) The school's plans for compliance with applicable laws, rules and 
regulations; and 
(c)  The school's student discipline plans and policies, including those for 
special education students; 
(6) The proposed public charter school's academic program, including: 
(a) A description of the academic program aligned with the statewide system 
of learning results under section 6209; 
(b) A description of the school's instructional design, including the type of 
learning environment, such as classroom-based or independent study, class 
size and structure, curriculum overview, teaching methods and research 
basis; 
(c) The school's plan for using internal and external assessments to measure 
and report student progress on the measures and metrics of the performance 
framework developed by the authorizer commission in accordance with 
section 2409; and 
(d) A description of cocurricular or extracurricular programs and how they 
will be funded and delivered; and  
(7) The proposed public charter school's staff policy, including: 
(a)  A staffing chart for the school's first year and a staffing plan for the term 
of the charter; 
(b)  Plans for recruiting and developing school leadership and staff; 
(c)  The school's leadership and teacher employment policies, including 
performance evaluation plans; and 
(d)  Opportunities and expectations for parent involvement. 
G.  With respect to the conversion of an existing noncharter public school to public 
charter school status, in addition to the other requirements of this subsection, the 
request for proposals must require applicants to demonstrate support for the proposed 
conversion public charter school by submitting 2 petitions, one signed by a majority 
of teachers in the existing noncharter public school and the other signed by a majority 
of parents of students in the existing noncharter public school. 
If the school to be converted is the only public school option for students in the 
school administrative unit, the request for proposals must additionally require that the 
conversion be approved by voters in that school administrative unit. 
H.  With respect to a proposed public charter school that intends to contract with an 
education service provider for a limited scope of education or management services, 
in addition to the other requirements of this subsection, the request for proposals must 
require applicants to: 
(1)  Explain how and why the education service provider was selected; 
(2)  Provide evidence of the education service provider's success in serving 
student populations similar to the targeted population, including demonstrated 
academic achievement as well as successful management of nonacademic school 
functions if applicable; 
(3)  Provide information on the proposed duration of the service contract; roles 
and responsibilities; scope of services and resources to be provided by the 
education service provider; performance evaluation measures and timelines; 
compensation structure, including clear identification of all fees to be paid to the 
education service provider; methods of contract oversight and enforcement; 
investment disclosure; and conditions for renewal and termination of the contract; 
(4)  Provide a draft of the proposed service contract; 
(5)  Explain the relationship between the governing board, the school's leadership 
and management team and the education service provider, specifying how the 
governing board and the school's leadership and management team will monitor 
and evaluate the performance of the education service provider, the internal 
controls that will guide the relationship and how the governing board and the 
school's leadership and management team will ensure fulfillment of performance 
expectations; 
(6)  Provide a statement of assurance that the governing board and the school's 
leadership and management team is legally and operationally independent from 
the education service provider; and 
(7)  Disclose and explain any existing or potential conflicts of interest between 
the governing board, the school's leadership and management team and the 
education service provider or any affiliated business entities. 
Nothing in this paragraph prohibits a virtual public charter school from entering into 
a contract with an education service provider for education design, implementation or 
comprehensive management of the virtual public charter school program. 
Sec. 18.  20-A MRSA §2407, as enacted by PL 2011, c. 414, §5, is amended to 
read: 
§2407.  Charter applications 
1.  Application.  An applicant for approval as a public charter school must submit an 
application as set out in this section.  An applicant may submit an application only to an 
authorizer that when the commission has issued a request for proposals in accordance 
with section 2406.  An applicant may submit a proposal for a particular public charter 
school to no more than one authorizer at a time.  The purposes of the application are to 
present the proposed public charter school's academic and operational vision and plans, 
demonstrate the applicant's capacities to execute the proposed vision and plans and 
provide the authorizer commission a clear basis for assessing the applicant's plans and 
capacities. 
2.  Conversion of existing noncharter public schools.  A noncharter public school 
or public school program may apply to its local school board to become a conversion 
public charter school. 
3.  Start-up schools.  An application for a start-up public charter school may be 
submitted by a nonprofit, nonreligious organization.  If the organizers of a start-up public 
charter school have been affiliated with a previous school or education program, they 
must form a separate nonprofit organization in this State to be eligible for state and 
federal grants. 
