MONTGOMERY – Alabama’s movement toward responsible, conservative government made major progress in the second year of Republican leadership in the Legislature, with several landmark reforms and job creation measures successfully passing in the 2012 Regular Session.

House Speaker Mike Hubbard and members of the House Republican leadership highlighted many of the legislative accomplishments Thursday at a State House news conference. From pension reform to repealing the legislative pay raise, and from rewriting the state’s constitution to making strides to improve public schools, lawmakers’ achievements made the 2012 Regular Session a major success, Speaker Hubbard said.

“The days of the ‘do-nothing’ Legislature in Alabama are over,” Speaker Hubbard said. “Alabama now has a ‘do-something’ Legislature, and I’m proud that we built upon our momentum this year and passed even more conservative reforms. We passed bills that are already creating jobs and lowering Alabama’s unemployment rate. We overhauled our state’s pension system, cut red tape for consumers and small businesses, and streamlined government agencies to remove unnecessary bureaucracy.

“When you look at the body of work that was accomplished, there’s no question the 2012 Regular Session was a major success.”

Below and attached is a list of successfully-passed bills that highlight just some of the major accomplishments of the 2012 Regular Session.

Back to Work in Year Two:

What the conservative majority accomplished in 2012

 Alabama’s movement toward responsible, conservative government didn’t stop with last year’s successful “Republican Handshake with Alabama.” In the 2012 Regular Session, Republican lawmakers built upon their momentum and passed several conservative reforms that will help create jobs, allow local communities more tools to improve education, and reign in wasteful government spending and debt.

Job Creation

The Legislative Leadership made it clear from the start that their top priority in 2012 would be job creation and economic growth. That’s exactly what happened, as lawmakers wasted no time passing pro-growth jobs bills that are already beginning to have a positive effect on Alabama’s economy.

Here’s a list of jobs bills that were successfully passed by the Legislature and signed into law by Governor Bentley (unless otherwise noted):

o   Enhanced Incentives to Recruit Job-Creating Coal Mining Projects, House Bill 144 sponsored by Rep. Bill Roberts (R-Jasper)

• This new law enhances the state’s ability to recruit coal mining companies by allowing them to qualify for certain existing tax incentives currently available to manufacturers and other businesses.
• As a direct result of this law, this month Walter Energy announced it will build a $1.2 billion facility and bring more than 530 jobs to Alabama.

o   The  “Heroes for Hire” Tax Credit Act, House Bill 152 sponsored by Rep. DuWayne Bridges (R-Valley)

• With wars winding down in Iraq and Afghanistan, thousands of Alabama veterans will soon return home to a difficult economy in which it is hard to find a job.
• This new law offers Alabama businesses a $2000 tax credit for hiring a veteran recently returned from war.

o   Aviation and Aerospace Economic Incentives, House Bill 39 sponsored by Rep. Paul Lee (R-Dothan)

• This new law provides for a special tax incentive allowing Alabama to target aircraft manufacturers and aircraft parts manufacturers.

o   Alabama Film Incentive Enhancement Act, House Bill 243 sponsored by Rep. Terri Collins (R-Decatur)

• Alabama has long trailed behind other states in the film and television production industry because our state lacked the incentives other states have to help attract these job-creating productions here.
• A 2011 law that included television productions in Alabama’s film incentive statute has already rendered great success as the popular shows “Rocket City Rednecks,” “Big Shrimpin’” and “Sweet Home Alabama” all based their productions in state.
• This new law expands Alabama’s film/television production incentive cap from $10 to $15 million, making Alabama more competitive in the industry.
• The law also doubles the amount productions could spend and count toward tax incentive rebates from $10 million to $20 million. This would help Alabama attract larger productions that will in turn create more jobs.

o   The Alabama Data Processing Center Economic Incentive Enhancement Act, House Bill 154 sponsored by Rep. Dan Williams (R-Athens)

• Data processing centers are key components of the 21st century economy.  These centers employ a skilled workforce, provide high-paying jobs, and have a low environmental footprint.  Alabama is uniquely positioned to compete for jobs in this growing industry.
• This new law expands the scope of certain tax incentives in order to focus on recruiting more data processing centers to Alabama.

o   Spurring Investment in Struggling Communities, House Bill 257 sponsored by Rep. Jamie Ison (R – Mobile) *not yet signed into law

• This new law would encourage economic investment and job growth in low income areas by leveraging available federal tax incentives with new state tax incentive offerings.
• In exchange for their investments in qualified businesses and projects located in low-income downtown areas throughout Alabama, the state will offer investors a future tax credit.
• Investors could claim a 50 percent graduated tax credit over the course of seven years for investments up to $240 million.  The credit is zero for the first year and 8 percent for each of the next five years, then ten percent the seventh year.

o   Flexible Capital Tax Credits for Job Creators, House Bill 140 sponsored by Rep. Micky Hammon (R-Decatur) *has not yet been signed into law

• This new law would allow new and expanding businesses that spend at least $100 million on capital improvements and hire at least 100 people to delay the tax credit for up to four years.
• New or expanding companies typically qualify for an income tax credit for five percent of their investment each year for 20 years. This law would allow a company that invests $400 million to carry forward the credit for four additional years. The credit can be held for three years for a $300 million investment, two years for $200 million and one year for $100 million.

o   Public Database of Bids and Contract Proposals Involving Taxpayer Money, Senate Bill 30 sponsored by Sen. Arthur Orr (R-Decatur) and Rep. Phil Williams (R-Huntsville)

• This new law would require the state comptroller to create and maintain a public database on the www.Open.Alabama.gov website on which bids or contract proposals involving state funds or federal grant money must be posted.
• This statute was a recommendation of the Speaker’s Commission on Job Creation, which was chaired by Rep. Williams.

Improving Education

In Alabama we want excellent teachers in every classroom preparing the next generation of Alabamians to be our greatest yet. That starts by ensuring accountability in all public schools, incentivizing performance in the classroom and supporting the needs of our teachers.

o   Public School Accountability and Performance Incentive plan, House Bill 588, sponsored by Rep. Terri Collins (R-Decatur) and Rep. Donnie Chesteen (R-Geneva) *this bill has not yet been signed into law

• This new law would establish a simple, comprehensive and consistent system to grade school performance, allowing parents and community leaders to better understand how their local schools are faring.
• Senate President Pro Tempore Del Marsh (R-Anniston) took it a step further by combining his proposal to set up a school performance bonus system to incentivize improved student achievement.
• A universally-comprehendible A-B-C-D-F grade would be assigned to each school and made public, and all schools would be graded consistently so that grades of one school or system may be compared to the grades of any other school or system.
• Lawmakers began developing the proposal after a meeting with former Florida Governor Jeb Bush, who told them implementing an accurate, consistent, easy-to-understand school grading system was the single reform most responsible for Florida’s extraordinary gains in education.

o   Rewarding Teacher Certification, Senate Bill 143 sponsored by Sen. Jabo Waggoner (R-Birmingham) & Rep. Jay Love *this bill has not been signed into law

• This new law would set aside $2.3 million in a conditional appropriation to fund a $5,000 bonus for teachers who become national board certified.

o   Funding Classroom Supplies for Teachers, Senate Bill 257 sponsored by Sen. Greg Reed (R-Jasper) and Rep. Bill Roberts (R-Jasper)

• This new law makes a special appropriation that affords each classroom teacher $300 to spend on classroom supplies and materials

o   Lowering Minimum School Start Age, Senate Bill 28 sponsored by Sen. Priscilla Dunn (D-Bessemer) and Rep. John Merrill (R – Tuscaloosa)

• This new law lowers the age at which children must attend school from seven-years-old to six-years-old, bringing Alabama in line with bordering states.
• A provision allows parents to request an exemption from the school board.

Efficient, Responsible Governing

As the branch of government charged with appropriating taxpayer dollars, it is the Legislature’s duty to ensure that state government is operating as efficiently as possible and that taxpayers are getting their money’s worth. Lawmakers must examine every dime of state spending, set priorities and, like every Alabama business and family, make the government live within its means.

o   Legislative Pay Raise Repeal & Compensation Reform, House Bill 276 sponsored by Rep. Mike Ball (R-Huntsville)

• This Constitutional Amendment would repeal the 2007 pay raise and allow voters to determine legislative pay at the ballot box.
• The plan put before the voters would tie legislative pay to median household income, meaning it would increase or decrease based on how Alabamians are doing economically.
• The amendment also repeals automatic cost-of-living adjustments passed in 2007, and would make it illegal for lawmakers to raise their own pay ever again.

o   Pension Reform, Senate Bill 388 sponsored by Sen. Arthur Orr (R-Decatur), Rep. Jamie Ison (R-Mobile) and Rep. Mac McCutcheon (R-Capshaw)

• Taxpayer contributions to fund RSA have more than tripled since 2001, from $330 million to almost $1 billion this year.
• With estimates showing the state’s retirement systems running out of money by as soon as 2023, changes must be made to ensure the long-term financial stability of the state.
• This landmark new law sets a minimum retirement age of 62 for most employees and 56 for law enforcement, saving the state more than $3 billion over 30 years.
• These changes do not affect current employees or retirees. New rules will only affect new employees hired beginning in 2013.

o   No Taxpayer-Funded Benefits for Felons, Senate Bill 213 sponsored by Sen. Arthur Orr and Rep. Donnie Chesteen (R-Geneva)

• Unfortunately we have recently heard accounts of teachers and other public employees who still reap state-funded benefits even though they’ve been convicted on corruption or even sex crimes.
• This new law would make any public employee who is convicted of a felony ineligible for state retirement benefits.

o   Constitutional Reform, House Bills 357 & 358 sponsored by Rep. Paul DeMarco (R-Homewood)

• Many past legislatures have promised action on rewriting the state’s 1901 Constitution. In 2012, this Legislature delivered on that promise.
• House Bill 357 updates and modernizes language in Article 12 of the 1901 Alabama Constitution dealing with private corporations, railroads and canals.
• House Bill 358 updates and modernizes Article 13 dealing with banks and banking law.

o   Coastal Insurance Reform

• House Bill 166 sponsored Rep. Steve McMillan (R-Gulf Shores) – the “Homeowners Bill of Rights Act,” which would require insurance companies to be transparent about exactly what coverage is offered in their policies.
• House Bill 323 sponsored by Rep. Steve McMillan – gives the state more tools to fight insurance fraud by increasing penalties.
• Senate Bill 230 sponsored by Sen. Ben Brooks (R-Mobile) – provides a limited premium tax credit for insurance companies that depopulate the insurance “wind pool”
• Senate Bill 227 sponsored by Sen. Ben Brooks – allows consumers to set up a catastrophe savings account to pay for deductibles on primary residences.
• Senate Bill 210 sponsored by Sen. Trip Pittman (R-Montrose) – requires the Alabama Department of Insurance to keep and publish a historical record of insurance rates to ensure transparency for consumers.

o   Cracking Down on Unemployment Fraud, House Bill 72 sponsored by Rep. Paul DeMarco (R-Homewood)

• The Department of Industrial Relations estimates that during Fiscal Year 2011, more than 12,000 individuals fraudulently received unemployment compensation benefits, costing the state more than $15 million.
• That’s $15 million that was meant to aid unemployed workers and families who need help in these difficult economic times.
• Under this new law, those caught defrauding the unemployment compensation fund of more than $2,500 will be guilty of a Class B felony.  Less than $2,500 constitutes a Class B felony, and less than $500 is a Class A misdemeanor.
• Those who cheat the system will also be disqualified from receiving any unemployment benefits for a 52-week period, and subsequent offenses will be punished by a 104-week disqualification.
• Those found guilty of fraud would also be forced to repay the fraudulently-received benefits along with an interest penalty to the Alabama Department of Industrial Relations.

o   Streamlined Tax Filing for Businesses, Senate Bill 459 sponsored by Sen. Slade Blackwell (R-Birmingham) and Rep. Jack Williams (R-Birmingham)

