82R4138 CAS-D
By: Eissler H.B. No. 1588
A BILL TO BE ENTITLED
AN ACT
relating to the establishment, operation, and funding of
open-enrollment charter schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.101(b), Education Code, is amended to
read as follows:
(b) The State Board of Education, after thoroughly
investigating and evaluating an applicant, may grant a charter for
an open-enrollment charter school only to an applicant that meets
any financial, governing, curriculum development and
implementation, and operational standards adopted by the
commissioner under this subchapter. The State Board of Education
may not grant:
(1) a total of more than 275 [215] charters for an
open-enrollment charter school; or
(2) more than 15 new charters in a state fiscal year.
SECTION 2. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1011 to read as follows:
Sec. 12.1011. AUTHORIZATION FOR GRANT OF CHARTERS FOR
SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a) The
State Board of Education may grant under Section 12.101 a charter on
the application of an eligible entity for an open-enrollment
charter school intended primarily to serve students with
disabilities, including students with autism. A charter granted
under this section is included for purposes of the limits on the
number of open-enrollment charter schools imposed by Section
12.101(b).
(b) For purposes of the applicability of state and federal
law, including a law prescribing requirements concerning students
with disabilities, an open-enrollment charter school described by
Subsection (a) is considered the same as any other school for which
a charter is granted under Section 12.101.
(c) To the fullest extent permitted under federal law, a
parent of a student with a disability may choose to enroll the
parent's child in an open-enrollment charter school described by
Subsection (a) regardless of whether a disproportionate number of
the school's students are students with disabilities.
(d) This section does not authorize an open-enrollment
charter school to discriminate in admissions or in the services
provided based on the presence, absence, or nature of an
applicant's or student's disability.
(e) Each educator, including a person performing the duties
of a superintendent, employed or under contract to serve on the
instructional or administrative staff of an open-enrollment
charter school described by Subsection (a) must hold the
appropriate certificate, as determined in accordance with State
Board for Educator Certification rule, to serve students with a
disability of the same type as a disability of students enrolled in
the school.
(f) The commissioner and the State Board for Educator
Certification shall adopt rules as necessary to administer this
section.
SECTION 3. Section 12.106, Education Code, is amended by
amending Subsection (c) and adding Subsections (d), (e), (f), and
(g) to read as follows:
(c) The commissioner shall [may] adopt rules to provide and
account for state funding of open-enrollment charter schools under
this section. A rule adopted under this section may be similar to a
provision of this code that is not similar to Section 12.104(b) if
the commissioner determines that the rule is related to financing
of open-enrollment charter schools and is necessary or prudent to
provide or account for state funds.
(d) A charter holder is entitled to receive funding under
this section for an 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.
(f) The rules the commissioner adopts under Subsection (c)
must require the commissioner to provide written notice to a
charter holder before the suspension of funding under Subsection
(e). The written notice must:
(1) notify the charter holder that the charter
holder's funding may be suspended;
(2) specify the reason for which the funding may be
suspended, including an explanation of any noncompliance by the
charter holder with a specified rule adopted under Subsection (c);
(3) inform the charter holder that the charter holder
has 30 calendar days after the date on which the charter holder
receives the notice to demonstrate compliance or to cure any
noncompliance before the charter holder's funding is suspended by
the commissioner; and
(4) contain any other information the commissioner
determines necessary.
(g) The commissioner may not suspend the funding of a
charter holder under this section until the period specified by
Subsection (f) has expired.
SECTION 4. Section 12.111(a), Education Code, is amended to
read as follows:
(a) Each charter granted under this subchapter must:
(1) describe the educational program to be offered,
which must include the required curriculum as provided by Section
28.002;
(2) [specify the period for which the charter or any
charter renewal is valid;
[(3)] provide that continuation [or renewal] of the
charter is contingent on acceptable [student] performance as
determined [on assessment instruments adopted] under [Subchapter
B,] Chapter 39[, and on compliance with any accountability
provision specified by the charter, by a deadline or at intervals
specified by the charter];
(3) [(4) establish the level of student performance
that is considered acceptable for purposes of Subdivision (3);
[(5)] specify any basis, in addition to a basis
specified by this subchapter, on which the charter may be modified,
placed on probation, or revoked [or on which renewal of the charter
may be denied];
(4) [(6)] prohibit discrimination in admission policy
on the basis of sex, national origin, ethnicity, religion,
disability, academic, artistic, or athletic ability, or the
district the child would otherwise attend in accordance with this
code, although the charter may:
(A) provide for the exclusion of a student who
has a documented history of a criminal offense, a juvenile court
adjudication, or discipline problems under Subchapter A, Chapter
37; and
(B) provide for an admission policy that requires
a student to demonstrate artistic ability if the school specializes
in performing arts;
(5) [(7)] specify the grade levels to be offered;
(6) [(8)] describe the governing structure of the
program, including:
(A) the officer positions designated;
(B) the manner in which officers are selected and
removed from office;
(C) the manner in which members of the governing
body of the school are selected and removed from office;
(D) the manner in which vacancies on that
governing body are filled;
(E) the term for which members of that governing
body serve; and
(F) whether the terms are to be staggered;
(7) [(9)] specify the powers or duties of the
governing body of the school that the governing body may delegate to
an officer;
(8) [(10)] specify the manner in which the school will
distribute to parents information related to the qualifications of
each professional employee of the program, including any
professional or educational degree held by each employee, a
statement of any certification under Subchapter B, Chapter 21, held
by each employee, and any relevant experience of each employee;
(9) [(11)] describe the process by which the person
providing the program will adopt an annual budget;
(10) [(12)] describe the manner in which an annual
audit of the financial and programmatic operations of the program
is to be conducted, including the manner in which the person
providing the program will provide information necessary for the
school district in which the program is located to participate, as
required by this code or by State Board of Education rule, in the
Public Education Information Management System (PEIMS);
(11) [(13)] describe the facilities to be used;
(12) [(14)] describe the geographical area served by
the program; and
(13) [(15)] specify any type of enrollment criteria to
be used.
