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S 454
South Carolina Senate•Passed
Summary
S 454, “Charter School Accountability”, was introduced in the Senate on Mar 13, 2025 by Sen. Greg Hembree (R). It last saw action on May 26, 2026: Act No. 123.
Record
Text
S 454 has 6 roll calls.
s454/amended.txtSouth Carolina General Assembly126th Session, 2025-2026Bill 454Indicates Matter StrickenIndicates New Matter(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)Indicates Matter StrickenIndicates New MatterHouse Amendments AmendedMay 12, 2026S. 454Introducedby Senator HembreeS. Printed 5/12/26--S.Read the first time March 13, 2025________A billTO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDINGSECTION 59-40-40, RELATING TO DEFINITIONS PERTAINING TO CHARTER SCHOOLS, SO ASTO CHANGE REFERENCES FROM "SPONSOR" TO "AUTHORIZER" AND TO PROVIDE OTHERDEFINITIONS; BY AMENDING SECTION 59-40-50, RELATING TO EXEMPTIONS, SO AS TOREQUIRE A CHARTER SCHOOL TO POST THEIR ANNUAL AUDIT ON THEIR WEBSITE AND TONOTIFY AND PROVIDE A COPY OF ANY EDUCATION MANAGEMENT CONTRACTS TO THEAUTHORIZER; BY AMENDING SECTION 59-40-55, RELATING TO AUTHORIZER POWERS ANDDUTIES AND THE RETENTION OF FUNDS, SO AS TO REQUIRE THE AUTHORIZER TO ADOPT ANDIMPLEMENT POLICIES, PROCEDURES, AND PRACTICES THAT ENSURE GOOD GOVERNANCE ANDACCOUNTABILITY; BY AMENDING SECTION 59-40-60, RELATING TO CHARTER APPLICATIONSAND COMMITTEES, SO AS TO EXPAND THE CHARTER SCHOOL APPLICATION TO INCLUDE ANYPROPOSED CHARTER OR EDUCATION MANAGEMENT CONTRACTS CONTEMPLATED BY THE CHARTERSCHOOL; BY AMENDING SECTION 59-40-70, RELATING TO APPLICATION REQUIREMENTS ANDPROCEDURES, SO AS TO SET A TIME FRAME TO HOLD A PUBLIC HEARING ON THEAPPLICATION FOR A CHARTER SCHOOL; BY AMENDING SECTION 59-40-75, RELATING TO THEREMOVAL OF AN AUTHORIZER OR MEMBER OF A DISTRICT OR GOVERNING BOARD, SO AS TOREQUIRE THE GOVERNOR TO VACATE THE SEAT OF A MEMBER OF AN AUTHORIZER OR CHARTERSCHOOL GOVERNING BOARD WHO IS INDICTED FOR A CRIME; AND TO ALLOW THE GOVERNORTO REMOVE A MEMBER FOR CHRONIC UNEXCUSED ABSENTEEISM, MEDICAL INCOMPETENCY, ORMEDICAL INCAPACITY; BY AMENDING SECTION 59-40-90, RELATING TO APPEALS TO THE ADMINISTRATIVELAW COURT, SO AS TO ALLOW AN APPEAL FOR ANY FINAL DECISION MADE PURSUANT TOTHIS CHAPTER BE MADE TO THE ADMINISTRATIVE LAW COURT; BY AMENDING SECTION59-40-115, RELATING TO TERMINATION OF A CONTRACT WITH AN AUTHORIZER, SO AS TOALLOW A CHARTER SCHOOL TO TERMINATE ITS CHARTER AND CONTRACT WITH AN AUTHORIZERUNDER CERTAIN CONDITIONS; BY AMENDING SECTION 59-40-150, RELATING TO THE DUTIESOF THE DEPARTMENT OF EDUCATION, SO AS TO ESTABLISH THE DUTIES OF THE DEPARTMENTOF EDUCATION TO SERVE AS THE STATE EDUCATION AGENCY FOR EACH AUTHORIZER ANDANNUALLY REVIEW THE POLICIES, PROCEDURES, AND PERFORMANCE OF EACH AUTHORIZERFOR COMPLIANCE; AND BY AMENDING SECTION 59-40-180, RELATING TO REGULATIONS ANDGUIDELINES, SO AS TO CLARIFY THAT GUIDELINES WILL BE APPLICABLE TO NEWAUTHORIZERS AND CHARTER SCHOOLS.Amend Title To ConformBe it enacted by theGeneral Assembly of the State of South Carolina:SECTION 1. Section 59-40-40 of the S.C. Code is amended to read:Section59-40-40. As used in this chapter:(1) A"charter school" means a public, nonreligious, nonhome-based, nonprofitcorporation forming a school that operates by sponsorship authorization of a public school district, the SouthCarolina Public Charter School District, or a public or independent institutionof higher learning, but is accountable to the board of trustees, or in the caseof technical colleges, the area commission, of the sponsorauthorizer which grants its charter. Nothingin this chapter prohibits charter schools from offering virtual servicespursuant to state law and subsequent regulations defining virtual schools.(2) Acharter school:(a)is, for purposes of state law and the state constitution, considered a publicschool and part of the South Carolina Public Charter School District, the localschool district in which it is located, or is sponsored authorized by an approvedpublic or independent institution of higher learning;(b)is subject to all federal and state laws and constitutional provisionsprohibiting discrimination on the basis of disability, race, creed, color,gender, national origin, religion, ancestry, or need for special educationservices; however, an applicant may seek to form a single gender charter schoolwithout regard to the gender makeup of that proposed charter school;(c)must be administered and governed by a governing body in a manner agreed to bythe charter school applicant and the sponsorauthorizer, the governing body to be selected as providedin Section 59-40-50(B)(9)(14);(d)may not charge tuition or other charges pursuant to Section 59-19-90(8) exceptas may be allowed by the sponsor authorizer and is comparable to the charges of the localschool district in which the charter school is located;(e)is subject to the same fixed asset inventory requirements as are traditionalpublic schools.(3)"Applicant" means the person who or nonprofit corporate entity that desires toform a charter school and files the necessary application with the SouthCarolina Public Charter School District Board of Trustees, the local schoolboard of trustees in which the charter school is to be located, or the board oftrustees or area commission of a public or independent institution of higherlearning. The applicant also must be the person who or the nonprofit corporateentity that applies to the Secretary of State to organize the charter school asa nonprofit corporation. The nonprofit entity mustmaintain its nonprofit status to remain a charter school.(4) "SponsorAuthorizer" means a local or statewide authorizer. This includes the SouthCarolina Public Charter School District Board of Trustees, the local schoolboard of trustees in which the charter school is to be located, as provided bylaw, a public institution of higher learning or anonprofit association directly affiliated with a public institution of higherlearning as defined in Section 59-103-5, or an independent institutionof higher learning or a nonprofit association directlyaffiliated with an independent institution of higher learning as definedin Section 59-113-50, from which the charter school applicant requested itscharter and which granted approval for the charter school's existence. Onlythose public or independent institutions of higher learning, as defined in thissubsection, who register and apply with the South Carolina Department of Education State Board of Education may serve as charter school sponsorsauthorizers, and the department Department of Education shallmaintain a directory of those institutions. The sponsor authorizer of a charter school is the charter school'sLocal Education Agency (LEA), and a charter schoolis a school within that LEA. The sponsor authorizer retains responsibility for special educationand shall ensure that students enrolled in its charter schools are served in amanner consistent with LEA obligations under applicable federal, state, andlocal law. A nonprofit association that is directlyaffiliated with an institution of higher learning as an authorizer shall serveat the pleasure of, and be subject to the oversight and control of, thegoverning body of the institution. The nonprofit entity must maintain itsnonprofit status to remain an authorizer.(5)"Certified teacher" means a person currently certified by the State of SouthCarolina to teach in a public elementary or secondary school or who currentlymeets the qualifications outlined in Sections 59-27-10 and 59-25-115.(6)"Noncertified teacher" means an individual considered appropriately qualifiedfor the subject matter taught and who has completed at least one year of studyat an accredited college or university and meets the qualifications outlined inSection 59-25-115. An individual whose educatorcertificate has been suspended or revoked shall not be employed as anoncertified teacher during the term of suspension or revocation.(7)"Charter committee" means the governing body of a charter school formed by theapplicant to govern through the application process and until the election of aboard of directors is held. After the charter applicationis approved by the authorizerelection, theboard of directors of the corporation must be organized as the governing bodyand the charter committee isshallbe dissolved within six months of the schoolopening for students to attend. The election of theboard of directors must be held by April first of the year in which the schoolopens for students. Failure to hold the election by this date may result in animmediate revocation of the charter.(8)"Local school district" means any school district in the State except the SouthCarolina Public Charter School District and does not include special schooldistricts.(9)"Charter school contract" means a fixed term, renewable contract between acharter school and a sponsoranauthorizer that outlines the roles, powers, responsibilities, andperformance expectations for each party to the contract.(10)"Resident public school" means the school, other than a charter school, withinwhose attendance boundaries the charter school student's custodial parent orlegal guardian resides.(11) "Management organization" means acorporation, business, organization, or other entity, whether conducted forprofit or not-for-profit, with whom the governing body of a charter schoolcontracts to operate, manage, or oversee the operation, management, orprovision and implementation of educational services and programs to thecharter school. This includes a corporation, business, organization, or otherentity that directly employs the administrator or any of the educationalpersonnel, or both.(12) "Replication" means the approvalof a new charter school application based on the mission, academic model,instructional program, and operational structure of an existing charter school.(13) "Virtual charter school" means acharter school whereby students are taught primarily through online methods,provided, however, that at least twenty-five percent of the instruction in coreareas must be provided pursuant to South Carolina Regulation 43-601. Anystudent enrolled in a virtual charter school shall be a resident of a SouthCarolina school district as provided for in Sections 59-63-30, 59-63-31,59-63-32, and 59-63-33.SECTION 2. Section 59-40-50(B) of the S.C. Code is amended toread:(B) A charter school must:(1)must adhere to the same health, safety, civilrights, and disability rights requirements as are applied to public schoolsoperating in the same school district or, in the case of the South CarolinaPublic Charter School District or a public or independent institution of higherlearning sponsorauthorizer,the local school district in which the charter school is located;(2)must meet, but may exceed, the same minimum studentattendance requirements as are applied to public schools;(3)must adhere to the samefinancial laws and regulations, financial audits, audit procedures, andaudit requirements as are applied to public schools, andpost its annual budget, to include its operating budget, and audit on itswebsite with other financial information required to be posted by law orregulation.; A charterschool's financial audit is due to its authorizer no earlier than October 15,or the next business day, unless the Department of Education grants anextension or establishes a grace period for the authorizer;(4) must post its annual budget, toinclude its operating budget and any debt incurred by the school, and audit onits website with other financial information required to be posted by law orregulation;(5) must provide notice to itsauthorizer prior to entering into an agreement to borrow money secured byschool property, funds, or other assets;(6) must maintain a transaction registerthat includes a complete record of all funds expended over one hundred dollars,from any source, for any purpose. The register must:(a) be prominently posted on theschool's website and made available for public viewing and downloading;(b) be accompanied by a completeexplanation of any codes or acronyms used to identify a payee or anexpenditure;(c) be searchable and updated at leastonce a month;(d) include for each expenditure:(i) the transaction amount;(ii) the name of the payee; and(iii) a statement providing a detaileddescription of the expenditure; and(e) not include:(i) an entry for salary, wages, or othercompensation paid to individual employees; and(ii) any information that can be usedto identify an individual employee;(7) must maintain on its website a copyof each monthly statement for all credit cards maintained by the school and bya management organization used for the benefit of the school, including creditcards issued to its officers or employees for official use. The credit cardnumber on each statement must be redacted prior to posting on the website. Eachcredit card statement must be posted within thirty days after the first paymentis made toward the balance shown on the statement. No personal credit cards maybe used by an employee or board member for purchases over two hundred fiftydollars directly related to the school or its operations;(4)(8) must be considered a school district for purposes oftort liability under South Carolina law, except that the tort immunity does notinclude acts of intentional or wilful racial discrimination by the governingbody or employees of the charter school. Employees of charter schools must berelieved of personal liability for any tort or contract related to their schoolto the same extent that employees of traditional public schools in their schooldistrict or, in the case of the South Carolina Public Charter School Districtor a public or independent institution of higher learning sponsorauthorizer, the local school district in which thecharter school is located are relieved;(5)(9) may in its discretion, hire noncertified teachers in a ratio of up totwenty-five percent of its entire teacher staff; however,if it is a converted charter school, it shall hire in its discretionnoncertified teachers in a ratio of up to ten percent of its entire teacherstaff. However, in either a new or converted charter school, a teacher teachingin the core academic areas as defined by the federal law No Child Left Behind law mustbe certified in those areas or possess a baccalaureate or graduate degree inthe subject he or she is hired to teach. Part-time noncertified teachers areconsidered pro rata in calculating this percentage based on the hours whichthey are expected to teach. Any teacher, regardless ofcertification status, who resigns, is suspended, or is terminated amidallegations of unprofessional conduct must be reported to the Department ofEducation by the authorizer;(10) must perform Department of SocialServices Child Abuse and Neglect Registry criminal history record checks asapplicable to all public schools for all school personnel, governing board ofdirectors, volunteers, and other individuals who regularly come into contactwith students, as defined in Section 59-19-117;(6)(11) must hire or contractfor, in its discretion, administrative staff, including a school leader, tooversee the daily operation of the school. At least one of the administrativestaff must be certified or experienced in the field of school administration.; Anadministrator must be physically present onsite during school operating hours;(7)(12) must admit all children eligible to attend publicschool to a charter school, subject to space limitations, except in the case ofan application to create a single gender charter school,or, in the case of a charter school designated asan Alternative Education Campus, pursuant to Section 59-40-111, with anexplicit mission and purpose of specializing in providing evidence-based,specific educational or behavioral health services for educationallydisadvantaged students with a demonstrated need for such services. Demonstratedneed may include, but not be limited to, as documented in an IndividualizedEducation Program (IEP), 504 plan, a medical or psychological diagnosis, ordocumentation that the student is not meeting grade-specific standards in literacyas documented by the student's school. For purposes of this section,educationally disadvantaged students are those students as defined by the EveryStudent Succeeds Act (ESSA) or other subsequent federallaw. Evidence-based services must include, but are not limited to,services to students who need evidence-based, specialized, multi-sensoryinstruction in literacy or other services included in the student's IEP or 504plan. This specialized mission and purpose must be defined in the school's charterand charter contract as approved by the sponsor authorizer and as allowed by ESSA orother federal law. However, it is required that theracial composition of the charter school enrollment reflect that of the localschool district in which the charter school is located or that of the targetedstudent population of the local school district that the charter schoolproposes to serve, to be defined for the purposes of this chapter as differingby no more than twenty percent from that population. This requirement is alsosubject to the provisions of Section 59-40-70(D). If the number ofapplications exceeds the capacity of a program, class, grade level, orbuilding, students must be accepted by lot, and there is no appeal to the sponsorauthorizer. In thecase of a charter school designated as an Alternative Education Campus,pursuant to Section 59-40-111, that is serving educationally disadvantagedstudents, if the number of applicants exceeds the capacity of a program, class,grade level, or building, students may be accepted by weighted lot as allowedby ESSA or other federal law with mission-alignedpreference and the process clearly described in their charter and chartercontract approved by their sponsorauthorizer, and there is no appeal to the sponsorauthorizer;(8)(13) not limit or deny admission orshow preference in admission decisions to any individual or group ofindividuals, except in the case of an application to create a single gendercharter school, in which case gender may be the only reason to show preferenceor deny admission to the school; a charter school may give enrollment priorityto a sibling of a pupil currently enrolled and attending, or who, within thelast six years, attended the school for at least one complete academic year. Apublic charter school shall give enrollment preference to students enrolled inthe public charter school the previous school year. An enrollment preferencefor returning students excludes those students from entering into a lottery. Acharter school also may give priority to children of a charter school employeeand children of the charter committee, if priority enrollment for children ofemployees and of the charter committee does not constitute more than twentypercent of the enrollment of the charter school. In the case of a charterschool designated as an Alternative Education Campus, pursuant to Section59-40-111, mission-aligned preference may be given to educationallydisadvantaged students as specifically defined in their charter and chartercontract approved by their sponsor and as allowed by ESSA. In addition, acharter school located on a federal military installation or base where theappropriate authorities have made buildings, facilities, and grounds on theinstallation or base available for use by the charter school as its principallocation also may give enrollment priority to otherwise eligible students whoare dependents of military personnel living in military housing on the base orinstallation or who are currently stationed at the base or installation not toexceed fifty percent of the total enrollment of the charter school. Thispriority is in addition to the other priorities provided by this item, but nochild may be counted more than once for purposes of determining the percentagemakeup of each priority;(a) must not limit or denyadmission or show preference in admission decisions to any individual or groupof individuals, except in the case of an application to create a single gendercharter school, in which case gender may be the only reason to show preferenceor deny admission to the school or as allowed by subitems (b) and (c).(b) must give preference to studentsenrolled in the public charter school the previous year.(c) may give enrollment preference toany of the following by enrolling the student without requiring participationin a lottery when a lottery is otherwise required under this chapter:(i) a sibling of a pupil currentlyenrolled and attending, or who, within the last six years, attended the schoolfor at least one complete academic year;(ii) a child or children of anyemployee of the charter school or member of the charter school committee,provided that the number of students eligible for this preference may notexceed twenty percent of the school's total enrollment;(iii) dependents of active-dutymembers of the military residing or stationed in this State, limited to notmore than ten percent of the school's total enrollment except for schoolsmeeting the provisions of subitem (f). Dependents of active-duty militarymembers are subject to the enrollment provisions of Section 59-63-33.(d) may enroll a student eligible formultiple enrollment preferences based on only one of the preferences, at thecharter school's discretion. A student eligible for an enrollment preferencethat is denied the enrollment preference because the charter school hasexceeded the number of enrollment preferences allowed must be permitted toparticipate in any enrollment lottery held by the school for the year theenrollment preference is denied;(e) may, in the case of a charter schooldesignated as an Alternative Education Campus, pursuant to Section 59-40-111,mission-aligned preference may be given to educationally disadvantaged studentsas specifically defined in their charter and charter contract approved by theirauthorizer and as allowed by ESSA;(f) may, if a charter school is locatedon a federal military installation or base where the appropriate authoritieshave made buildings, facilities, and grounds on the installation or baseavailable for use by the charter school as its principal location, giveenrollment priority to otherwise eligible students who are dependents ofmilitary personnel living in military housing on the base or installation orwho are currently stationed at the base or installation not to exceed fiftypercent of the total enrollment of the charter school. This priority is inaddition to the other priorities provided by this item, but no child may becounted more than once for purposes of determining the percentage makeup ofeach priority;(9)(14) must consist of a board of directors of seven or moreindividuals with the exact number specified in or fixed in accordance with thebylaws. Members of a board of directors may serve a term of two years, and mayserve additional terms. The charter school's bylaws shallrequire staggered terms for board members with an election for two or moreboard positions occurring every two years. A choiceof the membership of the board must take place every two years. Fiftypercent of the members of the board as specified by the bylaws must beindividuals who have a background in K-12 education or in business, and thebylaws of the charter school also must provide for the manner of selection ofthese members. In addition, at least fifty percent of the members of the boardas specified by the bylaws must be elected by the employees and the parents orguardians of students enrolled in the charter schoolschools governed by the board. Parentsor guardiansOne parent or guardian of each studentshall be designated to cast haveone vote per open board seat in the election foreach student they have enrolled in the charterschool. Employees of the charter school shall have onevote per open board seat. Employees who also have at least one child enrolledin the school shall retain their vote as an employee and may also be designatedto cast votes in the same manner as other parents. All members must beresidents of the State of South Carolina. A person who has been convicted of afelony must not be elected to a board of directors. If the board of directorsconsists of an odd number of members, the extra member must be an individual whohas a background in K-12 education or in business. Noticeof the election must be posted on its website at least thirty days in advanceof the election;(10)(15) must be subject to theFreedom of Information Act, including the charter school and its governingbody. A board of directors of a charter school shall notify its sponsor authorizer of anyregular meeting of the board at least forty-eight hours prior to the date onwhich it is to occur;(11)(16) must be subject to theethics and government accountability requirements for public members and publicemployees as contained in Chapter 13, Title 8. For purposes of this subsection,members of the charter school boards are considered publicmembers and employees of the charter school board,including individuals assigned to charter schools who are employed bymanagement organizations, are considered public employees. The chartercontract in accordance with Section 59-40-60(B) must contain a statement ofassurance of ethical compliance on behalf of the school.;(17) must notify and provide acopy of any executed or amended management organization contracts to theauthorizer. All management organization contracts must also be posted in aprominent location on its website;(18) must collect, maintain, and makeavailable to its authorizer the following information concerning the operationand management of the charter school:(a) a list of members currently servingon the board of the charter school, including name, address, and term ofoffice;(b) copies of policies approved by theboard of the charter school;(c) board of the charter school meetingminutes and agendas;(d) annual financial reports, includinga copy of audited financial statements of the charter school;(e) a copy of the budget approved by theboard of the charter school with any amendments;(f) all health and safety reports andcertificates, including those related to fire safety, environmental matters,asbestos inspection, boiler inspection, and food service; and(g) any management letters issued aspart of the annual financial audit;(19) must post on the school's websitethe most recent version of the school's bylaws and board policies, includingbut not limited to the policies and procedures pursuant to Section59-40-60(F)(13) and (14).SECTION 3. Section 59-40-55 of the S.C. Code is amended to read:Section59-40-55. (A) In order to promotethe quality of charter school outcomes and oversight, the charterschool sponsor shall adopt national industry standards of quality charterschools and shall authorize and implement practicesDepartment of Education shall establish and implement policies, procedures, andpractices to ensure quality authorizing, good governance and accountabilitythat clearly define the roles and responsibilities of the authorizer consistentwith state law. consistent with those standards.