• This new law will streamline the process for businesses filing tax returns with cities and counties across the state, a key recommendation from both Senate President Pro Tem Del Marsh’s Initiative to Streamline Government and House Speaker Mike Hubbard’s Commission on Job Creation.
• The law creates an electronic single point of filing system that will be made available for filing and remitting state and local sales, use and rental and lease taxes.
• The system, known as ONE SPOT – Optional Network Election for Single Point Online Transactions, will be administered by the Alabama Department of Revenue and available for use by both taxpayers and Alabama municipalities and counties at no cost. The system must be operational in time for returns and payments due in tax periods that begin after Sept. 30, 2013.

o   The “TTYL” Texting While Driving Ban, House Bill 2 sponsored by Rep. Jim McClendon (R-Springville)

• This new law prohibits driving a vehicle on an Alabama highway or street while using a wireless telecommunication device to write, send or read a text-based communication, including email.

o   Restricting Funeral Disruptions, House Bill 238, sponsored by Rep. DuWayne Bridges (R-Valley)

• This new law sets a perimeter of 1000 feet, or two blocks, for any disruption of a funeral in Alabama.
• The law is needed because the hate group calling itself the “Westboro Baptist Church” has disrupted the funeral and burial ceremonies of fallen military personnel, at least one victim of the 2006 Huntsville school bus crash and murdered Auburn University student Lauren Burk. In the wake of last year’s devastating tornado outbreak, the group publicly rejoiced at the loss of life and threatened to disrupt funerals of tornado victims in Alabama and Missouri.

o   Cracking Down on Synthetic Drugs, Senate Bill 208 sponsored by Sen. Arthur Orr (R-Decatur) and Rep. Allen Farley (R-McCalla)

• In addition to traditional drugs, synthetic drugs known as “spice” or “salts” have become an increasing problem in Alabama.
• Updates to the law are necessary to allow law enforcement officers to crack down on such substances and protect Alabama neighborhoods from the latest manifestations of drugs.
• Under this bill, anyone who possesses, manufactures, delivers or traffics one of these synthetic cannabinoid-like substances would be guilty of a felony and subject to fines ranging from $50,000 to $250,000 and a minimum prison term of between three years and life depending upon the amount of drugs involved.

o   Toughening Penalties on Street-Level Drug Dealers, House Bill 376 sponsored by Rep. Blaine Galliher (R-Rainbow City)

• Under current state law, any individual caught with just less than 28 grams could only be prosecuted as a low-grade “Class C” offender, while anyone caught with over 28 grams would be prosecuted as a “Class A” felon.
• This allowed drug dealers to game the system by carrying just enough drugs to make the crime worth it but not enough to suffer harsh punishment.
• This new law makes it a “Class B” felony to carry over 8 grams of illegal substance, helping law enforcement prosecute street level dealers with tougher penalties.

o    Reorganizing ALDOT to Ensure Accountability, Responsiveness, House Bills 355 and 402 sponsored by Rep. Mac McCutcheon (R-Capshaw)

• This new law would alter the organizational structure of ALDOT by giving the Transportation Director the authority to appoint three deputy directors to help oversee the operations of the Department.  House Bill 402 would specifically change the position of Chief Engineer from a merit system position to an appointed position.
• Adding up to three deputies to help oversee this process and designating the chief engineer as an appointed position will translate into more accountability and responsiveness from the Department.

o   Making looting after a declared emergency a felony in Alabama, House Bill 340 sponsored by Rep. John Merrill (R-Tuscaloosa)

o   Sales Tax Holiday for Storm Preparation and Response Supplies, House Bill 436 sponsored by Rep. Bill Poole (R-Tuscaloosa)

• This new law is designed to encourage residents to purchase supplies life-saving storm preparation and response supplies by removing state sales tax on certain items during the last week of February each year.
• Qualifying items include: batteries, NOAA weather radios, flashlights, first aid kits, duct tape, plywood, portable generators, tarps, fire extinguishers, smoke detectors, carbon monoxide detectors, and tie-down kits

o   “Alabama Taxpayers’ Bill of Rights II,” House Bill 105 sponsored by Rep. Paul DeMarco

• This new law would make Alabama more competitive by reducing business costs associated with unemployment, workers’ compensation and tax appeals.
• The appeals process for tax assessments will be streamlined and made independent of the taxing governments, all of which previously had a vested interest in denying such appeals.  Instead, an independent Alabama Tax Appeals Commission will be created and tasked with hearing disputes over assessments involving income, sales, use, rental and lodging taxes issued by the State Department of Revenue, by cities or counties or by private auditing firms they employ.

·         To avoid costly duplication, the bill also abolishes the Administrative Law Division of the Department of Revenue and transfers its personnel, equipment and functions to the newly-formed Commission.  Doing so would bring Alabama into conformity with the vast majority of states that have created an independent tax appeals process for both businesses and individuals.

MONTGOMERY – A plan to stabilize the state’s pension fund and protect the retirement benefits of more than a hundred thousand public employees in Alabama could receive final passage in the Alabama Legislature today, as the House of Representatives takes up a proposed new law at the top of Tuesday’s agenda.

The plan, contained in Senate Bill 388 sponsored by Sen. Arthur Orr (R-Decatur), Rep. Jamie Ison (R-Mobile) and Rep. Mac McCutcheon (R-Capshaw), would make Alabama’s pension fund more fiscally sound over the long term by changing the way retirement benefits are calculated for new hires beginning in 2013. SB388 would:

• Set the minimum retirement for most employees at 62, and 56 for law enforcement;
• Adjust the calculation of pension payments to an average of the highest five years of service, whereas currently it is the highest-paid three years out of the last 10 years of service;
• Decrease the rate new hires must contribute toward their retirement from 7.5 percent to 6.0 percent, meaning less money out of their paychecks and more take-home pay.

Taxpayer contributions to fund retirement benefits have more than tripled since 2001 from $330 million to almost $1 billion this year. With estimates showing the state’s retirement systems running out of money by as soon as 2023, changes must be made to ensure the long-term financial stability of the state, Rep. Ison said.

“Like most states, Alabama is facing a situation in which the state’s retirement costs are eating up a larger and larger portion of the budgets each year,” Rep. Ison said. “Even Massachusetts, the bluest of the ‘blue states,’ took a look at this issue and enacted significant pension reforms last year. The Legislature has been working with Governor Bentley and Retirement Systems of Alabama CEO Dr. David Bronner to craft a reasonable plan that will shore up the system going forward and protect the retirement savings of our beneficiaries.”

Rep. McCutcheon said a financially-stable pension fund is in the best interest of all public employees.

“A pension isn’t just a number on a piece of paper,” Rep. McCutcheon said. “It’s a person’s livelihood; something families count on as they plan for the future. We have an obligation to make sure the state delivers on the promises it made in terms of retirement benefits, and this plan allows us to do that.”

House Speaker Mike Hubbard thanked the bill sponsors for working through this complicated issue to develop a plan that allows the state to avoid tax increases or a major reduction in benefits.

“I appreciate the hard work Rep. Jamie Ison and Rep. Mac McCutcheon have put into this plan, along with their partner in the Senate, Sen. Arthur Orr,” Speaker Hubbard said.

“Far too often, politicians put off making tough decisions like this because it is more politically expedient to do nothing and kick the can down the road. But, if we chose to do nothing, the state will one day be forced to make painful and unfair reductions in benefits for those already in the system or enact a massive tax increase on Alabama families and businesses. Both those scenarios are completely unacceptable. They are also both completely avoidable if we make these reasonable changes.”

Other bills up today in the House include:

• Senate Bill 30 by Sen. Arthur Orr and Rep. Phil Williams (R-Huntsville) – would require the state comptroller to create and maintain a public database on the www.Open.Alabama.gov website on which bids or contract proposals involving state funds or federal grant money must be posted. This was a recommendation of the Speaker’s Commission on Job Creation, which was chaired by Rep. Williams;
  

• Senate Bill 10 by Senator Greg Reed (R-Jasper) and Rep. Ed Henry (R-Hartselle) – would prohibit an insurance plan offered through a health insurance exchange from providing coverage of elective abortions;

• Senate Bill 244 by Sen. Bill Holtzclaw (R-Huntsville) and Rep. DuWayne Bridges (R-Valley) – would authorize the state Military Department to pay medical expenses for members of the National Guard or Alabama State Defense Force who become ill during active military service or have minor injuries as a direct result of active military service for the state when not covered by the State Employees Injury Compensation Program;

• Senate Bill 257 by Sen. Greg Reed and Rep. Bill Roberts (R-Jasper) – would appropriate $300 for every classroom teacher in Alabama for purchasing classroom supplies;

• Senate Bill 213 by Sen. Arthur Orr and Rep. Donnie Chesteen (R-Geneva) – would make any public employee who is convicted of a felony ineligible for state retirement benefits.

A special agenda of bills relating to insurance coverage for storm-prone areas is also up for consideration in the House of Representatives Tuesday. To view the complete House agenda, visit http://www.legislature.state.al.us/prefiled/calendar.html.

The House convenes at 1:00 p.m. Tuesday.

MONTGOMERY – A plan to stabilize the state’s pension fund and protect the retirement benefits of more than a hundred thousand public employees in Alabama could receive final passage in the Alabama Legislature today, as the House of Representatives takes up a proposed new law at the top of Tuesday’s agenda.

The plan, contained in Senate Bill 388 sponsored by Sen. Arthur Orr (R-Decatur), Rep. Jamie Ison (R-Mobile) and Rep. Mac McCutcheon (R-Capshaw), would make Alabama’s pension fund more fiscally sound over the long term by changing the way retirement benefits are calculated for new hires beginning in 2013. SB388 would:

• Set the minimum retirement for most employees at 62, and 56 for law enforcement;
• Adjust the calculation of pension payments to an average of the highest five years of service, whereas currently it is the highest-paid three years out of the last 10 years of service;
• Decrease the rate new hires must contribute toward their retirement from 7.5 percent to 6.0 percent, meaning less money out of their paychecks and more take-home pay.

Taxpayer contributions to fund retirement benefits have more than tripled since 2001 from $330 million to almost $1 billion this year. With estimates showing the state’s retirement systems running out of money by as soon as 2023, changes must be made to ensure the long-term financial stability of the state, Rep. Ison said.

“Like most states, Alabama is facing a situation in which the state’s retirement costs are eating up a larger and larger portion of the budgets each year,” Rep. Ison said. “Even Massachusetts, the bluest of the ‘blue states,’ took a look at this issue and enacted significant pension reforms last year. The Legislature has been working with Governor Bentley and Retirement Systems of Alabama CEO Dr. David Bronner to craft a reasonable plan that will shore up the system going forward and protect the retirement savings of our beneficiaries.”

Rep. McCutcheon said a financially-stable pension fund is in the best interest of all public employees.

“A pension isn’t just a number on a piece of paper,” Rep. McCutcheon said. “It’s a person’s livelihood; something families count on as they plan for the future. We have an obligation to make sure the state delivers on the promises it made in terms of retirement benefits, and this plan allows us to do that.”

House Speaker Mike Hubbard thanked the bill sponsors for working through this complicated issue to develop a plan that allows the state to avoid tax increases or a major reduction in benefits.

“I appreciate the hard work Rep. Jamie Ison and Rep. Mac McCutcheon have put into this plan, along with their partner in the Senate, Sen. Arthur Orr,” Speaker Hubbard said.

“Far too often, politicians put off making tough decisions like this because it is more politically expedient to do nothing and kick the can down the road. But, if we chose to do nothing, the state will one day be forced to make painful and unfair reductions in benefits for those already in the system or enact a massive tax increase on Alabama families and businesses. Both those scenarios are completely unacceptable. They are also both completely avoidable if we make these reasonable changes.”

