2005 Idaho Code - 33-5204 — NONPROFIT CORPORATION -- LIABILITY -- INSURANCE

                                  TITLE  33
                                  EDUCATION
                                  CHAPTER 52
                            PUBLIC CHARTER SCHOOLS
    33-5204.  NONPROFIT CORPORATION -- LIABILITY -- INSURANCE. (1) A public
charter school shall be organized and managed under the Idaho nonprofit
corporation act. The board of directors of a public charter school shall be
deemed public agents authorized by a public school district, the public
charter school commission, or the state board of education to control the
public charter school, but shall function independently of any school board of
trustees in any school district in which the public charter school is located,
or independently of the public charter school commission except as provided in
the charter. For the purposes of section 59-1302(15), Idaho Code, a public
charter school created pursuant to this chapter shall be deemed a governmental
entity. Pursuant to the provisions of section 63-3622O, Idaho Code, sales to
or purchases by a public charter school are exempt from payment of the sales
and use tax. A public charter school and the board of directors of a public
charter school are subject to the provisions of:
    (a)  Sections 18-1351 through 18-1362, Idaho Code, on bribery and corrupt
    influence, except as provided by section 33-5204A(2), Idaho Code;
    (b)  Chapter 2, title 59, Idaho Code, on prohibitions against contracts
    with officers;
    (c)  Chapter 7, title 59, Idaho Code, on ethics in government;
    (d)  Chapter 23, title 67, Idaho Code, on open public meetings; and
    (e)  Chapter 3, title 9, Idaho Code, on disclosure of public records
in the same manner that a traditional public school and the board of school
trustees of a school district are subject to those provisions.
    (2)  A public charter school may sue or be sued, purchase, receive, hold
and convey real and personal property for school purposes, and borrow money
for such purposes, to the same extent and on the same conditions as a
traditional public school district, and its employees, directors and officers
shall enjoy the same immunities as employees, directors  and officers of
traditional public school districts and other public schools, including those
provided by chapter 9, title 6, Idaho Code. The authorized chartering entity
that approves a public school charter shall have no liability for the acts,
omissions, debts or other obligations of a public charter school, except as
may be provided in the charter. A local public school district shall have no
liability for the acts, omissions, debts or other obligations of a public
charter school located in its district that has been approved by an authorized
chartering entity other than the board of trustees of the local school
district.
    (3)  Nothing in this chapter shall prevent the board of directors of a
public charter school, operating as a nonprofit corporation, from borrowing
money to finance the purchase or lease of school building facilities,
equipment and furnishings of those school building facilities. Subject to the
terms of a contractual agreement between the board and a lender, nothing
herein shall prevent the board from using the facility, its equipment and
furnishings, as collateral for the loan.
    (4)  Public charter schools shall secure insurance for liability and
property loss.
    (5)  It shall be unlawful for:
    (a)  Any director to have pecuniary interest directly or indirectly in any
    contract or other transaction pertaining to the maintenance or conduct of
    the authorized chartering entity and charter, or to accept any reward or
    compensation for services rendered as a director except as may be
    otherwise provided in this subsection (5). The board of directors of a
    public charter school may accept and award contracts involving the public
    charter school to businesses in which the director or a person related to
    him by blood or marriage within the second degree has a direct or indirect
    interest, provided that the procedures set forth in section 18-1361 or
    18-1361A, Idaho Code, are followed. The receiving, soliciting or
    acceptance of moneys of a public charter school for deposit in any bank or
    trust company, or the lending of moneys by any bank or trust company to
    any public charter school, shall not be deemed to be a contract pertaining
    to the maintenance or conduct of a public charter school and authorized
    chartering entity within the meaning of this section; nor shall the
    payment by any public charter school board of directors of compensation to
    any bank or trust company for services rendered in the transaction of any
    banking business with such public charter school board of directors be
    deemed the payment of any reward or compensation to any officer or
    director of any such bank or trust company within the meaning of this
    section.
    (b)  The board of directors of any public charter school to enter into or
    execute any contract with the spouse of any member of such board, the
    terms of which said contract require, or will require, the payment or
    delivery of any public charter school funds, moneys or property to such
    spouse, except as provided in section 18-1361 or 18-1361A, Idaho Code.
    (6)  When any relative of any director or relative of the spouse of a
director related by affinity or consanguinity within the second degree is to
be considered for employment in a public charter school, such director shall
abstain from voting in the election of such relative, and shall be absent from
the meeting while such employment is being considered and determined.