By: Isaac H.B. No. 300
A BILL TO BE ENTITLED
AN ACT
relating to an alternative system of public education governance
that enhances school accountability, local control, and family
empowerment in the educational system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Education Code is amended by adding Title 7
to read as follows:
TITLE 7. ALTERNATIVE PUBLIC EDUCATION GOVERNANCE SYSTEM
CHAPTER 2100. LEGISLATIVE FINDINGS AND INTENT; DEFINITIONS
Sec. 2100.001. ALTERNATIVE PUBLIC EDUCATION GOVERNANCE
SYSTEM TO MINIMIZE STATE-LEVEL COMMAND AND CONTROL. (a) The
legislature finds that:
(1) it is necessary to create an alternative public
education governance system that independent school districts and
charter schools may voluntarily adopt and that:
(A) allows schools, school districts, and
educators the local control and freedom to decide how to use and
allocate available resources to address the educational needs and
capabilities of students; and
(B) empowers families through a variety of means
to hold schools accountable for their performance or lack of
performance;
(2) the alternative system should combine:
(A) freedom for school operators to locally
determine, in an accountability plan subject to limited and
well-defined state approval, the goal for each school, the
appropriate measurable academic milestones that students in each
grade should achieve while proceeding toward the goal, and the
academic assessments used to determine whether the milestones are
met;
(B) broad flexibility in the curriculum, choice
of educational methods, and use of available resources to achieve
the goals and milestones;
(C) a practical mechanism that allows families to
change the goal of or the operator of a school when a majority of
families at the school consider it necessary; and
(D) practical mechanisms for providing
meaningful choice to families regarding which school a child
attends that include:
(i) access to licensed education advisors
who have the knowledge necessary to assist families in choosing a
school and whose business practices are regulated by the state; and
(ii) assurance that for students who attend
a school subject to this title, the full allotment of public funding
attributable to the student will follow the student to that school;
and
(3) to protect the freedom that school operators and
educators need in using their best judgment to successfully address
the educational needs and capabilities of students, the alternative
system should not rely on state-level command and control to
protect against misjudgments or failure by schools, school
districts, or educators to achieve their educational mission but
must instead rely on:
(A) practical mechanisms for:
(i) providing families with meaningful
choices among public schools;
(ii) allowing families at a school, when a
majority consider it necessary, to change the goal or the operator
of the school; and
(iii) reporting the academic and fiscal
performance of schools; and
(B) state involvement in:
(i) creating and maintaining a system of
certification to ensure that the goal chosen for a school will, when
achieved, have prepared each student for the next stage of life,
whether that is further formal education, meaningful employment and
participation in the civic life of the community, or both;
(ii) determining whether the certified goal
and measurable academic milestones locally chosen for a school are
properly aligned;
(iii) administering the local process
through which families may hold schools accountable when a
measurable milestone has not been met; and
(iv) determining whether third-party
school management organizations, as described by Chapter 2102, that
seek to operate a public school under this title have the financial
resources necessary to do so successfully.
(b) The legislature also finds that under any approach to
education in the public schools, safeguarding the health and safety
of students and other persons affected by the operation of public
schools is paramount, and for that reason it is appropriate that
provisions of this code designed to protect health and safety apply
in relation to the public schools operating under this title.
Accordingly, it is the intent of the legislature that whenever it is
necessary to do so, the commissioner of education choice shall
exercise the commissioner's rulemaking authority to ensure that
rules adopted by a governmental entity under a health and safety
statute designed for primary and secondary schools apply in an
appropriate and effective manner in relation to public schools
operating under this title.
Sec. 2100.002. DEFINITIONS. In this title:
(1) "Agency" means the Texas Education Agency.
(2) "Commissioner" means the commissioner of
education choice.
(3) "Division" means the Texas Education Choice
Division.
CHAPTER 2101. TEXAS EDUCATION CHOICE DIVISION
Sec. 2101.001. TEXAS EDUCATION CHOICE DIVISION. (a) The
Texas Education Choice Division is established within the agency.
(b) The agency shall provide staff support and facilities
necessary to enable the division to perform the division's duties
under this title, including:
(1) administrative assistance and services to the
division, including budget planning and purchasing;
(2) personnel, financial, and ministerial services;
and
(3) computer equipment and support.
(c) Notwithstanding Subsection (b), the commissioner has
the authority to employ and dismiss the division personnel whose
duties involve implementing this title under the direction of the
commissioner.
Sec. 2101.002. APPLICATION OF SUNSET ACT. The division is
subject to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the division is
abolished and this title expires September 1, 2025.
Sec. 2101.003. COMMISSIONER OF EDUCATION CHOICE. (a) The
division is administered and governed by the commissioner of
education choice.
(b) Except as otherwise provided by this title, the
commissioner of education choice exercises all executive authority
for the division, including the authority to adopt rules that this
title authorizes or requires to be adopted. The commissioner of
education may provide advice, research, and comment regarding the
adoption of rules by the commissioner of education choice.
(c) The governor, with the advice and consent of the senate,
shall appoint the commissioner of education choice. The
commissioner serves for a two-year term that expires February 1 of
each odd-numbered year.
(d) The governor shall appoint the commissioner without
regard to the race, color, disability, sex, religion, or national
origin of the appointee.
(e) The commissioner, with the advice of the commissioner of
education, shall develop and implement policies that clearly
separate the respective responsibilities of the division and the
other components of the agency.
Sec. 2101.004. DIVISION FUNDING. The agency shall identify
the pro rata amount of the agency's administrative budget,
including federal funds, that can be associated with independent
school districts and charter schools that have adopted the Families
First system under Sections 2102.002 and 2102.003, and use that
funding for division operations. If additional funding for
division operations is required, the legislature may only
appropriate to the agency for that purpose:
(1) out of the Foundation School Program allotment for
public schools operating under this title, as determined under
Subchapter F, Chapter 2102, an amount not to exceed 0.3 percent of
that allotment; and
(2) amounts the state receives as gifts or grants for
the purpose of administering this title.
CHAPTER 2102. FAMILIES FIRST: ALTERNATIVE PUBLIC EDUCATION
GOVERNANCE SYSTEM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2102.001. DEFINITIONS. In this chapter:
(1) "Accountability plan" means the plan required for
each Families First school that contains the goal, academic
milestones, and academic assessment mechanisms for the school.
(2) "Families First school" means a public school
operated under this title by a school management organization
subject to the approved accountability plan for the school.
(3) "Families First system" means the alternative
system of governance for primary and secondary education described
and governed by this title.
(4) "School management organization" means the
independent school district or other organization that operates a
Families First school under this title.
Sec. 2102.002. VOLUNTARY ADOPTION OF FAMILIES FIRST SYSTEM
BY INDEPENDENT SCHOOL DISTRICT. (a) An independent school
district may adopt the Families First system by:
(1) submitting to the division an accountability plan
for each district school in accordance with Subchapter B and
receiving plan approval for each district school under that
subchapter; and
(2) after receiving plan approval for each district
school, adopting the Families First system through a vote by the
board of trustees.
