H.B. No. 1707
AN ACT
relating to the applicability of certain laws to open-enrollment
charter schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.1058, Education Code, is amended by
amending Subsection (c) and adding Subsections (d), (e), (f), (g),
(h), (i), (j), (k), (l), and (m) to read as follows:
(c) Notwithstanding Subsection (a) or (b), an
open-enrollment charter school operated by a tax exempt entity as
described by Section 12.101(a)(3) is not considered to be a
political subdivision, local government, or local governmental
entity unless:
(1) a [the applicable] statute specifically states
that the statute applies to an open-enrollment charter school; or
(2) a provision in this chapter states that a specific
statute applies to an open-enrollment charter school.
(d) A political subdivision shall consider an
open-enrollment charter school a school district for purposes of
zoning, project permitting, platting and replatting processes,
business licensing, franchises, utility services, signage,
subdivision regulation, property development projects, the
requirements for posting bonds or securities, contract
requirements, land development standards as provided by Section
212.902, Local Government Code, tree and vegetation regulations,
regulations of architectural features of a structure, construction
of fences, landscaping, garbage disposal, noise levels, fees or
other assessments, and construction or site development work if the
charter school provides to the political subdivision the
certification described by Subsection (e).
(e) To be considered a school district by a political
subdivision in accordance with Subsection (d), the governing body
of an open-enrollment charter school must certify in writing to the
political subdivision that no administrator, officer, or employee
of the charter school and no member of the governing body of the
charter school or its charter holder derives any personal financial
benefit from a real estate transaction with the charter school.
(f) An open-enrollment charter school considered a school
district under this section shall comply with the same requirements
imposed by the political subdivision on a campus of a school
district.
(g) An open-enrollment charter school does not have the
power of eminent domain.
(h) A political subdivision may not consider an
open-enrollment charter school a school district under Section
395.022, Local Government Code, for the purposes of the collection
of impact fees imposed under Chapter 395, Local Government Code, by
the political subdivision for providing capital funding for public
water and wastewater facilities.
(i) A political subdivision may not take any action that
prohibits an open-enrollment charter school from operating a public
school campus, educational support facility, athletic facility, or
administrative office within the political subdivision's
jurisdiction or on any specific property located within the
jurisdiction of the political subdivision that it could not take
against a school district. A political subdivision shall grant
approval in the same manner and follow the same timelines as if the
charter school were a school district located in that political
subdivision's jurisdiction, provided that, for a new campus, the
charter school provide notice, in the manner provided by and to the
persons listed in Section 12.1101, of the location of the new campus
within 20 business days of closing on the purchase or lease of real
property for that campus.
(j) This section applies to both owned and leased property
of the open-enrollment charter school under Section 12.128.
(k) Except as otherwise provided by this section, this
section does not affect the authority granted by state law to a
political subdivision to regulate an open-enrollment charter
school through applicable health and safety ordinances imposed by
the political subdivision.
(l) In this section, "political subdivision" does not
include a school district.
(m) This subsection applies only to information of a
financial nature related to property transactions of an
open-enrollment charter school subject to this section. A
nonprofit entity operating an open-enrollment charter school under
Chapter 12 or a management company providing management services to
the nonprofit entity is considered a governmental body for purposes
of Chapter 552, Government Code, and financial information related
to property transactions that is managed or possessed by the entity
or company is subject to disclosure under Chapter 552, Government
Code.
SECTION 2. Section 212.902, Local Government Code, is
amended to read as follows:
Sec. 212.902. SCHOOL DISTRICT AND OPEN-ENROLLMENT CHARTER
SCHOOL LAND DEVELOPMENT STANDARDS. (a) This section applies to an
agreement [agreements] between a school district or
open-enrollment charter school [districts] and a [any]
municipality which has annexed territory for limited purposes.
(b) On request by a school district or open-enrollment
charter school, a municipality shall enter an agreement with the
board of trustees of the school district or the governing body of
the open-enrollment charter school to establish review fees, review
periods, and land development standards ordinances and to provide
alternative water pollution control methodologies for school
buildings constructed by the school district or open-enrollment
charter school. The agreement shall include a provision exempting
the district or charter school from all land development ordinances
in cases where the district or charter school is adding temporary
classroom buildings on an existing school campus.
(c) If the municipality and the school district or
open-enrollment charter school do not reach an agreement on or
before the 120th day after the date on which the municipality
receives the district's or charter school's request for an
agreement, proposed agreements by the [school] district or charter
school and the municipality shall be submitted to an independent
arbitrator appointed by the presiding district judge whose
jurisdiction includes the [school] district or charter school. The
arbitrator shall, after a hearing at which both the [school]
district or charter school and the municipality make presentations
on their proposed agreements, prepare an agreement resolving any
differences between the proposals. The agreement prepared by the
arbitrator will be final and binding upon both the [school]
district or charter school and the municipality. The cost of the
arbitration proceeding shall be borne equally by the [school]
district or charter school and the municipality.
(d) A school district or open-enrollment charter school
that requests an agreement under this section, at the time the
district or charter school [it] makes the request, shall send a copy
of the request to the commissioner of education. At the end of the
120-day period, the requesting district or charter school shall
report to the commissioner the status or result of negotiations
with the municipality. A municipality may send a separate status
report to the commissioner. The district or charter school shall
send to the commissioner a copy of each agreement between the
district or charter school and a municipality under this section.
(e) An agreement between a municipality and an
open-enrollment charter school under Subsection (b) may require
that:
(1) any revised land development standards may apply
only while the property is used for purposes of the charter school;
and
(2) any property in use subject to land development
standards established only for an open-enrollment charter school
must be brought into compliance with all development regulations
applicable to non-school related commercial developments by the
property owner after closure or relocation of the charter school.
(f) [(e)] In this section:
(1) "Land [, land] development standards" includes
impervious cover limitations, building setbacks, floor to area
ratios, building heights and coverage, water quality controls,
landscaping, development setbacks, compatibility standards,
traffic analyses, including traffic impact analyses, parking
requirements, signage requirements, and driveway cuts, if
applicable.
(2) "Open-enrollment charter school" means a school
granted a charter under Subchapter C, D, or E, Chapter 12, Education
Code.
(g) [(f)] Nothing in this section shall be construed to
limit the applicability of or waive fees for fire, safety, health,
or building code ordinances of the municipality prior to or during
construction of school buildings, nor shall any agreement waive any
fee or modify any ordinance of a municipality for an
administration, service, or athletic facility proposed for
construction by a school district or open-enrollment charter
school.
SECTION 3. Section 552.053(b), Local Government Code, is
amended to read as follows:
(b) The following may be exempt:
(1) this state;
(2) a county;
(3) a municipality; or
(4) [a] school districts and open-enrollment charter
schools [district].
SECTION 4. Section 12.103(c), Education Code, is repealed.
SECTION 5. An exemption granted to a school district under
Section 552.053(b)(4), Local Government Code, as that subdivision
existed before the effective date of this Act, automatically
extends to all open-enrollment charter schools located in the
municipality after the effective date of this Act unless the
municipality repeals the exemption before the effective date of
this Act.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1707 was passed by the House on April
28, 2023, by the following vote: Yeas 101, Nays 45, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1707 on May 25, 2023, by the following vote: Yeas 130, Nays 8,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1707 was passed by the Senate, with
amendments, on May 23, 2023, by the following vote: Yeas 25, Nays
6.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor