83R10243 CAS-D
By: Patrick S.B. No. 2
A BILL TO BE ENTITLED
AN ACT
relating to charter schools and home-rule charter school districts,
including establishment of the Charter School Authorizing
Authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 11, Education Code, is
amended by adding Sections 11.1542 and 11.1543 to read as follows:
Sec. 11.1542. OPEN-ENROLLMENT CHARTER SCHOOL OFFER FOR
INDEPENDENT SCHOOL DISTRICT FACILITY. (a) The commissioner shall by
rule adopt a procedure and criteria for determining whether an
independent school district facility or a portion of a district
facility is unused or underutilized by the district. Each year, the
commissioner shall, using the procedure and criteria adopted,
identify for each district any district facility or any portion of a
district facility that is unused or underutilized. Each year, the
agency shall post on the agency's Internet website a list of each
district's unused or underutilized facilities and portions of
facilities. At the request of an open-enrollment charter school, a
district shall provide to the charter school a list of unused and
underutilized district facilities and portions of district
facilities as identified by the commissioner.
(b) This subsection applies only to a school district
facility or a portion of a district facility identified by the
commissioner under Subsection (a) as being unused or underutilized
by the district. If the charter holder of an open-enrollment
charter school makes a written offer to a district to lease or
purchase a district facility or a portion of a district facility
identified as being unused or underutilized, the district shall
enter into an agreement to lease or sell, as applicable, the
facility or the portion of the facility to the charter holder for
use by the open-enrollment charter school for classroom
instruction. The price for the lease or sale must be $1.
(c) If a charter holder who enters into a lease or purchase
agreement for a district facility or a portion of a district
facility under Subsection (b) does not, on or before the second
anniversary of the date of the agreement, begin using the facility
or the portion of the facility for open-enrollment charter school
classroom instruction, the facility or the portion of the facility
shall be placed again on the commissioner's list under Subsection
(a).
(d) If a charter holder to whom a district facility is sold
under Subsection (b) subsequently sells or transfers the facility
to a third party, the charter holder shall pay an amount equal to
the amount of any gain in the property minus the adjusted basis,
including costs of improvements to the facility, to the district
from which the charter holder purchased the facility. This
subsection applies to a subsequent sale or transfer by the charter
holder even if the charter holder is represented as a different
entity. For purposes of this subsection, the amount of any gain and
the adjusted basis for purposes of determining gain shall be
determined in accordance with applicable federal law and
regulations.
Sec. 11.1543. CHARTER SCHOOL PAYMENT FOR FACILITIES USE OR
FOR SERVICES. (a) An independent school district may not require
a campus or campus program that has been granted a charter under
Subchapter C, Chapter 12, and that is the result of the conversion
of the status of an existing school district campus to pay rent for
or to purchase a facility in order to use the facility.
(b) An independent school district may not require a campus
or campus program described by Subsection (a) or an open-enrollment
charter school to pay for any service provided by the district under
a contract between the district and the campus, campus program, or
open-enrollment charter school an amount that is greater than the
amount of the actual costs to the district of providing the service.
SECTION 2. Subchapter A, Chapter 12, Education Code, is
amended by adding Section 12.004 to read as follows:
Sec. 12.004. DEFINITION. In this chapter, "authority"
means the Charter School Authorizing Authority established under
Subchapter A-1.
SECTION 3. Chapter 12, Education Code, is amended by adding
Subchapter A-1 to read as follows:
SUBCHAPTER A-1. CHARTER SCHOOL AUTHORIZING AUTHORITY
Sec. 12.007. ESTABLISHMENT; POWERS AND DUTIES. (a) The
Charter School Authorizing Authority is established to oversee the
operations of charter schools in accordance with this chapter,
including:
(1) granting charters for:
(A) open-enrollment charter schools under
Subchapter D; and
(B) college or university or junior college
charter schools under Subchapter E;
(2) revoking charters and imposing other sanctions in
accordance with Subchapters B, D, and E; and
(3) monitoring charter holders of open-enrollment
charter schools under Subchapter D.
(b) The authority shall adopt rules as required by this
chapter and may adopt other rules as authorized by this chapter.
Sec. 12.0071. COMPOSITION. The authority is composed of
seven members appointed as follows:
(1) four members appointed by the governor, one of
whom must be appointed from a list of candidates submitted to the
governor by the speaker of the house of representatives;
(2) one member appointed by the lieutenant governor;
(3) one member appointed by the chair of the State
Board of Education; and
(4) one member appointed by the commissioner.
Sec. 12.0072. ELIGIBILITY FOR APPOINTMENT. To be eligible
to be appointed as a member of the authority, a person must have
demonstrated expertise in at least one of the following:
(1) public or nonprofit governance;
(2) management and finance;
(3) public charter school leadership;
(4) school assessment, curriculum, and instruction;
or
(5) public school law.
Sec. 12.0073. TERMS; VACANCY. (a) The members of the
authority serve staggered four-year terms, with the terms of either
three or four members expiring February 1 of each odd-numbered
year.