Other bills up today in the House include:

• Senate Bill 30 by Sen. Arthur Orr and Rep. Phil Williams (R-Huntsville) – would require the state comptroller to create and maintain a public database on the www.Open.Alabama.gov website on which bids or contract proposals involving state funds or federal grant money must be posted. This was a recommendation of the Speaker’s Commission on Job Creation, which was chaired by Rep. Williams; 

• Senate Bill 10 by Senator Greg Reed (R-Jasper) and Rep. Ed Henry (R-Hartselle) – would prohibit an insurance plan offered through a health insurance exchange from providing coverage of elective abortions;

• Senate Bill 244 by Sen. Bill Holtzclaw (R-Huntsville) and Rep. DuWayne Bridges (R-Valley) – would authorize the state Military Department to pay medical expenses for members of the National Guard or Alabama State Defense Force who become ill during active military service or have minor injuries as a direct result of active military service for the state when not covered by the State Employees Injury Compensation Program;

• Senate Bill 257 by Sen. Greg Reed and Rep. Bill Roberts (R-Jasper) – would appropriate $300 for every classroom teacher in Alabama for purchasing classroom supplies;

• Senate Bill 213 by Sen. Arthur Orr and Rep. Donnie Chesteen (R-Geneva) – would make any public employee who is convicted of a felony ineligible for state retirement benefits.

A special agenda of bills relating to insurance coverage for storm-prone areas is also up for consideration in the House of Representatives Tuesday. To view the complete House agenda, visit http://www.legislature.state.al.us/prefiled/calendar.html.

The House convenes at 1:00 p.m. Tuesday.

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MONTGOMERY – The Alabama House of Representatives today took action to improve access to capital for small companies, passing a bill to create the Alabama Small Business Financing Authority.

The Alabama Small Business Financing Act, House Bill 600 sponsored by Rep. Barry Moore (R-Enterprise), would set up an independent entity to assist companies with a variety of credit needs, operating under the Alabama Department of Economic and Community Affairs, or ADECA. Rep. Moore said the bill allows the state to strengthen and streamline ADECA’s existing business loan and grant programs, and allows for further state investment in the future.

“As a small businessman myself, I understand how difficult it is to finance a new venture or fund an expansion,” Rep. Moore said. “Loans are increasingly difficult to come by, even for good candidates with solid business plans. Many small businesses want to grow and create more jobs, but the recession and new federal banking laws have dried up the loan market. We can’t fix what Congress did with Dodd-Frank, and we can’t undo the banking debacle that happened on Wall Street. However, we can work as a state to make it easier for businesses to secure the capital they need to grow and create jobs.”

Others states have seen tremendous success with small business financing authorities.  Virginia’s authority has helped facilitate more than $1.5 billion in financing for thousands of new and existing businesses, creating and retaining more than 24,000 jobs. Their program has seen 30-1 private-public funding ratio, and in the first year of operation returned approximately $5.89 in new state revenue for every $1 invested.

Establishing a small business financing authority was a key recommendation of the Speaker’s Commission on Job Creation after its efforts last year seeking ideas on boosting private sector job growth. House Speaker Mike Hubbard thanked Rep. Moore for working with the Speaker’s Office and ADECA to make this legislation a reality.

“Job creation has been and continues to be our top priority this session,” Speaker Hubbard said. “One of the top inhibitors to small business growth is access to capital. Assisting viable companies attain loans is a real-world way to promote job growth. Rep. Barry Moore has worked diligently on this legislation for almost a year. I appreciate his efforts on this bill, as well as his continued dedication toward looking out for the interests of small businesses.”

In August, Alabama was awarded a $31.3 million grant through the U.S. Treasury’s State Small Business Credit Initiative to promote small business lending through three programs: the Alabama Capital Access Program, the Alabama Loan Guaranty Program, and the Alabama Loan Participation Program, all administered within ADECA. The Alabama Small Business Financing Act would codify the current SSBCI programs into law under the Alabama Small Business Financing Authority, an independent entity operating under the authority of ADECA.

Codifying the programs will strengthen and protect them from major administrative changes in the future, ensuring more consistency and less politics in the process. It also gives the programs the legal authority to modify the specific rates and terms of the programs to ensure that bank participation remains strong.

House Bill 588, sponsored by Representative Terri Collins (R-Decatur), would establish a simple, comprehensive and accurate grading system for schools, allowing parents and community leaders to better understand how their local schools are performing.

“Parents deserve to know how their child’s school is measuring up,” said Representative Collins.  “If we don’t have an honest, data-based assessment of how schools are doing, how can we know what improvements need to be made to ensure our children are getting the best education possible? This bill will provide a comprehensive, yet easy-to-understand evaluation of school performance.”

“Governor Bush’s record of improving public education speaks for itself. He told us this reform led to communities becoming more engaged in their public schools, demanding excellence. That kind of community ‘buy-in’ is exactly what many schools in Alabama need in order to improve,” Rep. Collins said.

Proposed revisions are focused on clearing up misconceptions and correcting any portions that might be vague or require additional definitions.

Many revisions are merely technical, while some are more substantive. All changes are aimed to maintain the strength of Alabama’s illegal immigration law, while making the law more workable for local governments, more enforceable for state and local police, and less burdensome for law-abiding citizens and businesses.

House Bill 658 would:

Keep and strengthen penalties for breaking illegal immigration laws by

• Increasing the penalty period for suspension of a business license for any business caught hiring illegal immigrants from 10 days to 60 days.
• Introducing a three-tiered penalty scheme that provides for tough but fair consequences for consecutive offenses.
• Heightening penalties for the concealment or harboring of illegal immigrants for offenses involving five of more aliens.

Make the law more workable and user-friendly for law-abiding citizens, local municipalities and businesses by

• Simplifying the verification process for public benefits and services, while maintaining strict standards.
• Clarifying potentially vague language and providing additional definitions to eliminate uncertainty for businesses and local governments in everyday dealings.
• Aligning language applying to public and private sector transactions to ensure consistency in enforcement.

Help state and local law enforcement better utilize the law to crackdown on illegal immigration, per their recommendation, by

• Strengthening the role of the Attorney General and local district attorneys in bringing legal action against accused lawbreakers.
• Allowing officers more flexibility in verifying the status of a suspected illegal immigrant in a traffic stop.
• Extending “reasonable suspicion” beyond the diver of a vehicle to include passengers in the event of a traffic citation or arrest.

Adjust certain sections in accordance with federal law so they may be enforced

• Simple revisions to section 8 will allow the state to ensure illegal immigrants cannot attend public colleges and universities.
• Aligning the concealment and harboring provisions in section 13 to federal law will allow the state to enforce that critical section as well.
• Clarifying the contracts provisions in section 27 to apply prospectively could lead to an injunction being  lifted and allow that section to be enforced.

From: Jason Isbell, Legislative Council

To: Members, Other Concerned Parties

House Republicans recently introduced a revised version of last year’s immigration law.  While House Bill 56 has received great support across the state, revisions made to strengthen HB56 have received misguided criticisms from some groups. In effort to clarify proposed changes of House Bill 658, below is a response to false claims that the bill somehow weakens the law when in fact the law is being strengthened.

Making changes to our law is by no means “premature” simply because the U.S. Supreme Court will be hearing a challenge to Arizona’s law in June.  While there are certain sections of Alabama’s law that will be similar to those sections of Arizona’s law under review by the Court, multiple sections of Alabama’s law will not be impacted in any way by the upcoming Arizona case.  In fact, making these changes now will most likely cause injunctions currently imposed on several sections of House Bill 56 to be lifted, whereas waiting to make those changes would cause those sections to otherwise remain unenforceable.

2.      Contractors should be “liable for illegal workers on their jobs

 3.      Citizens should not be prevented from suing state officials “who refuse to enforce” the law

Citizens will still be able to use the court system to force state officials to comply with the law.  In Sections 5 and 6, citizens can petition the appropriate local district attorney or the Attorney General to bring an action in circuit court to challenge an official or agency head who fails to comply with the law.  If the district attorney or Attorney General receives a petition but fails to timely act on it, he or she will have to publicly justify that decision.  With this change in House Bill 658, the chances of frivolous lawsuits will decrease and the proper law enforcement officials will be held just as accountable for enforcing the law as other public officials.

4.      Employers who fire workers to hire illegal aliens should not be given “virtual immunity”

The changes to Section 17 of House Bill 658 will by no means give “virtual immunity” to employers.  Under the original bill, an employer could have been deemed in violation of the law for failing to hire the least-qualified job applicant they had ever seen.  Under House Bill 658, an employer would not be acting discriminatorily if there was a legitimate business reason for not hiring that job applicant.  Remember, Section 15 would apply to all employers.  In other words, even if an employer has a legitimate business reason for not hiring someone, Section 15 would still bar employers from hiring persons not lawfully present in the country.

5.      Schools should compile data showing the costs of educating children of illegal immigrants

House Bill 658 would still require data to be collected in order to quantify the fiscal impact of educating the children of illegal immigrants.  But leaving Section 28 of House Bill 56 intact would not have made the law more enforceable because that section would remain enjoined by the 11^th Circuit Court of Appeals.  The proposed changes get to the heart of the Legislature’s intent – quantifying these educational costs – and allow the injunction to be lifted.

6.      Landlords should not be able to knowingly rent to illegal aliens

Similar to the point in #5, House Bill 658’s deletion of the “renting is harboring” language was a necessity brought on by the courts.  That language is and will continue to be enjoined by the courts, and its inclusion in Section 13 of House Bill 56 caused the entire section to be enjoined.  By leaving the “renting is harboring” language out of House Bill 658, and by making other technical changes, the injunction of Section 13 will likely be lifted.  Even still, a landlord who conceals, harbors, or shields from detection (or attempts or conspires to do so) – even if they conceal/harbor/shield through renting – will be liable under Section 13 for their actions.

7.      Employers who commit tax fraud by hiring illegal aliens should be guilty of a felony

Section 15 imposes severe penalties on businesses who hire illegal aliens, and any implication to the contrary is false.  However, the suggestion to increase tax code penalties on non-compliant businesses has been held by the court to be a penalty that a state is preempted from imposing.  We imposed this penalty in Section 16 of House Bill 56, but that section was enjoined.  Complying with this suggestion would cause the language to be enjoined again.

8.      Employers who refuse to enroll in E-verify should be guilty of a misdemeanor

Again, Section 15 imposes severe penalties on businesses who hire illegal aliens.  An employee who refuses to enroll in E-verify does so at his own peril, since properly using E-verify provides a “safe harbor” to businesses who unknowingly hire illegal aliens.  Contrary to some suggestions, the penalties of Section 15 not only provide sufficient incentive to enroll in and use E-verify, but also provide sufficient punishment to non-compliant businesses.  In stark contrast to such critique, note that Arizona’s law did not make it a misdemeanor if a business entity refused to enroll in E-verify, since such a penalty would be struck down.

9.      Businesses enrolled in E-verify should be posted on an appropriate state website

House Bill 658 allows E-verify enrollment to be verified at any time.  While one would suggest the posting of that information on a website, Section 23 of House Bill 658 would allow the Department of Homeland Security to request proof of E-verify enrollment from any business, and would give the department the authority to inspect any records related to E-verify enrollment.

MONTGOMERY – A bill proposing revisions to Alabama’s law cracking down on illegal immigration was introduced today in the Alabama House of Representatives.

House Bill 658, sponsored by Rep. Micky Hammon (R-Decatur), is aimed to maintain the strength of Alabama’s illegal immigration law, while making the law more workable for local governments, more enforceable for state and local police, and less burdensome for law-abiding citizens and businesses.

“The federal government has failed to enforce its laws against illegal immigration, so Alabama and several other states have taken action to crack down on this problem,” Rep. Hammon said. “The law we passed last year was strong, but as with most laws, it can be made better. We’ve worked for the last several months to see how we could make our law better, and I’m pleased with what we were able to produce. It keeps and strengthens penalties to ensure those living and working in Alabama are here legally.”

The bill has been assigned to the House Public Safety and Homeland Security Committee and could be debated in the full House within the next few weeks. House Speaker Mike Hubbard said he is confident the bill will be received favorably because adjusting laws to make them better is a common function of the Legislature.

“We examine existing laws every year to look for ways to make them better, and the illegal immigration law is no different,” Speaker Hubbard said. “Some activist groups don’t have a problem with illegal immigration and will only be happy if the law is repealed. That’s not going to happen. What we have is a bill that sharpens tools for law enforcement to more effectively crack down on lawbreakers, offers clarity to state and local agencies in their everyday dealings with the law, and ensures law-abiding residents and businesses aren’t subjected to unnecessary red tape.

“I can’t say enough about Rep. Micky Hammon and his leadership on this issue. He has worked for years to give Alabama the tools to crack down on illegal immigration, and I’m confident this proposal will further enhance those tools.”

The Education Options Act of 2012, House Bill 541 sponsored by Rep. Phil Williams (R-Huntsville), would help educators customize schools for the needs of their students by allowing school systems to:

• develop innovation plans that seek flexibility from burdensome state laws and regulations in exchange for greater accountability for performance, and;
• establish public charter schools in districts with persistently low-performing schools.

Rep. Williams said today’s committee vote was a big step forward for education reform in Alabama.

“Today was a victory for students and parents who have never been given an option of a quality school,” Rep. Williams said. “Public charter schools will bring a new dynamic to Alabama education that can breathe new life into areas that have fallen dreadfully behind. The great thing about this bill is that it offers every school district in Alabama many of the same flexibilities that are given to charter schools. If our administrators take advantage of this proposal, every school in Alabama could benefit from the Education Options Act.”

The House Ways and Means Education Committee deliberated the proposal for more than two weeks, eventually altering the plan to tighten the focus of charter schools to areas with struggling schools and limiting the total number of charter schools to 20 statewide. House Speaker Mike Hubbard said support for the bill was growing among House members.

“The more people learn about the opportunities charter schools can offer the more they support the idea of finally allowing them in Alabama,” Speaker Hubbard said. “Too often our system puts the needs of the education  bureaucracy above the needs of students. We saddle schools with  burdensome rules and regulations instead of getting out of the way and letting teachers teach. While we work to improve our overall education system from the ground up, we must also allow parents, educators and community leaders flexibility from one-size-fits-all regulations so they can fix local problems with local solutions.”

SYNOPSIS: This bill would establish the Education Options Act of 2012.
This bill authorizes the establishment of innovative schools and school systems in this state
by creating a process whereby school systems may enter into a school flexibility contract with the
State Department of Education that allows for flexibility from state laws, including State Board
of Education rules, regulations, and policies, in exchange for academic and associated goals.
This bill also authorizes the establishment of public charter schools in priority local school
systems and specifically provides that any public charter school established pursuant to this bill is
part of the state’s public education system. Further, this bill provides that only nonprofit,
nonreligious organizations may apply to receive a charter.

Page 1

A BILL TO BE ENTITLED AN ACT

Establishing the Education Options Act of 2012; to
provide an overview of the act; to provide legislative
findings and purposes; to provide definitions; to authorize
school systems to enter into school flexibility contracts with
the state; to provide for the Charter School Application
Review Council; to provide for the process to be followed
before a school flexibility contract is executed; to provide
for the roles and responsibilities of the State Department of
Education relating to public charter schools; to provide
enrollment requirements for public charter schools; to provide
for the roles and responsibilities of public charter school
authorizers; to provide for the process of requesting
proposals for public charter school applications; to specify
who may apply to open a public charter school; to provide for
the charter contract; to provide for the operation and funding
of public charter schools; to provide for public charter
school facilities; to provide for extracurricular and
interscholastic opportunities; and to provide for an effective
date.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Short title.

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This act shall be known and may be cited as the
Education Options Act of 2012.

Section 2. Overview.

(a) Innovative schools and school systems may be
established in Alabama in accordance with this act.
(b) Public charter schools may also be established
in Alabama in accordance with this act. All public charter
schools in the state established under this act are public
schools and are part of the public education system of the
state.
(c) This act should be interpreted liberally to
support the findings and purposes of this act and to advance
the continued commitment of the state to the mission, goals,
and diversity of public education.
Section 3. Legislative findings and purposes.

(a) The Legislature finds and declares all of the
following:
(1) It is in the best interests of the people of
Alabama to provide all children with public schools that
reflect high expectations and to create conditions in all
public schools where these expectations can be met.
(2) It is necessary to continue to search for ways
to strengthen the performance of elementary and secondary
public school students.
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(3) Those who know students best, parents and
educators, make the best education-related decisions regarding
students.

(4) Parents and educators have a right and a
responsibility to participate in the education institutions
which serve the children of Alabama.
(5) Public school programs, whenever possible,
should be customized to fit the needs of individual students.
(6) Students of all backgrounds are entitled to
equal access to a high quality education.
(b) Therefore, with this act, the Legislature
intends to accomplish all of the following:
(1) Provide school systems with additional tools
that may be used to better meet the educational needs of a
diverse student population.
(2) Encourage innovative education ideas that
improve student learning through high standards for student
performance.
(3) Allow public schools freedom and flexibility in
exchange for exceptional levels of results-driven
accountability.
(4) Provide students, parents, community members,
and local entities with expanded opportunities for involvement
in the public education system.
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(5) Provide additional high quality educational
options to all students, especially students in low performing
schools.
Section 4. Definitions.
For the purposes of this act, the following terms
shall have the following meanings:

(1) APPLICANT. Any person or group that develops and
submits an application for a public charter school to an
authorizer.
(2) APPLICATION. A proposal from an applicant to an
authorizer to enter into a charter contract whereby the
proposed school obtains public charter school status.
(3) AT-RISK STUDENT. A student who has an economic
or academic disadvantage that requires special services and
assistance to succeed in educational programs. The term
includes, but is not limited to, students who are members of
economically disadvantaged families, students who are
identified as having special educational needs, students who
are limited in English proficiency, students who are at risk
of dropping out of high school, and students who do not meet
minimum standards of academic proficiency.
(4) AUTHORIZER. An entity authorized under this act
to review applications, decide whether to approve or reject
applications, enter into charter contracts with applicants,
oversee public charter schools, and decide whether to renew,
not renew, or revoke charter contracts.
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(5) CHARTER CONTRACT. A fixed-term renewable
contract between a public charter school and an authorizer
that outlines the roles, powers, responsibilities, and
performance expectations for each party to the contract.

(6) CONVERSION PUBLIC CHARTER SCHOOL. A charter
school that existed as a non-charter public school before
becoming a public charter school.
(7) COUNCIL. The Charter School Application Review
Council created in Section 6.
(8) DEPARTMENT. The Alabama Department of Education.
(9) EDUCATION SERVICE PROVIDER. An entity with which
a public charter school intends to contract for educational
design, implementation, or management.
(10) GOVERNING BOARD. The independent board of a
public charter school that is party to the charter contract
with the authorizer and whose members have been elected or
selected pursuant to the application of the public charter
school. At least two members of the board shall be a parent of
a student attending the public charter school. Each governing
board is a state agency with local jurisdiction.
(11) INNOVATION PLAN. The request of a local school
system for flexibility and plan for annual accountability
measures and five-year targets for all participating schools
within its system.
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(12) LOCAL SCHOOL BOARD. A city or county board of
education exercising management and control of a local school
system pursuant to state law.
(13) LOCAL SCHOOL SYSTEM. A public agency that
establishes and supervises one or more public schools within
its geographical limits pursuant to state law.
(14) NON-CHARTER PUBLIC SCHOOL. A public school
other than a school formed pursuant to this act which is
established by a city or county board of education for the
purpose of providing educational services for students under
its jurisdiction.
(15) PARENT. A parent, guardian, or other person or
entity having legal custody of a child.
(16) PRIORITY LOCAL SCHOOL. A non-charter public
school labeled as persistently low-performing by the State
Department of Education, in the then-most recent United States
Department of Education School Improvement Grant application.
(17) PRIORITY LOCAL SCHOOL SYSTEM. A local school
system which contains a priority local school.
(18) PUBLIC CHARTER SCHOOL. A public school formed
pursuant to this act that satisfies all of the following:
a. Has autonomy over key decisions including, but
not limited to, decisions concerning finance, personnel,
scheduling, curriculum, instruction, and procurement.
b. Is governed by an independent governing board.
Page 7

c. Is established and operated under the terms of a
charter contract between the governing board and its
authorizer, in accordance with this act.
d. Is a school that admits students on the basis of
a random selection process if more students attempt to enroll
for admission than can be accommodated.
e. Provides a program of education that:
1. Includes any grade or grades from prekindergarten
to 12th grade, inclusive.
2. May include a focus on students with special
needs, such as at-risk students.
3. May include a specific academic approach or
theme, including, but not limited to, vocational and technical
training; natural resources and the environment; foreign
language and culture; visual and performing arts; liberal arts
and classical education; or science, mathematics, and
technology.
f. Operates in pursuit of a specific set of
educational objectives as defined in its charter contract.
g. Operates under the oversight of its authorizer in
accordance with its charter contract.
h. Is located in a priority local school system.
(19) SCHOOL FLEXIBILITY CONTRACT. A school
flexibility contract between the local school system and the
state wherein local school systems may apply for flexibility
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from state laws, including State Board of Education rules,
regulations, and policies.

(20) START-UP PUBLIC CHARTER SCHOOL. A public
charter school that did not exist as a non-charter public
school prior to becoming a public charter school.
(21) STUDENT. Any child who is eligible for
attendance in public schools in the state.
Section 5. Innovative school system status.

(a) Notwithstanding any other provision of law, a
public school or local school system may achieve innovative
school system status in accordance with this section. All
local school systems shall have an equal opportunity to
achieve innovative school system status as provided in this
section, and in no way shall one local school system be
favored over another local school system based upon its size,
location, student population, or some other possible measure.
(b) In order to be considered an innovative school
system, a local school system shall successfully comply with
the requirements and procedures as set forth in the
department’s guidance on school flexibility contracts, which
shall include, but not be limited to:
(1) Submission by a local school superintendent to
the department of a letter of intent to pursue a school
flexibility contract.
Page 9

(2) Submission by a local school board to the
department of a resolution supporting the intent of the local
school system to pursue a school flexibility contract.

(3) Submission by a local school board to the
department of a document of assurance that the local school
board will provide consistency in leadership and remain
committed to state standards, assessments, and academic rigor.
(4) Submission by a local school board to the
department of a resolution supporting the school flexibility
contract proposal and the anticipated timeline of the local
school system.
(c) Local school systems pursuing a school
flexibility contract shall have a superintendent who has
served a minimum of one calendar year in the local school
system. This subsection may be waived by the State
Superintendent of Education.
(d) Pursuant to State Board of Education rules, all
local school systems shall provide an opportunity for full
discussion and public input prior to submitting a final school
flexibility contract proposal to the department. Additionally,
local school systems shall ensure that their school
flexibility contract and innovation plan proposals are easily
accessible to the general public on the website of the local
school system at least two weeks prior to any public hearing
discussing the contract or plan.
Page 10

(e) The innovation plan of a local school system, at
a minimum, shall include the following:
(1) The school year the local school system expects
the school flexibility contract to begin.
(2) The list of state laws, including State Board of
Education rules, regulations, and policies the local school
system is seeking to waive in its school flexibility contract.
(3) A list of schools included in the innovation
plan of the local school system.
(4) The accountability measures and targets the
local school system seeks to achieve as justification for
granting the flexibility being sought.
(f) Local school systems are accountable to the
state for the performance of all schools in their systems,
including innovative schools, under state and federal
accountability requirements.
(g) Local school systems may not seek to waive
requirements imposed by federal law, requirements related to
the health and safety of students or employees, requirements
imposed by open records or open meetings laws, requirements
related to financial or academic accountability or
transparency, requirements for state assessments, requirements
designed to protect the civil rights of students or employees,
requirements related to participation in a state retirement
system or state health insurance plan, or any requirements
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related to tenure or fair dismissal including, specifically,
the Teacher Accountability Act and the Students First Act.

(h) Once finalized, the school flexibility contract
and innovation plan shall be submitted by the local school
superintendent, with the approval of the local school board,
to the State Superintendent of Education.
(i) Within 30 days of receiving the recommendation,
the State Superintendent of Education shall decide whether the
school flexibility contract and innovation plan should be
approved. If the State Superintendent of Education decides not
to approve a school flexibility contract and innovation plan,
he or she shall provide a written explanation for the decision
to the local school board that submitted the contract and
plan, and to the State Board of Education.
(j) The State Board of Education shall promulgate
any necessary rules required to implement this section
including, but not limited to:
(1) Specification of timelines for submission and
approval of the school flexibility contract and innovation
plan of the local school system.
(2) Authorization for the State Superintendent of
Education, upon approval by the State Board of Education, to
revoke a school flexibility contract for noncompliance or
nonperformance by a local school system.
(3) Specification of procedures that a local school
system shall follow in the event that its original school
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flexibility contract and innovation plan is not approved,
including the steps that may be taken to amend and resubmit
its school flexibility contract and innovation plan.

