2023 -- H 5545

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LC001709

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO EDUCATION -- DISTRICT CHARTER SCHOOL

     Introduced By: Representatives Voas, Potter, Diaz, and Alzate

     Date Introduced: February 15, 2023

     Referred To: House Education

     (Dept. of Revenue)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-77.2-8 of the General Laws in Chapter 16-77.2 entitled "District

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

amended to read as follows:

     16-77.2-8. Charter school reporting.

     (a) All district charter schools shall continuously monitor their financial operations by

tracking actual versus budgeted revenue and expense. The chief financial officer of the district

charter school shall submit a report on a quarterly basis to the state office of municipal affairs

commissioner certifying the status of the district charter school budget.

     (b) The quarterly reports shall be in a format prescribed by the state office of municipal

affairs commissioner and the state auditor general. The reports shall contain a statement as to

whether any actual or projected shortfalls in budget line items are expected to result in a year-end

deficit, the projected impact on year-end financial results including all accruals and encumbrances,

and how the district charter school plans to address any such shortfalls. The auditor general or the

state director of administration may petition the superior court to order the district charter school

to file said reports. The director of administration may also direct the state controller and general

treasurer to withhold any funding to the district charter school until the school complies with the

reporting requirements hereunder. Failure to comply with this section shall be cause for the

revocation of the school charter.

     SECTION 2. Section 16-77.3-8 of the General Laws in Chapter 16-77.3 entitled

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

Act]" is hereby amended to read as follows:

     16-77.3-8. Charter school reporting.

     (a) All independent charter schools shall continuously monitor their financial operations

by tracking actual versus budgeted revenue and expense. The chief financial officer of the

independent charter school shall submit a report on a quarterly basis to the state office of municipal

affairs commissioner certifying the status of the independent charter school budget. The quarterly

reports shall be in a format prescribed by the state office of municipal affairs commissioner and the

state auditor general. The reports shall contain a statement as to whether any actual or projected

shortfalls in budget line items are expected to result in a year-end deficit, the projected impact on

year-end financial results including all accruals and encumbrances, and how the independent

charter school plans to address any such shortfalls.

     (b) The auditor general or the state director of administration may petition the superior

court to order the independent charter school to file said reports. The director of administration may

also direct the state controller and general treasurer to withhold any funding to the independent

charter school until the school complies with the reporting requirements hereunder. Failure to

comply with this section shall be cause for the revocation of the school charter.

     SECTION 3. Section 16-77.4-8 of the General Laws in Chapter 16-77.4 entitled "Mayoral

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

amended to read as follows:

     16-77.4-8. Mayoral academy reporting.

     (a) All mayoral academies shall continuously monitor their financial operations by tracking

actual versus budgeted revenue and expense. The chief financial officer of a mayoral academy shall

submit a report on a quarterly basis to the state office of municipal affairs commissioner certifying

the status of that mayoral academy’s budget. The quarterly reports shall be in a format prescribed

by the state office of municipal affairs commissioner and the state auditor general. The reports shall

contain a statement as to whether any actual or projected shortfalls in budget line items are expected

to result in a year-end deficit, the projected impact on year-end financial results including all

accruals and encumbrances, and how the mayoral academy plans to address any such shortfalls.

     (b) The auditor general or the state director of administration may petition the superior

court to order a mayoral academy to file said reports. The director of administration may also direct

the state controller and general treasurer to withhold any funding to a mayoral academy until the

school complies with the reporting requirements hereunder. Failure to comply with this section

shall be cause for the revocation of the school charter.

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION -- DISTRICT CHARTER SCHOOL

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     This act would require that certain quarterly reports required to be filed by district charter

schools, mayoral academies and independent charter schools be submitted to the commissioner of

elementary and secondary education.

     This act would take effect upon passage.

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LC001709

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