Archived - Appendix Table B: Statutory Provisions Regarding Exemptions, Liability, and Funding

Appendix Table B. State Charter School (CS) Legislation: Statutory Provisions Regarding Exemptions, Liability, and Funding (February 1998)

State	Exemptions from Laws, Rules, and Regulations	Liability	General Funding
AK	Automatically exempt from local school district's textbook, program, curriculum, scheduling requirements. Other exemptions as agreed in contract. Exempt from state statute regarding election of chief school administrator.		Local school board provides CS with annual budget, not less than amount generated by pupils enrolled in CS, less administrative costs retained by district. Budget is to be used for operating expenses of educational program.
AZ	Automatically exempt from all statutes and rules relating to schools, governing boards and school districts, except as provided in the CS Law and in charter. CS must comply with laws re: civil rights, health, safety, insurance, state assessment, financial audits, special education.	District sponsors are not liable for CS acts or omissions, debts or financial obligations. State sponsors are immune from personal liability and are not liable for CS debts or financial obligations. CS must secure insurance for liability and property loss.	CSs sponsored by district are included in district's budget calculations for base support and transportation support level. Charter describes method by which district funds CS. For CSs sponsored by state board of education or state board for charter schools, the CS calculates a base support and transportation support level and funds are apportioned from state board to state treasurer for disbursement to the counties for CS.
AR	All exemptions from state and local rules, regulations, policies, and procedures and provisions of Education title must be specified in contract.
CA	No specific statement regarding exemptions. CS must comply with laws re: health, safety, civil rights, nondiscrimination and state assessment.	District governing board may require petitioner to include information on potential civil liability effects upon CS and upon the school district.	The Superintendent of Public Instruction makes apportionments from state school fund to each CS. The funds apportioned include the amount for each unit of regular, average daily attendance that is equal to the current fiscal year base revenue limit for school district to which charter petition was submitted. CS shall be deemed a "school district" for specified statutes related to public school funding.
CO	Exemptions from school district policies and state regulations are negotiated and included in contract, after they are approved by the state board of education. CS must comply with laws re: nondiscrimination, health, safety, civil rights, and state board and district content standards.	District and CS agree on their respective legal liability and the applicable insurance coverage.	District includes CS pupils in its pupil enrollment. District negotiates with CS on the services and amount of funding CS will receive from district. Funding shall not be less than 80% of district per pupil operating revenues. CS pays for district-provided services out of this funding. Proportionate share of moneys generated under federal or state categorical programs shall be directed towards CSs serving pupils eligible for such aid.
CT	CS shall be subject to all federal and state laws governing public schools. A CS may file requests to waive provisions of general statutes and regulations within jurisdiction of state board of education.	State or local board of education shall have no liability for acts, omissions, debts or other obligations of CS except as may be provided in an agreement or contract with CS	Local board of student's resident district pays to local CS (a converted public school) the amount specified in charter for each pupil. State pays to state CS (a start-up sponsored by state) an amount equal to 105% of foundation level for each pupil. CS shall receive any federal funds available for education of any pupils attending CS.
DE	Automatically exempt from all provisions of this title (DE education title) and all school district regulations, except as specified in CS law. CS must comply with laws and regulations re: nondiscrimination, state assessments, health and safety.	The approving authority of CS shall have no liability for the actions or inaction of a CS. Proposed charter shall contain an assessment of the CS's potential legal liability.	State pays to CS state funding, including a pro-rated portion of any funds appropriated by state board of education that are intended to be allocated on a pupil, employee or school state share. Pupil's district of residence pays to CS the local cost per pupil, net of transportation expenses.