Section 6. The Charter School Application Review
Council.

(a) The Charter School Application Review Council is
established within the department.
(b) The mission of the council shall be to authorize
high quality public charter schools in accordance with the
powers expressly conferred on the council in subsection (c) of
Section 9.
(c) The council shall consist of the following
eleven members:
(1) The President of the State Board of Education,
who shall serve as chair of the council.
(2) The State Superintendent of Education, who shall
serve as vice-chair of the council.
(3) The member of the State Board of Education in
whose district is to be located the public charter school that
is the subject of the application before the council, or, if
no application is before the council, the Vice-President of
the State Board of Education.
(4) Four persons appointed by the President of the
State Board of Education.
(5) Two persons appointed by the Speaker of the
House of Representatives.
Page 13

(6) Two persons appointed by the President Pro
Tempore of the Senate.
(d) At least one member of the council shall be a
current or retired public school teacher, at least one member
of the council shall be a current or retired local public
school superintendent, and at least one member of the council
shall be a current or retired member of a local school board.
Also, at least two members of the council shall be parents who
reside in a priority local school system. All members of the
council shall reside in Alabama. Members appointed to the
council shall collectively possess strong experience and
expertise in public and nonprofit governance, strategic
planning, management and finance, public school leadership,
assessment, curriculum and instruction, and public education
law. Each appointed member of the council shall have
demonstrated understanding of charter schooling as a tool for
strengthening public education. Members of the council may not
be members of the Legislature and do not serve at the pleasure
of their appointing authority.
(e) Membership of the council shall be inclusive and
reflect the racial, gender, geographic, urban/rural, and
economic diversity of the state.
(f) The initial appointments to the council shall be
made no later than 90 days after December 31, 2012. Three
initial appointees, including one appointee of the Speaker of
the House of Representatives and one appointee of the
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President Pro Tempore of the Senate, shall serve one-year
terms; three initial appointees, including one appointee of
the Speaker of the House of Representatives and one appointee
of the President Pro Tempore of the Senate, shall serve
two-year terms; and the remaining initial appointees shall
serve three-year terms. After the first term of each initial
appointee has ended, the term of office for all council
members shall be three years. No member may serve more than
three consecutive terms.

(g) A member of the council may be removed from the
council by the Governor for any cause that renders the member
incapable or unfit to discharge his or her duties as a council
member. Whenever a vacancy on the council exists, the
appointing authority, within 90 days after the vacancy occurs,
shall appoint a member for the remaining portion of the term.
A member of the council shall abstain from any vote that
involves a local school system of which they are an employee
or of which they oversee as a member of a local school board.
(h) A majority of the council constitutes a quorum,
and any action of the council must be approved by a majority
of the council. The council, in all respects, shall comply
with the Alabama Open Meetings Act and state open records
laws. Notwithstanding the preceding sentence, members of the
council may participate in a meeting of the council by means
of telephone conference, video conference, or similar
communications equipment by means of which all persons
Page 15

participating in the meeting may hear each other at the same
time. Participation by such means shall constitute presence in
person at a meeting for all purposes, including the
establishment of a quorum. Such telephone or video conference
or similar communications equipment shall also allow members
of the public the opportunity to simultaneously listen to or
observe such meetings.

(i) The council may do all of the following:
(1) Engage professional and administrative staff,
including staff of the department.
(2) Adopt rules for the operation and organization
of the council.
(3) Review, at least once per year, department rules
and regulations concerning public charter schools and, if
needed, recommend to the State Superintendent of Education any
rule or regulation changes deemed necessary.
(4) Convene stakeholder groups and engage experts.
(5) Seek and receive state, federal, and private
funds.
(j) A council member may not receive compensation,
but shall be reimbursed by the department for travel expenses
at the same rates and in the same manner as state employees.
Section 7. Role of the department in the formation
of public charter schools.

(a) The department shall disseminate information on
how to form and operate a public charter school and on how to
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enroll in a public charter school once the school is created.
The department may provide assistance and guidance to
authorizers in developing effective authorization and
oversight procedures.

(b) The department may apply for assistance from a
federal charter school grant program on behalf of public
charter schools in the state. If the department receives a
grant from a federal charter school grant program, the grant
shall be used according to the applicable federal law, for
planning and start-up grants to public charter school
organizers, or for such activities as:
(1) Establishing a public charter school office in
the department.
(2) Providing information and technical assistance
to public charter school organizers and authorizers.
(3) Allocating funds to support the work of
authorizers.
(c) The department may promulgate administrative
rules pursuant to the Alabama Administrative Procedure Act to
implement this act or carry out its responsibilities under
this act.
(d) The department shall establish policies and
practices consistent with nationally recognized principles and
professional standards for authorizers of public charter
schools, including standards relating to all of the following:
(1) Organizational capacity and infrastructure.
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(2) Soliciting and evaluating applications.
(3) Ongoing public charter school oversight and
evaluation.
(4) Charter renewal decision making.
(e) Consistent with the policies and practices
established in subsection (d), the department may investigate
and, as appropriate, institute sanctions in response to
deficiencies in authorizer performance or legal compliance.
(f) Three years after December 31, 2012, the State
Superintendent of Education shall issue to the Governor, the
Legislature, and the public a report on the public charter
school program in the state. The State Superintendent of
Education shall determine the content of the report, but the
report, at a minimum, shall include an assessment of the
successes, challenges, and areas for improvement in meeting
the purposes of this act of the public charter school program,
as well as any suggested changes in state law or policy
necessary to strengthen the public charter school program. The
State Superintendent of Education shall issue a similar report
December 31, 2018, and every three years thereafter.
(g) On or before December 31, 2015, the State
Superintendent of Education shall recommend to the Governor
and the Legislature what changes, if any, should be made to
the definition of a priority local school system in Section 4
including, specifically, recommendations for what measurements
should be used to define a priority local school system.
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Section 8. Public charter school enrollment

(a) Public charter school organizers, in their
recruitment efforts, shall include all segments of the
populations served by the existing public schools in the area
where they propose to locate a public charter school.
(b) A public charter school shall enroll students in
accordance with this subsection.
(1) A public charter school may only accept
enrollment applications from students residing in the local
school system where the public charter school is to be
located, except that, subject to the limitations of paragraph
c. of subdivision (6), the children of the founders of a
public charter school, governing board members, and full-time
employees may apply for enrollment to the public charter
school regardless of whether they reside in the local school
system where the public charter school is located.
(2) A local school system may not require any
student enrolled in the local school system to attend a
start-up public charter school, but any student in the local
school system may choose to submit an enrollment application
to attend a start-up public charter school.
(3) A public charter school may not discriminate
against any person on the basis of race, creed, color,
ethnicity, national origin, religion, gender, income level,
sexual orientation, disabling condition, proficiency in the
English language, academic or athletic ability, or on any
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other basis that would be unlawful if done by a public school.
Additionally, a public charter school shall comply with all
applicable federal special education and antidiscrimination
laws and regulations. This subdivision may not be construed to
limit the formation of a public charter school that is
dedicated, for example, to focusing education services on
at-risk students or students with disabilities.

(4) A public charter school shall enroll all
students who wish to attend the school. Enrollment may not
exceed the capacity level as approved by the authorizer and
included in the charter contract.
(5) A public charter school may limit enrollment to
students within a given age group or grade level and may be
organized around a special emphasis, theme, or concept as
stated in the application for a charter contract.
(6) If capacity is insufficient to enroll all
students who wish to attend the public charter school, the
school shall select students through a random selection
process. The selection shall take place in a public meeting,
called by the authorizer, that is held no earlier than seven
days after the place and time of the meeting has been widely
disseminated to the general public. While public charter
schools are required to have an open enrollment process, a
public charter school shall give enrollment preference to
certain students or potential students, but only as provided
below by paragraphs a., b., and c. Students or potential
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students given enrollment preference shall be exempt from the
random selection process. Enrollment preference may be
provided only to the following:

a. Students enrolled in the public charter school
the previous year.
b. Siblings of students already enrolled in the
public charter school.
c. Children of the founders, governing board
members, and full-time employees of the public charter school,
as long as the students given an enrollment preference
pursuant to this paragraph, collectively, constitute no more
than five percent of the total student population of the
public charter school.
(7) The at-risk composition of the public charter
school enrollment shall reflect that of the students in
similar grades in the local school system from which the
public charter school is expected to enroll students, to be
defined for the purposes of this act as differing by no more
than 20 percent from that population. In the event the at-risk
composition of an applicant’s or public charter school’s
enrollment differs from the enrollment of students in similar
grades in the local school system from which the public
charter school is expected to enroll students by more than 20
percent, despite its best efforts, the authorizer from which
the applicant is seeking approval shall consider the
recruitment efforts and at-risk composition of the applicant
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pool in determining whether the applicant or charter school is
operating in a non-discriminatory manner. A finding by the
authorizer that the applicant is not operating in a
discriminatory manner justifies approval of the charter
without regard to the at-risk percentage requirement if the
application is acceptable in all other aspects. A finding by
the authorizer that the applicant or charter school is
operating in a discriminatory manner justifies the denial of a
charter school application or the revocation of a charter, as
applicable.

(8) Any non-charter public school converting
entirely to a public charter school shall adopt and maintain a
policy that gives enrollment preference to students who reside
within the former attendance area of that non-charter public
school.
(c) If a student who was previously enrolled in a
public charter school enrolls in another public school in this
state, the new school of the student shall accept credits
earned by the student in courses or instructional programs at
the public charter school in a uniform and consistent manner
and according to the same criteria that are used to accept
academic credits from other public schools.
Section 9. Public charter school authorizers.

(a) A public charter school may not be established
in this state unless its establishment is authorized by this
section. A public charter school may be established only in a
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priority local school system. No governmental entity or other
entity, other than an entity expressly granted chartering
authority as set forth in this section, may assume any
authorizing function or duty in any form. The following
entities may become authorizers of public charter schools:

(1) A local school board that oversees a priority
local school system, pursuant to subsection (b).
(2) The Charter School Application Review Council,
pursuant to subsection (c).
(b) A local school board that oversees a priority
local school system, at its sole discretion, may approve or
deny an application to form a public charter school within the
boundaries of the local school system overseen by the local
school board. Decisions made by a local school board that
oversees a priority local school system shall be subject to
appeal to the council pursuant to subsection (c).
(c)(1) The council may authorize the formation of a
public charter school only if both of the following factors
are met:

a. An application to form a public charter school in
a priority local school system is either denied by the local
school board overseeing that system or the application is not
acted on within 90 days of its submission.
b. The applicant chooses to appeal the decision of
the local school board to the council consistent with
subdivision (2) of subsection (a) of Section 11.
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(2) The council is expressly prohibited from
authorizing the formation of a public charter school in a
local school system that is not a priority local school
system. The council is also expressly prohibited from
authorizing the formation of a conversion public charter
school.

