By: Patrick S.B. No. 2
(In the Senate - Filed February 18, 2013; February 18, 2013,
read first time and referred to Committee on Education;
April 3, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0, 2 present not
voting; April 3, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 2 By: Patrick
A BILL TO BE ENTITLED
AN ACT
relating to certain charter schools.
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
DISTRICT FACILITY. (a) The board of trustees of an independent
school district that intends to sell, lease, or allow use for a
purpose other than a district purpose of an unused or underused
district facility must give each open-enrollment charter school
located wholly or partly within the boundaries of the district the
opportunity to make an offer to purchase, lease, or use the
facility, as applicable, in response to any terms established by
the board of trustees, before offering the facility for sale,
lease, or use generally or to any other specific entity.
(b) This section does not require the board of trustees of a
school district to accept an offer made by an open-enrollment
charter school.
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 commissioner.
SECTION 3. Subchapter C, Chapter 12, Education Code, is
amended by adding Section 12.0522 to read as follows:
Sec. 12.0522. DISTRICT CHARTER AUTHORIZATION. (a)
Notwithstanding Section 12.052, in accordance with this subchapter
and in the manner provided by this section, the board of trustees of
a school district or the governing body of a home-rule school
district may grant a district charter to a campus to the extent
allowed under this section.
(b) Except as provided by Subsection (c), a district charter
may only be granted under this section to campuses serving in total
no more than 15 percent of the prior year student enrollment in the
district. This percentage limit may not prevent a district from
granting a district charter to at least one feeder pattern,
including an elementary, middle, and high school.
(c) A district charter may be granted to any campus that has
received the lowest academic accountability rating under Chapter
39.
SECTION 4. Section 12.055, Education Code, is amended to
read as follows:
Sec. 12.055. APPLICABILITY OF LAWS AND RULES TO CAMPUS OR
PROGRAM GRANTED CHARTER. (a) A campus or program for which a
charter is granted under this subchapter is subject to federal and
state laws and rules governing public schools, except that the
campus or program is subject to this code and rules adopted under
this code only to the extent the applicability to a campus or
program for which a charter is granted under this subchapter of a
provision of this code or a rule adopted under this code is
specifically provided.
(b) A school district may contract with another district or
an open-enrollment charter school for services at a campus charter.
Employees of a district or open-enrollment charter school providing
contracted services to a campus charter are eligible for membership
in and benefits from the Teacher Retirement System of Texas if they
would be eligible for membership and benefits in the same position
at the employing district or open-enrollment charter school.
SECTION 5. 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 6. Section 12.057, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) An employee of a charter holder, as defined by Section
12.1012, who is employed on a campus or program granted a charter
under this subchapter and who 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 as a qualified
employee of the independent school district who is employed on a
regularly operating campus or in a regularly operating program.
SECTION 7. 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, satisfactory financial performance under Subchapter D,
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
commissioner [State Board of Education] rule, in the Public
Education Information Management System (PEIMS).
SECTION 8. Section 12.101, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsections (b-0),
(b-1), (b-2), (b-3), (b-4), (b-5), (b-6), (b-7), and (b-8) 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:
(1) the authority determines is:
(A) capable of carrying out the responsibilities
provided by the charter; and
(B) likely to operate a school of high quality;
(2) meets any financial, governing, educational, and
operational standards adopted by the commissioner under this
subchapter;
(3) has not within the past 10 years had a charter
under this chapter or a similar charter issued under the laws of
another state revoked, denied for renewal, returned, or surrendered
under a settlement agreement; and
(4) is not, under rules adopted by the commissioner
for this purpose, considered to be a corporate affiliate of or
substantially related to an entity that has within the past 10 years
had a charter under this chapter or a similar charter issued under
the laws of another state revoked, denied for renewal, returned, or
surrendered under a settlement agreement.
(b-0) The commissioner may reject a proposed charter award
under this section by a vote of at least two-thirds of the members
of the board present and voting. If the board fails to reject a
proposed charter award before the 90th day after the date on which
it receives the proposal, the proposed charter award takes effect.
The board may not deliberate or vote on any charter award not
proposed by the commissioner under this section.