FL	Automatically exempt from all statutes of FL school code, except as specified in CS law and the charter. Must comply with laws and regulations re: civil rights, health, safety, welfare, anti-discrimination, state assessment and education goals, public records, public meetings, and length of school year.	The charter includes the manner in which CS will be insured, including whether or not CS is required to have liability insurance. For purposes of tort liability, CS shall be governed by specified law.	CS pupils shall be funded as if they are in a basic or special program the same as other public school pupils. Eligible CSs shall be entitled to proportionate share of categorical program funds (including transportation). Administrative fees charged by district may not exceed 5% of funds. Sponsor shall monitor revenues and expenditures of CS
GA	Automatically exempt from state rules, regulations, policies and procedures, and from other provisions, unless otherwise specified in CS law or charter.		CS will be given special preference by the state board in receiving grant funds for alternative schools, classroom technology, school improvement programs, or other grant programs designed to improve local school performance.
HI	Automatically exempt from all applicable state laws except those pertaining to collective bargaining, state procurement laws, religious, racial or sexual bias, health and safety, and statewide pupil performance standards.		CS receives an allocation of state general funds on a per pupil basis equal to the statewide per pupil expenditure for average daily attendance. All federal and other financial support shall be equal to all other public schools.
IL	Automatically exempt from all state laws and regulations in the School Code governing public schools and local school board policies except as provided in the CS law and in the charter. Must comply with laws / regulations re: nondiscrimination, health and safety, criminal background investigations, pupil discipline, tort immunity act, abused/neglected child act, pupil school records act, IL standards and assessments.	District and CS agree on their respective legal liability and applicable insurance coverage.	CS enrollment included in enrollment of pupils' respective districts of residence. CS and local school board agree on services and amount of funding to be provided by local district in contract. Amount of funding shall not be less than 95% or more than 105% of school district's per capita pupil tuition. CS receives proportionate share of moneys generated under federal or state categorical aid programs (if pupils qualify).
KS	CS must identify school district policies, state board of education rules and regulations, and statutory requirements from which waiver is sought in the charter petition.
LA	Automatically exempt from all rules and regulations of state board and local school board and statutory mandates and requirements applicable to public schools and public school officers, except as provided in CS law and in charter. Must comply with laws re: health, safety, civil rights, nondiscrimination, special education and state assessment. [More listed in CS Law]	Charter contains provisions re: liability issues, types and amounts of insurance coverage. Local and state school boards are immune form civil liability damages arising with respect to all activities related to operation of CS except as specified in charter.	CSs sponsored by the local board receive (from the local board) funding for each pupil (based on average daily membership in CS) that is equal to the average current operating expenditure per pupil. Start-up CSs sponsored by the state board of education receive funding in an amount equaling the combined state and local target amount which is funded for district in which CS is located. CSs shall be eligible for any other federal, state, or local funding for which the school or its pupils qualify.
MA	CS shall operate in accordance with its charter and the provisions of law regulating other public schools. Must comply with laws re: health and safety, special needs, state performance standards and assessment.	Employees are considered public employees for purposes of tort liability.	Commonwealth CS: If pupil resides in district with positive foundation gap, CS receives the average cost per pupil in resident district, directly from the state treasurer. If pupil resides in district with no positive foundation gap, CS receives the lesser of: (1) the average cost per pupil in the resident district; and (2) the average cost per pupil in the CS district. Horace Mann CS: Submits budget request to school district that reviews it. In response to budget request, HM shall receive funding from district that is not less than it would have under the district's budgetary allocation rules. Once budget amount is approved by the district, HM can spend money without further approval by district.
MI	CS shall comply with all provisions of this part and with all other state law applicable to public bodies and with federal law applicable to public bodies or school districts.	A CS has governmental immunity. A chartering authority is immune from civil liability both personally and professionally for any acts or omissions in authorizing a CS.	Charter authorizing body is the fiscal agent. The authorizing body receives a state school aid payment, which it forwards to the CS.
MN	Automatically exempt from all statutes and rules applicable to a school, a school board, or a school district except as provided in the CS law. Must comply with laws re: health and safety, special education, state educational outcomes, pupil fair dismissal, public school fees, and financial audits.	CS assumes all liability. State board of education and sponsors are immune from civil or criminal liability with respect to all activities related to a CS	CS receives the average general education revenue per pupil from state as though it were a school district. CS may use its operating revenue for any purpose related to the school. Federal aid received by state must be paid to CS (if qualified) as though it were a school district.
MS	Automatically exempt from rules, regulations, policies and procedures of state board of education and local school board and from provisions of Title 37 (Education) of State Code, except as provided in CS law or charter. Must comply with performance variables in accreditation system.		A CS may be funded by federal grants, grants, gifts, donations from private sources, and state funds appropriated for support of CS, and any other funds that may be received by the school district. State board of education may give CS preference when allocating grant funds other than state funds for alternative school programs, classroom technology, school improvement programs, mentor programs or other grant programs designed to improve local school performance.
NV	No specific statement regarding exemptions. Law states that schools must comply with laws re: discrimination, civil rights, state achievement and proficiency examinations, and others.	The application for a CS shall include guidelines for determining who is liable if CS is dissolved or its application for renewal is not approved.	CS pupils must be included in count of pupils in district for purposes of apportionments and allowances from the state distributive school account. CS is entitled to receive its proportionate share of any other money available from federal state, or local sources that the school is eligible to receive. CS may negotiate with district and state board of education for additional money to pay for services the CS wishes to offer.
NH	Automatically exempt from state laws and rules which otherwise apply to public or nonpublic schools, or local school boards or districts, except as provided in CS Law. Must comply with laws re: nondiscrimination, special education, health and safety, and civil rights.	Local school board and district is free of liability for any action or inaction of CS District shall not be held liable for damages in an action to recover for bodily injury, personal injury or property damage arising out of the establishment or operation of CS	Funding limitations are not applicable to charter conversion schools located in pupil's resident district. All other CSs receive from pupil's resident district, not less than 80% of average cost per pupil in that district. Sending district may provide funds, services equipment, materials or personnel to a charter school in addition to the amounts specified in this section in accordance with policies of the sending school district. Any federal or other funding available to a sending district shall be directed to CS in receiving district on an eligible per pupil basis.
NJ	CS shall operate in accordance with its charter and the provisions of law and regulation which govern other public schools. Upon request, the commissioner may exempt CS from state regulations concerning public schools. Application shall include waivers that CS intends to request. Must comply with laws re: civil rights, health and safety, and assessment.	CS shall provide for appropriate insurance against loss or damage to its property or any liability resulting from the use of its property or from the acts or omissions of its officers and employees.	CS receives for ea. pupil (directly from the school district of residence) a presumptive amount equal to 90% of the local levy budget per pupil for specific grade level in the district. CS also receives any categorical aid and any federal funds directly from district of residence.
NM	CS shall comply with all provisions of the Public School Code. CS may request waiver of certain provisions for purpose of providing class size and structure flexibility, alternative curriculum opportunities, and alternative budget opportunities.		CS submits its school-based budget to district for approval. If approved, budget is passed on to the Department of Education as part of district's budget. If Department approves, it determines allocations to each school district from the public school fund and the local school board allocates the appropriate distributions to the CS pursuant to their budget.
NC	Automatically exempt from statutes and rules applicable to a local board of education or local school administrative unit, except as provided in the CS Law and in the charter. Must comply with laws re: health and safety, pupil performance standards and assessments, education of pupils with special needs.	Any sovereign immunity of CS is waived to the extent of the indemnification by insurance. State board of education is not liable for any acts or omissions of CS. If CS does not elect total independence from local board of education, immunity shall be waived to the extent of indemnification by insurance.	CS receives from state board of education an amount equal to the average per pupil allocation for average daily membership that would have otherwise gone to school district where CS located. The CS shall receive from the local district of residence an amount equal to the per pupil local current expense appropriation.
OH	Automatically exempt from all state laws and rules pertaining to schools, school districts, and boards of education, except as specified in CS Law and/or in charter. Must comply with laws and regulations re: parent rights, health and safety, state assessments.	A sponsor is not liable for damages in a tort or other civil action for harm allegedly arising from: (1) failure of CS to perform any statutory law/responsibility, (2) an action or omission of CS.	CS receives directly from Department of Education (or through Lucas County Educational Services Center), an amount equal to the number of pupils multiplied by the base formula amount of the CS, adjusted by the school district of residence's cost-of-doing-business factor.
PA	Automatically exempt from statutory requirements, regulations of the state board of education and the standards of the secretary not specifically applicable to CS, except as otherwise provided in CS Law or charter. CS are not exempt from statutes applicable to public schools other than this Act. Must comply with laws and regulations re: nondiscrimination, state assessment, [more].	CS shall be solely liable for any and all damages of any kind resulting from any legal challenge involving operation of CS. Local board shall not be liable for any activity or operation related to program of a CS. CS employees are public employees for the purposes of tort liability.	CS receives for each pupil (from district of residence) no less than the budgeted total expenditure per average daily membership minus the budgeted expenditures of the district of residence for other educational programs.
RI	CS must identify state statutes and regulations, school district rules and provisions of collective bargaining agreement from which variances are sought. Several title provisions are listed as binding (i.e. not able to be waived) in the Law.	CS have same immunity possessed by school districts to suit. A CS shall have authority to indemnify its employees to extent that they are not already indemnified by the school district.	CS receives funding from the school district equal to a percentage of the total budgeted expenses determined by dividing the number of CS pupils by total resident average daily number of pupils in school district. CS pays for district-provided services it chooses to use out of this funding. Federal aid received by the state shall be used to benefit pupils in the CS (if qualified) as though it were a district.
DC	Automatically exempt from all provisions of law and regulations applicable to a public school, a school board, or a district, except as provided in CS law. The contract between the CS and the sponsor shall reflect all agreements regarding release of CS from local district policies. Must comply with laws and regulations re: health, safety, civil rights, disability rights, nondiscrimination, state assessment, attendance, financial audits.	CS is school district for purposes of tort liability. Application contains an assumption of liability by CS for its activities. A CS must indemnify and hold harmless the school district from any and all liability, damage, expense, causes of action, suits, claims or judgments arising from injury or failure to action or negligence of CS.	CS receives from sponsor, an amount equal to the state, county and school district funds based on formula.
TX	CS is subject to federal and state laws and rules governing public schools, except that the CS is subject to this code and rules adopted under this code only to the extent the applicability to a CS of a provision of this code is specifically provided. Must comply with laws re: health and safety, special education, accountability, and assessment.	The CS is immune from liability to same extent as a school district.	CS receives from state the distribution from the available school fund for each pupil attending the CS, that district would otherwise receive. The CS receives from the district of residence an amount equal to the quotient of the tax revenue collected by district for public schools divided by number of pupils.
WI	Except as otherwise explicitly provided, chapters 115 to 121 of state statutes (Education code) do not apply to CS. Must comply with laws and regulations re: health and safety.	Charter petition must include a description of the types and limits of the liability insurance the CS will carry, as well as the effect of the establishment of the CS on the liability of the school district.	For, CS sponsored by school boards, the contract shall specify the amount to be paid by the school board to the charter school during each school year. For CS sponsored by a ch. 119 school district, the Department shall pay to CS an amount equal to the shared cost per member in the previous school year of the school district operating under ch. 119 multiplied by the number of pupils attending the CS.
WY	CS must comply with provisions set forth in its charter petition. Must comply with laws re: state minimum standards.	Charter petition must demonstrate that CS is adequately insured for liability, including errors and omissions, and that the school district is indemnified to the fullest extent possible.	Each pupil attending a CS shall be counted among the average daily membership of the district in which school is located.