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HB 874

Enact the Charter School Sponsor and Operator Rating Act

136th Legislature (2025-2026) Introduced by Rachel Baker and 1 co-sponsor

HB 874 creates annual sponsor and operator report cards with ratings, linking performance to incentives or sanctions to improve transparency and accountability for Ohio charter sch

Referred to committee
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Bill Summary · HB 874

Summary of HB 874 (Ohio, 136th General Assembly)

Purpose and intent

HB 874, titled the Charter School Sponsor and Operator Rating Act, would establish a formal framework for evaluating and reporting on the performance of entities that sponsor and operate community (charter) schools in Ohio. The bill aims to increase transparency by creating standardized sponsor and operator report cards, ratings, and associated incentives or sanctions based on performance and compliance.

Key provisions and changes

  • Annual sponsor and operator report cards (new framework)

    • The Department of Education and Workforce (DEW) would issue:
    • An annual sponsor report card for each community school sponsor, including the sponsor’s evaluation and an overall rating.
    • An annual operator report card for each community school operator (beginning with operator-specific performance data).
    • Report cards would be posted on the DEW website and include links to sponsor/operator sites and their own report cards.

  • Sponsor evaluation system (HB 874, 3314.016)

    • DEW must develop and implement an annual sponsor evaluation system with components including:
    • Academic performance of students in sponsored schools (with adjustments for portfolio performance and certain exemptions).
    • Adherence to quality practices prescribed by the department.
    • Compliance with applicable laws and rules.
    • The evaluation would produce an overall rating of exemplary, effective, ineffective, or poor, with equal weight given to components.
    • Public posting of ratings occurs between Oct 1 and Nov 15; sponsors may review and contest data used in certain components prior to final publication.
    • Training on the evaluation system must be provided annually.

  • Sponsorship eligibility and incentives (A/B)

    • Sponsors may take additional sponsorship contracts only if they meet criteria including data reporting compliance and not being rated ineffective.
    • Exemplary sponsors receive incentives such as longer renewal periods (up to 10 years), potential contract extensions, exemptions from certain deadlines, removal of sponsorship limits, and no territorial restrictions.
    • Exemplary sponsors receive a multi-year non-evaluation period (not evaluated for five years); effective sponsors receive a three-year deferral.
    • Ineffective or poor ratings can trigger sanctions, including prohibition on sponsoring new schools, required improvement plans, and potential revocation of sponsorship authority after applicable appeals.
    • In cases of continued “ineffective” ratings, or “poor” ratings, revocation of sponsorship authority is possible, with an appeal process to an independent hearing officer.

  • Special rules for 501(c)(3) exempt entities and university boards (HB 874, 3314.021)

    • Provisions allow certain exempt entities to succeed or continue as sponsors of community schools even without initial DEW approval, under specified conditions, with ongoing DEW oversight.
    • Approval requirements could be waived in some instances, but ongoing oversight and a potential approval path exist if rating standards fall below “effective” for two consecutive years.

  • Sponsor data and contract transparency (HB 874, 3314.031)

    • Beginning March 31, 2016, the DEW would maintain an up-to-date roster of entities with sponsorship contracts and publish annual operator performance data and contracts.
    • Operators’ performance reports would be published in a format consistent with state school report cards.

  • Reorganization and statutory updates

    • The act would repeal the existing sections on sponsor and operator reporting and ratings and enact new sections to implement the Charter School Sponsor and Operator Rating Act.

Who and what is affected

  • Affected entities: All entities that sponsor community schools in Ohio, and all operators of community schools.
  • Public access: Parents, school districts, sponsors, operators, and the general public would have access to sponsor and operator report cards, as well as links to sponsor and operator performance and contract information.
  • State oversight: The Department of Education and Workforce would lead the evaluation, reporting, and enforcement, including rulemaking and potential sanctions or incentives.

Procedural and timeline aspects

  • Annual reporting cycles align to each fiscal/academic year, with initial implementation timelines spanning 2016 for some provisions (per the text) and ongoing annual updates.
  • Public comment and review processes are specified for the sponsor evaluation framework, with a staged posting and adjustment timeline.
  • The act creates a formal structure for ratings, star descriptors, and a two-tiered incentive/sanction regime tied to sponsor and operator performance.

Note: The bill text references several timelines and dates (e.g., 2016 initial actions) that reflect the time of introduction; actual implementation would depend on passage and any subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

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