By: Patrick, Campbell S.B. No. 2
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 or
lease 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 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 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 authorized under this section.
(b) Except as otherwise provided by this subsection or
Subsection (c), a district charter may be granted under this
section only to one or more campuses serving in total a percentage
of the district's student enrollment equal to not more than 15
percent of the district's student enrollment for the preceding
school year. The percentage limit may not prevent a district from
granting a district charter to at least one feeder pattern of
schools, including an elementary, middle or junior high, and high
school.
(c) A district charter may be granted to any campus that has
received the lowest performance rating under Subchapter C, Chapter
39.
(d) Subchapter D applies to a campus granted a district
charter under this section as though the campus were granted a
charter under Subchapter D, and the campus is considered an
open-enrollment charter school.
(e) A charter granted under this section is not considered
for purposes of the limit on the number of charters for
open-enrollment charter schools imposed by Section 12.101.
(f) The commissioner may adopt rules as necessary for the
administration of this section.
SECTION 3. 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.
An employee of the district or open-enrollment charter school
providing contracted services to a campus charter is eligible for
membership in and benefits from the Teacher Retirement System of
Texas if the employee would be eligible for membership and benefits
if holding the same position at the employing district or
open-enrollment charter school.
SECTION 4. Subsection (b), Section 12.056, 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, D, E, F, and J, Chapter 39.
SECTION 5. 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 in a 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 an independent school district who is employed on a
regularly operating campus or in a regularly operating program.
SECTION 6. 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 7. 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), and (b-7) to read as
follows:
(a) In accordance with this subchapter, the commissioner
[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 commissioner [The State Board of Education] may
grant a charter for an open-enrollment charter school only to an
applicant that meets any financial, governing, educational, and
operational standards adopted by the commissioner under this
subchapter, that the commissioner determines is capable of carrying
out the responsibilities provided by the charter and likely to
operate a school of high quality, and that:
(1) has not within the preceding 10 years had a charter
under this chapter or a similar charter issued under the laws of
another state surrendered under a settlement agreement, revoked,
denied renewal, or returned; or
(2) is not, under rules adopted by the commissioner,
considered to be a corporate affiliate of or substantially related
to an entity that has within the preceding 10 years had a charter
under this chapter or a similar charter issued under the laws of
another state surrendered under a settlement agreement, revoked,
denied renewal, or returned.
(b-0) The commissioner shall notify the State Board of
Education of each charter the commissioner proposes to grant under
this subchapter. Unless, before the 90th day after the date on
which the board receives the notice from the commissioner, a
majority of the members of the board present and voting vote against
the grant of that charter, the commissioner's proposal to grant the
charter takes effect. The board may not deliberate or vote on any
grant of a charter that is not proposed by the commissioner.
(b-1) In granting charters for open-enrollment charter
schools, the commissioner [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 beginning September 1, 2014;
(3) 240 charters beginning September 1, 2015;
(4) 255 charters beginning September 1, 2016;
(5) 270 charters beginning September 1, 2017; and
(6) 285 charters beginning September 1, 2018 [for an
open-enrollment charter school].
(b-2) Beginning September 1, 2019, the total number of
charters for open-enrollment charter schools that may be granted is
305 charters.
(b-3) The commissioner may not grant more than one charter
for an open-enrollment charter school to any charter holder. The
commissioner 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 under Subchapter B, Chapter 39, may establish one
or more new open-enrollment charter school campuses under an
existing charter held by the charter holder if:
(1) the charter holder is currently evaluated under
the standard accountability procedures for evaluation under
Chapter 39 and received a district rating in the highest or second
highest performance rating category under Subchapter C, Chapter 39,
for three of the last five years with at least 75 percent of the
campuses rated under the charter also receiving a rating in the
highest or second highest performance rating category and with no
campus with a rating in the lowest performance rating category in
the most recent 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) The initial term of a charter granted under this
section is five years.
(b-6) The commissioner shall adopt rules to modify criteria
for granting 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.
(b-7) A charter granted under this section for a dropout
recovery school is not considered for purposes of the limit on the
number of charters for open-enrollment charter schools imposed by
this section. For purposes of this subsection, an open-enrollment
charter school is considered to be a dropout recovery school if the
school meets the criteria for designation as a dropout recovery
school under Section 12.1141(c).
SECTION 8. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1011 to read as follows:
Sec. 12.1011. CHARTER AUTHORIZATION FOR HIGH-PERFORMING
ENTITIES. (a) Notwithstanding Section 12.101(b), the
commissioner may grant a charter for an open-enrollment charter
school to an applicant that is:
(1) an eligible entity under Section 12.101(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 performance under
the highest or second highest performance rating category under
Subchapter C, Chapter 39; 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 in the highest or second highest performance
rating category under Subchapter C, Chapter 39.
