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Yes: 545 • No: 38
South CarolinaS 0454126th General Assembly (2025-2026)Senate
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-40-40, RELATING TO DEFINITIONS IN THE SOUTH CAROLINA CHARTER SCHOOLS ACT, SO AS TO CHANGE REFERENCES FROM "SPONSOR" TO "AUTHORIZER," AND TO REVISE AND PROVIDE OTHER DEFINITIONS; BY AMENDING SECTION 59-40-50, RELATING TO LEGAL EXEMPTIONS, POWERS, AND DUTIES OF CHARTER SCHOOLS, SO AS TO IMPOSE CERTAIN FISCAL ACCOUNTABILITY AND TRANSPARENCY MEASURES, TO IMPOSE CERTAIN ADMISSIONS AND ENROLLMENT STANDARDS AND TRANSPARENCY MEASURES, TO REVISE BYLAW REQUIREMENTS AND BOARD ETHICS REQUIREMENTS, AND TO REQUIRE ADDITIONAL POWERS AND DUTIES CONCERNING OPERATIONS AND MANAGEMENT; BY AMENDING SECTION 59-40-55, RELATING TO CHARTER SCHOOL AUTHORIZERS, SO AS TO MAKE CONFORMING CHANGES, TO REVISE THEIR POWERS AND DUTIES, TO INCREASE CHARTER AUTHORIZER OVERSIGHT, TO PROHIBIT CERTAIN FINANCIAL CONFLICTS, TO INCREASE ENFORCEMENT POWERS OF THE STATE DEPARTMENT OF EDUCATION, AND TO PROVIDE PROCEDURES FOR AUTHORIZER REVOCATION AND SCHOOL TRANSFERS; BY AMENDING SECTION 59-40-60, RELATING TO CHARTER SCHOOL APPLICATION REQUIREMENTS, SO AS TO REVISE CHARTER SCHOOL APPLICATION REQUIREMENTS, TO INCREASE GOVERNANCE AND FINANCIAL DISCLOSURES, TO CREATE RULES FOR VIRTUAL SCHOOLS, AND TO CREATE A STREAMLINED REPLICATION PROCESS FOR SUCCESSFUL CHARTER SCHOOLS, AMONG OTHER THINGS; BY AMENDING SECTION 59-40-65, RELATING TO VIRTUAL INSTRUCTION REQUIREMENTS IN CHARTER SCHOOLS, SO AS TO PROVIDE NECESSARY DEFINITIONS AND IMPOSE CERTAIN REQUIREMENTS ON VIRTUAL CHARTER SCHOOLS; BY AMENDING SECTION 59-40-70, RELATING TO CHARTER SCHOOL APPLICANTS TO AUTHORIZERS, SO AS TO REVISE CHARTER APPLICATION AND APPROVAL PROCEDURES, TO IMPOSE CERTAIN REVIEW TIMELINES, TO REVISE EVALUATION REQUIREMENTS, TO PROVIDE CONDITIONAL APPROVALS, TO IMPOSE PLANNING-YEAR REQUIREMENTS, AND TO REVISE AUTHORIZER OVERSIGHT; BY AMENDING SECTION 59-40-75, RELATING TO CHARTER SCHOOL AUTHORIZER BOARD MEMBER ETHICS, CONDUCT, AND REMOVAL, SO AS TO INCLUDE AUTHORIZERS, TO REVISE THE GROUNDS FOR REMOVAL, TO REVISE THE MANNER OF FILLING VACANCIES, AND TO PROHIBIT CERTAIN CONFLICTS OF INTEREST; BY AMENDING SECTION 59-40-90, RELATING TO APPEALS OF FINAL DECISIONS OF CHARTER SCHOOL AUTHORIZERS, SO AS TO PROVIDE THAT APPEALS OF FINAL DECISIONS BY AUTHORIZERS MUST BE MADE TO THE ADMINISTRATIVE LAW COURT; BY AMENDING SECTION 59-40-110, RELATING TO CHARTER DURATIONS, RENEWALS, AND CLOSURES, SO AS TO INCLUDE CERTAIN CHARTER SCHOOL PERFORMANCE ASSESSMENTS BY AUTHORIZERS AND RELATED GUIDANCE AND RESPONSE PROCEDURES; BY AMENDING SECTION 59-40-111, RELATING TO ALTERNATIVE EDUCATION CAMPUSES, SO AS TO IMPOSE ACCOUNTABILITY REQUIREMENTS; BY AMENDING SECTION 59-40-115, RELATING TO CHARTER SCHOOL TRANSFERS AMONG AUTHORIZERS, SO AS TO IMPOSE REQUIREMENTS FOR SUCH TRANSFER PROCESSES AND TO REQUIRE CERTAIN TRANSPARENCY MEASURES, AMONG OTHER THINGS; BY AMENDING SECTION 59-40-120, RELATING TO THE OWNERSHIP OF DISSOLVED CHARTER SCHOOL ASSETS, SO AS TO PROVIDE THAT CERTAIN ASSETS BECOME PROPERTY OF THE STATE OF SOUTH CAROLINA INSTEAD OF THE CHARTER SCHOOL'S AUTHORIZER; BY AMENDING SECTION 59-40-140, RELATING TO CHARTER SCHOOL AUTHORIZER MANAGEMENT AND REPORTING, SO AS TO MAKE CONFORMING CHANGES AND TO AUTHORIZE CHARTER SCHOOLS TO CONTRACT WITH MANAGEMENT ORGANIZATIONS FOR