(b-1) In granting charters to open-enrollment charter
schools, the authority [The State Board of Education] may not grant
a total of more than:
(1) 215 charters through the fiscal year ending August
31, 2014;
(2) 225 charters for the fiscal year beginning
September 1, 2014;
(3) 240 charters for the fiscal year beginning
September 1, 2015;
(4) 255 charters for the fiscal year beginning
September 1, 2016;
(5) 275 charters for the fiscal year beginning
September 1, 2017;
(6) 295 charters for the fiscal year beginning
September 1, 2018;
(7) 315 charters for the fiscal year beginning
September 1, 2019; or
(8) 330 charters for the fiscal year beginning
September 1, 2020 [for an open-enrollment charter school].
(b-2) Notwithstanding the limit provided for in Subsection
(b-1)(8), for the fiscal year beginning September 1, 2021, and in
each subsequent fiscal year, 10 charters for open-enrollment
charter schools shall be added to the previous year's limit.
(b-3) 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 or at the request of each charter holder affected
by the consolidation.
(b-4) A charter holder having an accreditation status of
accredited and at least 50 percent of its student population in
grades assessed by the state accountability system may establish
one or more new open-enrollment charter school campuses under an
existing charter held by the charter holder in accordance with the
expedited approval process provided by this subchapter if:
(1) the charter holder is currently evaluated under
the standard accountability procedures and received a district
rating in one of the two highest rating categories for three of the
last five years with at least 75 percent of the campuses rated under
the charter also receiving a rating in one of the two highest rating
categories and no campus with a rating in the lowest rating category
in the most recent state accountability ratings;
(2) the charter holder provides written notice to the
commissioner of the establishment of any campus under this
subsection in the time, manner, and form provided by rule of the
commissioner; and
(3) not later than the 60th day after the date the
charter holder provides written notice under Subdivision (2), the
commissioner does not provide written notice to the charter holder
disapproving a new campus under this section.
(b-5) A charter granted under this subsection is not
considered for purposes of the limit on the number of charters that
may be granted under this section. Notwithstanding Subsection (b),
the commissioner may grant a charter for an open-enrollment charter
school to an applicant for the charter that is:
(1) an eligible entity under Subsection (a)(3) that
proposes to operate the charter school program of a charter
operator that operates one or more charter schools in another state
and with which the eligible entity is affiliated and, as determined
by the commissioner in accordance with commissioner rule, has
performed at a level of performance comparable to one of the two
highest accountability ratings in Texas; or
(2) an entity that has operated one or more charter
schools established under this subchapter or Subchapter C or E and,
as determined by the commissioner in accordance with commissioner
rule, has performed at one of the two highest accountability
ratings.
(b-6) The initial term of a charter granted under this
section is five years. The term of a charter renewed under Section
12.1141 is 10 years, subject to earlier revocation under this
chapter.
(b-7) A charter holder granted an open-enrollment charter
under Subsection (b-5) may vest management of corporate affairs in
a member entity provided that the member entity may change the
members of the governing body of the charter holder prior to the
expiration of a member's term only with the express written
approval of the commissioner.
(b-8) A charter granted under this subsection is not
considered for purposes of the limit on the number of charters that
may be granted under this section. Notwithstanding Subsection (b),
the commissioner may grant a charter for an open-enrollment charter
school to an applicant for the charter that is:
(1) an eligible entity under Subsection (a)(3) that
proposes to operate the charter school that has a successful
history of providing individualized education services to
students, including students with disabilities, and that proposes
to operate a charter school that enrolls a student population in
which at least 25 percent of students are students with
disabilities; or
(2) an eligible entity under Subsection (a)(3) that
has a successful history of accelerating the academic achievement
and college and career readiness of students who have previously
been reported to the state as dropouts or are students at risk of
dropping out of school as defined in Section 29.081 and that
proposes to operate a charter school that enrolls a student
population in which at least 80 percent of students, as determined
by the commissioner in accordance with commissioner rule:
(A) have not been advanced from one grade level
to the next for more than one school year;
(B) are 18 to 26 years of age with no high school
diploma;
(C) did not perform satisfactorily on an
assessment instrument administered to the student under Subchapter
B, Chapter 39, and have not in the previous or current school year
subsequently performed satisfactorily on that instrument or
another appropriate instrument;
(D) have previously been reported through the
Public Education Information Management System (PEIMS) to have
dropped out of school; or
(E) whose initial enrollment in a school in the
United States in grades 7 through 12 was as an unschooled asylee or
refugee as defined by Section 39.027(a-1).