(3) While any public charter school, consistent with
subdivision (1) of subsection (b) of Section 8, may accept
enrollment applications from any student residing in the local
school system where the public charter school is to be
located, any public charter school whose formation is
authorized by the council must be located within a priority
local school’s attendance zone.
(d) An authorizer may do all of the following:
(1) Solicit, invite, receive, and evaluate
applications from organizers of proposed public charter
schools.
(2) Approve applications that meet identified
educational needs.
(3) Deny applications that do not meet identified
educational needs.
(4) Create a framework to guide the development of
charter contracts.
(5) Negotiate and execute sound charter contracts
with each approved public charter school.
Page 24

(6) Monitor the performance and compliance of public
charter schools, including no fewer than three site visits per
year, two of which shall take place when school is in session.
(7) Determine whether each charter contract merits
renewal or revocation.
(e) An authorizer shall submit to the Governor, the
Legislature, and the State Superintendent of Education a
publicly accessibly annual report within 60 days of the end of
each school fiscal year summarizing all of the following:
(1) The performance of all operating public charter
schools overseen by the authorizer, according to the
performance measures and expectations specified in the charter
contracts.
(2) The status of the public charter school
portfolio of the authorizer, identifying all public charter
schools within that portfolio as one of the following:
a. Approved, but not yet open.
b. Operating.
c. Terminated.
d. Closed.
e. Never opened.
(3) The oversight and services, if any, provided by
the authorizer to the public charter schools under the purview
of the authorizer.
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(4) The authorizing functions provided by the
authorizer to the public charter schools under its oversight,
including the operating costs and expenses of the authorizer.
(f) To cover costs for overseeing public charter
schools in accordance with this act, an authorizer may do all
of the following:
(1) Expend its own resources, seek grant funds, and
establish partnerships to support its public charter school
authorizing activities.
(2) Charge up to three percent of annual per student
allocations received by each public charter school it
authorizes. These funds shall be used to cover the costs for
an authorizer to provide oversight services to its public
charter schools.
(g) An employee, agent, or representative of an
authorizer may not simultaneously serve as an employee, agent,
representative, vendor, or contractor of a public charter
school of that authorizer.
(h)(1) With the exception of charges for oversight
services as required by subsection (f), a public charter
school may not be required to purchase services from its
authorizer as a condition of charter approval or of a charter
contract, nor may any such condition be implied.

(2) A public charter school authorized by a local
school system may choose to purchase services, such as
transportation-related or lunchroom-related services, from its
Page 26

authorizer. In such event, the public charter school and
authorizer shall execute an annual service contract, separate
from the charter contract, stating the mutual agreement of the
parties concerning any services to be provided by the
authorizer and any service fees to be charged to the public
charter school. A public charter school authorized by the
council may not purchase services from the council but,
consistent with this subdivision, may purchase services from
the local school system where the public charter school is
located.

(i) An authorizer or a designated representative of
an authorizer, at any time, may conduct a compliance
inspection of a public charter school under its oversight.
(j)(1) The department shall oversee the performance
and effectiveness of all authorizers established under this
act.

(2) Persistently unsatisfactory performance of the
portfolio of the public charter schools of an authorizer, a
pattern of well-founded complaints about the authorizer or its
public charter schools, or other objective circumstances may
trigger a special review by the department. In reviewing and
evaluating the performance of an authorizer, the department
shall apply nationally recognized principles and standards for
quality and equity in charter authorizing. If, at any time,
the department finds that an authorizer is not in compliance
with an existing charter contract or the requirements of all
Page 27

authorizers under this act, the department shall notify the
authorizer in writing of any identified problem, and the
authorizer shall have reasonable opportunity to respond and
remedy the problem.

(3) If a local school board acting as an authorizer
persists in violating a material provision of a charter
contract or fails to remedy any other authorizing problem
after due notice from the department, the department shall
notify the local school board, within 60 days, that it intends
to terminate the chartering authority of the local school
board unless the local school board demonstrates a timely and
satisfactory remedy for the violation or deficiencies. If the
local school board acting as an authorizer persists, after due
notice from the department, in violating a material provision
of a charter contract or fails to remedy other identified
authorizing problems, the department shall notify the local
school board, within a reasonable amount of time under the
circumstances, that it intends to revoke the chartering
authority of the local school board unless the local school
board demonstrates a timely and satisfactory remedy for the
violation or deficiencies.
(4) If the council persists in violating a material
provision of a charter contract or fails to remedy any other
authorizing problem after due notice from the department, the
department shall notify the council, within 60 days, that it
intends to notify the Governor, the Speaker of the House of
Page 28

Representatives, and the President Pro Tempore of the Senate
of the actions of the council unless the council demonstrates
a timely and satisfactory remedy for the violation or
deficiencies. Along with this notification, the department
shall publicly request in writing that the Governor, the
Speaker of the House of Representatives, and the President Pro
Tempore of the Senate demand that the appointee or appointees
either comply with the requests of the department or face a
revocation of their appointment to the council.

(5) In the event of revocation of the chartering
authority of an authorizer, the department shall manage the
timely and orderly transfer of each charter contract held by
that authorizer to another authorizer in the state, with the
mutual agreement of each affected public charter school and
proposed new authorizer. The new authorizer shall assume the
existing charter contract for the remainder of the charter
term. In the event a new authorizer cannot be secured, the
department shall manage the timely and orderly transfer of
affected students from the public charter school or schools to
the appropriate non-charter public school.
(k) Disputes between a governing board and an
authorizer shall be mediated and resolved by the State
Superintendent of Education, whose decision is final and
binding.
Section 10. Public charter school requests for
proposals.

Page 29

(a) To invite, solicit, encourage, and guide the
development of high quality public charter school
applications, the department shall issue and broadly publicize
a request for proposals. The content and dissemination of the
request for proposals shall be consistent with the purposes
and requirements of this act.
(b)(1) A request for proposals shall state clear,
appropriately detailed questions as well as guidelines
concerning the format and content essential for applicants to
demonstrate the capacities necessary to establish and operate
a successful public charter school.

(2) A request for proposals shall require
applications to provide or describe thoroughly, at a minimum,
all of the following essential elements of the proposed public
charter school plan:
a. The vision of the proposed public charter school,
including:
1. An executive summary.
2. The mission of the proposed public charter
school, including identification of the targeted student
population and the community the school hopes to serve.
3. Evidence of need and community support for the
proposed public charter school.
b. The governance plan of the proposed public
charter school, including:
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1. Background information on proposed board members
and any assurances or certifications required by the
authorizer.
2. Proposed governing bylaws.
3. An organization chart that clearly presents the
organizational structure of the school, including lines of
authority and reporting between the governing board, staff,
and any related bodies such as advisory bodies or parent and
teacher councils, and any external organizations that may play
a role in managing the school.
4. A clear description of the roles and
responsibilities for the governing board, the leadership and
management team of the school, and any other entities shown on
the organization chart.
5. Identification of the proposed founding governing
board members and, if identified, the proposed school leader
or leaders.
6. Background information on the leadership and
management team of the school, if identified.
c. The proposed plan of organization of the public
charter school, including all of the following:
1. The location or geographic area of the school.
2. The grades to be served each year for the full
term of the charter.
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3. Minimum, planned, and maximum enrollment per
grade per year for the term of the charter, based upon the
capacity of a program, class, grade level, or building.
4. The proposed calendar and sample daily schedule
of the school.
5. Plans and timelines for student recruitment and
enrollment, including random selection procedures and a
detailed explanation of how students will be recruited from
all racial, ethnic, geographic, and income groups in the
service area.
6. Explanations of any partnerships or contractual
relationships central to the operations or mission of the
school.
7. The proposals for providing transportation, food
service, and other significant operational or ancillary
services.
8. A facilities plan, including backup or
contingency plans if appropriate.
9. A detailed school start-up plan, identifying
tasks, timelines, and responsible individuals.
10. A closure protocol, outlining orderly plans and
timelines for transitioning students and student records to
new schools and for appropriately disposing of school funds,
property, and assets in the event of school closure.
d. The finances of the proposed public charter
school, including all of the following:
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1. A description of the financial plan and policies
of the school, including financial controls and audit
requirements.
2. Start-up and three-year budgets with clearly
stated assumptions.
3. Start-up and first-year cash-flow projections
with clearly stated assumptions.
4. Evidence of anticipated fundraising
contributions, if claimed in the application.
5. Evidence of financial accountability measures
that shall be implemented by the school that are consistent
with Section 16-6B-4, Code of Alabama 1975.
6. A description of the insurance coverage the
school proposes to obtain.
e. The student policy of the proposed public charter
school, including all of the following:
1. Plans for identifying, recruiting, and
successfully serving students with the wide range of learning
needs and styles typically found in schools of the sending
area.
2. Plans for compliance with applicable state and
federal laws, rules, and regulations, including special
education and antidiscrimination laws.
3. Student discipline plans and policies, including
those for special education students, and an explanation of
the research basis for the plan and policies.
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4. Student transfers out of the school to
non-charter public schools.

f. The academic program of the proposed public
charter school, including all of the following:
1. A description of the academic program.
2. A description of the instructional design of the
school, including the type of learning environment, class size
and structure, curriculum overview, teaching methods, and
research basis.
3. A description of cocurricular and extracurricular
programs and how each shall be funded and delivered.
g. The staff policy of the proposed public charter
school, including all of the following:
1. A staffing chart for the first year of the school
and a staffing plan for the term of the charter.
2. Plans for recruiting and developing school
leadership and staff.
3. The leadership and teacher employment policies of
the school, including performance evaluation plans.
4. Opportunities and expectations for parent
involvement and how the school plans to afford flexibility in
the expectations for those parents with significant barriers
to involvement.
(c) With respect to a proposed charter school that
intends to contract with an education service provider for
substantial education or management services, in addition to
Page 34

the other requirements of this section, the request for
proposals shall require applicants to do all of the following:

(1) Explain how and why the education service
provider was selected.
(2) Provide evidence of the success of the education
service provider in serving student populations similar to the
targeted population, including demonstrated academic
achievement and successful management of nonacademic school
functions, if applicable.
(3) Provide information on the proposed duration of
the service contract; roles and responsibilities; scope of
services and resources to be provided by the education service
provider; performance evaluation measures and timelines;
compensation structure, including clear identification of all
fees to be paid to the education service provider; methods of
contract oversight and enforcement; investment disclosure; and
conditions for renewal and termination of the contract.
(4) Provide a draft of the proposed service contract
including all of the terms in subdivisions (1), (2), and (3).
(5) Explain the relationship between the governing
board and the education service provider, specifying how the
governing board shall monitor and evaluate the performance of
the education service provider, the internal controls that
shall guide the relationship, and how the governing board
shall ensure fulfillment of performance expectations.
Page 35

(6) Provide a statement of assurance that the
governing board is legally and operationally independent from
the education service provider.
(7) Disclose and explain any existing or potential
conflicts of interest between the governing board and the
education service provider or any affiliated business
entities.
(d) With respect to a public charter school proposal
from an applicant that currently operates one or more schools,
in addition to the other requirements of this section, the
request for proposals shall require applicants to provide
evidence of past performance and current capacity for growth.
Section 11. Public charter school applicants.

(a) An applicant for approval as a public charter
school shall submit an application as set out in this section.
(1) An application seeking to establish a start-up
public charter school in a priority local school system, upon
the recommendation of the local school superintendent, shall
be first submitted to the local school board overseeing that
local school system. If an application submitted to a local
school board pursuant to the preceding sentence is denied, the
applicant may appeal the decision to the council. The council
may hear the appeal pursuant to subsection (c) of Section 9.
Applicants wishing to appeal the decision of a local school
board shall notify the council of the decision to appeal
within 30 days after the denial of the application. The
Page 36

council shall hear the appeal within 30 days of receiving this
notice. The denied application as well as any records related
to the denial of the application may be reviewed by the
council. The council, at its discretion, may also permit oral
testimony at any council meeting or hearing. All decisions
made by the council shall be final and may not be appealed.

(2) An application seeking to establish a conversion
public charter school in a priority local school system, upon
the recommendation of the local school superintendent, shall
be submitted to the local school board overseeing the
non-charter public school that is the subject of the
application. Decisions made by a local school system acting on
an application seeking to establish a conversion public
charter school shall be final and may not be appealed.
(3) An applicant may submit a proposal for a
particular public charter school to no more than one
authorizer at a time. Furthermore, an applicant shall submit a
separate application for each public charter school it seeks
to open.
(b)(1) An application to establish a start-up public
charter school may be submitted only by a nonprofit,
nonreligious organization.

(2) An application to establish a conversion public
charter school may be submitted only by the superintendent of
the local school system where the non-charter public school
that is the subject of the application is located.
Page 37

Furthermore, in addition to any other requirements in this
act, an application to establish a conversion public charter
school shall include a petition signed by a majority of
parents of students in the existing non-charter public school
that is the subject of the application.

