Texas 2013 83rd Regular

Texas Senate Bill SB2 Enrolled / Bill

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                    S.B. No. 2


 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.  Subsection (a), Section 12.052, Education Code,
 is amended to read as follows:
 (a)  In accordance with this subchapter, the board of
 trustees of a school district or the governing body of a home-rule
 school district shall [may] grant or deny, through a public vote of
 the board of trustees or governing body, a charter to parents and
 teachers for a campus or a program on a campus if the board is
 presented with a petition signed by:
 (1)  the parents of a majority of the students at that
 school campus; and
 (2)  a majority of the classroom teachers at that
 school campus.
 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 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 4.  Subchapter C, Chapter 12, Education Code, is
 amended by adding Sections 12.0531 and 12.0532 to read as follows:
 Sec. 12.0531.  PERFORMANCE CONTRACT; DURATION OF CHARTER.
 If a charter is granted under this subchapter, the board of trustees
 of the school district that granted the charter shall enter into a
 performance contract with the principal or equivalent chief
 operating officer of the campus or program. The performance
 contract must specify enhanced authority granted to the principal
 or equivalent officer in order to achieve the academic goals that
 must be met by campus or program students. A charter granted under
 this subchapter expires 10 years from the date the charter is
 granted unless the specified goals are substantially met, as
 determined by the board of trustees of the school district that
 granted the charter.
 Sec. 12.0532.  NEIGHBORHOOD SCHOOL. (a)  A charter granted
 under this subchapter for a campus may, as determined by the board
 of trustees of the school district granting the charter, provide
 for the campus to be a neighborhood school.
 (b)  Except as otherwise provided by this subsection, the
 principal or equivalent chief operating officer of a neighborhood
 school shall manage the funding provided for the school under this
 code and any other funding provided for the school in the manner the
 principal or other officer determines best meets the needs of the
 school's students. The district in which the school is located may
 retain that portion of funding that the district generally
 withholds from a campus for costs associated with the salary of the
 district superintendent or other district governance.
 (c)  The principal or equivalent chief operating officer of a
 neighborhood school may use school funding to purchase from the
 school district in which the school is located services for the
 school, including bus service, facilities maintenance services,
 and other services generally provided by a school district to
 district campuses. The school shall pay for each service an amount
 that reflects the actual cost to the district of providing the
 service for the number of the school's students for which the
 service is provided.
 SECTION 5.  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 6.  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 7.  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 8.  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 9.  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 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, in coordination with a member of the
 [The] State Board of Education designated for the purpose by the
 chair of the board, 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)  Notwithstanding Section 12.114, approval of the
 commissioner under that section is not required for establishment
 of a new open-enrollment charter school campus if the requirements
 of this subsection, including the absence of commissioner
 disapproval under Subdivision (3), are satisfied.  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, or at least 50 percent of the students in
 the grades assessed having been enrolled in the school for at least
 three school years may establish one or more new 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
 of disapproval of 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).
 (b-8)  In adopting any financial standards under this
 subchapter that an applicant for a charter for an open-enrollment
 charter school must meet, the commissioner shall not:
 (1)  exclude any loan or line of credit in determining
 an applicant's available funding; or
 (2)  exclude an applicant from the grant of a charter
 solely because the applicant fails to demonstrate having a certain
 amount of current assets in cash.
 SECTION 10.  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 11.  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 select a center for education research
 authorized by Section 1.005 to prepare an annual report concerning
 the performance of open-enrollment charter schools by authorizer
 compared to campus charters and matched traditional campuses, which
 shall be provided annually under Subchapters J and K, Chapter 39.
 (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 and
 student attrition rates.
 (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.
 (e)  The report must also include an analysis of whether the
 performance of matched traditional campuses would likely improve if
 there were consolidation of school districts within the county in
 which the campuses are located. This subsection applies only to a
 county that includes at least seven school districts and at least
 10 open-enrollment charter schools.
 SECTION 12.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.1014 to read as follows:
 Sec. 12.1014.  AUTHORIZATION FOR GRANT OF CHARTERS FOR
 SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a)  The
 commissioner may grant under Section 12.101 a charter on the
 application of an eligible entity for an open-enrollment charter
 school intended primarily to serve students eligible to receive
 services under Subchapter A, Chapter 29.
 (b)  The limit on the number of charters for open-enrollment
 charter schools imposed by Section 12.101 does not apply to a
 charter granted under this section to a school at which at least 50
 percent of the students are eligible to receive services under
 Subchapter A, Chapter 29.  Not more than five charters may be
 granted for schools described by this subsection.
 (c)  For purposes of the applicability of state and federal
 law, including a law prescribing requirements concerning students
 with disabilities, an open-enrollment charter school described by
 Subsection (a) is considered the same as any other school for which
 a charter is granted under Section 12.101.
 (d)  To the fullest extent permitted under federal law, a
 parent of a student with a disability may choose to enroll the
 parent's child in an open-enrollment charter school described by
 Subsection (a) regardless of whether a disproportionate number of
 the school's students are students with disabilities.