SECTION 9. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1011 to read as follows:
Sec. 12.1011. CHARTER AUTHORIZER ACCOUNTABILITY. (a) The
commissioner shall annually report the performance of
open-enrollment charter schools by authorizer under Subchapters J
and K, Chapter 39, compared to campus charters and matched
traditional campuses based on student achievement indicators
adopted under Section 39.053.
(b) The format of the report must enable the public to
distinguish and compare the performance of each type of public
school by classifying the schools as follows:
(1) open-enrollment charters granted by the State
Board of Education;
(2) open-enrollment charters granted by the
commissioner;
(3) charters granted by school districts; and
(4) matched traditional campuses.
(c) The report must publish the performance of each public
school in each class described by Subsection (b) as measured by the
student achievement indicators adopted under Section 39.053.
(d) The report must also:
(1) aggregate and compare the performance of
open-enrollment charter schools granted by the board,
open-enrollment charter schools granted by the commissioner,
charters granted by school districts, and matched traditional
campuses; and
(2) rate the aggregate performance of elementary,
middle, and high schools within each class described by Subsection
(b) as indicated by the composite rating that would be assigned to
the class of elementary, middle, and high schools if the students
attending all schools in that class were cumulatively enrolled in
one elementary, middle, or high school.
SECTION 10. 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 11. 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 12. Section 12.1051, Education Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) With respect to the operation of an open-enrollment
charter school, except as provided by Subsection (c), any
requirement in Chapter 551 or 552, Government Code, or another law
that concerns open meetings or the availability of information,
that applies to a school district, the board of trustees of a school
district, or public school students applies to an open-enrollment
charter school, the governing body of a charter holder, the
governing body of an open-enrollment charter school, or students
attending an open-enrollment charter school.
(c) Notwithstanding any provision under Subchapter F,
Chapter 551, Government Code, the commissioner shall provide by
rule for meetings by telephone conference call or video conference
call where a majority of the quorum of the charter holder or charter
school governing body is not physically present at one location of
the meeting. The rules may apply only to meetings of the governing
body of a charter holder or charter school with its central
administrative offices in another state.
SECTION 13. 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 14. 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 15. 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 16. 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 commissioner shall [The board may] approve or deny
an application based on:
(1) documented evidence collected through the
application review process;
(2) merit; and
(3) other criteria as adopted by the authority, which
[it adopts. The criteria the board adopts] must include:
(A) criteria relating to the capability of the
applicant to carry out the responsibilities provided by the charter
and the likelihood that the applicant will operate a school of high
quality;
(B) [(1)] criteria relating to improving student
performance and encouraging innovative programs; and
(C) [(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 17. 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-4):
(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 18. 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) specify the academic, operational, and financial
performance expectations by which a school operating under the
charter will be evaluated, which must include applicable elements
of the performance frameworks adopted under Section 12.1181
[(4) establish the level of student performance that is considered
acceptable for purposes of Subdivision (3)];
(4) [(5)] specify:
(A) 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; and
(B) the standards for evaluation of a school
operating under the charter for purposes of charter renewal, denial
of renewal, revocation, or other intervention in accordance with
Section 12.1141 or 12.115 or Subchapter E, Chapter 39, as
applicable;
(5) [(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;
(6) [(7)] specify the grade levels to be offered;
(7) [(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;
(8) [(9)] specify the powers or duties of the
governing body of the school that the governing body may delegate to
an officer;
(9) [(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;
(10) [(11)] describe the process by which the person
providing the program will adopt an annual budget;
(11) [(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);
(12) [(13)] describe the facilities to be used;
(13) [(14)] describe the geographical area served by
the program; [and]
(14) [(15)] specify any type of enrollment criteria to
be used;
(15) provide information, as determined by the
authority, relating to any management company that will provide
management services to a school operating under the charter; and
(16) specify that the governing body of an
open-enrollment charter school accepts and may not delegate
ultimate responsibility for the school, including the school's
academic performance and financial and operational viability, and
is responsible for overseeing any management company providing
management services for the school and for holding the management
company accountable for the school's performance.