(B) Acharter school sponsor authorizershall:(1)may approve charter applications pursuant to Section 59-40-60 that meet the requirementsspecified in Sections 59-40-50 and 59-40-60 except thatinstitutions of higher learning authorizers may choose to only approve thosecharter applications that meet the requirements of this chapter and align withthe mission and strategic plan of the institution of higher learning authorizer;(2)must decline to approve charter applicationsaccording to Section 59-40-70(C) or an applicationsubmitted by a charter school whose applicant is also a member of the StateBoard of Education, the Education Oversight Committee, or a local schooldistrict board of trustees;(3)must negotiate and execute sound charter contractswith each approved charter school including but notlimited to specific outcome-based expectations concerning academics,operations, governance, and finance based on the school's charter contract;(4)must monitor, in accordance with charter contractterms, the performance and legal/fiscal compliance of charter schools with charter-specific state law, Department of Educationpolicies, procedures, and practices and policies adopted by the authorizer'sgoverning board including, but not limited to,include collecting and analyzing data to supportongoing evaluation according to the charter contract;(5)must conduct or require oversight activities thatenable the sponsor authorizer tofulfill its responsibilities outlined in this chapter, including conductingappropriate inquiries and investigations, only if those activities areconsistent with the intent of this chapter, adhere to the terms of the chartercontact, and do not unduly inhibit the autonomy granted to public charterschools;(6)must collect, in accordance with Section59-40-140(H), an annual report from each of its sponsored authorized charter schools and submit the reports to the Department of Educationthe report on the academic and financial performance of each ofits authorized charter schools and authorizers performance to the State Boardof Education in a format prescribed by the Department of Education before Januarythirtieth;(7)must notify the charter school in writing of perceived problemsnoncompliance if itswith the school's performance orlegal compliance appears to be unsatisfactorycharteror contract and provide reasonable opportunity for the school to remedythe problem, unless the problem warrants revocation and revocation timeframesapply. ;The school shall have up to thirty calendar days to respond, inwriting, describing how the issue will be remedied. If the problem warrantsrevocation, then the authorizer shall notify the school in writing and providea copy to the State Superintendent of Education at the same time the school isnotified and revocation timeframes apply;(8)must develop a corrective action plan and takeappropriate corrective actions or exercise sanctions short of revocation inresponse to apparent deficiencies as documented pursuantto item (7) in charter school performance or legal compliance. If the corrective action plan or corrective actions relate tospecial education services, then the authorizer shall provide a copy of theletter denoting the deficiencies and the corrective action plan to theDepartment of Education. These actions or sanctions may includerequiring a the schoolto develop and execute a the correctiveaction plan within a specified timeframe;(9)must determine whether each charter contract meritsrenewal, nonrenewal, or revocation;(10)must provide to parents and the general publicinformation about charter schools authorized by the sponsorauthorizer as an enrollment option withinthe district in which the charter school is located to the same extent andthrough the same means as the district in which the charter school is locatedprovides and publicizes information about all public schools in the district. Acharter school shall notify its sponsor authorizer of its enrollment procedures and dates of itsenrollment period no less than sixty days before the first day of itsenrollment period; and(11)must permanently close any charter school at theconclusion of the school year after receiving the lowest performance levelrating as defined by the state federal accountability system for three consecutive yearsin accordance with Section 59-40-110(E)(H); however, the first year of a school's operation shall beexcluded for purposes of this section;(12) must, within thirty days ofsubmission or execution to the authorizer, post in a prominent location on itswebsite all charter school applications, renewal applications, and anymanagement organization contracts associated with the charter schools;(13) must post in a prominentlocation on its website their budget as an authorizer, including revenues,source of revenue, and expenditures. If the authorizer has charged fees to acharter school for services, then those fees must be listed by individualschool;(14) must review and notify thecharter schools of any noncompliance related to management organization contracts;(15) must be subject to the ethics andgovernment accountability requirements for public members and public employeesin Chapter 13, Title 8. For purposes of this subsection, members of theauthorizer's governing boards are considered public members, and employees ofthe authorizer's governing board are considered public employees;(16) must be subject to Section11-35-5340 of the South Carolina Consolidated Procurement Code or implements aprocurement code which, in the written opinion of the Division of ProcurementServices of the State Fiscal Accountability Authority, is substantially similarto the provisions and purposes of the South Carolina Consolidated ProcurementCode;(17) must be subject to audits by theLegislative Audit Council. For the purpose of carrying out its audit duties,the Legislative Audit Council shall have access to the records and facilitiesof each authorizer during the authorizer's normal operating hours, and eachauthorizer must produce records requested by the Legislative Audit Council. Theprovisions contained in Chapter 15, Title 2, related to the Legislative AuditCouncil shall apply to audits conducted pursuant to this section;(18) must review and monitor theimplementation of enrollment procedures submitted by the charter schoolpursuant to Section 59-40-50(B)(12) to ensure compliance with the admissionrequirements established pursuant to Sections 59-40-50(B)(12) and (13);(19) must be subject to the SouthCarolina Freedom of Information Act; and(20) must not receive commissions,rebates, or financial incentives related to insurance products purchased by thecharter school.(C)(1) The South Carolina Public CharterSchool District may retain no more than two percent of the total stateappropriations for each charter school it authorizes to cover the costs foroverseeing its charter schools.A statewideauthorizer shall only retain or contract to retain two percent of the totalstate allocation distributed to charter schools, as appropriated annuallythrough the state appropriations process, for each charter school it authorizesfor the purpose of carrying out its oversight and administrativeresponsibilities. With approval by the Department of Education, an authorizermay offer additional services related to charter school operations to charterschools it sponsorsauthorizes,however the charter school shall be under no obligation to purchase thoseservices from the authorizer. A charter school may not be penalized or have itscharter revoked based upon their failure to purchase offered services from theauthorizer. A charter authorizer offering such services shall post a list ofthose services and the cost of the service in a prominent place on theauthorizer's website. The sponsor's administrativefee amount retained by the authorizer doesnot include costs incurred in delivering services that a charter school maypurchase at its discretion from the sponsorauthorizer. The sponsor's fee is notapplicable to federal money or grants received by the charter school. The amount authorizers may claim for administration of federalfunded programs or grants is subject to the terms and conditions of the federalprogram or grant. The sponsor authorizer shall use its funding provided pursuant tothis section exclusively for the purpose of fulfilling sponsorauthorizer obligations in accordance withthis chapter.(2)(a)If the Department of Education determines an authorizer has violated thisprovision, a written notice of the alleged violation shall be provided to theauthorizer. The authorizer shall have thirty calendar days from receipt of thenotice to submit documentation and any other relevant evidence demonstratingthe authorizer is in compliance with this provision. Upon a determination bythe Department of Education that a violation has occurred, the StateSuperintendent of Education may:(i) order reimbursement of improperlycharged amounts to the charter schools;(ii) revoke the authorizer's authorityto charter or authorize schools, and all schools may apply to transfer to adifferent authorizer using to the process established by the Department ofEducation pursuant to Section 59-40-55(D); or(iii) order other appropriate relief.(b) The authorizer may file an appealwith the State Board of Education within thirty days of the decision by theState Superintendent of Education to revoke an authorizer's authority toauthorize schools. After an appeal is filed, the State Board of Education musthold a public hearing regarding the appeal within fourteen days. All appealsfrom the State Board of Education's decisions to terminate a public orindependent institution of higher learning authorizer registration shall bemade to the Administrative Law Court. The authorizer shall not demand orwithhold any unspent appropriated funds held by or owed to a charter schoolthat is transferring under the provisions of this section and may not chargefees associated with the school moving to another authorizer.(c) A charter school authorizer, or anentity affiliated with or owned or created by an authorizer, is prohibitedfrom:(i) contracting with schools orotherwise selling services to schools over which the authorizer has directoversight, such as financial services;(ii) using its authority or position asauthorizer to influence, induce, or attempt to influence or induce, a charterschool to contract for additional services provided by the authorizer;(iii) using authority or position asan authorizer to unfairly compete with any private entity or enterpriseoffering similar services to charter schools;(iv) using state funds, including anyfunds retained under Section 59-40-55(C)(1), to fund, market, or promote anyadditional contracted services offered to charter schools in exchange for afee;(v) contracting with a charter school toprovide services necessary to remedy any alleged noncompliance with the termsof the charter contract or applicable law;(vi) utilizing state funds, includingany funds retained under Section 59-40-55(C)(1), for any purpose not directlyrelated to fulfilling its obligations as an authorizer under this Chapter andpursuant to any other state law or regulation;(vii) receiving direct or indirectcompensation from any contract entered into by a school it authorizes and athird party; however, nothing in this section shall prohibit an authorizer fromleasing a building, or providing food service or transportation, to schools itauthorizes; and(viii) conditioning approval,renewal, or evaluation outcomes on the purchase of any goods or services.(d) The Department of Education shallterminate approval of any authorizer that is found by either the department ora court to have violated the requirements of this section or the requirementsof Chapter 13 of Title 8.