86R13277 SOS-D
By: RodrÃguez S.B. No. 1594
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of open-enrollment charter schools and
requiring a study comparing and evaluating certain characteristics
of open-enrollment charter schools and school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 7, Education Code, is
amended by adding Section 7.067 to read as follows:
Sec. 7.067. OPEN-ENROLLMENT CHARTER SCHOOL IMPACT REPORT.
(a) The commissioner shall conduct a study to evaluate:
(1) the relative enrollment characteristics of
open-enrollment charter schools and school districts; and
(2) the financial impact of open-enrollment charter
schools on school districts required to take action under Chapter
41 to reduce district wealth per student to the equalized wealth
level.
(b) Each school district and open-enrollment charter school
shall submit to the commissioner any information, including
information that is disaggregated with respect to designated
categories, required by the commissioner to conduct the study under
this section.
(c) The study must:
(1) compare open-enrollment charter schools to school
districts with respect to the number of enrolled students who are:
(A) eligible under Section 29.003 to participate
in special education services;
(B) identified as economically disadvantaged; or
(C) placed in a disciplinary alternative
education program or expelled; and
(2) examine the financial impact of open-enrollment
charter schools on school districts required to take action under
Chapter 41 to reduce district wealth per student to the equalized
wealth level by:
(A) considering:
(i) the adequacy of school and district
educators and other employees necessary to achieve the state policy
under Section 42.001;
(ii) school and district performance,
including student performance; and
(iii) student demographics, including
race, sex, ethnicity, and national origin; and
(B) determining whether open-enrollment charter
schools affect the standard of neutrality described by Section
42.001(b) with respect to:
(i) property wealth per weighted student;
(ii) revenue per weighted student;
(iii) tax effort; and
(iv) revenue per cent of tax effort.
(d) Not later than December 1, 2020, the commissioner shall
prepare and submit to the governor, the lieutenant governor, the
speaker of the house of representatives, and the presiding officer
of each legislative standing committee with primary jurisdiction
over primary and secondary education a written report containing
the results of the study and any recommendations for legislative or
other action.
(e) The commissioner shall adopt rules to administer this
section, including rules:
(1) providing guidance regarding the format and manner
for the submission of information under Subsection (b); and
(2) ensuring that reporting under this section
complies with federal law regarding confidentiality of student
medical or educational information, including the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
et seq.) and the Family Educational Rights and Privacy Act of 1974
(20 U.S.C. Section 1232g), and any state law relating to the privacy
of student information.
(f) This section expires September 1, 2021.
SECTION 2. Section 12.101, Education Code, is amended by
amending Subsections (b-1) and (b-2) and adding Subsections (b-10)
and (b-11) to read as follows:
(b-1) Beginning September 1, 2019, and except as provided by
Subsection (b-10) [In granting charters for open-enrollment
charter schools], the commissioner may not:
(1) grant a charter for an open-enrollment charter
school, including a school operating only a full-time online
program [a total of more than:
[(1) 215 charters through the fiscal year ending
August 31, 2014]; or
(2) approve an expansion amendment under Section
12.114 [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].
(b-2) Beginning September 1, 2021 [2019], the total number
of charters for open-enrollment charter schools that may be granted
is 305 charters.
(b-10) Subsection (b-1) does not apply to a charter for an
open-enrollment charter school that:
(1) is designated as a dropout recovery school under
Section 12.1141(c);
(2) specializes in one or more performing arts; or
(3) provides combined services for an adult education
program and a high school dropout recovery program under Section
12.137.
(b-11) Subsections (b-1) and (b-10) and this subsection
expire September 1, 2021.
SECTION 3. Section 12.1011(a), Education Code, is amended
to read as follows:
(a) Notwithstanding Section 12.101(b) and beginning
September 1, 2021, 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.
SECTION 4. Section 12.1012, Education Code, is amended by
adding Subdivision (1-a) to read as follows:
(1-a) "Expansion amendment" means an amendment to the
charter of an open-enrollment charter school that permits the
school to increase its maximum allowable enrollment, extend the
grade levels it serves, change its geographic boundaries, or add a
campus or site.
SECTION 5. Section 12.107(a), Education Code, is amended to
read as follows:
(a) Funds received under Section 12.106 after September 1,
2001, by a charter holder:
(1) are considered to be public funds for all purposes
under state law;
(2) are held in trust by the charter holder for the
benefit of the students of the open-enrollment charter school;
(3) may be used only for a purpose for which a school
may use local funds under Section 45.105(c); [and]
(4) pending their use, must be deposited into a bank,
as defined by Section 45.201, with which the charter holder has
entered into a depository contract; and
(5) may not:
(A) be pledged or used for marketing,
advertising, or other activities to promote the charter holder or
the open-enrollment charter school; or
(B) be used to support an operation or activity
not related to the educational activities of the charter holder.
SECTION 6. Effective September 1, 2021, Section 12.110,
Education Code, is amended by adding Subsection (d-1) to read as
follows:
(d-1) The commissioner shall deny an application for a
charter for an open-enrollment charter school from an applicant
that has submitted three or more applications for a charter under
this section and has not received approval.
SECTION 7. 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 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 8. Effective September 1, 2021, Section 12.114,
Education Code, is amended by amending Subsection (a) and adding
Subsection (a-1) to read as follows:
(a) A revision of a charter of an open-enrollment charter
school may be made only with the approval of the commissioner, in
coordination with a member of the State Board of Education
designated for the purpose by the chair of the board.
(a-1) The commissioner shall notify the State Board of
Education of each request for revision the commissioner proposes to
grant under this subchapter.
SECTION 9. Section 12.131, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) The commissioner by rule shall establish reporting
procedures to require the governing body of an open-enrollment
charter school to annually report to the commissioner information
consistent with the information described by Section 37.020
regarding each student placement in a disciplinary alternative
education program and each student expulsion.
SECTION 10. Section 12.101(b-4), Education Code, is
repealed.
SECTION 11. (a) Section 12.110(d-1), Education Code, as
added by this Act, and Section 12.114, Education Code, as amended by
this Act, apply only to an application for a charter for an
open-enrollment charter school or a request for approval of a
revision to the charter of an open-enrollment charter school
submitted on or after September 1, 2021.
(b) As soon as practicable after the effective date of this
Act, the commissioner of education shall adopt rules necessary to
implement the changes in law made by this Act.
SECTION 12. Except as otherwise provided by this Act, this
Act takes effect September 1, 2019.