(b) A charter holder granted a charter for an
open-enrollment charter school under Subsection (a) 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 before the expiration of a member's term only
with the express written approval of the commissioner.
(c) The initial term of a charter granted under this section
is five years.
(d) The commissioner shall adopt rules to modify criteria
for granting a charter for an open-enrollment charter school under
this section to the extent necessary to address changes in
performance rating categories under Subchapter C, Chapter 39.
SECTION 9. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1013 to read as follows:
Sec. 12.1013. CHARTER AUTHORIZER ACCOUNTABILITY. (a) The
commissioner shall annually report under Subchapters J and K,
Chapter 39, the performance of open-enrollment charter schools by
authorizer 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 include 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 charters by the State Board
of Education, open-enrollment charter schools granted charters by
the commissioner, campuses and programs granted charters by school
districts, and matched traditional campuses; and
(2) rate the aggregate performance of elementary,
middle or junior high, 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 or junior high, and high
schools if the students attending all schools in that class were
cumulatively enrolled in one elementary, middle or junior high, 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. Subsection (b), Section 12.104, 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 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 governing body of a charter holder or charter
school is not physically present at one location of the meeting.
The rule may apply only to meetings of the governing body of a
charter holder or charter school with its central administrative
offices in a state other than this state.
SECTION 13. Subsection (a), Section 12.1053, 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 commissioner [State Board of Education].
SECTION 14. Subsection (a), Section 12.1057, 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 15. Section 12.110, Education Code, is amended by
amending Subsections (a), (c), and (d), and adding Subsection (e)
to read as follows:
(a) The commissioner [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 commissioner
[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 [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 commissioner,
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.
(e) The commissioner shall give priority and approval to
applications that include a plan to:
(1) increase the educational and performance levels of
students in campuses that received unacceptable performance
ratings under Section 39.054; and
(2) educate populations of students to be enrolled at
the campus.
SECTION 16. Section 12.1101, Education Code, is amended to
read as follows:
Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR
ESTABLISHMENT OF CAMPUS. The commissioner by rule shall adopt a
procedure for providing notice to the following persons on receipt
by the commissioner [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 commissioner; and
(2) each member of the legislature that represents the
geographic area to be served by the proposed school or campus, as
determined by the commissioner.
SECTION 17. Subsection (a), Section 12.111, 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, or the charter may be allowed to expire;
and
(B) the standards for evaluation of a school
operating under the charter for purposes of charter renewal, denial
of renewal, expiration, 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;
(14) [and]
[(15)] specify any type of enrollment criteria to be
used;
(15) provide information, as determined by the
commissioner, 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 18. 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 commissioner [chair of the State Board of Education] and the
chief operating officer of the school.
SECTION 19. Subsection (a), Section 12.113, Education Code,
is amended to read as follows:
(a) Each charter the commissioner [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 commissioner [board]
requires.
SECTION 20. 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;
EXPIRATION. (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 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, which must be expedited renewal, discretionary
consideration of renewal or denial of renewal, and expiration. To
renew a charter at the end of the term, the charter holder must
submit a petition for renewal to the commissioner in the time and
manner established by commissioner rule.
(b) At the end of the 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.
(c) At the end of the 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 expiration under Subsection (d), the commissioner shall
use the discretionary consideration process. The commissioner's
decision under the discretionary consideration process must take
into consideration the results of annual evaluations under the
performance frameworks established under Section 12.1181. 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 shall be considered
under the discretionary consideration 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, except that 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
commissioner shall allow the charter to expire under Subsection
(d). 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, such as a dropout recovery school or a
school providing education within a residential treatment
facility, the commissioner shall use academic criteria established
by commissioner rule that are appropriate to measure the specific
goals of the school. The criteria established by the commissioner
shall recognize growth in student achievement as well as
educational attainment. For purposes of this subsection, the
commissioner shall designate as a dropout recovery school an
open-enrollment charter school or a campus of an open-enrollment
charter school:
(1) that serves students in grades 9 through 12 and has
an enrollment of which at least 50 percent of the students are 17
years of age or older as of September 1 of the school year as
reported for the fall semester Public Education Information
Management System (PEIMS) submission; and
(2) that meets the eligibility requirements for and is
registered under alternative education accountability procedures
adopted by the commissioner.
(d) At the end of the 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 and shall allow the charter
to expire 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.
(e) Notwithstanding any other law, a determination by the
commissioner under Subsection (d) is final and may not be appealed.
(f) 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 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
consideration, or expiration, and of the commissioner's decision
regarding whether to renew the charter, deny renewal of the
charter, or allow the charter to expire.
(g) Except as provided by Subsection (e), 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. Notwithstanding Chapter 2001, Government
Code:
(1) the administrative law judge shall uphold a
decision by the commissioner to deny renewal of a charter for an
open-enrollment charter school unless the judge finds the decision
is arbitrary and capricious or clearly erroneous; and
(2) a decision of the administrative law judge under
this subsection is final and may not be appealed.