(D) The Department of Educationshall conduct annual reviews aligned to the current state school districtaccreditation timeline, to monitor and evaluate the performance of all charterschool authorizers, informed by the annual report provided for in this section.The review process must include an examination of how authorizers meetstandards and practices, an evaluation of each authorizer's charter school'sperformance, and review of each authorizer's record of renewal, revocation, andauthorization decisions. In addition, the Department of Education shallestablish a process for receiving and reviewing complaints regarding charterschools and authorizers. These reports shall be considered in its annualreviews. The Department of Education shall issue notices of concern, inwriting, to the authorizer that must include descriptions of all performanceconcerns and establish a timeline by which the authorizer must correct anyissues or deficiencies. In the case of a public or independent institution ofhigher learning authorizer repeatedly failing to meet one or more of therequirements contained in subsection (B) over a period of three years, theDepartment of Education may terminate a charter school authorizer'sregistration. The State Board of Education shall allow a public or independentinstitution of higher learning authorizer the opportunity to have a hearing beforeregistration termination. All appeals from the State Board of Education'sdecisions to terminate a public or independent institution of higher learningauthorizer registration shall be made to the Administrative Law Court. If apublic or independent institution of higher learning authorizer's registrationis terminated, the Department of Education shall develop a streamlined transferapplication for charter schools to apply to a new authorizer for the remainderof the charter school's contract term; however, if no new authorizer agrees tothe transfer request, the charter school must close. The Department ofEducation shall create an authorizer closure protocol to be fully implementedwithin 180 days of the closure of the public or independent institution ofhigher learning affiliated with an authorizer, a timeline, and an applicationprocess for the transfer of any charter schools by a new authorizer. Operatingcharter schools shall not be required to resubmit a full application unless thenew authorizer specifically identifies an area of concern. New charter schoolsunder contract may be required to submit a full application by the newauthorizer.SECTION 4. Section 59-40-60(F) of the S.C. Code is amended toread:(F) The charter school application,based on an application template with compliance guidelines developed by the State Department of Education, must include:(1)an executive summary, not to exceed two pages;(2)the mission statement of the charter school, which must be consistent with theprinciples of the General Assembly's purposes pursuant to Section 59-40-20;(3)the measurable goals, objectives, and academicperformance standards to be achieved by the charter school, and a descriptionof the charter school's admission policies and procedures;(4)evidence that an adequate number of parents or legal guardians with studentseligible to attend the proposed school pursuant to Section 59-40-50 support theformation of a charter school and justify the projected per pupil allocation inthe application budget;(5)a description of the charter school's educational program, including how itwill meet or exceed the academic performance standards and expectations,including academic standards adopted by the State Board of Education and howthe instructional design, learning environment, class size and structure, school calendar, scheduling flexibility, use of virtualinstruction, curriculum, and teaching methods enable each pupil toachieve these standards;(6)a description of the charter school's plan for evaluating pupil achievement andprogress toward accomplishment of the school's achievement standards inaddition to state assessments, the timeline for meeting these standards, andthe procedures for taking corrective action if that pupil achievement fallsbelow the standards;(7)evidence that the plan for the charter school is economically sound, a proposedbudget to start the charter school and a proposed budget forthe entire contractual term of the charter, adescription of the manner in which an annual audit of the financial andadministrative operations of the charter school, including any servicesprovided by the sponsorauthorizer,is to be conducted;(8)a description of the governance and operation of the charter school, includinga detailed school start-up plan, resumes and background information on thecharter committee members, the capacity and experience of the school leadershipand management team, any involvement with the replication of existingsuccessful public charter schools, any proposed managementcompany or educational service provider responsibilities, any proposed management organization, and the nature andextent of parental, professional educator, and community involvement in thegovernance and operation of the charter school;(9)a description of how the charter school plans to ensurethat the enrollment of the school is similar to the racial composition of thelocal school district in which the charter school is to be located or thetargeted student population of the local school district that the charterschool proposes to serve and provide assurance that the school does notconflict with any school district desegregation plan or order in effect for theschool district in which the charter school is to be located conduct community outreach to ensure all members of thecommunity are aware of the school and have an opportunity to enroll;(10)a description of how the charter school plans to meet thetransportation needs of its pupilstransportationservices to be provided, if any;(11)if available, a description of the school location by address, or, at a minimum, zip code, theschool building, other facilities, andequipment and how they shall be obtained. If thisinformation is not yet available, it shall be updated as soon as facilities aresecured;(12)an explanation of the employment relationship thatshall exist between the proposed charter school, or itsmanagement organization, and its employees,the administration, faculty, and staff of the charter school,including a staffing chart aligned with the budget and student enrollmentprojections, and descriptions of evaluationprocedures, and evidence that the terms and conditions ofemployment have been addressed with affected employees;(13)a description of a reasonable grievance and termination procedure for teachers employed by the school or employed by the school'smanagement organization, as required by this chapter, including noticeand a hearing before the governing body of the charter school. The applicationmust state whether or not the provisions of Article 5, Chapter 25, Title 59apply to the employment and dismissal of teachers at the charter school;(14)a description of student rights and responsibilities, including attendance, behavior and discipline standards, and areasonable hearing procedure, including notice and a hearing before the boardof directors of the charter school before expulsion;(15)an assumption of liability by the charter school for the activities of thecharter school and an agreement that the charter school must indemnify and holdharmless the sponsorauthorizer,its servants, agents, and employees, from any and all liability, damage,expense, causes of action, suits, claims, or judgments arising from injury topersons or property or otherwise which arises out of the act, failure to act, employment practices, or negligence of the charterschool, its agents and employees, in connection with or arising out of theactivity of the charter school; and(16)a description of the types and amounts of insurance coverage to be obtained bythe charter school.;(17) a copy of any proposedmanagement organization contracts contemplated by the charter school. Thecontract must include a term sheet that sets forth the length of the contract,the roles and responsibilities of the governing board of the charter school,the staff of the charter school, the staff of the management organization, thescope of services and resources to be provided by the management organization,the performance evaluation measures and timelines, the compensation structure,including clear identification of all fees to be paid to the managementorganization, the methods of contract oversight and enforcement, the conditionsof renewal and termination of the contract and assurances that the governingboard of the charter school, at all times, maintains independent fiduciaryoversight and authority over the school budget and ultimate responsibility forthe school's performance. The contract shall not allow profit-sharing with theauthorizer or any affiliated entity;(18) evidence the applicant has filedthe appropriate documents to be organized as a nonprofit corporation underSouth Carolina Law;(19) a statement of assurances for theapplicant to execute affirming the applicant understands and agrees to performthe essential responsibilities and obligations of a charter school;(20) in the case of a proposed charterschool using a virtual learning model as its primary mode of deliveringinstruction, the application must include information regarding the followingrequirements to be performed by the charter school's board:(a) The requirement that the charterschool's board offer a student orientation and notify the parent or guardian ofeach enrolled student of the requirement to participate, and that each studentcomplete the orientation before participating in any instructional activity.(b) The requirement that the board adopta policy addressing a student's failure to participate in instructionalopportunities. The policy must provide that a student is subject toconsequences, which may include disenrollment, if both of the following conditionsare met:(i) after the student's parent orguardian receives written notice, the student fails to comply with the policywithin a reasonable period specified by the school; and(ii) intervention strategies outlinedin the policy fail to result in the student's consistent participation ininstructional activities.(c) The requirement that the policyadopted pursuant to subitem (b) provides, if a student is disenrolled pursuantto this policy, the school shall:(i) notify the parent or guardian inwriting of the obligation to enroll the student in a school in accordance withstate law;(ii) initiate the transfer of thestudent to the district of residence;(iii) request that the parent orguardian provide the name of the school, and, if applicable, the district inwhich the student will enroll; and(iv) coordinate directly with thereceiving school or district to transfer student records and any otherdocumentation necessary to support appropriate educational placement.(d) For purposes of this item"instructional opportunities" means classroom-based or non-classroom-basedactivities a student is expected to complete, participate in, or attend duringa school day including, but not limited to:(i) logging into online curriculum orprograms;(ii) completing offline activities;(iii) completing assignmentsassociated with a program, curriculum, or course;(iv) testing;(v) participating in face-to-facemeetings with school staff or service providers;(vi) participating in telephone orvideo conferences with school staff or service providers; and(vii) engaging in other documentedcommunications with school staff or service providers related to curriculum orprograms.(H) Prior to November 1, 2026, theDepartment of Education shall develop a separate application for replication toencourage creation of additional charter schools that fulfill the purpose andmission of this chapter. The application for replication must focus onsubmission of data and information to demonstrate the prior record of theexisting school and how such record will be repeated at the replicated school.No school that has received an overall rating of less than "Average" on theSouth Carolina School Report Card at any time during the preceding three yearsshall be eligible to apply for replication. An existing charter school thatseeks to expand operations to a location situated more than one mile from itsoriginal campus shall apply for replication in accordance with this sectionThis provision does not apply to a charter school that is relocating its entireoperations from one facility to another.SECTION 5. Section 59-40-65 of the S.C. Code is amended to read:Section59-40-65. (A) Asused in this section:(1) "Online, virtual, orcomputer instruction" means delivery of academic instruction over the internetusing electronic devices to students who are not required to be at a specificphysical location to receive instruction.(2) "Synchronous instruction" meansvirtual instruction in which the instructor is able to interact with studentsin real time and during a scheduled time-period when the instructor and studentboth must be online for the student to be counted as present.(3) "Asynchronous instruction" meansvirtual instruction in which the instructor is not able to interact withstudents in real time and may include recorded lessons or lectures and otheron-demand instruction when the teacher and student are not required to beonline at the same specified time.