SECTION 19. 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 20. 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 21. 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 22. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1141 to read as follows:
Sec. 12.1141. RENEWAL OF CHARTER; DENIAL OF RENEWAL. (a)
The commissioner shall develop and by rule adopt a procedure for
renewal, denial of renewal, or expiration of a charter for an
open-enrollment charter school at the end of the current term of the
charter. The procedure must include consideration of the
performance under Chapter 39 of the charter holder and each campus
operating under the charter and must include three distinct
processes for renewal or denial of renewal, which must be expedited
renewal, discretionary renewal, and charter expiration. To renew a
charter at the end of the current term, the charter holder must
submit a petition for renewal to the commissioner in the time and
manner established by commissioner rule. The commissioner shall
set a deadline by which an application for renewal must be filed.
(b) At the end of the current term of a charter for an
open-enrollment charter school, if a charter holder submits to the
commissioner a petition for expedited renewal of the charter, the
charter automatically renews unless, not later than the 30th day
after the date the charter holder submits the petition, the
commissioner provides written notice to the charter holder that
expedited renewal of the charter is denied. The commissioner may
not deny expedited renewal of a charter if:
(1) the charter holder has been assigned the highest or
second highest performance rating under Subchapter C, Chapter 39,
for the three 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 for
the three preceding school years; and
(3) no campus operating under the charter has been
assigned the lowest performance rating under Subchapter C, Chapter
39, for the three preceding school years or such a campus has been
closed.
(b-1) Notwithstanding Subsection (b)(1), if only acceptable
and unacceptable performance ratings may be assigned under
Subchapter C, Chapter 39, a charter holder must be assigned the
highest performance rating under Subchapter C, Chapter 39, for the
three preceding school years for purposes of Subsection (b)(1).
(c)(1) At the end of the current term of a charter for an
open-enrollment charter school, if a charter holder submits to the
commissioner a petition for renewal of the charter and the charter
does not meet the criteria for expedited renewal under Subsection
(b) or for denial of renewal under Subsection (d), the commissioner
shall use the discretionary renewal process.
(2) The commissioner's decision under the
discretionary renewal process to renew or deny renewal of the
charter must take into consideration the results of annual
evaluations under the performance frameworks established under
Section 12.1181.
(3) The renewal of an open-enrollment charter school
that is registered under the agency's alternative education
accountability procedures for evaluation under Chapter 39 shall be
considered under the discretionary renewal process regardless of
the performance ratings under Subchapter C, Chapter 39, of the
open-enrollment charter school or of any campus operating under the
charter.
(4) Notwithstanding Subdivision (3), if the charter
holder has been assigned a financial accountability performance
rating under Subchapter D, Chapter 39, indicating financial
performance that is lower than satisfactory for any three of the
five preceding school years, the renewal of the charter shall be
denied under Subsection (d).
(5) Notwithstanding other law, in considering the
renewal of the charter of an open-enrollment charter school that is
registered under the agency's alternative education accountability
procedures for evaluation under Chapter 39, the commissioner shall
use academic criteria established by commissioner rule that are
appropriate to measure the specific goals of the school, such as
providing dropout recovery or providing education within a
residential treatment facility. The criteria established by the
commissioner shall recognize growth in student achievement as well
as attainment.
(d) At the end of the current term of a charter for an
open-enrollment charter school, if a charter holder submits to the
commissioner a petition for renewal of the charter, the
commissioner may not renew the charter but shall find the
open-enrollment charter to have expired by its own terms if:
(1) the charter holder has been assigned the lowest
performance rating under Subchapter C, Chapter 39, for any three of
the five preceding school years;
(2) the charter holder has been assigned a financial
accountability performance rating under Subchapter D, Chapter 39,
indicating financial performance that is lower than satisfactory
for any three of the five preceding school years;
(3) the charter holder has been assigned any
combination of the ratings described by Subdivision (1) or (2) for
any three of the five preceding school years; or
(4) any campus operating under the charter has been
assigned the lowest performance rating under Subchapter C, Chapter
39, for the three preceding school years and such a campus has not
been closed.
(d-1) Notwithstanding any other law, a finding by the
commissioner that an open-enrollment charter has expired by its own
terms under Subsection (d) is final and may not be appealed.