SECTION 5. Section 12.115, Education Code, is amended to
read as follows:
Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION[, OR DENIAL OF RENEWAL]. (a) The
commissioner may modify, place on probation, or revoke[, or deny
renewal of] the charter of an open-enrollment charter school if the
commissioner determines that the charter holder:
(1) committed a material violation of the charter,
including failure to satisfy accountability provisions prescribed
by the charter;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, or welfare
of the students enrolled at the school; or
(4) failed to comply with this subchapter or another
applicable law or rule.
(b) The action the commissioner takes under Subsection (a)
shall be based on the best interest of the school's students, the
severity of the violation, and any previous violation the school
has committed. Any action the commissioner takes under Chapter 39
concerning an open-enrollment charter school shall be taken in
accordance with that chapter.
SECTION 6. Section 12.116, Education Code, is amended to
read as follows:
Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION; CLOSURE UNDER CHAPTER 39 [, OR DENIAL OF
RENEWAL]. (a) The commissioner shall adopt a procedure to be used
for modifying, placing on probation, or revoking[, or denying
renewal of] the charter of an open-enrollment charter school.
(a-1) The commissioner shall close an open-enrollment
charter school under Chapter 39 if, after all information required
for determining a performance rating under the financial
accountability rating system under Subchapter D, Chapter 39, has
been considered, the commissioner determines that the school is
insolvent as defined by commissioner rule.
(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
Chapter 39 [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].
(b-1) Except as provided by Subsection (b) or Section
39.104(d), the procedure adopted under Subsection (a) for denying,
revoking, or modifying the charter of an open-enrollment charter
school must provide for a hearing on the issue to be held in the
county in which the school is located.
(c) Chapter 2001, Government Code, applies [does not apply]
to a hearing that is related to a modification, placement on
probation, or revocation[, or denial of renewal] under this
subchapter.
SECTION 7. The heading to Section 12.1161, Education Code,
is amended to read as follows:
Sec. 12.1161. EFFECT OF REVOCATION[, DENIAL OF RENEWAL,] OR
SURRENDER OF CHARTER.
SECTION 8. Section 12.1161(a), Education Code, is amended
to read as follows:
(a) If [Except as provided by Subsection (b), if] the
commissioner revokes [or denies the renewal of] a charter of an
open-enrollment charter school, or if an open-enrollment charter
school surrenders its charter, the school may not:
(1) continue to operate under this subchapter; or
(2) receive state funds under this subchapter.
SECTION 9. Section 12.1164(a), Education Code, is amended
to read as follows:
(a) The commissioner must notify the Teacher Retirement
System of Texas in writing of the revocation[, denial of renewal,]
or surrender of a charter under this subchapter not later than the
10th business day after the date of the event.
SECTION 10. Section 12.118(a), Education Code, is amended
to read as follows:
(a) The commissioner shall designate an impartial
organization with experience in evaluating school choice programs
to conduct, under the supervision of the commissioner, an annual
evaluation of open-enrollment charter schools.
SECTION 11. Section 12.119(c), Education Code, is amended
to read as follows:
(c) On request, the State Board of Education shall provide
the information required by this section and Section 12.111(a)(6)
[12.111(8)] to a member of the public. The board may charge a
reasonable fee to cover the board's cost in providing the
information.
SECTION 12. Section 39.104, Education Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) If interventions or sanctions are imposed on an
open-enrollment charter school under the procedures provided by
this chapter, a charter school is not entitled to an additional
hearing relating to the modification, placement on probation, or
revocation[, or denial of renewal] of a charter as provided by
Subchapter D, Chapter 12.
(e) Notwithstanding any other provision of this subchapter,
the commissioner shall order closure of an open-enrollment charter
school campus that has been assigned an unacceptable performance
rating under Subchapter C for three consecutive school years,
except that the commissioner may waive that requirement if the
commissioner determines that, on the basis of significant
improvement in student performance over the preceding two school
years, the campus is likely to be assigned an acceptable
performance rating under Subchapter C for the following school
year.
SECTION 13. The following provisions of the Education Code
are repealed:
(1) Section 12.113(b); and
(2) Section 12.1161(b).
SECTION 14. This Act applies beginning with the 2011-2012
school year.
SECTION 15. 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.