 (e)  This section does not authorize an open-enrollment
 charter school to discriminate in admissions or in the services
 provided based on the presence, absence, or nature of an
 applicant's or student's disability.
 (f)  The commissioner and the State Board for Educator
 Certification shall adopt rules as necessary to administer this
 section.
 SECTION 13.  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 14.  Section 12.104, Education Code, is amended by
 amending Subsection (b) and adding Subsection (b-1) 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.
 (b-1)  During the first three years an open-enrollment
 charter school is in operation, the agency shall assist the school
 as necessary in complying with requirements under Subsection
 (b)(2)(A).
 SECTION 15.  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 16.  Section 12.1055, Education Code, is amended by
 adding Subsections (c) and (d) to read as follows:
 (c)  Section 11.1513(f) applies to an open-enrollment
 charter school as though the governing body of the school were the
 board of trustees of a school district and to the superintendent or,
 as applicable, the administrator serving as educational leader and
 chief executive officer of the school as though that person were the
 superintendent of a school district.
 (d)  Notwithstanding any other provision of this section, a
 person who was not restricted or prohibited under this section as
 this section existed before September 1, 2013, from being employed
 by an open-enrollment charter school and who was employed by an
 open-enrollment charter school before September 1, 2013, is
 considered to have been in continuous employment as provided by
 Section 573.062(a), Government Code, and is not prohibited from
 continuing employment with the school.
 SECTION 17.  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 18.  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 to applications
 that propose an open-enrollment charter school campus to be located
 in the attendance zone of a school district campus assigned an
 unacceptable performance rating under Section 39.054 for the two
 preceding school years.
 SECTION 19.  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 20.  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 21.  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 22.  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 23.  Section 12.114, Education Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  Not later than the 60th day after the date that a charter
 holder submits to the commissioner a completed request for approval
 for an expansion amendment, as defined by commissioner rule,
 including a new school amendment, the commissioner shall provide to
 the charter holder written notice of approval or disapproval of the
 amendment.
 SECTION 24.  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.
 (k)  For purposes of determination of renewal under
 Subsection (b)(1) or (3) or (d)(1) or (4), performance during the
 2011-2012 school year may not be considered. For purposes of
 determination of renewal under Subsection (b)(1) or (3) or (d)(1)
 or (4), the initial three school years for which performance
 ratings under Subchapter C, Chapter 39, shall be considered are the
 2009-2010, 2010-2011, and 2012-2013 school years.  For purposes of
 determination of renewal under Subsection (b)(2) or (d)(2), the
 earliest school year for which financial accountability
 performance ratings under Subchapter D, Chapter 39, may be
 considered is the 2010-2011 school year. This subsection expires
 September 1, 2016.
 SECTION 25.  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)  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.
 (c-1)  For purposes of revocation under Subsection (c)(1),
 performance during the 2011-2012 school year may not be considered.
 For purposes of revocation under Subsection (c)(1), the initial
 three school years for which performance ratings under Subchapter
 C, Chapter 39, shall be considered are the 2009-2010, 2010-2011,
 and 2012-2013 school years. For purposes of revocation under
 Subsection (c)(2), the initial three school years for which
 financial accountability performance ratings under Subchapter D,
 Chapter 39, shall be considered are the 2010-2011, 2011-2012, and
 2012-2013 school years. This subsection expires September 1, 2016.
 (d)  In reconstituting the governing body of a charter holder
 under this section, the commissioner shall appoint members to the
 governing body. In appointing members under this subsection the
 commissioner:
 (1)  shall consider:
 (A)  local input from community members and
 parents; and
 (B)  appropriate credentials and expertise for
 membership, including financial expertise, whether the person
 lives in the geographic area the charter holder serves, and whether
 the person is an educator; and
 (2)  may reappoint current members of the governing
 body.
 (e)  If a governing body of a charter holder subject to
 reconstitution under this section governs enterprises other than
 the open-enrollment charter school, the commissioner may require
 the charter holder to  create a new, single-purpose organization
 that is exempt from taxation under Section 501(c)(3), Internal
 Revenue Code of 1986, to govern the open-enrollment charter school
 and may require the charter holder to surrender the charter to the
 commissioner for transfer to the organization created under this
 subsection. The commissioner shall appoint the members of the
 governing body of an organization created under this subsection.
 (f)  This section does not limit the authority of the
 attorney general to take any action authorized by law.
 (g)  The commissioner shall adopt rules necessary to
 administer this section.
 (h)  The commissioner shall adopt initial rules under
 Subsection (g) not later than September 1, 2014.  This subsection
 expires October 1, 2014.
 SECTION 26.  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 27.  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 28.  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 29.  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 30.  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).
 The performance of a school on a performance framework may not be
 considered for purposes of renewal of a charter under Section
 12.1141(d) or revocation of a charter under Section 12.115(c).
