By Grusendorf                                         H.B. No. 2277
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to school charters.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 2, Education Code, is amended by adding
    1-5  Chapter 37 to read as follows:
    1-6                     CHAPTER 37.  SCHOOL CHARTERS
    1-7                   SUBCHAPTER A.  HOME-RULE CHARTER
    1-8        Sec. 37.001.  AUTHORIZATION.  In accordance with this
    1-9  subchapter, a school district may adopt a home-rule charter under
   1-10  which the district will operate.
   1-11        Sec. 37.002.  AUTHORITY UNDER CHARTER.  A school district
   1-12  operating under a home-rule charter:
   1-13              (1)  is exempt from a state law or rule imposing a
   1-14  prohibition, restriction, or requirement on public schools or
   1-15  school districts, except as otherwise provided by this subchapter
   1-16  or by the charter under which the district operates;
   1-17              (2)  retains the authority to operate under the
   1-18  home-rule charter only if the performance of district students is
   1-19  satisfactory under Subchapter B, Chapter 35; and
   1-20              (3)  is exempt from any statute enacted by the
   1-21  legislature after the date of the district's home-rule charter
   1-22  election unless the legislature by a two-thirds record vote of each
   1-23  house specifically declares that the statute applies to a home-rule
    2-1  school district.  Neither the State Board of Education nor the
    2-2  commissioner may adopt any rule applicable to a home-rule school
    2-3  district unless the statute authorizing the rule specifically
    2-4  declares that it applies to a home-rule school district as provided
    2-5  by this subsection.  A home-rule school district is not subject to
    2-6  any rule adopted by the State Board of Education unless the rule is
    2-7  approved on final adoption by a two-thirds record vote of the full
    2-8  membership of the board.
    2-9        Sec. 37.003.  LIMITATION ON EXEMPTION.  (a)  A school
   2-10  district is not exempt under a home-rule charter from:
   2-11              (1)  Subchapters C, D, F, G, and H, Chapter 16;
   2-12              (2)  Chapter 20;
   2-13              (3)  Chapter 36;
   2-14              (4)  Subchapters B, E, and F, Chapter 35; or
   2-15              (5)  a state law or rule:
   2-16                    (A)  establishing a criminal offense;
   2-17                    (B)  relating to the Public Education Information
   2-18  Management System (PEIMS) only as necessary to monitor compliance
   2-19  with the provisions set forth in subsections 37.003(1), (2), and
   2-20  (3) above; or
   2-21                    (C)  relating to one or more types of
   2-22  governmental entities in addition to school districts.
   2-23        (b)  For purposes of student admissions and the Teacher
   2-24  Retirement System of Texas, a home-rule school district has the
   2-25  same duties and entitlements as a school district that has not
    3-1  adopted a home-rule charter.
    3-2        Sec. 37.004.  APPOINTMENT OF CHARTER COMMISSION.  The board
    3-3  of trustees of a school district shall appoint a charter commission
    3-4  to frame a home-rule charter if:
    3-5              (1)  the board receives a petition requesting the
    3-6  appointment of a charter commission to frame a home-rule charter
    3-7  signed by a number of registered voters of the district equal to at
    3-8  least 5 percent of the number of votes received in the district by
    3-9  all candidates for governor in the most recent gubernatorial
   3-10  general election; or
   3-11              (2)  at least two-thirds of the total membership of the
   3-12  board adopt a resolution ordering that a charter commission be
   3-13  appointed.
   3-14        Sec. 37.005.  CHARTER COMMISSION.  (a)  Not later than the
   3-15  30th day after the date the board of trustees of a school district
   3-16  receives a petition satisfying the requirements of Section
   3-17  37.004(1) requesting the appointment of a charter commission or the
   3-18  board adopts a resolution in accordance with Section 37.004(2)
   3-19  ordering the appointment of a charter commission, the board shall
   3-20  appoint residents of the district to serve on the commission to
   3-21  frame a charter for the district.
   3-22        (b)  A majority of the members appointed to the commission
   3-23  must be residents of the district who are parents of school-age
   3-24  children.
   3-25        (c)  the board of trustees may establish a deadline by which
    4-1  the charter commission must complete a proposed charter.