(c) In reviewing and evaluating applications,
authorizers are encouraged to employ procedures, practices,
criteria, and standards consistent with nationally recognized
principles and standards for authorizing high quality public
charter schools.
(1) The application review process, at a minimum,
may include substantive participation by a team of reviewers
who collectively possess appropriate academic expertise and
operational experience with charter schools.
(2) The application review process may also include
a thorough evaluation of each application, an in-person
interview with the applicant, and a public hearing, notice of
which shall be posted on the website of the authorizer at
least two weeks prior to the hearing.
(3) In deciding whether to approve applications,
authorizers, at their discretion, may:
a. Grant charters to applicants that have
demonstrated competence in each element of the published
approval criteria of the authorizer and are likely to open and
operate a successful public charter school.
Page 38

b. Base decisions on documented evidence collected
through the application review process.
c. Follow charter granting policies and practices
that are transparent, based on merit, and avoid conflicts of
interest or any appearance of a conflict of interest.
(d) No later than 90 days after the filing of an
application, or, in the case of the council, after receiving
the notice of appeal of an applicant, an authorizer shall
decide to approve or deny an application. The authorizer shall
make and announce all charter approval or denial decisions in
a meeting of the governing entity of the authorizer that is
open to the public.
(1) An approval decision, if appropriate, may
include reasonable conditions that the applicant shall meet
before a charter contract may be executed.
(2) If the authorizer denies an application, the
authorizer, for public record, shall specifically state in
writing its reasons for denial. An authorizer is immune from
legal liability stemming from the mere denial of an
application. An applicant may subsequently reapply to that
authorizer, but not more than once during any two-year period.
(3) Within 10 days of taking action to approve or
deny an application, the authorizer shall report to the State
Superintendent of Education the action it has taken. The
authorizer shall provide a copy of the report to the applicant
Page 39

at the same time that the report is submitted to the State
Superintendent of Education.

(4) The State Superintendent of Education shall
register the charters approved by all chartering authorities
in chronological order by date of approval. No public charter
school may begin operating until its charter has been
registered by the State Superintendent of Education. The State
Superintendent of Education may register a cumulative total of
no more than 20 public charter schools. Once this cap is
reached, the State Superintendent of Education may not accept
further registrations from any authorizer.
(5) An approved application may not serve as the
charter contract of a school nor may it be incorporated by
reference into the charter contract.
(6) A decision on an application shall be conveyed
in writing to the applicant. A decision may grant approval or
conditional approval, request resubmission, or reject the
application, and shall include written reasons for the
decisions.
(e) This act may not be interpreted to allow the
conversion of a private school into a public charter school.
(f) Under no circumstances may this act be
interpreted to allow any applicant, or any entity with which
the applicant contracts, to provide financial incentives of
any sort to the parent of a public charter school student or a
potential public charter school student.
Page 40

(g) Each authorizer, at its discretion, may
establish a separate and expedited application process for
applicants that operate high performing public charter schools
so that high performing public charter schools may be
replicated. The public charter school replication application
shall require evidence of academic success for the school
design that the authorizer intends to replicate, along with
proof that the applicant has the financial and human resources
necessary to replicate the design successfully. Applications
without such evidence and proof shall be denied.
Section 12. Charter contracts.

(a) When an application is approved, a charter
contract shall be executed in accordance with this section.
(1) After approval of an application and no later
than 60 days before the opening date of the public charter
school, the authorizer and the governing board shall execute a
charter contract that sets forth:
a. Performance provisions describing the academic
and operational performance expectations and measures by which
the public charter school shall be judged.
b. Administrative provisions articulating the
administrative relationship between the authorizer and the
public charter school, including the rights and duties of each
party.
(2) The performance provisions set forth in a
charter contract under paragraph a. of subdivision (1):
Page 41

a. Shall include, but need not be limited to,
applicable federal and state accountability requirements.
b. May be refined or amended by mutual agreement of
the parties to the charter contract after the public charter
school is operating and has collected baseline achievement
data for its enrolled students.
c. Shall be set by a public charter school in
conjunction with its authorizer and must be designed to help
the school meet applicable federal and state requirements and
authorizer expectations.
d. Shall require the disaggregation of all student
performance data by major student subgroups.
e. Shall be based on a performance framework
developed by the authorizer that sets forth annual academic
and operational performance targets that shall guide the
evaluations of the authorizer of each public charter school,
including:
1. Student academic proficiency.
2. Student academic growth.
3. Achievement gaps in both proficiency and growth
between major student subgroups.
4. Attendance.
5. Recurrent enrollment from year to year.
6. With respect to high school, postsecondary
readiness.
7. Financial performance and sustainability.
Page 42

8. Governing board performance and stewardship.
9. Parent and community engagement.
(3) A charter contract shall be signed by the
president of the governing entity of the authorizer and the
president of the governing board.
(4) A public charter school may not commence
operations without a charter contract executed in accordance
with this section and approved in a meeting open to the public
of the governing entity of the authorizer.
(b) An authorizer may establish reasonable
requirements or conditions before the opening of a public
charter school to monitor the start-up progress of a newly
approved public charter school, ensure that it is prepared to
open smoothly on the date agreed, and ensure that the school
meets all building, health, safety, insurance, and other legal
requirements for school opening.
(c) For each public charter school it oversees, the
authorizer is responsible for annually collecting, analyzing,
and publicly reporting all data from state assessments and
other measures of performance in accordance with the
performance framework developed pursuant to this act. An
authorizer shall monitor the performance and legal compliance
of the public charter schools it oversees, including
collecting and analyzing all data to support ongoing
evaluation according to the charter contract. In the event
that the performance or legal compliance of a public charter
Page 43

school appears unsatisfactory, the authorizer shall promptly
notify the public charter school of perceived problems and
provide reasonable opportunity for the school to remedy the
problems.

(d) Terms of a charter contract shall be mutually
agreed upon by the applicant and the authorizer. If necessary,
either party to a contract may request that the State
Superintendent of Education review and mediate any terms of a
charter contract that the parties cannot agree upon after due
diligence.
(e) Nothing in this section shall preclude a charter
contract from including terms that require the holder of a
charter from posting a bond to cover expenses associated with
moving equipment to a public charter school or expenses
incurred as a result of the closure of a public charter
school.
Section 13. Charter term and renewal.

(a) An initial charter shall be granted for a term
of five operating years. The charter term commences on the
first day of operation of the public charter school. An
approved public charter school may delay its opening for one
school year in order to plan and prepare for the opening. If
the public charter school requires an opening delay of more
than one school year, the public charter school shall request
an extension from its authorizer. The authorizer may grant or
Page 44

deny the extension depending on the particular circumstances
of the public charter school.

(b) A charter may be renewed for successive terms of
five years, although an authorizer may grant a renewal for a
term not to exceed 10 years based on the performance,
demonstrated capacities, and particular circumstances of each
public charter school. If a charter is renewed for more than
five years, the authorizer shall issue a charter school
performance report every five years as called for by
subsection (c). An authorizer may grant renewal with specific
conditions for necessary improvements to a public charter
school.
(c) No later than June 30 of the fourth year of
operation under each five-year term of a charter contract, the
authorizer shall issue a charter school performance report. If
the charter of the public charter school is expiring, the
authorizer shall offer charter renewal application guidance to
the school.
(1) The performance report required in this
subsection shall summarize the performance record of the
public charter school to date, based on the data required by
this act and the charter contract, and shall provide notice of
any weaknesses or concerns perceived by the authorizer
concerning the school that may jeopardize its position in
seeking renewal if not timely notified. The school shall be
Page 45

given the opportunity to respond to the performance report and
submit any corrections or clarifications for the report.

(2) The renewal application guidance required by
this subsection shall include or refer explicitly to the
criteria and standards that shall guide the renewal decisions
of the authorizer, which shall be based on the performance
framework set forth in the charter contract and consistent
with this act. The renewal application guidance, at a minimum,
shall require and provide an opportunity for the public
charter school to do all of the following:
a. Present additional evidence, beyond the data
contained in the performance report, supporting its case for
charter renewal.
b. Describe improvements undertaken or planned for
the school.
c. Detail the plans of the school for the next
charter term.
(d) No later than September 30 of the final
authorized year of operation of a public charter school under
a term of a charter contract, the governing board of a public
charter school seeking renewal shall submit a renewal
application to the authorizer pursuant to any renewal
application guidance offered by the authorizer.
(e) An authorizer shall rule by resolution on a
renewal application under this section no later than 45 days
after the filing of the renewal application. In making charter
Page 46

renewal decisions, every authorizer shall do all of the
following:

(1) Ground its decision in evidence of the
performance of the public charter school over the term of the
charter in accordance with the performance framework set forth
in the charter contract.
(2) Ensure that data used in making renewal
decisions are available to the school and the public.
(3) Provide a public report summarizing the evidence
basis for each decision.
(f) A decision by an authorizer to revoke or not to
renew the charter of a public charter school shall be made in
accordance with this subsection.
(1) A charter shall be revoked at any time or not
renewed if the authorizer determines that the public charter
school failed to comply with this act or did any of the
following:
a. Committed a material violation of any of the
terms, conditions, standards, or procedures required under
this act or the charter contract.
b. Failed to meet or make sufficient progress toward
the performance expectations set forth in the charter
contract.
c. Failed to meet generally accepted standards of
fiscal management.
Page 47

d. Violated any provision of law from which the
school was not exempted.
(2) If an authorizer revokes or does not renew a
charter, the authorizer shall clearly state, in a resolution
of its governing entity, the reasons for the revocation or
nonrenewal. The resolution may only be adopted at a public
meeting of the governing entity that is held after notice of
the meeting has been made available to the general public for
no fewer than seven days in advance of the meeting.
(g) Within 10 days of taking action to renew, not
renew, or revoke a charter under this section, the authorizer
shall report to the State Superintendent of Education the
action taken and shall provide a copy of the report to the
public charter school at the same time that the report is
submitted to the State Superintendent of Education. The report
shall include a copy of the governing entity of the resolution
setting forth the action taken and reasons for the decision.
(h) In the event a public charter school closes for
any reason:
(1) The authorizer shall oversee and work with the
closing public charter school to ensure timely notification to
parents, orderly transition of students and student records to
new schools, and proper disposition of school funds, property,
and assets in accordance with the requirements of this act.
(2) The assets of the public charter school shall be
distributed first to satisfy outstanding payroll obligations
Page 48

for employees of the school, next to satisfy outstanding
obligations owed to local school boards or authorizers
providing services to the public charter school, and finally
to creditors of the school. Any remaining funds must be paid
to the State Treasurer to the credit of the local school board
overseeing the local school system where the public charter
school is located. If the assets of the school are
insufficient to pay all parties to whom the school owes
compensation, the prioritization of the distribution of assets
may be determined by decree of a court of law.

(3) A charter contract and its oversight may not be
transferred from one authorizer to another before the
expiration of the charter contract term except by mutual
agreement of all parties.
Section 14. Public charter school operations.

(a) Notwithstanding any provision of law to the
contrary, to the extent that any provision of this act is
inconsistent with any other state or local law, rule, or
regulation, this act shall govern and is controlling.
(1) A public charter school is subject to all
federal laws and authorities, to local law not inconsistent
with this act, and to the charter contract.
(2) A single governing board may be issued one or
more charter contracts.
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(3) Each public charter school shall operate
pursuant to its own distinct charter as a state agency with
local jurisdiction.

(b)(1) A public charter school established in
accordance with this act functions for all purposes as a local
educational agency. Local educational agency status does not
preclude a public charter school from developing links to
local school systems for services, resources, and programs, by
mutual agreement or by formal contract.

(2) The public charter school is responsible for
meeting the requirements of local educational agencies under
applicable federal, state, and local law, including those
relating to special education, receipt of funds,
interscholastic athletics, and compliance with funding
requirements.
(3) The public charter school has sole
responsibility for special education at the school, including
identification and provision of service, and is responsible
for meeting the needs of enrolled students with disabilities.
(c) A public charter school has all the powers
necessary for carrying out the terms of its charter contract,
including the power to do all of the following:
(1) Receive and disburse funds for school purposes.
(2) Contract or cooperate with non-charter public
schools for service for students with special needs, English
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language learner students, and other specialized populations,
as well as for mutually agreed administrative services.

