Enact the Charter School Sponsor and Operator Rating Act

hb874_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 874

2025-2026

Representatives Brennan, Baker

To
amend sections 3314.012, 3314.016, 3314.021, and 3314.031 and to
enact section 3314.0111 of the Revised Code
to
enact the Charter School Sponsor and Operator Rating Act regarding
report cards for community school sponsors and operators.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 3314.012, 3314.016, 3314.021, and 3314.031 be amended and
section 3314.0111 of the Revised Code be enacted to read as follows:

Sec.
3314.012.
(A)
Except as provided in section 3314.017 of the Revised Code, the
department of education and workforce shall issue an annual report
card for each community school, regardless of how long the school has
been in operation. The report card shall report the academic and
financial performance of the school
.

The report card shall include all information applicable to school
buildings under section 3302.03 of the Revised Code. The ratings a
community school receives under section 3302.03 of the Revised Code
for its first two full school years shall not be considered toward
automatic closure of the school under section 3314.35 of the Revised
Code or any other matter that is based on report card ratings.

(B)
Upon receipt of a copy of a contract between a sponsor and a
community school entered into under this chapter, the department
shall notify the community school of the specific model report card
that will be used for that school.

(C)
Report cards shall be distributed to the parents of all students in
the community school, to the members of the board of education of the
school district in which the community school is located, and to any
person who requests one from the department.

(D)
The department shall include on a report card issued to a community
school under this section or section 3314.017 of the Revised Code
both of the following:

(1)
A link to the web site of the community school's sponsor and its
sponsor report card issued under section 3314.0111 of the Revised
Code;

(2)(a)
The name of the operator of the community school, if the community
school has one, and whether that operator is a nonprofit or
for-profit entity;

(b)
A link to the web site of the community school's operator and its
operator report card issued under section 3314.031 of the Revised
Code.

The
information required under division (D) of this section shall be
included on the home page of the community school report card,
presented with other basic information on the community school.

Sec.
3314.016.
This
section applies to any entity that sponsors a community school,
regardless of whether section 3314.021 or 3314.027 of the Revised
Code exempts the entity from the requirement to be approved for
sponsorship under divisions (A)(2) and (B)(1) of section 3314.015 of
the Revised Code. The office of Ohio school sponsorship established
under section 3314.029 of the Revised Code shall be rated under
division (B) of this section, but divisions (A) and (C) of this
section do not apply to the office.

(A)
An entity that sponsors a community school shall be permitted to
enter into contracts under section 3314.03 of the Revised Code to
sponsor additional community schools only if the entity meets all of
the following criteria:

(1)
The entity is in compliance with all provisions of this chapter
requiring sponsors of community schools to report data or information
to the department of education and workforce.

(2)
The entity is not rated as "ineffective" under division
(B)(5) of this section.

(3)
Except as set forth in sections 3314.021 and 3314.027 of the Revised
Code, the entity has received approval from and entered into an
agreement with the department pursuant to section 3314.015 of the
Revised Code.

(B)(1)
The department shall develop and implement an evaluation system that
annually rates and assigns an overall rating to each entity that
sponsors a community school. The department, not later than the first
day of February of each year, shall post on the department's web site
the framework for the evaluation system, including technical
documentation that the department intends to use to rate sponsors for
the next school year. The department shall solicit public comment on
the evaluation system for thirty consecutive days. Not later than the
first day of April of each year, the department shall compile and
post on the department's web site all public comments that were
received during the public comment period. The evaluation system
shall be posted on the department's web site by the fifteenth day of
July of each school year. Any changes to the evaluation system after
that date shall take effect the following year. The evaluation system
shall be based on the following components:

(a)
Academic performance of students enrolled in community schools
sponsored by the same entity. The academic performance component
shall be derived from the performance measures prescribed for the
state report cards under section 3302.03 or 3314.017 of the Revised
Code, and shall be based on the performance of the schools for the
school year for which the evaluation is conducted. In addition to the
academic performance for a specific school year, the academic
performance component shall also include year-to-year changes in the
overall sponsor portfolio. For a community school for which no graded
performance measures are applicable or available, the department
shall use nonreport card performance measures specified in the
contract between the community school and the sponsor under division
(A)(4) of section 3314.03 of the Revised Code.

(b)
Adherence by a sponsor to the quality practices prescribed by the
department under division (B)(3) of this section.

(c)
Compliance with all applicable laws and administrative rules by an
entity that sponsors a community school.

Under
the evaluation system prescribed under division (B)(1) of this
section, the department shall not assign an overall rating of
"ineffective" or lower to an entity that sponsors a
community school solely because that entity received no points on one
of the components prescribed under that division.