    4-2        Sec. 37.006.  CONTENT.  Each home-rule school district
    4-3  charter must:
    4-4              (1)  describe the educational program to be offered;
    4-5              (2)  provide that continuation of the home-rule charter
    4-6  is contingent on satisfactory student performance under Subchapter
    4-7  B, Chapter 35, and on compliance with any accountability provision
    4-8  specified by the charter, by a deadline or at intervals specified
    4-9  by the charter;
   4-10              (3)  specify any basis, in addition to a basis
   4-11  specified by this subchapter, on which the charter may be placed on
   4-12  probation, suspended, or revoked;
   4-13              (4)  describe the governing structure of the district
   4-14  and campuses;
   4-15              (5)  specify the qualifications to be met by
   4-16  professional employees;
   4-17              (6)  specify a procedure the district will follow to
   4-18  ensure the health and safety of students and employees that
   4-19  includes a requirement that the district obtain a criminal history
   4-20  record for each employee as provided by Section 21.917;
   4-21              (7)  describe the process by which the district will
   4-22  adopt an annual budget;
   4-23              (8)  describe the manner in which an annual audit of
   4-24  financial and programmatic operations of the district is to be
   4-25  conducted, including the manner in which the district will provide
    5-1  information necessary for the district to participate in the Public
    5-2  Education Information Management System (PEIMS); and
    5-3              (9)  specify the extent to which Chapter 19 applies to
    5-4  the district.
    5-5              (10)  include any other provisions considered necessary
    5-6  by the charter commission.
    5-7        Sec. 37.007.  CHARTER REVIEW.  Upon completion of the
    5-8  proposed charter by the commission, the school district's legal
    5-9  counsel shall review the charter to ensure that it complies with
   5-10  the requirements of any applicable laws.  Counsel shall make
   5-11  recommendations to the commission regarding compliance with legal
   5-12  requirements.
   5-13        Sec. 37.008.  CHARTER ELECTION.  (a)  As soon as practicable
   5-14  after the charter commission completes a proposed home-rule school
   5-15  district charter, the board of trustees of the district shall order
   5-16  an election on the proposed charter.
   5-17        (b)  The proposed charter shall be submitted to the voters of
   5-18  the district at an election to be held on the first uniform
   5-19  election date that occurs at least 45 days after the date on which
   5-20  the board of trustees orders the election.
   5-21        (c)  At least three copies of the proposed charter must be
   5-22  available in the office of each school campus in the district and
   5-23  at the district's central administrative office between the date of
   5-24  the election order and election day.  Notice of the election must
   5-25  include a statement informing voters that the copies are available.
    6-1        Sec. 37.009.  CHARTER AMENDMENT.  (a)  The board of trustees
    6-2  of a home-rule school district on its own motion may order an
    6-3  election on a proposed charter amendment that complies with this
    6-4  subchapter.
    6-5        (b)  The board of trustees shall order an election on a
    6-6  proposed charter amendment that complies with this subchapter if a
    6-7  petition is submitted to the board proposing the charter amendment
    6-8  is signed by a number of registered voters of the district equal to
    6-9  at least five percent of the number of votes received in the
   6-10  district by all candidates for governor in the most recent
   6-11  gubernatorial general election.
   6-12        (c)  An election under this section shall be held on the
   6-13  first uniform election date that occurs at least 45 days after the
   6-14  date the election is ordered.
   6-15        (d)  Notice of the election must include a substantial copy
   6-16  of the proposed charter amendment.
   6-17        (e)  A charter amendment may not contain more than one
   6-18  subject.
   6-19        (f)  The ballot shall be prepared so that a voter may approve
   6-20  or disapprove any one or more charter amendments without having to
   6-21  approve or disapprove all of the charter amendments.
   6-22        (g)  The board of trustees may not order an election on a
   6-23  proposed charter amendment earlier than the second anniversary of
   6-24  the date of any previous election to amend the charter.
   6-25        Sec. 37.010.  ADOPTION OF CHARTER OR CHARTER AMENDMENT.  (a)
    7-1  A proposed home-rule charter for a school district or a proposed
    7-2  charter amendment is adopted if approved by a majority of the
    7-3  qualified voters of the district voting at an election held for
    7-4  that purpose.