(e) Except as provided by Subsection (b), not later than the
90th day after the date on which a charter holder submits a petition
for renewal of a charter for an open-enrollment charter school at
the end of the current term of the charter, the commissioner shall
provide written notice to the charter holder, in accordance with
commissioner rule, of the basis on which the charter qualified for
expedited renewal, discretionary renewal, or charter expiration,
and of the commissioner's final decision. Chapter 2001, Government
Code, does not apply to a proceeding under this subsection. Except
as otherwise provided by Subsection (d-1), a decision by the
commissioner to deny renewal of a charter for an open-enrollment
charter school is subject to review by the State Office of
Administrative Hearings. The State Office of Administrative
Hearings shall uphold a decision by the commissioner to deny
renewal of a charter for an open-enrollment charter school unless
the office finds the decision is arbitrary and capricious or
clearly erroneous. A decision of the State Office of
Administrative Hearings under this subsection is final and may not
be appealed.
(f) If a charter holder submits a petition for renewal of a
charter for an open-enrollment charter school, notwithstanding the
expiration date of the charter, the charter term is extended until
the authority has provided notice to the charter holder of the
renewal or denial of renewal of the charter.
(g) The term of a charter renewed under this section is 10
years for each renewal.
(h) The authority shall adopt rules to modify criteria for
renewal or denial of renewal of a charter for an open-enrollment
charter school under this section to the extent necessary to
address changes in performance rating categories or in the
financial accountability system under Chapter 39.
(i) If a charter holder of a charter granted by the State
Board of Education submits to the authority a petition for renewal
of the charter in the time and manner established by authority rule,
the authority shall consider renewal of the charter in accordance
with Subsection (b). This subsection expires September 1, 2025.
SECTION 23. Section 12.115, Education Code, is amended to
read as follows:
Sec. 12.115. BASIS FOR CHARTER [MODIFICATION, PLACEMENT ON
PROBATION,] REVOCATION[,] OR MODIFICATION OF GOVERNANCE [DENIAL OF
RENEWAL]. (a) Except as provided by Subsection (c), the authority
shall [The commissioner may modify, place on probation,] 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;
(5) failed to satisfy the performance framework
standards adopted under Section 12.1181; or
(6) is imminently insolvent as determined by the
authority in accordance with authority 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.
(c) Except as provided by Subsection (d), the authority
shall revoke the charter of an open-enrollment charter school if:
(1) the charter holder has been assigned an
unacceptable performance rating under Subchapter C, Chapter 39, for
the three preceding school years;
(2) the charter holder has been assigned a financial
accountability performance rating under Subchapter D, Chapter 39,
indicating financial performance lower than satisfactory for the
three preceding school years; or
(3) the charter holder has been assigned any
combination of the ratings described by Subdivision (1) or (2) for
the three preceding school years.
(d) Subsections (c)(1) and (3) do not apply to a charter
holder registered under the agency's alternative education
accountability procedures for evaluation under Chapter 39.
(e) This section does not limit the authority of the
attorney general to take any action authorized by law.
(f) A charter holder rated as academically unacceptable
under Subchapter D, Chapter 39, as that subchapter existed on
January 1, 2009, for the 2010-2011 school year is considered to have
been assigned an unacceptable performance rating for that school
year under Subsection (c)(1). This subsection expires September 1,
2015.
(g) On revoking a charter under this section, the
commissioner may, in the commissioner's sole discretion, assign
operation of one or more campuses formerly operated by the revoked
charter holder to a different charter holder with that different
charter holder's consent.
SECTION 24. Section 12.116, Education Code, is amended to
read as follows:
Sec. 12.116. PROCEDURE FOR [MODIFICATION, PLACEMENT ON
PROBATION,] REVOCATION[, OR DENIAL OF RENEWAL]. (a) The
commissioner shall adopt an informal [a] procedure to be used for
[modifying, placing on probation,] revoking[, or denying renewal
of] the charter of an open-enrollment charter school.
(b) [The procedure adopted under Subsection (a) must
provide an opportunity for a hearing to the charter holder and to
parents and guardians of students in the school. A hearing under
this subsection must be held at the facility at which the program is
operated.
[(c)] Chapter 2001, Government Code, does not apply to a
proceeding [hearing] that is related to a [modification, placement
on probation,] revocation[, or denial of renewal] under this
subchapter.
(c) If the commissioner revokes an open-enrollment charter,
the commissioner may manage the school directly until alternative
arrangements can be made for students at the school under Section
12.115.