CERTAIN PURPOSES, AMONG OTHER THINGS; BY AMENDING SECTION 59-40-150, RELATING TO CHARTER SCHOOL FORMATIONS AND OPERATIONS, SO AS TO IMPOSE REQUIREMENTS ON THE STATE DEPARTMENT OF EDUCATION CONCERNING CHARTER SCHOOL APPLICATIONS, COMPLIANCE GUIDANCE, AND EVALUATIONS, AMONG OTHER THINGS; BY AMENDING SECTION 59-40-155, RELATING TO CHARTER SCHOOL TRUSTEE TRAINING AND REMOVALS, SO AS TO MAKE CERTAIN TRAINING PROVISIONS APPLICABLE TO CHARTER SCHOOL AUTHORIZER BOARD MEMBERS, TO REVISE THE ORIENTATION PROGRAM FOR NEW BOARD MEMBERS, AND TO PROVIDE ADDITIONAL TRAINING REQUIREMENTS, AMONG OTHER THINGS; BY AMENDING SECTION 59-40-180, RELATING TO REGULATIONS AND GUIDELINES, GRANDFATHER PROVISIONS, AND PENALTIES FOR VIOLATIONS, SO AS TO EXEMPT CERTAIN EXISTING AUTHORIZERS FROM THE APPLICATION PROCESS, AND TO SUBJECT AUTHORIZERS TO FUNDING REDUCTIONS FOR WILFUL OR KNOWING VIOLATIONS; AND BY AMENDING SECTION 59-40-230, RELATING TO THE SOUTH CAROLINA PUBLIC CHARTER SCHOOL DISTRICT BOARD, SO AS TO CORRECT AN OBSOLETE REFERENCE.
Sponsored By: Greg Hembree (Republican)
Signed by Governor
Summary
Charter School Accountability
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31 provisions identified: 11 benefits, 0 costs, 20 mixed.
State standards for charter authorizers
The Department sets policies to ensure quality authorizing and acts as the state education agency for authorizers. It reviews each authorizer every year, and the State Board issues rules and timelines. Only registered public or independent colleges (and certain affiliates) may serve as authorizers, and the Department posts a public directory. By February 1, 2027, the Department must run an application process for new higher‑ed authorizers; those operating before January 1, 2026 are exempt from reapplying but must sign assurances. Starting May 15, 2026, the Department bears the cost to carry out these duties.
Stronger ethics rules for charter boards
The law tightens conflict-of-interest rules for charter schools and authorizers. People with business ties to a school, or close family who do, cannot serve or be hired in roles that control school money. Authorizer board members and staff must follow state ethics laws. Lawmakers and their immediate family cannot own companies that run or lease to a charter school. You cannot serve on more than one charter or authorizer board at the same time after December 31, 2026. Starting May 15, 2026, charter and authorizer trustees must follow statewide trustee rules. Authorizers also may not take insurance commissions from school purchases. Authorizers must reject applications from members of the State Board of Education, the Education Oversight Committee, or local school boards.
Tougher state oversight of charter authorizers
The Department of Education reviews every authorizer each year and can require fixes or end an authorizer’s registration after repeated failures. A statewide authorizer can keep no more than 2% of state funds for oversight, and extra services must be optional and posted with prices. If the Department finds violations, it issues notice; the authorizer has 30 days to respond, and can appeal within 30 days. The State Board must hold a public hearing within 14 days. Authorizers cannot hold back unspent funds or charge fees when a school transfers. Authorizers must follow a state-approved procurement code and may be audited by the Legislative Audit Council.
