2022 -- H 7634

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LC004700

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO EDUCATION -- FUNDING OF CHARTER PUBLIC SCHOOLS

     

     Introduced By: Representatives O'Brien, Barros, Amore, Williams, C Lima, Serpa,
Alzate, McNamara, Bennett, and Solomon

     Date Introduced: March 02, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 16-77.1-2 of the General Laws in Chapter 16-77.1 entitled "Funding

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of Charter Public Schools [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]"

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is hereby amended to read as follows:

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     16-77.1-2. Operating costs.

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     (a) Operating costs of a charter public school shall be the total of the per pupil payments

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for each student attending the charter public school. The per pupil payment for each student shall

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be determined based on the per pupil cost for the district of residence of each student. The state's

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share of the per pupil amount for each student attending the charter public school shall be paid by

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the state directly to the charter public school and shall be the percent, or share ratio, previously

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calculated under chapter 7 of this title; provided, that in no case shall the ratio be less than thirty

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percent (30%), minus the five percent (5%) of per pupil cost designated for indirect cost support to

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the student's school district as defined in subsection (b). The five percent (5%) indirect cost amount

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shall be deducted from the district per pupil cost before the state share is derived by applying the

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share ratio to the district per pupil cost. The local share of the per pupil amount for each student

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attending the charter public school shall be paid to the charter public school by the district of

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residence of the student and shall be the per pupil cost for the district of residence of the student

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minus the state share of that per pupil cost as designated in this section.

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     (b) In addition to all state aid to education paid to a local district pursuant to chapter 7.1 of

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this title, the state will pay an additional amount to the district for each student from this district

 

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who is attending a charter public school. The additional amount of state aid per pupil shall be five

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percent (5%) of the districts per pupil cost. The additional state aid shall be for the purpose of

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assisting local school districts to undertake the indirect costs borne by a district when its student

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attends a charter public school.

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     (c) The state department of elementary and secondary education shall annually determine

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both the state and local share of each charter public school's operating costs by deriving the

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respective shares associated with each student reported as a member of the charter public school as

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of June 30 of the reference year as defined in § 16-7-16(11) (or the enrollment as of October 1 of

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the current school year in the first year of operation of a charter school). All other data used in this

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determination shall be based upon the reference year as defined in § 16-7-16(11).

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     (d) The state shall make payments of its share of operating costs to each charter public

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school on a quarterly basis in July, October, January, and April. The July and October payments

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will be based upon the reported student membership of the charter public school as of June 30 of

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the reference year as defined in § 16-7-16(11) (or the enrollment as of October 1 of the current

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school year in the first year of operation of a charter school). Charter public schools will report

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current student enrollment, including district of residence for school purposes of each student

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enrolled, and each district will report current total district operating expenses and total district

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enrollments (including district students enrolled in charter public schools) annually by October 1.

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If the October 1 data on a charter public school's student enrollment show a ten percent (10%) or

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greater increase or decrease in students from the June membership count, the third and fourth

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quarter payments to the charter public school will be adjusted to reflect actual student enrollment

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in the charter public school.

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     (e) Local district payments to charter public schools for each district's students enrolled in

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the charter public school shall also be made quarterly as designated in subsection (d); the first local

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district payment shall be made by August 15 instead of July. Any local school district more than

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thirty (30) days in arrears on a quarterly payment for its student(s) enrolled in a charter public

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school shall have the amount of the arrearage deducted from state aid to that district and the

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withheld arrearage shall be paid by the state directly to the charter public school.

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     (f) Local school districts with student(s) enrolled in a charter public school shall continue

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to report these students in the total census of district public school students and will receive state

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aid for all these students pursuant to the provisions of chapter 7.1 of this title.

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     (g) All entitlements except those provided for in § 16-24-6.2 shall be ratably reduced if less

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than one hundred percent (100%) of the expenditures is appropriated.

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     (h) For fiscal year 2007, the indirect aid paid to districts pursuant to this section shall equal

 

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the amount received in the fiscal year 2006 enacted budget by the 2005 general assembly.

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     (i) In the event a student enrolled in a charter school is disenrolled and/or returned back to

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a sending school prior to the end of an academic year, then the charter school shall remit payment

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equal to all public funds received by the charter school for that academic year for the education of

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the disenrolled and/or returned student. The payment shall be sent to the public school and/or school

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district responsible for receiving the student from the charter school. The funds remitted to the

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public school or district responsible for receiving the student shall not be reduced and no pro rata

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allocation shall be applied for any period of educational services provided by the charter school to

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the student.

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     SECTION 2. Section 16-77.2-5 of the General Laws in Chapter 16-77.2 entitled "District

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Charter School [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

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amended to read as follows:

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     16-77.2-5. Budgets and funding.

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     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

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neither a financial incentive nor a financial disincentive to the establishment of a district charter

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school. Funding for each district charter school shall consist of state revenue and municipal or

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district revenue in the same proportions that funding is provided for other schools within the

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sending school district(s).