(3) Secure appropriate insurance and enter into
contracts and leases.
(4) Contract with an education service provider for
the management and operation of the school, as long as the
governing board of the school retains oversight authority over
the school.
(5) Incur debt, upon the approval of the State
Superintendent of Education, in reasonable anticipation of the
receipt of public or private funds.
(6) Pledge, assign, or encumber its assets to be
used as collateral for loans or extensions of credit.
(7) Solicit and accept any gifts or grants for
school purposes subject to applicable laws and the terms of
its charter contract.
(8) Acquire real property for use as its facility or
facilities from public or private sources.
(d) A public charter school is subject to the
general requirements set out in this subsection.
(1) A public charter school may not discriminate
against any person on the basis of race, creed, color,
ethnicity, national origin, religion, gender, income level,
sexual orientation, disabling condition, proficiency in the
English language, academic or athletic ability, or on any
other basis that would be unlawful if done by a public school.
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(2) A public charter school may not engage in any
religious practices in its educational program, admissions, or
employment policies or operations.
(3) A public charter school may not charge tuition
and may only charge such fees as may be imposed by other
public schools in the state.
(4) If the public charter school operates its own
transportation system, the public charter school shall have a
plan that describes how the school shall meet the
transportation needs of its students, and such plan shall be
consistent with applicable federal and state school-related
transportation safety regulations.
(5) The powers, obligations, and responsibilities
set forth in a charter contract may not be delegated or
assigned by either party.
(e) The applicability of other laws, rules, and
regulations to public charter schools is as set out in this
subsection.
(1) Public charter schools are subject to the same
civil rights and health and safety requirements applicable to
other public schools in the state.
(2) Public charter schools are subject to the same
student standards, assessment, and accountability requirements
applicable to other public schools in the state, but nothing
in this act precludes a public charter school from
establishing additional student assessment measures that go
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beyond state requirements if the authorizer of the school
approves such measures.

(3) Governing boards are subject to and shall comply
with all open records and open meetings laws of the state.
(4) Except as provided in this act and its charter
contract, a public charter school is exempt from all statutes
and rules applicable to a public school, a local school board,
or a local school system, although it may elect to comply with
one or more provisions of these statutes or rules.
(5) A public charter school is exempt from the
restrictions normally associated with any state-funded
categorical education funding program, including,
specifically, any restrictions required for participation in
the apportionment of funds appropriated from the Foundation
Program Fund.
(f) This subsection governs teacher employment in a
public charter school.
(1) A public charter school shall comply with
applicable federal laws and regulations regarding the
qualification of teachers and other instructional staff.
(2) All full-time teachers in a public charter
school shall either hold an appropriate teaching certificate
issued by the Alabama Department of Education or become
certified within two years of the date they are hired, except
that certification is not necessarily required for those
full-time teachers with an advanced degree in the curricular
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area in which they teach, professional certification in the
curricular area in which they teach, or unique expertise or
experience in the curricular area in which they teach.

(3) Teachers in charter schools have the same rights
and privileges as other public school teachers except as
otherwise provided in this act, except that a public charter
school is expressly exempt from, but may choose to comply
with, state laws related to employee tenure and principal
contracts.
(4) Teachers and other public charter school
personnel, as well as governing board members, are subject to
criminal history record checks and fingerprinting requirements
applicable to other public schools.
(5) Any other provision of this act notwithstanding,
a non-charter public school converting entirely to a public
charter school shall adopt and maintain a policy that gives a
hiring opportunity to those who are full-time employees of the
non-charter public school at the time the charter contract
becomes effective. This provision may not be interpreted to
mandate the hiring of such employees.
(g) A public charter school shall adhere to
generally accepted accounting principles and shall annually
engage, at the expense of the public charter school, the
Alabama Department of Examiners of Public Accounts to do an
independent audit of the finances of the school.
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(h) Public charter schools have the option of
allowing their employees to be enrolled in and participate in
the Alabama Teachers’ Retirement System and the Public
Education Employees’ Health Insurance Plan.

(1) Within the first year of operation, a public
charter school shall make a one-time irrevocable election of
whether it will allow its employees to be enrolled in and
participate in the Alabama Teachers’ Retirement System and the
Public Education Employees’ Health Insurance Plan.
(2) Notwithstanding the provisions of Section 15, if
a public charter school elects to not allow its employees to
be enrolled in and participate in the Alabama Teachers’
Retirement System and the Public Education Employees’ Health
Insurance Plan, then any funds attributed to an appropriation
for the expenses of participating in the system and plan shall
not be forwarded by any local educational agency to a public
charter school. If applicable, employees must sign a form
designed by the Retirement Systems of Alabama indicating that
they are aware that the public charter school where they are
employed has elected for its employees to not participate in
the system and plan. Service in a public charter school that
elects to not allow its employees to be enrolled in and
participate in the Alabama Teachers’ Retirement System shall
not be considered as eligible service credit for purposes of
calculating public retirement benefits.
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(i) Employees of a public charter school, as well as
members of the governing board of a public charter school,
shall demonstrate to the authorizer of the public charter
school that they are citizens of or lawfully present in the
United States. Additionally, employees of a public charter
school, at the time of their employment, shall either reside
in Alabama or demonstrate their intent to establish residency
in Alabama within 120 days of when their employment begins.
Section 15. Public charter school funding.

(a) Students enrolled in and attending public
charter schools shall be included in all enrollment and
attendance counts of students of the local school systems in
which the students reside. The public charter school shall
report all such data to the local school systems of residence
in a timely manner. Each local school system shall report such
enrollment, attendance, and other counts of students to the
department in the manner required by the department.
(b) The following provisions govern operational
funding.
(1) For each of its students, a public charter
school shall receive the same amount of state and local funds,
including funds earmarked for transportation, school nurses,
technology coordinators, and other line items that may be
included in the appropriation for the Foundation Program Fund,
that, for the then-current fiscal year, would have otherwise
been allocated on behalf of each public charter school student
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to the local non-charter public school of each student’s
residence. This amount shall reflect the status of each
student according to grade level, economic disadvantage,
limited English proficiency, and special education needs.

(2) The state funds described in subdivision (1)
shall be forwarded on a quarterly basis to the public charter
school by the department. The local funds described in
subdivision (1) shall be forwarded on a quarterly basis to the
public charter school by the local educational agency of the
student’s residence. Additionally, any local revenues
restricted, earmarked, or committed by statutory provision,
constitutional provision, or bond covenant pledged or imposed
by formal action of the local board of education or other
authorizing body of government, shall be excluded by the local
educational agency of the student’s residence when determining
the amount of funds to be forwarded by the agency to the
public charter school. Similarly, public charter schools that
do not provide transportation services shall not be allocated
any federal, state, or local funds otherwise earmarked for
transportation-related expenses.
(3) If necessary, the department shall adopt rules
governing how to calculate and distribute these per-student
allocations, as well as any rules governing cost-sharing for
students participating in gifted, talented, vocational,
technical, or career education programs.
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(c) The following provisions govern special
education funding.

(1) The funding and educational decision-making
process for special education students attending a public
charter school is the sole responsibility of the public
charter school. Nothing in this act precludes the local
educational agency of residence from participating in the
development of a student’s individualized education plan.
(2) The department shall pay directly to the public
charter school any federal or state aid attributable to a
student with a disability attending the public charter school
in proportion to the level of services for the student with a
disability that the public charter school provides directly or
indirectly. The local school system of residence shall pay
directly to the public charter school any local aid
attributable to a student with a disability attending the
public charter school in proportion to the level of services
for the student with a disability that the public charter
school provides directly or indirectly. The state and local
payments shall be made in the same manner and based on the
same funding assumptions that would have otherwise been used
by the local school system of residence of the student.
(d) Except as otherwise provided in this chapter,
the state shall send applicable federal funds directly to
public charter schools attended by eligible students.
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(1) Public charter schools with students eligible
for funds under Title I of the federal Elementary and
Secondary Education Act of 1965 shall receive and use these
funds in accordance with federal and state law.
(2) A public charter school shall be considered a
local educational agency for purposes of applying for
competitive grants.
(e) A public charter school may receive gifts and
grants from private sources.
(f) A public charter school may not levy taxes or
issue bonds secured by tax revenues, although nothing in this
act precludes a public charter school from issuing bonds
secured by other sources of revenue, including allocations of
federal, state, or local funds, just as nothing in this act
precludes one or more public charter schools from pooling
their resources together to issue bonds. The proceeds from the
sale of any bonds secured by state or local funds shall be
used solely for public charter schools located in Alabama.
(g) In the event of the failure of the local school
system to make payments required by subsections (b) and (c),
the State Treasurer shall deduct from any state funds that
become due to the local school system an amount equal to the
unpaid obligation. The State Treasurer shall pay over the
amount to the public charter school upon certification of the
department.
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(h) Any money received by a public charter school
from any source and remaining in the accounts of the school at
the end of any fiscal year shall remain in the accounts of
that school for use by that school during subsequent fiscal
years and does not revert to the authorizer or to the state.
(i) Nothing in this act may be construed to prohibit
any person or organization from providing funding or other
assistance for the establishment or operation of a public
charter school. The governing board of a public charter school
may accept gifts, donations, or grants of any kind made to the
public charter school and expend or use such gifts, donations,
or grants in accordance with the conditions prescribed by the
donor except that a gift, donation, or grant may not be
accepted if subject to a condition that is contrary to any
provision of law, including state ethics laws, or term of the
charter contract.
Section 16. Public charter school facilities.

(a) A public charter school may acquire facilities
and property in accordance with this section.
(1) A public charter school may purchase or lease a
closed public school facility or property or unused portions
of a public school facility or property located in a local
school system from which it draws its students if the local
school system decides to sell or lease the public school
facility or property. The local school system may not require
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purchase or lease payments that exceed the fair market value
of the property.

(2) A public charter school may negotiate and
contract with a local school system, the governing body of a
state college or university or public community college or any
other public or for-profit or nonprofit private entity for the
use of a school building.
(3) Library, community service, museum, performing
arts, theater, cinema, church, community college, college, and
university facilities may provide space to public charter
schools within their facilities under their preexisting zoning
and land use designations.
(4) A public charter school may purchase or lease at
or below fair market value part or all of any surplus or
unused state-owned facility or property located in the local
school system from which it draws its students. The state
agency in control of the facility may not require purchase or
lease payments that exceed the fair market value of the
property.
(5) The same zoning rules that apply to other public
schools apply to public charter schools.
(b) The State Building Commission shall be the
agency that has jurisdiction for the purpose of inspection of
the facility and issuance of a certificate of occupancy for
the facility. A facility of a public charter school is subject
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to the same building codes, regulations, and fees that apply
to other public schools.

(c) A facility, or portion thereof, used to house a
public charter school is exempt from property taxes.
Section 17. Extracurricular and interscholastic
activities at public charter schools.

(a) A public charter school is eligible for
state-sponsored or local school system-sponsored
interscholastic leagues or competitions, private governing
agency-sponsored leagues or competitions, such as leagues or
competitions sponsored by the Alabama High School Athletic
Association, awards, scholarships, and recognition programs
for students, educators, administrators, and schools to the
same extent as non-charter public schools.
(b) A local school system or public school may not
impose additional requirements on a public charter school
student to participate in extracurricular activities that are
not imposed on full-time students of the public school. All
applicable Alabama High School Athletic Association
eligibility rules apply to a public charter school, including
transfer, attendance zone, and enrollment rules. If a public
charter school does not have an athletic program in any sport,
the students attending that public charter school may be
eligible for athletics at the non-charter public school for
which they are zoned under Alabama High School Athletic
Association rules.
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Section 18. The provisions of this act are

severable. If any part of this act is declared invalid or
unconstitutional, that declaration shall not affect the part
which remains.

Section 19. This act shall become effective on
December 31, 2012, following its passage and approval by the
Governor, or its otherwise becoming law.

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