(b) Subject to the deadline for the vote established under
Subsection (d), the district becomes a school management
organization subject to this title and each district school becomes
a Families First school beginning with the first school year that
begins after the date of the vote to adopt. Unless otherwise
provided by this title, the district subsequently remains a school
management organization subject to this title unless the district
revokes its adoption of the Families First system. The new status
of the district as a school management organization does not affect
the authority of the district to impose ad valorem taxes.
(c) An independent school district may revoke its adoption
of the Families First system through a vote by the board of
trustees. The board of trustees may vote to revoke its adoption in
accordance with rules adopted under Subsection (d), except that the
vote to revoke must be taken not later than December 1 to take
effect beginning with the application deadline established by the
commissioner for the following school year.
(d) The commissioner shall adopt rules specifying deadlines
for:
(1) taking action under Subsection (a) to become a
school management organization subject to this title beginning with
the next school year; and
(2) voting to revoke adoption of the Families First
system to again become fully subject to Title 2 beginning with the
next school year.
(e) An independent school district that has adopted the
Families First system must declare enough open seats at its schools
to satisfy 100 percent of the student demand in the district.
(f) If an independent school district revokes its adoption
of the Families First system, only those Families First schools for
which the district serves as the school management organization at
the time the revocation takes effect become subject to Title 2 as a
result of the revocation.
Sec. 2102.003. CONVERSION OF CHARTER SCHOOL. (a) Subject
to Section 2102.004, the governing body of a charter holder
operating one or more open-enrollment charter schools under
Subchapter D, Chapter 12, or college or university or junior
college charter schools under Subchapter E, Chapter 12, that wishes
to convert all of its charter schools to Families First schools may
do so by:
(1) submitting to the division for approval under
Subchapter B an accountability plan that meets the requirements of
this title for each charter school that it operates; and
(2) after receiving plan approval for each charter
school that it operates, voting to adopt the Families First system
and operate its schools as Families First schools under this title
rather than as charter schools under Chapter 12.
(b) The governing body must promptly inform the
commissioner and the commissioner of education of the vote. On
notifying the commissioner and the commissioner of education, the
governing body becomes a school management organization in relation
to its operation of each charter school and each charter school
becomes a Families First school beginning with the first school
year that begins after the date of notification under this
subsection.
(c) A charter school may be converted to a Families First
school under this section without regard to whether the charter
school is located within the boundaries of an independent school
district that has adopted the Families First system. The charter
school is a public school but is not considered to be a school of the
school district within which any physical campus or administrative
office of the charter school is located. However, the funding
mechanisms of Subchapter F fully apply in relation to the charter
school, including the requirement that Title 2 funding attributable
to a student follows the student to the charter school without
regard to whether the funding derives from the state or from local
tax dollars collected by the school district within which the
student resides.
(d) A school management organization that previously
operated its schools as charter schools under Chapter 12 may revoke
adoption of the Families First system and revert to operation under
Chapter 12 through a vote by its governing body, provided that at
the time the vote is taken the organization qualifies to operate
charter schools under Chapter 12. The governing body may vote to
revoke adoption in accordance with rules adopted under Subsection
(e), except that the vote to revoke must be taken not later than
December 1 to take effect beginning with the application deadline
established by the commissioner for the following school year.
(e) The commissioner shall adopt rules specifying deadlines
for:
(1) taking action under Subsections (a) and (b) to
become a school management organization subject to this title
beginning with the next school year; and
(2) voting to revoke adoption of the Families First
system to again operate schools as charter schools fully subject to
Chapter 12 beginning with the next school year.
Sec. 2102.004. SCHOOL MANAGEMENT ORGANIZATION OTHER THAN
INDEPENDENT SCHOOL DISTRICT: FINANCIAL AND GOVERNANCE STANDARDS
AND ACCOUNTABILITY PLAN. (a) The commissioner by rule shall adopt
financial and governance standards that an organization other than
an independent school district must meet to become a school
management organization eligible to operate a Families First school
under an approved accountability plan. The standards must be
designed to ensure that a school management organization has the
financial resources and governance system necessary to operate a
Families First school.
(b) Rules adopted under Subsection (a) must provide that:
(1) the charter holder of one or more open-enrollment
charter schools under Chapter 12 that wishes to convert its charter
schools to Families First schools is considered to meet the
financial and governance standards if the commissioner of education
certifies to the commissioner of education choice that the charter
holder is in good standing under Chapter 12 at the time of
conversion; and
(2) a governmental entity that is allowed to operate a
charter school under Chapter 12 is considered to be an organization
that meets the financial and governance standards, without regard
to whether the governmental entity is operating a charter school
under Chapter 12.
(c) On certification by the commissioner that the
organization meets the financial and governance standards and on
approval by the commissioner of the organization's proposed
accountability plan for a specific Families First school or a type
of school, the organization is a school management organization
eligible to:
(1) open and operate a Families First school, if it is
to be a new school, without regard to whether the school will be
located within the boundaries of an independent school district
that has adopted the Families First system; and
(2) compete to operate a Families First school, if it
is an existing Families First school for which an accountability
trigger has been pulled under Subchapter E.
(d) A new school opened under this section is a public
school but is not considered to be a school of the independent
school district within which any physical campus or administrative
office of the school is located. However, the funding mechanisms of
Subchapter F fully apply in relation to the school, including the
requirement that Title 2 funding attributable to a student follows
the student to the school without regard to whether the funding
derives from the state or from local tax dollars collected by the
school district within which the student resides.
(e) The commissioner by rule shall establish deadlines for
taking actions under this section to operate a new school as a
Families First school during the subsequent school year.
Sec. 2102.005. STATE ORGANIZATION. (a) Except as provided
by Subsection (d), the division is the exclusive state regulatory
agency responsible for state involvement in matters relating to
public education in Families First schools. The extent of the
division's involvement is prescribed by this title.
(b) A school management organization operating a Families
First school is not subject to the authority of or rules adopted by
the commissioner of education, the State Board of Education, or the
agency except:
(1) as specifically provided by this title;
(2) under a provision of this code that specifically
states the actions of the commissioner of education, the State
Board of Education, or the agency taken under that provision apply
to Families First schools; or
(3) as specifically provided by rules adopted by the
commissioner under this title.
(c) The agency, as the single state education agency for
purposes of federal funding, remains responsible for administering
federal funds that, under this title and federal law, will be used
by or in connection with a Families First school.
(d) The commissioner of education choice may adopt rules as
provided by this subsection that make specified rules or forms of
the agency, the commissioner of education, or the State Board of
Education applicable to Families First schools. In an order
adopting a rule under this subsection, the commissioner must
specifically find that:
(1) the rules or forms that are made applicable:
(A) are designed to implement a provision of
Title 2 that is specifically made applicable to Families First
schools by Section 2102.007 or 2102.253; or
(B) address health and safety; and
(2) it is administratively efficient and consistent
with the provisions of this title to have those rules or forms apply
to Families First schools.
(e) The commissioner of education choice may describe a rule
or form of the agency, the commissioner of education, or the State
Board of Education made applicable under Subsection (d) by
referencing a specific existing rule or form or by referencing
rules or forms adopted under a specified provision of law.