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     (b) Funding additional to that authorized from the sending school district(s) may be

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allocated to the district charter school from the sending school district(s) to the extent that the

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combined percentage of students eligible for free or reduced-cost lunch, students with limited

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English proficiency, and students requiring special education exceed the combined percentage of

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those students in the sending school district(s) as a whole. The commissioner shall promulgate rules

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and regulations consistent with this section regarding the allocation of funds from sending school

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districts to district charter schools.

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     (c) All services, centrally or otherwise provided by the school district in which the district

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charter school is located, that the district charter school decides to utilize including, but not limited

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to, transportation, food services, custodial services, maintenance, curriculum, media services,

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libraries, nursing, and warehousing, shall be subject to negotiation between a district charter school

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and the school district in which the district charter school is located and paid for out of the revenues

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of the district charter school. Disputes with regard to cost of services requested from the school

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district in which the district charter school is located will be adjudicated by the commissioner.

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     (d) A district charter school shall be eligible to receive other aids, grants, Medicaid revenue,

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and other revenue according to Rhode Island law, as though it were a school district. Federal aid

 

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received by the state shall be used to benefit students in the charter public school, if the school

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qualifies for the aid, as though it were a school district.

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     (e) A district charter school may negotiate and contract directly with third parties for the

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purchase of books, instructional materials, and any other goods and services that are not being

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provided by the sending school district(s) pursuant to the charter.

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     (f) If a charter school subject to the provisions of this chapter shall disenroll or return a

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student to the original sending school then the charter school shall remit payment pursuant to the

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provisions of § 16-77.1-2(i).

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     SECTION 3. Section 16-77.3-5 of the General Laws in Chapter 16-77.3 entitled

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"Independent Charter Schools [See Title 16 Chapter 97 - The Rhode Island Board of Education

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Act]" is hereby amended to read as follows:

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     16-77.3-5. Budgets and funding.

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     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

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neither a financial incentive nor a financial disincentive to the establishment of an independent

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charter school. Funding for each independent charter school shall consist of state revenue and

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municipal or district revenue in the same proportions that funding is provided for other schools

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within the sending school district(s).

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     (b) Funding additional to that authorized from the sending school district(s) by subsection

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(b) may be allocated to the independent charter school from the sending school district(s) to the

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extent that the combined percentage of students eligible for free or reduced-cost lunch, students

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with limited English proficiency, and students requiring special education exceed the combined

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percentage of those students in the sending school district(s) as a whole. The commissioner shall

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promulgate rules and regulations consistent with this section regarding the allocation of funds from

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sending school districts to independent charter schools.

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     (c) An independent charter school shall be eligible to receive other aids, grants, Medicaid

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revenue, and other revenue according to Rhode Island law, as though it were a school district.

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Federal aid received by the state shall be used to benefit students in the independent charter school,

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if the school qualifies for the aid, as though it were a school district.

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     (d) An independent charter school may negotiate and contract directly with third parties

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for the purchase of books, instructional materials, and any other goods and services that are not

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being provided by the sending school district(s) pursuant to the charter.

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     (e) If a charter school subject to the provisions of this chapter shall disenroll or return a

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student to the original sending school then the charter school shall remit payment pursuant to the

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provisions of § 16-77.1-2(i).

 

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     SECTION 4. Section 16-77.4-5 of the General Laws in Chapter 16-77.4 entitled "Mayoral

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Academies [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

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amended to read as follows:

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     16-77.4-5. Budgets and funding.

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     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

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neither a financial incentive nor a financial disincentive to the establishment of a mayoral academy.

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Funding for each mayoral academy shall consist of state revenue and municipal or district revenue

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in the same proportions that funding is provided for other schools within the sending school

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district(s).

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     (b) Funding additional to that authorized from the sending school district(s) may be

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allocated to the mayoral academy from the sending school district(s) to the extent that the combined

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percentage of students eligible for free or reduced-cost lunch, students with limited English

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proficiency, and students requiring special education exceed the combined percentage of those

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students in the sending school district(s) as a whole. The commissioner shall promulgate rules and

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regulations consistent with this section regarding the allocation of funds from sending school

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districts to mayoral academies.

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     (c) A mayoral academy shall be eligible to receive other aids, grants, Medicaid revenue,

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and other revenue according to Rhode Island law, as though it were a school district. Federal aid

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received by the state shall be used to benefit students in a mayoral academy, if the school qualifies

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for the aid, as though it were a school district.

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     (d) A mayoral academy may negotiate and contract directly with third parties for the

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purchase of books, instructional materials, and any other goods and services that are not being

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provided by the sending school district(s) pursuant to the charter.

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     (e) If a charter school subject to the provisions of this chapter shall disenroll or return a

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student to the original sending school then the charter school shall remit payment pursuant to the

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provisions of § 16-77.1-2(i).

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     SECTION 5. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- FUNDING OF CHARTER PUBLIC SCHOOLS

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     This act would require charter schools that disenroll or return a student to the original

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sending school prior to the end of an academic year, to return all public funds received by the

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charter school to educate that student for that academic year.

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     This act would take effect upon passage.

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