(b) A vacancy on the authority shall be filled in the same
manner as the original appointment for that position.
(c) Notwithstanding Subsection (a), the initial members
appointed shall determine by lot which three of the seven initial
members will serve terms that expire February 1, 2015, and which
four of the seven initial members will serve terms that expire
February 1, 2017. This subsection expires January 1, 2018.
Sec. 12.0074. PRESIDING OFFICER. The governor shall
designate a member of the authority as the presiding officer of the
authority to serve in that capacity at the pleasure of the governor.
Sec. 12.0075. MEETINGS. The authority shall meet at the
call of:
(1) the presiding officer; or
(2) at least four members.
Sec. 12.0076. REIMBURSEMENT. A member of the authority is
not entitled to compensation for service as a member of the
authority but is entitled to reimbursement for actual and necessary
expenses incurred in performing functions as an authority member,
as provided in the General Appropriations Act.
Sec. 12.0077. SEPARATION OF AUTHORITY AND AGENCY
RESPONSIBILITIES. The authority shall, in coordination with the
agency, develop and implement policies that clearly separate the
policymaking responsibilities of the authority and the management
responsibilities of the agency.
Sec. 12.0078. AGENCY SUPPORT SERVICES. To the extent
needed by the authority to carry out the authority's powers and
duties and as agreed to by the authority and the agency, the agency
shall provide the authority with services, including fiscal,
administrative, and personnel services and legal services not
provided by the attorney general.
Sec. 12.0079. INITIAL APPOINTMENTS. The initial
appointments to the authority shall be made as soon as practicable
after the effective date of this subchapter. This section expires
September 1, 2014.
SECTION 4. Section 12.013(b), Education Code, is amended 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) 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;
[(D) student admissions under Section 25.001;
[(E) school attendance under Sections 25.085,
25.086, and 25.087;
[(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
[(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(e);
[(H) high school graduation under Section
28.025;
[(I) special education programs under Subchapter
A, Chapter 29;
[(J) bilingual education under Subchapter B,
Chapter 29;
[(K) prekindergarten programs under Subchapter
E, Chapter 29;
[(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
[(M)] computation and distribution of state aid
under Chapters 31, 42, and 43;
(B) [(N) extracurricular activities under
Section 33.081;
[(O) health and safety under Chapter 38;
[(P) public school accountability under
Subchapters B, C, D, E, and J, Chapter 39;
[(Q)] equalized wealth under Chapter 41;
(C) [(R)] a bond or other obligation or tax rate
under Chapters 42, 43, and 45; and
(D) [(S)] purchasing under Chapter 44; and
(4) any prohibition, restriction, or requirement, as
applicable, imposed on an open-enrollment charter school under
Section 12.104(b).
SECTION 5. Section 12.014, Education Code, is amended to
read as follows:
Sec. 12.014. APPOINTMENT OF CHARTER COMMISSION. 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) a majority [at least two-thirds] of the total
membership of the board adopts [adopt] a resolution ordering that a
charter commission be appointed.
SECTION 6. Section 12.018, Education Code, is amended to
read as follows:
Sec. 12.018. LEGAL REVIEW. The charter commission shall
submit the proposed charter to the authority [commissioner]. As
soon as practicable, but not later than the 30th day after the date
the authority [commissioner] receives the proposed charter, the
authority [commissioner] shall review the proposed charter to
ensure that the proposed charter complies with any applicable laws
and shall recommend to the charter commission any modifications
necessary. If the authority [commissioner] does not act within the
prescribed time, the proposed charter is approved.
SECTION 7. Sections 12.020(a), (b), and (c), Education
Code, are amended to read as follows:
(a) The governing body of a home-rule school district on its
own motion may submit a proposed charter amendment that complies
with this subchapter to the authority [commissioner] for legal
review.
(b) The governing body shall submit a proposed charter
amendment that complies with this subchapter to the authority
[commissioner] for legal review if a petition submitted to the
governing body proposing the charter amendment is signed by at
least five percent of the registered voters of the district.
(c) As soon as practicable, but not later than the 30th day
after the date on which the authority receives the proposed
amendment [requirements for an election under Subsection (a) or (b)
are satisfied], the authority [commissioner] shall review the
proposed amendment to ensure that the proposed amendment complies
with any applicable laws and shall recommend any modifications
necessary. If the authority [commissioner] does not act within the
prescribed time, the proposed charter amendment is approved.
SECTION 8. Section 12.021, Education Code, is amended to
read as follows:
Sec. 12.021. ADOPTION OF CHARTER OR CHARTER AMENDMENT. (a)
A [Subject to Section 12.022, a] proposed home-rule school district
charter or a proposed charter amendment is adopted if approved by a
vote of a majority of the total membership of the governing body
[qualified voters] of the school district [voting at an election
held for that purpose].
(b) A charter or charter amendment shall specify an
effective date and takes effect according to its terms when the
governing body of the school district enters an order declaring
that the charter or charter amendment is adopted. The governing
body shall enter an order not later than the 10th day after the date
the governing body votes to approve the charter or charter
amendment [canvass of the election returns is completed].