(2)
In calculating an academic performance component, the department
shall exclude all community schools that have been in operation for
not more than two full school years, all community schools whose
contracts were not renewed or terminated by the sponsor pursuant to
section 3314.07 of the Revised Code before the evaluation, and all
community schools described in division (B)(2) of section 3314.35 of
the Revised Code. However, the academic performance of the community
schools described in division (B)(2) of section 3314.35 of the
Revised Code shall be reported, but shall not be used as a factor
when determining a sponsoring entity's rating under this section.

(3)
The department, in consultation with entities that sponsor community
schools, shall prescribe quality practices for community school
sponsors and develop an instrument to measure adherence to those
quality practices. The quality practices shall be based on standards
developed by the national association of charter school authorizers
or any other nationally organized community school organization.

(4)
The director of education and workforce shall adopt rules in
accordance with Chapter 119. of the Revised Code prescribing
standards for measuring compliance with applicable laws and rules
under division (B)(1)(c) of this section.

(5)
The department annually shall rate all entities that sponsor
community schools as either "exemplary," "effective,"
"ineffective," or "poor," based on the components
prescribed by division (B) of this section, where each component is
weighted equally. A separate rating shall be given by the department
for each component of the evaluation system.

The
department shall publish the ratings between the first day of October
and the fifteenth day of November.

Prior
to the publication of the final ratings, the department shall
designate and provide notice of a period of at least ten business
days during which each sponsor may review the information used by the
department to determine the sponsor's rating on the components
prescribed by
division
(B)(1)
divisions
(B)(1)(b) and (c)

of this section. If the sponsor believes there is an error in the
department's evaluation, the sponsor may request adjustments to the
rating of
any
either

of those components based on documentation previously submitted as
part of an evaluation. The sponsor shall provide to the department
any necessary evidence or information to support the requested
adjustments. The department shall review the evidence and
information, determine whether an adjustment is valid, and promptly
notify the sponsor of its determination and reasons. If any
adjustments to the data could result in a change to the rating on the
applicable component or to the overall rating, the department shall
recalculate the ratings prior to publication.

The
department shall provide training on an annual basis regarding the
evaluation system prescribed under this section. The training shall,
at a minimum, describe methodology, timelines, and data required for
the evaluation system. The first training session shall occur not
later than March 2, 2016. Beginning in 2018, the training shall be
made available to each entity that sponsors a community school by the
fifteenth day of July of each year and shall include guidance on any
changes made to the evaluation system.

(6)(a)
Entities with an overall rating of "exemplary" may take
advantage of the following incentives:

(i)
Renewal of the written agreement with the department, not to exceed
ten years, provided that the entity consents to continued evaluation
of adherence to quality practices as described in division (B)(1)(b)
of this section;

(ii)
The ability to extend the term of the contract between the sponsoring
entity and the community school beyond the term described in the
written agreement with the department;

(iii)
An exemption from the preliminary agreement and contract adoption and
execution deadline requirements prescribed in division (D) of section
3314.02 of the Revised Code;

(iv)
An exemption from the automatic contract expiration requirement,
should a new community school fail to open by the thirtieth day of
September of the calendar year in which the community school contract
is executed;

(v)
No limit on the number of community schools the entity may sponsor;

(vi)
No territorial restrictions on sponsorship.

An
entity may continue to sponsor any community schools with which it
entered into agreements under division (B)(6)(a)(v) or (vi) of this
section while rated "exemplary," notwithstanding the fact
that the entity later receives a lower overall rating.

(b)
Entities with an overall rating of "exemplary" shall not be
evaluated by the department for five full school years following the
school year for which the entity received the "exemplary"
rating. Entities with an overall rating of "effective"
shall not be evaluated by the department for three full school years
following the school year for which the entity received the
"effective" rating.

(c)(i)
(b)(i)

Entities that receive an overall rating of "ineffective"
shall be prohibited from sponsoring any new or additional community
schools during the time in which the sponsor is rated as
"ineffective" and shall be subject to a quality improvement
plan based on correcting the deficiencies that led to the
"ineffective" rating, with timelines and benchmarks that
have been established by the department.

(ii)
Entities that receive an overall rating of "ineffective" on
their three most recent ratings shall have all sponsorship authority
revoked. Within thirty days after receiving its third rating of
"ineffective," the entity may appeal the revocation of its
sponsorship authority to the director, who shall appoint an
independent hearing officer to conduct a hearing in accordance with
Chapter 119. of the Revised Code. The hearing shall be conducted
within thirty days after receipt of the notice of appeal. Within
forty-five days after the hearing is completed, the director shall
determine whether the revocation is appropriate based on the hearing
conducted by the independent hearing officer, and if determined
appropriate, the revocation shall be confirmed.

(d)
(c)

Entities that receive an overall rating of "poor" shall
have all sponsorship authority revoked. Within thirty days after
receiving a rating of "poor," the entity may appeal the
revocation of its sponsorship authority to the director, who shall
appoint an independent hearing officer to conduct a hearing in
accordance with Chapter 119. of the Revised Code. The hearing shall
be conducted within thirty days after receipt of the notice of
appeal. Within forty-five days after the hearing is completed, the
director shall determine whether the revocation is appropriate based
on the hearing conducted by the independent hearing officer, and if
determined appropriate, the revocation shall be confirmed.

(7)
For the 2014-2015 school year and each school year thereafter,
student academic performance prescribed under division (B)(1)(a) of
this section shall include student academic performance data from
dropout prevention and recovery community schools.

(8)
The department shall publish annually academic performance data for
each sponsor in accordance with division (B)(1)(a) of this section,
regardless of whether the sponsor is being evaluated under this
section for that school year.

(C)
If the governing authority of a community school enters into a
contract with a sponsor prior to the date on which the sponsor is
prohibited from sponsoring additional schools under division (A) of
this section and the school has not opened for operation as of that
date, that contract shall be void and the school shall not open until
the governing authority secures a new sponsor by entering into a
contract with the new sponsor under section 3314.03 of the Revised
Code. However, the department's office of Ohio school sponsorship,
established under section 3314.029 of the Revised Code, may assume
the sponsorship of the school until the earlier of the expiration of
two school years or until a new sponsor is secured by the school's
governing authority. A community school sponsored by the department
under this division shall not be included when calculating the
maximum number of directly authorized community schools permitted
under division (A)(3) of section 3314.029 of the Revised Code.

(D)
When an entity's authority to sponsor schools is revoked pursuant to
division
(B)(6)(c)
(B)(6)(b)

or
(d)
(c)

of this section, the office of Ohio school sponsorship shall assume
sponsorship of any schools with which the original sponsor has
contracted for the remainder of that school year. The office may
continue sponsoring those schools until the earlier of:

(1)
The expiration of two school years from the time that sponsorship is
revoked;

(2)
When a new sponsor is secured by the governing authority pursuant to
division (C)(1) of section 3314.02 of the Revised Code.

Any
community school sponsored under this division shall not be counted
for purposes of directly authorized community schools under division
(A)(3) of section 3314.029 of the Revised Code.

(E)
The department shall recalculate the rating for the 2017-2018 school
year for each sponsor of a community school that receives
recalculated ratings pursuant to division (I) of section 3314.017 of
the Revised Code.

Sec.
3314.0111.
(A)
Annually, not later than the fifteenth day of November or the
preceding Friday when that day falls on a Saturday or Sunday, the
department of education and workforce shall issue a report card
reflecting the performance of community school sponsors in the prior
school year. The report card shall present information about each
sponsor, and be posted on the department's web site, in a manner
similar to a state report card issued under section 3302.03 of the
Revised Code. The report card for a sponsor shall include detailed
information about the sponsor and the sponsor's evaluation under
section 3314.016 of the Revised Code, including its overall rating
under that section.

(B)
The department shall present a sponsor's overall rating on an
evaluation under section 3314.016 of the Revised Code on the report
card, as follows:

(1)
For an overall rating of "exemplary" and any of ten through
twelve total points on the evaluation, the department shall assign
the sponsor a performance rating of four stars and include a
descriptor of "exemplary."

(2)
For an overall rating of "effective" and any of seven
through nine total points on the evaluation, the department shall
assign the sponsor a performance rating of three stars and include a
descriptor of "effective."

(3)
For an overall rating of "ineffective" and any of three
through six total points on the evaluation, the department shall
assign the sponsor a performance rating of two stars and include a
descriptor of "ineffective."

(4)
For an overall rating of "poor" and either one or two total
points on the evaluation, the department shall assign the sponsor a
performance rating of one star and include a descriptor of "poor."

(5)
For an overall rating of "poor" and zero total points on
the evaluation, the department shall assign the sponsor a performance
rating of zero stars and include a descriptor of "failed."

(C)
The department shall establish a method to assign performance ratings
for each sponsor evaluation component prescribed under divisions
(B)(1)(a) to (c) of section 3314.016 of the Revised Code. The
department's method shall assign one of the following performance
ratings and descriptors to a component based on the component's
points used in the evaluation:

(1)
A performance rating of four stars and a descriptor of "exceeds
standards";

(2)
A performance rating of three stars and a descriptor of "meets
standards";

(3)
A performance rating of two stars and a descriptor of "progressing
towards standards";

(4)
A performance rating of one star and a descriptor of "below
standards";

(5)
A performance rating of zero stars and a descriptor of "significantly
below standards."

(D)
Nothing in this section shall be construed to conflict with, or
override, a sponsor's evaluation under section 3314.016 of the
Revised Code. A sponsor's evaluation under section 3314.016 of the
Revised Code shall be used to determine any sanctions or incentives
that are based on such evaluations.

Sec.
3314.021.
(A)
This section applies to any entity that is exempt from taxation under
section 501(c)(3) of the Internal Revenue Code and that satisfies the
conditions specified in divisions (C)(1)(f)(ii) and (iii) of section
3314.02 of the Revised Code but does not satisfy the condition
specified in division (C)(1)(f)(i) of that section.

(B)
Notwithstanding division (C)(1)(f)(i) of section 3314.02 of the
Revised Code, and subject to division (D)(2) of this section, an
entity described in division (A) of this section may do both of the
following without obtaining the department of education and
workforce's initial approval of its sponsorship under divisions
(A)(2) and (B)(1) of section 3314.015 of the Revised Code:

(1)
Succeed the board of trustees of a state university located in the
pilot project area or that board's designee as the sponsor of a
community school established under this chapter;

(2)
Continue to sponsor that school in conformance with the terms of the
contract between the board of trustees or its designee and the
governing authority of the community school and renew that contract
as provided in division (D) of section 3314.03 of the Revised Code.

(C)
The entity that succeeds the board of trustees or the board's
designee as sponsor of a community school under division (B) of this
section also may enter into contracts to sponsor other community
schools regardless of the proposed school's location, without
obtaining the department's initial approval of its sponsorship of
those schools under divisions (A)(2) and (B)(1) of section 3314.015
of the Revised Code as long as the contracts conform with and the
entity complies with all other requirements of this chapter.

(D)(1)
Regardless of the entity's authority to sponsor community schools
without the initial approval of the department, the entity is under
the continuing oversight of the department in accordance with rules
adopted under section 3314.015 of the Revised Code.

(2)
If an entity described in division (A) of this section receives a
rating below "effective" under division (B) of section
3314.016 of the Revised Code for two or more consecutive years, that
entity shall receive approval from the department to sponsor
community schools and enter into a written agreement with the
department in accordance with division (B)(1) of section 3314.015 of
the Revised Code prior to entering into any further preliminary
agreements under division (C)(2) of section 3314.02 of the Revised
Code or renewing any existing contract to sponsor a community school.

(E)(1)
As used in division (E) of this section:

(a)
"Board of trustees" means a board of trustees of a state
university located in the pilot project area.

(b)
"Rating" means a sponsor rating under section 3314.016 of
the Revised Code.

(2)
Notwithstanding anything to the contrary in division (B)(6)(b) of
section 3314.016 of the Revised Code, for the purposes of that
division, the department shall consider an entity that succeeded a
board of trustees as the sponsor of a community school in accordance
with division (B)(1) of this section to have received the same rating
for the 2016-2017 school year as the board of trustees, provided all
of the following apply:

(a)
The department assigned the board of trustees a rating of either
"effective" or "exemplary" for the 2016-2017
school year.

(b)
The department did not assign the entity its own rating for the
2016-2017 school year.

(c)
The department assigned the entity its own rating for the 2017-2018
school year.

Sec.
3314.031.
(A)
Beginning March 31, 2016, the department shall do the following:

(1)
Maintain and annually publish an accurate record of the names and
identifying information of all entities that have entered into a
contract with the governing authority of a community school to manage
or operate that school;

(2)
Receive from the governing authority of each community school a copy
of the contract between a governing authority and its operator. A
copy of each contract shall be made available on the department's web
site.

(B)

Not
later than November 15, 2016
Annually
,
and not later than the fifteenth day of November
for
each year thereafter
or
the preceding Friday when that day falls on a Saturday or Sunday
,
the department shall
develop
and publish an annual performance
issue
a
report

for

card
reflecting the performance of
all
operators of community schools in the state
based
on their performance
for
the previous school year.
The
report card shall present information about each operator, and be
posted on the department's web site, in a manner similar to a state
report card issued under section 3302.03 of the Revised Code. The
department shall establish an overall operator rating system in a
manner similar to the sponsor evaluation system under section
3314.016 of the Revised Code that includes both overall ratings and
individual category ratings.
The
report

card for each operator

shall be made available

in an easily accessible format

on the department's web site.

(C)
The department shall include the
performance

report

obtained

card
issued
pursuant
to division (B) of this section in the department's annual report
required by division (A)(4) of section 3314.015 of the Revised Code.

(D)
For purposes of this section, "operator" has the same
meaning as in division (A)(8) of section 3314.02 of the Revised Code.

Section
2.
That
existing sections 3314.012, 3314.016, 3314.021, and 3314.031 of the
Revised Code are hereby repealed.

Section
3.
This
act shall be known as the Charter School Sponsor and Operator Rating
Act.