4.  Application review process.  In reviewing and evaluating applications, 
authorizers the commission shall employ procedures, practices, criteria and standards 
consistent with nationally recognized principles and standards for authorizing high-
quality public charter schools. 
A.  The application review process must include, at a minimum, substantive 
participation by a team of reviewers who collectively possess appropriate academic 
expertise and operational experience with public charter schools. 
B.  The application review process must include a thorough evaluation of each 
application, an in-person interview with the applicant and a public hearing. 
C.  In deciding whether to approve recommend approval of applications, authorizers 
the commission shall: 
(1)  Grant Recommend granting charters only to applicants that have 
demonstrated competence in each element of the authorizer's commission's 
published approval criteria and are likely to open and operate a successful public 
charter school; 
(2)  Base decisions on documented evidence collected through the application 
review process; and 
(3)  Follow charter-granting policies and practices that are transparent, based on 
merit and avoid conflicts of interest or any appearance of a conflict of interest. 
5.  Approval; denial.  No later than 90 days after the filing of an application, an 
authorizer the commission shall decide whether to approve or deny recommend approval 
or denial of the application.  The authorizer commission shall make and announce all 
charter approval or denial decisions recommendations in a meeting open to the public. 
The commission shall submit its recommendations to the Legislature within 10 business 
days of the announcement under this subsection. 
A.  An approval decision recommendation may include, if appropriate, reasonable 
conditions that the applicant must meet before a charter contract may be executed. 
B.  If the authorizer denies commission recommends rejection of an application, the 
authorizer commission shall clearly state, for public record, its reasons for 
recommending denial.  An If the authorizer adopts the commission's recommendation 
for denial, an applicant may subsequently reapply to that authorizer or apply to any 
other authorizer in the State the commission. 
C.  Within 10 days of taking action to approve or deny recommend approval or denial 
of an application, the authorizer commission shall report to the commissioner the 
action it has taken recommendation it has made.  The authorizer commission shall 
provide a copy of the report to the applicant at the same time that the report is 
submitted to the commissioner. 
D.  The commissioner shall register the charters approved by all chartering authorities 
the authorizer in chronological order by date of approval. 
E.  An approved application may not serve as a school's charter contract nor may it be 
incorporated by reference into the charter contract. 
F.  A The commission shall provide to the applicant in writing the decision on an 
application must be conveyed in writing to the applicant by the authorizer.  A 
decision may grant approval or conditional approval, request resubmission or reject 
the application and must include written reasons for the decisions. 
Sec. 19.  20-A MRSA §2408, sub-§1, as amended by PL 2011, c. 570, §10, is 
further amended to read: 
1.  Charter contracts.  When an application is approved by the authorizer, a charter 
contract must be executed in accordance with this section. 
A.  After approval of an application and no later than 60 days prior to the opening 
date of the public charter school, the authorizer commission and the governing board 
shall execute a charter contract that sets forth: 
(1)  Performance provisions describing the academic and operational 
performance expectations and measures by which the public charter school will 
be judged;  
(2)  Administrative provisions articulating the administrative relationship 
between the authorizer commission and the public charter school, including each 
party's rights and duties; and 
(3)  A description of the standards and processes under which the authorizer 
commission may pursue revocation of the charter contract. 
B.  The performance provisions set forth in a charter contract under paragraph A must 
include but need not be limited to applicable federal and state accountability 
requirements. 
C.  The performance provisions set forth in a charter contract under paragraph A may 
be refined or amended by mutual agreement of the parties to the charter contract after 
the public charter school is operating and has collected baseline achievement data for 
its enrolled students. 
D.  A charter contract must be signed by a designated representative of the authorizer 
commission and of the public charter school's governing board. 
E.  A public charter school may not commence operations without a charter contract 
executed in accordance with this section and approved in a meeting open to the 
public. 
Sec. 20.  20-A MRSA §2409, sub-§§1 and 3, as enacted by PL 2011, c. 414, §5, 
are amended to read: 
1.  Performance framework.  The performance provisions of a charter contract must 
be based on a performance framework developed by the authorizer commission that sets 
forth the academic and operational performance indicators that will guide the authorizer's 
commission's evaluations of each public charter school. 