(c) As soon as practicable after a school district adopts a
home-rule school district charter or charter amendment, the [board
of trustees or] governing body shall notify the authority
[commissioner] of the adoption [outcome of the election].
SECTION 9. 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 governing body [board of trustees] shall certify
to the secretary of state a copy of the charter or amendment showing
the approval by the governing body [voters of the district].
SECTION 10. Sections 12.027(a) and (b), Education Code, are
amended to read as follows:
(a) The authority [State Board of Education] may place on
probation or revoke a home-rule school district charter of a school
district if the authority [board] determines that the district:
(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 or other
applicable federal or state law or rule.
(b) The action the authority [board] takes under Subsection
(a) shall be based on the best interest of district students, the
severity of the violation, and any previous violation the district
has committed.
SECTION 11. Section 12.028(a), Education Code, is amended
to read as follows:
(a) The authority [State Board of Education] by rule shall
adopt a procedure to be used for placing on probation or revoking a
home-rule school district charter.
SECTION 12. Sections 12.030(b), (c), (f), and (g),
Education Code, are amended to read as follows:
(b) The governing body of the district shall vote [order an
election] on the question of rescinding a home-rule school district
charter if:
(1) the governing body receives a petition requesting
a rescission vote [election] signed by at least five percent of the
registered voters of the district; or
(2) a governing body motion is made, in accordance
with the governing body's procedural rules, for [at least
two-thirds of the total membership of] the governing body to vote on
the question [adopt a resolution ordering that a rescission
election be held].
(c) As soon as practicable after the date of receipt of a
petition as described by [or adoption of a resolution under]
Subsection (b)(1) or as soon as practicable after a motion is made
as described by Subsection (b)(2) [(b)], the governing body shall
vote on the question of rescinding a home-rule school district
charter [order an election].
(f) A home-rule school district charter is rescinded if the
rescission is approved by a [majority of the qualified voters of the
district voting at an election held for that purpose at which at
least 25 percent of the registered voters of the district] vote of a
majority of the total membership of the governing body.
(g) The rescission takes effect on a date established by
resolution of the governing body but not later than the 90th day
after the date the rescission is approved [of an election held under
this section at which rescission of the charter is approved and at
which the number of registered voters required] under Subsection
(f) [vote]. As soon as practicable after that approval [election],
the governing body shall notify the authority [commissioner] and
the secretary of state of the approval [results of the election] and
of the effective date of the rescission.
SECTION 13. Section 12.056(b), Education Code, is amended
to read as follows:
(b) A campus or program for which a charter is granted under
this subchapter is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) 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) criminal history records under Subchapter C,
Chapter 22;
(C) high school graduation under Section 28.025;
(D) special education programs under Subchapter
A, Chapter 29;
(E) bilingual education under Subchapter B,
Chapter 29;
(F) prekindergarten programs under Subchapter E,
Chapter 29;
(G) extracurricular activities under Section
33.081;
(H) health and safety under Chapter 38; and
(I) public school accountability under
Subchapters B, C, E, F, and J, Chapter 39.
SECTION 14. Section 12.059, Education Code, is amended to
read as follows:
Sec. 12.059. CONTENT. Each charter granted under this
subchapter must:
(1) describe the educational program to be offered,
which may be a general or specialized program;
(2) provide that continuation of the charter is
contingent on satisfactory student performance under Subchapter B,
Chapter 39, and on compliance with other applicable accountability
provisions under Chapter 39;
(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) prohibit discrimination in admission on the basis
of national origin, ethnicity, race, religion, or disability;
(5) describe the governing structure of the campus or
program;
(6) specify any procedure or requirement, in addition
to those under Chapter 38, that the campus or program will follow to
ensure the health and safety of students and employees; and
(7) describe the manner in which an annual audit of
financial and programmatic operations of the campus or program is
to be conducted, including the manner in which the campus or program
will provide information necessary for the school district in which
it is located to participate, as required by this code or by [State
Board of Education] rule of the authority, in the Public Education
Information Management System (PEIMS).
SECTION 15. Section 12.101, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsections (b-1),
(b-2), and (b-3) to read as follows:
(a) In accordance with this subchapter, the authority
[State Board of Education] may grant a charter on the application of
an eligible entity for an open-enrollment charter school to operate
in a facility of a commercial or nonprofit entity, an eligible
entity, or a school district, including a home-rule school
district. In this subsection, "eligible entity" means:
(1) an institution of higher education as defined
under Section 61.003;
(2) a private or independent institution of higher
education as defined under Section 61.003;
(3) an organization that is exempt from taxation under
Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section
501(c)(3)); or
(4) a governmental entity.
(b) After thoroughly investigating and evaluating an
applicant, the authority [The State Board of Education] may grant a
charter for an open-enrollment charter school only to an applicant
that meets any financial, governing, curriculum development and
implementation, and operational standards adopted by the authority
[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].
