81R6460 CAS-D
By: Eissler H.B. No. 2541
A BILL TO BE ENTITLED
AN ACT
relating to the funding and operation of open-enrollment charter
schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.106, Education Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) A charter holder is entitled to receive funding under
this section for the open-enrollment charter school only if the
charter holder:
(1) provides information for the Public Education
Information Management System (PEIMS) as required by this chapter
or by commissioner rule;
(2) submits to the commissioner appropriate fiscal and
financial records as required by this chapter or by commissioner
rule; and
(3) receives an unqualified opinion in the most recent
independent auditor's report of the school's finances.
(e) The commissioner shall suspend the funding of a charter
holder that fails to comply with a rule adopted under Subsection (c)
until the commissioner determines that the charter holder:
(1) is in compliance or has cured any noncompliance;
and
(2) has adopted adequate procedures to prevent future
noncompliance.
SECTION 2. Section 12.116, Education Code, is amended by
adding Subsection (a-1) and amending Subsection (b) to read as
follows:
(a-1) The commissioner shall revoke the charter of an
open-enrollment charter school in accordance with the procedure
adopted under Subsection (a) if the school is insolvent as a result
of recovery of over-allocated state funds under Section 42.258(a).
(b) The commissioner shall revoke the charter of an
open-enrollment charter school without a hearing if each campus
operated under the school's charter has been ordered closed under
Section 39.131(a)(10) or under Section 39.1324(d), (e), or (f).
[The procedure adopted under Subsection (a) must provide an
opportunity for a hearing to the charter holder and to parents and
guardians of students in the school. A hearing under this
subsection must be held at the facility at which the program is
operated.]
SECTION 3. Section 39.1324(f), Education Code, is amended
to read as follows:
(f) If a campus, other than an open-enrollment charter
school campus, is considered academically unacceptable for two
consecutive school years after the campus is reconstituted under
Subsection (a), the commissioner shall order closure of the campus
or pursue alternative management under Section 39.1327. If a
campus of an open-enrollment charter school is considered
academically unacceptable for two consecutive school years after
the campus is reconstituted under Subsection (a), the commissioner
shall order closure of the campus.
SECTION 4. Sections 39.202 and 39.203, Education Code, are
amended to read as follows:
Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a) The
commissioner shall, in consultation with the comptroller, develop
and implement a financial accountability rating system for school
districts and open-enrollment charter schools in this state that:
(1) distinguishes among school districts and
open-enrollment charter schools based on levels of financial
performance; and
(2) includes procedures to:
(A) provide additional transparency to public
education finance; and
(B) enable the commissioner and school district
and open-enrollment charter school administrators to provide
meaningful financial oversight and improvement.
(b) The system must include uniform indicators adopted by
the commissioner by which to measure a district's or
open-enrollment charter school's financial management performance.
Sec. 39.203. REPORTING. (a) The commissioner shall
develop, as part of the system, a reporting procedure under which:
(1) each school district and open-enrollment charter
school is required to prepare and distribute an annual financial
management report; and
(2) the public is provided an opportunity to comment
on the report at a hearing.
(b) The annual financial management report must include:
(1) a description of the district's or school's
financial management performance based on a comparison, provided by
the agency, of the district's or school's performance on the
indicators adopted under Section 39.202(b) to:
(A) state-established standards; and
(B) the district's or school's previous
performance on the indicators; and
(2) any descriptive information required by the
commissioner.
(c) The report may include:
(1) information concerning, if applicable, the
district's or school's:
(A) financial allocations;
(B) tax collections;
(C) financial strength;
(D) operating cost management;
(E) personnel management;
(F) debt management;
(G) facility acquisition and construction
management;
(H) cash management;
(I) budgetary planning;
(J) overall business management;
(K) compliance with rules; and
(L) data quality; and
(2) any other information the board of trustees
determines to be necessary or useful.
(d) The board of trustees of each school district and the
governing body of each open-enrollment charter school shall hold a
public hearing on the report. The board shall give notice of the
hearing to, as applicable, owners of real property in the district
and to parents of district students or to owners of real property in
the district in which the open-enrollment charter school is located
and to the parents of school students. In addition to other notice
required by law, notice of the hearing must be provided:
(1) to a newspaper of general circulation in the
district; and
(2) through electronic mail to media serving the
district.
(e) After the hearing, the report shall be disseminated in
the district or in the district in which the open-enrollment
charter school is located in the manner prescribed by the
commissioner.