3.  Annual performance targets.  Annual performance targets must be set by a 
public charter school in conjunction with its authorizer the commission and must be 
designed to help each school meet applicable federal and state requirements and 
authorizer expectations. 
Sec. 21.  20-A MRSA §2410, as amended by PL 2011, c. 570, §11, is further 
amended to read: 
§2410.  Oversight 
1.  Data collection; monitoring.  For each public charter school it oversees, the 
authorizer commission is responsible for collecting, analyzing and reporting all data from 
state assessments in accordance with the performance framework developed under 
section 2409, subsection 1.  An authorizer The commission shall monitor the performance 
and legal compliance of the public charter schools it oversees, including collecting and 
analyzing all data to support ongoing evaluation according to the charter contract. 
2.  Notification of unsatisfactory performance or compliance.  In the event that a 
public charter school's performance or legal compliance appears unsatisfactory, the 
authorizer commission shall promptly provide written notice to the public charter school 
of perceived problems and provide reasonable opportunity for the school to remedy the 
problems. 
Sec. 22.  20-A MRSA §2411, as amended by PL 2011, c. 570, §12, is further 
amended to read: 
§2411.  Charter term and renewal 
1.  Initial charter term.  The term for an initial charter may not commence before 
July 1, 2012.  An initial charter must be granted for a term of 5 operating years.  The 
charter term commences on the public charter school's first day of operation.  An 
approved public charter school may delay its opening for one school year in order to plan 
and prepare for the school's opening.  If the public charter school requires an opening 
delay of more than one school year, the public charter school must request an extension 
from its authorizer the commission.  The authorizer commission may grant or deny the 
extension depending on the particular public charter school's circumstances. 
2.  Charter renewal term.  A charter may be renewed for successive terms of 5 
years, although an the commission with the express approval of the authorizer may grant 
a renewal for a term not to exceed 15 years based on the performance, demonstrated 
capacities and particular circumstances of each public charter school.  If a charter is 
renewed for more than 5 years, the authorizer commission shall still issue a public charter 
school performance report every 5 years as called for by subsection 3.  An The authorizer 
may grant renewal with specific conditions for necessary improvements to a public 
charter school. 
3.  Commission renewal responsibilities.  No later than June 30th of a public 
charter school's 4th year of operation under each 5-year term of a charter contract, the 
authorizer commission shall issue a public charter school performance report.  If the 
charter of the public charter school is expiring, the authorizer commission shall offer 
charter renewal application guidance to the school. 
A.  The performance report required in this subsection must summarize the public 
charter school's performance record to date, based on the data required by this chapter 
and the charter contract, and must provide notice of any weaknesses or concerns 
perceived by the authorizer commission concerning the school that may jeopardize its 
position in seeking renewal if not timely rectified.  The school must be given the 
opportunity to respond to the performance report and submit any corrections or 
clarifications for the report. 
B.  The renewal application guidance required by this subsection must include or 
refer explicitly to the criteria and standards that will guide the authorizer's 
commission's renewal decisions recommendations, which must be based on the 
performance framework under section 2409 set forth in the charter contract and 
consistent with this chapter. The renewal application guidance must, at a minimum, 
require and provide an opportunity for the public charter school to: 
(1)  Present additional evidence, beyond the data contained in the performance 
report, supporting its case for charter renewal; 
(2)  Describe improvements undertaken or planned for the school; and 
(3)  Detail the school's plans for the next charter term. 
4.  Renewal application.  No later than September 30th of a public charter school's 
5th year of operation under a term of a charter contract or September 30th of a public 
charter school's final authorized year of operation under a term of a charter contract, the 
governing board of a public charter school seeking renewal shall submit a renewal 
application to the authorizer commission pursuant to any renewal application guidance 
offered by the authorizer commission under subsection 3. 
