DEPARTMENT OF EDUCATION Colorado Charter School Institute RULES FOR THE ADMINISTRATION OF THE INSTITUTE CHARTER SCHOOL ASSISTANCE FUND 1 CCR 302-3 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _______________________________________________________________________________

1.0 Statement of Basis and Purpose.

The statutory basis for these rules is found in § 24-4-101, § 22-30.5-505, § 22-30.5-513, and § § 22-30.5- 515.5(1)(a), (3) and (5), et. seq. C.R.S.

Pursuant to these statutes, the Charter School Institute board shall promulgate rules to achieve the following purposes, including but not limited to:

(a) Describing the rules and requirements for which Institute Charter Schools are eligible for a Loan and/or Grant under this Program;

(b) Establish the priority for when, how and to whom the Grants or Loans will be awarded;

(b) Describe the procedure and forms required to apply for a Grant or Loan under this Program; and (c) Describe the source of funds for this Program and manner of disbursement.

2.0 Definitions.

2.01 "BEST Program" means the Building Excellent Schools Today Act established in § 22-43.7-101, C.R.S.

2.02 "Board" means the Charter School Institute governing board created pursuant to § 22-30.5-505, C.R.S.

2.03 "CECFA" means the Colorado Educational and Cultural Facilities Authority created pursuant to Article 15 of Title 23, C.R.S.

2.03 "Institute" means the Charter School Institute created pursuant to § 22-30.5-503, C.R.S.

2.04 "Institute Charter School" means a school that is authorized by the Charter School Institute Board and is operating pursuant to § 22-30.5-507, C.R.S.

2.05 "CDE" means the Colorado Department of Education created and existing pursuant to § 24-1-115, C.R.S., and as further defined in § 22-2-103(1)(a) and (b), C.R.S..

2.06 "Program" means the Institute Charter School Assistance Fund Program created by § 22-30.5- 515.5, C.R.S.

2.07 "Grant" shall mean financial assistance to an Institute Charter School, authorized and made by the Board pursuant to an application filed in accordance with the Program and these rules that does not have to be repaid by the Institute Charter School.

2.08 "Loan" shall mean financial assistance to an Institute Charter School, authorized and made by the Board pursuant to an application filed in accordance with the Program and these rules that must be repaid by the Institute Charter School

2.08 "Fund" shall mean the "fund" established in § 22-30.5-515.5, C.R.S.

2.09 "Emergency" shall mean a condition or occurrence with respect to a facility, special education services funding emergencies, or other capital asset that creates an immediate or imminent threat to (i) the health or safety of students or personnel at an Institute Charter School, or (ii) the continued normal fiscal operation of the Institute Charter School.

3.0 Establishment of Loan Grant Program and Application Requirements

3.01 Types of Assistance. Beginning July 1, 2009, Institute Charter Schools will be eligible for consideration and awarding of a Grant and/or Loan under this Program. Institute Charter Schools seeking a Grant or a Loan shall submit to the Institute an application in accordance with the timelines and procedures set forth below. Institute Charter Schools may apply for any of four different types of Grants or Loans, as set forth below.

3.01.1 Matching Moneys for the BEST Program.

1. An Institute Charter School seeking a Grant or Loan to use matching moneys to obtain financial assistance for capital construction through the BEST Program must file an application with the Institute detailing, at a minimum:
2. (i) Evidence that the Institute Charter School meets the definition of a "Charter School" in § 22-43.7-103(7), C.R.S.
3. (ii) A copy of the application that the Institute Charter School has submitted or is preparing to submit to the BEST Program Board pursuant to § 22-43.7-109, C.R.S.
4. (iii) An estimate of the amount of matching moneys as defined in §22-43.7-103(11), C.R.S. that the BEST Program Board will require, if known; and (iv) Information concerning any other sources of funding available to the Institute Charter School.

3.01.2 Financing Repayment of Moneys under CECFA or Other Loan

1. An Institute Charter School seeking a Grant or Loan to use in repaying bonds or notes issued on the Institute Charter School’s behalf by CECFA and must file an application with the Institute detailing, at a minimum:
2. (i) Copies of the documents that the Institute Charter School has submitted or will submit to CECFA or other lender to request issuance of the bonds or notes.
3. (ii) The amount of bonds or notes issued or to be issued and the total amount the Institute Charter School is required to repay.
4. (iii) Information concerning any other sources of funding available to the Institute Charter School.

3.01.3 Other Capital Construction Costs.

1. An Institute Charter School seeking a Grant or Loan to assist in meeting other capital construction costs must file an application with the Institute detailing, at a minimum:
2. (i) A description of the Institute Charter School’s capital construction needs.
3. (ii) A description of the capital construction project the Institute Charter School has undertaken or will undertake to meet its needs including the estimated costs to complete the project.
4. (iii) Information concerning any other sources of funding available to the Institute Charter School.