(h) 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 commissioner has provided notice to the charter holder of the
renewal, denial of renewal, or expiration of the charter.
(i) The term of a charter renewed under this section is 10
years for each renewal.
(j) The commissioner shall adopt rules to modify criteria
for renewal, denial of renewal, or expiration 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.
SECTION 21. 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 [The]
commissioner shall [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 if the
commissioner determines that the charter holder:
(1) committed a material violation of the charter,
including failure to satisfy accountability provisions prescribed
by the charter;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, or welfare
of the students enrolled at the school; [or]
(4) failed to comply with this subchapter or another
applicable law or rule;
(5) failed to satisfy the performance framework
standards adopted under Section 12.1181; or
(6) is imminently insolvent as determined by the
commissioner in accordance with commissioner rule.
(b) The action the commissioner takes under Subsection (a)
shall be based on the best interest of the open-enrollment charter
school's students, the severity of the violation, [and] any
previous violation the school has committed, and the accreditation
status of the school.
(c) Except as provided by Subsection (d), the commissioner
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.
SECTION 22. Section 12.116, Education Code, is amended to
read as follows:
Sec. 12.116. PROCEDURE FOR [MODIFICATION, PLACEMENT ON
PROBATION,] REVOCATION[,] OR MODIFICATION OF GOVERNANCE [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 or for reconstituting the governing body of the
charter holder as authorized by Section 12.115.
(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
procedure [hearing] that is related to a [modification, placement
on probation,] revocation[,] or modification of governance [denial
of renewal] under this subchapter.
(c) A decision by the commissioner to revoke a charter is
subject to review by the State Office of Administrative Hearings.
Notwithstanding Chapter 2001, Government Code:
(1) the administrative law judge shall uphold a
decision by the commissioner to revoke a charter unless the judge
finds the decision is arbitrary and capricious or clearly
erroneous; and
(2) a decision of the administrative law judge under
this subsection is final and may not be appealed.
(d) If the commissioner revokes the charter of an
open-enrollment charter school, the commissioner may:
(1) manage the school until alternative arrangements
are made for the school's students; and
(2) assign operation of one or more campuses formerly
operated by the charter holder who held the revoked charter to a
different charter holder who consents to the assignment.
SECTION 23. Subsection (a), Section 12.1161, Education
Code, is amended to read as follows:
(a) If [Except as provided by Subsection (b), if] the
commissioner revokes or denies the renewal of a charter of an
open-enrollment charter school[,] or [if] an open-enrollment
charter school surrenders its charter, the school may not:
(1) continue to operate under this subchapter; or
(2) receive state funds under this subchapter.
SECTION 24. Subsection (c), Section 12.1163, Education
Code, is amended to read as follows:
(c) Unless the commissioner has specific cause to conduct an
additional audit, the 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 25. Subsection (a), Section 12.1164, Education
Code, is amended to read as follows:
(a) The commissioner must notify the Teacher Retirement
System of Texas in writing of the revocation, denial of renewal,
expiration, or surrender of a charter under this subchapter not
later than the 10th business day after the date of the event.
SECTION 26. 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 commissioner shall develop and by rule adopt performance
frameworks that establish standards by which to measure the
performance of an open-enrollment charter school. The commissioner
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
commissioner 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
commissioner shall measure school performance against an
established set of quality standards developed and adopted by the
commissioner.
(c) Each year, the commissioner shall evaluate the
performance of each open-enrollment charter school based on the
applicable performance frameworks adopted under Subsection (a).
SECTION 27. 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 commissioner [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 commissioner [board].
(b) Each year within the period and in a form prescribed by
the commissioner [State Board of Education], each open-enrollment
charter school shall file with the commissioner [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 commissioner [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
commissioner [board] may charge a reasonable fee to cover the
commissioner's [board's] cost in providing the information.
SECTION 28. 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 29. Subsection (a), Section 12.122, 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 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 30. Subsection (a), Section 12.128, Education Code,
is 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.
SECTION 31. 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 October 1, 2013, 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 commissioner. This section expires
January 1, 2014.
SECTION 32. Sections 12.152 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 commissioner [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. 12.154. CONTENT. (a) Notwithstanding Section
12.110(d), the commissioner [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 commissioner [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 commissioner
[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 commissioner [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 33. Subsection (b), Section 12.156, 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
[12.101(b)].
SECTION 34. 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) the decision of the administrative law judge may
set an effective date for an action under this section.
SECTION 35. Subsection (a), Section 221.0071, 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 commissioner of education [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 36. Subsection (d), Section 221.056, 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 commissioner of education [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 37. The following provisions of the Education Code
are repealed:
(1) Subsection (b), Section 12.113; and
(2) Subsection (b), Section 12.1161.
SECTION 38. This Act takes effect September 1, 2013.