5.  Renewal decision.  An authorizer The commission shall rule by resolution make a 
recommendation on a renewal application under this section no later than 45 days after 
the filing of the renewal application. In making charter renewal decisions 
recommendations, every authorizer the commission shall: 
A.  Ground its decisions recommendations in evidence of the public charter school's 
performance over the term of the charter in accordance with the performance 
framework under section 2409 set forth in the charter contract; 
B.  Ensure that data used in making renewal decisions are available to the public 
charter school and the public; and 
C.  Provide a public report summarizing the evidence basis for each decision. 
recommendation; and 
D.  Report its recommendations to the Executive Director of the Legislative Council 
along with proposed legislation, if necessary, to effect the recommendations.  The 
report to the Executive Director of the Legislative Council must be made no later 
than 10 days after the commission makes its recommendation on the renewal 
application. 
6.  Charter revocation and nonrenewal.  A decision by an the authorizer to revoke 
or not to renew the charter of a public charter school must be made in accordance with 
this subsection. 
A.  A charter may be revoked at any time or not renewed if the authorizer determines 
that the public charter school failed to comply with the provisions of this chapter or: 
(1)  Committed a material violation of any of the terms, conditions, standards or 
procedures required under this chapter or the charter contract; 
(2)  Failed to meet or make sufficient progress toward the performance 
expectations set forth in the charter contract; 
(3)  Failed to meet generally accepted standards of fiscal management; or 
(4)  Violated any provision of law from which the school was not exempted. 
B.  If an authorizer revokes or does not renew a charter, the authorizer shall clearly 
state, in a resolution of its governing entity, the reasons for the revocation or 
nonrenewal. 
C.  The authorizer commission shall include in the charter contract a description of 
the standards and processes under which the authorizer commission may pursue 
revocation of the charter contract.  The processes must comply with section 2410, 
subsection 2 and provide an opportunity for the public charter school to be heard 
prior to a decision on revocation. 
7.  Notification to commissioner.  Within 10 days of taking action to renew, not 
renew or revoke a charter under this section, the authorizer shall report to the 
commissioner the action taken and shall provide a copy of the report to the public charter 
school at the same time that the report is submitted to the commissioner.  The report must 
include a copy of the governing entity of the authorizer's resolution setting forth the 
action taken and reasons for the decision. 
8.  School closure and dissolution.  If a public charter school closes for any reason: 
A.  The authorizer commission shall oversee and work with the closing public charter 
school to ensure timely notification to parents, orderly transition of students and 
student records to new schools and proper disposition of school funds, property and 
assets in accordance with the requirements of this chapter; and 
B.  The assets of the public charter school must be distributed first to satisfy 
outstanding payroll obligations for employees of the public charter school and then to 
creditors of the public charter school.  Any remaining funds must be paid to the 
Treasurer of State to the credit of the General Fund.  If the assets of the public charter 
school are insufficient to pay all parties to whom the public charter school owes 
compensation, the prioritization of the distribution of assets may be determined by 
decree of a court of law. 
9.  Charter transfers.  A charter contract and its oversight may not be transferred 
from one authorizer to another before the expiration of the charter contract term except by 
mutual agreement of all parties. 
Sec. 23.  20-A MRSA §2412, sub-§1, ¶B, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
B.  A charter contract may include one or more schools, to the extent approved by the 
authorizer commission and consistent with applicable law.  Each public charter 
school that is part of a charter contract must be separate and distinct from any others. 
Sec. 24.  20-A MRSA §2412, sub-§2, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
2.  Local educational agency status.  The following provisions govern the status of 
public charter schools as local educational agencies. 
A.  In the case of a public charter school authorized requested by a local school 
board: 
(1)  The school administrative unit in which the public charter school is located 
remains the local educational agency and the public charter school is a school 
within that local educational agency; 
(2)  The public charter school receives services, resources and support in the 
same manner as other school administrative unit noncharter public schools, 
except that the public charter school is treated as a local educational agency for 
purposes of applying for competitive federal grants; and 
(3)  The school administrative unit retains responsibility for special education and 
serves students in public charter schools in a manner consistent with local 
educational agency obligations under applicable federal, state and local law and 
the charter contract. 