Clearer, faster charter school funding
Districts must fund charters using a set per‑pupil formula based on last year’s audited revenues, weighted student counts, and the EFA inflation factor. The Department verifies amounts before the first payment. For new or expanding schools, the Department pays districts within 15 days of verified day‑five attendance and districts pay schools within 30 days. Authorizers must pass federal and state categorical funds within 10 business days or face fines, and must report their funding methods by July 1. Converted charters get first‑year funding set by the average of the prior two years’ weighted per‑pupil amounts.
New standards for virtual charter schools
Virtual charter schools must give students daily access to teachers for live instruction, tutoring, conferencing, and intervention. They must offer real‑time lessons as appropriate and accept several ways to show attendance and participation, like live sessions, coursework, and measurable progress. Students must live in a South Carolina school district. At least 25% of core instruction must follow State Regulation 43‑601.
Virtual school costs and options for families
Only full‑time charter students count for school funding. Private or homeschool students who take virtual charter courses do not get state‑paid instructional materials. A charter school may choose to reimburse a family’s internet costs used for online learning, but it does not have to. Charter students may enroll in the state’s virtual education program if they meet that program’s rules.
Who gets charter enrollment priority
Charter schools must prefer students who attended last year. Siblings can get preference. Children of employees or board members can get preference, but these seats are capped at 20% of all students. Dependents of active‑duty military can get preference up to 10% of all students. A school on a federal military base may give military priority up to 50% if the federal government provides buildings or facilities. When seats run out, admission is by lottery and nondiscrimination rules apply.
Clear renewal, oversight, and appeal rules
Charter contracts last 10 school years, and authorizers must evaluate schools every year and decide on renewal, nonrenewal, or revocation. Before the second-to-last year, an authorizer may send a performance report; the school has 45 days to correct or clarify it. Renewal applications must include goal progress, a public-format financial statement, and planned material changes. Authorizers may revoke or not renew only for listed reasons, and must follow a public process with timelines before nonrenewal or termination. Appeals of final authorizer decisions go to the Administrative Law Court; there is no automatic stay, but a stay may be granted for unusual hardship. Oversight must follow the charter contract and may not unduly limit a school’s independence.
Clearer charter application and renewal rules
Authorizers can deny a charter only if it breaks legal standards or cannot show it can run a viable school, and must give written reasons within 10 days. An authorizer cannot refuse renewal or revoke a charter just because another authorizer exists. Colleges that serve as authorizers may limit approvals to schools that fit their mission. Before November 1, 2026, the state creates a faster replication process, but schools rated below “Average” in any of the last three years cannot replicate. Expansions more than one mile away need replication approval unless the entire school relocates. A high-poverty rating alone no longer qualifies a school as an Alternative Education Campus, and applications must include full management contract terms and fees.
Faster, clearer charter applications
Applicants must file a letter of intent at least 90 days before the full application and send copies to the Department. They must also notify the local legislative delegation, and the Department posts a public list of applicants. Authorizers must give at least 10 business days’ notice of the hearing, share an evaluation report five business days before, and allow rebuttals two business days before. Authorizers must decide within 90 days; if they miss the deadline, the application is conditionally approved and the applicant has 30 days to fix issues. The Department verifies school finances within 45 days of approval. Authorizers must provide free technical help to applicants.
Limits on noncertified teachers
Most charter schools may have up to 25% noncertified teachers. Converted charters are capped at 10%. Teachers in core subjects must be certified or hold a degree in that subject. Part‑time noncertified teachers count pro rata, and authorizers must report serious conduct cases.
Open records and spending rules for charters
Charter schools and authorizers must follow the Freedom of Information Act. School boards must give their authorizer at least 48 hours’ notice before any regular meeting. Schools must post bylaws, board policies, and any management organization contracts on their website. Schools must keep and share key records like budgets, audits, and health and safety reports with their authorizer. Schools must also post monthly credit card statements within 30 days after the first payment, and employees cannot use personal cards for school purchases over $250.
Property, taxes, and closure assets
Charter schools may own buildings and property for school use. Charters do not pay state or local tax on earnings or property, and property transfers to or from a charter are tax‑ and fee‑free. When a charter closes, donor‑restricted gifts return to the donor and all other assets go to the State, not to private parties.