(b-1) The authority may not grant more than one charter for
an open-enrollment charter school to any charter holder. The
authority may consolidate charters for an open-enrollment charter
school held by multiple charter holders into a single charter held
by a single charter holder with the written consent to the terms of
consolidation by each charter holder affected by the consolidation.
(b-2) A charter holder may establish one or more new
open-enrollment charter school campuses under an existing charter
held by the charter holder if:
(1) each campus operating under the charter has been
assigned an acceptable performance rating as provided by Subchapter
C, Chapter 39, for the two preceding school years;
(2) the charter holder has been assigned a financial
performance accountability rating under Subchapter D, Chapter 39,
indicating financial performance that is satisfactory or better;
(3) the charter holder provides written notice to the
authority of the establishment of any campus under this subsection,
in the time, manner, and form provided by rule of the authority; and
(4) not later than the 60th day after the date the
charter holder provides written notice under Subdivision (3), the
authority does not provide written notice to the charter holder
disapproving a new campus under this section.
(b-3) The initial term of a charter granted under this
section is five years.
SECTION 16. 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 and 12.115 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 17. Section 12.104(b), Education Code, is amended
to read as follows:
(b) An open-enrollment charter school is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) 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) criminal history records under Subchapter C,
Chapter 22;
(C) reading instruments and accelerated reading
instruction programs under Section 28.006;
(D) accelerated instruction under Section
28.0211;
(E) high school graduation requirements under
Section 28.025;
(F) special education programs under Subchapter
A, Chapter 29;
(G) bilingual education under Subchapter B,
Chapter 29;
(H) prekindergarten programs under Subchapter E,
Chapter 29;
(I) extracurricular activities under Section
33.081;
(J) discipline management practices or behavior
management techniques under Section 37.0021;
(K) health and safety under Chapter 38;
(L) public school accountability under
Subchapters B, C, D, E, F, G, and J, Chapter 39;
(M) the requirement under Section 21.006 to
report an educator's misconduct; and
(N) intensive programs of instruction under
Section 28.0213.
SECTION 18. Sections 12.1052(d) and (e), Education Code,
are amended to read as follows:
(d) The records of an open-enrollment charter school that
ceases to operate shall be transferred in the manner specified by
the authority [commissioner] to a custodian designated by the
authority [commissioner]. The authority [commissioner] may
designate any appropriate entity to serve as custodian, including
the agency, a regional education service center, or a school
district. In designating a custodian, the authority [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 charter holder of an open-enrollment charter
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 authority [commissioner] under Subsection (d), the authority
[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.
SECTION 19. Section 12.1053(a), Education Code, is amended
to read as follows:
(a) This section applies to an open-enrollment charter
school unless the school's charter otherwise describes procedures
for purchasing and contracting and the procedures are approved by
the authority [State Board of Education].
SECTION 20. Section 12.1057(a), Education Code, is amended
to read as follows:
(a) An employee of an open-enrollment charter school
[operating under a charter granted by the State Board of Education]
who qualifies for membership in the Teacher Retirement System of
Texas shall be covered under the system to the same extent a
qualified employee of a school district is covered.
SECTION 21. Section 12.106, Education Code, is amended by
adding Subsections (b-1) and (d) to read as follows:
(b-1) A charter holder is entitled to an instructional
facilities allotment for a school year for a campus of an
open-enrollment charter school for which the charter holder has
been granted a charter. The amount of an allotment under this
subsection is, for each student in average daily attendance during
the preceding school year at the open-enrollment charter school
campus, the statewide average amount per student in state funds
paid to school districts under Section 46.003 during the preceding
school year, based only on students attending school in districts
that receive a school facilities allotment under that section, or a
greater amount provided by appropriation. A charter holder that
receives funds under this subsection may use the funds only for an
open-enrollment charter school campus for which the funds were paid
and only to:
(1) purchase real property on which to construct an
instructional facility for the campus;
(2) purchase, lease, construct, expand, or renovate
instructional facilities for the campus;
(3) pay debt service in connection with instructional
facilities purchased or improved for the campus; or
(4) maintain and operate instructional facilities for
the campus.
(d) The commissioner shall withhold one percent of the
funding a charter holder granted a charter on or after September 1,
2013, would otherwise be entitled to receive under Subsection (a).
Money withheld under this subsection may be used only in paying the
salary of any authority employee, agency employee, or independent
contractor assigned responsibility related to:
(1) granting charters for open-enrollment charter
schools; or
(2) overseeing or monitoring the operations and
performance of open-enrollment charter schools.
SECTION 22. Sections 12.110(a), (c), and (d), Education
Code, are amended to read as follows:
(a) The authority [State Board of Education] shall adopt:
(1) an application form and a procedure that must be
used to apply for a charter for an open-enrollment charter school;
and
(2) criteria to use in selecting a program for which to
grant a charter.
(c) As part of the application procedure, the authority
[board] may require a petition supporting a charter for a school
signed by a specified number of parents or guardians of school-age
children residing in the area in which a school is proposed or may
hold a public hearing to determine parental support for the school.
