Amends TCA Title 49, Chapter 13 and Title 67, Chapter 5, Part 2.

This bill makes various changes and additions to present law concerning charter schools. APPLICATION FOR CHARTER SCHOOL Present law generally requires a sponsor seeking to establish a new public charter school to apply to the local board of education. If the local board denies the application, the sponsor may appeal the Tennessee public charter school commission. This bill modifies the appeals process by authorizing the commission to request that an applicant provide additional information for use in reviewing the record of the application. If the commission authorizes a charter school following an appeal, this bill authorizes the commission to require the charter school to delay opening up to one academic year through the charter agreement. Under this bill, if a local board of education's decision to deny a new public charter school application is overturned by the commission three times, beginning on January 1, 2022, within a three-year period, then a sponsor seeking to open a public charter school in that local school district may apply to the local board of education or directly to the commission. The full text of this bill details the application process to be followed if a sponsor chooses to apply directly to the commission. This bill authorizes a public institution of higher education in this state seeking to open a public charter school or to convert a public school to a public charter school to apply to the local board of education or directly to the commission. Notwithstanding the present law limit on an enrollment preference for children of a teacher or member of a governing body of a charter school, this bill authorizes a public charter school sponsored by a public institution of higher education to give an enrollment preference to children of a public charter school's employees, or member of the governing body. REPLICATION This bill authorizes a governing body that has at least one public charter school authorized by the commission that has been in operation for at least one full school year to apply for replication directly to the commission. For purposes of this bill, "replication" means the creation of one or more subsequent charter schools that utilize the same academic focus of an existing charter school operated by a sponsor or governing board. The full text of this bill specifies the procedural requirements for making a direct application for replication to the commission. TRANSFER TO A SINGLE AUTHORIZER This bill authorizes a governing body that has at least one public charter school authorized by the commission and at least one public charter school authorized by a local board of education to apply to either the commission or the local board of education to transfer all of the governing body's public charter schools to the jurisdiction of one authorizer. This bill requires the state board of education to promulgate rules for the transfer application process. The decision concerning a transfer application made by the local board of education or the commission is final and not subject to appeal. If a transfer application is denied, the public charter school remains under the jurisdiction of the existing authorizer. UNDERUTILIZED AND VACANT PROPERTIES For purposes of this bill, "underutilized or vacant property" means an entire property or portion thereof, with or without improvements, in which more than 50 percent of a building located on the property is not being used for direct academic instruction for any grade pre-K-12, including, but not limited to, spaces suitable for classroom use that are currently being used for storage of any kind. This bill requires any LEA in which one or more charter schools operates to annually catalog all underutilized or vacant properties owned or operated by the LEA and all underutilized or vacant properties within any educational facility owned or operated by the LEA. The LEA must submit a list of all underutilized or vacant properties to the department and the comptroller of the treasury. The department must make an LEA's list available to any charter school operating in the LEA or to any sponsor seeking to establish a public charter school in the LEA. This bill authorizes a public charter school to petition the comptroller of the treasury for an audit of an LEA's listing of underutilized or vacant properties. Under this bill, a public charter school operating in the LEA has a right of first refusal to lease for no cost or purchase for $1.00 any underutilized or vacant property included on an LEA's list. The full text of this bill specifies lease conditions that will apply to no cost leases between an LEA and a public charter school and specifies the disposition of proceeds from the sale of any property that a public charter school purchases from an LEA for $1.00 under this bill. This bill authorizes the commissioner of education to establish an LEA authorizer facilities grant for the purpose of providing grants to LEAs that provide facilities at no cost to public charter schools. Upon execution of a lease, lease-purchase, or purchase agreement between an LEA and a public charter school, the commissioner may grant an LEA authorizer facilities grant to the LEA. An LEA shall use an LEA authorizer facilities grant to acquire or improve property that is used to educate students. DEBT RESERVE FUND This bill creates a state public charter school debt reserve fund, including a state public charter school interest savings account to be administered by the department. All moneys in the fund must be used to enhance the ability of any qualified public charter school that chooses to finance capital construction with revenues from bonds issued on behalf of the qualified public charter school by the appropriate authority to obtain such financing on favorable terms by providing a source of moneys that can be used to make bond payments if the qualified public charter school fails to make such payments, and the department may make bond payments from the fund for such purposes. MISCELLANEOUS This bill requires the department of education to coordinate with the Tennessee charter schools commission in developing the charter school application template. This bill reduces the amount of time within which a charter school application must be approved or denied from 90 to 75 days. This bill reduces the amount of time within which an amended charter school application must be approved or denied from 60 to 45 days. Present law exempts from property taxes government property and the real and personal property, or any part of the real and personal property, owned by any religious, charitable, scientific, or nonprofit educational institution that is occupied and actually used by the institution or its officers purely and exclusively for carrying out one or more of the exempt purposes for which the institution was created or exists. This bill specifies that such tax exemptions apply to public charter school property, including any facility, or portion thereof, used to house a public charter school. Present law authorizes the commissioner to award grants and loans through the charter schools facilities program to public charter school governing bodies or charter management organizations for qualifying capital projects as determined through policies developed by the department of education. Such policies must ensure funds are made available on an equitable basis for the benefit of public charter schools of all sizes, characteristics, geographic locations, and authorizers. This bill instead requires that such policies must ensure at least 50 percent of the funds are made available on a per-pupil basis for the benefit of public charter schools of all sizes, characteristics, geographic locations, and authorizers.