SECTION 5. Subchapter A, Chapter 46, Education Code, is
amended by adding Sections 46.014 and 46.015 to read as follows:
Sec. 46.014. INSTRUCTIONAL FACILITIES ALLOTMENT FOR
OPEN-ENROLLMENT CHARTER SCHOOLS. (a) In this section, "charter
holder" has the meaning assigned by Section 12.1012.
(b) In accordance with this section, a charter holder is
initially eligible for an instructional facilities allotment under
this section for a school year for a campus of an open-enrollment
charter school for which the charter holder has been granted a
charter if:
(1) the campus has for the two preceding school years
been rated as recognized or exemplary under Subchapter D, Chapter
39; and
(2) the charter holder has satisfied generally
accepted accounting standards of fiscal management as evidenced by
an unqualified opinion in the most recent independent auditor's
report of the financial records of the charter holder.
(c) After an open-enrollment charter school campus has
satisfied the eligibility requirement under Subsection (b)(1) and
receives an allotment under this section, the campus remains
eligible for an allotment unless the campus receives an
accountability rating of academically acceptable or below under
Subchapter D, Chapter 39, for three consecutive school years. To
regain eligibility, the campus must satisfy the requirement under
Subsection (b)(1).
(d) The commissioner annually shall review the eligibility
of an open-enrollment charter school campus for purposes of this
section.
(e) The amount of an allotment under this section is an
amount established by the commissioner, not to exceed $1,000 or a
different amount provided by appropriation, for each student in
average daily attendance during the preceding school year at the
open-enrollment charter school campus.
(f) A charter holder who receives funds under this section
may use the funds only for an open-enrollment charter school campus
for which the funds were paid under Subsection (e) and only to:
(1) purchase real property on which to construct an
instructional facility for the campus;
(2) purchase, lease, construct, expand, or renovate
instructional facilities for the campus;
(3) pay debt service in connection with instructional
facilities purchased or improved for the campus; or
(4) maintain and operate instructional facilities for
the campus.
(g) A decision of the commissioner under this section is
final and may not be appealed.
(h) The commissioner shall by rule establish procedures to
ensure that funds a charter holder claims to be using for purposes
of Subsection (f)(3) are used only for that purpose.
(i) Sections 12.107 and 12.1161 apply to funds allotted
under this section as though the funds were received under
Subchapter D, Chapter 12. Section 12.128 applies to property
purchased with funds allotted under this section as though the
property were purchased with funds received under Subchapter D,
Chapter 12.
Sec. 46.015. ADDITIONAL ASSISTANCE FOR OPEN-ENROLLMENT
CHARTER SCHOOL FACILITIES. (a) In this section, "charter holder"
has the meaning assigned by Section 12.1012.
(b) This section applies only to a charter holder that is
not eligible for an allotment under Section 46.014. A charter
holder is eligible for an instructional facilities allotment under
this section for a school year for a campus of an open-enrollment
charter school for which the charter holder has been granted a
charter if, as determined by the commissioner, the campus:
(1) has a current academic accountability rating of
acceptable, recognized, or exemplary under Subchapter D, Chapter
39;
(2) does not have an accreditation rating of
accredited-warned or accredited-probation;
(3) meets two or more additional academic requirements
determined by the commissioner from among the standards specified
by Section 39.0721(c);
(4) demonstrates the ability to finance a substantial
portion of the cost of the instructional facility and the inability
to fully pay the costs of the instructional facility, as determined
by the commissioner under commissioner rule; and
(5) satisfies any other requirement required under
commissioner rule.
(c) The commissioner shall use at least 10 percent of the
total amount of funds available for purposes of allotments under
Section 46.014 for allotments under this section. The amount of an
allotment under this section is an amount established by the
commissioner, based on the amount of funds available for the
purpose, for each student in average daily attendance during the
preceding school year at the open-enrollment charter school campus.
(d) Sections 46.014(f) and (h) apply to the use of funds a
charter holder receives under this section as if the funds were
received under Section 46.014.
(e) A decision of the commissioner under this section is
final and may not be appealed.
(f) Sections 12.107 and 12.1161 apply to funds allotted
under this section as though the funds were received under
Subchapter D, Chapter 12. Section 12.128 applies to property
purchased with funds allotted under this section as though the
property were purchased with funds received under Subchapter D,
Chapter 12.
SECTION 6. Sections 12.115(b) and 46.012, Education Code,
are repealed.
SECTION 7. This Act applies beginning with the 2009-2010
school year.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.