88R14343 JES-F
By: Dutton H.B. No. 5092
A BILL TO BE ENTITLED
AN ACT
relating to formation, funding, and support of and the
applicability of certain laws to charter schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 12.052, Education Code,
is amended to read as follows:
Sec. 12.052. PETITION DRIVEN AUTHORIZATION.
SECTION 2. Section 12.052(a), 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 grant or deny, through a public vote of the
board of trustees or governing body, a charter to parents and
teachers for a campus, two or more campuses, 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 the
[that] school campus or at each campus, as applicable; and
(2) a majority of the classroom teachers at the [that]
school campus or at each campus, as applicable.
SECTION 3. The heading to Section 12.0521, Education Code,
is amended to read as follows:
Sec. 12.0521. DISTRICT CHARTER [ALTERNATIVE]
AUTHORIZATION.
SECTION 4. Section 12.0521, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsections (d), (e),
and (f) to read as follows:
(a) Notwithstanding Section 12.052, in accordance with this
subchapter and in the manner provided by this section, the board of
trustees of a school district or the governing body of a home-rule
school district may grant a charter for:
(1) a new district campus; [or]
(2) a program that is operated:
(A) by an entity that has entered into a contract
with the district under Section 11.157 to provide educational
services to the district through the campus or program; and
(B) at a facility located in the boundaries of
the district; or
(3) an existing district campus.
(b) A student's parent or guardian may choose to enroll the
student at a campus or in a program under this section. A school
district may not assign a student to a campus or program under this
section unless the student's parent or guardian has voluntarily
enrolled the student at the campus or in the program. A student's
parent or guardian may, at any time, remove the student from a
campus or program under this section and enroll the student at the
campus to which the student would ordinarily be assigned. If the
campus to which the student would ordinarily be assigned is also a
campus operated under a charter, the student's parent or guardian
may enroll the student at another available campus in the district
that is appropriate for the student's grade and is not operated
under a charter.
(d) A district charter may be granted to a campus,
regardless of the performance rating under Subchapter C, Chapter
39, assigned to that campus in the previous school year.
(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 5. Section 12.0531, Education Code, is amended to
read as follows:
Sec. 12.0531. PERFORMANCE CONTRACT; DURATION OF CHARTER.
(a) 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.
(b) A charter granted pursuant to a contract between a
school district and an entity granted a charter under this
subchapter as authorized by Section 11.174(a)(2) must be granted to
a school district campus for a term of not less than three years.
The term of the charter may be shortened by an action authorized
under Chapter 39A, except for the charter granted to a campus
against which the commissioner may not impose a sanction or take
action pursuant to Section 11.174(f). A charter described by this
subsection may be placed on probation or revoked in accordance with
Section 12.064.
SECTION 6. Section 12.056(b), Education Code, as amended by
Chapters 887 (S.B. 1697), 974 (S.B. 2081), and 1046 (S.B. 1365),
Acts of the 87th Legislature, Regular Session, 2021, is reenacted
and amended to read as follows:
(b) A campus or program for which a charter is granted under
this subchapter is subject to Sections 12.104(b), (b-2), and (b-3),
and Sections 12.104(b-1), (b-4), and (c) apply to the campus or
program, as if the campus or program is an open-enrollment charter
school [:
[(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, except class size limits for prekindergarten classes
imposed under Section 25.112, which do not apply;
[(G) extracurricular activities under Section
33.081;
[(H) health and safety under Chapter 38;
[(I) the provisions of Subchapter A, Chapter 39;
[(J) public school accountability and special
investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
and Chapter 39A;
[(K) the duty to discharge or refuse to hire
certain employees or applicants for employment under Section
12.1059; and
[(K) parental options to retain a student under
Section 28.02124].
SECTION 7. Section 12.057(c), Education Code, is amended to
read as follows:
(c) A campus or program granted a charter under Section
12.052 or [,] 12.0521(a)(1)[, or 12.053] is immune from liability
to the same extent as a school district, and its employees and
volunteers are immune from liability to the same extent as school
district employees and volunteers.
SECTION 8. Section 12.062, Education Code, is amended to
read as follows:
Sec. 12.062. REVISION. (a) A charter granted under Section
12.052 [or 12.053] may be revised:
(1) with the approval of the board of trustees that
granted the charter; and
(2) on a petition signed by a majority of the parents
and a majority of the classroom teachers at the campus, at each
campus, or in the program, as applicable.
