82R4529 CAS-F By: Hancock H.B. No. 1369 A BILL TO BE ENTITLED AN ACT relating to the establishment of open-enrollment charter schools and of new campuses of existing charter schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.101, Education Code, is amended by amending Subsection (b) and adding Subsections (b-1) and (b-2) to read as follows: (b) The State Board of Education may grant a charter for an open-enrollment charter school only to an applicant that meets any financial, governing, and operational standards adopted by the commissioner under this subchapter. The State Board of Education may not grant [a total of] more than 20 new [215] charters for an open-enrollment charter school each state fiscal year. (b-1) A charter holder may establish one or more new open-enrollment charter school campuses under a charter without applying for authorization from the State Board of Education if: (1) 90 percent or more of the open-enrollment charter school campuses operating under the charter have been assigned an acceptable performance rating as provided by Subchapter C, Chapter 39, for the two preceding school years; (2) either no campus operating under the charter has been assigned an unacceptable performance rating as provided by Subchapter C, Chapter 39, for any two of the three preceding school years or such a campus has been closed; (3) the charter holder has been assigned a financial accountability rating under Subchapter D, Chapter 39, indicating financial performance that is satisfactory or better; (4) the charter holder provides written notice, in the time, manner, and form provided by commissioner rule, to the State Board of Education and the commissioner of the establishment of any campus under this subsection; and (5) not later than the 90th day after the date the charter holder provides written notice under Subdivision (4), the commissioner does not provide written notice to the charter holder disapproving a new campus under this section. (b-2) This subsection expires January 1, 2015. For purposes of Subsection (b-1): (1) an open-enrollment charter school campus rated as academically acceptable or higher under Subchapter D, Chapter 39, as that subchapter existed January 1, 2009, for the 2009-2010 or 2010-2011 school year is considered to have been assigned an acceptable performance rating for the applicable school year; and (2) an open-enrollment charter school campus rated as academically unacceptable under Subchapter D, Chapter 39, as that subchapter existed January 1, 2009, for the 2008-2009, 2009-2010, or 2010-2011 school year is considered to have been assigned an unacceptable performance rating for the applicable school year. SECTION 2. Section 12.1101, Education Code, is amended to read as follows: Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR ESTABLISHMENT OF CAMPUS. The commissioner by rule shall adopt a procedure for providing notice to the following persons on receipt by the State Board of Education of an application for a charter for an open-enrollment charter school under Section 12.110 or on receipt by the board and the commissioner of notice of the establishment of a campus as authorized under Section 12.101(b-1): (1) the board of trustees of each school district from which the proposed open-enrollment charter school or campus is likely to draw students, as determined by the commissioner; and (2) each member of the legislature that represents the geographic area to be served by the proposed school or campus, as determined by the commissioner. SECTION 3. This Act applies beginning with the 2011-2012 school year. SECTION 4. 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, 2011.