(B) If the governing body of acharter school offers as part of its curriculum a program of online or computer virtual instruction,this information pursuant toSection 59-40-60(F)(20) shall be included in the application and thegoverning body shall be required to:(1)provide each student enrolled in the program with a course or courses of onlineor computer instruction approved by the charter school's sponsorauthorizer that must meet or exceed theSouth Carolina content and grade-specific standards. Students enrolled in theprogram of online or computer instruction must receive all instructionalmaterials required for the student's program;(2)ensure that the persons who operate the program on a day-to-day basis complywith and carry out all applicable requirements, statutes, regulations, rules,and policies of the charter school;(3)ensure that each course offered through the program is taught by a teachermeeting the requirements of Section 59-40-50;(4)ensure that a parent or legal guardian of each student verifies the number ofhours of educational activities completed by the student each school year;(5)adopt a plan by which it will provide:(a)frequent, ongoing monitoring to ensure and verify that each student isparticipating in the program, including proctored assessment(s) per each semester in coresubjects graded or evaluated by the teacher, and at least bi-weeklyparent-teacher conferences in person or by telephone;(b)regular instructional opportunities in real time that are directly related tothe school's curricular objectives, including, but not limited to, meetingswith teachers and educational field trips and outings;(c)verification of ongoing student attendance in the program;(d)verification of ongoing student progress and performance in each course asdocumented by ongoing assessments and examples of student coursework;(6)administer to all students in a proctored setting all applicable assessments asrequired by the South Carolina Education Accountability Act.(B)Nothing in this section shall prohibit a charter school that provides a programof online or computer instruction from reimbursing families of enrolledstudents for costs associated with their Internet connection for use in theprogram.(C) Acharter school shall provide no more than seventy-five percent of a student'score academic instruction in kindergarten through twelfth grade via an onlineor computer instruction program. The twenty-five percent of the student's coreacademic instruction may be met through the regular instructional opportunitiesoutlined in subitem (A)(5)(b).(D)Charter school students may enroll in the Department of Education's virtualeducation program pursuant to program requirements.(E)Private or homeschool students choosing to take courses from a virtual charterschool may not be provided instructional materials, or any other materialsassociated with receiving instruction through a program of online or computerinstruction at the state's expense.(F)Only students enrolled in the charter school as a full-time student shall bereported in the charter school's average daily membership to the State Department of Education for the purposes ofreceiving state or federal funds. Private and homeschool students may not beincluded in the student weighted pupil units or average daily membershipreported to the State Department of Education forthe purposes of receiving state or federal funds.(G) A virtual school shall ensure thefollowing:(1) Students have daily access toteachers during the instructional day for live teaching, tutoring,conferencing, and intervention;(2) Students are able to accesssynchronous instructional opportunities appropriate to grade level and courseneeds on each of the student's instructional days if necessary;(3) Student attendance and participationmay be demonstrated through a combination of participation in live sessions,completion of assigned coursework, communication with teachers, measurableacademic progress, assessments, or other documented engagement measures; and(4) Asynchronous instruction may includerecorded lessons, adaptive learning platforms, guided independent work, digitalcurriculum, and other teacher-assigned learning tasks.SECTION 6. Section 59-40-70 of the S.C. Code is amended to read:Section59-40-70. (A)(1) An applicant shallsubmit a letter of intent at least ninety days before submitting an applicationto the board of trustees or area commission from which itis seeking sponsorship and a copy to the South Carolina Department of Educationto the authorizer or authorizers from which it is seekingauthorization and within the same school year to which it intends to apply. Acopy of the letter must also be submitted to the Department of Education.(2)An applicant shall submit the application to the board of trustees or areacommission from which it is seeking sponsorship and one copy to the South Carolina Department of Education. In the case ofthe South Carolina Public Charter School District or a public or independentinstitution of higher learning sponsorauthorizer, the applicant shall provide notice of theapplication to the local school board of trustees in which the charter schoolwill be located for informational purposes only. The schooldistrict or the public or independent institution of higher learningauthorizer from which the applicant is seeking sponsorship authorization mayrequest clarifying information from the applicant. The StateDepartment of Education shall provide guidance on compliance to both sponsors the authorizer andapplicants.(3)The applicant shall notify the local delegation of a county in which a proposedcharter school is to be located upon submission of a charter school applicationand also shall provide a copy of the charter school application upon request bya member of the local delegation.(4) The Department of Education shallpost for each application cycle a list of all applicants including the name ofthe proposed charter school, the name of the proposed authorizer, and the areain which the proposed charter school will be located.(B)(1) The board of trustees or areacommission from which the applicant shall presentits application at a public hearing and the authorizer from which the applicantis seeking sponsorshipauthorizationshall rule on the application for a charter school in a public hearing, uponreasonable public notice, within no more than ninety days after receiving the application.If there is no ruling within ninety days, the application is considered conditionally approved pendingcorrection by the applicant of any identified deficiencies in the applicationand submitted to the authorizer within thirty days of conditional approval.OnceIf the application has beenis approved by the board of trustees or area commissionauthorizer,the charter school may open at the beginning of the following year upon completion of a planning year. However, before acharter school may open, the charter school must meet thepre-opening conditions included in the charter contract and the State Department of Education shall verify the accuracyof the financial data for the school within forty-five days after approval.(2) At least ten business days prior toan applicant's public meeting, the authorizer must provide the applicant withwritten notice of their public meeting, which must contain the date, location,and time of the meeting. At least five business days prior to the publicmeeting, the authorizer must provide the applicant with a written evaluationreport using the rubric aligned with the Department of Education applicationand any published authorizer evaluation criteria.(3) At least two business days prior toan applicant's public meeting, the applicant must provide the authorizer withany rebuttal material the applicant intends to present at the meeting.(C) Aboard of trustees or area commission shall deny an application only if theapplication does not meet the requirements specified in Section 59-40-50 or59-40-60, fails to meet the spirit and intent of thischapter, or adversely affects, as defined in regulation, the other students inthe district in which the charter school is to be located, or if, basedon the totality of information provided by the applicant, the board of trusteesor area commission determines that the applicant has failed to demonstrate asubstantial likelihood that it has the capacity to establish a viable school. based on national industrystandards of quality charter school authorization. It shall provide,within ten days, a written explanation of the reasons for denial, citingspecific standards related to provisions of Section 59-40-50 or 59-40-60 thatthe application violates. This written explanation immediately must be sent tothe charter committee and filed with the State Board of Education.(D) In the event that theracial composition of an applicant's or charter school's enrollment differsfrom the enrollment of the local school district in which the charter school isto be located or the targeted student population of the local school districtby more than twenty percent, despite its best efforts, the board of trustees orarea commission from which the applicant is seeking sponsorship shall considerthe applicant's or the charter school's recruitment efforts and racialcomposition of the applicant pool in determining whether the applicant orcharter school is operating in a nondiscriminatory manner. A finding by theboard of trustees or area commission that the applicant or charter school isoperating in a racially discriminatory manner justifies the denial of a charterschool application or the revocation of a charter as provided in this sectionor in Section 59-40-110, as may be applicable. A finding by the board oftrustees or area commission that the applicant is not operating in a raciallydiscriminatory manner justifies approval of the charter without regard to theracial percentage requirement if the application is acceptable in all otheraspects.(D) If the board of trustees or area commissionfrom which the applicant is seeking sponsorship authorization denies a charter school application, thecharter applicant may appeal the denial to the Administrative Law Courtpursuant to Section 59-40-90.(E)If the board of trustees or area commission approves the application, itbecomes the charter school's sponsor authorizer and shall sign the approved application. The sponsor authorizer shallsubmit a copy of the charter contract to the State Board of Education.(G) If a local school boardof trustees has information that an approved application by the South CarolinaPublic Charter School District or a public or independent institution of higherlearning sponsor adversely affects the other students in its district, asdefined in regulation, or that the approval of the application fails to meetthe spirit and intent of this chapter, the local school board of trustees mayappeal the granting of the charter to the Administrative Law Court. TheAdministrative Law Court, within forty-five days, may affirm or reverse theapplication for action by the South Carolina Public Charter School District orthe public or independent institution of higher learning in accordance with anorder of the state board.SECTION 7. Section 59-40-75 of the S.C. Code is amended to read:Section59-40-75. (A) A member of the South Carolina Public Charter School District or of thegoverning board or sponsor of the charter schoolthegoverning board of an authorizer or a charter school who is indicted inany court for any crime, or has waived the indictment if permitted by law, maybe suspended by the Governor, who shall appoint another in his stead until heis acquitted or the charges are dismissed. In caseof conviction, the office must be declared vacant by the Governor and thevacancy filled as provided by lawin the same manner as provided for full-term appointments.(B)Notwithstanding another provision of law to the contrary, membersof a charter school board of directorsmembers of anauthorizer or charter school governing board who wilfully commit orengage in an act of malfeasance, misfeasance, chronicunexcused absenteeism, conflicts of interest, misconduct, or persistentneglect of duty in office, or are deemed medically incompetentor medically incapacitated, maybe removed from officemust be subject to removalby the Governor upon any of the forgoing causes being made to appear to the satisfaction of the Governor. Beforeremoving any such the officer,the Governor shall inform him in writing of the specific charges broughtagainst him and give him an opportunity on reasonable notice to be heard.Vacancies occurring in the membership of any board ofdirectorsgoverning board as a result ofremoval pursuant to this subsection must be filled in the manner provided inthe charter school's bylawssamemanner as provided for full-term appointments.(C)Whenever it appears to the satisfaction of the Governor that probable causeexists to charge a member of the South Carolina PublicCharter School District or of the governing board of an authorizer or a the charterschool who has the custody of public or trust funds with embezzlement or theappropriation of public or trust funds to private use, then the Governor shalldirect his immediate prosecution by the proper officer.