Sec. 2102.006. AUTHORITY AND CONTROL OVER AND
RESPONSIBILITY FOR OPERATION OF FAMILIES FIRST SCHOOL. A Families
First school is operated by a school management organization. The
school management organization operating a Families First school
has authority and control over and responsibility for all aspects
of the school's operations, including the following:
(1) the name of the school;
(2) human resources practices at the school, such as
matters relating to hiring, firing, compensation, assessment, and
professional development;
(3) required credentials for teachers and other
employees or volunteers at the school;
(4) curriculum and instructional materials;
(5) pedagogical methods;
(6) class sizes;
(7) calendars and schedules;
(8) time on task and time spent by students at a
physical location, online, or otherwise as part of the learning
process;
(9) facilities management;
(10) transportation;
(11) procurement; and
(12) food and beverage service.
Sec. 2102.007. APPLICABILITY OF TITLE 2. (a) A Families
First school has the powers granted to schools under Title 2 to the
extent that the exercise of those powers is consistent with this
title. Otherwise, a provision of Title 2 does not apply to any
aspect of the operation of a Families First school, including an
aspect listed in Section 2102.006, unless:
(1) this title specifically provides that the
provision applies;
(2) the provision of Title 2 specifically provides
that it applies to a Families First school; or
(3) the commissioner adopts a rule making the
provision applicable because the commissioner determines that the
provision concerns health and safety.
(b) The following provisions of Title 2 apply to the
operation of a Families First school:
(1) Subchapter C, Chapter 11, and Section 11.155, if
the operator of the school is a school district;
(2) Sections 11.002, 11.151, 11.1511(a), (b)(1), (2),
(4), (6), (7), (8), (9), (10), (11), (12), and (15), and (c),
11.1512, 11.1513(a)(1) and (2), (b), (f), (g), and (i), 11.152,
11.153, 11.154, 11.1541, 11.156, 11.157, 11.158, 11.160, 11.161,
11.165, 11.166, 11.167, 11.168, 11.169, 11.170, 11.178, and
11.201(a), (b), and (e);
(3) Subchapters A, C, and F, Chapter 13, if the
operator of the school is a school district;
(4) Sections 22.004, 22.005, 22.006, and 22.011,
Subchapters B, C, and D, Chapter 22, and Section 22.901;
(5) Subchapter A, Chapter 25, Sections 25.040, 25.085,
25.086, 25.087, 25.088, 25.089, 25.090, 25.091, 25.093, 25.094,
25.095, 25.0951, and 25.0952, and Subchapters E and Z, Chapter 25;
(6) Chapter 26, other than Section 26.003;
(7) Subchapter A, Chapter 29, Sections 29.083, 29.151,
29.152, 29.153, 29.159, Subchapters I and L, Chapter 29, and
Sections 29.901 and 29.916;
(8) Subchapters D and F, Chapter 33, and Sections
33.901 and 33.904;
(9) Sections 34.001, 34.005, 34.007, 34.008, 34.009,
and 34.015; and
(10) Subchapters A and B, Chapter 38.
Sec. 2102.008. CHARTER SCHOOLS THAT DO NOT CONVERT TO
FAMILIES FIRST SCHOOLS. (a) Except as provided by Section
2102.003, this title does not affect an open-enrollment charter
school, including a school located in an independent school
district that has adopted the Families First system.
(b) This title does not affect the ability to open and
operate a new open-enrollment charter school under Chapter 12,
including a new school located in an independent school district
that has adopted the Families First system.
Sec. 2102.009. STATUS OF EXISTING EMPLOYMENT CONTRACTS.
(a) This section applies to an employment contract under Chapter 21
between an independent school district and a classroom teacher, as
defined by Section 5.001, or a principal, librarian, nurse,
counselor, or other person that has been entered into before the
school district adopts the Families First system and that will
according to the contract's terms be in effect after the school
district adopts the Families First system.
(b) The contract remains in effect and governed by Chapter
21 and other necessarily applicable provisions of Title 2 during
the period of the contract. However, all matters concerning the
duties, methods, and working conditions of the employee relating to
the operation of a Families First school that are not necessarily
governed by the provisions of the contract are governed by this
title.
Sec. 2102.010. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
TEXAS. (a) An employee of a school management organization
operating a Families First school who otherwise qualifies for
membership in the Teacher Retirement System of Texas shall be
covered under the system in the same manner and to the same extent a
qualified employee employed by an independent school district
operating under Title 2 is covered.
(b) For each employee of a school management organization
that is not an independent school district, the school management
organization is responsible for making any contribution to the
Teacher Retirement System of Texas that an independent school
district that employed the employee would be responsible for
making, and the state is responsible for making contributions to
the same extent it would be legally responsible if the employee were
a school district employee.
Sec. 2102.011. TRANSPARENCY IN OPERATION: APPLICABILITY OF
OPEN MEETINGS AND PUBLIC INFORMATION LAWS. (a) With respect to the
operation of a Families First school, the governing body of a school
management organization is considered to be a governmental body for
purposes of Chapters 551 and 552, Government Code.
(b) With respect to the operation of a Families First
school, any requirement in Chapter 551 or 552, Government Code, or
another law that concerns open meetings or the availability of
information, that applies to an independent school district, the
board of trustees of an independent school district, or public
school students at a school operated by an independent school
district under Title 2 applies to the school management
organization operating a Families First school, the governing body
of that school management organization, or students attending the
Families First school.
Sec. 2102.012. APPLICABILITY OF LAWS RELATING TO LOCAL
GOVERNMENT RECORDS. (a) With respect to the operation of a
Families First school by a school management organization that is
not a governmental entity, the school management organization is
considered to be a local government for purposes of Subtitle C,
Title 6, Local Government Code, and Subchapter J, Chapter 441,
Government Code.
(b) Records of the Families First school and records of the
school management organization that relate to the Families First
school are government records for all purposes under state law.
(c) Any requirement in Subtitle C, Title 6, Local Government
Code, or Subchapter J, Chapter 441, Government Code, that applies
to an independent school district, the board of trustees of an
independent school district, or an officer or employee of an
independent school district applies to a Families First school that
is not operated by an independent school district, to the school
management organization operating the Families First school and the
governing body of the school management organization, and to an
officer or employee of the school management organization, except
that the records of a Families First school that ceases to operate
shall be transferred in the manner prescribed by Subsection (d).
(d) The records of a Families First school that ceases to
operate shall be transferred in the manner specified by the
commissioner to a custodian designated by the commissioner. The
commissioner may designate any appropriate entity to serve as
custodian, including the division, a regional education service
center, or an independent school district. In designating a
custodian, the commissioner shall ensure that the transferred
records, including student and personnel records, are transferred
to a custodian capable of:
(1) maintaining the records;
(2) making the records readily accessible to students,
parents, former school employees, and other persons entitled to
access; and
(3) complying with applicable state or federal law
restricting access to the records.
(e) If the school management organization operating a
Families First school that ceases to operate or an officer or
employee of such a school refuses to transfer school records in the
manner specified by the commissioner under Subsection (d), the
commissioner may ask the attorney general to petition a court for
recovery of the records. If the court grants the petition, the
court shall award attorney's fees and court costs to the state.