B.  In the case of a public charter school authorized by the commission other than one 
requested under paragraph A: 
(1)  The public charter school functions for all purposes as a local educational 
agency and is a school administrative unit independent of the school 
administrative unit in which the school is located.  School administrative unit 
status does not preclude a public charter school from developing links to local 
school districts for services, resources and programs, by mutual agreement or by 
formal contract; 
(2)  To the extent permitted by federal, state or local laws, the public charter 
school is responsible for meeting the requirements of local educational agencies 
under applicable federal, state and local laws, including those relating to special 
education, receipt of funds and compliance with funding requirements; and 
(3)  To the extent permitted by federal, state or local laws, the public charter 
school has primary responsibility for special education at the school, including 
identification and provision of service, and is responsible for meeting the needs 
of enrolled students with disabilities. 
Sec. 25.  20-A MRSA §2412, sub-§3, ¶E, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
E.  Incur debt in reasonable anticipation of the receipt of public or private funds, 
except that an the authorizer is not responsible for any debt incurred by the public 
charter school; 
Sec. 26.  20-A MRSA §2412, sub-§4, ¶E, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
E.  The powers, obligations and responsibilities set forth in a charter contract may not 
be delegated or assigned by either party, except as provided in section 2411, 
subsection 9. 
Sec. 27.  20-A MRSA §2412, sub-§5, ¶B, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
B.  Public charter schools are subject to the same student assessment and 
accountability requirements applicable to other noncharter public schools in the State, 
but nothing in this chapter precludes a public charter school from establishing 
additional student assessment measures that go beyond state requirements if the 
school's authorizer commission approves such measures. 
Sec. 28.  20-A MRSA §2412-A, sub-§1, as enacted by PL 2011, c. 570, §18, is 
amended to read: 
1.  External audit.  A public charter school shall adhere to generally accepted 
accounting principles and shall annually engage an external auditor to do an independent 
audit of the public charter school's finances.  The public charter school shall submit the 
audit to its authorizer the commission and to the department. The audit must include the 
following:  
A.  An accounting of all revenues and expenditures; 
B.  A determination of whether proper budgetary controls are in place; 
C.  A determination of whether the annual financial data submitted to the authorizer 
commission and to the department is correct; 
D.  An audit of any federal programs in accordance with applicable federal law; and 
E.  Any other information that the commissioner requires. 
Sec. 29.  20-A MRSA §2413, sub-§2, ¶A, as amended by PL 2011, c. 679, §2, is 
further amended to read: 
A.  For each public charter school student, the school administrative unit in which the 
student resides must forward the per-pupil allocation to the public charter school 
attended by the student as follows. 
(1)  The per-pupil allocation amount is the EPS per-pupil rate for the school 
administrative unit in which the student resides, as calculated pursuant to section 
15676, based on the student’s grade level and adjusted as appropriate for 
economic disadvantage and limited English proficiency pursuant to section 
15675, subsections 1 and 2.  Debt service and capital outlays may not be included 
in the calculation of these per-pupil allocations.  The department shall adopt rules 
governing how to calculate these per-pupil allocations, including those for career 
and technical education programs, targeted funds for assessment technology and 
kindergarten to grade 2 programs. 
(2)  For students attending public charter schools, the school administrative unit 
of residence shall forward the per-pupil allocations described in subparagraph (1) 
directly to the public charter school attended.  These per-pupil allocations must 
be forwarded to each public charter school on a quarterly basis, as follows.  For 
each fiscal year, allocations must be made in quarterly payments on September 
1st, December 1st, March 1st and June 1st.  The September payment must be 
based on the number of students enrolled or anticipated to be enrolled in the 
public charter school at the opening of school for that school year, which may not 
exceed the maximum enrollment approved in the charter contract for that year 
unless a waiver is obtained from the authorizer commission.  In February of the 
school year, if the number of students is higher or lower than the number of 
students at the beginning of the school year, adjustments must be made in the 
June payment, with 50% of the annual per-pupil allocation added for additional 
students or subtracted if the total number of students is lower. 
(3)  For transportation expenses, the average per-pupil expense in each school 
administrative unit of residence must be calculated and an amount equal to a 
proportion, up to but not more than 100%, of that per-pupil allocation amount 
must be forwarded to the public charter school attended on the same basis as the 
per-pupil allocations for operating funds.  The percentage of that per-pupil 
expense must be determined by the authorizer of the public charter school 
commission and must be based on the cost of transportation services provided by 
the public charter school to the student. 