(D)(1) An individual is prohibited fromserving as a member of the governing board or employee of either a charterschool or charter school authorizer if the individual or an immediate familymember is a full or part owner or principal with an entity with whom thecharter school or authorizer contracts, directly or indirectly, forprofessional services, management organization services, goods, or facilitiesor is an employee of the charter school authorizer.(2) An individual is prohibited fromserving as a member of the governing board of either a charter school orcharter school authorizer if the individual or an immediate family member is afull or part owner, principal owner, or employee of a management organization.(3) An individual is prohibited fromserving as a board member of a charter school or a charter school foundation ifthe individual or an immediate family member is a board member of the charterschool's authorizer or the institution of higher learning.(4) Members of the General Assembly andimmediate family members are prohibited from serving as a board member foreither an authorizer or a charter school and may not have any ownership in anentity that is established to operate or lease property to a charter school.(E)(1) An individual is prohibited fromemployment by an authorizer of a charter school, if the individual or animmediate family member is employed in a position to exercise direct financialdecision-making authority with a charter school authorized by the authorizer.(2) For the purpose of thissection, immediate family member means a child, a spouse, or an individualclaimed by the individual as a dependent for income tax purposes.(F) An individual may not servesimultaneously as a member of more than one governing board of either a charterschool or a charter school authorizer after December 31, 2026.SECTION 8. Section 59-40-90 of the S.C. Code is amended to read:Section59-40-90. A final decision of the school district or apublic or independent institution of higher learning sponsor may be appealed byany party to the Administrative Law Court as provided in Sections 1-23-380(B)and 1-23-600(D).An appeal of any final decisionmade by an authorizer pursuant to this chapter must be made to theAdministrative Law Court.SECTION 9. Section 59-40-110 of the S.C. Code is amended to read:Section59-40-110. (A) A charter must beapproved or renewed for a period of ten school years; however,the charter only may be revoked or not renewed under the provisions ofsubsection (C)(F) ofthis section. The sponsor authorizerannually shall evaluate the conditions outlined in subsection (C)(F). The annual evaluationresults must be used in making a determination for nonrenewal or revocation.(B) Prior to the beginning of thesecond to last year of operation of a charter school, the authorizer may issuea charter school performance report and charter renewal application guidance tothe school and the charter school board. The performance report shall summarizethe performance record to date of the charter school, based on the datarequired by this chapter and the charter contract and taking into considerationthe percentage of at-risk students enrolled in the school, and shall providenotice of any weaknesses or concerns perceived by the authorizer concerning thecharter school that may jeopardize its position in seeking renewal if nottimely rectified. The charter school shall have forty-five days to respond tothe performance report and submit any corrections or clarifications to the report.(C) Prior to the beginning of the lastyear of operation of a charter school, the charter school may apply for renewalof the contract with the authorizer. The renewal application guidance shall, ata minimum, provide an opportunity for the charter school to:(1) present additional evidence, beyondthe data contained in the performance report, supporting its case for charterrenewal;(2) describe improvements undertaken orplanned for the school; and(3) detail the plan for the nextcharter term for the school.(D) The renewal application guidanceshall include or refer explicitly to the criteria that will guide the renewaldecisions of the authorizer.(B)(E) A charter renewal application mustbe submitted to the school's sponsor one hundred twenty calendar days beforethe end of the school year for the term of the charter contract, and it mustcontain:(1)a report on the progress of the charter school in achieving the goals,objectives, pupil achievement standards, and other terms of the initiallyapproved charter application;(2)a financial statement that discloses the costs of administration, instruction,and other spending categories for the charter school that is understandable tothe general public and that allows comparison of these costs to other schoolsor other comparable organizations, in a format required by the State Board ofEducation; and(3)any proposed material changes to the current charter or charter school contractto be implemented in the next ten-year charter term.(C)(F) A charter must may be revoked or not renewed by the sponsor authorizer if it, using data that is accessible to the school, determinesthat the charter school:(1)committed a material violation of the conditions, standards, performanceexpectations, or procedures provided for in the charter application or charterschool contract, or both, and the charter school failed tocure the violation after written notice and a reasonable opportunity to cure;(2)failed to meet the academic performance standards and expectations as definedin the charter application or charter school contract, or both;(3)failed to maintain its books and records according to generally acceptedaccounting principles or failed to create an appropriate system of internalcontrol, or both; or(4)materially violated any provision of law from whichthe charter school was not specifically exempted andfailed to cure the violation after written notice and a reasonable opportunityto cure.(D)(G) A sponsor An authorizer summarily may revoke any charter schoolthat is determined by the sponsor authorizer to pose an imminent threat of harm to thehealth or safety of students, or both, based on documented and clear andconvincing data.(E)(H) Any charter school shall automatically and permanentlyclose at the conclusion of the school year in which the school first becomessubject to automatic closure for receiving the lowest performance level ratingas defined by the federal stateaccountability system for three consecutive years beginning with studentachievement data from the 2013-2014 school year. The determination of closureis considered final. Automatic closure shall not apply to any charter schoolserving fifty percent or more students with disabilities or any charter schooldesignated as an Alternative Education Campus (AEC) by its sponsor authorizer asoutlined in Section 59-40-111.(F)(I) An authorizer must adopt apublicly accessible and transparent process should it intend to not renew orterminate a charter school. At a minimum, the authorizer must:(1) At least sixty ninety days before notrenewing or terminating a charter school, the sponsorshall notify in writing the charter school's governing body of theproposed action. The notification shall state the grounds for the proposedaction in reasonable detail. Termination must follow theprocedure provided for in this section.(2) provide the charter school withfifteen calendar days from the school's receipt of the notice in which toprepare a response, which shall include any supporting documentation, in theschool's discretion;(3) provide the charter school with anopportunity to submit documents and give testimony in a public hearingchallenging the rationale for closure and in support of the continuation of theschool at an orderly proceeding held for that purpose between fifteen andthirty calendar days after the school submits its response pursuant to item(2), and at such hearing, the school must be permitted to record theproceedings and be allowed access to legal representation to call witnesses;and(4) within five calendar days of thepublic hearing, require a final determination to be made and conveyed inwriting to the charter school.(G)(J) The existence of another charter granting authoritymust not be grounds for the nonrenewal or revocation of a charter. Grounds fornonrenewal or revocation must be only those specified of this section.(H) The charter school'sgoverning body may request in writing a hearing before the sponsor withinfourteen days of receiving notice of nonrenewal or termination of the charter.Failure by the school's governing body to make a written request for a hearingwithin fourteen days must be treated as acquiescence to the proposed action.Upon receiving a timely written request for a hearing, the sponsor shall givereasonable notice to the school's governing body of the hearing date. Thesponsor shall conduct a hearing before taking final action. The sponsor shalltake final action to renew or not renew a charter by the last day of classes inthe last school year for which the charter school is authorized.(I)(K) A charter school seeking renewal may submit a renewalapplication to another charter granting authority if the charter school has notcommitted a material violation of the provisions specified in this section andthe sponsor authorizer refusesto renew the charter. In such cases the charter school shall continue toreceive local funding pursuant to Section 59-40-140(A). However, the charterschool is not eligible to receive one hundred percent of the base student costfrom the State. The charter school only is eligible to receive the percentageof the base student cost previously received as a school in its formerdistrict.(J)(L) A decision to revoke or not to renew a charter schoolmay be appealed to the Administrative Law Court pursuant to the provisions ofSection 59-40-90. Upon appeal to the Administrative Law Court, there is noautomatic stay of the revocation or nonrenewal decision. Pending resolution ofthe appeal, the charter school also may move before the Administrative LawCourt for imposition of a stay of the revocation or nonrenewal on the groundsthat an unusual hardship to the charter school, itsteachers, students, or both, will result from the execution of the sponsor's authorizer's decision.(K)(M) Prior to any public charter school closure, the sponsor authorizer shalldevelop a public charter school closure protocol to ensure timely notificationto parents, orderly transition of students and student records to new schools,and proper disposition of school funds, property, and net assets in accordancewith the requirements of this chapter. The protocol shall specify tasks,timelines, and responsible parties, including delineating the respective dutiesof the school and the sponsorauthorizer.In the event of a public charter school closure for any reason, the sponsor authorizer shalloversee and work with the closing school to ensure a smooth and orderly closureand transition for students and parents, as guided by the closure protocol.SECTION 10. Section 59-40-111 of the S.C. Code is amended to read:Section59-40-111. (A) For purposes of thischapter, an Alternative Education Campus (AEC) is any charter school with anexplicit mission and purpose as outlined in its charter to serve an enrolledstudent population with:(1)severe limitations that preclude appropriate administration of the assessmentsadministered pursuant to federal and state requirements;(2)fifty percent or more of students having Individualized Education Programs(IEPs) in accordance with federal regulations or a demonstrated need forspecific services or specialized instruction as defined in Section 59-40-50,and the school shall provide the needed evidence-based specialized instruction,interventions, services, support, and accommodations based on the needs of thestudents; or(3)eighty-five percent or more of enrolled students meeting the definition of a"high-risk" student including students who:(a)have been adjudicated as juvenile delinquents or who are awaiting dispositionof charges that may result in adjudication;(b)have dropped out of school or who have not been continuously enrolled andregularly attending any school for at least one semester before enrolling inthis school;(c)have been expelled from school or who have engaged in behavior that wouldjustify expulsion;(d)have documented histories of personal drug or alcohol use or who have parentsor guardians with documented dependencies on drugs or alcohol;(e)have documented histories of personal street gang involvement or who haveimmediate family members with documented histories of street gang involvement;(f)have documented histories of child abuse or neglect;(g)have parents or guardians in prison or on parole or probation;(h)have documented histories of domestic violence in the immediate family;(i)have documented histories of repeated school suspensions;(j)are under the age of twenty years who are parents or pregnant women;(k)are homeless, as defined in the McKinney-Vento Homeless Assistance Act; or(l)have a documented history of a serious psychiatric or behavioral disorderincluding, but not limited to, an eating disorder or a history of suicidal orself-injurious behaviors.