General Compliance Issues
Responses to these frequently asked questions are advisory only. Charter schools and charter authorizers are encouraged to review the actual laws and regulations that provide the basis for these responses and consult with their own legal counsel regarding the application of any of these issues to a specific situation.
Q.1. Are charter schools
exempt from federal requirements?
Q.2. What are the geographic restrictions on
charter school operations?
Q.3. What are the audit and reporting requirements
for charter schools?
Q.4. Must a charter school provide the California
Department of Education (CDE) with corrective action plans for charter audit findings?
Q.5. Must charter schools develop a School Accountability
Report Card?
Q.6. What health and safety requirements apply
to charter schools?
Q.7. Who is responsible for student records,
transcripts, articulation, and diploma issuance for a charter
school?
Q.8. What happens if a charter school offers,
provides, or teaches religious curricula? Is it still eligible
for apportionment?
Q.9. Can a charter school charge students
for summer school programs?
Q.10. Is a preschool considered a private school
for purposes of applying Education Code Section 47602(b)?
Q.11. Are charter schools required to participate
in statewide testing programs?
Q.12. Is there any flexibility allowed
charter schools to administer the statewide testing program?
Q.13. Can a charter school require each student
to participate in state testing?
Q.14. Can a charter school grant academic credit for work experience education and issue work permits?
Are charter schools exempt from federal requirements?
No. The exemption from the laws governing school districts applies only to state laws and does not affect requirements of federal law. Some examples of federal laws with which charter schools must comply are the Individuals with Disabilities Education Improvement Act (IDEIA, federal special education law), the Americans with Disabilities Act, Section 504 of the Rehabilitation Act, and the No Child Left Behind (NCLB) Act of 2001, and any requirements that are a condition of receipt of federal funding for a specific program in which the charter school participates.
What are the geographic restrictions on charter school operations?
With a few exceptions, Education Code Section 47605(a) allows a new charter school to operate only within the geographic jurisdiction of the school district that authorized it. The law also requires a charter petition to identify each site where the school will operate. A charter school may only operate one site outside of the district of authorization, but within the county in which the authorizing district is located, under specified conditions. A charter school may only establish additional “satellite” sites with the approval of the authorizer.
The site restrictions do not apply to nonclassroom-based facilities used as resource centers, meeting spaces, or satellite sites used exclusively for independent or home study if a majority of the charter school pupils are residents of the county in which the charter is authorized. However, an independent study (nonclassroom-based) charter school may only enroll pupils who live in the county or an adjacent county to where the charter is authorized.
Pursuant to Education Code Section 47605.1(g), the site restrictions do not apply to charter schools that provide services exclusively to pupils enrolled in specified federal or state programs, such as the California Conservation Corps.
Education Code Section 47605.1 establishes various time lines and exemptions for compliance with the geographic restrictions. The site restrictions apply to any school authorized after July 1, 2002, or to any new “satellite” site of an existing charter established after July 1, 2002. Schools operating prior to July 1, 2002, must come into compliance with the geographic restrictions by the expiration of the charter term or July 1, 2005, whichever is later.
Statewide Benefit Charters: Assembly Bill 1994 (Chapter 1058, Statutes of 2002) amended the Charter School Act of 1992, to add Education Code Section 47605.8 creating the opportunity for the State Board of Education (SBE) to authorize charter schools of statewide interest that propose to operate on multiple sites.
A statewide benefit charter school petition that is submitted to the SBE for consideration must, in part, incorporate a plan that provides for the initial commencement of instruction in at least two schools, which shall be in at least two different school districts or two different counties. The plan for instruction shall describe how the instructional services will provide a statewide benefit as specified in California Code of Regulations Section 11967.6 (b) that cannot be provided by the charter school operating in only one school district, or only in one county.
What are the audit and reporting requirements for charter schools?
Charter schools are required to have an annual independent fiscal audit that is performed in accordance with generally accepted auditing standards. Starting in 2005, charter schools will be included in the audit guide for kindergarten through twelve public schools. Additional audit processes are required to be described in the charter. Charter schools must submit a copy of their annual audit to the authorizer, the county office of education, the State Controller, and the California Department of Education (CDE) by December 15 of each year.