(4)  The department shall pay to the public charter school any additional 
allocation assigned to the public charter school for gifted and talented students 
pursuant to section 15681-A, subsection 5 in the year in which the allocation is 
assigned. 
A school administrative unit is not required to send funds to a public charter school 
for a student enrolled in the public charter school's preschool or prekindergarten 
program if the school administrative unit of the student's residence does not offer that 
program to its own residents. 
Sec. 30.  20-A MRSA §2413, sub-§2, ¶B, as amended by PL 2011, c. 570, §19, 
is further amended to read: 
B.  The following provisions govern special education funding. 
(1)  For each enrolled special education pupil, a public charter school must 
receive the average additional allocation calculated by the department under 
section 15681-A, subsection 2 for each school administrative unit for its special 
education students.  These allocations must be paid on the same basis as the per-
pupil allocations for operating funds. 
(2)  The school administrative unit of residence shall pay directly to the public 
charter school any federal or state aid attributable to a student with a disability 
attending the public charter school in proportion to the level of services for the 
student with a disability that the public charter school provides directly or 
indirectly. 
(3)  The department shall pay to the public charter school any additional 
allocation assigned to the public charter school because of a high-cost in-district 
placement in accordance with section 15681-A, subsection 2, paragraph B in the 
year in which the allocation is assigned. 
(4)  The school administrative unit of residence shall pay to the public charter 
school any additional allocation assigned to the unit because of a high-cost out-
of-district placement in accordance with section 15681-A, subsection 2, 
paragraph C in the year in which the allocation is assigned to the school 
administrative unit. 
(5)  If the public charter school in which the student is enrolled was authorized 
requested by a local school board or a collaborative of local school boards, the 
funds under this paragraph must be paid to the local school board that authorized 
the public charter school or to the designated school board of the collaborative, 
rather than directly to the public charter school.  The local school board or boards 
that authorized the charter school are responsible for ensuring that special 
education services are provided to students in that school, pursuant to section 
2412, subsection 2, paragraph A. 
Sec. 31.  20-A MRSA §2413, sub-§2, ¶C, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
C.  Except as otherwise provided in this chapter, the State shall send applicable 
federal funds directly to public charter schools attended by eligible students.  Public 
charter schools with students eligible for funds under Title I of the federal Elementary 
and Secondary Education Act of 1965, 20 United States Code, Section 6301 et seq. 
must receive and use these funds in accordance with federal and state law.  During 
the first year of operation, a public charter school must receive Title I funds on the 
basis of an estimated enrollment of eligible students, as agreed with its the authorizer. 
Sec. 32.  20-A MRSA §2413, sub-§2, ¶G, as enacted by PL 2011, c. 414, §5, is 
amended to read: 
G.  Any money received by a public charter school from any source and remaining in 
the school's accounts at the end of any budget year remains in the school's accounts 
for use by the school during subsequent budget years and may not revert to the 
authorizer commission or to the State. 
Sec. 33.  Transition.  A public charter school or virtual public charter school that 
has been authorized prior to the effective date of this Act is subject to the provisions of its 
original charter and is not subject to the provisions of this Act until the expiration of its 
original charter.  A public charter school or virtual public charter school applying for 
renewal of its charter granted prior to the effective date of this Act is subject to the 
provisions of this Act, particularly as they relate to charter renewal. 
SUMMARY 
This bill proposes to change the process by which public charter schools and virtual 
public charter schools are authorized.  The bill designates the Legislature as the sole 
authorizer of public charter schools and virtual public charter schools in the State.  It 
amends the duties of the Maine Charter School Commission to include recommending to 
the Legislature approval or denial of public charter school applications.  The bill requires 
the commission to enter into charter contracts with charter schools authorized by the 
Legislature.  It assigns oversight and monitoring of public charter schools to the 
commission and requires the commission to recommend to the authorizer that the contract 
of a public charter school or virtual public charter school be renewed or not renewed.  
The bill also makes the commission responsible for performance compliance.