LEGAL STRUCTURES

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LEGAL STRUCTURES PROCEDURES OF A QUALITY BOARD
Presented by JAMES E. YOUNG, ESQ. PAUL C.
MINNEY, ESQ.
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• Organizational
• Proactivity

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Organizational Proactivity

• Importance of foundational documents
  (charter/MOU/bylaws, etc.)
• Laws generally affecting operation of charter
  schools
• Boards roles
• Director/Principals Roles
• Roles of Individual Board Members

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• The Brown Act
• (Government Code 54950, et seq.)

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The Brown Act

• Systematic compliance is key
• Purpose of the Act
• Meeting defined
• Notice and Agenda requirements
• The rights of the public
• Permissible closed sessions

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The Brown Act (contd.)

• Penalties for Violation of Act
• Problem area nonprofit bylaws
• Problem area committee compliance
• Problem area complaints or charges against
  employees
• Problem area improper agenda description

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Effective Meetings

• Sample Agenda for Regular Meeting
• Sample Speaker Cards

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• Conflicts of Interest

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Conflicts of Interest Statutes

• What is the Problem?
• The Political Reform Act PRA (likely applicable
  to charter schools)
• Corporation Code requirements (for non-profits)

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Conflicts of Interest Statutes (contd.)

• Government Code Section 1090 (applicability to CS
  questionable)
• Main Difference Between PRA Section 1090
• Board member employees Government Code 53227

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The Political Reform Act

• What does the PRA require?
• - Prohibits any public official from making,
  participating in making, or otherwise using his
  or her official position to influence a
  governmental decision in which he or she has a
  financial interest.
• Requires a conflict of interest code
• Requires filing of Statement of Economic Interest
  (Form 700)

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Conflict of Interest Code Basics

• A Code should identify a list of positions for
  high-level decision makers known as designated
  employees
• Common examples of Designated Employees
• Board Members
• Executive Director
• Principal

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Conflict of Interest Code Basics (contd.)

• Explains disqualification process
• Coordinate with bylaws

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Statement of Economic Interest (Form 700) Basics

• Form 700 is to be filed upon assuming the
  position and once annually thereafter.
• Signed under penalty of perjury.

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Statement of Economic Interest (Form 700) Basics
(contd.)

• Not all economic interests need be listed only
  types of interests which could forseeably and
  materially affect a public officials decisions.
• Form 700 can be obtained on-line at
  www.fppc.ca.gov.

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Penalties for Violating PRA

• Possible administrative sanctions, civil
  penalties, criminal penalties
• Possible granting agency fallout
• Public relations issues
• FCMAT audits

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Possible Conflict of Interest Regulations

• Drafts of the regulations being developed.
• Likely to mirror the Political Reform Act, not
  Government Code Section 1090.

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Basic Corporation Code Duties

• 49 interested person rule
• What are fiduciary duties?
• Section 5231 requires the director of a
  corporation to act in good faith, in the best
  interest of the corporation, and with such care
  as an ordinarily prudent person in a like
  position under similar circumstances.

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Basic Corporation Code Duties (contd.)

• Duty of care
• Duty of loyalty
• Duty of good faith and fair dealing

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• Public Records Act
• (Government Code 6250 et seq.)

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The Public Records Act

• Purpose of Act
• Public record defined
• Right to inspect
• Right to copy records
• Procedure for responding for records

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The Public Records Act (contd.)

• Exemptions from disclosure
• - Sample nonexempt documents
• Segregation of nonexempt records
• Penalties for lack of compliance
• Proposition 59

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• QUESTIONS
• ANSWERS