HB 549 Summary

• Requires annual audits of community school operators by the State Auditor, covering all accounts, reports, and records related to public funds for educational services and school management.

• Restricts for-profit operators: community schools with for-profit operators no longer qualify as public schools effective July 1, 2023; for-profit operators/management companies must become nonprofit organizations by that date or schools must close.

• Expands public records access to include records kept by community school sponsors, governing authorities, and contracted service providers, with statutory damages of up to $1,000 available for noncompliance.

• Establishes operator contract requirements including early termination criteria, property ownership stipulations, and restrictions on real property leases; limits operator profit to 5% of total state payments received.

• Requires community schools to adopt annual budgets by October 31st in a standardized Department of Education format that itemizes administrative, instructional, and support service costs.