(d) The authority [board] may approve or deny an application
based on criteria the authority [it] adopts. The criteria the
authority [board] adopts must include:
(1) criteria relating to improving student
performance and encouraging innovative programs; and
(2) a statement from any school district whose
enrollment is likely to be affected by the open-enrollment charter
school, including information relating to any financial difficulty
that a loss in enrollment may have on the district.
SECTION 23. Section 12.1101, Education Code, is amended to
read as follows:
Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR
ESTABLISHMENT OF CAMPUS. The authority [commissioner] by rule
shall adopt a procedure for providing notice to the following
persons on receipt by the authority [State Board of Education] of an
application for a charter for an open-enrollment charter school
under Section 12.110 or 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 authority
[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 authority [commissioner].
SECTION 24. 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 commissioner [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 25. Section 12.112, Education Code, is amended to
read as follows:
Sec. 12.112. FORM. A charter for an open-enrollment
charter school shall be in the form of a written contract signed by
the chair of the authority [State Board of Education] and the chief
operating officer of the school.
SECTION 26. Section 12.113(a), Education Code, is amended
to read as follows:
(a) Each charter the authority [State Board of Education]
grants for an open-enrollment charter school must:
(1) satisfy this subchapter; and
(2) include the information that is required under
Section 12.111 consistent with the information provided in the
application and any modification the authority [board] requires.
SECTION 27. Section 12.114(a), Education Code, is amended
to read as follows:
(a) A revision of a charter of an open-enrollment charter
school may be made only with the approval of the authority
[commissioner].
SECTION 28. 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 authority, except that
the authority 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 charter holder has been assigned a financial
accountability performance rating under Subchapter D, Chapter 39,
indicating financial performance lower than satisfactory for three
of the five preceding school years.
(b) Before the authority may, at the end of the initial
term, deny the renewal of the charter of an open-enrollment charter
school that is registered under the agency's alternative education
accountability procedures for accountability evaluation purposes
under Chapter 39, the authority must consider, as an alternative to
the criterion specified under Subsection (a)(1), academic criteria
established under authority rule that are appropriate to measure
the specific goals of that school, such as providing dropout
recovery or providing education within a residential treatment
facility.
(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 authority shall provide written notice to the charter holder,
in accordance with authority rule, of the basis on which a charter
renewal may be denied under Subsection (a) or (b), as applicable.
(d) Before the authority may, at the end of the initial
term, deny the renewal of the charter of an open-enrollment charter
school, the authority 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 authority, except that the authority shall
deny renewal of the charter if:
(1) the accreditation of the open-enrollment charter
school has been revoked; or
(2) the accreditation of any campus operating under
the charter has been revoked and such a campus has not been closed.
(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 29. 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 authority shall [commissioner may] modify,
place on probation, or revoke [, or deny renewal of] the charter of
an open-enrollment charter school or reconstitute the governing
body of the charter holder or assign operation of a school campus to
a different charter holder if the authority [commissioner]
determines that the charter holder:
(1) committed a material violation of the charter,
including failure to satisfy accountability provisions prescribed
by the charter;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, or welfare
of the students enrolled at the school; or
(4) failed to comply with this subchapter or another
applicable law or rule.
(b) The action the authority [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 30. 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 31. Sections 12.116(a) and (c), Education Code, are
amended to read as follows:
(a) The authority [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 32. Section 12.1161(a), Education Code, is amended
to read as follows:
(a) If the authority [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 33. Section 12.1162, Education Code, is amended to
read as follows:
Sec. 12.1162. ADDITIONAL SANCTIONS. (a) The authority
[commissioner] shall take any of the actions described by
Subsection (b) or by Section 39.102(a), to the extent the authority
[commissioner] determines necessary, if an open-enrollment charter
school, as determined by a report issued under Section 39.058(b):
(1) commits a material violation of the school's
charter;
(2) fails to satisfy generally accepted accounting
standards of fiscal management; or
(3) fails to comply with this subchapter or another
applicable rule or law.
(b) The authority [commissioner] may direct the
commissioner to temporarily withhold funding or may [,] suspend the
authority of an open-enrollment charter school to operate[,] or
take any other reasonable action the authority [commissioner]
determines necessary to protect the health, safety, or welfare of
students enrolled at the school based on evidence that conditions
at the school present a danger to the health, safety, or welfare of
the students.
(c) After action is taken [the commissioner acts] under
Subsection (b), the open-enrollment charter school may not receive
funding and may not resume operating until a determination is made
that:
(1) despite initial evidence, the conditions at the
school do not present a danger of material harm to the health,
safety, or welfare of students; or
(2) the conditions at the school that presented a
danger of material harm to the health, safety, or welfare of
students have been corrected.
(d) Not later than the third business day after the date
action is taken [the commissioner acts] under Subsection (b), the
authority [commissioner] shall provide the charter holder an
opportunity for a hearing.