    7-5        (b)  A charter or charter amendment shall specify an
    7-6  effective date and takes effect according to its terms when the
    7-7  board of trustees of the school district enters an order declaring
    7-8  that the charter or charter amendment is adopted.  The board shall
    7-9  enter an order not later than the 10th day after the date the
   7-10  canvass of the election returns is completed.
   7-11        Sec. 37.011.  CERTIFICATION OF CHARTER OR CHARTER AMENDMENT.
   7-12  (a)  As soon as practicable after a school district adopts a
   7-13  home-rule charter or charter amendment, the president of the board
   7-14  of trustees shall certify to the secretary of state a copy of the
   7-15  charter or amendment showing the approval by the voters of the
   7-16  district.
   7-17        (b)  The secretary of state shall file and record the
   7-18  certification in the secretary of state's office.
   7-19        Sec. 37.012.  EFFECT OF RECORDING CHARTER OR AMENDMENT.  A
   7-20  recorded charter or charter amendment is a public act.  A court
   7-21  shall take judicial notice of a charter or charter amendment and
   7-22  proof is not required of its provisions.
   7-23        Sec. 37.013.  CHANGE IN GOVERNING BODY.  If the adoption,
   7-24  amendment, or revocation of a charter under this subchapter changes
   7-25  the structure of the governing body of the school district, the
    8-1  members of the governing body serving on the date the adoption,
    8-2  amendment, or revocation takes effect continue in office until
    8-3  their successors are chosen and have qualified for office.
    8-4        Sec. 37.014.  BASIS FOR PLACEMENT ON PROBATION, SUSPENSION,
    8-5  OR REVOCATION OF CHARTER.  (a)  The State Board of Education may
    8-6  place on probation, suspend, or revoke the home-rule charter of a
    8-7  school district if the board determines that the district:
    8-8              (1)  committed a material violation of the charter;
    8-9              (2)  failed to satisfy generally accepted accounting
   8-10  standards of fiscal management; or
   8-11              (3)  failed to comply with this subchapter, another
   8-12  law, or a state agency rule.
   8-13        (b)  The action the board takes under Subsection (a) shall be
   8-14  based on the best interest of district students, the severity of
   8-15  the violation, and any previous violation the district has
   8-16  committed.
   8-17        (c)  A school district whose home-rule charter is suspended
   8-18  or revoked under this subchapter shall operate under the other
   8-19  provisions of Title 1 and this title that apply to school
   8-20  districts.
   8-21        Sec. 37.015.  PROCEDURE FOR PLACEMENT ON PROBATION,
   8-22  SUSPENSION, OR REVOCATION.  (a)  The State Board of Education by
   8-23  rule shall adopt a procedure to be used for placing on probation,
   8-24  suspending, or revoking a home-rule school district charter.
   8-25        (b)  The procedure adopted under Subsection (a) must provide
    9-1  an opportunity for a hearing to the school district and to parents
    9-2  of district students.  A hearing under this subsection must be held
    9-3  in the district.
    9-4            (Sections 37.016-37.030 reserved for expansion
    9-5        SUBCHAPTER B.  CHARTER FOR CAMPUS OR PROGRAM ON CAMPUS
    9-6        Sec. 37.031.  AUTHORIZATION.  The board of trustees of a
    9-7  school district shall grant a charter to parents and teachers for a
    9-8  school campus or for a separately operating program on a regularly
    9-9  operating school campus if the board is presented with a petition
   9-10  signed by:
   9-11              (1)  a majority of the parents at that school campus;
   9-12  and
   9-13              (2)  in the case of an existing school campus, a
   9-14  majority of the classroom teachers at that school campus.
   9-15        Sec.  37.032.  COOPERATIVE CAMPUS CHARTERS.  Two or more
   9-16  campuses are authorized and encouraged to seek a cooperative
   9-17  charter, provided that the charter is approved on each campus in
   9-18  the manner described in Section 37.031.