The law is not specific with regard to whether charter schools should use auditing standards for nonprofit corporations, for-profit corporations, or governmental organizations. However, while charter schools may be operated by a nonprofit, they are public schools (governmental entities) under Education Code Section 47612. The CDE strongly recommends that charter school audits be performed in accordance with Government Auditing Standards issued by the Comptroller General of the United States. The audit should also be performed in accordance with the requirements established by the federal Office of Management and Budget (OMB) Circular A-133.
As part of the public school system, charter schools are also required to report annual fiscal data to the CDE through their authorizer in a format prescribed by the CDE. Beginning with the 2004-05 fiscal year, on or before September 15, each charter school must provide an annual unaudited statement of all receipts and expenditures for the previous fiscal year to its authorizer. This report is then forwarded to the CDE. The CDE developed an alternative format for 2004-05 and subsequent fiscal years. The CDE issued a letter (dated April 5, 2004) on the subject, found at the following Web site http://www.cde.ca.gov/fg/ac/co/. The alternative form and the instructional manual have been posted to our Web site http://www.cde.ca.gov/fg/sf/fr/.
Ref. Education Code Section 1628, 42100, 47605(b)(5)(I) and 47605(m)
Must a charter school provide the CDE with corrective action plans for charter audit findings?
The CDE believes that the authority to require corrective action plans pursuant to Education Code Section 41020(m) also applies to charter schools.
Must charter schools develop a School Accountability Report Card?
Yes. The requirement to provide a School Accountability Report Card (SARC) is in the state Constitution and is a requirement for receipt of state funding. Therefore, each charter school must produce a SARC. However, while the specific content and format of the SARC, as specified in statute and the charter authorizer’s policy, may not necessarily apply to charter schools, the California Department of Education recommends that all schools including charter schools use the standard format for reporting these data. Ref. Education Code Section 47610
What health and safety requirements apply to charter schools?
The law specifies that the charter must describe the procedures
that the school will follow to ensure the health and safety
of pupils and staff. While these procedures must include the
requirement that each employee of the school furnish the school
with a criminal record summary as described in Education
Code Section 44237,
a full description of a school's health and safety policies
would likely include a variety of issues, such as immunizations,
tuberculosis testing, and disaster procedures. While charter
school facilities are not subject to the Field Act and other
state facility laws that apply specifically to school districts,
they are subject to local building and zoning code requirements.
Ref. Education Code Section 47605(b)(5)(F)
and Section 47610
Who is responsible for student records, transcripts, articulation, and diploma issuance for a charter school?
The law does not specifically address any of these issues, but they should be addressed by the charter school and the authorizer as part of the charter approval process that determines the specific oversight and administrative operations of the charter school and its authorizer. The charter school would generally be responsible for these issues and should develop policies and procedures to address them. Problems in these areas should be addressed by the authorizer.
What happens if a charter school offers, provides, or teaches religious curricula? Is it still eligible for apportionment?
Offering religious curricula and instruction is a violation of charter school law and the state Constitution. Compliance with the prohibition on nonsectarian operations is a condition of apportionment. If a charter school violates this law, it would not be eligible to receive state funds, and its charter would be subject to revocation by its authorizer.
Can a charter school charge students for summer school programs?
No. A charter school cannot charge tuition. It may charge for optional programs and activities that are recreational and outside of regular school programs.
Is a preschool considered a private school for purposes of applying Education Code Section 47602(b)?
No. Education Code Section 47602(b) prohibits a private school from converting to a charter school. However, a preschool is not a private school for that purpose, because Education Code Section 47602(b) would only apply to a school in which the students are of the age of mandatory school attendance required under Education Code Section 48200.
Are charter schools required to participate in statewide testing programs?
Yes. Charter schools must comply with statewide pupil assessments required of pupils in non charter public schools (e.g., STAR, CAHSEE).
Ref. Education
Code Section 47605(c)
Is there any flexibility allowed charter schools to administer the statewide testing program?
No. Charter schools are required to administer these tests following the same procedures and requirements for test administration as required of non charter schools.
Can a charter school require each student to participate in state testing?
Charter schools are required to follow the same testing requirements as non charter schools. This would include the right of a parent, under specified conditions, to waive the state testing requirement. A charter school cannot disregard or abridge a parent's right under this law for any reason, including requiring testing as a condition of enrollment in the charter school.
Can a charter school grant academic credit for work experience education and issue work permits?
State law establishes various requirements relating to the granting of academic credit for Work Experience Education and to the issuing of work permits. Refer to information letter dated February 24, 2006.
