By: Harper-Brown H.B. No. 3034
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, Education Code, is amended by
amending Subsection (b) and adding Subsections (b-1), (b-2), and
(b-3) to read as follows:
(b) The State Board of Education may grant a charter for an
open-enrollment charter school only to an applicant that meets any
financial, governing, and operational standards adopted by the
commissioner under this subchapter. The State Board of Education
may not grant a total of more than 215 charters for an
open-enrollment charter school each state fiscal year.
(b-1) A charter holder of an existing charter may establish
one or more new open-enrollment charter school campuses under an
existing charter if:
(1) Each campus operating under the charter has been
assigned an acceptable performance rating as provided by Subchapter
C, Chapter 39, for two consecutively preceding school years;
(2) The open enrollment charter school has been
assigned a financial accountability rating under Subchapter D,
Chapter 39, indicating financial performance that is satisfactory
or better;
(3) The charter holder provides written notice, in the
time, manner and form provided by commissioner rule to the
commissioner of the establishment of any campus under this
subsection; and
(4) Not later than the 60th day after the date the
charter holder provides written notice under subsection (3), the
commissioner does not provide written notice to the charter holder
disapproving a new campus.
(b-2) The initial term of a charter granted under this
section is five years.
SECTION 3. Section 12.102, Education Code, is amended to
read as follows:
Sec. 12.102. AUTHORITY UNDER CHARTER. An open-enrollment
charter school:
(1) shall provide instruction to students at one or
more elementary or secondary grade levels as provided by the
charter;
(2) is governed under the governing structure
described by the charter;
(3) retains authority to operate under the charter to
the extent authorized under Sections 12.1141, 12.115, and 12.116
and Subchapter E, Chapter 39 [contingent on satisfactory student
performance as provided by the charter in accordance with Section
12.111]; and
(4) does not have authority to impose taxes.
SECTION 4. Section 12.1101, Education Code, is amended to
read as follows:
Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR
ESTABLISHMENT OF CAMPUS. The commissioner by rule shall adopt a
procedure for providing notice to the following persons on receipt
of an application for a charter for an open-enrollment charter
school under Section 12.110 or on receipt by the commissioner of
notice of the establishment of a campus as authorized under Section
12.101(b-2):
(1) the board of trustees of each school district from
which the proposed open-enrollment charter school or campus is
likely to draw students, as determined by the commissioner; and
(2) each member of the legislature that represents the
geographic area to be served by the proposed school or campus, as
determined by the commissioner.
SECTION 5. 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 the status of the charter as determined
under Section 12.1141 or 12.115 or under Subchapter E, Chapter 39
[acceptable student performance 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 or Subchapter E, Chapter 39, on which
the charter may be 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 6. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1141 to read as follows:
Sec. 12.1141. DENIAL OF RENEWAL OF CHARTER ON EXPIRATION OF
INITIAL TERM; AUTOMATIC RENEWAL. (a) At the end of the initial term
of a charter of an open-enrollment charter school, the charter
automatically renews without action by the commissioner, except
that the commissioner shall, except as provided by Subsection (b),
deny renewal of the charter if:
(1) a campus operating under the charter has been
assigned an unacceptable performance rating under Subchapter C,
Chapter 39, for three of the five preceding school years and such a
campus has not been closed; or
(2) the open-enrollment charter school has been
assigned a financial accountability performance rating lower than
the rating of standard achievement under Subchapter D, Chapter 39,
for three of the five preceding school years.
(b) In evaluating performance under Chapter 39.053(c), the
commissioner shall designate as a dropout recovery school any
open-enrollment charter school or any campus of an open-enrollment
charter school that:
(i) has a student population comprised of
at least 50% of students age 17 or older as of the fall Public
Education Information Management (PEIMS) submission for the school
year evaluated; and
(ii) is registered under any alternative
education accountability procedures adopted by the commissioner.
(b-1) The commissioner shall not deny renewal of the initial
or any successive term of an open-enrollment charter school
designated as a dropout recovery school under subsection (b), or
any open-enrollment charter school that is a residential treatment
facility as defined by Section 5.001(8), based solely on the
criteria specified under subsection (a)(1) or (e), as applicable.
For the purposes of renewal of the term of the charter under
subsection (a)(1) or (e), the commissioner must consider, as
determined by the commissioner in accordance with commissioner
rule, appropriate criteria to measure the specific goals and
student population of the open-enrollment charter school.
(c) Not later than the 365th day before the last day of the
initial term of a charter for an open-enrollment charter school,
the commissioner shall provide written notice to the charter
holder, in accordance with commissioner rule, of the basis on which
a charter renewal is denied under Subsection (a) or (b), as
applicable.
(d) Before the commissioner denies the renewal of the
initial term of the charter of an open-enrollment charter school,
the commissioner must provide the opportunity for a hearing to the
charter holder and the parents and guardians of students of the
school. A hearing under this subsection must be held at the
facility at which the school is operated. Chapter 2001, Government
Code, does not apply to a hearing under this subsection.
(e) A charter of an open-enrollment charter school that has
been renewed at the end of the initial term of the charter
automatically renews at the end of each successive charter term
without action by the commissioner, except that the commissioner
shall deny renewal of the charter if the accreditation of the
open-enrollment charter school has been revoked.
(f) The term of a charter renewed under this section is 20
years for each renewal.
(g) A campus of an open-enrollment charter school rated as
academically unacceptable under Subchapter D, Chapter 39, as that
subchapter existed January 1, 2009, for the 2008-2009, 2009-2010,
or 2010-2011 school year is considered to have been assigned an
unacceptable performance rating for that school year under
Subsection (a)(1). For purposes of Subsection (a)(2), based on
financial accountability reviews, the commissioner shall determine
the appropriate financial accountability performance rating to be
assigned to a charter holder for the 2008-2009 and 2009-2010 school
years. This subsection expires September 1, 2016.
SECTION 7. Section 12.115, Education Code, is amended to
read as follows:
Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON
PROBATION, REVOCATION, OR MODIFICATION OF GOVERNANCE [DENIAL OF
RENEWAL]. (a) The commissioner may shall modify, place on
probation, or revoke[, or deny renewal of] the charter of an
open-enrollment charter school or may reconstitute the governing
body of the charter holder or assign operation of an
open-enrollment charter school campus to a different charter holder
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; or
(5) is imminently insolvent as determined by the
commissioner in accordance with commissioner rule.
(b) The action the commissioner takes under Subsection (a)
shall be based on the best interest of the open-enrollment charter
school's students, the severity of the violation, [and] any
previous violation the school has committed, and the accreditation
status of the school.
SECTION 8. The heading to Section 12.116, Education Code,
is amended to read as follows:
Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION[, OR DENIAL OF RENEWAL].
SECTION 9. Sections 12.116(a) and (c), Education Code, are
amended to read as follows:
(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.
(c) Chapter 2001, Government Code, 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 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 12.156(b), Education Code, is repealed.