   9-19        Sec. 37.033.  AUTHORITY UNDER CHARTER.  A campus or program
   9-20  for which a charter is granted under this subchapter:
   9-21              (1)  is exempt from a state law or rule imposing a
   9-22  prohibition, restriction, or requirement on public schools, except
   9-23  as otherwise provided by this subchapter or by the charter under
   9-24  which the campus or program operates;
   9-25              (2)  is exempt from the rules and policies of the
   10-1  school district board of trustees that are specifically described
   10-2  in the charter; and
   10-3              (3)  retains authority to operate under the charter
   10-4  only if students at the campus or in the program perform
   10-5  satisfactorily as provided by the charter in accordance with
   10-6  Section 37.035.
   10-7        Sec. 37.034.  LIMITATION ON EXEMPTION.  A  campus or program
   10-8  operating under a charter granted under this subchapter is not
   10-9  exempt from a state law or rule:
  10-10              (1)  establishing a criminal offense;
  10-11              (2)  relating to the Public Education Information
  10-12  Management System (PEIMS); or
  10-13              (3)  relating to one or more types of governmental
  10-14  entities in addition to schools or school programs specifically.
  10-15        Sec. 37.035.  STATUS.  (a)  A campus or program granted a
  10-16  charter under this subchapter operates in accordance with the
  10-17  provisions of the charter.
  10-18        (b)  Any governing body of the campus or program provided for
  10-19  under the charter is considered a governmental body for purposes of
  10-20  Chapters 551 and 552, Government Code.
  10-21        (c)  An employee of a campus or program granted a charter
  10-22  under this subchapter who qualifies for membership in the Teacher
  10-23  Retirement System of Texas shall be covered under that system in
  10-24  the same manner and to the same extent as a qualified employee
  10-25  employed on a regularly operating campus or in a regularly
   11-1  operating program is covered.
   11-2        Sec. 37.036.  CONTENT.  Each charter granted under this
   11-3  subchapter must;
   11-4              (1)  describe the educational program to be offered,
   11-5  which may be a general or specialized program;
   11-6              (2)  provide that continuation of the charter is
   11-7  contingent on satisfactory student performance under Subchapter B,
   11-8  Chapter 35, and on compliance with any accountability provision
   11-9  specified by the charter, by a deadline or at intervals specified
  11-10  by the charter;
  11-11              (3)  specify any basis, in addition to a basis
  11-12  specified by this subchapter, on which the charter may be placed on
  11-13  probation suspended, or revoked;
  11-14              (4)  prohibit discrimination in admission on the basis
  11-15  of national origin, ethnicity, race, religion, or disability;
  11-16              (5)  describe the governing structure of the campus or
  11-17  program;
  11-18              (6)  specify a procedure that the campus or program
  11-19  will follow to ensure the health and safety of students and
  11-20  employees that includes a requirement that the campus or program
  11-21  obtain a criminal history record for each employee as provided by
  11-22  Section 21.917; and
  11-23              (7)  describe the manner in which an annual audit of
  11-24  financial and programmatic operations of the campus or program is
  11-25  to be conducted, including the manner in which the campus or
   12-1  program will provide information necessary for the school district
   12-2  in which it is located to participate, as required by this code or
   12-3  by State Board of Education rule, in the Public Education
   12-4  Information Management System (PEIMS).
   12-5        Sec. 37.037.  FORM.  A charter shall be in the form of a
   12-6  written contract signed by the president of the board of trustees
   12-7  granting the charter and the chief operating officer of the campus
   12-8  or program for which the charter is granted.
   12-9        Sec. 37.038.  CHARTER GRANTED.  Each charter a board of
  12-10  trustees grants under this subchapter must:
  12-11              (1)  satisfy this subchapter; and
  12-12              (2)  include the information that is required under
  12-13  Section 37.035 consistent with the information provided in the
  12-14  application and any modification the commissioner requires.
  12-15        Sec. 37.039.  REVISION.  A revision of a charter granted
  12-16  under the subchapter may be made only with the approval of the
  12-17  board of trustees that granted the charter.
