This bill establishes a comprehensive framework for the creation and operation of charter schools in South Dakota, defining key terms such as "authorizing entity" and "charter school." It outlines essential requirements for charter schools, including compliance with civil rights and safety regulations, nonsectarian operations, and the provision of in-person academic instruction. The legislation mandates that charter schools maintain separate financial functions from their authorizing entities, conduct annual audits, and adhere to open meetings and records laws. Notably, charter schools are prohibited from primarily using online or virtual methods for education and must report educational data in a manner similar to traditional school districts.

Additionally, the bill introduces amendments to existing charter school laws, emphasizing performance monitoring, compliance, and funding. It allows for the amendment of performance frameworks in charter school contracts after initial achievement data is collected, requiring disaggregation of student performance data by demographics. The authorizing entity is responsible for monitoring performance and legal compliance, with the authority to mandate corrective actions if performance is unsatisfactory. The bill also ensures that charter schools are open to all students, with specific admission preferences, and establishes them as local education agencies for special education funding. Overall, the legislation aims to enhance accountability, transparency, and support for charter schools while ensuring adherence to educational standards and legal requirements.