Adds to existing law to establish provisions regarding public charter school earned autonomy.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 741 BY EDUCATION COMMITTEE AN ACT1 RELATING TO EDUCATION; AMENDING CHAPTER 52, TITLE 33, IDAHO CODE, BY THE AD-2 DITION OF A NEW SECTION 33-5207A, IDAHO CODE, TO ESTABLISH PROVISIONS3 REGARDING EARNED AUTONOMY FOR PUBLIC CHARTER SCHOOLS; AND DECLARING AN4 EMERGENCY AND PROVIDING AN EFFECTIVE DATE.5

Be It Enacted by the Legislature of the State of Idaho:6

SECTION 1. That Chapter 52, Title 33, Idaho Code, be, and the same is7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-8 ignated as Section 33-5207A, Idaho Code, and to read as follows:9 33-5207A. PUBLIC CHARTER SCHOOL EARNED AUTONOMY. (1) Notwithstanding10 any provision of law to the contrary, a public charter school that is not a11 virtual school, as defined in section 33-5202A, Idaho Code, and that sat-12 isfies the requirements set forth in section 33-5218(2)(b), (e), and (g),13 Idaho Code, may spend its allocated state funding, including but not limited14 to discretionary funds, categorical funds, and salary apportionment, in the15 manner it deems best serves students and the public charter school. Partici-16 pation shall not require a revision to the public charter school's charter or17 performance certificate.18 (2) State funding for participating public charter schools shall be19 based on each school's per-pupil funding in the prior fiscal year, adjusted20 to account for changes in statewide education funding and changes in the21 school's population in the subsequent year, by multiplying the total state22 funding allocated to the public charter school per-pupil in the prior fiscal23 year by the year-over-year change. To determine the year-over-year change:24 (a) Divide the prior fiscal year's total state funds by the prior fiscal25 year's support units;26 (b) Divide the subsequent fiscal year's total state funds by the subse-27 quent fiscal year's support units; and28 (c) Calculate the difference between the results of paragraphs (a) and29 (b) of this subsection.30 (3) Participating public charter schools shall be exempt from the re-31 porting requirements, including reporting requirements established through32 rulemaking authority, pursuant to sections 33-119, 33-1002, 33-1002B,33 33-1004E, 33-1007, 33-1405, 33-1805, 33-1811, and 33-2004, Idaho Code,34 without incurring a penalty or a reduction in funding.35 (4) Participating public charter schools shall automatically maintain36 spending flexibility from year to year, except that the state department of37 education may revoke eligibility if:38 (a) The school fails to receive an annual unmodified audit opinion or if39 the auditor's report on internal controls reports one (1) or more mate-40 rial weaknesses or significant deficiencies;41

2 (b) The school fails to satisfy the academic requirements set forth in1 section 33-5218(2)(g), Idaho Code, for two (2) or more years; or2 (c) The school's charter is subsequently revoked, not renewed, or re-3 newed with conditions.4 (5) Teachers who transition from a participating public charter school5 to another public school shall be considered to have advanced along the ca-6 reer ladder for each year of work at the participating school.7 (6) In 2029, the state board of education shall report to the legis-8 lature the number of participating schools and changes, if any, in student9 growth or proficiency on the Idaho standards achievement test.10 (7) Nothing in this section shall impact the appropriation of federal11 and dedicated funds. State funding for public charter schools that are not12 participants in the spending flexibility provided in this section shall13 continue to be calculated and allocated pursuant to section 33-5207, Idaho14 Code.15

SECTION 2. An emergency existing therefor, which emergency is hereby16 declared to exist, this act shall be in full force and effect on and after17 July 1, 2026.18