  12-18        Sec. 37.040.  BASIS FOR PLACEMENT ON PROBATION, SUSPENSION,
  12-19  OR REVOCATION.  (a)  A board of trustees of a school district may
  12-20  place on probation, suspend, or revoke a charter it grants if the
  12-21  board determines that the campus or program:
  12-22              (1)  committed a material violation of the charter;
  12-23              (2)  failed to satisfy generally accepted accounting
  12-24  standards of fiscal management; or
  12-25              (3)  failed to comply with this subchapter, another
   13-1  law, or a state agency rule.
   13-2        (b)  The action the board takes under Subsection (a) shall be
   13-3  based on the best interest of campus or program students, the
   13-4  severity of the violation, and any previous violation the campus or
   13-5  program has committed.
   13-6        Sec. 37.041.  PROCEDURE FOR PLACEMENT ON PROBATION,
   13-7  SUSPENSION, OR REVOCATION.  (a)  Each board of trustees of a school
   13-8  district that grants a charter under this subchapter shall adopt a
   13-9  procedure to be used for placing on probation, suspending, or
  13-10  revoking a charter it grants.
  13-11        (b)  The procedure adopted under Subsection (a) must provide
  13-12  an opportunity for a hearing to the campus or program for which a
  13-13  charter is granted under this subchapter and to parents and
  13-14  guardians of students at the campus or in the program.  A hearing
  13-15  under this subsection must be held on the campus.
  13-16        Sec. 37.042.  ADMISSION.  (a)  Eligibility criteria for
  13-17  admission to the campus or program for which a charter is granted
  13-18  under this subchapter must give priority to geographic and
  13-19  residency considerations, and may give secondary consideration to
  13-20  factors such as a student's age, grade level, or academic
  13-21  credentials in general or in a specific area, as necessary for the
  13-22  type of program offered.
  13-23        (b)  The campus or program may require an applicant to submit
  13-24  an application not later than a reasonable deadline the campus or
  13-25  program establishes.
   14-1            (Sections 37.043-37.060 reserved for expansion
   14-2             SUBCHAPTER C.  CHARTER FOR PROGRAM OUTSIDE OF
   14-3                       SCHOOL DISTRICT FACILITY
   14-4        Sec. 37.061.  AUTHORIZATION.  In accordance with this
   14-5  subchapter, a local board of trustees or, on an appeal, the State
   14-6  Board of Education may grant a charter on the application of any
   14-7  person for an educational program to operate in a facility other
   14-8  than a school district facility, including a commercial facility,
   14-9  whether the program already exists or will be created.
  14-10        Sec. 37.062.  AUTHORITY UNDER CHARTER.  A program to which a
  14-11  charter is issued under this subchapter:
  14-12              (1)  shall provide instruction to students at one or
  14-13  more elementary or secondary grade levels as provided by the
  14-14  charter;
  14-15              (2)  is governed under the governing structure
  14-16  described by the charter;
  14-17              (3)  is exempt from a state law or rule imposing a
  14-18  prohibition, restriction, or requirement on public schools, except
  14-19  as otherwise provided by this subchapter or by the charter under
  14-20  which the program operates; and
  14-21              (4)  retains authority to operate under the charter
  14-22  contingent on satisfactory student performance as provided by the
  14-23  charter in accordance with Section 37.069.
  14-24        Sec. 37.063.  LIMITATION ON EXEMPTION.  A program for which a
  14-25  charter is granted under this subchapter is subject to the
   15-1  limitations on exemptions provided by Section 37.034.
   15-2        Sec. 37.064.  STATUS.  (a)  A program for which a charter is
   15-3  granted under this subchapter operates independently of any school
   15-4  district.
   15-5        (b)  The governing body of the program is considered a
   15-6  governmental body for purposes of Chapters 551 and 552, Government
   15-7  Code.
   15-8        (c)  The program is immune from liability to the same extent
   15-9  as a school district, and its employees are immune from liability
  15-10  to the same extent as school district employees.
  15-11        Sec. 37.065.  STATE FUNDING.  (a)  A program for which a
  15-12  charter is granted under this subchapter is entitled to a
  15-13  distribution from the available school fund on the same basis that
  15-14  a school district receives a distribution.