(b) A charter granted under Section 12.0521 may be revised
with the approval of the board of trustees that granted the charter,
and if applicable, the approval of the board of trustees or chief
operating officer of the partnering school district, campus, or
program. [A charter may be revised under this subsection only
before the first day of instruction of a school year or after the
final day of instruction of a school year.]
SECTION 9. Section 12.063, Education Code, is amended to
read as follows:
Sec. 12.063. BASIS FOR PLACEMENT ON PROBATION OR
REVOCATION. (a) A board of trustees may place on probation or
revoke a charter it grants if the board determines that the campus,
campuses, or program:
(1) committed a material violation of the charter,
including by failure to comply with the duty to discharge or refuse
to hire certain employees or applicants for employment, as provided
by Section 12.0631;
(2) failed to satisfy generally accepted accounting
standards of fiscal management; or
(3) failed to comply with this subchapter, another
law, or a state agency rule.
(b) The action the board takes under Subsection (a) shall be
based on the best interest of campus or program students, the
severity of the violation, and any previous violation the campus,
campuses, or program has committed.
SECTION 10. Section 12.064(b), Education Code, is amended
to read as follows:
(b) The procedure adopted under Subsection (a) must provide
an opportunity for a hearing to the campus or program for which a
charter is granted under this subchapter and to parents and
guardians of students at the campus or in the program. A hearing
under this subsection must be held on a charter [the] campus or on
the campus operating the [one of the campuses in the case of a
cooperative] charter program.
SECTION 11. Section 12.065, Education Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Except as provided by Subsection (c), eligibility
[Eligibility] criteria for admission of students to the campus or
program for which a charter is granted under this subchapter must
give priority on the basis of geographic and residency
considerations. After priority is given on those bases, secondary
consideration may be given to a student's age, grade level, or
academic credentials in general or in a specific area, as necessary
for the type of program offered.
(c) A campus or program may enter into an agreement with and
provide for enrollment preferences to children of employees of a
business and industry partner in the same manner as an
open-enrollment charter school under Section 12.117(e) if the
business and industry partner provides donations described by
Section 12.117(g) to the campus or program in an amount equal to at
least 50 percent of the funds the campus or program is annually
entitled to under Section 12.106.
SECTION 12. Section 12.101(b-0), Education Code, is amended
to read as follows:
(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,
two-thirds [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.
SECTION 13. Section 12.1058, Education Code, is amended by
amending Subsection (c) and adding Subsections (d), (d-1), (d-2),
and (d-3) 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 other than a school district
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,
eminent domain, 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. An open-enrollment charter school does not have
the power of eminent domain.
(d-1) A political subdivision other than a school district
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 other than a school district 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.
(d-2) This section applies to both owned and leased property
of the open-enrollment charter school under Section 12.128.
(d-3) Except as 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
regarding health and safety ordinances.
SECTION 14. Sections 12.106(a) and (i), Education Code, are
amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 48 equal to
the amount of funding per student in weighted average daily
attendance to which the charter holder would be entitled for the
school under Chapter 48 if the school were a school district without
a tier one local share for purposes of Section 48.266, excluding:
(1) the adjustment under Section 48.052;
(2) [,] the funding under Sections 48.101 and [,
48.110,] 48.111; [,] and
(3) [48.112, and] enrichment funding under Section
48.202(a)[, to which the charter holder would be entitled for the
school under Chapter 48 if the school were a school district without
a tier one local share for purposes of Section 48.266].
(i) The agency may approve a transfer of a charter holder's
remaining funds to another charter holder, a school district
operating a charter school under Subchapter C, or a public junior or
senior college operating a charter school under Subchapter E if the
entity [charter holder] receiving the funds has not received notice
of the expiration or revocation of the entity's [the charter
holder's] charter [for an open-enrollment charter school] or notice
of a reconstitution of the governing body of the charter holder
under Section 12.1141 or 12.115 and satisfies any other
qualification provided by a rule adopted by the commissioner under
Subsection (j).
SECTION 15. Section 12.110(d), Education Code, is amended
to read as follows:
(d) The commissioner shall 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 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; and
(B) criteria relating to improving student
performance and encouraging innovative programs[; and
[(C) a statement from any school district whose
enrollment is likely to be affected by the open-enrollment charter
school, including information relating to any financial difficulty
that a loss in enrollment may have on the district].
SECTION 16. Section 12.1101, Education Code, is amended to
read as follows:
Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR
ESTABLISHMENT OF CAMPUS. (a) 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 submitted under Section 12.110 or of
notice of the establishment of a campus as authorized under Section
12.101(b-4):
(1) the superintendent and 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.
(b) The commissioner by rule shall adopt a procedure for
providing notice of the approval of an expansion amendment under
Section 12.114 to the superintendent and the board of trustees of
each school district from which a new campus or the expansion of an
existing campus proposed by the expansion amendment is likely to
draw students, as determined by the commissioner.
SECTION 17. Section 12.114(d), Education Code, is amended
to read as follows:
(d) A charter holder may submit a request for approval for
an expansion amendment up to 36 [18] months before the date on which
the expansion will be effective. A request for approval of an
expansion amendment does not obligate the charter holder to
complete the proposed expansion.
SECTION 18. The heading to Section 12.117, Education Code,
is amended to read as follows:
Sec. 12.117. ADMISSION; SUPPORT BY BUSINESS AND INDUSTRY
PARTNER.
SECTION 19. Section 12.117, Education Code, is amended by
amending Subsections (a) and (d) and adding Subsections (e), (f),
and (g) to read as follows:
(a) For admission to an open-enrollment charter school, the
governing body of the school shall:
(1) require the applicant to complete and submit the
common admission application form described by Section 12.1173 not
later than a reasonable deadline the school establishes; and
(2) on receipt of more acceptable applications for
admission under this section than available positions in the
school:
(A) prioritize admitting:
(i) a child who attended the school the
previous year;
(ii) a child who is a sibling of a student
admitted to the school; or
(iii) subject to Subsection (e), the child
of a permanent employee of a business and industry partner under
that subsection, if applicable; and
(B) after admitting any eligible applicant
described by Paragraph (A):
(i) fill the remaining available positions
by lottery; or
(ii) [(B)] subject to Subsection (b), fill
the remaining available positions in the order in which
applications received before the application deadline were
received.
(d) Notwithstanding Section 12.111(a)(13), an
open-enrollment charter school may admit a child of an employee or
business and industry partner of the school as provided by this
section regardless of whether the child resides in the geographic
area served by the school.
(e) An open-enrollment charter school may establish a
partnership with a business and industry partner for the support of
the school or a campus of the school by entering into a memorandum
of understanding described by Subsection (f) with that partner.
The memorandum of understanding under Subsection (f) must establish
the maximum enrollment that may be reserved for children of
permanent employees of the business and industry partner, which may
not be more than 50 percent of the total enrollment capacity of the
school or campus supported by the business and industry partner.
The school or campus may not, and a memorandum of understanding
entered into under Subsection (f) may not authorize or require the
school or campus to, unenroll a student who is enrolled at the
school in a school year or refuse to reenroll a student who was
enrolled at the school during the previous school year to create an
available position for the enrollment of a child of a partner
employee.
(f) A memorandum of understanding between an
open-enrollment charter school and a business and industry partner
must specify the methods by which the business and industry partner
will support the charter school. Support provided by a business and
industry partner:
(1) must include a donation of funds or services under
Subdivision (2) equal to a value of at least 50 percent of the funds
the school campus is entitled to annually under Section 12.106; and
(2) may include:
(A) internships;
(B) career counseling;
(C) academic tutoring; and
(D) enrichment activities.
(g) The commissioner shall adopt rules as necessary to
implement Subsections (e) and (f), including rules for
qualification as a business and industry partner. The rules must
permit a business and industry partner to be a corporation, limited
liability company, partnership, or other private or public entity.
In adopting rules regarding required donations to qualify as a
business and industry partner, the commissioner shall consider the
following types of donations as permissible:
(1) real property on which the school or school campus
is built;
(2) a building or space used by the school or campus at
no cost;
(3) funds, materials, or labor for renovations to
existing school or campus buildings; and
(4) capital improvements to the school or campus,
including investments in technology.