Sec. 2102.013. IMMUNITY FROM LIABILITY. In matters related
to the operation of a Families First school, the Families First
school and the school management organization operating the school
are immune from liability to the same extent as an independent
school district, and the employees and volunteers of the
organization or school are immune from liability to the same extent
as independent school district employees and volunteers. A member
of the governing body of the school management organization is
immune from liability to the same extent as an independent school
district trustee.
[Sections 2102.014-2102.050 reserved for expansion]
SUBCHAPTER B. ACCOUNTABILITY PLANS
Sec. 2102.051. ACCOUNTABILITY PLAN REQUIRED. The school
management organization operating a Families First school must
operate the school under an accountability plan for the school that
has been approved by the commissioner under this subchapter.
Public funds may not be disbursed to a school management
organization to operate a Families First school that does not have
an approved accountability plan.
Sec. 2102.052. DIVISION ADMINISTRATION OF ACCOUNTABILITY
PLAN PROCESS. (a) The division administers the accountability
plan process. The process includes the appointment of certification
panels for the approval of school goals and third-party
authorization agents for the approval of measurable academic
milestones.
(b) The commissioner may adopt guidelines and provide
information to help school management organizations and entities
that want to become school management organizations prepare and
submit accountability plans. The commissioner shall adopt rules
specifying:
(1) the required form for an accountability plan;
(2) the deadlines by which an accountability plan or
plan amendment must be submitted to become effective by the next
school application deadline;
(3) the deadlines by which the commissioner must
approve or disapprove an accountability plan or plan amendment,
with the plan or plan amendment considered automatically approved
if the commissioner does not act on or before the deadline;
(4) the composition of and procedures governing
certification panels;
(5) the process for selecting, compensating,
contracting with, and monitoring the performance of third-party
authorization agents; and
(6) the manner in which approved accountability plans
are made available to the general public.
(c) In adopting deadlines for accountability plan
submission and approval, the commissioner shall ensure that school
management organizations and entities that want to become school
management organizations have a reasonable time after plan
disapproval to submit amendments that remedy deficiencies in the
plan.
Sec. 2102.053. CONTENT OF ACCOUNTABILITY PLAN. (a) The
accountability plan for a Families First school must contain:
(1) the goal for the school;
(2) for each grade level at the school, academic
milestones that measure progress toward accomplishment of the goal;
(3) the academic assessments that will be used to
determine whether the school is meeting its academic milestones for
each grade level at the school; and
(4) the process and standards that the school will use
to certify the school's teachers.
(b) The accountability plan of a school to be operated as a
neighborhood school under Section 2102.105 must include geographic
boundaries of the neighborhood, but only for informational
purposes. If a school to be operated as a neighborhood school will
additionally be designated as a geographic zone school under
Section 2102.105(e), the accountability plan must also include the
boundaries of the zone for informational purposes. The
commissioner, a certification panel, and a third-party
authorization agent may not consider the suitability of the
boundaries of the neighborhood or zone, if applicable, during the
accountability plan approval process.
Sec. 2102.054. GOALS. (a) The goal of a school, as stated
in its accountability plan, is the ultimate objective of the
school. For purposes of its accountability plan, a school has one
stated goal. The accountability plan goal must be stated in a way
that is comprehensible to families of students and prospective
students.
(b) This subchapter does not prohibit a school from having
other stated goals for purposes other than its approved
accountability plan.
Sec. 2102.055. APPROVAL OF GOALS: CERTIFICATION PANELS
GENERALLY. (a) The division shall administer a system of
certification panels to review and approve the goal of each school
as stated in the school's accountability plan.
(b) Each certification panel is composed of seven members
appointed by the commissioner. The commissioner shall appoint two
or more certification panels to approve the accountability plan
goal of elementary schools, two or more certification panels to
approve the accountability plan goal of middle and junior high
schools, and a sufficient number of certification panels to approve
the accountability plan goal of high schools.
Sec. 2102.056. COMPOSITION AND DUTIES OF CERTIFICATION
PANELS FOR ELEMENTARY, MIDDLE, AND JUNIOR HIGH SCHOOLS. (a) The
commissioner shall appoint four middle or junior high school
principals and three members of the public to each elementary
school certification panel. In approving or disapproving the
accountability plan goal chosen for an elementary school, the panel
shall determine whether the goal is an appropriate goal considering
the need to prepare graduates of the school for the middle and
junior high schools the graduates are likely to attend. When a panel
approves or disapproves a goal, the panel shall state the reasons
for its approval or disapproval in writing.
(b) The commissioner shall appoint four high school
principals and three members of the public to each middle and junior
high school certification panel. In approving or disapproving the
accountability plan goal chosen for a middle or junior high school,
the panel shall determine whether the goal is an appropriate goal
considering the need to prepare graduates of the school for the high
schools the graduates are likely to attend. When a panel approves
or disapproves a goal, the panel shall state the reasons for its
approval or disapproval in writing.
Sec. 2102.057. COMPOSITION AND DUTIES OF CERTIFICATION
PANELS FOR HIGH SCHOOLS. (a) The commissioner shall appoint
certification panels of seven persons comprising an appropriate
combination of employers and providers of postsecondary
credentials in a field or fields described by the proposed goal in
an accountability plan submitted for a high school. For example, a
certification panel responsible for approving a goal that consists
only of having a stated percentage of graduates:
(1) admitted to a four-year university might be
composed of seven persons with admissions responsibilities at a
four-year university;
(2) admitted to a four-year university and a stated
percentage admitted to a community college might be composed of
seven persons, four of whom have admissions responsibilities at a
four-year university and three of whom have admissions
responsibilities at a community college; and
(3) admitted to a four-year university and a stated
percentage either employed in a specified field or industry or
obtaining a postsecondary credential relevant to that field or
industry might be composed of seven persons, two of whom have
admissions responsibilities at a four-year university, three of
whom have relevant connections to employers in the specified field
or industry, and two of whom have relevant connections to providers
of postsecondary credentials in the specified field or industry.
(b) A certification panel approving the accountability plan
goal of a high school shall certify that the goal for the school is
appropriate for:
(1) the type or types of postsecondary credentials or
institutions of higher education, if any, contemplated by the goal;
and
(2) employment within a specified field or industry,
if contemplated by the goal.
(c) As part of making its determination under Subsection
(b), the panel shall estimate the expected net economic value of
obtaining any contemplated postsecondary credential or course of
study at an institution of higher education by:
(1) determining the arithmetic mean of tuition, fees,
and other required fees and expenses paid to providers of the
contemplated postsecondary credentials or courses of study at an
institution of higher education;
(2) determining the present value of the average
expected increase in wages received as a result of obtaining the
credential or completing the postsecondary course of study; and
(3) subtracting the amount determined under
Subdivision (1) from the amount determined under Subdivision (2).
(d) The panel may not approve the goal if the panel derives a
net negative expected economic value under Subsection (c).
(e) The school management organization operating a high
school must publish the amount determined by the certification
panel under Subsection (c) in its approved accountability plan for
the school.
(f) When a panel approves or disapproves a goal, the panel
shall state the reasons for its approval or disapproval in writing.
Sec. 2102.058. MILESTONES. (a) A milestone for a grade
level at a school is a precisely defined, quantifiable measurement
of progress toward the goal as measured by an assessment listed or
approved under Section 2102.060.
(b) The milestone for the final grade level at a school must
be directly related to the goal for the school.
Sec. 2102.059. APPROVAL OF MILESTONES; THIRD-PARTY
AUTHORIZATION AGENTS. (a) The commissioner shall select one or
more third-party authorization agents to approve or disapprove all
milestones in accountability plans. A third-party authorization
agent may approve or disapprove the milestones in an accountability
plan only after the goal in the accountability plan has been
approved by a certification panel.
(b) A third-party authorization agent may not review for
approval or disapproval the locally chosen goal approved by a
certification panel. The authorization agent may only determine
whether:
(1) each milestone for each grade level is a
reasonably appropriate benchmark, that is objectively measurable
with an approved assessment, for progress at that grade level
toward the goal; or
(2) for the final grade level of a school, the
milestone is a reasonably appropriate proxy for the goal that is
objectively measurable with an approved assessment.
(c) When a third-party authorization agent approves or
disapproves an academic milestone, the agent shall state the
reasons for its approval or disapproval in writing.
Sec. 2102.060. ASSESSMENTS. (a) The following assessments
are approved for use in accountability plans for Families First
schools:
(1) State of Texas Assessments of Academic Readiness
(STAAR) or any successor assessment instrument adopted under
Section 39.023(a);
(2) SAT;
(3) ACT;
(4) PSAT/NMSQT;
(5) Stanford Achievement Test (SAT-9 or SAT-10);
(6) Iowa Test of Basic Skills (ITBS);
(7) National Assessment of Educational Progress
(NAEP);
(8) Independent School Entrance Exam (ISEE);
(9) Secondary School Admission Test (SSAT);
(10) EXPLORE;
(11) PLAN;
(12) International Baccalaureate Exams (IB);
(13) Advanced Placement Exams (AP); and
(14) Programme for International Student Assessment
(PISA).
(b) The commissioner by rule may approve and publish
additional assessments that are considered acceptable methods to
determine a Families First school's progress in meeting the
academic milestones for various grade levels. To be acceptable for
use in an accountability plan, an assessment must be determined by
the commissioner to be statistically comparable to an assessment
listed in Subsection (a).
(c) The commissioner shall approve each assessment
contained in an accountability plan if the assessment is listed in
Subsection (a) or in the rule adopted under Subsection (b).
Sec. 2102.061. APPROVAL OF ACCOUNTABILITY PLAN. (a)
Subject to Subsection (b), the commissioner shall approve an
accountability plan on determining that:
(1) the accountability plan has a goal that has been
approved by the certification panel;
(2) the academic milestones and associated
assessments for each grade level in the school's accountability
plan have been approved by the third-party authorization agent;
(3) the assessments in the accountability plan are
approved for use under Section 2102.060; and
(4) the process and standards that the school will use
to certify the school's teachers are appropriate considering the
goal and academic milestones stated in the accountability plan.
(b) The commissioner may substitute the commissioner's
judgment for a certification panel's approval or disapproval of a
plan goal or a third-party authorization agent's approval or
disapproval of an academic milestone only if the commissioner
determines and states in writing that the certification panel's or
authorization agent's written reasons for approval or disapproval
are clearly erroneous. The commissioner must also state in writing
the specific finding of fact or reason of policy that supports the
commissioner's determination.
(c) The commissioner may decline to approve the process and
standards that a school will use to certify the school's teachers
only if the commissioner determines and states in writing that the
proposed process and standards are clearly inappropriate
considering the goal and academic milestones in the accountability
plan. The commissioner's written statement must include the
commissioner's reasons and one or more specific findings of fact
that support the commissioner's determination.
(d) On approval of a school's accountability plan, the
process and standards for certification of the school's teachers,
as described in the accountability plan, are considered to be
approved by the state.
Sec. 2102.062. ACADEMIC REPORTING. (a) Each school
management organization shall report to the division the results of
its assessments and performance against milestones for each school
that it operates, in accordance with each school's approved
accountability plan, at the time specified by the commissioner but
not less frequently than once each year.
(b) The commissioner shall adopt rules to ensure that the
form and contents of the reports allow the division to determine how
each Families First school operated by a school management
organization is performing against the milestones established in
that school's approved accountability plan.
(c) The commissioner shall adopt processes that allow for
prompt reporting of the performance of each Families First school
against:
(1) the milestones established in that school's
approved accountability plan;
(2) the performance of comparable schools; and
(3) national and international norms.
[Sections 2102.063-2102.100 reserved for expansion]
SUBCHAPTER C. TYPES OF SCHOOLS; SCHOOL CHOICE AND ADMISSIONS
PROCESS
Sec. 2102.101. SCHOOL CHOICE AMONG FAMILIES FIRST SCHOOLS.
(a) Any student residing in this state may apply for admission to
any Families First school without regard to the location of the
school or the student's residence.
(b) Subject to Sections 2102.103, 2102.104, and 2102.105
and the admissions process prescribed by this subchapter, a student
may enroll at any Families First school that has open seats at the
grade level for which the student applies. If the school is a
selective school, the student must meet the established admissions
criteria.
Sec. 2102.102. TYPES OF FAMILIES FIRST SCHOOLS. (a) A
Families First school may be a selective school, a neighborhood
school, or an open school.
(b) A selective school or an open school may be either a
coeducational school or a single-sex school. A neighborhood school
must be a coeducational school.
Sec. 2102.103. SELECTIVE SCHOOLS. (a) A selective school
is a school with established admissions criteria for enrollment.
(b) Not more than 20 percent of the seats in all schools
operated by a school management organization may be seats in a
selective school, except as provided by Subsection (c).
(c) A school management organization that is not an
independent school district and that operates only one Families
First school may operate the school as a selective school provided
that enrollment is limited to not more than 200 students.
(d) The admissions criteria of a selective school:
(1) may not discriminate on the basis of income,
national origin, ethnicity, race, religion, or disability; and
(2) must be reasonably related to the school's
certified goal.
(e) The admissions criteria and admissions process must be
included in the selective school's accountability plan and are
subject to approval by the commissioner and evaluation by a third
party authorization agent as part of the plan approval process.
(f) The school management organization operating the
selective school determines which applicants meet the admissions
criteria.
(g) If the school management organization operating a
selective school is an independent school district, all timely
applicants for admission who reside within the district and meet
the admissions criteria are entitled to preference in admission
over applicants who reside outside the district.
Sec. 2102.104. OPEN SCHOOLS. (a) An open school is a
school:
(1) that does not have established admissions criteria
for admission; and
(2) for which, if there are more applicants for
admission than open seats at the school, admission to the school is
determined by an unweighted lottery.
(b) Notwithstanding Subsection (a)(2), if the school
management organization operating an open school is an independent
school district, all timely applicants who reside within the
district are entitled to preference in admission over applicants
who reside outside the district. If there are more timely
in-district applicants than open seats at such a school, admission
to the school is determined by an unweighted lottery among those
applicants. If there are open seats at the school after all timely
in-district applicants have been admitted for the school year,
subsequent admissions processes for the school year may not
distinguish between in-district and out-of-district applicants.