(B)Such schools must be classified as AECs by their sponsorauthorizer.(C)A high-poverty rating alone shall not qualify any charter school for status asan AEC.(D)Charter school applicants seeking such a designation shall provide sufficientinformation in their charter application to allow the authorizer to make adetermination as to whether that classification applies.(E)Charter schools already in operation may seek AEC classification by petitioningtheir sponsorauthorizer. A charter school that has received the lowest performance levelrating as defined by the state accountability system in any of the threeprevious school years is ineligible to seek AEC classification.(F)Charter schools receiving an AEC designation either before or after opening,shall be held to applicable state and federal accountability standards alongwith the academic performance standards and expectations established by writtenagreement between the sponsor authorizerand the school that takes into account the school's specialized missionand student population with comparisons to any available nationally normed datawith similar subsets of students and is included in their annual report inaccordance with Section 59-40-140(H) and is included in the school report cardcompiled by the Education Oversight Committee.(G) An authorizer shall review acharter school's AEC designation for compliance with subsection (A)(1) through(A)(3) annually before January first and report its findings to the Departmentof Education before February first. If a charter school does not meet therequirements, its AEC designation shall be designated "Under Review" for thefollowing school year, and the school shall submit a compliance improvementplan to its authorizer. If the charter school does not meet the requirementsfor two consecutive school years, its AEC designation shall be revoked for thenext two consecutive school years. A school may reapply for an AEC designationif the school demonstrates compliance with subsection (A)(1) through (A)(3).SECTION 11. Section 59-40-115 of the S.C. Code is amended to read:Section59-40-115. (A) A charter school may voluntarily terminateits charter and contract with asponsorthe authorizer before the expiration of the ten-year term of thecontract if all parties under contract with thecharter school agree to the dissolution. A charter school that terminates itscontract with a sponsor directly may seek application for the length of timeremaining on its original contract from another sponsor.by a majority vote of the charter school board, whichconstitutes a dissolution event of the corporation and the charter school.(B) In order for a charterschool to transfer its charter to another authorizer, its decision to do somust be voted upon during an open session of a public meeting of the charterschool board in accordance with the South Carolina Freedom of Information Actand it must obtain the approval of its current authorizer and the proposed newauthorizer pursuant to procedures in this section.(1) A charter school shallsubmit a written request to the current authorizer and the proposed receivingauthorizer to transfer its charter to a different authorizer before Septemberfirst. The request must include documentation of the charter school board'saffirmative vote to initiate the transfer process. The transfer must beeffective on July first of the following year.(2) The proposed new authorizershall issue a written final decision approving or denying the request totransfer before October thirty-first. The request to transfer may be denied bythe proposed new authorizer for any reason; however, if the proposed authorizerdetermines the charter school's request to transfer is, to avoidaccountability, prohibited by law or untimely, then the transfer must bedenied. A copy of the final decision must be served on the charter schoolapplying to transfer, the current authorizer, and the Department of Educationbefore November fifth. The decision of the proposed new authorizer to deny therequest is not appealable.(3) If the proposed newauthorizer approves the request to transfer, then the current authorizer shallissue a final decision approving or denying the request to transfer beforeDecember thirty-first. The authorizer must permit the charter school to submitmaterials or information to support its transfer request, all of which must besubmitted at least five business days before the board meeting. A charterschool who makes a written request at least five business days before the boardmeeting must be given an opportunity to appear and present informationregarding their request. If an authorizer fails to comply with items (1)through (4), then the Department of Education may compel the authorizer tocomply by withholding the authorizer's fees related to the charter schoolseeking to transfer until the authorizer complies.(4) Items (1) through (3) mustbe conducted in the year in which the request was submitted following propernotice, public discussion, and a vote by the board during a public open sessionmeeting held in accordance with the Freedom of Information Act.(5) The current authorizer mustdeny a request to transfer to the proposed new authorizer if the currentauthorizer determines the charter school's request to transfer is to avoidaccountability, prohibited by law, untimely, or other good cause to deny thetransfer exits.(6) Good cause to deny thecharter school's transfer request includes, but is not limited to:(a) violations of the charter,contract, or applicable law, that have not been resolved by the charter school;(b) receipt of the lowestperformance level rating under the state or federal accountability systemduring the past two academic years by the charter school seeking to transfer;(c) more than one transferrequest by the charter school within a ten-year period; or(d) the charter school hasoperated less than two years with the current authorizer.(7) The final decision of thecurrent authorizer is appealable to the Administrative Law Court.(8) A charter school renewalapplication shall not be subject to the provisions of this section and isdeemed not to be a transfer request.SECTION 12. Section 59-40-120 of the S.C. Code is amended to read:Section59-40-120. Upon dissolution of a charter school, its assets may not inure tothe benefit of any private person. Any assets obtained through restrictedagreements with a donor through awards, grants, or gifts must be returned tothat entity. All other assets become property of the sponsorState of South Carolina.SECTION 13. Section 59-40-140 of the S.C. Code is amended to read:Section59-40-140.(B) TheSouth Carolina Public Charter School District or public or independentinstitution of higher learning sponsor authorizer shall receive and distribute state funds tothe charter school as provided by the General Assembly.Authorizers shall report annually before July first the method by which fundsare provided to each school it authorizers.(C)During the year of the charter school's operation, as received, and to theextent allowed by federal law, a sponsor authorizer shall distribute to the charter school federalfunds which are allocated to the sponsor authorizer on the basis of the number of specialcharacteristics of the students attending the charter school. These amountsmust be verified by the State Department ofEducation before the first disbursement of funds.(D)Notwithstanding subsection (C), the proportionate share of state and federalresources generated by students or staff serving them must be directed to the sponsorauthorizer. Afterreceipt of federal or state categorical aid funds, sponsorsauthorizers shall, within ten business days,supply to the charter school the proportional share of each categorical fundfor which the charter school qualifies. If the sponsor authorizer fails to do so, the Department of Educationmay fine the sponsor authorizeran amount equivalent to the withheld amounts. Fines imposed must beremitted to the charter school from which the amounts were withheld.(E)All services centrally or otherwise provided by the sponsorauthorizer including, but not limited to,food services, custodial services, maintenance, curriculum, media services,libraries, and warehousing are subject to negotiation between a charter schooland the sponsor authorizer andmust be outlined in the contract required pursuant to Section 59-40-70(F),except as otherwise provided or required by law.(F)All awards, grants, or gifts collected by a charter school must be retained bythe charter school.(G)The governing body of a charter school or an authorizermay is authorized to accept gifts,donations, or grants of any kind made to the charter school or authorizer and to expend or use the gifts, donations,or grants in accordance with the conditions prescribed by the donor. A gift ordonation must not be required for admission. However, a gift, donation, orgrant must not be accepted by the governing board ofeither a charter school or the authorizer if subject to a conditioncontrary to law or contrary to the terms of the contract between the charterschool and the governing body. All gifts, donations, or grants shall be coded pursuant to the Financial Accounting Handbookprovided by the Department of Education, or as otherwise directed by theDepartment of Education, and must be reported to the sponsor in theirannual audit report as required in Section 59-40-50(B)(3).(H)A charter school shall report to its sponsor authorizer and the Department of Education any change toinformation provided under its application. In addition, a charter school shallreport at least annually to its sponsor authorizer and the sponsor authorizer shall compile those reports into a singledocument which must be submitted to the department. The Department of Educationshall develop a template to be used by charter schools for this annual report.The report shall provide all information required by the sponsorauthorizer or the departmentDepartment of Education and shall include,at a minimum:(1)the number of students enrolled in the charter school from year to year;(2)the success of students in achieving the specific educational goals for whichthe charter school was established;(3)an analysis of achievement gaps among major groupings of students in bothproficiency and growth;(4)the identity and certification status of the teaching staff;(5)the financial performance and sustainability of the sponsor'sauthorizer's charter schools; and(6)board performance and stewardship including compliance with applicable laws.(I)The sponsor authorizer shallprovide technical assistance to persons and groups preparing or revisingcharter applications at no expense.(J)Charter schools may acquire by gift, devise, purchase, lease, sublease,installment purchase agreement, land contract, option, or by any other meansprovided by law or otherwise, and hold and own in its own name buildings orother property for school purposes and interests in it which are necessary orconvenient to fulfill its purposes. Charter schools maynot hold property for any other purpose.(K)Charter schools are exempt from state and local taxation, except the sales tax,on their earnings and property whether owned or leased. Instruments ofconveyance to or from a charter school are exempt from all types of taxation oflocal or state taxes and transfer fees.(L) Charter schools may contract with amanagement organization for financial, accounting, and treasury servicesincluding balanced budget credits or budget deficit protection credits appliedto the school's operating budget. A management organization may recover thesecredits only within the fiscal year when the credits are issued. At theconclusion of a fiscal year, any remaining balanced budget credits or budgetdeficit protection credits are not recoverable by the management organizationand shall not be recorded as a liability in a charter school's financial audit.(L)(M) Notwithstanding the above provisions of this section,this subsection applies to converted charter schools that converted into acharter school after the effective date of this act. For purposes of computingthe funding for any year to be provided a converted charter school under theprovisions of this section, the computations required shall be made as providedin this section based on the previous year's revenues, expenditures, and otherapplicable factors pertaining to that particular converted charter school, andalso then shall be made as provided in this section for the year immediatelypreceding the previous year based on the revenues, expenditures, and otherapplicable factors for that year pertaining to that particular convertedcharter school. The funding of the converted charter school for the initialyear shall be the average of the weighted per pupil unit funding computed forthese two prior years, and funding for the converted charter school after theinitial year shall be provided by the school district in the same manner asregular public schools in the district.SECTION 14. Section 59-40-150 of the S.C. Code is amended to read:Section59-40-150. (A) The Department ofEducation shall disseminate information to the public, directly and through sponsorsauthorizers, on howto form and operate a charter school and how to utilize the offerings of acharter school.