(e) Immediately after a hearing under Subsection (d), the
authority [commissioner] must cease or direct the commissioner to
cease the action under Subsection (b), as applicable, or initiate
action under Section 12.116.
(f) The authority [commissioner] shall adopt rules
implementing this section. Chapter 2001, Government Code, does not
apply to a hearing under this section.
SECTION 34. The heading to Section 12.1163, Education Code,
is amended to read as follows:
Sec. 12.1163. AUDIT BY AUTHORITY [COMMISSIONER].
SECTION 35. Sections 12.1163(a) and (c), Education Code,
are amended to read as follows:
(a) To the extent consistent with this section, the
authority [commissioner] may audit the records of:
(1) an open-enrollment charter school;
(2) a charter holder; and
(3) a management company.
(c) Unless the authority [commissioner] has specific cause
to conduct an additional audit, the authority [commissioner] may
not conduct more than one on-site audit under Section 12.1163
during any fiscal year, including any financial and administrative
records. For purposes of this subsection, an audit of a charter
holder or management company associated with an open-enrollment
charter school is not considered an audit of the school.
SECTION 36. Section 12.1164(a), Education Code, is amended
to read as follows:
(a) The authority [commissioner] must notify the Teacher
Retirement System of Texas in writing of the revocation, denial of
renewal, or surrender of a charter under this subchapter not later
than the 10th business day after the date of the event.
SECTION 37. Sections 12.118(a) and (c), Education Code, are
amended to read as follows:
(a) The authority [commissioner] shall designate an
impartial organization with experience in evaluating school choice
programs to conduct, under the supervision of the authority, an
annual evaluation of open-enrollment charter schools.
(c) The evaluation of open-enrollment charter schools must
also include an evaluation of:
(1) the costs of instruction, administration, and
transportation incurred by open-enrollment charter schools;
(2) the effect of open-enrollment charter schools on
school districts and on teachers, students, and parents in those
districts; and
(3) other issues, as determined by the authority
[commissioner].
SECTION 38. Section 12.119, Education Code, is amended to
read as follows:
Sec. 12.119. BYLAWS; ANNUAL REPORT. (a) A charter holder
shall file with the authority [State Board of Education] a copy of
its articles of incorporation and bylaws, or comparable documents
if the charter holder does not have articles of incorporation or
bylaws, within the period and in the manner prescribed by the
authority [board].
(b) Each year within the period and in a form prescribed by
the authority [State Board of Education], each open-enrollment
charter school shall file with the authority [board] the following
information:
(1) the name, address, and telephone number of each
officer and member of the governing body of the open-enrollment
charter school; and
(2) the amount of annual compensation the
open-enrollment charter school pays to each officer and member of
the governing body.
(c) On request, the authority [State Board of Education]
shall provide the information required by this section and Section
12.111(a)(6) [12.111(a)(8)] to a member of the public. The
authority [board] may charge a reasonable fee to cover the
authority's [board's] cost in providing the information.
SECTION 39. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1211 to read as follows:
Sec. 12.1211. NAMES OF MEMBERS OF GOVERNING BODY LISTED ON
WEBSITE. An open-enrollment charter school shall list the names of
the members of the governing body on the home page of the school's
Internet website.
SECTION 40. Section 12.122(a), Education Code, is amended
to read as follows:
(a) Notwithstanding the Texas Nonprofit Corporation Law
[Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
Vernon's Texas Civil Statutes)] or other law, on request of the
authority [commissioner], the attorney general may bring suit
against a member of the governing body of an open-enrollment
charter school for breach of a fiduciary duty by the member,
including misapplication of public funds.
SECTION 41. Section 12.123, Education Code, is amended to
read as follows:
Sec. 12.123. TRAINING FOR MEMBERS OF GOVERNING BODY OF
SCHOOL AND OFFICERS. (a) The authority [commissioner] shall adopt
rules prescribing training for:
(1) members of governing bodies of open-enrollment
charter schools; and
(2) officers of open-enrollment charter schools.
(b) The rules adopted under Subsection (a) may:
(1) specify the minimum amount and frequency of the
training;
(2) require the training to be provided by:
(A) the agency and regional education service
centers;
(B) entities other than the agency and service
centers, subject to approval by the authority [commissioner]; or
(C) both the agency, service centers, and other
entities; and
(3) require training to be provided concerning:
(A) basic school law, including school finance;
(B) health and safety issues;
(C) accountability requirements related to the
use of public funds; and
(D) other requirements relating to
accountability to the public, such as open meetings requirements
under Chapter 551, Government Code, and public information
requirements under Chapter 552, Government Code.
SECTION 42. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1231 to read as follows:
Sec. 12.1231. TRAINING FOR AGENCY EMPLOYEES. Not later
than May 1, 2014, each agency employee assigned responsibility
related to granting charters for open-enrollment charter schools or
providing oversight or monitoring of charter holders or
open-enrollment charter schools must participate in training on
charter school authorization, oversight, and monitoring provided
by a nationally recognized organization of charter school
authorizers identified by the authority. This section expires
January 1, 2015.
