SB 1038 - Charter School Excellence Act

• Establishes a "Statement of Need" requirement for charter schools effective July 1, 2016, requiring the Department of Education to assess whether existing traditional public schools can meet educational needs before approving new or expanded charter schools.

• Creates an application and review process including letters of intent filed 30 days before applications, evaluation criteria focused on non-duplication and innovation, and fees ranging from $10,000 to $50,000 per application.

• Authorizes administrative hearings and judicial review of Department decisions, with the department issuing final orders within 45 days of an administrative law judge's recommended order.

• Allows conditional issuance of statements of need with monitoring requirements, imposing fines up to $1,000 per day for noncompliance, with penalties deposited into the State School Trust Fund.

• Makes it illegal to undertake charter school projects subject to review without a valid statement of need (second-degree misdemeanor) and prohibits transfer of statements of need to other persons (first-degree misdemeanor or up to $10,000 fine).