(d) A decision by the commissioner to revoke a charter is
subject to review by the State Office of Administrative Hearings.
The State Office of Administrative Hearings shall uphold a decision
by the commissioner to revoke a charter unless the office finds the
decision is arbitrary and capricious or clearly erroneous. A
decision of the State Office of Administrative Hearings under this
subsection is final and may not be appealed.
SECTION 25. 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 26. 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 27. The heading to Section 12.1163, Education Code,
is amended to read as follows:
Sec. 12.1163. AUDIT BY AUTHORITY [COMMISSIONER].
SECTION 28. 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 29. 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 30. 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 31. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1181 to read as follows:
Sec. 12.1181. PERFORMANCE FRAMEWORKS; ANNUAL EVALUATIONS.
(a) The authority shall develop and by rule adopt performance
frameworks that establish standards by which to measure the
performance of an open-enrollment charter school. The authority
shall develop and by rule adopt separate, specific performance
frameworks by which to measure the performance of an
open-enrollment charter school that is registered under the
agency's alternative education accountability procedures for
evaluation under Chapter 39. The performance frameworks shall be
based on national best practices that charter school authorizers
use in developing and applying standards for charter school
performance. In developing the performance frameworks, the
authority shall solicit advice from charter holders, the members of
the governing bodies of open-enrollment charter schools, and other
interested persons.
(b) The performance frameworks may include a variety of
standards. In evaluating an open-enrollment charter school, the
authority shall measure school performance against an established
set of quality standards developed and adopted by the authority.
(c) Each year, the authority shall evaluate the performance
of each open-enrollment charter school based on the applicable
performance frameworks adopted under Subsection (a).
SECTION 32. 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)(7) [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 33. 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 34. Section 12.122(a), Education Code, is amended
to read as follows:
(a) Notwithstanding the applicable provisions of the
Business Organizations Code [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 35. 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 36. 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 37. 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 38. Sections 12.128(a), (c), and (d), Education
Code, are amended to read as follows:
(a) Property purchased or leased with funds received by a
charter holder under Section 12.106 after September 1, 2001:
(1) is considered to be public property for all
purposes under state law;
(2) is property of this state held in trust by the
charter holder for the benefit of the students of the
open-enrollment charter school; and
(3) may be used only for a purpose for which a school
district may use school district property.
(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 39. 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 40. 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 41. Section 12.156(b), Education Code, is amended
to read as follows:
(b) A charter granted under this subchapter is not
considered for purposes of the limit on the number of
open-enrollment charter schools imposed by Section 12.101(b-1)
[12.101(b)].
SECTION 42. Section 39.152, Education Code, is amended to
read as follows:
Sec. 39.152. REVIEW BY STATE OFFICE OF ADMINISTRATIVE
HEARINGS: SANCTIONS. (a) A school district or open-enrollment
charter school that intends to challenge a decision by the
commissioner under this chapter to close the district or a district
campus or the charter school or to pursue alternative management of
a district campus or the charter school must appeal the decision
under this section [the procedures provided for a contested case
under Chapter 2001, Government Code].
(b) A challenge to a decision under this section is under
the substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code. The commissioner shall adopt procedural
rules for a challenge under this section.
(c) Notwithstanding other law:
(1) the State Office of Administrative Hearings shall
conduct [provide] an expedited review of a challenge under this
section;
(2) the administrative law judge shall issue a final
order not later than the 30th day after the date on which the
hearing is finally closed; [and]
(3) the decision of the administrative law judge is
final and may not be appealed; and
(4) notwithstanding Section 13.005, the decision of
the administrative law judge may set an effective date for an action
under this section.
SECTION 43. 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 44. 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 45. 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 46. 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); and
(6) Section 12.1161(b).
SECTION 47. 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 terms of a
charter, including any legal rights, duties, and obligations based
on a charter, granted under Chapter 12, Education Code, before May
1, 2014.
SECTION 48. (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 or
Texas Education Agency assigned only or primarily to duties
relating to charter schools becomes an employee of the Charter
School Authorizing Authority; 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, and is responsible for administering the Public
Education Information Management System under Chapter 12,
Education Code, and as otherwise provided by the Education Code.
(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 49. 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 50. This Act takes effect September 1, 2013.
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