(B) The Department of Education shalldevelop the charter school application, compliance guidance, and evaluationrubric for all charter applicant groups to submit to an authorizer for charterapproval. The Department of Education shall provide guidance and technicalassistance regarding charter applications and the application process toauthorizers and applicant groups.(C) The Department of Education shallannually make revisions, with stakeholder feedback, to the application andpublish it to its website before November first annually.(B)(D) At least annually, the departmentDepartment of Education shall provide upon request adirectory of all charter schools authorized under this chapter with informationconcerning the educational goals of each charter school, the success of eachcharter school in meeting its educational goals, and procedures to apply foradmission to each charter school.(C)(E) The Department of Education shallfulfill all duties of the State Education Agency (SEA) for each authorizer andshall provide technical assistance, oversight, and guidance to authorizers forcompliance with LEA responsibilities to the same extent as other LEAs in thisState. Sanctions issued by the Department of Education against an authorizermay be appealed to the Administrative Law Court and must be stayed pendingresolution of the appeal.(F) The Department of Educationshall annually review the policies, procedures, and performance of eachauthorizer for compliance with the provisions of this chapter, stateregulations, and other state and federal law.(G) No later than February 1, 2027, theDepartment of Education shall develop and implement a process to accept andevaluate applications for institutions of higher learning that were notauthorizers before January 1, 2026. The application to become an institution ofhigher learning authorizer shall include, at minimum, the academic, governance,and financial performance of the institution of higher education, including itsaccreditation status, a financial plan to include proposed budgets of theauthorizer, evidence of need for the authorizer in light of needs of the State,and measurable goals objectives, and academic performance standards to beachieved by the charter schools to be authorized. The State Board of Educationshall promulgate regulations to include the requirements developed by theDepartment of Education. All institutions of higher learning authorizersoperating prior to January 1, 2026, shall not be required to apply but mustsign the statement of assurances affirming the authorizer understands andagrees to perform the essential responsibilities and obligations of anauthorizer and LEA. The Department of Education shall consider the informationsubmitted in the application and make a recommendation to the State Board ofEducation on whether an application should be approved, denied, or approvedwith conditions based on the demonstrated capacity of the applicant to fulfillthe obligations of an authorizer under this chapter. The State Board ofEducation shall make the final decision regarding an authorizer's application.Additionally, the State Board of Education may deny an application if thepreponderance of available evidence supports a finding by the Department ofEducation that approving the application will encourage the transfer of poorperforming charter schools to the new authorizer for purposes of escaping,delaying, or reducing accountability.(H) The departmentDepartment of Educationshall bear the cost of complying with this section.SECTION 15. Section 59-40-155 of the S.C. Code is amended to read:Section59-40-155. (A) Within one year oftaking office, all persons elected or appointed as members of a charter schoolboard of trustees or a charter school authorizer board oftrustees after July 1, 20062026, shall complete successfully an orientation program. in the powers, duties, andresponsibilities of a board member including, but not limited to, topics on The program must include specific instruction on board memberduties for compliance with this chapter, to include policy development,personnel, instructional programs, school finance, school law, state ethics laws, the South Carolina Freedom of Information Act, andcommunity relations. The orientation must be provided at no charge by the State Department of Education or anassociationentity approved by thedepartment.(B) Within ninety days ofemployment, an administrator employed by the charter school, who is not certified,does not possessany previous charter school leadership experience, shall completesuccessfully an orientation program in the powers, duties, and responsibilitiesof a charter school administrator including, butnot limited to, topics on personnel, instructional programs, school finance,school law including charter school law, board relations, South Carolina ethics, conflicts ofinterest, and community relations. The orientation must be provided atno charge by the State Department of Education oran association approved by the department.(C) Authorizers may require members ofa charter school board of trustees to complete governance training programs asspecified and agreed upon in a charter school contract.(D) In addition to the orientationprogram provided by the Department of Education, each authorizer shall developand implement an annual training program specifically designed for members ofcharter school governing boards. After the first year of taking office, acharter school board member must attend the annual training provided by theauthorizer. The training program shall include information on laws,regulations, and fiduciary responsibilities that uniquely apply to charterschools and charter school authorizers. The Department of Education shalldevelop procedures for ensuring compliance with this section by both charterschool board members and authorizers.(E) Membersof any charter school board of trustees or authorizer board of trustees shallbe subject to the provisions of Section 59-19-60.SECTION 16. Section 59-40-180 of the S.C. Code is amended to read:Section59-40-180. (A) The State Board of Education shallpromulgate regulations and develop guidelines necessary to implement theprovisions of this chapter, including standards to determine compliance withthis chapter and an application process for authorizersand charter schools to include a timeline for submission of applicationsthat will allow for final decisions, includingAdministrative Law Court appeal, by December first of the year preceding thecharter school's opening to be issued consistentwith budget and funding needs. An authorizerregistered pursuant to this chapter before January 1, 2026, is not considered anew authorizer subject to the application process provided in this chapter.(B) Any authorizer that engages inwillful or knowing conduct in violation of this act shall be subject to areduction of up to ten percent of state funding.SECTION 17. Section 59-40-230(A) of the S.C. Code is amended toread:(ii)South Carolina Chamber ofManufacturersand Commerce;SECTION 18. TheCode Commissioner is directed to change all references in Title 59 of the SouthCarolina Code of Laws from the "Charter School Sponsor," "Sponsor(s)," and"School Sponsor(s)" to the "Charter School Authorizer," "Authorizer(s),"and "School Authorizer(s)," as appropriate.SECTION 19. This act takes effect uponapproval by the Governor.----XX----This web page was last updated on May 12, 2026 at 08:00 PM
Amend The South Carolina Code Of Laws By Amending Section 59-40-40, Relating To Definitions In The South Carolina Charter Schools Act, So As To Change References From "sponsor" To "authorizer," And To Revise And Provide Other Definitions; By Amending Section 59-40-50, Relating To Legal Exemptions, Powers, And Duties Of Charter Schools, So As To Impose Certain Fiscal Accountability And Transparency Measures, To Impose Certain Admissions And Enrollment Standards And Transparency Measures, To Revise Bylaw Requirements And Board Ethics Requirements, And To Require Additional Powers And Duties Concerning Operations And Management; By Amending Section 59-40-55, Relating To Charter School Authorizers, So As To Make Conforming Changes, To Revise Their Powers And Duties, To Increase Charter Authorizer Oversight, To Prohibit Certain Financial Conflicts, To Increase Enforcement Powers Of The State Department Of Education, And To Provide Procedures For Authorizer Revocation And School Transfers; By Amending Section 59-40-60, Relating To Charter School Application Requirements, So As To Revise Charter School Application Requirements, To Increase Governance And Financial Disclosures, To Create Rules For Virtual Schools, And To Create A Streamlined Replication Process For Successful Charter Schools, Among Other Things; By Amending Section 59-40-65, Relating To Virtual Instruction Requirements In Charter Schools, So As To Provide Necessary Definitions And Impose Certain Requirements On Virtual Charter Schools; By Amending Section 59-40-70, Relating To Charter School Applicants To Authorizers, So As To Revise Charter Application And Approval Procedures, To Impose Certain Review Timelines, To Revise Evaluation Requirements, To Provide Conditional Approvals, To Impose Planning-year Requirements, And To Revise Authorizer Oversight; By Amending Section 59-40-75, Relating To Charter School Authorizer Board Member Ethics, Conduct, And Removal, So As To Include Authorizers, To Revise The Grounds For Removal, To Revise The Manner Of Filling Vacancies, And To Prohibit Certain Conflicts Of Interest; By Amending Section 59-40-90, Relating To Appeals Of Final Decisions Of Charter School Authorizers, So As To Provide That Appeals Of Final Decisions By Authorizers Must Be Made To The Administrative Law Court; By Amending Section 59-40-110, Relating To Charter Durations, Renewals, And Closures, So As To Include Certain Charter School Performance Assessments By Authorizers And Related Guidance And Response Procedures; By Amending Section 59-40-111, Relating To Alternative Education Campuses, So As To Impose Accountability Requirements; By Amending Section 59-40-115, Relating To Charter School Transfers Among Authorizers, So As To Impose Requirements For Such Transfer Processes And To Require Certain Transparency Measures, Among Other Things; By Amending Section 59-40-120, Relating To The Ownership Of Dissolved Charter School Assets, So As To Provide That Certain Assets Become Property Of The State Of South Carolina Instead Of The Charter School's Authorizer; By Amending Section 59-40-140, Relating To Charter School Authorizer Management And Reporting, So As To Make Conforming Changes And To Authorize Charter Schools To Contract With Management Organizations For Certain Purposes, Among Other Things; By Amending Section 59-40-150, Relating To Charter School Formations And Operations, So As To Impose Requirements On The State Department Of Education Concerning Charter School Applications, Compliance Guidance, And Evaluations, Among Other Things; By Amending Section 59-40-155, Relating To Charter School Trustee Training And Removals, So As To Make Certain Training Provisions Applicable To Charter School Authorizer Board Members, To Revise The Orientation Program For New Board Members, And To Provide Additional Training Requirements, Among Other Things; By Amending Section 59-40-180, Relating To Regulations And Guidelines, Grandfather Provisions, And Penalties For Violations, So As To Exempt Certain Existing Authorizers From The Application Process, And To Subject Authorizers To Funding Reductions For Wilful Or Knowing Violations; And By Amending Section 59-40-230, Relating To The South Carolina Public Charter School District Board, So As To Correct An Obsolete Reference. - Ratified Title
Sponsors
Sen. Greg Hembree (R) sponsors S 454 alone.
Committees
S 454 went before 2 committees: Education and Education and Public Works.
History
S 454 has taken 32 actions since Mar 13, 2025, the latest on May 26, 2026.
| Chamber | Action | |||
|---|---|---|---|---|
May 26, 2026 | — | Effective date 05/15/26 | ||
May 26, 2026 | — | Act No. 123 | ||
May 15, 2026 | — | Signed By Governor | ||
May 14, 2026 | — | Ratified R 140 | ||
May 13, 2026 | House | Concurred in Senate amendment and enrolled |
Votes
S 454 went to 6 roll calls across both chambers, the latest on May 13, 2026 at 102–1.
| Chamber | Question | Yea | Nay | |||
|---|---|---|---|---|---|---|
May 13, 2026 | House | House: Concur In Senate Amendments | 102 | 1 | ||
May 12, 2026 | Senate | Senate: To Adopt Amendment | 43 | 0 | ||
Apr 23, 2026 | House | House: Waive Rule 5.15 Printing | 75 | 33 | ||
Apr 23, 2026 | House | House: Passage Of Bill | 104 | 0 | ||
Feb 10, 2026 | Senate | Senate: 3rd Reading | 42 | 0 |
Source: scstatehouse.gov · legiscan.com