  15-15        (b)  A student attending a program for which a charter is
  15-16  granted under this subchapter who is eligible under Section 16.003
  15-17  is entitled to the benefits of the foundation school program under
  15-18  Chapter 16.  The commissioner of education shall distribute from
  15-19  the foundation school fund to each program an amount equal to the
  15-20  cost of a foundation school program provided by the program for
  15-21  which the charter is granted as determined under Section 16.251
  15-22  less an amount equal to the sum of the program's tuition receipts
  15-23  under Section 37.066 plus the program's distribution for the
  15-24  available school fund.
  15-25        Sec. 37.066.  LOCAL FUNDING.  (a)  A program created under
   16-1  this subchapter shall be entitled to receive tuition from the
   16-2  school district in which a child attending the program resides.
   16-3  Except as provided by Subsection (b), tuition shall be calculated
   16-4  by dividing the weighted average daily attendance of the students
   16-5  attending the program by the school district's total weighted
   16-6  average daily attendance of the students attending the program by
   16-7  the school district's total weighted average daily attendance,
   16-8  where weighted average daily attendance has the meaning assigned by
   16-9  Section 16.302 of the Texas Education Code, and multiply the
  16-10  resulting fraction by 80% of the tax revenue actually collected by
  16-11  the school district for maintenance and operations purposes for the
  16-12  school year for which tuition is paid.
  16-13        (b)  The tuition to be paid under Subsection (a) by a school
  16-14  district with a wealth per student that exceeds the equalized
  16-15  wealth level under Chapter 36 shall be based on:
  16-16              (1)  the district's tax revenue after the district has
  16-17  acted to achieve the equalized wealth level under Chapter 36; and
  16-18              (2)  enrollment, counting:
  16-19                    (A)  one student for each attendance credit
  16-20  purchased under Subchapter D, Chapter 36; and
  16-21                    (B)  each student served under an agreement under
  16-22  Subchapter E, Chapter 36.
  16-23        Sec. 37.067.  TUITION RESTRICTED.  Except as provided by
  16-24  section 37.066, a program for which a charter is granted under this
  16-25  subchapter may not charge tuition.
   17-1        Sec. 37.068.  APPLICATION.  (a)  A local board of trustees
   17-2  shall adopt:
   17-3              (1)  an application form and a procedure that a program
   17-4  must use to apply for a charter under this subchapter; and
   17-5              (2)  reasonable criteria to use in selecting a program
   17-6  to which to grant a charter.
   17-7        (b)  The application form must provide for including the
   17-8  information required under Section 37.069 to be contained in a
   17-9  charter.
  17-10        (c)  As part of the application procedure, a district's board
  17-11  of trustees may require a petition supporting a charter for a
  17-12  program signed by a specified number of parents or guardians of
  17-13  school-age children residing in the area in which a charter program
  17-14  is proposed or may hold a public hearing to determine parental
  17-15  support for the program.
  17-16        (d)  A board of trustees may approve or deny an application
  17-17  based on reasonable criteria it adopts but approval shall not be
  17-18  unreasonably withheld.  A board of trustees may establish a limit
  17-19  on the number of new charters that it grants each school year.
  17-20        Sec. 37.069.  CONTENT.  Each charter granted under this
  17-21  subchapter must:
  17-22              (1)  describe the educational program to be offered,
  17-23  which may be a general or specialized program;
  17-24              (2)  provide that continuation of the charter is
  17-25  contingent on satisfactory student performance under Subchapter B,
   18-1  Chapter 35,  and on compliance with any other accountability
   18-2  provisions specified by the charter, by a deadline or at intervals
   18-3  specified by the charter;
   18-4              (3)  specify any basis, in addition to a basis
   18-5  specified by the subchapter, on which the charter may be placed on
   18-6  probation, suspended, or revoked;
   18-7              (4)  prohibit discrimination in admission on the basis
   18-8  of national origin, ethnicity, race, religion, or disability;
   18-9              (5)  describe the governing structure of the program;
  18-10              (6)  specify a procedure that the person providing the
  18-11  program will follow to ensure the health and safety of students and
  18-12  employees that includes a requirement that the school obtain a
  18-13  criminal history record for each employee as provided by Section
  18-14  21.917;
  18-15              (7)  describe the process by which the person providing
  18-16  the program will adopt an annual budget; and
  18-17              (8)  describe the manner in which an annual audit of
  18-18  the financial and programmatic operations of the program is to be
  18-19  conducted, including the manner in which the person providing the
  18-20  program will provide information necessary for the school district
  18-21  in which the program is located to participate, as required by the
  18-22  code or by State Board of Education rule, in the Public Education
  18-23  Information Management System (PEIMS).
