82R4404 CAS-D By: Shapiro S.B. No. 738 A BILL TO BE ENTITLED AN ACT relating to alternative methods of operating public schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.013, Education Code, is amended by amending Subsection (b) and adding Subsections (c), (d), and (e) to read as follows: (b) A home-rule school district is subject to: (1) a provision of this title establishing a criminal offense; (2) a provision of this title relating to limitations on liability; and (3) unless a waiver is granted under Subsection (c), a prohibition, restriction, or requirement, as applicable, imposed by this title or a rule adopted under this title, relating to: (A) the Public Education Information Management System (PEIMS) to the extent necessary to monitor compliance with this subchapter as determined by the commissioner; (B) [educator certification under Chapter 21 and educator rights under Sections 21.407, 21.408, and 22.001; [(C)] criminal history records under Subchapter C, Chapter 22; (C) [(D)] student admissions under Section 25.001; (D) [(E)] school attendance under Sections 25.085, 25.086, and 25.087; (E) [(F)] inter-district or inter-county transfers of students under Subchapter B, Chapter 25; (F) [(G) elementary class size limits under Section 25.112, in the case of any campus in the district that fails to satisfy any standard under Section 39.054(d); [(H)] high school graduation under Section 28.025; (G) [(I)] special education programs under Subchapter A, Chapter 29; (H) [(J)] bilingual education under Subchapter B, Chapter 29; (I) [(K)] prekindergarten programs under Subchapter E, Chapter 29; (J) [(L)] safety provisions relating to the transportation of students under Sections 34.002, 34.003, 34.004, and 34.008; (K) [(M)] computation and distribution of state aid under Chapters 31, 42, and 43; (L) [(N)] extracurricular activities under Section 33.081; (M) [(O)] health and safety under Chapter 38; (N) [(P)] public school accountability under Subchapters B, C, D, E, G, and J, Chapter 39; (O) [(Q)] equalized wealth under Chapter 41; (P) [(R)] a bond or other obligation or tax rate under Chapters 42, 43, and 45; and (Q) [(S)] purchasing under Chapter 44. (c) The commissioner may grant to a home-rule school district a waiver of a prohibition, restriction, or requirement to which the district is otherwise subject under Subsection (b)(3), other than a prohibition, restriction, or requirement to which the district is subject under Subsection (b)(3)(N), if: (1) the district: (A) submits a written request for the waiver in the time and manner required by commissioner rule; and (B) states in the waiver request the purpose of the request, including the manner in which the waiver is intended to: (i) improve student performance; or (ii) reduce district operational costs without detrimentally affecting student performance; and (2) the commissioner reasonably determines that the waiver is likely to assist the district in achieving the purpose stated in the waiver request. (d) The commissioner shall adopt rules as necessary to administer Subsection (c). (e) Not later than December 31 of each even-numbered year, the commissioner shall submit to the governor, the lieutenant governor, the speaker of the house of representatives, and the presiding officer of the standing committee of each house of the legislature with primary jurisdiction over public education a written report of each waiver request made and granted under Subsection (c) for the preceding two complete school years. SECTION 2. Section 12.014, Education Code, is amended to read as follows: Sec. 12.014. APPOINTMENT OF CHARTER COMMISSION. (a) The board of trustees of a school district shall appoint a charter commission to frame a home-rule school district charter if: (1) the board receives a petition requesting the appointment of a charter commission to frame a home-rule school district charter signed by at least five percent of the registered voters of the district; [or] (2) at least two-thirds of the total membership of the board adopt a resolution ordering that a charter commission be appointed; or (3) a majority of the total membership of the board of a district that, for the preceding two school years, has been awarded an exemplary distinction designation under Subchapter G, Chapter 39, adopts a resolution ordering that a charter commission be appointed. (b) Subsection (a)(3) applies to a school district awarded an exemplary distinction designation under Subchapter G, Chapter 39, only if the distinction designation has been awarded without considering the projected performance of district students on assessment instruments administered under Subchapter B, Chapter 39. SECTION 3. Section 12.016, Education Code, is amended to read as follows: Sec. 12.016. CONTENT. Each home-rule school district charter must: (1) describe the educational program to be offered; (2) provide that continuation of the home-rule school district charter is contingent on: (A) acceptable student performance on assessment instruments adopted under Subchapter B, Chapter 39; [and] (B) compliance with other applicable accountability provisions under Chapter 39; and (C) maintenance of the district's exemplary distinction designation, in the case of a district described by Section 12.014(a)(3); (3) specify any basis, in addition to a basis specified by this subchapter, on which the charter may be placed on probation or revoked; (4) describe the governing structure of the district and campuses; (5) specify any procedure or requirement, in addition to those under Chapter 38, that the district will follow to ensure the health and safety of students and employees; (6) describe the process by which the district will adopt an annual budget, including a description of the use of program-weight funds; (7) describe the manner in which an annual audit of financial and programmatic operations of the district is to be conducted, including the manner in which the district will provide information necessary for the district to participate in the Public Education Information Management System (PEIMS) to the extent required by this subchapter; and (8) include any other provision the charter commission considers necessary. SECTION 4. Section 12.019, Education Code, is amended by adding Subsection (e) to read as follows: (e) A school district described by Section 12.014(a)(3) is not required to hold an election under this section on the district's charter. SECTION 5. Section 12.020, Education Code, is amended by adding Subsection (k) to read as follows: (k) A school district described by Section 12.014(a)(3) is not required to hold an election under this section on a charter amendment. SECTION 6. Section 12.021(a), Education Code, is amended to read as follows: (a) Except as provided by Section 12.0211 and subject [Subject] to Section 12.022, a proposed home-rule school district charter or a proposed charter amendment is adopted if approved by a majority of the qualified voters of the district voting at an election held for that purpose. SECTION 7. Subchapter B, Chapter 12, Education Code, is amended by adding Section 12.0211 to read as follows: Sec. 12.0211. ALTERNATIVE ADOPTION OF CHARTER OR CHARTER AMENDMENT; EMPOWERMENT HOME-RULE SCHOOL DISTRICT. (a) Section 12.021 does not apply to a school district described by Section 12.014(a)(3). (b) A proposed charter or charter amendment in a school district described by Section 12.014(a)(3) is considered adopted after approval under Section 12.018 or 12.020, as applicable, on order by the governing body declaring adoption. The charter or charter amendment shall specify an effective date and takes effect according to its terms. (c) At the time a school district described by Section 12.014(a)(3) adopts a charter, the district becomes an empowerment home-rule school district. SECTION 8. Section 12.023(a), Education Code, is amended to read as follows: (a) As soon as practicable after a school district adopts a home-rule school district charter or charter amendment, the president of the board of trustees shall certify to the secretary of state a copy of the charter or amendment showing the approval by the voters of the district, except that a district described by Section 12.014(a)(3) is not required to show approval by the voters of the district. SECTION 9. Sections 12.052(a) and (c), Education Code, are amended to read as follows: (a) In accordance with this subchapter, the board of trustees or the superintendent of a school district [or the governing body of a home-rule school district] may grant a charter to parents and teachers for a campus or a program on a campus if the board or superintendent, as applicable, is presented with a petition signed by: (1) the parents of a majority of the students at that school campus; and (2) a majority of the classroom teachers at that school campus. (c) A charter [The board of trustees] may not arbitrarily be denied [deny a charter] under this section. SECTION 10. Section 12.0521(a), Education Code, is amended to read as follows: (a) Notwithstanding Section 12.052, in accordance with this subchapter and in the manner provided by this section, the board of trustees or the superintendent of a school district [or the governing body of a home-rule school district] may grant a charter for: (1) a new district campus; or (2) a program that is operated: (A) by an entity that has entered into a contract with the district under Section 11.157 to provide educational services to the district through the campus or program; and (B) at a facility located in the boundaries of the district. SECTION 11. Subchapter C, Chapter 12, Education Code, is amended by adding Section 12.0522 to read as follows: Sec. 12.0522. AUTHORIZATION FOR CAMPUS IDENTIFIED AS UNACCEPTABLE. Notwithstanding Section 12.052, in accordance with this subchapter, the board of trustees of a school district shall, as ordered by the commissioner under Section 39.107(a)(2), grant a charter for a campus that has been identified as unacceptable for two consecutive school years. SECTION 12. Section 12.053(a), Education Code, is amended to read as follows: (a) The board of trustees or the superintendent of a school district may grant a charter to parents and teachers at two or more campuses in the district for a cooperative charter program if the board or superintendent, as applicable, is presented with a petition signed by: (1) the parents of a majority of the students at each school campus; and (2) a majority of the classroom teachers at each school campus. SECTION 13. Section 12.057(c), Education Code, is amended to read as follows: (c) A campus or program granted a charter under Section 12.052, 12.0521(a)(1), 12.0522, or 12.053 is immune from liability to the same extent as a school district, and its employees and volunteers are immune from liability to the same extent as school district employees and volunteers. SECTION 14. Sections 12.060, 12.061, 12.062, and 12.063, Education Code, are amended to read as follows: Sec. 12.060. FORM. A charter shall be in the form and substance of a written contract signed by the president of the board of trustees or the superintendent, as applicable, granting the charter and the chief operating officer of the campus or program for which the charter is granted. Sec. 12.061. CHARTER GRANTED. Each charter granted [a board of trustees grants] under this subchapter