 SECTION 31.  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 32.  Section 12.120, Education Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  Notwithstanding Subsection (a), subject to Section
 12.1059, an open-enrollment charter school may employ a person:
 (1)  as a teacher or educational aide if:
 (A)  a school district could employ the person as
 a teacher or educational aide; or
 (B)  a school district could employ the person as
 a teacher or educational aide if the person held the appropriate
 certificate issued under Subchapter B, Chapter 21, and the person
 has never held a certificate issued under Subchapter B, Chapter 21;
 or
 (2)  in a position other than a position described by
 Subdivision (1) if a school district could employ the person in that
 position.
 SECTION 33.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.1202 to read as follows:
 Sec. 12.1202.  REQUIREMENT FOR MAJORITY OF MEMBERS OF
 GOVERNING BODY. A majority of the members of the governing body of
 an open-enrollment charter school or the governing body of a
 charter holder must be qualified voters.
 SECTION 34.  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 35.  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 36.  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 37.  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 38.  Section 12.129, Education Code, is amended to
 read as follows:
 Sec. 12.129.  MINIMUM [TEACHER] QUALIFICATIONS FOR
 PRINCIPALS AND TEACHERS. A person employed as a principal or a
 teacher by an open-enrollment charter school must hold a
 baccalaureate degree [high school diploma].
 SECTION 39.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.136 to read as follows:
 Sec. 12.136.  POSTING OF CHIEF EXECUTIVE OFFICER SALARY.  An
 open-enrollment charter school shall post on the school's Internet
 website the salary of the school's superintendent or, as
 applicable, of the administrator serving as educational leader and
 chief executive officer.
 SECTION 40.  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 41.  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 42.  Subsections (b), (c), and (d), Section 25.082,
 Education Code, are amended to read as follows:
 (b)  The board of trustees of each school district and the
 governing board of each open-enrollment charter school shall
 require students, once during each school day at each campus
 [school in the district], to recite:
 (1)  the pledge of allegiance to the United States flag
 in accordance with 4 U.S.C. Section 4[, and its subsequent
 amendments]; and
 (2)  the pledge of allegiance to the state flag in
 accordance with Subchapter C, Chapter 3100, Government Code.
 (c)  On written request from a student's parent or guardian,
 a school district or open-enrollment charter school shall excuse
 the student from reciting a pledge of allegiance under Subsection
 (b).
 (d)  The board of trustees of each school district and the
 governing board of each open-enrollment charter school shall
 provide for the observance of one minute of silence at each campus
 [school in the district] following the recitation of the pledges of
 allegiance to the United States and Texas flags under Subsection
 (b). During the one-minute period, each student may, as the student
 chooses, reflect, pray, meditate, or engage in any other silent
 activity that is not likely to interfere with or distract another
 student. Each teacher or other school employee in charge of
 students during that period shall ensure that each of those
 students remains silent and does not act in a manner that is likely
 to interfere with or distract another student.
 SECTION 43.  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 44.  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 45.  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 46.  Subsection (c), Section 140.006, Local
 Government Code, is amended to read as follows:
 (c)  The presiding officer of a school district shall submit
 a financial statement prepared under Section 140.005 to a daily,
 weekly, or biweekly newspaper published within the boundaries of
 the district. If a daily, weekly, or biweekly newspaper is not
 published within the boundaries of the school district, the
 financial statement shall be published in the manner provided by
 Subsections (a) and (b). The governing body of an open-enrollment
 charter school shall take action to ensure that the school's
 financial statement is [of an open-enrollment charter school shall
 be] made available in the manner provided by Chapter 552,
 Government Code, and is posted continuously on the school's
 Internet website.
 SECTION 47.  The following provisions of the Education Code
 are repealed:
 (1)  Subsection (b), Section 12.1055;
 (2)  Subsection (b), Section 12.113; and
 (3)  Subsection (b), Section 12.1161.
 SECTION 48.  The State Board of Education is required to
 implement Section 12.1014, Education Code, as added by this Act,
 only if the legislature appropriates money specifically for that
 purpose.  If the legislature does not appropriate money
 specifically for that purpose, the board may, but it is not required
 to, implement that section using other appropriations available for
 that purpose.
 SECTION 49.  This Act takes effect September 1, 2013.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 2 passed the Senate on
 April 11, 2013, by the following vote:  Yeas 30, Nays 1;
 May 21, 2013, Senate refused to concur in House amendments and
 requested appointment of Conference Committee; May 22, 2013, House
 granted request of the Senate; May 26, 2013, Senate adopted
 Conference Committee Report by the following vote:  Yeas 28,
 Nays 3.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 2 passed the House, with
 amendments, on May 17, 2013, by the following vote:  Yeas 114,
 Nays 23, two present not voting; May 22, 2013, House granted
 request of the Senate for appointment of Conference Committee;
 May 26, 2013, House adopted Conference Committee Report by the
 following vote:  Yeas 105, Nays 41, one present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor