H.B. 707 Summary

• Requires the Department of Education to submit an annual manual on full-time equivalency student enrollment reporting to the Joint Committee on Agency Rule Review by May 1st, with public hearings held to determine if schools can reasonably comply with proposed changes.

• Amends community school contract requirements to include detailed accounting of management company revenues and expenses, operator loan documentation, independent auditor provisions, and subcontract disclosures.

• Establishes liability indemnification requirements for management companies with business or familial relationships to community school governing authorities, up to the amount of profits realized.

• Provides specific funding formulas for community schools based on student categories (special education, career-technical, limited English proficient, economically disadvantaged), with reduced payments for internet- or computer-based schools.

• Creates a legislative committee to study and report by November 1, 2018 on alternative funding systems for online schools based on competency demonstration rather than enrollment hours, and on modifying the 105 consecutive hours participation requirement.