Stricter closure rules and safety backstops
Authorizers must send written notices of noncompliance and give schools up to 30 days to respond, and use corrective action plans or sanctions when needed. They can immediately revoke a charter if clear, convincing evidence shows an imminent threat to student health or safety. A school that gets the state’s lowest rating three years in a row must close at year’s end (the first year of operation does not count), with exemptions for schools serving 50% or more students with disabilities and AECs. Before any closure, the authorizer must run a closure plan to notify parents, move students and records, and handle funds and property properly. A charter board may also vote to end its charter early.
Stronger accountability and penalties
Authorizers must put clear outcome goals for academics, operations, governance, and finance into each charter contract. They must monitor schools, analyze data, and collect annual reports from schools and send results to the State Board by January 30. The Department provides a standard reporting template. Starting May 15, 2026, an authorizer that wilfully or knowingly violates the law can lose up to 10% of its state funding.
Stronger boards and on-site leaders
Charter school boards must have at least seven members with two‑year, staggered terms. At least half must have K–12 or business experience, and at least half are elected by parents and employees. Members must live in South Carolina; people with a felony cannot serve. Each school must have a trained leader and an administrator on site during school hours. Starting May 15, 2026, new administrators without prior charter leadership must complete a free orientation within 90 days of hire.
Authorizer handles special education services
The charter authorizer is the local education agency for its charter schools. It is responsible for providing required special education services under federal and state law.
More public info on charter options
Authorizers must share information about their charter schools as enrollment options, like districts do. Each charter must tell its authorizer its enrollment rules and dates at least 60 days before enrollment starts. The Department updates the statewide charter application every year and posts it by November 1. The Department must also provide, on request at least yearly, a directory listing each school’s goals, results, and how to apply.
Authorizers must post budgets and contracts
Authorizers must post all charter applications, renewal applications, and management-organization contracts within 30 days. They must also post their own budget, showing revenues, sources, and spending, and list any service fees by school. This gives parents and taxpayers a clearer view of how oversight money is used and what services cost.
Control over services, gifts, contracts
Schools and authorizers must negotiate centrally provided services and put them in the charter contract. Gifts and grants stay with the school, must be coded and reported in the audit, and cannot be tied to admission or illegal terms. Schools may use management firms for finance; any balanced‑budget or deficit‑protection credits can be recovered only within that fiscal year and are not year‑end liabilities.
No self-dealing by charter authorizers
Authorizers and their affiliates cannot sell services to the schools they oversee. They cannot tie approval, renewal, or ratings to buying goods or services. They cannot take cuts from school contracts, except for narrow cases like leases, food service, or buses. This protects school dollars and families from conflicted deals.
Required training for charter trustees
Trustees who take office after July 1, 2026 must finish a free state orientation within one year. Authorizers can also require governance training in the charter contract. Each authorizer must run annual training for board members after their first year. The Department sets procedures to check compliance.
Stronger ethics and board removals
The Governor may suspend a governing board member who is indicted and appoint a temporary replacement. If convicted, the seat is vacant. The Governor may remove members for misconduct, conflicts of interest, chronic unexcused absences, neglect, or medical incapacity after notice and a hearing. The law defines “immediate family” as a child, a spouse, or a person you claim as a tax dependent.
Charter immunity, not for racial discrimination
Charter schools are treated like school districts for lawsuits. Charter employees get the same protection from personal liability as public school staff. The shield does not cover intentional or willful racial discrimination by the school or its employees. Families can still sue for willful racial discrimination.
Charter students capped at 75% online
The law limits a charter school to no more than 75% of a student's core classes online. At least 25% must be regular instructional opportunities, like live lessons, field trips, or other scheduled activities. This rule applies to K-12 core instruction. Families who want fully virtual study cannot get it through charter schools.
Rules for Alternative Education Campuses
Beginning May 15, 2026, an Alternative Education Campus (AEC) serves students with significant needs, such as when 50% or more have IEPs or 85% or more are high-risk. The authorizer grants AEC status; a school with the state’s lowest rating in any of the past three years cannot get that status. AECs must follow state and federal accountability rules and written academic standards set with the authorizer, with results reported and compared to national data. Authorizers review AEC status every year; schools that miss requirements are “Under Review” and must file an improvement plan. Two failing years mean AEC status is revoked for two years. AECs may use weighted lotteries that favor mission‑aligned, educationally disadvantaged students; lottery results cannot be appealed to the authorizer.