3.01.4 Emergency Grants.

1. An Institute Charter School seeking a Grant Loan to assist in meeting an emergency capital construction costs must file an application with the Institute detailing, at a minimum:
2. (i) A description of the Institute Charter School’s emergency and how it relates to its facility or other capital asset.
3. (ii) A description of the capital construction needed to remedy such emergency.
4. (iii) A description of when the funding is needed.

3.01.5 Emergency Grants For Special Education Services.

1. An Institute Charter School seeking a Grant or Loan to assist in meeting a special education services funding emergency must file an application with the Institute detailing, at a minimum:
2. (i) A description of the special education services required by the Individualized Education Program for the student at issue.
3. (ii) A description of when the funding is needed.

3.02 Criteria for Awarding Loans and/or Grants

The Institute staff shall review each application received pursuant to Section 3.01 above and shall recommend to the Board those Institute Charter Schools that should receive moneys pursuant to this Program, whether the moneys should be awarded in the form of Grants or Loans, and the amounts of the Grants or Loans. In making its recommendations, the Institute staff shall apply the criteria listed below:

(a) Levels of economic need.

(b) The viability of the capital construction project or seriousness of the special education funding emergency.

(c) The merit of the capital construction project or the specific circumstances of the special education funding emergency.

(d) Funding priorities for Loans and Grants are at the discretion of the Board.

(e) The Institute will withhold annually an amount equal to one percent of the Institute Charter School’s per pupil revenue and forward it to the State Treasurer for credit towards this assistance fund.

3.03 Limitations and Conditions Regarding Awards of Loans and/or Grants.

(a) The Institute will withhold annually an amount equal to one percent of the Institute Charter School’s per pupil revenue and forward it to the State Treasurer for credit towards this assistance fund.

4.00 Procedures and Process for Reviewing and Approving Applications.

4.01 Submission Deadline.

Applications for Loans or Grants and Loans will be accepted during February of each year, commencing in February of 2011. Every attempt will be made to present recommendations regarding applications to the Board no later than forty five (45) days following a completed application.

Emergency applications may be submitted at anytime and will be acted upon by the Board within 30 days following receipt provided the application is complete.

4.02 Approval Process and Timeline. The applications received by the Institute staff will be reviewed for completeness and establishment of priority. Once complete, applications will be reviewed and either approved or denied by the Board, every attempt will be made to present recommendations regarding applications to the Board no later than no later than forty five (45) days following a completed application, subject however to the limitations set forth in subsections (d) and (e) below.

(a) Grants and Loans will be awarded on an annual basis.

(b) The Board shall consider the Institute staff’s recommendations, and shall award Grants and Loans to assist Institute Charter Schools based on the criteria established in Section 3.02 and the level of economic need demonstrated by the applicant and the viability and merit of the capital construction project proposed in the application or, for special education services funding emergencies, the seriousness of the special education services required by the Individualized Education Program for the student at issue..

(c) Loans shall be interest free, and shall be subject to other terms and repayment schedules approved by the Board.

(d) The Board shall not pay a Grant or a Loan awarded for use at matching moneys to obtain financial assistance for the BEST Program until the recipient Institute Charter School provides proof that the BEST Board has selected it to receive financial assistance, or alternatively such award by the Board may be contingent upon, and shall not be disbursed until receipt of the same.

(e) The Board shall not pay a Grant or a Loan awarded for use as matching moneys to obtain financial assistance for a CECFA bond or other loan until the recipient Institute Charter School provides proof that CECFA or other lender has finally approved issuance of the bonds or notes on the Institute Charter School’s behalf.

(f) Awards of Grants and Loan under this Program shall be at the sole discretion of the Board. Nothing in these rules shall be interpreted as creating an entitlement in an Institute Charter School for receipt of a Grant or a Loan from the fund.

5.00 Payment Options and Length of Loans (Terms and Conditions).

5.01 Payment structure will be decided once the Board has approved the Loan. The Institute will require repayment out of all loans by a direct intercept from the School’s state equalization payments.

5.02 Limitations.

(a) Payment on Loans must start within six months of Loan origination.

6.00 Reporting Requirements.

6.01 The Institute staff will report to the Board on a monthly basis the balance of the Fund account including any earned interest. Such report will also include the names of all applicants, status of the review process, and the outstanding balance of all prior approved Loans.

6.02 On an annual basis the Institute staff will prepare a report to the Board on the status of all revenues, Loans and Grants for the Program, as part of the budget process. _____________________________________________________ Editor’s Notes History Entire rule emer. rule eff. 09/21/2010; expired eff. 01/19/2011. Entire Rule eff. 05/15/2011.