SECTION 43. Section 12.126, Education Code, is amended to
read as follows:
Sec. 12.126. CERTAIN MANAGEMENT SERVICES CONTRACTS
PROHIBITED. The authority [commissioner] may prohibit, deny
renewal of, suspend, or revoke a contract between an
open-enrollment charter school and a management company providing
management services to the school if the authority [commissioner]
determines that the management company has:
(1) failed to provide educational or related services
in compliance with the company's contractual or other legal
obligation to any open-enrollment charter school in this state or
to any other similar school in another state;
(2) failed to protect the health, safety, or welfare
of the students enrolled at an open-enrollment charter school
served by the company;
(3) violated this subchapter or a rule adopted under
this subchapter; or
(4) otherwise failed to comply with any contractual or
other legal obligation to provide services to the school.
SECTION 44. Section 12.127(b), Education Code, is amended
to read as follows:
(b) On request of the authority [commissioner], the
attorney general may bring suit on behalf of the state against a
management company liable under Subsection (a) for:
(1) damages, including any state funding received by
the company and any consequential damages suffered by the state;
(2) injunctive relief; or
(3) any other equitable remedy determined to be
appropriate by the court.
SECTION 45. Sections 12.128(c) and (d), Education Code, are
amended to read as follows:
(c) The authority [commissioner] shall:
(1) take possession and assume control of the property
described by Subsection (a) of an open-enrollment charter school
that ceases to operate; and
(2) supervise the disposition of the property in
accordance with law.
(d) The authority [commissioner] may adopt rules necessary
to administer this section.
SECTION 46. Section 12.135(a), Education Code, is amended
to read as follows:
(a) On the application of the charter holder, the authority
[commissioner] may grant designation as a charter district to an
open-enrollment charter school that meets financial standards
adopted by the authority [commissioner]. The financial standards
must require an open-enrollment charter school to have an
investment grade credit rating as specified by Section 45.0541.
SECTION 47. Sections 12.152, 12.153, and 12.154, Education
Code, are amended to read as follows:
Sec. 12.152. AUTHORIZATION. [(a)] In accordance with this
subchapter and Subchapter D, the authority [State Board of
Education] may grant a charter on the application of:
(1) a public senior college or university for an
open-enrollment charter school to operate on the campus of the
public senior college or university or in the same county in which
the campus of the public senior college or university is located; or
(2) a public junior college for an open-enrollment
charter school to operate on the campus of the public junior college
or in the same county in which the campus of the public junior
college is located.
Sec. 12.153. RULES. The authority [commissioner] may adopt
rules to implement this subchapter.
Sec. 12.154. CONTENT. (a) Notwithstanding Section
12.110(d), the authority [State Board of Education] may grant a
charter under this subchapter to a public senior college or
university only if the following criteria are satisfied in the
public senior college's or university's application, as determined
by the authority [State Board of Education]:
(1) the college or university charter school's
educational program must include innovative teaching methods;
(2) the college or university charter school's
educational program must be implemented under the direct
supervision of a member of the teaching or research faculty of the
public senior college or university;
(3) the faculty member supervising the college or
university charter school's educational program must have
substantial experience and expertise in education research,
teacher education, classroom instruction, or educational
administration;
(4) the college or university charter school's
educational program must be designed to meet specific goals
described in the charter, including improving student performance,
and each aspect of the program must be directed toward the
attainment of the goals;
(5) the attainment of the college or university
charter school's educational program goals must be measured using
specific, objective standards set forth in the charter, including
assessment methods and a time frame; and
(6) the financial operations of the college or
university charter school must be supervised by the business office
of the public senior college or university.
(b) Notwithstanding Section 12.110(d), the authority [State
Board of Education] may grant a charter under this subchapter to a
public junior college only if the following criteria are satisfied
in the public junior college's application, as determined by the
authority [State Board of Education]:
(1) the junior college charter school's educational
program must be implemented under the direct supervision of a
member of the faculty of the public junior college;
(2) the faculty member supervising the junior college
charter school's educational program must have substantial
experience and expertise in teacher education, classroom
instruction, or educational administration;
(3) the junior college charter school's educational
program must be designed to meet specific goals described in the
charter, such as dropout recovery, and each aspect of the program
must be directed toward the attainment of the goals;
(4) the attainment of the junior college charter
school's educational program goals must be measured using specific,
objective standards set forth in the charter, including assessment
methods and a time frame; and
(5) the financial operations of the junior college
charter school must be supervised by the business office of the
junior college.
SECTION 48. Section 221.0071(a), Human Resources Code, is
amended to read as follows:
(a) Notwithstanding any other law [and in addition to the
number of charters allowed under Subchapter D, Chapter 12,
Education Code], the Charter School Authorizing Authority [State
Board of Education] may grant a charter on the application of a
detention, correctional, or residential facility established only
for juvenile offenders under Section 51.12, 51.125, or 51.126,
Family Code.