(c) Notwithstanding Subsections (a) and (b), any sibling of
an existing student at an open school and any child of a teacher or
employee at an open school is entitled to enroll in the school if:
(1) the school has open seats at the grade level for
which the sibling or child of a teacher or employee applies; and
(2) the sibling or child of a teacher or employee is
not disqualified from admission for a reason such as school safety
or discipline.
(d) If there are more siblings and children of teachers and
employees at the open school who are entitled to enroll under
Subsection (c) who have made timely application to enroll than open
seats at the school, admission to the school is determined by an
unweighted lottery among those children, with siblings having
priority over the children of teachers and employees in the
process.
Sec. 2102.105. NEIGHBORHOOD SCHOOLS. (a) A neighborhood
school is a school:
(1) that does not have established admissions criteria
for admission; and
(2) for which, if there are more applicants for
admission than open seats at the school, admission to the school is
by a weighted lottery that assigns weights to applicants so that an
applicant's probability of admission increases with the proximity
of the applicant's residence to the school.
(b) Notwithstanding Subsection (a)(2), if the school
management organization operating a neighborhood school is an
independent school district, all timely applicants who reside
within the district are entitled to preference in admission over
applicants who reside outside the district. If there are more
timely in-district applicants than open seats at such a school,
admission to the school is determined by a weighted lottery among
those applicants that assigns weights so that an applicant's
probability of admission increases with the proximity of the
applicant's residence to the school. If there are open seats at the
school after all timely in-district applicants have been admitted
for the school year, subsequent admissions processes for the school
year may not distinguish between in-district and out-of-district
applicants.
(c) Notwithstanding Subsections (a) and (b), any sibling of
an existing student at a neighborhood school and any child of a
teacher or employee at a neighborhood school is entitled to enroll
in the school if:
(1) the school has open seats at the grade level for
which the sibling or child of a teacher or employee applies; and
(2) the sibling or child of a teacher or employee is
not disqualified from admission for a reason such as school safety
or discipline.
(d) If there are more siblings and children of teachers and
employees at the neighborhood school who are entitled to enroll
under Subsection (c) who have made timely application to enroll
than open seats at the school, admission to the school is determined
by an unweighted lottery among those children, with siblings having
priority over the children of teachers and employees in the
process.
(e) If the school management organization operating a
neighborhood school is an independent school district, the district
may additionally designate the neighborhood school as a geographic
zone school and designate boundaries of the zone for purposes of
this subsection. A student who resides within the designated zone
and ranks the school as the student's first preference in
accordance with Section 2102.107(c) is entitled to attend the
school, subject to the same conditions and processes applicable to
a sibling of an existing student under Subsections (c) and (d). A
student entitled to attend a school under this subsection has the
same priority as a sibling of an existing student.
Sec. 2102.106. APPLICATION AND ADMISSIONS PROCESS. The
division shall organize and administer a unified statewide
application system for all students who wish to apply to a Families
First school. The division shall incorporate into the system a
unified statewide admissions process for students who will enroll
in a Families First school.
Sec. 2102.107. APPLICATION AND ADMISSIONS PROCESS: OPEN
SCHOOLS AND NEIGHBORHOOD SCHOOLS. (a) This section applies only to
open schools and neighborhood schools.
(b) On or before the capacity declaration deadline, a date
established by the commissioner, each Families First school shall
declare to the division the number of open seats available at each
grade level for the upcoming school year.
(c) On or before the application deadline, a date
established by the commissioner, each student who wishes to apply
to a Families First school must submit an application through the
statewide unified application system. The division shall require
each student seeking admission to a Families First school to submit
applications to at least three Families First schools through the
system and to rank the schools in order of preference.
(d) The division shall match students with schools
according to rules adopted by the division, taking into account,
among other factors, school capacity and the preference rankings of
the students.
(e) On or before the admission notification deadline, a date
established by the commissioner but not later than the 30th day
after the application deadline, the division shall inform each
Families First school of its list of admitted students.
Sec. 2102.108. APPLICATION AND ADMISSIONS PROCESS:
SELECTIVE SCHOOLS. (a) This section applies only to selective
schools.
(b) On or before the capacity declaration deadline
established under Section 2102.107, each selective Families First
school shall declare to the division the number of open seats
available at each grade level for the upcoming school year.
(c) The selective school shall establish an application
deadline for the school that is not later than the application
deadline established under Section 2102.107. On or before a
selective school's application deadline, each student who wishes to
apply to the selective school must submit an application to the
school. The selective school is responsible for entering the
application information into the statewide unified application
system not later than the application deadline established under
Section 2102.107.
(d) A selective school is responsible for administering its
own admissions process in compliance with the admissions criteria
described in its approved accountability plan.
(e) Not later than the 14th calendar day before the
admission notification deadline established under Section
2102.107, a selective school must provide a list of admitted
students and a rank-ordered list of students on the waiting list to
the division. The division will use this information for purposes
of the matching process under Section 2102.107.
Sec. 2102.109. ENROLLMENT PROCESS; SUPPLEMENTAL SCHOOL
ADMISSIONS PROCESS. (a) After receiving the list of admitted
students from the division, each Families First school shall
contact each admitted student and ask the student to sign an
enrollment commitment. Once a student has enrolled in a school, the
student may not enroll in another Families First school for the
upcoming school year.
(b) All enrollments must be completed by the enrollment
deadline, a date established by the commissioner that may not be
later than the 30th day after the date of the admission notification
deadline.
(c) An admitted student who does not enroll by the
enrollment deadline will be placed back into the division's school
matching system and will participate in a supplemental matching
process conducted by the division.
(d) The division shall conduct a supplemental admissions
process on a day-to-day rolling basis as needed to admit students
who are entering the state's public education system and students
who wish to change to a different school. The supplemental
admissions process is conducted in the same manner as the standard
admissions process under Section 2102.107, including the
declaration of open seats, application submission, the matching
process, and enrollment.
[Sections 2102.110-2102.150 reserved for expansion]
SUBCHAPTER D. EDUCATION ADVISORS
Sec. 2102.151. DEFINITION. In this subchapter, "education
advisor" means a person who advises and assists families regarding
education decisions, including school choice decisions, that the
family will make for children in the family who will attend a
primary or secondary school in this state.
Sec. 2102.152. LICENSE REQUIREMENT. (a) An education
advisor must be licensed under this subchapter to:
(1) receive payment under this subchapter; or
(2) advertise the person's services as an education
advisor.
(b) The division shall design and administer the licensing
process. The process must include:
(1) a way to ensure that licensed education advisors
are knowledgeable about the matters they must understand to
properly advise and assist families;
(2) relevant required continuing education for
license holders; and
(3) standards of ethics prescribed by the commissioner
that ensure licensed education advisors put the interests of the
families and students they advise ahead of other interests.
Sec. 2102.153. ENGAGING AN EDUCATION ADVISOR. (a) A family
may engage a licensed education advisor by signing a separate
contract with the advisor for each student in the family regarding
whom the advisor will provide advice and assistance. The contract
must be a form contract approved by the division.