SECTION 20. Section 12.1284(a), Education Code, is amended
to read as follows:
(a) After extinguishing all payable obligations owed by an
open-enrollment charter school that ceases to operate, including a
debt described by Section 12.128(e), a former charter holder shall:
(1) remit to the agency:
(A) any remaining funds described by Section
12.106(h); and
(B) any state reimbursement amounts from the sale
of property described by Section 12.128; or
(2) transfer the remaining funds to another charter
holder, a school district operating a charter school under
Subchapter C, or a public junior or public senior college operating
a charter school under Subchapter E, as provided by [under] Section
12.106(i).
SECTION 21. Section 12.141(a), Education Code, is amended
to read as follows:
(a) The agency shall deposit funds received under Sections
12.106, 12.128, 12.1281, 12.1283, and 12.1284 into the charter
school liquidation fund and may use the funds to:
(1) pay expenses relating to managing and closing an
open-enrollment charter school that ceases to operate, including:
(A) maintenance of the school's student and other
records; [and]
(B) the agency's personnel costs associated with
managing and closing the school; and
(C) the agency's costs in conducting a special
investigation of an open-enrollment charter school under Section
39.004;
(2) dispose of property described by Section 12.128;
and
(3) maintain property described by Section 12.128,
including expenses for insurance, utilities, maintenance, and
repairs.
SECTION 22. Section 29.171, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) A school district or open-enrollment charter school
that partners with a private prekindergarten program may use a
facility or location for the program if the facility or location
complies with any municipal ordinance applicable to the operation
of a private prekindergarten program, if any have been adopted by
the municipality in which the facility or location is located.
SECTION 23. Section 39A.105(a), Education Code, is amended
to read as follows:
(a) A campus turnaround plan must include:
(1) details on the method for restructuring,
reforming, or reconstituting the campus;
(2) a detailed description of the academic programs to
be offered at the campus, including:
(A) instructional methods;
(B) length of school day and school year;
(C) academic credit and promotion criteria; and
(D) programs to serve special student
populations;
(3) if a district charter is to be granted for the
campus under Section 12.0521 [12.0522]:
(A) the term of the charter; and
(B) information on the implementation of the
charter;
(4) written comments from:
(A) the campus-level committee established under
Section 11.251, if applicable;
(B) parents; and
(C) teachers at the campus; and
(5) a detailed description of the budget, staffing,
and financial resources required to implement the plan, including
any supplemental resources to be provided by the school district or
other identified sources.
SECTION 24. Subchapter A, Chapter 48, Education Code, is
amended by adding Section 48.012 to read as follows:
Sec. 48.012. ENROLLMENT TRANSPARENCY REPORT. The agency
shall annually prepare and publish a report indicating the amount
of local revenue in excess of entitlement that each school district
would have received if each student in the attendance zone of the
district who was enrolled during the school year in an
open-enrollment charter school or in a different school district
had instead enrolled in that district.
SECTION 25. Section 212.001, Local Government Code, is
amended by adding Subdivision (1-a) to read as follows:
(1-a) "Open-enrollment charter school" means a school
granted a charter under Subchapter C, D, or E, Chapter 12, Education
Code.
SECTION 26. 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) In this section, "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, vehicle
queuing, parking requirements, signage requirements, and driveway
cuts, if applicable.
(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 27. Section 552.053, Local Government Code, is
amended by amending Subsection (b) and adding Subsections (b-1) and
(b-2) 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].
(b-1) For purposes of an exemption granted under Subsection
(b)(4), the exemption must be granted to both school districts and
open-enrollment charter schools.
(b-2) For purposes of this section, "open-enrollment
charter school" means a school granted a charter under Subchapter D
or E, Chapter 12, Education Code.
SECTION 28. The following provisions of the Education Code
are repealed:
(1) Section 12.0522;
(2) Section 12.053;
(3) Section 12.0532;
(4) Section 12.103(c);
(5) Section 12.106(a-4); and
(6) Section 39A.107(b).
SECTION 29. An exemption granted to a school district under
Section 552.053(b)(4), Local Government Code, as that section
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 30. To the extent of any conflict, this Act prevails
over another Act of the 88th Legislature, Regular Session, 2023,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 31. This Act applies beginning with the 2023-2024
school year.
SECTION 32. 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.