SECTION 49. Section 221.056(d), Human Resources Code, is
amended to read as follows:
(d) Notwithstanding any other law [and in addition to the
number of charters allowed under Subchapter D, Chapter 12,
Education Code], the Charter School Authorizing Authority [State
Board of Education] shall grant a charter on the application of a
residential treatment facility established under this section for a
school chartered for the purposes of this section.
SECTION 50. Section 1579.154(a), Insurance Code, is amended
to read as follows:
(a) A charter school is eligible to participate in the
program if the school agrees:
(1) that all records of the school relating to
participation in the program are open to inspection by the trustee,
the administering firm, the commissioner of education, the Charter
School Authorizing Authority, or a designee of any of those
entities; and
(2) to have the school's accounts relating to
participation in the program annually audited by a certified public
accountant at the school's expense.
SECTION 51. The following provisions of the Education Code
are repealed:
(1) Section 12.019;
(2) Sections 12.020(d), (e), (f), (h), and (i);
(3) Section 12.022;
(4) Sections 12.030(d) and (e);
(5) Section 12.113(b);
(6) Section 12.1161(b); and
(7) Section 12.156(b).
SECTION 52. Section 11.1542, Education Code, as added by
this Act, applies only to a contract entered into between a school
district and a charter school on or after the effective date of this
Act. A contract entered into between a school district and a
charter school before the effective date of this Act is governed by
the law in effect on the date the contract is entered into, and that
law is continued in effect for that purpose.
SECTION 53. (a) The amendment of Chapter 12, Education
Code, by this Act to transfer authority for charter schools from the
State Board of Education and the commissioner of education to the
Charter School Authorizing Authority does not affect the status of
a charter, including any legal rights, duties, and obligations
based on a charter, granted under Chapter 12, Education Code,
before May 1, 2014.
(b) Section 12.101(b-1), Education Code, as added by this
Act, does not affect the status of any charter for an
open-enrollment charter school, including any legal rights,
duties, and obligations based on a charter, that is among multiple
charters granted to a single charter holder before September 1,
2013.
SECTION 54. (a) Effective May 1, 2014, except as provided by
Subsection (b) of this section:
(1) all functions and activities performed
immediately before that date by the State Board of Education that
specifically relate only to charter schools or by the commissioner
of education under Chapter 12, Education Code, are transferred to
the Charter School Authorizing Authority;
(2) a rule, form, policy, procedure, or decision of
the State Board of Education that specifically relates only to
charter schools or of the commissioner of education under Chapter
12, Education Code, continues in effect as a rule, form, policy,
procedure, or decision of the Charter School Authorizing Authority
and remains in effect until amended or replaced by the Charter
School Authorizing Authority;
(3) a reference in law or administrative rule to the
State Board of Education that specifically relates only to charter
schools means the Charter School Authorizing Authority;
(4) all money, contracts, leases, rights, property,
records, and bonds and other obligations of the State Board of
Education or of the commissioner of education under Chapter 12,
Education Code, that specifically relate only to charter schools
are transferred to the Charter School Authorizing Authority;
(5) a court case, administrative proceeding, contract
negotiation, or other proceeding involving the State Board of
Education that specifically relates only to charter schools or
involving the commissioner of education under Chapter 12, Education
Code, is transferred without change in status to the Charter School
Authorizing Authority, and the Charter School Authorizing
Authority assumes, without a change in status, the position of the
State Board of Education or commissioner of education, as
applicable, in a negotiation or proceeding relating to an activity
transferred by this Act to the Charter School Authorizing Authority
to which the State Board of Education or commissioner of education,
as applicable, is a party;
(6) an employee of the State Board of Education
assigned only or primarily to duties relating to charter schools
becomes an employee of the Texas Education Agency; and
(7) any unexpended and unobligated balance of money
appropriated by the legislature for the State Board of Education
for carrying out duties that specifically relate to charter schools
is transferred to the Charter School Authorizing Authority.
(b) Notwithstanding Subsection (a) of this section, the
commissioner of education remains responsible for administering
state funding for purposes of Chapter 12, Education Code, to the
same extent the commissioner of education had that responsibility
on April 30, 2014.
(c) In the period beginning on January 1, 2014, and ending
on April 30, 2014:
(1) the State Board of Education and the commissioner
of education shall continue to perform their respective functions
and activities relating to charter schools as provided under the
Education Code or other law as if the law had not been amended or
repealed, as applicable, and the former law is continued in effect
for that purpose; and
(2) a person who is authorized or required by law to
take an action relating to the State Board of Education, a member of
the State Board of Education, or the commissioner of education
relating to charter schools shall continue to take that action
under the law as if the law had not been amended or repealed, as
applicable, and the former law is continued in effect for that
purpose.
SECTION 55. Before May 1, 2014, the State Board of Education
may agree with the Charter School Authorizing Authority to transfer
any property of the State Board of Education to the Charter School
Authorizing Authority to implement the transfer required by Section
54 of this Act.
SECTION 56. This Act takes effect September 1, 2013.