Revision: Jan. 11, 2023, 11 a.m.
HB 550-FN - AS INTRODUCED
2023 SESSION
23-0099
09/10
HOUSE BILL 550-FN
AN ACT relative to chartered public school dissolution.
SPONSORS: Rep. Fellows, Graf. 8; Rep. Heath, Hills. 41; Rep. Tanner, Sull. 5
COMMITTEE: Education
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ANALYSIS
This bill provides for the assets of a chartered public school to be distributed to the nearest public school district following dissolution of the chartered public school. The bill also establishes a committee to study the current charter public school dissolution process.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0099
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to chartered public school dissolution.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Charter School Dissolution. Amend RSA 194-B:3, II(z) to read as follows:
(z) Provision for dissolution of the chartered public school, including disposition of its assets back to the state of New Hampshire, or amendment of its program plan.
(1) Upon dissolution of the chartered public school, the department of education and the department of administrative services shall take possession of all charter school assets and offer them to the nearest public school district.
(2) Any assets that remain unclaimed after dissolution shall be sold or disposed of by the department of education and the department of administrative services. Any revenue generated from the sale or disposal of said assets shall be deposited in the state general fund.
(3) The provision for dissolution of the chartered public school shall read as follows:
"Upon dissolution of ________ chartered public school, after all the school's financial obligations are met, all remaining assets shall be returned to the State of New Hampshire. The Department of Education and Department of Administrative Services shall take possession of said assets and offer them to the nearest public school district."
2 Committee Established; Chartered Public School Dissolution. There is established a committee to study the current charter public school dissolution process and identify ways to ensure an orderly school closure that will support students, avoid insolvency, and reduce liability to the school and the state.
I. The members of the committee shall be as follows:
(a) Four members of the house of representatives, at least 2 of whom are from the education committee, appointed by the speaker of the house of representatives.
(b) One member of the senate, appointed by the president of the senate.
II.(a) The committee shall seek the expertise and advice from:
(1) A financial administrator (employee or contractor), preferably a CPA, for a charter school, nominated by the commissioner of education.
(2) The administrator of the department of education’s chartered public school office.
(3) A representative of the charitable trust division of the department of justice.
(4) The commissioner of the department of administrative services, or designee.
(5) Any other person or entity relevant to the duty of the committee.
(b) Legislative members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
III. The committee shall study the following issues as related to the operation of public charter schools which are recognized by the state as both a private non-profit organizations and public schools:
(a) Existing federal and state statues and rules related to financial and risk management, and dissolution including the disposal of property, inventory and monetary assets.
(b) Identification of all state agencies that do, or should, have responsibilities related to the monitoring of financial status and practices, maintenance of fiscal solvency, and the dissolution process.
(c) Financial liability of the state, school districts, and the employees, boards, parents and volunteers of chartered schools.
(d) Current practices and best practices for schools and state agencies, related to maintenance of financial stability, risk management, and the dissolution process of chartered schools.
(e) Non-financial issues related to dissolution including, but not limited to, notification of closure, placement of students and retention of academic records.
IV. The members of the study committee shall elect a chairperson from among the voting members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Five voting members of the committee shall constitute a quorum.
V. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the chairs of the education committees in both the house of representatives and senate, the house clerk, the senate clerk, the governor, and the state library on or before December 15, 2023.
3 Effective Date. This act shall take effect upon its passage.
23-0099
1/9/23
HB 550-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to charter school dissolution.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill, as introduced, at this time. When completed, the fiscal note will be forwarded to the House Clerk's Office.
AGENCIES CONTACTED:
Department of Education and Department of Administrative Services