(b) The term of the contract may not exceed one year.
Sec. 2102.154. REPORT. (a) A licensed education advisor
shall report to the division each contract entered into by the
advisor under Section 2102.153. The report must include the
information that the commissioner requires by rule.
(b) Information in a report under this section that
identifies or tends to identify the student or the student's family
is confidential.
Sec. 2102.155. AMOUNT AND PAYMENT OF FEE. (a) The base fee
for the one-year term of the contract is $200 per student, although
the commissioner shall prescribe a supplemental fee schedule based
on the category of student regarding whom the advisor advises and
assists a family. The commissioner shall base the categories of the
supplemental fee schedule on the categories described or referenced
by Subchapter F for purposes of assigning weights to students to
determine the amount of Foundation School Program funds that are
attributable to each student. In designing the fee schedule, the
commissioner shall ensure that:
(1) licensed education advisors are paid more to
advise and assist families regarding students in categories with
characteristics that indicate greater effort will be required to
properly place the students; and
(2) the fee schedule does not depend on the school in
which a student enrolls, so that the schedule does not create
incentives to place a student in a school or program for which the
student is not well-suited.
(b) With regard to who pays the fees of a licensed education
advisor and the source of the fees, if the student enrolls at:
(1) a Families First school, the school shall pay the
licensed education advisor's fee out of the Foundation School
Program funds that the school receives for that student under
Subchapter F; or
(2) a private, parochial, or public school that is not
described by Subdivision (1):
(A) the school or school district may but is not
required to pay the licensed education advisor's fee;
(B) the amount of the fee paid, if any, may not
exceed the amount established under Subsection (a); and
(C) if the school is a public school operated by
an independent school district that has not adopted the Families
First system and the school decides to pay the fee, the district
shall pay the fee out of the district's Foundation School Program
funds.
(c) For providing advice and assistance as an education
advisor, a licensed education advisor may not receive payment or
reimbursement of expenses from a family member of an advised
student, a school, a school officer or employee, a school
management organization or an officer or employee of the
organization, or another person interested in which school a
student attends.
(d) If the commissioner finds in a contested case under
Chapter 2001, Government Code, that a licensed education advisor
received payment or reimbursement of expenses in violation of
Subsection (c):
(1) the commissioner shall revoke the license of the
education advisor; and
(2) the education advisor shall pay to the state an
amount equal to the amount of all fees the education advisor
received under Subsection (b) for services performed during the
calendar year in which the violation occurred.
Sec. 2102.156. CORPORATE FORM PROHIBITED. (a) An
education advisor must operate as a sole proprietorship or organize
with one or more other education advisors in a partnership. An
education advisor or group of education advisors may not organize
in a corporate form, including in a limited liability corporate or
professional limited liability corporate form.
(b) This section does not prohibit an education advisor from
contracting with a corporate entity to provide the education
advisor with goods and services the education advisor uses in
performing the education advisor's responsibilities under this
subchapter.
[Sections 2102.157-2102.200 reserved for expansion]
SUBCHAPTER E. ACCOUNTABILITY TRIGGERS
Sec. 2102.201. TYPES OF ACCOUNTABILITY TRIGGERS. (a) The
pulling of an accountability trigger starts a process managed by
the division that allows but does not require the families of
students at a Families First school to change the school management
organization that will operate the school beginning with the
subsequent school year.
(b) There are two types of accountability triggers: the
state trigger and the family trigger.
Sec. 2102.202. STATE TRIGGER. (a) In this section:
(1) "Assessment" means the testing or other assessment
mechanism that, under the approved accountability plan for a
Families First school, is used to measure how a grade level at the
school performed in meeting its milestone.
(2) "Milestone" means the milestone for a grade level
at a Families First school under the school's approved
accountability plan.
(b) The division shall ensure that the results of each
assessment for each grade level at each Families First school are
promptly sent to the division. The commissioner shall pull the
state trigger for a Families First school when the results of the
assessments for any grade level at the school show that the school
failed to meet its milestone for that grade level.
(c) The division shall ensure that a school is accountable
under Subsection (b) only for the assessment of students who spent
at least 90 calendar days at the school during the school year,
except that for a student who did not spend at least 90 calendar
days at any one Families First school during the school year, the
first Families First school at which the student was enrolled
during the school year is responsible for the student's assessment
results under Subsection (b).
Sec. 2102.203. EFFECT OF PULLING STATE TRIGGER. (a) When
the commissioner pulls the state trigger for a school, the division
shall promptly start the process under which the families of
students at the school may but are not required to change the school
management organization that will operate the school beginning with
the subsequent school year.
(b) The division shall ensure that:
(1) the school management organization currently
operating the school and other school management organizations that
are qualified to operate the school are:
(A) promptly notified that the state trigger has
been pulled for the school; and
(B) invited to compete for the right to operate
the school subject to the school's current approved accountability
plan goal;
(2) the families of students at the school and their
licensed education advisors are promptly notified that the state
trigger has been pulled and of:
(A) the families' role and choices in the
subsequent decision-making process;
(B) the procedures and deadlines that will apply
to the process; and
(C) the time, place, and agenda of any meetings
that are part of the process;
(3) the procedures and deadlines allow time for a
qualified school management organization to be in place operating
the school during the subsequent school year;
(4) a qualified and disinterested person will preside
over any meeting at which decisions are made;
(5) each family has one vote for each student who is
currently enrolled at the school;
(6) there is a procedure to determine how a family's
vote is cast if the parents or guardians in the family disagree; and
(7) the procedures include instant runoff voting so
that the decision on which school management organization will
operate the school can be made with a single round of voting.
(c) The school management organization chosen by the
families to operate the school continues to operate the school from
year to year subject to the accountability trigger process and this
title.
Sec. 2102.204. FAMILY TRIGGER. (a) The family trigger for
a Families First school may be pulled for any reason, including a
desire to consider changing the operator of the school to a
different school management organization or a desire to change the
goal of the school or some other aspect of the school's approved
accountability plan.
(b) A family trigger is pulled by a petition sent to the
division signed by the families of at least 50 percent of the
students at the school that specifies the change or changes that the
families are contemplating.
(c) The commissioner shall establish the deadlines by which
a family trigger must be pulled to make a change for the subsequent
school year. The deadlines must ensure that families who disagree
with any change to the approved accountability plan have sufficient
time to find and enroll the student in a different school.
Sec. 2102.205. EFFECT OF PULLING FAMILY TRIGGER. (a) If a
petition under Section 2102.204 proposes a change in the school
management organization that operates the school, Sections
2102.203(b) and (c) apply as if the commissioner had pulled the
state trigger, except that:
(1) the school management organization currently
operating the school and other school management organizations that
are qualified to operate the school may propose an approved
accountability plan that has a different goal than the current goal
for the school; and
(2) the commissioner shall conform the procedures and
deadlines as necessary to allow families to make a timely informed
choice regarding any proposed changes to the goal.
(b) If a petition under Section 2102.204 proposes a change
to the school's approved accountability plan, including a change to
the goal, the division shall ensure that:
(1) the families of students at the school are
promptly notified of:
(A) the proposal to change the school's approved
accountability plan;
(B) the families' role and choices in the
subsequent decision-making process;
(C) the procedures and deadlines that will apply
to the process; and
(D) the time, place, and agenda of any meetings
that are part of the process;
(2) a qualified and disinterested person will preside
over any meeting at which decisions are made;
(3) each family has one vote for each student who will
attend the school during the subsequent school year; and
(4) there is a procedure to determine how a family's
vote is cast if the parents or guardians in the family disagree.
Sec. 2102.206. OPEN MEETINGS LAW. Chapter 551, Government
Code, does not apply to a meeting of the families held under Section
2102.203 or 2102.205, but the division shall ensure that notice to
the families and other interested persons of any meeting held under
either of those sections is timely and effective.
Sec. 2102.207. LEASE OF PHYSICAL CAMPUS AFTER CHANGE OF
SCHOOL OPERATOR. (a) If the school management organization that
operates a Families First school is changed under this subchapter
and the physical campus of the school is owned by a governmental
entity, the owner shall lease the physical campus to the new school
management organization for:
(1) an amount equal to the debt service on the prorated
portion of outstanding indebtedness associated with the physical
campus; or
(2) if there is no outstanding indebtedness associated
with the physical campus, $1 per year.
(b) If the school management organization that operates a
Families First school is changed under this subchapter and the
physical campus of the school is not owned by a governmental entity,
the owner shall lease the physical campus to the new school
management organization in accordance with the current lease
agreement if the term of the current lease agreement has not expired
or been terminated in accordance with the terms of the lease.
[Sections 2102.208-2102.250 reserved for expansion]
SUBCHAPTER F. FUNDING FOLLOWS THE STUDENT
Sec. 2102.251. DEFINITION. In this subchapter, "student"
means a student who attends a Families First school.
Sec. 2102.252. FUNDING: GENERAL PRINCIPLES. (a) Public
funding follows the student to the student's Families First school
without regard to whether the funding derives from local tax
dollars, state government sources of funding, or the federal
government.
(b) All public funding that can be reasonably attributed to
an individual student is considered direct funding.
(c) All public funding that cannot be reasonably attributed
to an individual student is considered indirect funding. The
amount of public funds that are payable to Families First schools
under this chapter that represent indirect funding shall be
allocated to individual students attending those schools on a pro
rata basis except to the extent that a portion of those funds should
be allocated to individual students on a weighted basis to preserve
the intent of the funding.
(d) A student may enroll in only one school at a time. All
direct funding attributed to a student and all indirect funding
allocated to a student is paid to the Families First school in which
the student is enrolled. If a student changes the school in which
the student is enrolled during a school year, the direct and
indirect funding follows the student to the new school as of the
date the student changes enrollment.
(e) Public funding is distributed to Families First schools
based on enrollment and not average or weighted average daily
attendance, as defined by Sections 42.005 and 42.302, except to the
extent that federal funding must be distributed in a different way
under federal law.
Sec. 2102.253. FUNDING UNDER THE FOUNDATION SCHOOL PROGRAM
AND OTHER STATE AND LOCAL FUNDING. (a) To the extent consistent
with this title, the following provisions apply to the funding of
Families First schools:
(1) Chapters 41, 42, and 43;
(2) Subchapters A and C, Chapter 44; and
(3) Chapters 45 and 46.
(b) The commissioner of education shall recommend and the
commissioner of education choice shall by rule establish the
procedures under which, for purposes of distributing Foundation
School Program funds and other state and local funding, the
commissioner of education choice, with the assistance of the
commissioner of education, will make the most timely yet accurate
estimates possible regarding:
(1) the number of students who will enroll at Families
First schools;
(2) the regular program or adjusted basic allotments
attributable to those students under Subchapter B, Chapter 42,
based on the residence of those students and any other relevant
factors under that law;
(3) the additional special allotments attributable to
those students under Subchapter C, Chapter 42, based on the factors
relevant under that law;
(4) the additional portion of the allotments
attributable to those students under Subchapter F, Chapter 42,
based on the residence of those students;
(5) the weighted or pro rata share of funds
appropriated for instructional materials attributable to those
students;
(6) the appropriate share attributable to those
students, if any, of the school facilities allotment and the
allotment for assistance with payment of existing debt under
Chapter 46, based on the residence of the students; and
(7) any other state or local public funding that may
fairly be attributed on a pro rata or weighted basis to individual
students.
(c) The commissioner of education shall recommend and the
commissioner of education choice shall by rule establish a fair and
reasonable percentage that, when multiplied by actual or estimated
enrollment as applicable, will allow school finance formulas based
on average or weighted average daily attendance, as defined by
Sections 42.005 and 42.302, to be converted to formulas based on
enrollment for purposes of distributing funds under this chapter.
The percentage established under this subsection, when applied,
must be revenue neutral with respect to the total funding of all
schools operating under this title.
(d) The commissioner of education shall recommend and the
commissioner of education choice shall by rule establish a
procedure under which:
(1) the amount of state and local public funds that
follow each student under this chapter is computed based on the
estimates made in accordance with Subsection (b) and the percentage
determined under Subsection (c); and
(2) those amounts are transferred to the control of
the commissioner of education choice for distribution to Families
First schools in accordance with this chapter.
(e) The commissioner of education shall recommend and the
commissioner of education choice shall by rule establish a
procedure analogous to the procedure established under Section
42.253(i) that allows an adjustment, on a going forward basis, of
the state and local public funds payable to Families First schools
based on the actual amount of state and local public funds to which
the schools are entitled under this chapter.
(f) When a student's residence and/or enrolled school
changes in a way that would impact the amount of funding calculated
under this section, the enrolled school shall notify the
commissioner and the commissioner shall adjust amounts due under
this section.
Sec. 2102.254. FEDERAL FUNDING. The commissioner of
education shall establish procedures and standards based on state
and federal law under which federal money that can be reasonably
attributed to an individual student as direct funding or allocated
to an individual student as indirect funding is paid in accordance
with federal law to the Families First school in which the student
is enrolled.
Sec. 2102.255. FISCAL REPORTING. (a) A school management
organization shall report to the division quarterly in accordance
with generally accepted accounting principles regarding the fiscal
operations of the schools operated by the organization.
(b) The commissioner shall adopt rules to ensure that the
form and contents of the reports allow the division to determine
whether the school management organization is operating in
accordance with fiscal standards and fiscal requirements
established by this title or by rule of the commissioner.
SECTION 2. (a) As soon as possible after the effective date
of this Act, the governor shall appoint a person to serve as the
commissioner of education choice for a term expiring February 1,
2015.
(b) The Texas Education Choice Division shall ensure that
all necessary actions have been taken so that schools that, under
the choice mechanisms of Title 7, Education Code, as added by this
Act, will operate as Families First schools can operate as Families
First schools beginning with the 2014-2015 school year. To the
extent the commissioner of education choice considers it necessary
to accomplish this duty, the commissioner may adopt the
commissioner's initial rules as emergency rules under Section
2001.034, Government Code.
SECTION 3. This Act takes effect September 1, 2013.