Same safety and attendance rules
Charter schools must follow the same health, safety, civil‑rights, and disability rules as public schools. They must meet the same minimum attendance rules and may set stricter ones. Schools must run child abuse and neglect registry checks for staff, board members, volunteers, and others who regularly meet students.
Stricter quality rules for virtual charters
The law defines online, synchronous, and asynchronous instruction. Virtual charters must require a student orientation, set rules for non-participation, and notify parents about any disenrollment and transfer steps. Schools must use authorizer‑approved courses that meet state standards and provide all required materials. Qualified teachers must teach each course, and operators must follow the law and the charter. Parents must verify student learning hours each year. Schools must monitor progress often, give proctored tests each semester in core subjects, hold parent‑teacher conferences at least every two weeks, and run all state tests in a proctored setting.
Clear rules for charter transfers
Starting May 15, 2026, a proposed new authorizer must decide a transfer by October 31 and send its decision by November 5. If the proposed authorizer says no, that denial cannot be appealed. If it says yes, the current authorizer must decide by December 31 and allow the school to submit materials and appear. The law requires denials for avoiding accountability, illegal or late requests, or other good cause. Renewal applications are not transfers.
Public, timed process to switch authorizers
A charter school’s vote to transfer must happen in an open public meeting. The school must send a written transfer request to both authorizers before September 1 and include proof of the board vote. Approved transfers take effect on July 1 of the next year. If a renewal is denied and the school has no material violations, it may apply to another authorizer. In that case, it keeps local funding but only gets the same percentage of state base student funding it had before, not 100%.
See charter spending and borrowing rules
Charter schools must post their annual operating budget, any debt, and the annual audit on the school website. Audits are due to the authorizer no earlier than October 15 unless the Department grants an extension. Schools must keep a searchable list of all spending over $100 and update it monthly. The list must show the amount, payee, and description, and cannot include data that identifies individual employees or their pay. A school must also notify its authorizer before taking any loan secured by school funds, property, or other assets.
Sponsors & Cosponsors
Sponsor
Greg Hembree
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/13/2026
(Charter School Accountability)Concur in Senate Amendments
Yes: 102 • No: 1
Senate vote • 5/12/2026
(Charter School Accountability)to adopt amendment
Yes: 43 • No: 0
House vote • 4/23/2026
(Charter School Accountability)Waive Rule 5.15 Printing
Yes: 75 • No: 33 • Other: 2
House vote • 4/23/2026
(Charter School Accountability)Passage of Bill
Yes: 104 • No: 0
House vote • 4/23/2026
(Charter School Accountability)Passage of Bill
Yes: 104 • No: 0 • Other: 2
Senate vote • 2/10/2026
(Charter School Accountability)3rd Reading
Yes: 42 • No: 0
Senate vote • 2/10/2026
(Charter School Accountability)3rd Reading
Yes: 42 • No: 0
Senate vote • 5/1/2025
(Charter School Accountability)2nd Reading
Yes: 33 • No: 4
Actions Timeline
Act No. 123
5/26/2026legislatureEffective date 05/15/26
5/26/2026legislatureSigned By Governor
5/15/2026GovernorRatified R 140
5/14/2026legislatureRoll call Yeas-102 Nays-1
5/13/2026HouseConcurred in Senate amendment and enrolled
5/13/2026HouseReturned to House with amendments
5/12/2026SenateRoll call Ayes-43 Nays-0
5/12/2026SenateHouse amendment amended
5/12/2026SenateScrivener's error corrected
4/27/2026legislatureRead third time and returned to Senate with amendments
4/24/2026HouseUnanimous consent for third reading on next legislative day
4/23/2026HouseRoll call Yeas-104 Nays-0
4/23/2026HouseRead second time
4/23/2026HouseAmended
4/23/2026HouseScrivener's error corrected
4/23/2026legislatureRequests for debate-Rep
4/23/2026HouseCommittee report: Favorable with amendment Education and Public Works
4/22/2026HouseScrivener's error corrected
2/11/2026legislatureReferred to Committee on Education and Public Works
2/11/2026HouseIntroduced and read first time
2/11/2026HouseRoll call Ayes-42 Nays-0
2/10/2026SenateRead third time and sent to House
2/10/2026SenateAmended
2/10/2026SenateRoll call Ayes-33 Nays-4
5/1/2025Senate
Bill Text
Introduced
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