must: (1) satisfy this subchapter; and (2) include the information that is required under Section 12.059 consistent with the information provided in the application and any modification the board requires. Sec. 12.062. REVISION. (a) A charter granted under Section 12.052, 12.0522, or 12.053 may be revised: (1) with the approval of the board of trustees or superintendent, as applicable, that granted the charter; and (2) on a petition signed by a majority of the parents and a majority of the classroom teachers at the campus or in the program, as applicable. (b) A charter granted under Section 12.0521 may be revised with the approval of the board of trustees or superintendent, as applicable, that granted the charter. A charter may be revised under this subsection only before the first day of instruction of a school year or after the final day of instruction of a school year. Sec. 12.063. BASIS FOR PLACEMENT ON PROBATION OR REVOCATION. (a) A board of trustees or superintendent may place on probation or revoke a charter the board or superintendent, as applicable, [it] grants if the board or superintendent determines that the campus or program: (1) committed a material violation of the charter; (2) failed to satisfy generally accepted accounting standards of fiscal management; or (3) failed to comply with this subchapter, another law, or a state agency rule. (b) The action the board or superintendent takes under Subsection (a) shall be based on the best interest of campus or program students, the severity of the violation, and any previous violation the campus or program has committed. SECTION 15. Section 12.064(a), Education Code, is amended to read as follows: (a) Each board of trustees or superintendent that grants a charter under this subchapter shall adopt a procedure to be used for placing on probation or revoking a charter the board or superintendent, as applicable, [it] grants. SECTION 16. Subchapter C, Chapter 12, Education Code, is amended by adding Sections 12.066 and 12.067 to read as follows: Sec. 12.066. FUNDING. The amount of funding for a campus or program granted a charter under this subchapter may not be less, on a per student basis, than the amount of funding for any regular campus in the school district in which the campus or program is located. Sec. 12.067. ITEMIZATION OF COSTS PROVIDED BY DISTRICT. If a charter is granted under Section 12.0521(a)(2) for a program that is operated by an entity that has entered into a contract with a school district under Section 11.157 to provide educational services to the district through the campus or program, the district shall provide to the entity: (1) an itemized list of the services that the district provided for program purposes before operation of the program under the contract and the cost of those services; and (2) an itemized list of any services that the district will continue to provide for the program and the cost of those services. SECTION 17. The heading to Section 39.107, Education Code, is amended to read as follows: Sec. 39.107. RECONSTITUTION, CONVERSION TO CHARTER CAMPUS, REPURPOSING, ALTERNATIVE MANAGEMENT, AND CLOSURE. SECTION 18. Section 39.107, Education Code, is amended by amending Subsections (a) and (e) and adding Subsections (a-2), (e-2), and (e-3) to read as follows: (a) After a campus has been identified as unacceptable for two consecutive school years, the commissioner shall: (1) order the reconstitution of the campus; or (2) order the reconstitution of the campus and direct the board of trustees of the school district or governing body of the home-rule school district in which the campus is located to convert the campus to a charter campus by granting a charter under Section 12.0522. (a-2) After a campus is converted to a charter campus under Subsection (a)(2), this section continues to apply to the campus. (e) If a campus is considered to have an unacceptable performance rating for three consecutive school years after the campus is reconstituted under Subsection (a), the commissioner, subject to Subsection (e-1) or (e-2), shall order: (1) repurposing of the campus under this section; (2) alternative management of the campus under this section; or (3) closure of the campus. (e-2) For purposes of this subsection, "parent" has the meaning assigned by Section 12.051. If the commissioner is presented, in the time and manner specified by commissioner rule, a written petition signed by the parents of a majority of the students enrolled at a campus to which Subsection (e) applies, specifying the action described by Subsection (e)(1), (2), or (3) that the parents request the commissioner to order, the commissioner shall, except as otherwise authorized by this subsection, order the specific action requested. If the board of trustees of the school district in which the campus is located presents to the commissioner, in the time and manner specified by commissioner rule, a written request that the commissioner order specific action authorized under Subsection (e) other than the specific action requested in the parents' petition and a written explanation of the basis for the board's request, the commissioner may order the action requested by the board of trustees. (e-3) For purposes of Subsection (e-2), the signature of only one parent of a student is required. SECTION 19. Notwithstanding Section 12.013(e), Education Code, as added by this Act, the report submitted by the commissioner of education on or before December 31, 2012, must cover only waiver requests made and granted for the 2011-2012 school year. SECTION 20. This Act applies beginning with the 2011-2012 school year. SECTION 21. 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.