  18-24        Sec. 37.070.  FORM.  A charter granted under this subchapter
  18-25  shall be in the form of a written contract signed by the chief
   19-1  operating officer of the program and by the chairman of the State
   19-2  Board of Education or the president of the local board of trustees
   19-3  as applicable.
   19-4        Sec. 37.071.  CHARTER GRANTED.  Each charter a local board of
   19-5  trustees grants under this subchapter must:
   19-6              (1)  satisfy this subchapter; and
   19-7              (2)  include the information that is required under
   19-8  Section 37.069 consistent with the information provided in the
   19-9  application and any modification the board requires.
  19-10        Sec. 37.072.  REVISION.  A revision of a charter may be made
  19-11  only with the approval of all parties granting the charter.
  19-12        Sec. 37.073.  BASIS FOR PLACEMENT ON PROBATION, SUSPENSION,
  19-13  OR REVOCATION.  (a)  The local board of trustees may place on
  19-14  probation, suspend, or revoke a charter if that body determines
  19-15  that the person or persons operating the program:
  19-16              (1)  committed a material violation of the charter;
  19-17              (2)  failed to satisfy generally accepted accounting
  19-18  standards of fiscal management for the public funds paid to the
  19-19  program pursuant to Sections 37.066 and 37.067, or public funds
  19-20  received by the program in any other manner; or
  19-21              (3)  failed to comply with this subchapter, another
  19-22  law, or a state agency rule.
  19-23        (b)  The action the local board of trustees takes under
  19-24  Subsection (a) shall be based on the best interest of program
  19-25  students, the severity of the violation, and any previous violation
   20-1  the program has committed.
   20-2        Sec. 37.074.  PROCEDURE FOR PLACEMENT ON PROBATION,
   20-3  SUSPENSION, OR REVOCATION.  (a)  The local board of trustees shall
   20-4  adopt a procedure to be used for placing on probation, suspending,
   20-5  or revoking a charter granted under this subchapter.
   20-6        (b)  The procedure adopted under Subsection (a) must provide
   20-7  an opportunity for a hearing to the person providing a program for
   20-8  which a charter is granted under this subchapter and to parents and
   20-9  guardians of students in the program.  A hearing under this
  20-10  subsection must be held at the facility at which the program is
  20-11  operated.
  20-12        Sec. 37.075.  ADMISSION.  (a)  Eligibility criteria for
  20-13  admission to the program for which a charter is granted under this
  20-14  subchapter may be established on the basis of a student's age,
  20-15  grade level, or academic credentials in general or in a specific
  20-16  area, as necessary for the type of program offered.
  20-17        (b)  For admission to a program for which a charter is
  20-18  granted under this subchapter, the person providing the program may
  20-19  require the applicant to complete and submit an application not
  20-20  later than a reasonable deadline the program establishes.
  20-21        Sec. 37.076.  APPEAL.  If a local board of trustees denies
  20-22  the application of a charter submitted in accordance with this
  20-23  subchapter, the decision may be appealed to the State Board of
  20-24  Education and the board shall accept or reject the application in
  20-25  accordance with the provisions governing boards of trustees in this
   21-1  subchapter.
   21-2        SECTION 2.  Not later than April 1, 1996, the State Board of
   21-3  Education shall adopt any rules and procedures necessary to
   21-4  implement Chapter 37, Education Code, as added by this Act.
   21-5        SECTION 3.  The importance of this legislation and the
   21-6  crowded condition of the calendars in both houses create an
   21-7  emergency and an imperative public necessity that the
   21-8  constitutional rule requiring bills be read on three several days
   21-9  in each house be suspended, and this rule is hereby suspended, and
  21-10  that this Act take effect and be in force from and after its
  21-11  passage, and it is so enacted.